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 811-4801
---------------------------------------------
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
--------------------------
Date of reporting period: March 31, 2006
-------------------------
Item 1. Reports to Stockholders
SunAmerica Equity Funds, Semiannual Report at March 31, 2006.
2006
Semi-annual
SunAmerica Report
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[PHOTO]
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[LOGO] AIG Sun America
Mutual Funds
Equity Funds
March 31, 2006 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............................................... 56
TRUSTEE AND OFFICER INFORMATION............................................. 75
Shareholder Letter
Dear Shareholder:
We are pleased to present the semi-annual report for the SunAmerica Equity
Funds. This report contains investment portfolio information and financial
statements for the six-month period ending March 31, 2006.
The past six months marked a continuation of the Federal Reserve Bank's
tightening policy, despite the beginning of new leadership. During the course
of the period, the Federal Funds rate increased by 1.00% to end the period at
4.75%. In addition to the interest rate headwind, the rising price of oil,
concerns over inflation and the economic impact of an active hurricane season
proved to be additional challenges for the markets. Despite these concerns,
economic growth, corporate profits and employment remained strong.
The equity markets responded with positive returns for the six-month period.
Small-cap stocks continued to outperform large-cap indices with the Russell
2000 returning 15.23% while the S&P 500 returned 6.38% for the semi-annual
period. International equities remained strong with the MSCI EAFE Index*
returning 13.86% for the six-month period.
Throughout the semi-annual period, growth stocks outperformed their value
counterparts. While mid- and large-cap growth stocks appreciated the most
during the fourth calendar quarter of 2005, small-cap growth fueled a
significant rally during the opening months of 2006. During the first half of
the semi-annual period, materials and financial groups were the top-performing
industry groups, while telecommunications and energy sectors returned to favor
during the first calendar quarter of 2006. Overall, the market appreciation
during the six-month period was broad-based, as all industry sectors with the
exception of the utilities group posting positive returns.
Thank you for your continued investment in our Funds. We encourage you to visit
our website www.sunamericafunds.com for more information.
Sincerely,
The SunAmerica Equity Funds Investment Professionals
John Massey Hans Danielsson Greg Parker
Steve Neimeth Brendan Voege Soraya Benitez
Paul Ma Ben Barrett Andy Sheridan
Jay Rushin Dawn Schuchman Jeff Easter
Allison Larkin Mike Beaulieu
- --------
Past performance is no guarantee of future results.
* MSCI EAFE Index is a broad-based index intended to represent the developed
international equity markets.
2
SunAmerica Equity Funds
EXPENSE EXAMPLE -- March 31, 2006 -- (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. The
Example set forth below 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, 2005 and held until March 31, 2006.
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, 2006" to estimate the expenses you paid on your account
during this period. For shareholder accounts in classes other than Class I and
Class Z the "Expenses Paid During the six months ended March 31, 2006" 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, 2006" column does not include
administrative fees that may apply to qualified retirement plan accounts. See
the Funds' prospectus and/or your retirement plan documents for full
description of these fees. Had these fees been included, the "Expenses Paid
During the six months ended March 31, 2006" 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
and Class Z the "Expenses Paid During the six months ended March 31, 2006"
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, 2006" column does not
include administrative fees that may apply to qualified retirement plan
accounts. See the Funds' prospectus and/or your retirement plan document for
full description of these fees. Had these fees been included, the "Expenses
Paid During the six months ended March 31, 2006" 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 the Fund's 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, 2006 -- (unaudited) (continued)
Actual Hypothetical
------------------------------------------- -------------------------------------------
Ending Account
Ending Account Expense Paid Value using Expense Paid
Value Using During a Hypothetical During Expense
Beginning Actual the six months Beginning 5% Assumed the 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,
2005 2006 2006 2005 2006 2006 2006*
- - ------------- -------------- -------------- ------------- -------------- -------------- ---------
Blue Chip Growth Fund
Class A#............... $1,000.00 $1,039.45 $ 7.88 $1,000.00 $1,017.20 $ 7.80 1.55%
Class B#............... $1,000.00 $1,035.27 $11.57 $1,000.00 $1,013.56 $11.45 2.28%
Class C#............... $1,000.00 $1,035.48 $11.47 $1,000.00 $1,013.66 $11.35 2.26%
Class I#............... $1,000.00 $1,041.07 $ 6.51 $1,000.00 $1,018.55 $ 6.44 1.28%
Growth Opportunities Fund
Class A#............... $1,000.00 $1,089.12 $ 8.23 $1,000.00 $1,017.05 $ 7.95 1.58%
Class B#............... $1,000.00 $1,085.40 $11.96 $1,000.00 $1,013.46 $11.55 2.30%
Class C#............... $1,000.00 $1,085.52 $11.65 $1,000.00 $1,013.76 $11.25 2.24%
Class I#............... $1,000.00 $1,090.03 $ 6.67 $1,000.00 $1,018.55 $ 6.44 1.28%
New Century Fund
Class A................ $1,000.00 $1,080.56 $ 7.99 $1,000.00 $1,017.25 $ 7.75 1.54%
Class B................ $1,000.00 $1,076.83 $12.17 $1,000.00 $1,013.21 $11.80 2.35%
Class C#............... $1,000.00 $1,077.79 $11.09 $1,000.00 $1,014.26 $10.75 2.14%
Growth and Income Fund
Class A................ $1,000.00 $1,041.10 $ 7.73 $1,000.00 $1,017.35 $ 7.64 1.52%
Class B................ $1,000.00 $1,036.63 $11.22 $1,000.00 $1,013.91 $11.10 2.21%
Class C................ $1,000.00 $1,037.54 $11.12 $1,000.00 $1,014.01 $11.00 2.19%
Class I#............... $1,000.00 $1,041.70 $ 6.72 $1,000.00 $1,018.35 $ 6.64 1.32%
Balanced Assets Fund
Class A#............... $1,000.00 $1,026.69 $ 7.63 $1,000.00 $1,017.40 $ 7.59 1.51%
Class B#............... $1,000.00 $1,023.07 $11.10 $1,000.00 $1,013.96 $11.05 2.20%
Class C#............... $1,000.00 $1,023.03 $10.89 $1,000.00 $1,014.16 $10.85 2.16%
Class I#............... $1,000.00 $1,027.80 $ 6.47 $1,000.00 $1,018.55 $ 6.44 1.28%
International Equity Fund
Class A#............... $1,000.00 $1,180.22 $10.33 $1,000.00 $1,015.46 $ 9.55 1.90%
Class B#............... $1,000.00 $1,176.28 $13.84 $1,000.00 $1,012.22 $12.79 2.55%
Class C#............... $1,000.00 $1,176.57 $13.84 $1,000.00 $1,012.22 $12.79 2.55%
Class I#............... $1,000.00 $1,181.40 $ 9.79 $1,000.00 $1,015.96 $ 9.05 1.80%
Value Fund
Class A#............... $1,000.00 $1,041.30 $ 8.30 $1,000.00 $1,016.80 $ 8.20 1.63%
Class B#............... $1,000.00 $1,038.01 $11.58 $1,000.00 $1,013.56 $11.45 2.28%
Class C#............... $1,000.00 $1,038.03 $11.58 $1,000.00 $1,013.56 $11.45 2.28%
Class I#............... $1,000.00 $1,041.84 $ 7.79 $1,000.00 $1,017.30 $ 7.70 1.53%
Class Z#............... $1,000.00 $1,044.66 $ 5.40 $1,000.00 $1,019.65 $ 5.34 1.06%
Biotech/Health Fund
Class A#............... $1,000.00 $1,015.94 $ 7.79 $1,000.00 $1,017.20 $ 7.80 1.55%
Class B#............... $1,000.00 $1,012.11 $11.04 $1,000.00 $1,013.96 $11.05 2.20%
Class C#............... $1,000.00 $1,012.09 $11.04 $1,000.00 $1,013.96 $11.05 2.20%
Tax Managed Equity Fund
Class A#............... $1,000.00 $1,188.90 $ 7.91 $1,000.00 $1,017.70 $ 7.29 1.45%
Class B#............... $1,000.00 $1,185.37 $11.44 $1,000.00 $1,014.46 $10.55 2.10%
Class C#............... $1,000.00 $1,185.21 $11.44 $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 the Fund's 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 the 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, 2006" and "Expense Ratios" would have been lower.
4
SunAmerica Equity Funds
STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2006 -- (unaudited)
Blue Chip Growth
Growth Opportunities
Fund Fund
------------ -------------
ASSETS:
Long-term investment securities, at value (unaffiliated)*.................................... $ 78,481,777 $ 73,875,135
Short-term investment securities, at value (unaffiliated)*................................... -- --
Repurchase agreements (cost equals market value)............................................. 1,481,000 5,966,000
------------ -------------
Total investments.......................................................................... 79,962,777 79,841,135
------------ -------------
Cash......................................................................................... 30 728
Foreign cash*................................................................................ -- --
Receivable for:
Fund shares sold........................................................................... 57,400 67,480
Dividends and interest..................................................................... 71,570 10,799
Investments sold........................................................................... 1,203,976 2,628,596
Prepaid expenses and other assets............................................................ 3,723 3,541
Due from investment adviser for expense reimbursements/fee waivers........................... 5,976 6,390
------------ -------------
Total Assets............................................................................... 81,305,452 82,558,669
------------ -------------
LIABILITIES:
Payable for:
Fund shares redeemed....................................................................... 87,468 105,067
Investments purchased...................................................................... 1,035,040 914,537
Investment advisory and management fees.................................................... 51,151 50,665
Distribution and service maintenance fees.................................................. 37,989 43,748
Transfer agent fees and expenses........................................................... 31,280 31,448
Trustees' fee and expenses................................................................. 30,585 25,842
Other accrued expenses..................................................................... 70,976 79,674
Line of credit............................................................................. -- --
Due to custodian............................................................................. -- --
------------ -------------
Total Liabilities.......................................................................... 1,344,489 1,250,981
------------ -------------
Net Assets................................................................................. $ 79,960,963 $ 81,307,688
============ =============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value................................................ $ 52,558 $ 48,489
Paid-in capital.............................................................................. 149,181,495 281,183,706
------------ -------------
149,234,053 281,232,195
Accumulated undistributed net investment income (loss)....................................... (357,963) (422,430)
Accumulated undistributed net realized gain (loss) on investments, futures contracts, options
contracts, securities sold short and foreign exchange transactions.......................... (72,806,511) (204,537,799)
Unrealized appreciation (depreciation) on investments........................................ 3,891,384 5,035,722
Unrealized foreign exchange gain (loss) on other assets and liabilities...................... -- --
------------ -------------
Net Assets................................................................................. $ 79,960,963 $ 81,307,688
============ =============
*Cost
Long-term investment securities (unaffiliated)............................................. $ 74,590,393 $ 68,839,413
============ =============
Short-term investment securities (unaffiliated)............................................ $ -- $ --
============ =============
Foreign cash............................................................................... $ -- $ --
============ =============
New Growth and
Century Income
Fund Fund
------------ ------------
ASSETS:
Long-term investment securities, at value (unaffiliated)*.................................... $ 90,375,947 $125,524,244
Short-term investment securities, at value (unaffiliated)*................................... -- --
Repurchase agreements (cost equals market value)............................................. 8,370,000 --
------------ ------------
Total investments.......................................................................... 98,745,947 125,524,244
------------ ------------
Cash......................................................................................... 179 --
Foreign cash*................................................................................ -- --
Receivable for:
Fund shares sold........................................................................... 17,780 51,213
Dividends and interest..................................................................... 17,205 171,297
Investments sold........................................................................... 884,774 4,412,086
Prepaid expenses and other assets............................................................ 4,221 7,233
Due from investment adviser for expense reimbursements/fee waivers........................... 4,467 2,556
------------ ------------
Total Assets............................................................................... 99,674,573 130,168,629
------------ ------------
LIABILITIES:
Payable for:
Fund shares redeemed....................................................................... 308,790 237,966
Investments purchased...................................................................... 1,239,954 2,532,851
Investment advisory and management fees.................................................... 61,523 82,265
Distribution and service maintenance fees.................................................. 35,169 74,337
Transfer agent fees and expenses........................................................... 33,154 49,401
Trustees' fee and expenses................................................................. 48,014 39,585
Other accrued expenses..................................................................... 69,149 75,239
Line of credit............................................................................. -- 22,128
Due to custodian............................................................................. -- --
------------ ------------
Total Liabilities.......................................................................... 1,795,753 3,113,772
------------ ------------
Net Assets................................................................................. $ 97,878,820 $127,054,857
============ ============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value................................................ $ 51,137 $ 101,509
Paid-in capital.............................................................................. 185,200,944 174,572,683
------------ ------------
185,252,081 174,674,192
Accumulated undistributed net investment income (loss)....................................... (301,659) (118,253)
Accumulated undistributed net realized gain (loss) on investments, futures contracts, options
contracts, securities sold short and foreign exchange transactions.......................... (89,734,196) (54,952,043)
Unrealized appreciation (depreciation) on investments........................................ 2,662,594 7,450,961
Unrealized foreign exchange gain (loss) on other assets and liabilities...................... -- --
------------ ------------
Net Assets................................................................................. $ 97,878,820 $127,054,857
============ ============
*Cost
Long-term investment securities (unaffiliated)............................................. $ 87,713,353 $118,073,283
============ ============
Short-term investment securities (unaffiliated)............................................ $ -- $ --
============ ============
Foreign cash............................................................................... $ -- $ --
============ ============
Balanced
Assets
Fund
------------
ASSETS:
Long-term investment securities, at value (unaffiliated)*.................................... $174,060,719
Short-term investment securities, at value (unaffiliated)*................................... 1,248,806
Repurchase agreements (cost equals market value)............................................. 1,961,000
------------
Total investments.......................................................................... 177,270,525
------------
Cash......................................................................................... 18,452
Foreign cash*................................................................................ --
Receivable for:
Fund shares sold........................................................................... 21,618
Dividends and interest..................................................................... 787,655
Investments sold........................................................................... 984,945
Prepaid expenses and other assets............................................................ 8,153
Due from investment adviser for expense reimbursements/fee waivers........................... 10,251
------------
Total Assets............................................................................... 179,101,599
------------
LIABILITIES:
Payable for:
Fund shares redeemed....................................................................... 286,080
Investments purchased...................................................................... 1,732,983
Investment advisory and management fees.................................................... 114,310
Distribution and service maintenance fees.................................................. 77,346
Transfer agent fees and expenses........................................................... 69,998
Trustees' fee and expenses................................................................. 83,642
Other accrued expenses..................................................................... 110,266
Line of credit............................................................................. --
Due to custodian............................................................................. --
------------
Total Liabilities.......................................................................... 2,474,625
------------
Net Assets................................................................................. $176,626,974
============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value................................................ $ 126,629
Paid-in capital.............................................................................. 252,110,097
------------
252,236,726
Accumulated undistributed net investment income (loss)....................................... (276,464)
Accumulated undistributed net realized gain (loss) on investments, futures contracts, options
contracts, securities sold short and foreign exchange transactions.......................... (80,616,526)
Unrealized appreciation (depreciation) on investments........................................ 5,283,238
Unrealized foreign exchange gain (loss) on other assets and liabilities...................... --
------------
Net Assets................................................................................. $176,626,974
============
*Cost
Long-term investment securities (unaffiliated)............................................. $168,771,990
============
Short-term investment securities (unaffiliated)............................................ $ 1,254,297
============
Foreign cash............................................................................... $ --
============
See Notes to Financial Statements
5
SunAmerica Equity Funds
STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2006 -- (unaudited)
(continued)
Blue Chip Growth New Growth and Balanced
Growth Opportunities Century Income Assets
Fund Fund Fund Fund Fund
----------- ------------- ----------- ----------- ------------
Class A (unlimited shares authorized):
Net assets.................................................. $53,640,738 $43,686,111 $86,143,214 $63,456,360 $133,637,144
Shares of beneficial interest issued and outstanding........ 3,393,120 2,465,415 4,427,858 4,924,720 9,574,788
Net asset value and redemption price per share.............. $ 15.81 $ 17.72 $ 19.45 $ 12.89 $ 13.96
Maximum sales charge (5.75% of offering price).............. 0.96 1.08 1.19 0.79 0.85
----------- ----------- ----------- ----------- ------------
Maximum offering price to public............................ $ 16.77 $ 18.80 $ 20.64 $ 13.68 $ 14.81
=========== =========== =========== =========== ============
Class B (unlimited shares authorized):
Net assets.................................................. $20,395,225 $25,554,277 $ 9,728,761 $32,885,189 $ 25,361,060
Shares of beneficial interest issued and outstanding........ 1,447,245 1,621,318 569,038 2,701,363 1,823,131
Net asset value, offering and redemption price per share
(excluding any applicable contingent deferred sales charge) $ 14.09 $ 15.76 $ 17.10 $ 12.17 $ 13.91
=========== =========== =========== =========== ============
Class C (unlimited shares authorized):
Net assets.................................................. $ 5,083,025 $11,458,015 $ 2,006,845 $30,353,042 $ 16,886,436
Shares of beneficial interest issued and outstanding........ 362,714 728,145 116,846 2,496,878 1,211,829
Net asset value, offering and redemption price per share
(excluding any applicable contingent deferred sales charge) $ 14.01 $ 15.74 $ 17.18 $ 12.16 $ 13.93
=========== =========== =========== =========== ============
Class I (unlimited shares authorized):
Net assets.................................................. $ 841,975 $ 609,285 $ -- $ 360,266 $ 742,334
Shares of beneficial interest issued and outstanding........ 52,737 33,995 -- 27,914 53,111
Net asset value, offering and redemption price per share.... $ 15.97 $ 17.92 $ -- $ 12.91 $ 13.98
=========== =========== =========== =========== ============
Class Z (unlimited shares authorized):
Net assets.................................................. $ -- $ -- $ -- $ -- $ --
Shares of beneficial interest issued and outstanding........ -- -- -- -- --
Net asset value, offering and redemption price per share.... $ -- $ -- $ -- $ -- $ --
=========== =========== =========== =========== ============
See Notes to Financial Statements
6
SunAmerica Equity Funds
STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2006 -- (unaudited)
(continued)
Tax
International Biotech/ Managed
Equity Value Health Equity
Fund Fund Fund Fund
------------- ------------ ------------ ------------
ASSETS:
Long-term investment securities, at
value (unaffiliated)*.................. $110,646,636 $230,217,958 $ 29,012,433 $ 45,499,767
Short-term investment securities, at
value (unaffiliated)*.................. -- -- -- --
Repurchase agreements (cost equals
market value).......................... 2,975,000 3,771,000 626,000 1,874,000
------------ ------------ ------------ ------------
Total investments...................... 113,621,636 233,988,958 29,638,433 47,373,767
------------ ------------ ------------ ------------
Cash.................................... -- 659 212 712
Foreign cash*........................... 2,433,885 -- -- 3,150
Receivable for:
Fund shares sold....................... 308,090 127,082 12,202 396,076
Dividends and interest................. 283,380 392,673 19,893 31,432
Investments sold....................... 4,692,079 -- -- 5,292,426
Prepaid expenses and other assets....... 4,060 18,985 25,741 1,696
Due from investment adviser for expense
reimbursements/fee waivers............. 9,485 34,348 10,530 29,349
------------ ------------ ------------ ------------
Total Assets........................... 121,352,615 234,562,705 29,707,011 53,128,608
------------ ------------ ------------ ------------
LIABILITIES:
Payable for:
Fund shares redeemed................... 95,260 517,563 117,569 127,240
Investments purchased.................. 8,421,974 2,301,212 -- 6,481,030
Investment advisory and management fees 93,053 199,709 19,236 30,884
Distribution and service maintenance
fees................................. 55,602 113,256 18,445 29,220
Transfer agent fees and expenses....... 32,892 72,449 13,391 11,713
Trustees' fee and expenses............. 17,922 29,776 5,921 11,255
Other accrued expenses................. 88,783 80,140 54,562 62,924
Line of credit......................... -- -- -- --
Due to custodian........................ 3,249 -- -- --
------------ ------------ ------------ ------------
Total Liabilities...................... 8,808,735 3,314,105 229,124 6,754,266
------------ ------------ ------------ ------------
Net Assets............................. $112,543,880 $231,248,600 $ 29,477,887 $ 46,374,342
============ ============ ============ ============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par
value.................................. $ 74,899 $ 134,736 $ 31,521 $ 33,943
Paid-in capital......................... 125,306,713 204,060,379 59,678,162 69,312,127
------------ ------------ ------------ ------------
125,381,612 204,195,115 59,709,683 69,346,070
Accumulated undistributed net
investment income (loss)............... (707,292) 538,663 (174,619) (136,706)
Accumulated undistributed net realized
gain (loss) on investments, future
contracts, options contracts,
securities sold short and foreign
exchange transactions.................. (29,875,017) 10,459,907 (31,465,862) (25,596,153)
Unrealized appreciation (depreciation)
on investments......................... 17,743,529 16,054,915 1,408,685 2,761,289
Unrealized foreign exchange gain (loss)
on other assets and liabilities........ 1,048 -- -- (158)
------------ ------------ ------------ ------------
Net Assets............................. $112,543,880 $231,248,600 $ 29,477,887 $ 46,374,342
============ ============ ============ ============
*Cost
Long-term investment securities
(unaffiliated)....................... $ 92,903,107 $214,163,043 $ 27,603,748 $ 42,738,478
============ ============ ============ ============
Short-term investment securities
(unaffiliated)....................... $ -- $ -- $ -- $ --
============ ============ ============ ============
Foreign cash........................... $ 2,437,599 $ -- $ -- $ 3,269
============ ============ ============ ============
See Notes to Financial Statements
7
SunAmerica Equity Funds
STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2006 -- (unaudited)
(continued)
International Biotech/ Tax Managed
Equity Value Health Equity
Fund Fund Fund Fund
------------- ------------ ----------- -----------
Class A (unlimited shares authorized):
Net assets.................................................. $59,111,895 $121,074,172 $12,729,609 $15,077,274
Shares of beneficial interest issued and outstanding........ 3,840,240 6,945,022 1,332,048 1,076,833
Net asset value and redemption price per share.............. $ 15.39 $ 17.43 $ 9.56 $ 14.00
Maximum sales charge (5.75% of offering price).............. 0.94 1.06 0.58 0.85
----------- ------------ ----------- -----------
Maximum offering price to public............................ $ 16.33 $ 18.49 $ 10.14 $ 14.85
=========== ============ =========== ===========
Class B (unlimited shares authorized):
Net assets.................................................. $22,233,953 $ 50,083,932 $ 9,919,766 $14,272,465
Shares of beneficial interest issued and outstanding........ 1,535,778 3,012,356 1,078,904 1,057,584
Net asset value, offering and redemption price per share
(excluding any applicable contingent deferred sales charge) $ 14.48 $ 16.63 $ 9.19 $ 13.50
=========== ============ =========== ===========
Class C (unlimited shares authorized):
Net assets.................................................. $21,812,552 $ 37,634,285 $ 6,828,512 $17,024,603
Shares of beneficial interest issued and outstanding........ 1,508,303 2,263,907 741,175 1,259,885
Net asset value, offering and redemption price per share
(excluding any applicable contingent deferred sales charge) $ 14.46 $ 16.62 $ 9.21 $ 13.51
=========== ============ =========== ===========
Class I (unlimited shares authorized):
Net assets.................................................. $ 9,385,480 $ 3,097,769 $ -- $ --
Shares of beneficial interest issued and outstanding........ 605,623 177,844 -- --
Net asset value, offering and redemption price per share.... $ 15.50 $ 17.42 $ -- $ --
=========== ============ =========== ===========
Class Z (unlimited shares authorized):
Net assets.................................................. $ -- $ 19,358,442 $ -- $ --
Shares of beneficial interest issued and outstanding........ -- 1,074,488 -- --
Net asset value, offering and redemption price per share.... $ -- $ 18.02 $ -- $ --
=========== ============ =========== ===========
See Notes to Financial Statements
8
SunAmerica Equity Funds
STATEMENT OF OPERATIONS -- For the period ended March 31, 2006 --
(unaudited)
Blue Chip
Growth
Fund
-----------
INVESTMENT INCOME:
Dividends (unaffiliated)............................................................................. $ 388,780
Interest (unaffiliated).............................................................................. 24,893
-----------
Total investment income*............................................................................ 413,673
-----------
EXPENSES:
Investment advisory and management fees.............................................................. 312,193
Distribution and service maintenance fees
Class A............................................................................................. 97,103
Class B............................................................................................. 107,281
Class C............................................................................................. 26,055
Service fees Class I................................................................................. 1,371
Transfer agent fees and expenses
Class A............................................................................................. 76,905
Class B............................................................................................. 35,585
Class C............................................................................................. 8,540
Class I............................................................................................. 1,206
Registration fees
Class A............................................................................................. 9,385
Class B............................................................................................. 6,930
Class C............................................................................................. 1,167
Class I............................................................................................. 6,176
Class Z............................................................................................. --
Custodian fees....................................................................................... 25,735
Reports to shareholders.............................................................................. 24,579
Audit and tax fees................................................................................... 14,648
Legal fees........................................................................................... 3,452
Trustees' fees and expenses.......................................................................... 3,047
Interest expense..................................................................................... 1,139
Other expenses....................................................................................... 5,959
-----------
Total expenses before fee waivers, expense reimbursements, expense recoupments and custody credits.. 768,456
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 3)................... (27,414)
Custody credits earned on cash balances............................................................. (3)
-----------
Net expenses........................................................................................ 741,039
-----------
Net investment income (loss)........................................................................... (327,366)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)................................................. 4,746,758
Net realized foreign exchange gain (loss) on other assets and liabilities.............................. --
-----------
Net realized gain (loss) on investments and foreign currencies......................................... 4,746,758
-----------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)......................... (1,260,694)
Change in unrealized foreign exchange gain (loss) on other assets and liabilities...................... --
-----------
Net unrealized gain (loss) on investments and foreign currencies....................................... (1,260,694)
-----------
Net realized and unrealized gain (loss) on investments and foreign currencies.......................... 3,486,064
-----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................................ $ 3,158,698
===========
- --------
*Net of foreign withholding taxes on interest and dividends of......................................... $ 4,650
===========
Growth
Opportunities
Fund
-------------
INVESTMENT INCOME:
Dividends (unaffiliated)............................................................................. $ 292,216
Interest (unaffiliated).............................................................................. 81,941
-----------
Total investment income*............................................................................ 374,157
-----------
EXPENSES:
Investment advisory and management fees.............................................................. 303,755
Distribution and service maintenance fees
Class A............................................................................................. 74,462
Class B............................................................................................. 130,523
Class C............................................................................................. 57,097
Service fees Class I................................................................................. 1,159
Transfer agent fees and expenses
Class A............................................................................................. 58,710
Class B............................................................................................. 40,053
Class C............................................................................................. 17,666
Class I............................................................................................. 1,112
Registration fees
Class A............................................................................................. 6,561
Class B............................................................................................. 9,245
Class C............................................................................................. 697
Class I............................................................................................. 6,551
Class Z............................................................................................. --
Custodian fees....................................................................................... 29,997
Reports to shareholders.............................................................................. 35,117
Audit and tax fees................................................................................... 13,700
Legal fees........................................................................................... 3,352
Trustees' fees and expenses.......................................................................... 3,002
Interest expense..................................................................................... --
Other expenses....................................................................................... 5,993
-----------
Total expenses before fee waivers, expense reimbursements, expense recoupments and custody credits.. 798,752
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 3)................... (27,402)
Custody credits earned on cash balances............................................................. (756)
-----------
Net expenses........................................................................................ 770,594
-----------
Net investment income (loss)........................................................................... (396,437)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)................................................. 14,250,701
Net realized foreign exchange gain (loss) on other assets and liabilities.............................. --
-----------
Net realized gain (loss) on investments and foreign currencies......................................... 14,250,701
-----------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)......................... (7,210,732)
Change in unrealized foreign exchange gain (loss) on other assets and liabilities...................... --
-----------
Net unrealized gain (loss) on investments and foreign currencies....................................... (7,210,732)
-----------
Net realized and unrealized gain (loss) on investments and foreign currencies.......................... 7,039,969
-----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................................ $ 6,643,532
===========
- --------
*Net of foreign withholding taxes on interest and dividends of......................................... $ --
===========
New
Century
Fund
-----------
INVESTMENT INCOME:
Dividends (unaffiliated)............................................................................. $ 344,177
Interest (unaffiliated).............................................................................. 194,376
-----------
Total investment income*............................................................................ 538,553
-----------
EXPENSES:
Investment advisory and management fees.............................................................. 362,092
Distribution and service maintenance fees
Class A............................................................................................. 148,241
Class B............................................................................................. 49,299
Class C............................................................................................. 9,944
Service fees Class I................................................................................. --
Transfer agent fees and expenses
Class A............................................................................................. 110,351
Class B............................................................................................. 15,812
Class C............................................................................................. 4,057
Class I............................................................................................. --
Registration fees
Class A............................................................................................. 9,815
Class B............................................................................................. 5,816
Class C............................................................................................. 4,697
Class I............................................................................................. --
Class Z............................................................................................. --
Custodian fees....................................................................................... 27,902
Reports to shareholders.............................................................................. 22,328
