UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-04801
---------------------------------------------
SunAmerica Equity Funds
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Harborside Financial Center, 3200 Plaza 5 Jersey City, NJ 07311
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(Address of principal executive offices) (Zip code)
Vincent M. Marra
Senior Vice President
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, 2007
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Item 1. Reports to Stockholders
SunAmerica 2007
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[PHOTO]
Semi-annual Report
[GRAPHIC]
Equity Funds
[LOGO] AIG SunAmerica
Mutual Funds
March 31, 2007 SEMI-ANNUAL 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)
Tax Managed Equity Fund* (TXMAX)
SunAmerica International Small-Cap Fund (SAESX)
* As of May 15, 2007, the name of the SunAmerica Tax Managed Equity Fund was
changed to the SunAmerica Disciplined Growth Fund.
Table of Contents
SHAREHOLDER LETTER.......................................................... 2
EXPENSE EXAMPLE............................................................. 3
STATEMENT OF ASSETS AND LIABILITIES......................................... 6
STATEMENT OF OPERATIONS..................................................... 10
STATEMENT OF CHANGES IN NET ASSETS.......................................... 13
FINANCIAL HIGHLIGHTS........................................................ 18
PORTFOLIO OF INVESTMENTS.................................................... 27
NOTES TO FINANCIAL STATEMENTS............................................... 68
RESULTS OF SPECIAL MEETING OF SHAREHOLDERS.................................. 90
TRUSTEE AND OFFICER INFORMATION............................................. 91
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, 2007.
During the past six months, domestic equities rose across the board, as the Dow
Jones Industrial Average, S&P 500 and NASDAQ Composite returned 7.01%, 7.38%,
and 7.62%, respectively. International equities remained strong with the MSCI
EAFE* Index returning 14.85% for the six-month period
The market appreciation during the six-month period was broad-based, as all
industry sectors and asset classes posted positive returns. Overall, market
leadership was provided by the mid-cap and small-cap categories, and value
indices generally outperformed their growth counterparts. In terms of sectors,
three of the smallest S&P 500 constituents, the Materials, Utilities and
Telecommunications sectors, were the top contributors, while three of the
largest industry segments, the Information Technology, Healthcare and Financial
categories were the principal laggards during the six-month period.
The semi-annual period began on a strong note as the Federal Open Market
Committee (FOMC) continued to keep its key monetary target unchanged at its
regularly scheduled meetings in October and December. Strong corporate earnings
reports and a downward slide in oil prices also helped lift U.S. equities to
new highs. As we began the New Year, questions remained on both the direction
of the economy and the markets. The economic debate centered around the future
level of U.S. Gross Domestic Product (G.D.P.) growth and what that meant for
Federal Reserve policy. While there were many differing views, the debate broke
down into two basic camps. The first believed that the U.S. economy--driven by
the housing sector--was slowing down dramatically and that inflation, which is
a lagging indicator, was under control and would come down as the economy
decelerated. They expected that this would result in the Federal Reserve
cutting interest rates. The second camp acknowledged that the economy had
slowed down but believed that this was merely a mid-cycle correction. They
believed that growth would reaccelerate and that the Fed would need to tighten
further in order to slow down the economy and head-off inflation.
The equity market rally continued through January 2007 in anticipation of
moderate economic activity and a more benign Federal Reserve. However, market
pressures returned as the sub-prime mortgage market continued to deteriorate
and fears of a weakening economy increased volatility. After a sell-off in the
Chinese equities markets, the U.S. markets experienced a decline in February.
However, the domestic markets rebounded in March and the equity and fixed
income markets ended the quarter with negligible, yet mostly positive results.
All of our funds provided positive returns over the six-month period. The
SunAmerica Growth Opportunities Fund, Tax Managed Equity Fund, and SunAmerica
New Century Fund were all in the top quartile of their respective Lipper peer
groups for the semi-annual period, while the SunAmerica International Small-Cap
Fund was in the top half of its Lipper peer group for this period.
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
AIG SunAmerica Asset Management Corp. AIG Global Investment Corp.
- ---------------------------
John Massey Ben Barrett Kara Murphy Hans Danielsson
Steven Neimeth Soraya Benitez Sandra Salas Robin Thorn
Paul Ma Michael Beaulieu Andrew Sheridan Chantal Brennan
Jay Rushin Allison Larkin Brendan Voege Ming Hsu
Gregory Parker Noriko Umino
- --------
Past performance is no guarantee of future results.
* The Morgan Stanley Capital International (MSCI) Europe, Australia and Far
East (EAFE) Index is a representative benchmark used to measure the performance
of the International stock market as a whole, in U.S. dollar terms.
2
SunAmerica Equity Funds
EXPENSE EXAMPLE -- March 31, 2007 -- (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
(loads) on purchase payments, contingent deferred sales charges, redemption
fees (applicable to Class A of International Equity Fund and International
Small-Cap 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, 2006 and held until March 31, 2007.
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, 2007" 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, 2007" 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, 2007" 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, 2007" 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, 2007"
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, 2007" 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, 2007" 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 (applicable to Class A of International Equity Fund and International
Small-Cap 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, 2007 -- (unaudited) (continued)
Actual Hypothetical
----------------------------------------- --------------------------------------------------
Ending Account
Ending Account Expense Paid Value using
Value Using During the a Hypothetical Expense Paid Expense
Beginning Actual Period Beginning 5% Assumed During the Ratio
Account Value Return at Ended Account Value Return at Period Ended as of
at October 1, March 31, March 31, at October 1, March 31, March 31, March 31,
Fund 2006 2007 2007 2006 2007 2007 2007 *
- ---- ------------- -------------- ------------ ------------- -------------- ------------ ---------
Blue Chip Growth Fund@
Class A# ................. $1,000.00 $1,056.72 $ 8.26 $1,000.00 $1,016.90 $ 8.10 1.61%
Class B#.................. $1,000.00 $1,051.65 $12.23 $1,000.00 $1,013.15 $12.00 2.39%
Class C# ................. $1,000.00 $1,050.51 $13.24 $1,000.00 $1,012.15 $12.99 2.59%
Class I#.................. $1,000.00 $1,057.97 $ 6.72 $1,000.00 $1,018.40 $ 6.59 1.31%
Growth Opportunities Fund@
Class A# ................. $1,000.00 $1,153.17 $ 8.80 $1,000.00 $1,016.89 $ 8.25 1.64%
Class B#.................. $1,000.00 $1,149.67 $12.38 $1,000.00 $1,013.55 $11.60 2.31%
Class C# ................. $1,000.00 $1,148.54 $12.80 $1,000.00 $1,013.01 $11.99 2.39%
Class I#.................. $1,000.00 $1,157.01 $ 7.10 $1,000.00 $1,018.49 $ 6.64 1.32%
New Century Fund@
Class A .................. $1,000.00 $1,148.92 $ 8.46 $1,000.00 $1,017.05 $ 7.95 1.58%
Class B................... $1,000.00 $1,144.26 $13.04 $1,000.00 $1,012.76 $12.24 2.44%
Class C# ................. $1,000.00 $1,145.39 $11.45 $1,000.00 $1,014.26 $10.75 2.14%
Growth and Income Fund@
Class A# ................. $1,000.00 $1,063.29 $ 7.82 $1,000.00 $1,017.35 $ 7.64 1.52%
Class B#.................. $1,000.00 $1,059.29 $11.30 $1,000.00 $1,013.96 $11.05 2.20%
Class C# ................. $1,000.00 $1,060.17 $11.30 $1,000.00 $1,014.10 $11.05 2.20%
Class I#.................. $1,000.00 $1,064.59 $ 6.69 $1,000.00 $1,018.45 $ 6.54 1.30%
Balanced Assets Fund@
Class A# ................. $1,000.00 $1,050.00 $ 8.02 $1,000.00 $1,017.10 $ 7.90 1.57%
Class B#.................. $1,000.00 $1,046.20 $11.78 $1,000.00 $1,013.41 $11.60 2.31%
Class C# ................. $1,000.00 $1,046.83 $11.63 $1,000.00 $1,013.56 $11.45 2.28%
Class I#.................. $1,000.00 $1,051.74 $ 6.70 $1,000.00 $1,018.40 $ 6.59 1.31%
International Equity Fund
Class A# ................. $1,000.00 $1,118.06 $10.03 $1,000.00 $1,015.59 $ 9.55 1.90%
Class B#.................. $1,000.00 $1,114.48 $13.44 $1,000.00 $1,012.22 $12.79 2.55%
Class C# ................. $1,000.00 $1,113.88 $13.44 $1,000.00 $1,012.22 $12.79 2.55%
Class I#.................. $1,000.00 $1,118.42 $ 9.51 $1,000.00 $1,015.96 $ 9.05 1.80%
Value Fund@
Class A# ................. $1,000.00 $1,066.30 $ 8.40 $1,000.00 $1,016.80 $ 8.20 1.63%
Class B#.................. $1,000.00 $1,062.97 $11.73 $1,000.00 $1,013.56 $11.45 2.28%
Class C# ................. $1,000.00 $1,062.97 $11.73 $1,000.00 $1,013.56 $11.45 2.28%
Class I#.................. $1,000.00 $1,066.42 $ 7.88 $1,000.00 $1,017.44 $ 7.70 1.53%
Class Z# ................. $1,000.00 $1,069.46 $ 5.47 $1,000.00 $1,019.65 $ 5.34 1.06%
Tax Managed Equity Fund@
Class A# ................. $1,000.00 $1,093.13 $ 7.57 $1,000.00 $1,017.84 $ 7.29 1.45%
Class B#.................. $1,000.00 $1,089.83 $10.94 $1,000.00 $1,014.46 $10.55 2.10%
Class C# ................. $1,000.00 $1,088.89 $10.94 $1,000.00 $1,014.46 $10.55 2.10%
International Small-Cap Fund
Class A# ................. $1,000.00 $1,196.38 $10.40 $1,000.00 $1,015.46 $ 9.55 1.90%
Class B#.................. $1,000.00 $1,193.28 $13.94 $1,000.00 $1,012.22 $12.79 2.55%
Class C# ................. $1,000.00 $1,192.38 $13.94 $1,000.00 $1,012.35 $12.79 2.55%
- --------
* 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 and International Small-Cap Fund only), small
account fees and administrative fees, if applicable to your account. Please
refer to your Prospectus and/or qualified retirement plan document for more
information.
# During the stated period, the investment adviser 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 Period Ended
March 31, 2007" and "Expense Ratios" would have been lower.
@ Through expense offset arrangements resulting from broker commission
recapture, a portion of the Fund's expenses have been reduced. Had the
expense reductions been applied, the Expense Example would have been as
follows:
4
SunAmerica Equity Funds
EXPENSE EXAMPLE -- March 31, 2007 -- (unaudited) (continued)
Actual Hypothetical
----------------------------------------- -----------------------------------------
Ending Account
Ending Account Expense Paid Value using Expense Paid
Value Using During the a Hypothetical During the Expense
Beginning Actual Period Beginning 5% Assumed Period 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,
Fund 2006 2007 2007 2006 2007 2007 2007 *
- ---- ------------- -------------- ------------ ------------- -------------- ------------ ---------
Blue Chip Growth Fund
Class A# .............. $1,000.00 $1,056.72 $ 8.15 $1,000.00 $1,017.00 $ 8.00 1.59%
Class B#............... $1,000.00 $1,051.65 $12.12 $1,000.00 $1,013.11 $11.90 2.37%
Class C# .............. $1,000.00 $1,051.51 $13.14 $1,000.00 $1,012.12 $12.89 2.57%
Class I#............... $1,000.00 $1,057.97 $ 6.62 $1,000.00 $1,018.50 $ 6.49 1.29%
Growth Opportunities Fund
Class A# .............. $1,000.00 $1,153.17 $ 8.59 $1,000.00 $1,016.95 $ 8.05 1.60%
Class B#............... $1,000.00 $1,149.67 $12.17 $1,000.00 $1,013.61 $11.40 2.27%
Class C# .............. $1,000.00 $1,148.54 $12.59 $1,000.00 $1,013.21 $11.80 2.35%
Class I#............... $1,000.00 $1,157.01 $ 6.88 $1,000.00 $1,018.55 $ 6.44 1.28%
New Century Fund
Class A ............... $1,000.00 $1,148.92 $ 8.36 $1,000.00 $1,017.15 $ 7.85 1.56%
Class B................ $1,000.00 $1,144.26 $12.94 $1,000.00 $1,012.86 $12.14 2.42%
Class C# .............. $1,000.00 $1,145.39 $11.34 $1,000.00 $1,014.36 $10.65 2.12%
Growth and Income Fund
Class A# .............. $1,000.00 $1,063.29 $ 7.77 $1,000.00 $1,017.40 $ 7.59 1.51%
Class B#............... $1,000.00 $1,059.29 $11.24 $1,000.00 $1,014.01 $11.00 2.19%
Class C# .............. $1,000.00 $1,060.17 $11.25 $1,000.00 $1,014.01 $11.00 2.19%
Class I#............... $1,000.00 $1,064.59 $ 6.64 $1,000.00 $1,018.50 $ 6.49 1.29%
Balanced Assets Fund
Class A# .............. $1,000.00 $1,050.00 $ 7.97 $1,000.00 $1,017.15 $ 7.85 1.56%
Class B#............... $1,000.00 $1,046.20 $11.73 $1,000.00 $1,013.46 $11.55 2.30%
Class C# .............. $1,000.00 $1,046.83 $11.58 $1,000.00 $1,013.61 $11.40 2.27%
Class I#............... $1,000.00 $1,051.74 $ 6.65 $1,000.00 $1,018.45 $ 6.54 1.30%
Value Fund
Class A# .............. $1,000.00 $1,066.30 $ 8.35 $1,000.00 $1,016.85 $ 8.15 1.62%
Class B#............... $1,000.00 $1,062.97 $11.68 $1,000.00 $1,013.61 $11.40 2.27%
Class C# .............. $1,000.00 $1,062.97 $11.68 $1,000.00 $1,013.61 $11.40 2.27%
Class I#............... $1,000.00 $1,066.42 $ 7.83 $1,000.00 $1,017.35 $ 7.64 1.52%
Class Z# .............. $1,000.00 $1,069.46 $ 5.42 $1,000.00 $1,019.70 $ 5.29 1.05%
Tax Managed Equity Fund
Class A# .............. $1,000.00 $1,093.13 $ 6.52 $1,000.00 $1,018.70 $ 6.29 1.25%
Class B#............... $1,000.00 $1,089.83 $ 9.85 $1,000.00 $1,015.51 $ 9.50 1.89%
Class C# .............. $1,000.00 $1,088.89 $ 9.95 $1,000.00 $1,015.41 $ 9.60 1.91%
5
SunAmerica Equity Funds
STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2007 -- (unaudited)
Blue Chip Growth New
Growth Opportunities Century
Fund Fund Fund
------------ ------------- ------------
ASSETS:
Long-term investment securities, at value (unaffiliated)*................. $ 65,773,184 $ 63,232,879 $ 89,782,984
Short-term investment securities, at value (unaffiliated)*................ -- -- --
Repurchase agreements (cost equals market value).......................... 2,280,000 5,722,000 21,302,000
------------ ------------- ------------
Total investments....................................................... 68,053,184 68,954,879 111,084,984
------------ ------------- ------------
Cash...................................................................... 771 1,912 337,702
Foreign cash*............................................................. -- -- --
Receivable for:
Fund shares sold........................................................ 5,944 51,468 19,261
Dividends and interest.................................................. 59,197 16,674 93,259
Investments sold........................................................ 68,822 1,988,333 4,368,634
Prepaid expenses and other assets......................................... 9,120 35,198 12,309
Due from investment adviser for expense reimbursements/fee waivers........ 3,900 3,005 5,609
------------ ------------- ------------
Total assets.............................................................. 68,200,938 71,051,469 115,921,758
------------ ------------- ------------
LIABILITIES:
Payable for:
Fund shares redeemed.................................................... 127,974 52,592 108,550
Investments purchased................................................... 149,946 1,200,840 4,851,005
Investment advisory and management fees................................. 43,150 44,245 62,537
Distribution and service maintenance fees............................... 31,110 37,548 36,704
Transfer agent fees and expenses........................................ 29,947 28,023 35,400
Trustees' fees and expenses............................................. 29,146 24,909 50,879
Other accrued expenses.................................................. 91,700 118,270 161,263
Interest on securities sold short....................................... -- -- --
Line of credit.......................................................... -- -- --
Securities sold short, at value#.......................................... -- -- --
------------ ------------- ------------
Total liabilities......................................................... 502,973 1,506,427 5,306,338
------------ ------------- ------------
Net Assets................................................................ $ 67,697,965 $ 69,545,042 $110,615,420
============ ============= ============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value............................. $ 42,402 $ 37,452 $ 53,135
Paid-in capital........................................................... 133,383,470 262,168,428 188,911,885
------------ ------------- ------------
133,425,872 262,205,880 188,965,020
Accumulated undistributed net investment income (loss).................... (193,770) (372,249) (84,412)
Accumulated undistributed net realized gain (loss) on investments, futures
contracts, options contracts, securities sold short and foreign exchange
transactions............................................................. (70,091,746) (194,258,053) (80,283,634)
Unrealized appreciation (depreciation) on investments..................... 4,557,512 1,969,464 2,017,935
Unrealized foreign exchange gain (loss) on other assets and liabilities... 97 -- 511
Unrealized appreciation (depreciation) on securities sold short........... -- -- --
Accrued capital gains tax on unrealized appreciation (depreciation)....... -- -- --
------------ ------------- ------------
Net Assets.............................................................. $ 67,697,965 $ 69,545,042 $110,615,420
============ ============= ============
*Cost
Long-term investment securities (unaffiliated).......................... $ 61,215,672 $ 61,263,415 $ 87,765,049
============ ============= ============
Short-term investment securities (unaffiliated)......................... $ -- $ -- $ --
============ ============= ============
Foreign cash............................................................ $ -- $ -- $ --
============ ============= ============
#Proceeds from securities sold short...................................... $ -- $ -- $ --
============ ============= ============
Growth and Balanced
Income Assets
Fund Fund
------------ ------------
ASSETS:
Long-term investment securities, at value (unaffiliated)*................. $109,535,039 $156,836,643
Short-term investment securities, at value (unaffiliated)*................ -- --
Repurchase agreements (cost equals market value).......................... -- 2,153,000
------------ ------------
Total investments....................................................... 109,535,039 158,989,643
------------ ------------
Cash...................................................................... -- 3,455
Foreign cash*............................................................. -- --
Receivable for:
Fund shares sold........................................................ 36,207 14,564
Dividends and interest.................................................. 136,588 660,417
Investments sold........................................................ 3,381,713 2,217,159
Prepaid expenses and other assets......................................... 12,826 11,545
Due from investment adviser for expense reimbursements/fee waivers........ 2,663 6,392
------------ ------------
Total assets.............................................................. 113,105,036 161,903,175
------------ ------------
LIABILITIES:
Payable for:
Fund shares redeemed.................................................... 272,144 109,145
Investments purchased................................................... 1,519,415 4,687,277
Investment advisory and management fees................................. 70,158 99,414
Distribution and service maintenance fees............................... 58,969 64,388
Transfer agent fees and expenses........................................ 45,302 65,596
Trustees' fees and expenses............................................. 38,754 79,395
Other accrued expenses.................................................. 91,734 160,319
Interest on securities sold short....................................... -- 1,008
Line of credit.......................................................... 648,482 --
Securities sold short, at value#.......................................... -- 637,725
------------ ------------
Total liabilities......................................................... 2,744,958 5,904,267
------------ ------------
Net Assets................................................................ $110,360,078 $155,998,908
============ ============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value............................. $ 79,468 $ 105,000
Paid-in capital........................................................... 146,305,576 221,279,564
------------ ------------
146,385,044 221,384,564
Accumulated undistributed net investment income (loss).................... 46,845 245,300
Accumulated undistributed net realized gain (loss) on investments, futures
contracts, options contracts, securities sold short and foreign exchange
transactions............................................................. (42,644,072) (73,536,922)
Unrealized appreciation (depreciation) on investments..................... 6,572,024 7,905,148
Unrealized foreign exchange gain (loss) on other assets and liabilities... 237 199
Unrealized appreciation (depreciation) on securities sold short........... -- 619
Accrued capital gains tax on unrealized appreciation (depreciation)....... -- --
------------ ------------
Net Assets.............................................................. $110,360,078 $155,998,908
============ ============
*Cost
Long-term investment securities (unaffiliated).......................... $102,963,015 $148,931,495
============ ============
Short-term investment securities (unaffiliated)......................... $ -- $ --
============ ============
Foreign cash............................................................ $ -- $ --
============ ============
#Proceeds from securities sold short...................................... $ -- $ 638,344
============ ============
See Notes to Financial Statements
6
SunAmerica Equity Funds
STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2007 -- (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.................................................. $47,459,732 $39,000,352 $90,360,128 $62,971,916 $122,961,396
Shares of beneficial interest issued and outstanding........ 2,863,321 1,985,248 4,228,730 4,409,908 8,273,957
Net asset value and redemption price per share.............. $ 16.58 $ 19.65 $ 21.37 $ 14.28 $ 14.86
Maximum sales charge (5.75% of offering price).............. 1.01 1.20 1.30 0.87 0.91
----------- ----------- ----------- ----------- ------------
Maximum offering price to public............................ $ 17.59 $ 20.85 $ 22.67 $ 15.15 $ 15.77
=========== =========== =========== =========== ============
Class B (unlimited shares authorized):
Net assets.................................................. $15,568,339 $20,578,138 $13,597,938 $22,398,812 $ 17,679,477
Shares of beneficial interest issued and outstanding........ 1,061,657 1,185,617 729,631 1,671,533 1,192,319
Net asset value, offering and redemption price per share
(excluding any applicable contingent deferred sales charge) $ 14.66 $ 17.36 $ 18.64 $ 13.40 $ 14.83
=========== =========== =========== =========== ============
Class C (unlimited shares authorized):
Net assets.................................................. $ 4,074,225 $ 9,823,681 $ 6,657,354 $24,677,884 $ 14,649,185
Shares of beneficial interest issued and outstanding........ 279,774 567,187 355,100 1,843,598 986,112
Net asset value, offering and redemption price per share
(excluding any applicable contingent deferred sales charge) $ 14.56 $ 17.32 $ 18.75 $ 13.39 $ 14.86
=========== =========== =========== =========== ============
Class I (unlimited shares authorized):
Net assets.................................................. $ 595,669 $ 142,871 $ -- $ 311,466 $ 708,850
Shares of beneficial interest issued and outstanding........ 35,478 7,156 -- 21,724 47,614
Net asset value, offering and redemption price per share.... $ 16.79 $ 19.97 $ -- $ 14.34 $ 14.89
=========== =========== =========== =========== ============
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
7
SunAmerica Equity Funds
STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2007 -- (unaudited)
(continued)
International
Equity
Fund
-------------
ASSETS:
Long-term investment securities, at value (unaffiliated)*............................................... $122,004,110
Short-term investment securities, at value (unaffiliated)*.............................................. --
Repurchase agreements (cost equals market value)........................................................ 1,840,000
------------
Total investments..................................................................................... 123,844,110
------------
Cash.................................................................................................... 1,394
Foreign cash*........................................................................................... --
Receivable for:
Fund shares sold...................................................................................... 83,469
Dividends and interest................................................................................ 437,746
Investments sold...................................................................................... 332,571
Prepaid expenses and other assets....................................................................... 3,750
Due from investment adviser for expense reimbursements/fee waivers...................................... 28,681
------------
Total assets............................................................................................ 124,731,721
------------
LIABILITIES:
Payable for:
Fund shares redeemed.................................................................................. 141,663
Investments purchased................................................................................. 335,552
Investment advisory and management fees............................................................... 102,547
Distribution and service maintenance fees............................................................. 59,673
Transfer agent fees and expenses...................................................................... 36,482
Trustees' fees and expenses........................................................................... 18,381
Other accrued expenses................................................................................ 144,833
Interest on securities sold short..................................................................... --
Line of credit........................................................................................ --
Due to custodian for foreign cash....................................................................... 898,884
Securities sold short, at value#........................................................................ --
------------
Total liabilities....................................................................................... 1,738,015
------------
Net Assets.............................................................................................. $122,993,706
============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value........................................................... $ 71,213
Paid-in capital......................................................................................... 119,371,771
------------
119,442,984
Accumulated undistributed net investment income (loss).................................................. (683,237)
Accumulated undistributed net realized gain (loss) on investments, futures contracts, options contracts,
securities sold short and foreign exchange transactions................................................ (10,181,139)
Unrealized appreciation (depreciation) on investments................................................... 14,406,398
Unrealized foreign exchange gain (loss) on other assets and liabilities................................. 8,700
Unrealized appreciation (depreciation) on securities sold short......................................... --
Accrued capital gains tax on unrealized appreciation (depreciation)..................................... --
------------
Net Assets............................................................................................ $122,993,706
============
*Cost
Long-term investment securities (unaffiliated)........................................................ $107,597,712
============
Short-term investment securities (unaffiliated)....................................................... $ --
============
Foreign cash.......................................................................................... $ (900,694)
============
#Proceeds from securities sold short.................................................................... $ --
============
Value
Fund
------------
ASSETS:
Long-term investment securities, at value (unaffiliated)*............................................... $224,717,006
Short-term investment securities, at value (unaffiliated)*.............................................. --
Repurchase agreements (cost equals market value)........................................................ 3,125,000
------------
Total investments..................................................................................... 227,842,006
------------
Cash.................................................................................................... 164
Foreign cash*........................................................................................... --
Receivable for:
Fund shares sold...................................................................................... 396,679
Dividends and interest................................................................................ 310,789
Investments sold...................................................................................... 2,386,931
Prepaid expenses and other assets....................................................................... 30,131
Due from investment adviser for expense reimbursements/fee waivers...................................... 56,371
------------
Total assets............................................................................................ 231,023,071
------------
LIABILITIES:
Payable for:
Fund shares redeemed.................................................................................. 331,672
Investments purchased................................................................................. --
Investment advisory and management fees............................................................... 194,090
Distribution and service maintenance fees............................................................. 101,349
Transfer agent fees and expenses...................................................................... 64,796
Trustees' fees and expenses........................................................................... 32,184
Other accrued expenses................................................................................ 125,054
Interest on securities sold short..................................................................... --
Line of credit........................................................................................ --
Due to custodian for foreign cash....................................................................... --
Securities sold short, at value#........................................................................ --
------------
Total liabilities....................................................................................... 849,145
------------
Net Assets.............................................................................................. $230,173,926
============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value........................................................... $ 131,093
Paid-in capital......................................................................................... 198,898,994
------------
199,030,087
Accumulated undistributed net investment income (loss).................................................. 605,550
Accumulated undistributed net realized gain (loss) on investments, futures contracts, options contracts,
securities sold short and foreign exchange transactions................................................ 11,728,628
Unrealized appreciation (depreciation) on investments................................................... 18,809,027
Unrealized foreign exchange gain (loss) on other assets and liabilities................................. 634
Unrealized appreciation (depreciation) on securities sold short......................................... --
Accrued capital gains tax on unrealized appreciation (depreciation)..................................... --
------------
Net Assets............................................................................................ $230,173,926
============
*Cost
Long-term investment securities (unaffiliated)........................................................ $205,907,979
============
Short-term investment securities (unaffiliated)....................................................... $ --
============
Foreign cash.......................................................................................... $ --
============
#Proceeds from securities sold short.................................................................... $ --
============
Tax Managed
Equity
Fund
------------
ASSETS:
Long-term investment securities, at value (unaffiliated)*............................................... $ 53,851,037
Short-term investment securities, at value (unaffiliated)*.............................................. --
Repurchase agreements (cost equals market value)........................................................ 1,005,000
------------
Total investments..................................................................................... 54,856,037
------------
Cash.................................................................................................... 847
Foreign cash*........................................................................................... 32,567
Receivable for:
Fund shares sold...................................................................................... 30,645
Dividends and interest................................................................................ 46,879
Investments sold...................................................................................... 1,425,477
Prepaid expenses and other assets....................................................................... 64,834
Due from investment adviser for expense reimbursements/fee waivers...................................... 57,472
------------
Total assets............................................................................................ 56,514,758
------------
LIABILITIES:
Payable for:
Fund shares redeemed.................................................................................. 31,119
Investments purchased................................................................................. 1,427,804
Investment advisory and management fees............................................................... 39,615
Distribution and service maintenance fees............................................................. 34,643
Transfer agent fees and expenses...................................................................... 14,589
Trustees' fees and expenses........................................................................... 10,916
Other accrued expenses................................................................................ 95,316
Interest on securities sold short..................................................................... --
Line of credit........................................................................................ --
Due to custodian for foreign cash....................................................................... --
Securities sold short, at value#........................................................................ --
------------
Total liabilities....................................................................................... 1,654,002
------------
Net Assets.............................................................................................. $ 54,860,756
============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value........................................................... $ 39,312
Paid-in capital......................................................................................... 76,142,227
------------
76,181,539
Accumulated undistributed net investment income (loss).................................................. (235,689)
Accumulated undistributed net realized gain (loss) on investments, futures contracts, options contracts,
securities sold short and foreign exchange transactions................................................ (24,285,008)
Unrealized appreciation (depreciation) on investments................................................... 3,198,444
Unrealized foreign exchange gain (loss) on other assets and liabilities................................. 1,470
Unrealized appreciation (depreciation) on securities sold short......................................... --
Accrued capital gains tax on unrealized appreciation (depreciation)..................................... --
------------
Net Assets............................................................................................ $ 54,860,756
============
*Cost
Long-term investment securities (unaffiliated)........................................................ $ 50,652,593
============
Short-term investment securities (unaffiliated)....................................................... $ --
============
Foreign cash.......................................................................................... $ 31,121
============
#Proceeds from securities sold short.................................................................... $ --
============
International
Small-Cap
Fund
-------------
ASSETS:
Long-term investment securities, at value (unaffiliated)*............................................... $30,969,659
Short-term investment securities, at value (unaffiliated)*.............................................. 809,000
Repurchase agreements (cost equals market value)........................................................ --
-----------
Total investments..................................................................................... 31,778,659
-----------
Cash.................................................................................................... 839
Foreign cash*........................................................................................... 394,044
Receivable for:
Fund shares sold...................................................................................... 74,974
Dividends and interest................................................................................ 48,820
Investments sold...................................................................................... 445,568
Prepaid expenses and other assets....................................................................... 3,300
Due from investment adviser for expense reimbursements/fee waivers...................................... 17,629
-----------
Total assets............................................................................................ 32,763,833
-----------
LIABILITIES:
Payable for:
Fund shares redeemed.................................................................................. 22,165
Investments purchased................................................................................. 520,684
Investment advisory and management fees............................................................... 30,008
Distribution and service maintenance fees............................................................. 11,551
Transfer agent fees and expenses...................................................................... 7,196
Trustees' fees and expenses........................................................................... 291
Other accrued expenses................................................................................ 95,949
Interest on securities sold short..................................................................... --
Line of credit........................................................................................ --
Due to custodian for foreign cash....................................................................... --
Securities sold short, at value#........................................................................ --
-----------
Total liabilities....................................................................................... 687,844
-----------
Net Assets.............................................................................................. $32,075,989
===========
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value........................................................... $ 24,284
Paid-in capital......................................................................................... 29,582,793
-----------
29,607,077
Accumulated undistributed net investment income (loss).................................................. (158,297)
Accumulated undistributed net realized gain (loss) on investments, futures contracts, options contracts,
securities sold short and foreign exchange transactions................................................ (952,256)
Unrealized appreciation (depreciation) on investments................................................... 3,579,877
Unrealized foreign exchange gain (loss) on other assets and liabilities................................. (412)
Unrealized appreciation (depreciation) on securities sold short......................................... --
Accrued capital gains tax on unrealized appreciation (depreciation)..................................... --
-----------
Net Assets............................................................................................ $32,075,989
===========
*Cost
Long-term investment securities (unaffiliated)........................................................ $27,389,782
===========
Short-term investment securities (unaffiliated)....................................................... $ 809,000
===========
Foreign cash.......................................................................................... $ 393,845
===========
#Proceeds from securities sold short.................................................................... $ --
===========
See Notes to Financial Statements
8
SunAmerica Equity Funds
STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2007 -- (unaudited)
(continued)
International Tax Managed International
Equity Value Equity Small-Cap
Fund Fund Fund Fund
------------- ------------ ----------- -------------
Class A (unlimited shares authorized):
Net assets.................................................. $68,720,293 $124,810,964 $22,039,223 $27,488,161
Shares of beneficial interest issued and outstanding........ 3,880,688 7,015,412 1,539,417 2,079,383
Net asset value and redemption price per share.............. $ 17.71 $ 17.79 $ 14.32 $ 13.22
Maximum sales charge (5.75% of offering price).............. 1.08 1.09 0.87 0.81
----------- ------------ ----------- -----------
Maximum offering price to public............................ $ 18.79 $ 18.88 $ 15.19 $ 14.03
=========== ============ =========== ===========
Class B (unlimited shares authorized):
Net assets.................................................. $21,121,173 $ 43,509,555 $ 6,542,963 $ 880,108
Shares of beneficial interest issued and outstanding........ 1,276,270 2,581,619 477,172 66,936
Net asset value, offering and redemption price per share
(excluding any applicable contingent deferred sales charge) $ 16.55 $ 16.85 $ 13.71 $ 13.15
=========== ============ =========== ===========
Class C (unlimited shares authorized):
Net assets.................................................. $23,945,384 $ 32,044,588 $26,278,570 $ 3,707,720
Shares of beneficial interest issued and outstanding........ 1,448,454 1,901,689 1,914,656 282,084
