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
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: September 30, 2009
-------------------------
Item 1. Reports to Stockholders
[PHOTO]
ANNUAL REPORT 2009
SUNAMERICA
Equity Funds
[LOGO]
September 30, 2009 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...................... 12
FINANCIAL HIGHLIGHTS.................................... 15
PORTFOLIO OF INVESTMENTS................................ 24
NOTES TO FINANCIAL STATEMENTS........................... 68
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM. 94
APPROVAL OF ADVISORY AGREEMENTS......................... 95
TRUSTEE AND OFFICER INFORMATION......................... 101
SHAREHOLDER TAX INFORMATION............................. 104
COMPARISONS: FUNDS vs. INDEXES.......................... 107
Shareholder Letter
Dear Shareholder:
We are pleased to provide you with the Annual Report for SunAmerica Equity
Funds for the fiscal year ended September 30, 2009. On the following pages, you
will find the financial statements and Fund information for each of the
SunAmerica Equity Funds. You will also find detailed commentary from the
individual portfolio managers of the Funds.
During the market and economic turmoil at the beginning of the fiscal year, the
portfolio managers sought to maintain a relatively defensive posture and, as a
result, the funds were well-positioned to capitalize on the market recovery on
a year-to-date basis through the end of the period. You can read more
fund-specific information in the following pages.
The Funds' fiscal year, specifically the fourth quarter of 2008 continuing into
the early months of 2009, was a period of enormous economic uncertainty and
pessimism, as the U.S. and global economy continued to deteriorate.
Unemployment rose, housing prices plunged, credit markets deteriorated and
consumer confidence eroded. Despite massive government bailouts, stimulus
programs, interest rate reductions and other interventions--both in the U.S.
and abroad--virtually all assets classes faced a challenging investment
environment.
The markets abruptly changed course in March buoying many asset classes. Talk
of "green shoots," while not demonstrating economic growth, suggested that the
economy was stabilizing. The Federal government continued to actively
participate in the economy, initiating bankruptcy filings by Chrysler and
General Motors and introducing a wide-ranging proposal to reform regulations
for the financial markets.
This dichotomy was clearly illustrated in the markets. The total return for the
Standard & Poor's (S&P) 500(R) Index* was -6.91% for the entire twelve-month
fiscal year. In the first six months of the fiscal year, the S&P 500 returned
- -30.54%; while in the second half of the period it rebounded to return 34.02%.
Nevertheless, lingering concerns remained whether the economy would continue to
stabilize or return to declining growth as many of the recent improvements
occurred in the face of continuing weak economic data: job losses increased
more than expected with the unemployment rate approaching 10%; consumer
confidence and spending remained sluggish; and housing markets generally
continued to disappoint.
Continued uncertainty has understandably shaken the confidence of many
investors who may question their ability to make the right investment
decisions. But now, more than ever, it is important to stick to investment
fundamentals and have a long-term strategy. Meet with your financial adviser.
Review your goals and time horizons. Now is as good of a time as any to take
greater control of your financial future.
Thank you for your continued confidence in our ability to help you meet your
investment goals. If you have any questions regarding our products, please
contact your financial adviser or contact us directly at 800-858-8850 or
www.sunamericafunds.com.
Sincerely,
The SunAmerica Equity Funds Investment Professionals
John Massey Brendan Voege Andy Sheridan Robin Thorn
Steve Neimeth Karen Forte Jay Merchant Chantal Brennan
Jay Rushin Sarah Kallok Soraya Benitez Robert Vanden Assern
Ben Barrett Kara Murphy Mike Beaulieu
- --------
Past performance does not guarantee future results.
* The S&P 500 Index is Standard & Poor's 500 Composite Stock Price Index, a
widely recognized, unmanaged index of common stock prices. Indices are not
managed and an investor cannot invest directly into an index.
2
SunAmerica Equity Funds
EXPENSE EXAMPLE -- September 30, 2009 -- (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
shares of SunAmerica International Equity Fund and SunAmerica 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 April 1, 2009 and held until September 30, 2009.
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 September 30, 2009" 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 September
30, 2009" 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 September 30, 2009"
column does not include administrative fees that may apply to qualified
retirement plan accounts. See the Funds' prospectus, your retirement plan
document and/or materials from your financial adviser, for a full description
of these fees. Had these fees been included, the "Expenses Paid During the Six
Months Ended September 30, 2009" 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 September 30, 2009"
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 September 30, 2009" column does not
include administrative fees that may apply to qualified retirement plan
accounts. See the Funds' prospectus, your retirement plan document and/or
materials from your financial adviser, for a full description of these fees.
Had these fees been included, the "Expenses Paid During the Six Months Ended
September 30, 2009" 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 shares of SunAmerica International Equity Fund and
SunAmerica International Small-Cap Fund only); small account fees and
administrative fees, if applicable to your account. Please refer to the Fund's
prospectus, your retirement plan document and/or materials from your financial
adviser, 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 -- September 30, 2009 -- (unaudited) (continued)
Actual Hypothetical
------------------------------------------ ------------------------------------------
Ending Account
Ending Account Expense Paid Value using Expense Paid
Value Using During the a Hypothetical During the
Beginning Actual Six Months Beginning 5% Assumed Six Months
Account Value Return at Ended Account Value Return at Ended
at April 1, September 30, September 30, at April 1, September 30, September 30,
Fund 2009 2009 2009 2009 2009 2009
- ---- ------------- -------------- ------------- ------------- -------------- -------------
Blue Chip Growth Fund#@
Class A..................... $1,000.00 $1,295.76 $10.19 $1,000.00 $1,016.19 $ 8.95
Class B..................... $1,000.00 $1,291.93 $14.08 $1,000.00 $1,012.78 $12.36
Class C..................... $1,000.00 $1,291.84 $14.08 $1,000.00 $1,012.78 $12.36
Class I..................... $1,000.00 $1,299.12 $ 7.67 $1,000.00 $1,018.40 $ 6.73
Growth Opportunities Fund#@
Class A..................... $1,000.00 $1,448.28 $10.43 $1,000.00 $1,016.55 $ 8.59
Class B..................... $1,000.00 $1,445.07 $14.28 $1,000.00 $1,013.39 $11.76
Class C..................... $1,000.00 $1,444.32 $14.34 $1,000.00 $1,013.34 $11.81
Class I..................... $1,000.00 $1,453.41 $ 8.06 $1,000.00 $1,018.50 $ 6.63
New Century Fund#@
Class A..................... $1,000.00 $1,339.45 $10.15 $1,000.00 $1,016.39 $ 8.74
Class B..................... $1,000.00 $1,335.56 $13.70 $1,000.00 $1,013.34 $11.81
Class C..................... $1,000.00 $1,335.09 $12.41 $1,000.00 $1,014.44 $10.71
Growth and Income Fund#@
Class A..................... $1,000.00 $1,298.05 $ 9.91 $1,000.00 $1,016.44 $ 8.69
Class B..................... $1,000.00 $1,291.99 $14.08 $1,000.00 $1,012.78 $12.36
Class C..................... $1,000.00 $1,293.13 $13.74 $1,000.00 $1,013.09 $12.06
Class I..................... $1,000.00 $1,300.61 $ 7.61 $1,000.00 $1,018.45 $ 6.68
Balanced Assets Fund#@
Class A..................... $1,000.00 $1,225.65 $ 9.60 $1,000.00 $1,016.44 $ 8.69
Class B..................... $1,000.00 $1,221.70 $13.59 $1,000.00 $1,012.84 $12.31
Class C..................... $1,000.00 $1,221.26 $13.53 $1,000.00 $1,012.89 $12.26
Class I..................... $1,000.00 $1,228.94 $ 7.43 $1,000.00 $1,018.40 $ 6.73
International Equity Fund#@
Class A..................... $1,000.00 $1,486.52 $11.72 $1,000.00 $1,015.64 $ 9.50
Class B..................... $1,000.00 $1,482.71 $15.87 $1,000.00 $1,012.28 $12.86
Class C..................... $1,000.00 $1,481.99 $15.87 $1,000.00 $1,012.28 $12.86
Class I..................... $1,000.00 $1,488.52 $11.23 $1,000.00 $1,016.04 $ 9.10
Value Fund#@
Class A..................... $1,000.00 $1,292.22 $ 9.37 $1,000.00 $1,016.90 $ 8.24
Class B..................... $1,000.00 $1,289.54 $13.09 $1,000.00 $1,013.64 $11.51
Class C..................... $1,000.00 $1,288.27 $13.08 $1,000.00 $1,013.64 $11.51
Class I..................... $1,000.00 $1,292.92 $ 8.79 $1,000.00 $1,017.40 $ 7.74
Class Z..................... $1,000.00 $1,296.80 $ 6.10 $1,000.00 $1,019.75 $ 5.37
Disciplined Growth Fund#@
Class A..................... $1,000.00 $1,281.52 $ 8.29 $1,000.00 $1,017.80 $ 7.33
Class B..................... $1,000.00 $1,277.20 $11.99 $1,000.00 $1,014.54 $10.61
Class C..................... $1,000.00 $1,278.14 $11.99 $1,000.00 $1,014.54 $10.61
International Small-Cap Fund#
Class A..................... $1,000.00 $1,476.11 $11.79 $1,000.00 $1,015.54 $ 9.60
Class B..................... $1,000.00 $1,472.07 $15.80 $1,000.00 $1,012.28 $12.86
Class C..................... $1,000.00 $1,470.27 $15.79 $1,000.00 $1,012.28 $12.86
Expense
Ratio
as of
September 30,
Fund 2009*
- ---- -------------
Blue Chip Growth Fund#@
Class A..................... 1.77%
Class B..................... 2.45%
Class C..................... 2.45%
Class I..................... 1.33%
Growth Opportunities Fund#@
Class A..................... 1.70%
Class B..................... 2.33%
Class C..................... 2.34%
Class I..................... 1.31%
New Century Fund#@
Class A..................... 1.73%
Class B..................... 2.34%
Class C..................... 2.12%
Growth and Income Fund#@
Class A..................... 1.72%
Class B..................... 2.45%
Class C..................... 2.39%
Class I..................... 1.32%
Balanced Assets Fund#@
Class A..................... 1.72%
Class B..................... 2.44%
Class C..................... 2.43%
Class I..................... 1.33%
International Equity Fund#@
Class A..................... 1.88%
Class B..................... 2.55%
Class C..................... 2.55%
Class I..................... 1.80%
Value Fund#@
Class A..................... 1.63%
Class B..................... 2.28%
Class C..................... 2.28%
Class I..................... 1.53%
Class Z..................... 1.06%
Disciplined Growth Fund#@
Class A..................... 1.45%
Class B..................... 2.10%
Class C..................... 2.10%
International Small-Cap Fund#
Class A..................... 1.90%
Class B..................... 2.55%
Class C..................... 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 365
days. These ratios do not reflect transaction costs, including sales charges
on purchase payments, contingent deferred sales charges, redemption fees
(International Equity Fund and International Small-Cap Fund only), small
account fees and administrative fees, if applicable to your account. Please
refer to your Prospectus and/or qualified retirement plan document for more
information.
