UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-04801
---------------------------------------------
SunAmerica Equity Funds
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Harborside Financial Center, 3200 Plaza 5 Jersey City, NJ 07311
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
John T. Genoy
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) 324-6414
-----------------------------
Date of fiscal year end: September 30
--------------------------
Date of reporting period: March 31, 2008
-------------------------
Item 1. Reports to Stockholders
LOGO
SEMI-ANNUAL REPORT 2008
SUNAMERICA
Equity Funds
LOGO
www.sunamericafunds.com
live longer retire stronger/sm/
March 31, 2008 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)
SunAmerica Disciplined Growth Fund (TXMAX)
SunAmerica International Small-Cap Fund (SAESX)
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...... 67
Shareholder Letter
Dear Shareholder,
The semi-annual period ended March 31, 2008 was a challenging time for the
equity markets.
Equity prices declined across the board during the six-month period, as the Dow
Jones Industrial Average (DJIA), S&P 500 Index, and Russell 2000 Index returned
- -10.64%, -12.46% and -14.02%, respectively. The NASDAQ Composite was the
worst-performing major index, losing -15.28% during the semi-annual period.
International markets also retreated with the benchmark MSCI EAFE Index
returning -10.50% over the six months.
A confluence of factors prompted the sell-off. The subprime mortgage crisis and
housing correction, the absence of liquidity in the credit markets, major
financial institutions taking write-downs and obtaining capital infusions,
rising food and energy prices creating inflationary concerns, a weakening U.S.
dollar and declining corporate earnings growth are several themes that defined
the period. Growing concern over where the economic slowdown will lead
continues to loom over the economy and the markets.
The Federal Reserve responded aggressively by cutting interest rates to end the
period with the Federal Funds rate at 2.25%. In addition, they coordinated
monetary activities with the European Central Bank, utilized the discount
window, and activated other innovative mechanisms in an attempt to improve
liquidity and increase confidence.
Given this backdrop, it is very important that you meet with your financial
adviser to review your portfolio and investment objectives.
Thank you for your investment in the SunAmerica Equity Funds. We continue to
work diligently to invest your capital in a manner consistent with each Fund's
individual investment objective. Be sure to visit our website,
www.sunamericafunds.com, for more information.
The SunAmerica Equity Funds Investment Professionals
AIG SunAmerica Asset Management Corp. AIG Investments
- ---------------
John Massey Alison Larkin Hans Danielsson
Steve Neimeth Brendan Voege Robin Thorn
Paul Ma Ben Barrett
Jay Rushin Mike Beaulieu
Soraya Benitez Andrew Sheridan
Sandra Salas Jay Merchant
Sarah Kallok Kara Murphy
Karen Forte
- --------
Past performance is no guarantee of future results.
2
SunAmerica Equity Funds
EXPENSE EXAMPLE -- March 31, 2008 -- (unaudited)
Disclosure of Portfolio Expenses in Shareholder Reports
As a shareholder of a Fund (each, a "Fund" and collectively, the "Funds") 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, 2007 and
held until March 31, 2008.
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, 2008" 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, 2008" 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, 2008" 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, 2008" 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, 2008"
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, 2008" 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, 2008" 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, 2008 -- (unaudited) (continued)
Actual Hypothetical
----------------------------------------- -----------------------------------------
Ending Account
Ending Account Expense Paid Value using Expense Paid
Value Using During the a Hypothetical During the Expense
Beginning Actual Six Months Beginning 5% Assumed Six Months Ratio
Account Value Return at Ended Account Value Return at Ended as of
at October 1, March 31, March 31, at October 1, March 31, March 31, March 31,
Fund 2007 2008 2008 2007 2008 2008 2008*
- ---- ------------- -------------- ------------ ------------- -------------- ------------ ---------
Blue Chip Growth Fund@
Class A................... $1,000.00 $884.21 $ 7.63 $1,000.00 $1,016.90 $ 8.17 1.62%
Class B................... $1,000.00 $880.75 $11.24 $1,000.00 $1,013.05 $12.03 2.39%
Class C................... $1,000.00 $880.41 $11.80 $1,000.00 $1,012.45 $12.63 2.51%
Class I#.................. $1,000.00 $885.32 $ 6.27 $1,000.00 $1,018.35 $ 6.71 1.33%
Growth Opportunities Fund@
Class A................... $1,000.00 $771.62 $ 7.71 $1,000.00 $1,016.30 $ 8.77 1.74%
Class B................... $1,000.00 $768.23 $11.01 $1,000.00 $1,012.55 $12.53 2.49%
Class C................... $1,000.00 $768.28 $11.14 $1,000.00 $1,012.40 $12.68 2.52%
Class I#.................. $1,000.00 $773.70 $ 5.90 $1,000.00 $1,018.35 $ 6.71 1.33%
New Century Fund@
Class A................... $1,000.00 $783.16 $ 7.13 $1,000.00 $1,017.00 $ 8.07 1.60%
Class B................... $1,000.00 $779.69 $10.72 $1,000.00 $1,012.95 $12.13 2.41%
Class C#.................. $1,000.00 $781.06 $ 9.53 $1,000.00 $1,014.30 $10.78 2.14%
Growth and Income Fund@
Class A................... $1,000.00 $881.16 $ 7.38 $1,000.00 $1,017.15 $ 7.92 1.57%
Class B................... $1,000.00 $878.11 $10.75 $1,000.00 $1,013.55 $11.53 2.29%
Class C................... $1,000.00 $878.03 $10.56 $1,000.00 $1,013.75 $11.33 2.25%
Class I#.................. $1,000.00 $882.44 $ 6.21 $1,000.00 $1,018.40 $ 6.66 1.32%
Balanced Assets Fund@
Class A#.................. $1,000.00 $909.24 $ 7.59 $1,000.00 $1,017.05 $ 8.02 1.59%
Class B#.................. $1,000.00 $905.82 $11.05 $1,000.00 $1,013.40 $11.68 2.32%
Class C#.................. $1,000.00 $906.00 $10.82 $1,000.00 $1,013.65 $11.43 2.27%
Class I#.................. $1,000.00 $910.25 $ 6.26 $1,000.00 $1,018.45 $ 6.61 1.31%
International Equity Fund@
Class A................... $1,000.00 $896.87 $ 8.77 $1,000.00 $1,015.75 $ 9.32 1.85%
Class B#.................. $1,000.00 $893.44 $12.07 $1,000.00 $1,012.25 $12.83 2.55%
Class C#.................. $1,000.00 $893.86 $12.07 $1,000.00 $1,012.25 $12.83 2.55%
Class I#.................. $1,000.00 $896.13 $ 8.53 $1,000.00 $1,016.00 $ 9.07 1.80%
Value Fund@
Class A#.................. $1,000.00 $864.70 $ 7.60 $1,000.00 $1,016.85 $ 8.22 1.63%
Class B#.................. $1,000.00 $862.09 $10.61 $1,000.00 $1,013.60 $11.48 2.28%
Class C#.................. $1,000.00 $862.09 $10.61 $1,000.00 $1,013.60 $11.48 2.28%
Class I#.................. $1,000.00 $865.03 $ 7.13 $1,000.00 $1,017.35 $ 7.72 1.53%
Class Z#.................. $1,000.00 $866.98 $ 4.95 $1,000.00 $1,019.70 $ 5.35 1.06%
Disciplined Growth Fund@
Class A#.................. $1,000.00 $833.14 $ 6.65 $1,000.00 $1,017.75 $ 7.31 1.45%
Class B#.................. $1,000.00 $830.63 $ 9.61 $1,000.00 $1,014.50 $10.58 2.10%
Class C#.................. $1,000.00 $830.73 $ 9.61 $1,000.00 $1,014.50 $10.58 2.10%
International Small-Cap Fund
Class A#.................. $1,000.00 $850.51 $ 8.79 $1,000.00 $1,015.50 $ 9.57 1.90%
Class B#.................. $1,000.00 $847.76 $11.78 $1,000.00 $1,012.25 $12.83 2.55%
Class C#.................. $1,000.00 $847.76 $11.78 $1,000.00 $1,012.25 $12.83 2.55%
- --------
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 183 days divided by 366
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 advisor either waived a portion of
or all of the fees and assumed a portion of or all expenses for the Funds or
through recoupment provisions, recovered a portion of or all fees and
expenses waived or reimbursed in the previous two fiscal years. As a result,
if these fees and expenses had not been waived or assumed, the
"Actual/Hypothetical Ending Account Value" would have been lower and the
"Actual/Hypothetical Expenses Paid During the Six Months Ended March 31,
2008" and the "Expense Ratios" would have been higher. If these fees and
expenses had not been recouped, the "Actual/Hypothetical Ending Account
Value" would have been higher and the "Actual/Hypothetical Expenses Paid
During the Six Months Ended March 31, 2008" 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, 2008 -- (unaudited) (continued)
Actual Hypothetical
--------------------------------------------- ---------------------------------------------
Ending Account
Ending Account Value using
Value Using a Hypothetical Expense
Beginning Actual Expense Paid Beginning 5% Assumed Expense Paid Ratio
Account Value Return at During the Account Value Return at During the as of
at October 1, March 31, Six Months Ended at October 1, March 31, Six Months Ended March 31,
Fund 2007 2008 March 31, 2008 2007 2008 March 31, 2008 2008 *
- ---- ------------- -------------- ---------------- ------------- -------------- ---------------- ---------
Blue Chip Growth Fund
Class A................ $1,000.00 $884.21 $ 7.58 $1,000.00 $1,016.95 $ 8.12 1.61%
Class B................ $1,000.00 $880.75 $11.19 $1,000.00 $1,013.10 $11.98 2.38%
Class C ............... $1,000.00 $880.41 $11.75 $1,000.00 $1,012.50 $12.58 2.50%
Class I#............... $1,000.00 $885.32 $ 6.22 $1,000.00 $1,018.40 $ 6.66 1.32%
Growth Opportunities Fund
Class A................ $1,000.00 $771.62 $ 6.82 $1,000.00 $1,017.30 $ 7.77 1.54%
Class B................ $1,000.00 $768.23 $10.12 $1,000.00 $1,013.55 $11.53 2.29%
Class C ............... $1,000.00 $768.28 $10.26 $1,000.00 $1,013.40 $11.68 2.32%
Class I#............... $1,000.00 $773.70 $ 5.06 $1,000.00 $1,019.30 $ 5.76 1.14%
New Century Fund
Class A................ $1,000.00 $783.16 $ 6.78 $1,000.00 $1,017.40 $ 7.67 1.52%
Class B................ $1,000.00 $779.69 $10.37 $1,000.00 $1,013.35 $11.73 2.33%
Class C# .............. $1,000.00 $781.06 $ 9.17 $1,000.00 $1,014.70 $10.38 2.06%
Growth and Income Fund
Class A................ $1,000.00 $881.16 $ 7.20 $1,000.00 $1,017.35 $ 7.72 1.53%
Class B................ $1,000.00 $878.11 $10.56 $1,000.00 $1,013.75 $11.33 2.25%
Class C ............... $1,000.00 $878.03 $10.38 $1,000.00 $1,013.95 $11.13 2.21%
Class I#............... $1,000.00 $882.44 $ 6.02 $1,000.00 $1,018.60 $ 6.46 1.28%
Balanced Assets Fund
Class A#............... $1,000.00 $909.24 $ 7.49 $1,000.00 $1,017.15 $ 7.92 1.57%
Class B#............... $1,000.00 $905.82 $10.96 $1,000.00 $1,013.50 $11.58 2.30%
Class C# .............. $1,000.00 $906.00 $10.72 $1,000.00 $1,013.75 $11.33 2.25%
Class I#............... $1,000.00 $910.25 $ 6.16 $1,000.00 $1,018.55 $ 6.51 1.29%
International Equity Fund
Class A................ $1,000.00 $896.87 $ 8.77 $1,000.00 $1,015.75 $ 9.32 1.85%
Class B#............... $1,000.00 $893.44 $12.07 $1,000.00 $1,012.25 $12.83 2.55%
Class C# .............. $1,000.00 $893.86 $12.07 $1,000.00 $1,012.25 $12.83 2.55%
Class I#............... $1,000.00 $896.13 $ 8.53 $1,000.00 $1,016.00 $ 9.07 1.80%
Value Fund
Class A#............... $1,000.00 $864.70 $ 7.41 $1,000.00 $1,017.05 $ 8.02 1.59%
Class B#............... $1,000.00 $862.09 $10.43 $1,000.00 $1,013.80 $11.28 2.24%
Class C# .............. $1,000.00 $862.09 $10.43 $1,000.00 $1,013.80 $11.28 2.24%
Class I#............... $1,000.00 $865.03 $ 6.95 $1,000.00 $1,017.55 $ 7.52 1.49%
Class Z#............... $1,000.00 $866.98 $ 4.81 $1,000.00 $1,019.85 $ 5.20 1.03%
Disciplined Growth Fund
Class A#............... $1,000.00 $833.14 $ 6.37 $1,000.00 $1,018.05 $ 7.01 1.39%
Class B#............... $1,000.00 $830.63 $ 9.34 $1,000.00 $1,014.80 $10.28 2.04%
Class C# .............. $1,000.00 $830.73 $ 9.34 $1,000.00 $1,014.80 $10.28 2.04%
5
SunAmerica Equity Funds
STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2008 -- (unaudited)
Blue Chip Growth New
Growth Opportunities Century
Fund Fund Fund
------------ ------------- -------------
ASSETS:
Long-term investment securities, at market value (unaffiliated)*.......... $ 57,308,101 $ 33,739,382 $ 63,339,220
Short-term investment securities, at market value (unaffiliated)*......... -- -- --
Repurchase agreements (cost approximates market value).................... 2,392,000 5,178,000 5,409,000
------------ ------------- -------------
Total investments....................................................... 59,700,101 38,917,382 68,748,220
------------ ------------- -------------
Cash...................................................................... 533 44 172
Foreign cash*............................................................. -- -- --
Receivable for:
Fund shares sold........................................................ 30,167 8,507 12,619
Dividends and interest.................................................. 39,238 6,278 29,061
Investments sold........................................................ 499,461 3,516,055 5,970,166
Prepaid expenses and other assets......................................... 2,924 43,784 15,933
Due from investment adviser for expense reimbursements/fee waivers........ 1,000 807 1,440
------------ ------------- -------------
Total assets.............................................................. 60,273,424 42,492,857 74,777,611
------------ ------------- -------------
LIABILITIES:
Payable for:
Fund shares redeemed.................................................... 68,291 15,721 61,407
Investments purchased................................................... 159,962 453,489 1,081,292
Investment advisory and management fees................................. 38,018 26,728 46,870
Distribution and service maintenance fees............................... 25,818 20,348 27,752
Transfer agent fees and expenses........................................ 29,476 25,220 35,978
Trustees' fees and expenses............................................. 28,242 24,668 48,196
Other accrued expenses.................................................. 82,434 90,878 95,441
Due to custodian.......................................................... -- -- --
------------ ------------- -------------
Total liabilities......................................................... 432,241 657,052 1,396,936
------------ ------------- -------------
Net Assets................................................................ $ 59,841,183 $ 41,835,805 $ 73,380,675
============ ============= =============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value............................. $ 37,359 $ 29,433 $ 43,353
Paid-in capital........................................................... 124,809,826 248,216,769 200,353,203
------------ ------------- -------------
124,847,185 248,246,202 200,396,556
Accumulated undistributed net investment income (loss).................... (304,829) (229,605) (356,931)
Accumulated undistributed net realized gain (loss) on investments, futures
contracts, options contracts, securities sold short and foreign exchange
transactions............................................................. (67,899,794) (206,504,060) (125,915,378)
Unrealized appreciation (depreciation) on investments..................... 3,198,621 323,268 (743,572)
Unrealized foreign exchange gain (loss) on other assets and liabilities... -- -- --
------------ ------------- -------------
Net Assets................................................................ $ 59,841,183 $ 41,835,805 $ 73,380,675
============ ============= =============
*Cost
Long-term investment securities (unaffiliated).......................... $ 54,109,480 $ 33,416,114 $ 64,082,792
============ ============= =============
Short-term investment securities (unaffiliated)......................... $ -- $ -- $ --
============ ============= =============
Foreign cash............................................................ $ -- $ -- $ --
============ ============= =============
Growth and Balanced
Income Assets
Fund Fund
------------ ------------
ASSETS:
Long-term investment securities, at market value (unaffiliated)*.......... $ 83,665,844 $120,632,909
Short-term investment securities, at market value (unaffiliated)*......... -- --
Repurchase agreements (cost approximates market value).................... 2,539,000 6,378,000
------------ ------------
Total investments....................................................... 86,204,844 127,010,909
------------ ------------
Cash...................................................................... 580 3,244
Foreign cash*............................................................. -- --
Receivable for:
Fund shares sold........................................................ 26,079 27,109
Dividends and interest.................................................. 132,939 614,762
Investments sold........................................................ 4,272,937 2,964,314
Prepaid expenses and other assets......................................... 7,951 15,532
Due from investment adviser for expense reimbursements/fee waivers........ 940 3,123
------------ ------------
Total assets.............................................................. 90,646,270 130,638,993
------------ ------------
LIABILITIES:
Payable for:
Fund shares redeemed.................................................... 69,502 73,545
Investments purchased................................................... 1,805,433 501,078
Investment advisory and management fees................................. 56,077 82,428
Distribution and service maintenance fees............................... 43,882 51,034
Transfer agent fees and expenses........................................ 38,779 62,901
Trustees' fees and expenses............................................. 38,444 76,093
Other accrued expenses.................................................. 82,524 112,286
Due to custodian.......................................................... -- --
------------ ------------
Total liabilities......................................................... 2,134,641 959,365
------------ ------------
Net Assets................................................................ $ 88,511,629 $129,679,628
============ ============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value............................. $ 65,081 $ 91,107
Paid-in capital........................................................... 125,824,442 200,000,873
------------ ------------
125,889,523 200,091,980
Accumulated undistributed net investment income (loss).................... 371,124 217,320
Accumulated undistributed net realized gain (loss) on investments, futures
contracts, options contracts, securities sold short and foreign exchange
transactions............................................................. (34,676,136) (71,365,967)
Unrealized appreciation (depreciation) on investments..................... (3,072,882) 736,295
Unrealized foreign exchange gain (loss) on other assets and liabilities... -- --
------------ ------------
Net Assets................................................................ $ 88,511,629 $129,679,628
============ ============
*Cost
Long-term investment securities (unaffiliated).......................... $ 86,738,726 $119,896,614
============ ============
Short-term investment securities (unaffiliated)......................... $ -- $ --
============ ============
Foreign cash............................................................ $ -- $ --
============ ============
See Notes to Financial Statements
6
SunAmerica Equity Funds
STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2008 -- (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.................................................... $44,679,720 $27,504,463 $62,752,718 $56,170,532 $106,272,890
Shares of beneficial interest issued and outstanding.......... 2,696,967 1,846,446 3,627,419 4,029,136 7,464,797
Net asset value and redemption price per share................ $ 16.57 $ 14.90 $ 17.30 $ 13.94 $ 14.24
Maximum sales charge (5.75% of offering price)................ 1.01 0.91 1.06 0.85 0.87
----------- ----------- ----------- ----------- ------------
Maximum offering price to public.............................. 17.58 15.81 18.36 14.79 15.11
=========== =========== =========== =========== ============
Class B (unlimited shares authorized):
Net assets.................................................... $10,667,868 $ 9,097,850 $ 6,792,995 $13,707,788 $ 11,429,638
Shares of beneficial interest issued and outstanding.......... 733,256 696,366 453,684 1,051,030 804,593
Net asset value, offering and redemption price per share
(excluding any applicable contingent deferred sales charge). $ 14.55 $ 13.06 $ 14.97 $ 13.04 $ 14.21
=========== =========== =========== =========== ============
Class C (unlimited shares authorized):
Net assets.................................................... $ 3,909,815 $ 5,125,806 $ 3,834,962 $18,324,123 $ 11,379,765
Shares of beneficial interest issued and outstanding.......... 271,028 393,350 254,149 1,405,885 799,383
Net asset value, offering and redemption price per share
(excluding any applicable contingent deferred sales charge). $ 14.43 $ 13.03 $ 15.09 $ 13.03 $ 14.24
=========== =========== =========== =========== ============
Class I (unlimited shares authorized):
Net assets.................................................... $ 583,780 $ 107,686 $ -- $ 309,186 $ 597,335
Shares of beneficial interest issued and outstanding.......... 34,692 7,095 -- 22,054 41,892
Net asset value, offering and redemption price per share...... $ 16.83 $ 15.18 $ -- $ 14.02 $ 14.26
=========== =========== =========== =========== ============
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, 2008 -- (unaudited)
(continued)
International
Equity
Fund
-------------
ASSETS:
Long-term investment securities, at market value (unaffiliated)*........................................ $106,671,661
Short-term investment securities, at market value (unaffiliated)*....................................... --
Repurchase agreements (cost approximates market value).................................................. 681,000
------------
Total investments..................................................................................... 107,352,661
------------
Cash.................................................................................................... --
Foreign cash*........................................................................................... 273,218
Receivable for:
Fund shares sold...................................................................................... 76,490
Dividends and interest................................................................................ 781,445
Investments sold...................................................................................... 1,457,390
Prepaid expenses and other assets....................................................................... 2,310
Due from investment adviser for expense reimbursements/fee waivers...................................... 3,272
------------
Total assets............................................................................................ 109,946,786
------------
LIABILITIES:
Payable for:
Fund shares redeemed.................................................................................. 169,148
Investments purchased................................................................................. 1,093,667
Investment advisory and management fees............................................................... 92,621
Distribution and service maintenance fees............................................................. 52,898
Transfer agent fees and expenses...................................................................... 35,568
Trustees' fees and expenses........................................................................... 18,663
Other accrued expenses................................................................................ 86,709
Due to custodian........................................................................................ 959
------------
Total liabilities....................................................................................... 1,550,233
------------
Net Assets.............................................................................................. $108,396,553
============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value........................................................... $ 68,693
Paid-in capital......................................................................................... 115,728,106
------------
115,796,799
Accumulated undistributed net investment income (loss).................................................. (266,861)
Accumulated undistributed net realized gain (loss) on investments, futures contracts, options contracts,
securities sold short and foreign exchange transactions................................................ (11,105,454)
Unrealized appreciation (depreciation) on investments................................................... 3,960,056
Unrealized foreign exchange gain (loss) on other assets and liabilities................................. 12,013
------------
Net Assets............................................................................................ $108,396,553
============
*Cost
Long-term investment securities (unaffiliated)........................................................ $102,711,605
============
Short-term investment securities (unaffiliated)....................................................... $ --
============
Foreign cash.......................................................................................... $ 272,974
============
Value
Fund
------------
ASSETS:
Long-term investment securities, at market value (unaffiliated)*........................................ $147,741,201
Short-term investment securities, at market value (unaffiliated)*....................................... --
Repurchase agreements (cost approximates market value).................................................. 13,310,000
------------
Total investments..................................................................................... 161,051,201
------------
Cash.................................................................................................... 689
Foreign cash*........................................................................................... --
Receivable for:
Fund shares sold...................................................................................... 33,775
Dividends and interest................................................................................ 270,017
Investments sold...................................................................................... 9,880,259
Prepaid expenses and other assets....................................................................... 18,213
Due from investment adviser for expense reimbursements/fee waivers...................................... 20,525
------------
Total assets............................................................................................ 171,274,679
------------
LIABILITIES:
Payable for:
Fund shares redeemed.................................................................................. 234,758
Investments purchased................................................................................. --
Investment advisory and management fees............................................................... 144,478
Distribution and service maintenance fees............................................................. 67,164
Transfer agent fees and expenses...................................................................... 57,397
Trustees' fees and expenses........................................................................... 33,982
Other accrued expenses................................................................................ 94,380
Due to custodian........................................................................................ --
------------
Total liabilities....................................................................................... 632,159
------------
Net Assets.............................................................................................. $170,642,520
============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value........................................................... $ 122,429
Paid-in capital......................................................................................... 182,468,694
------------
182,591,123
Accumulated undistributed net investment income (loss).................................................. 567,247
Accumulated undistributed net realized gain (loss) on investments, futures contracts, options contracts,
securities sold short and foreign exchange transactions................................................ (12,752,583)
Unrealized appreciation (depreciation) on investments................................................... 236,733
Unrealized foreign exchange gain (loss) on other assets and liabilities................................. --
------------
Net Assets............................................................................................ $170,642,520
============
*Cost
Long-term investment securities (unaffiliated)........................................................ $147,504,468
============
Short-term investment securities (unaffiliated)....................................................... $ --
============
Foreign cash.......................................................................................... $ --
============
Disciplined
Growth
Fund
------------
ASSETS:
Long-term investment securities, at market value (unaffiliated)*........................................ $ 54,017,714
Short-term investment securities, at market value (unaffiliated)*....................................... --
Repurchase agreements (cost approximates market value).................................................. 10,105,000
------------
Total investments..................................................................................... 64,122,714
------------
Cash.................................................................................................... 792,050
Foreign cash*........................................................................................... 61,031
Receivable for:
Fund shares sold...................................................................................... 113,070
Dividends and interest................................................................................ 46,654
Investments sold...................................................................................... 4,484,201
Prepaid expenses and other assets....................................................................... 45,396
Due from investment adviser for expense reimbursements/fee waivers...................................... 15,387
------------
Total assets............................................................................................ 69,680,503
------------
LIABILITIES:
Payable for:
Fund shares redeemed.................................................................................. 123,046
Investments purchased................................................................................. 7,604,300
Investment advisory and management fees............................................................... 45,729
Distribution and service maintenance fees............................................................. 37,543
Transfer agent fees and expenses...................................................................... 16,097
Trustees' fees and expenses........................................................................... 10,981
Other accrued expenses................................................................................ 53,957
Due to custodian........................................................................................ --
------------
Total liabilities....................................................................................... 7,891,653
------------
Net Assets.............................................................................................. $ 61,788,850
============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value........................................................... $ 43,659
Paid-in capital......................................................................................... 84,524,372
------------
84,568,031
Accumulated undistributed net investment income (loss).................................................. (197,835)
Accumulated undistributed net realized gain (loss) on investments, futures contracts, options contracts,
securities sold short and foreign exchange transactions................................................ (22,594,030)
Unrealized appreciation (depreciation) on investments................................................... 4,772
Unrealized foreign exchange gain (loss) on other assets and liabilities................................. 7,912
------------
Net Assets............................................................................................ $ 61,788,850
============
*Cost
Long-term investment securities (unaffiliated)........................................................ $ 54,012,942
============
Short-term investment securities (unaffiliated)....................................................... $ --
============
Foreign cash.......................................................................................... $ 53,266
============
International
Small-Cap
Fund
-------------
ASSETS:
Long-term investment securities, at market value (unaffiliated)*........................................ $29,637,895
Short-term investment securities, at market value (unaffiliated)*....................................... 136,000
Repurchase agreements (cost approximates market value).................................................. --
-----------
Total investments..................................................................................... 29,773,895
-----------
Cash.................................................................................................... 180
Foreign cash*........................................................................................... 357,962
Receivable for:
Fund shares sold...................................................................................... 28,797
Dividends and interest................................................................................ 77,984
Investments sold...................................................................................... 472,095
Prepaid expenses and other assets....................................................................... 109
Due from investment adviser for expense reimbursements/fee waivers...................................... 16,614
-----------
Total assets............................................................................................ 30,727,636
-----------
LIABILITIES:
Payable for:
Fund shares redeemed.................................................................................. 48,408
Investments purchased................................................................................. 520,876
Investment advisory and management fees............................................................... 28,546
Distribution and service maintenance fees............................................................. 11,316
Transfer agent fees and expenses...................................................................... 8,221
Trustees' fees and expenses........................................................................... 722
Other accrued expenses................................................................................ 45,801
Due to custodian........................................................................................ --
-----------
Total liabilities....................................................................................... 663,890
-----------
Net Assets.............................................................................................. $30,063,746
===========
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value........................................................... $ 25,575
Paid-in capital......................................................................................... 31,620,112
-----------
31,645,687
Accumulated undistributed net investment income (loss).................................................. (137,348)
Accumulated undistributed net realized gain (loss) on investments, futures contracts, options contracts,
securities sold short and foreign exchange transactions................................................ (2,234,328)
Unrealized appreciation (depreciation) on investments................................................... 777,439
Unrealized foreign exchange gain (loss) on other assets and liabilities................................. 12,296
-----------
Net Assets............................................................................................ $30,063,746
===========
*Cost
Long-term investment securities (unaffiliated)........................................................ $28,860,456
===========
Short-term investment securities (unaffiliated)....................................................... $ 136,000
===========
Foreign cash.......................................................................................... $ 346,036
===========
See Notes to Financial Statements
8
SunAmerica Equity Funds
STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2008 -- (unaudited)
(continued)
International Disciplined International
Equity Value Growth Small-Cap
Fund Fund Fund Fund
------------- ----------- ----------- -------------
Class A (unlimited shares authorized):
Net assets.................................................. $64,360,479 $95,948,054 $28,817,088 $25,184,243
Shares of beneficial interest issued and outstanding........ 3,961,820 6,818,183 1,983,153 2,138,213
Net asset value and redemption price per share.............. $ 16.25 $ 14.07 $ 14.53 $ 11.78
Maximum sales charge (5.75% of offering price).............. 0.99 0.86 0.89 0.72
----------- ----------- ----------- -----------
Maximum offering price to public............................ 17.24 14.93 15.42 12.50
=========== =========== =========== ===========
Class B (unlimited shares authorized):
Net assets.................................................. $15,899,072 $27,592,006 $ 4,742,108 $ 1,088,495
Shares of beneficial interest issued and outstanding........ 1,062,005 2,091,944 342,934 93,531
Net asset value, offering and redemption price per share
(excluding any applicable contingent deferred sales charge) $ 14.97 $ 13.19 $ 13.83 $ 11.64
=========== =========== =========== ===========
Class C (unlimited shares authorized):
Net assets.................................................. $21,988,891 $17,851,221 $28,229,654 $ 3,791,008
Shares of beneficial interest issued and outstanding........ 1,470,160 1,353,450 2,039,838 325,775
Net asset value, offering and redemption price per share
(excluding any applicable contingent deferred sales charge) $ 14.96 $ 13.19 $ 13.84 $ 11.64
=========== =========== =========== ===========
Class I (unlimited shares authorized):
Net assets.................................................. $ 6,148,111 $ 28,599 $ -- $ --
Shares of beneficial interest issued and outstanding........ 375,267 2,035 -- --
Net asset value, offering and redemption price per share.... $ 16.38 $ 14.05 $ -- $ --
=========== =========== =========== ===========
Class Z (unlimited shares authorized):
Net assets.................................................. $ -- $29,222,640 $ -- $ --
Shares of beneficial interest issued and outstanding........ -- 1,977,271 -- --
Net asset value, offering and redemption price per share.... $ -- $ 14.78 $ -- $ --
=========== =========== =========== ===========
See Notes to Financial Statements
9
SunAmerica Equity Funds
STATEMENT OF OPERATIONS -- For the period ended March 31, 2008 --
(unaudited)
Blue Chip Growth
Growth Opportunities
Fund Fund
----------- -------------
INVESTMENT INCOME:
Dividends (unaffiliated).......................................................................... $ 288,510 $ 104,495
Interest (unaffiliated)........................................................................... 35,849 156,811
----------- ------------
Total investment income*......................................................................... 324,359 261,306
----------- ------------
EXPENSES:
Investment advisory and management fees........................................................... 248,994 193,118
Distribution and service maintenance fees
Class A.......................................................................................... 85,667 58,360
Class B.......................................................................................... 63,244 58,296
Class C.......................................................................................... 20,713 31,821
Service fees Class I.............................................................................. 818 157
Transfer agent fees and expenses
Class A.......................................................................................... 70,320 51,788
Class B.......................................................................................... 22,872 20,877
Class C.......................................................................................... 6,288 10,256
Class I.......................................................................................... 879 292
Registration fees
Class A.......................................................................................... 7,694 6,307
Class B.......................................................................................... 4,707 5,240
Class C.......................................................................................... 5,172 5,149
Class I.......................................................................................... 4,977 4,746
Class Z.......................................................................................... -- --
Custodian and accounting fees..................................................................... 19,348 27,320
Reports to shareholders........................................................................... 19,337 21,559
Audit and tax fees................................................................................ 16,548 16,558
Legal fees........................................................................................ 4,958 3,521
Trustees' fees and expenses....................................................................... 2,679 2,355
Interest expense.................................................................................. -- --
Other expenses.................................................................................... 5,407 3,845
----------- ------------
Total expenses before fee waivers, expense reimbursements, expense recoupments, custody credits
and fees paid indirectly........................................................................ 610,622 521,565
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4)................ (5,448) (5,015)
Custody credits earned on cash balances.......................................................... (25) (206)
Fees paid indirectly (Note 5).................................................................... (4,299) (50,299)
----------- ------------
Net expenses..................................................................................... 600,850 466,045
----------- ------------
Net investment income (loss)........................................................................ (276,491) (204,739)
----------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)**............................................ 197,883 (13,074,061)
Net realized foreign exchange gain (loss) on other assets and liabilities........................... -- --
Net realized gain (loss) on disposal of investments in violation of investment restrictions (Note 4) 19 --
----------- ------------
Net realized gain (loss) on investments and foreign currencies...................................... 197,902 (13,074,061)
----------- ------------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)...................... (8,111,715) (105,811)
Change in unrealized foreign exchange gain (loss) on other assets and liabilities................... -- --
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.................................... (8,111,715) (105,811)
----------- ------------
Net realized and unrealized gain (loss) on investments and foreign currencies....................... (7,913,813) (13,179,872)
----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................................... $(8,190,304) $(13,384,611)
=========== ============
- --------
* Net of foreign withholding taxes on interest and dividends of..................................... $ 525 $ --
=========== ============
** Net of foreign withholding taxes on capital gains of............................................. $ -- $ --
=========== ============
New Growth and
Century Income
Fund Fund
------------ ------------
INVESTMENT INCOME:
Dividends (unaffiliated).......................................................................... $ 206,134 $ 1,228,546
Interest (unaffiliated)........................................................................... 205,968 63,816
------------ ------------
Total investment income*......................................................................... 412,102 1,292,362
------------ ------------
EXPENSES:
Investment advisory and management fees........................................................... 330,910 370,664
Distribution and service maintenance fees
Class A.......................................................................................... 131,306 107,019
Class B.......................................................................................... 42,027 81,960
Class C.......................................................................................... 24,028 104,957
Service fees Class I.............................................................................. -- 384
Transfer agent fees and expenses
Class A.......................................................................................... 107,383 85,225
Class B.......................................................................................... 14,533 25,975
Class C.......................................................................................... 8,207 29,467
Class I.......................................................................................... -- 583
Registration fees
Class A.......................................................................................... 7,806 6,968
Class B.......................................................................................... 5,041 4,756
Class C.......................................................................................... 4,663 5,313
Class I.......................................................................................... -- 4,832
Class Z.......................................................................................... -- --
Custodian and accounting fees..................................................................... 24,273 22,230
Reports to shareholders........................................................................... 24,101 24,255