Audit and tax fees................................................................................... 13,693
Legal fees........................................................................................... 3,710
Trustees' fees and expenses.......................................................................... 3,242
Interest expense..................................................................................... --
Other expenses....................................................................................... 5,851
-----------
Total expenses before fee waivers, expense reimbursements, expense recoupments and custody credits.. 796,850
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 3)................... (6,455)
Custody credits earned on cash balances............................................................. (36)
-----------
Net expenses........................................................................................ 790,359
-----------
Net investment income (loss)........................................................................... (251,806)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)................................................. 15,657,534
Net realized foreign exchange gain (loss) on other assets and liabilities.............................. --
-----------
Net realized gain (loss) on investments and foreign currencies......................................... 15,657,534
-----------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)......................... (7,968,779)
Change in unrealized foreign exchange gain (loss) on other assets and liabilities...................... --
-----------
Net unrealized gain (loss) on investments and foreign currencies....................................... (7,968,779)
-----------
Net realized and unrealized gain (loss) on investments and foreign currencies.......................... 7,688,755
-----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................................ $ 7,436,949
===========
- --------
*Net of foreign withholding taxes on interest and dividends of......................................... $ --
===========
See Notes to Financial Statements
9
SunAmerica Equity Funds
STATEMENT OF OPERATIONS -- For the period ended March 31, 2006 --
(unaudited) (continued)
Growth and Balanced
Income Assets
Fund Fund
----------- ----------
INVESTMENT INCOME:
Dividends (unaffiliated)............................................................................. $ 1,167,845 $ 965,841
Interest (unaffiliated).............................................................................. 26,641 1,852,146
----------- ----------
Total investment income*............................................................................ 1,194,486 2,817,987
----------- ----------
EXPENSES:
Investment advisory and management fees.............................................................. 508,760 691,895
Distribution and service maintenance fees
Class A............................................................................................. 112,378 240,965
Class B............................................................................................. 187,076 139,808
Class C............................................................................................. 167,505 90,499
Service fees Class I................................................................................. 672 937
Transfer agent fees and expenses
Class A............................................................................................. 86,240 188,458
Class B............................................................................................. 56,174 40,935
Class C............................................................................................. 44,944 24,543
Class I............................................................................................. 591 898
Registration fees
Class A............................................................................................. 5,512 10,590
Class B............................................................................................. 4,584 6,390
Class C............................................................................................. 6,417 2,196
Class I............................................................................................. 6,233 6,143
Class Z............................................................................................. -- --
Custodian fees....................................................................................... 31,453 79,914
Reports to shareholders.............................................................................. 29,795 41,413
Audit and tax fees................................................................................... 13,703 12,103
Legal fees........................................................................................... 4,615 5,395
Trustees' fees and expenses.......................................................................... 4,704 6,027
Interest expense..................................................................................... 1,887 605
Other expenses....................................................................................... 6,711 8,226
----------- ----------
Total expenses before fee waivers, expense reimbursements, expense recoupments and custody credits.. 1,279,954 1,597,940
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 3)................... (6,325) (52,556)
Custody credits earned on cash balances............................................................. (145) (115)
----------- ----------
Net expenses........................................................................................ 1,273,484 1,545,269
----------- ----------
Net investment income (loss)........................................................................... (78,998) 1,272,718
----------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)................................................. 8,425,828 3,388,963
Net realized foreign exchange gain (loss) on other assets and liabilities.............................. -- --
----------- ----------
Net realized gain (loss) on investments and foreign currencies......................................... 8,425,828 3,388,963
----------- ----------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)......................... (3,272,391) 50,934
Change in unrealized foreign exchange gain (loss) on other assets and liabilities...................... -- --
----------- ----------
Net unrealized gain (loss) on investments and foreign currencies....................................... (3,272,391) 50,934
----------- ----------
Net realized and unrealized gain (loss) on investments and foreign currencies.......................... 5,153,437 3,439,897
----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................................ $ 5,074,439 $4,712,615
=========== ==========
- --------
*Net of foreign withholding taxes on interest and dividends of......................................... $ -- $ 7,652
=========== ==========
International
Equity
Fund
-------------
INVESTMENT INCOME:
Dividends (unaffiliated)............................................................................. $ 401,061
Interest (unaffiliated).............................................................................. 27,799
-----------
Total investment income*............................................................................ 428,860
-----------
EXPENSES:
Investment advisory and management fees.............................................................. 487,714
Distribution and service maintenance fees
Class A............................................................................................. 87,231
Class B............................................................................................. 102,156
Class C............................................................................................. 95,321
Service fees Class I................................................................................. 10,252
Transfer agent fees and expenses
Class A............................................................................................. 64,814
Class B............................................................................................. 32,000
Class C............................................................................................. 26,060
Class I............................................................................................. 9,022
Registration fees
Class A............................................................................................. 7,936
Class B............................................................................................. 6,566
Class C............................................................................................. 6,131
Class I............................................................................................. 5,191
Class Z............................................................................................. --
Custodian fees....................................................................................... 67,104
Reports to shareholders.............................................................................. 21,103
Audit and tax fees................................................................................... 15,910
Legal fees........................................................................................... 1,545
Trustees' fees and expenses.......................................................................... 2,861
Interest expense..................................................................................... --
Other expenses....................................................................................... 5,440
-----------
Total expenses before fee waivers, expense reimbursements, expense recoupments and custody credits.. 1,054,357
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 3)................... (3,326)
Custody credits earned on cash balances............................................................. (121)
-----------
Net expenses........................................................................................ 1,050,910
-----------
Net investment income (loss)........................................................................... (622,050)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)................................................. 11,541,844
Net realized foreign exchange gain (loss) on other assets and liabilities.............................. 7,177
-----------
Net realized gain (loss) on investments and foreign currencies......................................... 11,549,021
-----------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)......................... 5,281,608
Change in unrealized foreign exchange gain (loss) on other assets and liabilities...................... 4,245
-----------
Net unrealized gain (loss) on investments and foreign currencies....................................... 5,285,853
-----------
Net realized and unrealized gain (loss) on investments and foreign currencies.......................... 16,834,874
-----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................................ $16,212,824
===========
- --------
*Net of foreign withholding taxes on interest and dividends of......................................... $ 33,231
===========
See Notes to Financial Statements
10
SunAmerica Equity Funds
STATEMENT OF OPERATIONS -- For the period ended March 31, 2006 --
(unaudited) (continued)
Biotech/
Value Health
Fund Fund
----------- -----------
INVESTMENT INCOME:
Dividends (unaffiliated)............................................................................. $ 2,925,219 $ 97,556
Interest (unaffiliated).............................................................................. 99,841 29,580
----------- -----------
Total investment income*............................................................................ 3,025,060 127,136
----------- -----------
EXPENSES:
Investment advisory and management fees.............................................................. 1,207,071 116,185
Distribution and service maintenance fees
Class A............................................................................................. 221,128 23,260
Class B............................................................................................. 269,747 52,968
Class C............................................................................................. 197,639 35,491
Service fees Class I................................................................................. 3,906 --
Transfer agent fees and expenses
Class A............................................................................................. 160,674 19,640
Class B............................................................................................. 75,182 16,425
Class C............................................................................................. 49,385 11,345
Class I............................................................................................. 3,481 --
Registration fees
Class A............................................................................................. 10,427 6,647
Class B............................................................................................. 6,089 6,840
Class C............................................................................................. 5,731 6,159
Class I............................................................................................. 3,281 --
Class Z............................................................................................. 5,083 --
Custodian fees....................................................................................... 42,084 16,147
Reports to shareholders.............................................................................. 30,156 19,473
Audit and tax fees................................................................................... 14,460 14,465
Legal fees........................................................................................... 5,132 1,628
Trustees' fees and expenses.......................................................................... 6,968 1,549
Interest expense..................................................................................... 339 --
Other expenses....................................................................................... 7,302 5,170
----------- -----------
Total expenses before fee waivers, expense reimbursements, expense recoupments and custody credits.. 2,325,265 353,392
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 3)................... (108,108) (55,624)
Custody credits earned on cash balances............................................................. (4) (158)
----------- -----------
Net expenses........................................................................................ 2,217,153 297,610
----------- -----------
Net investment income (loss)........................................................................... 807,907 (170,474)
----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)................................................. 11,143,773 1,623,563
Net realized foreign exchange gain (loss) on other assets and liabilities.............................. -- --
----------- -----------
Net realized gain (loss) on investments and foreign currencies......................................... 11,143,773 1,623,563
----------- -----------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)......................... (2,389,222) (1,029,684)
Change in unrealized foreign exchange gain (loss) on other assets and liabilities...................... -- --
----------- -----------
Net unrealized gain (loss) on investments and foreign currencies....................................... (2,389,222) (1,029,684)
----------- -----------
Net realized and unrealized gain (loss) on investments and foreign currencies.......................... 8,754,551 593,879
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................................ $ 9,562,458 $ 423,405
=========== ===========
- --------
*Net of foreign withholding taxes on interest and dividends of......................................... $ -- $ 4,042
=========== ===========
Tax Managed
Equity Fund
-----------
INVESTMENT INCOME:
Dividends (unaffiliated)............................................................................. $ 236,073
Interest (unaffiliated).............................................................................. 19,560
----------
Total investment income*............................................................................ 255,633
----------
EXPENSES:
Investment advisory and management fees.............................................................. 170,423
Distribution and service maintenance fees
Class A............................................................................................. 20,241
Class B............................................................................................. 72,008
Class C............................................................................................. 70,658
Service fees Class I................................................................................. --
Transfer agent fees and expenses
Class A............................................................................................. 14,764
Class B............................................................................................. 18,988
Class C............................................................................................. 17,833
Class I............................................................................................. --
Registration fees
Class A............................................................................................. 5,504
Class B............................................................................................. 6,022
Class C............................................................................................. 5,727
Class I............................................................................................. --
Class Z............................................................................................. --
Custodian fees....................................................................................... 23,699
Reports to shareholders.............................................................................. 17,261
Audit and tax fees................................................................................... 14,386
Legal fees........................................................................................... 1,811
Trustees' fees and expenses.......................................................................... 1,840
Interest expense..................................................................................... 7,159
Other expenses....................................................................................... 5,338
----------
Total expenses before fee waivers, expense reimbursements, expense recoupments and custody credits.. 473,662
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 3)................... (88,785)
Custody credits earned on cash balances............................................................. (1,426)
----------
Net expenses........................................................................................ 383,451
----------
Net investment income (loss)........................................................................... (127,818)
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)................................................. 6,274,849
Net realized foreign exchange gain (loss) on other assets and liabilities.............................. (3,569)
----------
Net realized gain (loss) on investments and foreign currencies......................................... 6,271,280
----------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)......................... 738,558
Change in unrealized foreign exchange gain (loss) on other assets and liabilities...................... (158)
----------
Net unrealized gain (loss) on investments and foreign currencies....................................... 738,400
----------
Net realized and unrealized gain (loss) on investments and foreign currencies.......................... 7,009,680
----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................................ $6,881,862
==========
- --------
*Net of foreign withholding taxes on interest and dividends of......................................... $ 4,249
==========
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
2006 September 30,
(unaudited) 2005
----------- -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ (327,366) $ (315,261)
Net realized gain (loss) on investments and foreign currencies........................ 4,746,758 7,805,094
Net unrealized gain (loss) on investments and foreign currencies...................... (1,260,694) (380,611)
----------- ------------
Net increase (decrease) in net assets resulting from operations......................... 3,158,698 7,109,222
----------- ------------
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 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 Z)............................................. -- --
----------- ------------
Total distributions to shareholders..................................................... -- --
----------- ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 6) (9,242,818) (19,947,968)
----------- ------------
Total increase (decrease) in net assets................................................. (6,084,120) (12,838,746)
NET ASSETS:
Beginning of period..................................................................... 86,045,083 98,883,829
----------- ------------
End of period+.......................................................................... $79,960,963 $ 86,045,083
=========== ============
- --------
+Includes accumulated undistributed net investment income (loss)........................ $ (357,963) $ (30,597)
=========== ============
Growth Opportunities Fund
--------------------------
For the
six months
ended For the year
March 31, ended
2006 September 30,
(unaudited) 2005
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ (396,437) $ (1,354,671)
Net realized gain (loss) on investments and foreign currencies........................ 14,250,701 2,100,231
Net unrealized gain (loss) on investments and foreign currencies...................... (7,210,732) 15,610,477
------------ ------------
Net increase (decrease) in net assets resulting from operations......................... 6,643,532 16,356,037
------------ ------------
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 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 Z)............................................. -- --
------------ ------------
Total distributions to shareholders..................................................... -- --
------------ ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 6) (11,498,696) (29,708,256)
------------ ------------
Total increase (decrease) in net assets................................................. (4,855,164) (13,352,219)
NET ASSETS:
Beginning of period..................................................................... $ 86,162,852 99,515,071
------------ ------------
End of period+.......................................................................... $ 81,307,688 $ 86,162,852
============ ============
- --------
+Includes accumulated undistributed net investment income (loss)........................ $ (422,430) $ (25,993)
============ ============
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
2006 September 30,
(unaudited) 2005
----------- -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ (251,806) $ (978,944)
Net realized gain (loss) on investments and foreign currencies........................ 15,657,534 20,006,729
Net unrealized gain (loss) on investments and foreign currencies...................... (7,968,779) 370,558
----------- ------------
Net increase (decrease) in net assets resulting from operations......................... 7,436,949 19,398,343
----------- ------------
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 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 Z)............................................. -- --
----------- ------------
Total distributions to shareholders..................................................... -- --
----------- ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 6) (9,180,212) (14,242,469)
----------- ------------
Total increase (decrease) in net assets................................................. (1,743,263) 5,155,874
NET ASSETS:
Beginning of period..................................................................... $99,622,083 94,466,209
----------- ------------
End of period+.......................................................................... $97,878,820 $ 99,622,083
=========== ============
- --------
+Includes accumulated undistributed net investment income (loss)........................ $ (301,659) $ (49,853)
=========== ============
Growth and Income Fund
--------------------------
For the six
months
ended For the year
March 31, ended
2006 September 30,
(unaudited) 2005
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ (78,998) $ 690,534
Net realized gain (loss) on investments and foreign currencies........................ 8,425,828 10,983,468
Net unrealized gain (loss) on investments and foreign currencies...................... (3,272,391) 3,664,558
------------ ------------
Net increase (decrease) in net assets resulting from operations......................... 5,074,439 15,338,560
------------ ------------
Distributions to shareholders from:
Net investment income (Class A)....................................................... (99,245) (579,790)
Net investment income (Class B)....................................................... -- --
Net investment income (Class C)....................................................... -- --
Net investment income (Class I)....................................................... (2,120) (9,046)
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 Z)............................................. -- --
------------ ------------
Total distributions to shareholders..................................................... (101,365) (588,836)
------------ ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 6) (22,909,171) (37,788,265)
------------ ------------
Total increase (decrease) in net assets................................................. (17,936,097) (23,038,541)
NET ASSETS:
Beginning of period..................................................................... 144,990,954 168,029,495
------------ ------------
End of period+.......................................................................... $127,054,857 $144,990,954
============ ============
- --------
+Includes accumulated undistributed net investment income (loss)........................ $ (118,253) $ 62,110
============ ============
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
2006 September 30,
(unaudited) 2005
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ 1,272,718 $ 2,915,164
Net realized gain (loss) on investments and foreign currencies........................ 3,388,963 12,701,272
Net unrealized gain (loss) on investments and foreign currencies...................... 50,934 (3,690,068)
------------ ------------
Net increase (decrease) in net assets resulting from operations......................... 4,712,615 11,926,368
------------ ------------
Distributions to shareholders from:
Net investment income (Class A)....................................................... (1,228,414) (2,655,391)
Net investment income (Class B)....................................................... (143,588) (380,072)
Net investment income (Class C)....................................................... (94,501) (227,801)
Net investment income (Class I)....................................................... (7,569) (15,336)
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 Z)............................................. -- --
------------ ------------
Total distributions to shareholders..................................................... (1,474,072) (3,278,600)
------------ ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 6) (19,230,016) (38,444,884)
------------ ------------
Total increase (decrease) in net assets................................................. (15,991,473) (29,797,116)
NET ASSETS:
Beginning of period..................................................................... 192,618,447 222,415,563
------------ ------------
End of period+.......................................................................... $176,626,974 $192,618,447
============ ============
- --------
+Includes accumulated undistributed net investment income (loss)........................ $ (276,464) $ (75,110)
============ ============
International Equity Fund
--------------------------
For the
six months
ended For the year
March 31, ended
2006 September 30,
(unaudited) 2005
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ (622,050) $ (97,309)
Net realized gain (loss) on investments and foreign currencies........................ 11,549,021 10,161,598
Net unrealized gain (loss) on investments and foreign currencies...................... 5,285,853 9,246,405
------------ -----------
Net increase (decrease) in net assets resulting from operations......................... 16,212,824 19,310,694
------------ -----------
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 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 Z)............................................. -- --
------------ -----------
Total distributions to shareholders..................................................... -- --
------------ -----------
Net increase (decrease) in net assets resulting from capital share transactions (Note 6) 9,301,240 (5,206,184)
------------ -----------
Total increase (decrease) in net assets................................................. 25,514,064 14,104,510
NET ASSETS:
Beginning of period..................................................................... 87,029,816 72,925,306
------------ -----------
End of period+.......................................................................... $112,543,880 $87,029,816
============ ===========
- --------
+Includes accumulated undistributed net investment income (loss)........................ $ (707,292) $ (85,242)
============ ===========
See Notes to Financial Statements
14
SunAmerica Equity Funds
STATEMENT OF CHANGES IN NET ASSETS -- (continued)
Value Fund
--------------------------
For the
six months
ended For the year
March 31, ended
2006 September 30,
(unaudited) 2005
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ 807,907 $ 1,814,549
Net realized gain (loss) on investments and foreign currencies........................ 11,143,773 16,075,488
Net unrealized gain (loss) on investments and foreign currencies...................... (2,389,222) 11,418,921
------------ ------------
Net increase (decrease) in net assets resulting from operations......................... 9,562,458 29,308,958
------------ ------------
Distributions to shareholders from:
Net investment income (Class A)....................................................... (937,019) (1,618,502)
Net investment income (Class B)....................................................... (80,387) (693,156)
Net investment income (Class C)....................................................... (58,523) (345,179)
Net investment income (Class I)....................................................... (27,586) (84,084)
Net investment income (Class Z)....................................................... (189,399) (191,677)
Net realized gain on securities (Class A)............................................. (8,311,111) (9,914,545)
Net realized gain on securities (Class B)............................................. (3,719,250) (6,829,375)
Net realized gain on securities (Class C)............................................. (2,707,693) (3,400,905)
Net realized gain on securities (Class I)............................................. (214,316) (502,260)
Net realized gain on securities (Class Z)............................................. (1,144,084) (868,391)
------------ ------------
Total distributions to shareholders..................................................... (17,389,368) (24,448,074)
------------ ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 6) (10,889,917) 41,739,610
------------ ------------
Total increase (decrease) in net assets................................................. (18,716,827) 46,600,494
NET ASSETS:
Beginning of period..................................................................... 249,965,427 203,364,933
------------ ------------
End of period+.......................................................................... $231,248,600 $249,965,427
============ ============
- --------
+Includes accumulated undistributed net investment income (loss)........................ $ 538,663 $ 1,023,670
============ ============
Biotech/Health Fund
-------------------------
For the
six months
ended For the year
March 31, ended
2006 September 30,
(unaudited) 2005
----------- -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ (170,474) $ (549,402)
Net realized gain (loss) on investments and foreign currencies........................ 1,623,563 1,462,261
Net unrealized gain (loss) on investments and foreign currencies...................... (1,029,684) 5,712
----------- -----------
Net increase (decrease) in net assets resulting from operations......................... 423,405 918,571
----------- -----------
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 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 Z)............................................. -- --
----------- -----------
Total distributions to shareholders..................................................... -- --
----------- -----------
Net increase (decrease) in net assets resulting from capital share transactions (Note 6) (3,779,249) (8,724,957)
----------- -----------
Total increase (decrease) in net assets................................................. (3,355,844) (7,806,386)
NET ASSETS:
Beginning of period..................................................................... 32,833,731 40,640,117
----------- -----------
End of period+.......................................................................... $29,477,887 $32,833,731
=========== ===========
- --------
+Includes accumulated undistributed net investment income (loss)........................ $ (174,619) $ (4,145)
=========== ===========
See Notes to Financial Statements
15
SunAmerica Equity Funds
STATEMENT OF CHANGES IN NET ASSETS -- (continued)
Tax Managed Equity Fund
-------------------------
For the
six months
ended For the year
March 31, ended
2006 September 30,
(unaudited) 2005
----------- -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ (127,818) $ 123,767
Net realized gain (loss) on investments and foreign currencies........................ 6,271,280 (347,518)
Net unrealized gain (loss) on investments and foreign currencies...................... 738,400 2,730,123
----------- ------------
Net increase (decrease) in net assets resulting from operations......................... 6,881,862 2,506,372
----------- ------------
Distributions to shareholders from:
Net investment income (Class A)....................................................... (51,048) (69,828)
Net investment income (Class B)....................................................... (1,497) --
Net investment income (Class C)....................................................... (1,412) --
Net investment income (Class I)....................................................... -- --
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 Z)............................................. -- --
----------- ------------
Total distributions to shareholders..................................................... (53,957) (69,828)
----------- ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 6) (804,951) (13,611,181)
----------- ------------
Total increase (decrease) in net assets................................................. 6,022,954 (11,174,637)
NET ASSETS:
Beginning of period..................................................................... 40,351,388 51,526,025
----------- ------------
End of period+.......................................................................... $46,374,342 $ 40,351,388
=========== ============
- --------
+Includes accumulated undistributed net investment income (loss)........................ $ (136,706) $ 45,069
=========== ============
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
- -
09/30/01 $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
09/30/05 14.09 (0.01) 1.13 1.12 -- -- -- 15.21 7.95 56,755
03/31/06(7) 15.21 (0.04) 0.64 0.60 -- -- -- 15.81 3.94 53,641
Class B
- -
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
09/30/05 12.70 (0.11) 1.02 0.91 -- -- -- 13.61 7.17 22,558
03/31/06(7) 13.61 (0.09) 0.57 0.48 -- -- -- 14.09 3.53 20,395
Class C+
- -
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
09/30/05 12.65 (0.13) 1.01 0.88 -- -- -- 13.53 6.96 5,278
03/31/06(7) 13.53 (0.09) 0.57 0.48 -- -- -- 14.01 3.55 5,083
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
09/30/05 14.17 0.03 1.14 1.17 -- -- -- 15.34 8.26 1,454
03/31/06(7) 15.34 (0.03) 0.66 0.63 -- -- -- 15.97 4.11 842
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets net assets Turnover
- ---------- ------------- ---------
1.45% (0.15)% 136%
1.47(6) (0.47)(6) 107
1.54 (0.50) 114
1.60 (0.59) 145
1.59 (0.09) 120
1.55(4)(5) (0.56)(4)(5) 89
2.19% (0.89)% 136%
2.18(6) (1.18)(6) 107
2.32 (1.28) 114
2.26 (1.25) 145
2.32 (0.80) 120
2.28(4)(5) (1.29)(4)(5) 89
2.11%(5) (0.81)%(5) 136%
2.23(6) (1.25)(6) 107
2.44 (1.40) 114
2.37 (1.37) 145
2.49 (0.98) 120
2.26(4)(5) (1.26)(4)(5) 89
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(5) 0.22(5) 120
1.28(4)(5) (0.32)(4)(5) 89
- --------
(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/fee waivers (based on average
net assets):
09/30/01 09/30/02(6) 09/30/03 09/30/04 09/30/05 03/31/06(4)
-------- ----------- -------- -------- -------- -----------
Blue Chip Growth Class A. -- % -- % -- % -- % -- % 0.05%
Blue Chip Growth Class B. -- -- -- -- -- 0.05
Blue Chip Growth Class C+ 0.03 -- -- -- -- 0.05
Blue Chip Growth Class I. -- 0.08(4) 0.33 0.13 0.49 1.25
(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 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
- -
09/30/01 $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
09/30/05 13.65 (0.17) 2.79 2.62 -- -- -- 16.27 19.19 44,641
03/31/06(8) 16.27 (0.06) 1.51 1.45 -- -- -- 17.72 8.91 43,686
Class B
- -
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
09/30/05 12.27 (0.25) 2.50 2.25 -- -- -- 14.52 18.34 27,673
03/31/06(8) 14.52 (0.10) 1.34 1.24 -- -- -- 15.76 8.54 25,554
Class C+
- -
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
09/30/05 12.25 (0.26) 2.51 2.25 -- -- -- 14.50 18.37 12,089
03/31/06(8) 14.50 (0.10) 1.34 1.24 -- -- -- 15.74 8.55 11,458
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
09/30/05 13.75 (0.13) 2.82 2.69 -- -- -- 16.44 19.56 1,759
03/31/06(8) 16.44 (0.03) 1.51 1.48 -- -- -- 17.92 9.00 609
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets net assets Turnover
- ---------- ------------- ---------
1.49% (0.57)% 207%
1.49(6) (1.11)(6) 344
1.63 (1.11) 204
1.58 (1.09) 170
1.65 (1.15) 86
1.58(4)(5) (0.66)(4)(5) 113
2.17% (1.25)% 207%
2.18(6) (1.80)(6) 344
2.36 (1.85) 204
2.27 (1.78) 170
2.32 (1.82) 86
2.30(4)(5) (1.38)(4)(5) 113
2.16% (1.24)% 207%
2.21(6) (1.82)(6) 344
2.33 (1.82) 204
2.29 (1.80) 170
2.39 (1.89) 86
2.24(4)(5) (1.32)(4)(5) 113
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(5) (0.85)(5) 86
1.28(4)(5) (0.26)(4)(5) 113
- --------
(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/fee waivers (based on average
net assets):
09/30/01 09/30/02(6) 09/30/03 09/30/04 09/30/05 03/31/06(4)
-------- ----------- -------- -------- -------- -----------
Growth Opportunities Class A. -- % -- % -- % -- % -- % 0.05%
Growth Opportunities Class B. -- -- -- -- -- 0.05
Growth Opportunities Class C+ -- -- -- -- -- 0.05
Growth Opportunities Class I. -- 0.18(4) 0.50 0.18 0.49 1.59
(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 remained the same.