# During the stated period, the investment adviser either waived a portion of
or all of the fees and assumed a portion of or all expenses for the Funds or
through recoupment provisions, recovered a portion of or all fees and
expenses waived or reimbursed in the previous two fiscal years. As a result,
if these fees and expenses had not been waived or assumed, the
"Actual/Hypothetical Ending Account Value" would have been lower and the
"Actual/Hypothetical Expenses Paid During the Six Months Ended September 30,
2009" 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 September 30, 2009" 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 -- September 30, 2009 -- (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 April 1, September 30, September 30, at April 1, September 30, September 30, September 30,
Fund 2009 2009 2009 2009 2009 2009 2009*
- ---- ------------- -------------- ------------- ------------- -------------- ------------- -------------
Blue Chip Growth Fund#
Class A.................. $1,000.00 $1,295.76 $10.19 $1,000.00 $1,016.19 $ 8.95 1.77%
Class B.................. $1,000.00 $1,291.93 $14.08 $1,000.00 $1,012.78 $12.36 2.45%
Class C.................. $1,000.00 $1,291.84 $14.08 $1,000.00 $1,012.78 $12.36 2.45%
Class I.................. $1,000.00 $1,299.12 $ 7.67 $1,000.00 $1,018.40 $ 6.73 1.33%
Growth Opportunities Fund#
Class A.................. $1,000.00 $1,448.28 $10.31 $1,000.00 $1,016.65 $ 8.49 1.68%
Class B.................. $1,000.00 $1,445.07 $14.22 $1,000.00 $1,013.44 $11.71 2.32%
Class C.................. $1,000.00 $1,444.32 $14.28 $1,000.00 $1,013.39 $11.76 2.33%
Class I.................. $1,000.00 $1,453.41 $ 8.00 $1,000.00 $1,018.55 $ 6.58 1.30%
New Century Fund#
Class A.................. $1,000.00 $1,339.45 $10.03 $1,000.00 $1,016.50 $ 8.64 1.71%
Class B.................. $1,000.00 $1,335.56 $13.58 $1,000.00 $1,013.44 $11.71 2.32%
Class C.................. $1,000.00 $1,335.09 $12.29 $1,000.00 $1,014.54 $10.61 2.10%
Growth and Income Fund#
Class A.................. $1,000.00 $1,298.05 $ 9.85 $1,000.00 $1,016.50 $ 8.64 1.71%
Class B.................. $1,000.00 $1,291.99 $14.02 $1,000.00 $1,012.84 $12.31 2.44%
Class C.................. $1,000.00 $1,293.13 $13.68 $1,000.00 $1,013.14 $12.01 2.38%
Class I.................. $1,000.00 $1,300.61 $ 7.56 $1,000.00 $1,018.50 $ 6.63 1.31%
Balanced Assets Fund#
Class A.................. $1,000.00 $1,225.65 $ 9.54 $1,000.00 $1,016.50 $ 8.64 1.71%
Class B.................. $1,000.00 $1,221.70 $13.53 $1,000.00 $1,012.89 $12.26 2.43%
Class C.................. $1,000.00 $1,221.26 $13.48 $1,000.00 $1,012.94 $12.21 2.42%
Class I.................. $1,000.00 $1,228.94 $ 7.38 $1,000.00 $1,018.45 $ 6.68 1.32%
International Equity Fund#
Class A.................. $1,000.00 $1,486.52 $11.72 $1,000.00 $1,015.64 $ 9.50 1.88%
Class B.................. $1,000.00 $1,482.71 $15.87 $1,000.00 $1,012.28 $12.86 2.55%
Class C.................. $1,000.00 $1,481.99 $15.87 $1,000.00 $1,012.28 $12.86 2.55%
Class I.................. $1,000.00 $1,488.52 $11.23 $1,000.00 $1,016.04 $ 9.10 1.80%
Value Fund#
Class A.................. $1,000.00 $1,292.22 $ 9.25 $1,000.00 $1,017.00 $ 8.14 1.61%
Class B.................. $1,000.00 $1,289.54 $12.97 $1,000.00 $1,013.74 $11.41 2.26%
Class C.................. $1,000.00 $1,288.27 $12.96 $1,000.00 $1,013.74 $11.41 2.26%
Class I.................. $1,000.00 $1,292.92 $ 8.68 $1,000.00 $1,017.50 $ 7.64 1.51%
Class Z.................. $1,000.00 $1,296.80 $ 5.99 $1,000.00 $1,019.85 $ 5.27 1.04%
Disciplined Growth Fund#
Class A.................. $1,000.00 $1,281.52 $ 8.29 $1,000.00 $1,017.80 $ 7.33 1.45%
Class B.................. $1,000.00 $1,277.20 $11.99 $1,000.00 $1,014.54 $10.61 2.10%
Class C.................. $1,000.00 $1,278.14 $11.99 $1,000.00 $1,014.54 $10.61 2.10%
5
SunAmerica Equity Funds
STATEMENT OF ASSETS AND LIABILITIES -- September 30, 2009
Growth
Blue Chip Opportunities New Century
Growth Fund Fund Fund
------------ ------------- -------------
ASSETS:
Long-term investment securities, at market value (unaffiliated)*........... $ 41,055,370 $ 25,046,238 $ 29,690,096
Short-term investment securities, at market value (unaffiliated)*.......... -- -- --
Repurchase agreements (cost approximates market value)..................... 1,005,000 8,073,000 7,753,000
------------ ------------- -------------
Total investments........................................................ 42,060,370 33,119,238 37,443,096
------------ ------------- -------------
Cash....................................................................... 703 242 663
Foreign cash*.............................................................. -- -- --
Receivable for:
Fund shares sold......................................................... 677 48,168 1,077
Dividends and interest................................................... 15,788 3,400 5,550
Investments sold......................................................... 281,486 504,675 590,642
Prepaid expenses and other assets.......................................... 4,562 4,275 41,077
Due from investment adviser for expense reimbursements/fee waivers......... 1,102 5,391 2,453
------------ ------------- -------------
Total assets............................................................... 42,364,688 33,685,389 38,084,558
------------ ------------- -------------
LIABILITIES:
Payable for:
Fund shares redeemed..................................................... 6,683 112,315 35,769
Investments purchased.................................................... 123,664 459,550 518,905
Investment advisory and management fees.................................. 25,665 19,631 22,684
Distribution and service maintenance fees................................ 15,832 13,345 12,968
Transfer agent fees and expenses......................................... 18,230 15,798 20,989
Trustees' fees and expenses.............................................. 4,843 3,708 8,036
Other accrued expenses................................................... 76,425 83,736 99,406
Accrued foreign tax on capital gains..................................... -- -- --
------------ ------------- -------------
Total liabilities.......................................................... 271,342 708,083 718,757
------------ ------------- -------------
Net Assets................................................................. $ 42,093,346 $ 32,977,306 $ 37,365,801
============ ============= =============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $0.01 par value............................. $ 30,068 $ 23,250 $ 32,616
Paid-in capital............................................................ 100,443,295 235,037,023 158,058,431
------------ ------------- -------------
100,473,363 235,060,273 158,091,047
Accumulated undistributed net investment income (loss)..................... (4,351) (3,979) (7,488)
Accumulated undistributed net realized gain (loss) on investments, futures
contracts, options contracts, securities sold short, and foreign exchange
transactions.............................................................. (60,513,958) (204,355,076) (123,151,622)
Unrealized appreciation (depreciation) on investments...................... 2,138,292 2,276,088 2,433,864
Unrealized foreign exchange gain (loss) on other assets and liabilities.... -- -- --
Accrued capital gains tax on unrealized appreciation (depreciation)........ -- -- --
------------ ------------- -------------
Net Assets................................................................. $ 42,093,346 $ 32,977,306 $ 37,365,801
============ ============= =============
*Cost
Long-term investment securities (unaffiliated)........................... $ 38,917,078 $ 22,770,150 $ 27,256,232
============ ============= =============
Short-term investment securities (unaffiliated).......................... $ -- $ -- $ --
============ ============= =============
Foreign cash............................................................. $ -- $ -- $ --
============ ============= =============
Growth and Balanced
Income Fund Assets Fund
------------ ------------
ASSETS:
Long-term investment securities, at market value (unaffiliated)*........... $ 51,535,953 $ 85,284,783
Short-term investment securities, at market value (unaffiliated)*.......... -- --
Repurchase agreements (cost approximates market value)..................... 404,000 4,205,000
------------ ------------
Total investments........................................................ 51,939,953 89,489,783
------------ ------------
Cash....................................................................... 649 2,911
Foreign cash*.............................................................. -- --
Receivable for:
Fund shares sold......................................................... 20,083 12,103
Dividends and interest................................................... 86,617 463,211
Investments sold......................................................... 186,325 754,004
Prepaid expenses and other assets.......................................... 3,323 3,291
Due from investment adviser for expense reimbursements/fee waivers......... 219 292
------------ ------------
Total assets............................................................... 52,237,169 90,725,595
------------ ------------
LIABILITIES:
Payable for:
Fund shares redeemed..................................................... 56,291 45,001
Investments purchased.................................................... -- 1,211,600
Investment advisory and management fees.................................. 31,899 54,573
Distribution and service maintenance fees................................ 23,243 32,773
Transfer agent fees and expenses......................................... 24,823 35,723
Trustees' fees and expenses.............................................. 5,314 12,054
Other accrued expenses................................................... 73,496 112,968
Accrued foreign tax on capital gains..................................... -- --
------------ ------------
Total liabilities.......................................................... 215,066 1,504,692
------------ ------------
Net Assets................................................................. $ 52,022,103 $ 89,220,903
============ ============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $0.01 par value............................. $ 49,789 $ 71,822
Paid-in capital............................................................ 110,506,205 177,376,190
------------ ------------
110,555,994 177,448,012
Accumulated undistributed net investment income (loss)..................... 425,791 51,721
Accumulated undistributed net realized gain (loss) on investments, futures
contracts, options contracts, securities sold short, and foreign exchange
transactions.............................................................. (61,137,303) (91,075,512)
Unrealized appreciation (depreciation) on investments...................... 2,177,621 2,796,682
Unrealized foreign exchange gain (loss) on other assets and liabilities.... -- --
Accrued capital gains tax on unrealized appreciation (depreciation)........ -- --
------------ ------------
Net Assets................................................................. $ 52,022,103 $ 89,220,903
============ ============
*Cost
Long-term investment securities (unaffiliated)........................... $ 49,358,332 $ 82,488,101
============ ============
Short-term investment securities (unaffiliated).......................... $ -- $ --
============ ============
Foreign cash............................................................. $ -- $ --
============ ============
See Notes to Financial Statements
6
SunAmerica Equity Funds
STATEMENT OF ASSETS AND LIABILITIES -- September 30, 2009 -- (continued)
Growth
Blue Chip Opportunities New Century
Growth Fund Fund Fund
----------- ------------- -----------
Class A (unlimited shares authorized):
Net assets......................................................................... $34,503,105 $25,063,391 $32,900,528
Shares of beneficial interest issued and outstanding............................... 2,401,105 1,704,499 2,817,030
Net asset value and redemption price per share..................................... $ 14.37 $ 14.70 $ 11.68
Maximum sales charge (5.75% of offering price)..................................... 0.88 0.90 0.71
----------- ----------- -----------
Maximum offering price to public................................................... $ 15.25 $ 15.60 $ 12.39
=========== =========== ===========
Class B (unlimited shares authorized):
Net assets......................................................................... $ 4,871,885 $ 4,298,191 $ 2,566,115
Shares of beneficial interest issued and outstanding............................... 390,487 336,931 256,958
Net asset value, offering and redemption price per share (excluding any applicable
contingent deferred sales charge.................................................. $ 12.48 $ 12.76 $ 9.99
=========== =========== ===========
Class C (unlimited shares authorized):
Net assets......................................................................... $ 2,342,974 $ 3,545,510 $ 1,899,158
Shares of beneficial interest issued and outstanding............................... 189,680 278,892 187,605
Net asset value, offering and redemption price per share (excluding any applicable
contingent deferred sales charge)................................................. $ 12.35 $ 12.71 $ 10.12
=========== =========== ===========
Class I (unlimited shares authorized):
Net assets......................................................................... $ 375,382 $ 70,214 $ --
Shares of beneficial interest issued and outstanding............................... 25,566 4,642 --
Net asset value, offering and redemption price per share........................... $ 14.68 $ 15.13 $ --
=========== =========== ===========
Class Z (unlimited shares authorized):
Net assets......................................................................... $ -- $ -- $ --
Shares of beneficial interest issued and outstanding............................... -- -- --
Net asset value, offering and redemption price per share........................... $ -- $ -- $ --
=========== =========== ===========
Growth and Balanced
Income Fund Assets Fund
----------- -----------
Class A (unlimited shares authorized):
Net assets......................................................................... $36,094,633 $74,938,352
Shares of beneficial interest issued and outstanding............................... 3,383,624 6,031,924
Net asset value and redemption price per share..................................... $ 10.67 $ 12.42
Maximum sales charge (5.75% of offering price)..................................... 0.65 0.76
----------- -----------
Maximum offering price to public................................................... $ 11.32 $ 13.18
=========== ===========
Class B (unlimited shares authorized):
Net assets......................................................................... $ 5,178,250 $ 6,256,446
Shares of beneficial interest issued and outstanding............................... 517,811 504,353
Net asset value, offering and redemption price per share (excluding any applicable
contingent deferred sales charge.................................................. $ 10.00 $ 12.40
=========== ===========
Class C (unlimited shares authorized):
Net assets......................................................................... $10,580,968 $ 7,534,803
Shares of beneficial interest issued and outstanding............................... 1,061,749 606,431
Net asset value, offering and redemption price per share (excluding any applicable
contingent deferred sales charge)................................................. $ 9.97 $ 12.42
=========== ===========
Class I (unlimited shares authorized):
Net assets......................................................................... $ 168,252 $ 491,302
Shares of beneficial interest issued and outstanding............................... 15,681 39,521
Net asset value, offering and redemption price per share........................... $ 10.73 $ 12.43
=========== ===========
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 -- September 30, 2009 -- (continued)
International
Equity Fund Value Fund
------------- ------------
ASSETS:
Long-term investment securities, at market value (unaffiliated)*.............................. $ 160,054,220 $ 93,050,457
Short-term investment securities, at market value (unaffiliated)*............................. -- --
Repurchase agreements (cost approximates market value)........................................ 2,725,000 1,783,000
------------- ------------
Total investments........................................................................... 162,779,220 94,833,457
------------- ------------
Cash.......................................................................................... 943 853
Foreign cash*................................................................................. 679,282 --
Receivable for:
Fund shares sold............................................................................ 115,224 794
Dividends and interest...................................................................... 696,285 181,012
Investments sold............................................................................ 6,342,299 --
Prepaid expenses and other assets............................................................. 3,910 15,850
Due from investment adviser for expense reimbursements/fee waivers............................ 3,526 8,503
------------- ------------
Total assets.................................................................................. 170,620,689 95,040,469
------------- ------------
LIABILITIES:
Payable for:
Fund shares redeemed........................................................................ 413,860 244,461
Investments purchased....................................................................... 4,549,777 701,108
Investment advisory and management fees..................................................... 134,517 77,168
Distribution and service maintenance fees................................................... 66,931 32,110
Transfer agent fees and expenses............................................................ 54,019 34,200
Trustees' fees and expenses................................................................. 3,901 5,022
Other accrued expenses...................................................................... 142,674 82,236
Accrued foreign tax on capital gains........................................................ 29,518 --
------------- ------------
Total liabilities............................................................................. 5,395,197 1,176,305
------------- ------------
Net Assets.................................................................................... $ 165,225,492 $ 93,864,164
============= ============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $0.01 par value................................................ $ 145,309 $ 87,300
Paid-in capital............................................................................... 267,043,190 145,809,647
------------- ------------
267,188,499 145,896,947
Accumulated undistributed net investment income (loss)........................................ (19,128) 795,352
Accumulated undistributed net realized gain (loss) on investments, futures contracts, options
contracts, securities sold short, and foreign exchange transactions.......................... (121,170,750) (56,226,851)
Unrealized appreciation (depreciation) on investments......................................... 19,238,061 3,398,716
Unrealized foreign exchange gain (loss) on other assets and liabilities....................... 18,328 --
Accrued capital gains tax on unrealized appreciation (depreciation)........................... (29,518) --
------------- ------------
Net Assets.................................................................................... $ 165,225,492 $ 93,864,164
============= ============
*Cost
Long-term investment securities (unaffiliated).............................................. $ 140,816,159 $ 89,651,741
============= ============
Short-term investment securities (unaffiliated)............................................. $ -- $ --
============= ============
Foreign cash................................................................................ $ 670,085 $ --
============= ============
Disciplined International
Growth Fund Small-Cap Fund
------------ --------------
ASSETS:
Long-term investment securities, at market value (unaffiliated)*.............................. $ 24,019,882 $ 66,097,988
Short-term investment securities, at market value (unaffiliated)*............................. -- 2,972,000
Repurchase agreements (cost approximates market value)........................................ 160,000 --
------------ ------------
Total investments........................................................................... 24,179,882 69,069,988
------------ ------------
Cash.......................................................................................... 668 469
Foreign cash*................................................................................. 56,999 505,782
Receivable for:
Fund shares sold............................................................................ 89 233
Dividends and interest...................................................................... 24,159 126,355
Investments sold............................................................................ -- 61,153
Prepaid expenses and other assets............................................................. 22,099 2,340
Due from investment adviser for expense reimbursements/fee waivers............................ 10,516 30,400
------------ ------------