Audit and tax fees................................................................................ 17,913 17,008
Legal fees........................................................................................ 7,516 6,952
Trustees' fees and expenses....................................................................... 4,132 4,052
Interest expense.................................................................................. -- 130
Other expenses.................................................................................... 8,386 6,985
------------ ------------
Total expenses before fee waivers, expense reimbursements, expense recoupments, custody credits
and fees paid indirectly........................................................................ 762,225 909,715
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4)................ (8,167) (5,179)
Custody credits earned on cash balances.......................................................... (284) (7)
Fees paid indirectly (Note 5).................................................................... (34,277) (21,514)
------------ ------------
Net expenses..................................................................................... 719,497 883,015
------------ ------------
Net investment income (loss)........................................................................ (307,395) 409,347
------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)**............................................ (20,014,411) (522,659)
Net realized foreign exchange gain (loss) on other assets and liabilities........................... -- --
Net realized gain (loss) on disposal of investments in violation of investment restrictions (Note 4) -- --
------------ ------------
Net realized gain (loss) on investments and foreign currencies...................................... (20,014,411) (522,659)
------------ ------------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)...................... (1,301,648) (12,714,539)
Change in unrealized foreign exchange gain (loss) on other assets and liabilities................... -- --
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.................................... (1,301,648) (12,714,539)
------------ ------------
Net realized and unrealized gain (loss) on investments and foreign currencies....................... (21,316,059) (13,237,198)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................................... $(21,623,454) $(12,827,851)
============ ============
- --------
* Net of foreign withholding taxes on interest and dividends of..................................... $ -- $ --
============ ============
** 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, 2008 --
(unaudited) (continued)
Balanced International
Assets Equity
Fund Fund
------------ -------------
INVESTMENT INCOME:
Dividends (unaffiliated).......................................................................... $ 825,445 $ 1,121,918
Interest (unaffiliated)........................................................................... 1,487,355 16,349
------------ ------------
Total investment income*......................................................................... 2,312,800 1,138,267
------------ ------------
EXPENSES:
Investment advisory and management fees........................................................... 530,586 611,124
Distribution and service maintenance fees
Class A.......................................................................................... 201,758 124,151
Class B.......................................................................................... 64,693 92,381
Class C.......................................................................................... 63,180 125,220
Service fees Class I.............................................................................. 781 9,704
Transfer agent fees and expenses
Class A.......................................................................................... 177,134 93,417
Class B.......................................................................................... 21,654 27,019
Class C.......................................................................................... 17,146 32,473
Class I.......................................................................................... 760 8,754
Registration fees
Class A.......................................................................................... 8,301 8,234
Class B.......................................................................................... 4,300 5,206
Class C.......................................................................................... 5,285 4,133
Class I.......................................................................................... 4,771 5,274
Class Z.......................................................................................... -- --
Custodian and accounting fees..................................................................... 56,726 68,818
Reports to shareholders........................................................................... 35,796 22,602
Audit and tax fees................................................................................ 18,724 20,180
Legal fees........................................................................................ 7,505 6,998
Trustees' fees and expenses....................................................................... 5,908 5,221
Interest expense.................................................................................. 427 719
Other expenses.................................................................................... 6,743 7,974
------------ ------------
Total expenses before fee waivers, expense reimbursements, expense recoupments,
custody credits and fees paid indirectly........................................................ 1,232,178 1,279,602
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4)................ (19,229) 2,977
Custody credits earned on cash balances.......................................................... (576) (812)
Fees paid indirectly (Note 5).................................................................... (10,996) (1,910)
------------ ------------
Net expenses..................................................................................... 1,201,377 1,279,857
------------ ------------
Net investment income (loss)........................................................................ 1,111,423 (141,590)
------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)**............................................ (2,339,147) 5,787,454
Net realized foreign exchange gain (loss) on other assets and liabilities........................... -- 119,382
Net realized gain (loss) on disposal of investments in violation of investment restrictions (Note 4) 12 --
------------ ------------
Net realized gain (loss) on investments and foreign currencies...................................... (2,339,135) 5,906,836
------------ ------------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)...................... (12,259,785) (19,352,099)
Change in unrealized foreign exchange gain (loss) on other assets and liabilities................... -- 17,454
Change in unrealized appreciation (depreciation) on securities sold short........................... (6,456) --
Change in accrued capital gains tax on unrealized appreciation (depreciation)....................... -- 7,115
------------ ------------
Net unrealized gain (loss) on investments and foreign currencies.................................... (12,266,241) (19,327,530)
------------ ------------
Net realized and unrealized gain (loss) on investments and foreign currencies....................... (14,605,376) (13,420,694)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................................... $(13,493,953) $(13,562,284)
============ ============
- --------
*Net of foreign withholding taxes on interest and dividends of...................................... $ 9 $ 51,355
============ ============
**Net of foreign withholding taxes on capital gains of.............................................. $ -- $ 7,121
============ ============
Value
Fund
------------
INVESTMENT INCOME:
Dividends (unaffiliated).......................................................................... $ 2,619,866
Interest (unaffiliated)........................................................................... 150,128
------------
Total investment income*......................................................................... 2,769,994
------------
EXPENSES:
Investment advisory and management fees........................................................... 980,721
Distribution and service maintenance fees
Class A.......................................................................................... 192,973
Class B.......................................................................................... 164,704
Class C.......................................................................................... 107,470
Service fees Class I.............................................................................. 40
Transfer agent fees and expenses
Class A.......................................................................................... 141,103
Class B.......................................................................................... 46,550
Class C.......................................................................................... 27,658
Class I.......................................................................................... 35
Registration fees
Class A.......................................................................................... 7,188
Class B.......................................................................................... 5,181
Class C.......................................................................................... 5,318
Class I.......................................................................................... 4,134
Class Z.......................................................................................... 3,990
Custodian and accounting fees..................................................................... 35,312
Reports to shareholders........................................................................... 28,652
Audit and tax fees................................................................................ 16,975
Legal fees........................................................................................ 8,333
Trustees' fees and expenses....................................................................... 9,070
Interest expense.................................................................................. --
Other expenses.................................................................................... 8,232
------------
Total expenses before fee waivers, expense reimbursements, expense recoupments,
custody credits and fees paid indirectly........................................................ 1,793,639
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4)................ (107,667)
Custody credits earned on cash balances.......................................................... (9)
Fees paid indirectly (Note 5).................................................................... (34,650)
------------
Net expenses..................................................................................... 1,651,313
------------
Net investment income (loss)........................................................................ 1,118,681
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)**............................................ (9,060,773)
Net realized foreign exchange gain (loss) on other assets and liabilities........................... --
Net realized gain (loss) on disposal of investments in violation of investment restrictions (Note 4) --
------------
Net realized gain (loss) on investments and foreign currencies...................................... (9,060,773)
------------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)...................... (21,198,766)
Change in unrealized foreign exchange gain (loss) on other assets and liabilities................... --
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.................................... (21,198,766)
------------
Net realized and unrealized gain (loss) on investments and foreign currencies....................... (30,259,539)
------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................................... $(29,140,858)
============
- --------
*Net of foreign withholding taxes on interest and dividends of...................................... $ --
============
**Net of foreign withholding taxes on capital gains of.............................................. $ --
============
See Notes to Financial Statements
11
SunAmerica Equity Funds
STATEMENT OF OPERATIONS -- For the period ended March 31, 2008 --
(unaudited) (continued)
Disciplined International
Growth Small-Cap
Fund Fund
------------ -------------
INVESTMENT INCOME:
Dividends (unaffiliated).......................................................................... $ 336,752 $ 189,509
Interest (unaffiliated)........................................................................... 57,129 5,487
------------ -----------
Total investment income*......................................................................... 393,881 194,996
------------ -----------
EXPENSES:
Investment advisory and management fees........................................................... 283,807 189,665
Distribution and service maintenance fees
Class A.......................................................................................... 52,741 47,637
Class B.......................................................................................... 26,636 5,592
Class C.......................................................................................... 156,564 23,230
Service fees Class I.............................................................................. -- --
Transfer agent fees and expenses
Class A.......................................................................................... 36,953 31,099
Class B.......................................................................................... 7,515 2,056
Class C.......................................................................................... 37,150 6,289
Class I.......................................................................................... -- --
Registration fees
Class A.......................................................................................... 7,410 5,526
Class B.......................................................................................... 5,069 5,041
Class C.......................................................................................... 6,696 5,074
Class I.......................................................................................... -- --
Class Z.......................................................................................... -- --
Custodian and accounting fees..................................................................... 17,878 57,245
Reports to shareholders........................................................................... 994 2,135
Audit and tax fees................................................................................ 16,030 19,970
Legal fees........................................................................................ 14,555 5,317
Trustees' fees and expenses....................................................................... 2,585 1,162
Interest expense.................................................................................. 943 1,155
Other expenses.................................................................................... 9,718 9,519
------------ -----------
Total expenses before fee waivers, expense reimbursements, expense recoupments,
custody credits and fees paid indirectly........................................................ 683,244 417,712
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4)................ (79,362) (85,587)
Custody credits earned on cash balances.......................................................... (661) (31)
Fees paid indirectly (Note 5).................................................................... (20,575) --
------------ -----------
Net expenses..................................................................................... 582,646 332,094
------------ -----------
Net investment income (loss)........................................................................ (188,765) (137,098)
------------ -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)**............................................ (3,791,738) (1,797,045)
Net realized foreign exchange gain (loss) on other assets and liabilities........................... -- 29,680
Net realized gain (loss) on disposal of investments in violation of investment restrictions (Note 4) -- --
------------ -----------
Net realized gain (loss) on investments and foreign currencies...................................... (3,791,738) (1,767,365)
------------ -----------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)...................... (8,688,322) (3,706,775)
Change in unrealized foreign exchange gain (loss) on other assets and liabilities................... 5,231 4,442
Change in unrealized appreciation (depreciation) on securities sold short........................... -- --
Change in accrued capital gain tax on unrealized appreciation (depreciation)........................ -- --
------------ -----------
Net unrealized gain (loss) on investments and foreign currencies.................................... (8,683,091) (3,702,333)
------------ -----------
Net realized and unrealized gain (loss) on investments and foreign currencies....................... (12,474,829) (5,469,698)
------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................................... $(12,663,594) $(5,606,796)
============ ===========
- --------
*Net of foreign withholding taxes on interest and dividends of...................................... $ 1,847 $ 15,856
============ ===========
**Net of foreign withholding taxes on capital gains of.............................................. $ -- $ --
============ ===========
See Notes to Financial Statements
12
SunAmerica Equity Funds
STATEMENT OF CHANGES IN NET ASSETS
Blue Chip Growth Fund
--------------------------
For the
six months
ended For the year
March 31, ended
2008 September 30,
(unaudited) 2007
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ (276,491) $ (428,681)
Net realized gain (loss) on investments and foreign currencies........................ 197,902 4,257,622
Net unrealized gain (loss) on investments and foreign currencies...................... (8,111,715) 8,515,725
------------ ------------
Net increase (decrease) in net assets resulting from operations......................... (8,190,304) 12,344,666
------------ ------------
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) (2,875,920) (13,625,270)
------------ ------------
Total increase (decrease) in net assets................................................. (11,066,224) (1,280,604)
NET ASSETS:
Beginning of period..................................................................... 70,907,407 72,188,011
------------ ------------
End of period+.......................................................................... $ 59,841,183 $ 70,907,407
============ ============
- --------
+Includes accumulated undistributed net investment income (loss)........................ $ (304,829) $ (28,338)
============ ============
Growth Opportunities Fund
--------------------------
For the
six months
ended For the year
March 31, ended
2008 September 30,
(unaudited) 2007
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ (204,739) $ (729,282)
Net realized gain (loss) on investments and foreign currencies........................ (13,074,061) 11,409,851
Net unrealized gain (loss) on investments and foreign currencies...................... (105,811) (1,842,299)
------------ ------------
Net increase (decrease) in net assets resulting from operations......................... (13,384,611) 8,838,270
------------ ------------
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) (8,030,379) (14,171,956)
------------ ------------
Total increase (decrease) in net assets................................................. (21,414,990) (5,333,686)
NET ASSETS:
Beginning of period..................................................................... 63,250,795 68,584,481
------------ ------------
End of period+.......................................................................... $ 41,835,805 $ 63,250,795
============ ============
- --------
+Includes accumulated undistributed net investment income (loss)........................ $ (229,605) $ (24,866)
============ ============
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
2008 September 30,
(unaudited) 2007
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ (307,395) $ (294,293)
Net realized gain (loss) on investments and foreign currencies........................ (20,014,411) 18,717,708
Net unrealized gain (loss) on investments and foreign currencies...................... (1,301,648) (1,684,002)
------------ ------------
Net increase (decrease) in net assets resulting from operations......................... (21,623,454) 16,739,413
------------ ------------
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) (10,030,054) 3,329,307
------------ ------------
Total increase (decrease) in net assets................................................. (31,653,508) 20,068,720
NET ASSETS:
Beginning of period..................................................................... 105,034,183 84,965,463
------------ ------------
End of period+.......................................................................... $ 73,380,675 $105,034,183
============ ============
- --------
+Includes accumulated undistributed net investment income (loss)........................ $ (356,931) $ (49,536)
============ ============
Growth and Income Fund
--------------------------
For the
six months
ended For the year
March 31, ended
2008 September 30,
(unaudited) 2007
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ 409,347 $ 242,350
Net realized gain (loss) on investments and foreign currencies........................ (522,659) 15,197,922
Net unrealized gain (loss) on investments and foreign currencies...................... (12,714,539) 3,277,428
------------ ------------
Net increase (decrease) in net assets resulting from operations......................... (12,827,851) 18,717,700
------------ ------------
Distributions to shareholders from:
Net investment income (Class A)....................................................... (240,971) --
Net investment income (Class B)....................................................... -- --
Net investment income (Class C)....................................................... -- --
Net investment income (Class I)....................................................... (1,451) --
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..................................................... (242,422) --
------------ ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 8) (9,116,370) (24,101,118)
------------ ------------
Total increase (decrease) in net assets................................................. (22,186,643) (5,383,418)
NET ASSETS:
Beginning of period..................................................................... 110,698,272 116,081,690
------------ ------------
End of period+.......................................................................... $ 88,511,629 $110,698,272
============ ============
- --------
+Includes accumulated undistributed net investment income (loss)........................ $ 371,124 $ 204,199
============ ============
See Notes to Financial Statements
14
SunAmerica Equity Funds
STATEMENT OF CHANGES IN NET ASSETS -- (continued)
Balanced Assets Fund
--------------------------
For the
six months
ended For the year
March 31, ended
2008 September 30,
(unaudited) 2007
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ 1,111,423 $ 2,415,467
Net realized gain (loss) on investments and foreign currencies........................ (2,339,135) 10,008,735
Net unrealized gain (loss) on investments and foreign currencies...................... (12,266,241) 6,132,057
------------ ------------
Net increase (decrease) in net assets resulting from operations......................... (13,493,953) 18,556,259
------------ ------------
Distributions to shareholders from:
Net investment income (Class A)....................................................... (994,543) (1,990,178)
Net investment income (Class B)....................................................... (65,973) (133,492)
Net investment income (Class C)....................................................... (64,473) (113,780)
Net investment income (Class I)....................................................... (6,049) (13,500)
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..................................................... (1,131,038) (2,250,950)
------------ ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 8) (9,208,436) (26,486,903)
------------ ------------
Total increase (decrease) in net assets................................................. (23,833,427) (10,181,594)
NET ASSETS:
Beginning of period..................................................................... 153,513,055 163,694,649
------------ ------------
End of period+.......................................................................... $129,679,628 $153,513,055
============ ============
- --------
+Includes accumulated undistributed net investment income (loss)........................ $ 217,320 $ 236,935
============ ============
International Equity Fund
--------------------------
For the
six months
ended For the year
March 31, ended
2008 September 30,
(unaudited) 2007
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ (141,590) $ (141,323)
Net realized gain (loss) on investments and foreign currencies........................ 5,906,836 13,471,646
Net unrealized gain (loss) on investments and foreign currencies...................... (19,327,530) 13,664,189
------------ ------------
Net increase (decrease) in net assets resulting from operations......................... (13,562,284) 26,994,512
------------ ------------
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)............................................. (6,405,167) --
Net realized gain on securities (Class B)............................................. (1,777,695) --
Net realized gain on securities (Class C)............................................. (2,438,019) --
Net realized gain on securities (Class I)............................................. (706,303) --
Net realized gain on securities (Class Z)............................................. -- --
------------ ------------
Total distributions to shareholders..................................................... (11,327,184) --
------------ ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 8) 2,689,932 (10,955,655)
------------ ------------
Total increase (decrease) in net assets................................................. (22,199,536) 16,038,857
NET ASSETS:
Beginning of period..................................................................... 130,596,089 114,557,232
------------ ------------
End of period+.......................................................................... $108,396,553 $130,596,089
============ ============
- --------
+Includes accumulated undistributed net investment income (loss)........................ $ (266,861) $ (125,271)
============ ============
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
2008 September 30,
(unaudited) 2007
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ 1,118,681 $ 1,902,699
Net realized gain (loss) on investments and foreign currencies........................ (9,060,773) 30,254,544
Net unrealized gain (loss) on investments and foreign currencies...................... (21,198,766) 1,556,544
------------ ------------
Net increase (decrease) in net assets resulting from operations......................... (29,140,858) 33,713,787
------------ ------------
Distributions to shareholders from:
Net investment income (Class A)....................................................... (1,348,358) (1,037,323)
Net investment income (Class B)....................................................... (210,886) (138,581)
Net investment income (Class C)....................................................... (136,301) (102,287)
Net investment income (Class I)....................................................... (425) (285)
Net investment income (Class Z)....................................................... (468,653) (294,735)
Net realized gain on securities (Class A)............................................. (17,163,009) (13,182,325)
Net realized gain on securities (Class B)............................................. (5,445,543) (5,278,693)
Net realized gain on securities (Class C)............................................. (3,519,589) (3,896,204)
Net realized gain on securities (Class I)............................................. (4,981) (3,186)
Net realized gain on securities (Class Z)............................................. (4,579,895) (2,693,654)
------------ ------------
Total distributions to shareholders..................................................... (32,877,640) (26,627,273)
------------ ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 8) 5,768,999 (5,899,264)
------------ ------------
Total increase (decrease) in net assets................................................. (56,249,499) 1,187,250
NET ASSETS:
Beginning of period..................................................................... 226,892,019 225,704,769
------------ ------------
End of period+.......................................................................... $170,642,520 $226,892,019
============ ============
- --------
+Includes accumulated undistributed net investment income (loss)........................ $ 567,247 $ 1,613,189
============ ============
See Notes to Financial Statements
16
SunAmerica Equity Funds
STATEMENT OF CHANGES IN NET ASSETS -- (continued)
Disciplined Growth Fund
--------------------------
For the
six months
ended For the year
March 31, ended
2008 September 30,
(unaudited) 2007
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ (188,765) $ (359,066)
Net realized gain (loss) on investments and foreign currencies........................ (3,791,738) 10,478,279
Net unrealized gain (loss) on investments and foreign currencies...................... (8,683,091) 5,722,460
------------ ------------
Net increase (decrease) in net assets resulting from operations......................... (12,663,594) 15,841,673
------------ ------------
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) 14,075,500 (14,243,867)
------------ ------------
Total increase (decrease) in net assets................................................. 1,411,906 1,597,806
NET ASSETS:
Beginning of period..................................................................... 60,376,944 58,779,138
------------ ------------
End of period+.......................................................................... $ 61,788,850 $ 60,376,944
============ ============
- --------
+Includes accumulated undistributed net investment income (loss)........................ $ (197,835) $ (9,070)
============ ============
International Small-Cap Fund
---------------------------
For the
six months
ended For the year
March 31, ended
2008 September 30,
(unaudited) 2007
----------- -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ (137,098) $ (126,780)
Net realized gain (loss) on investments and foreign currencies........................ (1,767,365) 1,240,543
Net unrealized gain (loss) on investments and foreign currencies...................... (3,702,333) 5,861,549
----------- -----------
Net increase (decrease) in net assets resulting from operations......................... (5,606,796) 6,975,312
----------- -----------
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)............................................. (305,914) --
Net realized gain on securities (Class B)............................................. (12,418) --
Net realized gain on securities (Class C)............................................. (55,061) --
Net realized gain on securities (Class I)............................................. -- --
Net realized gain on securities (Class Z)............................................. -- --
----------- -----------
Total distributions to shareholders..................................................... (373,393) --
----------- -----------
Net increase (decrease) in net assets resulting from capital share transactions (Note 8) (1,339,039) 4,903,738
----------- -----------
Total increase (decrease) in net assets................................................. (7,319,228) 11,879,050
NET ASSETS:
Beginning of period..................................................................... 37,382,974 25,503,924
----------- -----------
End of period+.......................................................................... $30,063,746 $37,382,974
=========== ===========
- --------
+Includes accumulated undistributed net investment income (loss)........................ $ (137,348) $ (250)
=========== ===========
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 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
- -
09/30/03 $11.15 $(0.06) $ 2.03 $ 1.97 $-- $-- $-- $13.12 17.67% $64,672 1.54%
09/30/04 13.12 (0.08) 1.05 0.97 -- -- -- 14.09 7.39 62,316 1.60
09/30/05 14.09 (0.01) 1.13 1.12 -- -- -- 15.21 7.95 56,755 1.59
09/30/06 15.21 (0.07) 0.55 0.48 -- -- -- 15.69 3.16 49,539 1.55(3)(4)
09/30/07 15.69 (0.07) 3.12 3.05 -- -- -- 18.74 19.44 51,961 1.60(3)(4)
03/31/08(6) 18.74 (0.06) (2.11) (2.17) -- -- -- 16.57 (11.58)(7) 44,680 1.62(4)(5)
Class B
- -
09/30/03 $10.20 $(0.14) $ 1.84 $ 1.70 $-- $-- $-- $11.90 16.67% $30,263 2.32%
09/30/04 11.90 (0.16) 0.96 0.80 -- -- -- 12.70 6.72 27,946 2.26
09/30/05 12.70 (0.11) 1.02 0.91 -- -- -- 13.61 7.17 22,558 2.32
09/30/06 13.61 (0.17) 0.50 0.33 -- -- -- 13.94 2.42 17,479 2.29(3)(4)
09/30/07 13.94 (0.17) 2.75 2.58 -- -- -- 16.52 18.51 14,314 2.36(3)(4)
03/31/08(6) 16.52 (0.11) (1.86) (1.97) -- -- -- 14.55 (11.92)(7) 10,668 2.39(4)(5)
Class C+
- -
09/30/03 $10.18 $(0.16) $ 1.85 $ 1.69 $-- $-- $-- $11.87 16.60% $ 7,286 2.44%
09/30/04 11.87 (0.18) 0.96 0.78 -- -- -- 12.65 6.57 6,458 2.37
09/30/05 12.65 (0.13) 1.01 0.88 -- -- -- 13.53 6.96 5,278 2.49
09/30/06 13.53 (0.17) 0.50 0.33 -- -- -- 13.86 2.44 4,528 2.30(3)(4)
09/30/07 13.86 (0.20) 2.73 2.53 -- -- -- 16.39 18.25 3,959 2.55(3)(4)
03/31/08(6) 16.39 (0.12) (1.84) (1.96) -- -- -- 14.43 (11.96)(7) 3,910 2.51(4)(5)
Class I
- -
09/30/03 $11.16 $(0.04) $ 2.04 $ 2.00 $-- $-- $-- $13.16 17.92% $19,778 1.33%(3)
09/30/04 13.16 (0.04) 1.05 1.01 -- -- -- 14.17 7.67 2,164 1.33(3)
09/30/05 14.17 0.03 1.14 1.17 -- -- -- 15.34 8.26 1,454 1.33(3)
09/30/06 15.34 (0.04) 0.57 0.53 -- -- -- 15.87 3.45 642 1.28(3)(4)
09/30/07 15.87 (0.02) 3.16 3.14 -- -- -- 19.01 19.79 673 1.32(3)(4)
03/31/08(6) 19.01 (0.03) (2.15) (2.18) -- -- -- 16.83 (11.47)(7) 584 1.33(3)(4)(5)
Ratio
of net
investment
income (loss)
to average Portfolio
net assets Turnover
- ------------- ---------
(0.50)% 114%
(0.59) 145
(0.09) 120
(0.45)(3)(4) 154
(0.40)(3)(4) 72
(0.65)(4)(5) 34
(1.28)% 114%
(1.25) 145
(0.80) 120
(1.20)(3)(4) 154
(1.14)(3)(4) 72
(1.42)(4)(5) 34
(1.40)% 114%
(1.37) 145
(0.98) 120
(1.21)(3)(4) 154
(1.35)(3)(4) 72
(1.53)(4)(5) 34
(0.29)%(3) 114%
(0.26)(3) 145
0.22(3) 120
(0.22)(3)(4) 154
(0.11)(3)(4) 72
(0.36)(3)(4)(5) 34
- --------
(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/fee waivers (based on average
net assets):
09/30/03 09/30/04 09/30/05 09/30/06 09/30/07 03/31/08(5)(6)
-------- -------- -------- -------- -------- --------------
Blue Chip Growth Class A................ -- % -- % -- % 0.05% 0.01% -- %
Blue Chip Growth Class B................ -- -- -- 0.05 0.02 --
Blue Chip Growth Class C+............... -- -- -- 0.05 0.02 --
Blue Chip Growth Class I................ 0.33 0.13 0.49 1.15 1.92 1.67
(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 09/30/07 03/31/08(5)(6)
-------- -------- --------------
Blue Chip Growth Class A................ 0.01% 0.01% 0.01%
Blue Chip Growth Class B................ 0.01 0.01 0.01
Blue Chip Growth Class C+............... 0.01 0.01 0.01
Blue Chip Growth Class I................ 0.01 0.01 0.01
(5)Annualized
(6)Unaudited
(7)The Fund's performance was increased by less than 0.01% from gains on
disposal of investments in violation of investment restrictions. (See Note 4)
+ 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 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
- -
09/30/03 $ 9.99 $(0.13) $ 3.88 $ 3.75 $-- $-- $-- $13.74 37.54% $62,600 1.63%
09/30/04 13.74 (0.16) 0.07 (0.09) -- -- -- 13.65 (0.66)(3) 49,918 1.58
09/30/05 13.65 (0.17) 2.79 2.62 -- -- -- 16.27 19.19 44,641 1.65
09/30/06 16.27 (0.12) 0.89 0.77 -- -- -- 17.04 4.73 37,382 1.59(4)(5)
09/30/07 17.04 (0.14) 2.41 2.27 -- -- -- 19.31 13.32 39,646 1.62(4)(5)
03/31/08(7) 19.31 (0.05) (4.36) (4.41) -- -- -- 14.90 (22.84) 27,504 1.74(5)(6)
Class B
- -
09/30/03 $ 9.11 $(0.20) $ 3.53 $ 3.33 $-- $-- $-- $12.44 36.55% $38,870 2.36%
09/30/04 12.44 (0.24) 0.07 (0.17) -- -- -- 12.27 (1.37)(3) 31,429 2.27
09/30/05 12.27 (0.25) 2.50 2.25 -- -- -- 14.52 18.34 27,673 2.32
09/30/06 14.52 (0.21) 0.79 0.58 -- -- -- 15.10 3.99 21,500 2.30(4)(5)
09/30/07 15.10 (0.25) 2.15 1.90 -- -- -- 17.00 12.58 15,229 2.31(4)(5)
03/31/08(7) 17.00 (0.10) (3.84) (3.94) -- -- -- 13.06 (23.18) 9,098 2.49(5)(6)
Class C+
- -
09/30/03 $ 9.10 $(0.20) $ 3.53 $ 3.33 $-- $-- $-- $12.43 36.59% $19,808 2.33%
09/30/04 12.43 (0.24) 0.06 (0.18) -- -- -- 12.25 (1.45)(3) 14,599 2.29
09/30/05 12.25 (0.26) 2.51 2.25 -- -- -- 14.50 18.37 12,089 2.39
09/30/06 14.50 (0.21) 0.79 0.58 -- -- -- 15.08 4.00 9,281 2.28(4)(5)
09/30/07 15.08 (0.26) 2.14 1.88 -- -- -- 16.96 12.47 8,230 2.38(4)(5)
03/31/08(7) 16.96 (0.10) (3.83) (3.93) -- -- -- 13.03 (23.17) 5,126 2.52(5)(6)
Class I
- -
09/30/03 $10.00 $(0.10) $ 3.90 $ 3.80 $-- $-- $-- $13.80 38.00% $ 4,404 1.33%(4)
09/30/04 13.80 (0.13) 0.08 (0.05) -- -- -- 13.75 (0.36)(3) 3,493 1.33(4)
09/30/05 13.75 (0.13) 2.82 2.69 -- -- -- 16.44 19.56 1,759 1.33(4)
09/30/06 16.44 (0.06) 0.88 0.82 -- -- -- 17.26 4.99 422 1.28(4)(5)
09/30/07 17.26 (0.06) 2.42 2.36 -- -- -- 19.62 13.67 145 1.32(4)(5)
03/31/08(7) 19.62 (0.01) (4.43) (4.44) -- -- -- 15.18 (22.63) 108 1.33(4)(5)(6)
Ratio
of net
investment
income (loss)
to average Portfolio
net assets Turnover
- ------------- ---------
(1.11)% 204%
(1.09) 170
(1.15) 86
(0.76)(4)(5) 278
(0.79)(4)(5) 321
(0.73)(5)(6) 192
(1.85)% 204%
(1.78) 170
(1.82) 86
(1.46)(4)(5) 278
(1.48)(4)(5) 321
(1.47)(5)(6) 192
(1.82)% 204%
(1.80) 170
(1.89) 86
(1.44)(4)(5) 278
(1.56)(4)(5) 321
(1.51)(5)(6) 192
(0.82)%(4) 204%
(0.85)(4) 170
(0.85)(4) 86
(0.35)(4)(5) 278
(0.34)(4)(5) 321
(0.31)(4)(5)(6) 192
- --------
(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'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%.
(4)Net of the following expense reimbursements/fee waivers (based on average
net assets):
09/30/03 09/30/04 09/30/05 09/30/06 09/30/07 03/31/08(6)(7)
-------- -------- -------- -------- -------- --------------
Growth Opportunities Class A............ -- % -- % -- % 0.05% 0.00% -- %
Growth Opportunities Class B............ -- -- -- 0.05 0.01 --
Growth Opportunities Class C+........... -- -- -- 0.05 0.01 --
Growth Opportunities Class I............ 0.50 0.18 0.49 1.59 5.77 7.98
(5)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 09/30/07 03/31/08(6)(7)
-------- -------- --------------
Growth Opportunities Class A............ 0.04% 0.05% 0.20%
Growth Opportunities Class B............ 0.04 0.05 0.20
Growth Opportunities Class C+........... 0.04 0.05 0.20
Growth Opportunities Class I............ 0.03 0.05 0.19
(6)Annualized
(7)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
- -
09/30/03 $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)
09/30/07 18.60 (0.04) 3.53 3.49 -- -- -- 22.09 18.76 88,535 1.55(4)
03/31/08(6) 22.09 (0.06) (4.73) (4.79) -- -- -- 17.30 (21.68) 62,753 1.60(4)(5)
Class B
- -
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)
09/30/07 16.29 (0.18) 3.09 2.91 -- -- -- 19.20 17.86 10,701 2.31(4)
03/31/08(6) 19.20 (0.12) (4.11) (4.23) -- -- -- 14.97 (22.03) 6,793 2.41(4)(5)
Class C+
- -
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)
09/30/07 16.37 (0.16) 3.11 2.95 -- -- -- 19.32 18.02 5,798 2.14(3)(4)
03/31/08(6) 19.32 (0.10) (4.13) (4.23) -- -- -- 15.09 (21.89) 3,835 2.14(3)(4)(5)
Ratio
of net
investment
income (loss)
to average Portfolio
net assets Turnover
- ------------- ---------
(1.08)% 123%
(1.20) 110
(0.89) 80
(0.39)(4) 235
(0.20)(4) 315
(0.67)(4)(5) 188
(1.77)% 123%
(1.91) 110
(1.64) 80
(1.14)(4) 235
(1.00)(4) 315
(1.48)(4)(5) 188
(1.63)%(3) 123%
(1.73)(3) 110
(1.45)(3) 80
(0.98)(3)(4) 235
(0.88)(3)(4) 315
(1.21)(3)(4)(5) 188
- --------
(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):
09/30/03 09/30/04 09/30/05 09/30/06 09/30/07 03/31/08(5)(6)
-------- -------- -------- -------- -------- --------------
New Century Class C+.................... 0.66% 0.48% 0.66% 0.44% 0.35% 0.35%
(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 09/30/07 03/31/08(5)(6)
-------- -------- --------------
New Century Class A..................... 0.01% 0.02% 0.08%
New Century Class B..................... 0.01 0.02 0.08
New Century Class C..................... 0.01 0.03 0.08
(5)Annualized
(6)Unaudited
+ Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
See Notes to Financial Statements
20
SunAmerica Equity Funds
FINANCIAL HIGHLIGHTS -- (continued)
GROWTH AND INCOME 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
- -
09/30/03 $ 8.87 $ 0.01 $ 1.31 $ 1.32 $ -- $-- $ -- $10.19 14.88% $70,826 1.50%
09/30/04 10.19 0.00 1.19 1.19 -- -- -- 11.38 11.68 69,069 1.50
09/30/05 11.38 0.10 1.03 1.13 (0.11) -- (0.11) 12.40 9.89 65,666 1.55
09/30/06 12.40 0.04 1.01 1.05 (0.02) -- (0.02) 13.43 8.47 61,872 1.54(3)(4)
09/30/07 13.43 0.07 2.38 2.45 -- -- -- 15.88 18.24 66,963 1.52(3)(4)
03/31/08(6) 15.88 0.08 (1.96) (1.88) (0.06) -- (0.06) 13.94 (11.88) 56,171 1.57(4)(5)
Class B
- -
09/30/03 $ 8.49 $(0.06) $ 1.26 $ 1.20 $ -- $-- $ -- $ 9.69 14.13% $66,378 2.16%
09/30/04 9.69 (0.07) 1.13 1.06 -- -- -- 10.75 10.94 54,199 2.17
09/30/05 10.75 0.02 0.97 0.99 -- -- -- 11.74 9.21 41,120 2.20
09/30/06 11.74 (0.05) 0.96 0.91 -- -- -- 12.65 7.75 27,100 2.22(3)(4)
09/30/07 12.65 (0.03) 2.23 2.20 -- -- -- 14.85 17.39 19,562 2.21(3)(4)
03/31/08(6) 14.85 0.03 (1.84) (1.81) -- -- -- 13.04 (12.19) 13,708 2.29(4)(5)
Class C+
- -
09/30/03 $ 8.48 $(0.06) $ 1.25 $ 1.19 $ -- $-- $ -- $ 9.67 14.03% $49,593 2.16%
09/30/04 9.67 (0.07) 1.13 1.06 -- -- -- 10.73 10.96 43,993 2.14
09/30/05 10.73 0.02 0.97 0.99 -- -- -- 11.72 9.23 37,448 2.18
09/30/06 11.72 (0.04) 0.95 0.91 -- -- -- 12.63 7.76 26,821 2.19(3)(4)
09/30/07 12.63 (0.02) 2.23 2.21 -- -- -- 14.84 17.50 23,851 2.19(3)(4)
03/31/08(6) 14.84 0.03 (1.84) (1.81) -- -- -- 13.03 (12.20) 18,324 2.25(4)(5)
Class I
- -
09/30/03 $ 8.88 $ 0.02 $ 1.31 $ 1.33 $ -- $-- $ -- $10.21 14.98% $12,899 1.32%(3)
09/30/04 10.21 0.02 1.18 1.20 -- -- -- 11.41 11.75 769 1.32(3)
09/30/05 11.41 0.12 1.04 1.16 (0.14) -- (0.14) 12.43 10.18 758 1.31(3)
09/30/06 12.43 0.07 1.01 1.08 (0.04) -- (0.04) 13.47 8.69 288 1.32(3)(4)
09/30/07 13.47 0.11 2.38 2.49 -- -- -- 15.96 18.49 323 1.31(3)(4)
03/31/08(6) 15.96 0.10 (1.97) (1.87) (0.07) -- (0.07) 14.02 (11.76) 309 1.32(3)(4)(5)
Ratio
of net
investment
income (loss)
to average Portfolio
net assets Turnover
- ------------- ---------
0.06% 123%
0.01 139
0.78 79
0.31(3)(4) 152
0.49(3)(4) 164
1.05(4)(5) 137
(0.59)% 123%
(0.67) 139
0.16 79
(0.39)(3)(4) 152
(0.21)(3)(4) 164
0.32(4)(5) 137
(0.60)% 123%
(0.64) 139
0.17 79
(0.36)(3)(4) 152
(0.18)(3)(4) 164
0.37(4)(5) 137
0.23%(3) 123%
0.19(3) 139
1.00(3) 79
0.48(3)(4) 152
0.70(3)(4) 164
1.29(3)(4)(5) 137
- --------
(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/fee waivers (based on average
net assets):
09/30/03 09/30/04 09/30/05 09/30/06 09/30/07 03/31/08(5)(6)
-------- -------- -------- -------- -------- --------------
Growth and Income Class A............... -- % -- % -- % 0.00% 0.01% -- %
Growth and Income Class B............... -- -- -- 0.00 0.01 --
Growth and Income Class C+.............. -- -- -- 0.00 0.01 --
Growth and Income Class I............... 0.37 0.14 0.96 2.23 3.72 3.37
(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 09/30/07 03/31/08(5)(6)
-------- -------- --------------
Growth and Income Class A............... 0.01% 0.02% 0.04%
Growth and Income Class B............... 0.01 0.02 0.04
Growth and Income Class C+.............. 0.01 0.02 0.04
Growth and Income Class I............... 0.01 0.02 0.04
(5)Annualized
(6)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 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
- -
09/30/03 $11.79 $0.10 $ 0.68 $ 0.78 $(0.12) $-- $(0.12) $12.45 6.65% $175,324 1.49%
09/30/04 12.45 0.12 0.78 0.90 (0.16) -- (0.16) 13.19 7.27 160,269 1.50
09/30/05 13.19 0.21 0.56 0.77 (0.24) -- (0.24) 13.72 5.84 142,573 1.62
09/30/06 13.72 0.22 0.58 0.80 (0.25) -- (0.25) 14.27 5.90 127,313 1.52(3)(4)
09/30/07 14.27 0.25 1.52 1.77 (0.24) -- (0.24) 15.80 12.50 124,257 1.55(3)(4)
03/31/08(6) 15.80 0.13 (1.56) (1.43) (0.13) -- (0.13) 14.24 (9.08)(7) 106,273 1.59(3)(4)(5)
Class B
- -
09/30/03 $11.74 $0.03 $ 0.68 $ 0.71 $(0.04) $-- $(0.04) $12.41 6.07% $ 47,496 2.16%
09/30/04 12.41 0.03 0.77 0.80 (0.07) -- (0.07) 13.14 6.45 38,687 2.18
09/30/05 13.14 0.13 0.55 0.68 (0.15) -- (0.15) 13.67 5.16 30,002 2.27
09/30/06 13.67 0.13 0.58 0.71 (0.15) -- (0.15) 14.23 5.23 20,464 2.20(3)(4)
09/30/07 14.23 0.14 1.52 1.66 (0.12) -- (0.12) 15.77 11.70 14,714 2.28(3)(4)
03/31/08(6) 15.77 0.07 (1.55) (1.48) (0.08) -- (0.08) 14.21 (9.42)(7) 11,430 2.32(3)(4)(5)
Class C+
- -
09/30/03 $11.76 $0.03 $ 0.67 $ 0.70 $(0.04) $-- $(0.04) $12.42 5.97% $ 25,784 2.15%
09/30/04 12.42 0.03 0.78 0.81 (0.07) -- (0.07) 13.16 6.53 22,781 2.18
09/30/05 13.16 0.13 0.55 0.68 (0.15) -- (0.15) 13.69 5.15 19,298 2.26
09/30/06 13.69 0.13 0.58 0.71 (0.15) -- (0.15) 14.25 5.22 15,164 2.18(3)(4)
09/30/07 14.25 0.15 1.52 1.67 (0.12) -- (0.12) 15.80 11.75 13,891 2.26(3)(4)
03/31/08(6) 15.80 0.08 (1.56) (1.48) (0.08) -- (0.08) 14.24 (9.40)(7) 11,380 2.27(3)(4)(5)
Class I
- -
09/30/03 $11.79 $0.12 $ 0.69 $ 0.81 $(0.14) $-- $(0.14) $12.46 6.89% $ 4,574 1.33%(3)
09/30/04 12.46 0.16 0.77 0.93 (0.18) -- (0.18) 13.21 7.44 679 1.29(3)
09/30/05 13.21 0.25 0.55 0.80 (0.28) -- (0.28) 13.73 6.10 746 1.32(3)
09/30/06 13.73 0.26 0.59 0.85 (0.29) -- (0.29) 14.29 6.24 754 1.28(3)(4)
09/30/07 14.29 0.29 1.53 1.82 (0.29) -- (0.29) 15.82 12.81 652 1.31(3)(4)
03/31/08(6) 15.82 0.15 (1.56) (1.41) (0.15) -- (0.15) 14.26 (8.97)(7) 597 1.31(3)(4)(5)
Ratio
of net
investment
income (loss)
to average Portfolio
net assets Turnover
- ------------- ---------
0.86% 409%
0.89 181
1.56 160
1.59(3)(4) 154
1.66(3)(4) 123
1.68(3)(4)(5) 63
0.22% 409%
0.20 181
0.91 160
0.91(3)(4) 154
0.93(3)(4) 123
0.95(3)(4)(5) 63
0.22% 409%
0.21 181
0.92 160
0.93(3)(4) 154
0.95(3)(4) 123
1.00(3)(4)(5) 63
1.02%(3) 409%
1.10(3) 181
1.84(3) 160
1.84(3)(4) 154
1.90(3)(4) 123
1.96(3)(4)(5) 63
- --------
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load. Total return
does include expense reimbursements and expense reductions.