Net asset value, offering and redemption price per share
(excluding any applicable contingent deferred sales charge) $ 16.53 $ 16.85 $ 13.72 $ 13.14
=========== ============ =========== ===========
Class I (unlimited shares authorized):
Net assets.................................................. $ 9,206,856 $ 33,055 $ -- $ --
Shares of beneficial interest issued and outstanding........ 515,878 1,860 -- --
Net asset value, offering and redemption price per share.... $ 17.85 $ 17.77 $ -- $ --
=========== ============ =========== ===========
Class Z (unlimited shares authorized):
Net assets.................................................. $ -- $ 29,775,764 $ -- $ --
Shares of beneficial interest issued and outstanding........ -- 1,608,681 -- --
Net asset value, offering and redemption price per share.... $ -- $ 18.51 $ -- $ --
=========== ============ =========== ===========
See Notes to Financial Statements
9
SunAmerica Equity Funds
STATEMENT OF OPERATIONS -- For the period ended March 31, 2007 --
(unaudited)
Blue Chip Growth New Growth and
Growth Opportunities Century Income
Fund Fund Fund Fund
---------- ------------- ----------- ----------
INVESTMENT INCOME:
Dividends (unaffiliated)................ $ 447,135 $ 121,590 $ 354,400 $1,066,929
Interest (unaffiliated)................. 38,569 204,878 350,461 58,472
---------- ----------- ----------- ----------
Total investment income*.............. 485,704 326,468 704,861 1,125,401
---------- ----------- ----------- ----------
EXPENSES:
Investment advisory and management fees. 265,287 264,840 337,311 430,668
Distribution and service maintenance
fees
Class A............................... 85,335 68,155 139,871 110,187
Class B............................... 85,251 108,811 39,464 127,317
Class C............................... 21,489 48,217 10,652 130,544
Service fees Class I.................... 791 341 -- 386
Transfer agent fees and expenses
Class A............................... 65,205 53,664 103,636 85,922
Class B............................... 26,990 32,250 11,568 35,262
Class C............................... 6,664 14,141 3,443 34,415
Class I............................... 314 369 -- --
Registration fees
Class A............................... 10,695 13,198 17,013 10,520
Class B............................... 10,368 6,867 8,877 8,272
Class C............................... 7,200 7,429 9,342 9,843
Class I............................... 6,968 6,759 -- 6,851
Class Z............................... -- -- -- --
Custodian and accounting fees........... 26,584 32,637 31,512 25,877
Reports to shareholders................. 18,266 5,949 19,141 17,269
Audit and tax fees...................... 15,856 18,863 13,264 15,863
Legal fees.............................. 6,417 6,206 6,797 6,565
Trustees' fees and expenses............. 2,506 2,533 3,093 3,895
Interest expense........................ 56 -- -- 710
Other expenses.......................... 7,423 7,041 7,274 8,585
---------- ----------- ----------- ----------
Total expenses before fee waivers,
expense reimbursements, expense
recoupments, custody credits and
fees paid indirectly................. 669,665 698,270 762,258 1,068,951
Net (fees waived and expenses
reimbursed)/recouped by investment
adviser (Note 4)..................... (13,997) (10,533) (10,473) (21,249)
Custody credits earned on cash
balances............................. (117) (622) (990) (22)
Fees paid indirectly (Note 5)......... (5,500) (13,795) (8,635) (7,805)
---------- ----------- ----------- ----------
Net expenses.......................... 650,051 673,320 742,160 1,039,875
---------- ----------- ----------- ----------
Net investment income (loss)............. (164,347) (346,852) (37,299) 85,526
---------- ----------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments
(unaffiliated)**........................ 2,263,355 10,581,797 13,292,608 6,706,797
Net realized foreign exchange gain
(loss) on other assets and liabilities.. -- -- (193) --
Net realized gain (loss) on securities
sold short.............................. -- -- -- --
---------- ----------- ----------- ----------
Net realized gain (loss) on investments
and foreign currencies.................. 2,263,355 10,581,797 13,292,415 6,706,797
---------- ----------- ----------- ----------
Change in unrealized appreciation
(depreciation) on investments
(unaffiliated).......................... 1,762,901 (301,914) (224,143) 207,795
Change in unrealized foreign exchange
gain (loss) on other assets and
liabilities............................. 97 -- 511 237
Change in unrealized appreciation
(depreciation) on securities sold short. -- -- -- --
Change in accrued capital gains tax on
unrealized appreciation (depreciation).. -- -- -- --
---------- ----------- ----------- ----------
Net unrealized gain (loss) on
investments and foreign currencies...... 1,762,998 (301,914) (223,632) 208,032
---------- ----------- ----------- ----------
Net realized and unrealized gain (loss)
on investments and foreign currencies... 4,026,353 10,279,883 13,068,783 6,914,829
---------- ----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............... $3,862,006 $ 9,933,031 $13,031,484 $7,000,355
========== =========== =========== ==========
- --------
*Net of foreign withholding taxes on
interest and dividends of............... $ 2,681 $ -- $ 9,200 $ 6,234
========== =========== =========== ==========
**Net of foreign withholding taxes on
capital gains of........................ $ -- $ -- $ -- $ --
========== =========== =========== ==========
See Notes to Financial Statements
10
SunAmerica Equity Funds
STATEMENT OF OPERATIONS -- For the period ended March 31, 2007 --
(unaudited) (continued)
Balanced International
Assets Equity Value
Fund Fund Fund
---------- ------------- -----------
INVESTMENT INCOME:
Dividends (unaffiliated)............................................................ $ 967,307 $ 706,035 $ 2,766,707
Interest (unaffiliated)............................................................. 1,920,417 11,892 212,097
---------- ----------- -----------
Total investment income*........................................................... 2,887,724 717,927 2,978,804
---------- ----------- -----------
EXPENSES:
Investment advisory and management fees............................................. 605,069 602,003 1,169,883
Distribution and service maintenance fees
Class A............................................................................ 220,734 116,795 219,926
Class B............................................................................ 97,308 108,903 234,947
Class C............................................................................ 75,072 115,164 171,222
Service fees Class I................................................................ 928 11,059 78
Transfer agent fees and expenses
Class A............................................................................ 169,488 86,957 155,545
Class B............................................................................ 27,725 32,247 63,217
Class C............................................................................ 19,183 30,640 41,537
Class I............................................................................ 1,264 9,741 27
Registration fees
Class A............................................................................ 13,444 13,427 13,941
Class B............................................................................ 8,903 8,924 10,123
Class C............................................................................ 7,284 10,297 10,655
Class I............................................................................ 6,903 7,588 7,940
Class Z............................................................................ -- -- 9,159
Custodian and accounting fees....................................................... 74,221 88,928 40,669
Reports to shareholders............................................................. 38,244 20,431 27,905
Audit and tax fees.................................................................. 24,471 16,708 18,514
Legal fees.......................................................................... 9,356 7,813 8,589
Trustees' fees and expenses......................................................... 5,483 4,378 7,994
Interest expense.................................................................... 244 1,049 --
Other expenses...................................................................... 9,956 8,194 11,268
---------- ----------- -----------
Total expenses before fee waivers, expense reimbursements, expense recoupments,
custody credits and fees paid indirectly.......................................... 1,415,280 1,301,246 2,223,139
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4).. (23,821) (15,825) (129,187)
Custody credits earned on cash balances............................................ (280) (396) (38)
Fees paid indirectly (Note 5)...................................................... (7,481) -- (11,588)
---------- ----------- -----------
Net expenses....................................................................... 1,383,698 1,285,025 2,082,326
---------- ----------- -----------
Net investment income (loss).......................................................... 1,504,026 (567,098) 896,478
---------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)**.............................. 5,326,584 8,945,313 14,960,547
Net realized foreign exchange gain (loss) on other assets and liabilities............. (10) 33,135 --
Net realized gain (loss) on securities sold short..................................... 10,759 -- --
---------- ----------- -----------
Net realized gain (loss) on investments and foreign currencies........................ 5,337,333 8,978,448 14,960,547
---------- ----------- -----------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)........ 1,034,821 4,771,582 (1,069,928)
Change in unrealized foreign exchange gain (loss) on other assets and liabilities..... 199 8,106 634
Change in unrealized appreciation (depreciation) on securities sold short............. 467 -- --
Change in accrued capital gains tax on unrealized appreciation (depreciation)......... -- -- --
---------- ----------- -----------
Net unrealized gain (loss) on investments and foreign currencies...................... 1,035,487 4,779,688 (1,069,294)
---------- ----------- -----------
Net realized and unrealized gain (loss) on investments and foreign currencies......... 6,372,820 13,758,136 13,891,253
---------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $7,876,846 $13,191,038 $14,787,731
========== =========== ===========
- --------
*Net of foreign withholding taxes on interest and dividends of........................ $ 5,563 $ 41,376 $ 14,686
========== =========== ===========
**Net of foreign withholding taxes on capital gains of................................ $ -- $ 6 $ --
========== =========== ===========
See Notes to Financial Statements
11
SunAmerica Equity Funds
STATEMENT OF OPERATIONS -- For the period ended March 31, 2007 --
(unaudited) (continued)
Tax Managed International
Equity Small-Cap
Fund Fund
----------- -------------
INVESTMENT INCOME:
Dividends (unaffiliated)............................................................ $ 267,929 $ 120,254
Interest (unaffiliated)............................................................. 32,542 4,669
---------- ----------
Total investment income*........................................................... 300,471 124,923
---------- ----------
EXPENSES:
Investment advisory and management fees............................................. 243,558 163,497
Distribution and service maintenance fees
Class A............................................................................ 38,588 42,710
Class B............................................................................ 41,147 3,371
Class C............................................................................ 135,141 16,773
Service fees Class I................................................................ -- --
Transfer agent fees and expenses
Class A............................................................................ 28,414 27,038
Class B............................................................................ 11,123 300
Class C............................................................................ 33,107 3,560
Class I............................................................................ -- --
Registration fees
Class A............................................................................ 18,082 11,502
Class B............................................................................ 11,608 11,398
Class C............................................................................ 16,779 11,779
Class I............................................................................ -- --
Class Z............................................................................ -- --
Custodian and accounting fees....................................................... 26,158 58,059
Reports to shareholders............................................................. 2,702 702
Audit and tax fees.................................................................. 21,634 19,446
Legal fees.......................................................................... 6,293 7,046
Trustees' fees and expenses......................................................... 2,371 500
Interest expense.................................................................... 10,923 --
Other expenses...................................................................... 12,496 4,640
---------- ----------
Total expenses before fee waivers, expense reimbursements, expense recoupments,
custody credits and fees paid indirectly.......................................... 660,124 382,321
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4).. (128,867) (98,946)
Custody credits earned on cash balances............................................ (1,188) (155)
Fees paid indirectly (Note 5)...................................................... (56,488) --
---------- ----------
Net expenses....................................................................... 473,581 283,220
---------- ----------
Net investment income (loss).......................................................... (173,110) (158,297)
---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)**.............................. 4,985,431 254,231
Net realized foreign exchange gain (loss) on other assets and liabilities............. 5,370 1,096
Net realized gain (loss) on securities sold short..................................... -- --
---------- ----------
Net realized gain (loss) on investments and foreign currencies........................ 4,990,801 255,327
---------- ----------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)........ 226,434 4,946,110
Change in unrealized foreign exchange gain (loss) on other assets and liabilities..... 165 2,687
Change in unrealized appreciation (depreciation) on securities sold short............. -- --
Change in accrued capital gains tax on unrealized appreciation (depreciation)......... -- 149
---------- ----------
Net unrealized gain (loss) on investments and foreign currencies...................... 226,599 4,948,946
---------- ----------
Net realized and unrealized gain (loss) on investments and foreign currencies......... 5,217,400 5,204,273
---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $5,044,290 $5,045,976
========== ==========
- --------
*Net of foreign withholding taxes on interest and dividends of........................ $ 2,985 $ 8,315
========== ==========
**Net of foreign withholding taxes on capital gains of................................ $ -- $ 641
========== ==========
See Notes to Financial Statements
12
SunAmerica Equity Funds
STATEMENT OF CHANGES IN NET ASSETS
Blue Chip Growth Fund Growth Opportunities Fund
------------------------- -------------------------
For the For the
six months six months
ended For the year ended For the year
March 31, ended March 31, ended
2007 September 30, 2007 September 30,
(unaudited) 2006 (unaudited) 2006
----------- ------------- ----------- -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)..................... $ (164,347) $ (532,478) $ (346,852) $ (791,253)
Net realized gain (loss) on investments and
foreign currencies............................. 2,263,355 5,198,168 10,581,797 13,948,650
Net unrealized gain (loss) on investments and
foreign currencies............................. 1,762,998 (2,357,467) (301,914) (9,975,076)
----------- ------------ ----------- ------------
Net increase (decrease) in net assets resulting
from operations.................................. 3,862,006 2,308,223 9,933,031 3,182,321
----------- ------------ ----------- ------------
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 8)......... (8,352,052) (16,165,295) (8,972,470) (20,760,692)
----------- ------------ ----------- ------------
Total increase (decrease) in net assets........... (4,490,046) (13,857,072) 960,561 (17,578,371)
NET ASSETS:
Beginning of period............................... 72,188,011 86,045,083 68,584,481 86,162,852
----------- ------------ ----------- ------------
End of period+.................................... $67,697,965 $ 72,188,011 $69,545,042 $ 68,584,481
=========== ============ =========== ============
- --------
+Includes accumulated undistributed net
investment income (loss)......................... $ (193,770) $ (29,423) $ (372,249) $ (25,937)
=========== ============ =========== ============
See Notes to Financial Statements
13
SunAmerica Equity Funds
STATEMENT OF CHANGES IN NET ASSETS -- (continued)
New Century Fund
--------------------------
For the
six months
ended For the year
March 31, ended
2007 September 30,
(unaudited) 2006
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ (37,299) $ (439,624)
Net realized gain (loss) on investments and foreign currencies........................ 13,292,415 11,815,681
Net unrealized gain (loss) on investments and foreign currencies...................... (223,632) (8,389,295)
------------ ------------
Net increase (decrease) in net assets resulting from operations......................... 13,031,484 2,986,762
------------ ------------
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 8) 12,618,473 (17,643,382)
------------ ------------
Total increase (decrease) in net assets................................................. 25,649,957 (14,656,620)
NET ASSETS:
Beginning of period..................................................................... 84,965,463 99,622,083
============ ============
End of period+.......................................................................... $110,615,420 $ 84,965,463
============ ============
- --------
+Includes accumulated undistributed net investment income (loss)........................ $ (84,412) $ (47,113)
============ ============
Growth and Income Fund
--------------------------
For the
six months
ended For the year
March 31, ended
2007 September 30,
(unaudited) 2006
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ 85,526 $ (32,741)
Net realized gain (loss) on investments and foreign currencies........................ 6,706,797 14,027,002
Net unrealized gain (loss) on investments and foreign currencies...................... 208,032 (4,359,123)
------------ ------------
Net increase (decrease) in net assets resulting from operations......................... 7,000,355 9,635,138
------------ ------------
Distributions to shareholders from:
Net investment income (Class A)....................................................... -- (99,245)
Net investment income (Class B)....................................................... -- --
Net investment income (Class C)....................................................... -- --
Net investment income (Class I)....................................................... -- (2,121)
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..................................................... -- (101,366)
------------ ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 8) (12,721,967) (38,443,036)
------------ ------------
Total increase (decrease) in net assets................................................. (5,721,612) (28,909,264)
NET ASSETS:
Beginning of period..................................................................... 116,081,690 144,990,954
============ ============
End of period+.......................................................................... $110,360,078 $116,081,690
============ ============
- --------
+Includes accumulated undistributed net investment income (loss)........................ $ 46,845 $ (38,681)
============ ============
See Notes to Financial Statements
14
SunAmerica Equity Funds
STATEMENT OF CHANGES IN NET ASSETS -- (continued)
Balanced Assets Fund International Equity Fund
-------------------------- --------------------------
For the For the
six months six months
ended For the year ended For the year
March 31, ended March 31, ended
2007 September 30, 2007 September 30,
(unaudited) 2006 (unaudited) 2006
------------ ------------- ------------ -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)............................... $ 1,504,026 $ 2,524,412 $ (567,098) $ (372,437)
Net realized gain (loss) on investments and foreign
currencies............................................... 5,337,333 5,408,614 8,978,448 22,221,354
Net unrealized gain (loss) on investments and foreign
currencies............................................... 1,035,487 1,638,175 4,779,688 (2,823,314)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting from
operations................................................. 7,876,846 9,571,201 13,191,038 19,025,603
------------ ------------ ------------ ------------
Distributions to shareholders from:
Net investment income (Class A)............................ (1,034,446) (2,367,072) -- --
Net investment income (Class B)............................ (71,511) (256,828) -- --
Net investment income (Class C)............................ (57,121) (176,512) -- --
Net investment income (Class I)............................ (6,754) (15,164) -- --
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......................... (1,169,832) (2,815,576) -- --
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting from
capital share transactions (Note 8)........................ (14,402,755) (35,679,423) (4,754,564) 8,501,813
------------ ------------ ------------ ------------
Total increase (decrease) in net assets..................... (7,695,741) (28,923,798) 8,436,474 27,527,416
NET ASSETS:
Beginning of period......................................... 163,694,649 192,618,447 114,557,232 87,029,816
------------ ------------ ------------ ------------
End of period+.............................................. $155,998,908 $163,694,649 $122,993,706 $114,557,232
============ ============ ============ ============
- --------
+Includes accumulated undistributed net investment income
(loss)..................................................... $ 245,300 $ (88,894) $ (683,237) $ (116,139)
============ ============ ============ ============
See Notes to Financial Statements
15
SunAmerica Equity Funds
STATEMENT OF CHANGES IN NET ASSETS -- (continued)
Value Fund
--------------------------
For the
six months
ended For the year
March 31, ended
2007 September 30,
(unaudited) 2006
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ 896,478 $ 1,551,527
Net realized gain (loss) on investments and foreign currencies........................ 14,960,547 22,506,011
Net unrealized gain (loss) on investments and foreign currencies...................... (1,069,294) 1,434,818
------------ ------------
Net increase (decrease) in net assets resulting from operations......................... 14,787,731 25,492,356
------------ ------------
Distributions to shareholders from:
Net investment income (Class A)....................................................... (1,037,323) (937,019)
Net investment income (Class B)....................................................... (138,581) (80,387)
Net investment income (Class C)....................................................... (102,287) (58,523)
Net investment income (Class I)....................................................... (285) (27,586)
Net investment income (Class Z)....................................................... (294,735) (189,399)
Net realized gain on securities (Class A)............................................. (13,182,325) (8,311,112)
Net realized gain on securities (Class B)............................................. (5,278,693) (3,719,250)
Net realized gain on securities (Class C)............................................. (3,896,204) (2,707,693)
Net realized gain on securities (Class I)............................................. (3,186) (214,316)
Net realized gain on securities (Class Z)............................................. (2,693,654) (1,144,085)
------------ ------------
Total distributions to shareholders..................................................... (26,627,273) (17,389,370)
------------ ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 8) 16,308,699 (32,363,644)
------------ ------------
Total increase (decrease) in net assets................................................. 4,469,157 (24,260,658)
NET ASSETS:
Beginning of period..................................................................... 225,704,769 249,965,427
------------ ------------
End of period+.......................................................................... $230,173,926 $225,704,769
============ ============
- --------
+Includes accumulated undistributed net investment income (loss)........................ $ 605,550 $ 1,282,283
============ ============
See Notes to Financial Statements
16
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
2007 September 30,
(unaudited) 2006
----------- -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ (173,110) $ (247,089)
Net realized gain (loss) on investments and foreign currencies........................ 4,990,801 2,537,901
Net unrealized gain (loss) on investments and foreign currencies...................... 226,599 950,584
----------- -----------
Net increase (decrease) in net assets resulting from operations......................... 5,044,290 3,241,396
----------- -----------
Distributions to shareholders from:
Net investment income (Class A)....................................................... -- (51,047)
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..................................................... -- (53,956)
----------- -----------
Net increase (decrease) in net assets resulting from capital share transactions (Note 8) (8,962,672) 15,240,310
----------- -----------
Total increase (decrease) in net assets................................................. (3,918,382) 18,427,750
NET ASSETS:
Beginning of period..................................................................... 58,779,138 40,351,388
----------- -----------
End of period+.......................................................................... $54,860,756 $58,779,138
=========== ===========
- --------
+Includes accumulated undistributed net investment income (loss)........................ $ (235,689) $ (62,579)
=========== ===========
International Small-Cap Fund
--------------------------
For the
six months For the period
ended May 2, 2006@
March 31, through
2007 September 30,
(unaudited) 2006
----------- --------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ (158,297) $ (4,779)
Net realized gain (loss) on investments and foreign currencies........................ 255,327 (1,276,207)
Net unrealized gain (loss) on investments and foreign currencies...................... 4,948,946 (1,369,481)
----------- -----------
Net increase (decrease) in net assets resulting from operations......................... 5,045,976 (2,650,467)
----------- -----------
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 8) 1,526,089 28,154,391
----------- -----------
Total increase (decrease) in net assets................................................. 6,572,065 25,503,924
NET ASSETS:
Beginning of period..................................................................... 25,503,924 --
----------- -----------
End of period+.......................................................................... $32,075,989 $25,503,924
=========== ===========
- --------
+Includes accumulated undistributed net investment income (loss)........................ $ (158,297) $ --
=========== ===========
@ Commencement of operations
See Notes to Financial Statements
17
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
- -
09/30/02 $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
09/30/06 15.21 (0.07) 0.55 0.48 -- -- -- 15.69 3.16 49,539
03/31/07(7) 15.69 (0.01) 0.90 0.89 -- -- -- 16.58 5.67 47,460
Class B
- -
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
09/30/06 13.61 (0.17) 0.50 0.33 -- -- -- 13.94 2.42 17,479
03/31/07(7) 13.94 (0.07) 0.79 0.72 -- -- -- 14.66 5.17 15,568
Class C+
- -
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
09/30/06 13.53 (0.17) 0.50 0.33 -- -- -- 13.86 2.44 4,528
03/31/07(7) 13.86 (0.08) 0.78 0.70 -- -- -- 14.56 5.05 4,074
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
09/30/06 15.34 (0.04) 0.57 0.53 -- -- -- 15.87 3.45 642
03/31/07(7) 15.87 0.01 0.91 0.92 -- -- -- 16.79 5.80 596
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets net assets Turnover
- ---------- ------------- ---------
1.47%(6) (0.47)%(6) 107%
1.54 (0.50) 114
1.60 (0.59) 145
1.59 (0.09) 120
1.55(5)(6) (0.45)(5)(6) 154
1.61(4)(5)(6) (0.24)(4)(5)(6) 48
2.18%(6) (1.18)%(6) 107%
2.32 (1.28) 114
2.26 (1.25) 145
2.32 (0.80) 120
2.29(5)(6) (1.20)(5)(6) 154
2.39(4)(5)(6) (1.02)(4)(5)(6) 48
2.23%(6) (1.25)%(6) 107%
2.44 (1.40) 114
2.37 (1.37) 145
2.49 (0.98) 120
2.30(5)(6) (1.21)(5)(6) 154
2.59(4)(5)(6) (1.22)(4)(5)(6) 48
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(5)(6) (0.22)(5)(6) 154
1.31(4)(5)(6) 0.06(4)(5)(6) 48
- --------
(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):
09/30/02 09/30/03 09/30/04 09/30/05 09/30/06 03/31/07(4)
-------- -------- -------- -------- -------- -----------
Blue Chip Growth Class A. -- % -- % -- % -- % 0.05% 0.02%
Blue Chip Growth Class B. -- -- -- -- 0.05 0.02
Blue Chip Growth Class C+ -- -- -- -- 0.05 0.02
Blue Chip Growth Class I. 0.08(4) 0.33 0.13 0.49 1.15 2.42
(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 and the ratio of net investment income to
average net assets would have been higher by:
09/30/02 09/30/06 03/31/07(4)
-------- -------- -----------
Blue Chip Growth Class A. 0.01% 0.01% 0.02%
Blue Chip Growth Class B. 0.01 0.01 0.02
Blue Chip Growth Class C+ 0.01 0.01 0.02
Blue Chip Growth Class I. 0.01 0.01 0.02
(7)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)
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
- -
09/30/02 $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
09/30/06 16.27 (0.12) 0.89 0.77 -- -- -- 17.04 4.73 37,382
03/31/07(8) 17.04 (0.06) 2.67 2.61 -- -- -- 19.65 15.32 39,000
Class B
- -
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
09/30/06 14.52 (0.21) 0.79 0.58 -- -- -- 15.10 3.99 21,500
03/31/07(8) 15.10 (0.11) 2.37 2.26 -- -- -- 17.36 14.97 20,578
Class C+
- -
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
09/30/06 14.50 (0.21) 0.79 0.58 -- -- -- 15.08 4.00 9,281
03/31/07(8) 15.08 (0.12) 2.36 2.24 -- -- -- 17.32 14.85 9,824
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
09/30/06 16.44 (0.06) 0.88 0.82 -- -- -- 17.26 4.99 422
03/31/07(8) 17.26 (0.02) 2.73 2.71 -- -- -- 19.97 15.70 143
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets net assets Turnover
- ---------- ------------- ---------
1.49%(6) (1.11)%(6) 344%
1.63 (1.11) 204
1.58 (1.09) 170
1.65 (1.15) 86
1.59(5)(6) (0.76)(5)(6) 278
1.64(4)(5)(6) (0.72)(4)(5)(6) 187
2.18%(6) (1.80)%(6) 344%
2.36 (1.85) 204
2.27 (1.78) 170
2.32 (1.82) 86
2.30(5)(6) (1.46)(5)(6) 278
2.31(4)(5)(6) (1.38)(4)(5)(6) 187
2.21%(6) (1.82)%(6) 344%
2.33 (1.82) 204
2.29 (1.80) 170
2.39 (1.89) 86
2.28(5)(6) (1.44)(5)(6) 278
2.39(4)(5)(6) (1.47)(4)(5)(6) 187
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(5)(6) (0.35)(5)(6) 278
1.32(4)(5)(6) (0.21)(4)(5)(6) 187
- --------
(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):
09/30/02 09/30/03 09/30/04 09/30/05 09/30/06 03/31/07(4)
-------- -------- -------- -------- -------- -----------
Growth Opportunities Class A. -- % -- % -- % -- % 0.05% 0.01%
Growth Opportunities Class B. -- -- -- -- 0.05 0.01
Growth Opportunities Class C+ -- -- -- -- 0.05 0.01
Growth Opportunities Class I. 0.18(4) 0.50 0.18 0.49 1.59 5.11
(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 and the ratio of net investment income to
average net assets would have been higher by:
09/30/02 09/30/06 03/31/07(4)
-------- -------- -----------
Growth Opportunities Class A. 0.00% 0.04% 0.04%
Growth Opportunities Class B. 0.00 0.04 0.04
Growth Opportunities Class C+ 0.00 0.04 0.04
Growth Opportunities Class I. 0.00 0.03 0.04
(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
19
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
- -
09/30/02 $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
09/30/06 18.00 (0.07) 0.67 0.60 -- -- -- 18.60 3.33 75,682 1.55(4)
03/31/07(5) 18.60 0.01 2.76 2.77 -- -- -- 21.37 14.89 90,360 1.58(4)(6)
Class B
- -
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
09/30/06 15.88 (0.19) 0.60 0.41 -- -- -- 16.29 2.58 7,528 2.29(4)
03/31/07(5) 16.29 (0.06) 2.41 2.35 -- -- -- 18.64 14.43 13,598 2.44(4)(6)
Class C+
- -
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)
09/30/06 15.94 (0.16) 0.59 0.43 -- -- -- 16.37 2.70 1,756 2.14(3)(4)
03/31/07(5) 16.37 (0.04) 2.42 2.38 -- -- -- 18.75 14.54 6,657 2.14(3)(4)(6)
Ratio
of net
investment
income (loss)
to average Portfolio
net assets Turnover
- ------------- ---------
(0.92)% 199%
(1.08) 123
(1.20) 110
(0.89) 80
(0.39)(4) 235
(0.02)(4)(6) 186
(1.60)% 199%
(1.77) 123
(1.91) 110
(1.64) 80
(1.14)(4) 235
(0.86)(4)(6) 186
(1.56)%(3) 199%
(1.63)(3) 123
(1.73)(3) 110
(1.45)(3) 80
(0.98)(3)(4) 235
(0.52)(3)(4)(6) 186
- --------
(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):
09/30/02 09/30/03 09/30/04 09/30/05 09/30/06 03/31/07(6)
-------- -------- -------- -------- -------- -----------
New Century Class C+ 0.27% 0.66% 0.48% 0.66% 0.44% 0.99%
(4)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 and the ratio of net investment income to
average net assets would have been higher by:
09/30/06 03/31/07(6)
-------- -----------
New Century Class A 0.01% 0.02%
New Century Class B 0.01 0.02
New Century Class C 0.01 0.02
(5)Unaudited
(6)Annualized
+ 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)
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
- -
09/30/02 $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
09/30/06 12.40 0.04 1.01 1.05 (0.02) -- (0.02) 13.43 8.47 61,872
03/31/07(7) 13.43 0.03 0.82 0.85 -- -- -- 14.28 6.33 62,972
Class B
- -
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
09/30/06 11.74 (0.05) 0.96 0.91 -- -- -- 12.65 7.75 27,100
03/31/07(7) 12.65 (0.02) 0.77 0.75 -- -- -- 13.40 5.93 22,399
Class C+
- -
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
09/30/06 11.72 (0.04) 0.95 0.91 -- -- -- 12.63 7.76 26,821
03/31/07(7) 12.63 (0.02) 0.78 0.76 -- -- -- 13.39 6.02 24,678
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
09/30/06 12.43 0.07 1.01 1.08 (0.04) -- (0.04) 13.47 8.69 288
03/31/07(7) 13.47 0.05 0.82 0.87 -- -- -- 14.34 6.46 311
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets net assets Turnover
- ---------- ------------- ---------
1.50%(6) (0.01)%(6) 118%
1.50 0.06 123
1.50 0.01 139
1.55 0.78 79
1.54(5)(6) 0.31(5)(6) 152
1.52(4)(5)(6) 0.44(4)(5)(6) 84
2.13%(6) (0.66)%(6) 118%
2.16 (0.59) 123
2.17 (0.67) 139
2.20 0.16 79
2.22(5)(6) (0.39)(5)(6) 152
2.20(4)(5)(6) (0.25)(4)(5)(6) 84
2.17%(6) (0.68)%(6) 118%
2.16 (0.60) 123
2.14 (0.64) 139
2.18 0.17 79
2.19(5)(6) (0.36)(5)(6) 152
2.20(4)(5)(6) (0.24)(4)(5)(6) 84
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(5)(6) 0.48(5)(6) 152
1.30(4)(5)(6) 0.67(4)(5)(6) 84
- --------
(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):
09/30/02 09/30/03 09/30/04 09/30/05 09/30/06 03/31/07(4)
-------- -------- -------- -------- -------- -----------
Growth and Income Class A. -- % -- % -- % -- 0.00% 0.03%
Growth and Income Class B. -- -- -- -- 0.00 0.02
Growth and Income Class C+ -- -- -- -- 0.00 0.03
Growth and Income Class I. 0.12(4) 0.37 0.14 0.96 2.23 4.06
(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 and the ratio of net investment income to
average net assets would have been higher by:
09/30/02 09/30/06 03/31/07(4)
-------- -------- -----------
Growth and Income Class A. 0.02% 0.01% 0.01%
Growth and Income Class B. 0.02 0.01 0.01
Growth and Income Class C+ 0.02 0.01 0.01
Growth and Income Class I. 0.02 0.01 0.01
(7)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)
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
- -
09/30/02(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
09/30/06 13.72 0.22 0.58 0.80 (0.25) -- (0.25) 14.27 5.90 127,313
03/31/07(8) 14.27 0.13 0.58 0.71 (0.12) -- (0.12) 14.86 5.00 122,961
Class B
- -
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
09/30/06 13.67 0.13 0.58 0.71 (0.15) -- (0.15) 14.23 5.23 20,464
03/31/07(8) 14.23 0.07 0.59 0.66 (0.06) -- (0.06) 14.83 4.62 17,679
Class C+
- -
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
09/30/06 13.69 0.13 0.58 0.71 (0.15) -- (0.15) 14.25 5.22 15,164
03/31/07(8) 14.25 0.08 0.59 0.67 (0.06) -- (0.06) 14.86 4.68 14,649
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
09/30/06 13.73 0.26 0.59 0.85 (0.29) -- (0.29) 14.29 6.24 754
03/31/07(8) 14.29 0.15 0.58 0.73 (0.13) -- (0.13) 14.89 5.17 709
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets net assets Turnover
- ---------- ------------- ---------
1.47%(6) 1.39%(6) 485%
1.49 0.86 409
1.50 0.89 181
1.62 1.56 160
1.52(5)(6) 1.59(5)(6) 154
1.57(4)(5)(6) 1.71(4)(5)(6) 72
2.12%(6) 0.73%(6) 485%
2.16 0.22 409
2.18 0.20 181
2.27 0.91 160
2.20(5)(6) 0.91(5)(6) 154
2.31(4)(5)(6) 0.97(4)(5)(6) 72
2.13%(6) 0.72%(6) 485%
2.15 0.22 409
2.18 0.21 181
2.26 0.92 160
2.18(5)(6) 0.93(5)(6) 154
2.28(4)(5)(6) 1.00(4)(5)(6) 72
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(5)(6) 1.84(5)(6) 154
1.31(4)(5)(6) 1.97(4)(5)(6) 72
- --------
(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):
09/30/02 09/30/03 09/30/04 09/30/05 09/30/06 03/31/07(4)
-------- -------- -------- -------- -------- -----------
Balanced Assets Class A. -- % -- % -- % -- % 0.05% 0.02%
Balanced Assets Class B. -- -- -- -- 0.05 0.02
Balanced Assets Class C+ -- -- -- -- 0.05 0.02
Balanced Assets Class I. 0.19(4) 0.19 0.24 1.47 1.38 2.10
(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 and the ratio of net investment income to
average net assets would have been higher by:
09/30/02 09/30/06 03/31/07(4)
-------- -------- -----------
Balanced Assets Class A. 0.01% 0.00% 0.01%
Balanced Assets Class B. 0.01 0.00 0.01
Balanced Assets Class C+ 0.01 0.00 0.01
Balanced Assets Class I. 0.01 0.00 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
22
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
- -
10/31/01 $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
09/30/06 13.04 (0.01) 2.81 2.80 -- -- -- 15.84 21.47 62,190
03/31/07(9) 15.84 (0.05) 1.92 1.87 -- -- -- 17.71 11.81 68,720
Class B
- -
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
09/30/06 12.31 (0.11) 2.65 2.54 -- -- -- 14.85 20.63 21,240
03/31/07(9) 14.85 (0.10) 1.80 1.70 -- -- -- 16.55 11.45 21,121
Class C+
- -
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
09/30/06 12.29 (0.11) 2.66 2.55 -- -- -- 14.84 20.75 21,646
03/31/07(9) 14.84 (0.10) 1.79 1.69 -- -- -- 16.53 11.39 23,945
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
09/30/06 13.12 0.00 2.84 2.84 -- -- -- 15.96 21.65 9,482
03/31/07(9) 15.96 (0.04) 1.93 1.89 -- -- -- 17.85 11.84 9,207
Ratio
Ratio of of net
expenses investment
to average income (loss)
net to average Portfolio
assets(4) net assets(4) Turnover
- ---------- ------------- ---------
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 (0.09) 152
1.90(3) (0.61)(3) 65
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 (0.80) 152
2.55(3) (1.29)(3) 65
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 (0.76) 152
2.55(3) (1.25)(3) 65
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 (0.01) 152
1.80(3) (0.51)(3) 65
- --------
(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):
10/31/01 09/30/02(3) 09/30/03 09/30/04 09/30/05 09/30/06 3/31/07(3)
-------- ----------- -------- -------- -------- -------- ----------
International Equity Class A. 0.03% 0.08% 0.18% 0.10% 0.09% (0.04)% (0.00)%
International Equity Class B. 0.06 0.14 0.13 0.11 0.17 0.02 0.07
International Equity Class C+ 0.14 0.13 0.28 0.06 0.14 (0.01) 0.05
International Equity Class I. -- 0.11 0.16 0.12 0.14 0.00 0.09
(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
23
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
- -
10/31/01 $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
09/30/06 18.01 0.15 1.89 2.04 (0.13) (1.17) (1.30) 18.75 12.02 121,729
03/31/07(9) 18.75 0.08 1.16 1.24 (0.16) (2.04) (2.20) 17.79 6.63 124,811
Class B
- -
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
09/30/06 17.18 0.04 1.80 1.84 (0.03) (1.17) (1.20) 17.82 11.29 47,100
03/31/07(9) 17.82 0.02 1.10 1.12 (0.05) (2.04) (2.09) 16.85 6.30 43,510
Class C+
- -
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
09/30/06 17.18 0.04 1.80 1.84 (0.03) (1.17) (1.20) 17.82 11.30 33,849
03/31/07(9) 17.82 0.02 1.10 1.12 (0.05) (2.04) (2.09) 16.85 6.30 32,045
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
09/30/06 18.00 0.16 1.91 2.07 (0.15) (1.17) (1.32) 18.75 12.20 174
03/31/07(9) 18.75 0.10 1.14 1.24 (0.18) (2.04) (2.22) 17.77 6.64 33
Class Z
- -
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
09/30/06 18.58 0.26 1.95 2.21 (0.19) (1.17) (1.36) 19.43 12.64 22,853
03/31/07(9) 19.43 0.14 1.20 1.34 (0.22) (2.04) (2.26) 18.51 6.95 29,776
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets(4) net assets(4) Turnover
- ------------- ------------- ---------
1.78%(5) 0.68%(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(7) 0.88(7) 140
1.63(3)(7) 0.94(3)(7) 73
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(7) 0.23(7) 140
2.28(3)(7) 0.28(3)(7) 73
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(7) 0.23(7) 140
2.28(3)(7) 0.28(3)(7) 73
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(7) 0.90(7) 140
1.53(3)(7) 1.04(3)(7) 73
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(7) 1.45(7) 140
1.06(3)(7) 1.51(3)(7) 73
- --------
(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):
10/31/01 10/31/02 10/31/03 09/30/04(3) 09/30/05 09/30/06 03/31/07(3)
-------- -------- -------- ----------- -------- -------- -----------
Value Class A. 0.00% 0.01% (0.01)% 0.04% 0.08% 0.08% 0.09%
Value Class B. -- (0.02) (0.01) 0.02 0.14 0.10 0.13
Value Class C+ 0.05 0.03 0.02 0.06 0.08 0.08 0.12
Value Class I. -- 0.19(3) -- 0.10 0.25 0.30 25.82
Value Class Z. 6.55 5.52 1.00 0.16 0.10 0.07 0.10
(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 and the ratio of net investment income to
average net assets would have been higher by:
10/31/03 09/30/06 03/31/07(3)
-------- -------- -----------
Value Class A. 0.01% 0.01% 0.01%
Value Class B. 0.01 0.01 0.01
Value Class C+ 0.01 0.01 0.01
Value Class I. 0.01 0.01 0.01
Value Class Z. 0.00 0.01 0.01
(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
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
- -
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(3) 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
09/30/06 11.83 (0.01) 1.34 1.33 (0.06) -- (0.06) 13.10 11.25 22,554
03/31/07(8) 13.10 (0.01) 1.23 1.22 -- -- -- 14.32 9.31 22,039
Class B
- -
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(3) 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
09/30/06 11.39 (0.10) 1.29 1.19 0.00 -- 0.00 12.58 10.46 9,299
03/31/07(8) 12.58 (0.06) 1.19 1.13 -- -- -- 13.71 8.98 6,543
Class C+
- -
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(3) 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
09/30/06 11.40 (0.09) 1.29 1.20 0.00 -- 0.00 12.60 10.54 26,927
03/31/07(8) 12.60 (0.06) 1.18 1.12 -- -- -- 13.72 8.89 26,279
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets(5) net assets(5) Turnover
- ------------- ------------- ---------
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(7) (0.02)(7) 999
1.45(4)(7) (0.02)(4)(7) 281
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(7) (0.77)(7) 999
2.10(4)(7) (0.67)(4)(7) 281
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(7) (0.68)(7) 999
2.10(4)(7) (0.67)(4)(7) 281
- --------
(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)The Fund changed its fiscal year end from October 31 to September 30.