Total assets.................................................................................. 24,294,412 69,796,720
------------ ------------
LIABILITIES:
Payable for:
Fund shares redeemed........................................................................ 51,760 33,721
Investments purchased....................................................................... -- 36,625
Investment advisory and management fees..................................................... 16,782 64,552
Distribution and service maintenance fees................................................... 12,621 20,182
Transfer agent fees and expenses............................................................ 6,791 14,225
Trustees' fees and expenses................................................................. 1,985 314
Other accrued expenses...................................................................... 62,216 87,493
Accrued foreign tax on capital gains........................................................ -- 11,198
------------ ------------
Total liabilities............................................................................. 152,155 268,310
------------ ------------
Net Assets.................................................................................... $ 24,142,257 $ 69,528,410
============ ============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $0.01 par value................................................ $ 23,679 $ 83,401
Paid-in capital............................................................................... 64,141,452 65,715,203
------------ ------------
64,165,131 65,798,604
Accumulated undistributed net investment income (loss)........................................ 14,622 539,348
Accumulated undistributed net realized gain (loss) on investments, futures contracts, options
contracts, securities sold short, and foreign exchange transactions.......................... (43,467,657) (12,582,645)
Unrealized appreciation (depreciation) on investments......................................... 3,426,340 15,777,324
Unrealized foreign exchange gain (loss) on other assets and liabilities....................... 3,821 6,911
Accrued capital gains tax on unrealized appreciation (depreciation)........................... -- (11,132)
------------ ------------
Net Assets.................................................................................... $ 24,142,257 $ 69,528,410
============ ============
*Cost
Long-term investment securities (unaffiliated).............................................. $ 20,593,542 $ 50,320,664
============ ============
Short-term investment securities (unaffiliated)............................................. $ -- $ 2,972,000
============ ============
Foreign cash................................................................................ $ 53,266 $ 499,832
============ ============
See Notes to Financial Statements
8
SunAmerica Equity Funds
STATEMENT OF ASSETS AND LIABILITIES -- September 30, 2009 -- (continued)
International
Equity Fund Value Fund
------------- -----------
Class A (unlimited shares authorized):
Net assets............................................................................................. $122,342,612 $52,112,252
Shares of beneficial interest issued and outstanding................................................... 10,562,742 4,829,038
Net asset value and redemption price per share......................................................... $ 11.58 $ 10.79
Maximum sales charge (5.75% of offering price)......................................................... 0.71 0.66
------------ -----------
Maximum offering price to public....................................................................... $ 12.29 $ 11.45
============ ===========
Class B (unlimited shares authorized):
Net assets............................................................................................. $ 12,960,300 $11,212,888
Shares of beneficial interest issued and outstanding................................................... 1,209,270 1,109,451
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred
sales charge.......................................................................................... $ 10.72 $ 10.11
============ ===========
Class C (unlimited shares authorized):
Net assets............................................................................................. $ 25,123,425 $ 9,385,692
Shares of beneficial interest issued and outstanding................................................... 2,347,551 928,961
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred
sales charge)......................................................................................... $ 10.70 $ 10.10
============ ===========
Class I (unlimited shares authorized):
Net assets............................................................................................. $ 4,799,155 $ 14,849
Shares of beneficial interest issued and outstanding................................................... 411,301 1,379
Net asset value, offering and redemption price per share............................................... $ 11.67 $ 10.77
============ ===========
Class Z (unlimited shares authorized):
Net assets............................................................................................. $ -- $21,138,483
Shares of beneficial interest issued and outstanding................................................... -- 1,861,200
Net asset value, offering and redemption price per share............................................... $ -- $ 11.36
============ ===========
Disciplined
Growth Fund
-----------
Class A (unlimited shares authorized):
Net assets............................................................................................. $13,397,890
Shares of beneficial interest issued and outstanding................................................... 1,279,638
Net asset value and redemption price per share......................................................... $ 10.47
Maximum sales charge (5.75% of offering price)......................................................... 0.64
-----------
Maximum offering price to public....................................................................... $ 11.11
===========
Class B (unlimited shares authorized):
Net assets............................................................................................. $ 1,630,654
Shares of beneficial interest issued and outstanding................................................... 165,314
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred
sales charge.......................................................................................... $ 9.86
===========
Class C (unlimited shares authorized):
Net assets............................................................................................. $ 9,113,713
Shares of beneficial interest issued and outstanding................................................... 922,899
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred
sales charge)......................................................................................... $ 9.88
===========
Class I (unlimited shares authorized):
Net assets............................................................................................. $ --
Shares of beneficial interest issued and outstanding................................................... --
Net asset value, offering and redemption price per share............................................... $ --
===========
Class Z (unlimited shares authorized):
Net assets............................................................................................. $ --
Shares of beneficial interest issued and outstanding................................................... --
Net asset value, offering and redemption price per share............................................... $ --
===========
International
Small-Cap Fund
--------------
Class A (unlimited shares authorized):
Net assets............................................................................................. $68,491,528
Shares of beneficial interest issued and outstanding................................................... 8,213,108
Net asset value and redemption price per share......................................................... $ 8.34
Maximum sales charge (5.75% of offering price)......................................................... 0.51
-----------
Maximum offering price to public....................................................................... $ 8.85
===========
Class B (unlimited shares authorized):
Net assets............................................................................................. $ 312,840
Shares of beneficial interest issued and outstanding................................................... 38,310
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred
sales charge.......................................................................................... $ 8.17
===========
Class C (unlimited shares authorized):
Net assets............................................................................................. $ 724,042
Shares of beneficial interest issued and outstanding................................................... 88,731
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred
sales charge)......................................................................................... $ 8.16
===========
Class I (unlimited shares authorized):
Net assets............................................................................................. $ --
Shares of beneficial interest issued and outstanding................................................... --
Net asset value, offering and redemption price per share............................................... $ --
===========
Class Z (unlimited shares authorized):
Net assets............................................................................................. $ --
Shares of beneficial interest issued and outstanding................................................... --
Net asset value, offering and redemption price per share............................................... $ --
===========
See Notes to Financial Statements
9
SunAmerica Equity Funds
STATEMENT OF OPERATIONS -- For the year ended September 30, 2009
Growth
Blue Chip Opportunities
Growth Fund Fund
----------- -------------
INVESTMENT INCOME:
Dividends (unaffiliated)................................................................... $ 503,515 $ 117,465
Interest (unaffiliated).................................................................... 269 2,211
----------- ----------
Total investment income*.................................................................. 503,784 119,676
----------- ----------
EXPENSES:
Investment advisory and management fees.................................................... 279,284 193,568
Distribution and service maintenance fees:
Class A................................................................................... 103,857 64,563
Class B................................................................................... 50,633 43,630
Class C................................................................................... 21,146 29,423
Service fees Class I....................................................................... 966 143
Transfer agent fees and expenses:
Class A................................................................................... 97,075 70,039
Class B................................................................................... 20,143 18,758
Class C................................................................................... 7,634 11,986
Class I................................................................................... 1,434 304
Registration fees:
Class A................................................................................... 15,458 14,203
Class B................................................................................... 10,312 10,891
Class C................................................................................... 9,732 9,214
Class I................................................................................... 10,629 8,711
Class Z................................................................................... -- --
Custodian and accounting fees.............................................................. 36,177 52,059
Reports to shareholders.................................................................... 27,862 21,330
Audit and tax fees......................................................................... 36,805 36,805
Legal fees................................................................................. 8,597 8,242
Trustees' fees and expenses................................................................ 5,212 3,144
Interest expense........................................................................... -- 256
Other expenses............................................................................. 18,784 17,809
----------- ----------
Total expenses before fee waivers, expense reimbursements, expense recoupments,
custody credits and fees paid indirectly................................................. 761,740 615,078
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4)......... (32,114) (71,154)
Custody credits earned on cash balances................................................... (1) (59)
Fees paid indirectly (Note 5)............................................................. (556) (6,864)
----------- ----------
Net expenses.............................................................................. 729,069 537,001
----------- ----------
Net investment income (loss)................................................................. (225,285) (417,325)
----------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)....................................... (7,078,801) (156,423)
Net realized foreign exchange gain (loss) on other assets and liabilities.................... -- --
Net realized gain (loss) on disposal of investments in violation of investments restrictions
(Note 4).................................................................................... 6 --
----------- ----------
Net realized gain (loss) on investments and foreign currencies............................... (7,078,795) (156,423)
----------- ----------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)............... 4,376,262 3,864,933
Change in unrealized foreign exchange gain (loss) on other assets and liabilities............ -- --
Change in accrued capital gains tax on unrealized appreciation (depreciation)................ -- --
----------- ----------
Net unrealized gain (loss) on investments and foreign currencies............................. 4,376,262 3,864,933
----------- ----------
Net realized and unrealized gain (loss) on investments and foreign currencies................ (2,702,533) 3,708,510
----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.............................. $(2,927,818) $3,291,185
=========== ==========
- --------
*Net of foreign withholding taxes on interest and dividends of............................... $ 1,773 $ --
=========== ==========
New Century Growth and
Fund Income Fund
----------- ------------
INVESTMENT INCOME:
Dividends (unaffiliated)................................................................... $ 343,692 $ 1,436,100
Interest (unaffiliated).................................................................... 3,064 299
----------- ------------
Total investment income*.................................................................. 346,756 1,436,399
----------- ------------
EXPENSES:
Investment advisory and management fees.................................................... 254,584 372,540
Distribution and service maintenance fees:
Class A................................................................................... 103,728 117,714
Class B................................................................................... 25,572 57,179
Class C................................................................................... 17,508 101,493
Service fees Class I....................................................................... -- 431
Transfer agent fees and expenses:
Class A................................................................................... 102,800 108,553
Class B................................................................................... 11,670 21,893
Class C................................................................................... 7,867 31,466
Class I................................................................................... -- 462
Registration fees:
Class A................................................................................... 15,031 15,009
Class B................................................................................... 8,816 10,398
Class C................................................................................... 9,626 10,872
Class I................................................................................... -- 8,675
Class Z................................................................................... -- --
Custodian and accounting fees.............................................................. 30,398 35,195
Reports to shareholders.................................................................... 45,619 32,797
Audit and tax fees......................................................................... 36,741 36,817
Legal fees................................................................................. 8,840 9,189
Trustees' fees and expenses................................................................ 4,967 6,880
Interest expense........................................................................... -- --
Other expenses............................................................................. 18,447 18,400
----------- ------------
Total expenses before fee waivers, expense reimbursements, expense recoupments,
custody credits and fees paid indirectly................................................. 702,214 995,963
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4)......... (62,679) (19,864)
Custody credits earned on cash balances................................................... (19) --
Fees paid indirectly (Note 5)............................................................. (10,414) (3,710)
----------- ------------
Net expenses.............................................................................. 629,102 972,389
----------- ------------
Net investment income (loss)................................................................. (282,346) 464,010
----------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)....................................... (7,941,225) (20,650,111)
Net realized foreign exchange gain (loss) on other assets and liabilities.................... -- --
Net realized gain (loss) on disposal of investments in violation of investments restrictions
(Note 4).................................................................................... -- --
----------- ------------
Net realized gain (loss) on investments and foreign currencies............................... (7,941,225) (20,650,111)
----------- ------------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)............... 3,998,483 9,591,186
Change in unrealized foreign exchange gain (loss) on other assets and liabilities............ -- --
Change in accrued capital gains tax on unrealized appreciation (depreciation)................ -- --
----------- ------------
Net unrealized gain (loss) on investments and foreign currencies............................. 3,998,483 9,591,186
----------- ------------
Net realized and unrealized gain (loss) on investments and foreign currencies................ (3,942,742) (11,058,925)
----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.............................. $(4,225,088) $(10,594,915)
=========== ============
- --------
*Net of foreign withholding taxes on interest and dividends of............................... $ 2,098 $ 1,326
=========== ============
Balanced
Assets Fund
------------
INVESTMENT INCOME:
Dividends (unaffiliated)................................................................... $ 1,163,895
Interest (unaffiliated).................................................................... 2,156,443
------------
Total investment income*.................................................................. 3,320,338
------------
EXPENSES:
Investment advisory and management fees.................................................... 639,352
Distribution and service maintenance fees:
Class A................................................................................... 247,985
Class B................................................................................... 66,000
Class C................................................................................... 73,537
Service fees Class I....................................................................... 1,101
Transfer agent fees and expenses:
Class A................................................................................... 225,377
Class B................................................................................... 23,246
Class C................................................................................... 21,524
Class I................................................................................... 1,187
Registration fees:
Class A................................................................................... 17,928
Class B................................................................................... 10,344
Class C................................................................................... 10,101
Class I................................................................................... 8,725
Class Z................................................................................... --