(3)Net of the following expense reimbursements/fee waivers (based on average
net assets):
09/30/03 09/30/04 09/30/05 09/30/06 09/30/07 03/31/08(5)(6)
-------- -------- -------- -------- -------- --------------
Balanced Assets Class A................. -- % -- % -- % 0.05% 0.02% 0.02%
Balanced Assets Class B................. -- -- -- 0.05 0.02 0.02
Balanced Assets Class C+................ -- -- -- 0.05 0.02 0.02
Balanced Assets Class I................. 0.19 0.24 1.47 1.38 1.71 1.65
(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 09/30/07 03/31/08(5)(6)
-------- -------- --------------
Balanced Assets Class A................. 0.00% 0.01% 0.02%
Balanced Assets Class B................. 0.00 0.01 0.02
Balanced Assets Class C+................ 0.00 0.01 0.02
Balanced Assets Class I................. 0.00 0.01 0.02
(5)Annualized
(6)Unaudited
(7)The Fund's performance was increased by less than 0.01% from gains on the
disposal of investments in violation of investment restrictions. (See Note 4)
+ 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 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(3)
- ------------ --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- ------- -------------
Class A
- -
09/30/03 $ 7.00 $ 0.03 $ 1.70 $ 1.73 $ -- $ -- $ -- $ 8.73 24.71% $28,720 1.90%
09/30/04 8.73 0.01 1.46 1.47 0.00 -- 0.00 10.20 16.88 32,221 1.90
09/30/05 10.20 0.02 2.82 2.84 -- -- -- 13.04 27.84 43,527 1.90
09/30/06 13.04 (0.01) 2.81 2.80 -- -- -- 15.84 21.47 62,190 1.90
09/30/07 15.84 0.02 3.94 3.96 -- -- -- 19.80 25.00 75,408 1.90
03/31/08(6) 19.80 0.00 (1.87) (1.87) -- (1.68) (1.68) 16.25 (10.31) 64,360 1.85(4)(5)
Class B
- -
09/30/03 $ 6.73 $(0.03) $ 1.64 $ 1.61 $ -- $ -- $ -- $ 8.34 23.92% $24,799 2.55%
09/30/04 8.34 (0.06) 1.41 1.35 -- -- -- 9.69 16.19 20,673 2.55
09/30/05 9.69 (0.06) 2.68 2.62 -- -- -- 12.31 27.04 19,546 2.55
09/30/06 12.31 (0.11) 2.65 2.54 -- -- -- 14.85 20.63 21,240 2.55
09/30/07 14.85 (0.10) 3.69 3.59 -- -- -- 18.44 24.18 20,509 2.55
03/31/08(6) 18.44 (0.06) (1.73) (1.79) -- (1.68) (1.68) 14.97 (10.66) 15,899 2.55(4)(5)
Class C+
- -
09/30/03 $ 6.72 $(0.03) $ 1.64 $ 1.61 $ -- $ -- $ -- $ 8.33 23.96% $14,787 2.55%
09/30/04 8.33 (0.06) 1.41 1.35 -- -- -- 9.68 16.21 15,798 2.55
09/30/05 9.68 (0.06) 2.67 2.61 -- -- -- 12.29 26.96 16,892 2.55
09/30/06 12.29 (0.11) 2.66 2.55 -- -- -- 14.84 20.75 21,646 2.55
09/30/07 14.84 (0.09) 3.67 3.58 -- -- -- 18.42 24.12 26,683 2.55
03/31/08(6) 18.42 (0.06) (1.72) (1.78) -- (1.68) (1.68) 14.96 (10.61) 21,989 2.55(4)(5)
Class I
- -
09/30/03 $ 7.02 $ 0.03 $ 1.72 $ 1.75 $ -- $ -- $ -- $ 8.77 24.93% $20,499 1.80%
09/30/04 8.77 (0.04) 1.53 1.49 (0.01) -- (0.01) 10.25 16.96 4,233 1.80
09/30/05 10.25 0.05 2.82 2.87 -- -- -- 13.12 28.00 7,065 1.80
09/30/06 13.12 0.00 2.84 2.84 -- -- -- 15.96 21.65 9,482 1.80
09/30/07 15.96 0.04 3.96 4.00 -- -- -- 19.96 25.06 7,997 1.80
03/31/08(6) 19.96 0.01 (1.91) (1.90) -- (1.68) (1.68) 16.38 (10.39) 6,148 1.80(4)(5)
Ratio
of net
investment
income (loss)
to average Portfolio
net assets(3) Turnover
- ------------- ---------
0.35% 209%
0.06 202
0.17 126
(0.09) 152
0.13 132
0.03(4)(5) 102
(0.41)% 209%
(0.62) 202
(0.51) 126
(0.80) 152
(0.59) 132
(0.75)(4)(5) 102
(0.38)% 209%
(0.60) 202
(0.49) 126
(0.76) 152
(0.52) 132
(0.71)(4)(5) 102
0.43% 209%
(0.34) 202
0.43 126
(0.01) 152
0.24 132
0.09(4)(5) 102
- --------
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load. Total return
does include expense reimbursements and expense reductions.
(3)Net of the following expense reimbursements (recoupments) (based on average
net assets):
09/30/03 09/30/04 09/30/05 09/30/06 09/30/07 03/31/08(4)(6)
-------- -------- -------- -------- -------- --------------
International Equity Class A............ 0.18% 0.10% 0.09% (0.04)% (0.05)% -- %
International Equity Class B............ 0.13 0.11 0.17 0.02 0.04 0.01
International Equity Class C+........... 0.28 0.06 0.14 (0.01) (0.00) (0.04)
International Equity Class I............ 0.16 0.12 0.14 0.00 0.04 0.03
(4)Annualized
(5)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:
03/31/08(4)(6)
--------------
International Equity Class A 0.00%
International Equity Class B 0.00
International Equity Class C 0.00
International Equity Class I 0.00
(6)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
- -
10/31/02 $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(7) 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
09/30/07 18.75 0.18 2.59 2.77 (0.16) (2.04) (2.20) 19.32 15.80 126,788
03/31/08(8) 19.32 0.10 (2.44) (2.34) (0.21) (2.70) (2.91) 14.07 (13.53) 95,948
Class B
- -
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(7) 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
09/30/07 17.82 0.05 2.46 2.51 (0.05) (2.04) (2.09) 18.24 15.07 39,355
03/31/08(8) 18.24 0.04 (2.29) (2.25) (0.10) (2.70) (2.80) 13.19 (13.79) 27,592
Class C+
- -
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(7) 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
09/30/07 17.82 0.06 2.45 2.51 (0.05) (2.04) (2.09) 18.24 15.07 26,071
03/31/08(8) 18.24 0.04 (2.29) (2.25) (0.10) (2.70) (2.80) 13.19 (13.79) 17,851
Class I
- -
11/16/01-10/31/02(5) $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(7) 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
09/30/07 18.75 0.21 2.57 2.78 (0.18) (2.04) (2.22) 19.31 15.89 34
03/31/08(8) 19.31 0.11 (2.44) (2.33) (0.23) (2.70) (2.93) 14.05 (13.50) 29
Class Z
- -
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(7) 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
09/30/07 19.43 0.29 2.70 2.99 (0.22) (2.04) (2.26) 20.16 16.48 34,644
03/31/08(8) 20.16 0.15 (2.55) (2.40) (0.28) (2.70) (2.98) 14.78 (13.30) 29,223
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets(4) net assets(4) Turnover
- ------------- ------------- ---------
1.78% 1.15% 188%
1.78(6) 1.94(6) 138
1.73(3) 2.12(3) 204
1.63 1.00 82
1.63(6) 0.88(6) 140
1.63(6) 0.97(6) 143
1.63(3)(6) 1.26(3)(6) 111
2.43% 0.49% 188%
2.41(6) 1.32(6) 138
2.40(3) 1.58(3) 204
2.28 0.38 82
2.28(6) 0.23(6) 140
2.28(6) 0.31(6) 143
2.28(3)(6) 0.62(3)(6) 111
2.43% 0.49% 188%
2.43(6) 1.28(6) 138
2.41(3) 1.48(3) 204
2.28 0.36 82
2.28(6) 0.23(6) 140
2.28(6) 0.32(6) 143
2.28(3)(6) 0.62(3)(6) 111
1.68%(3) 1.26%(3) 188%
1.68(6) 2.02(6) 138
1.67(3) 2.31(3) 204
1.53 1.11 82
1.53(6) 0.90(6) 140
1.53(6) 1.05(6) 143
1.53(3)(6) 1.37(3)(6) 111
1.21% 1.69% 188%
1.21(6) 2.33(6) 138
1.19(3) 2.58(3) 204
1.06 1.54 82
1.06(6) 1.45(6) 140
1.06(6) 1.54(6) 143
1.06(3)(6) 1.83(3)(6) 111
- --------
(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):
10/31/02 10/31/03 09/30/04(3) 09/30/05 09/30/06 09/30/07 03/31/08(3)(8)
-------- -------- ----------- -------- -------- -------- --------------
Value Class A........................... 0.01% (0.01)% 0.04% 0.08% 0.08% 0.07% 0.10%
Value Class B........................... (0.02) (0.01) 0.02 0.14 0.10 0.11 0.14
Value Class C+.......................... 0.03 0.02 0.06 0.08 0.08 0.09 0.14
Value Class I........................... 0.19(3) -- 0.10 0.25 0.30 21.30 26.13
Value Class Z........................... 5.52 1.00 0.16 0.10 0.07 0.07 0.07
(5)Commencement of sale of respective class of shares.
(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:
10/31/03 09/30/06 09/30/07 03/31/08(3)(8)
-------- -------- -------- --------------
Value Class A........................... 0.01% 0.01% 0.01% 0.04%
Value Class B........................... 0.01 0.01 0.01 0.04
Value Class C+.......................... 0.01 0.01 0.01 0.04
Value Class I........................... 0.01 0.01 0.01 0.04
Value Class Z........................... 0.00 0.01 0.01 0.03
(7)The Fund changed its fiscal year end from October 31 to September 30.
(8)Unaudited
+ Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
See Notes to Financial Statements
24
SunAmerica Equity Funds
FINANCIAL HIGHLIGHTS -- (continued)
DISCIPLINED 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
- -
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
09/30/07 13.10 (0.04) 4.38 4.34 -- -- -- 17.44 33.13(7) 25,774
03/31/08(8) 17.44 (0.02) (2.89) (2.91) -- -- -- 14.53 (16.69) 28,817
Class B
- -
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
09/30/07 12.58 (0.13) 4.20 4.07 -- -- -- 16.65 32.35(7) 5,676
03/31/08(8) 16.65 (0.07) (2.75) (2.82) -- -- -- 13.83 (16.94) 4,742
Class C+
- -
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
09/30/07 12.60 (0.13) 4.19 4.06 -- -- -- 16.66 32.22(7) 28,927
03/31/08(8) 16.66 (0.07) (2.75) (2.82) -- -- -- 13.84 (16.93) 28,230
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets(5) net assets(5) Turnover
- ------------- ------------- ---------
1.45% 0.09% 16%
1.45 0.35 13
1.45(4) 0.25(4) 20
1.45 0.74 32
1.45(6) (0.02)(6) 999
1.45(6) (0.13)(6) 446
1.45(4)(6) (0.14)(4)(6) 202
2.10% (0.56)% 16%
2.10 (0.30) 13
2.10(4) (0.40)(4) 20
2.10 0.09 32
2.10(6) (0.77)(6) 999
2.10(6) (0.75)(6) 446
2.10(4)(6) (0.81)(4)(6) 202
2.10% (0.56)% 16%
2.10 (0.30) 13
2.10(4) (0.40)(4) 20
2.10 0.09 32
2.10(6) (0.68)(6) 999
2.10(6) (0.78)(6) 446
2.10(4)(6) (0.80)(4)(6) 202
- --------
(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):
10/31/02 10/31/03 09/30/04(4) 09/30/05 09/30/06 09/30/07 03/31/08(4)(8)
-------- -------- ----------- -------- -------- -------- --------------
Disciplined Growth Class A.............. 0.00% 0.26% 0.24% 0.38% 0.31% 0.34% 0.23%
Disciplined Growth Class B.............. 0.20 0.23 0.25 0.35 0.37 0.45 0.41
Disciplined Growth Class C+............. 0.21 0.23 0.24 0.33 0.30 0.30 0.22
(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:
09/30/06 09/30/07 03/31/08(4)(8)
-------- -------- --------------
Disciplined Growth Class A.............. 0.04% 0.11% 0.06%
Disciplined Growth Class B.............. 0.02 0.14 0.06
Disciplined Growth Class C.............. 0.03 0.12 0.06
(7)Total Return for each class was increased by 0.38%, 0.40% and 0.40% for
Class A, Class B and Class C, respectively, from a reimbursement by an
affiliate.
(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
09/30/07 11.05 (0.04) 2.99 2.95 -- -- -- 14.00 26.70 30,845
03/31/08(6) 14.00 (0.04) (2.04) (2.08) -- (0.14) (0.14) 11.78 (14.95) 25,184
Class B
05/02/06-09/30/06(3) $12.50 $(0.04) $(1.44) $(1.48) $-- $ -- $ -- $11.02 (11.84)% $ 583
09/30/07 11.02 (0.11) 2.97 2.86 -- -- -- 13.88 25.95 1,181
03/31/08(6) 13.88 (0.08) (2.02) (2.10) -- (0.14) (0.14) 11.64 (15.22) 1,088
Class C
05/02/06-09/30/06(3) $12.50 $(0.04) $(1.44) $(1.48) $-- $ -- $ -- $11.02 (11.84)% $ 3,363
09/30/07 11.02 (0.12) 2.98 2.86 -- -- -- 13.88 25.95 5,357
03/31/08(6) 13.88 (0.09) (2.01) (2.10) -- (0.14) (0.14) 11.64 (15.22) 3,791
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets(5) net assets(5) Turnover
- ------------- ------------- ---------
1.90%(4) 0.08%(4) 55%
1.90 (0.30) 70
1.90(4) (0.71)(4) 48
2.55%(4) (0.93)%(4) 55%
2.55 (0.89) 70
2.55(4) (1.34)(4) 48
2.55%(4) (1.07)%(4) 55%
2.55 (0.94) 70
2.55(4) (1.41)(4) 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 operations.
(4)Annualized
(5)Net of the following expense reimbursements (based on average net assets):
09/30/06(4) 09/30/07 03/31/08(4)(6)
----------- -------- --------------
International Small-Cap Class A......... 1.27% 0.45% 0.45%
International Small-Cap Class B......... 12.63 2.10 1.46
International Small-Cap Class C......... 2.88 0.77 0.67
(6)Unaudited
See Notes to Financial Statements
26
SunAmerica Blue Chip Growth Fund
PORTFOLIO PROFILE -- March 31, 2008 -- (unaudited)
Industry Allocation*
Computers............................. 6.2%
Diversified Manufacturing Operations.. 5.4
Oil-Field Services.................... 4.3
Repurchase Agreement.................. 4.0
Medical Products...................... 3.6
Beverages-Non-alcoholic............... 3.6
Medical-Biomedical/Gene............... 3.4
Electronic Components-Semiconductors.. 3.4
Applications Software................. 3.4
Aerospace/Defense..................... 3.1
Cosmetics & Toiletries................ 3.0
Retail-Drug Store..................... 2.8
Electric Products-Misc................ 2.8
Web Portals/ISP....................... 2.8
Networking Products................... 2.5
Oil Companies-Integrated.............. 2.3
Commercial Services-Finance........... 2.2
Therapeutics.......................... 2.2
Agricultural Chemicals................ 2.1
Retail-Discount....................... 2.0
Wireless Equipment.................... 2.0
Instruments-Scientific................ 2.0
Enterprise Software/Service........... 1.7
Medical Instruments................... 1.4
Telecom Equipment-Fiber Optics........ 1.4
Banks-Fiduciary....................... 1.4
Commercial Services................... 1.3
Data Processing/Management............ 1.3
Oil Companies-Exploration & Production 1.3
Medical-HMO........................... 1.2
Diversified Minerals.................. 1.1
Medical-Drugs......................... 1.1
Electronics-Military.................. 1.1
Aerospace/Defense-Equipment........... 1.1
Insurance-Multi-line.................. 1.1
Multimedia............................ 1.0
Electronic Forms...................... 1.0
Electronic Measurement Instruments.... 1.0
Finance-Investment Banker/Broker...... 0.9
Cellular Telecom...................... 0.9
X-Ray Equipment....................... 0.9
Retail-Office Supplies................ 0.9
Entertainment Software................ 0.7
Retail-Regional Department Stores..... 0.7
Medical-Generic Drugs................. 0.7
Coal.................................. 0.7
E-Commerce/Services................... 0.7
Internet Infrastructure Software...... 0.6
Retail-Apparel/Shoe................... 0.6
Investment Management/Advisor Services 0.5
Medical-Wholesale Drug Distribution... 0.5
Retail-Consumer Electronics........... 0.5
Computer Aided Design................. 0.4
Diagnostic Kits....................... 0.4
Casino Hotel.......................... 0.3
Metal-Diversified..................... 0.3
----
99.8%
====
- --------
* Calculated as a percentage of net assets
27
SunAmerica Blue Chip Growth Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited)
Market
Value
Security Description Shares (Note 3)
------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCK -- 95.8%
Aerospace/Defense -- 3.1%
Boeing Co................................... 7,100 $ 528,027
Lockheed Martin Corp........................ 4,250 422,025
Raytheon Co................................. 10,300 665,483
Spirit Aerosystems Holdings, Inc., Class A+. 11,900 263,942
----------
1,879,477
----------
Aerospace/Defense-Equipment -- 1.1%
United Technologies Corp.................... 9,600 660,672
----------
Agricultural Chemicals -- 2.1%
Monsanto Co................................. 11,400 1,271,100
----------
Applications Software -- 3.4%
Microsoft Corp.............................. 70,700 2,006,466
----------
Banks-Fiduciary -- 1.4%
The Bank of New York Mellon Corp............ 19,749 824,126
----------
Beverages-Non-alcoholic -- 3.6%
PepsiCo, Inc................................ 29,400 2,122,680
----------
Casino Hotel -- 0.3%
MGM Mirage, Inc.+........................... 3,352 196,997
----------
Cellular Telecom -- 0.9%
NII Holdings, Inc.+......................... 17,600 559,328
----------
Coal -- 0.7%
Peabody Energy Corp......................... 8,200 418,200
----------
Commercial Services -- 1.3%
AerCap Holdings NV+......................... 17,400 305,892
Alliance Data Systems Corp.+................ 9,500 451,345
----------
757,237
----------
Commercial Services-Finance -- 2.2%
Global Payments, Inc........................ 17,500 723,800
Visa, Inc., Class A+........................ 9,550 595,538
----------
1,319,338
----------
Computer Aided Design -- 0.4%
Autodesk, Inc.+............................. 8,128 255,869
----------
Computers -- 6.2%
Apple, Inc.+................................ 9,100 1,305,850
Hewlett-Packard Co.......................... 23,700 1,082,142
International Business Machines Corp........ 6,500 748,410
Research In Motion Ltd.+.................... 5,350 600,431
----------
3,736,833
----------
Cosmetics & Toiletries -- 3.0%
Procter & Gamble Co......................... 25,600 1,793,792
----------
Data Processing/Management -- 1.3%
Fiserv, Inc.+............................... 15,600 750,204
----------
Diagnostic Kits -- 0.4%
Inverness Medical Innovations, Inc.+........ 7,800 234,780
----------
Diversified Manufacturing Operations -- 5.4%
Danaher Corp................................ 13,700 1,041,611
Dover Corp.................................. 15,700 655,946
General Electric Co......................... 40,900 1,513,709
----------
3,211,266
----------
Market
Value
Security Description Shares (Note 3)
----------------------------------------------------------------
Diversified Minerals -- 1.1%
Cia Vale do Rio Doce ADR.................... 19,500 $ 675,480
----------
E-Commerce/Services -- 0.7%
eBay, Inc.+................................. 13,700 408,808
----------
Electric Products-Misc. -- 2.8%
AMETEK, Inc................................. 16,304 715,909
Emerson Electric Co......................... 18,800 967,448
----------
1,683,357
----------
Electronic Components-Semiconductors -- 3.4%
Broadcom Corp., Class A+.................... 16,200 312,174
Intel Corp.................................. 53,604 1,135,333
Texas Instruments, Inc...................... 20,100 568,227
----------
2,015,734
----------
Electronic Forms -- 1.0%
Adobe Systems, Inc.+........................ 16,500 587,235
----------
Electronic Measurement Instruments -- 1.0%
Agilent Technologies, Inc.+................. 19,000 566,770
----------
Electronics-Military -- 1.1%
L-3 Communications Holdings, Inc............ 6,100 666,974
----------
Enterprise Software/Service -- 1.7%
Oracle Corp.+............................... 50,700 991,692
----------
Entertainment Software -- 0.7%
Electronic Arts, Inc.+...................... 8,900 444,288
----------
Finance-Investment Banker/Broker -- 0.9%
The Goldman Sachs Group, Inc................ 3,400 562,326
----------
Instruments-Scientific -- 2.0%
Thermo Fisher Scientific, Inc.+............. 21,000 1,193,640
----------
Insurance-Multi-line -- 1.1%
Assurant, Inc............................... 10,700 651,202
----------
Internet Infrastructure Software -- 0.6%
Akamai Technologies, Inc.+.................. 13,600 382,976
----------
Investment Management/Advisor Services -- 0.5%
Invesco, Ltd................................ 13,200 321,552
----------
Medical Instruments -- 1.4%
Medtronic, Inc.............................. 17,500 846,475
----------
Medical Products -- 3.6%
Johnson & Johnson........................... 23,500 1,524,445
Zimmer Holdings, Inc.+...................... 7,800 607,308
----------
2,131,753
----------
Medical-Biomedical/Gene -- 3.4%
Celgene Corp.+.............................. 9,500 582,255
Genentech, Inc.+............................ 8,900 722,502
Genzyme Corp.+.............................. 10,000 745,400
----------
2,050,157
----------
Medical-Drugs -- 1.1%
Abbott Laboratories......................... 9,400 518,410
Schering-Plough Corp........................ 10,367 149,388
----------
667,798
----------
28
SunAmerica Blue Chip Growth Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market
Value
Security Description Shares (Note 3)
-------------------------------------------------------------
COMMON STOCK (continued)
Medical-Generic Drugs -- 0.7%
Mylan, Inc............................... 37,100 $ 430,360
----------
Medical-HMO -- 1.2%
UnitedHealth Group Inc................... 20,200 694,072
----------
Medical-Wholesale Drug Distribution -- 0.5%
Cardinal Health, Inc..................... 5,800 304,558
----------
Metal-Diversified -- 0.3%
Freeport-McMoRan Copper & Gold, Inc...... 1,600 153,952
----------
Multimedia -- 1.0%
News Corp., Class A...................... 32,179 603,356
----------
Networking Products -- 2.5%
Cisco Systems, Inc.+..................... 62,700 1,510,443
----------
Oil Companies-Exploration & Production -- 1.3%
XTO Energy, Inc.......................... 12,100 748,506
----------
Oil Companies-Integrated -- 2.3%
Exxon Mobil Corp......................... 16,400 1,387,112
----------
Oil-Field Services -- 4.3%
Halliburton Co........................... 19,500 766,935
Schlumberger, Ltd........................ 12,050 1,048,350
Transocean, Inc.+........................ 5,692 769,558
----------
2,584,843
----------
Retail-Apparel/Shoe -- 0.6%
American Eagle Outfitters, Inc........... 18,700 327,437
----------
Retail-Consumer Electronics -- 0.5%
Best Buy Co., Inc........................ 7,300 302,658
----------
Retail-Discount -- 2.0%
Target Corp.............................. 8,600 435,848
Wal-Mart Stores, Inc..................... 14,800 779,664
----------
1,215,512
----------
Retail-Drug Store -- 2.8%
CVS Caremark Corp........................ 41,902 1,697,450
----------
Retail-Office Supplies -- 0.9%
Staples, Inc............................. 24,000 530,640
----------
Retail-Regional Department Stores -- 0.7%
Kohl's Corp.+............................ 10,300 441,767
----------
Telecom Equipment-Fiber Optics -- 1.4%
Corning, Inc............................. 34,600 831,784
----------
Therapeutics -- 2.2%
Gilead Sciences, Inc.+................... 25,100 1,293,403
----------
Web Portals/ISP -- 2.8%
Google, Inc., Class A+................... 3,200 1,409,504
Yahoo!, Inc.+............................ 8,400 243,012
----------
1,652,516
----------
Wireless Equipment -- 2.0%
QUALCOMM, Inc............................ 29,150 1,195,150
----------
X-Ray Equipment -- 0.9%
Hologic, Inc.+........................... 10,000 556,000
----------
Market
Principal Value
Security Description Amount (Note 3)
--------------------------------------------------------------
Total Long-Term Investment Securities
(cost $54,109,480)................. $57,308,101
-----------
REPURCHASE AGREEMENT -- 4.0%
State Street Bank & Trust Co. Joint
Repurchase Agreement(1)............
(cost $2,392,000).................. $ 2,392,000 2,392,000
-----------
TOTAL INVESTMENTS
(cost $56,501,480)(2).............. 99.8% 59,700,101
Other assets less liabilities......... 0.2 141,082
----------- -----------
NET ASSETS 100.0% $59,841,183
=========== ===========
- --------
+ 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 -- AmericanDepository Receipt
See Notes to Financial Statements
29
SunAmerica Growth Opportunities Fund
PORTFOLIO PROFILE -- March 31, 2008 -- (unaudited)
Industry Allocation*
Repurchase Agreement........................ 12.4%
Commercial Services......................... 9.2
Commercial Services-Finance................. 7.3
Oil-Field Services.......................... 5.8
Physical Therapy/Rehabilitation Centers..... 4.8
Medical-Hospitals........................... 4.6
Oil Companies-Exploration & Production...... 3.6
Racetracks.................................. 3.5
Gas-Distribution............................ 2.6
Power Converter/Supply Equipment............ 2.5
Water....................................... 2.5
Human Resources............................. 2.1
Casino Services............................. 2.1
Electronic Components-Misc.................. 2.0
Dental Supplies & Equipment................. 1.9
Computer Aided Design....................... 1.9
Private Corrections......................... 1.9
Food-Wholesale/Distribution................. 1.8
Distribution/Wholesale...................... 1.7
Water Treatment Systems..................... 1.6
Enterprise Software/Service................. 1.5
Veterinary Diagnostics...................... 1.4
Retail-Petroleum Products................... 1.4
Medical-HMO................................. 1.2
Theater..................................... 1.1
Electronic Components-Semiconductors........ 1.1
Computers-Integrated Systems................ 1.1
Aerospace/Defense........................... 1.0
Insurance-Multi-line........................ 1.0
Retail-Apparel/Shoe......................... 1.0
Dialysis Centers............................ 0.8
Insurance-Life/Health....................... 0.8
Motion Pictures & Services.................. 0.7
Computer Services........................... 0.7
Internet Connectivity Services.............. 0.6
Semiconductor Components-Integrated Circuits 0.5
Networking Products......................... 0.5
Semiconductor Equipment..................... 0.4
Electronic Measurement Instruments.......... 0.4
----
93.0%
====
- --------
* Calculated as a percentage of net assets
30
SunAmerica Growth Opportunities Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited)
Market
Value
Security Description Shares (Note 3)
---------------------------------------------------------------
COMMON STOCK -- 80.6%
Aerospace/Defense -- 1.0%
Spirit Aerosystems Holdings, Inc., Class A+. 18,700 $ 414,766
----------
Casino Services -- 2.1%
Scientific Games Corp., Class A+............ 41,600 878,176
----------
Commercial Services -- 9.2%
Alliance Data Systems Corp.+................ 32,000 1,520,320
Iron Mountain, Inc.+........................ 57,300 1,515,012
The Providence Service Corp.+............... 26,600 798,000
----------
3,833,332
----------
Commercial Services-Finance -- 7.3%
Cardtronics, Inc.+.......................... 81,018 564,695
Equifax, Inc................................ 30,800 1,061,984
Global Payments, Inc........................ 35,000 1,447,600
----------
3,074,279
----------
Computer Aided Design -- 1.9%
Aspen Technology, Inc.+..................... 62,100 791,775
----------
Computer Services -- 0.7%
DST Systems, Inc.+.......................... 4,600 302,404
----------
Computers-Integrated Systems -- 1.1%
Brocade Communications Systems, Inc.+....... 61,700 450,410
----------
Dental Supplies & Equipment -- 1.9%
Sirona Dental Systems, Inc.+................ 29,600 798,312
----------
Dialysis Centers -- 0.8%
DaVita, Inc.+............................... 6,800 324,768
----------
Distribution/Wholesale -- 1.7%
MWI Veterinary Supply, Inc.+................ 19,700 694,622
----------
Electronic Components-Misc. -- 2.0%
Daktronics, Inc............................. 46,100 825,651
----------
Electronic Components-Semiconductors -- 1.1%
Microsemi Corp.+............................ 12,900 294,120
ON Semiconductor Corp.+..................... 29,400 166,992
----------
461,112
----------
Electronic Measurement Instruments -- 0.4%
Measurement Specialties, Inc.+.............. 9,600 167,712
----------
Enterprise Software/Service -- 1.5%
Epicor Software Corp.+...................... 55,300 619,360
----------
Food-Wholesale/Distribution -- 1.8%
Spartan Stores, Inc......................... 37,100 773,535
----------
Gas-Distribution -- 2.6%
AGL Resources, Inc.......................... 31,800 1,091,376
----------
Human Resources -- 2.1%
Emergency Medical Services Corp., Class A+.. 36,100 891,309
----------
Insurance-Life/Health -- 0.8%
Reinsurance Group of America, Inc........... 5,800 315,752
----------
Insurance-Multi-line -- 1.0%
HCC Insurance Holdings, Inc................. 18,200 412,958
----------
Internet Connectivity Services -- 0.6%
NDS Group PLC+.............................. 4,770 233,110
----------
Market
Value
Security Description Shares (Note 3)
------------------------------------------------------------------
Medical-HMO -- 1.2%
Coventry Health Care, Inc.+.................. 12,400 $ 500,340
-----------
Medical-Hospitals -- 4.6%
LifePoint Hospitals, Inc.+................... 37,600 1,032,872
Universal Health Services, Inc., Class B..... 16,700 896,623
-----------
1,929,495
-----------
Motion Pictures & Services -- 0.7%
Macrovision Corp.+........................... 22,900 309,150
-----------
Networking Products -- 0.5%
Foundry Networks, Inc.+...................... 17,400 201,492
-----------
Oil Companies-Exploration & Production -- 3.6%
ATP Oil & Gas Corp.+......................... 34,600 1,132,112
Warren Resources, Inc.+...................... 32,600 386,962
-----------
1,519,074
-----------
Oil-Field Services -- 5.8%
Exterran Holdings, Inc.+..................... 16,900 1,090,726
Helix Energy Solutions Group, Inc.+.......... 43,100 1,357,650
-----------
2,448,376
-----------
Physical Therapy/Rehabilitation Centers -- 4.8%
Psychiatric Solutions, Inc.+................. 59,000 2,001,280
-----------
Power Converter/Supply Equipment -- 2.5%
PowerSecure International, Inc.+............. 89,800 1,056,946
-----------
Private Corrections -- 1.9%
Corrections Corp. of America+................ 28,500 784,320
-----------
Racetracks -- 3.5%
International Speedway Corp., Class A........ 22,000 906,400
Speedway Motorsports, Inc.................... 21,900 549,033
-----------
1,455,433
-----------
Retail-Apparel/Shoe -- 1.0%
American Eagle Outfitters, Inc............... 22,900 400,979
-----------
Retail-Petroleum Products -- 1.4%
World Fuel Services Corp..................... 21,300 597,891
-----------
Semiconductor Components-Integrated Circuits -- 0.5%
Maxim Integrated Products, Inc............... 10,000 203,900
-----------
Semiconductor Equipment -- 0.4%
Brooks Automation, Inc.+..................... 18,900 183,708
-----------
Theater -- 1.1%
National CineMedia, Inc...................... 21,400 481,072
-----------
Veterinary Diagnostics -- 1.4%
Animal Health International, Inc.+........... 54,789 599,392
-----------
Water -- 2.5%
Aqua America, Inc............................ 55,000 1,032,900
-----------
Water Treatment Systems -- 1.6%
Nalco Holding Co............................. 32,100 678,915
-----------
Total Long-Term Investment Securities
(cost $33,416,114).......................... 33,739,382
-----------
31
SunAmerica Growth Opportunities Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market
Principal Value
Security Description Amount (Note 3)
--------------------------------------------------------------
REPURCHASE AGREEMENT -- 12.4%
State Street Bank & Trust Co. Joint
Repurchase Agreement(1)
(cost $5,178,000).................. $ 5,178,000 $ 5,178,000
-----------
TOTAL INVESTMENTS
(cost $38,594,114)(2).............. 93.0% 38,917,382
Other assets less liabilities......... 7.0 2,918,423
----------- -----------
NET ASSETS 100.0% $41,835,805
=========== ===========
- --------
+ 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.