(7)The Fund's total return increased from a gain realized on the disposal of
investments in violation of investment restrictions on 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 Ratio of
Value investment realized Total from from net from Total Value end of expenses
beginning income and investment investment capital distri- end of Total period to average
Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's) net assets
- ------------ --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- -------- ----------
Class A
- -
09/30/01 $41.14 $(0.05) $(19.00) $(19.05) $-- $(8.88) $(8.88) $13.21 (54.88)% $101,691 1.46%
09/30/02 13.21 (0.13) (1.86) (1.99) -- -- -- 11.22 (15.06) 74,710 1.50
09/30/03 11.22 (0.13) 2.35 2.22 -- -- -- 13.44 19.79 85,685 1.57
09/30/04 13.44 (0.17) 1.50 1.33 -- -- -- 14.77 9.90 80,872 1.57
09/30/05 14.77 (0.15) 3.38 3.23 -- -- -- 18.00 21.87 87,314 1.58
03/31/06(4) 18.00 (0.04) 1.49 1.45 -- -- -- 19.45 8.06 86,143 1.54(5)
Class B
- -
09/30/01 $38.61 $(0.17) $(17.57) $(17.74) $-- $(8.88) $(8.88) $11.99 (55.15)% $ 39,577 2.11%
09/30/02 11.99 (0.20) (1.68) (1.88) -- -- -- 10.11 (15.68) 23,271 2.18
09/30/03 10.11 (0.20) 2.12 1.92 -- -- -- 12.03 18.99 16,078 2.28
09/30/04 12.03 (0.25) 1.35 1.10 -- -- -- 13.13 9.14 11,415 2.29
09/30/05 13.13 (0.25) 3.00 2.75 -- -- -- 15.88 20.94 10,344 2.32
03/31/06(4) 15.88 (0.10) 1.32 1.22 -- -- -- 17.10 7.68 9,729 2.35(5)
Class C+
- -
09/30/01 $38.55 $(0.17) $(17.54) $(17.71) $-- $(8.88) $(8.88) $11.96 (55.16)% $ 4,508 2.13%(3)
09/30/02 11.96 (0.20) (1.67) (1.87) -- -- -- 10.09 (15.64) 2,447 2.14(3)
09/30/03 10.09 (0.18) 2.11 1.93 -- -- -- 12.02 19.13 2,183 2.14(3)
09/30/04 12.02 (0.22) 1.34 1.12 -- -- -- 13.14 9.32 2,180 2.10(3)
09/30/05 13.14 (0.22) 3.02 2.80 -- -- -- 15.94 21.31 1,964 2.14(3)
03/31/06(4) 15.94 (0.08) 1.32 1.24 -- -- -- 17.18 7.78 2,007 2.14(3)(5)
Ratio
of net
investment
income (loss)
to average Portfolio
net assets Turnover
- ------------- ---------
(0.23)% 282%
(0.92) 199
(1.08) 123
(1.20) 110
(0.89) 80
(0.43)(5) 102
(0.88)% 282%
(1.60) 199
(1.77) 123
(1.91) 110
(1.64) 80
(1.23)(5) 102
(0.90)%(3) 282%
(1.56)(3) 199
(1.63)(3) 123
(1.73)(3) 110
(1.45)(3) 80
(1.02)(3)(5) 102
- --------
(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)Net of the following expense reimbursements (based on average net assets):
09/30/01 09/30/02 09/30/03 09/30/04 09/30/05 03/31/06(5)
-------- -------- -------- -------- -------- -----------
New Century Class C+ 0.06% 0.27% 0.66% 0.48% 0.66% 0.65%
(4)Unaudited
(5)Annualized
+ 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
- -
09/30/01 $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
09/30/05 11.38 0.10 1.03 1.13 (0.11) -- (0.11) 12.40 9.89 65,666
03/31/06(7) 12.40 0.02 0.49 0.51 (0.02) -- (0.02) 12.89 4.11 63,456
Class B
- -
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
09/30/05 10.75 0.02 0.97 0.99 -- -- -- 11.74 9.21 41,120
03/31/06(7) 11.74 (0.03) 0.46 0.43 -- -- -- 12.17 3.66 32,885
Class C+
- -
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
09/30/05 10.73 0.02 0.97 0.99 -- -- -- 11.72 9.23 37,448
03/31/06(7) 11.72 (0.03) 0.47 0.44 -- -- -- 12.16 3.75 30,353
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
09/30/05 11.41 0.12 1.04 1.16 (0.14) -- (0.14) 12.43 10.18 758
03/31/06(7) 12.43 0.03 0.49 0.52 (0.04) -- (0.04) 12.91 4.17 360
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets net assets Turnover
- ---------- ------------- ---------
1.45% (0.21)% 126%
1.50(6) (0.01)(6) 118
1.50 0.06 123
1.50 0.01 139
1.55 0.78 79
1.52(4) 0.24(4) 83
2.09% (0.85)% 126%
2.13(6) (0.66)(6) 118
2.16 (0.59) 123
2.17 (0.67) 139
2.20 0.16 79
2.21(4) (0.45)(4) 83
2.13% (0.88)% 126%
2.17(6) (0.68)(6) 118
2.16 (0.60) 123
2.14 (0.64) 139
2.18 0.17 79
2.19(4) (0.44)(4) 83
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
1.31(5) 1.00(5) 79
1.32(4)(5) 0.40(4)(5) 83
- --------
(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):
09/30/01 09/30/02(6) 09/30/03 09/30/04 09/30/05 03/31/06(4)
-------- ----------- -------- -------- -------- -----------
Growth and Income Class I -- % 0.12%(4) 0.37% 0.14% 0.96% 2.35%
(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
- -
09/30/01 $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
09/30/05 13.19 0.21 0.56 0.77 (0.24) -- (0.24) 13.72 5.84 142,573
03/31/06(8) 13.72 0.12 0.17 0.29 (0.05) -- (0.05) 13.96 2.67 133,637
Class B
- -
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
09/30/05 13.14 0.13 0.55 0.68 (0.15) -- (0.15) 13.67 5.16 30,002
03/31/06(8) 13.67 0.07 0.20 0.27 (0.03) -- (0.03) 13.91 2.31 25,361
Class C+
- -
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
09/30/05 13.16 0.13 0.55 0.68 (0.15) -- (0.15) 13.69 5.15 19,298
03/31/06(8) 13.69 0.07 0.20 0.27 (0.03) -- (0.03) 13.93 2.30 16,886
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
09/30/05 13.21 0.25 0.55 0.80 (0.28) -- (0.28) 13.73 6.10 746
03/31/06(8) 13.73 0.13 0.18 0.31 (0.06) -- (0.06) 13.98 2.85 742
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets net assets Turnover
- ---------- ------------- ---------
1.44% 1.32% 362%
1.47(6) 1.39(6) 485
1.49 0.86 409
1.50 0.89 181
1.62 1.56 160
1.51(4)(5) 1.67(4)(5) 87
2.08% 0.68% 362%
2.12(6) 0.73(6) 485
2.16 0.22 409
2.18 0.20 181
2.27 0.91 160
2.20(4)(5) 0.97(4)(5) 87
2.05%(5) 0.71%(5) 362%
2.13(6) 0.72(6) 485
2.15 0.22 409
2.18 0.21 181
2.26 0.92 160
2.16(4)(5) 1.01(4)(5) 87
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
1.32(5) 1.84(5) 160
1.28(4)(5) 1.90(4)(5) 87
- --------
(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/fee waivers (based on average
net assets):
09/30/01 09/30/02(6) 09/30/03 09/30/04 09/30/05 03/31/06(4)
-------- ----------- -------- -------- -------- -----------
Balanced Assets Class A. -- % -- % -- % -- % -- % 0.05%
Balanced Assets Class B. -- -- -- -- -- 0.05
Balanced Assets Class C+ 0.06 -- -- -- -- 0.05
Balanced Assets Class I. -- 0.19(4) 0.19 0.24 1.47 1.77
(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)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
09/30/05 10.20 0.02 2.82 2.84 -- -- -- 13.04 27.84 43,527
03/31/06(9) 13.04 (0.08) 2.43 2.35 -- -- -- 15.39 18.02 59,112
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
09/30/05 9.69 (0.06) 2.68 2.62 -- -- -- 12.31 27.04 19,546
03/31/06(9) 12.31 (0.11) 2.28 2.17 -- -- -- 14.48 17.63 22,234
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(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
09/30/05 9.68 (0.06) 2.67 2.61 -- -- -- 12.29 26.96 16,892
03/31/06(9) 12.29 (0.11) 2.28 2.17 -- -- -- 14.46 17.66 21,813
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
09/30/05 10.25 0.05 2.82 2.87 -- -- -- 13.12 28.00 7,065
03/31/06(9) 13.12 (0.06) 2.44 2.38 -- -- -- 15.50 18.14 9,385
Ratio
Ratio of of net
expenses investment
to average income (loss)
net to average Portfolio
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 0.17 126
1.90(3) (1.01)(3) 70
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 (0.51) 126
2.55(3) (1.69)(3) 70
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 (0.49) 126
2.55(3) (1.67)(3) 70
1.80%(3)(5)(7) 0.16%(3)(5)(7) 230%
1.80 0.43 209
1.80 (0.34) 202
1.80 0.43 126
1.80(3) (0.95)(3) 70
- --------
(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):
10/31/00 10/31/01 09/30/02(7) 09/30/03 09/30/04 09/30/05 03/31/06(3)
-------- -------- ----------- -------- -------- -------- -----------
International Equity Class A. 0.04% 0.03% 0.08% 0.18% 0.10% 0.09% (0.02)%
International Equity Class B. 0.04 0.06 0.14 0.13 0.11 0.17 0.06
International Equity Class C+ 0.10 0.14 0.13 0.28 0.06 0.14 0.02
International Equity Class I. -- -- 0.11 0.16 0.12 0.14 0.03
(5)The ratio reflects an expense cap which is net of custody credits of (0.01)%.
(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 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 $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
09/30/05 17.69 0.17 2.22 2.39 (0.29) (1.78) (2.07) 18.01 14.06 130,754
03/31/06(9) 18.01 0.08 0.64 0.72 (0.13) (1.17) (1.30) 17.43 4.13 121,074
Class B
- -
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
09/30/05 16.96 0.07 2.11 2.18 (0.18) (1.78) (1.96) 17.18 13.34 57,704
03/31/06(9) 17.18 0.02 0.63 0.65 (0.03) (1.17) (1.20) 16.63 3.86 50,084
Class C+
- -
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 30,985
09/30/05 16.96 0.06 2.12 2.18 (0.18) (1.78) (1.96) 17.18 13.34 41,095
03/31/06(9) 17.18 0.02 0.62 0.64 (0.03) (1.17) (1.20) 16.62 3.80 37,634
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
09/30/05 17.68 0.20 2.20 2.40 (0.30) (1.78) (2.08) 18.00 14.12 3,106
03/31/06(9) 18.00 0.08 0.66 0.74 (0.15) (1.17) (1.32) 17.42 4.24 3,098
Class Z
- -
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
09/30/05 18.18 0.27 2.30 2.57 (0.39) (1.78) (2.17) 18.58 14.77 17,307
03/31/06(9) 18.58 0.13 0.67 0.80 (0.19) (1.17) (1.36) 18.02 4.47 19,358
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets(4) net assets(4) Turnover
- ------------- ------------- ---------
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 1.00 82
1.63(3) 0.88(3) 71
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 0.38 82
2.28(3) 0.22(3) 71
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 0.36 82
2.28(3) 0.23(3) 71
1.68%(3) 1.26%(3) 188%
1.68(7) 2.02(7) 138
1.67(3) 2.31(3) 204
1.53 1.11 82
1.53(3) 0.98(3) 71
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 1.54 82
1.06(3) 1.45(3) 71
- --------
(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):
10/31/00 10/31/01 10/31/02 10/31/03 09/30/04(3) 09/30/05 03/31/06(3)
-------- -------- -------- -------- ----------- -------- -----------
Value Class A. 0.09% 0.00% 0.01% (0.01)% 0.04% 0.08% 0.08%
Value Class B. 0.07 -- (0.02) (0.01) 0.02 0.14 0.11
Value Class C+ 0.11 0.05 0.03 0.02 0.06 0.08 0.09
Value Class I. -- -- 0.19(3) -- 0.10 0.25 0.24
Value Class Z. 10.14 6.55 5.52 1.00 0.16 0.10 0.08
(5)The ratio reflects an expense cap which is net of custody credits of (0.01)%.
(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
09/30/05 9.03 (0.10) 0.48 0.38 -- -- -- 9.41 4.21 13,902
03/31/06(8) 9.41 (0.03) 0.18 0.15 -- -- -- 9.56 1.59 12,730
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
09/30/05 8.77 (0.16) 0.47 0.31 -- -- -- 9.08 3.53 11,448
03/31/06(8) 9.08 (0.06) 0.17 0.11 -- -- -- 9.19 1.21 9,920
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
09/30/05 8.79 (0.16) 0.47 0.31 -- -- -- 9.10 3.53 7,484
03/31/06(8) 9.10 (0.06) 0.17 0.11 -- -- -- 9.21 1.21 6,829
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 (1.17) 171
1.55(4) (0.73)(4) 63
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 (1.82) 171
2.20(4) (1.38)(4) 63
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 (1.83) 171
2.20(4) (1.38)(4) 63
- --------
(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(4) 09/30/05 03/31/06(4)
----------- -------- -------- -------- ----------- -------- -----------
Biotech/Health Class A. 0.49% 0.19% 0.20% 0.23% 0.28% 0.26% 0.32%
Biotech/Health Class B. 0.96 0.21 0.20 0.26 0.26 0.29 0.37
Biotech/Health Class C+ 1.09 0.20 0.21 0.33 0.26 0.31 0.42
(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
investments Distri - Net 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
09/30/05 11.27 0.09 0.53 0.62 (0.06) -- (0.06) 11.83 5.51 11,251
03/31/06(8) 11.83 (0.01) 2.24 2.23 (0.06) -- (0.06) 14.00 18.89 15,077
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
09/30/05 10.86 0.01 0.52 0.53 -- -- -- 11.39 4.88 15,117
03/31/06(8) 11.39 (0.05) 2.16 2.11 (0.00) -- (0.00) 13.50 18.54 14,272
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
09/30/05 10.88 0.01 0.51 0.52 -- -- -- 11.40 4.78 13,983
03/31/06(8) 11.40 (0.05) 2.16 2.11 (0.00) -- (0.00) 13.51 18.52 17,025
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 0.74 32
1.45(4) (0.18)(4) 487
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 0.09 32
2.10(4) (0.82)(4) 487
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 0.09 32
2.10(4) (0.82)(4) 487
- --------
(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(4) 09/30/05 03/31/06(4)
----------- -------- -------- -------- -------- ----------- -------- -----------
Tax Managed Equity Class A. 1.07% 0.23% 0.15% 0.00% 0.26% 0.24% 0.38% 0.45%
Tax Managed Equity Class B. 0.84 0.22 0.15 0.20 0.23 0.25 0.35 0.45
Tax Managed Equity Class C+ 0.83 0.22 0.14 0.21 0.23 0.24 0.33 0.43
(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, 2006 -- (unaudited)
Industry Allocation*
Telecommunications............. 9.8%
Retail......................... 9.1
Electronics.................... 8.8
Health Services................ 6.9
Pharmaceuticals................ 6.9
Computer Software.............. 6.1
Financial Services............. 5.9
Medical Products............... 5.9
Conglomerate................... 4.3
Manufacturing.................. 4.3
Internet Content............... 4.2
Apparel & Textiles............. 3.4
Food, Beverage & Tobacco....... 3.4
Aerospace & Military Technology 2.8
Broadcasting & Media........... 2.5
Computers & Business Equipment. 2.5
Machinery...................... 2.3
Energy Services................ 2.1
Household & Personal Products.. 2.1
Repurchase Agreements.......... 1.9
Chemicals...................... 1.1
Transportation................. 1.1
Insurance...................... 1.0
Energy Sources................. 0.9
Metals & Mining................ 0.7
-----
100.0%
=====
- --------
* Calculated as a percentage of net assets.
26
SunAmerica Blue Chip Growth Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2006 -- (unaudited)
Value
Security Description Shares (Note 2)
----------------------------------------------------------
COMMON STOCK -- 98.1%
Aerospace & Military Technology -- 2.8%
The Boeing Co......................... 17,500 $1,363,775
United Technologies Corp.............. 14,700 852,159
----------
2,215,934
----------
Apparel & Textiles -- 3.4%
Coach, Inc.+.......................... 44,200 1,528,436
NIKE, Inc., Class B................... 14,100 1,199,910
----------
2,728,346
----------
Broadcasting & Media -- 2.5%
Omnicom Group, Inc.................... 11,500 957,375
The Walt Disney Co.................... 35,700 995,673
----------
1,953,048
----------
Chemicals -- 1.1%
Sigma-Aldrich Corp.................... 13,000 855,270
----------
Computer Software -- 6.1%
EMC Corp.+............................ 84,900 1,157,187
Microsoft Corp........................ 104,200 2,835,282
Oracle Corp.+......................... 65,800 900,802
----------
4,893,271
----------
Computers & Business Equipment -- 2.5%
Apple Computer, Inc.+................. 12,200 765,184
International Business Machines Corp.. 14,500 1,195,815
----------
1,960,999
----------
Conglomerate -- 4.3%
General Electric Co................... 99,800 3,471,044
----------
Electronics -- 8.8%
Agilent Technologies, Inc.+........... 22,000 826,100
AMETEK, Inc........................... 38,700 1,739,952
Applied Materials, Inc................ 21,400 374,714
Broadcom Corp., Class A+.............. 6,100 263,276
Emerson Electric Co................... 9,300 777,759
Intel Corp............................ 40,004 774,077
L-3 Communications Holdings, Inc...... 11,600 995,164
Texas Instruments, Inc................ 40,000 1,298,800
----------
7,049,842
----------
Energy Services -- 2.1%
GlobalSantaFe Corp.................... 13,900 844,425
Halliburton Co........................ 11,100 810,522
----------
1,654,947
----------
Energy Sources -- 0.9%
Exxon Mobil Corp...................... 12,300 748,578
----------
Financial Services -- 5.9%
American Express Co................... 15,700 825,035
Merrill Lynch & Co., Inc.............. 16,300 1,283,788
The Bear Stearns Cos., Inc............ 9,300 1,289,910
The Goldman Sachs Group, Inc.......... 8,500 1,334,160
----------
4,732,893
----------
Food, Beverage & Tobacco -- 3.4%
Constellation Brands, Inc., Class A+.. 38,500 964,425
PepsiCo, Inc.......................... 30,900 1,785,711
----------
2,750,136
----------
Value
Security Description Shares (Note 2)
----------------------------------------------------------
Health Services -- 6.9%
Coventry Health Care, Inc.+............ 21,300 $1,149,774
Medco Health Solutions, Inc.+.......... 13,900 795,358
Omnicare, Inc.......................... 14,000 769,860
UnitedHealth Group, Inc................ 21,500 1,200,990
WellPoint, Inc.+....................... 21,100 1,633,773
----------
5,549,755
----------
Household & Personal Products -- 2.1%
Procter & Gamble Co.................... 29,500 1,699,790
----------
Insurance -- 1.0%
Marsh & McLennan Cos., Inc............. 26,900 789,784
----------
Internet Content -- 4.2%
eBay, Inc.+............................ 30,000 1,171,800
Google, Inc., Class A+................. 3,500 1,365,000
Yahoo!, Inc.+.......................... 24,800 800,048
----------
3,336,848
----------
Machinery -- 2.3%
IDEX Corp.............................. 35,400 1,846,818
----------
Manufacturing -- 4.3%
Danaher Corp........................... 15,700 997,735
Dover Corp............................. 25,000 1,214,000
ITT Industries, Inc.................... 22,400 1,259,328
----------
3,471,063
----------
Medical Products -- 5.9%
DENTSPLY International, Inc............ 10,300 598,945
Fisher Scientific International, Inc.+. 17,300 1,177,265
Johnson & Johnson...................... 30,700 1,818,054
Medtronic, Inc......................... 22,700 1,152,025
----------
4,746,289
----------
Metals & Mining -- 0.7%
Companhia Vale do Rio Doce ADR......... 12,200 592,066
----------
Pharmaceuticals -- 6.9%
Abbott Laboratories.................... 19,900 845,153
Amgen, Inc.+........................... 22,400 1,629,600
Biogen Idec, Inc.+..................... 29,900 1,408,290
Genzyme Corp.+......................... 11,800 793,196
Novartis AG ADR........................ 15,300 848,232
----------
5,524,471
----------
Retail -- 9.1%
Abercrombie & Fitch Co., Class A....... 3,500 204,050
CVS Corp............................... 56,700 1,693,629
Kohl's Corp.+.......................... 34,200 1,812,942
Target Corp............................ 15,400 800,954
The Home Depot, Inc.................... 33,500 1,417,050
Wal-Mart Stores, Inc................... 28,300 1,336,892
----------
7,265,517
----------
Telecommunications -- 9.8%
Cisco Systems, Inc.+................... 84,400 1,828,948
Corning, Inc.+......................... 36,600 984,906
Motorola, Inc.......................... 72,100 1,651,811
Nokia Oyj Sponsored ADR................ 39,100 810,152
QUALCOMM, Inc.......................... 32,250 1,632,173
Sprint Nextel Corp..................... 35,000 904,400
----------
7,812,390
----------
27
SunAmerica Blue Chip Growth Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2006 -- (unaudited) (continued)
Shares/
Principal Value
Security Description Amount (Note 2)
--------------------------------------------------------------
COMMON STOCK (continued)
Transportation -- 1.1%
Norfolk Southern Corp.............. 15,400 $ 832,678
-----------
Total Long-Term Investment Securities
(cost $74,590,393)................. 78,481,777
-----------
REPURCHASE AGREEMENTS -- 1.9%
State Street Bank & Trust Co.
Joint Repurchase Agreement(1)
(cost $1,481,000)................. $1,481,000 1,481,000
-----------
TOTAL INVESTMENTS
(cost $76,071,393)(2).............. 100.0% 79,962,777
Liabilities in excess of other assets 0.0 (1,814)
---------- -----------
NET ASSETS 100.0% $79,960,963
========== ===========
- --------
+ Non-income producing securities
(1)See Note 2 for details of Joint Repurchase Agreements
(2)See Note 5 for cost of investments on a tax basis
ADR -- AmericanDepository Receipt
See Notes to Financial Statements
28
SunAmerica Growth Opportunities Fund
PORTFOLIO PROFILE -- March 31, 2006 -- (unaudited)
Industry Allocation*
Business Services.............. 9.2%
Repurchase Agreements.......... 7.3
Health Services................ 7.1
Telecommunications............. 6.6
Retail......................... 6.5
Electronics.................... 6.4
Computer Software.............. 5.5
Pharmaceuticals................ 5.0
Energy Sources................. 4.8
Energy Services................ 4.6
Leisure & Tourism.............. 4.5
Medical Products............... 4.0
Aerospace & Military Technology 3.5
Banks.......................... 3.2
Metals & Mining................ 3.2
Manufacturing.................. 3.0
Internet Software.............. 2.0
Automotive..................... 1.9
Computers & Business Equipment. 1.9
Financial Services............. 1.4
Apparel & Textiles............. 1.3
Restaurants.................... 1.3
Transportation................. 1.3
Utilities...................... 1.1
Household & Personal Products.. 0.8
Machinery...................... 0.8
----
98.2%
====
- --------
* Calculated as a percentage of net assets.
29
SunAmerica Growth Opportunities Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2006 -- (unaudited)
Value
Security Description Shares (Note 2)
----------------------------------------------------------
COMMON STOCK -- 90.9%
Aerospace & Military Technology -- 3.5%
DRS Technologies, Inc................ 17,700 $ 971,199
Esterline Technologies Corp.+........ 30,000 1,282,500
TransDigm Group, Inc.+............... 21,300 548,475
----------
2,802,174
----------
Apparel & Textiles -- 1.3%
Quiksilver, Inc.+.................... 76,400 1,058,904
----------
Automotive -- 1.9%
Midas, Inc.+......................... 70,500 1,541,835
----------
Banks -- 3.2%
Franklin Bank Corp.+................. 94,900 1,824,927
Signature Bank+...................... 23,900 778,901
----------
2,603,828
----------
Business Services -- 9.2%
Alliance Data Systems Corp.+......... 41,100 1,922,247
Clayton Holdings, Inc.+.............. 18,800 396,304
Healthcare Services Group, Inc....... 29,200 623,712
Heartland Payment Systems, Inc.+..... 80,900 2,003,893
PeopleSupport, Inc.+................. 113,300 1,110,340
Rollins, Inc......................... 67,400 1,364,176
----------
7,420,672
----------
Computer Software -- 5.5%
Bottomline Technologies, Inc.+....... 66,400 911,672
Lawson Software, Inc.+............... 220,300 1,689,701
Parametric Technology Corp.+......... 94,760 1,547,431
THQ, Inc.+........................... 12,600 326,214
----------
4,475,018
----------
Computers & Business Equipment -- 1.9%
Cogent, Inc.+........................ 41,800 766,612
Intergraph Corp.+.................... 19,200 799,872
----------
1,566,484
----------
Electronics -- 6.4%
AMETEK, Inc.......................... 33,300 1,497,168
AMIS Holdings, Inc.+................. 62,500 566,250
Entegris, Inc.+...................... 118,800 1,264,032
FLIR Systems, Inc.+.................. 31,200 886,392
ON Semiconductor Corp.+.............. 96,600 701,316
Ultralife Batteries, Inc.+........... 22,300 286,555
----------
5,201,713
----------
Energy Services -- 4.6%
Basic Energy Services, Inc.+......... 25,500 759,900
Global Industries, Ltd.+............. 62,200 901,278
RPC, Inc............................. 32,500 742,625
Todco, Class A+...................... 33,400 1,316,294
----------
3,720,097
----------
Energy Sources -- 4.8%
Bill Barrett Corp.+.................. 28,000 912,520
KCS Energy, Inc.+.................... 38,200 993,200
Range Resources Corp................. 36,900 1,007,739
Unit Corp.+.......................... 18,100 1,009,075
----------
3,922,534
----------
Value
Security Description Shares (Note 2)
------------------------------------------------------------------
Financial Services -- 1.4%
CapitalSource, Inc............................ 46,462 $1,155,974
----------
Health Services -- 7.1%
Dialysis Corp. of America+.................... 51,400 682,078
Kindred Healthcare, Inc.+..................... 30,400 764,560
LifePoint Hospitals, Inc.+.................... 40,700 1,265,770
Orchid Cellmark, Inc.+........................ 104,800 601,552
Symbion, Inc.+................................ 65,400 1,481,310
United Surgical Partners International, Inc.+. 26,900 952,529
----------
5,747,799
----------
Household & Personal Products -- 0.8%
Jarden Corp.+................................. 18,400 604,440
----------
Internet Software -- 2.0%
Aladdin Knowledge Systems, Ltd.+.............. 19,800 444,510
Openwave Systems, Inc.+....................... 53,100 1,145,898
----------
1,590,408
----------
Leisure & Tourism -- 4.5%
Boyd Gaming Corp.............................. 28,500 1,423,290
Gaylord Entertainment Co.+.................... 23,000 1,043,740
Regal Entertainment Group, Class A............ 64,600 1,215,126
----------
3,682,156
----------
Machinery -- 0.8%
Astec Industries, Inc.+....................... 17,200 617,480
----------
Manufacturing -- 3.0%
Applied Films Corp.+.......................... 46,400 901,552
Blount International, Inc.+................... 64,600 1,040,706
Matthews International Corp., Class A......... 13,000 497,380
----------
2,439,638
----------
Medical Products -- 4.0%
Allscripts Healthcare Solutions, Inc.+........ 33,000 604,230
Caliper Life Sciences, Inc.+.................. 70,700 452,480
DepoMed, Inc.+................................ 94,400 616,432
ev3, Inc.+.................................... 33,800 598,598
Kyphon, Inc.+................................. 27,100 1,008,120
----------
3,279,860
----------
Metals & Mining -- 3.2%
International Coal Group, Inc.+............... 108,000 1,051,920
Natural Resource Partners LP.................. 29,500 1,557,010
----------
2,608,930
----------
Pharmaceuticals -- 5.0%
CV Therapeutics, Inc.+........................ 36,500 805,920
DUSA Pharmaceuticals, Inc.+................... 96,400 680,584
MGI Pharma, Inc.+............................. 56,200 983,500
NPS Pharmaceuticals, Inc.+.................... 61,700 526,918
United Therapeutics Corp.+.................... 16,600 1,100,248
----------
4,097,170
----------
Restaurants -- 1.3%
Denny's Corp.+................................ 228,300 1,086,708
----------
Retail -- 6.5%
Allion Healthcare, Inc.+...................... 38,200 517,992
Guitar Center, Inc.+.......................... 32,300 1,540,710
30
SunAmerica Growth Opportunities Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2006 -- (unaudited) (continued)
Shares/
Principal Value
Security Description Amount (Note 2)
-------------------------------------------------------------------
COMMON STOCK (continued)
Retail (continued)
Inergy LP................................. 70,200 $ 1,877,850
Pacific Sunwear of California, Inc.+...... 60,000 1,329,600
-----------
5,266,152
-----------
Telecommunications -- 6.6%
ADTRAN, Inc............................... 21,300 557,634
Alaska Communications Systems Group, Inc.. 46,800 567,684
Arris Group, Inc.+........................ 75,800 1,043,008
Comtech Telecommunications Corp.+......... 38,400 1,120,128
NTELOS Holdings Corp.+.................... 48,600 680,886
SafeNet, Inc.+............................ 53,600 1,419,328
-----------
5,388,668
-----------
Transportation -- 1.3%
Hornbeck Offshore Services, Inc.+......... 29,900 1,078,493
-----------
Utilities -- 1.1%
DPL, Inc.................................. 34,000 918,000
-----------
Total Long-Term Investment Securities
(cost $68,839,413)....................... 73,875,135
-----------
REPURCHASE AGREEMENTS -- 7.3%
State Street Bank & Trust Co.