(4)Annualized
(5)Net of the following expense reimbursements (based on average net assets):
10/31/01 10/31/02 10/31/03 09/30/04(4) 09/30/05 09/30/06 03/31/07(4)
-------- -------- -------- ----------- -------- -------- -----------
Tax Managed Equity Class A. 0.15% 0.00% 0.26% 0.24% 0.38% 0.31% 0.45%
Tax Managed Equity Class B. 0.15 0.20 0.23 0.25 0.35 0.37 0.58
Tax Managed Equity Class C+ 0.14 0.21 0.23 0.24 0.33 0.30 0.40
(6)The ratio reflects an expense cap which is net of custody credits of less
than (0.01)%.
(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 and the ratio of net investment income to
average net assets would have been higher by:
09/30/06 03/31/07(4)
-------- -----------
Tax Managed Equity Class A 0.04% 0.20%
Tax Managed Equity Class B 0.02 0.21
Tax Managed Equity Class C 0.03 0.19
(8)Unaudited
+ Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
See Notes to Financial Statements
25
SunAmerica Equity Funds
FINANCIAL HIGHLIGHTS -- (continued)
INTERNATIONAL SMALL-CAP 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
05/02/06-09/30/06(3) $12.50 $ 0.00 $(1.45) $(1.45) $-- $-- $-- $11.05 (11.60)% $21,557
03/31/07(6) 11.05 (0.07) 2.24 2.17 -- -- -- 13.22 19.64 27,488
Class B
05/02/06-09/30/06(3) $12.50 $(0.04) $(1.44) $(1.48) $-- $-- $-- $11.02 (11.84)% $ 583
03/31/07(6) 11.02 (0.10) 2.23 2.13 -- -- -- 13.15 19.33 880
Class C
05/02/06-09/30/06(3) $12.50 $(0.04) $(1.44) $(1.48) $-- $-- $-- $11.02 (11.84)% $ 3,363
03/31/07(6) 11.02 (0.11) 2.23 2.12 -- -- -- 13.14 19.24 3,708
Ratio
of net
investment
Ratio of income (loss)
expenses to average
to average net Portfolio
net assets(4)(5) assets(4)(5) Turnover
- ---------------- ------------- ---------
1.90% 0.08% 55%
1.90 (1.17) 38
2.55% (0.93)% 55%
2.55 (1.78) 38
2.55% (1.07)% 55%
2.55 (1.83) 38
- --------
(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):
09/30/06(4) 03/31/07(4)
----------- -----------
International Small-Cap Class A 1.27% 0.55%
International Small-Cap Class B 12.63 3.92
International Small-Cap Class C 2.88 1.18
(6)Unaudited
See Notes to Financial Statements
26
SunAmerica Blue Chip Growth Fund
PORTFOLIO PROFILE -- March 31, 2007 -- (unaudited)
Industry Allocation*
Diversified Manufactured Operations. 6.6%
Computers........................... 4.8
Finance-Investment Banker/Broker.... 4.8
Medical-Biomedical/Gene............. 4.6
Web Portals/ISP..................... 4.2
Retail-Discount..................... 3.6
Repurchase Agreements............... 3.4
Applications Software............... 3.1
Cosmetics & Toiletries.............. 3.1
Electronic Components-Semiconductors 3.1
Electric Products-Misc.............. 2.8
Medical-HMO......................... 2.8
Beverages-Non-alcoholic............. 2.7
Medical Products.................... 2.7
Networking Products................. 2.2
Retail-Drug Store................... 2.1
Finance-Credit Card................. 2.0
Aerospace/Defense................... 1.8
Medical-Drugs....................... 1.8
Wireless Equipment.................. 1.8
Multimedia.......................... 1.7
Oil-Field Services.................. 1.7
Medical Instruments................. 1.6
Aerospace/Defense-Equipment......... 1.4
Pharmacy Services................... 1.3
Cable TV............................ 1.2
Therapeutics........................ 1.2
E-Commerce/Services................. 1.1
Electronic Measurement Instruments.. 1.1
Enterprise Software/Service......... 1.1
Machinery-Construction & Mining..... 1.1
Retail-Building Products............ 1.1
Telecom Equipment-Fiber Optics...... 1.1
Telecom Services.................... 1.1
Agricultural Chemicals.............. 1.0
Banks-Fiduciary..................... 1.0
Cellular Telecom.................... 1.0
Coal................................ 1.0
Computer Aided Design............... 1.0
Electronics-Military................ 1.0
Finance-Consumer Loans.............. 1.0
Industrial Automated/Robotic........ 1.0
Oil Companies-Integrated............ 1.0
Oil Refining & Marketing............ 1.0
Retail-Office Supplies.............. 1.0
Casino Services..................... 0.9
Commercial Services................. 0.9
Entertainment Software.............. 0.9
Machinery-General Industrial........ 0.9
Retail-Regional Department Stores... 0.9
Retail-Consumer Electronics......... 0.7
Beverages-Wine/Spirits.............. 0.5
Insurance-Property/Casualty......... 0.5
Medical-Generic Drugs............... 0.5
Radio............................... 0.5
Retail-Jewelry...................... 0.5
-----
100.5%
=====
- --------
* Calculated as a percentage of Net Assets
27
SunAmerica Blue Chip Growth Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited)
Value
Security Description Shares (Note 3)
---------------------------------------------
COMMON STOCK -- 97.1%
Aerospace/Defense -- 1.8%
Boeing Co................................... 9,300 $ 826,863
Spirit Aerosystems Holdings, Inc., Class A+. 11,700 372,645
----------
1,199,508
----------
Aerospace/Defense-Equipment -- 1.4%
United Technologies Corp.................... 14,700 955,500
----------
Agricultural Chemicals -- 1.0%
Monsanto Co................................. 11,800 648,528
----------
Applications Software -- 3.1%
Microsoft Corp.............................. 76,200 2,123,694
----------
Banks-Fiduciary -- 1.0%
The Bank of New York Co., Inc............... 16,800 681,240
----------
Beverages-Non-alcoholic -- 2.7%
PepsiCo, Inc................................ 28,700 1,824,172
----------
Beverages-Wine/Spirits -- 0.5%
Constellation Brands, Inc., Class A+........ 17,000 360,060
----------
Cable TV -- 1.2%
Comcast Corp., Class A+..................... 31,200 809,640
----------
Casino Services -- 0.9%
International Game Technology............... 15,700 633,966
----------
Cellular Telecom -- 1.0%
NII Holdings, Inc.+......................... 9,600 712,128
----------
Coal -- 1.0%
Peabody Energy Corp......................... 17,300 696,152
----------
Commercial Services -- 0.9%
AerCap Holdings NV+......................... 20,300 590,933
----------
Computer Aided Design -- 1.0%
Autodesk, Inc.+............................. 17,600 661,760
----------
Computers -- 4.8%
Apple Computer, Inc.+....................... 12,400 1,152,084
Hewlett-Packard Co.......................... 19,600 786,744
International Business Machines Corp........ 14,100 1,329,066
----------
3,267,894
----------
Cosmetics & Toiletries -- 3.1%
Procter & Gamble Co......................... 33,000 2,084,280
----------
Diversified Manufactured Operations -- 6.6%
3M Co....................................... 9,200 703,156
Danaher Corp................................ 12,600 900,270
Dover Corp.................................. 15,200 741,912
General Electric Co......................... 60,600 2,142,816
----------
4,488,154
----------
E-Commerce/Services -- 1.1%
eBay, Inc.+................................. 21,900 725,985
----------
Electric Products-Misc. -- 2.8%
AMETEK, Inc................................. 32,000 1,105,280
Emerson Electric Co......................... 17,900 771,311
----------
1,876,591
----------
Value
Security Description Shares (Note 3)
--------------------------------------------------------------
Electronic Components-Semiconductors -- 3.1%
Intel Corp................................ 34,804 $ 665,801
Intersil Corp., Class A................... 28,100 744,369
Texas Instruments, Inc.................... 23,200 698,320
----------
2,108,490
----------
Electronic Measurement Instruments -- 1.1%
Agilent Technologies, Inc.+............... 21,700 731,073
----------
Electronics-Military -- 1.0%
L-3 Communications Holdings, Inc.......... 8,100 708,507
----------
Enterprise Software/Service -- 1.1%
Oracle Corp.+............................. 41,000 743,330
----------
Entertainment Software -- 0.9%
Electronic Arts, Inc.+.................... 12,100 609,356
----------
Finance-Consumer Loans -- 1.0%
SLM Corp.................................. 16,400 670,760
----------
Finance-Credit Card -- 2.0%
American Express Co....................... 24,000 1,353,600
----------
Finance-Investment Banker/Broker -- 4.8%
Citigroup, Inc............................ 13,900 713,626
Goldman Sachs Group, Inc.................. 5,300 1,095,139
Merrill Lynch & Co., Inc.................. 8,800 718,696
TD Ameritrade Holding Corp.+.............. 49,200 732,096
----------
3,259,557
----------
Industrial Automated/Robotic -- 1.0%
Rockwell Automation, Inc.................. 11,800 706,466
----------
Insurance-Property/Casualty -- 0.5%
OneBeacon Insurance Group, Ltd............ 12,400 310,000
----------
Machinery-Construction & Mining -- 1.1%
Caterpillar, Inc.......................... 11,000 737,330
----------
Machinery-General Industrial -- 0.9%
IDEX Corp................................. 11,421 581,100
----------
Medical Instruments -- 1.6%
Medtronic, Inc............................ 22,500 1,103,850
----------
Medical Products -- 2.7%
Johnson & Johnson......................... 30,500 1,837,930
----------
Medical-Biomedical/Gene -- 4.6%
Amgen, Inc.+.............................. 12,000 670,560
Celgene Corp.+............................ 8,300 435,418
Genentech, Inc.+.......................... 8,600 706,232
Genzyme Corp.+............................ 10,500 630,210
MedImmune, Inc.+.......................... 18,400 669,576
----------
3,111,996
----------
Medical-Drugs -- 1.8%
Abbott Laboratories....................... 7,600 424,080
Allergan, Inc............................. 1,600 177,312
Novartis AG ADR........................... 11,300 617,319
----------
1,218,711
----------
Medical-Generic Drugs -- 0.5%
Barr Pharmaceuticals, Inc.+............... 6,900 319,815
----------
28
SunAmerica Blue Chip Growth Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
----------------------------------------------------------------
COMMON STOCK (continued)
Medical-HMO -- 2.8%
Coventry Health Care, Inc.+................. 11,900 $ 666,995
UnitedHealth Group, Inc..................... 23,700 1,255,389
-----------
1,922,384
-----------
Multimedia -- 1.7%
News Corp., Class A......................... 48,500 1,121,320
-----------
Networking Products -- 2.2%
Cisco Systems, Inc.+........................ 59,500 1,519,035
-----------
Oil Companies-Integrated -- 1.0%
Exxon Mobil Corp............................ 9,400 709,230
-----------
Oil Refining & Marketing -- 1.0%
Valero Energy Corp.......................... 11,000 709,390
-----------
Oil-Field Services -- 1.7%
Schlumberger, Ltd........................... 16,600 1,147,060
-----------
Pharmacy Services -- 1.3%
Express Scripts, Inc.+...................... 10,500 847,560
-----------
Radio -- 0.5%
XM Satellite Radio Holdings, Inc., Class A+. 23,900 308,788
-----------
Retail-Building Products -- 1.1%
Home Depot, Inc............................. 19,900 731,126
-----------
Retail-Consumer Electronics -- 0.7%
Best Buy Co., Inc........................... 10,100 492,072
-----------
Retail-Discount -- 3.6%
Target Corp................................. 18,700 1,108,162
Wal-Mart Stores, Inc........................ 28,000 1,314,600
-----------
2,422,762
-----------
Retail-Drug Store -- 2.1%
CVS Corp.................................... 41,602 1,420,292
-----------
Retail-Jewelry -- 0.5%
Tiffany & Co................................ 7,300 332,004
-----------
Retail-Office Supplies -- 1.0%
Staples, Inc................................ 26,900 695,096
-----------
Retail-Regional Department Stores -- 0.9%
Kohl's Corp.+............................... 8,100 620,541
-----------
Telecom Equipment-Fiber Optics -- 1.1%
Corning, Inc.+.............................. 31,500 716,310
-----------
Telecom Services -- 1.1%
BCE, Inc.................................... 26,300 743,764
-----------
Therapeutics -- 1.2%
Gilead Sciences, Inc.+...................... 10,200 780,300
-----------
Web Portals/ISP -- 4.2%
Google, Inc., Class A+...................... 3,650 1,672,284
Yahoo!, Inc.+............................... 38,500 1,204,665
-----------
2,876,949
-----------
Wireless Equipment -- 1.8%
QUALCOMM, Inc............................... 28,250 1,205,145
-----------
Total Long-Term Investment Securities
(cost $61,215,672)......................... 65,773,184
-----------
Shares/
Principal Value
Security Description Amount (Note 3)
--------------------------------------------------------------
REPURCHASE AGREEMENT -- 3.4%
State Street Bank & Trust Co.
Joint Repurchase Agreement(1)
(cost $2,280,000)................. $2,280,000 $ 2,280,000
-----------
TOTAL INVESTMENTS --
(cost $63,495,672)(2)............. 100.5% 68,053,184
Liabilities in excess of other assets (0.5) (355,219)
---------- -----------
NET ASSETS -- 100.0% $67,697,965
========== ===========
- --------
+ Non-income producing security
(1) See Note 3 for details of Joint Repurchase Agreements
(2) See Note 7 for cost of investments on a tax basis
ADR --American Depository Receipt
See Notes to Financials Statements
29
SunAmerica Growth Opportunities Fund
PORTFOLIO PROFILE -- March 31, 2007 -- (unaudited)
Industry Allocation*
Repurchase Agreements......................... 8.3%
Banks-Commercial.............................. 4.8
Consulting Services........................... 4.4
Telecom Services.............................. 3.7
E-Commerce/Products........................... 3.6
Metal Processors & Fabrication................ 3.3
Retail-Apparel/Shoe........................... 2.8
Insurance-Multi-line.......................... 2.7
Oil Field Machinery & Equipment............... 2.7
Casino Services............................... 2.6
Building-MobileHome/Manufactured Housing...... 2.2
Advanced Materials............................ 2.1
Aerospace/Defense-Equipment................... 2.1
Transactional Software........................ 2.1
Distribution/Wholesale........................ 2.0
Internet Financial Services................... 2.0
Retail-Petroleum Products..................... 2.0
Aerospace/Defense............................. 1.9
Commercial Services........................... 1.7
Research & Development........................ 1.7
Commercial Services-Finance................... 1.6
Finance-Investment Banker/Broker.............. 1.6
Finance-Other Services........................ 1.6
Medical Instruments........................... 1.6
Diagnostic Equipment.......................... 1.5
Footwear & Related Apparel.................... 1.5
Internet Security............................. 1.5
Networking Products........................... 1.5
Wireless Equipment............................ 1.5
Casino Hotels................................. 1.4
Internet Connectivity Services................ 1.4
Internet Infrastructure Equipment............. 1.4
Machinery-General Industrial.................. 1.4
Circuit Boards................................ 1.3
Computer Aided Design......................... 1.3
Medical Products.............................. 1.3
Medical-Hospitals............................. 1.3
Music......................................... 1.3
Internet Application Software................. 1.2
Semiconductors Components-Intergrated Circuits 1.2
Telecommunication Equipment................... 1.2
Transport-Truck............................... 1.1
Medical-HMO................................... 1.0
Oil Companies-Exploration & Production........ 1.0
Retail-Catalog Shopping....................... 1.0
Electronic Connectors......................... 0.9
Office Supplies & Forms....................... 0.9
Building & Construction Products-Misc......... 0.8
Human Resources............................... 0.7
Semiconductor Equipment....................... 0.7
Medical-Drugs................................. 0.6
Electronic Components-Semiconductors.......... 0.5
Transport-Services............................ 0.5
Cosmetics & Toiletries........................ 0.4
Entertainment Software........................ 0.4
Patient Monitoring Equipment.................. 0.4
----
99.2%
====
- --------
* Calculated as a percentage of Net Assets
30
SunAmerica Growth Opportunities Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited)
Value
Security Description Shares (Note 3)
----------------------------------------------------------------
COMMON STOCK -- 90.9%
Advanced Materials -- 2.1%
Ceradyne, Inc.+............................. 26,500 $1,450,610
----------
Aerospace/Defense -- 1.9%
Spirit Aerosystems Holdings, Inc., Class A+. 41,900 1,334,515
----------
Aerospace/Defense-Equipment -- 2.1%
LMI Aerospace, Inc.+........................ 76,800 1,430,784
----------
Banks-Commercial -- 4.8%
Center Financial Corp....................... 63,600 1,257,372
Dearborn Bancorp, Inc.+..................... 33,170 579,480
SVB Financial Group......................... 18,900 918,351
Western Alliance Bancorp.+.................. 19,200 595,968
----------
3,351,171
----------
Building & Construction Products-Misc. -- 0.8%
NCI Building Systems, Inc.+................. 11,200 534,688
----------
Building-MobileHome/Manufactured Housing -- 2.2%
Williams Scotsman International, Inc.+...... 78,500 1,543,310
----------
Casino Hotel -- 1.4%
Trump Entertainment Resorts, Inc.+.......... 53,800 972,166
----------
Casino Services -- 2.6%
Scientific Games Corp., Class A+............ 21,500 705,845
Shuffle Master, Inc.+....................... 61,100 1,115,075
----------
1,820,920
----------
Circuit Boards -- 1.3%
Park Electrochemical Corp................... 32,200 873,264
----------
Commercial Services -- 1.7%
AerCap Holdings NV+......................... 16,800 489,048
ICT Group, Inc.+............................ 41,200 721,000
----------
1,210,048
----------
Commercial Services-Finance -- 1.6%
Heartland Payment Systems, Inc.............. 47,800 1,129,992
----------
Computer Aided Design -- 1.3%
Aspen Technology, Inc.+..................... 68,600 891,800
----------
Consulting Services -- 4.4%
ICF International, Inc.+.................... 43,700 825,930
LECG Corp.+................................. 79,400 1,149,712
Navigant Consulting, Inc.+.................. 55,000 1,086,800
----------
3,062,442
----------
Cosmetics & Toiletries -- 0.4%
Physicians Formula Holdings, Inc.+.......... 14,435 272,533
----------
Diagnostic Equipment -- 1.5%
Home Diagnostics, Inc.+..................... 98,200 1,060,560
----------
Distribution/Wholesale -- 2.0%
WESCO International, Inc.+.................. 22,300 1,399,994
----------
E-Commerce/Products -- 3.6%
NutriSystem, Inc.+.......................... 47,500 2,489,475
----------
Electronic Components-Semiconductors -- 0.5%
QLogic Corp.+............................... 20,500 348,500
----------
Electronic Connectors -- 0.9%
Thomas & Betts Corp.+....................... 13,400 654,188
----------
Value
Security Description Shares (Note 3)
-----------------------------------------------------------------
Entertainment Software -- 0.4%
Glu Mobile, Inc.+........................... 29,792 $ 297,920
----------
Finance-Investment Banker/Broker -- 1.6%
optionsXpress Holdings, Inc................. 48,300 1,136,982
----------
Finance-Other Services -- 1.6%
Nasdaq Stock Market, Inc.+.................. 37,300 1,096,993
----------
Footwear & Related Apparel -- 1.5%
Steven Madden, Ltd.+........................ 36,600 1,068,720
----------
Human Resources -- 0.7%
Barrett Business Services, Inc.............. 21,500 495,575
----------
Insurance-Multi-line -- 2.7%
HCC Insurance Holdings, Inc................. 59,900 1,844,920
----------
Internet Application Software -- 1.2%
Art Technology Group, Inc.+................. 346,700 804,344
----------
Internet Connectivity Services -- 1.4%
NDS Group PLC ADR+.......................... 19,900 993,806
----------
Internet Financial Services -- 2.0%
Online Resources Corp.+..................... 120,300 1,379,841
----------
Internet Infrastructure Equipment -- 1.4%
Avocent Corp.+.............................. 36,300 979,011
----------
Internet Security -- 1.5%
CheckFree Corp.+............................ 28,400 1,053,356
----------
Machinery-General Industrial -- 1.4%
Flow International Corp.+................... 89,200 958,008
----------
Medical Instruments -- 1.6%
ArthroCare Corp.+........................... 30,700 1,106,428
----------
Medical Products -- 1.3%
Northstar Neuroscience, Inc.+............... 73,100 935,680
----------
Medical-Drugs -- 0.6%
Adams Respiratory Therapeutics, Inc.+....... 12,600 423,738
----------
Medical-HMO -- 1.0%
Magellan Health Services, Inc.+............. 16,600 697,200
----------
Medical-Hospitals -- 1.3%
Health Management Assoc., Inc.,Class A...... 80,600 876,122
----------
Metal Processors & Fabrication -- 3.3%
Dynamic Materials Corp.+.................... 69,900 2,287,128
----------
Music -- 1.3%
Warner Music Group Corp..................... 55,100 940,006
----------
Networking Products -- 1.5%
Anixter International, Inc.+................ 15,600 1,028,664
----------
Office Supplies & Forms -- 0.9%
The Standard Register Co.................... 47,800 604,670
----------
Oil Companies-Exploration & Production -- 1.0%
Edge Petroleum Corp.+....................... 54,000 676,080
----------
Oil Field Machinery & Equipment -- 2.7%
Metretek Technologies, Inc.+................ 140,600 1,875,604
----------
Patient Monitoring Equipment -- 0.4%
Aspect Medical Systems, Inc.+............... 17,876 278,687
----------
31
SunAmerica Growth Opportunities Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Shares/
Principal Value
Security Description Amount (Note 3)
-------------------------------------------------------------------
COMMON STOCK (continued)
Research & Development -- 1.7%
Pharmaceutical Product Development, Inc... 34,100 $ 1,148,829
-----------
Retail-Apparel/Shoe -- 2.8%
The Children's Place Retail Stores, Inc.+. 22,500 1,254,600
Tween Brands, Inc.+....................... 19,000 678,680
-----------
1,933,280
-----------
Retail-Catalog Shopping -- 1.0%
Coldwater Creek, Inc.+.................... 34,500 699,660
-----------
Retail-Petroleum Products -- 2.0%
World Fuel Services Corp.................. 30,400 1,406,304
-----------
Semiconductor Equipment -- 0.7%
Rudolph Technologies, Inc.+............... 29,000 505,760
-----------
Semiconductors Components-Intergrated Circuits -- 1.2%
Integrated Device Technology, Inc.+....... 54,100 834,222
-----------
Telecom Services -- 3.7%
Allot Communications, Ltd.+............... 109,600 1,002,840
NeuStar Inc., Class A+.................... 55,400 1,575,576
-----------
2,578,416
-----------
Telecommunication Equipment -- 1.2%
Sirenza Microdevices, Inc.+............... 97,400 839,588
-----------
Transactional Software -- 2.1%
Transaction Systems Architects, Inc.+..... 44,800 1,451,072
-----------
Transport-Services -- 0.5%
UTI Worldwide, Inc........................ 14,300 351,494
-----------
Transport-Truck -- 1.1%
Forward Air Corp.......................... 23,877 785,075
-----------
Wireless Equipment -- 1.5%
Radyne Corp.+............................. 112,800 1,028,736
-----------
Total Long-Term Investment Securities
(cost $61,263,415)........................ 63,232,879
-----------
REPURCHASE AGREEMENT -- 8.3%
State Street Bank & Trust Co.,
Joint Repurchase Agreement(1)
(cost $5,722,000)........................ $5,722,000 5,722,000
-----------
TOTAL INVESTMENTS --
(cost $66,985,415)(2)..................... 99.2% 68,954,879
Other assets less liabilities............... 0.8 590,163
---------- -----------
NET ASSETS -- 100.0% $69,545,042
========== ===========
- --------
+ Non-income producing security
(1) See Note 3 for details of Joint Repurchase Agreement.
(2) See Note 7 for cost of investment on a tax basis.
ADR --American Depository Receipt
See Notes to Financials Statements
32
SunAmerica New Century Fund
PORTFOLIO PROFILE -- March 31, 2007 -- (unaudited)
Industry Allocation*
Repurchase Agreements......................... 19.2%
Telecom Services.............................. 5.6
Finance-Investment Banker/Broker.............. 4.0
E-Commerce/Products........................... 3.3
Casino Services............................... 2.7
Insurance-Multi-line.......................... 2.7
Retail-Apparel/Shoe........................... 2.6
Industrial Automated/Robotic.................. 2.5
Electronic Measurement Instruments............ 2.4
Distribution/Wholesale........................ 2.1
Semiconductor Equipment....................... 2.1
Advanced Materials............................ 1.9
Transactional Software........................ 1.9
Building-MobileHome/Manufactured Housing...... 1.8
Medical Instruments........................... 1.8
Medical-Generic Drugs......................... 1.8
Research & Development........................ 1.8
Banks-Commercial.............................. 1.7
Data Processing/Management.................... 1.7
Footwear & Related Apparel.................... 1.6
Retail-Petroleum Products..................... 1.6
Aerospace/Defense............................. 1.5
Electric Products-Misc........................ 1.5
Finance-Other Services........................ 1.5
Internet Security............................. 1.5
Retirement/Aged Care.......................... 1.5
Networking Products........................... 1.4
Finance-Consumer Loans........................ 1.3
Internet Infrastructure Equipment............. 1.3
Medical-Biomedical/Gene....................... 1.3
Medical-Hospitals............................. 1.3
Music......................................... 1.3
Commercial Services........................... 1.2
Food-Confectionery............................ 1.2
Retail-Consumer Electronics................... 1.2
Internet Connectivity Services................ 1.1
Cable TV...................................... 1.0
Medical-HMO................................... 1.0
Publishing-Newspapers......................... 1.0
Retail-Catalog Shopping....................... 1.0
Semiconductors Components-Intergrated Circuits 0.9
Telecom Equipment-Fiber Optics................ 0.9
Transport-Truck............................... 0.9
Building & Construction Products-Misc......... 0.8
Electronic Connectors......................... 0.8
Disposable Medical Products................... 0.8
Pharmacy Services............................. 0.7
Retail-Office Supplies........................ 0.6
Water......................................... 0.6
Electronic Components-Semiconductors.......... 0.5
Medical Information Systems................... 0.5
Medical-Drugs................................. 0.5
Therapeutics.................................. 0.5
Transport-Services............................ 0.5
-----
100.4%
=====
- --------
* Calculated as a percentage of Net Assets
33
SunAmerica New Century Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited)
Value
Security Description Shares (Note 3)
-----------------------------------------------------------------
COMMON STOCK -- 81.2%
Advanced Materials -- 1.9%
Ceradyne, Inc.+............................. 38,900 $2,129,386
----------
Aerospace/Defense -- 1.5%
Spirit Aerosystems Holdings, Inc., Class A+. 52,300 1,665,755
----------
Banks-Commercial -- 1.7%
SVB Financial Group+........................ 28,700 1,394,533
Whitney Holding Corp........................ 14,400 440,352
----------
1,834,885
----------
Building & Construction Products-Misc. -- 0.8%
NCI Building Systems, Inc.+................. 18,000 859,320
----------
Building-MobileHome/Manufactured Housing -- 1.8%
Williams Scotsman International, Inc.+...... 101,700 1,999,422
----------
Cable TV -- 1.0%
Time Warner Cable, Inc. Class A+............ 28,500 1,067,895
----------
Casino Services -- 2.7%
Scientific Games Corp., Class A+............ 35,500 1,165,465
Shuffle Master, Inc.+....................... 97,600 1,781,200
----------
2,946,665
----------
Commercial Services -- 1.2%
AerCap Holdings NV+......................... 28,300 823,813
Alliance Data Systems Corp.+................ 7,900 486,798
----------
1,310,611
----------
Data Processing/Management -- 1.7%
Global Payments, Inc........................ 53,800 1,832,428
----------
Disposable Medical Products -- 0.8%
C.R. Bard, Inc.............................. 11,400 906,414
----------
Distribution/Wholesale -- 2.1%
WESCO International, Inc.+.................. 36,800 2,310,304
----------
E-Commerce/Products -- 3.3%
NutriSystem, Inc.+.......................... 70,400 3,689,664
----------
Electric Products-Misc. -- 1.5%
Molex, Inc.................................. 60,800 1,714,560
----------
Electronic Components-Semiconductors -- 0.5%
QLogic Corp.+............................... 34,600 588,200
----------
Electronic Connectors -- 0.8%
Thomas & Betts Corp.+....................... 17,100 834,822
----------
Electronic Measurement Instruments -- 2.4%
Agilent Technologies, Inc.+................. 77,700 2,617,713
----------
Finance-Consumer Loans -- 1.3%
SLM Corp.................................... 34,200 1,398,780
----------
Finance-Investment Banker/Broker -- 4.0%
optionsXpress Holdings, Inc................. 71,600 1,685,464
TD Ameritrade Holding Corp.+................ 185,500 2,760,240
----------
4,445,704
----------
Finance-Other Services -- 1.5%
Nasdaq Stock Market, Inc.+.................. 55,200 1,623,432
----------
Food-Confectionery -- 1.2%
Hershey Co.................................. 24,800 1,355,568
----------
Value
Security Description Shares (Note 3)
--------------------------------------------------------------
Footwear & Related Apparel -- 1.6%
Steven Madden, Ltd.+...................... 59,000 $1,722,800
----------
Industrial Automated/Robotic -- 2.5%
Rockwell Automation, Inc.................. 45,900 2,748,033
----------
Insurance-Multi-line -- 2.7%
HCC Insurance Holdings, Inc............... 97,500 3,003,000
----------
Internet Connectivity Services -- 1.1%
NDS Group PLC ADR+........................ 25,200 1,258,488
----------
Internet Infrastructure Equipment -- 1.3%
Avocent Corp.+............................ 55,200 1,488,744
----------
Internet Security -- 1.5%
CheckFree Corp.+.......................... 45,500 1,687,595
----------
Medical Information Systems -- 0.5%
Allscripts Heathcare Solutions, Inc.+..... 22,000 589,820
----------
Medical Instruments -- 1.8%
ArthroCare Corp.+......................... 39,100 1,409,164
Ventana Medical Systems, Inc.+............ 15,000 628,500
----------
2,037,664
----------
Medical-Biomedical/Gene -- 1.3%
Genzyme Corp.+............................ 23,400 1,404,468
----------
Medical-Drugs -- 0.5%
Adams Respiratory Therapeutics, Inc.+..... 16,300 548,169
----------
Medical-Generic Drugs -- 1.8%
Barr Pharmaceuticals, Inc.+............... 42,300 1,960,605
----------
Medical-HMO -- 1.0%
Magellan Health Services, Inc.+........... 26,500 1,113,000
----------
Medical-Hospitals -- 1.3%
Health Management Assoc., Inc., Class A... 127,800 1,389,186
----------
Music -- 1.3%
Warner Music Group Corp................... 87,300 1,489,338
----------
Networking Products -- 1.4%
Anixter International, Inc.+.............. 24,100 1,589,154
----------
Pharmacy Services -- 0.7%
Express Scripts, Inc.+.................... 10,000 807,200
----------
Publishing-Newspapers -- 1.0%
Dow Jones & Co., Inc...................... 30,800 1,061,676
----------
Research & Development -- 1.8%
Pharmaceutical Product Development, Inc... 57,700 1,943,913
----------
Retail-Apparel/Shoe -- 2.6%
The Children's Place Retail Stores, Inc.+. 33,700 1,879,112
Tween Brands, Inc.+....................... 28,800 1,028,736
----------
2,907,848
----------
Retail-Catalog Shopping -- 1.0%
Coldwater Creek, Inc.+.................... 54,600 1,107,288
----------
Retail-Consumer Electronics -- 1.2%
Best Buy Co., Inc......................... 28,300 1,378,776
----------
Retail-Office Supplies -- 0.6%
Office Depot, Inc.+....................... 19,800 695,772
----------
34
SunAmerica New Century Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Shares/
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------------
COMMON STOCK (continued)
Retail-Petroleum Products -- 1.6%
World Fuel Services Corp.............. 38,300 $ 1,771,758
------------
Retirement/Aged Care -- 1.5%
Brookdale Senior Living, Inc.......... 37,100 1,656,886
------------
Semiconductor Equipment -- 2.1%
Lam Research Corp.+................... 48,500 2,295,990
------------
Semiconductors Components-Intergrated Circuits -- 0.9%
Integrated Device Technology, Inc.+.... 67,300 1,037,766
------------
Telecom Equipment-Fiber Optics -- 0.9%
Corning, Inc.+......................... 42,700 970,998
------------
Telecom Services -- 5.6%
BCE, Inc............................... 46,700 1,320,676
NeuStar Inc., Class A+................. 87,700 2,494,188
TELUS Corp............................. 47,400 2,370,000
------------
6,184,864
------------
Therapeutics -- 0.5%
BioMarin Pharmaceutical, Inc.+......... 31,500 543,690
------------
Transactional Software -- 1.9%
Transaction Systems Architects, Inc.+.. 64,200 2,079,438
------------
Transport-Services -- 0.5%
UTI Worldwide, Inc..................... 23,000 565,340
------------
Transport-Truck -- 0.9%
Forward Air Corp....................... 29,300 963,384
------------
Water -- 0.6%
Aqua America, Inc...................... 28,900 648,805
------------
Total Long-Term Investment Securities
(cost $87,765,049).................... 89,782,984
------------
REPURCHASE AGREEMENTS -- 19.2%
State Street Bank & Trust Co.