See Notes to Financial Statements
32
SunAmerica New Century Fund
PORTFOLIO PROFILE -- March 31, 2008 -- (unaudited)
Industry Allocation*
Data Processing/Management.................. 8.8%
Commercial Services......................... 7.9
Repurchase Agreement........................ 7.4
Commercial Services-Finance................. 6.5
Oil-Field Services.......................... 6.0
Physical Therapy/Rehabilitation Centers..... 4.7
Medical-Hospitals........................... 4.5
Medical-Wholesale Drug Distribution......... 4.0
Oil Companies-Exploration & Production...... 2.7
Gas-Distribution............................ 2.6
Water....................................... 2.4
Racetracks.................................. 2.2
Casino Services............................. 2.1
Batteries/Battery Systems................... 1.9
Telecom Services............................ 1.9
Medical-Generic Drugs....................... 1.9
Computer Aided Design....................... 1.9
Private Corrections......................... 1.9
Medical Information Systems................. 1.8
Dental Supplies & Equipment................. 1.8
Semiconductor Components-Integrated Circuits 1.7
Water Treatment Systems..................... 1.6
Retail-Petroleum Products................... 1.5
Investment Management/Advisor Services...... 1.4
Electronic Forms............................ 1.3
Medical-HMO................................. 1.2
Computers-Integrated Systems................ 1.1
Insurance-Multi-line........................ 1.0
Insurance-Property/Casualty................. 1.0
Aerospace/Defense........................... 1.0
Retail-Apparel/Shoe......................... 0.9
Oil Field Machinery & Equipment............. 0.9
Dialysis Centers............................ 0.8
Computer Services........................... 0.7
Motion Pictures & Services.................. 0.7
Internet Connectivity Services.............. 0.6
Coal........................................ 0.5
Networking Products......................... 0.5
Electronic Components-Semiconductors........ 0.4
----
93.7%
====
- --------
* Calculated as a percentage of net assets
33
SunAmerica New Century Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited)
Market
Value
Security Description Shares (Note 3)
-----------------------------------------------------------------
COMMON STOCK -- 86.3%
Aerospace/Defense -- 1.0%
Spirit Aerosystems Holdings, Inc., Class A+.. 32,600 $ 723,068
----------
Batteries/Battery Systems -- 1.9%
Energizer Holdings, Inc.+.................... 15,800 1,429,584
----------
Casino Services -- 2.1%
Scientific Games Corp., Class A+............. 74,100 1,564,251
----------
Coal -- 0.5%
Peabody Energy Corp.......................... 7,300 372,300
----------
Commercial Services -- 7.9%
Alliance Data Systems Corp.+................. 56,200 2,670,062
Iron Mountain, Inc.+......................... 117,800 3,114,632
----------
5,784,694
----------
Commercial Services-Finance -- 6.5%
Equifax, Inc................................. 65,200 2,248,096
Global Payments, Inc......................... 60,300 2,494,008
----------
4,742,104
----------
Computer Aided Design -- 1.9%
Aspen Technology, Inc.+...................... 107,600 1,371,900
----------
Computer Services -- 0.7%
DST Systems, Inc.+........................... 8,300 545,642
----------
Computers-Integrated Systems -- 1.1%
Brocade Communications Systems, Inc.+........ 108,200 789,860
----------
Data Processing/Management -- 8.8%
Fidelity National Information Services, Inc.. 78,700 3,001,618
Fiserv, Inc.+................................ 71,800 3,452,862
----------
6,454,480
----------
Dental Supplies & Equipment -- 1.8%
Sirona Dental Systems, Inc.+................. 48,100 1,297,257
----------
Dialysis Centers -- 0.8%
DaVita, Inc.+................................ 11,900 568,344
----------
Electronic Components-Semiconductors -- 0.4%
ON Semiconductor Corp.+...................... 51,600 293,088
----------
Electronic Forms -- 1.3%
Adobe Systems, Inc.+......................... 26,400 939,576
----------
Gas-Distribution -- 2.6%
AGL Resources, Inc........................... 55,400 1,901,328
----------
Insurance-Multi-line -- 1.0%
HCC Insurance Holdings, Inc.................. 32,000 726,080
----------
Insurance-Property/Casualty -- 1.0%
W.R. Berkley Corp............................ 26,200 725,478
----------
Internet Connectivity Services -- 0.6%
NDS Group PLC ADR+........................... 8,422 411,583
----------
Investment Management/Advisor Services -- 1.4%
Invesco, Ltd................................. 41,900 1,020,684
----------
Medical Information Systems -- 1.8%
IMS Health, Inc.............................. 62,200 1,306,822
----------
Medical-Generic Drugs -- 1.9%
Barr Pharmaceuticals, Inc.+.................. 28,500 1,376,835
----------
Market
Value
Security Description Shares (Note 3)
-------------------------------------------------------------------
Medical-HMO -- 1.2%
Coventry Health Care, Inc.+.................. 21,700 $ 875,595
-----------
Medical-Hospitals -- 4.5%
LifePoint Hospitals, Inc.+................... 66,300 1,821,261
Universal Health Services, Inc., Class B..... 28,200 1,514,058
-----------
3,335,319
-----------
Medical-Wholesale Drug Distribution --4.0%
AmerisourceBergen Corp....................... 40,000 1,639,200
Cardinal Health, Inc......................... 24,100 1,265,491
-----------
2,904,691
-----------
Motion Pictures & Services -- 0.7%
Macrovision Corp.+........................... 39,900 538,650
-----------
Networking Products -- 0.5%
Foundry Networks, Inc.+...................... 30,500 353,190
-----------
Oil Companies-Exploration & Production -- 2.7%
ATP Oil & Gas Corp.+......................... 60,500 1,979,560
-----------
Oil Field Machinery & Equipment -- 0.9%
Cameron International Corp.+................. 16,800 699,552
-----------
Oil-Field Services -- 6.0%
Exterran Holdings, Inc.+..................... 31,900 2,058,826
Helix Energy Solutions Group, Inc.+.......... 75,200 2,368,800
-----------
4,427,626
-----------
Physical Therapy/Rehabilitation Centers -- 4.7%
Psychiatric Solutions, Inc.+................. 102,500 3,476,800
-----------
Private Corrections -- 1.9%
Corrections Corp. of America+................ 49,700 1,367,744
-----------
Racetrack -- 2.2%
International Speedway Corp., Class A........ 39,000 1,606,800
-----------
Retail-Apparel/Shoe -- 0.9%
American Eagle Outfitters, Inc............... 40,000 700,400
-----------
Retail-Petroleum Products -- 1.5%
World Fuel Services Corp..................... 38,400 1,077,888
-----------
Semiconductor Components-Integrated Circuits -- 1.7%
Marvell Technology Group, Ltd.+.............. 51,800 563,584
Maxim Integrated Products, Inc............... 34,900 711,611
-----------
1,275,195
-----------
Telecom Services -- 1.9%
Amdocs, Ltd.+................................ 50,200 1,423,672
-----------
Water -- 2.4%
Aqua America, Inc............................ 95,000 1,784,100
-----------
Water Treatment Systems -- 1.6%
Nalco Holding Co............................. 55,200 1,167,480
-----------
Total Long-Term Investment Securities
(cost $64,082,792).......................... 63,339,220
-----------
34
SunAmerica New Century Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market
Principal Value
Security Description Amount (Note 3)
--------------------------------------------------------------
REPURCHASE AGREEMENT -- 7.4%
State Street Bank & Trust Co. Joint
Repurchase Agreement(1)
(cost $5,409,000).................. $ 5,409,000 $ 5,409,000
-----------
TOTAL INVESTMENTS
(cost $69,491,792)(2).............. 93.7% 68,748,220
Other assets less liabilities......... 6.3 4,632,455
----------- -----------
NET ASSETS 100.0% $73,380,675
=========== ===========
- --------
+ 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 -- AmericanDepository Receipt
See Notes to Financial Statements
35
SunAmerica Growth and Income Fund
PORTFOLIO PROFILE -- March 31, 2008 -- (unaudited)
Industry Allocation*
Oil Companies-Integrated.............. 9.8%
Aerospace/Defense..................... 6.5
Finance-Investment Banker/Broker...... 6.2
Telephone-Integrated.................. 4.7
Medical-Drugs......................... 4.2
Food-Misc............................. 4.2
Investment Management/Advisor Services 4.1
Diversified Manufacturing Operations.. 3.4
Repurchase Agreement.................. 2.9
Electric-Integrated................... 2.8
Electronic Components-Semiconductors.. 2.6
Computers............................. 2.6
Cosmetics & Toiletries................ 2.3
Oil-Field Services.................... 2.2
Tobacco............................... 2.2
Enterprise Software/Service........... 2.1
Brewery............................... 2.1
Insurance-Multi-line.................. 2.0
Multimedia............................ 2.0
Applications Software................. 1.9
Insurance-Property/Casualty........... 1.9
Banks-Super Regional.................. 1.9
Non-Hazardous Waste Disposal.......... 1.6
Transport-Services.................... 1.6
Networking Products................... 1.6
Medical Instruments................... 1.5
Telecommunication Equipment........... 1.5
Batteries/Battery Systems............. 1.5
Medical Products...................... 1.5
Banks-Fiduciary....................... 1.5
Retail-Apparel/Shoe................... 1.4
Chemicals-Diversified................. 1.4
Electronic Components-Misc............ 1.3
Metal-Aluminum........................ 1.3
Medical-Biomedical/Gene............... 1.1
Telecom Equipment-Fiber Optics........ 1.1
Wireless Equipment.................... 1.0
Metal-Diversified..................... 1.0
Web Portals/ISP....................... 0.9
----
97.4%
====
- --------
* Calculated as a percentage of net assets
36
SunAmerica Growth and Income Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited)
Market
Value
Security Description Shares (Note 3)
---------------------------------------------------------------
COMMON STOCK -- 94.5%
Aerospace/Defense -- 6.5%
Boeing Co................................... 23,400 $1,740,258
General Dynamics Corp....................... 17,100 1,425,627
Raytheon Co................................. 21,200 1,369,732
Spirit Aerosystems Holdings, Inc., Class A+. 55,600 1,233,208
----------
5,768,825
----------
Applications Software -- 1.9%
Microsoft Corp.............................. 60,300 1,711,314
----------
Banks-Fiduciary -- 1.5%
The Bank of New York Mellon Corp............ 30,900 1,289,457
----------
Banks-Super Regional -- 1.9%
Bank of America Corp........................ 43,600 1,652,876
----------
Batteries/Battery Systems -- 1.5%
Energizer Holdings, Inc.+................... 14,600 1,321,008
----------
Brewery -- 2.1%
Anheuser-Busch Cos., Inc.................... 38,300 1,817,335
----------
Chemicals-Diversified -- 1.4%
E.I. du Pont de Nemours & Co................ 25,800 1,206,408
----------
Computers -- 2.6%
Apple, Inc.+................................ 7,100 1,018,850
Hewlett-Packard Co.......................... 27,600 1,260,216
----------
2,279,066
----------
Cosmetics & Toiletries -- 2.3%
Procter & Gamble Co......................... 29,200 2,046,044
----------
Diversified Manufacturing Operations -- 3.4%
General Electric Co......................... 81,100 3,001,511
----------
Electric-Integrated -- 2.8%
FPL Group, Inc.............................. 20,500 1,286,170
Public Service Enterprise Group, Inc........ 30,400 1,221,776
----------
2,507,946
----------
Electronic Components-Misc. -- 1.3%
Tyco Electronics, Ltd....................... 34,700 1,190,904
----------
Electronic Components-Semiconductors -- 2.6%
Intel Corp.................................. 61,500 1,302,570
Microchip Technology, Inc................... 30,200 988,446
----------
2,291,016
----------
Enterprise Software/Service -- 2.1%
Oracle Corp.+............................... 96,500 1,887,540
----------
Finance-Investment Banker/Broker -- 6.2%
Citigroup, Inc.............................. 86,800 1,859,256
JPMorgan Chase & Co......................... 40,600 1,743,770
Morgan Stanley.............................. 40,900 1,869,130
----------
5,472,156
----------
Food-Misc. -- 4.2%
General Mills, Inc.......................... 29,000 1,736,520
Kraft Foods, Inc., Class A.................. 62,700 1,944,327
----------
3,680,847
----------
Market
Value
Security Description Shares (Note 3)
----------------------------------------------------------------
Insurance-Multi-line -- 2.0%
Hartford Financial Services Group, Inc...... 23,800 $1,803,326
----------
Insurance-Property/Casualty -- 1.9%
Chubb Corp.................................. 34,200 1,692,216
----------
Investment Management/Advisor Services -- 4.1%
Ameriprise Financial, Inc................... 33,900 1,757,715
Invesco, Ltd................................ 75,500 1,839,180
----------
3,596,895
----------
Medical Instruments -- 1.5%
Medtronic, Inc.............................. 27,600 1,335,012
----------
Medical Products -- 1.5%
Johnson & Johnson........................... 19,900 1,290,913
----------
Medical-Biomedical/Gene -- 1.1%
Genzyme Corp.+.............................. 13,300 991,382
----------
Medical-Drugs -- 4.2%
Abbott Laboratories......................... 23,800 1,312,570
Merck & Co., Inc............................ 29,600 1,123,320
Pfizer, Inc................................. 62,050 1,298,707
----------
3,734,597
----------
Metal-Aluminum -- 1.3%
Alcoa, Inc.................................. 32,700 1,179,162
----------
Metal-Diversified -- 1.0%
Freeport-McMoRan Copper & Gold, Inc......... 9,500 914,090
----------
Multimedia -- 2.0%
News Corp., Class A......................... 95,100 1,783,125
----------
Networking Products -- 1.6%
Cisco Systems, Inc.+........................ 57,500 1,385,175
----------
Non-Hazardous Waste Disposal -- 1.6%
Waste Management, Inc....................... 43,200 1,449,792
----------
Oil Companies-Integrated -- 9.8%
Chevron Corp................................ 26,100 2,227,896
ConocoPhillips.............................. 29,700 2,263,437
Exxon Mobil Corp............................ 25,000 2,114,500
Marathon Oil Corp........................... 45,300 2,065,680
----------
8,671,513
----------
Oil-Field Services -- 2.2%
BJ Services Co.............................. 68,000 1,938,680
----------
Retail-Apparel/Shoe -- 1.4%
American Eagle Outfitters, Inc.............. 72,100 1,262,471
----------
Telecom Equipment-Fiber Optics -- 1.1%
Corning, Inc................................ 40,300 968,812
----------
Telecommunication Equipment -- 1.5%
Harris Corp................................. 27,300 1,324,869
----------
Telephone-Integrated -- 4.7%
AT&T, Inc................................... 72,900 2,792,070
Verizon Communications, Inc................. 36,900 1,345,005
----------
4,137,075
----------
37
SunAmerica Growth and Income Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Shares/ Market
Principal Value
Security Description Amount (Note 3)
- --------------------------------------------------------------------------------------------------------
COMMON STOCK (continued)
Tobacco -- 2.2%
Altria Group, Inc.............................................................. 26,600 $ 590,520
Philip Morris International, Inc.+............................................. 26,600 1,345,428
-----------
1,935,948
-----------
Transport-Services -- 1.6%
United Parcel Service, Inc., Class B........................................... 19,600 1,431,192
-----------
Web Portals/ISP -- 0.9%
Google, Inc., Class A+......................................................... 1,800 792,846
-----------
Wireless Equipment -- 1.0%
QUALCOMM, Inc.................................................................. 22,500 922,500
-----------
Total Long-Term Investment Securities
(cost $86,738,726)........................................................... 83,665,844
-----------
REPURCHASE AGREEMENT -- 2.9%
State Street Bank & Trust Co. Joint Repurchase Agreement(1) (cost $2,539,000).. $ 2,539,000 2,539,000
-----------
TOTAL INVESTMENTS
(cost $89,277,726)(2)........................................................ 97.4% 86,204,844
Other assets less liabilities................................................... 2.6 2,306,785
----------- -----------
NET ASSETS 100.0% $88,511,629
=========== ===========
- --------
+ 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.
See Notes to Financial Statements
38
SunAmerica Balanced Assets Fund
PORTFOLIO PROFILE -- March 31, 2008 -- (unaudited)
Industry Allocation*
Federal Home Loan Mtg. Corp........... 6.2%
Repurchase Agreement.................. 4.9
Oil Companies-Integrated.............. 4.8
Diversified Manufacturing Operations.. 4.0
Diversified Financial Services........ 4.0
Federal National Mtg. Assoc........... 3.5
Electric-Integrated................... 3.5
Finance-Investment Banker/Broker...... 3.2
Aerospace/Defense..................... 2.8
Telephone-Integrated.................. 2.4
Medical-Drugs......................... 2.3
Computers............................. 2.2
Oil-Field Services.................... 2.1
Insurance-Multi-line.................. 1.9
Medical Products...................... 1.8
Cosmetics & Toiletries................ 1.8
United States Treasury Notes.......... 1.7
Investment Management/Advisor Services 1.5
Multimedia............................ 1.4
Special Purpose Entities.............. 1.4
Food-Misc............................. 1.4
Electronic Components-Semiconductors.. 1.3
Beverages-Non-alcoholic............... 1.2
Medical-Biomedical/Gene............... 1.2
Applications Software................. 1.2
Retail-Drug Store..................... 1.2
Banks-Fiduciary....................... 1.1
Banks-Super Regional.................. 1.1
Electric Products-Misc................ 1.0
Web Portals/ISP....................... 1.0
Commercial Services-Finance........... 1.0
Networking Products................... 0.9
Agricultural Chemicals................ 0.8
Retail-Discount....................... 0.8
Therapeutics.......................... 0.7
Tobacco............................... 0.7
Government National Mtg. Assoc........ 0.7
Oil Companies-Exploration & Production 0.7
Banks-Commercial...................... 0.7
Wireless Equipment.................... 0.7
Instruments-Scientific................ 0.7
Sovereign............................. 0.7
Brewery............................... 0.7
Metal-Aluminum........................ 0.6
Non-Hazardous Waste Disposal.......... 0.6
Insurance-Property/Casualty........... 0.6
Retail-Apparel/Shoe................... 0.6
Enterprise Software/Service........... 0.6
Cellular Telecom...................... 0.6
Pipelines............................. 0.5
Metal-Diversified..................... 0.5
Chemicals-Diversified................. 0.5
Medical Instruments................... 0.5
Savings & Loans/Thrifts............... 0.5
Telecom Equipment-Fiber Optics........ 0.5
Aerospace/Defense-Equipment........... 0.5
Oil & Gas Drilling.................... 0.4
Commercial Services................... 0.4
Data Processing/Management............ 0.4
Medical-HMO........................... 0.4
Electronics-Military.................. 0.4
Electronic Measurement Instruments.. 0.4
Diversified Minerals................ 0.4
Telecom Services.................... 0.4
Electronic Forms.................... 0.3
Real Estate Investment Trusts....... 0.3
X-Ray Equipment..................... 0.3
Transport-Air Freight............... 0.3
Retail-Office Supplies.............. 0.3
Insurance-Life/Health............... 0.3
Entertainment Software.............. 0.3
Medical-Generic Drugs............... 0.3
Retail-Regional Department Stores... 0.2
Transport-Rail...................... 0.2
Office Automation & Equipment....... 0.2
Coal................................ 0.2
E-Commerce/Services................. 0.2
Medical-Hospitals................... 0.2
Internet Infrastructure Software.... 0.2
Banks-Money Center.................. 0.2
Steel-Producers..................... 0.2
Casino Hotel........................ 0.2
Electric-Generation................. 0.2
Rental Auto/Equipment............... 0.2
Retail-Consumer Electronics......... 0.2
Medical-Wholesale Drug Distribution. 0.2
Finance-Auto Loans.................. 0.2
Cable TV............................ 0.2
Computer Aided Design............... 0.2
Metal Processors & Fabrication...... 0.1
Oil Refining & Marketing............ 0.1
Radio............................... 0.1
Diagnostic Kits..................... 0.1
Diversified Operations.............. 0.1
Broadcast Services/Program.......... 0.1
Agricultural Operations............. 0.1
Beverages-Wine/Spirits.............. 0.1
Real Estate Operations & Development 0.1
Finance-Commercial.................. 0.1
Containers-Paper/Plastic............ 0.1
Chemicals-Specialty................. 0.1
United States Treasury Bonds........ 0.1
Paper & Related Products............ 0.1
Retail-Restaurants.................. 0.1
Airlines............................ 0.1
Transport-Marine.................... 0.1
Insurance Brokers................... 0.1
Industrial Automated/Robotic........ 0.1
Independent Power Producer.......... 0.1
Computer Services................... 0.1
Food-Retail......................... 0.1
Quarrying........................... 0.1
Finance-Consumer Loans.............. 0.1
Home Decoration Products............ 0.1
Gas-Distribution.................... 0.1
Transport-Services.................. 0.1
Cruise Lines........................ 0.1
Auto-Cars/Light Trucks.............. 0.1
----
97.9%
====
- --------
* Calculated as a percentage of net assets
39
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited)
Market
Value
Security Description Shares (Note 3)
---------------------------------------------------------------
COMMON STOCK -- 59.9%
Aerospace/Defense -- 2.7%
Boeing Co................................... 16,100 $1,197,357
General Dynamics Corp....................... 7,400 616,938
Lockheed Martin Corp........................ 3,200 317,760
Raytheon Co................................. 18,000 1,162,980
Spirit Aerosystems Holdings, Inc., Class A+. 8,900 197,402
----------
3,492,437
----------
Aerospace/Defense-Equipment -- 0.4%
United Technologies Corp.................... 7,200 495,504
----------
Agricultural Chemicals -- 0.7%
Monsanto Co................................. 8,600 958,900
----------
Applications Software -- 1.2%
Microsoft Corp.............................. 53,078 1,506,354
----------
Banks-Fiduciary -- 1.1%
The Bank of New York Mellon Corp............ 33,516 1,398,623
----------
Banks-Super Regional -- 0.9%
Bank of America Corp........................ 29,588 1,121,681
----------
Beverages-Non-alcoholic -- 1.2%
PepsiCo, Inc................................ 22,000 1,588,400
----------
Brewery -- 0.6%
Anheuser-Busch Cos., Inc.................... 17,700 839,865
----------
Casino Hotel -- 0.1%
MGM Mirage, Inc.+........................... 2,546 149,628
----------
Cellular Telecom -- 0.3%
NII Holdings, Inc.+......................... 13,200 419,496
----------
Chemicals-Diversified -- 0.4%
E.I. du Pont de Nemours & Co................ 11,800 551,768
----------
Coal -- 0.2%
Peabody Energy Corp......................... 6,100 311,100
----------
Commercial Services -- 0.4%
AerCap Holdings NV+......................... 13,200 232,056
Alliance Data Systems Corp.+................ 7,000 332,570
----------
564,626
----------
Commercial Services-Finance -- 0.8%
Global Payments, Inc........................ 13,100 541,816
Visa, Inc., Class A+........................ 7,150 445,874
----------
987,690
----------
Computer Aided Design -- 0.2%
Autodesk, Inc.+............................. 6,144 193,413
----------
Computers -- 2.2%
Apple, Inc.+................................ 6,800 975,800
Hewlett-Packard Co.......................... 17,800 812,748
International Business Machines Corp........ 4,900 564,186
Research In Motion Ltd.+.................... 4,000 448,920
----------
2,801,654
----------
Cosmetics & Toiletries -- 1.7%
Procter & Gamble Co......................... 32,200 2,256,254
----------
Data Processing/Management -- 0.4%
Fiserv, Inc.+............................... 11,700 562,653
----------
Market
Value
Security Description Shares (Note 3)
--------------------------------------------------------------
Diagnostic Kits -- 0.1%
Inverness Medical Innovations, Inc.+...... 5,800 $ 174,580
----------
Diversified Manufacturing Operations -- 3.6%
3M Co..................................... 8,900 704,435
Danaher Corp.............................. 10,300 783,109
Dover Corp................................ 11,790 492,586
General Electric Co....................... 73,200 2,709,132
----------
4,689,262
----------
Diversified Minerals -- 0.4%
Cia Vale do Rio Doce ADR.................. 14,600 505,744
----------
E-Commerce/Services -- 0.2%
eBay, Inc.+............................... 10,300 307,352
----------
Electric Products-Misc. -- 1.0%
AMETEK, Inc............................... 12,134 532,804
Emerson Electric Co....................... 14,100 725,586
----------
1,258,390
----------
Electric-Integrated -- 1.9%
FPL Group, Inc............................ 9,700 608,578
Public Service Enterprise Group, Inc...... 14,400 578,736
Southern Co............................... 17,300 616,053
Xcel Energy, Inc.......................... 30,100 600,495
----------
2,403,862
----------
Electronic Components-Semiconductors -- 1.2%
Broadcom Corp., Class A+.................. 12,100 233,167
Intel Corp................................ 40,300 853,554
Texas Instruments, Inc.................... 15,100 426,877
----------
1,513,598
----------
Electronic Forms -- 0.3%
Adobe Systems, Inc.+...................... 12,300 437,757
----------
Electronic Measurement Instruments -- 0.3%
Agilent Technologies, Inc.+............... 14,200 423,586
----------
Electronics-Military -- 0.4%
L-3 Communications Holdings, Inc.......... 4,600 502,964
----------
Enterprise Software/Service -- 0.6%
Oracle Corp.+............................. 37,800 739,368
----------
Entertainment Software -- 0.3%
Electronic Arts, Inc.+.................... 6,700 334,464
----------
Finance-Investment Banker/Broker -- 2.5%
Citigroup, Inc............................ 37,788 809,419
JPMorgan Chase & Co....................... 28,500 1,224,075
Morgan Stanley............................ 18,200 831,740
The Goldman Sachs Group, Inc.............. 2,584 427,368
----------
3,292,602
----------
Food-Misc. -- 1.3%
General Mills, Inc........................ 13,200 790,416
Kraft Foods, Inc., Class A................ 28,628 887,754
----------
1,678,170
----------
Independent Power Producer -- 0.0%
Mirant Corp.+............................. 186 6,769
----------
40
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market
Value
Security Description Shares (Note 3)
----------------------------------------------------------------
COMMON STOCK (continued)
Instruments-Scientific -- 0.7%
Thermo Fisher Scientific, Inc.+............. 15,700 $ 892,388
----------
Insurance-Multi-line -- 1.7%
Assurant, Inc............................... 8,000 486,880
Hartford Financial Services Group, Inc...... 10,700 810,739
MetLife, Inc................................ 14,400 867,744
----------
2,165,363
----------
Insurance-Property/Casualty -- 0.6%
Chubb Corp.................................. 14,700 727,356
----------
Internet Infrastructure Software -- 0.2%
Akamai Technologies, Inc.+.................. 10,200 287,232
----------
Investment Management/Advisor Services -- 1.4%
Ameriprise Financial, Inc................... 15,300 793,305
Invesco, Ltd................................ 44,400 1,081,584
----------
1,874,889
----------
Medical Instruments -- 0.5%
Medtronic, Inc.............................. 13,100 633,647
----------
Medical Products -- 1.8%
Johnson & Johnson........................... 29,700 1,926,639
Zimmer Holdings, Inc.+...................... 5,900 459,374
----------
2,386,013
----------
Medical-Biomedical/Gene -- 1.2%
Celgene Corp.+.............................. 7,100 435,159
Genentech, Inc.+............................ 6,600 535,788
Genzyme Corp.+.............................. 7,500 559,050
----------
1,529,997
----------
Medical-Drugs -- 1.9%
Abbott Laboratories......................... 17,900 987,185
Merck & Co., Inc............................ 14,100 535,095
Pfizer, Inc................................. 41,714 873,074
Schering-Plough Corp........................ 8,074 116,346
----------
2,511,700
----------
Medical-Generic Drugs -- 0.2%
Mylan, Inc.................................. 27,800 322,480
----------
Medical-HMO -- 0.4%
UnitedHealth Group Inc...................... 15,100 518,836
----------
Medical-Wholesale Drug Distribution -- 0.2%
Cardinal Health, Inc........................ 4,300 225,793
----------
Metal-Aluminum -- 0.4%
Alcoa, Inc.................................. 14,500 522,870
----------
Metal-Diversified -- 0.4%
Freeport-McMoRan Copper & Gold, Inc......... 5,600 538,832
----------
Multimedia -- 1.0%
News Corp., Class A......................... 67,714 1,269,638
----------
Networking Products -- 0.9%
Cisco Systems, Inc.+........................ 46,800 1,127,412
----------
Non-Hazardous Waste Disposal -- 0.6%
Waste Management, Inc....................... 21,800 731,608
----------
Market
Value
Security Description Shares (Note 3)
----------------------------------------------------------------
Oil Companies-Exploration & Production -- 0.4%
XTO Energy, Inc............................. 9,100 $ 562,926
----------
Oil Companies-Integrated -- 4.7%
Chevron Corp................................ 15,128 1,291,326
ConocoPhillips.............................. 15,900 1,211,739
Exxon Mobil Corp............................ 31,300 2,647,354
Marathon Oil Corp........................... 19,400 884,640
----------
6,035,059
----------
Oil-Field Services -- 2.5%
BJ Services Co.............................. 31,200 889,512
Global Industries, Ltd.+.................... 24,900 400,641
Halliburton Co.............................. 14,600 574,218
Schlumberger, Ltd........................... 9,050 787,350
Transocean, Inc.+........................... 4,283 579,062
----------
3,230,783
----------
Retail-Apparel/Shoe -- 0.6%
American Eagle Outfitters, Inc.............. 43,300 758,183
----------
Retail-Consumer Electronics -- 0.2%
Best Buy Co., Inc........................... 5,500 228,030
----------
Retail-Discount -- 0.7%
Target Corp................................. 6,400 324,352
Wal-Mart Stores, Inc........................ 11,100 584,748
----------
909,100
----------
Retail-Drug Store -- 1.0%
CVS Caremark Corp........................... 31,361 1,270,434
----------
Retail-Office Supplies -- 0.3%
Staples, Inc................................ 17,800 393,558
----------
Retail-Regional Department Stores -- 0.2%
Kohl's Corp.+............................... 7,700 330,253
----------
Telecom Equipment-Fiber Optics -- 0.5%
Corning, Inc................................ 26,000 625,040
----------
Telephone-Integrated -- 1.7%
AT&T, Inc................................... 37,835 1,449,080
Verizon Communications, Inc................. 19,100 696,195
----------
2,145,275
----------
Therapeutics -- 0.7%
Gilead Sciences, Inc.+...................... 18,700 963,611
----------
Tobacco -- 0.7%
Altria Group, Inc........................... 12,700 281,940
Philip Morris International, Inc.+.......... 12,700 642,366
----------
924,306
----------
Web Portals/ISP -- 1.0%
Google, Inc., Class A+...................... 2,400 1,057,128
Yahoo!, Inc.+............................... 6,300 182,259
----------
1,239,387
----------
Wireless Equipment -- 0.7%
QUALCOMM, Inc............................... 21,850 895,850
----------
41
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Shares/ Market
Principal Value
Security Description Amount (Note 3)
----------------------------------------------------------------
COMMON STOCK (continued)
X-Ray Equipment -- 0.3%
Hologic, Inc.+........................... 7,500 $ 417,000
-----------
Total Common Stock
(cost $75,203,206)...................... 77,663,363
-----------
PREFERRED STOCK -- 0.5%
Banks-Money Center -- 0.1%
Santander Finance Preferred SA(1)
4.00%................................... 8,400 142,800
-----------
Banks-Super Regional -- 0.1%
Wachovia Capital Trust IX
6.38%................................... 3,100 66,154
-----------
Diversified Financial Services -- 0.2%
General Electric Capital Corp.
8.00%(2)................................ 14,000 336,420
-----------
Special Purpose Entity -- 0.1%
Structured Repackaged Asset-Backed Trust
Securities 3.00%(1)..................... 9,200 157,320
-----------
Total Preferred Stock
(cost $853,994)......................... 702,694
-----------
ASSET BACKED SECURITIES -- 3.6%
Diversified Financial Services -- 3.6%
Banc of America Funding Corp.
Series 2007-C, Class 5A1
5.40% due 05/20/36(3)(6)................ $ 334,293 328,393
Banc of America Funding Corp.