Joint Repurchase Agreement(1)............ $ 966,000 966,000
UBS Securities LLC
Joint Repurchase Agreement(1)............ 5,000,000 5,000,000
-----------
Total Repurchase Agreements
(cost $5,966,000)........................ 5,966,000
-----------
TOTAL INVESTMENTS
(cost $74,805,413)(2).................... 98.2% 79,841,135
Other assets less liabilities............... 1.8 1,466,553
---------- -----------
NET ASSETS 100.0% $81,307,688
========== ===========
- --------
+ Non-income producing securities
(1)See Note 2 for details of Joint Repurchase Agreements
(2)See Note 5 for cost of investments on a tax basis
See Notes to Financial Statements
31
SunAmerica New Century Fund
PORTFOLIO PROFILE -- March 31, 2006 -- (unaudited)
Industry Allocation*
Retail......................... 11.8%
Health Services................ 9.5
Electronics.................... 8.8
Repurchase Agreements.......... 8.6
Energy Sources................. 7.6
Medical Products............... 6.6
Leisure & Tourism.............. 4.6
Pharmaceuticals................ 4.6
Manufacturing.................. 4.4
Metals & Mining................ 4.3
Energy Services................ 4.0
Food, Beverage & Tobacco....... 3.8
Telecommunications............. 3.8
Internet Software.............. 3.4
Aerospace & Military Technology 3.0
Business Services.............. 2.9
Computers & Business Equipment. 1.8
Computer Software.............. 1.6
Financial Services............. 1.6
Household & Personal Products.. 1.4
Utilities...................... 1.1
Banks.......................... 0.9
Broadcasting & Media........... 0.8
-----
100.9%
=====
- --------
* Calculated as a percentage of net assets.
32
SunAmerica New Century Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2006 -- (unaudited)
Value
Security Description Shares (Note 2)
------------------------------------------------------
COMMON STOCK -- 92.3%
Aerospace & Military Technology -- 3.0%
DRS Technologies, Inc............. 21,600 $1,185,192
Goodrich Corp..................... 39,600 1,726,956
----------
2,912,148
----------
Banks -- 0.9%
Signature Bank+................... 27,200 886,448
----------
Broadcasting & Media -- 0.8%
Getty Images, Inc.+............... 10,500 786,240
----------
Business Services -- 2.9%
Alliance Data Systems Corp.+...... 60,400 2,824,908
----------
Computer Software -- 1.6%
Parametric Technology Corp.+...... 73,700 1,203,521
THQ, Inc.+........................ 14,500 375,405
----------
1,578,926
----------
Computers & Business Equipment -- 1.8%
Intergraph Corp.+................. 21,900 912,354
Cogent, Inc.+..................... 50,400 924,336
----------
1,836,690
----------
Electronics -- 8.8%
Altera Corp.+..................... 74,300 1,533,552
Analog Devices, Inc............... 36,500 1,397,585
Entegris, Inc.+................... 132,200 1,406,608
FLIR Systems, Inc.+............... 37,700 1,071,057
L-3 Communications Holdings, Inc.. 27,900 2,393,541
ON Semiconductor Corp.+........... 115,800 840,708
----------
8,643,051
----------
Energy Services -- 4.0%
Cooper Cameron Corp.+............. 21,900 965,352
Patterson-UTI Energy, Inc......... 41,900 1,339,124
Todco, Class A+................... 40,100 1,580,341
----------
3,884,817
----------
Energy Sources -- 7.6%
Bill Barrett Corp.+............... 34,100 1,111,319
EOG Resources, Inc................ 12,000 864,000
Newfield Exploration Co.+......... 25,000 1,047,500
Range Resources Corp.............. 44,300 1,209,833
Southwestern Energy Co.+.......... 30,500 981,795
Unit Corp.+....................... 21,700 1,209,775
XTO Energy, Inc................... 22,600 984,682
----------
7,408,904
----------
Financial Services -- 1.6%
CapitalSource, Inc................ 37,987 945,117
Legg Mason, Inc................... 4,700 589,051
----------
1,534,168
----------
Food, Beverage & Tobacco -- 3.8%
The Hershey Co.................... 40,500 2,115,315
Wm. Wrigley Jr. Co................ 25,100 1,606,400
----------
3,721,715
----------
Health Services -- 9.5%
Coventry Health Care, Inc.+....... 10,300 555,994
IMS Health, Inc................... 96,800 2,494,536
Value
Security Description Shares (Note 2)
------------------------------------------------------------------
Health Services (continued)
Kindred Healthcare, Inc.+..................... 34,500 $ 867,675
LifePoint Hospitals, Inc.+.................... 49,300 1,533,230
Omnicare, Inc................................. 26,000 1,429,740
Triad Hospitals, Inc.+........................ 30,700 1,286,330
United Surgical Partners International, Inc.+. 30,800 1,090,628
----------
9,258,133
----------
Household & Personal Products -- 1.4%
Fortune Brands, Inc........................... 8,200 661,166
Jarden Corp.+................................. 22,000 722,700
----------
1,383,866
----------
Internet Software -- 3.4%
Openwave Systems, Inc.+....................... 45,000 971,100
Symantec Corp.+............................... 140,200 2,359,566
----------
3,330,666
----------
Leisure & Tourism -- 4.6%
Boyd Gaming Corp.............................. 37,500 1,872,750
Gaylord Entertainment Co.+.................... 27,500 1,247,950
Regal Entertainment Group, Class A............ 72,200 1,358,082
----------
4,478,782
----------
Manufacturing -- 4.4%
Blount International, Inc.+................... 78,300 1,261,413
Danaher Corp.................................. 21,000 1,334,550
ITT Industries, Inc........................... 15,400 865,788
Pentair, Inc.................................. 21,300 867,975
----------
4,329,726
----------
Medical Products -- 6.6%
Biomet, Inc................................... 34,900 1,239,648
Fisher Scientific International, Inc.+........ 8,500 578,425
Invitrogen Corp. +............................ 17,600 1,234,288
Kinetic Concepts, Inc.+....................... 22,700 934,559
Kyphon, Inc.+................................. 33,000 1,227,600
The Cooper Cos., Inc.......................... 23,200 1,253,496
----------
6,468,016
----------
Metals & Mining -- 4.3%
International Coal Group, Inc.+............... 122,300 1,191,202
Massey Energy Co.............................. 31,800 1,147,026
Natural Resource Partners LP.................. 35,200 1,857,856
----------
4,196,084
----------
Pharmaceuticals -- 4.6%
CV Therapeutics, Inc.+........................ 41,100 907,488
MedImmune, Inc.+.............................. 17,700 647,466
MGI Pharma, Inc.+............................. 67,500 1,181,250
Sepracor, Inc.+............................... 15,100 737,031
United Therapeutics Corp.+.................... 16,300 1,080,364
----------
4,553,599
----------
Retail -- 11.8%
Abercrombie & Fitch Co., Class A.............. 20,000 1,166,000
Bed Bath & Beyond, Inc.+...................... 65,700 2,522,880
Guitar Center, Inc.+.......................... 39,100 1,865,070
Inergy LP..................................... 75,800 2,027,650
33
SunAmerica New Century Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2006 -- (unaudited) (continued)
Shares/
Principal Value
Security Description Amount (Note 2)
---------------------------------------------------------------
COMMON STOCK (continued)
Retail (continued)
Kohl's Corp.+........................ 46,200 $ 2,449,062
Pacific Sunwear of California, Inc.+. 69,200 1,533,472
-----------
11,564,134
-----------
Telecommunications -- 3.8%
Comverse Technology, Inc.+........... 33,000 776,490
Juniper Networks, Inc.+.............. 96,600 1,846,992
SafeNet, Inc.+....................... 40,300 1,067,144
-----------
3,690,626
-----------
Utilities -- 1.1%
DPL, Inc............................. 40,900 1,104,300
-----------
Total Long-Term Investment Securities
(cost $87,713,353).................. 90,375,947
-----------
REPURCHASE AGREEMENTS -- 8.6%
State Street Bank & Trust Co.
Joint Repurchase Agreement(1)....... $ 370,000 370,000
UBS Securities LLC
Joint Repurchase Agreement(1)....... 8,000,000 8,000,000
-----------
Total Repurchase Agreements
(cost $8,370,000)................... 8,370,000
-----------
TOTAL INVESTMENTS
(cost $96,083,353)(2)............... 100.9% 98,745,947
Liabilities in excess of other assets.. (0.9) (867,127)
---------- -----------
NET ASSETS 100.0% $97,878,820
========== ===========
- --------
+ Non-income producing securities
(1)See Note 2 for details of Joint Repurchase Agreements
(2)See Note 5 for cost of investments on a tax basis
See Notes to Financial Statements
34
SunAmerica Growth and Income Fund
PORTFOLIO PROFILE -- March 31, 2006 -- (unaudited)
Industry Allocation*
Financial Services............. 11.7%
Telecommunications............. 8.9
Electronics.................... 7.4
Energy Sources................. 6.9
Pharmaceuticals................ 6.5
Banks.......................... 5.9
Food, Beverage & Tobacco....... 5.5
Retail......................... 5.4
Aerospace & Military Technology 4.2
Broadcasting & Media........... 4.0
Computers & Business Equipment. 3.6
Medical Products............... 3.4
Computer Software.............. 3.1
Conglomerate................... 3.0
Insurance...................... 2.9
Manufacturing.................. 2.8
Health Services................ 2.5
Household & Personal Products.. 2.1
Utilities...................... 1.9
Energy Services................ 1.6
Apparel & Textiles............. 1.5
Chemicals...................... 1.0
Internet Content............... 1.0
Metals & Mining................ 1.0
Transportation................. 1.0
----
98.8%
====
- --------
* Calculated as a percentage of net assets.
35
SunAmerica Growth and Income Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2006 -- (unaudited)
Value
Security Description Shares (Note 2)
----------------------------------------------------------
COMMON STOCK -- 98.8%
Aerospace & Military Technology -- 4.2%
Alliant Techsystems, Inc.+............ 27,200 $2,099,024
The Boeing Co......................... 16,800 1,309,224
United Technologies Corp.............. 33,000 1,913,010
----------
5,321,258
----------
Apparel & Textiles -- 1.5%
NIKE, Inc., Class B................... 22,800 1,940,280
----------
Banks -- 5.9%
Bank of America Corp.................. 57,600 2,623,104
Wachovia Corp......................... 48,800 2,735,240
Wells Fargo & Co...................... 34,200 2,184,354
----------
7,542,698
----------
Broadcasting & Media -- 4.0%
Comcast Corp., Class A+............... 46,900 1,226,904
Omnicom Group, Inc.................... 14,800 1,232,100
The Walt Disney Co.................... 50,000 1,394,500
Viacom, Inc., Class B+................ 33,400 1,295,920
----------
5,149,424
----------
Chemicals -- 1.0%
The Dow Chemical Co................... 30,400 1,234,240
----------
Computer Software -- 3.1%
Microsoft Corp........................ 93,700 2,549,577
Oracle Corp.+......................... 98,700 1,351,203
----------
3,900,780
----------
Computers & Business Equipment -- 3.6%
Apple Computer, Inc.+................. 19,100 1,197,952
Hewlett-Packard Co.................... 43,600 1,434,440
International Business Machines Corp.. 23,700 1,954,539
----------
4,586,931
----------
Conglomerate -- 3.0%
General Electric Co................... 109,800 3,818,844
----------
Electronics -- 7.4%
AMETEK, Inc........................... 45,000 2,023,200
Applied Materials, Inc................ 86,200 1,509,362
Intel Corp............................ 64,900 1,255,815
L-3 Communications Holdings, Inc...... 27,100 2,324,909
ON Semiconductor Corp.+............... 132,900 964,854
Texas Instruments, Inc................ 42,000 1,363,740
----------
9,441,880
----------
Energy Services -- 1.6%
Schlumberger, Ltd..................... 16,000 2,025,120
----------
Energy Sources -- 6.9%
Apache Corp........................... 18,700 1,225,037
Chevron Corp.......................... 36,300 2,104,311
ConocoPhillips........................ 20,900 1,319,835
Exxon Mobil Corp...................... 66,900 4,071,534
----------
8,720,717
----------
Financial Services -- 11.7%
American Express Co................... 44,300 2,327,965
Capital One Financial Corp............ 22,700 1,827,804
Citigroup, Inc........................ 54,700 2,583,481
Value
Security Description Shares (Note 2)
---------------------------------------------------------
Financial Services (continued)
JPMorgan Chase & Co................ 48,600 $ 2,023,704
Merrill Lynch & Co., Inc........... 28,200 2,221,032
The Bear Stearns Cos., Inc......... 16,400 2,274,680
The Goldman Sachs Group, Inc....... 10,200 1,600,992
-----------
14,859,658
-----------
Food, Beverage & Tobacco -- 5.5%
Altria Group, Inc.................. 25,600 1,814,016
Archer-Daniels-Midland Co.......... 37,600 1,265,240
Diageo PLC Sponsored ADR........... 30,100 1,909,243
PepsiCo, Inc....................... 33,700 1,947,523
-----------
6,936,022
-----------
Health Services -- 2.5%
UnitedHealth Group, Inc............ 23,000 1,284,780
WellPoint, Inc.+................... 24,700 1,912,521
-----------
3,197,301
-----------
Household & Personal Products -- 2.1%
Procter & Gamble Co................ 46,900 2,702,378
-----------
Insurance -- 2.9%
The Allstate Corp.................. 35,200 1,834,272
The Chubb Corp..................... 19,800 1,889,712
-----------
3,723,984
-----------
Internet Content -- 1.0%
Yahoo!, Inc.+...................... 40,700 1,312,982
-----------
Manufacturing -- 2.8%
3M Co.............................. 17,500 1,324,575
ITT Industries, Inc................ 39,000 2,192,580
-----------
3,517,155
-----------
Medical Products -- 3.4%
Johnson & Johnson.................. 43,300 2,564,226
Medtronic, Inc..................... 33,600 1,705,200
-----------
4,269,426
-----------
Metals & Mining -- 1.0%
Alcoa, Inc......................... 43,000 1,314,080
-----------
Pharmaceuticals -- 6.5%
Abbott Laboratories................ 31,000 1,316,570
Amgen, Inc.+....................... 24,600 1,789,650
Genzyme Corp.+..................... 17,800 1,196,516
Pfizer, Inc........................ 78,150 1,947,498
Wyeth.............................. 40,700 1,974,764
-----------
8,224,998
-----------
Retail -- 5.4%
Kohl's Corp.+...................... 28,600 1,516,086
The Gap, Inc....................... 140,800 2,630,144
The Home Depot, Inc................ 32,600 1,378,980
Wal-Mart Stores, Inc............... 27,300 1,289,652
-----------
6,814,862
-----------
Telecommunications -- 8.9%
AT&T, Inc.......................... 88,000 2,379,520
Cisco Systems, Inc................. 88,600 1,919,962
36
SunAmerica Growth and Income Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2006 -- (unaudited) (continued)
Value
Security Description Shares (Note 2)
-----------------------------------------------------------
COMMON STOCK (continued)
Telecommunications (continued)
Motorola, Inc........................ 91,200 $ 2,089,392
QUALCOMM, Inc........................ 25,600 1,295,616
Sprint Nextel Corp................... 83,200 2,149,888
Verizon Communications, Inc.......... 42,700 1,454,362
------------
11,288,740
------------
Transportation -- 1.0%
United Parcel Service, Inc., Class B. 15,700 1,246,266
------------
Utilities -- 1.9%
FPL Group, Inc....................... 30,600 1,228,284
The Southern Co...................... 36,800 1,205,936
------------
2,434,220
------------
TOTAL INVESTMENTS
(cost $118,073,283)(1).............. 98.8% 125,524,244
Other assets less liabilities.......... 1.2 1,530,613
------ ------------
NET ASSETS 100.0% $127,054,857
====== ============
- --------
+ Non-income producing securities
(1)See Note 5 for cost of investments on a tax basis
ADR -- American Depository Receipt
See Notes to Financial Statements
37
SunAmerica Balanced Assets Fund
PORTFOLIO PROFILE -- March 31, 2006 -- (unaudited)
Industry Allocation*
--------------------
Financial Services............. 13.7%
U.S. Government Agencies....... 12.1
Telecommunications............. 7.4
Banks.......................... 5.8
Energy Sources................. 4.6
Pharmaceuticals................ 4.5
Retail......................... 4.2
Electronics.................... 3.6
Broadcasting & Media........... 3.4
Utilities...................... 3.2
Conglomerate................... 3.1
Health Services................ 3.1
Insurance...................... 3.0
Computer Software.............. 2.8
Food, Beverage, & Tobacco...... 2.6
Medical Products............... 2.3
Manufacturing.................. 2.1
Computers & Business Equipment. 1.8
U.S. Government Obligations.... 1.7
Apparel & Textiles............. 1.7
Foreign Government Agencies.... 1.7
Aerospace & Military Technology 1.5
Internet Content............... 1.5
Chemicals...................... 1.1
Repurchase Agreements.......... 1.1
Transportation................. 1.1
Energy Services................ 1.0
Machinery...................... 0.9
Household & Personal Products.. 0.8
Metals & Mining................ 0.8
Forest Products................ 0.4
Leisure & Tourism.............. 0.4
Business Services.............. 0.3
Restaurants.................... 0.3
Biotechnology.................. 0.2
Real Estate Companies.......... 0.2
Real Estate & Investment Trusts 0.2
Automotive..................... 0.1
Housing & Household Durables... 0.1
-----
100.4%
=====
- --------
* Calculated as a percentage of net assets.
38
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2006 -- (unaudited) (continued)
Value
Security Description Shares (Note 2)
----------------------------------------------------------
COMMON STOCK -- 64.4%
Aerospace & Military Technology -- 1.3%
The Boeing Co......................... 14,200 $1,106,606
United Technologies Corp.............. 20,584 1,193,254
----------
2,299,860
----------
Apparel & Textiles -- 1.7%
Coach, Inc.+.......................... 35,900 1,241,422
NIKE, Inc., Class B................... 20,500 1,744,550
----------
2,985,972
----------
Banks -- 3.7%
Bank of America Corp.................. 48,388 2,203,590
The Bank of New York Co., Inc......... 14,700 529,788
U.S. Bancorp.......................... 36,400 1,110,200
Wachovia Corp......................... 23,900 1,339,595
Wells Fargo & Co...................... 20,300 1,296,561
----------
6,479,734
----------
Broadcasting & Media -- 2.2%
Comcast Corp., Class A+............... 18,500 483,960
News Corp., Class A................... 49,074 815,119
Omnicom Group, Inc.................... 9,000 749,250
The Walt Disney Co.................... 49,000 1,366,610
Time Warner, Inc...................... 30,344 509,476
----------
3,924,415
----------
Chemicals -- 0.7%
Sigma-Aldrich Corp.................... 10,500 690,795
The Dow Chemical Co................... 12,500 507,500
----------
1,198,295
----------
Computer Software -- 2.7%
EMC Corp.+............................ 69,200 943,196
Microsoft Corp........................ 112,678 3,065,968
Oracle Corp.+......................... 53,100 726,939
----------
4,736,103
----------
Computers & Business Equipment -- 1.8%
Apple Computer, Inc.+................. 9,800 614,656
Hewlett-Packard Co.................... 25,500 838,950
International Business Machines Corp.. 20,985 1,730,633
----------
3,184,239
----------
Conglomerate -- 2.9%
General Electric Co................... 125,100 4,350,978
Honeywell International, Inc.......... 17,900 765,583
----------
5,116,561
----------
Electronics -- 3.5%
Agilent Technologies, Inc.+........... 17,900 672,145
AMETEK, Inc........................... 42,900 1,928,784
Applied Materials, Inc................ 17,400 304,674
Broadcom Corp., Class A+.............. 4,900 211,484
Emerson Electric Co................... 7,600 635,588
Intel Corp............................ 32,500 628,875
L-3 Communications Holdings, Inc...... 9,400 806,426
Texas Instruments, Inc................ 32,500 1,055,275
----------
6,243,251
----------
Energy Services -- 0.8%
GlobalSantaFe Corp.................... 11,300 686,475
Halliburton Co........................ 8,900 649,878
----------
1,336,353
----------
Value
Security Description Shares (Note 2)
-----------------------------------------------------------
Energy Sources -- 3.9%
Amerada Hess Corp...................... 5,300 $ 754,720
Apache Corp............................ 9,500 622,345
Chevron Corp........................... 22,728 1,317,542
ConocoPhillips......................... 12,700 802,005
Exxon Mobil Corp....................... 48,600 2,957,796
Marathon Oil Corp...................... 6,900 525,573
-----------
6,979,981
-----------
Financial Services -- 7.1%
American Express Co.................... 31,100 1,634,305
Capital One Financial Corp............. 10,718 863,014
Citigroup, Inc......................... 46,688 2,205,074
JPMorgan Chase & Co.................... 31,900 1,328,316
Merrill Lynch & Co., Inc............... 24,666 1,942,694
Morgan Stanley......................... 12,400 778,968
The Bear Stearns Cos., Inc............. 13,300 1,844,710
The Goldman Sachs Group, Inc........... 12,300 1,930,608
-----------
12,527,689
-----------
Food, Beverage & Tobacco -- 2.5%
Altria Group, Inc...................... 10,400 736,944
Constellation Brands, Inc., Class A+... 31,300 784,065
Diageo PLC Sponsored ADR............... 12,000 761,160
PepsiCo, Inc........................... 38,300 2,213,357
-----------
4,495,526
-----------
Forest Products -- 0.3%
Weyerhaeuser Co........................ 7,800 564,954
-----------
Health Services -- 3.0%
Coventry Health Care, Inc.+............ 17,300 933,854
Medco Health Solutions, Inc.+.......... 11,200 640,864
Omnicare, Inc.......................... 11,300 621,387
UnitedHealth Group, Inc................ 17,400 971,964
WellPoint, Inc.+....................... 26,900 2,082,867
-----------
5,250,936
-----------
Household & Personal Products -- 0.8%
Procter & Gamble Co.................... 24,000 1,382,880
-----------
Insurance -- 1.8%
The Chubb Corp......................... 10,900 1,040,296
Marsh & McLennan Cos., Inc............. 21,700 637,112
Metlife, Inc........................... 9,700 469,189
The Allstate Corp...................... 19,500 1,016,145
-----------
3,162,742
-----------
Internet Content -- 1.5%
eBay, Inc.+............................ 24,400 953,064
Google, Inc., Class A+................. 2,800 1,092,000
Yahoo!, Inc.+.......................... 20,000 645,200
-----------
2,690,264
-----------
Machinery -- 0.8%
IDEX Corp.............................. 28,700 1,497,279
-----------
Manufacturing -- 2.1%
Danaher Corp........................... 12,400 788,020
Dover Corp............................. 20,790 1,009,562
ITT Industries, Inc.................... 33,222 1,867,741
-----------
3,665,323
-----------
Medical Products -- 2.2%
DENTSPLY International, Inc............ 8,400 488,460
Fisher Scientific International, Inc.+. 14,400 979,920
39
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2006 -- (unaudited) (continued)
Shares/Principal Value
Security Description Amount (Note 2)
----------------------------------------------------------------
COMMON STOCK (continued)
Medical Products (continued)
Johnson & Johnson................ 24,900 $ 1,474,578
Medtronic, Inc................... 19,000 964,250
------------
3,907,208
------------
Metals & Mining -- 0.6%
Alcoa, Inc....................... 17,200 525,632
Cia Vale do Rio Doce ADR......... 9,900 480,447
------------
1,006,079
------------
Pharmaceuticals -- 4.2%
Abbott Laboratories.............. 16,100 683,767
Amgen, Inc.+..................... 18,200 1,324,050
Biogen Idec, Inc.+............... 24,300 1,144,530
Genzyme Corp.+................... 9,500 638,590
Merck & Co., Inc................. 16,000 563,680
Novartis AG ADR.................. 12,400 687,456
Pfizer, Inc...................... 63,314 1,577,785
Wyeth............................ 16,200 786,024
------------
7,405,882
------------
Restaurants -- 0.3%
McDonald's Corp.................. 16,000 549,760
------------
Retail -- 4.0%
Abercrombie & Fitch Co., Class A. 2,800 163,240
CVS Corp......................... 46,100 1,377,007
Kohl's Corp.+.................... 27,800 1,473,678
Target Corp...................... 12,400 644,924
The Gap, Inc..................... 59,900 1,118,932
The Home Depot, Inc.............. 27,200 1,150,560
Wal-Mart Stores, Inc............. 23,100 1,091,244
------------
7,019,585
------------
Telecommunications -- 6.3%
AT&T, Inc........................ 38,900 1,051,856
BellSouth Corp................... 26,700 925,155
Cisco Systems, Inc.+............. 68,600 1,486,562
Corning, Inc.+................... 29,700 799,227
Motorola, Inc.................... 93,700 2,146,667
Nokia Oyj Sponsored ADR.......... 31,800 658,896
QUALCOMM, Inc.................... 26,150 1,323,452
Sprint Nextel Corp............... 60,800 1,571,072
Verizon Communications, Inc...... 33,500 1,141,010
------------
11,103,897
------------
Transportation -- 0.4%
Norfolk Southern Corp............ 12,200 659,654
------------
Utilities -- 1.3%
Duke Energy Corp.+............... 26,600 775,390
FPL Group, Inc................... 19,200 770,688
The Southern Co.................. 24,200 793,034
------------
2,339,112
------------
Total Common Stock
(cost $107,621,410)............. 113,713,534
------------
ASSET-BACKED SECURITIES -- 3.5%
Financial Services -- 3.5%
Argent Securities, Inc.