Custodian and accounting fees.............................................................. 117,704
Reports to shareholders.................................................................... 44,973
Audit and tax fees......................................................................... 39,776
Legal fees................................................................................. 10,281
Trustees' fees and expenses................................................................ 11,200
Interest expense........................................................................... 96
Other expenses............................................................................. 25,888
------------
Total expenses before fee waivers, expense reimbursements, expense recoupments,
custody credits and fees paid indirectly................................................. 1,596,325
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4)......... (22,785)
Custody credits earned on cash balances................................................... (2)
Fees paid indirectly (Note 5)............................................................. (4,572)
------------
Net expenses.............................................................................. 1,568,966
------------
Net investment income (loss)................................................................. 1,751,372
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)....................................... (16,628,715)
Net realized foreign exchange gain (loss) on other assets and liabilities.................... --
Net realized gain (loss) on disposal of investments in violation of investments restrictions
(Note 4).................................................................................... --
------------
Net realized gain (loss) on investments and foreign currencies............................... (16,628,715)
------------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)............... 9,960,910
Change in unrealized foreign exchange gain (loss) on other assets and liabilities............ --
Change in accrued capital gains tax on unrealized appreciation (depreciation)................ --
------------
Net unrealized gain (loss) on investments and foreign currencies............................. 9,960,910
------------
Net realized and unrealized gain (loss) on investments and foreign currencies................ (6,667,805)
------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.............................. $ (4,916,433)
============
- --------
*Net of foreign withholding taxes on interest and dividends of............................... $ 801
============
See Notes to Financial Statements
10
SunAmerica Equity Funds
STATEMENT OF OPERATIONS -- For the year ended September 30, 2009 --
(continued)
International
Equity Fund
-------------
INVESTMENT INCOME:
Dividends (unaffiliated)............................................................................ $ 3,502,117
Interest (unaffiliated)............................................................................. 392
------------
Total investment income*........................................................................... 3,502,509
------------
EXPENSES:
Investment advisory and management fees............................................................. 1,169,035
Distribution and service maintenance fees:
Class A............................................................................................ 295,133
Class B............................................................................................ 102,444
Class C............................................................................................ 184,854
Service fees Class I................................................................................ 9,625
Transfer agent fees and expenses:
Class A............................................................................................ 236,563
Class B............................................................................................ 42,261
Class C............................................................................................ 61,010
Class I............................................................................................ 9,945
Registration fees:
Class A............................................................................................ 16,435
Class B............................................................................................ 10,190
Class C............................................................................................ 10,297
Class I............................................................................................ 10,397
Class Z............................................................................................ --
Custodian and accounting fees....................................................................... 140,636
Reports to shareholders............................................................................. 51,495
Audit and tax fees.................................................................................. 45,142
Legal fees.......................................................................................... 8,985
Trustees' fees and expenses......................................................................... 11,545
Interest expense.................................................................................... 169
Other expenses...................................................................................... 24,092
------------
Total expenses before fee waivers, expense reimbursements, expense recoupments, custody credits
and fees paid indirectly.......................................................................... 2,440,253
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4).................. (49,078)
Custody credits earned on cash balances............................................................ (20)
Fees paid indirectly (Note 5)...................................................................... (626)
------------
Net expenses....................................................................................... 2,390,529
------------
Net investment income (loss).......................................................................... 1,111,980
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)................................................ (43,994,572)
Net realized foreign exchange gain (loss) on other assets and liabilities............................. (113,717)
Net realized gain (loss) on disposal of investments in violation of investments restrictions (Note 4). --
------------
Net realized gain (loss) on investments and foreign currencies........................................ (44,108,289)
------------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)........................ 61,748,698
Change in unrealized foreign exchange gain (loss) on other assets and liabilities..................... 35,488
Change in accrued capital gains tax on unrealized appreciation (depreciation)......................... (29,518)
------------
Net unrealized gain (loss) on investments and foreign currencies...................................... 61,754,668
------------
Net realized and unrealized gain (loss) on investments and foreign currencies......................... 17,646,379
------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................................... $ 18,758,359
============
- --------
*Net of foreign withholding taxes on interest and dividends of........................................ $ 365,567
============
Disciplined
Value Fund Growth Fund
------------ -----------
INVESTMENT INCOME:
Dividends (unaffiliated)............................................................................ $ 3,093,761 $ 457,346
Interest (unaffiliated)............................................................................. 686 903
------------ -----------
Total investment income*........................................................................... 3,094,447 458,249
------------ -----------
EXPENSES:
Investment advisory and management fees............................................................. 937,543 215,235
Distribution and service maintenance fees:
Class A............................................................................................ 180,497 47,078
Class B............................................................................................ 131,304 20,402
Class C............................................................................................ 95,784 98,309
Service fees Class I................................................................................ 41 --
Transfer agent fees and expenses:
Class A............................................................................................ 147,195 35,484
Class B............................................................................................ 40,836 6,883
Class C............................................................................................ 27,347 25,715
Class I............................................................................................ 36 --
Registration fees:
Class A............................................................................................ 17,275 15,320
Class B............................................................................................ 11,421 9,676
Class C............................................................................................ 10,226 12,565
Class I............................................................................................ 11,973 --
Class Z............................................................................................ 4,027 --
Custodian and accounting fees....................................................................... 46,313 37,146
Reports to shareholders............................................................................. 32,779 12,898
Audit and tax fees.................................................................................. 36,823 36,774
Legal fees.......................................................................................... 12,381 7,407
Trustees' fees and expenses......................................................................... 12,200 3,799
Interest expense.................................................................................... -- 87
Other expenses...................................................................................... 20,225 17,513
------------ -----------
Total expenses before fee waivers, expense reimbursements, expense recoupments, custody credits
and fees paid indirectly.......................................................................... 1,776,226 602,291
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4).................. (211,353) (157,958)
Custody credits earned on cash balances............................................................ (1) (3)
Fees paid indirectly (Note 5)...................................................................... (17,479) (10,707)
------------ -----------
Net expenses....................................................................................... 1,547,393 433,623
------------ -----------
Net investment income (loss).......................................................................... 1,547,054 24,626
------------ -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)................................................ (36,881,515) (9,654,052)
Net realized foreign exchange gain (loss) on other assets and liabilities............................. -- --
Net realized gain (loss) on disposal of investments in violation of investments restrictions (Note 4). -- --
------------ -----------
Net realized gain (loss) on investments and foreign currencies........................................ (36,881,515) (9,654,052)
------------ -----------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)........................ 12,553,880 5,252,555
Change in unrealized foreign exchange gain (loss) on other assets and liabilities..................... -- 2,905
Change in accrued capital gains tax on unrealized appreciation (depreciation)......................... -- --
------------ -----------
Net unrealized gain (loss) on investments and foreign currencies...................................... 12,553,880 5,255,460
------------ -----------
Net realized and unrealized gain (loss) on investments and foreign currencies......................... (24,327,635) (4,398,592)
------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................................... $(22,780,581) $(4,373,966)
============ ===========
- --------
*Net of foreign withholding taxes on interest and dividends of........................................ $ 1,200 $ 1,045
============ ===========
International
Small-Cap
Fund
-------------
INVESTMENT INCOME:
Dividends (unaffiliated)............................................................................ $ 1,117,726
Interest (unaffiliated)............................................................................. 2,309
-----------
Total investment income*........................................................................... 1,120,035
-----------
EXPENSES:
Investment advisory and management fees............................................................. 618,128
Distribution and service maintenance fees:
Class A............................................................................................ 183,163
Class B............................................................................................ 3,459
Class C............................................................................................ 10,721
Service fees Class I................................................................................ --
Transfer agent fees and expenses:
Class A............................................................................................ 120,448
Class B............................................................................................ 2,589
Class C............................................................................................ 5,109
Class I............................................................................................ --
Registration fees:
Class A............................................................................................ 12,199
Class B............................................................................................ 10,962
Class C............................................................................................ 11,009
Class I............................................................................................ --
Class Z............................................................................................ --
Custodian and accounting fees....................................................................... 163,577
Reports to shareholders............................................................................. 2,228
Audit and tax fees.................................................................................. 46,697
Legal fees.......................................................................................... 7,775
Trustees' fees and expenses......................................................................... 6,553
Interest expense.................................................................................... 69
Other expenses...................................................................................... 19,137
-----------
Total expenses before fee waivers, expense reimbursements, expense recoupments, custody credits
and fees paid indirectly.......................................................................... 1,223,823
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4).................. (193,294)
Custody credits earned on cash balances............................................................ (57)
Fees paid indirectly (Note 5)...................................................................... --
-----------
Net expenses....................................................................................... 1,030,472
-----------
Net investment income (loss).......................................................................... 89,563
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)................................................ (7,665,174)
Net realized foreign exchange gain (loss) on other assets and liabilities............................. 18,427
Net realized gain (loss) on disposal of investments in violation of investments restrictions (Note 4). 4,099
-----------
Net realized gain (loss) on investments and foreign currencies........................................ (7,642,648)
-----------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)........................ 21,298,150
Change in unrealized foreign exchange gain (loss) on other assets and liabilities..................... 14,717
Change in accrued capital gains tax on unrealized appreciation (depreciation)......................... (11,165)
-----------
Net unrealized gain (loss) on investments and foreign currencies...................................... 21,301,702
-----------
Net realized and unrealized gain (loss) on investments and foreign currencies......................... 13,659,054
-----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................................... $13,748,617
===========
- --------
*Net of foreign withholding taxes on interest and dividends of........................................ $ 86,983
===========
See Notes to Financial Statements
11
SunAmerica Equity Funds
STATEMENT OF CHANGES IN NET ASSETS
Blue Chip Growth Fund Growth Opportunities Fund
-------------------------- --------------------------
For the year For the year For the year For the year
ended ended ended ended
September 30, September 30, September 30, September 30,
2009 2008 2009 2008
------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income (loss)............................ $ (225,285) $ (527,166) $ (417,325) $ (451,258)
Net realized gain (loss) on investments and foreign
currencies............................................. (7,078,795) 308,653 (156,423) (16,211,550)
Net unrealized gain (loss) on investments and foreign
currencies............................................. 4,376,262 (13,548,306) 3,864,933 (2,017,924)
----------- ------------ ----------- ------------
Net increase (decrease) in net assets resulting from
operations............................................... (2,927,818) (13,766,819) 3,291,185 (18,680,732)
----------- ------------ ----------- ------------
Distribution 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)............... -- -- -- --
Return of capital (Class A)............................. -- -- -- --
Return of capital (Class B)............................. -- -- -- --
Return of capital (Class C)............................. -- -- -- --
Return of capital (Class I)............................. -- -- -- --
Return of capital (Class Z)............................. -- -- -- --
----------- ------------ ----------- ------------
Total distributions to shareholders....................... -- -- -- --
----------- ------------ ----------- ------------
Net increase (decrease) in net assets resulting from
capital share transactions (Note 8)...................... (4,892,988) (7,226,436) (2,482,969) (12,400,973)
----------- ------------ ----------- ------------
Total increase (decrease) in net assets................... (7,820,806) (20,993,255) 808,216 (31,081,705)
NET ASSETS:
Beginning of period....................................... 49,914,152 70,907,407 32,169,090 63,250,795
----------- ------------ ----------- ------------
End of period+............................................ $42,093,346 $ 49,914,152 $32,977,306 $ 32,169,090
=========== ============ =========== ============
- --------
+Includes accumulated undistributed net investment income
(loss)................................................... $ (4,351) $ (27,741) $ (3,979) $ (24,529)
=========== ============ =========== ============
New Century Fund
--------------------------
For the year For the year
ended ended
September 30, September 30,
2009 2008
------------- -------------
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income (loss)............................ $ (282,346) $ (595,876)
Net realized gain (loss) on investments and foreign
currencies............................................. (7,941,225) (38,250,023)
Net unrealized gain (loss) on investments and foreign
currencies............................................. 3,998,483 (2,122,695)
------------ ------------
Net increase (decrease) in net assets resulting from
operations............................................... (4,225,088) (40,968,594)
------------ ------------
Distribution 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)............... -- --
Return of capital (Class A)............................. -- --
Return of capital (Class B)............................. -- --
Return of capital (Class C)............................. -- --
Return of capital (Class I)............................. -- --
Return of capital (Class Z)............................. -- --
------------ ------------
Total distributions to shareholders....................... -- --
------------ ------------
Net increase (decrease) in net assets resulting from
capital share transactions (Note 8)...................... (6,223,821) (16,250,879)
------------ ------------
Total increase (decrease) in net assets................... (10,448,909) (57,219,473)
NET ASSETS:
Beginning of period....................................... 47,814,710 105,034,183
------------ ------------
End of period+............................................ $ 37,365,801 $ 47,814,710
============ ============
- --------