Joint Repurchase Agreement............ $18,068,000 18,068,000
UBS Securities, LLC
Joint Repurchase Agreement............ 3,234,000 3,234,000
------------
Total Repurchase Agreements
(cost $21,302,000)(1)................. 21,302,000
------------
TOTAL INVESTMENTS --
(cost $109,067,049)(2)................. 100.4% 111,084,984
Liabilities in excess of other assets.... (0.4) (469,564)
----------- ------------
NET ASSETS -- 100.0% $110,615,420
=========== ============
- --------
+ Non-income producing security
(1) See Note 3 for details of Joint Repurchase Agreements
(2) See Note 7 for cost of investments on a tax basis
ADR --American Depository Receipt
See Notes to Financials Statements
35
SunAmerica Growth and Income Fund
PORTFOLIO PROFILE -- March 31, 2007 -- (unaudited)
Industry Allocation*
Finance-Investment Banker/Broker.... 9.3%
Diversified Manufactured Operations. 7.7
Oil Companies-Integrated............ 7.5
Banks-Super Regional................ 5.6
Medical-Drugs....................... 4.4
Telephone-Integrated................ 3.7
Computers........................... 3.3
Medical-Biomedical/Gene............. 2.6
Oil-Field Services.................. 2.6
Electric-Integrated................. 2.3
Electronic Components-Semiconductors 2.3
Retail-Building Products............ 2.2
Applications Software............... 2.0
Finance-Credit Card................. 2.0
Networking Products................. 1.9
Multimedia.......................... 1.7
Telecom Services.................... 1.7
Tobacco............................. 1.7
Beverages-Non-alcoholic............. 1.6
Medical-HMO......................... 1.6
Retail-Discount..................... 1.6
Aerospace/Defense-Equipment......... 1.5
Cosmetics & Toiletries.............. 1.5
Finance-Mortgage Loan/Banker........ 1.5
Food-Confectionery.................. 1.5
Food-Misc........................... 1.5
Oil Refining & Marketing............ 1.5
Retail-Office Supplies.............. 1.5
Wireless Equipment.................. 1.5
Cable TV............................ 1.4
Medical Products.................... 1.4
Chemicals-Diversified............... 1.2
E-Commerce/Services................. 1.1
Paper & Related Products............ 1.1
Aerospace/Defense................... 1.0
Distribution/Wholesale.............. 1.0
Enterprise Software/Service......... 1.0
Finance-Consumer Loans.............. 1.0
Food-Wholesale/Distribution......... 1.0
Industrial Automated/Robotic........ 1.0
Medical Instruments................. 1.0
Medical-Wholesale Drug Distribution. 1.0
Retail-Drug Store................... 1.0
Transport-Services.................. 1.0
Web Portals/ISP..................... 1.0
Metal-Aluminum...................... 0.8
----
99.3%
====
- --------
* Calculated as a percentage of Net Assets
36
SunAmerica Growth and Income Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited)
Value
Security Description Shares (Note 3)
--------------------------------------------------------------
COMMON STOCK -- 99.3%
Aerospace/Defense -- 1.0%
Boeing Co................................. 13,000 $1,155,830
----------
Aerospace/Defense-Equipment -- 1.5%
United Technologies Corp.................. 25,100 1,631,500
----------
Applications Software -- 2.0%
Microsoft Corp............................ 77,400 2,157,138
----------
Banks-Super Regional -- 5.6%
Bank of America Corp...................... 44,200 2,255,084
Wachovia Corp............................. 40,500 2,229,525
Wells Fargo & Co.......................... 49,200 1,693,956
----------
6,178,565
----------
Beverages-Non-alcoholic -- 1.6%
PepsiCo, Inc.............................. 27,100 1,722,476
----------
Cable TV -- 1.4%
Comcast Corp., Class A+................... 59,700 1,549,215
----------
Chemicals-Diversified -- 1.2%
Dow Chemical Co........................... 28,400 1,302,424
----------
Computers -- 3.3%
Apple Computer, Inc.+..................... 12,200 1,133,502
Hewlett-Packard Co........................ 27,200 1,091,808
International Business Machines Corp...... 15,500 1,461,030
----------
3,686,340
----------
Cosmetics & Toiletries -- 1.5%
Procter & Gamble Co....................... 26,200 1,654,792
----------
Distribution/Wholesale -- 1.0%
WESCO International, Inc.+................ 17,200 1,079,816
----------
Diversified Manufactured Operations -- 7.7%
3M Co..................................... 21,700 1,658,531
Dover Corp................................ 34,700 1,693,707
General Electric Co....................... 83,000 2,934,880
Textron, Inc.............................. 24,400 2,191,120
----------
8,478,238
----------
E-Commerce/Services -- 1.1%
eBay, Inc.+............................... 38,000 1,259,700
----------
Electric-Integrated -- 2.3%
Duke Energy Corp.......................... 67,800 1,375,662
Exelon Corp............................... 16,400 1,126,844
----------
2,502,506
----------
Electronic Components-Semiconductors -- 2.3%
Intel Corp................................ 80,100 1,532,313
Texas Instruments, Inc.................... 35,100 1,056,510
----------
2,588,823
----------
Enterprise Software/Service -- 1.0%
Oracle Corp.+............................. 61,000 1,105,930
----------
Finance-Consumer Loans -- 1.0%
SLM Corp.................................. 26,600 1,087,940
----------
Finance-Credit Card -- 2.0%
American Express Co....................... 38,500 2,171,400
----------
Value
Security Description Shares (Note 3)
---------------------------------------------------------------
Finance-Investment Banker/Broker -- 9.3%
Citigroup, Inc........................... 53,900 $ 2,767,226
J.P. Morgan Chase & Co................... 48,600 2,351,268
Morgan Stanley........................... 20,700 1,630,332
TD Ameritrade Holding Corp.+............. 103,000 1,532,640
The Bear Stearns Cos., Inc............... 13,400 2,014,690
-----------
10,296,156
-----------
Finance-Mortgage Loan/Banker -- 1.5%
Fannie Mae............................... 29,700 1,621,026
-----------
Food-Confectionery -- 1.5%
Hershey Co............................... 29,900 1,634,334
-----------
Food-Misc. -- 1.5%
General Mills, Inc....................... 29,000 1,688,380
-----------
Food-Wholesale/Distribution -- 1.0%
Sysco Corp............................... 34,100 1,153,603
-----------
Industrial Automated/Robotic -- 1.0%
Rockwell Automation, Inc................. 18,200 1,089,634
-----------
Medical Instruments -- 1.0%
Medtronic, Inc........................... 21,900 1,074,414
-----------
Medical Products -- 1.4%
Johnson & Johnson........................ 25,400 1,530,604
-----------
Medical-Biomedical/Gene -- 2.6%
Amgen, Inc.+............................. 8,800 491,744
Genzyme Corp.+........................... 17,500 1,050,350
MedImmune, Inc.+......................... 35,600 1,295,484
-----------
2,837,578
-----------
Medical-Drugs -- 4.4%
Abbott Laboratories...................... 24,800 1,383,840
Bristol-Myers Squibb Co.................. 19,800 549,648
Novartis AG ADR.......................... 19,600 1,070,748
Pfizer, Inc.............................. 73,950 1,867,977
-----------
4,872,213
-----------
Medical-HMO -- 1.6%
UnitedHealth Group, Inc.................. 32,600 1,726,822
-----------
Medical-Wholesale Drug Distribution -- 1.0%
Cardinal Health, Inc..................... 15,800 1,152,610
-----------
Metal-Aluminum -- 0.8%
Alcoa, Inc............................... 26,300 891,570
-----------
Multimedia -- 1.7%
News Corp., Class A...................... 79,400 1,835,728
-----------
Networking Products -- 1.9%
Cisco Systems, Inc.+..................... 82,500 2,106,225
-----------
Oil Companies-Integrated -- 7.5%
Chevron Corp............................. 23,800 1,760,248
ConocoPhillips........................... 25,400 1,736,090
Exxon Mobil Corp......................... 47,700 3,598,965
Occidental Petroleum Corp................ 23,300 1,148,923
-----------
8,244,226
-----------
37
SunAmerica Growth and Income Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
-----------------------------------------------------------
COMMON STOCK (continued)
Oil Refining & Marketing -- 1.5%
Valero Energy Corp................... 25,900 $ 1,670,291
------------
Oil-Field Services -- 2.6%
Schlumberger, Ltd.................... 16,800 1,160,880
Smith International, Inc............. 36,500 1,753,825
------------
2,914,705
------------
Paper & Related Products -- 1.1%
International Paper Co............... 34,800 1,266,720
------------
Retail-Building Products -- 2.2%
Home Depot, Inc...................... 33,800 1,241,812
Lowe's Cos., Inc..................... 38,300 1,206,067
------------
2,447,879
------------
Retail-Discount -- 1.6%
Target Corp.......................... 30,000 1,777,800
------------
Retail-Drug Store -- 1.0%
CVS Corp............................. 33,000 1,126,620
------------
Retail-Office Supplies -- 1.5%
Staples, Inc......................... 65,600 1,695,104
------------
Telecom Services -- 1.7%
BCE, Inc............................. 65,200 1,843,856
------------
Telephone-Integrated -- 3.7%
AT&T, Inc............................ 59,500 2,346,085
Verizon Communications, Inc.......... 44,300 1,679,856
------------
4,025,941
------------
Tobacco -- 1.7%
Altria Group, Inc.................... 21,000 1,844,010
------------
Transport-Services -- 1.0%
United Parcel Service, Inc., Class B. 15,400 1,079,540
------------
Web Portals/ISP -- 1.0%
Yahoo!, Inc.+........................ 35,100 1,098,279
------------
Wireless Equipment -- 1.5%
QUALCOMM, Inc........................ 39,300 1,676,538
------------
Total Long-Term Investment Securities
(cost $102,963,015)................. 109,535,039
------------
TOTAL INVESTMENTS --
(cost $102,963,015)(1).............. 99.3% 109,535,039
Other assets less liabilities.......... 0.7 825,039
------ ------------
NET ASSETS -- 100.0% $110,360,078
====== ============
- --------
+ Non-income producing security
(1) See Note 7 for cost of investment on a tax basis
ADR --American Depository Receipt
See Notes to Financials Statements
38
SunAmerica Balanced Assets Fund
PORTFOLIO PROFILE -- March 31, 2007 -- (unaudited)
Industry Allocation*
U.S. Government Agencies............ 13.5%
Finance-Investment Banker/Broker.... 6.0
Diversified Financial Services...... 4.8
Oil Companies-Integrated............ 3.9
Banks-Super Regional................ 3.8
Diversified Manufactured Operations. 3.8
Telephone-Integrated................ 2.5
Computers........................... 2.3
Medical-Drugs....................... 2.3
Electric-Integrated................. 2.2
Foreign Government Agencies......... 2.0
Multimedia.......................... 1.9
Cosmetics & Toiletries.............. 1.8
Retail-Discount..................... 1.8
Medical-Biomedical/Gene............. 1.6
Telecom Services.................... 1.5
Web Portals/ISP..................... 1.5
Electric Products-Misc.............. 1.4
Finance-Credit Card................. 1.4
Medical Products.................... 1.4
Medical-HMO......................... 1.4
Repurchase Agreements............... 1.4
Electronic Components-Semiconductors 1.3
Oil Refining & Marketing............ 1.3
Special Purpose Entities............ 1.3
Applications Software............... 1.1
Banks-Fiduciary..................... 1.1
Cable TV............................ 1.1
Finance-Mortgage Loan/Banker........ 1.1
Oil-Field Services.................. 1.1
Banks-Commercial.................... 1.0
Aerospace/Defense................... 0.9
Aerospace/Defense-Equipment......... 0.9
Beverages-Non-alcoholic............. 0.9
Insurance-Multi-line................ 0.8
Networking Products................. 0.8
Retail-Building Products............ 0.8
Retail-Drug Store................... 0.8
Banks-Money Center.................. 0.7
Finance-Consumer Loans.............. 0.7
Insurance-Property/Casualty......... 0.7
Brewery............................. 0.6
Industrial Automated/Robotic........ 0.6
Medical Instruments................. 0.6
Paper & Related Products............ 0.6
Wireless Equipment.................. 0.6
Cellular Telecom.................... 0.5
Chemicals-Diversified............... 0.5
Distribution/Wholesale.............. 0.5
Food-Misc........................... 0.5
Non-Hazardous Waste Disposal........ 0.5
Pipelines........................... 0.5
Tobacco............................. 0.5
Agricultural Chemicals.............. 0.4
E-Commerce/Services................. 0.4
Electronic Measurement Instruments.. 0.4
Electronics-Military................ 0.4
Enterprise Software/Service......... 0.4
Machinery-Construction & Mining....... 0.4%
Pharmacy Services..................... 0.4
Real Estate Investment Trusts......... 0.4
Retail-Office Supplies................ 0.4
Savings & Loans/Thrifts............... 0.4
Telecom Equipment-Fiber Optics........ 0.4
Therapeutics.......................... 0.4
Beverages-Wine/Spirits................ 0.3
Casino Services....................... 0.3
Coal.................................. 0.3
Commercial Services................... 0.3
Computer Aided Design................. 0.3
Entertainment Software................ 0.3
Finance-Auto Loans.................... 0.3
Industrial Gases...................... 0.3
Machinery-General Industrial.......... 0.3
Metal-Aluminum........................ 0.3
Oil Companies-Exploration & Production 0.3
Radio................................. 0.3
Retail-Regional Department Stores..... 0.3
Transport-Air Freight................. 0.3
Containers-Paper/Plastic.............. 0.2
Independent Power Producers........... 0.2
Medical-Generic Drugs................. 0.2
Retail-Consumer Electronics........... 0.2
Retail-Jewelry........................ 0.2
Transport-Rail........................ 0.2
Airlines.............................. 0.1
Auto-Cars/Light Trucks................ 0.1
Broadcast Services/Program............ 0.1
Building Products-Cement.............. 0.1
Casino Hotels......................... 0.1
Chemicals-Specialty................... 0.1
Diversified Minerals.................. 0.1
Electric-Generation................... 0.1
Financial Guarantee Insurance......... 0.1
Funeral Services & Related Items...... 0.1
Gas-Distribution...................... 0.1
Insurance Brokers..................... 0.1
Insurance-Life/Health................. 0.1
Investment Companies.................. 0.1
Leisure Products...................... 0.1
Medical-Hospitals..................... 0.1
Medical-Wholesale Drug Distribution... 0.1
Metal Processors & Fabrication........ 0.1
Office Automation & Equipment......... 0.1
Precious Metals....................... 0.1
Publishing-Newspapers................. 0.1
Real Estate Operations & Development.. 0.1
Satellite Telecom..................... 0.1
Steel-Producers....................... 0.1
Television............................ 0.1
Transport-Services.................... 0.1
-----
101.9%
=====
- --------
* Calculated as a percentage of Net Assets
39
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited)
Value
Security Description Shares (Note 3)
---------------------------------------------------------------
COMMON STOCK -- 64.3%
Aerospace/Defense -- 0.6%
Boeing Co................................... 7,300 $ 649,043
Spirit Aerosystems Holdings, Inc., Class A+. 9,200 293,020
----------
942,063
----------
Aerospace/Defense-Equipment -- 0.9%
United Technologies Corp.................... 22,800 1,482,000
----------
Agricultural Chemicals -- 0.3%
Monsanto Co................................. 9,300 511,128
----------
Applications Software -- 1.1%
Microsoft Corp.............................. 60,278 1,679,948
----------
Banks-Fiduciary -- 1.1%
The Bank of New York Co., Inc............... 42,100 1,707,155
----------
Banks-Super Regional -- 3.5%
Bank of America Corp........................ 37,788 1,927,944
US Bancorp.................................. 30,700 1,073,579
Wachovia Corp............................... 26,800 1,475,340
Wells Fargo & Co............................ 28,200 970,926
----------
5,447,789
----------
Beverages-Non-alcoholic -- 0.9%
PepsiCo, Inc................................ 22,700 1,442,812
----------
Beverages-Wine/Spirits -- 0.2%
Constellation Brands, Inc., Class A+........ 13,500 285,930
----------
Brewery -- 0.5%
Anheuser-Busch Cos., Inc.................... 14,200 716,532
----------
Cable TV -- 0.8%
Comcast Corp., Class A+..................... 50,000 1,297,500
----------
Casino Services -- 0.3%
International Game Technology............... 12,400 500,712
----------
Cellular Telecom -- 0.4%
NII Holdings, Inc.+......................... 7,500 556,350
----------
Chemicals-Diversified -- 0.4%
Dow Chemical Co............................. 12,400 568,664
----------
Coal -- 0.3%
Peabody Energy Corp......................... 13,600 547,264
----------
Commercial Services -- 0.3%
AerCap Holdings NV+......................... 16,000 465,760
----------
Computer Aided Design -- 0.3%
Autodesk, Inc.+............................. 13,900 522,640
----------
Computers -- 2.3%
Apple Computer, Inc.+....................... 9,800 910,518
Hewlett-Packard Co.......................... 28,700 1,152,018
International Business Machines Corp........ 16,200 1,527,012
----------
3,589,548
----------
Cosmetics & Toiletries -- 1.7%
Procter & Gamble Co......................... 41,700 2,633,772
----------
Distribution/Wholesale -- 0.5%
WESCO International, Inc.+.................. 11,400 715,692
----------
Value
Security Description Shares (Note 3)
--------------------------------------------------------------
Diversified Manufactured Operations -- 3.5%
3M Co..................................... 16,700 $1,276,381
Danaher Corp.............................. 10,000 714,500
Dover Corp................................ 12,090 590,113
General Electric Co....................... 83,500 2,952,560
----------
5,533,554
----------
E-Commerce/Services -- 0.4%
eBay, Inc.+............................... 17,300 573,495
----------
Electric Products-Misc. -- 1.4%
AMETEK, Inc............................... 25,300 873,862
Emerson Electric Co....................... 31,600 1,361,644
----------
2,235,506
----------
Electric-Integrated -- 1.3%
Duke Energy Corp.......................... 38,900 789,281
Exelon Corp............................... 7,300 501,583
FPL Group, Inc............................ 12,300 752,391
----------
2,043,255
----------
Electronic Components-Semiconductors -- 1.3%
Intel Corp................................ 50,400 964,152
Intersil Corp., Class A................... 22,200 588,078
Texas Instruments, Inc.................... 18,400 553,840
----------
2,106,070
----------
Electronic Measurement Instruments -- 0.4%
Agilent Technologies, Inc.+............... 16,900 569,361
----------
Electronics-Military -- 0.4%
L-3 Communications Holdings, Inc.......... 6,400 559,808
----------
Enterprise Software/Service -- 0.4%
Oracle Corp.+............................. 32,300 585,599
----------
Entertainment Software -- 0.3%
Electronic Arts, Inc.+.................... 9,500 478,420
----------
Finance-Consumer Loans -- 0.6%
SLM Corp.................................. 24,600 1,006,140
----------
Finance-Credit Card -- 1.4%
American Express Co....................... 38,300 2,160,120
----------
Finance-Investment Banker/Broker -- 5.6%
Citigroup, Inc............................ 49,088 2,520,178
Goldman Sachs Group, Inc.................. 4,184 864,540
J.P. Morgan Chase & Co.................... 35,700 1,727,166
Merrill Lynch & Co., Inc.................. 6,900 563,523
Morgan Stanley............................ 12,900 1,016,004
TD Ameritrade Holding Corp.+.............. 81,700 1,215,696
The Bear Stearns Cos., Inc................ 5,800 872,030
----------
8,779,137
----------
Finance-Mortgage Loan/Banker -- 0.6%
Fannie Mae................................ 17,500 955,150
----------
Food-Misc. -- 0.5%
General Mills, Inc........................ 13,000 756,860
----------
Industrial Automated/Robotic -- 0.6%
Rockwell Automation, Inc.................. 16,700 999,829
----------
40
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
---------------------------------------------------------
COMMON STOCK (continued)
Industrial Gases -- 0.3%
Air Products & Chemicals, Inc........ 7,100 $ 525,116
----------
Insurance-Multi-line -- 0.5%
MetLife, Inc......................... 12,200 770,430
----------
Insurance-Property/Casualty -- 0.5%
Chubb Corp........................... 9,600 496,032
OneBeacon Insurance Group, Ltd....... 9,700 242,500
----------
738,532
----------
Machinery-Construction & Mining -- 0.4%
Caterpillar, Inc..................... 8,700 583,161
----------
Machinery-General Industrial -- 0.3%
IDEX Corp............................ 9,039 459,904
----------
Medical Instruments -- 0.6%
Medtronic, Inc....................... 17,800 873,268
----------
Medical Products -- 1.4%
Johnson & Johnson.................... 35,500 2,139,230
----------
Medical-Biomedical/Gene -- 1.6%
Amgen, Inc.+......................... 9,500 530,860
Celgene Corp.+....................... 6,500 340,990
Genentech, Inc.+..................... 6,800 558,416
Genzyme Corp.+....................... 8,300 498,166
MedImmune, Inc.+..................... 14,500 527,655
----------
2,456,087
----------
Medical-Drugs -- 1.9%
Abbott Laboratories.................. 6,000 334,800
Allergan, Inc........................ 1,200 132,984
Bristol-Myers Squibb Co.............. 8,700 241,512
Novartis AG ADR...................... 17,500 956,025
Pfizer, Inc.......................... 53,714 1,356,816
----------
3,022,137
----------
Medical-Generic Drugs -- 0.2%
Barr Pharmaceuticals, Inc.+.......... 5,400 250,290
----------
Medical-HMO -- 1.4%
Coventry Health Care, Inc.+.......... 9,400 526,870
UnitedHealth Group, Inc.............. 32,500 1,721,525
----------
2,248,395
----------
Metal-Aluminum -- 0.2%
Alcoa, Inc........................... 10,800 366,120
----------
Multimedia -- 1.3%
News Corp., Class A.................. 71,074 1,643,231
Time Warner, Inc..................... 23,444 462,315
----------
2,105,546
----------
Networking Products -- 0.8%
Cisco Systems, Inc.+................. 47,000 1,199,910
----------
Non-Hazardous Waste Disposal -- 0.5%
Waste Management, Inc................ 20,700 712,287
----------
Oil Companies-Integrated -- 3.6%
Chevron Corp......................... 17,428 1,288,975
ConocoPhillips....................... 18,400 1,257,640
Value
Security Description Shares (Note 3)
---------------------------------------------------------------
Oil Companies-Integrated (continued)
Exxon Mobil Corp............................ 34,800 $2,625,660
Occidental Petroleum Corp................... 10,300 507,893
----------
5,680,168
----------
Oil Refining & Marketing -- 1.2%
Sunoco, Inc................................. 8,700 612,828
Valero Energy Corp.......................... 20,200 1,302,698
----------
1,915,526
----------
Oil-Field Services -- 1.1%
Schlumberger, Ltd........................... 13,100 905,210
Smith International, Inc.................... 16,100 773,605
----------
1,678,815
----------
Paper & Related Products -- 0.3%
International Paper Co...................... 14,900 542,360
----------
Pharmacy Services -- 0.4%
Express Scripts, Inc.+...................... 8,300 669,976
----------
Radio -- 0.2%
XM Satellite Radio Holdings, Inc., Class A+. 18,900 244,188
----------
Retail-Building Products -- 0.7%
Home Depot, Inc............................. 29,300 1,076,482
----------
Retail-Consumer Electronics -- 0.2%
Best Buy Co., Inc........................... 7,900 384,888
----------
Retail-Discount -- 1.7%
Target Corp................................. 14,700 871,122
Wal-Mart Stores, Inc........................ 37,100 1,741,845
----------
2,612,967
----------
Retail-Drug Store -- 0.7%
CVS Corp.................................... 32,661 1,115,046
----------
Retail-Jewelry -- 0.2%
Tiffany & Co................................ 5,800 263,784
----------
Retail-Office Supplies -- 0.4%
Staples, Inc................................ 21,300 550,392
----------
Retail-Regional Department Stores -- 0.3%
Kohl's Corp.+............................... 6,400 490,304
----------
Telecom Equipment-Fiber Optics -- 0.4%
Corning, Inc.+.............................. 24,800 563,952
----------
Telecom Services -- 1.1%
BCE, Inc.................................... 58,300 1,648,724
----------
Telephone-Integrated -- 1.8%
AT&T, Inc................................... 40,535 1,598,295
Verizon Communications, Inc................. 32,600 1,236,192
----------
2,834,487
----------
Therapeutics -- 0.4%
Gilead Sciences, Inc.+...................... 8,100 619,650
----------
Tobacco -- 0.5%
Altria Group, Inc........................... 9,000 790,290
----------
41
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Shares/
Principal Value
Security Description Amount (Note 3)
--------------------------------------------------------------
COMMON STOCKS (continued)
Web Portals/ISP -- 1.5%
Google, Inc., Class A+.............. 2,950 $ 1,351,572
Yahoo!, Inc.+....................... 30,500 954,345
------------
2,305,917
------------
Wireless Equipment -- 0.6%
QUALCOMM, Inc....................... 22,350 953,451
------------
Total Common Stock
(cost $92,679,582)................. 100,347,343
------------
PREFERRED STOCK -- 0.6%
Banks-Money Center -- 0.1%
Santander Finance Preferred SA
5.88%*(1).......................... 8,400 207,113
------------
Diversified Financial Services -- 0.2%
General Electric Capital Corp.
8.00%(2)........................... 14,000 335,440
------------
Finance-Mortgage Loan/Banker -- 0.1%
Fannie Mae
Series O, 7.00%(1)................. 2,250 119,655
------------
Special Purpose Entity -- 0.1%
Structured Repackaged Asset-Backed
Trust Securities 5.88%(1).......... 9,200 216,200
------------
Telephone-Integrated -- 0.1%
AT&T, Inc.
6.38%.............................. 4,400 110,352
------------
Total Preferred Stock
(cost $1,012,175).................. 988,760
------------
ASSET BACKED SECURITIES -- 4.5%
Diversified Financial Services -- 4.5%
Bear Stearns Commercial Mtg.
Securities Inc.
Series 2007-PW15, Class A2
5.21% due 02/11/44(3)(4)........... $ 165,000 164,934
Bear Stearns Commercial Mtg.
Securities Inc.
Series 2007-PW15, Class H
5.93% due 02/11/44*(3)(4).......... 375,000 367,196
Bear Stearns Commercial Mtg.
Securities, Inc.,
Series 2006-PW12, Class F
5.75% due 09/11/38*(3)(4).......... 340,000 336,602
Bear Stearns Commercial Mtg.
Securities, Inc.,
Series 2006-PW12, Class G
5.75% due 09/11/38*(3)(4).......... 58,000 56,553
Commercial Mtg. Pass Through Certs.
Series 2004-LB2A, Class A3
4.22% due 03/10/39(3).............. 1,074,000 1,044,852
Countrywide Asset-Backed Certs.
Series 2006-S6, Class A3
5.66% due 03/25/34(3).............. 928,000 929,021
Countrywide Asset-Backed Certs.
Series 2006-S4, Class A3
5.80% due 10/25/36................. 920,000 928,338
Principal Value
Security Description Amount (Note 3)
---------------------------------------------------------------
Diversified Financial Services (continued)
J.P. Morgan Chase Commercial Mtg.
Securities Corp.,(1)
Series 2006-CB16, Class E
5.84% due 05/12/45*(3)(4).............. $230,000 $ 233,701
Merrill Lynch Mortgage Investors, Inc.
Series 2004-A1, Class 3A
4.83% due 02/25/34(4).................. 335,795 332,542
Merrill Lynch/Countrywide
Commercial Mtg. Trust,
Series 2007-5, Class H
6.12% due 08/25/48*(5)................. 210,000 195,579
Morgan Stanley Capital I,
Series 2006-IQ12, Class AJ
5.40% due 12/15/43(3).................. 355,000 352,921
Morgan Stanley Capital I,
Series 2006-IQ12, Class D
5.53% due 12/15/43(3)(4)............... 250,000 249,204
Ocwen Advance Receivables Backed Notes
Series 2006-1A
5.34% due 11/24/15*.................... 350,000 349,125
Providian Master Note Trust
Series 2006-C1A, Class C1
5.87% due 03/16/15*(1)................. 550,000 553,352
Wachovia Bank Commercial Mtg.
Trust,
Series 2006-C27, Class A3
5.77% due 07/15/45(3)(4)............... 160,000 164,287
Wachovia Bank Commercial Mtg.
Trust,
Series 2006-WL7A, Class F
5.87% due 09/15/21*(1)(3).............. 515,000 515,101
Wells Fargo Mortgage Backed
Securities Trust
Series 2006-AR12, Class 2A1
6.11% due 09/25/36(4).................. 239,617 242,568
----------
Total Asset Backed Securities
(cost $7,035,665)...................... 7,015,876
----------
CORPORATE BONDS & NOTES -- 12.0%
Aerospace/Defense -- 0.3%
Raytheon Co.
Debentures
6.00% due 12/15/10..................... 55,000 56,945
Raytheon Co.
Senior Notes
6.75% due 08/15/07..................... 220,000 220,942
Raytheon Co.
Senior Notes
6.75% due 03/15/18..................... 107,000 117,994
----------
395,881
----------
Agricultural Chemicals -- 0.1%
Mosaic Global Holdings, Inc.
Debentures
7.38% due 08/01/18..................... 10,000 9,950
42
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------
CORPORATE BONDS & NOTES (continued)
Agricultural Chemicals (continued)
Terra Capital, Inc.
Senior Notes
7.00% due 02/01/17*............. $ 25,000 $ 24,875
The Mosaic Co.
Senior Notes
7.38% due 12/01/14*............. 45,000 46,913
--------
81,738
--------
Airlines -- 0.1%
American Airlines, Inc.
Pass Through Certs.
Series 2001-1, Class A-2
6.82% due 05/23/11.............. 140,000 143,150
--------
Auto-Cars/Light Trucks -- 0.1%
DaimlerChrysler NA Holding Corp.
Company Guar. Notes
5.69% due 03/13/09(1)........... 60,000 60,105
DaimlerChrysler NA Holding Corp.
Company Guar. Bonds
5.75% due 09/08/11.............. 55,000 55,876
Ford Motor Co.
Debentures
6.38% due 02/01/29.............. 50,000 35,625
General Motors Corp.
Debentures
8.25% due 07/15/23.............. 40,000 36,000
General Motors Corp.
Senior Bonds
8.38% due 07/15/33.............. 2,000 1,795
--------
189,401
--------
Banks-Commercial -- 0.6%
Colonial Bank NA
Sub. Notes
6.38% due 12/01/15.............. 70,000 72,667
Compass Bank
Notes
5.50% due 04/01/20.............. 110,000 108,193
First Maryland Capital II
Company Guar. Notes
6.21% due 02/01/27(1)........... 196,000 191,611
Popular North America, Inc.
Company Guar. Notes
5.65% due 04/15/09.............. 90,000 90,545
SouthTrust Bank
Sub. Notes
4.75% due 03/01/13.............. 120,000 117,693
SouthTrust Corp.
Sub. Notes
5.80% due 06/15/14.............. 55,000 56,245
UBS AG
Sub. Notes
5.88% due 07/15/16.............. 55,000 57,273
Union Bank of California NA
Sub. Notes
5.95% due 05/11/16.............. 120,000 123,462
Principal Value
Security Description Amount (Note 3)
----------------------------------------------------------
Banks-Commercial (continued)
US Bank NA
Notes
3.90% due 08/15/08.................. $ 38,000 $ 37,324
--------
855,013
--------
Banks-Money Center -- 0.3%
BankBoston Capital Trust IV
5.94% due 06/08/28(1)............... 222,000 218,047
Comerica Bank
Senior Sub. Notes
5.75% due 11/21/16.................. 130,000 130,335
RBS Capital Trust I Bank
Bank Guar. Notes
4.71% due 12/29/49(4)............... 77,000 73,578
--------
421,960
--------
Banks-Special Purpose -- 0.0%
Rabobank Capital Funding II
Bonds
5.26% due 12/31/49*(4).............. 70,000 68,107
--------
Banks-Super Regional -- 0.3%
Bank of America Corp.
Sub. Notes
5.42% due 03/15/17*................. 96,000 95,003
Capital One Financial Corp.
Senior Notes
5.70% due 09/15/11.................. 242,000 244,453
Huntington National Bank
Sub. Notes
6.60% due 06/15/18.................. 69,000 73,310
Wachovia Capital Trust III
Bank Guar.
5.80% due 03/15/42(4)............... 110,000 111,312
--------
524,078
--------
Brewery -- 0.1%
Anheuser-Busch Cos., Inc.
Bonds
6.00% due 11/01/41.................. 136,000 132,703
--------
Broadcast Services/Program -- 0.0%
Nexstar Finance, Inc.
Senior Sub. Notes
7.00% due 01/15/14.................. 35,000 33,600
--------
Building Products-Air & Heating -- 0.0%
American Standard, Inc.
Company Guar. Notes
7.38% due 02/01/08.................. 51,000 51,649
--------
Building-Residential/Commercial -- 0.0%
Lennar Corp.
Company Guar. Notes
5.95% due 10/17/11.................. 60,000 59,906
--------
Cable TV -- 0.3%
CCH I LLC
Company Guar. Notes
11.00% due 10/01/15................. 28,000 28,910
43
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 3)
----------------------------------------------------------
CORPORATE BONDS & NOTES (continued)
Cable TV (continued)
CCH II LLC/CCH II Capital Corp.
Company Guar. Notes
10.25% due 10/01/13.................. $ 85,000 $ 92,863
Comcast Corp.
Company Guar. Notes
5.88% due 02/15/18................... 100,000 100,270
Comcast Corp.
Company Guar. Notes
6.50% due 01/15/15................... 65,000 68,558
Cox Communications, Inc.
Bonds
5.50% due 10/01/15................... 110,000 108,172
--------
398,773
--------
Casino Hotels -- 0.1%
MGM Mirage, Inc.
Senior Notes
5.88% due 02/27/14................... 100,000 93,000
Riviera Holdings Corp.
Company Guar. Notes
11.00% due 06/15/10.................. 55,000 57,337
--------
150,337
--------
Cellular Telecom -- 0.1%
American Cellular Corp.
Senior Notes
10.00% due 08/01/11.................. 16,000 16,940
Centennial Communications Corp.
Senior Notes
11.11% due 01/01/13(1)............... 100,000 105,250
Rural Cellular Corp.
Senior Sub. Notes
9.75% due 01/15/10................... 65,000 66,950
--------
189,140
--------
Chemicals-Diversified -- 0.1%
EI Du Pont de Nemours & Co.
Senior Notes
4.88% due 04/30/14................... 38,000 37,069
ICI Wilmington, Inc.
Company Guar. Notes
7.05% due 09/15/07................... 170,000 171,034
--------
208,103
--------
Chemicals-Specialty -- 0.1%
Huntsman International LLC
Company Guar. Notes
7.88% due 11/15/14*.................. 55,000 56,856
Momentive Performance Materials, Inc.
Senior Sub. Notes
11.50% due 12/01/16*................. 85,000 87,125
Nalco Co.
Senior Notes
7.75% due 11/15/11................... 35,000 35,875
--------
179,856
--------
Principal Value
Security Description Amount (Note 3)
--------------------------------------------------------------
Commercial Services -- 0.0%
The ServiceMaster Co.
Notes
7.88% due 08/15/09....................... $ 44,000 $ 46,283
--------
Computer Services -- 0.0%
Computer Sciences Corp.
Notes
3.50% due 04/15/08....................... 65,000 63,461
--------
Consulting Services -- 0.0%
FTI Consulting, Inc.
Company Guar. Notes
7.63% due 06/15/13....................... 45,000 46,688
--------
Containers-Paper/Plastic -- 0.2%
Jefferson Smurfit Corp.
Company Guar. Notes
8.25% due 10/01/12....................... 30,000 30,000
Pliant Corp.
Company Guar. Notes
11.13% due 09/01/09...................... 82,000 82,000
Smurfit-Stone Container Enterprises, Inc.