Series 2006-W2, Class A2B
5.01% due 03/25/36(3)........... $650,000 649,993
Principal Value
Security Description Amount (Note 2)
---------------------------------------------------------------------
Financial Services (continued)
Banc of America Commercial Mtg., Inc.
Series 2005-6, Class D
5.35% due 09/10/47(5)(11).................... $ 200,000 $ 191,711
Banc of America Commercial Mtg., Inc.
Series 2005-6, Class F
5.35% due 09/10/47(5)(11).................... 400,000 381,188
Bear Stearns Commercial Mtg. Securities, Inc.
Series 2005-PW10, Class F
5.63% due 12/11/40(5)(11).................... 375,000 367,111
Citigroup Mtg. Loan Trust, Inc.
Series 2005-WF2, Class AF6B
5.55% due 08/25/35(7)(11).................... 540,000 507,777
Commercial Mtg. Pass Through Certificates
Series 2004-LB2A, Class A3
4.22% due 03/10/39(5)........................ 1,574,000 1,499,128
CS First Boston Mtg. Securities Corp.
Series 2005-TF3A, Class A2
5.03% due 11/15/20*(3)(5).................... 542,000 542,670
Merrill Lynch Mortgage Investors, Inc.
Series 2006-RM1W, Class A2D
5.51% due 02/25/37#(4)....................... 650,000 639,853
Morgan Stanley Capital I
Series 2005-HQ7, Class G
5.21% due 11/14/42*(5)(11)................... 240,000 228,706
Providian Master Note Trust
Series 2006-C1A, Class C1
5.30% due 03/15/15*#(3)...................... 1,100,000 1,100,000
----------
Total Asset-Backed Securities
(cost $6,186,410)............................ 6,108,137
----------
CORPORATE BONDS -- 12.6%
Aerospace & Military Technology -- 0.2%
Raytheon Co.
4.85% due 01/15/11........................... 120,000 116,596
Raytheon Co.
6.75% due 08/15/07........................... 220,000 223,444
----------
340,040
----------
Automotive -- 0.1%
Cooper-Standard Automotive, Inc.
8.38% due 12/15/14........................... 25,000 19,500
DaimlerChrysler NA Holding Corp.
7.30% due 01/15/12........................... 60,000 63,400
Dura Operating Corp.
8.63% due 04/15/12........................... 40,000 32,900
Ford Motor Co.
6.63% due 10/01/28........................... 25,000 16,750
----------
132,550
----------
Banks -- 1.8%
ABN Amro Holding NV
6.52% due 11/08/12*.......................... 130,000 134,564
Bank One Corp.
8.00% due 04/29/27........................... 90,000 109,388
BankBoston Capital Trust IV
5.46% due 06/08/28(3)........................ 222,000 214,536
Charter One Bank NA
6.38% due 05/15/12........................... 377,000 395,293
Chemical Bank NA
6.13% due 11/01/08........................... 136,000 138,092
Compass Bank
5.90% due 04/01/26........................... 341,000 333,539
Downey Financial Corp.
6.50% due 07/01/14........................... 140,000 139,582
40
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2006 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 2)
-------------------------------------
CORPORATE BONDS (continued)
Banks (continued)
First Maryland Capital II
5.53% due 02/01/27(3).............. $196,000 $ 192,006
HSBC Bank USA NA
5.63% due 08/15/35................. 80,000 74,317
Independence Community Bank Corp.
3.50% due 06/20/08(6).............. 64,000 61,233
PNC Funding Corp.
5.13% due 12/14/10................. 130,000 128,388
PNC Funding Corp.
5.75% due 08/01/06................. 240,000 240,377
Popular North America, Inc.
4.70% due 06/30/09................. 90,000 87,651
Sovereign Bancorp, Inc.
4.80% due 09/01/10*................ 206,000 198,964
U.S. Bank NA
3.90% due 08/15/08................. 38,000 36,889
Wachovia Bank NA
5.60% due 03/15/16................. 110,000 108,924
Wachovia Corp.
5.35% due 03/15/11................. 66,000 65,739
Washington Mutual Bank
5.50% due 01/15/13................. 238,000 235,228
Wells Fargo & Co.
6.38% due 08/01/11................. 65,000 67,777
World Savings Bank FSB
4.13% due 12/15/09................. 94,000 90,172
----------
3,052,659
----------
Biotechnology -- 0.2%
Genentech, Inc.
5.25% due 07/15/35................. 347,000 312,154
----------
Broadcasting & Media -- 1.0%
Affinity Group, Inc.
9.00% due 02/15/12................. 65,000 65,325
CBS Corp.
6.63% due 05/15/11................. 150,000 154,836
Chancellor Media CCU
8.00% due 11/01/08................. 182,000 191,052
Charter Communications Holdings LLC
11.13% due 01/15/11................ 120,000 63,600
Comcast Corp.
6.45% due 03/15/37................. 98,000 94,296
COX Communications, Inc.
7.13% due 10/01/12................. 120,000 125,888
COX Communications, Inc.
7.63% due 06/15/25................. 88,000 93,842
Knight-Ridder, Inc.
6.88% due 03/15/29................. 70,000 65,602
News America, Inc.
7.30% due 04/30/28................. 80,000 83,154
Nexstar Finance, Inc.
7.00% due 01/15/14................. 35,000 33,075
Omnicom Group, Inc.
5.90% due 04/15/16................. 60,000 59,067
Paxson Communications Corp.
10.78% due 01/15/13*(3)............ 225,000 222,750
Time Warner, Inc.
7.25% due 10/15/17................. 57,000 60,993
Principal Value
Security Description Amount (Note 2)
-----------------------------------------------------------
Broadcasting & Media (continued)
Time Warner Entertainment Co. LP
8.38% due 03/15/23................. $221,000 $ 249,869
Univision Communications, Inc.
3.50% due 10/15/07................. 60,000 58,069
Young Broadcasting, Inc.
10.00% due 03/01/11................ 125,000 115,313
----------
1,736,731
----------
Business Services -- 0.3%
Aramark Services, Inc.
7.00% due 05/01/07................. 146,000 147,831
Dun & Bradstreet Corp.
5.50% due 03/15/11................. 55,000 54,669
Erac USA Finance Co.
7.95% due 12/15/09*................ 90,000 96,929
First Data Corp.
3.38% due 08/01/08................. 72,000 68,810
Monitronics International, Inc.
11.75% due 09/01/10................ 85,000 85,213
Pitney Bowes, Inc.
4.75% due 01/15/16................. 111,000 103,327
----------
556,779
----------
Chemicals -- 0.3%
BCI US Finance Corp.
10.10% due 07/15/10*(3)............ 175,000 178,500
du Pont (E.I.) de Nemours & Co.
4.13% due 04/30/10................. 38,000 36,196
ICI Wilmington, Inc.
7.05% due 09/15/07................. 170,000 172,935
Lubrizol Corp.
4.63% due 10/01/09................. 65,000 62,976
----------
450,607
----------
Computer Software -- 0.1%
Oracle Corp.
5.00% due 01/15/11*................ 126,000 123,064
----------
Computer Services -- 0.0%
Computer Sciences Corp.
3.50% due 04/15/08................. 65,000 62,594
----------
Computers & Business Equipment -- 0.0%
Activant Solutions, Inc.
10.53% due 04/01/10*(3)............ 30,000 30,600
----------
Conglomerate -- 0.0%
Honeywell International, Inc.
5.40% due 03/15/16................. 55,000 54,291
----------
Electronics -- 0.1%
Arrow Electronics, Inc.
6.88% due 06/01/18................. 108,000 109,991
----------
Energy Services -- 0.2%
El Paso Production Holding Co.
7.75% due 06/01/13................. 165,000 170,981
Hanover Compressor Co.
9.00% due 06/01/14................. 75,000 80,625
Seitel, Inc.
11.75% due 07/15/11................ 100,000 113,750
----------
365,356
----------
41
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2006 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 2)
---------------------------------------------------------------
CORPORATE BONDS (continued)
Energy Sources -- 0.5%
Amerada Hess Corp.
7.13% due 03/15/33........................ $ 77,000 $ 84,016
Amerada Hess Corp.
7.88% due 10/01/29........................ 80,000 93,155
Calpine Corp.
8.75% due 07/15/13+*(8)(9)................ 340,000 311,950
Encore Acquisition Co.
6.00% due 07/15/15........................ 41,000 38,232
Encore Acquisition Co.
6.25% due 04/15/14........................ 24,000 22,980
Enterprise Products Operating LP
6.88% due 03/01/33........................ 85,000 86,836
Hilcorp Energy Finance Co.
10.50% due 09/01/10*...................... 61,000 67,176
Indiantown Cogeneration LP
Series A-9
9.26% due 12/15/10........................ 79,808 83,993
The Premcor Refining Group, Inc.
6.75% due 02/01/11........................ 126,000 131,301
--------
919,639
--------
Financial Services -- 2.3%
AMBAC Financial Group, Inc.
5.95% due 12/05/35........................ 75,000 72,364
Ameriprise Financial, Inc.
5.35% due 11/15/10........................ 91,000 90,081
Ameriprise Financial, Inc.
5.65% due 11/15/15........................ 130,000 128,147
BAE Systems Holdings, Inc.
4.75% due 08/15/10*....................... 410,000 395,272
Capital One Bank
5.13% due 02/15/14........................ 100,000 96,231
Consolidated Communications Holdings, Inc.
9.75% due 04/01/12........................ 159,000 168,540
Countrywide Home Loans, Inc.
4.13% due 09/15/09........................ 70,000 66,908
Ford Motor Credit Co.
5.80% due 01/12/09........................ 135,000 123,290
Ford Motor Credit Co.
7.00% due 10/01/13........................ 110,000 98,384
General Electric Capital Corp.
2.80% due 01/15/07........................ 261,000 256,396
General Motors Acceptance Corp.
6.75% due 12/01/14........................ 10,000 9,002
General Electric Capital Corp.
6.75% due 03/15/32........................ 243,000 270,599
General Motors Acceptance Corp.
6.88% due 09/15/11........................ 355,000 330,888
General Motors Acceptance Corp.
6.88% due 08/28/12........................ 13,000 11,993
General Motors Acceptance Corp.
7.25% due 03/02/11........................ 50,000 47,382
General Motors Acceptance Corp.
7.75% due 01/19/10........................ 150,000 146,252
General Motors Acceptance Corp.
8.00% due 11/01/31........................ 4,000 3,780
Jefferies Group, Inc.
6.25% due 01/15/36........................ 171,000 160,487
Lehman Brothers Holdings, Inc.
5.50% due 04/04/16........................ 209,000 204,893
Principal Value
Security Description Amount (Note 2)
---------------------------------------------------------
Financial Services (continued)
Lehman Brothers Holdings, Inc.,
Series H
4.50% due 07/26/10............... $130,000 $ 125,289
NGC Corp. Capital Trust,
Series B
8.32% due 06/01/27............... 160,000 140,800
Pricoa Global Funding I
3.90% due 12/15/08*.............. 100,000 96,279
Pricoa Global Funding I
4.63% due 06/25/12*.............. 70,000 66,477
Principal Life Global Funding I
6.25% due 02/15/12*.............. 100,000 103,484
Residential Capital Corp.
6.38% due 06/30/10............... 291,000 293,159
Residential Capital Corp.
6.88% due 06/30/15............... 103,000 107,379
Sprint Capital Corp.
6.88% due 11/15/28............... 182,000 187,776
Transamerica Finance Corp.
6.40% due 09/15/08............... 75,000 76,578
Xlliac Global Funding
4.80% due 08/10/10*.............. 135,000 130,860
----------
4,008,970
----------
Food, Beverage & Tobacco -- 0.1%
Dole Food Co., Inc.
8.88% due 03/15/11............... 30,000 29,700
Foster's Finance Corp.
6.88% due 06/15/11*.............. 65,000 68,260
----------
97,960
----------
Forest Products -- 0.1%
AEP Industries, Inc.
7.88% due 03/15/13............... 15,000 15,075
Crown Cork & Seal Co., Inc.
8.00% due 04/15/23............... 60,000 57,750
Pliant Corp.
11.13% due 09/01/09+(8).......... 92,000 96,830
----------
169,655
----------
Funeral Services -- 0.0%
Service Corp. International
6.75% due 04/01/16............... 60,000 59,400
----------
Health Services -- 0.1%
HCA, Inc.
6.95% due 05/01/12............... 150,000 151,449
Psychiatric Solutions, Inc.
7.75% due 07/15/15............... 100,000 101,750
----------
253,199
----------
Housing & Household Durables -- 0.1%
Stanley Works Capital Trust I
5.90% due 12/01/10*.............. 135,000 124,694
----------
Insurance -- 0.8%
Americo Life, Inc.
7.88% due 05/01/13*.............. 134,000 135,067
Chubb Corp.
6.00% due 11/15/11............... 91,000 92,797
Genworth Financial, Inc.
4.75% due 06/15/09............... 130,000 127,569
42
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2005 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 2)
------------------------------------------------------------
CORPORATE BONDS (continued)
Insurance (continued)
Markel Corp.
7.35% due 08/15/34................... $ 35,000 $ 36,092
Metropolitan Life Global Funding I
4.25% due 07/30/09*.................. 143,000 139,229
Metropolitan Life Global Funding I
4.63% due 08/19/10*.................. 65,000 62,863
MIC Financing Trust I
8.38% due 02/01/27*.................. 67,000 68,043
Ohio Casualty Corp.
7.30% due 06/15/14................... 201,000 209,510
Selective Insurance Group
6.70% due 11/01/35................... 75,000 72,201
The Allstate Corp.
5.95% due 04/01/36................... 312,000 303,904
The Allstate Corp.
7.20% due 12/01/09................... 238,000 251,523
----------
1,498,798
----------
Leisure & Tourism -- 0.4%
American Airlines, Inc.
Series 2001-01, Class A-2
6.82% due 11/23/12................... 200,000 196,500
Brunswick Corp.
5.00% due 06/01/11................... 103,000 98,080
Continental Airlines, Inc., Class C-1
7.73% due 09/15/12................... 8,778 7,585
Delta Airlines, Inc.
8.30% due 12/15/29(8)(9)............. 60,000 16,050
Delta Airlines, Inc.
10.00% due 08/15/08(8)(9)............ 75,000 19,125
Hilton Hotels Corp.
7.20% due 12/15/09................... 72,000 74,808
MGM Mirage, Inc.
5.88% due 02/27/14................... 125,000 117,813
Riviera Holdings Corp.
11.00% due 06/15/10.................. 55,000 58,438
----------
588,399
----------
Medical Products -- 0.1%
Boston Scientific Corp.
6.25% due 11/15/35................... 154,000 157,349
Universal Hospital Services, Inc.
10.13% due 11/01/11.................. 65,000 67,438
----------
224,787
----------
Metals & Mining -- 0.1%
Barrick Gold Finance Co.
7.50% due 05/01/07................... 97,000 99,131
Newmont Mining Corp.
8.63% due 05/15/11................... 65,000 73,367
Phelps Dodge Corp.
6.13% due 03/15/34................... 89,000 83,098
----------
255,596
----------
Pharmaceuticals -- 0.2%
American Home Products
6.70% due 03/15/11................... 123,000 130,406
AmerisourceBergen Corp.
5.63% due 09/15/12*(12).............. 50,000 49,175
Merck & Co., Inc.
2.50% due 03/30/07................... 129,000 125,505
Principal Value
Security Description Amount (Note 2)
---------------------------------------------------------------
Pharmaceuticals (continued)
Teva Pharmaceutical Finance LLC
6.15% due 02/01/36...................... $ 84,000 $ 79,172
----------
384,258
----------
Real Estate Companies -- 0.1%
EOP Operating LP
7.00% due 07/15/11...................... 120,000 126,261
ERP Operating LP
5.38% due 08/01/16...................... 75,000 72,461
----------
198,722
----------
Real Estate Investment Trusts -- 0.2%
Brandywine Operating Partnership LP
6.00% due 04/01/16...................... 66,000 65,315
Commercial Net Lease Realty, Inc.
6.15% due 12/15/15...................... 65,000 64,106
Duke Realty Corp.
5.50% due 03/01/16...................... 60,000 58,218
Heritage Property Investment Trust, Inc.
4.50% due 10/15/09...................... 60,000 57,532
Mack-Cali Realty LP
5.80% due 01/15/16...................... 60,000 58,589
Reckson Operating Partnership LP
6.00% due 03/31/16...................... 60,000 59,519
Vornado Realty LP
4.75% due 12/01/10...................... 60,000 57,418
----------
420,697
----------
Retail -- 0.1%
Rent-Way, Inc.
11.88% due 06/15/10..................... 114,000 119,130
----------
Telecommunications -- 0.8%
Alltel Corp.
4.66% due 05/17/07...................... 169,000 167,868
American Cellular Corp.
10.00% due 08/01/11..................... 225,000 244,125
Corning, Inc.
6.20% due 03/15/16...................... 72,000 71,997
GTE Corp.
6.94% due 04/15/28...................... 112,000 112,475
GTE Northwest, Inc.
5.55% due 10/15/08...................... 70,000 69,552
LCI International, Inc.
7.25% due 06/15/07...................... 290,000 292,900
New England Telephone & Telegraph Co.
7.88% due 11/15/29...................... 80,000 84,646
Triton PCS, Inc.
8.50% due 06/01/13...................... 25,000 23,750
Verizon New England, Inc.
6.50% due 09/15/11...................... 65,000 65,988
Verizon New York, Inc.,
Series A
6.88% due 04/01/12...................... 42,000 43,143
Verizon New York, Inc.,
Series B
7.38% due 04/01/32...................... 297,000 301,242
----------
1,477,686
----------
Transportation -- 0.6%
Atlas Air, Inc.
7.63% due 07/02/16...................... 499,529 449,576
Burlington Northern Santa Fe Corp.
7.29% due 06/01/36...................... 156,000 180,873
43
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2006 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 2)
--------------------------------------------------------------
CORPORATE BONDS (continued)
Transportation (continued)
CNF, Inc.
6.70% due 05/01/34..................... $117,000 $ 114,817
Norfolk Southern Corp.
5.59% due 05/17/25..................... 195,000 185,909
Ryder Systems, Inc.
5.00% due 06/15/12..................... 138,000 130,630
----------
1,061,805
----------
Utilities -- 1.7%
American Electric Power Co., Inc.
4.71% due 08/16/07(4).................. 72,000 71,306
CenterPoint Energy Houston Electric LLC
5.60% due 07/01/23..................... 100,000 94,682
Centerpoint Energy, Inc.
5.88% due 06/01/08..................... 140,000 140,714
Cleco Power LLC
6.50% due 12/01/35..................... 75,000 73,101
Commonwealth Edison Co.
5.90% due 03/15/36..................... 104,000 99,067
Consumers Energy Co.
4.25% due 04/15/08..................... 140,000 136,537
Dominion Resources, Inc.,
Series A
5.69% due 05/15/08(4).................. 132,000 132,234
Duke Energy Corp.
4.20% due 10/01/08..................... 120,000 116,427
Duquesne Light Holdings, Inc.
6.25% due 08/15/35..................... 36,000 33,485
Entergy Louisiana LLC
5.83% due 11/01/10..................... 195,000 192,618
Florida Power & Light Co.
5.95% due 10/01/33..................... 79,000 78,555
KeySpan Corp.
4.90% due 05/16/08..................... 357,000 353,125
NRG Energy, Inc.
7.25% due 02/01/14..................... 40,000 40,650
NRG Energy, Inc.
7.38% due 02/01/16..................... 160,000 163,400
Pepco Holdings, Inc.
5.50% due 08/15/07..................... 142,000 142,015
PSEG Power LLC
7.75% due 04/15/11..................... 65,000 70,617
PSI Energy, Inc.
6.12% due 10/15/35..................... 75,000 72,788
PSI Energy, Inc.
7.85% due 10/15/07..................... 219,000 226,289
Public Service Electric & Gas Co.
5.00% due 08/15/14..................... 66,000 63,329
Puget Sound Energy, Inc.
5.20% due 10/01/15..................... 212,000 202,740
Reliant Energy, Inc.
7.75% due 02/15/11..................... 130,000 140,785
Reliant Energy, Inc.
9.50% due 07/15/13..................... 100,000 100,125
Sempra Energy
4.62% due 05/17/07..................... 60,000 59,466
Southern California Edison Co.
5.63% due 02/01/36..................... 84,000 78,628
Southern California Gas Co.
5.75% due 11/15/35..................... 75,000 72,897
Principal Value
Security Description Amount (Note 2)
-------------------------------------------------------------
Utilities (continued)
Southern Energy, Inc.
7.90% due 07/15/09+#(10)............. $150,000 $ 0
The AES Corp.
7.75% due 03/01/14................... 100,000 105,000
-----------
3,060,580
-----------
Total Corporate Bonds
(cost $22,522,159)................... 22,251,391
-----------
FOREIGN BONDS & NOTES -- 2.9%
Banks -- 0.3%
Banco Continental de Panama SA
6.63% due 12/01/10*.................. 68,000 67,436
Caisse Nationale
5.09% due 07/30/49(3)................ 109,000 96,329
Mizuho Finance
8.38% due 09/27/49................... 145,000 154,425
National Westminster Bank PLC
7.75% due 10/16/07(6)................ 55,000 56,760
UOB Cayman, Ltd.
5.80% due 03/15/16*(6)............... 130,000 127,259
-----------
502,209
-----------
Broadcasting & Media -- 0.2%
Grupo Televisa SA
6.63% due 03/18/25................... 139,000 136,394
Telenet Group Holding NV
11.50% due 06/15/14*(4).............. 196,000 163,905
-----------
300,299
-----------
Chemicals -- 0.1%
Sociedad Quimica y Minera de Chile SA
6.13% due 04/15/16*#................. 140,000 139,934
-----------
Conglomerate -- 0.2%
Tyco International Group SA
6.75% due 02/15/11................... 284,000 295,382
-----------
Energy Sources -- 0.2%
BHP Billiton Finance USA, Ltd.
5.00% due 12/15/10................... 130,000 127,807
Nexen, Inc.
5.88% due 03/10/35................... 167,000 155,671
PTT Public Co., Ltd.
5.88% due 08/03/35*.................. 96,000 86,877
Talisman Energy, Inc.
5.85% due 02/01/37................... 70,000 65,804
-----------
436,159
-----------
Financial Services -- 0.5%
Aries Vermogensverwaltungs GmbH
9.60% due 10/25/14................... 250,000 312,350
Canadian Oil Sands, Ltd.
5.80% due 08/15/13*.................. 72,000 71,858
FBG Finance, Ltd.
5.88% due 06/15/35*.................. 85,000 77,340
HBOS Capital Funding LP
6.85% due 03/23/09................... 200,000 200,500
Nell AF SARL
8.38% due 08/15/15*.................. 150,000 148,875
SovRisc BV
4.63% due 10/31/08*.................. 133,000 131,288
-----------
942,211
-----------
44
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2006 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 2)
-------------------------------------------------------
FOREIGN BONDS & NOTES (continued)
Forest Products -- 0.0%
Abitibi-Consolidated, Inc.
8.55% due 08/01/10.............. $ 65,000 $ 65,325
----------
Insurance -- 0.3%
Aegon NV
5.02% due 04/15/06(6)........... 156,000 137,280
Fairfax Financial Holdings, Ltd.
8.25% due 10/01/15.............. 115,000 101,200
ING Groep NV
5.78% due 12/08/15(6)........... 140,000 136,183
Montpelier Re Holdings, Ltd.
6.13% due 08/15/13.............. 100,000 95,222
----------
469,885
----------
Leisure & Tourism -- 0.0%
Royal Caribbean Cruises, Ltd.
6.88% due 12/01/13.............. 84,000 86,365
----------
Machinery -- 0.1%
Atlas Copco AB
6.50% due 04/01/08*............. 89,000 90,745
----------
Metals & Mining -- 0.1%
Inco, Ltd.
7.20% due 09/15/32.............. 93,000 96,366
Noranda, Inc.
8.38% due 02/15/11.............. 72,000 79,154
Teck Cominco, Ltd.
6.13% due 10/01/35.............. 75,000 70,563
----------
246,083
----------
Pharmaceuticals -- 0.1%
Elan Finance PLC
7.75% due 11/15/11.............. 102,000 96,645
----------
Real Estate Companies -- 0.1%
Brascan Corp.
8.13% due 12/15/08.............. 157,000 166,864
----------
Retail -- 0.1%
Jean Coutu Group, Inc.
8.50% due 08/01/14.............. 100,000 91,750
----------
Telecommunications -- 0.3%
America Movil SA de CV
6.38% due 03/01/35.............. 112,000 105,306
British Telecommunications PLC
8.63% due 12/15/30.............. 70,000 89,550
TELUS Corp.
7.50% due 06/01/07.............. 143,000 146,231
TELUS Corp.
8.00% due 06/01/11.............. 238,000 262,509
----------
603,596
----------
Transportation -- 0.1%
Canadian National Railway Co.