+Includes accumulated undistributed net investment income
(loss)................................................... $ (7,488) $ (47,437)
============ ============
See Notes to Financial Statements
12
SunAmerica Equity Funds
STATEMENT OF CHANGES IN NET ASSETS -- (continued)
Growth and Income Fund Balanced Assets Fund
-------------------------- --------------------------
For the year For the year For the year For the year
ended ended ended ended
September 30, September 30, September 30, September 30,
2009 2008 2009 2008
------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income (loss)............................ $ 464,010 $ 687,508 $ 1,751,372 $ 2,138,408
Net realized gain (loss) on investments and foreign
currencies............................................. (20,650,111) (6,333,715) (16,628,715) (5,243,552)
Net unrealized gain (loss) on investments and foreign
currencies............................................. 9,591,186 (17,055,222) 9,960,910 (20,166,764)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting from
operations............................................... (10,594,915) (22,701,429) (4,916,433) (23,271,908)
------------ ------------ ------------ ------------
Distribution to shareholders from:
Net investment income (Class A)......................... (575,896) (240,971) (1,779,085) (1,944,922)
Net investment income (Class B)......................... (27,943) -- (119,634) (127,852)
Net investment income (Class C)......................... (79,918) -- (134,714) (126,190)
Net investment income (Class I)......................... (3,747) (1,451) (12,678) (12,607)
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)............... -- -- -- --
Return of capital (Class A)............................. -- -- -- --
Return of capital (Class B)............................. -- -- -- --
Return of capital (Class C)............................. -- -- -- --
Return of capital (Class I)............................. -- -- -- --
Return of capital (Class Z)............................. -- -- -- --
------------ ------------ ------------ ------------
Total distributions to shareholders....................... (687,504) (242,422) (2,046,111) (2,211,571)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting from
capital share transactions (Note 8)...................... (9,521,520) (14,928,379) (14,483,358) (17,362,771)
------------ ------------ ------------ ------------
Total increase (decrease) in net assets................... (20,803,939) (37,872,230) (21,445,902) (42,846,250)
NET ASSETS:
Beginning of period....................................... 72,826,042 110,698,272 110,666,805 153,513,055
------------ ------------ ------------ ------------
End of period+............................................ $ 52,022,103 $ 72,826,042 $ 89,220,903 $110,666,805
============ ============ ============ ============
- --------
+Includes accumulated undistributed net investment income
(loss)................................................... $ 425,791 $ 649,285 $ 51,721 $ 241,557
============ ============ ============ ============
International Equity Fund
--------------------------
For the year For the year
ended ended
September 30, September 30,
2009 2008
------------- -------------
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income (loss)............................ $ 1,111,980 $ 842,037
Net realized gain (loss) on investments and foreign
currencies............................................. (44,108,289) (1,416,225)
Net unrealized gain (loss) on investments and foreign
currencies............................................. 61,754,668 (37,537,424)
------------ ------------
Net increase (decrease) in net assets resulting from
operations............................................... 18,758,359 (38,111,612)
------------ ------------
Distribution to shareholders from:
Net investment income (Class A)......................... (716,458) --
Net investment income (Class B)......................... (69,620) --
Net investment income (Class C)......................... (101,385) --
Net investment income (Class I)......................... (100,260) --
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)............... -- --
Return of capital (Class A)............................. (90,648) --
Return of capital (Class B)............................. (19,887) --
Return of capital (Class C)............................. (28,960) --
Return of capital (Class I)............................. (11,005) --
Return of capital (Class Z)............................. -- --
------------ ------------
Total distributions to shareholders....................... (1,138,223) (11,327,184)
------------ ------------
Net increase (decrease) in net assets resulting from
capital share transactions (Note 8)...................... 72,757,838 (6,309,775)
------------ ------------
Total increase (decrease) in net assets................... 90,377,974 (55,748,571)
NET ASSETS:
Beginning of period....................................... 74,847,518 130,596,089
------------ ------------
End of period+............................................ $165,225,492 $ 74,847,518
============ ============
- --------
+Includes accumulated undistributed net investment income
(loss)................................................... $ (19,128) $ (31,117)
============ ============
See Notes to Financial Statements
13
SunAmerica Equity Funds
STATEMENT OF CHANGES IN NET ASSETS -- (continued)
Value Fund Disciplined Growth Fund
-------------------------- --------------------------
For the year For the year For the year For the year
ended ended ended ended
September 30, September 30, September 30, September 30,
2009 2008 2009 2008
------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income (loss)........................... $ 1,547,054 $ 2,112,685 $ 24,626 $ (366,302)
Net realized gain (loss) on investments and foreign
currencies............................................ (36,881,515) (15,674,539) (9,654,052) (15,011,506)
Net unrealized gain (loss) on investments and foreign
currencies............................................ 12,553,880 (30,590,663) 5,255,460 (10,521,074)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting from
operations.............................................. (22,780,581) (44,152,517) (4,373,966) (25,898,882)
------------ ------------ ------------ ------------
Distribution to shareholders from:
Net investment income (Class A)........................ (1,308,678) (1,348,358) -- --
Net investment income (Class B)........................ (236,161) (210,886) -- --
Net investment income (Class C)........................ (158,369) (136,301) -- --
Net investment income (Class I)........................ (478) (425) -- --
Net investment income (Class Z)........................ (588,253) (468,654) -- --
Net realized gain on securities (Class A).............. -- (17,163,009) -- --
Net realized gain on securities (Class B).............. -- (5,445,543) -- --
Net realized gain on securities (Class C).............. -- (3,519,589) -- --
Net realized gain on securities (Class I).............. -- (4,981) -- --
Net realized gain on securities (Class Z).............. -- (4,579,895) -- --
Return of capital (Class A)............................ -- -- -- --
Return of capital (Class B)............................ -- -- -- --
Return of capital (Class C)............................ -- -- -- --
Return of capital (Class I)............................ -- -- -- --
Return of capital (Class Z)............................ -- -- -- --
------------ ------------ ------------ ------------
Total distributions to shareholders...................... (2,291,939) (32,877,641) -- --
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting from
capital share transactions (Note 8)..................... (20,315,857) (10,609,320) (11,672,272) 5,710,433
------------ ------------ ------------ ------------
Total increase (decrease) in net assets.................. (45,388,377) (87,639,478) (16,046,238) (20,188,449)
NET ASSETS:
Beginning of period...................................... 139,252,541 226,892,019 40,188,495 60,376,944
------------ ------------ ------------ ------------
End of period+........................................... $ 93,864,164 $139,252,541 $ 24,142,257 $ 40,188,495
============ ============ ============ ============
- --------
+Includes accumulated undistributed net investment
income (loss)........................................... $ 795,352 $ 1,540,237 $ 14,622 $ (10,004)
============ ============ ============ ============
International Small-Cap Fund
--------------------------
For the year For the year
ended ended
September 30, September 30,
2009 2008
------------- -------------
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income (loss)........................... $ 89,563 $ (48,475)
Net realized gain (loss) on investments and foreign
currencies............................................ (7,642,648) (4,003,933)
Net unrealized gain (loss) on investments and foreign
currencies............................................ 21,301,702 (10,020,667)
----------- ------------
Net increase (decrease) in net assets resulting from
operations.............................................. 13,748,617 (14,073,075)
----------- ------------
Distribution to shareholders from:
Net investment income (Class A)........................ (11,219) --
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).............. -- (273,789)
Net realized gain on securities (Class B).............. -- (11,114)
Net realized gain on securities (Class C).............. -- (49,279)
Net realized gain on securities (Class I).............. -- --
Net realized gain on securities (Class Z).............. -- --
Return of capital (Class A)............................ -- (32,125)
Return of capital (Class B)............................ -- (1,304)
Return of capital (Class C)............................ -- (5,782)
Return of capital (Class I)............................ -- --
Return of capital (Class Z)............................ -- --
----------- ------------
Total distributions to shareholders...................... (11,219) (373,393)
----------- ------------
Net increase (decrease) in net assets resulting from
capital share transactions (Note 8)..................... 36,129,441 (3,274,935)
----------- ------------
Total increase (decrease) in net assets.................. 49,866,839 (17,721,403)
NET ASSETS:
Beginning of period...................................... 19,661,571 37,382,974
----------- ------------
End of period+........................................... $69,528,410 $ 19,661,571
=========== ============
- --------
+Includes accumulated undistributed net investment
income (loss)........................................... $ 539,348 $ (2,969)
=========== ============
See Notes to Financial Statements
14
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
- -
09/30/05 $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)
09/30/08 18.74 (0.11) (3.72) (3.83) -- -- -- 14.91 (20.44)(5) 38,927 1.64(4)
09/30/09 14.91 (0.06) (0.48) (0.54) -- -- -- 14.37 (3.62)(6) 34,503 1.81(3)(4)
Class B
- -
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)
09/30/08 16.52 (0.22) (3.25) (3.47) -- -- -- 13.05 (21.00)(5) 7,525 2.38(4)
09/30/09 13.05 (0.13) (0.44) (0.57) -- -- -- 12.48 (4.37)(6) 4,872 2.60(3)(4)
Class C
- -
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)
09/30/08 16.39 (0.23) (3.23) (3.46) -- -- -- 12.93 (21.11)(5) 2,939 2.51(4)
09/30/09 12.93 (0.14) (0.44) (0.58) -- -- -- 12.35 (4.49)(6) 2,343 2.66(3)(4)
Class I
- -
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)
09/30/08 19.01 (0.06) (3.79) (3.85) -- -- -- 15.16 (20.25)(5) 524 1.33(3)(4)
09/30/09 15.16 (0.00) (0.48) (0.48) -- -- -- 14.68 (3.17)(6) 375 1.33(3)(4)
Ratio
of net
investment
income (loss)
to average Portfolio
net assets Turnover
- ------------- ---------
(0.09)% 120%
(0.45)(3)(4) 154
(0.40)(3)(4) 72
(0.66)(4) 49
(0.46)(3)(4) 60
(0.80)% 120%
(1.20)(3)(4) 154
(1.14)(3)(4) 72
(1.41)(4) 49
(1.23)(3)(4) 60
(0.98)% 120%
(1.21)(3)(4) 154
(1.35)(3)(4) 72
(1.54)(4) 49
(1.30)(3)(4) 60
0.22%(3) 120%
(0.22)(3)(4) 154
(0.11)(3)(4) 72
(0.36)(3)(4) 49
0.03(3)(4) 60
- --------
(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) (See Note 4):
09/30/05 09/30/06 09/30/07 09/30/08 09/30/09
-------- -------- -------- -------- --------
Blue Chip Growth Class A................ -- % 0.05% 0.01% -- % 0.03%
Blue Chip Growth Class B................ -- 0.05 0.02 -- 0.12
Blue Chip Growth Class C................ -- 0.05 0.02 -- 0.27
Blue Chip Growth Class I................ 0.49 1.15 1.92 1.36 3.15
(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 09/30/08 09/30/09
-------- -------- -------- --------
Blue Chip Growth Class A................ 0.01% 0.01% 0.01% 0.00%
Blue Chip Growth Class B................ 0.01 0.01 0.01 0.00
Blue Chip Growth Class C................ 0.01 0.01 0.01 0.00
Blue Chip Growth Class I................ 0.01 0.01 0.01 0.00
(5)The Fund's performance was increased by less than 0.01% from gains on
disposal of investments in violation of investment restrictions.
(6)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).
See Notes to Financial Statements
15
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
- -
09/30/05 $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(3)(4)
09/30/07 17.04 (0.14) 2.41 2.27 -- -- -- 19.31 13.32 39,646 1.62(3)(4)
09/30/08 19.31 (0.12) (6.37) (6.49) -- -- -- 12.82 (33.61) 21,705 1.82(3)(4)
09/30/09 12.82 (0.16) 2.04 1.88 -- -- -- 14.70 14.66 25,063 1.89(3)(4)
Class B
- -
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(3)(4)
09/30/07 15.10 (0.25) 2.15 1.90 -- -- -- 17.00 12.58 15,229 2.31(3)(4)
09/30/08 17.00 (0.21) (5.59) (5.80) -- -- -- 11.20 (34.12) 6,405 2.53(3)(4)
09/30/09 11.20 (0.22) 1.78 1.56 -- -- -- 12.76 13.93 4,298 2.67(3)(4)
Class C
- -
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(3)(4)
09/30/07 15.08 (0.26) 2.14 1.88 -- -- -- 16.96 12.47 8,230 2.38(3)(4)
09/30/08 16.96 (0.22) (5.57) (5.79) -- -- -- 11.17 (34.14) 3,977 2.62(3)(4)
09/30/09 11.17 (0.22) 1.76 1.54 -- -- -- 12.71 13.79 3,546 2.66(3)(4)
Class I
- -
09/30/05 $13.75 $(0.13) $ 2.82 $ 2.69 $-- $-- $-- $16.44 19.56% $ 1,759 1.33%(3)
09/30/06 16.44 (0.06) 0.88 0.82 -- -- -- 17.26 4.99 422 1.28(3)(4)
09/30/07 17.26 (0.06) 2.42 2.36 -- -- -- 19.62 13.67 145 1.32(3)(4)
09/30/08 19.62 (0.04) (6.48) (6.52) -- -- -- 13.10 (33.23) 82 1.33(3)(4)
09/30/09 13.10 (0.10) 2.13 2.03 -- -- -- 15.13 15.50 70 1.31(3)(4)
Ratio
of net
investment
income (loss)
to average Portfolio
net assets Turnover
- ------------- ---------
(1.15)% 86%
(0.76)(3)(4) 278
(0.79)(3)(4) 321
(0.93)(3)(4) 510
(1.43)(3)(4) 783
(1.82)% 86%
(1.46)(3)(4) 278
(1.48)(3)(4) 321
(1.64)(3)(4) 510
(2.20)(3)(4) 783
(1.89)% 86%
(1.44)(3)(4) 278
(1.56)(3)(4) 321
(1.73)(3)(4) 510
(2.20)(3)(4) 783
(0.85)%(3) 86%
(0.35)(3)(4) 278
(0.34)(3)(4) 321
(0.44)(3)(4) 510
(0.84)(3)(4) 783
- --------
(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) (See Note 4):
09/30/05 09/30/06 09/30/07 09/30/08 09/30/09
-------- -------- -------- -------- --------
Growth Opportunities Class A............ -- % 0.05% 0.00% 0.00% 0.21%
Growth Opportunities Class B............ -- 0.05 0.01 0.00 0.31
Growth Opportunities Class C............ -- 0.05 0.01 0.00 0.35
Growth Opportunities Class I............ 0.49 1.59 5.77 8.62 16.03
(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 09/30/08 09/30/09
-------- -------- -------- --------
Growth Opportunities Class A............ 0.04% 0.05% 0.19% 0.03%
Growth Opportunities Class B............ 0.04 0.05 0.19 0.03
Growth Opportunities Class C............ 0.04 0.05 0.19 0.03
Growth Opportunities Class I............ 0.03 0.05 0.19 0.03
See Notes to Financial Statements
16
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
- -
09/30/05 $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)
09/30/08 22.09 (0.12) (9.60) (9.72) -- -- -- 12.37 (44.00) 41,425 1.62(3)(4)
09/30/09 12.37 (0.07) (0.62) (0.69) -- -- -- 11.68 (5.58) 32,901 1.81(3)(4)
Class B
- -
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)
09/30/08 19.20 (0.24) (8.30) (8.54) -- -- -- 10.66 (44.48) 3,907 2.45(3)(4)
09/30/09 10.66 (0.13) (0.54) (0.67) -- -- -- 9.99 (6.29) 2,566 2.64(3)(4)
Class C
- -
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)
09/30/08 19.32 (0.19) (8.37) (8.56) -- -- -- 10.76 (44.31) 2,483 2.14(3)(4)(5)
09/30/09 10.76 (0.09) (0.55) (0.64) -- -- -- 10.12 (5.95) 1,899 2.12(3)(4)
Ratio
of net
investment
income (loss)
to average Portfolio
net assets Turnover
- ------------- ---------
(0.89)% 80%
(0.39)(4) 235
(0.20)(4) 315
(0.80)(3)(4) 659
(0.78)(3)(4) 606
(1.64)% 80%
(1.14)(4) 235
(1.00)(4) 315
(1.61)(3)(4) 659
(1.60)(3)(4) 606
(1.45)%(3) 80%
(0.98)(3)(4) 235
(0.88)(3)(4) 315
(1.31)(3)(4)(5) 659
(1.10)(3)(4) 606
- --------
(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)
(See Note 4):
09/30/05 09/30/06 09/30/07 09/30/08 09/30/09
-------- -------- -------- -------- --------
New Century Class A..................... -- % -- % -- % 0.00% 0.12%
New Century Class B..................... -- -- -- 0.00 0.35
New Century Class C..................... 0.66 0.44 0.35 0.40 1.06
(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 09/30/08 09/30/09
-------- -------- -------- --------
New Century Class A..................... 0.01% 0.02% 0.14% 0.03%
New Century Class B..................... 0.01 0.02 0.14 0.03
New Century Class C..................... 0.01 0.03 0.14 0.03
(5)Net of custody credits of 0.01%.
See Notes to Financial Statements
17
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
- -
09/30/05 $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)
09/30/08 15.88 0.14 (3.65) (3.51) (0.06) -- (0.06) 12.31 (22.19) 48,022 1.58(4)
09/30/09 12.31 0.11 (1.60) (1.49) (0.15) -- (0.15) 10.67 (11.83) 36,095 1.74(3)(4)
Class B
- -
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)
09/30/08 14.85 0.04 (3.41) (3.37) -- -- -- 11.48 (22.69) 9,729 2.29(4)
09/30/09 11.48 0.04 (1.48) (1.44) (0.04) -- (0.04) 10.00 (12.52) 5,178 2.51(3)(4)
Class C
- -
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)
09/30/08 14.84 0.04 (3.41) (3.37) -- -- -- 11.47 (22.71) 14,816 2.25(4)
09/30/09 11.47 0.04 (1.48) (1.44) (0.06) -- (0.06) 9.97 (12.40) 10,581 2.43(3)(4)
Class I
- -
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)
09/30/08 15.96 0.18 (3.68) (3.50) (0.07) -- (0.07) 12.39 (22.02) 259 1.32(3)(4)
09/30/09 12.39 0.15 (1.62) (1.47) (0.19) -- (0.19) 10.73 (11.51) 168 1.32(3)(4)
Ratio
of net
investment
income (loss)
to average Portfolio
net assets Turnover
- ------------- ---------
0.78% 79%
0.31(3)(4) 152
0.49(3)(4) 164
0.96(4) 251
1.15(3)(4) 182
0.16% 79%
(0.39)(3)(4) 152
(0.21)(3)(4) 164
0.26(4) 251
0.43(3)(4) 182
0.17% 79%
(0.36)(3)(4) 152
(0.18)(3)(4) 164
0.29(4) 251
0.46(3)(4) 182
1.00%(3) 79%
0.48(3)(4) 152
0.70(3)(4) 164
1.22(3)(4) 251
1.57(3)(4) 182
- --------
(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) (See Note 4):
09/30/05 09/30/06 09/30/07 09/30/08 09/30/09
-------- -------- -------- -------- --------
Growth and Income Class A............... -- % 0.00% 0.01% -- % 0.01%
Growth and Income Class B............... -- 0.00 0.01 -- 0.09
Growth and Income Class C............... -- 0.00 0.01 -- 0.02
Growth and Income Class I............... 0.96 2.23 3.72 3.36 5.27
(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 09/30/08 09/30/09
-------- -------- -------- --------
Growth and Income Class A............... 0.01% 0.02% 0.03% 0.01%
Growth and Income Class B............... 0.01 0.02 0.04 0.01
Growth and Income Class C............... 0.01 0.02 0.04 0.01
Growth and Income Class I............... 0.01 0.02 0.03 0.01
See Notes to Financial Statements
18
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
- -
09/30/05 $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)
09/30/08 15.80 0.25 (2.82) (2.57) (0.26) -- (0.26) 12.97 (16.37)(5) 91,316 1.59(3)(4)
09/30/09 12.97 0.24 (0.51) (0.27) (0.28) -- (0.28) 12.42 (1.77) 74,938 1.73(3)(4)
Class B
- -
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)
09/30/08 15.77 0.15 (2.81) (2.66) (0.16) -- (0.16) 12.95 (16.95)(5) 9,252 2.31(3)(4)
09/30/09 12.95 0.16 (0.51) (0.35) (0.20) -- (0.20) 12.40 (2.50) 6,256 2.48(3)(4)
Class C
- -
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)
09/30/08 15.80 0.15 (2.82) (2.67) (0.16) -- (0.16) 12.97 (16.98)(5) 9,552 2.28(3)(4)
09/30/09 12.97 0.16 (0.51) (0.35) (0.20) -- (0.20) 12.42 (2.46) 7,535 2.44(3)(4)
Class I
- -
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)
09/30/08 15.82 0.29 (2.83) (2.54) (0.30) -- (0.30) 12.98 (16.19)(5) 546 1.31(3)(4)
09/30/09 12.98 0.28 (0.51) (0.23) (0.32) -- (0.32) 12.43 (1.40) 491 1.33(3)(4)
Ratio
of net
investment
income (loss)
to average Portfolio
net assets Turnover
- ------------- ---------
1.56% 160%(6)
1.59(3)(4) 156(6)
1.66(3)(4) 133(6)
1.71(3)(4) 122
2.16(3)(4) 131
0.91% 160%(6)
0.91(3)(4) 156(6)
0.93(3)(4) 133(6)
0.99(3)(4) 122
1.44(3)(4) 131
0.92% 160%(6)
0.93(3)(4) 156(6)
0.95(3)(4) 133(6)
1.02(3)(4) 122
1.46(3)(4) 131
1.84%(3) 160%(6)
1.84(3)(4) 156(6)
1.90(3)(4) 133(6)
1.99(3)(4) 122
2.55(3)(4) 131
- --------
(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) (See Note 4):
09/30/05 09/30/06 09/30/07 09/30/08 09/30/09
-------- -------- -------- -------- --------
Balanced Assets Class A................. -- % 0.05% 0.02% 0.02% 0.01%
Balanced Assets Class B................. -- 0.05 0.02 0.02 0.07
Balanced Assets Class C................. -- 0.05 0.02 0.02 0.03
Balanced Assets Class I................. 1.47 1.38 1.71 1.65 2.21
(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 09/30/08 09/30/09
-------- -------- -------- --------
Balanced Assets Class A................. 0.00% 0.01% 0.01% 0.01%
Balanced Assets Class B................. 0.00 0.01 0.01 0.01
Balanced Assets Class C................. 0.00 0.01 0.01 0.01
Balanced Assets Class I................. 0.00 0.01 0.01 0.01
(5)The Fund's performance was increased by less than 0.01% from gains on the
disposal of investments in violation of investment restrictions.