Senior Notes
8.00% due 03/15/17*...................... 175,000 171,062
--------
283,062
--------
Cosmetics & Toiletries -- 0.1%
Procter & Gamble Co.
Senior Notes
5.55% due 03/05/37....................... 130,000 126,481
--------
Direct Marketing -- 0.0%
Affinity Group, Inc.
Senior Sub. Notes
9.00% due 02/15/12....................... 45,000 46,238
--------
Diversified Financial Services -- 0.1%
AXA Financial, Inc.
Senior Notes
6.50% due 04/01/08....................... 55,000 55,595
General Electric Capital Corp.
Senior Notes
5.65% due 06/09/14....................... 67,000 68,250
--------
123,845
--------
Diversified Manufactured Operations -- 0.2%
3M Co.
Notes
6.38% due 02/15/28....................... 72,000 77,626
Crane Co.
Senior Notes
6.55% due 11/15/36....................... 168,000 167,550
--------
245,176
--------
Electric-Generation -- 0.1%
The AES Corp.
Senior Notes
8.88% due 02/15/11....................... 85,000 91,375
--------
44
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 3)
--------------------------------------------------------
CORPORATE BONDS & NOTES (continued)
Electric-Integrated -- 0.8%
American Electric Power Co., Inc.
Senior Notes
4.71% due 08/16/07(2)............ $ 72,000 $ 71,789
Appalachian Power Co.
Senior Notes
5.00% due 06/01/17............... 72,000 68,148
Centerpoint Energy, Inc.
Senior Notes
5.88% due 06/01/08............... 140,000 140,541
Commonwealth Edison Co.
1st Mtg. Bonds
5.90% due 03/15/36............... 84,000 77,964
Dominion Resources, Inc.
Senior Notes
5.75% due 05/15/08(2)............ 132,000 132,307
Dominion Resources, Inc.
Junior Sub. Notes
6.30% due 09/30/66(2)............ 109,000 111,044
Duke Energy Indiana, Inc.
Debentures
5.00% due 09/15/13............... 60,000 58,388
Entergy Louisiana LLC
1st Mtg. Bonds
5.83% due 11/01/10............... 195,000 196,820
Mirant Mid-Atlantic LLC
Pass Through Certs.
Series B
9.13% due 06/30/17............... 40,254 45,990
Pepco Holdings, Inc.
Notes
6.45% due 08/15/12............... 55,000 57,552
PSEG Power LLC
Company Guar. Notes
7.75% due 04/15/11............... 65,000 70,492
Public Service Electric & Gas Co.
Sec. Notes
5.00% due 08/15/14............... 66,000 64,409
Puget Sound Energy, Inc.
Senior Notes
5.20% due 10/01/15............... 212,000 206,287
Southern Energy, Inc.
Notes
7.90% due 07/15/09+(1)(5)(6)(11). 150,000 0
----------
1,301,731
----------
Electronics-Military -- 0.0%
L-3 Communications Corp.
Company Guar. Notes
6.38% due 10/15/15............... 50,000 49,563
----------
Finance-Auto Loans -- 0.3%
Ford Motor Credit Co.
Senior Notes
6.63% due 06/16/08............... 55,000 54,826
Ford Motor Credit Co.
Notes
7.38% due 10/28/09............... 140,000 139,743
Principal Value
Security Description Amount (Note 3)
-----------------------------------------------------------
Finance-Auto Loans (continued)
General Motors Acceptance Corp.
Notes
6.75% due 12/01/14................... $ 45,000 $ 44,239
General Motors Acceptance Corp.
Notes
6.88% due 09/15/11................... 255,000 255,247
General Motors Acceptance Corp.
Notes
6.88% due 08/28/12................... 13,000 12,948
--------
507,003
--------
Finance-Commercial -- 0.1%
Transamerica Finance Corp.
Senior Notes
6.40% due 09/15/08................... 75,000 76,218
--------
Finance-Consumer Loans -- 0.1%
HSBC Finance Corp.
Notes
4.75% due 07/15/13................... 96,000 92,732
John Deere Capital Corp.
Debentures
5.10% due 01/15/13................... 72,000 71,653
--------
164,385
--------
Finance-Credit Card -- 0.1%
Capital One Bank
Senior Sub. Notes
6.50% due 06/13/13................... 82,000 85,804
--------
Finance-Investment Banker/Broker -- 0.3%
Lehman Brothers Holdings, Inc.
Senior Notes
5.25% due 02/06/12................... 65,000 64,941
Merrill Lynch & Co., Inc.
Sub. Notes
6.11% due 01/29/37................... 220,000 213,282
Morgan Stanley
Notes
5.45% due 01/09/17................... 134,000 131,796
Morgan Stanley
Senior Notes
5.63% due 01/09/12................... 65,000 65,854
The Bear Stearns Cos., Inc.
Senior Sub. Notes
5.55% due 01/22/17................... 65,000 63,753
--------
539,626
--------
Finance-Mortgage Loan/Banker -- 0.4%
Countrywide Financial Corp.
Sub. Notes
6.25% due 05/15/16................... 120,000 120,963
Residential Capital LLC
Company Guar. Notes
6.13% due 11/21/08................... 60,000 59,969
Residential Capital LLC
Company Guar. Notes
6.38% due 06/30/10................... 267,000 266,928
45
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------
CORPORATE BONDS & NOTES (continued)
Finance-Mortgage Loan/Banker (continued)
Residential Capital LLC
Company Guar. Notes
6.50% due 04/17/13................... $ 60,000 `$ 59,431
Residential Capital LLC
Company Guar. Notes
6.88% due 06/30/15................... 84,000 84,749
---------
592,040
---------
Food-Misc. -- 0.0%
Kraft Foods, Inc.
Senior Bonds
5.63% due 11/01/11................... 60,000 60,732
---------
Funeral Services & Related Items -- 0.1%
Service Corp. International
Senior Notes
6.75% due 04/01/16................... 95,000 94,525
---------
Home Furnishings -- 0.0%
Simmons Co.
Senior Disc. Notes
10.00% due 12/15/14(2)............... 8,000 6,580
---------
Independent Power Producers -- 0.2%
Calpine Corp.+
Sec. Notes
8.75% due 07/15/13*(7)............... 175,000 186,375
NRG Energy, Inc.
Company Guar. Notes
7.38% due 02/01/16................... 90,000 92,475
---------
278,850
---------
Insurance Brokers -- 0.1%
Marsh & McLennan Cos., Inc.
Senior Notes
5.15% due 09/15/10................... 60,000 59,476
Marsh & McLennan Cos., Inc.
Senior Notes
7.13% due 06/15/09................... 40,000 41,489
---------
100,965
---------
Insurance-Life/Health -- 0.1%
Americo Life, Inc.
Notes
7.88% due 05/01/13*.................. 134,000 137,735
Monumental Global Funding II
Notes
5.65% due 07/14/11*.................. 66,000 67,326
---------
205,061
---------
Insurance-Multi-line -- 0.0%
Metropolitan Life Global Funding I
Sec. Notes
5.75% due 07/25/11*.................. 55,000 56,372
---------
Insurance-Property/Casualty -- 0.2%
Crum & Forster Holdings Corp.
Senior Notes
10.38% due 06/15/13.................. 65,000 70,200
Principal Value
Security Description Amount (Note 3)
----------------------------------------------------------
Insurance-Property/Casualty (continued)
Fidelity National Title Group, Inc.
Notes
7.30% due 08/15/11.................. $131,000 $135,959
WR Berkley Corp.
Senior Sub. Notes
6.25% due 02/15/37.................. 120,000 117,208
--------
323,367
--------
Leisure Products -- 0.1%
Brunswick Corp.
Notes
5.00% due 06/01/11.................. 103,000 100,653
--------
Machinery-Farming -- 0.0%
Case Corp.
Notes
7.25% due 01/15/16.................. 50,000 52,250
--------
Medical Products -- 0.1%
Baxter International, Inc.
Senior Notes
5.90% due 09/01/16.................. 55,000 56,759
Universal Hospital Services, Inc.
Senior Notes
10.13% due 11/01/11................. 45,000 47,812
--------
104,571
--------
Medical-Drugs -- 0.3%
Abbott Laboratories
Notes
5.88% due 05/15/16.................. 60,000 62,070
American Home Products Corp.
Notes
6.95% due 03/15/11.................. 123,000 130,771
Eli Lilly & Co.
Notes
5.50% due 03/15/27.................. 130,000 125,253
Wyeth
Bonds
5.50% due 02/01/14.................. 126,000 126,768
Wyeth
Notes
5.95% due 04/01/37.................. 60,000 59,091
--------
503,953
--------
Medical-HMO -- 0.0%
WellPoint, Inc.
Notes
3.75% due 12/14/07.................. 6,620 6,546
--------
Medical-Hospitals -- 0.1%
HCA, Inc.
Senior Notes
6.95% due 05/01/12.................. 100,000 96,500
HCA, Inc.
Sec Notes.
9.13% due 11/15/14*................. 25,000 26,719
46
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 3)
-----------------------------------------------------------------
CORPORATE BONDS & NOTES (continued)
Medical-Hospitals (continued)
HCA, Inc.
Sec. Notes
9.25% due 11/15/16*........................ $ 95,000 $102,481
--------
225,700
--------
Medical-Wholesale Drug Distribution -- 0.1%
Cardinal Health, Inc.
Senior Notes
5.80% due 10/15/16*........................ 110,000 109,599
--------
Metal Processors & Fabrication -- 0.1%
Timken Co.
Notes
5.75% due 02/15/10......................... 96,000 95,909
--------
Metal-Aluminum -- 0.1%
Alcoa, Inc.
Bonds
5.90% due 02/01/27......................... 84,000 81,978
Alcoa, Inc.
Bonds
6.50% due 06/15/18......................... 56,000 59,095
--------
141,073
--------
Metal-Diversified -- 0.0%
Freeport-McMoRan Copper & Gold, Inc.
Senior Notes
8.38% due 04/01/17......................... 45,000 48,656
--------
Multimedia -- 0.6%
Belo Corp.
Senior Notes
6.75% due 05/30/13......................... 60,000 63,099
Cox Enterprises, Inc.
Notes
7.88% due 09/15/10*........................ 205,000 220,248
News America, Inc.
Company Guar. Bonds
7.30% due 04/30/28......................... 80,000 86,599
Time Warner Entertainment Co. LP
Debentures
8.38% due 03/15/23......................... 356,000 420,816
Time Warner, Inc.
Company Guar. Notes
6.75% due 04/15/11......................... 60,000 63,232
Viacom, Inc.
Senior Notes
6.88% due 04/30/36......................... 50,000 50,399
--------
904,393
--------
Office Automation & Equipment -- 0.1%
Pitney Bowes, Inc.
Notes
5.25% due 01/15/37......................... 110,000 107,393
--------
Oil Companies-Exploration & Production -- 0.2%
Chesapeake Energy Corp.
Company Guar. Notes
7.50% due 09/15/13......................... 175,000 182,875
Principal Value
Security Description Amount (Note 3)
---------------------------------------------------------------------
Oil Companies-Exploration & Production (continued)
Devon Energy Corp.
Company Guar. Debentures
7.95% due 04/15/32............................. $120,000 $143,908
--------
326,783
--------
Oil Companies-Integrated -- 0.2%
Hess Corp.
Notes
7.13% due 03/15/33............................. 145,000 156,858
Hess Corp.
Bonds
7.88% due 10/01/29............................. 80,000 92,281
--------
249,139
--------
Oil Refining & Marketing -- 0.1%
The Premcor Refining Group, Inc..
Company Guar. Notes
6.75% due 05/01/14............................. 180,000 187,520
--------
Oil-Field Services -- 0.1%
Hanover Compressor Co.
Senior Notes
9.00% due 06/01/14............................. 85,000 92,012
--------
Paper & Related Products -- 0.2%
Bowater, Inc.
Notes
6.50% due 06/15/13............................. 75,000 67,688
Georgia-Pacific Corp.
Company Guar. Notes
7.00% due 01/15/15*............................ 30,000 30,150
Georgia-Pacific Corp.
Company Guar. Notes
7.13% due 01/15/17*............................ 10,000 10,025
Plum Creek Timberlands LP
Company Guar. Notes
5.88% due 11/15/15............................. 103,000 102,341
Temple-Inland, Inc.
Bonds
6.63% due 01/15/18............................. 60,000 63,075
--------
273,279
--------
Pipelines -- 0.4%
CenterPoint Energy Resources Corp.
Notes
7.75% due 02/15/11............................. 130,000 140,565
Copano Energy LLC
Company Guar. Notes
8.13% due 03/01/16............................. 95,000 98,325
Duke Energy Field Services LLC
Notes
6.88% due 02/01/11............................. 60,000 63,145
Dynegy-Roseton Danskammer
Pass Through Certs.
Series B
7.67% due 11/08/16............................. 45,000 47,700
47
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 3)
---------------------------------------------------------
CORPORATE BONDS & NOTES (continued)
Pipelines (continued)
El Paso Natural Gas Co.
Senior Notes
5.95% due 04/15/17*................. $ 88,000 $ 88,327
Enbridge Energy Partners LP
Senior Notes
5.88% due 12/15/16.................. 38,000 38,177
ONEOK Partners LP
Company Guar. Notes
6.15% due 10/01/16.................. 55,000 56,229
Southern Natural Gas Co.
Notes
5.90% due 04/01/17*................. 41,000 41,000
Williams Cos., Inc.
Senior Notes
7.88% due 09/01/21.................. 90,000 99,000
--------
672,468
--------
Precious Metals -- 0.1%
Barrick Gold Finance, Inc.
Company Guar. Debentures
7.50% due 05/01/07.................. 97,000 97,145
--------
Private Corrections -- 0.0%
Corrections Corp. of America
Company Guar. Notes
6.25% due 03/15/13.................. 45,000 45,000
--------
Publishing-Newspapers -- 0.1%
Knight Ridder, Inc.
Debentures
6.88% due 03/15/29.................. 70,000 65,038
Knight Ridder, Inc.
Debentures
7.15% due 11/01/27.................. 75,000 71,585
--------
136,623
--------
Radio -- 0.1%
Chancellor Media Corp.
Company Guar. Notes
8.00% due 11/01/08.................. 182,000 188,574
--------
Real Estate Investment Trusts -- 0.4%
AvalonBay Communities, Inc.
Senior Notes
5.75% due 09/15/16.................. 110,000 111,452
Health Care Property Investors, Inc.
Senior Notes
5.65% due 12/15/13.................. 100,000 99,322
Heritage Property Investment Trust
Notes
4.50% due 10/15/09.................. 60,000 58,869
Mack-Cali Realty LP
Bonds
5.80% due 01/15/16.................. 60,000 60,404
New Plan Excel Realty Trust
Senior Notes
4.50% due 02/01/11.................. 110,000 106,306
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------
Real Estate Investment Trusts (continued)
Reckson Operating Partnership LP
Senior Notes
6.00% due 03/31/16.................... $ 35,000 $ 34,404
Simon Property Group LP
Notes
5.00% due 03/01/12.................... 34,000 33,678
Simon Property Group LP
Notes
5.38% due 08/28/08.................... 40,000 39,998
Vornado Realty LP
Notes
4.50% due 08/15/09.................... 60,000 58,801
--------
603,234
--------
Recycling -- 0.0%
Aleris International, Inc.
Senior Notes
9.00% due 12/15/14*(8)................ 45,000 47,475
Aleris International, Inc.
Senior Sub. Notes
10.00% due 12/15/16*.................. 20,000 21,000
--------
68,475
--------
Research & Development -- 0.0%
Alion Science and Technology Corp.
Senior Notes
10.25% due 02/01/15*.................. 45,000 46,350
--------
Retail-Building Products -- 0.1%
Home Depot, Inc.
Senior Notes
5.88% due 12/16/36.................... 100,000 95,343
--------
Retail-Discount -- 0.1%
Wal-Mart Stores, Inc.
Senior Notes
5.88% due 04/05/27.................... 130,000 129,652
--------
Retail-Drug Store -- 0.1%
CVS Lease Pass Through Trust
Pass Through Certs.
6.04% due 12/10/28*................... 119,390 120,752
--------
Savings & Loans/Thrifts -- 0.4%
Independence Community Bank Corp.
Notes
3.50% due 06/20/13(4)................. 64,000 62,656
Sovereign Bancorp, Inc.
Senior Notes
4.80% due 09/01/10.................... 206,000 202,572
Washington Mutual Bank
Sub. Notes
5.50% due 01/15/13.................... 138,000 137,717
Washington Mutual Preferred Funding II
Bonds
6.67% due 12/31/49*(4)................ 155,000 152,117
48
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 3)
-------------------------------------------------------
CORPORATE BONDS & NOTES (continued)
Savings & Loans/Thrifts (continued)
Western Financial Bank
Senior Debentures
9.63% due 05/15/12................ $126,000 $137,055
--------
692,117
--------
Special Purpose Entities -- 0.5%
BAE Systems Holdings, Inc.
Notes
5.20% due 08/15/15*............... 175,000 171,391
Capital One Capital IV
Company Guar. Notes
6.75% due 02/17/37................ 65,000 62,275
Consolidated Communications
Illinois/Texas Holdings, Inc.
Senior Notes
9.75% due 04/01/12................ 159,000 168,341
Cyrus Reinsurance Holdings SPC
Senior Notes
6.36% due 09/01/08*(4)(5)......... 76,000 75,810
Norbord Delaware GP I
Company Guar. Notes
6.45% due 02/15/17*............... 49,000 49,601
Pricoa Global Funding I
Notes
5.30% due 09/27/13*............... 110,000 110,179
Principal Life Global Funding I
Sec. Notes
5.25% due 01/15/13*............... 184,000 183,640
--------
821,237
--------
Steel-Producer -- 0.1%
International Steel Group, Inc.
Senior Notes
6.50% due 04/15/14................ 130,000 135,362
--------
Telecom Services -- 0.1%
Bellsouth Telecommunications, Inc.
Debentures
7.00% due 12/01/95................ 104,000 106,709
Qwest Corp.
Senior Notes
7.50% due 10/01/14................ 65,000 68,575
--------
175,284
--------
Telephone-Integrated -- 0.4%
AT&T Corp.
Senior Notes
7.30% due 11/15/11................ 63,000 68,390
Citizens Communications Co.
Bonds
7.13% due 03/15/19*............... 25,000 24,750
GTE Northwest, Inc.
Debentures
5.55% due 10/15/08................ 70,000 70,204
LCI International, Inc.
Senior Notes
7.25% due 06/15/07................ 140,000 140,350
Principal Value
Security Description Amount (Note 3)
-------------------------------------------------------------
Telephone-Integrated (continued)
New England Telephone & Telegraph Co.
Debentures
7.88% due 11/15/29................... $ 80,000 $ 89,940
Sprint Capital Corp.
Company Guar. Notes
6.88% due 11/15/28................... 120,000 119,506
Verizon Communications, Inc.
Senior Notes
6.25% due 04/01/37................... 65,000 64,383
Verizon New York, Inc.
Debentures
6.88% due 04/01/12................... 102,000 107,645
-----------
685,168
-----------
Television -- 0.1%
Paxson Communication Corp.
Sec. Notes
11.61% due 01/15/13*(1).............. 55,000 57,337
Young Broadcasting, Inc.
Company Guar. Notes
10.00% due 03/01/11.................. 25,000 24,625
-----------
81,962
-----------
Transport-Air Freight -- 0.3%
Atlas Air, Inc.
Pass Through Certs.
Series 1991-1, Class B
7.63% due 01/02/15................... 366,911 406,354
-----------
Transport-Rail -- 0.1%
Burlington Northern Santa Fe Corp.
Debentures
7.29% due 06/01/36................... 71,000 79,268
Norfolk Southern Corp.
Senior Notes
7.70% due 05/15/17................... 120,000 133,734
-----------
213,002
-----------
Transport-Services -- 0.1%
FedEx Corp.
Company Guar. Notes
5.50% due 08/15/09................... 55,000 55,420
Ryder System, Inc.
Notes
5.85% due 03/01/14................... 32,000 31,943
Ryder System, Inc.
Notes
5.85% due 11/01/16................... 100,000 99,142
-----------
186,505
-----------
Total Corporate Bonds & Notes
(cost $18,482,877)................... 18,728,862
-----------
49
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 3)
--------------------------------------------------------
FOREIGN CORPORATE BONDS & NOTES -- 3.6%
Banks-Commercial -- 0.4%
Banco Continental de Panama SA
Notes
6.63% due 12/01/10*................ $ 35,000 $ 35,107
Barclays Bank PLC
Sub. Notes
5.93% due 12/31/49*(4)............. 130,000 133,125
Caisse Nationale des Caisses
d'Epargne et de Prevoyance Notes
4.96% due 12/30/49................. 109,000 89,925
NIB Capital Bank
Bonds
5.82% due 12/31/49*(4)............. 60,000 59,567
Royal Bank of Scotland Group PLC
Bonds
7.65% due 08/31/49(2).............. 160,000 185,150
Societe Generale
Senior Sub. Notes
5.92% due 12/31/49*(4)............. 130,000 129,922
--------
632,796
--------
Banks-Money Center -- 0.2%
HBOS Capital Funding LP
Company Guar. Notes
6.85% due 03/29/49................. 200,000 202,260
Mizuho Financial Group Cayman, Ltd.
Bank Guar. Notes
8.38% due 12/29/49................. 145,000 153,251
National Westminster Bank PLC
Sub. Notes
7.75% due 04/29/49(4).............. 55,000 55,524
--------
411,035
--------
Beverages-Wine/Spirits -- 0.1%
Diageo Capital PLC
Company Guar. Notes
5.13% due 01/30/13................. 110,000 109,465
--------
Brewery -- 0.1%
SABMiller PLC
Notes
6.50% due 07/01/16*................ 100,000 105,675
--------
Broadcast Services/Program -- 0.1%
Grupo Televisa SA
Senior Notes
6.63% due 03/18/25................. 139,000 145,016
--------
Building Products-Cement -- 0.1%
C8 Capital SPV, Ltd.
Notes
6.64% due 12/31/49*(4)............. 221,000 218,399
--------
Cellular Telecom -- 0.1%
America Movil SA de CV
Bonds
6.38% due 03/01/35................. 112,000 110,327
--------
Cruise Lines -- 0.0%
Royal Caribbean Cruises, Ltd.
Senior Notes
7.00% due 06/15/13................. 70,000 72,332
--------
Principal Value
Security Description Amount (Note 3)
--------------------------------------------------------------
Diversified Manufactured Operations -- 0.1%
Tyco International Group SA
Company Guar. Notes
6.00% due 11/15/13...................... $120,000 $126,143
--------
Diversified Minerals -- 0.1%
BHP Billiton Finance, Ltd.
Company Guar. Notes
5.40% due 03/29/17...................... 130,000 129,011
--------
Electric-Integrated -- 0.1%
Empresa Nacional de Electricidad SA
Bonds
7.33% due 02/01/37...................... 84,000 89,918
--------
Financial Guarantee Insurance -- 0.1%
Security Capital Assurance, Ltd.
Bonds
6.88% due 12/31/49*(4)(5)............... 130,000 130,000
--------
Gas-Distribution -- 0.1%
Nakilat, Inc.
Sec. Notes
6.07% due 12/31/33*..................... 85,000 81,981
--------
Insurance-Multi-line -- 0.2%
Aegon NV
Sub. Notes
5.31% due 07/29/49...................... 156,000 132,772
AXA SA
Sub. Notes
6.38% due 12/14/49*(4).................. 85,000 81,587
ING Groep NV
Bonds
5.78% due 12/29/49(4)................... 225,000 223,847
--------
438,206
--------
Investment Companies -- 0.1%
Canadian Oil Sands, Ltd.
Notes
5.80% due 08/15/13*..................... 124,000 124,447
--------
Medical-Drugs -- 0.1%
Angiotech Pharmaceuticals, Inc.
Company Guar. Notes
7.75% due 04/01/14...................... 55,000 50,737
Angiotech Pharmaceuticals, Inc.
Senior Notes
9.11% due 12/01/13*(1).................. 15,000 15,319
Elan Finance PLC
Company Guar. Bonds
7.75% due 11/15/11...................... 70,000 68,775
--------
134,831
--------
Oil Companies-Exploration & Production -- 0.0%
Nexen, Inc.
Bonds
5.88% due 03/10/35...................... 35,000 32,832
50
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 3)
---------------------------------------------------------------
FOREIGN CORPORATE BONDS & NOTES (continued)
Oil Companies-Exploration & Production (continued)
Nexen, Inc.
Notes
7.88% due 03/15/32....................... $ 28,000 $ 33,147
--------
65,979
--------
Oil Companies-Integrated -- 0.1%
ConocoPhillips Canada Funding Co.
Company Guar. Notes
5.95% due 10/15/36....................... 50,000 50,557
Petro-Canada
Notes
5.95% due 05/15/35....................... 60,000 57,237
--------
107,794
--------
Paper & Related Products -- 0.0%
Abitibi-Consolidated, Inc.
Notes
8.55% due 08/01/10....................... 45,000 45,562
--------
Pipelines -- 0.1%
Kinder Morgan Finance Co. ULC
Company Guar. Notes
5.70% due 01/05/16....................... 105,000 98,449
--------
Real Estate Operations & Development -- 0.1%
Brookfield Asset Management, Inc.
Notes
8.13% due 12/15/08....................... 157,000 164,302
--------
Satellite Telecom -- 0.1%
Intelsat Bermuda, Ltd.
Senior Notes
8.87% due 01/15/15*(1)................... 65,000 66,300
Intelsat, Ltd.
Senior Notes
6.50% due 11/01/13....................... 50,000 44,125
--------
110,425
--------
Special Purpose Entities -- 0.6%
Aries Vermoegensverwaltungs GmbH
Bonds
9.60% due 10/25/14....................... 250,000 319,225
Hybrid Capital Funding I LP
Sub. Notes
8.00% due 04/29/49....................... 286,000 300,383
Rio Tinto Finance USA, Ltd.
Notes
2.63% due 09/30/08....................... 55,000 53,018
SMFG Preferred Capital Ltd.
Bonds
6.08% due 01/29/49*(4)................... 121,000 121,235
SovRisc BV
Notes
4.63% due 10/31/08*...................... 133,000 132,088
--------
925,949
--------
Principal Value
Security Description Amount (Note 3)
----------------------------------------------------------
Telecom Services -- 0.3%
Telenet Group Holdings NV
Disc. Notes
11.50% due 06/15/14*(2)........... $121,000 $ 113,437
TELUS Corp.
Notes
7.50% due 06/01/07................ 143,000 143,453
TELUS Corp.
Notes
8.00% due 06/01/11................ 238,000 260,664
----------
517,554
----------
Telephone-Integrated -- 0.2%
British Telecommunications PLC
Bonds
8.63% due 12/15/30................ 130,000 178,492
Telecom Italia Capital SA
Company Guar. Notes
4.00% due 01/15/10................ 115,000 111,105
Telecom Italia Capital SA
Company Guar. Bonds
5.25% due 10/01/15................ 55,000 52,181
----------
341,778
----------
Transport-Rail -- 0.1%
Canadian National Railway Co.
Notes
6.38% due 10/15/11................ 130,000 135,778
----------
Total Foreign Corporate Bonds & Notes
(cost $5,556,823)................. 5,573,152
----------
FOREIGN GOVERNMENT AGENCIES -- 2.0%
Sovereign -- 2.0%
Federal Republic of Brazil
Notes
8.00% due 01/15/18................ 200,000 225,900
Federal Republic of Brazil
Bonds
10.50% due 07/14/14............... 205,000 263,425
Republic of Argentina
Bonds
5.48% due 08/03/12................ 230,000 165,255
Republic of Argentina
Notes
8.28% due 12/31/33................ 363,670 422,585
Republic of Turkey
Notes
9.00% due 06/30/11................ 190,000 210,900
Republic of Turkey
Senior Notes
11.88% due 01/15/30............... 380,000 583,300
Republic of Venezuela
Notes
8.50% due 10/08/14................ 100,000 111,350
Republic of Venezuela
Bonds
9.25% due 09/15/27................ 500,000 628,750
51
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 3)
-----------------------------------------------------------
FOREIGN CORPORATE BONDS & NOTES (continued)
Sovereign (continued)
Russian Federation
Bonds
5.00% due 03/31/30............... $ 350,000 $ 397,215
Russian Federation
Bonds
5.00% due 03/31/30*(2)........... 125,000 141,875
-----------
Total Foreign Government Agencies
(cost $2,733,426)................ 3,150,555
-----------
U.S. GOVERNMENT AGENCIES -- 13.5%
Federal Home Loan Mtg. Corp. -- 6.7%
4.50% due 04/01/19................ 1,403,211 1,362,225
5.00% due 05/01/34................ 31,024 30,040
5.00% due 05/01/34................ 831,788 805,398
5.00% due 06/01/34................ 1,364,960 1,321,655
5.00% due 06/01/34................ 169,592 164,211
5.00% due 11/01/35................ 1,024,515 991,141
5.00% due 04/01/36................ 253,469 244,967
5.00% due 11/01/36................ 443,961 429,069
5.50% due 07/01/34................ 588,240 583,046
5.72% due 08/01/36(1)............. 1,404,006 1,410,590
5.82% due 01/01/37(1)............. 467,538 470,373
5.85% due 01/01/37(1)............. 274,893 277,640
6.00% due 12/01/33................ 970,504 983,353
6.00% due 08/01/36................ 485,161 489,070
6.50% due 03/01/36................ 319,347 325,674
6.50% due 05/01/36................ 10,307 10,511
6.50% due December TBA............ 325,000 331,589
7.00% due 04/01/32................ 167,301 173,597
-----------
10,404,149
-----------
Federal National Mtg. Assoc. -- 6.1%
5.00% due 07/01/18................ 803,877 794,891
5.00% due 08/01/18................ 173,026 171,092
5.50% due 11/01/17................ 399,161 401,126
5.50% due 12/01/33................ 993,040 984,903
5.50% due 02/01/36(1)............. 349,585 351,907
5.50% due 11/01/36................ 516,885 511,494
5.50% due 11/01/36................ 957,659 947,672
5.50% due 12/01/36................ 1,068,161 1,052,447
5.50% due December TBA............ 887,000 877,576
6.00% due 06/01/17................ 300,290 305,638
6.00% due 12/01/33................ 94,810 95,942
6.00% due 11/01/36................ 1,033,645 1,037,435
6.00% due December TBA............ 1,500,000 1,510,782
6.50% due 09/01/10................ 88,226 89,680
6.50% due 09/01/32................ 315,082 323,943
6.50% due 07/01/36................ 132,914 135,589
-----------
9,592,117
-----------
Principal Value
Security Description Amount (Note 3)
-------------------------------------------------------------------------
Government National Mtg. Assoc. -- 0.7%
5.50% due 05/15/33............................ $ 511,390 $ 509,258
5.50% due 12/15/33............................ 62,366 62,105
5.50% due 12/15/33............................ 312,179 310,877
7.50% due 01/15/32............................ 147,101 153,589
------------
1,035,829
------------
Total U.S. Government Agencies
(cost $21,430,947)........................... 21,032,095
------------
Total Long-Term Investment Securities
(cost $148,931,495).......................... 156,836,643
------------
REPURCHASE AGREEMENTS -- 1.4%
Agreement with State Street Bank & Trust Co.,
bearing interest at 3.00%, dated 03/31/07,
to be repurchased 04/02/07 in the amount
of $265,066 and collateralized by $265,000
of Federal National Mtg. Assoc. Bonds,
bearing interest at 5.375%, due 07/18/11
and having an approximate value of
$272,619..................................... 265,000 265,000
State Street Bank & Trust Co. Joint
Repurchase Agreement(9)...................... 1,888,000 1,888,000
------------
Total Repurchase Agreements
(cost $2,153,000)............................ 2,153,000
------------
TOTAL INVESTMENTS
(cost $151,084,495)(10)...................... 101.9% 158,989,643
Liabilities in excess of other assets........... (1.9) (2,990,735)
---------- ------------
NET ASSETS -- 100.0% $155,998,908
========== ============
Bond & Notes Sold Short -- (0.6%)
U.S. Government Agencies -- (0.6%)
Federal Home Loan Mtg. Corp.
5.00% due April TBA
(Proceeds $638,344).......................... $ (660,000) $ (637,725)
========== ============
- --------
+ Non-income producing security
* Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be sold in transactions exempt from
registration, normally to qualified institutional buyers. The Fund has no
right to demand registration of these securities. At March 31, 2007, the
aggregate value of these securities was $7,407,286 representing 4.7% of
net assets. Unless otherwise indicated these securities are not considered
to be illiquid.
(1) 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, 2007
(2) "Step-up" security where the rate increases ("steps-up") at a
predetermined rate. Rate shown reflects the increased rate.
(3) Commercial Mortgaged Back Security
(4) Variable Rate Security -- the rate reflected is as of March 31, 2007,
maturity date reflects the stated maturity date.
52
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (continued)
(5) Fair valued security; see Note 3
(6) Illiquid security
(7) Bond in default
(8) PIK ("Payment-in-Kind") security. Bond or preferred stock that pays
interest/dividends in the form of additional bonds or preferred stocks.
(9) See Note 3 for details of Joint Repurchase Agreement
(10) See Note 7 for cost of investment on a tax basis
(11) 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 3. 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, 2007, the Balanced Assets fund held the following restricted
security:
Market
Value % of
Acquisition Principal Acquisition Market Per Par Net
Name Date Amount Cost Value Amount Assets
---- ----------- --------- ----------- ------ ------- ------
Southern Energy
7.90% due
07/15/09...... 01/10/2006 150,000 $0 $0 $0 0.00%
ADR --American Depository Receipt
TBA --Securities purchased on a forward commitment basis with an appropriate
principal amount and no definitive maturity date. The actual principal
and maturity date will be determined upon settlement date.