6.38% due 10/15/11.............. 130,000 135,759
----------
Utilities -- 0.2%
Enersis SA
7.40% due 12/01/16.............. 300,000 315,727
Kinder Morgan Finance Co. ULC
5.70% due 01/05/16.............. 72,000 70,146
----------
385,873
----------
Total Foreign Bonds & Notes
(cost $5,159,312)............... 5,055,084
----------
Principal Value
Security Description Amount (Note 2)
--------------------------------------------------------------------
FOREIGN GOVERNMENT AGENCIES -- 1.7%
Federal Republic of Brazil
8.00% due 01/15/18......................... $ 200,000 $ 216,700
Federal Republic of Brazil
10.50% due 07/14/14........................ 205,000 255,225
Republic of Argentina
4.89% due 08/03/12(3)...................... 230,000 188,025
Republic of Argentina
8.28% due 12/31/33......................... 348,488 342,390
Republic of Turkey
9.00% due 06/30/11......................... 190,000 212,562
Republic of Turkey
11.88% due 01/15/30........................ 380,000 586,625
Republic of Venezuela
8.50% due 10/08/14......................... 100,000 112,000
Republic of Venezuela
9.25% due 09/15/27......................... 500,000 635,250
Russian Federation
7.50% due 03/31/30*(4)..................... 125,000 136,719
Russian Federation
7.50% due 03/31/30(4)...................... 350,000 384,020
----------
Total Foreign Government Agencies
(cost $2,734,404).......................... 3,069,516
----------
U.S. GOVERNMENT OBLIGATIONS -- 1.0%
U.S Treasury Bonds -- 0.4%
5.38% due 02/15/31.......................... 431,000 453,695
6.25% due 08/15/23.......................... 308,000 349,315
----------
803,010
----------
U.S. Treasury Notes -- 0.6%
4.50% due 02/28/11.......................... 73,000 71,936
4.50% due 11/15/15.......................... 788,000 764,668
4.50% due 02/15/16.......................... 147,000 142,969
4.63% due 02/29/08.......................... 58,000 57,767
----------
1,037,340
----------
Total U.S. Government Obligations
(cost $1,911,765).......................... 1,840,350
----------
U.S. GOVERNMENT AGENCIES -- 12.1%
Federal Home Loan Mortgage Corporation -- 5.5%
4.50% due 04/01/19.......................... 1,777,742 1,700,354
4.75% due 01/18/11.......................... 155,000 152,346
5.00% due 06/15/31(7)....................... 381,873 374,553
5.00% due 05/01/34.......................... 1,312,291 1,250,913
5.00% due 06/01/34.......................... 1,672,121 1,593,912
5.00% due 11/01/35.......................... 1,193,306 1,135,673
5.00% due 04/01/36.......................... 660,000 627,962
5.13% due 12/15/13(7)....................... 286,368 283,939
5.50% due 07/01/34.......................... 721,222 705,248
6.00% due 12/01/33.......................... 1,157,196 1,159,004
6.50% due 03/01/36.......................... 385,038 392,498
6.88% due 09/15/10.......................... 231,000 246,667
7.00% due 04/01/32.......................... 236,692 243,769
----------
9,866,838
----------
Federal National Mortgage Association -- 5.4%
1.75% due 06/16/06.......................... 50,000 49,669
3.88% due 02/01/08.......................... 295,000 288,839
5.00% due 07/01/18.......................... 892,129 871,526
5.00% due 08/01/18.......................... 415,721 406,120
5.00% due 07/01/33.......................... 1,598,386 1,525,989
5.50% due 10/01/17.......................... 199,940 198,930
45
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2006 -- (unaudited)
Shares/
Principal Value
Security Description Amount (Note 2)
--------------------------------------------------------------
U.S. GOVERNMENT AGENCIES (continued)
Federal National Mortgage Association (continued)
5.50% due 11/01/17.................. $ 526,528 $ 523,868
5.50% due 12/01/33.................. 1,374,060 1,343,925
5.50% due 12/01/35.................. 769,999 751,828
5.50% due 02/01/36(3)............... 384,575 384,488
6.00% due 06/01/17.................. 376,507 381,744
6.00% due 12/01/33.................. 882,853 883,326
6.00% due 08/01/34.................. 519,395 519,781
6.50% due 09/01/10.................. 140,180 142,582
6.50% due 09/01/32.................. 1,003,521 1,026,009
6.50% due 04/01/34.................. 159,516 162,759
------------
9,461,383
------------
Government National Mortgage Association -- 1.0%
5.50% due 05/15/33.................. 601,934 596,443
5.50% due 09/15/33.................. 253,069 250,761
5.50% due 12/15/33.................. 793,018 785,785
7.50% due 01/15/32.................. 186,952 196,138
7.50% due 04/15/32.................. 1,241 1,302
------------
1,830,429
------------
Tennessee Valley Authority -- 0.1%
4.65% due 06/15/35.................. 174,000 155,812
------------
Total U.S. Government Agencies
(cost $21,890,155)................. 21,314,462
------------
PREFERRED STOCK -- 0.4%
Financial Services -- 0.3%
Fannie Mae
Series O
7.07%(3)........................... 2,250 122,625
General Electric Capital Corp.
8.00%(4)........................... 14,000 319,200
------------
441,825
------------
Insurance -- 0.1%
Endurance Specialty Holdings, Ltd.
7.75%.............................. 11,000 266,420
------------
Total Preferred Stock
(cost $746,375).................... 708,245
------------
Total Long-Term Investment Securities
(cost $168,771,990)................ 174,060,719
------------
SHORT-TERM INVESTMENT SECURITIES -- 0.7%
CORPORATE BONDS -- 0.0%
Utilities -- 0.0%
Consolidated Natural Gas Co.
5.38% due 11/01/06
(cost $83,249)..................... 82,000 81,987
------------
U.S. GOVERNMENT OBLIGATIONS -- 0.7%
U.S. Treasury Notes
6.88% due 05/15/06
(cost $1,171,048).................. 1,164,000 1,166,819
------------
Total Short-Term Investment Securities
(cost $1,254,297).................. 1,248,806
------------
Principal Value
Security Description Amount (Note 2)
-------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 1.1%
Agreement with State Street Bank & Trust Co.,
bearing interest at 2.30%, dated 03/31/06,
to be repurchased 04/03/06 in the amount
of $238,046 and collateralized by $235,000
of United States Treasury Notes, bearing
interest at 5.50%, due 05/15/09 and having
an approximate value of $244,106............. $ 238,000 $ 238,000
State Street Bank & Trust Co.
Joint Repurchase Agreement(1)................ 1,723,000 1,723,000
------------
Total Repurchase Agreements
(cost $1,961,000)............................ 1,961,000
------------
TOTAL INVESTMENTS
(cost $171,987,287)(2)....................... 100.4% 177,270,525
Liabilities in excess of other assets........... (0.4) (643,551)
---------- ------------
NET ASSETS -- 100.0% $176,626,974
========== ============
- --------
+ Non-income producing securities
* Securities exempt from registration under Rule 144A of the Securities Act
of 1933. The Fund has no rights to demand registration of these
securities. These securities may be sold in transactions exempt from
registration, normally to qualified institutional buyers. At March 31,
2006, the aggregate value of these securities was $5,917,811 representing
3.4% of net assets. Unless otherwise indicated, these securities are not
considered to be illiquid.
# Fair valued security; see Note 2
(1) See Note 2 for details of Joint Repurchase Agreements
(2) See Note 5 for cost of investments on a tax basis
(3) Floating rate security where the rate fluctuates. The rate moves up or
down at each reset date. The rate reflected is as of March 31, 2006.
(4) "Step-up" security where the rate increases ("steps up") at a
predetermined rate. Rate shown reflects the increased rate.
(5) Commercial mortgaged backed security.
(6) Variable rate security -- the rate reflected is as of March 31, 2006;
maturity date reflects next reset date.
(7) Collateralized Mortgage Obligations
(8) Bond in default.
(9) Company has filed Chapter 11 bankruptcy protection.
(10) Illiquid security
(11) Variable Rate Security -- the rate reflected is as of March 31, 2006;
maturity date reflects the stated maturity date.
(12) To the extent permitted by the Statement of Additional Information, the
Balanced Assets Fund may invest in restricted securities. The Fund has no
right to demand registration of these securities. The securities are
valued pursuant to Note 2. Restricted securities held by a Fund may not be
sold except in exempt transactions or in a public offering registered
under the Securities Act of 1933. The risk of investing in such securities
is generally greater than the risk of investing in the securities of
widely held, publicly traded companies. Lack of a secondary market and
resale restrictions may result in the inability of a Fund to sell a
security at a fair price and may substantially delay the sale of the
security. In addition, these securities may exhibit greater price
volatility than securities for which secondary markets exist. As of
March 31, 2006, the Balanced Assets Fund held the following restricted
securities:
Market
Value % of
Acquisition Principle Acquisition Market Per Par Net
Name Date Amount Cost Value Amount Assets
---- ----------- --------- ----------- ------- ------- ------
AmerisourceBergen,
Corp............. 01/06/2006 $50,000 $50,302 $49,175 $98.00 0.03%
ADR -- AmericanDepository Receipt
See Notes to Financial Statements
46
SunAmerica International Equity Fund
PORTFOLIO PROFILE -- March 31, 2006 -- (unaudited)
Industry Allocation*
Banks................... 21.0%
Pharmaceuticals......... 12.5
Telecommunications...... 10.6
Energy Sources.......... 7.2
Automotive.............. 5.7
Food, Beverage & Tobacco 5.1
Financial Services...... 4.7
Retail.................. 4.6
Electronics............. 4.1
Machinery............... 3.9
Insurance............... 3.8
Metals & Mining......... 3.2
Repurchase Agreements... 2.7
Energy Services......... 2.1
Entertainment Products.. 1.9
Apparel & Textiles...... 1.8
Conglomerate............ 1.7
Real Estate Companies... 1.5
Leisure & Tourism....... 1.2
Business Services....... 1.1
Forest Products......... 0.6
-----
101.0%
=====
- --------
* Calculated as a percentage of net assets.
Country Allocation*
Japan......... 25.5%
Norway........ 13.8
France........ 9.3
Switzerland... 9.3
Germany....... 7.7
Italy......... 6.0
Belgium....... 3.7
Ireland....... 3.7
Australia..... 3.6
United Kingdom 3.4
United States. 2.7
Finland....... 2.4
Sweden........ 2.0
Spain......... 1.5
Denmark....... 1.2
Greece........ 1.2
Hong Kong..... 1.2
Netherlands... 1.1
Singapore..... 0.8
South Korea... 0.5
Mexico........ 0.4
-----
101.0%
=====
47
SunAmerica International Equity Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2006 -- (unaudited)
Value
Security Description Shares (Note 2)
-------------------------------------------------------------------
COMMON STOCK -- 98.3%
Australia -- 3.6%
Australia and New Zealand Banking Group,
Ltd........................................ 26,200 $ 497,050
BHP Billiton, Ltd........................... 65,300 1,308,952
CSL, Ltd.................................... 28,600 1,119,968
Woolworths, Ltd............................. 82,880 1,117,255
-----------
4,043,225
-----------
Belgium -- 3.7%
KBC Groep NV................................ 38,440 4,127,297
-----------
Denmark -- 1.2%
GN Store Nord A/S........................... 94,500 1,304,443
-----------
Finland -- 2.4%
Nokia Oyj Sponsored ADR..................... 131,370 2,721,986
-----------
France -- 9.3%
AXA SA...................................... 51,020 1,790,555
BNP Paribas................................. 36,360 3,377,417
Michelin (CGDE), Class B.................... 43,000 2,701,879
Sanofi-Aventis.............................. 27,240 2,591,346
-----------
10,461,197
-----------
Germany -- 7.7%
Adidas-Salomon AG........................... 10,400 2,056,722
Allianz AG.................................. 14,760 2,464,457
Bayer AG.................................... 104,660 4,193,071
-----------
8,714,250
-----------
Greece -- 1.2%
OPAP SA..................................... 36,660 1,401,209
-----------
Hong Kong -- 1.2%
Midland Holdings, Ltd....................... 1,248,000 699,664
Nine Dragons Paper Holdings, Ltd.+.......... 1,028,000 702,191
Peregrine Investments Holdings, Ltd.+(1)(2). 91,000 0
-----------
1,401,855
-----------
Ireland -- 3.7%
Anglo Irish Bank Corp. PLC.................. 252,040 4,153,910
-----------
Italy -- 6.0%
Saipem SpA................................. 157,150 3,635,541
Unicredito Italiano SpA.................... 423,130 3,058,672
-----------
6,694,213
-----------
Japan -- 25.5%
Chugai Pharmaceutical Co., Ltd.............. 63,400 1,150,034
Denso Corp.................................. 34,100 1,347,196
Ibiden Co., Ltd............................. 30,000 1,516,568
Japan Tobacco, Inc.......................... 590 2,075,276
Komatsu, Ltd................................ 130,000 2,479,609
Mitsubishi UFJ Financial Group, Inc......... 60 917,587
Mitsui & Co., Ltd........................... 103,000 1,489,431
Murata Manufacturing Co., Ltd............... 13,100 887,060
Nikon Corp,................................. 53,000 950,127
ORIX Corp................................... 8,460 2,634,316
Value
Security Description Shares (Note 2)
----------------------------------------------------------
Japan (continued)
Sega Sammy Holdings, Inc............ 28,000 $ 1,137,128
Seven & I Holdings Co., Ltd......... 22,300 882,906
Sumitomo Metal Industries, Ltd...... 418,000 1,793,458
Tokyu Land Corp..................... 113,000 1,009,992
Toyota Motor Corp................... 44,000 2,403,738
Tsumura & Co........................ 42,000 1,106,202
UFJ NICOS Co., Ltd.................. 163,000 1,724,172
Yamada Denki Co., Ltd............... 13,700 1,579,516
Yokogawa Electric Corp.............. 92,400 1,644,673
------------
28,728,989
------------
Mexico -- 0.4%
Cemex SA de CV Sponsored ADR........ 7,000 456,960
------------
Netherlands -- 1.1%
USG People NV....................... 17,340 1,255,555
------------
Norway -- 13.8%
DNB NOR ASA......................... 124,540 1,677,041
Petroleum Geo-Services ASA+......... 50,800 2,368,073
Statoil ASA......................... 152,980 4,411,807
Tandberg ASA........................ 250,080 2,260,931
Telenor ASA......................... 273,560 2,942,807
Tomra Systems ASA................... 234,820 1,881,111
------------
15,541,770
------------
Singapore -- 0.8%
Keppel Corp., Ltd................... 50,168 428,454
StarHub, Ltd........................ 358,000 480,775
------------
909,229
------------
South Korea -- 0.5%
Hynix Semiconductor, Inc. GDR+*..... 18,824 554,932
------------
Spain -- 1.5%
Banco Bilbao Vizcaya Argentaria SA.. 78,460 1,637,307
------------
Sweden -- 2.0%
Ericsson LM Telephone Sponsored ADR. 59,340 2,238,305
------------
Switzerland -- 9.3%
Credit Suisse Group................. 91,840 5,153,297
Nestle SA........................... 4,560 1,353,676
Novartis AG......................... 20,010 1,112,818
Roche Holding AG.................... 18,820 2,802,104
------------
10,421,895
------------
United Kingdom -- 3.4%
British America Tobacco PLC......... 93,400 2,262,087
Next PLC............................ 56,370 1,615,963
------------
3,878,050
------------
United States -- 0.0%
Softbrands, Inc.+................... 40 59
------------
Total Long-Term Investment Securities
(cost $92,903,107)................. 110,646,636
------------
48
SunAmerica International Equity Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2006 -- (unaudited) (continued)
Principal Value
Amount (Note 2)
------------
REPURCHASE AGREEMENTS -- 2.7%
Agreement with State Street Bank & Trust
Co., bearing interest at 2.30%, dated
03/31/06, to be repurchased 04/03/06 in
the amount of $2,975,570 and
collateralized by $3,210,000 of United
States Treasury Bonds, bearing interest at
4.50%, due 02/15/36 and having an
approximate value of $3,037,463
(cost $2,975,000).......................... $2,975,000 $ 2,975,000
------------
TOTAL INVESTMENTS
(cost $95,878,107)(3)...................... 101.0% $113,621,636
Liabilities in excess of other assets......... (1.0) (1,077,756)
---------- ------------
NET ASSETS 100.0% $112,543,880
========== ============
- --------
+ Non-income producing securities
* Securities exempt from registration under Rule 144A of the Securities Act
of 1933. The Fund has no rights to demand registration of these
securities. These securities may be sold in transactions exempt from
registration, normally to qualified institutional buyers. At March 31,
2006, the aggregate value of these securities was $554,932 representing
0.5% of net assets. Unless otherwise indicated, these securities are not
considered to be illiquid.
(1) Fair valued security. See Note 2
(2) Illiquid security
(3) See Note 5 for cost of investments on a tax basis
ADR --American Depository Receipt
GDR --Global Depository Receipt
See Notes to Financial Statements
49
SunAmerica Value Fund
PORTFOLIO PROFILE -- March 31, 2006 -- (unaudited)
Industry Allocation*
Financial Services............. 17.1%
Banks.......................... 12.9
Energy Sources................. 12.6
Telecommunications............. 9.6
Pharmaceuticals................ 5.9
Insurance...................... 5.1
Broadcasting & Media........... 4.7
Utilities...................... 4.7
Conglomerate................... 4.6
Food, Beverage & Tobacco....... 4.5
Computers & Business Equipment. 3.2
Retail......................... 2.3
Manufacturing.................. 1.6
Repurchase Agreements.......... 1.6
Apparel & Textiles............. 1.5
Computer Software.............. 1.5
Health Services................ 1.5
Forest Products................ 1.1
Metals & Mining................ 1.1
Restaurants.................... 1.1
Aerospace & Military Technology 1.0
Chemicals...................... 1.0
Electronics.................... 1.0
-----
101.2%
=====
- --------
* Calculated as a percentage of net assets.
50
SunAmerica Value Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2006 -- (unaudited)
Value
Security Description Shares (Note 2)
-----------------------------------------------------------
COMMON STOCK -- 99.6%
Aerospace & Military Technology -- 1.0%
United Technologies Corp.............. 39,700 $ 2,301,409
-----------
Apparel & Textiles -- 1.5%
NIKE, Inc., Class B................... 40,900 3,480,590
-----------
Banks -- 12.9%
Bank of America Corp.................. 215,600 9,818,424
The Bank of New York Co., Inc......... 68,300 2,461,532
U.S. Bancorp.......................... 170,000 5,185,000
Wachovia Corp......................... 111,400 6,243,970
Wells Fargo & Co...................... 94,500 6,035,715
-----------
29,744,641
-----------
Broadcasting & Media -- 4.7%
Comcast Corp., Class A+............... 86,400 2,260,224
News Corp., Class A................... 229,000 3,803,690
The Walt Disney Co.................... 93,600 2,610,504
Time Warner, Inc...................... 137,700 2,311,983
-----------
10,986,401
-----------
Chemicals -- 1.0%
The Dow Chemical Co................... 58,200 2,362,920
-----------
Computer Software -- 1.5%
Microsoft Corp........................ 129,100 3,512,811
-----------
Computers & Business Equipment -- 3.2%
Hewlett-Packard Co.................... 118,600 3,901,940
International Business Machines Corp.. 43,100 3,554,457
-----------
7,456,397
-----------
Conglomerate -- 4.6%
General Electric Co................... 203,700 7,084,686
Honeywell International, Inc.......... 82,500 3,528,525
-----------
10,613,211
-----------
Electronics -- 1.0%
AMETEK, Inc........................... 52,500 2,360,400
-----------
Energy Sources -- 12.6%
Amerada Hess Corp..................... 24,600 3,503,040
Apache Corp........................... 43,800 2,869,338
Chevron Corp.......................... 96,700 5,605,699
ConocoPhillips........................ 58,800 3,713,220
Exxon Mobil Corp...................... 179,900 10,948,714
Marathon Oil Corp..................... 31,900 2,429,823
-----------
29,069,834
-----------
Financial Services -- 17.1%
American Express Co................... 85,900 4,514,045
Capital One Financial Corp............ 49,300 3,969,636
Citigroup, Inc........................ 206,600 9,757,718
JPMorgan Chase & Co................... 148,600 6,187,704
Merrill Lynch & Co., Inc.............. 51,300 4,040,388
Morgan Stanley........................ 57,500 3,612,150
The Bear Stearns Cos., Inc............ 26,100 3,620,070
The Goldman Sachs Group, Inc.......... 24,100 3,782,736
-----------
39,484,447
-----------
Food, Beverage & Tobacco -- 4.5%
Altria Group, Inc..................... 48,200 3,415,452
Diageo PLC Sponsored ADR.............. 55,000 3,488,650
PepsiCo, Inc.......................... 61,300 3,542,527
-----------
10,446,629
-----------
Shares/
Principal Value
Security Description Amount (Note 2)
---------------------------------------------------------------
Forest Products -- 1.1%
Weyerhaeuser Co.................... 36,300 $ 2,629,209
------------
Health Services -- 1.5%
WellPoint, Inc.+................... 45,100 3,492,093
------------
Insurance -- 5.1%
MetLife, Inc....................... 45,200 2,186,324
The Allstate Corp.................. 90,800 4,731,588
The Chubb Corp..................... 51,000 4,867,440
------------
11,785,352
------------
Manufacturing -- 1.6%
ITT Industries, Inc................ 66,600 3,744,252
------------
Metals & Mining -- 1.1%
Alcoa, Inc......................... 80,200 2,450,912
------------
Pharmaceuticals -- 5.9%
Merck & Co., Inc................... 74,300 2,617,589
Pfizer, Inc........................ 294,100 7,328,972
Wyeth.............................. 75,300 3,653,556
------------
13,600,117
------------
Restaurants -- 1.1%
McDonald's Corp.................... 74,100 2,546,076
------------
Retail -- 2.3%
The Gap, Inc....................... 280,700 5,243,476
------------
Telecommunications -- 9.6%
AT&T, Inc.......................... 180,400 4,878,016
BellSouth Corp..................... 124,200 4,303,530
Motorola, Inc...................... 161,800 3,706,838
Sprint Nextel Corp................. 150,900 3,899,256
Verizon Communications, Inc........ 157,400 5,361,044
------------
22,148,684
------------
Utilities -- 4.7%
Duke Energy Corp.+................. 121,600 3,544,640
FPL Group, Inc..................... 87,700 3,520,278
The Southern Co.................... 112,700 3,693,179
------------
10,758,097
------------
Total Long-Term Investment Securities
(cost $214,163,043)............... 230,217,958
------------
REPURCHASE AGREEMENTS -- 1.6%
State Street Bank & Trust Co.
Joint Repurchase Agreement(1)
(cost $3,771,000)................. $3,771,000 3,771,000
------------
TOTAL INVESTMENTS
(cost $217,934,043)(2)............ 101.2% 233,988,958
Liabilities in excess of other assets (1.2) (2,740,358)
---------- ------------
NET ASSETS 100.0% $231,248,600
========== ============
- --------
+ Non-Income producing securities
(1)See Note 2 for details of Joint Repurchase Agreements
(2)See Note 5 for cost of investments on a tax basis
ADR -- AmericanDepository Receipt
See Notes to Financial Statements
51
SunAmerica Biotech/Health Fund
PORTFOLIO PROFILE -- March 31, 2006 -- (unaudited)
Industry Allocation*
Pharmaceuticals...... 27.2%
Biotechnology........ 22.9
Managed Care......... 18.6
Health Services...... 8.7
Medical Devices...... 7.1
Healthcare Equipment. 5.5
Genomics............. 3.6
Distribution......... 3.2
Repurchase Agreements 2.1
Therapeutics......... 1.6
-----
100.5%
=====
- --------
* Calculated as a percentage of net assets.
52
SunAmerica Biotech/Health Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2006 -- (unaudited)
Value
Security Description Shares (Note 2)
---------------------------------------------------------------
COMMON STOCK -- 98.4%
Biotechnology -- 22.9%
Amgen, Inc.+................................ 22,200 $1,615,050
Biogen Idec, Inc.+.......................... 14,000 659,400
Genentech, Inc.+............................ 11,300 954,963
Genzyme Corp.+.............................. 21,400 1,438,508
Illumina, Inc.+............................. 26,000 617,500
MedImmune, Inc.+............................ 18,000 658,440
Myriad Genetics, Inc.+...................... 12,000 313,080
Nektar Therapeutics+........................ 25,000 509,500
----------
6,766,441
----------
Distribution -- 3.2%
Allion Healthcare, Inc.+.................... 23,000 311,880
Cardinal Health, Inc........................ 8,400 625,968
----------
937,848
----------
Genomics -- 3.6%
Invitrogen Corp.+........................... 15,000 1,051,950
----------
Health Services -- 8.7%
Caremark Rx, Inc.+.......................... 12,000 590,160
LifePoint Hospitals, Inc.+.................. 23,500 730,850
Matria Healthcare, Inc.+.................... 15,000 569,400
National Medical Health Card Systems, Inc.+. 24,000 672,000
----------
2,562,410
----------
Healthcare Equipment -- 5.5%
C.R. Bard, Inc.............................. 9,300 630,633
Fisher Scientific International, Inc.+...... 14,600 993,530
----------
1,624,163
----------
Managed Care -- 18.6%
Aetna, Inc.................................. 12,600 619,164
Centene Corp.+.............................. 32,600 950,942
CIGNA Corp.................................. 6,500 849,030
Coventry Helath Care, Inc.+................. 13,200 712,536
Health Management Associates, Inc., Class A. 28,000 603,960
UnitedHealth Group, Inc..................... 15,200 849,072
WellPoint, Inc.+............................ 11,600 898,188
----------
5,482,892
----------
Shares/
Principal Value
Security Description Amount (Note 2)
-------------------------------------------------------------
Medical Devices -- 7.1%
Boston Scientific Corp.+............. 16,000 $ 368,800
Kinetic Concepts, Inc.+.............. 21,800 897,506
Medtronic, Inc....................... 16,600 842,450
-----------
2,108,756
-----------
Pharmaceuticals -- 27.2%
Abbott Laboratories.................. 16,000 679,520
Barr Pharmaceuticals, Inc.+.......... 13,000 818,740
Cephalon, Inc.+...................... 9,700 584,425
Eli Lilly & Co....................... 7,500 414,750
Endo Pharmaceuticals Holdings, Inc.+. 10,000 328,100
Johnson & Johnson.................... 9,500 562,590
Novartis AG Sponsored ADR............ 17,000 942,480
Noven Pharmaceuticals, Inc.+......... 25,000 450,250
Pfizer, Inc.......................... 35,000 872,200
Schering-Plough Corp................. 38,000 721,620
Teva Pharmaceutical Industries, Ltd.
Sponsored ADR....................... 20,700 852,426
Wyeth................................ 16,100 781,172
-----------
8,008,273
-----------
Therapeutics -- 1.6%
BioMarin Pharmaceutical, Inc.+....... 35,000 469,700
-----------
Total Long-Term Investment Securities
(cost $27,603,748).................. 29,012,433
-----------
REPURCHASE AGREEMENTS -- 2.1%
State Street Bank & Trust Co.
Joint Repurchase Agreement(1)
(cost $626,000)..................... $626,000 626,000
-----------
TOTAL INVESTMENTS
(cost $28,229,748)(2)............... 100.5% 29,638,433
Liabilities in excess of other assets.. (0.5) (160,546)
-------- -----------
NET ASSETS 100.0% $29,477,887
======== ===========
- --------
+ Non-income producing securities
(1) See Note 2 for details of Joint Repurchase Agreements
(2) See Note 5 for cost of investments on a tax basis
ADR --American Depository Receipt
See Notes to Financial Statements
53
SunAmerica Tax Managed Equity Fund
PORTFOLIO PROFILE -- March 31, 2006 -- (unaudited)
Industry Allocation*
Financial Services............. 18.6%
Metals & Mining................ 12.2
Telecommunications............. 10.6
Electronics.................... 9.7
Transportation................. 8.0
Insurance...................... 6.7
Food, Beverage & Tobacco....... 4.4
Repurchase Agreements.......... 4.1
Business Services.............. 4.0
Machinery...................... 2.9
Aerospace & Military Technology 2.8
Energy Sources................. 2.8
Computers & Business Equipment. 2.7
Retail......................... 2.6
Energy Services................ 1.6
Computer Software.............. 1.5
Manufacturing.................. 1.5
Pharmaceuticals................ 1.5
Leisure & Tourism.............. 1.4
Apparel & Textiles............. 1.3
Restaurants.................... 1.3
-----
102.2%
=====
- --------
* Calculated as a percentage of net assets.