Series 2006-J, Class 2A1
5.89% due 01/20/47(3)(6)................ 326,545 276,151
Bear Stearns Commercial Mtg.
Securities, Inc.
Series 2007-PW15, Class A2
5.21% due 02/11/44(5)................... 165,000 159,044
Chase Mtg. Finance Corp.
Series 2007-A2, Class 1A1
4.67% due 07/25/37(3)(6)................ 312,944 298,312
Commercial Mtg. Pass Through Certs.
Series 2004-LB2A, Class A3
4.22% due 03/10/39(5)................... 674,000 657,933
Countrywide Asset-Backed Certs.,
Series 2006-S4, Class A3
5.80% due 10/25/36(6)................... 920,000 552,000
Countrywide Asset-Backed Certs.,
Series 2006-S6, Class A3
5.66% due 03/25/34(6)................... 928,000 556,800
Ocwen Advance Receivables Backed
Notes
Series 2006-1A
5.34% due 11/24/15*(11)................. 350,000 308,000
Providian Master Note Trust
Series 2006-C1A, Class C1
3.37% due 03/16/15*(1).................. 550,000 478,156
Swift Master Auto Receivables Trust
Series 2007-2, Class A
3.47% due 10/15/12(1)................... 439,937 423,727
Market
Principal Value
Security Description Amount (Note 3)
---------------------------------------------------------------
Diversified Financial Services (continued)
Wells Fargo Mtg. Backed Securities Trust
Series 2006-AR17, Class A2
5.84% due 10/25/36(1)(3)................ $ 413,346 $ 395,733
Wells Fargo Mtg. Backed Securities Trust
Series 2006-AR12, Class 2A1
6.10% due 09/25/36(3)(6)................ 209,559 197,250
----------
Total Asset Backed Securities
(cost $5,634,951)....................... 4,631,499
----------
CORPORATE BONDS & NOTES -- 12.9%
Aerospace/Defense -- 0.1%
Lockheed Martin Corp.
Senior Notes
4.12% due 03/14/13...................... 80,000 80,115
----------
Aerospace/Defense-Equipment -- 0.1%
United Technologies Corp.
Senior Notes
4.88% due 05/01/15...................... 124,000 126,190
----------
Agricultural Chemicals -- 0.1%
Mosaic Global Holdings, Inc.
Debentures
7.38% due 08/01/18...................... 10,000 10,200
Terra Capital, Inc.
Company Guar. Notes
7.00% due 02/01/17...................... 25,000 24,656
The Mosaic Co.
Senior Notes
7.38% due 12/01/14*..................... 45,000 48,150
----------
83,006
----------
Agricultural Operations -- 0.1%
Archer-Daniels-Midland Co.
Senior Notes
5.45% due 03/15/18...................... 31,000 31,163
Archer-Daniels-Midland Co.
Senior Notes
6.45% due 01/15/38...................... 30,000 30,473
Cargill, Inc.
Senior Notes
5.00% due 11/15/13*..................... 106,000 105,635
----------
167,271
----------
Airlines -- 0.1%
American Airlines, Inc.
Pass Through Certs.
Series 2001-1, Class A-2
6.82% due 05/23/11...................... 70,000 65,975
Northwest Airlines, Inc.
Pass Through Certs.
Series 2002-1 Class G2
6.26% due 11/20/21...................... 41,631 41,163
----------
107,138
----------
Auto-Cars/Light Trucks -- 0.0%
Ford Motor Co.
Debentures
6.38% due 02/01/29...................... 60,000 36,000
42
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market
Principal Value
Security Description Amount (Note 3)
----------------------------------------------------------
CORPORATE BONDS & NOTES (continued)
Auto-Cars/Light Trucks (continued)
General Motors Corp.
Debentures
8.25% due 07/15/23.................. $ 40,000 $ 28,000
--------
64,000
--------
Banks-Commercial -- 0.5%
Colonial Bank NA
Sub. Notes
6.38% due 12/01/15.................. 70,000 60,316
First Maryland Capital II
Company Guar. Notes
4.09% due 02/01/27(1)............... 196,000 179,556
SouthTrust Bank
Sub. Notes
4.75% due 03/01/13.................. 120,000 121,358
SouthTrust Corp.
Sub. Notes
5.80% due 06/15/14.................. 55,000 57,947
SunTrust Bank
Sub. Notes
7.25% due 03/15/18.................. 35,000 35,794
Union Bank of California NA
Sub. Notes
5.95% due 05/11/16.................. 120,000 117,208
US Bank NA
Notes
3.90% due 08/15/08.................. 38,000 38,025
--------
610,204
--------
Banks-Fiduciary -- 0.0%
The Bank of New York Mellon Corp.
Senior Notes
4.95% due 11/01/12.................. 47,000 48,155
--------
Banks-Super Regional -- 0.2%
Bank of America Corp.
Company Guar. Notes
3.76% due 12/18/28(1)............... 80,000 60,761
Fifth Third Bancorp
Sub. Notes
8.25% due 03/01/38.................. 70,000 71,328
Wells Fargo Bank NA
Sub. Notes
6.45% due 02/01/11.................. 90,000 95,727
--------
227,816
--------
Broadcast Services/Program -- 0.0%
Nexstar Finance, Inc.
Senior Sub. Notes
7.00% due 01/15/14.................. 35,000 30,144
--------
Building-Residential/Commercial -- 0.0%
D.R. Horton, Inc.
Company Guar. Notes
5.00% due 01/15/09.................. 41,000 39,463
--------
Market
Principal Value
Security Description Amount (Note 3)
-----------------------------------------------------------
Cable TV -- 0.2%
CCH I LLC
Company Guar. Notes
11.00% due 10/01/15................... $ 28,000 $ 19,250
CCH II LLC/CCH II Capital Corp.
Company Guar. Notes
10.25% due 10/01/13................... 85,000 72,888
Comcast Cable Communications LLC
Senior Notes
7.13% due 06/15/13.................... 50,000 53,120
Comcast Corp.
Company Guar. Notes
5.88% due 02/15/18.................... 50,000 48,702
--------
193,960
--------
Casino Hotels -- 0.1%
MGM Mirage, Inc.
Senior Notes
5.88% due 02/27/14.................... 95,000 81,225
Turning Stone Resort Casino Enterprise
Senior Notes
9.13% due 09/15/14*................... 45,000 42,975
--------
124,200
--------
Casino Services -- 0.0%
Indianapolis Downs LLC
Sec. Notes
11.00% due 11/01/12*.................. 30,000 26,100
--------
Cellular Telecom -- 0.2%
Centennial Communications Corp.
Senior Notes
10.48% due 01/01/13(1)................ 100,000 87,000
MetroPCS Wireless, Inc.
Senior Notes
9.25% due 11/01/14.................... 50,000 46,000
Nextel Communications, Inc.
Company Guar. Notes
5.95% due 03/15/14.................... 100,000 74,000
Rural Cellular Corp.
Senior Sub. Notes
6.08% due 06/01/13(1)................. 15,000 15,000
Rural Cellular Corp.
Senior Notes
8.99% due 11/01/12(1)................. 5,000 5,000
--------
227,000
--------
Chemicals-Diversified -- 0.1%
E.I. Du Pont de Nemours & Co.
Senior Notes
4.88% due 04/30/14.................... 38,000 38,508
E.I. Du Pont de Nemours & Co.
Senior Notes
5.00% due 01/15/13.................... 65,000 67,681
--------
106,189
--------
43
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market
Principal Value
Security Description Amount (Note 3)
-----------------------------------------------------------------------
CORPORATE BONDS & NOTES (continued)
Chemicals-Specialty -- 0.1%
Huntsman International LLC
Company Guar. Notes
7.88% due 11/15/14................................ $ 60,000 $ 63,600
Momentive Performance Materials, Inc.
Senior Sub. Notes
11.50% due 12/01/16............................... 85,000 64,706
--------
128,306
--------
Commercial Services-Finance -- 0.2%
Credit Suisse New York
Sub. Notes
5.75% due 02/15/18................................ 43,000 42,897
The Western Union Co.
Senior Notes
5.40% due 11/17/11................................ 161,000 164,920
--------
207,817
--------
Computer Services -- 0.1%
Compucom Systems, Inc.
Senior Sub. Notes
12.50% due 10/01/15*.............................. 30,000 28,050
Computer Sciences Corp.
Senior Notes
3.50% due 04/15/08................................ 65,000 64,985
--------
93,035
--------
Computers -- 0.0%
Hewlett-Packard Co.
Senior Notes
4.50% due 03/01/13................................ 45,000 45,652
--------
Containers-Paper/Plastic -- 0.1%
Jefferson Smurfit Corp.
Company Guar. Notes
8.25% due 10/01/12................................ 30,000 27,037
Smurfit-Stone Container Enterprises, Inc.
Senior Notes
8.00% due 03/15/17................................ 125,000 105,000
--------
132,037
--------
Cosmetics & Toiletries -- 0.0%
Avon Products, Inc.
Senior Notes
5.75% due 03/01/18................................ 30,000 30,543
--------
Data Processing/Management -- 0.1%
Fiserv, Inc.
Company Guar. Notes
6.80% due 11/20/17................................ 80,000 82,672
--------
Direct Marketing -- 0.0%
Affinity Group, Inc.
Senior Sub. Notes
9.00% due 02/15/12................................ 45,000 41,569
--------
Diversified Financial Services -- 0.2%
American Express Travel Related Services Co., Inc.
Senior Notes
5.25% due 11/21/11*............................... 50,000 50,118
Market
Principal Value
Security Description Amount (Note 3)
---------------------------------------------------------------
Diversified Financial Services (continued)
General Electric Capital Corp.
Senior Notes
5.65% due 06/09/14....................... $ 80,000 $ 82,896
General Electric Capital Corp.
Senior Notes
5.88% due 01/14/38....................... 80,000 77,109
--------
210,123
--------
Diversified Manufacturing Operations -- 0.3%
Cooper, Inc.
Senior Notes
5.45% due 04/01/15....................... 80,000 80,737
Danaher Corp.
Senior Notes
5.63% due 01/15/18....................... 54,000 56,111
Dover Corp.
Senior Notes
5.45% due 03/15/18....................... 27,000 27,268
Dover Corp.
Senior Notes
6.60% due 03/15/38....................... 64,000 66,041
General Electric Co.
Senior Notes
5.25% due 12/06/17....................... 77,000 76,894
Honeywell International, Inc.
Senior Notes
4.25% due 03/01/13....................... 56,000 56,567
--------
363,618
--------
Diversified Operations -- 0.0%
Capmark Financial Group, Inc.
Company Guar. Notes
5.88% due 05/10/12*...................... 50,000 31,679
--------
Electric-Generation -- 0.2%
Bruce Mansfield Unit 1
Pass Through Certs.
6.85% due 06/01/34....................... 110,000 115,486
The AES Corp.
Senior Notes
8.00% due 10/15/17....................... 60,000 60,750
The AES Corp.
Senior Notes
8.88% due 02/15/11....................... 85,000 89,037
--------
265,273
--------
Electric-Integrated -- 1.5%
Centerpoint Energy, Inc.
Senior Notes
5.88% due 06/01/08....................... 140,000 140,213
Commonwealth Edison Co.
1st Mtg. Bonds
5.95% due 08/15/16....................... 50,000 50,785
Dominion Resources, Inc.
Senior Notes
5.75% due 05/15/08(2).................... 132,000 132,265
Dominion Resources, Inc.
Jr. Sub. Notes
6.30% due 09/30/11(4).................... 109,000 99,684
44
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------
CORPORATE BONDS & NOTES (continued)
Electric-Integrated (continued)
DTE Energy Co.
Senior Notes
7.05% due 06/01/11.............. $ 75,000 $ 80,211
Duke Energy Indiana, Inc.
Debentures
5.00% due 09/15/13.............. 60,000 60,374
Entergy Louisiana LLC
1st Mtg. Bonds
5.83% due 11/01/10.............. 195,000 194,543
FirstEnergy Corp.
Senior Notes
6.45% due 11/15/11.............. 66,060 69,149
Florida Power & Light Co.
1st Mtg. Notes
5.55% due 11/01/17.............. 96,000 100,496
Illinois Power Co.
Senior Sec. Notes
6.13% due 11/15/17*............. 45,000 44,498
Mackinaw Power LLC
Sec. Notes
6.30% due 10/31/23*............. 105,270 110,143
Mirant Americas Generation LLC
Senior Notes
8.30% due 05/01/11.............. 30,000 30,600
Mirant Mid-Atlantic LLC
Pass Through Certs.
Series B
9.13% due 06/30/17.............. 40,254 44,531
Nisource Finance Corp.
Company Guar. Notes
5.25% due 09/15/17.............. 43,000 39,149
Pacific Gas & Electric Co.
Senior Notes
4.80% due 03/01/14.............. 45,000 45,390
Pepco Holdings, Inc.
Senior Notes
6.45% due 08/15/12.............. 55,000 58,604
Potomac Electric Power Co.
Senior Sec. Notes
6.50% due 11/15/37.............. 80,000 78,114
PSEG Power LLC
Company Guar. Notes
5.00% due 04/01/14.............. 67,000 65,209
PSEG Power LLC
Company Guar. Notes
7.75% due 04/15/11.............. 65,000 70,032
Puget Sound Energy, Inc.
Senior Notes
5.20% due 10/01/15.............. 212,000 207,716
Sierra Pacific Power Co.
Senior Sec. Bonds
6.75% due 07/01/37.............. 90,000 86,308
Southern Energy, Inc.
Notes
7.90% due 07/15/09+(10)(11)(14). 150,000 0
Market
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------------
Electric-Integrated (continued)
Southern Power Co.
Senior Notes
4.88% due 07/15/15......................... $ 47,000 $ 45,089
Texas Competitive Electric Holdings Co. LLC
Senior Notes
10.25% due 11/01/15*....................... 60,000 59,775
----------
1,912,878
----------
Electronic Components-Semiconductors -- 0.1%
Freescale Semiconductor, Inc.
Senior Sub. Notes
10.13% due 12/15/16........................ 30,000 20,250
National Semiconductor Corp.
Senior Notes
6.60% due 06/15/17......................... 100,000 99,106
Spansion LLC
Senior Sec. Notes
6.20% due 06/01/13*(1)..................... 10,000 6,750
----------
126,106
----------
Electronic Measurement Instruments -- 0.1%
Agilent Technologies, Inc.
Senior Notes
6.50% due 11/01/17......................... 88,000 88,305
----------
Electronics-Military -- 0.0%
L-3 Communications Corp.
Company Guar. Notes
6.38% due 10/15/15......................... 20,000 19,550
----------
Finance-Auto Loans -- 0.2%
Ford Motor Credit Co. LLC
Senior Notes
7.38% due 10/28/09......................... 140,000 127,559
General Motors Acceptance Corp.
Senior Notes
6.88% due 09/15/11......................... 120,000 91,844
General Motors Acceptance Corp.
Senior Notes
6.88% due 08/28/12......................... 8,000 6,079
----------
225,482
----------
Finance-Commercial -- 0.1%
Caterpillar Financial Services Corp.
Senior Notes
4.70% due 03/15/12......................... 65,000 66,419
Transamerica Finance Corp.
Senior Notes
6.40% due 09/15/08......................... 75,000 76,146
----------
142,565
----------
Finance-Consumer Loans -- 0.1%
John Deere Capital Corp.
Senior Notes
4.50% due 04/03/13......................... 42,000 41,931
John Deere Capital Corp.
Senior Notes
5.35% due 04/03/18......................... 40,000 39,878
----------
81,809
----------
45
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market
Principal Value
Security Description Amount (Note 3)
-----------------------------------------------------------
CORPORATE BONDS & NOTES (continued)
Finance-Investment Banker/Broker -- 0.7%
Citigroup, Inc.
Senior Notes
5.00% due 09/15/14................... $ 40,000 $ 37,697
Citigroup, Inc.
Senior Notes
5.85% due 07/02/13................... 93,000 94,360
Citigroup, Inc.
Global Sub. Notes
6.00% due 10/31/33................... 40,000 34,176
JPMorgan Chase & Co.
Senior Notes
5.38% due 01/15/14................... 120,000 122,954
JPMorgan Chase & Co.
Senior Notes
6.00% due 01/15/18................... 44,000 45,884
JPMorgan Chase & Co.
Sub. Notes
5.75% due 01/02/13................... 56,000 58,502
Lehman Brothers Holdings, Inc.
Sub. Notes
6.50% due 07/19/17................... 110,000 104,461
Lehman Brothers Holdings, Inc.
Senior Notes
8.80% due 03/01/15................... 26,000 27,990
Morgan Stanley
Senior Notes
6.60% due 04/01/12................... 40,000 41,471
Morgan Stanley
Senior Notes
6.63% due 04/01/18................... 67,000 67,024
Merrill Lynch & Co., Inc.
Senior Notes
5.45% due 02/05/13................... 83,000 81,660
Schwab Capital Trust I
Company Guar. Bonds
7.50% due 11/15/37(6)................ 19,000 17,660
The Bear Stearns Cos., Inc.
Senior Notes
4.50% due 10/28/10................... 6,000 5,655
The Goldman Sachs Group, Inc.
Senior Notes
6.15% due 04/01/18................... 105,000 104,844
The Goldman Sachs Group, Inc.
Senior Notes
6.75% due 10/01/37................... 31,000 28,840
--------
873,178
--------
Finance-Mortgage Loan/Banker -- 0.0%
Countrywide Financial Corp.
Company Guar. Notes
5.80% due 06/07/12................... 4,000 3,624
Countrywide Financial Corp.
Sub. Notes
6.25% due 05/15/16................... 33,000 26,775
Residential Capital LLC
Company Guar. Notes
8.50% due 04/17/13(2)................ 60,000 29,100
--------
59,499
--------
Market
Principal Value
Security Description Amount (Note 3)
-------------------------------------------------------------------
Food-Misc. -- 0.1%
Kellogg Co.
Senior Notes
4.25% due 03/06/13............................ $40,000 $ 39,876
Kraft Foods, Inc.
Senior Notes
6.13% due 02/01/18............................ 90,000 89,943
--------
129,819
--------
Funeral Services & Related Items -- 0.0%
Service Corp. International
Senior Notes
6.75% due 04/01/16............................ 30,000 29,025
--------
Gambling (Non-Hotel) -- 0.0%
Downstream Development Authority of the Quapaw
Tribe of Oklahoma
Senior Notes
12.00% due 10/15/15*.......................... 25,000 19,750
--------
Home Decoration Products -- 0.1%
Newell Rubbermaid, Inc.
Senior Notes
5.50% due 04/15/13............................ 80,000 80,438
--------
Home Furnishings -- 0.0%
Simmons Co.
Company Guar. Notes
7.88% due 01/15/14............................ 25,000 20,500
Simmons Co.
Senior Disc. Notes
10.00% due 12/15/14(2)........................ 21,000 13,545
--------
34,045
--------
Hotel/Motel -- 0.0%
Starwood Hotels & Resorts Worldwide, Inc.
Senior Notes
6.25% due 02/15/13............................ 45,000 44,944
--------
Independent Power Producer -- 0.1%
NRG Energy, Inc.
Company Guar. Notes
7.38% due 02/01/16............................ 90,000 88,200
--------
Industrial Automated/Robotic -- 0.1%
Rockwell Automation, Inc.
Debentures
5.65% due 12/01/17............................ 19,000 19,995
Rockwell Automation, Inc.
Debentures
6.25% due 12/01/37............................ 77,000 78,996
--------
98,991
--------
Insurance Brokers -- 0.1%
Marsh & McLennan Cos., Inc.
Senior Notes
5.15% due 09/15/10............................ 60,000 59,862
Marsh & McLennan Cos., Inc.
Senior Notes
7.13% due 06/15/09............................ 40,000 40,719
--------
100,581
--------
46
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------------
CORPORATE BONDS & NOTES (continued)
Insurance-Life/Health -- 0.3%
Americo Life, Inc.
Notes
7.88% due 05/01/13*........................ $ 134,000 $ 139,791
Cigna Corp
Senior Notes
6.35% due 03/15/18......................... 80,000 81,190
Lincoln National Corp.
Senior Notes
5.65% due 08/27/12......................... 58,000 59,137
Monumental Global Funding II
Notes
5.65% due 07/14/11*........................ 66,000 69,144
---------
349,262
---------
Insurance-Property/Casualty -- 0.0%
The Travelers Cos., Inc.
Senior Notes
6.25% due 06/15/37......................... 38,000 35,222
W.R. Berkley Corp.
Senior Sub. Notes
6.25% due 02/15/37......................... 3,000 2,667
---------
37,889
---------
Investment Management/Advisor Services -- 0.1%
LVB Acquisition Merger Sub, Inc.
Senior Notes
10.38% due 10/15/17*....................... 40,000 41,500
LVB Acquisition Merger Sub, Inc.
Senior Sub. Notes
11.63% due 10/15/17*....................... 50,000 50,000
---------
91,500
---------
Medical-Drugs -- 0.3%
Abbott Laboratories
Senior Notes
6.15% due 11/30/37......................... 8,000 8,266
American Home Products Corp.
Senior Notes
6.95% due 03/15/11......................... 123,000 132,954
Schering-Plough Corp.
Senior Notes
6.55% due 09/15/37......................... 57,000 54,893
Wyeth
Bonds
5.50% due 02/01/14......................... 126,000 130,512
---------
326,625
---------
Medical-HMO -- 0.0%
UnitedHealth Group, Inc.
Senior Notes
6.88% due 02/15/38......................... 37,000 35,352
---------
Medical-Hospitals -- 0.2%
Community Health Systems, Inc.
Company Guar. Notes
8.88% due 07/15/15......................... 80,000 80,300
HCA, Inc.
Senior Notes
6.25% due 02/15/13......................... 55,000 47,850
Market
Principal Value
Security Description Amount (Note 3)
---------------------------------------------------------
Medical-Hospitals (continued)
HCA, Inc.
Senior Notes
9.13% due 11/15/14.................. $ 25,000 $ 25,750
HCA, Inc.
Senior Notes
9.25% due 11/15/16.................. 140,000 145,250
--------
299,150
--------
Metal Processors & Fabrication -- 0.1%
Commercial Metals Co.
Senior Notes
6.50% due 07/15/17.................. 87,000 89,864
Timken Co.
Notes
5.75% due 02/15/10.................. 96,000 99,394
--------
189,258
--------
Metal-Aluminum -- 0.2%
Alcoa, Inc.
Senior Notes
6.00% due 01/15/12.................. 60,000 62,294
Alcoa, Inc.
Senior Notes
6.50% due 06/15/18.................. 141,000 147,069
--------
209,363
--------
Metal-Diversified -- 0.0%
Freeport-McMoRan Copper & Gold, Inc.
Senior Notes
8.38% due 04/01/17.................. 40,000 42,450
Noranda Aluminium Acquisition Corp.
Senior Notes
8.74% due 05/15/15*................. 25,000 19,625
--------
62,075
--------
Multimedia -- 0.5%
Belo Corp.
Senior Notes
6.75% due 05/30/13.................. 60,000 57,641
Cox Enterprises, Inc.
Notes
7.88% due 09/15/10*................. 205,000 220,233
News America, Inc.
Company Guar. Bonds
7.30% due 04/30/28.................. 80,000 84,781
Time Warner Cos, Inc.
Company Guaranteed Notes
7.25% due 10/15/17.................. 71,000 73,514
Time Warner Entertainment Co. LP
Senior Notes
8.38% due 07/15/33.................. 99,000 111,393
Viacom, Inc.
Senior Notes
6.88% due 04/30/36.................. 50,000 48,148
--------
595,710
--------
47
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market
Principal Value
Security Description Amount (Note 3)
-----------------------------------------------------------------
CORPORATE BONDS & NOTES (continued)
Non-Hazardous Waste Disposal -- 0.0%
Waste Management, Inc.
Company Guar. Notes
6.88% due 05/15/09......................... $ 56,000 $ 57,449
--------
Office Automation & Equipment -- 0.2%
IKON Office Solutions, Inc.
Senior Notes
7.75% due 09/15/15......................... 40,000 38,000
Pitney Bowes, Inc.
Senior Notes
5.25% due 01/15/37......................... 194,000 192,005
Pitney Bowes, Inc.
Senior Notes
5.75% due 09/15/17......................... 85,000 86,484
--------
316,489
--------
Oil Companies-Exploration & Production -- 0.2%
Chesapeake Energy Corp.
Company Guar. Notes
7.50% due 09/15/13......................... 175,000 180,250
Hilcorp Energy I LP
Senior Notes
7.75% due 11/01/15*........................ 50,000 46,875
Sabine Pass LNG LP
Sec. Notes
7.50% due 11/30/16......................... 75,000 72,375
--------
299,500
--------
Oil Companies-Integrated -- 0.1%
Hess Corp.
Bonds
7.88% due 10/01/29......................... 80,000 94,939
Marathon Oil Corp.
Senior Notes
5.90% due 03/15/18......................... 40,000 40,208
--------
135,147
--------
Oil Refining & Marketing -- 0.1%
The Premcor Refining Group, Inc.
Company Guar. Notes
6.75% due 05/01/14......................... 180,000 188,935
--------
Oil-Field Services -- 0.0%
Allis-Chalmers Energy, Inc.
Company Guar. Notes
9.00% due 01/15/14......................... 15,000 13,650
--------
Paper & Related Products -- 0.1%
Bowater, Inc.
Senior Notes
6.50% due 06/15/13......................... 75,000 49,500
Georgia-Pacific Corp.
Company Guar. Notes
7.00% due 01/15/15*........................ 30,000 28,125
Georgia-Pacific Corp.
Company Guar. Notes
7.13% due 01/15/17*........................ 10,000 9,250
--------
86,875
--------
Market
Principal Value
Security Description Amount (Note 3)
----------------------------------------------------------
Physicians Practice Management -- 0.0%
US Oncology, Inc.
Senior Sub. Notes
10.75% due 08/15/14.................. $ 55,000 $ 54,313
--------
Pipelines -- 0.4%
CenterPoint Energy Resources Corp.
Senior Notes
7.75% due 02/15/11................... 130,000 140,443
Copano Energy LLC
Company Guar. Notes
8.13% due 03/01/16................... 95,000 98,325
Duke Energy Field Services LLC
Senior Notes
6.88% due 02/01/11................... 60,000 63,383
Dynegy-Roseton Danskammer
Pass Through Certs.
Series B
7.67% due 11/08/16................... 45,000 45,085
Panhandle Eastern Pipeline Co.
Senior Notes
6.20% due 11/01/17................... 56,000 54,890
Williams Cos., Inc.
Senior Notes
7.88% due 09/01/21................... 90,000 97,538
--------
499,664
--------
Publishing-Periodicals -- 0.0%
Dex Media West LLC
Senior Notes
8.50% due 08/15/10................... 20,000 19,450
The Reader's Digest Association, Inc.
Senior Sub. Notes
9.00% due 02/15/17*.................. 25,000 16,688
--------
36,138
--------
Quarrying -- 0.1%
Vulcan Materials Co.
Senior Notes
5.60% due 11/30/12................... 90,000 91,429
--------
Radio -- 0.1%
Chancellor Media Corp.
Company Guar. Notes
8.00% due 11/01/08................... 182,000 187,833
--------
Real Estate Investment Trusts -- 0.3%
AvalonBay Communities, Inc.
Senior Notes
5.75% due 09/15/16................... 110,000 99,383
Health Care Property Investors, Inc.
Senior Notes
5.65% due 12/15/13................... 100,000 89,207
Liberty Property LP
Senior Notes
5.63% due 10/01/17................... 45,000 42,738
PPF Funding, Inc.
Bonds
5.35% due 04/15/12*.................. 60,000 58,697
48
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------
CORPORATE BONDS & NOTES (continued)
Real Estate Investment Trusts (continued)
Reckson Operating Partnership LP
Senior Notes
6.00% due 03/31/16.................... $ 35,000 $ 29,941
Simon Property Group LP
Senior Notes
5.38% due 08/28/08.................... 40,000 40,038
Vornado Realty LP
Senior Notes
4.50% due 08/15/09.................... 60,000 58,764
--------
418,768
--------
Recycling -- 0.0%
Aleris International, Inc.
Company Guar. Notes
9.00% due 12/15/14.................... 45,000 32,850
Aleris International, Inc.
Company Guar. Notes
10.00% due 12/15/16................... 20,000 12,700
--------
45,550
--------
Rental Auto/Equipment -- 0.2%
ERAC USA Finance Co.
Company Guar. Notes
7.00% due 10/15/37*................... 90,000 73,986
ERAC USA Finance Co.
Company Guar. Notes
7.35% due 06/15/08*................... 150,000 151,057
United Rentals North America, Inc.
Senior Sub. Notes
7.75% due 11/15/13.................... 40,000 32,600
--------
257,643
--------
Research & Development -- 0.0%
Alion Science and Technology Corp.
Company Guar. Notes
10.25% due 02/01/15................... 55,000 31,075
--------
Retail-Discount -- 0.1%
Target Corp.
Senior Notes
7.00% due 01/15/38.................... 72,000 74,006
--------
Retail-Drug Store -- 0.2%
CVS Caremark Corp.
Senior Notes
6.25% due 06/01/27.................... 54,000 53,815
CVS Caremark Corp.
Pass Through Certs.
6.94% due 01/10/30*................... 58,830 62,204
CVS Lease Pass Through Trust
Pass Through Certs.
6.04% due 12/10/28*................... 116,632 111,109
--------
227,128
--------
Retail-Restaurants -- 0.1%
McDonald's Corp.
Senior Notes
6.30% due 03/01/38.................... 70,000 71,617
Market
Principal Value
Security Description Amount (Note 3)
--------------------------------------------------------------
Retail-Restaurants (continued)
NPC International, Inc.
Company Guar. Notes
9.50% due 05/01/14....................... $ 45,000 $ 40,725
--------
112,342
--------
Savings & Loans/Thrifts -- 0.5%
Independence Community Bank Corp.
Sub. Notes
3.50% due 06/20/13(4).................... 64,000 63,616
Sovereign Bancorp, Inc.
Senior Notes
4.80% due 09/01/10....................... 206,000 203,798
Washington Mutual Bank
Sub. Notes
5.50% due 01/15/13....................... 138,000 109,710
Washington Mutual Preferred Funding III
Jr. Sub. Bonds
6.90% due 06/15/12*(4)................... 100,000 56,000
Washington Mutual, Inc.
Senior Notes
5.50% due 08/24/11....................... 75,000 64,500
Western Financial Bank
Senior Debentures
9.63% due 05/15/12....................... 126,000 133,622
--------
631,246
--------
Special Purpose Entities -- 0.7%
BAE Systems Holdings, Inc.
Company Guar. Bonds
5.20% due 08/15/15*...................... 175,000 177,353
Capital One Capital IV
Company Guar. Bonds
6.75% due 02/17/32(4).................... 65,000 46,414
Chukchansi Economic Development Authority
Senior Notes
8.00% due 11/15/13*...................... 45,000 40,500
Consolidated Communications
Illinois/Texas Holdings, Inc.
Senior Notes
9.75% due 04/01/12....................... 159,000 166,751
Goldman Sachs Capital III
Company Guar. Bonds
3.85% due 09/01/12(1)(7)................. 97,000 61,110
Hawker Beechcraft Acquisition Co.
LLC/Hawker Beechcraft Notes Co.
Senior Notes
8.88% due 04/01/15....................... 10,000 10,225
Hawker Beechcraft Acquisition Co.
LLC/Hawker Beechcraft Notes Co.
Senior Sub. Notes
9.75% due 04/01/17....................... 25,000 24,875
Hexion US Finance Corp.
Company Guar. Notes
9.75% due 11/15/14....................... 20,000 21,450
KAR Holdings, Inc.
Senior Notes
7.24% due 05/01/14(1).................... 25,000 20,625
49
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market
Principal Value
Security Description Amount (Note 3)
-------------------------------------------------------
CORPORATE BONDS & NOTES (continued)
Special Purpose Entities (continued)
Norbord Delaware GP I
Company Guar. Notes
6.45% due 02/15/17*............... $ 49,000 $ 39,371
Pricoa Global Funding I
Notes
5.30% due 09/27/13*............... 110,000 116,342
Principal Life Global Funding I
Sec. Notes
5.25% due 01/15/13*............... 100,000 101,947
Snoqualmie Entertainment Authority
Sec. Notes
9.13% due 02/01/15*............... 45,000 38,475
--------
865,438
--------
Steel-Producers -- 0.2%
International Steel Group, Inc.
Senior Notes
6.50% due 04/15/14................ 130,000 133,844
Reliance Steel & Aluminum Co.
Company Guar. Notes
6.85% due 11/15/36................ 60,000 57,184
Ryerson, Inc.
Senior Sec. Notes
10.61% due 11/01/14*(1)........... 50,000 45,000
United States Steel Corp.
Senior Notes
7.00% due 02/01/18................ 45,000 43,956
--------
279,984
--------
Telecom Services -- 0.2%
Bellsouth Telecommunications, Inc.
Debentures
7.00% due 12/01/95................ 174,000 170,739
Qwest Corp.
Senior Notes
7.50% due 10/01/14................ 65,000 63,375
--------
234,114
--------
Telephone-Integrated -- 0.5%
AT&T Corp.
Senior Notes
7.30% due 11/15/11................ 63,000 68,237
BellSouth Corp.
Senior Notes
6.00% due 10/15/11................ 200,000 209,244
Cincinnati Bell, Inc.
Company Guar. Notes
7.00% due 02/15/15................ 25,000 22,625
Citizens Communications Co.
Senior Notes
7.13% due 03/15/19................ 25,000 21,875
GTE Northwest, Inc.
Debentures
5.55% due 10/15/08................ 70,000 70,611
Pacific Bell Telephone Co.
Company Guar. Notes
7.13% due 03/15/26................ 80,000 82,811
Market
Principal Value
Security Description Amount (Note 3)
-------------------------------------------------------------
Telephone-Integrated (continued)
Sprint Capital Corp.
Company Guar. Notes
6.90% due 05/01/19.................. $ 120,000 $ 94,500
Verizon New York, Inc.
Debentures
6.88% due 04/01/12.................. 102,000 107,274
-----------
677,177
-----------
Television -- 0.0%
ION Media Networks, Inc.
Sec. Senior Notes
10.51% due 01/15/13*(1)............. 55,000 41,250
Young Broadcasting, Inc.
Company Guar. Notes
10.00% due 03/01/11................. 25,000 15,688
-----------
56,938
-----------
Transport-Air Freight -- 0.3%
Atlas Air, Inc.
Pass Through Certs.
Series 1991-1, Class B
7.63% due 01/02/15.................. 366,911 403,602
-----------
Transport-Rail -- 0.1%
BNSF Funding Trust I
Company Guar. Bonds
6.61% due 01/15/26(4)............... 130,000 118,087
CSX Corp.
Senior Notes
6.25% due 03/15/18.................. 59,000 58,226
-----------
176,313
-----------
Transport-Services -- 0.1%
PHI, Inc.
Company Guar. Notes
7.13% due 04/15/13.................. 75,000 68,813
-----------
Travel Service -- 0.0%
Travelport LLC
Company Guar. Notes
7.70% due 09/01/14(1)............... 25,000 20,250
-----------
Total Corporate Bonds & Notes
(cost $16,804,153).................. 16,792,433
-----------
FOREIGN CORPORATE BONDS & NOTES -- 3.2%
Banks-Commercial -- 0.2%
Banco Continental de Panama SA
Notes
6.63% due 12/01/10*................. 35,000 35,700
Barclays Bank PLC
Jr. Sub. Notes
7.43% due 12/15/17*(4).............. 70,000 63,286
BOI Capital Funding
Bank Guar. Bonds
6.11% due 02/04/16*(4).............. 50,000 38,057
Caisse Nationale des Caisses
d'Epargne et de Prevoyance
Notes
3.86% due 12/30/09(1)(7)............ 109,000 63,833
50
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market
Principal Value
Security Description Amount (Note 3)
---------------------------------------------------------------
FOREIGN CORPORATE BONDS & NOTES (continued)
Banks-Commercial (continued)
Royal Bank of Scotland Group PLC
Jr. Sub. Notes
6.99% due 10/05/17*(4)................... $ 100,000 $ 84,890
--------
285,766
--------
Banks-Money Center -- 0.1%
Mizuho Financial Group Cayman, Ltd.