See Notes to Financial Statements
53
SunAmerica International Equity Fund
PORTFOLIO PROFILE -- March 31, 2007 -- (unaudited)
Industry Allocation*
Banks-Commercial.................... 21.3%
Medical-Drugs....................... 10.7
Auto-Cars/Light Trucks.............. 5.4
Building-Heavy Construction......... 4.3
Electric-Integrated................. 4.1
Medical Products.................... 3.8
Oil-Field Services.................. 3.8
Insurance-Multi-line................ 3.4
Chemicals-Diversified............... 2.9
Soap & Cleaning Preparation......... 2.8
Telephone-Integrated................ 2.5
Diversified Manufactured Operations. 2.3
Advertising Services................ 2.2
Cellular Telecom.................... 2.1
Electric Products-Misc.............. 2.1
Electronic Components-Misc.......... 2.0
Office Automation & Equipment....... 2.0
Oil Companies-Integrated............ 1.7
Aerospace/Defense................... 1.5
Repurchase Agreements............... 1.5
Tobacco............................. 1.4
Electronic Components-Semiconductors 1.3
Circuit Boards...................... 1.2
Enterprise Software/Service......... 1.2
Finance-Leasing Companies........... 1.2
Machinery-Construction & Mining..... 1.2
Real Estate Operations & Development 1.2
Agricultural Chemicals.............. 1.1
Gas-Distribution.................... 0.9
Insurance-Property/Casualty......... 0.9
Diversified Minerals................ 0.8
E-Commerce/Products................. 0.8
Food-Retail......................... 0.8
Beverages-Non-alcoholic............. 0.7
Footwear & Related Apparel.......... 0.7
Machine Tools & Related Products.... 0.7
Steel-Producers..................... 0.7
Food-Misc........................... 0.6
Multimedia.......................... 0.6
Metal Processors & Fabrication...... 0.3
-----
100.7%
=====
- --------
* Calculated as a percentage of Net Assets
Country Allocation*
Japan......... 22.8%
Germany....... 16.1
United Kingdom 13.4
France........ 8.1
Switzerland... 7.2
Italy......... 6.7
Spain......... 5.0
Australia..... 4.3
Norway........ 3.1
Greece........ 2.6
Ireland....... 2.5
Luxembourg.... 1.5
United States. 1.5
Belgium....... 1.2
Singapore..... 1.2
Hong Kong..... 0.9
Brazil........ 0.8
Malaysia...... 0.8
Cayman Islands 0.7
Mexico........ 0.3
-----
100.7%
=====
54
SunAmerica International Equity Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited)
Value
Security Description Shares (Note 3)
---------------------------------------------
COMMON STOCK -- 99.2%
Australia -- 4.3%
BHP Billiton, Ltd........................... 39,300 $ 950,431
CSL, Ltd.................................... 22,000 1,466,203
Publishing & Broadcasting, Ltd.............. 45,300 727,547
QBE Insurance Group, Ltd.................... 45,200 1,153,459
Woolworths, Ltd............................. 47,680 1,048,933
-----------
5,346,573
-----------
Belgium -- 1.2%
KBC Groep NV................................ 11,720 1,457,745
-----------
Brazil -- 0.8%
Submarino SA................................ 28,000 943,164
-----------
Cayman Islands -- 0.7%
Prime Success International Group, Ltd...... 748,000 808,933
-----------
France -- 8.1%
BNP Paribas SA.............................. 28,460 2,972,650
Renault SA.................................. 17,600 2,058,385
Sanofi-Aventis.............................. 28,280 2,459,337
Vinci SA.................................... 16,000 2,479,765
-----------
9,970,137
-----------
Germany -- 16.1%
Allianz SE.................................. 10,400 2,135,468
Bayer AG.................................... 55,020 3,516,167
DaimlerChrysler AG.......................... 12,200 1,000,659
Deutsche Bank AG............................ 23,800 3,206,029
Merck KGaA.................................. 25,148 3,242,489
RWE AG...................................... 22,900 2,422,499
SAP AG...................................... 33,000 1,471,051
Siemens AG.................................. 26,400 2,822,021
-----------
19,816,383
-----------
Greece -- 2.6%
Coca-Cola Hellenic Bottling Co. SA+......... 20,420 859,259
Hellenic Telecommunications
Organization SA+........................... 30,900 845,369
National Bank of Greece SA.................. 28,700 1,522,054
-----------
3,226,682
-----------
Hong Kong -- 0.9%
Hong Kong & China Gas Co., Ltd.............. 485,000 1,083,778
Peregrine Investments Holdings, Ltd.+(2)(3). 91,000 0
-----------
1,083,778
-----------
Ireland -- 2.5%
Allied Irish Banks PLC...................... 104,500 3,099,038
-----------
Italy -- 6.7%
Banco Popolare di Verona e Novara SCRL...... 48,300 1,500,126
Saipem SpA.................................. 98,840 2,878,372
UniCredito Italiano SpA..................... 407,690 3,880,366
-----------
8,258,864
-----------
Japan -- 22.8%
Canon, Inc.................................. 45,700 2,454,863
Casio Computer Co., Ltd..................... 115,400 2,526,578
Daiichi Sankyo Co., Ltd..................... 113,100 3,464,791
Value
Security Description Shares (Note 3)
------------------------------------------------------------
Japan (continued)
Elpida Memory, Inc.+.................. 41,100 $ 1,593,915
FANUC, Ltd............................ 26,900 2,504,184
Ibiden Co., Ltd....................... 27,900 1,446,614
Isuzu Motors, Ltd..................... 81,000 406,237
Japan Tobacco, Inc.................... 345 1,695,137
JFE Holdings, Inc..................... 15,200 899,050
Komatsu, Ltd.......................... 72,100 1,517,380
Mori Seiki Co., Ltd................... 35,700 849,784
ORIX Corp............................. 5,660 1,474,559
Sumitomo Mitsui Financial Group, Inc.. 220 1,997,624
Toho Zinc Co., Ltd.................... 41,000 371,241
Tokyo Electric Power Co., Inc......... 47,500 1,624,448
Toyota Motor Corp..................... 50,000 3,203,496
------------
28,029,901
------------
Luxembourg -- 1.5%
Acergy SA............................. 86,600 1,848,601
------------
Malaysia -- 0.8%
Tenaga Nasional Bhd................... 299,400 987,176
------------
Mexico -- 0.3%
Axtel SA de CV+....................... 92,200 366,687
------------
Norway -- 3.1%
DNB NOR ASA........................... 115,470 1,629,950
Norsk Hydro ASA....................... 64,400 2,134,906
------------
3,764,856
------------
Singapore -- 1.2%
CapitaLand, Ltd....................... 288,000 1,518,637
------------
Spain -- 5.0%
Banco Bilbao Vizcaya Argentaria SA.... 134,790 3,309,489
Grupo Ferrovial SA.................... 27,900 2,823,219
------------
6,132,708
------------
Switzerland -- 7.2%
Nestle SA............................. 2,000 778,916
Nobel Biocare Holding AG.............. 6,200 2,260,297
Novartis AG........................... 44,100 2,529,540
Roche Holding AG...................... 10 1,769
Syngenta AG........................... 6,800 1,301,074
Zurich Financial Services AG.......... 6,900 1,991,668
------------
8,863,264
------------
United Kingdom -- 13.4%
BAE Systems PLC....................... 210,700 1,907,279
BT Group PLC.......................... 315,400 1,885,254
Reckitt Benckiser PLC................. 66,600 3,467,815
Royal Bank of Scotland Group PLC...... 41,900 1,635,865
Smith & Nephew PLC.................... 185,600 2,359,404
Vodafone Group PLC ADR................ 94,800 2,546,328
WPP Group PLC......................... 176,800 2,678,951
------------
16,480,896
------------
United States -- 0.0%
SoftBrands, Inc.+..................... 40 87
------------
Total Long-Term Investment Securities
(cost $107,597,712).................. 122,004,110
------------
55
SunAmerica International Equity Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 3)
-------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 1.5%
Repurchase Agreement -- 1.5%
Agreement with State Street Bank & Trust Co.,
bearing interest at 3.00%, dated 03/31/07,
to be repurchased 04/02/07 in the amount
of $1,840,460 and collateralized by
$1,825,000 of Federal Farm Credit Bank
Bonds, bearing interest at 5.38%, due
07/18/11 and having an approximate value
of $1,877,469
(cost $1,840,000)............................ $1,840,000 $ 1,840,000
------------
TOTAL INVESTMENTS --
(cost $109,437,712)(1)....................... 100.7% 123,844,110
Liabilities in excess of other assets........... (0.7) (850,404)
---------- ------------
NET ASSETS -- 100.0% $122,993,706
========== ============
- --------
+ Non-income producing security
(1) See Notes 7 for cost of investment on a tax basis
(2) Fair valued security. See Note 3.
(3) Illiquid security
ADR American Despository Receipt
See Notes to Financial Statements
56
SunAmerica Value Fund
PORTFOLIO PROFILE -- March 31, 2007 -- (unaudited)
Industry Allocation*
Finance-Investment Banker/Broker.... 12.5%
Banks-Super Regional................ 11.1
Oil Companies-Integrated............ 10.4
Telephone-Integrated................ 5.8
Electric-Integrated................. 4.2
Medical-Drugs....................... 4.2
Diversified Manufactured Operations. 4.0
Oil Refining & Marketing............ 2.7
Multimedia.......................... 2.5
Banks-Fiduciary..................... 2.2
Finance-Credit Card................. 2.1
Telecom Services.................... 2.1
Computers........................... 2.0
Cosmetics & Toiletries.............. 2.0
Finance-Mortgage Loan/Banker........ 1.9
Insurance-Multi-line................ 1.6
Oil-Field Services.................. 1.6
Aerospace/Defense-Equipment......... 1.5
Brewery............................. 1.5
Distribution/Wholesale.............. 1.5
Electric Products-Misc.............. 1.5
Food-Misc........................... 1.5
Medical-HMO......................... 1.5
Tobacco............................. 1.5
Medical Products.................... 1.4
Non-Hazardous Waste Disposal........ 1.4
Repurchase Agreements............... 1.4
Retail-Discount..................... 1.4
Cable TV............................ 1.3
Chemicals-Diversified............... 1.1
Paper & Related Products............ 1.1
Finance-Consumer Loans.............. 1.0
Industrial Gases.................... 1.0
Insurance-Property/Casualty......... 1.0
Retail-Building Products............ 1.0
Electronic Components-Semiconductors 0.9
Industrial Automated/Robotic........ 0.9
Metal-Aluminum...................... 0.7
----
99.0%
====
- --------
* Calculated as a percentage of Net Assets
57
SunAmerica Value Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited)
Value
Security Description Shares (Note 3)
----------------------------------------------------------------
COMMON STOCK -- 97.6%
Aerospace/Defense-Equipment -- 1.5%
United Technologies Corp.................. 52,500 $ 3,412,500
-----------
Banks-Fiduciary -- 2.2%
The Bank of New York Co., Inc............. 127,500 5,170,125
-----------
Banks-Super Regional -- 11.1%
Bank of America Corp...................... 194,600 9,928,492
US Bancorp................................ 137,500 4,808,375
Wachovia Corp............................. 120,000 6,606,000
Wells Fargo & Co.......................... 125,000 4,303,750
-----------
25,646,617
-----------
Brewery -- 1.5%
Anheuser-Busch Cos., Inc.................. 66,400 3,350,544
-----------
Cable TV -- 1.3%
Comcast Corp., Class A+................... 117,300 3,043,935
-----------
Chemicals-Diversified -- 1.1%
Dow Chemical Co........................... 56,500 2,591,090
-----------
Computers -- 2.0%
Hewlett-Packard Co........................ 59,000 2,368,260
International Business Machines Corp...... 23,200 2,186,832
-----------
4,555,092
-----------
Cosmetics & Toiletries -- 2.0%
Procter & Gamble Co....................... 72,600 4,585,416
-----------
Distribution/Wholesale -- 1.5%
WESCO International, Inc.+................ 53,400 3,352,452
-----------
Diversified Manufactured Operations -- 4.0%
3M Co..................................... 44,100 3,370,563
General Electric Co....................... 165,300 5,845,008
-----------
9,215,571
-----------
Electric Products-Misc. -- 1.5%
Emerson Electric Co....................... 81,200 3,498,908
-----------
Electric-Integrated -- 4.2%
Duke Energy Corp.......................... 180,500 3,662,345
Exelon Corp............................... 34,100 2,343,011
FPL Group, Inc............................ 58,200 3,560,094
-----------
9,565,450
-----------
Electronic Components-Semiconductors -- 0.9%
Intel Corp................................ 106,500 2,037,345
-----------
Finance-Consumer Loans -- 1.0%
SLM Corp.................................. 55,300 2,261,770
-----------
Finance-Credit Card -- 2.1%
American Express Co....................... 85,900 4,844,760
-----------
Finance-Investment Banker/Broker -- 12.5%
Citigroup, Inc............................ 178,100 9,143,654
J.P. Morgan Chase & Co.................... 160,300 7,755,314
Morgan Stanley............................ 61,100 4,812,236
TD Ameritrade Holding Corp.+.............. 202,300 3,010,224
The Bear Stearns Cos., Inc................ 27,200 4,089,520
-----------
28,810,948
-----------
Value
Security Description Shares (Note 3)
--------------------------------------------------------
Finance-Mortgage Loan/Banker -- 1.9%
Fannie Mae........................ 82,300 $ 4,491,934
-----------
Food-Misc. -- 1.5%
General Mills, Inc................ 57,800 3,365,116
-----------
Industrial Automated/Robotic -- 0.9%
Rockwell Automation, Inc.......... 34,300 2,053,541
-----------
Industrial Gases -- 1.0%
Air Products & Chemicals, Inc..... 32,300 2,388,908
-----------
Insurance-Multi-line -- 1.6%
MetLife, Inc...................... 57,000 3,599,550
-----------
Insurance-Property/Casualty -- 1.0%
Chubb Corp........................ 44,900 2,319,983
-----------
Medical Products -- 1.4%
Johnson & Johnson................. 53,200 3,205,832
-----------
Medical-Drugs -- 4.2%
Bristol-Myers Squibb Co........... 40,500 1,124,280
Novartis AG ADR................... 40,200 2,196,126
Pfizer, Inc....................... 247,800 6,259,428
-----------
9,579,834
-----------
Medical-HMO -- 1.5%
UnitedHealth Group, Inc........... 63,700 3,374,189
-----------
Metal-Aluminum -- 0.7%
Alcoa, Inc........................ 50,500 1,711,950
-----------
Multimedia -- 2.5%
News Corp., Class A............... 153,100 3,539,672
Time Warner, Inc.................. 110,500 2,179,060
-----------
5,718,732
-----------
Non-Hazardous Waste Disposal -- 1.4%
Waste Management, Inc............. 96,600 3,324,006
-----------
Oil Companies-Integrated -- 10.4%
Chevron Corp...................... 81,300 6,012,948
ConocoPhillips.................... 86,000 5,878,100
Exxon Mobil Corp.................. 127,500 9,619,875
Occidental Petroleum Corp......... 48,400 2,386,604
-----------
23,897,527
-----------
Oil Refining & Marketing -- 2.7%
Sunoco, Inc....................... 40,300 2,838,732
Valero Energy Corp................ 53,800 3,469,562
-----------
6,308,294
-----------
Oil-Field Services -- 1.6%
Smith International, Inc.......... 75,400 3,622,970
-----------
Paper & Related Products -- 1.1%
International Paper Co............ 67,900 2,471,560
-----------
Retail-Building Products -- 1.0%
Home Depot, Inc................... 62,400 2,292,576
-----------
Retail-Discount -- 1.4%
Wal-Mart Stores, Inc.............. 70,800 3,324,060
-----------
Telecom Services -- 2.1%
BCE, Inc.......................... 174,300 4,929,204
-----------
58
SunAmerica Value Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Shares/
Principal Value
Security Description Amount (Note 3)
--------------------------------------------------------------
COMMON STOCK (continued)
Telephone-Integrated -- 5.8%
AT&T, Inc........................... 190,750 $ 7,521,273
Verizon Communications, Inc......... 151,000 5,725,920
------------
13,247,193
------------
Tobacco -- 1.5%
Altria Group, Inc................... 40,400 3,547,524
------------
Total Long-Term Investment Securities
(cost $205,907,979)................ 224,717,006
------------
REPURCHASE AGREEMENT -- 1.4%
State Street Bank & Trust Co. Joint
Repurchase Agreement(1)
(cost $3,125,000).................. $3,125,000 3,125,000
------------
TOTAL INVESTMENTS --
(cost $209,032,979)(2)............. 99.0% 227,842,006
Other assets less liabilities......... 1.0 2,331,920
---------- ------------
NET ASSETS -- 100.0% $230,173,926
========== ============
- --------
+ Non-income producing security
(1) See Note 3 for details of Joint Repurchase Agreements.
(2) See Note 7 for cost of investments on a tax basis
ADR --American Depository Receipt
See Notes to Financial Statements
59
Tax Managed Equity Fund
PORTFOLIO PROFILE -- March 31, 2007 -- (unaudited)
INDUSTRY ALLOCATION*
Medical-Biomedical/Gene....................... 6.1%
Computers..................................... 5.5
Electronic Components-Semiconductors.......... 4.5
Finance-Investment Banker/Broker.............. 4.4
Aerospace/Defense-Equipment................... 4.3
Semiconductor Equipment....................... 3.9
Aerospace/Defense............................. 3.5
Banks-Super Regional.......................... 3.3
Agricultural Operations....................... 2.9
Auto-Cars/Light Trucks........................ 2.8
Cellular Telecom.............................. 2.8
Retail-Apparel/Shoe........................... 2.6
X-Ray Equipment............................... 2.6
Insurance-Multi-line.......................... 2.5
Retail-Office Supplies........................ 2.4
Retail-Discount............................... 2.2
Telephone-Integrated.......................... 2.2
Tobacco....................................... 2.2
Internet Security............................. 2.0
Medical Instruments........................... 2.0
Medical-Drugs................................. 2.0
Internet Infrastructure Software.............. 1.9
Medical-HMO................................... 1.9
Networking Products........................... 1.8
Repurchase Agreements......................... 1.8
Non-Ferrous Metals............................ 1.7
Diversified Manufactured Operations........... 1.6
Pharmacy Services............................. 1.6
Casino Services............................... 1.5
Oil Field Machinery & Equipment............... 1.5
Web Portals/ISP............................... 1.5
E-Commerce/Products........................... 1.4
Cosmetics & Toiletries........................ 1.3
Diversified Minerals.......................... 1.3
Diagnostic Kits............................... 1.1
Distribution/Wholesale........................ 1.1
Financial Guarantee Insurance................. 1.1
Industrial Automated/Robotic.................. 1.1
Oil Companies-Integrated...................... 1.1
Oil-Field Services............................ 1.1
Therapeutics.................................. 1.1
Cable TV...................................... 1.0
Semiconductors Components-Intergrated Circuits 1.0
Beverages-Wine/Spirits........................ 0.9
Medical Products.............................. 0.8
Computers-Integrated Systems.................. 0.6
Telecommunication Equipment................... 0.5
-----
100.0%
=====
- --------
* Calculated as a percentage of Net Assets
60
Tax Managed Equity Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited)
Value
Security Description Shares (Note 3)
-------------------------------------------------------------
COMMON STOCK -- 98.2%
Aerospace/Defense -- 3.5%
Boeing Co................................ 13,300 $1,182,503
Spirit Aerosystems Holdings, Inc.,
Class A+................................ 22,700 722,995
----------
1,905,498
----------
Aerospace/Defense-Equipment -- 4.3%
Alliant Techsystems, Inc.+............... 20,600 1,811,152
BE Aerospace, Inc.+...................... 18,000 570,600
----------
2,381,752
----------
Agricultural Operations -- 2.9%
Andersons, Inc........................... 15,000 666,000
Archer-Daniels-Midland Co................ 25,000 917,500
----------
1,583,500
----------
Auto-Cars/Light Trucks -- 2.8%
Toyota Motor Co. ADR..................... 12,000 1,537,920
----------
Banks-Super Regional -- 3.3%
Wachovia Corp............................ 22,000 1,211,100
Wells Fargo & Co......................... 17,000 585,310
----------
1,796,410
----------
Beverages-Wine/Spirits -- 0.9%
Constellation Brands, Inc., Class A+..... 24,000 508,320
----------
Cable TV -- 1.0%
Comcast Corp., Class A+.................. 20,700 537,165
----------
Casino Services -- 1.5%
International Game Technology............ 21,000 847,980
----------
Cellular Telecom -- 2.8%
Leap Wireless International, Inc.+....... 13,000 857,740
NII Holdings, Inc.+...................... 8,800 652,784
----------
1,510,524
----------
Computers -- 5.5%
Apple Computer, Inc.+.................... 20,300 1,886,073
Hewlett-Packard Co....................... 14,000 561,960
International Business Machines Corp..... 6,300 593,838
----------
3,041,871
----------
Computers-Integrated Systems -- 0.6%
NCR Corp.+............................... 7,000 334,390
----------
Cosmetics & Toiletries -- 1.3%
Physicians Formula Holdings, Inc.+....... 5,000 94,400
Procter & Gamble Co...................... 10,000 631,600
----------
726,000
----------
Diagnostic Kits -- 1.1%
Inverness Medical Innovations, Inc.+..... 14,000 612,920
----------
Distribution/Wholesale -- 1.1%
WESCO International, Inc.+............... 9,500 596,410
----------
Diversified Manufactured Operations -- 1.6%
Roper Industries, Inc.................... 15,500 850,640
----------
Diversified Minerals -- 1.3%
BHP Billiton, Ltd. ADR................... 15,000 726,750
----------
Value
Security Description Shares (Note 3)
---------------------------------------------------------------
E-Commerce/Products -- 1.4%
NutriSystem, Inc.+........................ 15,000 $ 786,150
----------
Electronic Components-Semiconductors -- 4.5%
Intel Corp................................ 28,000 535,640
ON Semiconductor Corp.+................... 60,000 535,200
Silicon Motion Technology Corp. ADR+...... 61,000 1,373,720
----------
2,444,560
----------
Finance-Investment Banker/Broker -- 4.4%
Goldman Sachs Group, Inc.................. 8,000 1,653,040
The Bear Stearns Cos., Inc................ 5,000 751,750
----------
2,404,790
----------
Financial Guarantee Insurance -- 1.1%
Ambac Financial Group, Inc................ 6,700 578,813
----------
Industrial Automated/Robotic -- 1.1%
Rockwell Automation, Inc.................. 10,000 598,700
----------
Insurance-Multi-line -- 2.5%
MetLife, Inc.............................. 22,000 1,389,300
----------
Internet Infrastructure Software -- 1.9%
F5 Networks, Inc.+........................ 15,800 1,053,544
----------
Internet Security -- 2.0%
Blue Coat Systems, Inc.+.................. 30,000 1,101,900
----------
Medical Instruments -- 2.0%
Micrus Endovascular Corp.+................ 47,000 1,120,480
----------
Medical Products -- 0.8%
NMT Medical, Inc.+........................ 10,000 136,000
NxStage Medical, Inc.+.................... 22,000 293,040
----------
429,040
----------
Medical-Biomedical/Gene -- 6.1%
Genzyme Corp.+............................ 9,300 558,186
Omrix Biopharmaceuticals, Inc.+........... 52,000 1,990,040
Sangamo Biosciences, Inc.+................ 119,500 812,600
----------
3,360,826
----------
Medical-Drugs -- 2.0%
Gentium SpA ADR+.......................... 12,200 240,218
King Pharmaceuticals, Inc.+............... 15,000 295,050
Novartis AG ADR........................... 10,200 557,226
----------
1,092,494
----------
Medical-HMO -- 1.9%
Health Net, Inc.+......................... 19,000 1,022,390
----------
Networking Products -- 1.8%
Anixter International, Inc.+.............. 10,000 659,400
Polycom, Inc.+............................ 10,000 333,300
----------
992,700
----------
Non-Ferrous Metals -- 1.7%
Energy Resources of Australia, Ltd........ 41,500 933,459
----------
Oil Companies-Integrated -- 1.1%
ConocoPhillips............................ 9,200 628,820
----------
Oil-Field Machinery & Equipment -- 1.5%
National-Oilwell Varco, Inc.+............. 10,300 801,237
----------
61
Tax Managed Equity Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
----------------------------------------------------------------
COMMON STOCK (continued)
Oil-Field Services -- 1.1%
Oceaneering International, Inc.+............ 14,000 $ 589,680
----------
Pharmacy Services -- 1.6%
Medco Health Solutions, Inc.+............... 12,000 870,360
----------
Retail-Apparel/Shoe -- 2.6%
Abercrombie & Fitch Co., Class A............ 8,500 643,280
The Children's Place Retail Stores, Inc.+... 9,500 529,720
Wet Seal, Inc., Class A+.................... 40,000 262,000
----------
1,435,000
----------
Retail-Discount -- 2.2%
Target Corp................................. 20,300 1,202,978
----------
Retail-Office Supplies -- 2.4%
Staples, Inc................................ 50,000 1,292,000
----------
Semiconductor Equipment -- 3.9%
ASML Holding NV+............................ 12,000 297,000
Axcelis Technologies, Inc.+................. 40,000 305,600
FormFactor, Inc.+........................... 14,200 635,450
Varian Semiconductor Equipment Associates,
Inc.+...................................... 17,000 907,460
----------
2,145,510
----------
Semiconductors Components-Intergrated Circuits -- 1.0%
Integrated Device Technology, Inc.+......... 35,000 539,700
----------
Telecommunication Equipment -- 0.5%
Arris Group, Inc.+.......................... 20,000 281,600
----------
Telephone-Integrated -- 2.2%
AT&T, Inc................................... 30,000 1,182,900
----------
Shares/
Principal Value
Security Description Amount (Note 3)
-------------------------------------------------------------
Therapeutics -- 1.1%
BioMarin Pharmaceutical, Inc.+..... 34,000 $ 586,840
-----------
Tobacco -- 2.2%
Altria Group, Inc.................. 14,000 1,229,340
-----------
Web Portals/ISP -- 1.5%
Google, Inc., Class A+............. 1,100 503,976
Yahoo!, Inc.+...................... 10,000 312,900
-----------
816,876
-----------
X-Ray Equipment -- 2.6%
Hologic, Inc.+..................... 25,000 1,441,000
-----------
Total Long-Term Investment Securities
(cost $50,652,593)................ 53,851,037
-----------
REPURCHASE AGREEMENT -- 1.8%
State Street Bank & Trust Co.,
Joint Repurchase Agreement(1)
(cost $1,005,000)................. $1,005,000 1,005,000
-----------
TOTAL INVESTMENTS
(cost $51,657,593)................ 100.0% 54,856,037
Other assets less liabilities........ 0.0 4,719
---------- -----------
NET ASSETS -- 100.0% $54,860,756
========== ===========
- --------
+ Non-income producing security
(1) See Note 3 for details of Joint Repurchase Agreement
(2) See Note 7 for cost of investments on a tax basis
ADR --American Depository Receipt
See Notes to Financial Statements
62
SunAmerica International Small-Cap Fund
PORTFOLIO PROFILE -- March 31, 2007 -- (unaudited)
Industry Allocation*
Building & Construction Products-Misc. 5.4%
Auto/Truck Parts & Equipment-Original. 3.3
Banks-Commercial...................... 3.0
Building & Construction-Misc.......... 3.0
Time Deposits......................... 2.5
Machinery-General Industrial.......... 2.4
Real Estate Operations & Development.. 2.4
Apparel Manufacturers................. 2.2
Medical-Biomedical/Gene............... 2.2
Computers-Integrated Systems.......... 2.1
Diversified Manufactured Operations... 2.1
Retail-Apparel/Shoe................... 2.0
Food-Misc............................. 1.9
Machinery-Electrical.................. 1.9
Miscellaneous Manufacturing........... 1.6
Rental Auto/Equipment................. 1.6
Medical Instruments................... 1.5
Medical-Drugs......................... 1.5
Chemicals-Diversified................. 1.3
Engineering/R&D Services.............. 1.3
Finance-Other Services................ 1.3
Medical Products...................... 1.3
Office Automation & Equipment......... 1.3
Retail-Misc./Diversified.............. 1.3
Distribution/Wholesale................ 1.2
Footwear & Related Apparel............ 1.2
Machinery-Material Handling........... 1.2
Rubber-Tires.......................... 1.2
Audio/Video Products.................. 1.1
Brewery............................... 1.1
Computers............................. 1.1
Machinery-Construction & Mining....... 1.1
Oil-Field Services.................... 1.1
Retail-Restaurants.................... 1.1
Travel Services....................... 1.1
Oil Refining & Marketing.............. 1.0
Retail-Building Products.............. 1.0
Television............................ 1.0
Water................................. 1.0
Diversified Minerals.................. 0.9
Electric-Integrated................... 0.9
Electronic Components-Semiconductors.. 0.9
Enterprise Software/Service........... 0.9
Environmental Consulting & Engineering 0.9
Finance-Investment Banker/Broker...... 0.9
Advertising Sales..................... 0.8
Chemicals-Specialty................... 0.8
E-Commerce/Services................... 0.8
Electronic Components-Misc............ 0.8
Food-Flour & Grain.................... 0.8
Gambling (Non-Hotel).................. 0.8
Hotels/Motels......................... 0.8
Resorts/Theme Parks................... 0.8
Coatings/Paint........................ 0.7
Direct Marketing...................... 0.7
Environmental Monitoring & Detection.. 0.7
Retail-Consumer Electronics........... 0.7
Retail-Discount....................... 0.7
Telecommunication Equipment........... 0.7
Auto-Cars/Light Trucks................ 0.6
Consulting Services......................... 0.6%
Electronics-Military........................ 0.6
Energy-Alternate Sources.................... 0.6
Oil Field Machinery & Equipment............. 0.6
Retail-Automobile........................... 0.6
Appliances.................................. 0.5
Applications Software....................... 0.5
Building-Maintance & Services............... 0.5
Commercial Services......................... 0.5
Engines-Internal Combustion................. 0.5
Human Resources............................. 0.5
Medical-Hospitals........................... 0.5
Motion Pictures & Services.................. 0.5
Beverages-Non-alcoholic..................... 0.4
Building Products-Cement.................... 0.4
Finance-Leasing Companies................... 0.4
Internet Content-Information/News........... 0.4
Medical-Wholesale Drug Distribution......... 0.4
Mining...................................... 0.4
Non-Ferrous Metals.......................... 0.4
Protection/Safety........................... 0.4
Retail-Sporting Goods....................... 0.4
Airport Development/Maintenance............. 0.3
Beverages-Wine/Spirits...................... 0.3
Cellular Telecom............................ 0.3
Cosmetics & Toiletries...................... 0.3
Decision Support Software................... 0.3
Food-Dairy Products......................... 0.3
Investment Management/Advisor Services...... 0.3
Machinery-Print Trade....................... 0.3
Retail-Bookstore............................ 0.3
Shipbuilding................................ 0.3
Transport-Truck............................. 0.3
Warehousing & Harbor Transportation Services 0.3
Computers-Periphery Equipment............... 0.2
E-Services/Consulting....................... 0.2
Electronic Connectors....................... 0.2
Electronic Parts Distribution............... 0.2
Leisure Products............................ 0.2
Printing-Commercial......................... 0.2
Machinery-Farming........................... 0.1
Medical-Generic Drugs....................... 0.1
----
99.1%
====
- --------
* Calculated as a percentage of Net Assets
63
SunAmerica International Small-Cap Fund
PORTFOLIO PROFILE -- March 31, 2007 -- (unaudited) (continued)
Country Allocation*
Japan......... 27.1%
Germany....... 14.7
Sweden........ 6.7
Finland....... 4.8
Denmark....... 4.7
France........ 4.2
United Kingdom 4.1
Ireland....... 3.5
Australia..... 2.8
Italy......... 2.5
United States. 2.5
Bermuda....... 2.2
South Korea... 2.2
Singapore..... 2.1
Greece........ 1.9
Switzerland... 1.9
Cayman Islands 1.7
Norway........ 1.7
Spain......... 1.7
Malaysia...... 1.3
Netherlands... 1.2
China......... 1.1
Austria....... 1.0
Indonesia..... 0.5
Taiwan........ 0.5
Philippines... 0.4
Cyprus........ 0.1
----
99.1%
====
- --------
* Calculated as a percentage of Net Assets
64
SunAmerica International Small-Cap Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited)
Value
Security Description Shares (Note 3)
------------------------------------------------------------------
COMMON STOCK -- 93.7%
Australia -- 2.8%
Bradken, Ltd.................................. 26,826 $ 191,220
Independence Group NL......................... 38,739 155,778
JB Hi-Fi, Ltd................................. 36,632 224,071
Just Group, Ltd............................... 55,133 186,016
Sino Gold, Ltd.+.............................. 26,657 135,017
----------
892,102
----------
Austria -- 1.0%
Andritz AG.................................... 1,251 313,825
----------
Bermuda -- 2.2%
Celestial Nutrifoods, Ltd.+................... 235,000 243,186
Glorious Sun Enterprises, Ltd................. 436,000 212,043
Synear Food Holdings, Ltd.+................... 140,000 184,557
TPV Technology, Ltd........................... 110,000 70,391
----------
710,177
----------
Cayman Islands -- 1.7%
China Milk Products Group, Ltd.+.............. 125,000 103,813
China Rare Earth Holdings, Ltd................ 588,000 144,488
Prime Success International Group, Ltd........ 214,000 231,433
SPG Land Holdings, Ltd.+...................... 85,000 55,807
----------
535,541
----------
China -- 1.1%
First Tractor Co.+............................ 100,000 40,955
Shanghai Jin Jiang International Hotels Group
Co., Ltd.+................................... 428,000 248,139
Travelsky Technology, Ltd..................... 36,000 63,398
----------
352,492
----------
Cyprus -- 0.1%
Marfin Popular Bank Public Co................. 2,132 22,955
----------
Denmark -- 4.7%
Bang & Olufsen A/S, Class B................... 2,770 343,161
Bavarian Nordic A/S+.......................... 1,639 151,331
FLSmidth & Co. A/S............................ 6,354 430,606
Genmab A/S+................................... 3,798 231,513
Royal UNIBREW A/S............................. 3,020 365,470
----------
1,522,081
----------
Finland -- 4.8%
KCI Konecranes Oyj............................ 10,365 347,537
Lassila & Tikanoja Oyj........................ 8,580 288,259
Nokian Renkaat Oyj............................ 13,867 379,747
Ramirent Oyj.................................. 6,443 516,413
----------
1,531,956
----------
France -- 4.2%
Icade+........................................ 4,970 365,154
Ingenico SA+.................................. 6,290 163,933
Neopost SA.................................... 2,644 377,923
Sechilienne SA................................ 3,170 187,425
Teleperformance............................... 5,997 262,043
----------
1,356,478
----------
Value
Security Description Shares (Note 3)
---------------------------------------------------------
Germany -- 11.8%
Bauer AG+............................ 6,714 $ 421,538
Demag Cranes AG...................... 2,849 185,687
ElringKlinger AG..................... 7,387 574,412
Fielmann AG.......................... 6,580 403,280
Francotyp-Postalia Holding AG+....... 1,752 45,170
Kloeckner & Co. AG................... 6,816 374,677
Pfleiderer AG........................ 18,560 540,992
Rational AG.......................... 810 157,166
Software AG.......................... 3,273 279,430
Symrise AG+.......................... 10,027 260,390
Thielert AG+......................... 5,240 162,677
Washtec AG+.......................... 1,177 23,254
Wincor Nixdorf AG.................... 3,960 369,028
----------
3,797,701
----------
Greece -- 1.9%
Athens Stock Exchange SA............. 18,540 425,491
Piraeus Bank SA...................... 5,043 175,154
----------
600,645
----------
Indonesia -- 0.5%
United Tractors Tbk PT............... 199,500 161,786
----------
Ireland -- 3.5%
Grafton Group PLC(1)................. 21,232 319,081
Iaws Group PLC....................... 12,980 301,704
Iaws Group PLC, Class A.............. 2,930 68,183
Kingspan Group PLC................... 13,171 349,251
Norkom Group PLC+.................... 36,550 95,209
----------
1,133,428
----------
Italy -- 2.5%
ASM SpA.............................. 46,680 301,654
Digital Multimedia Technologies SpA+. 2,190 211,397
Piccolo Credito Valtellinese Scarl... 6,830 113,045
Tod's SpA............................ 1,890 164,892
----------
790,988
----------
Japan -- 27.1%
Amano Corp........................... 5,000 61,057
Asahi Soft Drinks Co, Ltd............ 8,500 126,447
Chugoku Marine Paints, Ltd........... 26,000 236,303
Culture Convenience Club Co.......... 18,700 109,972
Daikoku Denki Co, Ltd................ 3,500 63,709
Dena Co., Ltd........................ 47 151,960
Digital Garage, Inc.+................ 36 64,460
Disco Corp........................... 2,200 134,420
Don Quijote Co, Ltd.................. 12,200 239,155
en-japan, Inc........................ 21 106,568
Exedy Corp........................... 8,300 236,660
Fujimi, Inc.......................... 4,700 146,376
Fullcast Co., Ltd.................... 37 91,998
Harmonic Drive Systems, Inc.......... 13 72,811
HIS Co, Ltd.......................... 8,500 244,526
Hisamitsu Pharmaceutical Co., Inc.... 4,900 144,705
65
SunAmerica International Small-Cap Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
--------------------------------------------------------------
COMMON STOCK (continued)
Japan (continued)
Hitachi Systems & Services, Ltd........... 6,300 $ 133,656
Intelligence, Ltd......................... 21 61,125
Iriso Electronics Co., Ltd................ 2,400 73,523
Japan Aviation Electronics Industry, Ltd.. 15,000 187,500
Japan Steel Works, Ltd.................... 16,000 192,396
Kaga Electronics Co, Ltd.................. 3,500 62,818
KaKaKu.com, Inc........................... 40 133,741
Kenedix, Inc.............................. 19 97,064
Koito Manufacturing Co., Ltd.............. 10,000 137,305
Kyoritsu Maintenance Co., Ltd............. 6,300 146,487
Kyowa Exeo Corp........................... 15,000 164,460
La Parler Co., Ltd........................ 38 57,722
Lintec Corp............................... 8,800 173,625
Mani, Inc................................. 1,200 77,699
Milbon Co., Ltd........................... 1,600 49,695
Miraca Holdings, Inc...................... 5,000 104,803
Miraial Co., Ltd.......................... 800 79,633
Modec, Inc................................ 6,300 178,564
Moshi Moshi Hotline, Inc.................. 4,550 210,820
Nabtesco Corp............................. 19,000 249,915
Nichias Corp.............................. 18,000 155,346
Nippon Chemiphar Co, Ltd.+................ 8,000 43,652
Nishimatsuya Chain Co., Ltd............... 4,800 81,059
Nissha Printing Co, Ltd................... 2,000 52,953
Obic Co, Ltd.............................. 910 180,008
Oenon Holdings, Inc....................... 31,000 82,604
Okasan Holdings, Inc...................... 18,000 140,530
Otsuka Corp............................... 1,900 181,874
Park24 Co, Ltd............................ 11,000 147,955
ResortTrust, Inc.......................... 11,400 266,039
Sankyu, Inc............................... 20,000 107,604
Sasebo Heavy Industries Co., Ltd.......... 24,000 91,650
Sato Corp................................. 4,300 86,847
Secom Techno Service Co., Ltd............. 3,000 128,564
St. Marc Holdings Co., Ltd................ 1,800 106,008
Star Micronics Co., Ltd................... 7,900 170,617
Sysmex Corp............................... 4,800 174,338
Taiyo Ink Manufacturing Co., Ltd.......... 3,200 95,044
Teikoku Piston Ring Co., Ltd.............. 13,400 116,215
Telepark Corp............................. 58 84,165
The Kagoshima Bank, Ltd................... 10,000 72,811
Toho Pharmaceutical Co., Ltd.............. 7,200 130,143
Toshiba Machine Co., Ltd.................. 10,000 102,512
Toyo Tanso Co., Ltd....................... 1,600 164,698
Tsumura & Co.............................. 5,200 122,454
UFJ Central Leasing Co., Ltd.............. 2,700 130,601
Unicharm Petcare Corp..................... 1,600 55,669
Union Tool Co............................. 3,100 127,588
USS Co, Ltd............................... 3,070 200,342
Works Applications Co., Ltd.+............. 124 91,653
Xebio Co., Ltd............................ 4,500 125,636
Yamaguchi Financial Group, Inc............ 5,000 67,379
----------
8,688,236
----------
Malaysia -- 1.3%
Cheetah Holdings Bhd...................... 313,800 105,281
IGB Corp. Bhd............................. 188,300 136,698
Value
Security Description Shares (Note 3)
----------------------------------------------------------------
Malaysia (continued)
Muhibbah Engineering (M) Bhd................ 47,300 $ 72,506
Transmile Group Bhd......................... 26,200 99,268
----------
413,753
----------
Netherlands -- 1.2%
Aalberts Industries NV...................... 3,770 372,373
----------
Norway -- 1.7%
ProSafe ASA................................. 22,700 347,318
Sevan Marine ASA+........................... 21,891 192,680
----------
539,998
----------
Philippines -- 0.4%
Chemrez Technologies, Inc................... 107,000 10,977
International Container Term Services, Inc.. 185,600 105,783
----------
116,760
----------
Singapore -- 2.1%
Ho Bee Investment, Ltd...................... 154,000 229,404
Raffles Medical Group, Ltd.................. 188,000 152,417
STATS ChipPAC, Ltd.+........................ 144,000 172,745
United Test and Assembly Center, Ltd.+...... 185,000 110,965
----------
665,531
----------
South Korea -- 2.2%
CJ Internet Corp............................ 5,940 155,950
Hanmi Pharm Co., Ltd........................ 739 95,438
JVM Co., Ltd................................ 2,280 114,630
Korea Zinc Co., Ltd......................... 1,070 114,302
Modetour Network, Inc....................... 2,573 109,123
Sungshin Cement Co., Ltd.................... 5,920 115,153
----------
704,596
----------
Spain -- 1.7%
Banco Pastor SA............................. 15,759 363,141
Mecalux SA.................................. 3,860 190,271
----------
553,412
----------
Sweden -- 6.7%
Elekta AB, Class B.......................... 16,395 295,250
JM AB....................................... 11,970 412,268
Lindab International AB+.................... 16,784 373,763
Modern Times Group AB, Class B+............. 5,326 311,576
Munters AB.................................. 5,380 233,451
Q-Med AB.................................... 10,709 165,632
RaySearch Laboratories AB+.................. 6,530 165,522
rnb Retail and Brands AB.................... 14,980 179,130
----------
2,136,592
----------
Switzerland -- 1.9%
Banque Cantonale Vaudoise+.................. 347 165,197
Basilea Pharmaceutica AG+................... 1,042 242,031
Compagne Financiere Tradition+.............. 940 143,884
Speedel Holding AG+......................... 520 76,728
----------
627,840
----------
Taiwan -- 0.5%
Sanyang Industrial Co., Ltd................. 302,000 177,958
----------
66
SunAmerica International Small-Cap Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Shares/
Principal Value
Security Description Amount (Note 3)
-----------------------------------------------------------
COMMON STOCK (continued)
United Kingdom -- 4.1%
Cookson Group PLC................... 25,640 $ 313,582
Detica Group PLC.................... 22,998 186,910
IG Group Holdings PLC............... 45,550 266,441
Luminar PLC......................... 17,179 255,233
Northumbrian Water Group PLC........ 50,390 307,396
-----------
1,329,562
-----------
Total Common Stock
(cost $26,606,068)................. 30,048,766
-----------
PREFERRED STOCK -- 2.9%
Germany -- 2.9%
Fuchs Petrolub AG................... 3,630 318,297
Hugo Boss AG
7.49%.............................. 10,370 602,596
-----------
Total Preferred Stock
(cost $783,714).................... 920,893
-----------
Total Long-Term Investment Securities
(cost $27,389,782)................. 30,969,659
-----------
SHORT-TERM INVESTMENT SECURITIES -- 2.5%
Euro Time Deposit with State Street
Bank & Trust Co.