(6)Portfolio turnover includes "to be announced" ("TBA") transactions.
Previously, portfolio turnover was calculated prior to including TBA
transactions and was as follows:
09/30/05 09/30/06 09/30/07
-------- -------- --------
160% 154% 123%
See Notes to Financial Statements
19
SunAmerica Equity Funds
FINANCIAL HIGHLIGHTS -- (continued)
INTERNATIONAL EQUITY FUND
-------------------------
Net gain
(loss) on
Net investments Distri- Net
Asset Net (both Dividends butions Asset Net Assets
Value investment realized Total from from net from Distributions Total Value end of
beginning income and investment investment capital from return distri- end of Total period
Period Ended of period (loss)(1) unrealized) operations income gains of capital butions period Return(2) (000's)
- ------------ --------- ---------- ----------- ---------- ---------- ------- ------------- ------- ------ --------- ----------
Class A
- -
09/30/05 $10.20 $ 0.02 $ 2.82 $ 2.84 $ -- $ -- $ -- $ -- $13.04 27.84% $ 43,527
09/30/06 13.04 (0.01) 2.81 2.80 -- -- -- -- 15.84 21.47 62,190
09/30/07 15.84 0.02 3.94 3.96 -- -- -- -- 19.80 25.00 75,408
09/30/08 19.80 0.17 (5.85) (5.68) -- (1.68) -- (1.68) 12.44 (31.34) 46,384
09/30/09 12.44 0.10 (0.71)(5) (0.61) (0.22) -- (0.03) (0.25) 11.58 (4.28) 122,343
Class B
- -
09/30/05 $ 9.69 $(0.06) $ 2.68 $ 2.62 $ -- $ -- $ -- $ -- $12.31 27.04% $ 19,546
09/30/06 12.31 (0.11) 2.65 2.54 -- -- -- -- 14.85 20.63 21,240
09/30/07 14.85 (0.10) 3.69 3.59 -- -- -- -- 18.44 24.18 20,509
09/30/08 18.44 0.04 (5.36) (5.32) -- (1.68) -- (1.68) 11.44 (31.72) 9,279
09/30/09 11.44 0.03 (0.63)(5) (0.60) (0.09) -- (0.03) (0.12) 10.72 (4.85) 12,960
Class C
- -
09/30/05 $ 9.68 $(0.06) $ 2.67 $ 2.61 $ -- $ -- $ -- $ -- $12.29 26.96% $ 16,892
09/30/06 12.29 (0.11) 2.66 2.55 -- -- -- -- 14.84 20.75 21,646
09/30/07 14.84 (0.09) 3.67 3.58 -- -- -- -- 18.42 24.12 26,683
09/30/08 18.42 0.05 (5.37) (5.32) -- (1.68) -- (1.68) 11.42 (31.77) 14,221
09/30/09 11.42 0.03 (0.63)(5) (0.60) (0.09) -- (0.03) (0.12) 10.70 (4.86) 25,123
Class I
- -
09/30/05 $10.25 $ 0.05 $ 2.82 $ 2.87 $ -- $ -- $ -- $ -- $13.12 28.00% $ 7,065
09/30/06 13.12 0.00 2.84 2.84 -- -- -- -- 15.96 21.65 9,482
09/30/07 15.96 0.04 3.96 4.00 -- -- -- -- 19.96 25.06 7,997
09/30/08 19.96 0.17 (5.89) (5.72) -- (1.68) -- (1.68) 12.56 (31.29) 4,964
09/30/09 12.56 0.09 (0.70)(5) (0.61) (0.25) -- (0.03) (0.28) 11.67 (4.12) 4,799
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets net assets Turnover
- ---------- ------------- ---------
1.90%(3) 0.17%(3) 126%
1.90(3) (0.09)(3) 152
1.90(3) 0.13(3) 132
1.90(4) 0.98(4) 199
1.89(4) 1.14(4) 431
2.55%(3) (0.51)%(3) 126%
2.55(3) (0.80)(3) 152
2.55(3) (0.59)(3) 132
2.55(3)(4) 0.25(3)(4) 199
2.55(3)(4) 0.36(3)(4) 431
2.55%(3) (0.49)%(3) 126%
2.55(3) (0.76)(3) 152
2.55(3) (0.52)(3) 132
2.55(3)(4) 0.31(3)(4) 199
2.55(3)(4) 0.41(3)(4) 431
1.80%(3) 0.43%(3) 126%
1.80(3) (0.01)(3) 152
1.80(3) 0.24(3) 132
1.80(3)(4) 1.01(3)(4) 199
1.80(3)(4) 0.95(3)(4) 431
- --------
(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) (See Note 4):
09/30/05 09/30/06 09/30/07 09/30/08 09/30/09
-------- -------- -------- -------- --------
International Equity Class A............ 0.09% (0.04)% (0.05)% -- % 0.00%
International Equity Class B............ 0.17 0.02 0.04 0.06 0.22
International Equity Class C............ 0.14 (0.01) (0.00) 0.01 0.08
International Equity Class I............ 0.14 0.00 0.04 0.09 0.27
(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:
09/30/08 09/30/09
-------- --------
International Equity Class A. 0.00% 0.00%
International Equity Class B. 0.00 0.00
International Equity Class C. 0.00 0.00
International Equity Class I. 0.00 0.00
(5)Includes the effect of a merger (See Note 2).
See Notes to Financial Statements
20
SunAmerica Equity Funds
FINANCIAL HIGHLIGHTS -- (continued)
VALUE 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
- -
09/30/05 $17.69 $0.17 $ 2.22 $ 2.39 $(0.29) $(1.78) $(2.07) $18.01 14.06% $130,754 1.63%
09/30/06 18.01 0.15 1.89 2.04 (0.13) (1.17) (1.30) 18.75 12.02 121,729 1.63(4)
09/30/07 18.75 0.18 2.59 2.77 (0.16) (2.04) (2.20) 19.32 15.80 126,788 1.63(4)
09/30/08 19.32 0.19 (3.86) (3.67) (0.21) (2.70) (2.91) 12.74 (21.70) 77,903 1.63(4)
09/30/09 12.74 0.16 (1.88) (1.72) (0.23) -- (0.23) 10.79 (13.24) 52,112 1.63(4)
Class B
- -
09/30/05 $16.96 $0.07 $ 2.11 $ 2.18 $(0.18) $(1.78) $(1.96) $17.18 13.34% $ 57,704 2.28%
09/30/06 17.18 0.04 1.80 1.84 (0.03) (1.17) (1.20) 17.82 11.29 47,100 2.28(4)
09/30/07 17.82 0.05 2.46 2.51 (0.05) (2.04) (2.09) 18.24 15.07 39,355 2.28(4)
09/30/08 18.24 0.09 (3.62) (3.53) (0.10) (2.70) (2.80) 11.91 (22.16) 21,304 2.28(4)
09/30/09 11.91 0.10 (1.76) (1.66) (0.14) -- (0.14) 10.11 (13.78) 11,213 2.28(4)
Class C
- -
09/30/05 $16.96 $0.06 $ 2.12 $ 2.18 $(0.18) $(1.78) $(1.96) $17.18 13.34% $ 41,095 2.28%
09/30/06 17.18 0.04 1.80 1.84 (0.03) (1.17) (1.20) 17.82 11.30 33,849 2.28(4)
09/30/07 17.82 0.06 2.45 2.51 (0.05) (2.04) (2.09) 18.24 15.07 26,071 2.28(4)
09/30/08 18.24 0.09 (3.62) (3.53) (0.10) (2.70) (2.80) 11.91 (22.16) 14,194 2.28(4)
09/30/09 11.91 0.09 (1.76) (1.67) (0.14) -- (0.14) 10.10 (13.86) 9,386 2.28(4)
Class I
- -
09/30/05 $17.68 $0.20 $ 2.20 $ 2.40 $(0.30) $(1.78) $(2.08) $18.00 14.12% $ 3,106 1.53%
09/30/06 18.00 0.16 1.91 2.07 (0.15) (1.17) (1.32) 18.75 12.20 174 1.53(4)
09/30/07 18.75 0.21 2.57 2.78 (0.18) (2.04) (2.22) 19.31 15.89 34 1.53(4)
09/30/08 19.31 0.20 (3.85) (3.65) (0.23) (2.70) (2.93) 12.73 (21.62) 25 1.53(4)
09/30/09 12.73 0.18 (1.89) (1.71) (0.25) -- (0.25) 10.77 (13.15) 15 1.53(4)
Class Z
- -
09/30/05 $18.18 $0.27 $ 2.30 $ 2.57 $(0.39) $(1.78) $(2.17) $18.58 14.77% $ 17,307 1.06%
09/30/06 18.58 0.26 1.95 2.21 (0.19) (1.17) (1.36) 19.43 12.64 22,853 1.06(4)
09/30/07 19.43 0.29 2.70 2.99 (0.22) (2.04) (2.26) 20.16 16.48 34,644 1.06(4)
09/30/08 20.16 0.29 (4.05) (3.76) (0.28) (2.70) (2.98) 13.42 (21.28) 25,827 1.06(4)
09/30/09 13.42 0.22 (1.98) (1.76) (0.30) -- (0.30) 11.36 (12.75) 21,138 1.06(4)
Ratio
of net
investment
income (loss)
to average Portfolio
net assets(3) Turnover
- ------------- ---------
1.00% 82%
0.88(4) 140
0.97(4) 143
1.23(4) 207
1.68(4) 204
0.38% 82%
0.23(4) 140
0.31(4) 143
0.58(4) 207
1.06(4) 204
0.36% 82%
0.23(4) 140
0.32(4) 143
0.58(4) 207
1.02(4) 204
1.11% 82%
0.90(4) 140
1.05(4) 143
1.33(4) 207
1.81(4) 204
1.54% 82%
1.45(4) 140
1.54(4) 143
1.81(4) 207
2.20(4) 204
- --------
(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) (See Note 4):
09/30/05 09/30/06 09/30/07 09/30/08 09/30/09
-------- -------- -------- -------- --------
Value Class A........................... 0.08% 0.08% 0.07% 0.11% 0.21%
Value Class B........................... 0.14 0.10 0.11 0.14 0.29
Value Class C........................... 0.08 0.08 0.09 0.14 0.28
Value Class I........................... 0.25 0.30 21.30 16.95 73.12
Value Class Z........................... 0.10 0.07 0.07 0.10 0.13
(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 09/30/08 09/30/09
-------- -------- -------- --------
Value Class A........................... 0.01% 0.01% 0.03% 0.02%
Value Class B........................... 0.01 0.01 0.03 0.02
Value Class C........................... 0.01 0.01 0.03 0.02
Value Class I........................... 0.01 0.01 0.03 0.02
Value Class Z........................... 0.01 0.01 0.03 0.02
See Notes to Financial Statements
21
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 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
- -
09/30/05 $11.27 $ 0.09 $ 0.53 $ 0.62 $(0.06) $-- $(0.06) $11.83 5.51% $11,251 1.45%
09/30/06 11.83 (0.01) 1.34 1.33 (0.06) -- (0.06) 13.10 11.25 22,554 1.45(4)
09/30/07 13.10 (0.04) 4.38 4.34 -- -- -- 17.44 33.13(5) 25,774 1.45(4)
09/30/08 17.44 (0.04) (6.33) (6.37) -- -- -- 11.07 (36.53) 19,949 1.45(4)(6)
09/30/09 11.07 0.04 (0.64) (0.60) -- -- -- 10.47 (5.42) 13,398 1.45(4)
Class B
- -
09/30/05 $10.86 $ 0.01 $ 0.52 $ 0.53 $ -- $-- $ -- $11.39 4.88% $15,117 2.10%
09/30/06 11.39 (0.10) 1.29 1.19 0.00 -- 0.00 12.58 10.46 9,299 2.10(4)
09/30/07 12.58 (0.13) 4.20 4.07 -- -- -- 16.65 32.35(5) 5,676 2.10(4)
09/30/08 16.65 (0.13) (6.02) (6.15) -- -- -- 10.50 (36.94) 3,820 2.10(4)(6)
09/30/09 10.50 (0.02) (0.62) (0.64) -- -- -- 9.86 (6.10) 1,631 2.10(4)
Class C
- -
09/30/05 $10.88 $ 0.01 $ 0.51 $ 0.52 $ -- $-- $ -- $11.40 4.78% $13,983 2.10%
09/30/06 11.40 (0.09) 1.29 1.20 0.00 -- 0.00 12.60 10.54 26,927 2.10(4)
09/30/07 12.60 (0.13) 4.19 4.06 -- -- -- 16.66 32.22(5) 28,927 2.10(4)
09/30/08 16.66 (0.13) (6.02) (6.15) -- -- -- 10.51 (36.91) 16,419 2.10(4)(6)
09/30/09 10.51 (0.02) (0.61) (0.63) -- -- -- 9.88 (5.99) 9,114 2.10(4)
Ratio
of net
investment
income (loss)
to average Portfolio
net assets(3) Turnover
- ------------- ---------
0.74% 32%
(0.02)(4) 999
(0.13)(4) 446
(0.30)(4)(6) 706
0.37(4) 482
0.09% 32%
(0.77)(4) 999
(0.75)(4) 446
(0.98)(4)(6) 706
(0.31)(4) 482
0.09% 32%
(0.68)(4) 999
(0.78)(4) 446
(0.95)(4)(6) 706
(0.30)(4) 482
- --------
(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)
(See Note 4):
09/30/05 09/30/06 09/30/07 09/30/08 09/30/09
-------- -------- -------- -------- --------
Disciplined Growth Class A.............. 0.38% 0.31% 0.34% 0.25% 0.59%
Disciplined Growth Class B.............. 0.35 0.37 0.45 0.39 1.02
Disciplined Growth Class C.............. 0.33 0.30 0.30 0.24 0.59
(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 09/30/08 09/30/09
-------- -------- -------- --------
Disciplined Growth Class A.............. 0.04% 0.11% 0.07% 0.04%
Disciplined Growth Class B.............. 0.02 0.14 0.07 0.05
Disciplined Growth Class C.............. 0.03 0.12 0.07 0.04
(5)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.