Bank Guar. Bonds
8.38% due 04/27/09(7).................... 145,000 144,162
--------
Beverages-Wine/Spirits -- 0.1%
Diageo Capital PLC
Company Guar. Notes
5.75% due 10/23/17....................... 40,000 40,965
Diageo Finance BV
Company Guar. Notes
3.88% due 04/01/11....................... 125,000 125,437
--------
166,402
--------
Broadcast Services/Program -- 0.1%
Grupo Televisa SA
Senior Notes
6.63% due 03/18/25....................... 139,000 138,882
--------
Cellular Telecom -- 0.1%
America Movil SAB de CV
Company Guar. Bonds
5.63% due 11/15/17....................... 70,000 69,203
--------
Cruise Lines -- 0.1%
Royal Caribbean Cruises, Ltd.
Senior Notes
7.00% due 06/15/13....................... 70,000 65,459
--------
Diversified Manufacturing Operations -- 0.1%
Bombardier, Inc.
Senior Notes
8.00% due 11/15/14*...................... 25,000 25,750
Siemens Financieringsmaatschappij NV
Company Guar. Bonds
6.13% due 08/17/26*...................... 11,000 10,741
Tyco International Group SA
Company Guar. Notes
6.00% due 11/15/13....................... 120,000 120,500
--------
156,991
--------
Diversified Operations -- 0.1%
Hutchison Whampoa Finance, Ltd.
Company Guar. Notes
7.50% due 08/01/27*...................... 140,000 140,219
--------
Electric-Integrated -- 0.1%
Empresa Nacional de Electricidad SA
Bonds
7.33% due 02/01/37....................... 84,000 86,788
Enel Finance International SA
Company Guar. Notes
6.25% due 09/15/17*...................... 30,000 31,125
--------
117,913
--------
Market
Principal Value
Security Description Amount (Note 3)
-----------------------------------------------------------------
Electronic Components-Misc. -- 0.0%
NXP BV/NXP Funding LLC
Company Guar. Notes
9.50% due 10/15/15......................... $ 10,000 $ 8,225
--------
Food-Retail -- 0.1%
Delhaize Group SA
Senior Notes
6.50% due 06/15/17......................... 90,000 92,943
--------
Gas-Distribution -- 0.1%
Nakilat, Inc.
Sec. Notes
6.07% due 12/31/33*........................ 85,000 77,240
--------
Insurance-Multi-line -- 0.3%
Aegon NV
Sub. Bonds
4.21% due 07/15/14(1)(7)................... 156,000 87,516
AXA SA
Sub. Notes
6.38% due 12/14/36*(4)..................... 85,000 68,516
ING Groep NV
Bonds
5.78% due 12/08/15(4)...................... 225,000 191,694
--------
347,726
--------
Investment Companies -- 0.0%
Xstrata Finance Canada, Ltd.
Company Guar. Notes
6.90% due 11/15/37*........................ 40,000 38,662
--------
Medical-Drugs -- 0.1%
Angiotech Pharmaceuticals, Inc.
Company Guar. Notes
6.83% due 12/01/13(1)...................... 15,000 11,475
Angiotech Pharmaceuticals, Inc.
Company Guar. Notes
7.75% due 04/01/14......................... 55,000 33,550
AstraZeneca PLC
Senior Notes
5.90% due 09/15/17......................... 35,000 36,997
Elan Finance PLC
Company Guar. Bonds
7.75% due 11/15/11......................... 40,000 37,200
--------
119,222
--------
Metal-Aluminum -- 0.1%
Alcan, Inc.
Notes
6.13% due 12/15/33......................... 75,000 71,680
--------
Metal-Diversified -- 0.1%
Inco, Ltd.
Bonds
7.20% due 09/15/32......................... 71,000 70,352
--------
Oil Companies-Exploration & Production -- 0.0%
OPTI Canada, Inc.
Senior Sec. Notes
7.88% due 12/15/14......................... 50,000 48,875
--------
51
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market
Principal Value
Security Description Amount (Note 3)
---------------------------------------------------------------
FOREIGN CORPORATE BONDS & NOTES (continued)
Oil-Field Services -- 0.0%
Weatherford International, Ltd.
Senior Notes
7.00% due 03/15/38....................... $ 30,000 $ 30,455
--------
Paper & Related Products -- 0.0%
Abitibi-Consolidated, Inc.
Notes
8.55% due 08/01/10....................... 45,000 25,875
--------
Pipelines -- 0.1%
Enbridge, Inc.
Bonds
5.80% due 06/15/14....................... 183,000 185,547
--------
Printing-Commercial -- 0.0%
Quebecor World Capital Corp.
Senior Notes
8.75% due 03/15/16*+(8)(9)............... 30,000 14,250
--------
Real Estate Operations & Development -- 0.1%
Brascan Corp.
Notes
8.13% due 12/15/08....................... 157,000 161,211
--------
Satellite Telecom -- 0.0%
Intelsat Intermediate Holding Co., Ltd.
Senior Disc. Notes
9.25% due 02/01/15(2).................... 20,000 17,000
--------
Special Purpose Entities -- 0.6%
Aries Vermoegensverwaltungs GmbH
Bonds
9.60% due 10/25/14....................... 250,000 327,580
Hybrid Capital Funding I LP
Sub. Notes
8.00% due 06/30/11(7).................... 286,000 194,480
Rio Tinto Finance USA, Ltd.
Notes
2.63% due 09/30/08....................... 55,000 54,605
SMFG Preferred Capital, Ltd.
Sub. Bonds
6.08% due 01/25/17*(4)................... 121,000 94,864
SovRisc BV
Notes
4.63% due 10/31/08*...................... 133,000 135,074
--------
806,603
--------
Telecom Services -- 0.2%
TELUS Corp.
Notes
8.00% due 06/01/11....................... 238,000 258,846
--------
Telephone-Integrated -- 0.2%
British Telecommunications PLC
Senior Notes
5.15% due 01/15/13....................... 59,000 58,142
British Telecommunications PLC
Bonds
8.63% due 12/15/30....................... 71,000 88,180
Market
Principal Value
Security Description Amount (Note 3)
----------------------------------------------------------
Telephone-Integrated (continued)
Telecom Italia Capital SA
Company Guar. Bonds
6.20% due 07/18/11................ $ 115,000 $ 114,086
----------
260,408
----------
Transport-Marine -- 0.1%
DP World, Ltd.
Bonds
6.85% due 07/02/37*............... 121,000 103,185
----------
Transport-Rail -- 0.1%
Canadian National Railway Co.
Notes
6.38% due 10/15/11................ 130,000 140,264
----------
Total Foreign Corporate Bonds & Notes
(cost $4,874,914)................. 4,163,566
----------
FOREIGN GOVERNMENT AGENCIES -- 0.7%
Sovereign -- 0.7%
Federal Republic of Brazil
Bonds
10.50% due 07/14/14............... 205,000 260,350
Republic of Argentina
Bonds
3.09% due 08/03/12(1)............. 230,000 122,475
Republic of Argentina
Notes
8.28% due 12/31/33................ 35,579 29,175
Republic of Turkey
Senior Notes
11.88% due 01/15/30............... 180,000 265,725
Republic of Venezuela
Notes
8.50% due 10/08/14................ 100,000 92,750
Republic of Venezuela
Bonds
9.25% due 09/15/27................ 100,000 95,000
----------
Total Foreign Government Agencies
(cost $868,543)................... 865,475
----------
U.S. GOVERNMENT AGENCIES -- 10.4%
Federal Home Loan Mtg. Corp. -- 6.2%
4.50% due 01/15/34................. 620,000 603,954
5.00% due 11/15/28................. 304,000 310,867
5.00% due 09/15/31................. 390,000 393,599
5.00% due 05/01/34................. 792,412 786,370
5.00% due 06/01/34................. 755,318 749,560
5.00% due 10/15/34................. 615,000 598,030
5.00% due 07/01/35................. 102,194 101,350
5.00% due 10/01/35................. 544,549 540,049
5.00% due 11/01/35................. 344,390 341,544
5.00% due 11/01/36................. 32,215 31,932
5.50% due 07/01/34................. 486,879 492,865
5.81% due 01/01/37(1).............. 652,397 661,397
5.96% due 10/01/36(1).............. 565,806 576,198
6.00% due 12/01/33................. 88,586 91,400
6.00% due 10/01/37................. 374,914 384,804
6.50% due 03/01/36................. 261,142 271,124
52
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market
Principal Value
Security Description Amount (Note 3)
---------------------------------------------------------------
U.S. GOVERNMENT AGENCIES (continued)
Federal Home Loan Mtg. Corp. (continued)
6.50% due 05/01/36................... $ 8,102 $ 8,411
7.00% due 04/01/32................... 143,171 151,571
Federal Home Loan Mtg. Corp.
REMIC Series 3312, Class LB
5.50% due 11/15/25(3)................ 650,000 676,867
Series 3349, Class HB
5.50 due 06/15/31(3)................. 232,000 238,362
------------
8,010,254
------------
Federal National Mtg. Assoc. -- 3.5%
5.00% due 08/01/18.................... 157,456 159,688
5.00% due 11/25/30.................... 385,000 387,788
5.00% due 10/01/35.................... 424,222 420,493
5.00% due 06/01/37.................... 332,629 329,481
5.00% due 07/01/37.................... 126,789 125,589
5.50% due 11/01/22.................... 273,555 279,489
5.50% due 12/01/33.................... 894,561 905,969
5.50% due 02/01/36(1)................. 290,513 296,514
5.50% due 11/01/36.................... 273,735 276,664
6.00% due 12/01/33.................... 81,070 83,469
6.00% due 11/01/36.................... 575,900 584,713
6.50% due 09/01/32.................... 256,136 267,013
6.50% due 07/01/36.................... 108,723 112,704
6.50% due 10/01/37.................... 354,222 367,167
------------
4,596,741
------------
Government National Mtg. Assoc. -- 0.7%
5.50% due 05/15/33.................... 440,990 450,809
5.50% due 12/15/33.................... 331,048 338,419
7.50% due 01/15/32.................... 117,870 126,990
------------
916,218
------------
Total U.S. Government Agencies
(cost $13,374,947)................... 13,523,213
------------
U.S. GOVERNMENT TREASURIES -- 1.8%
United States Treasury Bonds -- 0.1%
4.75% due 02/15/37................... 110,000 118,310
------------
United States Treasury Notes -- 1.7%
2.75% due 02/28/13................... 45,000 45,619
2.88% due 01/31/13................... 696,000 709,431
3.50% due 02/15/18................... 97,000 97,561
4.25% due 11/15/17................... 450,000 480,129
4.50% due 02/15/16................... 101,000 111,179
4.88% due 06/30/09................... 700,000 728,437
------------
2,172,356
------------
Total U.S. Government Treasuries
(cost $2,281,906).................... 2,290,666
------------
Total Long-Term Investment Securities
(cost $119,896,614).................. 120,632,909
------------
Market
Principal Value
Security Description Amount (Note 3)
-----------------------------------------------------------------------
REPURCHASE AGREEMENT -- 4.9%
Agreement with State Street Bank & Trust
Co., bearing interest at 0.50%, dated
03/31/08, to be repurchased 04/01/08 in
the amount of $1,036,014 and
collateralized by $1,015,000 of United
States Treasury Notes, bearing interest at
5.00% due 07/31/08 and having an
approximate value of $1,056,869............ $ 1,036,000 $ 1,036,000
State Street Bank & Trust Co. Joint
Repurchase Agreement(12)................... 5,342,000 5,342,000
------------
Total Repurchase Agreements
(cost $6,378,000).......................... 6,378,000 6,378,000
------------
TOTAL INVESTMENTS
(cost $126,274,614)(13).................... 97.9% 127,010,909
Other assets less liabilities................. 2.1 2,668,719
----------- ------------
NET ASSETS -- 100.0% $129,679,628
=========== ============
- --------
+ 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, 2008, the
aggregate value of these securities was $4,075,860 representing 3.1% 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, 2008.
(2) "Step-up" security where the rate increases ("steps-up") at a
predetermined rate. Rate shown reflects the increased rate.
(3) Collateralized Mortgage Obligation
(4) Variable Rate Security -- the rate reflected is as of March 31, 2008,
maturity date reflects next reset date.
(5) Commercial Mortgage Backed Security
(6) Variable Rate Security -- the rate reflected is as of March 31, 2008,
maturity date reflects the stated maturity date. .
(7) Perpetual maturity -- maturity date reflects the next call date.
(8) Company has filed Chapter 11 bankruptcy protection.
(9) Bond in default
(10) Illiquid Security
(11) Fair valued security; see Note 3.
(12) See Note 3 for details of Joint Repurchase Agreement.
(13) See Note 7 for cost of investment on a tax basis.
(14) 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, 2008, the Balanced Assets Fund held the following restricted
securities:
Market
Value % of
Acquisition Principal Acquisition Market Per Par Net
Name Date Amount Cost Value Amount Assets
---- ----------- --------- ----------- ------ ------- ------
Southern Energy
7.90% due
7/15/2009..... 01/10/2006 150,000 $0 $0 $0 0.00%
ADR --American Depository Receipt
REMIC --Real Estate Mortgage Investments Conducts
See Notes to Financial Statements
53
SunAmerica International Equity Fund
PORTFOLIO PROFILE -- March 31, 2008 -- (unaudited)
Industry Allocation*
Banks-Commercial.................................. 10.3%
Oil Companies-Integrated.......................... 5.8
Steel-Producers................................... 3.7
Cellular Telecom.................................. 3.6
Electric-Integrated............................... 3.6
Chemicals-Diversified............................. 3.6
Agricultural Chemicals............................ 3.4
Insurance-Multi-line.............................. 3.4
Medical-Drugs..................................... 3.3
Food-Misc......................................... 3.0
Medical Products.................................. 2.9
Food-Retail....................................... 2.8
Machinery-General Industrial...................... 2.8
Diversified Minerals.............................. 2.7
Telephone-Integrated.............................. 2.5
Coal.............................................. 2.4
Building & Construction-Misc...................... 2.1
Index Fund........................................ 2.0
Building-Heavy Construction....................... 2.0
Retail-Apparel/Shoe............................... 1.8
Oil-Field Services................................ 1.6
Dialysis Centers.................................. 1.5
Electric Products-Misc............................ 1.5
Medical-Generic Drugs............................. 1.3
Transport-Marine.................................. 1.3
Medical-Wholesale Drug Distribution............... 1.3
Import/Export..................................... 1.2
Tobacco........................................... 1.2
Insurance-Reinsurance............................. 1.2
Diversified Financial Services.................... 1.2
Miscellaneous Manufacturing....................... 1.1
Gas-Distribution.................................. 1.1
Engineering/R&D Services.......................... 1.1
Audio/Video Products.............................. 1.1
Electronic Components-Misc........................ 1.1
Computer Services................................. 1.1
Insurance-Life/Health............................. 1.1
Satellite Telecom................................. 1.0
Insurance-Property/Casualty....................... 1.0
Enterprise Software/Service....................... 1.0
Machinery-Material Handling....................... 1.0
Toys.............................................. 0.9
Metal-Diversified................................. 0.7
Retail-Jewelry.................................... 0.7
Auto-Cars/Light Trucks............................ 0.6
Repurchase Agreement.............................. 0.6
Non-Ferrous Metals................................ 0.6
Telecom Services.................................. 0.6
Real Estate Operations & Development.............. 0.6
Metal Processors & Fabrication.................... 0.6
Paper & Related Products.......................... 0.4
----
99.0%
====
- --------
* Calculated as a percentage of net assets
Country Allocation*
United Kingdom.................................... 14.3%
Japan............................................. 13.7
Germany........................................... 12.0
Switzerland....................................... 5.9
France............................................ 4.7
Norway............................................ 4.5
Spain............................................. 4.3
Australia......................................... 4.2
South Korea....................................... 3.5
Italy............................................. 3.0
Hong Kong......................................... 2.9
Greece............................................ 2.8
Israel............................................ 2.5
Mexico............................................ 2.4
South Africa...................................... 2.1
Brazil............................................ 2.1
United States..................................... 1.9
Sweden............................................ 1.8
Luxembourg........................................ 1.4
Canada............................................ 1.4
Taiwan............................................ 1.1
Thailand.......................................... 1.1
Russia............................................ 0.9
China............................................. 0.8
Egypt............................................. 0.8
Bermuda........................................... 0.6
India............................................. 0.6
Cayman Islands.................................... 0.6
Indonesia......................................... 0.6
Singapore......................................... 0.5
----
99.0%
====
54
SunAmerica International Equity Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited)
Market
Value
Security Description Shares (Note 3)(1)
------------------------------------------------------------------
COMMON STOCK -- 96.4%
Australia -- 4.2%
BHP Billiton, Ltd............................ 32,500 $ 1,067,800
Boart Longyear Group......................... 738,600 1,239,706
CSL, Ltd..................................... 28,600 964,736
Woolworths, Ltd.............................. 47,680 1,266,897
-----------
4,539,139
-----------
Bermuda -- 0.6%
Nine Dragons Paper Holdings, Ltd............. 461,000 377,968
Peace Mark Holdings, Ltd..................... 294,000 264,881
-----------
642,849
-----------
Brazil -- 2.1%
Banco Do Brasil SA........................... 39,700 522,863
Petroleo Brasileiro SA ADR................... 16,700 1,705,237
-----------
2,228,100
-----------
Canada -- 1.4%
Barrick Gold Corp............................ 15,100 660,225
Suncor Energy, Inc........................... 8,500 821,555
-----------
1,481,780
-----------
Cayman Islands -- 0.6%
Hengan International Group Co., Ltd.......... 184,000 630,868
-----------
China -- 0.8%
China Coal Energy Co.+....................... 498,200 877,625
-----------
Egypt -- 0.8%
Orascom Construction Industries GDR.......... 5,500 823,954
-----------
France -- 4.1%
Alstom....................................... 7,000 1,520,595
Suez SA...................................... 28,600 1,879,027
Vinci SA..................................... 15,200 1,100,720
-----------
4,500,342
-----------
Germany -- 12.0%
Allianz SE................................... 6,400 1,268,999
Bayer AG..................................... 33,300 2,667,254
E.ON AG...................................... 10,800 1,998,418
Fresenius Medical Care AG.................... 33,100 1,664,529
MAN AG....................................... 11,200 1,486,295
Merck KGaA................................... 11,200 1,380,833
Muenchener Rueckversicherungs-Gesellschaft
AG.......................................... 6,600 1,290,169
Stada Arzneimittel AG........................ 16,600 1,208,780
-----------
12,965,277
-----------
Greece -- 2.8%
Alapis Holding Industrial and Commercial SA+. 394,700 1,356,253
National Bank of Greece SA................... 31,759 1,686,158
-----------
3,042,411
-----------
Hong Kong -- 2.9%
Cheung Kong Holdings, Ltd.................... 43,945 632,236
China Mobile Ltd ADR......................... 17,400 1,305,174
Hong Kong & China Gas Co., Ltd............... 413,500 1,249,198
Peregrine Investments Holdings, Ltd.+(2)(3).. 91,000 0
-----------
3,186,608
-----------
Market
Value
Security Description Shares (Note 3)(1)
-----------------------------------------------------------------
India -- 0.6%
Bharti Airtel, Ltd.+..................... 31,200 $ 638,274
-----------
Indonesia -- 0.5%
PT Bakrie and Brothers Tbk+.............. 10,059,500 561,563
-----------
Israel -- 2.5%
Israel Chemicals, Ltd.................... 86,300 1,207,596
Teva Pharmaceutical Industries, Ltd. ADR. 31,500 1,454,985
-----------
2,662,581
-----------
Italy -- 3.0%
Saipem SpA............................... 44,000 1,779,153
UniCredito Italiano SpA.................. 225,100 1,504,784
-----------
3,283,937
-----------
Japan -- 13.7%
Aioi Insurance Co., Ltd.................. 187,000 1,052,574
Japan Steel Works, Ltd................... 60,000 1,042,801
Japan Tobacco, Inc....................... 266 1,333,704
JFE Holdings, Inc........................ 19,300 869,772
Kawasaki Kisen Kaisha, Ltd............... 92,000 911,111
Marubeni Corp............................ 184,000 1,367,455
Matsushita Electric Industrial Co., Ltd.. 57,000 1,238,509
Mitsui Matsushima Co., Ltd............... 399,000 866,924
Nihon Nohyaku Co., Ltd................... 106,000 991,430
Nintendo Co., Ltd........................ 1,800 932,466
Sumitomo Metal Mining Co., Ltd........... 54,000 1,012,198
Sumitomo Mitsui Financial Group, Inc..... 128 845,145
Tokyo Steel Manufacturing Co., Ltd....... 53,700 740,992
Toyo Tanso Co., Ltd...................... 10,500 985,897
Toyota Motor Corp........................ 13,900 700,517
-----------
14,891,495
-----------
Luxembourg -- 1.4%
ArcelorMittal............................ 18,700 1,531,247
-----------
Mexico -- 2.4%
Axtel SAB de CV+......................... 748,200 1,609,901
Empresas ICA SAB de CV+.................. 173,400 1,034,429
-----------
2,644,330
-----------
Norway -- 4.5%
DnB NOR ASA.............................. 116,900 1,781,687
Statoil ASA.............................. 44,000 1,323,044
Yara International ASA................... 30,500 1,772,659
-----------
4,877,390
-----------
Russia -- 0.9%
Uralkali+................................ 23,800 975,587
Uralkali GDR+............................ 216 8,856
-----------
984,443
-----------
Singapore -- 0.5%
Cosco Corp. Singapore, Ltd............... 192,700 522,245
-----------
South Africa -- 2.1%
Exxaro Resources, Ltd.................... 66,200 903,562
Murray & Roberts Holdings, Ltd........... 120,300 1,417,263
-----------
2,320,825
-----------
55
SunAmerica International Equity Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market
Value
Security Description Shares (Note 3)(1)
------------------------------------------------------------------
COMMON STOCK (continued)
South Korea -- 3.5%
Hyundai Steel Co.+....................... 12,100 $ 848,629
LG Electronics, Inc...................... 12,700 1,632,170
Shinhan Financial Group Co., Ltd......... 24,400 1,289,266
------------
3,770,065
------------
Spain -- 4.3%
Banco Santander Central Hispano SA....... 114,100 2,273,307
Indra Sistemas SA........................ 42,100 1,212,327
Telefonica SA............................ 39,300 1,129,216
------------
4,614,850
------------
Sweden -- 1.8%
Hennes & Mauritz AB, Class B............. 31,500 1,937,947
------------
Switzerland -- 5.9%
Compagnie Financiere Richemont SA........ 12,500 701,960
Nestle SA................................ 6,500 3,249,430
Zurich Financial Services AG............. 7,600 2,395,609
------------
6,346,999
------------
Taiwan -- 1.1%
Hon Hai Precision Industry Co., Ltd. GDR. 108,000 1,215,000
------------
Thailand -- 1.1%
Bangkok Bank PCL......................... 276,000 1,187,225
------------
United Kingdom -- 14.3%
Autonomy Corp PLC+....................... 57,311 1,044,530
BP PLC................................... 241,900 2,449,319
HSBC Holdings PLC........................ 80,000 1,317,593
Inmarsat PLC............................. 123,700 1,090,457
Prudential PLC........................... 87,300 1,152,764
Rio Tinto PLC............................ 7,300 757,938
Smith & Nephew PLC....................... 191,612 2,534,251
Tesco PLC................................ 231,700 1,750,155
Vodafone Group PLC....................... 880,500 2,636,530
Xstrata PLC.............................. 11,700 819,316
------------
15,552,853
------------
United States -- 0.0%
SoftBrands, Inc.+........................ 40 41
------------
Total Common Stock
(cost $100,610,184)..................... 104,462,263
------------
EXCHANGE TRADED FUNDS -- 1.9%
United States -- 1.3%
iShares MSCI Canada Index Fund........... 46,700 1,415,010
France -- 0.6%
streetTRACKS MSCI Europe+................ 3,900 729,365
------------
Total Exchange Traded Funds
(cost $2,101,421)....................... 2,144,375
------------
RIGHTS+ -- 0.1%
Indonesia -- 0.1%
PT Bakrie and Brothers Tbk
Expires 04/25/08
(cost $0)............................... 59,854,025 65,023
------------
Total Long-Term Investment Securities
(cost $102,711,605)..................... 106,671,661
------------
Market
Principal Value
Security Description Amount (Note 3)(1)
------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 0.6%
Agreement with State Street Bank & Trust Co.,
bearing interest at 0.50%, dated 03/31/08, to
be repurchased 04/01/08 in the amount of
$681,009 and collateralized by $600,000 of
United States Treasury Bonds bearing
interest at 5.38% due 02/15/31 and having
an approximate value of $694,853
(cost $681,000)............................... $ 681,000 $ 681,000
------------
TOTAL INVESTMENTS
(cost $103,392,605)(4)........................ 99.0% 107,352,661
Other assets less liabilities.................... 1.0 1,043,892
--------- ------------
NET ASSETS -- 100.0% $108,396,553
========= ============
- --------
+ Non-income producing security
(1) A substantial number of the Fund's holdings were valued using the fair
value procedures at March 31, 2008. At March 31, 2008, the aggregate value
of these securities was $97,767,817 representing 89.8% of net assets. See
Note 3 regarding fair value pricing procedures for foreign equity
securities.
(2) Fair valued security. See Note 3.
(3) Illiquid security
(4) See Note 7 for cost of investments on a tax basis.
ADR --American Depository Receipt
GDR --Global Depository Receipt
See Notes to Financial Statements
56
SunAmerica Value Fund
PORTFOLIO PROFILE -- March 31, 2008 -- (unaudited)
Industry Allocation*
Oil Companies-Integrated.......................... 12.4%
Repurchase Agreement.............................. 7.8
Finance-Investment Banker/Broker.................. 7.1
Electric-Integrated............................... 6.0
Diversified Manufacturing Operations.............. 5.7
Telephone-Integrated.............................. 5.4
Aerospace/Defense................................. 5.2
Medical-Drugs..................................... 5.0
Insurance-Multi-line.............................. 4.2
Food-Misc......................................... 4.2
Investment Management/Advisor Services............ 4.1
Oil-Field Services................................ 3.2
Banks-Super Regional.............................. 2.8
Tobacco........................................... 2.3
Cosmetics & Toiletries............................ 2.3
Brewery........................................... 2.1
Multimedia........................................ 2.0
Banks-Fiduciary................................... 2.0
Medical Products.................................. 2.0
Non-Hazardous Waste Disposal...................... 1.8
Insurance-Property/Casualty....................... 1.8
Chemicals-Diversified............................. 1.4
Metal-Aluminum.................................... 1.3
Retail-Apparel/Shoe............................... 1.3
Metal-Diversified................................. 1.0
----
94.4%
====
- --------
* Calculated as a percentage of net assets
57
SunAmerica Value Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited)
Market
Value
Security Description Shares (Note 3)
------------------------------------------------------------------
COMMON STOCK -- 86.6%
Aerospace/Defense -- 5.2%
Boeing Co................................... 45,400 $ 3,376,398
General Dynamics Corp....................... 31,600 2,634,492
Raytheon Co................................. 44,000 2,842,840
-----------
8,853,730
-----------
Banks-Fiduciary -- 2.0%
The Bank of New York Mellon Corp............ 80,083 3,341,864
-----------
Banks-Super Regional -- 2.8%
Bank of America Corp........................ 125,900 4,772,869
-----------
Brewery -- 2.1%
Anheuser-Busch Cos., Inc.................... 75,200 3,568,240
-----------
Chemicals-Diversified -- 1.4%
E.I. du Pont de Nemours & Co................ 50,100 2,342,676
-----------
Cosmetics & Toiletries -- 2.3%
Procter & Gamble Co......................... 55,000 3,853,850
-----------
Diversified Manufacturing Operations -- 5.7%
3M Co.+..................................... 37,800 2,991,870
General Electric Co......................... 181,800 6,728,418
-----------
9,720,288
-----------
Electric-Integrated -- 6.0%
FPL Group, Inc.............................. 41,500 2,603,710
Public Service Enterprise Group, Inc........ 61,600 2,475,704
Southern Co................................. 73,700 2,624,457
Xcel Energy, Inc............................ 128,200 2,557,590
-----------
10,261,461
-----------
Finance-Investment Banker/Broker -- 7.1%
Citigroup, Inc.............................. 161,100 3,450,762
JPMorgan Chase & Co......................... 121,400 5,214,130
Morgan Stanley.............................. 77,300 3,532,610
-----------
12,197,502
-----------
Food-Misc. -- 4.2%
General Mills, Inc.......................... 56,300 3,371,244
Kraft Foods, Inc., Class A.................. 121,857 3,778,785
-----------
7,150,029
-----------
Insurance-Multi-line -- 4.2%
Hartford Financial Services Group, Inc...... 45,800 3,470,266
MetLife, Inc................................ 61,300 3,693,938
-----------
7,164,204
-----------
Insurance-Property/Casualty -- 1.8%
Chubb Corp.................................. 62,500 3,092,500
-----------
Investment Management/Advisor Services -- 4.1%
Ameriprise Financial, Inc................... 65,300 3,385,805
Invesco, Ltd................................ 147,100 3,583,356
-----------
6,969,161
-----------
Medical Products -- 2.0%
Johnson & Johnson........................... 51,400 3,334,318
-----------
Shares/ Market
Principal Value
Security Description Amount (Note 3)
-----------------------------------------------------------------
Medical-Drugs -- 5.0%
Abbott Laboratories.................. 46,600 $ 2,569,990
Merck & Co., Inc..................... 59,800 2,269,410
Pfizer, Inc.......................... 178,100 3,727,633
------------
8,567,033
------------
Metal-Aluminum -- 1.3%
Alcoa, Inc........................... 61,900 2,232,114
------------
Metal-Diversified -- 1.0%
Freeport-McMoRan Copper & Gold, Inc.. 18,300 1,760,826
------------
Multimedia -- 2.0%
News Corp., Class A.................. 185,800 3,483,750
------------
Non-Hazardous Waste Disposal -- 1.8%
Waste Management, Inc................ 93,100 3,124,436
------------
Oil Companies-Integrated -- 12.4%
Chevron Corp......................... 64,400 5,497,184
ConocoPhillips....................... 68,000 5,182,280
Exxon Mobil Corp..................... 80,900 6,842,522
Marathon Oil Corp.................... 81,400 3,711,840
------------
21,233,826
------------
Oil-Field Services -- 3.2%
BJ Services Co....................... 132,400 3,774,724
Global Industries, Ltd.+............. 104,600 1,683,014
------------
5,457,738
------------
Retail-Apparel/Shoe -- 1.3%
American Eagle Outfitters, Inc....... 124,600 2,181,746
------------
Telephone-Integrated -- 5.4%
AT&T, Inc............................ 161,450 6,183,535
Verizon Communications, Inc.......... 81,300 2,963,385
------------
9,146,920
------------
Tobacco -- 2.3%
Altria Group, Inc.................... 54,000 1,198,800
Philip Morris International, Inc.+... 54,000 2,731,320
------------
3,930,120
------------
Total Long-Term Investment Securities
(cost $147,504,468)................. 147,741,201
------------
REPURCHASE AGREEMENT -- 7.8%
State Street Bank & Trust Co. Joint
Repurchase Agreement(1)
(cost $13,310,000).................. $ 13,310,000 13,310,000
------------
TOTAL INVESTMENTS
(cost $160,814,468)(2).............. 94.4% 161,051,201
Other assets less liabilities.......... 5.6 9,591,319
------------ ------------
NET ASSETS -- 100.0% $170,642,520
============ ============
- --------
+ 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.
See Notes to Financial Statements
58
SunAmerica Disciplined Growth Fund
PORTFOLIO PROFILE -- March 31, 2008 -- (unaudited)
Industry Allocation*
Repurchase Agreement.................. 16.4%
Food-Misc............................. 7.1
Computers............................. 6.4
Electronic Components-Semiconductors.. 4.9
Aerospace/Defense..................... 4.3
Metal-Diversified..................... 4.2
Agricultural Chemicals................ 3.7
Energy-Alternate Sources.............. 3.3
Medical Products...................... 3.3
Medical-Biomedical/Gene............... 2.7
Oil Companies-Exploration & Production 2.6
Oil-Field Services.................... 2.5
Retail-Drug Store..................... 2.2
Electronic Forms...................... 2.2
Food-Retail........................... 2.1
Retail-Discount....................... 2.1
Retail-Apparel/Shoe................... 2.1
Machinery-Farming..................... 2.1
Medical-Generic Drugs................. 2.1
Beverages-Non-alcoholic............... 2.0
Oil Field Machinery & Equipment....... 1.8
Oil Companies-Integrated.............. 1.8
Advanced Materials.................... 1.7
Tobacco............................... 1.7
Diversified Manufacturing Operations.. 1.6
Banks-Fiduciary....................... 1.5
X-Ray Equipment....................... 1.2
Cosmetics & Toiletries................ 1.1
Metal-Aluminum........................ 1.1
Wireless Equipment.................... 1.1
Engineering/R&D Services.............. 1.1
Finance-Investment Banker/Broker...... 1.1
Transport-Marine...................... 1.0
Metal Processors & Fabrication........ 1.0
Electric-Integrated................... 1.0
Commercial Services-Finance........... 1.0
Steel-Producer........................ 1.0
Multimedia............................ 0.8
Chemicals-Specialty................... 0.6
Diversified Minerals.................. 0.5
Footwear & Related Apparel............ 0.5
Hazardous Waste Disposal.............. 0.5
Casino Services....................... 0.5
Cable TV.............................. 0.3
-----
103.8%
=====
- --------
* Calculated as a percentage of net assets
59
SunAmerica Disciplined Growth Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited)
Market
Value
Security Description Shares (Note 3)
--------------------------------------------------------------
COMMON STOCK -- 87.4%
Advanced Materials -- 1.7%
Hexcel Corp.+............................. 54,000 $1,031,940
----------
Aerospace/Defense -- 4.3%
Boeing Co................................. 10,000 743,700
Raytheon Co............................... 29,800 1,925,378
----------
2,669,078
----------
Agricultural Chemicals -- 3.7%
Monsanto Co............................... 6,800 758,200
Potash Corp. of Saskatchewan, Inc......... 10,000 1,552,100
----------
2,310,300
----------
Banks-Fiduciary -- 1.5%
The Bank of New York Mellon Corp.......... 22,500 938,925
----------
Beverages-Non-alcoholic -- 2.0%
PepsiCo, Inc.............................. 17,000 1,227,400
----------
Cable TV -- 0.3%
Comcast Corp., Class A.................... 10,700 206,938
----------
Casino Hotel -- 0.0%
MGM Mirage, Inc.+......................... 368 21,627
----------
Casino Services -- 0.5%
Scientific Games Corp., Class A+.......... 15,000 316,650
----------
Chemicals-Specialty -- 0.6%
Arch Chemicals, Inc....................... 9,000 335,340
----------
Commercial Services-Finance -- 1.0%
Visa, Inc., Class A+...................... 10,000 623,600
----------
Computers -- 6.4%
Apple, Inc.+.............................. 13,300 1,908,550
Research In Motion Ltd.+.................. 18,000 2,020,140
----------
3,928,690
----------
Cosmetics & Toiletries -- 1.1%
Procter & Gamble Co....................... 10,000 700,700
----------
Diversified Manufacturing Operations -- 1.6%
Harsco Corp............................... 18,000 996,840
----------
Diversified Minerals -- 0.5%
Teck Cominco, Ltd., Class B............... 8,000 327,680
----------
Electric-Integrated -- 1.0%
Duke Energy Corp.......................... 36,000 642,600
----------
Electronic Components-Semiconductors -- 4.9%
Intel Corp................................ 85,000 1,800,300
MEMC Electronic Materials, Inc+........... 8,000 567,200
Texas Instruments, Inc.................... 22,500 636,075
----------
3,003,575
----------
Electronic Forms -- 2.2%
Adobe Systems, Inc.+...................... 38,000 1,352,420
----------
Energy-Alternate Sources -- 3.3%
First Solar, Inc.+........................ 3,000 693,420
Sunpower Corp., Class A+.................. 9,700 722,747
Suntech Power Holdings Co., Ltd.