54
SunAmerica Tax Managed Equity Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2006 -- (unaudited)
Value
Security Description Shares (Note 2)
---------------------------------------------------------------
COMMON STOCK -- 98.1%
Aerospace & Military Technology -- 2.8%
The Boeing Co.............................. 16,600 $1,293,638
----------
Apparel & Textiles -- 1.3%
NIKE, Inc., Class B........................ 7,000 595,700
----------
Business Services -- 4.0%
Paychex, Inc............................... 15,000 624,900
Waste Management, Inc...................... 34,800 1,228,440
----------
1,853,340
----------
Computers & Business Equipment -- 2.7%
Apple Computer, Inc.+...................... 9,700 608,384
Hewlett-Packard Co......................... 20,000 658,000
----------
1,266,384
----------
Computer Software -- 1.5%
SAP AG Sponsored ADR....................... 13,000 706,160
----------
Electronics -- 9.7%
Agilent Technologies, Inc.+................ 16,400 615,820
Emerson Electric Co........................ 8,600 719,218
Koninklijke Philips Electronics NV......... 21,800 733,570
MEMC Electronic Materials, Inc.+........... 24,000 886,080
NVIDIA Corp.+.............................. 12,600 721,476
Rambus, Inc.+.............................. 21,000 826,140
----------
4,502,304
----------
Energy Services -- 1.6%
Schlumberger, Ltd.......................... 6,000 759,420
----------
Energy Sources -- 2.8%
Frontier Oil Corp.......................... 21,900 1,299,765
----------
Financial Services -- 18.6%
Capital One Financial Corp................. 15,300 1,231,956
Chicago Mercantile Exchange Holdings, Inc.. 1,500 671,250
ING Groep NV Sponsored ADR................. 16,500 650,100
Investment Technology Group, Inc.+......... 11,800 587,640
Knight Capital Group, Inc., Class A +...... 100,000 1,393,000
Lehman Brothers Holdings, Inc.............. 4,600 664,838
Merrill Lynch & Co., Inc................... 17,800 1,401,928
Moody's Corp............................... 9,800 700,308
The Goldman Sachs Group, Inc............... 8,400 1,318,464
----------
8,619,484
----------
Food, Beverage & Tobacco -- 4.4%
Archer-Daniels-Midland Co.................. 38,000 1,278,700
Reynolds American, Inc..................... 7,400 780,700
----------
2,059,400
----------
Insurance -- 6.7%
CIGNA Corp................................. 10,000 1,306,200
MetLife, Inc............................... 12,000 580,440
Sun Life Financial, Inc.................... 15,100 642,656
The Chubb Corp............................. 6,000 572,640
----------
3,101,936
----------
Leisure & Tourism -- 1.4%
Continental Airlines, Inc., Class B+....... 24,000 645,600
----------
Shares/
Principal Value
Security Description Amount (Note 2)
---------------------------------------------------------------
Machinery -- 2.9%
Caterpillar, Inc..................... 8,000 $ 574,480
Rockwell Automation, Inc............. 10,700 769,437
-----------
1,343,917
-----------
Manufacturing -- 1.5%
Allegheny Technologies, Inc.......... 11,300 691,334
-----------
Metals & Mining -- 12.2%
Boliden AB+.......................... 70,000 1,074,019
Companhia Vale do Rio Doce ADR....... 26,000 1,261,780
Newmont Mining Corp.................. 12,000 622,680
Nucor Corp........................... 6,500 681,135
Phelps Dodge Corp.................... 8,300 668,399
Precision Castparts Corp............. 12,000 712,800
Teck Cominco, Ltd., Class B.......... 10,000 643,405
-----------
5,664,218
-----------
Pharmaceuticals -- 1.5%
Gilead Sciences, Inc.+............... 11,000 684,420
-----------
Restaurants -- 1.3%
McDonald's Corp...................... 16,700 573,812
-----------
Retail -- 2.6%
Starbucks Corp.+..................... 32,400 1,219,536
-----------
Telecommunications -- 10.6%
AT&T, Inc............................ 24,800 670,592
Corning, Inc.+....................... 23,000 618,930
Motorola, Inc........................ 48,000 1,099,680
QUALCOMM, Inc........................ 12,400 627,564
Sprint Nextel Corp................... 48,000 1,240,320
Tellabs, Inc.+....................... 40,000 636,000
-----------
4,893,086
-----------
Transportation -- 8.0%
Burlington Northern Santa Fe Corp.... 7,300 608,309
FedEx Corp........................... 11,000 1,242,340
Norfolk Southern Corp................ 11,200 605,584
United Parcel Service, Inc., Class B. 16,000 1,270,080
-----------
3,726,313
-----------
Total Long-Term Investment Securities
(cost $42,738,478).................. 45,499,767
-----------
REPURCHASE AGREEMENTS -- 4.1%
State Street Bank & Trust Co.
Joint Repurchase Agreement(1)
(cost $1,874,000)................... $1,874,000 1,874,000
-----------
TOTAL INVESTMENTS
(cost $44,612,478)(2)............... 102.2% 47,373,767
Liabilities in excess of other assets.. (2.2) (999,425)
---------- -----------
NET ASSETS 100.0% $46,374,342
========== ===========
- --------
+ Non-Income producing securities
(1) See Note 2 for details of Joint Repurchase Agreements
(2) See Note 5 for cost of investments on a tax basis
ADR --American Depository Receipt
See Notes to Financial Statements
55
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2006 -- (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 investment-grade
fixed income securities.
International Equity Fund seeks capital appreciation by investing in equity
securities and other securities with equity characteristics of non-U.S.
issuers located in a number of different 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 such securities.
Each Fund, except for the International Equity Fund, Value Fund, and
Biotech/Health Fund, is organized as a "diversified" Fund of the Trust.
56
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2006 -- (unaudited)
(continued)
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 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. Certain Class C shares of
particular Funds issued in connection with particular reorganizations or
mergers will convert automatically to Class A shares approximately ten years
after purchase and at such time will be subject to the lower distribution
fee applicable to Class A shares.
Class I 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. 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, except as may otherwise be provided in the Trust's
registration statement. Class A, Class B and Class C shares each makes
distribution and account maintenance and service fee payments under a
distribution plan pursuant to Rule 12b-1 under the Investment Company Act of
1940 (the "1940 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, and no distribution or service fee payments applicable to 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 may contain the obligation
to indemnify others. The Trust's maximum exposure under these arrangements
is unknown. Currently, however, the Trust expects the risk of loss to be
remote.
Note 2. 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. Stocks listed on the
NASDAQ are valued using the NASDAQ Official Closing Price ("NOCP").
Generally, the NOCP will be the last sale price unless the reported trade
for the stock 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. For listed
securities having no sales reported and for unlisted securities, such
securities will be valued based upon the last reported bid price.
As of the close of regular trading on the New York Stock Exchange,
securities traded primarily on security exchanges outside the United States
are valued at the last sale price on such exchanges on the day of valuation,
or if there is no sale on the day of valuation, at the last-reported bid
price. If a security's price is available from more than one 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
57
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2006 -- (unaudited)
(continued)
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 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. The 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.
Non-convertible bonds and debentures, other long-term debt securities, and
short term debt securities with maturities in excess of 60 days, are valued
at bid prices obtained for the day of valuation from a bond pricing service,
when such prices are available. If a vendor quote is unavailable the
securities may be priced at the mean of two independent quotes obtained from
brokers. Securities for which market quotations are not readily available
are valued as determined pursuant to procedures adopted in good faith by the
Board of Trustees.
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 market quotations are not readily available or if a
development/significant event occurs that may significantly impact the value
of the security, then these securities are valued, as determined pursuant to
procedures adopted in good faith by the Board of 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, 2006, 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.... 1.46% $1,481,000
Growth Opportunities 0.95 966,000
New Century......... 0.36 370,000
Balanced Assets..... 1.70 1,723,000
Value............... 3.72 3,771,000
Biotech/Health...... 0.62 626,000
Tax Managed Equity.. 1.85 1,874,000
As of such date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
State Street Bank & Trust Co., dated March 31, 2006, bearing interest at a
rate of 4.00% per annum, with a principle amount of $101,454,000, a
repurchase price of $101,487,818 and a maturity date of April 3, 2006. The
repurchase agreement is collateralized by the following:
Maturity Principal
Type of Collateral Interest Rate Date Amount Market Value
- ------------------ ------------- -------- ----------- ------------
U.S. Treasury Notes 2.25% 04/30/06 $89,725,000 $90,397,938
U.S. Treasury Notes 4.63 05/15/06 12,865,000 13,086,522
58
SunAmerica Equity Fund
NOTES TO FINANCIAL STATEMENTS -- March 31, 2006 -- (unaudited)
(continued)
In addition, at March 31, 2006, the following Funds held an undivided
interest in a joint repurchase agreement with UBS Securities LLC:
Percentage Principal
Fund Interest Amount
- ---- ---------- ----------
Growth Opportunities 1.05% $5,000,000
New Century......... 1.68 8,000,000
As of such date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
UBS Securities LLC, dated March 31, 2006, bearing interest at a rate of
4.53% per annum, with a principal amount of $475,000,000 a repurchase price
of $475,179,313, and a maturity date of April 3, 2006. The repurchase
agreement is collateralized by the following:
Interest Maturity Principal Market
Type of Collateral Rate Date Amount Value
- ------------------ -------- -------- ------------ ------------
U.S. Treasury Inflation Index Bonds 2.00% 01/15/26 $ 46,568,000 $ 47,500,000
U.S. Treasury Inflation Index Bonds 3.63 04/15/28 274,633,000 280,126,621
U.S. Treasury Inflation Index Bonds 3.88 04/15/29 153,799,000 156,875,000
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. 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 Balanced
Assets Fund and Growth and Income Fund reserve the right to declare and pay
dividends less frequently than disclosed above, provided that net realized
capital gains and net investment income, if any, are paid 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.
59
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2006 -- (unaudited)
(continued)
Investment Securities Loaned: For the period ended March 31, 2006, 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, 2006, there were no open futures
contracts.
60
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2006 -- (unaudited)
(continued)
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.
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, 2006.
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. At March 31, 2006, there were no short sales.
Note 3. 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.
61
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2006 -- (unaudited)
(continued)
The Funds pay SAAMCo a monthly investment advisory and management fee
calculated daily at the following annual percentages of each Fund's average
daily net assets:
Management
Assets Fees
--------------------------- ----------
Blue Chip Growth Fund *.... $0 - $350 million 0.75%
(greater than) $350 million 0.70%
(greater than) $700 million 0.65%
Growth Opportunities Fund * $0 - $350 million 0.75%
(greater than) $350 million 0.70%
(greater than) $700 million 0.65%
New Century Fund........... $0 - $350 million 0.75%
(greater than) $350 million 0.70%
(greater than) $700 million 0.65%
Growth and Income Fund..... $0 - $350 million 0.75%
(greater than) $350 million 0.70%
(greater than) $700 million 0.65%
Balanced Assets Fund *..... $0 - $350 million 0.75%
(greater than) $350 million 0.70%
(greater than) $700 million 0.65%
International Equity Fund.. (greater than) $0 1.00%
Value Fund................. $0 - $750 million 1.00%
(greater than) $750 million 0.95%
(greater than) $1.5 billion 0.90%
Biotech/Health Fund........ (greater than) $0 0.75%
Tax Managed Equity Fund.... (greater than) $0 0.85%
- --------
* Effective October 1, 2005, SAAMCo agreed to, until further notice, waive
0.05% of the investment advisory fees for the Blue Chip Growth, Growth
Opportunities and Balanced Assets Funds. For the period ended March 31,
2006, the amount of investment advisory fees waived were $20,813, $20,250
and $46,126, respectively. These amounts are reflected in the Statement of
Operations.
For the period ended March 31, 2006, 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 November 1, 2005, SAAMCo assumed the day
to day management of the Tax Managed Equity Fund, which was previously
managed by J.P. Morgan Fleming Asset Management, Inc.
SAAMCo has contractually agreed to waive fees or reimburse expenses, if
necessary, to maintain the funds' expense ratios 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
62
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2006 -- (unaudited)
(continued)
SAAMCo has voluntarily agreed to waive fees or reimburse expenses, if
necessary, to maintain the funds' expense ratios 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, 2006, SAAMCo has agreed to reimburse
expenses as follows:
Fund Amount
- ---- -------
Blue Chip Growth Class I.... $ 6,601
Growth Opportunities Class I 7,152
New Century Fund Class C.... 6,455
Growth and Income Class I... 6,325
Balanced Assets Class I..... 6,430
International Equity Class A 1,897
International Equity Class B 6,458
International Equity Class C 4,007
International Equity Class I 1,908
Value Fund Class A.......... 49,917
Value Fund Class B.......... 29,499
Value Fund Class C.......... 17,200
Value Fund Class I.......... 3,765
Value Fund Class Z.......... 7,727
Biotech/Health Class A...... 21,386
Biotech/Health Class B...... 19,352
Biotech/Health Class C...... 14,886
Tax Managed Equity Class A.. 26,036
Tax Managed Equity Class B.. 32,137
Tax Managed Equity Class C.. 30,612
For the period ended March 31, 2006, the amounts repaid to the Adviser are
as follows:
Fund Amount
- ---- ------
International Equity Class A $8,074
International Equity Class B 183
International Equity Class C 2,010
International Equity Class I 677
63
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2006 -- (unaudited)
(continued)
At March 31, 2006, expenses previously waived or reimbursed by SAAMCO that
are subject to recoupment are as follows:
Class
Other Specific
Expenses Expenses
Fund Reimbursed Reimbursed
- ---- ---------- ----------
International Equity Class A $ -- $ 55,909
International Equity Class B -- 58,859
International Equity Class C -- 35,509
International Equity Class I -- 21,652
Value Fund Class A.......... 81,685 105,079
Value Fund Class B.......... 51,771 79,631
Value Fund Class C.......... 26,725 39,062
Value Fund Class I.......... 4,463 20,484
Value Fund Class Z.......... 9,178 26,525
Biotech/Health Class A...... 3,471 89,629
Biotech/Health Class B...... 3,084 77,557
Biotech/Health Class C...... 2,216 55,539
Tax Managed Equity Class A.. 12,247 79,054
Tax Managed Equity Class B.. 16,314 105,451
Tax Managed Equity Class C.. 15,397 96,495
The Trust, on behalf of each Fund, has a Distribution Agreement with AIG
SunAmerica Capital Services, Inc. ("SACS" or the "Distributor"), 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,
2006, SACS received fees (see Statement of Operations) based upon the
aforementioned rates.
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, 2006, SACS earned
fees (see Statement of Operations) based upon the aforementioned rates.
64
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2006 -- (unaudited)
(continued)
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, 2006, the proceeds received from sales (and
paid out to affiliated and non-affiliated broker-dealers) and redemptions
are as follows:
Class A Class B Class C
---------------------------------------------------- ------------- -------------
Contingent Contingent Contingent
Sales Affiliated Non-affiliated Deferred Deferred Deferred
Fund Charges Broker-dealers Broker-dealers Sales Charges Sales Charges Sales Charges
- ---- -------- -------------- -------------- ------------- ------------- -------------
Blue Chip Growth.... $ 25,430 $11,478 $10,458 $ 90 $22,192 $ 96
Growth Opportunities 34,275 12,887 16,366 44 37,332 539
New Century......... 29,259 14,349 11,008 32 5,336 11
Growth and Income... 33,996 16,125 13,187 105 37,959 239
Balanced Assets..... 103,553 64,971 24,893 -- 42,939 1,015
International Equity 59,004 10,752 39,561 32 14,311 231
Value............... 63,057 24,888 29,301 722 48,280 5,391
Biotech/Health...... 19,352 7,826 8,619 -- 17,112 337
Tax Managed Equity.. 12,248 1,621 8,832 -- 10,554 125
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, 2006, 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, 2006
-------------------------------- -------------------------------
Fund Class A Class B Class C Class I Class A Class B Class C Class I
- ---- -------- ------- ------- ------- ------- ------- ------- -------
Blue Chip Growth.... $ 57,858 $20,697 $ 5,121 $1,206 $10,042 $3,847 $ 956 $ 159
Growth Opportunities 42,265 25,437 11,184 1,020 7,932 4,719 2,103 109
New Century......... 86,755 10,201 1,963 -- 15,861 1,817 369 --
Growth and Income... 65,132 39,417 35,812 591 11,884 6,406 5,773 68
Balanced Assets..... 129,488 28,147 19,400 825 25,247 4,909 3,235 140
International Equity 52,280 20,954 19,845 9,022 10,627 4,096 3,973 1,773
Value............... 136,243 58,401 43,240 3,437 22,986 9,589 7,138 574
Biotech/Health...... 13,893 10,998 7,501 -- 2,438 1,906 1,299 --
Tax Managed Equity.. 12,575 15,770 15,474 -- 2,408 2,680 2,906 --
At March 31, 2006, AIG SunAmerica, Inc., an affiliate company of the
Adviser, owned 7.94% of the total outstanding shares of the International
Equity Fund.
65
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2006 -- (unaudited)
(continued)
Note 4. 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, 2006, 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)........... $72,639,280 $ 85,706,735 $89,600,511 $112,101,021 $137,444,882
Sales and maturities (excluding U.S. government securities) 82,884,668 98,787,240 99,253,643 135,123,521 149,337,258
Purchases of U.S. government securities.................... -- -- -- -- 20,746,312
Sales and maturities of U.S. government securities......... -- -- -- -- 24,148,572
International Tax
Equity Value Biotech/ Managed
Fund Fund Health Fund Equity Fund
------------- ------------- ----------- ------------
Purchases (excluding U.S. government securities)........... $74,996,108 $169,303,837 $18,493,978 $196,893,833
Sales and maturities (excluding U.S. government securities) 67,058,378 194,749,730 21,225,466 197,541,662
Purchases of U.S. government securities.................... -- -- -- --
Sales and maturities of U.S. government securities......... -- -- -- --
Note 5. Federal Income Taxes
The following details the tax basis of distributions as well as the
components of distributable earnings. 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 Character Distributions
For the year ended September 30, 2005 For the year ended September 30, 2005
------------------------------------------- -------------------------------------
Long-term Unrealized
Ordinary Gains/Capital Appreciation Ordinary Long-Term
Fund Income and Other Losses (Depreciation) Income Capital Gains
- ---- ----------- ---------------- -------------- ----------- -------------
Blue Chip Growth.... $ -- $ (77,509,082) $ 5,107,891 $ -- $ --
Growth Opportunities -- (218,788,500) 12,246,454 -- --
New Century......... -- (105,325,726) 10,565,369 -- --
Growth and Income... 101,329 (62,433,092) 9,778,573 588,836 --
Balanced Assets..... 127,498 (83,784,217) 4,895,574 3,278,600 --
International Equity -- (41,481,560) 12,448,789 -- --
Value............... 14,560,020 2,172,531 18,177,363 16,513,550 7,934,524
Biotech/Health...... -- (33,085,562) 2,434,506 -- --
Tax Managed Equity.. 53,975 (31,865,773) 2,021,072 69,828 --
For Federal income tax purposes, the Funds indicated below have capital loss
carryforwards, which expire in the year indicated, as of September 30, 2005,
which are available to offset future capital gains, if any:
Capital Loss Carryforward
-----------------------------------------------------------------------------
Fund 2007 2008 2009 2010 2011 2012 2013
- ---- -------- ----------- ----------- ------------ ----------- ---------- --------
Blue Chip Growth*............. $ -- $21,643,793 $ -- $ 13,804,345 $42,060,944 $ -- $ --
Growth Opportunities*......... -- 9,978,889 151,316 143,345,493 65,312,802 -- --
New Century................... -- -- -- 68,959,096 36,351,156 -- --
Growth and Income*............ -- -- 4,662,804 21,417,395 30,630,503 5,722,390 --
Balanced Assets*.............. -- 1,164,120 536,524 22,523,458 55,685,563 3,874,552 --
International Equity*......... -- 16,526,295 8,688,922 11,189,965 5,008,920 -- --
Value......................... -- -- -- -- -- -- --
Biotech/Health................ -- -- 14,956,128 17,583,650 545,784 -- --
Tax Managed Equity............ 910,428 3,887,711 6,189,990 15,675,665 4,260,050 594,906 177,899
- --------
* 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.
66
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2006 -- (unaudited)
(continued)
The amounts of aggregate unrealized gain (loss) and the cost of investment
securities for federal tax purposes, including short-term securities and
repurchase agreements, were as follows:
Blue Chip Growth New Growth and Balanced
Growth Opportunities Century Income Assets
Fund Fund Fund Fund Fund
------------- ------------- ----------- ------------ ------------
Cost (tax basis).......................... $76,115,580 $ 74,805,413 $96,149,357 $119,018,062 $172,277,425
=========== ============ =========== ============ ============
Appreciation.............................. 5,401,344 6,536,339 5,203,843 9,182,162 8,433,604
Depreciation.............................. (1,554,147) (1,500,617) (2,607,253) (2,675,980) (3,440,504)
----------- ------------ ----------- ------------ ------------
Net unrealized appreciation (depreciation) $ 3,847,197 $ 5,035,722 $ 2,596,590 $ 6,506,182 $ 4,993,100
=========== ============ =========== ============ ============
International Tax
Equity Value Biotech/ Managed
Fund Fund Health Fund Equity Fund
------------- ------------- ----------- ------------
Cost (tax basis).......................... $95,888,042 $218,200,817 $28,233,611 $ 44,614,137
=========== ============ =========== ============
Appreciation.............................. 18,723,467 17,779,766 2,459,487 3,047,266
Depreciation.............................. (989,873) (1,991,625) (1,054,665) (287,636)
----------- ------------ ----------- ------------
Net unrealized appreciation (depreciation) $17,733,594 $ 15,788,141 $ 1,404,822 $ 2,759,630
=========== ============ =========== ============
Note 6. 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, 2006 year ended March 31, 2006 year ended
(unaudited) September 30, 2005 (unaudited) September 30, 2005
--------------------- ------------------------ --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- ---------- ------------ -------- ----------- -------- -----------
Shares sold(1)(2)(3)... 152,145 $ 2,360,750 318,097 $ 4,691,601 57,918 $ 808,247 127,065 $ 1,685,024
Reinvested dividends... -- -- -- -- -- -- -- --
Shares redeemed(1)(2).. (491,146) (7,644,266) (1,010,053) (14,942,148) (268,593) (3,728,325) (670,464) (8,912,621)
-------- ----------- ---------- ------------ -------- ----------- -------- -----------
Net increase (decrease) (339,001) $(5,283,516) (691,956) $(10,250,547) (210,675) $(2,920,078) (543,399) $(7,227,597)
======== =========== ========== ============ ======== =========== ======== ===========
Blue Chip Growth Fund
---------------------------------------------------------------------------------------------
Class C Class I
----------------------------------------------- --------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2006 year ended March 31, 2006 year ended
(unaudited) September 30, 2005 (unaudited) September 30, 2005
--------------------- ------------------------ --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- ---------- ------------ -------- ----------- -------- -----------
Shares sold............ 28,452 $ 397,643 32,571 $ 430,311 6,908 $ 107,857 29,610 $ 439,602
Reinvested dividends... -- -- -- -- -- -- -- --
Shares redeemed(3)..... (55,868) (773,146) (153,116) (2,033,335) (48,999) (771,578) (87,497) (1,306,402)
-------- ----------- ---------- ------------ -------- ----------- -------- -----------
Net increase (decrease) (27,416) $ (375,503) (120,545) $ (1,603,024) (42,091) $ (663,721) (57,887) $ (866,800)
======== =========== ========== ============ ======== =========== ======== ===========
- --------
(1)For the six months ended March 31, 2006, includes automatic conversion of
73,721 shares of Class B shares in the amount of $1,022,391 to 65,830 shares
of Class A shares in the amount of $1,022,391.
(2)For the year ended September 30, 2005, includes automatic conversion of
133,336 shares of Class B shares in the amount of $1,765,197 to 119,732
shares of Class A shares in the amount of $1,765,197.
(3)For the six months ended March 31, 2006, includes automatic conversion of
2,635 shares of Class C shares in the amount of $36,888 to 2,339 shares of
Class A shares in the amount of $36,888.
67
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2006 -- (unaudited)
(continued)
Growth Opportunities Fund
-----------------------------------------------------------------------------------------------
Class A Class B
------------------------------------------------ ---------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2006 year ended March 31, 2006 year ended
(unaudited) September 30, 2005 (unaudited) September 30, 2005
---------------------- ------------------------ --------------------- ----------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ------------ ---------- ------------ -------- ----------- -------- ------------
Shares sold(1)(2)(3)... 177,784 $ 2,959,893 246,991 $ 3,723,609 44,884 $ 661,460 91,850 $ 1,231,312
Reinvested dividends... -- -- -- -- -- -- -- --
Shares redeemed(1)(2).. (456,035) (7,506,195) (1,159,786) (17,443,762) (328,863) (4,871,820) (748,216) (10,067,500)
-------- ------------ ---------- ------------ -------- ----------- -------- ------------
Net increase (decrease) (278,251) $ (4,546,302) (912,795) $(13,720,153) (283,979) $(4,210,360) (656,366) $ (8,836,188)
======== ============ ========== ============ ======== =========== ======== ============
Growth Opportunities Fund
-----------------------------------------------------------------------------------------------
Class C Class I
------------------------------------------------ ---------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2006 year ended March 31, 2006 year ended
(unaudited) September 30, 2005 (unaudited) September 30, 2005
---------------------- ------------------------ --------------------- ----------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ------------ ---------- ------------ -------- ----------- -------- ------------
Shares sold............ 20,046 $ 293,057 52,972 $ 704,930 3,581 $ 59,223 20,915 $ 314,055
Reinvested dividends... -- -- -- -- -- -- -- --
Shares redeemed(3)..... (125,801) (1,843,337) (410,425) (5,495,557) (76,612) (1,250,977) (167,934) (2,588,381)
-------- ------------ ---------- ------------ -------- ----------- -------- ------------
Net increase (decrease) (105,755) $ (1,550,280) (357,453) $ (4,790,627) (73,031) $(1,191,754) (147,019) $ (2,274,326)
======== ============ ========== ============ ======== =========== ======== ============
Growth Opportunities Fund
------------------------------------------------
Class X+
------------------------------------------------
For the
six months ended For the
March 31, 2006 year ended
(unaudited) September 30, 2005
---------------------- ------------------------
Shares Amount Shares Amount
-------- ------------ ---------- ------------
Shares sold............ -- $ -- -- $ --
Reinvested dividends... -- -- -- --
Shares redeemed........ -- -- (5,500) (86,962)
-------- ------------ ---------- ------------
Net increase (decrease) -- -- (5,500) $ (86,962)
======== ============ ========== ============
New Century Fund
-----------------------------------------------------------------------------------------------
Class A Class B
------------------------------------------------ ---------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2006 year ended March 31, 2006 year ended
(unaudited) September 30, 2005 (unaudited) September 30, 2005
---------------------- ------------------------ --------------------- ----------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ------------ ---------- ------------ -------- ----------- -------- ------------
Shares sold(4)(5)...... 148,271 $ 2,721,084 358,049 $ 6,008,446 28,308 $ 458,538 63,441 $ 952,686
Reinvested dividends... -- -- -- -- -- -- -- --
Shares redeemed(4)(5).. (570,478) (10,462,688) (984,135) (16,434,485) (110,454) (1,787,686) (281,736) (4,143,297)
-------- ------------ ---------- ------------ -------- ----------- -------- ------------
Net increase (decrease) (422,207) $ (7,741,604) (626,086) $(10,426,039) (82,146) $(1,329,148) (218,295) $ (3,190,611)
======== ============ ========== ============ ======== =========== ======== ============
- --------
(1)For the six months ended March 31, 2006, includes automatic conversion of
56,579 shares of Class B shares in the amount of $846,102 to 50,411 shares
of Class A shares in the amount of $846,102.