1.80% due 04/02/07
(cost $809,000).................... $809,000 809,000
-----------
TOTAL INVESTMENTS --
(cost $28,198,782)(2).............. 99.1% 31,778,659
Other assets less liabilities......... 0.9 297,330
-------- -----------
NET ASSETS -- 100.0% $32,075,989
======== ===========
- --------
+ Non-income producing security
(1)Consists of more than one class of securities traded together as a unit.
(2)See Note 7 for cost of investments on a tax basis
See Notes to Financial Statements
67
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (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
funds (each, a "Fund" and collectively, the "Funds"). Each Fund is a
separate series of the Trust with a distinct objective and/or strategy. Each
Fund is advised and/or managed by AIG SunAmerica Asset Management Corp. (the
"Adviser" or "AIG SunAmerica"), 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"), Tax
Managed Equity Fund ("Tax Managed Equity Fund") and SunAmerica International
Small-Cap Fund ("International Small-Cap Fund"). The Funds are considered to
be separate entities for financial and tax reporting purposes. The
investment objective and principal investment techniques 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. 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.
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.
International Small-Cap Fund seeks long-term capital appreciation by
investing in equity and equity-related securities of small-capitalization
companies throughout the world including emerging market countries,
excluding the U.S. Under normal circumstances, at least 80% of the Fund's
net assets, plus any borrowings for investment purposes will be invested in
such securities.
The Blue Chip Growth Fund, Growth Opportunities Fund, New Century Fund,
Growth and Income Fund, Balanced Assets Fund, Tax Managed Equity Fund and
International Small-Cap Fund are organized as "diversified" funds within the
meaning of the 1940 Act. The International Equity Fund and Value Fund are
organized as "non-diversified" funds.
- --------
* On May 15, 2007, the Tax Managed Equity Fund changed its name to the
"SunAmerica Disciplined Growth Fund." The Fund seeks capital appreciation by
active trading of equity securities that demonstrate the potential for
capital appreciation, without regard to market capitalization.
68
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (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, 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
and International Small-Cap 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 and International Small-Cap 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.
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 fee payments under the distribution
plans pursuant to Rule 12b-1 under the 1940 Act, except that Class B and
Class C shares are subject to higher distribution fee rates. Class I shares
and Class Z shares have not adopted 12b-1 plans and make no payments
thereunder, however, Class I shares pay a service fee to the Funds'
distributor for providing administrative and shareholder services.
Indemnifications: Under the Trust's organizational documents, its officers
and trustees are indemnified against certain liability arising out of the
performance of their duties to the Trust. In addition, in the normal course
of business the Trust enters into contracts that contain 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. Fund Merger
Pursuant to a plan of reorganization, all the assets and liabilities of
SunAmerica Biotech/Health Fund ("Biotech/Health Fund") were transferred in a
tax-free exchange to the New Century Fund, in exchange for shares of New
Century Fund. The details of the reorganization, which was consummated on
March 19, 2007, are set forth below.
Class A, Class B, and Class C shares of Biotech/Health Fund were exchanged
tax-free for Class A, Class B, and Class C shares of New Century Fund,
respectively.
Net assets and unrealized appreciation (depreciation) as of the merger date
were as follows:
Net assets of the Biotech/Health Fund prior to merger............. $ 21,294,588
Net assets of the New Century Fund prior to merger................ $ 88,216,005
------------
Aggregate net assets of the New Century Fund following acquisition $109,510,593
------------
Unrealized appreciation (depreciation) in the Biotech/Health Fund. $ 397,826
69
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited)
(continued)
Note 3. Significant Accounting Policies
The preparation of financial statements in accordance with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from these estimates. The
following is a summary of the significant accounting policies followed by
the Trust in the preparation of their financial statements:
Security Valuations: Stocks are generally valued based upon closing sales
prices reported on recognized securities exchanges. 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 ("NYSE"),
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 a Fund's shares, and the Fund may
determine that certain closing prices are unreliable. This determination
will be based on review of a number of factors, including developments in
foreign markets, the performance of U.S. securities markets, and the
performance of instruments trading in U.S. markets that represent foreign
securities and baskets of foreign securities. If a Fund determines that
closing prices do not reflect the fair value of the securities, the Fund
will adjust the previous closing prices in accordance with pricing
procedures approved by the Board of Trustees (the "Board") to reflect what
it believes to be the fair value of the securities as of the close of
regular trading on the NYSE. The Funds may also fair value securities in
other situations, for example, when a particular foreign market is closed
but a Fund is open. For foreign equity securities, the Funds use 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.
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 where a
development/significant event occurs that may significantly impact the value
of the security, are fair valued, as determined pursuant to procedures
adopted in good faith by the Board of Trustees.
On July 13, 2006, the Financial Accounting Standards Board (FASB) released
FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes"
("FIN 48"). FIN 48 provides guidance for how uncertain tax positions should
be recognized, measured, presented and disclosed in the financial
statements. FIN 48 requires the evaluation of tax positions taken or
expected to be taken in the course of preparing the Fund's tax returns to
determine whether the tax positions are "more-likely-than-not" of being
sustained by the applicable tax authority. Adoption of FIN 48 is required
for fiscal years beginning after December 15, 2006 and is to be applied to
all open tax years as of the effective date. However, Registered Investment
Companies are not required to implement FIN 48 until their last net asset
value calculation in the first required financial statement reporting period
for fiscal years beginning after December 15, 2006. At this time, management
is evaluating the implications of FIN 48 and its impact in the financial
statements, if any, has not yet been determined.
In September 2006, the FASB issued Statement on Financial Accounting
Standards No. 157, "Fair Value Measurements" ("FAS 157"). This standard
clarifies the definition of fair value for financial reporting, establishes
a framework for measuring fair value
70
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited)
(continued)
and requires additional disclosures about the use of fair value
measurements. FAS 157 is effective for financial statements issued for
fiscal years beginning after November 15, 2007 and interim periods within
those fiscal years. As of March 31, 2007, the Funds do not believe the
adoption of FAS 157 will impact the amounts reported in the financial
statements, however, additional disclosures will be required about the
inputs used to develop the measurements of fair value.
Repurchase Agreements: The Funds, along with other affiliated registered
investment companies, pursuant to exemptive relief granted by the Securities
and Exchange Commission ("SEC"), 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, 2007, 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.... 3.39% $ 2,280,000
Growth Opportunities 8.51 5,722,000
New Century......... 26.89 18,068,000
Balanced Assets..... 2.81 1,888,000
Value............... 4.65 3,125,000
Tax Managed......... 1.50 1,005,000
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, 2007, bearing interest at a
rate of 4.60% per annum, with a principle amount of $67,200,000, a
repurchase price of $67,225,760 and a maturity date of April 2, 2007. The
repurchase agreement is collateralized by the following:
Maturity Principal
Type of Collateral Interest Rate Date Amount Market Value
- ------------------ ------------- -------- ----------- ------------
U.S. Treasury Bonds 8.875% 08/15/17 $34,885,000 $47,075,493
U.S. Treasury Bonds 8.875 02/15/19 15,570,000 21,470,719
In addition, at March 31, 2007, the following Fund held an undivided
interest in a joint repurchase agreement with UBS Securities LLC:
Percentage Principal
Fund Interest Amount
- ---- ---------- ----------
New Century 1.44% $3,234,000
As of such date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
UBS Securities LLC, dated March 31, 2007, bearing interest at a rate of
5.12% per annum, with a principal amount of $225,000,000 a repurchase price
of $225,096,000, and a maturity date of April 2, 2007. The repurchase
agreement is collateralized by the following:
Maturity Principal
Type of Collateral Interest Rate Date Amount Market Value
- ------------------ ------------- -------- ------------ ------------
U.S. Treasury Inflation Index Bonds 1.625% 01/15/15 $225,000,000 $229,500,000
71
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited)
(continued)
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.
Investment Securities Loaned: 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. For the period ended March 31, 2007, none of the Funds
participated in securities lending with qualified brokers.
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
72
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited)
(continued)
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 a futures transaction, a Fund will be required to segregate an
initial margin payment of cash or other liquid securities with the Futures
Commission Merchant ("the broker"). The Funds' activities in futures
contracts are used primarily for hedging purposes and from time to time for
income enhancement. Futures contracts are conducted through regulated
exchanges that minimize counter-party credit risks. A Funds' participation
in the futures markets involves certain risks, including imperfect
correlation between movements in the price of futures contracts and
movements in the price of the securities hedged or used for cover. Pursuant
to a contract, the Funds agree to receive from or pay to the broker an
amount of cash equal to the daily fluctuation in value of the contract. Such
receipts or payments are known as "variation margin" and are recorded by the
Funds as unrealized appreciation or depreciation. Futures contracts involve
elements of risk in excess of the amount reflected in the Statement of
Assets and Liabilities. When a contract is closed, the Funds record a
realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
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, 2007.
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 Tax Managed Equity Fund, Value Fund,
International Equity Fund and International Small-Cap 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
73
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited)
(continued)
account, containing cash or liquid securities, at such a level that (i) the
amount deposited in the account plus the amount deposited with the broker as
collateral will equal the current value of the security sold short and (ii)
the amount deposited in the segregated account plus the amount deposited
with the broker as collateral will not be less than the market value of the
security at the time it was sold short. Liabilities for securities sold
short are reported at market value in the financial statements. Such
liabilities are subject to off balance sheet risk to the extent of any
future increases in market value of the securities sold short. The ultimate
liability for securities sold short could exceed the liabilities recorded in
the Statement of Assets and Liabilities. The Fund bears the risk of
potential inability of the broker to meet their obligation to perform.
Note 4. Investment Advisory and Management Agreement, Distribution Agreement
and Service Agreement
The Trust, on behalf of each Fund, has an Investment Advisory and Management
Agreement (the "Agreement") with AIG SunAmerica. Under the Agreement, AIG
SunAmerica provides continuous supervision of a Fund's portfolio and
administers its corporate affairs, subject to general review by the
Trustees. In connection therewith, AIG SunAmerica 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 AIG SunAmerica and its affiliates.
The Funds pay AIG SunAmerica 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%
Tax Managed Equity Fund..... (greater than) $0 0.85%
International Small-Cap Fund (greater than) $0 1.15%
- --------
* On August 29, 2006, AIG SunAmerica agreed to the continuation of a 0.05%
waiver of the investment advisory fees for the Blue Chip Growth Fund, Growth
Opportunities Fund and Balanced Assets Fund. Effective September 1, 2006,
AIG SunAmerica agreed to, until further notice, an additional 0.02% waiver
of the investment advisory fee for these funds. Effective October 1, 2006,
AIG SunAmerica agreed to, until further notice, reduce the waiver of the
investment advisory fee for the funds to 0.02%. Effective January 1, 2007,
AIG SunAmerica removed the 0.02% waiver from the Growth Opportunities Fund.
For the period ended March 31, 2007, the amount of investment advisory fees
waived were $7,074, $3,580 and $16,135, respectively. These amounts are
reflected in the Statement of Operations.
+ Effective September 1, 2006, AIG SunAmerica agreed, until further notice, to
waive 0.05% of the investment advisory fees for the Growth and Income Fund.
Effective January 1, 2007, AIG SunAmerica removed the 0.05% waiver from the
Growth and Income Fund. For the period ended March 31, 2007, the amount of
investment advisory fees waived were $14,698. These amounts are reflected in
the Statement of Operations.
For the period ended March 31, 2007, AIG SunAmerica earned fees in the
amounts stated in the Statement of Operations.
The International Equity Fund and International Small-Cap Fund are
subadvised by AIG Global Investment Corp. ("AIGGIC") pursuant to a
subadvisory agreement with AIG SunAmerica. AIGGIC is an indirect
wholly-owned subsidiary of AIG and an affiliate of AIG SunAmerica. AIGGIC
receives an annual fee of 0.47% of average daily net assets for the
International Equity Fund and 0.60% of average daily net assets for the
International Small-Cap Fund, which is paid by AIG SunAmerica. For the
period ended March 31, 2007, AIGGIC waived 0.05% of the fee paid by AIG
SunAmerica for the International Small-Cap Fund.
74
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited)
(continued)
AIG SunAmerica 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. The expense
reimbursements and fee waivers will continue indefinitely subject to
termination by the Trustees, including a majority of the trustees who are
not deemed to be "interested persons" of the Trust, as defined by Section
2(a)(19) of the 1940 Act ("Independent Trustees").
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
Tax Managed Class A............ 1.45
Tax Managed Class B............ 2.10
Tax Managed Class C............ 2.10
International Small-Cap Class A 1.90
International Small-Cap Class B 2.55
International Small-Cap Class C 2.55
AIG SunAmerica 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. The voluntary fee
waivers and/or expense reimbursements will continue indefinitely but may be
terminated at any time at the option of AIG SunAmerica.
Fund Percentage
- ---- ----------
New Century Class C 2.14%
For the International Equity Fund, Value Fund, Tax Managed Fund and
International Small-Cap Fund, any waivers or reimbursements made by AIG
SunAmerica 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 AIG SunAmerica and remain in compliance with
the foregoing expense limitations.
For the period ended March 31, 2007, AIG SunAmerica has agreed to reimburse
expenses as follows:
Blue Chip Growth Class I.... $ 6,923
Growth Opportunities Class I 6,953
New Century Fund Class C.... 10,473
Growth & Income Class I..... 6,551
Balanced Assets Class I..... 7,686
International Equity Class A 15,465
International Equity Class B 7,898
International Equity Class C 7,294
International Equity Class I 4,162
Value Fund Class A.......... 55,272
Value Fund Class B.......... 30,641
Value Fund Class C.......... 20,916
Value Fund Class I.......... 8,076
Value Fund Class Z.......... 14,282
Tax Managed Equity Class A.. 50,262
75
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited)
(continued)
Tax Managed Equity Class B..... $24,137
Tax Managed Equity Class C..... 54,468
International Small-Cap Class A 67,079
International Small-Cap Class B 12,470
International Small-Cap Class C 19,397
For the period ended March 31, 2007, the amounts recouped by the Adviser are
as follows:
International Equity Class A $17,313
International Equity Class B 31
International Equity Class C 1,650
International Equity Class I --
At March 31, 2007, expenses previously waived or reimbursed by AIG
SunAmerica that are subject to recoupment are as follows:
Class
Other Specific
Expenses Expenses
Reimbursed Reimbursed
- - ---------- ----------
International Equity Class A........ $ -- $ 32,719
International Equity Class B........ -- 25,840
International Equity Class C........ -- 21,401
International Equity Class I........ -- 9,038
Value Fund Class A.................. 57,953 116,342
Value Fund Class B.................. 23,895 77,096
Value Fund Class C.................. 16,523 40,679
Value Fund Class I.................. 1,055 17,119
Value Fund Class Z.................. 9,550 21,074
Tax Managed Equity Class A.......... 7,752 119,665
Tax Managed Equity Class B.......... 9,807 96,412
Tax Managed Equity Class C.......... 9,493 132,647
International Small-Cap Fund Class A 109,215 65,769
International Small-Cap Fund Class B 2,066 30,306
International Small-Cap Fund Class C 5,877 37,325
The Trust, on behalf of each Fund, has entered into a Distribution Agreement
with AIG SunAmerica Capital Services, Inc. ("AIG SACS" or the
"Distributor"), an affiliate of the Adviser. Each Fund has adopted a
Distribution Plan on behalf of each class of shares (other than Class I and
Class Z shares) (each a "Plan" and collectively, the "Plans") in accordance
with the provisions of Rule 12b-1 under the 1940 Act, hereinafter referred
to as the "Class A Plan," "Class B Plan" and "Class C Plan." In adopting the
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 a distribution fee from a Fund at an annual rate of 0.10%, 0.75%
and 0.75%, respectively, of the average daily net assets of the Fund's Class
A, Class B and Class C shares 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 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 Plans provide that the Class A, Class B and
Class C shares of each Fund will pay the Distributor an account maintenance
fee up to an annual rate of 0.25% of the aggregate average daily net assets
of such class of shares for payments to compensate the Distributor and
certain securities firms for account maintenance activities. Accordingly,
for the period ended March 31, 2007, AIG SACS received fees (see Statement
of Operations) based upon the aforementioned rates.
76
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited)
(continued)
In addition, AIG SACS is paid a fee of 0.25% of average daily net assets of
Class I shares in connection with providing administrative and shareholder
services to Class I shareholders. For the period ended March 31, 2007, AIG
SACS earned fees (see Statement of Operations) based upon the aforementioned
rates.
AIG 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. AIG 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. AIG SACS has advised the
Funds that for the period ended March 31, 2007, 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....... $17,232 $ 7,098 $ 7,098 $ -- $12,604 $ 226
Growth Opportunities... 20,420 8,957 8,480 -- 13,402 96
New Century............ 21,370 9,941 8,395 85 10,324 48
Growth & Income........ 34,007 15,161 13,968 14 17,597 546
Balanced Assets........ 76,055 46,689 18,867 489 18,394 88
International Equity... 60,757 15,961 33,614 55 12,567 1,303
Value.................. 72,201 25,275 31,854 266 35,199 906
Tax Managed Equity..... 33,569 20,936 11,785 60 3,237 7,211
International Small-Cap 32,035 6,465 18,845 -- -- 287
The Trust has entered into a Service Agreement with AIG SunAmerica Fund
Services, Inc. ("AIG SAFS"), an affiliate of the Adviser. Under the Service
Agreement, AIG 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. Pursuant to the Service Agreement,
the Funds (except for Class Z shares of the Funds) pay a fee to AIG SAFS for
services rendered based upon an annual rate of 0.22% of average daily net
assets. No portion of this fee is paid or reimbursed by the Class Z shares,
however, Class Z shares pay all direct transfer agency fees and
out-of-pocket expenses relating to Class Z shares. For the period ended
March 31, 2007, 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 AIG SAFS pursuant to the terms of the Service Agreement.
Expense Payable At March 31, 2007
-------------------------------- -------------------------------
Fund Class A Class B Class C Class I Class A Class B Class C Class I
- ---- -------- ------- ------- ------- ------- ------- ------- -------
Blue Chip Growth....... $ 51,389 $17,105 $ 4,404 $ 696 $ 8,812 $2,972 $ 759 $ 112
Growth Opportunities... 40,784 22,254 10,043 300 7,227 3,913 1,811 27
New Century............ 84,617 8,352 2,264 -- 15,799 1,824 721 --
Growth and Income...... 66,002 27,030 28,147 339 11,636 4,260 4,626 58
Balanced Assets........ 126,247 19,976 16,182 816 22,920 3,374 2,737 131
International Equity... 71,687 23,316 24,851 9,732 12,573 3,937 4,370 1,677
Value.................. 136,378 51,165 37,382 69 23,031 8,239 5,996 6
Tax Managed Equity..... 24,120 9,004 29,707 -- 4,049 1,296 4,908 --
International Small-Cap 26,846 742 3,690 -- 4,923 151 667 --
At March 31, 2007, AIG SunAmerica, Inc. an affiliated company of the
adviser, owned 26.5% of the total outstanding shares of International Equity.
77
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited)
(continued)
Note 5. Expense Reductions
Through expense offset arrangements resulting from broker commission
recapture, a portion of the expenses of the Funds set forth below have been
reduced. For the period ended March 31, 2007, the amount of expense
reductions received by each Fund, used to offset the Fund's non-affiliated
expenses were as follows:
Total Expense
Fund Reductions
- ---- -------------
Blue Chip Growth.... $ 5,500
Growth Opportunities 13,795
New Century......... 8,635
Growth and Income... 7,805
Balanced Assets..... 7,481
Value............... 11,588
Tax Managed Equity.. 56,488
Note 6. 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, 2007, 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)........... $33,155,972 $116,461,728 $143,869,063 $ 93,812,552 $112,429,393
Sales and maturities (excluding U.S. government securities) 41,896,751 120,333,327 153,109,111 107,493,655 125,410,610
Purchases of U.S. government securities.................... -- -- -- -- 17,596,535
Sales and maturities of U.S. government securities......... -- -- -- -- 21,308,548
International Tax International
Equity Value Managed Small-Cap
Fund Fund Equity Fund Fund
------------- ------------- ------------ -------------
Purchases (excluding U.S. government securities)........... $78,120,388 $164,423,598 $157,697,250 $ 12,374,728
Sales and maturities (excluding U.S. government securities) 84,099,238 171,849,204 165,977,804 10,670,971
Purchases of U.S. government securities.................... -- -- -- --
Sales and maturities of U.S. government securities......... -- -- -- --
78
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited)
(continued)
Note 7. Federal Income Taxes
The amounts of aggregate unrealized gain (loss) and the cost of investment
securities for federal income 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).......................... $ 63,751,953 $ 67,124,714 $103,345,066 $103,855,562 $151,219,896
============ ============ ============ ============ ============
Appreciation.............................. 5,794,667 3,498,210 3,810,528 8,627,406 10,021,217
Depreciation.............................. (1,493,436) (1,668,045) (2,070,610) (2,947,929) (2,251,978)
------------ ------------ ------------ ------------ ------------
Net unrealized appreciation (depreciation) $ 4,301,231 $ 1,830,165 $ 1,739,918 $ 5,679,477 $ 7,769,239
============ ============ ============ ============ ============
International Tax International
Equity Managed Equity Small-Cap
Fund Value Fund Fund Fund
------------- ------------- -------------- -------------
Cost (tax basis).......................... $109,670,699 $209,607,568 $ 52,021,683 $ 28,216,607
============ ============ ============ ============
Appreciation.............................. 15,726,100 21,070,019 4,294,548 4,817,580
Depreciation.............................. (1,552,689) (2,835,581) (1,467,861) (1,253,529)
------------ ------------ ------------ ------------
Net unrealized appreciation (depreciation) $ 14,173,411 $ 18,234,438 $ 2,826,687 $ 3,564,051
============ ============ ============ ============
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 Distributions
--------------------------------------- ----------------------
For year ended September 30, 2006
---------------------------------------------------------------
Long-Term
Gains/Capital Unrealized Long-Term
Ordinary and Other Appreciation Ordinary Capital
Fund Income Losses (Depreciation) Income Gains
- ---- ---------- ------------- -------------- ----------- ----------
Blue Chip Growth....... $ -- $ (72,098,821) $ 2,538,330 $ -- $ --
Growth Opportunities... -- (204,700,551) 2,132,079 -- --
New Century............ -- (93,298,032) 1,964,061 -- --
Growth and Income...... -- (48,458,322) 5,471,682 101,366 --
Balanced Assets........ 101,844 (78,516,188) 6,416,109 2,815,576 --
International Equity... -- (19,024,974) 9,402,423 -- --
Value.................. 7,336,415 16,373,310 19,304,366 14,799,743 2,589,627
Tax Managed Equity..... -- (28,965,441) 2,609,225 53,956 --
International Small-Cap -- (1,191,758) (1,385,306) -- --
79
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited)
(continued)
Tax Distributions
----------------------
For year ended
September 30, 2006
----------------------
Long-Term
Ordinary Capital
Fund Income Gains
- ---- ----------- ----------
Blue Chip Growth....... $ -- $ --
Growth Opportunities... -- --
New Century............ -- --
Growth and Income...... 588,836 --
Balanced Assets........ 3,278,600 --
International Equity... -- --
Value.................. 16,513,550 7,934,524
Tax Managed Equity..... 69,828 --
International Small-Cap -- --
For the period ended September 30, 2006, the reclassifications arising from
book/tax differences resulted in increases (decreases) that were primarily
due to net investment losses, treatment of foreign currency, tax treatments
of certain debt obligations, principle paydown adjustments and investments
in real estate investment trusts to the components of net assets as follows:
Accumulated Accumulated
Undistributed Net Undistributed
Investment Net Realized Capital
Fund Income (Loss) Gain (Loss) Paid-in
- ---- ----------------- ------------- ---------
Blue Chip Growth....... $533,652 $ -- $(533,652)
Growth Opportunities... 791,849 -- (791,849)
New Century............ 442,364 -- (442,364)
Growth and Income...... 33,316 -- (33,316)
Balanced Assets........ 277,380 (277,380) --
International Equity... 341,540 43,097 (384,637)
Value.................. -- -- --
Tax Managed Equity..... 193,397 53,723 (247,120)
International Small-Cap 4,779 68,624 (73,403)
For Federal income tax purposes, the Funds indicated below have capital loss
carryforwards, which expire in the year indicated, as of September 30, 2006,
which are available to offset future capital gains, if any:
Capital Loss Carryforward
------------------------------------------------------------------- ----------
Fund 2008 2009 2010 2011 2012 2013 2014
- ---- ----------- ---------- ------------ ----------- ---------- -------- ----------
Blue Chip Growth*...... $17,540,769 $ -- $ 12,497,108 $42,060,944 $ -- $ -- $ --
Growth Opportunities*.. 8,188,458 151,316 131,047,975 65,312,802 -- -- --
New Century............ -- -- 56,946,876 36,351,156 -- -- --
Growth and Income...... -- -- 12,105,429 30,630,503 5,722,390 -- --
Balanced Assets........ -- -- 18,956,073 55,685,563 3,874,552 -- --
International Equity*.. 15,141,007 -- 1,895,003 1,952,562 -- -- --
Value.................. -- -- -- -- -- -- --
Tax Managed Equity..... 2,013,208 6,189,990 15,675,665 4,260,050 594,906 177,899 --
International Small-Cap -- -- -- -- -- -- 1,191,758
- --------
* 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.
80
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited)
(continued)
The Fund's indicated below, utilized capital loss carryforwards, which
offset net taxable gains realized in the year ended September 30, 2006.
Capital Loss
Carryforward
Fund Utilized
- ---- ------------
Blue Chip Growth....... $ 5,410,261
Growth Opportunities... 14,087,949
New Century............ 12,012,220
Growth and Income...... 13,974,770
Balanced Assets........ 5,268,029
International Equity... 22,425,530
Value.................. --
Tax Managed Equity..... 2,784,931
International Small-Cap --
Under the current law, capital losses related to securities and foreign
currency realized after October 31 and prior to the Fund's fiscal year end
may be deferred as occurring the first day of the following year. For the
fiscal year ended September 30, 2006, the Funds elected to defer capital
losses as follows:
Deferred Deferred
Post- Post-
October October
Capital Currency
Fund Loss Loss
- ---- -------- --------
International Equity $-- $34,696
Tax Managed Equity.. -- 53,723
Note 8. 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, 2007 year ended March 31, 2007 year ended
(unaudited) September 30, 2006 (unaudited) September 30, 2006
--------------------- ---------------------- --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ------------ -------- ----------- -------- -----------
Shares sold (1)(2)(3)(4) 109,201 $ 1,808,713 286,191 $ 4,393,307 34,646 $ 502,314 107,187 $ 1,479,959
Reinvested dividends.... -- -- -- -- -- -- -- --
Shares redeemed (1)(2).. (402,473) (6,589,630) (861,719) (13,297,858) (227,032) (3,314,740) (511,064) (7,023,069)
-------- ----------- -------- ------------ -------- ----------- -------- -----------
Net increase (decrease). (293,272) $(4,780,917) (575,528) $ (8,904,551) (192,386) $(2,812,426) (403,877) $(5,543,110)
======== =========== ======== ============ ======== =========== ======== ===========
- --------
(1)For the six months ended March 31, 2007, includes automatic conversion of
77,268 shares of Class B shares in the amount of $1,140,726 to 68,453 shares
of Class A shares in the amount of $1,140,726.
(2)For the year ended September 30, 2006, includes automatic conversion of
140,669 shares of Class B shares in the amount of $1,929,214 to 125,387
shares of Class A shares in the amount of $1,929,214.
(3)For the six months ended March 31, 2007, includes automatic conversion of
6,255 shares of Class C shares in the amount of $89,998 to 5,514 shares of
Class A shares in the amount of $89,998.
(4)For the year ended September 30, 2006, includes automatic conversion of
13,646 shares of Class C shares in the amount of $184,614 to 12,078 shares
of Class A shares in the amount of $184,614.
81
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited)
(continued)
Blue Chip Growth Fund
-------------------------------------------------------------------------------------------
Class C Class I
--------------------------------------------- --------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2007 year ended March 31, 2007 year ended
(unaudited) September 30, 2006 (unaudited) September 30, 2006
--------------------- ---------------------- --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ------------ -------- ----------- -------- -----------
Shares sold............. 11,524 $ 166,513 42,327 $ 583,163 3,582 $ 59,118 10,100 $ 157,155
Reinvested dividends.... -- -- -- -- -- -- -- --
Shares redeemed (3)(4).. (58,510) (841,938) (105,697) (1,448,494) (8,534) (142,402) (64,498) (1,009,458)
-------- ----------- -------- ------------ -------- ----------- -------- -----------
Net increase (decrease). (46,986) $ (675,425) (63,370) $ (865,331) (4,952) $ (83,284) (54,398) $ (852,303)
======== =========== ======== ============ ======== =========== ======== ===========
Growth Opportunities Fund
-------------------------------------------------------------------------------------------
Class A Class B
--------------------------------------------- --------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2007 year ended March 31, 2007 year ended
(unaudited) September 30, 2006 (unaudited) September 30, 2006
--------------------- ---------------------- --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ------------ -------- ----------- -------- -----------
Shares sold (5)(6)(7)(8) 186,004 $ 3,544,253 308,492 $ 5,164,212 33,699 $ 560,554 76,853 $ 1,138,934
Reinvested dividends.... -- -- -- -- -- -- -- --
Shares redeemed (5)(6).. (394,596) (7,406,291) (858,318) (14,201,135) (271,574) (4,547,784) (558,658) (8,294,844)
-------- ----------- -------- ------------ -------- ----------- -------- -----------
Net increase (decrease). (208,592) $(3,862,038) (549,826) $ (9,036,923) (237,875) $(3,987,230) (481,805) $(7,155,910)
======== =========== ======== ============ ======== =========== ======== ===========
Growth Opportunities Fund
-------------------------------------------------------------------------------------------
Class C Class I
--------------------------------------------- --------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2007 year ended March 31, 2007 year ended
(unaudited) September 30, 2006 (unaudited) September 30, 2006
--------------------- ---------------------- --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ------------ -------- ----------- -------- -----------
Shares sold............. 51,952 $ 864,436 35,295 $ 519,835 574 $ 10,736 6,157 $ 104,273
Reinvested dividends.... -- -- -- -- -- -- -- --
Shares redeemed (7)(8).. (100,268) (1,658,653) (253,692) (3,730,537) (17,848) (339,721) (88,753) (1,461,430)
-------- ----------- -------- ------------ -------- ----------- -------- -----------
Net increase (decrease). (48,316) $ (794,217) (218,397) $ (3,210,702) (17,274) $ (328,985) (82,596) $(1,357,157)
======== =========== ======== ============ ======== =========== ======== ===========
- --------
(3)For the six months ended March 31, 2007, includes automatic conversion of
6,255 shares of Class C shares in the amount of $89,998 to 5,514 shares of
Class A shares in the amount of $89,998.