ADR+..................................... 16,000 648,960
----------
2,065,127
----------
Market
Value
Security Description Shares (Note 3)
-----------------------------------------------------------------
Engineering/R&D Services -- 1.1%
ABB, Ltd. ADR............................... 24,000 $ 646,080
----------
Finance-Investment Banker/Broker -- 1.1%
JP Morgan Chase & Co........................ 15,000 644,250
----------
Food-Misc. -- 7.1%
Cal-Maine Foods, Inc........................ 100,000 3,338,000
Kraft Foods, Inc., Class A.................. 34,000 1,054,340
----------
4,392,340
----------
Food-Retail -- 2.1%
Kroger Co................................... 52,000 1,320,800
----------
Footwear & Related Apparel -- 0.5%
Deckers Outdoor Corp.+...................... 3,000 323,460
----------
Hazardous Waste Disposal -- 0.5%
Energy Solutions, Inc....................... 14,000 321,160
----------
Machinery-Farming -- 2.1%
Deere & Co.................................. 16,000 1,287,040
----------
Medical Products -- 3.3%
Baxter International, Inc................... 11,200 647,584
Becton Dickinson & Co....................... 16,000 1,373,600
----------
2,021,184
----------
Medical-Biomedical/Gene -- 2.7%
Genzyme Corp.+.............................. 19,300 1,438,622
Sangamo Biosciences, Inc.+.................. 20,000 203,200
----------
1,641,822
----------
Medical-Generic Drugs -- 2.1%
Teva Pharmaceutical Industries, Ltd.
ADR........................................ 27,800 1,284,082
----------
Metal Processors & Fabrication -- 1.0%
Precision Castparts Corp.................... 6,300 643,104
----------
Metal-Aluminum -- 1.1%
Alcoa, Inc.................................. 19,000 685,140
----------
Metal-Diversified -- 4.2%
Freeport-McMoRan Copper & Gold, Inc......... 27,000 2,597,940
----------
Multimedia -- 0.8%
News Corp., Class A......................... 25,000 468,750
----------
Oil Companies-Exploration & Production -- 2.6%
Apache Corp................................. 6,600 797,412
Devon Energy Corp........................... 8,000 834,640
----------
1,632,052
----------
Oil Companies-Integrated -- 1.8%
Exxon Mobil Corp............................ 12,800 1,082,624
----------
Oil Field Machinery & Equipment -- 1.8%
National-Oilwell Varco, Inc.+............... 19,200 1,120,896
----------
Oil-Field Services -- 2.5%
Schlumberger, Ltd........................... 18,000 1,566,000
----------
Retail-Apparel/Shoe -- 2.1%
Guess ?, Inc................................ 32,000 1,295,040
----------
60
SunAmerica Disciplined Growth Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Shares/ Market
Principal Value
Security Description Amount (Note 3)
----------------------------------------------------------------
COMMON STOCK (continued)
Retail-Discount -- 2.1%
Costco Wholesale Corp.............. 20,000 $ 1,299,400
-----------
Retail-Drug Store -- 2.2%
CVS Caremark Corp.................. 34,000 1,377,340
-----------
Steel-Producer -- 1.0%
Nucor Corp......................... 9,000 609,660
-----------
Tobacco -- 1.7%
Altria Group, Inc.................. 14,000 310,800
Philip Morris International, Inc.+. 14,000 708,120
-----------
1,018,920
-----------
Transport-Marine -- 1.0%
Eagle Bulk Shipping, Inc........... 25,000 644,000
-----------
Wireless Equipment -- 1.1%
QUALCOMM, Inc...................... 16,400 672,400
-----------
X-Ray Equipment -- 1.2%
Hologic, Inc.+..................... 13,000 722,800
-----------
Total Long-Term Investment Securities
(cost $54,012,942)................ 54,017,714
-----------
REPURCHASE AGREEMENT -- 16.4%
State Street Bank & Trust Co.
Joint Repurchase Agreement(1)
(cost $10,105,000)................ $ 10,105,000 10,105,000
-----------
TOTAL INVESTMENTS
(cost $64,117,942)(2)............. 103.8% 64,122,714
Liabilities in excess of other assets (3.8) (2,333,864)
------------ -----------
NET ASSETS -- 100.0% $61,788,850
============ ===========
- --------
+ Non-income producing security
(1) See Note 3 for details for Joint Repurchase Agreement.
(2) See Note 7 for cost of investments on a tax basis.
ADR --American Depository Receipt
See Notes to Financial Statements
61
SunAmerica International Small-Cap Fund
PORTFOLIO PROFILE -- March 31, 2008 -- (unaudited)
Industry Allocation*
Medical-Drugs......................... 3.8%
Auto/Truck Parts & Equipment-Original. 3.6
Machinery-General Industrial.......... 3.2
Chemicals-Diversified................. 3.2
Finance-Other Services................ 3.1
Building & Construction Products-Misc. 2.9
Computers-Integrated Systems.......... 2.6
Electronic Components-Misc............ 2.5
Shipbuilding.......................... 2.1
Appliances............................ 2.0
Steel Pipe & Tube..................... 2.0
Water................................. 1.9
Electric Products-Misc................ 1.9
Machinery-Electrical.................. 1.9
Consulting Services................... 1.9
Gambling (Non-Hotel).................. 1.9
Commercial Services................... 1.8
Rubber-Tires.......................... 1.7
Miscellaneous Manufacturing........... 1.7
Building-Maintance & Services......... 1.6
Food-Misc............................. 1.6
Machinery-Construction & Mining....... 1.6
Finance-Investment Banker/Broker...... 1.5
Machinery-Material Handling........... 1.5
Oil Refining & Marketing.............. 1.4
Oil Field Machinery & Equipment....... 1.4
Industrial Audio & Video Products..... 1.4
Power Converter/Supply Equipment...... 1.3
Medical-Biomedical/Gene............... 1.3
Extended Service Contracts............ 1.3
Aerospace/Defense..................... 1.2
Instruments-Controls.................. 1.2
Chemicals-Specialty................... 1.2
Energy-Alternate Sources.............. 1.1
Security Services..................... 1.0
Retail-Petroleum Products............. 1.0
Internet Infrastructure Software...... 1.0
Direct Marketing...................... 0.9
Rental Auto/Equipment................. 0.9
Advanced Materials.................... 0.9
Transport-Marine...................... 0.9
Applications Software................. 0.8
Diversified Financial Services........ 0.8
Auto-Cars/Light Trucks................ 0.8
Retail-Apparel/Shoe................... 0.7
Computers............................. 0.7
Veterinary Products................... 0.7
Electronic Security Devices........... 0.7
Medical Imaging Systems............... 0.7
Diversified Manufacturing Operations.. 0.7
Medical Products...................... 0.7
Retail-Discount....................... 0.7
Coal.................................. 0.6
Retail-Misc./Diversified.............. 0.6
Retail-Automobile..................... 0.6
Medical-Hospitals..................... 0.6
Beverages-Wine/Spirits................ 0.6
Medical Instruments................... 0.6
Electric-Generation................... 0.5
Agricultural Chemicals................ 0.5
Building-Heavy Construction........... 0.5
Fisheries............................. 0.5
Apparel Manufacturers................. 0.5
Footwear & Related Apparel............ 0.5
Internet Content-Information/News..... 0.5
Time Deposits......................... 0.5
E-Commerce/Services................... 0.4
Medical-Wholesale Drug Distribution... 0.4
Electronic Components-Semiconductors.. 0.4
Transport-Truck....................... 0.4
Retail-Sporting Goods................. 0.4
Diversified Operations................ 0.4
Rubber/Plastic Products............... 0.4
Coatings/Paint........................ 0.4
Agricultural Operations............... 0.4
Batteries/Battery Systems............. 0.4
Travel Services....................... 0.4
Motion Pictures & Services............ 0.4
Printing-Commercial................... 0.3
Beverages-Non-alcoholic............... 0.3
Containers-Paper/Plastic.............. 0.3
Commerce.............................. 0.3
E-Services/Consulting................. 0.3
Finance-Leasing Companies............. 0.3
Retail-Restaurants.................... 0.3
Retail-Consumer Electronics........... 0.3
Oil-Field Services.................... 0.3
Retail-Drug Store..................... 0.3
Decision Support Software............. 0.3
Real Estate Operations & Development.. 0.3
Oil Companies-Exploration & Production 0.3
Retail-Regional Department Stores..... 0.3
Communications Software............... 0.2
Machinery-Print Trade................. 0.2
Banks-Commercial...................... 0.2
Building & Construction-Misc.......... 0.2
Electronic Parts Distribution......... 0.1
Investment Management/Advisor Services 0.1
Metal Processors & Fabrication........ 0.1
Retail-Major Department Stores........ 0.1
Electronic Connectors................. 0.1
Transport-Services.................... 0.1
Recycling............................. 0.1
----
99.0%
====
- --------
* Calculated as a percentage of net assets
62
SunAmerica International Small-Cap Fund
PORTFOLIO PROFILE -- March 31, 2008 -- (unaudited) (continued)
Country Allocation*
Japan......... 24.9%
United Kingdom 17.8
Germany....... 11.4
France........ 5.3
Finland....... 5.2
Spain......... 4.1
Sweden........ 3.4
Denmark....... 3.1
Greece........ 3.0
South Korea... 2.7
Norway........ 2.0
Switzerland... 1.9
China......... 1.7
Bermuda....... 1.6
Cayman Islands 1.6
Belgium....... 1.4
Taiwan........ 1.2
Austria....... 1.2
Indonesia..... 0.8
Singapore..... 0.8
Australia..... 0.8
Netherlands... 0.7
Malaysia...... 0.5
United States. 0.4
Hong Kong..... 0.4
Philippines... 0.4
New Zealand... 0.3
Ireland....... 0.3
Thailand...... 0.1
----
99.0%
====
- --------
* Calculated as a percentage of net assets
63
SunAmerica International Small-Cap Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited)
Market
Value
Security Description Shares (Note 3)(1)
----------------------------------------------------------------------
COMMON STOCK -- 96.7%
Australia -- 0.8%
JB Hi-Fi, Ltd.................................... 10,632 $ 87,744
Tassal Group, Ltd................................ 73,726 154,814
----------
242,558
----------
Austria -- 1.2%
Andritz AG....................................... 6,450 355,398
----------
Belgium -- 1.4%
EVS Broadcast Equipment SA....................... 3,822 410,552
----------
Bermuda -- 1.6%
China Yurun Food Group, Ltd...................... 57,000 72,255
CNPC Hong Kong, Ltd.............................. 170,000 78,518
Global Sources, Ltd.+............................ 6,930 102,911
Huabao International Holdings, Ltd............... 145,000 119,173
IT, Ltd.......................................... 388,000 108,966
----------
481,823
----------
Cayman Islands -- 1.6%
Anta Sports Products, Ltd.+...................... 134,000 142,435
Hidili Industry International Development, Ltd.+. 145,000 190,219
HKR International, Ltd........................... 156,000 106,737
New World Department Store China, Ltd.+.......... 31,000 37,002
----------
476,393
----------
China -- 1.7%
AsiaInfo Holdings, Inc.+......................... 27,600 299,736
BYD Co., Ltd..................................... 27,500 51,087
China BlueChemical, Ltd.......................... 300,000 158,276
----------
509,099
----------
Denmark -- 3.1%
FLSmidth & Co. A/S............................... 5,541 549,594
Genmab A/S+...................................... 3,579 182,058
NeuroSearch A/S+................................. 3,480 200,335
----------
931,987
----------
Finland -- 5.2%
KCI Konecranes Oyj............................... 9,581 369,471
Nokian Renkaat Oyj............................... 11,807 503,842
Oriola-KD Oyj.................................... 39,653 185,701
Poyry Oyj........................................ 9,763 242,583
Ramirent Oyj..................................... 13,771 260,944
----------
1,562,541
----------
France -- 5.3%
Guerbet.......................................... 1,057 207,346
Ingenico SA...................................... 10,890 358,225
Laurent-Perrier.................................. 1,100 173,313
Rubis............................................ 3,641 307,541
Sechilienne SA................................... 4,264 329,951
Virbac SA........................................ 2,320 213,092
----------
1,589,468
----------
Germany -- 9.5%
Bauer AG......................................... 4,684 308,272
ElringKlinger AG................................. 5,751 642,671
Fielmann AG...................................... 3,075 189,007
Rational AG...................................... 1,483 293,600
Market
Value
Security Description Shares (Note 3)(1)
----------------------------------------------------------
Germany (continued)
Symrise AG......................... 10,709 $ 276,406
Vossloh AG......................... 4,097 577,818
Wincor Nixdorf AG.................. 2,410 192,857
Wirecard AG+....................... 22,135 387,693
----------
2,868,324
----------
Greece -- 3.0%
Athens Stock Exchange SA........... 12,090 288,223
Fourlis Holdings SA................ 9,736 318,498
Frigoglass SA...................... 9,509 293,642
----------
900,363
----------
Hong Kong -- 0.4%
China Green Holdings, Ltd.......... 104,000 115,588
Guangzhou Investment Co., Ltd...... 72,000 14,783
----------
130,371
----------
Indonesia -- 0.8%
PT Ciputra Development Tbk......... 1,315,000 79,447
PT United Tractors Tbk............. 124,000 170,131
----------
249,578
----------
Ireland -- 0.3%
Norkom Group PLC+.................. 36,550 83,661
----------
Japan -- 24.9%
Acrodea, Inc.+..................... 13 70,209
Alpha Systems, Inc................. 2,000 62,412
Amano Corp......................... 5,900 60,954
Chugoku Marine Paints, Ltd......... 17,000 119,267
Daiichi Chuo Kisen Kaisha.......... 9,000 64,510
Daiseki Co., Ltd................... 1,700 51,546
Dena Co., Ltd...................... 12 76,899
Digital Garage, Inc.+.............. 50 98,140
Disco Corp......................... 2,100 91,759
Don Quijote Co, Ltd................ 10,700 195,748
en-japan, Inc...................... 27 57,864
EPS Co., Ltd....................... 37 182,069
Exedy Corp......................... 7,100 203,155
FP Corp............................ 4,200 103,097
Fujimi, Inc........................ 4,600 67,164
Glory, Ltd......................... 1,900 41,066
Harmonic Drive Systems, Inc........ 14 46,641
HIS Co., Ltd....................... 7,600 110,217
Hisamitsu Pharmaceutical Co., Inc.. 4,800 174,934
Hitachi Systems & Services, Ltd.... 5,400 118,844
Iriso Electronics Co., Ltd......... 2,300 28,897
Japan Steel Works, Ltd............. 15,000 260,700
Kaga Electronics Co., Ltd.......... 3,400 45,032
Kakaku.com, Inc.................... 22 137,134
Kenedix, Inc....................... 39 43,171
Kito Corp.......................... 22 35,688
Kitz Corp.......................... 7,000 42,261
Koito Manufacturing Co., Ltd....... 10,000 137,660
Kureha Corp........................ 19,000 119,812
Kyoritsu Maintenance Co., Ltd...... 6,200 111,352
Lintec Corp........................ 9,400 134,815
Mani, Inc.......................... 1,200 82,628
64
SunAmerica International Small-Cap Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market
Value
Security Description Shares (Note 3)(1)
----------------------------------------------------------------
COMMON STOCK (continued)
Japan (continued)
MCJ Co., Ltd............................. 71 $ 27,990
Miraca Holdings, Inc..................... 4,100 107,798
Miraial Co., Ltd......................... 1,500 50,922
Mitsubishi UFJ Lease & Finance Co., Ltd.. 2,690 93,983
Modec, Inc............................... 5,100 168,398
Moshi Moshi Hotline, Inc................. 9,400 285,513
Nabtesco Corp............................ 16,000 219,828
Nihon Dempa Kogyo Co., Ltd............... 2,200 61,869
Nishimatsuya Chain Co., Ltd.............. 9,500 114,756
Nissha Printing Co, Ltd.................. 2,100 104,227
NPC, Inc................................. 1,100 63,050
Obic Co, Ltd............................. 430 76,489
Okasan Holdings, Inc..................... 18,000 90,373
Osaka Securities Exchange Co., Ltd....... 22 100,202
Otsuka Corp.............................. 2,600 222,420
Resort Solution Co., Ltd................. 2,000 7,537
Rohto Pharmaceutical Co., Ltd............ 8,000 100,650
Saint Marc Holdings Co., Ltd............. 2,700 92,920
Sankyu, Inc.............................. 23,000 125,284
Sasebo Heavy Industries Co., Ltd......... 23,000 73,136
Sato Corp................................ 4,700 60,419
So-net M3, Inc........................... 22 90,051
Star Micronics Co., Ltd.................. 5,100 70,596
Sugi Pharmacy Co., Ltd................... 3,000 85,287
Sysmex Corp.............................. 4,700 170,805
Taiyo Ink Manufacturing Co., Ltd......... 4,000 95,831
Takeei Corp.............................. 500 18,093
Teikoku Piston Ring Co., Ltd............. 11,100 94,514
Toho Pharmaceutical Co., Ltd............. 5,200 133,507
Toshiba Machine Co., Ltd................. 9,000 55,059
Toyo Tanso Co., Ltd...................... 2,550 239,432
Tsumura & Co............................. 8,100 202,175
Unicharm Petcare Corp.................... 3,200 101,178
Union Tool Co............................ 3,100 116,517
USS Co, Ltd.............................. 2,710 188,729
Vantec Group Holdings Corp............... 18 21,308
Works Applications Co., Ltd.............. 125 183,392
Xebio Co., Ltd........................... 4,700 121,762
Yamaguchi Financial Group, Inc........... 5,000 56,790
----------
7,468,435
----------
Malaysia -- 0.5%
Sarawak Energy Bhd....................... 241,800 159,918
----------
Netherlands -- 0.7%
Smartrac NV+............................. 4,401 212,912
----------
New Zealand -- 0.3%
Nufarm, Ltd.............................. 6,493 102,314
----------
Norway -- 2.0%
Sevan Marine ASA+........................ 32,452 414,502
Songa Offshore ASA+...................... 14,370 192,171
----------
606,673
----------
Philippines -- 0.4%
Pepsi-Cola Products Philippines, Inc.+... 1,635,000 103,729
----------
Market
Value
Security Description Shares (Note 3)(1)
----------------------------------------------------------------
Singapore -- 0.8%
Raffles Medical Group, Ltd................. 206,800 $ 186,678
Swiber Holdings, Ltd.+..................... 33,000 61,470
-----------
248,148
-----------
South Korea -- 2.7%
CJ Internet Corp........................... 5,940 106,666
Hyundai DSF Co., Ltd....................... 6,970 77,516
Jinsung T.E.C.............................. 9,548 128,798
JVM Co., Ltd............................... 2,683 121,920
Kolon Engineering & Construction Co., Ltd.. 4,180 45,687
SODIFF Advanced Materials Co., Ltd......... 1,104 82,625
SSCP Co., Ltd.+............................ 5,375 121,690
Taeyoung Engineering & Construction........ 13,800 113,136
-----------
798,038
-----------
Spain -- 4.1%
Prosegur Cia de Seguridad SA............... 7,440 312,088
Tubacex, SA................................ 54,790 606,363
Viscofan SA................................ 13,364 306,138
-----------
1,224,589
-----------
Sweden -- 3.4%
Intrum Justitia AB......................... 30,154 536,605
RaySearch Laboratories AB+................. 5,004 116,292
Saab AB.................................... 14,817 374,490
-----------
1,027,387
-----------
Switzerland -- 1.9%
Basilea Pharmaceutica AG+.................. 1,433 209,263
Compagne Financiere Tradition.............. 1,025 180,644
Swissquote Group Holding SA................ 3,510 191,851
-----------
581,758
-----------
Taiwan -- 1.2%
Everlight Electronics Co., Ltd............. 37,077 127,514
Sanyang Industrial Co., Ltd................ 302,000 229,602
-----------
357,116
-----------
Thailand -- 0.1%
Italian-Thai Development PCL............... 177,500 42,282
-----------
United Kingdom -- 17.8%
Chemring Group PLC......................... 11,651 568,002
Chloride Group PLC......................... 104,884 397,522
Connaught PLC.............................. 50,100 378,801
Cookson Group PLC.......................... 15,372 202,538
Croda International........................ 28,971 381,158
Homeserve PLC.............................. 9,920 378,529
IG Group Holdings PLC...................... 86,464 561,454
Lamprell PLC............................... 3,270 25,959
Northumbrian Water Group PLC............... 84,061 582,578
PayPoint PLC............................... 21,624 243,120
PV Crystalox Solar PLC+.................... 68,850 176,245
Rotork PLC................................. 17,295 370,277
RPS Group PLC.............................. 52,294 334,660
Tanfield Group PLC+........................ 102,438 197,230
VT Group PLC............................... 42,193 550,092
-----------
5,348,165
-----------
Total Common Stock
(cost $28,323,632)........................ 29,073,580
-----------
65
SunAmerica International Small-Cap Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Shares/ Market
Principal Value
Security Description Amount (Note 3)(1)
---------------------------------------------------------------
PREFERRED STOCK -- 1.9%
Germany -- 1.9%
Fuchs Petrolub AG..................... 4,491 $ 418,720
Hugo Boss AG
7.49%................................ 2,879 145,595
-----------
Total Preferred Stock
(cost $536,824)...................... 564,315
-----------
Total Long-Term Investment Securities
(cost $28,860,456)................... 29,637,895
-----------
SHORT-TERM INVESTMENT SECURITIES -- 0.4%
Time Deposits -- 0.4%
Euro Time Deposit with State Street
Bank & Trust Co.
0.60% due 04/01/08
(cost $136,000)...................... $ 136,000 136,000
-----------
TOTAL INVESTMENTS
(cost $28,996,456)(2)................ 99.0% 29,773,895
Other assets less liabilities........... 1.0 289,851
--------- -----------
NET ASSETS -- 100.0% $30,063,746
========= ===========
- --------
+ Non-income producing security
(1)A substantial number of the Fund's holdings were valued using fair value
procedures at March 31, 2008. At March 31, 2008, the aggregate value of
these securities was $29,235,249 representing 97.2% of net assets. See Note
3 regarding fair value pricing procedures for foreign equity securities.
(2)See Note 7 for cost of investment on a tax basis.
See Notes to Financial Statements
66
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (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"),
SunAmerica Disciplined Growth Fund ("Disciplined Growth 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 active trading of 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 active trading of
equity securities that demonstrate the potential for capital appreciation,
issued generally by small-cap companies.
New Century Fund seeks capital appreciation by active trading of 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
active trading of 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 by 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 active trading of
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 by active trading of equity
securities selected on the basis of value criteria, issued by companies of
any market capitalization, that offer the potential for long-term growth of
capital.
Disciplined Growth Fund seeks capital appreciation by active trading of
equity securities that demonstrate the potential for capital appreciation,
without regard to market capitalization.
International Small-Cap Fund seeks long-term capital appreciation by active
trading of equity and equity-related securities of non-U.S. small-cap
companies throughout the world including emerging market countries. 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, Disciplined Growth 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.
67
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (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 amounts
$1,000,000 or more 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) calendar 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) calendar 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 make
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
68
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (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.
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.
Investments in open-end and closed-end registered investment companies that
do not trade on an exchange are valued at the end of day net asset value per
share. Investments in open-end and closed-end registered investment
companies that trade on an exchange are valued at the last sales price or
official closing price as of the close of the customary trading session on
the exchange where the security is principally traded.
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.
New Accounting Pronouncements: 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
69
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited)
(continued)
financial statement reporting period for fiscal years beginning after
December 15, 2006. Management had evaluated the implications of FIN 48 and
determined there is no impact to the financial statements.
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 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, 2008, the
management of the Funds does 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, 2008, the following Funds held an undivided interest in a
joint repurchase agreement with State Street Bank & Trust Co.:
Percentage Principal
Fund Interest Amount
- ---- ---------- -----------
Blue Chip Growth.... 1.41% $ 2,392,000
Growth Opportunities 3.06 5,178,000
New Century......... 3.19 5,409,000
Growth & Income..... 1.50 2,539,000
Balanced Assets..... 3.15 5,342,000
Value............... 7.86 13,310,000
Disciplined Growth.. 5.97 10,105,000
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, 2008, bearing interest at a
rate of 0.80% per annum, with a principal amount of $169,381,000, a
repurchase price of $169,384,764 and a maturity date of April 1, 2008. The
repurchase agreement is collateralized by the following:
Maturity Principal
Type of Collateral Interest Rate Date Amount Market Value
- ------------------ ------------- -------- ----------- ------------
U.S. Treasury Bonds 6.25% 08/15/23 $93,628,724 $95,501,775
U.S. Treasury Bonds 8.00 11/15/21 15,573,722 15,885,196
U.S. Treasury Bonds 8.75 08/15/20 60,178,554 61,382,125
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.
70
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited)
(continued)
Net investment income, other than class-specific expenses, and realized and
unrealized gains and losses, are allocated daily to each class of shares
based upon the relative net asset value of outstanding shares 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. The
Funds file U.S. federal and certain state income tax returns. With few
exceptions, the Funds are no longer subject to U.S. federal and state tax
examination by tax authorities for tax years ending before 2004.
Foreign Currency Translation: The books and records of the Funds are
maintained in U.S. dollars. Assets and liabilities denominated in foreign
currencies are translated into U.S. dollars based on the exchange rate of
such currencies against U.S. dollars on the date of valuation. The Funds do
not isolate that portion of the results of operations arising as a result of
changes in the foreign exchange rates from the changes in the market prices
of securities held at the end of the period. Similarly, the Funds do not
isolate the effect of changes in foreign exchange rates from the changes in
the market prices of portfolio securities sold during the period. Realized
foreign exchange gains and losses on other assets and liabilities and change
in unrealized foreign exchange gains and losses on other assets and
liabilities include foreign exchange gains and losses from currency gains or
losses between the trade and settlement dates of securities transactions,
the difference between the amounts of interest, dividends and foreign
withholding taxes recorded on the Funds' books and the U.S. dollar
equivalent amounts actually received or paid and changes in the unrealized
foreign exchange gains and losses relating to other assets and liabilities
arising as a result of changes in the exchange rate.
Forward Foreign Currency Contracts: Certain funds may enter into forward
foreign currency contracts ("forward contracts") to attempt to protect
securities and related receivables and payables against changes in future
foreign exchange rates or to enhance return. A forward contract is an
agreement between two parties to buy or sell currency at a set price on a
future date. The market value of the contract will fluctuate with changes in
currency exchange rates. The contract is marked to market daily using the
forward rate and the change in market value is recorded by the Fund as
unrealized gain or loss. On settlement date, the Fund records realized
foreign exchange gains or losses when the contract is closed equal to the
difference between the value of the contract at the time it was opened and
the value at the time it was closed. Risks may arise upon entering into
these contracts from the potential inability of counterparties to meet the
terms of their contracts and from unanticipated movements in the value of a
foreign currency relative to the U.S. dollar. Forward contracts involve
elements of risk in excess of the amounts reflected in the Statement of
Assets and Liabilities. The Fund bears the risk of an unfavorable change in
the foreign exchange rate underlying the forward contract.
Futures Contracts: A futures contract is an agreement between two parties to
buy and sell a financial instrument at a set price on a future date. Upon
entering into a futures transaction, a Fund will be required to segregate an
initial margin payment of cash
71
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited)
(continued)
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 six
months ended March 31, 2008.
Mortgage-Backed Dollar Rolls: During the six months ended March 31, 2008,
the Balanced Assets Fund entered into dollar rolls using "to be announced"
("TBA") mortgage-backed securities ("TBA Rolls"). The Fund's policy is to
record the components of TBA Rolls as purchase/sale transactions. Any
difference between the purchase and sale price is recorded as a realized
gain or loss on the date the transaction is entered into. Dollar roll
transactions involve the risk that the market value of the securities held
by the Fund may decline below the price of the securities that the Fund has
sold but is obligated to repurchase under the agreement. In the event that
the buyer of securities in a dollar roll transaction files bankruptcy or
becomes insolvent, the Fund's use of the proceeds from the sale of the
securities may be restricted pending a determination by the other party, or
its trustee or receiver, whether to enforce the Fund's obligation to
repurchase the securities. The return earned by the Fund with the proceeds
of the dollar roll transaction may not exceed transaction costs.
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 Disciplined Growth 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 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
72
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited)
(continued)
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. During the six months ended March 31, 2008, Balanced Assets
engaged in short sales.
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
Disciplined Growth 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 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 the fund.
Effective October 1, 2006, AIG SunAmerica agreed to, until further notice,
reduce the waiver of the investment advisory fee for the fund to 0.02%. For
the six months ended March 31, 2008, the amount of investment advisory fees
waived for the Balanced Assets Fund was $14,149. This amount is reflected in
the Statement of Operations.
For the six months ended March 31, 2008, 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 six
months ended March 31, 2008, AIGGIC waived 0.05% of the fee paid by AIG
SunAmerica for the International Small-Cap Fund.
AIG SunAmerica has contractually agreed to waive fees or reimburse expenses
to the extent necessary to cap the Funds' annual fund operating expenses at
the following percentages of each Fund's average net assets. The contractual
expense waivers and fee reimbursements 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 ("Disinterested Trustees").
73
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited)
(continued)
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
Disciplined Growth Class A..... 1.45
Disciplined Growth Class B..... 2.10
Disciplined Growth 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
Further, AIG SunAmerica is voluntarily waiving fees and/or reimbursing
expenses, if necessary, so that the total net expense ratio for the
following classes do not exceed the amounts set forth below. The voluntary
fee waivers and/or expense reimbursements 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, Disciplined Growth Fund, and
International Small-Cap Fund, any voluntary or contractual waivers and/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 six months ending March 31, 2008, pursuant to the contractual and
voluntary expense limitations in the above tables AIG SunAmerica has waived
or reimbursed expenses as follows:
Blue Chip Growth Class I....... $ 5,448
Growth Opportunities Class I... 5,015
New Century Fund Class C....... 8,167
Growth & Income Class I........ 5,179
Balanced Assets Class I........ 5,080
International Equity Class A... --
International Equity Class B... 2,210
International Equity Class C... 942
International Equity Class I... 1,442
Value Fund Class A............. 53,838
Value Fund Class B............. 23,464
Value Fund Class C............. 14,513
Value Fund Class I............. 4,141
Value Fund Class Z............. 11,711
Disciplined Growth Class A..... 34,722
Disciplined Growth Class B..... 10,866
Disciplined Growth Class C..... 33,774
International Small-Cap Class A 61,865
International Small-Cap Class B 8,145
International Small-Cap Class C 15,577
74
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited)
(continued)
For the six months ended March 31, 2008, the amounts recouped by the Adviser
are as follows:
International Equity Class A $ --
International Equity Class B 917
International Equity Class C 6,249
International Equity Class I 405
At March 31, 2008, the amount of expenses previously waived and/or
reimbursed by AIG SunAmerica during the prior two years that remain subject
to recoupment are as follows:
Class
Other Specific
Expenses Expenses
Reimbursed Reimbursed
- - ---------- ----------
International Equity Class A........ $ -- $ --
International Equity Class B........ -- 13,392
International Equity Class C........ -- 1,497
International Equity Class l........ -- 5,947
Value Fund Class A.................. 93,258 109,340
Value Fund Class B.................. 35,075 61,139
Value Fund Class C.................. 22,930 37,413
Value Fund Class l.................. 661 19,649
Value Fund Class Z.................. 20,052 27,502
Disciplined Growth Class A.......... 7,625 130,160
Disciplined Growth Class B.......... 3,850 60,031
Disciplined Growth Class C.......... 9,237 136,405
International Small-Cap Fund Class A 163,511 128,824
International Small-Cap Fund Class B 5,279 40,798
International Small-Cap Fund Class C 17,109 57,319
The Trust, on behalf of each Fund, has entered into a Distribution Agreement
with AIG SunAmerica Capital Services, Inc. ("SACS" or the "Distributor"), an
affiliate of the Adviser. Each Fund has adopted a Distribution Plan 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 six months ended March 31, 2008, SACS received fees (see Statement
of Operations) based upon the aforementioned rates.
In addition, SACS is paid a fee of 0.25% of average daily net assets of
Class I shares in connection with providing administrative and shareholder
services to Class I shareholders. For the six months ended March 31, 2008,
SACS earned fees (see Statement of Operations) based upon the aforementioned
rates.
SACS receives sales charges on each Fund's Class A shares, portions of which
are reallocated to affiliated broker-dealers and non-affiliated
broker-dealers. SACS also receives the proceeds of contingent deferred sales
charges paid by investors in
75
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited)
(continued)
connection with certain redemptions of each Fund's Class A, Class B and
Class C shares. SACS has advised the Funds that for the six months ended
March 31, 2008, 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....... $ 39,989 $ 7,121 $27,412 $2,475 $ 6,706 $ 182
Growth Opportunities .. 15,202 8,315 4,700 71 6,205 175
New Century ........... 22,956 9,991 8,457 -- 7,078 246
Growth & Income........ 25,897 10,193 12,098 30 12,931 161
Balanced Assets ....... 66,121 43,323 13,687 60 7,776 181
International Equity .. 75,131 17,620 46,884 830 8,544 2,029
Value.................. 36,040 14,227 16,532 -- 19,136 218
Disciplined Growth..... 111,192 11,492 84,197 79 3,671 2,949
International Small-Cap 24,926 7,279 13,744 6 130 97
The Trust has entered into a Service Agreement with AIG SunAmerica Fund
Services, Inc. ("SAFS"), an affiliate of the Adviser. Under the Service
Agreement, SAFS performs certain shareholder account functions by assisting
the Funds' transfer agent in connection with the services that it offers to
the shareholders of the Funds. Pursuant to the Service Agreement, the Funds
(except for Class Z shares of the Funds) pay a fee to 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 six months ended March 31,
2008, the Funds incurred the following expenses which are included in
transfer agent fees payable in the Statement of Asset and Liabilities and in
transfer agent fees and expenses in the Statement of Operations to
compensate SAFS pursuant to the terms of the Service Agreement.