(2)For the year ended September 30, 2005, includes automatic conversion of
61,785 shares of Class B shares in the amount of $835,637 to 55,314 shares
of Class A shares in the amount of $835,637.
(3)For the six months ended March 31, 2006, includes automatic conversion of
1,034 shares of Class C shares in the amount of $15,287 to 920 shares of
Class A shares in the amount of $15,287.
(4)For the six months ended March 31, 2006, includes automatic conversion of
44,480 shares of Class B shares in the amount of $725,366 to 39,157 shares
of Class A shares in the amount of $725,366.
(5)For the year ended September 30, 2005, includes automatic conversion of
128,611 shares of Class B shares in the amount of $1,883,691 to 113,937
shares of Class A shares in the amount of $1,883,691.
+ See Note 1
68
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2006 -- (unaudited)
(continued)
New Century Fund
--------------------------------------------------
Class C
--------------------------------------------------
For the
six months ended For the
March 31, 2006 year ended
(unaudited) September 30, 2005
------------------------ ------------------------
Shares Amount Shares Amount
---------- ------------ ---------- ------------
Shares sold............ 12,522 $ 198,882 16,515 $ 248,611
Reinvested dividends... -- -- -- --
Shares redeemed........ (18,905) (308,342) (59,097) (874,430)
---------- ------------ ---------- ------------
Net increase (decrease) (6,383) $ (109,460) (42,582) $ (625,819)
========== ============ ========== ============
Growth and Income Fund
----------------------------------------------------------------------------------------------------
Class A Class B
-------------------------------------------------- ------------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2006 year ended March 31, 2006 year ended
(unaudited) September 30, 2005 (unaudited) September 30, 2005
------------------------ ------------------------ ---------------------- ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Shares sold(1)(2)(3)... 621,076 $ 7,826,861 879,119 $ 10,753,528 67,966 $ 803,509 242,630 $ 2,807,143
Reinvested dividends... 7,292 92,385 43,416 537,570 -- -- -- --
Shares redeemed(1)(2).. (998,943) (12,568,378) (1,697,725) (20,789,044) (869,821) (10,375,082) (1,782,268) (20,575,616)
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Net increase (decrease) (370,575) $ (4,649,132) (775,190) $ (9,497,946) (801,855) $ (9,571,573) (1,539,638) $(17,768,473)
========== ============ ========== ============ ======== ============ ========== ============
Growth and Income Fund
----------------------------------------------------------------------------------------------------
Class C Class I
-------------------------------------------------- ------------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2006 year ended March 31, 2006 year ended
(unaudited) September 30, 2005 (unaudited) September 30, 2005
------------------------ ------------------------ ---------------------- ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Shares sold............ 31,064 $ 366,900 136,365 $ 1,581,328 3,239 $ 40,949 21,133 $ 258,364
Reinvested dividends... -- -- -- -- 167 2,120 729 9,047
Shares redeemed(3)..... (729,194) (8,641,224) (1,041,425) (12,022,770) (36,475) (457,211) (28,258) (347,815)
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Net increase (decrease) (698,130) $ (8,274,324) (905,060) $(10,441,442) (33,069) $ (414,142) (6,396) $ (80,404)
========== ============ ========== ============ ======== ============ ========== ============
Balanced Assets Fund
----------------------------------------------------------------------------------------------------
Class A Class B
-------------------------------------------------- ------------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2006 year ended March 31, 2006 year ended
(unaudited) September 30, 2005 (unaudited) September 30, 2005
------------------------ ------------------------ ---------------------- ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Shares sold(4)(5)(6)... 389,085 $ 5,396,561 744,224 $ 10,112,127 58,979 $ 813,637 202,218 $ 2,733,921
Reinvested dividends... 83,319 1,164,692 184,510 2,518,942 9,389 130,831 25,821 351,754
Shares redeemed(4)(5).. (1,292,496) (17,897,680) (2,685,598) (36,608,551) (440,229) (6,079,378) (976,565) (13,227,507)
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Net increase (decrease) (820,092) $(11,336,427) (1,756,864) $(23,977,482) (371,861) $ (5,134,910) (748,526) $(10,141,832)
========== ============ ========== ============ ======== ============ ========== ============
- --------
(1)For the six months ended March 31, 2006, includes automatic conversion of
321,615 shares of Class B shares in the amount of $3,842,407 to 304,116
shares of Class A shares in the amount of $3,842,407.
(2)For the year ended September 30, 2005, includes automatic conversion of
454,066 shares of Class B shares in the amount of $5,217,517 to 428,550
shares of Class A shares in the amount of $5,217,517.
(3)For the six months ended March 31, 2006, includes automatic conversion of
180,265 shares of Class C shares in the amount of $2,136,147 to 170,240
shares of Class A shares in the amount of $2,136,147.
(4)For the six months ended March 31, 2006, includes automatic conversion of
124,684 shares of Class B shares in the amount of $1,729,619 to 124,171
shares of Class A shares in the amount of $1,729,619.
(5)For the year ended September 30, 2005, includes automatic conversion of
250,876 shares of Class B shares in the amount of $3,385,902 to 249,851
shares of Class A shares in the amount of $3,385,902.
(6)For the six months ended March 31, 2006, includes automatic conversion of
24,901 shares of Class C shares in the amount of $344,035 to 24,853 shares
of Class A shares in the amount of $344,035.
69
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2006 -- (unaudited)
(continued)
Balanced Assets Fund
----------------------------------------------------------------------------------------------------
Class C Class I
-------------------------------------------------- ------------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2006 year ended March 31, 2006 year ended
(unaudited) September 30, 2005 (unaudited) September 30, 2005
------------------------ ------------------------ ---------------------- ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Shares sold............ 41,776 $ 572,067 94,054 $ 1,276,760 2,390 $ 33,161 20,395 $ 277,145
Reinvested dividends... 6,283 87,711 15,020 204,890 541 7,569 1,122 15,336
Shares redeemed(1)..... (245,992) (3,401,879) (430,337) (5,844,582) (4,105) (57,308) (18,641) (255,119)
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Net increase (decrease) (197,933) $ (2,742,101) (321,263) $ (4,362,932) (1,174) $ (16,578) 2,876 $ 37,362
========== ============ ========== ============ ======== ============ ========== ============
International Equity Fund
----------------------------------------------------------------------------------------------------
Class A Class B
-------------------------------------------------- ------------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2006 year ended March 31, 2006 year ended
(unaudited) September 30, 2005 (unaudited) September 30, 2005
------------------------ ------------------------ ---------------------- ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Shares sold(2)(3)(4)... 969,417 $ 13,722,801 1,043,869 $ 12,291,775 234,045 $ 3,176,700 261,068 $ 2,907,036
Reinvested dividends... -- -- -- -- -- -- -- --
Shares redeemed(2)(3).. (466,457) (6,509,047) (865,086) (10,105,312) (286,534) (3,783,160) (806,858) (8,933,931)
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Net increase (decrease) 502,960 $ 7,213,754 178,783 $ 2,186,463 (52,489) $ (606,460) (545,790) $ (6,026,895)
========== ============ ========== ============ ======== ============ ========== ============
International Equity Fund
----------------------------------------------------------------------------------------------------
Class C Class I
-------------------------------------------------- ------------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2006 year ended March 31, 2006 year ended
(unaudited) September 30, 2005 (unaudited) September 30, 2005
------------------------ ------------------------ ---------------------- ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Shares sold............ 320,728 $ 4,189,927 162,124 $ 1,805,329 194,126 $ 2,792,932 335,007 $ 3,994,607
Reinvested dividends... -- -- -- -- -- -- -- --
Shares redeemed(4)..... (186,481) (2,440,542) (420,394) (4,662,221) (126,838) (1,848,371) (209,537) (2,503,467)
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Net increase (decrease) 134,247 $ 1,749,385 (258,270) $ (2,856,892) 67,288 $ 944,561 125,470 $ 1,491,140
========== ============ ========== ============ ======== ============ ========== ============
Value Fund
----------------------------------------------------------------------------------------------------
Class A Class B
-------------------------------------------------- ------------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2006 year ended March 31, 2006 year ended
(unaudited) September 30, 2005 (unaudited) September 30, 2005
------------------------ ------------------------ ---------------------- ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Shares sold(5)(6)(7)... 617,652 $ 10,779,287 3,076,062 $ 54,117,019 115,805 $ 1,916,452 741,367 $ 12,542,807
Reinvested dividends... 470,358 8,066,638 587,633 10,101,410 205,229 3,363,708 402,122 6,626,965
Shares redeemed(5)(6).. (1,403,512) (24,402,180) (1,591,136) (28,099,693) (666,610) (11,087,044) (1,822,991) (30,700,307)
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Net increase (decrease) (315,502) $ (5,556,255) 2,072,559 $ 36,118,736 (345,576) $ (5,806,884) (679,502) $(11,530,535)
========== ============ ========== ============ ======== ============ ========== ============
- --------
(1)For the six months ended March 31, 2006, includes automatic conversion of
24,901 shares of Class C shares in the amount of $344,035 to 24,853 shares
of Class A shares in the amount of $344,035.
(2)For the six months ended March 31, 2006, includes automatic conversion of
117,323 shares of Class B shares in the amount of $1,544,660 to 110,526
shares of Class A shares in the amount of $1,544,660.
(3)For the year ended September 30, 2005, includes automatic conversion of
316,984 shares of Class B shares in the amount of $3,494,617 to 300,045
shares of Class A shares in the amount of $3,494,617.
(4)For the six months ended March 31, 2006, includes automatic conversion of
43,913 shares of Class C shares in the amount of $574,440 to 41,343 shares
of Class A shares in the amount of $574,440.
(5)For the six months ended March 31, 2006, includes automatic conversion of
253,827 shares of Class B shares in the amount of $4,226,550 to 242,228
shares of Class A shares in the amount of $4,226,550.
(6)For the year ended September 30, 2005, includes automatic conversion of
1,084,621 shares of Class B shares in the amount of $18,195,883 to 1,038,213
shares of Class A shares in the amount of $18,195,883.
(7)For the six months ended March 31, 2006, includes automatic conversion of
2,144 shares of Class C shares in the amount of $22,283 to 2,095 shares of
Class A shares in the amount of $22,283.
70
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2006 -- (unaudited)
(continued)
Value Fund
------------------------------------------------------------------------------------------
Class C Class I
-------------------------------------------- --------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2006 year ended March 31, 2006 year ended
(unaudited) September 30, 2005 (unaudited) September 30, 2005
--------------------- --------------------- --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ----------- -------- ----------- -------- -----------
Shares sold............ 112,760 $ 1,870,876 829,763 $14,010,774 31,481 $ 548,270 94,037 $ 1,658,733
Reinvested dividends... 147,920 2,422,937 198,515 3,271,530 14,121 241,900 34,149 586,340
Shares redeemed(1)..... (388,622) (6,465,681) (463,163) (7,853,358) (40,305) (691,027) (224,168) (4,025,285)
-------- ----------- -------- ----------- -------- ----------- -------- -----------
Net increase (decrease) (127,942) $(2,171,868) 565,115 $ 9,428,946 5,297 $ 99,143 (95,982) $(1,780,212)
======== =========== ======== =========== ======== =========== ======== ===========
Value Fund
--------------------------------------------
Class Z
--------------------------------------------
For the
six months ended For the
March 31, 2006 year ended
(unaudited) September 30, 2005
--------------------- ---------------------
Shares Amount Shares Amount
-------- ----------- -------- -----------
Shares sold............ 152,944 $ 2,745,679 569,182 $10,322,268
Reinvested dividends... 75,381 1,333,483 60,060 1,060,065
Shares redeemed........ (85,441) (1,533,215) (102,946) (1,879,658)
-------- ----------- -------- -----------
Net increase (decrease) 142,884 $ 2,545,947 526,296 $ 9,502,675
======== =========== ======== ===========
Biotech/Health Fund
------------------------------------------------------------------------------------------
Class A Class B
-------------------------------------------- --------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2006 year ended March 31, 2006 year ended
(unaudited) September 30, 2005 (unaudited) September 30, 2005
--------------------- --------------------- --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ----------- -------- ----------- -------- -----------
Shares sold(2)(3)...... 149,914 $ 1,411,519 452,295 $ 4,107,482 42,215 $ 385,600 86,406 $ 726,533
Reinvested dividends... -- -- -- -- -- -- -- --
Shares redeemed(2)(3).. (295,955) (2,795,960) (728,911) (6,446,238) (224,324) (2,037,661) (468,621) (4,030,746)
-------- ----------- -------- ----------- -------- ----------- -------- -----------
Net increase (decrease) (146,041) $(1,384,441) (276,616) $(2,338,756) (182,109) $(1,652,061) (382,215) $(3,304,213)
======== =========== ======== =========== ======== =========== ======== ===========
Biotech/Health Fund
--------------------------------------------
Class C
--------------------------------------------
For the
six months ended For the
March 31, 2006 year ended
(unaudited) September 30, 2005
--------------------- ---------------------
Shares Amount Shares Amount
-------- ----------- -------- -----------
Shares sold............ 46,991 $ 429,960 94,298 $ 818,695
Reinvested dividends... -- -- -- --
Shares redeemed........ (128,574) (1,172,707) (453,210) (3,900,683)
-------- ----------- -------- -----------
Net increase (decrease) (81,583) $ (742,747) (358,912) $(3,081,988)
======== =========== ======== ===========
- --------
(1)For the six months ended March 31, 2006, includes automatic conversion of
2,144 shares of Class C shares in the amount of $22,283 to 2,095 shares of
Class A shares in the amount of $22,283.
(2)For the six months ended March 31, 2006, includes automatic conversion of
13,457 shares of Class B shares in the amount of $122,420 to 12,964 shares
of Class A shares in the amount of $122,420.
(3)For the year ended September 30, 2005, includes automatic conversion of
15,747 shares of Class B shares in the amount of $136,254 to 15,241 shares
of Class A shares in the amount of $136,254.
71
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2006 -- (unaudited)
(continued)
Tax Managed Equity Fund
------------------------------------------------------------------------------------------
Class A Class B
-------------------------------------------- --------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2006 year ended March 31, 2006 year ended
(unaudited) September 30, 2005 (unaudited) September 30, 2005
--------------------- --------------------- --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ----------- -------- ----------- -------- -----------
Shares sold(1)(2)...... 272,827 $ 3,731,738 48,008 $ 561,687 11,756 $ 150,064 18,771 $ 212,088
Reinvested dividends... 3,627 44,146 5,392 64,327 109 1,276 -- --
Shares redeemed(1)(2).. (150,755) (1,918,728) (305,640) (3,583,246) (281,780) (3,443,202) (501,702) (5,676,515)
-------- ----------- -------- ----------- -------- ----------- -------- -----------
Net increase (decrease) 125,699 $ 1,857,156 (252,240) $(2,957,232) (269,915) $(3,291,862) (482,931) $(5,464,427)
======== =========== ======== =========== ======== =========== ======== ===========
Tax Managed Equity Fund
--------------------------------------------
Class C
--------------------------------------------
For the
six months ended For the
March 31, 2006 year ended
(unaudited) September 30, 2005
--------------------- ---------------------
Shares Amount Shares Amount
-------- ----------- -------- -----------
Shares sold............ 222,323 $ 2,919,503 67,543 $ 758,473
Reinvested dividends... 106 1,242 -- --
Shares redeemed........ (188,818) (2,290,990) (522,887) (5,947,995)
-------- ----------- -------- -----------
Net increase (decrease) 33,611 $ 629,755 (455,344) $(5,189,522)
======== =========== ======== ===========
- --------
(1)For the six months ended March 31, 2006, includes automatic conversion of
19,470 shares of Class B shares in the amount of $256,409 to 18,763 shares
of Class A shares in the amount of $256,409.
(2)For the year ended September 30, 2005, includes automatic conversion of
8,010 shares of Class B shares in the amount of $88,782 to 7,732 shares of
Class A shares in the amount of $88,782.
Note 7. 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, 2006, the following Funds
had borrowings:
Weighted
Days Interest Average Debt Average
Fund Outstanding Charges Utilized Interest
- ---- ----------- -------- ------------ --------
Blue Chip Growth.............. 23 $1,139 $ 403,749 4.48%
Growth and Income............. 22 1,887 626,822 4.94%
Balanced Assets............... 14 605 320,272 4.77%
Value......................... 3 339 812,615 5.02%
Tax Managed Equity............ 45 7,159 1,151,776 4.89%
At March 31, 2006, Growth and Income Fund had a balance open under the line
of credit of $22,128.
Note 8. 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, 2006, none of the Funds participated in this program.
72
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2006 -- (unaudited)
(continued)
Note 9. 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 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, 2006
-----------------------------------------------
Blue Chip Growth.... $29,931 $ 545 $1,161
Growth Opportunities 25,136 536 849
New Century......... 47,637 585 2,019
Growth and Income... 38,830 905 1,192
Balanced Assets..... 82,943 1,202 3,393
International Equity 17,704 528 609
Value............... 29,990 1,401 930
Biotech/Health...... 5,325 208 127
Tax Managed Equity.. 10,562 262 287
Note 10. 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, 2006, the International Equity Fund had approximately 26% of
its net assets invested in equity securities of companies domiciled in Japan.
Note 11. Subsequent Event
At a regular meeting of the Board of Trustees, held on November 29, 2005,
the Board, including the Disinterested Trustees, approved the establishment
of the International Small-Cap Fund. This Fund commenced operations on May
2, 2006.
73
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2006 -- (unaudited)
(continued)
Note 12. Other Information
On February 9, 2006, American International Group, Inc. ("AIG"), the parent
company and an affiliated person of the Adviser, the Distributor and AIGGIC,
the subadviser to one Fund, (the "Subadviser"), announced that it had
consented to the settlement of an injunctive action instituted by the
Securities and Exchange Commission ("SEC"). In its complaint, the SEC
alleged that AIG violated Section 17(a) of the Securities Act of 1933, as
amended, Sections 10(b), 13(a), 13(b)(2) and 13(b)(5) of the Securities
Exchange Act of 1934, as amended, and Rules 10b-5, 12b-20, 13a-1 and 13b2-1
promulgated thereunder, in connection with AIG's accounting and public
reporting practices. The conduct described in the complaint did not involve
any conduct of AIG or its subsidiaries related to their investment advisory
or distribution activities with respect to the assets of the Funds.
AIG, without admitting or denying the allegations in the complaint (except
as to jurisdiction), consented to the entry of an injunction against further
violations of the statutes referred to above. Absent exemptive relief
granted by the SEC, the entry of such an injunction would prohibit AIG and
its affiliated persons from, among other things, serving as an investment
adviser of any registered investment management company or principal
underwriter for any registered open-end investment company pursuant to
Section 9(a) of the Investment Company Act of 1940, as amended ("1940 Act").
Certain affiliated persons of AIG, including the Adviser, the Subadviser and
the Distributor, received a temporary order from the SEC pursuant to Section
9(c) of the 1940 Act with respect to the entry of the injunction, granting
exemptive relief from the provisions of Section 9(a) of the 1940 Act. The
temporary order permits AIG and its affiliated persons, including AIG's
investment management subsidiaries, to serve as investment adviser,
sub-adviser, principal underwriter or sponsor of the Funds. The Adviser
expects that a permanent exemptive order will be granted, although there is
no assurance the SEC will issue the order.
Additionally, AIG and its subsidiaries reached a resolution of claims and
matters under investigation with the United State Department of Justice
("DOJ"), the Attorney General of the State of New York ("NYAG") and the New
York State Department of Insurance ("DOI"), regarding accounting, financial
reporting and insurance brokerage practices of AIG and its subsidiaries, as
well as claims relating to the underpayment of certain workers compensation
premium taxes and other assessments.
As a result of the settlements with the SEC, the DOJ, the NYAG and the DOI,
AIG will make payments totaling approximately $1.64 billion. In addition, as
part of its settlements, AIG has agreed to retain for a period of three
years an Independent Consultant who will conduct a review that will include
the adequacy of AIG's internal controls over financial reporting and the
remediation plan that AIG has implemented as a result of its own internal
review.
Subject to receipt of permanent relief, the Adviser, Distributor and the
Subadviser believe that the settlements are not likely to have a material
adverse effect on their ability to perform their respective investment
advisory or distribution services relating to the Funds.
74
SunAmerica Equity Funds
TRUSTEE AND OFFICER INFORMATION -- March 31, 2006 -- (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 43 None
DOB: February 27, 1963 National Housing
Development Corporation
(January 2000 to present);
Founder, Owner and Partner
of Colonies Crossroads, Inc.
(January 2000 to present);
Owner and Managing
Member of Diversified
Pacific Development Group
LLC (June 1990 to present).
Dr. Judith L. Craven Trustee 2001-Present Retired. 92 Director, A.G. Belo Corp.
DOB: October 6, 1945 (1992 to present); Director,
Sysco Corp. (1996 to
present); Director, Luby's,
Inc. (1998 to present):
Director, University of Texas
Board of Regents
(May 2001-present).
William F. Devin Trustee 2001-Present Retired. 92 Member of the Board of
DOB: December 30, 1938 Governors, Boston Stock
Exchange (1985-present).
Samuel M. Eisenstat Chairman 1986-Present Attorney, solo practitioner. 53 Director, North European Oil
DOB: March 7, 1940 of the Royalty Trust.
Board
Stephen J. Gutman Trustee 1986-Present Senior Associate, Corcoran 53 None
DOB: May 10, 1943 Group (Real Estate) (2003 to
present); Partner and
Managing Member, Beau
Brummell-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, 101 None
DOB: January 23, 1954 SAAMCo. (August 1995 to
present); Director, AIG
SunAmerica Capital
Services, Inc. ("SACS")
(August 1993 to present)
President and CEO, AIG
Advisor Group, Inc. (June
2004 to present).
William J. Shea Trustee 2004-Present President and CEO, Conseco, 53 Chairman of the Board,
DOB: February 9, 1948 Inc. (Financial Services) Royal and SunAlliance,
(2001-2004); Chairman of U.S.A., Inc. (March 2005 to
the Board of Centennial present); Director, Boston
Technologies, Inc. (1998 to Private Financial Holdings
2001); Vice Chairman, Bank (October 2004 to present).
Boston Corp. (1993-1998)
75
SunAmerica Equity Funds
TRUSTEE AND OFFICER INFORMATION -- March 31, 2006 -- (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, Chief
Operating Officer and Chief
Financial Officer, Carret &
Co. LLC (June 2002 to
February 2003); President
and Chief Operating Officer,
Bowne Digital Solutions
(1999 to May 2002)
Donna M. Handel Treasurer 2002-Present Senior Vice President, N/A N/A
DOB: June 25, 1966 SAAMCo (December 2004
to present); Vice President,
SAAMCo (1997 to
December 2004), Assistant
Treasurer (1993 to 2002)
Gregory N. Bressler Secretary September Senior Vice President and N/A N/A
DOB: November 17, 1966 and Chief 2005 to General Counsel, SAAMCo
Legal Present (June 2005 to present); Vice
Officer President and Director of
U.S. Asset Management
Compliance, Goldman Sachs
Asset Management (June
2004 to June 2005); Deputy
General Counsel, Credit
Suisse Asset Management
(June 2002 to June 2004);
Counsel, Credit Suisse Asset
Management (January 2000
to June 2002).
- --------
* 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 administrator. The "Fund
Complex" includes the SunAmerica Money Market Funds (2 funds), SunAmerica
Equity Funds (10 funds), SunAmerica Income Funds (6 funds), SunAmerica
Focused Series, Inc. (17 portfolios), SunAmerica Focused Alpha Growth Fund,
Inc. (1 fund), SunAmerica Focused Alpha Large-Cap Fund, Inc. (1 fund),
Anchor Series Trust (9 portfolios), SunAmerica Senior Floating Rate Fund,
Inc. (1 fund), SunAmerica Series Trust (32 portfolios), VALIC Company I (33
portfolios), VALIC Company II (15 funds), Seasons Series Trust (24
portfolios) and AIG Series Trust (6 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 9 of the
financial statements.
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.
76
[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. Once filed,
Vincent M. Marra, AIG SunAmerica Capital the Trust's Form N-Q will
President Services, Inc. be available without
Donna M. Handel, Harborside Financial charge on the U.S.
Treasurer Center Securities and Exchange
J. Steven Neamtz, Vice 3200 Plaza 5 Commission's website at
President Jersey City, NJ www.sec.gov. You can also
Timothy Pettee, Vice 07311-4992 obtain cop-ies of Form
President N-Q by (i) visiting the
Cynthia Gibbons, Vice Shareholder Servicing U.S. Securities and
President and Chief Agent Exchange Commis-sion's
Compliance Officer AIG SunAmerica Fund Public Reference Room in
Gregory N. Bressler, Services, Inc. Washington, DC
Chief Legal Officer Harborside Financial (information on the
and Secretary Center operation of the Public
Gregory R. Kingston, 3200 Plaza 5 Reference Room may be
Vice President and Jersey City, NJ obtained by calling
Assistant Treasurer 07311-4992 1-800-SEC-0330); (ii)
Corey A. Issing, sending your request and
Assistant Secretary Custodian and Transfer a duplicating fee to the
Shawn Parry, Assistant Agent U.S. Securities and
Treasurer State Street Bank and Exchange Commis-sion's
Trust Company Public Reference Room,
P.O. Box 419572 Washington, DC 20549-0102
Kansas City, MO or (iii) sending your
64141-6572 request electronically to
publicinfo.sec.gov.
VOTING PROXIES ON TRUST
PORTFOLIO SECURITIES This report is submitted
A description of the solely for the general
policies and proce-dures information of
that the Trust uses to shareholders of the Fund.
determine how to vote Distribution of this
proxies relating to report to persons other
secu-rities held in the than shareholders of the
Fund's portfolio which is Fund is authorized only
available in the Trust's in connection with a
State-ment of Additional currently effective
Information, may be prospectus, setting forth
obtained without charge details of the Fund,
upon re-quest, by calling which must precede or
(800) 858-8850. This accompany this report.
information is also
available from the EDGAR The accompanying report
database on the U.S. has not been audited by
Secu-rities and Exchange independent accountants
Commission's website at and accordingly no
http://www.sec.gov. opinion has been
expressed thereon.
PROXY VOTING RECORD ON
SUNAMERICA EQUITY FUNDS
Information regarding how
SunAmerica Equity Funds
voted prox-ies relating
to securities held in the
SunAmerica Equity Funds
during the twelve month
period ended June 30,
2005 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.
77
[LOGO]
AIG
Sun America
Mutual Funds
Distributed by:
AIG SunAmerica Capital Services, Inc.
Harborside Financial Center
3200 Plaza 5
Jersey City, NJ 07311-4992
Investors should carefully consider the investment objectives, risks, charges
and expenses of any mutual fund before investing. This and other important
information is contained in the prospectus, which can be obtained from your
financial adviser or from the AIG SunAmerica Sales Desk at 800-858-8850, ext.
6003. Read the prospectus carefully before you invest.
www.sunamericafunds.com
EQSAN-3/06
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.
Included in Item 1 to the Form
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.
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, 2006
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, 2006
By: /s/ Donna M. Handel
-------------------
Donna M. Handel
Treasurer
Date: June 9, 2006