(4)For the year ended September 30, 2006, includes automatic conversion of
13,646 shares of Class C shares in the amount of $184,614 to 12,078 shares
of Class A shares in the amount of $184,614.
(5)For the six months ended March 31, 2007, includes automatic conversion of
91,571 shares of Class B shares in the amount of $1,598,776 to 80,971 shares
of Class A shares in the amount of $1,598,776.
(6)For the year ended September 30, 2006, includes automatic conversion of
89,673 shares of Class B shares in the amount of $1,335,833 to 79,800 shares
of Class A shares in the amount of $1,335,833.
(7)For the six months ended March 31, 2007, includes automatic conversion of
6,990 shares of Class C shares in the amount of $116,962 to 6,176 shares of
Class A shares in the amount of $116,962.
(8)For the year ended September 30, 2006, includes automatic conversion of
14,961 shares of Class C shares in the amount of $217,480 to 13,265 shares
of Class A shares in the amount of $217,480.
82
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited)
(continued)
New Century Fund
----------------------------------------------------------------------------------------------
Class A Class B
------------------------------------------------ --------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2007 year ended March 31, 2007 year ended
(unaudited) September 30, 2006 (unaudited) September 30, 2006
---------------------- ------------------------ --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ------------ ---------- ------------ -------- ----------- -------- -----------
Shares sold (1)(2)....... 129,554 $ 2,675,425 251,417 $ 4,619,033 17,920 $ 906,236 52,369 $ 849,797
Shares issued in merger + 456,997 9,556,448 -- -- 378,511 6,906,165 -- --
Reinvested dividends..... -- -- -- -- -- -- -- --
Shares redeemed (1)(2)... (426,663) (10,581,602) (1,032,640) (18,939,346) (128,890) (2,322,910) (241,463) (3,911,556)
-------- ------------ ---------- ------------ -------- ----------- -------- -----------
Net increase (decrease).. 159,888 $ 1,650,271 (781,223) $(14,320,313) 267,541 $ 5,489,491 (189,094) $(3,061,759)
======== ============ ========== ============ ======== =========== ======== ===========
New Century Fund
------------------------------------------------
Class C
------------------------------------------------
For the
six months ended For the
March 31, 2007 year ended
(unaudited) September 30, 2006
---------------------- ------------------------
Shares Amount Shares Amount
-------- ------------ ---------- ------------
Shares sold.............. 5,605 $ 1,026,717 18,023 $ 288,668
Shares issued in merger + 263,342 4,832,027 -- --
Reinvested dividends..... -- -- -- --
Shares redeemed.......... (21,106) (380,033) (33,993) (549,978)
-------- ------------ ---------- ------------
Net increase (decrease).. 247,841 $ 5,478,711 (15,970) $ (261,310)
======== ============ ========== ============
- --------
(1)For the six months ended March 31, 2007, includes automatic conversion of
46,608 shares of Class B shares in the amount of $857,572 to 40,712 shares
of Class A shares in the amount of $857,572.
(2)For the year ended September 30, 2006, includes automatic conversion of
94,711 shares of Class B shares in the amount of $1,533,530 to 83,219 shares
of Class A shares in the amount of $1,533,530.
Growth and Income Fund
-------------------------------------------------------------------------------------------------
Class A Class B
------------------------------------------------ -----------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2007 year ended March 31, 2007 year ended
(unaudited) September 30, 2006 (unaudited) September 30, 2006
---------------------- ------------------------ --------------------- ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Shares sold (1)(2)(3)(4) 577,330 $ 8,223,172 1,037,304 $ 13,187,347 55,562 $ 738,061 138,475 $ 1,670,363
Reinvested dividends.... -- -- 7,291 92,385 -- -- -- --
Shares redeemed (1)(2).. (774,012) (10,941,994) (1,733,300) (22,055,189) (526,907) (7,039,794) (1,498,815) (18,023,263)
-------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Net increase (decrease). (196,682) $ (2,718,822) (688,705) $ (8,775,457) (471,345) $(6,301,733) (1,360,340) $(16,352,900)
======== ============ ========== ============ ======== =========== ========== ============
- --------
(1)For the six months ended March 31, 2007, includes automatic conversion of
236,606 shares of Class B shares in the amount of $3,176,190 to 222,261
shares of Class A shares in the amount of $3,176,190.
(2)For the year ended September 30, 2006, includes automatic conversion of
569,345 shares of Class B shares in the amount of $6,846,288 to 537,783
shares of Class A shares in the amount of $6,846,288.
(3)For the six months ended March 31, 2007, includes automatic conversion of
42,592 shares of Class C shares in the amount of $570,768 to 39,976 shares
of Class A shares in the amount of $570,768.
(4)For the year ended September 30, 2006, includes automatic conversion of
257,374 shares of Class C shares in the amount of $3,090,506 to 244,371
shares of Class A shares in the amount of $3,090,506.
+ See Note 2.
83
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited)
(continued)
Growth and Income Fund
-------------------------------------------------------------------------------------------------
Class C Class I
-------------------------------------------------- ---------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2007 year ended March 31, 2007 year ended
(unaudited) September 30, 2006 (unaudited) September 30, 2006
------------------------ ------------------------ --------------------- ----------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ----------- -------- ------------
Shares sold............. 47,026 $ 624,341 50,775 $ 607,720 2,447 $ 34,321 4,901 $ 62,493
Reinvested dividends.... -- -- -- -- -- -- 167 2,121
Shares redeemed (3)(4).. (326,761) (4,329,863) (1,122,450) (13,426,842) (2,130) (30,211) (44,644) (560,171)
---------- ------------ ---------- ------------ -------- ----------- -------- ------------
Net increase (decrease). (279,735) $ (3,705,522) (1,071,675) $(12,819,122) 317 $ 4,110 (39,576) $ (495,557)
========== ============ ========== ============ ======== =========== ======== ============
Balanced Assets Fund
-------------------------------------------------------------------------------------------------
Class A Class B
-------------------------------------------------- ---------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2007 year ended March 31, 2007 year ended
(unaudited) September 30, 2006 (unaudited) September 30, 2006
------------------------ ------------------------ --------------------- ----------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ----------- -------- ------------
Shares sold (5)(6)(7)(8) 296,016 $ 4,388,667 740,185 $ 10,265,397 40,807 $ 601,112 103,140 $ 1,423,304
Reinvested dividends.... 65,509 972,443 160,938 2,242,794 4,387 64,938 16,817 233,746
Shares redeemed (5)(6).. (1,008,707) (14,908,885) (2,374,864) (32,919,295) (291,172) (4,301,036) (876,652) (12,118,388)
---------- ------------ ---------- ------------ -------- ----------- -------- ------------
Net increase (decrease). (647,182) $ (9,547,775) (1,473,741) $(20,411,104) (245,978) $(3,634,986) (756,695) $(10,461,338)
========== ============ ========== ============ ======== =========== ======== ============
Balanced Assets Fund
-------------------------------------------------------------------------------------------------
Class C Class I
-------------------------------------------------- ---------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2007 year ended March 31, 2007 year ended
(unaudited) September 30, 2006 (unaudited) September 30, 2006
------------------------ ------------------------ --------------------- ----------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ----------- -------- ------------
Shares sold............. 25,929 $ 383,071 59,887 $ 822,679 1,519 $ 22,426 3,998 $ 55,500
Reinvested dividends.... 3,521 52,226 11,763 163,790 455 6,754 1,087 15,163
Shares redeemed (7)(8).. (107,253) (1,578,766) (417,497) (5,771,742) (7,100) (105,705) (6,630) (92,371)
---------- ------------ ---------- ------------ -------- ----------- -------- ------------
Net increase (decrease). (77,803) $ (1,143,469) (345,847) $ (4,785,273) (5,126) $ (76,525) (1,545) $ (21,708)
========== ============ ========== ============ ======== =========== ======== ============
- --------
(3)For the six months ended March 31, 2007, includes automatic conversion of
42,592 shares of Class C shares in the amount of $570,768 to 39,976 shares
of Class A shares in the amount of $570,768.
(4)For the year ended September 30, 2006, includes automatic conversion of
257,374 shares of Class C shares in the amount of $3,090,506 to 244,371
shares of Class A shares in the amount of $3,090,506.
(5)For the six months ended March 31, 2007, includes automatic conversion of
130,843 shares of Class B shares in the amount of $1,944,393 to 130,325
shares of Class A shares in the amount of $1,944,394.
(6)For the year ended September 30, 2006, includes automatic conversion of
289,554 shares of Class B shares in the amount of $4,003,645 to 288,356
shares of Class A shares in the amount of $4,003,645.
(7)For the six months ended March 31, 2007, includes automatic conversion of
4,670 shares of Class C shares in the amount of $69,236 to 4,661 shares of
Class A shares in the amount of $69,236.
(8)For the year ended September 30, 2006, includes automatic conversion of
29,174 shares of Class C shares in the amount of $403,247 to 29,117 shares
of Class A shares in the amount of $403,247.
84
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited)
(continued)
International Equity Fund
-------------------------------------------------------------------------------------------------
Class A Class B
------------------------------------------------ -----------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2007 year ended March 31, 2007 year ended
(unaudited) September 30, 2006 (unaudited) September 30, 2006
---------------------- ------------------------ --------------------- ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Shares sold (1)(2)(3)(4) 741,027 $ 12,584,317 1,792,340 $ 26,707,517 126,189 $ 1,991,870 422,480 $ 5,960,828
Reinvested dividends.... -- -- -- -- -- -- -- --
Shares redeemed (1)(2).. (785,283) (13,385,994) (1,204,676) (17,947,877) (279,897) (4,490,996) (580,769) (8,067,772)
-------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Net increase (decrease). (44,256) $ (801,677) 587,664 $ 8,759,640 (153,708) $(2,499,126) (158,289) $ (2,106,944)
======== ============ ========== ============ ======== =========== ========== ============
International Equity Fund
-------------------------------------------------------------------------------------------------
Class C Class I
------------------------------------------------ -----------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2007 year ended March 31, 2007 year ended
(unaudited) September 30, 2006 (unaudited) September 30, 2006
---------------------- ------------------------ --------------------- ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Shares sold............. 145,957 $ 2,302,118 499,169 $ 6,840,120 96,093 $ 1,637,672 318,984 $ 4,744,366
Reinvested dividends.... -- -- -- -- -- -- -- --
Shares redeemed (3)(4).. (156,348) (2,474,433) (414,380) (5,730,063) (174,299) (2,919,118) (263,235) (4,005,306)
-------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Net increase (decrease). (10,391) $ (172,315) 84,789 $ 1,110,057 (78,206) $(1,281,446) 55,749 $ 739,060
======== ============ ========== ============ ======== =========== ========== ============
Value Fund
-------------------------------------------------------------------------------------------------
Class A Class B
------------------------------------------------ -----------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2007 year ended March 31, 2007 year ended
(unaudited) September 30, 2006 (unaudited) September 30, 2006
---------------------- ------------------------ --------------------- ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Shares sold (5)(6)(7)(8) 804,193 $ 14,728,117 1,120,447 $ 19,761,774 196,222 $ 3,440,016 249,089 $ 4,201,032
Reinvested dividends.... 704,045 12,539,044 470,358 8,066,638 284,619 4,810,045 205,229 3,363,708
Shares redeemed (5)(6).. (984,909) (17,955,346) (2,359,246) (41,370,087) (541,593) (9,383,889) (1,169,879) (19,607,142)
-------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Net increase (decrease). 523,329 $ 9,311,815 (768,441) $(13,541,675) (60,752) $(1,133,828) (715,561) $(12,042,402)
======== ============ ========== ============ ======== =========== ========== ============
- --------
(1)For the six months ended March 31, 2007, includes automatic conversion of
143,544 shares of Class B shares in the amount of $2,325,373 to 134,254
shares of Class A shares in the amount of $2,325,373.
(2)For the year ended September 30, 2006, includes automatic conversion of
213,551 shares of Class B shares in the amount of $2,955,239 to 200,881
shares of Class A shares in the amount of $2,955,239.
(3)For the six months ended March 31, 2007, includes automatic conversion of
12,650 shares of Class C shares in the amount of $201,241 to 11,826 shares
of Class A shares in the amount of $201,241.
(4)For the year ended September 30, 2006, includes automatic conversion of
62,893 shares of Class C shares in the amount of $842,371 to 59,154 shares
of Class A shares in the amount of $842,371.
(5)For the six months ended March 31, 2007, includes automatic conversion of
265,624 shares of Class B shares in the amount of $4,586,231 to 251,957
shares of Class A shares in the amount of $4,586,231.
(6)For the year ended September 30, 2006, includes automatic conversion of
414,287 shares of Class B shares in the amount of $6,940,648 to 395,001
shares of Class A shares in the amount of $6,940,648.
(7)For the six months ended March 31, 2007, includes automatic conversion of
2,702 shares of Class C shares in the amount of $46,921 to 2,562 shares of
Class A shares in the amount of $46,921.
(8)For the year ended September 30, 2006, includes automatic conversion of
3,114 shares of Class C shares in the amount of $38,164 to 3,019 shares of
Class A shares in the amount of $38,164.
85
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited)
(continued)
Value Fund
-----------------------------------------------------------------------------------------
Class C Class I
--------------------------------------------- ------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2007 year ended March 31, 2007 year ended
(unaudited) September 30, 2006 (unaudited) September 30, 2006
--------------------- ---------------------- ------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ------------ --------- --------- --------- -----------
Shares sold............ 175,777 $ 3,096,778 220,948 $ 3,715,418 622 $ 11,687 42,694 $ 745,901
Reinvested dividends... 198,577 3,355,958 147,920 2,422,937 199 3,531 14,121 241,900
Shares redeemed (7)(8). (371,935) (6,413,864) (861,447) (14,432,704) (8,235) (159,637) (220,088) (3,918,465)
-------- ----------- -------- ------------ ------ --------- -------- -----------
Net increase (decrease) 2,419 $ 38,872 (492,579) $ (8,294,349) (7,414) $(144,419) (163,273) $(2,930,664)
======== =========== ======== ============ ====== ========= ======== ===========
Value Fund
---------------------------------------------
Class Z
---------------------------------------------
For the
six months ended For the
March 31, 2007 year ended
(unaudited) September 30, 2006
--------------------- ----------------------
Shares Amount Shares Amount
-------- ----------- -------- ------------
Shares sold............ 323,064 $ 6,211,730 327,401 $ 5,980,931
Reinvested dividends... 161,535 2,988,389 75,381 1,333,483
Shares redeemed........ (51,938) (963,860) (158,366) (2,868,969)
-------- ----------- -------- ------------
Net increase (decrease) 432,661 $ 8,236,259 244,416 $ 4,445,445
======== =========== ======== ============
- --------
(7)For the six months ended March 31, 2007, includes automatic conversion of
2,702 shares of Class C shares in the amount of $46,921 to 2,562 shares of
Class A shares in the amount of $46,921.
(8)For the year ended September 30, 2006, includes automatic conversion of
3,114 shares of Class C shares in the amount of $38,164 to 3,019 shares of
Class A shares in the amount of $38,164.
Tax Managed Equity Fund
-------------------------------------------------------------------------------------------
Class A Class B
--------------------------------------------- --------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2007 year ended March 31, 2007 year ended
(unaudited) September 30, 2006 (unaudited) September 30, 2006
--------------------- ---------------------- --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- --------- ----------- -------- ----------- -------- -----------
Shares sold (1)(2)..... 337,990 $ 4,766,622 1,402,693 $18,992,948 19,670 $ 266,976 78,337 $ 1,037,524
Reinvested dividends... -- -- 3,627 44,146 -- -- 109 1,276
Shares redeemed (1)(2). (520,540) (7,222,674) (635,487) (8,323,021) (281,533) (3,798,359) (666,910) (8,467,051)
-------- ----------- --------- ----------- -------- ----------- -------- -----------
Net increase (decrease) (182,550) $(2,456,052) 770,833 $10,714,073 (261,863) $(3,531,383) (588,464) $(7,428,251)
======== =========== ========= =========== ======== =========== ======== ===========
Tax Managed Equity Fund
---------------------------------------------
Class C
---------------------------------------------
For the
six months ended For the
March 31, 2007 year ended
(unaudited) September 30, 2006
--------------------- ----------------------
Shares Amount Shares Amount
-------- ----------- --------- -----------
Shares sold............ 84,948 $ 1,130,328 1,260,574 $16,302,699
Reinvested dividends... -- -- 105 1,242
Shares redeemed........ (307,902) (4,105,565) (349,343) (4,349,453)
-------- ----------- --------- -----------
Net increase (decrease) (222,954) $(2,975,237) 911,336 $11,954,488
======== =========== ========= ===========
- --------
(1)For the six months ended March 31, 2007, includes automatic conversion of
203,992 shares of Class B shares in the amount of $2,764,318 to 195,638
shares of Class A shares in the amount of $2,764,318.
(2)For the year ended September 30, 2006, includes automatic conversion of
239,315 shares of Class B shares in the amount of $3,094,224 to 230,195
shares of Class A shares in the amount of $3,094,224.
86
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited)
(continued)
International Small-Cap Fund
---------------------------------------------------------------------------------
Class A Class B
------------------------------------------- ------------------------------------
For the For the For the For the
six months ended period May 2, 2006@ six months ended period May 2, 2006@
March 31, 2007 through March 31, 2007 through
(unaudited) September 30, 2006 (unaudited) September 30, 2006
------------------- ---------------------- ---------------- ------------------
Shares Amount Shares Amount Shares Amount Shares Amount
------- ---------- --------- ----------- ------ -------- ------ --------
Shares sold............ 172,808 $2,128,106 1,979,431 $24,347,088 16,262 $203,764 53,478 $612,219
Reinvested dividends... -- -- -- -- -- -- -- --
Shares redeemed........ (44,063) (537,261) (28,793) (311,514) (2,247) (26,807) (557) (6,051)
------- ---------- --------- ----------- ------ -------- ------ --------
Net increase (decrease) 128,745 $1,590,846 1,950,638 $24,035,574 14,015 $176,957 52,921 $606,168
======= ========== ========= =========== ====== ======== ====== ========
International Small-Cap Fund
-------------------------------------------
Class C
-------------------------------------------
For the For the
six months ended period May 2, 2006@
March 31, 2007 through
(unaudited) September 30, 2006
------------------- ----------------------
Shares Amount Shares Amount
------- ---------- --------- -----------
Shares sold............ 30,533 $ 386,024 313,677 $ 3,605,692
Reinvested dividends... -- -- -- --
Shares redeemed........ (53,663) (627,738) (8,463) (93,043)
------- ---------- --------- -----------
Net increase (decrease) (23,130) $ (241,714) 305,214 $ 3,512,649
======= ========== ========= ===========
- --------
@ Commencement of operations
Note 9. Line of Credit
The AIG 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, 2007, the following Funds
had borrowings:
Weighted
Days Interest Average Debt Average
Fund Outstanding Charges Utilized Interest
- ---- ----------- -------- ------------ --------
Blue Chip Growth.... 1 $ 56 $ 346,258 5.81%
Growth and Income... 6 710 731,043 5.82
Balanced Assets..... 8 244 190,065 5.77
International Equity 22 1,049 296,923 5.78
Tax Managed Equity.. 59 10,923 1,154,333 5.77
At March 31, 2007, Growth & Income Fund had a balance open under the line of
credit of $648,482.
Note 10. Interfund Lending Agreement
Pursuant to exemptive relief granted by the SEC, the Funds are permitted to
participate in an interfund lending program among investment companies
advised by AIG SunAmerica 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, 2007, none of the
Funds participated in this program.
87
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited)
(continued)
Note 11. Trustees Retirement Plan
The Trustees of the SunAmerica Equity Funds have adopted the AIG SunAmerica
Disinterested Trustees' and Directors' Retirement Plan (the "Retirement
Plan") effective January 1, 1993, as amended December 9, 2006, for the
unaffiliated Trustees. The Retirement Plan provides generally that an
unaffiliated Trustee may become a participant ("Participant") in the
Retirement Plan if he or she has at least 10 years of consecutive service as
a Disinterested Trustee of any of the adopting AIG SunAmerica mutual funds
(the "Adopting Funds") or has attained the age of 60 while a Trustee and
completed five (5) consecutive years of service as a Trustee of any Adopting
Fund (an "Eligible Trustee"). Pursuant to the Retirement Plan, an Eligible
Trustee may receive benefits upon (i) his or her death or disability while a
Trustee or (ii) the termination of his or her tenure as a Trustee, other
than removal for cause from each of the Adopting Funds with respect to which
he or she is an Eligible Trustee.
As of each of the first 10 birthdays after becoming a Participant and on
which he or she is both a Trustee and Participant, 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
Adopting Fund for the calendar year in which such birthday occurs. In
addition, an amount equal to 8.50% of any amounts credited under the
preceding statement during prior years is added to each Eligible Trustee's
account. The rights of any Participant to benefits under the Retirement Plan
shall be an unsecured claim against the assets of the Adopting Funds.
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 15 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
Liability Expense Payments
--------------- --------------- ---------------
Fund As of March 31, 2007
- ---- -----------------------------------------------
Blue Chip Growth.............. $28,846 $ 563 $1,090
Growth Opportunities.......... 24,601 555 807
New Century................... 45,418 669 1,582
Growth and Income............. 38,354 914 1,139
Balanced Assets............... 78,994 1,261 3,172
International Equity.......... 17,981 799 583
Value......................... 31,534 1,745 921
Tax Managed Equity............ 10,616 356 277
International Small-Cap Equity 91 91 --
Note 12. Investment Concentration
Some of the Funds 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 and
International Small-Cap Fund. At March 31, 2007, the International Equity
Fund and International Small-Cap Fund had approximately 23% and 27%,
respectively, of their net assets invested in equity securities of companies
domiciled in Japan.
Note 13. Subsequent Event
On May 15, 2007, the Tax Managed Equity Fund changed its name to the
"SunAmerica Disciplined Growth Fund." The Fund seeks capital appreciation by
active trading of equity securities that demonstrate the potential for
capital appreciation, without regard to market capitalization.
88
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited)
(continued)
Note 14. Other Information
On February 9, 2006, AIG, the parent company and an affiliated person of the
Adviser, the Distributor and AIGGIC, the subadviser to two Funds, (the
"Subadviser"), announced that it had consented to the settlement of an
injunctive action instituted by the 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 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, the Subadviser and the Distributor expect 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 States 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 made 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.
89
SunAmerica Equity Funds
RESULTS OF SPECIAL MEETING OF SHAREHOLDERS -- March 31, 2007 --
(unaudited)
On March 2, 2007, a Special Meeting of Shareholders was held to consider a
proposal to approve an Agreement and Plan of Reorganization (the
"Reorganization Agreement") pursuant to which the Biotech/Health Fund would
transfer all of its assets to the New Century Fund, in exchange solely for the
assumption of the Biotech/Health Fund's liabilities by the New Century Fund and
Class A, Class B and Class C shares of the New Century Fund, which shares will
be distributed by the Biotech/Health Fund to the holders of its shares in
complete liquidation thereof. The voting results of this Special Meeting are as
follows:
Shares Voted
------------
For.... 1,115,977
Against 66,086
Abstain 127,719
90
SunAmerica Equity Funds
TRUSTEE AND OFFICER INFORMATION -- March 31, 2007 -- (unaudited)
The following table contains information regarding the Trustees and Officers
that oversee operations of the Funds and other investment companies within the
Fund complex.
Term of Number of
Position Office and Portfolios in
Name, Held With Length of Fund Complex
Address and SunAmerica Time Principal Occupations Overseen by Other Directorships
Date of Birth* Complex Served(4) During Past 5 Years Trustee(1) Held by Trustee(2)
- ---------------------- ---------- ------------ ----------------------------- ------------- -----------------------------
Disinterested Trustees
Jeffrey S. Burum Trustee 2004-Present Founder and CEO of 42 None
DOB: February 27, 1963 Sourthern California
Development Corporation/
National Housing
Development Corporation
(1992 to present); Founder,
Owner and Partner of
Colonies Crossroads, Inc.
(1999 to present); Owner and
Managing Member of
Diversified Pacific
Development Group LLC
(1998 to present).
Dr. Judith L. Craven Trustee 2001-Present Retired. 89 Director, Belo Corp. (1992 to
DOB: October 6, 1945 present); Director, Sysco
Corp. (1996 to present);
Director, Luby's, Inc. (1998
to present): Director,
University of Texas Board of
Regents (2001-present).
William F. Devin Trustee 2001-Present Retired. 90 Director, Boston Options
DOB: December 30, 1938 Exchange (1985-present).
Samuel M. Eisenstat Chairman 1986-Present Attorney, solo practitioner. 51 Director, North European Oil
DOB: March 7, 1940 of the Royalty Trust.
Board
Stephen J. Gutman Trustee 1986-Present Senior Associate, Corcoran 51 None
DOB: May 10, 1943 Group (Real Estate) (2003 to
present); President and
Member of Managing
Directors, Beau Brummell-
Soho LLC (licensing of
menswear specialty retailing
and other activities) (June
1988 to present).
William J. Shea Trustee 2004-Present Managing Partner, DLB 51 Director, Boston Private
DOB: February 9, 1948 Capital, LLC (Private Equity) Financial Holdings (October
(2006-Present) President and 2004 to present).
CEO, Conseco, Inc. (Financial
Services) (2001-2004);
Chairman of the Board of
Centennial Technologies, Inc.
(1998 to 2001).
Interested Trustee
Peter A. Harbeck(3) Trustee 1995-Present President, CEO and Director, 98 None
DOB: January 23, 1954 AIG SunAmerica. (August
1995 to present); Director,
AIG SunAmerica Capital
Services, Inc. ("AIG SACS")
(August 1993 to present)
President and CEO, AIG
Advisor Group, Inc. (June
2004 to present).
91
SunAmerica Equity Funds
TRUSTEE AND OFFICER INFORMATION -- March 31, 2007 -- (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, AIG N/A N/A
DOB: May 28, 1950 SunAmerica (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, AIG N/A N/A
DOB: June 25, 1966 SunAmerica (December 2004
to present); Vice President,
AIG SunAmerica (1997 to
December 2004).
Gregory N. Bressler Secretary September Senior Vice President and N/A N/A
DOB: November 17, and Chief 2005 to General Counsel, AIG
1966 Legal Present SunAmerica (June 2005 to
Officer present); Vice President and
Director of U.S. Asset
Management Compliance,
Goldman Sachs Asset
Management L.P. (June 2004
to June 2005); Deputy
General Counsel, Credit
Suisse Asset Management
LLC (June 2002 to June
2004); Counsel, Credit Suisse
Asset Management LLC
(January 2000 to June 2002).
James Nichols Vice 2006-present Director, President and CEO, N/A N/A
DOB: April 7, 1966 President AIG SACS (July 2006 to
present); Senior Vice
President, AIG SACS (March
2002 to July 2006); Vice
President, AIG SunAmerica
(1995 to March 2002).
Cynthia Gibbons Chief 2005-present Vice President, AIG N/A N/A
DOB: December 6, 1967 Compliance SunAmerica (August 2002 to
Officer present); Securities
Compliance Manager,
American General
Investment Management,
(June 2000 to August 2002).
92
SunAmerica Equity Funds
TRUSTEE AND OFFICER INFORMATION -- March 31, 2007 -- (unaudited)
(continued)
Number of
Position Held Term of Portfolios in
Name, 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)
- ---------------------- ------------- -------------- --------------------------------- ------------- -------------------
Nori L. Gabert Vice 2005-present Vice President and Deputy N/A N/A
DOB: August 15, 1953 President General Counsel, AIG
and SunAmerica (2001 to present);
Assistant Vice President and Secretary,
Secretary VALIC Company I and VALIC
Company II (2000 to present);
Formerly, Associate General
Counsel, American General
Corporation, (1997 to 2001).
Timothy Pettee Vice August 2004- Chief Investment Officer, AIG N/A N/A
DOB: April 7, 1958 President present SunAmerica (January 2003-
present); Executive Vice
President and Global Director
of Research Schroder
Investment Management (2000-
2002); Director of Research
U.S. Trust Co. (1998-2000).
Gregory R. Kingston Vice 2002-present Vice President, AIG N/A N/A
DOB: January 18, 1966 President SunAmerica (2001-present);
and Formerly, Vice President,
Assistant American General Investment
Treasurer Management, L.P. (1999-2001)
Matthew J. Hackethal Anti- 2006-present Senior Compliance Manager, N/A N/A
DOB: December 31, 1971 Money AIG SunAmerica (November
Laundering 2006 to present); Vice President,
Compliance Credits Suisse Asset
Officer Management (May, 2001 to
October 2006); CCO, Credit
Suisse Alternative Funds
(November 2005 to October
2006); CCO, Credit Suisse Asset
Management Securities, Inc.
(April 2004 to August 2005)
- --------
* The business address for each Trustee is the Harborside Financial Center,
3200 Plaza 5, Jersey City, NJ 07311-4992.
(1) The "Fund Complex" means two or more registered investment companies that
hold themselves out to investors as related companies for purposes of
investment services or have a common investment advisor that is an
affiliated person of the Advisor. The "Fund Complex" includes the
SunAmerica Money Market Funds (2 funds), SunAmerica Equity Funds (9 funds),
SunAmerica Income Funds (5 funds), SunAmerica Focused Series, Inc. (18
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 (35 portfolios), VALIC Company I (32 portfolios),
VALIC Company II (15 funds), Seasons Series Trust (24 portfolios) and AIG
Series Trust (5 portfolios). AIG Strategic Hedge Fund of Funds (1 fund) and
Brazos Mutual Funds (4 funds).
(2) Directorships of companies required to report to the SEC under the
Securities Exchange Act of 1934 (i.e. "public companies") or other
investment companies registered under the 1940 Act.
(3) Interested Trustee, as defined within the 1940 Act, because he is an
officer and a director of the Adviser 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 10 of the
financial statements. Each officer will hold office for an indefinite term,
until the date he or she resigns or retires or until his/her successor is
duly elected and qualifies.
Additional information concerning the Trustees is contained in the Statement of
Additional Information which is available, without charge, by calling (800)
858-8850.
93
[LOGO] AIG Sun America
Mutual Funds
Harborside Financial Center
3200 Plaza 5
Jersey City, NJ 07311-4992
Trustees Shareholder Servicing This report is submitted
Samuel M. Eisenstat Agent solely for the general
Peter A. Harbeck AIG SunAmerica Fund information of
Dr. Judith L. Craven Services, Inc. shareholders of the
William F. Devin Harborside Financial Funds. Distribution of
Stephen J. Gutman Center this report to persons
Jeffrey S. Burum 3200 Plaza 5 other than shareholders
William J. Shea Jersey City, NJ of the Funds is
07311-4992 authorized only in
Officers con-nection with a
Vincent M. Marra, Custodian and Transfer currently effective
President and Chief Agent pro-spectus, setting
Executive Officer State Street Bank and forth details of the
Donna M. Handel, Trust Company Funds, which must precede
Treasurer P.O. Box 5607 or accom-pany this report.
Timothy P. Pettee, Vice Boston, MA 02110
President DELIVERY OF SHAREHOLDER
James Nichols, Vice VOTING PROXIES ON TRUST DOCUMENTS
President PORTFOLIO SECURITIES The Funds have adopted a
Cynthia Gibbons, Vice A description of the policy that allows them
President and Chief policies and procedures to send only one copy of
Compliance Officer that the Trust uses to a Fund's prospectus,
Gregory N. Bressler, determine how to vote proxy material, annual
Chief Legal Officer proxies relating to report and semi-annual
and Secretary securities held in a report (the "shareholder
Gregory R. Kingston, Fund's portfolio which is documents") to
Vice President and available in the Trust's shareholders with
Assistant Treasurer Statement of Additional multiple accounts
Corey A. Issing, Information, may be residing at the same
Assistant Secretary obtained without charge "household." This
Kathleen Fuentes, upon request, by calling practice is called
Assistant Secretary (800) 858-8850. This householding and reduces
Nori L. Gabert, Vice in-formation is also Fund expenses, which
President and available from the EDGAR benefits you and other
Assistant Secretary database on the U.S. shareholders. Unless the
Matthew Hackethal, Securities and Ex-change Funds receive
Anti-Money Laundering Commission's website at instructions to the
Compliance Officer http://www.sec.gov. con-trary, you will only
John E. Smith Jr., receive one copy of the
Assistant Treasurer PROXY VOTING RECORD ON shareholder documents.
SUNAMERICA EQUITY FUNDS The Funds will continue
Investment Adviser Information regarding how to household the
AIG SunAmerica Asset SunAmerica Equity Funds share-holder documents
Management Corp. voted proxies relating to indefinitely, until we
Harborside Financial securities held in are instructed otherwise.
Center SunAmerica Equity Funds If you do not wish to
3200 Plaza 5 during the most recent participate in
Jersey City, NJ twelve month period ended householding, please
07311-4992 June 30 is available, contact Shareholder
once filed with the U.S. Services at (800)
Distributor Securities and Exchange 858-8850 ext. 6010 or
AIG SunAmerica Capital Commission, without send a written request
Services, Inc. charge, upon request, by with your name, the name
Harborside Financial calling (800) 858-8850 or of your fund(s) and your
Center on the U.S. Securities account number(s) to AIG
3200 Plaza 5 and Exchange Commission's SunAmerica Mutual Funds
Jersey City, NJ website at c/o BFDS, P.O. Box
07311-4992 http://www.sec.gov. 219186, Kansas City MO,
64121-9186. We will
DISCLOSURE OF QUARTERLY resume individual
PORTFOLIO HOLDINGS mailings for your account
The Trust is required to within thirty (30) days
file its complete of receipt of your
schedule of portfolio request.
holdings with the U.S.
Securities and Exchange The accompanying report
Commission for its first has not been audited by
and third fiscal quarters independent accountants
on Form N-Q. The Trust's and accordingly no
Forms N-Q are available opinion has been
on the U.S. Securities expressed thereon.
and Exchange Commission's
website at
http://www.sec.gov. You
can also review and
obtain copies of the
Forms N-Q at the U.S.
Securities and Exchange
Com-mission's Public
Reference Room in
Wash-ington, DC
(information on the
operation of Public
Reference Room may be
obtained by calling
1-800-SEC-0330).
94
[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 investing.
www.sunamericafunds.com
EQSAN-3/07
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.
There were no material changes to the procedures by which shareholders
may recommend nominees to the Registrant's Board of Trustees that were
implemented after the Registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR
299.407) (as required by 22(b)(15)) of Schedule 14A (17 CFR 240.14a-
101), or this Item 10.
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 as defined under Rule 30a-3(c)
under the Investment Company Act of 1940 (17 CFR 270. 30a-3(c)). 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 last 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) Certifications 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 Rule 30a-2(b)under the Investment Company
Act of 1940 (17 CFR 270. 30a-2(a)) and 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 8, 2007
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 8, 2007
By: /s/ Donna M. Handel
-------------------
Donna M. Handel
Treasurer
Date: June 8, 2007