(6)Net of custody credits of 0.01%.
See Notes to Financial Statements
22
SunAmerica Equity Funds
FINANCIAL HIGHLIGHTS -- (continued)
INTERNATIONAL SMALL-CAP FUND
----------------------------
Net gain
(loss) on
Net investments Distri- Net
Asset Net (both Dividends butions Asset
Value investment realized Total from from net from Distributions Total Value
beginning income and investment investment capital from return distri- end of Total
Period Ended of period (loss)(1) unrealized) operations income gains of capital butions period Return(2)
- -------------------- --------- ---------- ----------- ---------- ---------- ------- ------------- ------- ------ ---------
Class A
05/02/06-09/30/06(3) $12.50 $ 0.00 $(1.45) $(1.45) $ -- $ -- $ -- $ -- $11.05 (11.60)%
09/30/07 11.05 (0.04) 2.99 2.95 -- -- -- -- 14.00 26.70
09/30/08 14.00 (0.00) (5.52) (5.52) -- (0.13) (0.01) (0.14) 8.34 (39.79)
09/30/09 8.34 0.01 (0.01) 0.00 (0.00) -- -- (0.00) 8.34 0.02(6)
Class B
05/02/06-09/30/06(3) $12.50 $(0.04) $(1.44) $(1.48) $ -- $ -- $ -- $ -- $11.02 (11.84)%
09/30/07 11.02 (0.11) 2.97 2.86 -- -- -- -- 13.88 25.95
09/30/08 13.88 (0.08) (5.45) (5.53) -- (0.13) (0.01) (0.14) 8.21 (40.21)
09/30/09 8.21 (0.04) 0.00 (0.04) -- -- -- -- 8.17 (0.49)(6)
Class C
05/02/06-09/30/06(3) $12.50 $(0.04) $(1.44) $(1.48) $ -- $ -- $ -- $ -- $11.02 (11.84)%
09/30/07 11.02 (0.12) 2.98 2.86 -- -- -- -- 13.88 25.95
09/30/08 13.88 (0.09) (5.44) (5.53) -- (0.13) (0.01) (0.14) 8.21 (40.20)
09/30/09 8.21 (0.04) (0.01) (0.05) -- -- -- -- 8.16 (0.61)(6)
Ratio
Net of net
Assets Ratio of investment
end of expenses income (loss)
period to average to average Portfolio
(000's) net assets(5) net assets(5) Turnover
- ------- ------------- ------------- ---------
$21,557 1.90%(4) 0.08%(4) 55%
30,845 1.90 (0.30) 70
16,830 1.90 (0.04) 93
68,492 1.90 0.19 148
$ 583 2.55%(4) (0.93)%(4) 55%
1,181 2.55 (0.89) 70
633 2.55 (0.68) 93
313 2.55 (0.53) 148
$ 3,363 2.55%(4) (1.07)%(4) 55%
5,357 2.55 (0.94) 70
2,199 2.55 (0.78) 93
724 2.55 (0.58) 148
- --------
(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)
(See Note 4):
09/30/06(4) 09/30/07 09/30/08 09/30/09
----------- -------- -------- --------
International Small-Cap Class A......... 1.27% 0.45% 0.54% 0.31%
International Small-Cap Class B......... 12.63 2.10 1.53 4.07
International Small-Cap Class C......... 2.88 0.77 0.77 1.68
(6)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).
See Notes to Financial Statements
23
SunAmerica Blue Chip Growth Fund
PORTFOLIO PROFILE -- September 30, 2009 -- (unaudited)
Industry Allocation*
Computers.............................. 9.8%
Medical-Biomedical/Gene................ 4.4
Web Portals/ISP........................ 4.2
Electronic Components-Semiconductors... 4.0
Oil Companies-Exploration & Production. 3.9
Wireless Equipment..................... 3.8
Retail-Drug Store...................... 3.2
Beverages-Non-alcoholic................ 3.1
Diversified Banking Institutions....... 2.8
Networking Products.................... 2.5
Sector Fund-Financial Services......... 2.5
Repurchase Agreement................... 2.4
Applications Software.................. 2.3
Instruments-Scientific................. 2.2
Medical-Generic Drugs.................. 2.1
Commercial Services-Finance............ 1.9
Medical Products....................... 1.9
Electric Products-Misc................. 1.9
Aerospace/Defense...................... 1.8
Enterprise Software/Service............ 1.8
Investment Management/Advisor Services. 1.8
Oil-Field Services..................... 1.6
Retail-Restaurants..................... 1.5
Retail-Discount........................ 1.5
Aerospace/Defense-Equipment............ 1.3
Agricultural Chemicals................. 1.2
Oil Companies-Integrated............... 1.2
Finance-Investment Banker/Broker....... 1.2
Transport-Rail......................... 1.2
Retail-Regional Department Stores...... 1.1
Apparel Manufacturers.................. 1.1
Oil & Gas Drilling..................... 1.1
Diversified Manufacturing Operations... 1.1
E-Commerce/Products.................... 1.0
Finance-Credit Card.................... 1.0
Medical-Drugs.......................... 1.0
Cosmetics & Toiletries................. 1.0
Casino Hotels.......................... 1.0
Medical Instruments.................... 1.0
Retail-Office Supplies................. 1.0
Consulting Services.................... 1.0
X-Ray Equipment........................ 1.0
Semiconductor Equipment................ 0.9
Multimedia............................. 0.8
Internet Security...................... 0.8
Retail-Consumer Electronics............ 0.7
Electronic Forms....................... 0.7
Computer Services...................... 0.7
Medical-HMO............................ 0.7
Medical Labs & Testing Services........ 0.7
Telecom Equipment-Fiber Optics......... 0.6
Pharmacy Services...................... 0.6
Electronic Measurement Instruments..... 0.6
Metal-Copper........................... 0.6
Retail-Apparel/Shoe.................... 0.6
Insurance-Multi-line................... 0.6
Retail-Computer Equipment.............. 0.6
Auto-Heavy Duty Trucks................. 0.5
Food-Dairy Products.................... 0.5
Medical-Wholesale Drug Distribution.... 0.3
----
99.9%
====
- --------
*Calculated as a percentage of net assets
24
SunAmerica Blue Chip Growth Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009
Market
Value
Security Description Shares (Note 3)
-------------------------------------------------------------------
COMMON STOCK -- 95.0%
Aerospace/Defense -- 1.8%
Lockheed Martin Corp........................... 4,050 $ 316,224
Raytheon Co.................................... 9,600 460,512
----------
776,736
----------
Aerospace/Defense-Equipment -- 1.3%
United Technologies Corp....................... 9,000 548,370
----------
Agricultural Chemicals -- 1.2%
Monsanto Co.................................... 6,593 510,298
----------
Apparel Manufacturers -- 1.1%
Coach, Inc..................................... 14,500 477,340
----------
Applications Software -- 2.3%
Microsoft Corp................................. 37,100 960,519
----------
Auto-Heavy Duty Trucks -- 0.5%
Navistar International Corp.+.................. 5,800 217,036
----------
Beverages-Non-alcoholic -- 3.1%
PepsiCo, Inc................................... 22,592 1,325,247
----------
Casino Hotels -- 1.0%
Wynn Resorts, Ltd.+............................ 5,900 418,251
----------
Commercial Services-Finance -- 1.9%
Visa, Inc., Class A............................ 11,750 812,042
----------
Computer Services -- 0.7%
Cognizant Technology Solutions Corp., Class A+. 7,500 289,950
----------
Computers -- 9.8%
Apple, Inc.+................................... 9,550 1,770,283
Hewlett-Packard Co............................. 27,400 1,293,554
International Business Machines Corp........... 5,200 621,972
Research In Motion, Ltd.+...................... 6,350 428,943
----------
4,114,752
----------
Consulting Services -- 1.0%
FTI Consulting, Inc.+.......................... 9,700 413,317
----------
Cosmetics & Toiletries -- 1.0%
The Procter & Gamble Co........................ 7,500 434,400
----------
Diversified Banking Institutions -- 2.8%
JPMorgan Chase & Co............................ 10,400 455,728
The Goldman Sachs Group, Inc................... 3,900 718,965
----------
1,174,693
----------
Diversified Manufacturing Operations -- 1.1%
Danaher Corp................................... 6,800 457,776
----------
E-Commerce/Products -- 1.0%
Amazon.com, Inc.+.............................. 4,700 438,792
----------
Electric Products-Misc. -- 1.9%
AMETEK, Inc.................................... 12,604 440,006
Emerson Electric Co............................ 8,800 352,704
----------
792,710
----------
Electronic Components-Semiconductors -- 4.0%
Avago Technologies, Ltd.+...................... 13,234 225,905
Broadcom Corp., Class A+....................... 10,600 325,314
Intel Corp..................................... 43,304 847,459
NVIDIA Corp.+.................................. 10,600 159,318
Market
Value
Security Description Shares (Note 3)
-------------------------------------------------------------------
Electronic Components-Semiconductors (continued)
Texas Instruments, Inc......................... 4,400 $ 104,236
----------
1,662,232
----------
Electronic Forms -- 0.7%
Adobe Systems, Inc.+........................... 8,923 294,816
----------
Electronic Measurement Instruments -- 0.6%
Agilent Technologies, Inc.+.................... 9,100 253,253
----------
Enterprise Software/Service -- 1.8%
Oracle Corp.................................... 36,700 764,828
----------
Finance-Credit Card -- 1.0%
Discover Financial Services.................... 26,900 436,587
----------
Finance-Investment Banker/Broker -- 1.2%
The Charles Schwab Corp........................ 26,400 505,560
----------
Food-Dairy Products -- 0.5%
Dean Foods Co.+................................ 12,100 215,259
----------
Instruments-Scientific -- 2.2%
Thermo Fisher Scientific, Inc.+................ 21,183 925,062
----------
Insurance-Multi-line -- 0.6%
Genworth Financial, Inc., Class A.............. 20,000 239,000
----------
Internet Security -- 0.8%
Symantec Corp.+................................ 20,100 331,047
----------
Investment Management/Advisor Services -- 1.8%
Invesco, Ltd................................... 33,600 764,736
----------
Medical Instruments -- 1.0%
Medtronic, Inc................................. 11,300 415,840
----------
Medical Labs & Testing Services -- 0.7%
Laboratory Corp. of America Holdings+.......... 4,200 275,940
----------
Medical Products -- 1.9%
Baxter International, Inc...................... 6,900 393,369
Johnson & Johnson.............................. 6,600 401,874
----------
795,243
----------
Medical-Biomedical/Gene -- 4.4%
Amgen, Inc.+................................... 3,300 198,759
Celgene Corp.+................................. 8,100 452,790
Genzyme Corp.+................................. 6,000 340,380
Gilead Sciences, Inc.+......................... 18,500 861,730
----------
1,853,659
----------
Medical-Drugs -- 1.0%
Abbott Laboratories............................ 8,800 435,336
----------
Medical-Generic Drugs -- 2.1%
Mylan, Inc.+................................... 34,700 555,547
Teva Pharmaceutical Industries, Ltd. ADR....... 6,714 339,460
----------
895,007
----------
Medical-HMO -- 0.7%
UnitedHealth Group, Inc........................ 11,500 287,960
----------
Medical-Wholesale Drug Distribution -- 0.3%
Cardinal Health, Inc........................... 5,400 144,720
----------
25
SunAmerica Blue Chip Growth Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
Market
Value
Security Description Shares (Note 3)
------------------------------------------------------------
COMMON STOCK (continued)
Metal-Copper -- 0.6%
Freeport-McMoRan Copper & Gold, Inc..... 3,600 $ 246,996
----------
Multimedia -- 0.8%
Time Warner, Inc........................ 11,566 332,869
----------
Networking Products -- 2.5%
Cisco Systems, Inc.+.................... 44,400 1,045,176
----------
Oil & Gas Drilling -- 1.1%
Transocean, Ltd.+....................... 5,392 461,178
----------
Oil Companies-Exploration & Production -- 3.9%
Apache Corp............................. 2,600 238,758
Devon Energy Corp....................... 2,400 161,592
Occidental Petroleum Corp............... 5,900 462,560
Ultra Petroleum Corp.+.................. 4,300 210,528
XTO Energy, Inc......................... 14,200 586,744
----------
1,660,182
----------
Oil Companies-Integrated -- 1.2%
Exxon Mobil Corp........................ 7,400 507,714
----------
Oil-Field Services -- 1.6%
Schlumberger, Ltd....................... 11,600 691,360
----------
Pharmacy Services -- 0.6%
Express Scripts, Inc.+.................. 3,300 256,014
----------
Retail-Apparel/Shoe -- 0.6%
American Eagle Outfitters, Inc.......... 14,300 241,098
----------
Retail-Computer Equipment -- 0.6%
GameStop Corp., Class A+................ 9,000 238,230
----------
Retail-Consumer Electronics -- 0.7%
Best Buy Co., Inc....................... 8,200 307,664
----------
Retail-Discount -- 1.5%
Target Corp............................. 5,500 256,740
Wal-Mart Stores, Inc.................... 7,500 368,175
----------
624,915
----------
Retail-Drug Store -- 3.2%
CVS Caremark Corp....................... 37,202 1,329,599
----------
Retail-Office Supplies -- 1.0%
Staples, Inc............................ 17,900 415,638
----------
Retail-Regional Department Stores -- 1.1%
Kohl's Corp.+........................... 8,400 479,220
----------
Retail-Restaurants -- 1.5%
Burger King Holdings, Inc............... 16,300 286,717
McDonald's Corp......................... 6,300 359,541
----------
646,258
----------
Semiconductor Equipment -- 0.9%
ASML Holding NV......................... 12,300 363,711
----------
Telecom Equipment-Fiber Optics -- 0.6%
Corning, Inc............................ 17,000 260,270
----------
Transport-Rail -- 1.2%
Union Pacific Corp...................... 8,600 501,810
----------
Shares/ Market
Principal Value
Security Description Amount (Note 3)
---------------------------------------------------------------
Web Portals/ISP -- 4.2%
Google, Inc., Class A+............... 3,550 $ 1,760,267
-----------
Wireless Equipment -- 3.8%
American Tower Corp., Class A+....... 11,800 429,520
QUALCOMM, Inc........................ 25,550 1,149,239
-----------
1,578,759
-----------
X-Ray Equipment -- 1.0%
Hologic, Inc.+....................... 24,700 403,598
-----------
Total Common Stock
(cost $38,117,750).................. 40,010,840
-----------
EXCHANGE-TRADED FUNDS -- 2.5%
Sector Fund-Financial Services -- 2.5%
Financial Select Sector SPDR Fund
(cost $799,328)..................... 69,915 1,044,530
-----------
Total Long-Term Investment Securities
(cost $38,917,078).................. 41,055,370
-----------
REPURCHASE AGREEMENT -- 2.4%
State Street Bank & Trust Co.