Expense Payable At March 31, 2008
-------------------------------- -------------------------------
Fund Class A Class B Class C Class I Class A Class B Class C Class I
- ---- -------- ------- ------- ------- ------- ------- ------- -------
Blue Chip Growth......... $ 53,848 $13,914 $ 4,557 $ 719 $ 8,291 $2,018 $ 732 $ 109
Growth Opportunities..... 36,684 12,825 7,001 138 5,152 1,708 961 20
New Century.............. 82,535 9,246 5,286 -- 11,758 1,273 717 --
Growth and Income........ 67,269 18,031 23,091 338 10,389 2,585 3,419 57
Balanced Assets.......... 126,819 14,233 13,900 688 19,799 2,151 2,120 111
International Equity..... 78,038 20,322 27,548 8,540 11,959 3,002 4,127 1,285
Value ................... 121,298 36,235 23,643 35 17,885 5,183 3,332 6
Disciplined Growth....... 33,152 5,860 34,444 -- 5,502 905 5,429 --
International Small-Cap . 29,943 1,230 5,111 -- 4,572 197 693 --
At March 31, 2008, AIG SunAmerica, Inc. an affiliated company of the
Adviser, owned 5.1% of the total outstanding shares of New Century, 17.2% of
International Equity, and 6.2% of Value Fund, respectively.
On February 8, 2008, the Blue Chip Growth Fund and Balanced Assets Fund sold
900 shares and 600 shares, respectively of Allergan, Inc. common stock that
the Funds did not own. Both Funds have an investment restriction that
prohibits them from selling securities they do not own ("short selling").
The short positions were closed on February 8, 2008, resulting in a gain of
$19 and $12, respectively, for the Blue Chip Growth Fund and Balanced Assets
Fund.
76
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (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 six months ended March 31, 2008, 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.... $ 4,299
Growth Opportunities 50,299
New Century......... 34,277
Growth and Income... 21,514
Balanced Assets..... 10,996
International Equity 1,910
Value............... 34,650
Disciplined Growth.. 20,575
Note 6. Purchases and Sales of Investment Securities
The cost of purchases and proceeds from sales and maturities of long-term
investments during the six months ended March 31, 2008, were as follows:
Blue Chip Growth New Growth and
Growth Opportunities Century Income Balanced
Fund Fund Fund Fund Assets Fund
------------- ------------- ------------ ------------- ------------
Purchases (excluding U.S. government securities)........... $ 21,772,456 $ 81,655,557 $143,429,634 $130,242,166 $ 86,307,784
Sales and maturities (excluding U.S. government securities) 25,919,844 82,991,566 144,511,334 137,612,441 100,720,197
Purchases of U.S. government securities.................... -- -- -- -- 9,235,346
Sales and maturities of U.S. government securities......... -- -- -- -- 7,693,999
International Disciplined International
Equity Value Growth Small-Cap
Fund Fund Fund Fund
------------- ------------- ------------ -------------
Purchases (excluding U.S. government securities)........... $123,819,305 $207,112,727 $131,427,534 $ 15,505,469
Sales and maturities (excluding U.S. government securities) 131,890,750 244,184,971 124,966,520 15,928,745
Purchases of U.S. government securities.................... -- -- -- --
Sales and maturities of U.S. government securities......... -- -- -- --
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 at March 31, 2008:
Blue Chip Growth New Growth and Balanced
Growth Opportunities Century Income Assets
Fund Fund Fund Fund Fund
------------- ------------- ----------- ------------- ------------
Cost (tax basis).......................... $ 57,029,923 $ 38,981,074 $69,898,646 $89,873,406 $126,895,789
============ ============ =========== =========== ============
Appreciation.............................. 6,458,412 1,017,446 1,453,901 2,384,545 6,970,716
Depreciation.............................. (3,788,234) (1,081,138) (2,604,327) (6,053,107) (6,855,596)
------------ ------------ ----------- ----------- ------------
Net unrealized appreciation (depreciation) $ 2,670,178 $ (63,692) $(1,150,426) $(3,668,562) $ 115,120
============ ============ =========== =========== ============
International Disciplined International
Equity Value Growth Small-Cap
Fund Fund Fund Fund
------------- ------------- ----------- -------------
Cost (tax basis).......................... $103,463,341 $161,338,312 $64,309,228 $29,102,773
============ ============ =========== ===========
Appreciation.............................. 9,937,870 6,371,207 1,567,546 3,251,730
Depreciation.............................. (6,048,550) (6,658,318) (1,754,060) (2,580,608)
------------ ------------ ----------- -----------
Net unrealized appreciation (depreciation) $ 3,889,320 $ (287,111) $ (186,514) $ 671,122
============ ============ =========== ===========
77
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited)
(continued)
The following details the tax basis of distributions as well as the
components of distributable earnings. The tax character of distributions
paid may differ from the character of distributions shown on the Statement
of Changes in Net Assets due to short-term capital gains being treated as
ordinary income for tax purposes. The tax basis components of distributable
earnings differ from the amounts reflected in the Statement of Assets and
Liabilities due to temporary book/tax differences primarily arising from
wash sales, post October losses and derivative transactions.
Distributable Earnings Tax Distributions
----------------------------------------- ----------------------
For the year ended September 30, 2007
----------------------------------------------------------------
Long-term
Gains/ Capital Unrealized Long-Term
Ordinary Loss Appreciation Ordinary Capital
Fund Income Carryover (Depreciation) Income Gains
- ---- ----------- -------------- -------------- ---------- -----------
Blue Chip Growth....... $ -- $ (52,435,231) $10,781,893 $ -- $ --
Growth Opportunities... -- (173,866,796) 42,119 -- --
New Century............ -- (75,049,480) 151,222 -- --
Growth and Income...... 242,352 (33,557,797) 9,045,976 -- --
Balanced Assets........ 412,431 (68,456,727) 12,393,089 2,250,950 --
International Equity... -- 8,141,350 23,228,863 -- --
Value.................. 17,252,045 11,938,455 20,911,655 9,883,623 16,743,650
Disciplined Growth..... -- (18,611,005) 8,504,488 -- --
International Small-Cap 5,925 6,822 4,385,751 -- --
For Federal income tax purposes, the Funds indicated below have capital loss
carryforwards, which expire in the year indicated, as of September 30, 2007,
which are available to offset future capital gains, if any:
Capital Loss Carryforward
-------------------------------------------------------------------------
Fund 2008 2009 2010 2011 2012 2013 2014
- ---- ----------- ----------- ------------ ----------- ---------- -------- ----
Blue Chip Growth*...... $15,134,022 $ -- $ 10,374,287 $42,060,944 $ -- $ -- $--
Growth Opportunities*.. 6,398,027 151,316 121,180,899 65,312,802 -- -- --
New Century*........... 12,315,199 17,583,650 39,244,108 36,351,156 -- -- --
Growth and Income...... -- -- -- 27,835,407 5,722,390 -- --
Balanced Assets........ -- -- 8,896,612 55,685,563 3,874,552 -- --
International Equity*.. 13,755,719 -- -- -- -- -- --
Value.................. -- -- -- -- -- -- --
Disciplined Growth..... -- -- 13,578,150 4,260,050 594,906 177,899 --
International Small-Cap -- -- -- -- -- -- --
- --------
* 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.
78
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited)
(continued)
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 For the six months For the
March 31, 2008 year ended March 31, 2008 year ended
(unaudited) September 30, 2007 (unaudited) September 30, 2007
--------------------- ---------------------- --------------------- ----------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ------------ -------- ----------- -------- ------------
Shares sold (1)(2)(3)(4). 146,516 $ 2,636,455 272,319 $ 4,717,820 28,880 $ 451,432 61,910 $ 927,860
Reinvested dividends..... -- -- -- -- -- -- -- --
Shares redeemed (1)(2)... (221,768) (3,918,142) (656,693) (11,104,067) (161,942) (2,526,561) (449,635) (6,803,173)
-------- ----------- -------- ------------ -------- ----------- -------- ------------
Net increase (decrease).. (75,252) $(1,281,687) (384,374) $ (6,386,247) (133,062) $(2,075,129) (387,725) $ (5,875,313)
======== =========== ======== ============ ======== =========== ======== ============
Blue Chip Growth Fund
--------------------------------------------------------------------------------------------
Class C Class I
--------------------------------------------- ---------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2008 year ended March 31, 2008 year ended
(unaudited) September 30, 2007 (unaudited) September 30, 2007
--------------------- ---------------------- --------------------- ----------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ------------ -------- ----------- -------- ------------
Shares sold.............. 59,820 $ 961,018 18,808 $ 279,270 12,636 $ 236,651 6,566 $ 112,457
Reinvested dividends..... -- -- -- -- -- -- -- --
Shares redeemed (3)(4)... (30,293) (469,606) (104,067) (1,557,478) (13,336) (247,167) (11,604) (197,959)
-------- ----------- -------- ------------ -------- ----------- -------- ------------
Net increase (decrease).. 29,527 $ 491,412 (85,259) $ (1,278,208) (700) $ (10,516) (5,038) $ (85,502)
======== =========== ======== ============ ======== =========== ======== ============
Growth Opportunities Fund
--------------------------------------------------------------------------------------------
Class A Class B
--------------------------------------------- ---------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2008 year ended March 31, 2008 year ended
(unaudited) September 30, 2007 (unaudited) September 30, 2007
--------------------- ---------------------- --------------------- ----------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ------------ -------- ----------- -------- ------------
Shares sold (5)(6)(7)(8). 153,903 $ 2,738,123 467,598 $ 9,161,091 19,609 $ 292,430 57,020 $ 971,620
Reinvested dividends..... -- -- -- -- -- -- -- --
Shares redeemed (5)(6)... (361,054) (6,215,344) (607,841) (11,673,643) (219,235) (3,389,272) (584,520) (10,064,774)
-------- ----------- -------- ------------ -------- ----------- -------- ------------
Net increase (decrease).. (207,151) $(3,477,221) (140,243) $ (2,512,552) (199,626) $(3,096,842) (527,500) $ (9,093,154)
======== =========== ======== ============ ======== =========== ======== ============
- --------
(1)For the six months ended March 31, 2008, includes automatic conversion of
88,547 shares of Class B shares in the amount of $1,390,877 to 77,897 shares
of Class A shares in the amount of $1,390,877.
(2)For the year ended September 30, 2007, includes automatic conversion of
205,245 shares of Class B shares in the amount of $3,153,549 to 181,415
shares of Class A shares in the amount of $3,153,549.
(3)For the six months ended March 31, 2008, includes automatic conversion of
3,097 shares of Class C shares in the amount of $47,855 to 2,704 shares of
Class A shares in the amount of $47,855.
(4)For the year ended September 30, 2007, includes automatic conversion of
17,217 shares of Class C shares in the amount of $262,954 to 15,124 shares
of Class A shares in the amount of $262,954.
(5)For the six months ended March 31, 2008, includes automatic conversion of
92,843 shares of Class B shares in the amount of $1,481,712 to 81,654 shares
of Class A shares in the amount of $1,481,712.
(6)For the year ended September 30, 2007, includes automatic conversion of
277,289 shares of Class B shares in the amount of $4,814,621 to 244,697
shares of Class A shares in the amount of $4,814,621.
(7)For the six months ended March 31, 2008, includes automatic conversion of
3,444 shares of Class C shares in the amount of $51,483 to 3,019 shares of
Class A shares in the amount of $51,483.
(8)For the year ended September 30, 2007, includes automatic conversion of
15,202 shares of Class C shares in the amount of $266,305 to 13,404 shares
of Class A shares in the amount of $266,305.
79
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited)
(continued)
Growth Opportunities Fund
-------------------------------------------------------------------------------------------
Class C Class I
--------------------------------------------- --------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2008 year ended March 31, 2008 year ended
(unaudited) September 30, 2007 (unaudited) September 30, 2007
--------------------- ---------------------- --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ------------ -------- ----------- -------- -----------
Shares sold............ 11,951 $ 175,304 73,251 $ 1,243,056 451 $ 7,822 900 $ 17,303
Reinvested dividends... -- -- -- -- -- -- -- --
Shares redeemed (7)(8). (103,968) (1,626,207) (203,387) (3,485,346) (762) (13,235) (17,924) (341,263)
-------- ----------- -------- ------------ -------- ----------- -------- -----------
Net increase (decrease) (92,017) $(1,450,903) (130,136) $ (2,242,290) (311) $ (5,413) (17,024) $ (323,960)
======== =========== ======== ============ ======== =========== ======== ===========
- --------
(7)For the six months ended March 31, 2008, includes automatic conversion of
3,444 shares of Class C shares in the amount of $51,483 to 3,019 shares of
Class A shares in the amount of $51,483.
(8)For the year ended September 30, 2007, includes automatic conversion of
15,202 shares of Class C shares in the amount of $266,305 to 13,404 shares
of Class A shares in the amount of $266,305.
New Century Fund
-------------------------------------------------------------------------------------------
Class A Class B
--------------------------------------------- --------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2008 year ended March 31, 2008 year ended
(unaudited) September 30, 2007 (unaudited) September 30, 2007
--------------------- ---------------------- --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ------------ -------- ----------- -------- -----------
Shares sold (1)(2)(3).... 88,536 $ 1,788,717 349,824 $ 7,584,889 14,176 $ 241,623 41,725 $ 1,374,288
Shares issued in merger + -- -- 456,997 9,556,448 -- -- 378,511 6,906,165
Shares redeemed (1)(2)... (469,084) (9,221,765) (867,696) (20,403,970) (117,947) (2,064,221) (324,871) (6,113,256)
-------- ----------- -------- ------------ -------- ----------- -------- -----------
Net increase (decrease).. (380,548) $(7,433,048) (60,875) $ (3,262,633) (103,771) $(1,822,598) 95,365 $ 2,167,197
======== =========== ======== ============ ======== =========== ======== ===========
New Century Fund
---------------------------------------------
Class C
---------------------------------------------
For the
six months ended For the
March 31, 2008 year ended
(unaudited) September 30, 2007
--------------------- ----------------------
Shares Amount Shares Amount
-------- ----------- -------- ------------
Shares sold.............. 20,176 $ 365,447 30,355 $ 1,513,139
Shares issued in merger + -- -- 263,342 4,832,027
Shares redeemed (3)...... (66,161) (1,139,855) (100,822) (1,920,423)
-------- ----------- -------- ------------
Net increase (decrease).. (45,985) $ (774,408) 192,875 $ 4,424,743
======== =========== ======== ============
- --------
(1)For the six months ended March 31, 2008, includes automatic conversion of
40,621 shares of Class B shares in the amount of $740,053 to 35,265 shares
of Class A shares in the amount of $740,053.
(2)For the year ended September 30, 2007, includes automatic conversion of
165,359 shares of Class B shares in the amount of $3,144,259 to 144,044
shares of Class A shares in the amount of $3,144,259.
(3)For the year ended September 30, 2007, includes automatic conversion of 79
shares of Class C shares in the amount of $1,590 to 69 shares of Class A
shares in the amount of $1,590.
+ See Note 2.
80
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited)
(continued)
Growth and Income Fund
-----------------------------------------------------------------------------------------------
Class A Class B
------------------------------------------------ ---------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2008 year ended March 31, 2008 year ended
(unaudited) September 30, 2007 (unaudited) September 30, 2007
---------------------- ------------------------ --------------------- ----------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ------------ ---------- ------------ -------- ----------- -------- ------------
Shares sold (1)(2)(3)(4) 398,887 $ 5,948,391 1,024,726 $ 15,049,599 45,342 $ 623,266 88,044 $ 1,200,393
Reinvested dividends.... 14,377 220,109 -- -- -- -- -- --
Shares redeemed (1)(2).. (599,929) (8,907,849) (1,415,515) (20,646,675) (311,321) (4,286,048) (913,913) (12,582,078)
-------- ------------ ---------- ------------ -------- ----------- -------- ------------
Net increase (decrease). (186,665) $ (2,739,349) (390,789) $ (5,597,076) (265,979) $(3,662,782) (825,869) $(11,381,685)
======== ============ ========== ============ ======== =========== ======== ============
Growth and Income Fund
-----------------------------------------------------------------------------------------------
Class C Class I
------------------------------------------------ ---------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2008 year ended March 31, 2008 year ended
(unaudited) September 30, 2007 (unaudited) September 30, 2007
---------------------- ------------------------ --------------------- ----------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ------------ ---------- ------------ -------- ----------- -------- ------------
Shares sold............. 23,943 $ 332,549 69,560 $ 943,742 4,360 $ 63,218 3,981 $ 57,853
Reinvested dividends.... -- -- -- -- 95 1,451 -- --
Shares redeemed (3)(4).. (225,135) (3,071,051) (585,816) (8,047,218) (2,620) (40,406) (5,169) (76,734)
-------- ------------ ---------- ------------ -------- ----------- -------- ------------
Net increase (decrease). (201,192) $ (2,738,502) (516,256) $ (7,103,476) 1,835 $ 24,263 (1,188) $ (18,881)
======== ============ ========== ============ ======== =========== ======== ============
Balanced Assets Fund
-----------------------------------------------------------------------------------------------
Class A Class B
------------------------------------------------ ---------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2008 year ended March 31, 2008 year ended
(unaudited) September 30, 2007 (unaudited) September 30, 2007
---------------------- ------------------------ --------------------- ----------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ------------ ---------- ------------ -------- ----------- -------- ------------
Shares sold (5)(6)(7)(8) 265,243 $ 3,995,119 659,237 $ 9,995,580 39,387 $ 593,463 82,301 $ 1,239,592
Reinvested dividends.... 62,925 938,394 122,714 1,865,233 4,027 60,252 7,877 119,339
Shares redeemed (5)(6).. (726,281) (10,999,732) (1,840,180) (27,750,445) (171,896) (2,607,897) (595,400) (8,989,165)
-------- ------------ ---------- ------------ -------- ----------- -------- ------------
Net increase (decrease). (398,113) $ (6,066,219) (1,058,229) $(15,889,632) (128,482) $(1,954,182) (505,222) $ (7,630,234)
======== ============ ========== ============ ======== =========== ======== ============
- --------
(1)For the six months ended March 31, 2008, includes automatic conversion of
151,696 shares of Class B shares in the amount of $2,105,297 to 141,905
shares of Class A shares in the amount of $2,105,297.
(2)For the year ended September 30, 2007, includes automatic conversion of
465,198 shares of Class B shares in the amount of $6,461,560 to 436,352
shares of Class A shares in the amount of $6,461,560.
(3)For the six months ended March 31, 2008, includes automatic conversion of
40,689 shares of Class C shares in the amount of $549,547 to 38,058 shares
of Class A shares in the amount of $549,547.
(4)For the year ended September 30, 2007, includes automatic conversion of
102,570 shares of Class C shares in the amount of $1,439,849 to 96,087
shares of Class A shares in the amount of $1,439,849.
(5)For the six months ended March 31, 2008, includes automatic conversion of
73,282 shares of Class B shares in the amount of $1,120,907 to 73,066 shares
of Class A shares in the amount of $1,120,907.
(6)For the year ended September 30, 2007, includes automatic conversion of
312,489 shares of Class B shares in the amount of $4,744,038 to 311,322
shares of Class A shares in the amount of $4,744,038.
(7)For the six months ended March 31, 2008, includes automatic conversion of
2,036 shares of Class C shares in the amount of $29,666 to 2,034 shares of
Class A shares in the amount of $29,666.
(8)For the year ended September 30, 2007, includes automatic conversion of
9,120 shares of Class C shares in the amount of $137,980 to 9,106 shares of
Class A shares in the amount of $137,980.
81
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited)
(continued)
Balanced Assets Fund
---------------------------------------------------------------------------------
Class C Class I
-------------------------------------------- -----------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2008 year ended March 31, 2008 year ended
(unaudited) September 30, 2007 (unaudited) September 30, 2007
--------------------- --------------------- --------------- ------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ----------- ------ -------- ------- ---------
Shares sold............ 29,596 $ 444,820 37,806 $ 565,546 1,080 $ 16,428 2,467 $ 37,069
Reinvested dividends... 3,923 58,823 6,854 104,202 406 6,049 886 13,500
Shares redeemed (7)(8). (113,370) (1,701,876) (229,341) (3,460,624) (805) (12,279) (14,882) (226,730)
-------- ----------- -------- ----------- ----- -------- ------- ---------
Net increase (decrease) (79,851) $(1,198,233) (184,681) $(2,790,876) 681 $ 10,198 (11,529) $(176,161)
======== =========== ======== =========== ===== ======== ======= =========
- --------
(7)For the six months ended March 31, 2008, includes automatic conversion of
2,036 shares of Class C shares in the amount of $29,666 to 2,034 shares of
Class A shares in the amount of $29,666.
(8)For the year ended September 30, 2007, includes automatic conversion of
9,120 shares of Class C shares in the amount of $137,980 to 9,106 shares of
Class A shares in the amount of $137,980.
International Equity Fund
----------------------------------------------------------------------------------------------
Class A Class B
------------------------------------------------ --------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2008 year ended March 31, 2008 year ended
(unaudited) September 30, 2007 (unaudited) September 30, 2007
---------------------- ------------------------ --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ------------ ---------- ------------ -------- ----------- -------- -----------
Shares sold (1)(2)(3)(4).... 494,456 $ 9,121,233 1,360,169 $ 24,122,022 93,228 $ 1,578,189 234,766 $ 3,887,709
Reinvested dividends........ 337,952 6,106,795 -- -- 101,318 1,689,981 -- --
Shares redeemed (1)(2)...... (679,092) (12,164,868) (1,476,609) (26,115,354) (244,502) (4,031,071) (552,783) (9,228,788)
-------- ------------ ---------- ------------ -------- ----------- -------- -----------
Net increase (decrease)..... 153,316 $ 3,063,160 (116,440) $ (1,993,332) (49,956) $ (762,901) (318,017) $(5,341,079)
======== ============ ========== ============ ======== =========== ======== ===========
International Equity Fund
----------------------------------------------------------------------------------------------
Class C Class I
------------------------------------------------ --------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2008 year ended March 31, 2008 year ended
(unaudited) September 30, 2007 (unaudited) September 30, 2007
---------------------- ------------------------ --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ------------ ---------- ------------ -------- ----------- -------- -----------
Shares sold................. 154,539 $ 2,615,105 340,641 $ 5,685,742 67,563 $ 1,242,146 140,027 $ 2,462,907
Reinvested dividends........ 130,196 2,170,365 -- -- 38,744 706,298 -- --
Shares redeemed (3)(4)(5)(6) (262,762) (4,143,594) (351,299) (5,862,416) (131,626) (2,200,647) (333,525) (5,907,477)
-------- ------------ ---------- ------------ -------- ----------- -------- -----------
Net increase (decrease)..... 21,973 $ 641,876 (10,658) $ (176,674) (25,319) $ (252,203) (193,498) $(3,444,570)
======== ============ ========== ============ ======== =========== ======== ===========
- --------
(1)For the six months ended March 31, 2008, includes automatic conversion of
94,046 shares of Class B shares in the amount of $1,540,281 to 87,028 shares
of Class A shares in the amount of $1,540,281.
(2)For the year ended September 30, 2007, includes automatic conversion of
276,480 shares of Class B shares in the amount of $4,654,844 to 258,279
shares of Class A shares in the amount of $4,654,844.
(3)For the six months ended March 31, 2008, includes automatic conversion of
8,488 shares of Class C shares in the amount of $137,737 to 7,846 shares of
Class A shares in the amount of $137,737.
(4)For the year ended September 30, 2007, includes automatic conversion of
35,187 shares of Class C shares in the amount of $594,960 to 32,839 shares
of Class A shares in the amount of $594,960.
(5)For the six months ended March 31, 2008, net of redemption fees of $10,910,
$2,806, $3,818, and $1,202 for Class A, Class B, Class C and Class I shares,
respectively.
(6)For the year ended September 30, 2007, net of redemption fees of $2,583,
$771, $904, and $320 for Class A, Class B, Class C and Class I shares,
respectively.
82
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited)
(continued)
Value Fund Value Fund
-------------------------------------------------- -----------------------------------------------
Class A Class B
-------------------------------------------------- -----------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2008 year ended March 31, 2008 year ended
(unaudited) September 30, 2007 (unaudited) September 30, 2007
------------------------ ------------------------ --------------------- ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Shares sold (1)(2)(3)(4). 413,647 $ 6,726,777 1,330,412 $ 24,650,750 92,920 $ 1,487,416 305,011 $ 5,377,534
Reinvested dividends..... 1,063,818 16,563,642 704,045 12,539,044 351,095 5,133,009 284,619 4,810,045
Shares redeemed (1)(2)... (1,222,244) (19,249,292) (1,963,578) (36,336,366) (509,630) (7,733,918) (1,074,442) (18,893,815)
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Net increase (decrease).. 255,221 $ 4,041,127 70,879 $ 853,428 (65,615) $(1,113,493) (484,812) $ (8,706,236)
========== ============ ========== ============ ======== =========== ========== ============
Value Fund Value Fund
-------------------------------------------------- -----------------------------------------------
Class C Class I
-------------------------------------------------- -----------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2008 year ended March 31, 2008 year ended
(unaudited) September 30, 2007 (unaudited) September 30, 2007
------------------------ ------------------------ --------------------- ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Shares sold.............. 53,889 $ 795,744 234,527 $ 4,126,128 86 $ 1,562 654 $ 12,289
Reinvested dividends..... 203,721 2,978,405 198,577 3,355,958 348 5,401 199 3,531
Shares redeemed (3)(4)... (333,672) (5,092,619) (902,862) (15,771,477) (156) (2,249) (8,370) (162,102)
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Net increase (decrease).. (76,062) $ (1,318,470) (469,758) $ (8,289,391) 278 $ 4,714 (7,517) $ (146,282)
========== ============ ========== ============ ======== =========== ========== ============
Value Fund
--------------------------------------------------
Class Z
--------------------------------------------------
For the
six months ended For the
March 31, 2008 year ended
(unaudited) September 30, 2007
------------------------ ------------------------
Shares Amount Shares Amount
---------- ------------ ---------- ------------
Shares sold.............. 161,536 $ 2,701,369 509,315 $ 9,851,572
Reinvested dividends..... 309,158 5,048,549 161,535 2,988,389
Shares redeemed.......... (212,166) (3,594,797) (128,127) (2,450,744)
---------- ------------ ---------- ------------
Net increase (decrease).. 258,528 $ 4,155,121 542,723 $ 10,389,217
========== ============ ========== ============
- --------
(1)For the six months ended March 31, 2008, includes automatic conversion of
157,142 shares of Class B shares in the amount of $2,474,676 to 147,872
shares of Class A shares in the amount of $2,474,676.
(2)For the year ended September 30, 2007, includes automatic conversion of
559,465 shares of Class B shares in the amount of $9,849,109 to 529,830
shares of Class A shares in the amount of $9,849,109.
(3)For the six months ended March 31, 2008, includes automatic conversion of
2,318 shares of Class C shares in the amount of $33,054 to 2,176 shares of
Class A shares in the amount of $33,054.
(4)For the year ended September 30, 2007, includes automatic conversion of
7,899 shares of Class C shares in the amount of $138,746 to 7,473 shares of
Class A shares in the amount of $138,746.
83
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited)
(continued)
Disciplined Growth Fund Disciplined Growth Fund
--------------------------------------------- -----------------------------------------
Class A Class B
--------------------------------------------- -----------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2008 year ended March 31, 2008 year ended
(unaudited) September 30, 2007 (unaudited) September 30, 2007
--------------------- ---------------------- ------------------ ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ------------ ------- --------- -------- -----------
Shares sold (1)(2)..... 943,794 $15,704,464 532,983 $ 7,889,774 56,424 $ 892,584 24,300 $ 356,197
Reinvested dividends... -- -- -- -- -- -- -- --
Shares redeemed (1)(2). (438,814) (6,904,913) (776,777) (11,139,424) (54,481) (855,796) (422,344) (5,886,295)
-------- ----------- -------- ------------ ------- --------- -------- -----------
Net increase (decrease) 504,980 $ 8,799,551 (243,794) $ (3,249,650) 1,943 $ 36,788 (398,044) $(5,530,098)
======== =========== ======== ============ ======= ========= ======== ===========
Disciplined Growth Fund
---------------------------------------------
Class C
---------------------------------------------
For the
six months ended For the
March 31, 2008 year ended
(unaudited) September 30, 2007
--------------------- ----------------------
Shares Amount Shares Amount
-------- ----------- -------- ------------
Shares sold............ 566,385 $ 9,249,055 158,305 $ 2,312,884
Reinvested dividends... -- -- -- --
Shares redeemed........ (262,969) (4,009,894) (559,493) (7,777,003)
-------- ----------- -------- ------------
Net increase (decrease) 303,416 $ 5,239,161 (401,188) $ (5,464,119)
======== =========== ======== ============
- --------
(1)For the six months ended March 31, 2008, includes automatic conversion of
22,649 shares of Class B shares in the amount of $367,202 to 21,597 shares
of Class A shares in the amount of $367,202.
(2)For the year ended September 30, 2007, includes automatic conversion of
285,157 shares of Class B shares in the amount of $3,980,961 to 273,229
shares of Class A shares in the amount of $3,980,961.
International Small-Cap Fund International Small-Cap Fund
------------------------------------------- --------------------------------------
Class A Class B
------------------------------------------- --------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2008 year ended March 31, 2008 year ended
(unaudited) September 30, 2007 (unaudited) September 30, 2007
--------------------- -------------------- ------------------ ------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- ------- ----------- ------- --------- ------- ---------
Shares sold (1)(2).......... 68,033 $ 892,814 335,947 $ 4,376,150 21,699 $ 269,009 43,182 $ 571,843
Reinvested dividends........ 21,169 275,413 -- -- 949 12,228 -- --
Shares redeemed (1)(2)(3)(4) (154,046) (1,966,703) (83,528) (1,082,480) (14,198) (173,385) (11,022) (145,437)
-------- ----------- ------- ----------- ------- --------- ------- ---------
Net increase (decrease)..... (64,844) $ (798,476) 252,419 $ 3,293,670 8,450 $ 107,852 32,160 $ 426,406
======== =========== ======= =========== ======= ========= ======= =========
International Small-Cap Fund
-------------------------------------------
Class C
-------------------------------------------
For the
six months ended For the
March 31, 2008 year ended
(unaudited) September 30, 2007
--------------------- --------------------
Shares Amount Shares Amount
-------- ----------- ------- -----------
Shares sold................. 17,134 $ 227,610 152,986 $ 2,062,450
Reinvested dividends........ 4,084 52,562 -- --
Shares redeemed (3)(4)...... (81,460) (928,587) (72,183) (878,788)
-------- ----------- ------- -----------
Net increase (decrease)..... (60,242) $ (648,415) 80,803 $ 1,183,662
======== =========== ======= ===========
- --------
(1)For the six months ended March 31, 2008, includes automatic conversion of
2,232 shares of Class B shares in the amount of $26,898 to 2,210 shares of
Class A shares in the amount of $26,898.
(2)For the year ended September 30, 2007, includes automatic conversion of
6,170 shares of Class B shares in the amount of $82,165 to 6,131 shares of
Class A shares in the amount of $82,165.
(3)For the six months ended March 31, 2008, net of redemption fees of $1,288,
$53, and $227 for Class A, Class B, and Class C shares, respectively.
(4)For the year ended September 30, 2007, net of redemption fees of $1,504,
$47, and $218 for Class A, Class B, and Class C shares, respectively.
84
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited)
(continued)
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 six months ended March 31, 2008, the following
Funds had borrowings:
Days Interest Average Weighted
Portfolio Outstanding Charges Debt Average
Growth and Income...... 1 $ 130 $1,287,383 3.63%
Balanced Assets........ 6 427 480,844 5.32
International Equity... 8 719 636,517 4.84
Disciplined Growth..... 8 943 823,107 5.10
International Small-Cap 31 1,155 393,974 3.68
At March 31, 2008, there were no borrowings outstanding.
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 six months ended March 31, 2008, none of the
Funds participated in this program.
Note 11. Trustees Retirement Plan
The Trustees of the Trust 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%.
85
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited)
(continued)
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, 2008
- ---- -----------------------------------------------
Blue Chip Growth.............. $28,148 $ 908 $1,048
Growth Opportunities.......... 24,321 775 776
New Century................... 48,491 1,158 1,926
Growth and Income............. 38,330 1,382 1,103
Balanced Assets............... 75,986 1,958 3,036
International Equity.......... 19,308 1,631 571
Value......................... 34,110 2,768 918
Disciplined Growth............ 11,365 887 273
International Small-Cap Equity 617 367 --
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, 2008, the International Small-Cap
Fund had approximately 18% and 25% of their net assets invested in equity
securities of companies domiciled in United Kingdom and Japan, respectively.
Note 13. Other Matters
On December 31, 2007 Ernst & Young, LLP ("E&Y") resigned as the independent
registered public accounting firm of the Equity Funds. On March 5, 2008, the
Board of Trustees of the Equity Funds selected PricewaterhouseCoopers, LLP
as the new independent registered public accounting firm for the Equity
Funds.
E&Y's reports on the Equity Fund's financial statements for the two most
recent fiscal years contained no adverse opinion or disclaimer of opinion,
and were not qualified or modified as to uncertainty, audit scope or
accounting principles. During the period E&Y was engaged, there were no
disagreements with E&Y on any matter of accounting principles, financial
statement disclosure or auditing scope or procedures, which disagreements,
if not resolved to the satisfaction of E&Y, would have caused it to make
reference to the subject matter of the disagreements in connection with its
reports on the Equity Fund's financial statements.
86
[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
John T. Genoy, President Custodian and Transfer currently effective
and Chief Executive Agent pro-spectus, setting
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
Kathleen Fuentes, Information, may be residing at the same
Assistant Secretary obtained without charge "household." This
John E. McLean, upon request, by calling practice is called
Assistant Secretary (800) 858-8850. This householding and reduces
Richard Barton, in-formation is also Fund expenses, which
Assistant Secretary available from the EDGAR benefits you and other
Nori L. Gabert, Vice database on the U.S. shareholders. Unless the
President and Securities and Ex-change Funds receive
Assistant Secretary Commission's website at instructions to the
Matthew Hackethal, http://www.sec.gov. con-trary, you will only
Anti-Money Laundering receive one copy of the
Compliance Officer PROXY VOTING RECORD ON shareholder documents.
John E. Smith Jr., SUNAMERICA EQUITY FUNDS The Funds will continue
Assistant Treasurer Information regarding how to household the
SunAmerica Equity Funds share-holder documents
Investment Adviser voted proxies relating to indefinitely, until we
AIG SunAmerica Asset securities held in are instructed otherwise.
Management Corp. SunAmerica Equity Funds If you do not wish to
Harborside Financial during the most recent participate in
Center twelve month period ended householding, please
3200 Plaza 5 June 30 is available, contact Shareholder
Jersey City, NJ once filed with the U.S. Services at (800)
07311-4992 Securities and Exchange 858-8850 ext. 6010 or
Commission, without send a written request
Distributor charge, upon request, by with your name, the name
AIG SunAmerica Capital calling (800) 858-8850 or of your fund(s) and your
Services, Inc. on the U.S. Securities account number(s) to AIG
Harborside Financial and Exchange Commission's SunAmerica Mutual Funds
Center website at c/o BFDS, P.O. Box
3200 Plaza 5 http://www.sec.gov. 219186, Kansas City MO,
Jersey City, NJ 64121-9186. We will
07311-4992 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).
87
Distributed by:
AIG SunAmerica Capital Services, Inc.
Investors should carefully consider a Fund's investment objectives, risks,
charges and expenses before investing. The prospectus, containing this and
other important information, can be obtained from your financial adviser, the
AIG SunAmerica Sales Desk at 800-858-8850, ext. 6003, or at
www.sunamericafunds.com. Read the prospectus carefully before investing.
www.sunamericafunds.com
EQSAN - 3/08
[LOGO] AIG
Sun America
Mutual Funds
live longer retire stronger/sm/
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 registrant's
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/ John T. Genoy
------------------
John T. Genoy
President
Date: June 6, 2008
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/ John T. Genoy
------------------
John T. Genoy
President
Date: June 6, 2008
By: /s/ Donna M. Handel
-------------------
Donna M. Handel
Treasurer
Date: June 6, 2008