Joint Repurchase Agreement(1)
(cost $1,005,000)................... $1,005,000 1,005,000
-----------
TOTAL INVESTMENTS --
(cost $39,922,078)(2)............... 99.9% 42,060,370
Other assets less liabilities.......... 0.1 32,976
---------- -----------
NET ASSETS -- 100.0% $42,093,346
========== ===========
- --------
+ Non-income producing security
(1) See Note 3 for details of Joint Repurchase Agreement.
(2) See Note 7 for cost of investments on a tax basis.
ADR --American Depository Receipt
The following is a summary of the inputs used to value the Fund's net assets as
of September 30, 2009 (see Note 3):
Level 1 -- Level 2 -- Level 3 --
Unadjusted Other Significant
Quoted Observable Unobservable
Prices Inputs Inputs Total
----------- ---------- ------------ -----------
Long-Term Investment
Securities:
Common Stock
Computers......... $ 4,114,752 $ -- $-- $ 4,114,752
Other
Industries*...... 35,896,088 -- -- 35,896,088
Exchange-Traded
Funds............. 1,044,530 -- -- 1,044,530
Repurchase
Agreement........... -- 1,005,000 -- 1,005,000
----------- ---------- --- -----------
Total $41,055,370 $1,005,000 $-- $42,060,370
=========== ========== === ===========
- --------
*Sum of all other industries each of which individually has an aggregate market
value of less than 5% of net assets.
See Notes to Financial Statements
26
SunAmerica Growth Opportunities Fund
PORTFOLIO PROFILE -- September 30, 2009 -- (unaudited)
Industry Allocation*
Repurchase Agreement................... 24.5%
Consulting Services.................... 5.9
Retail-Discount........................ 3.8
Commodity Funds........................ 3.3
Telecom Services....................... 3.1
Internet Infrastructure Software....... 3.0
Pharmacy Services...................... 2.5
Retail-Apparel/Shoe.................... 2.5
Food-Dairy Products.................... 2.3
Commercial Services-Finance............ 2.2
Oil Companies-Exploration & Production. 2.2
Retail-Restaurants..................... 2.0
Medical-Nursing Homes.................. 1.9
Retail-Computer Equipment.............. 1.9
Retail-Auto Parts...................... 1.8
Theaters............................... 1.8
Auto-Heavy Duty Trucks................. 1.7
Data Processing/Management............. 1.7
Medical-HMO............................ 1.6
Cellular Telecom....................... 1.5
Networking Products.................... 1.5
Computers-Periphery Equipment.......... 1.4
Retail-Convenience Store............... 1.4
Retail-Pawn Shops...................... 1.4
Hazardous Waste Disposal............... 1.4
Transactional Software................. 1.4
E-Services/Consulting.................. 1.3
Poultry................................ 1.3
Satellite Telecom...................... 1.3
Broadcast Services/Program............. 1.2
Food-Wholesale/Distribution............ 1.2
Enterprise Software/Service............ 1.2
Transport-Services..................... 1.2
Internet Security...................... 1.0
Medical Information Systems............ 1.0
Diagnostic Equipment................... 1.0
Telecom Equipment-Fiber Optics......... 1.0
Applications Software.................. 1.0
Food-Misc.............................. 0.9
Aerospace/Defense-Equipment............ 0.9
Disposable Medical Products............ 0.9
Medical-Drugs.......................... 0.8
Rental Auto/Equipment.................. 0.7
Oil-Field Services..................... 0.7
Finance-Other Services................. 0.6
Cosmetics & Toiletries................. 0.5
Medical Labs & Testing Services........ 0.5
Medical-Outpatient/Home Medical........ 0.4
Electronic Components-Semiconductors... 0.1
-----
100.4%
=====
- --------
*Calculated as a percentage of net assets
27
SunAmerica Growth Opportunities Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009
Market
Value
Security Description Shares (Note 3)
----------------------------------------------------------------
COMMON STOCK -- 72.6%
Aerospace/Defense-Equipment -- 0.9%
Orbital Sciences Corp.+.................... 19,113 $ 286,122
----------
Applications Software -- 1.0%
Nuance Communications, Inc.+............... 20,983 313,906
----------
Auto-Heavy Duty Trucks -- 1.7%
Force Protection, Inc.+.................... 100,788 550,302
----------
Broadcast Services/Program -- 1.2%
DG FastChannel, Inc.+...................... 19,700 412,518
----------
Cellular Telecom -- 1.5%
MetroPCS Communications, Inc.+............. 26,551 248,517
Syniverse Holdings, Inc.+.................. 14,600 255,500
----------
504,017
----------
Commercial Services-Finance -- 2.2%
Equifax, Inc............................... 19,500 568,230
Jackson Hewitt Tax Service, Inc............ 33,740 172,074
----------
740,304
----------
Computers-Periphery Equipment -- 1.4%
Synaptics, Inc.+........................... 18,600 468,720
----------
Consulting Services -- 5.9%
FTI Consulting, Inc.+...................... 11,500 490,015
Huron Consulting Group, Inc.+.............. 12,200 315,126
Navigant Consulting, Inc.+................. 33,000 445,500
Watson Wyatt Worldwide, Inc., Class A...... 16,000 696,960
----------
1,947,601
----------
Cosmetics & Toiletries -- 0.5%
Chattem, Inc.+............................. 2,700 179,307
----------
Data Processing/Management -- 1.7%
Dun & Bradstreet Corp...................... 7,300 549,836
----------
Diagnostic Equipment -- 1.0%
Immucor, Inc.+............................. 18,400 325,680
----------
Disposable Medical Products -- 0.9%
C.R. Bard, Inc............................. 3,600 282,996
----------
E-Services/Consulting -- 1.3%
Websense, Inc.+............................ 25,700 431,760
----------
Electronic Components-Semiconductors -- 0.1%
IXYS Corp.................................. 3,690 31,402
----------
Enterprise Software/Service -- 1.2%
Novell, Inc.+.............................. 86,400 389,664
----------
Finance-Other Services -- 0.6%
The NASDAQ OMX Group, Inc.+................ 10,100 212,605
----------
Food-Dairy Products -- 2.3%
Dean Foods Co.+............................ 41,800 743,622
----------
Food-Misc. -- 0.9%
Smart Balance, Inc.+....................... 47,100 289,194
----------
Food-Wholesale/Distribution -- 1.2%
Spartan Stores, Inc........................ 28,700 405,531
----------
Hazardous Waste Disposal -- 1.4%
Stericycle, Inc.+.......................... 9,550 462,698
----------
Market
Value
Security Description Shares (Note 3)
------------------------------------------------------------------
Internet Infrastructure Software -- 3.0%
TeleCommunication Systems, Inc., Class A+.... 116,593 $ 974,717
----------
Internet Security -- 1.0%
VeriSign, Inc.+.............................. 14,200 336,398
----------
Medical Information Systems -- 1.0%
IMS Health, Inc.............................. 21,300 326,955
----------
Medical Labs & Testing Services -- 0.5%
Laboratory Corp. of America Holdings+........ 2,700 177,390
----------
Medical-Drugs -- 0.8%
Endo Pharmaceuticals Holdings, Inc.+......... 11,005 249,043
----------
Medical-HMO -- 1.6%
Magellan Health Services, Inc.+.............. 17,400 540,444
----------
Medical-Nursing Homes -- 1.9%
Sun Healthcare Group, Inc.+.................. 74,300 641,952
----------
Medical-Outpatient/Home Medical -- 0.4%
Amsurg Corp.+................................ 6,100 129,503
----------
Networking Products -- 1.5%
BigBand Networks, Inc.+...................... 122,900 492,829
----------
Oil Companies-Exploration & Production -- 2.2%
Plains Exploration & Production Co.+......... 26,400 730,224
----------
Oil-Field Services -- 0.7%
Willbros Group, Inc.+........................ 14,800 225,404
----------
Pharmacy Services -- 2.5%
Omnicare, Inc................................ 37,200 837,744
----------
Poultry -- 1.3%
Sanderson Farms, Inc......................... 11,400 429,096
----------
Rental Auto/Equipment -- 0.7%
Aaron's Inc.................................. 8,900 234,960
----------
Retail-Apparel/Shoe -- 2.5%
Hot Topic, Inc.+............................. 77,200 578,228
The Children's Place Retail Stores, Inc.+.... 8,300 248,668
----------
826,896
----------
Retail-Auto Parts -- 1.8%
Advance Auto Parts, Inc...................... 15,500 608,840
----------
Retail-Computer Equipment -- 1.9%
GameStop Corp., Class A+..................... 23,800 629,986
----------
Retail-Convenience Store -- 1.4%
The Pantry, Inc.+............................ 29,800 467,264
----------
Retail-Discount -- 3.8%
BJ's Wholesale Club, Inc.+................... 17,100 619,362
Family Dollar Stores, Inc.................... 23,700 625,680
----------
1,245,042
----------
Retail-Pawn Shops -- 1.4%
EZCORP, Inc., Class A+....................... 34,000 464,440
----------
Retail-Restaurants -- 2.0%
Burger King Holdings, Inc.................... 38,300 673,697
----------
Satellite Telecom -- 1.3%
GeoEye, Inc.+................................ 15,600 418,080
----------
28
SunAmerica Growth Opportunities Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
Shares/ Market
Principal Value
Security Description Amount (Note 3)
----------------------------------------------------------------
COMMON STOCK (continued)
Telecom Equipment-Fiber Optics -- 1.0%
Harmonic, Inc.+...................... 48,100 $ 321,308
-----------
Telecom Services -- 3.1%
MasTec, Inc.+........................ 55,700 676,755
Neutral Tandem, Inc.+................ 15,200 345,952
-----------
1,022,707
-----------
Theaters -- 1.8%
Regal Entertainment Group, Class A... 47,200 581,504
-----------
Transactional Software -- 1.4%
ACI Worldwide, Inc+.................. 22,300 337,399
Synchronoss Technologies, Inc.+...... 9,500 118,465
-----------
455,864
-----------
Transport-Services -- 1.2%
UTi Worldwide, Inc.+................. 26,300 380,824
-----------
Total Common Stock
(cost $21,718,290).................. 23,950,896
-----------
EXCHANGE-TRADED FUNDS -- 3.3%
Commodity Funds -- 3.3%
United States Natural Gas Fund, LP+
(cost $1,051,860)................... 93,300 1,095,342
-----------
Total Long-Term Investment Securities
(cost $22,770,150).................. 25,046,238
-----------
REPURCHASE AGREEMENT -- 24.5%
State Street Bank & Trust Co.
Joint Repurchase Agreement(1)
(cost $8,073,000)................... $8,073,000 8,073,000
-----------
TOTAL INVESTMENTS --
(cost $30,843,150)(2)............... 100.4% 33,119,238
Liabilities in excess of other assets.. (0.4) (141,932)
---------- -----------
NET ASSETS -- 100.0% $32,977,306
========== ===========
- --------
+ Non-income producing security
(1)See Note 3 for details of Joint Repurchase Agreement.
(2)See Note 7 for cost of investment on a tax basis.
The following is a summary of the inputs used to value the Fund's net assets as
of September 30, 2009 (see Note 3):
Level 1 -- Level 2 -- Level 3 --
Unadjusted Other Significant
Quoted Observable Unobservable
Prices Inputs Inputs Total
----------- ---------- ------------ -----------
Long-Term Investment
Securities:
Common Stock
Consulting
Services......... $ 1,947,601 $ -- $-- $ 1,947,601
Other
Industries*...... 22,003,295 -- -- 22,003,295
Exchange-Traded
Funds............. 1,095,342 -- -- 1,095,342
Repurchase
Agreement........... -- 8,073,000 -- 8,073,000
----------- ---------- --- -----------
Total $25,046,238 $8,073,000 $-- $33,119,238
=========== ========== === ===========
- --------
*Sum of all other industries each of which individually has an aggregate market
value of less than 5% of net assets.
See Notes to Financial Statements
29
SunAmerica New Century Fund
PORTFOLIO PROFILE -- September 30, 2009 -- (unaudited)
Industry Allocation*
Repurchase Agreement................... 20.7%
Consulting Services.................... 5.7
Retail-Discount........................ 3.8
Commodity Funds........................ 3.4
Telecom Services....................... 3.2
Pharmacy Services...................... 2.6
Oil Companies-Exploration & Production. 2.3
Food-Dairy Products.................... 2.3
Retail-Apparel/Shoe.................... 2.2
Cellular Telecom....................... 2.1
Retail-Auto Parts...................... 2.0
Food-Misc.............................. 1.9
Soap & Cleaning Preparation............ 1.9
Medical Labs & Testing Services........ 1.9
Finance-Investment Banker/Broker....... 1.9
Data Processing/Management............. 1.8
Internet Security...................... 1.7
Medical-Nursing Homes.................. 1.7
Enterprise Software/Service............ 1.6
Wireless Equipment..................... 1.5
Computers-Periphery Equipment.......... 1.5
Theaters............................... 1.5
Retail-Convenience Store............... 1.4
Transactional Software................. 1.4
Retail-Computer Equipment.............. 1.4
Electronic Components-Semiconductors... 1.4
E-Services/Consulting.................. 1.4
Electric Products-Misc................. 1.4
Retail-Restaurants..................... 1.4
Poultry................................ 1.3
Schools................................ 1.3
Broadcast Services/Program............. 1.3
Auto-Heavy Duty Trucks................. 1.2
Hazardous Waste Disposal............... 1.1
Oil Companies-Integrated............... 1.1
Internet Infrastructure Software....... 1.1
Entertainment Software................. 1.1
Medical-Biomedical/Gene................ 1.0
Medical Information Systems............ 1.0
Consumer Products-Misc................. 1.0
Retail-Consumer Electronics............ 0.9
Transport-Truck........................ 0.9
Medical-Drugs.......................... 0.9
Applications Software.................. 0.9
Gold Mining............................ 0.9
Diversified Manufacturing Operations... 0.9
Rental Auto/Equipment.................. 0.7
Medical Instruments.................... 0.7
Medical-Generic Drugs.................. 0.6
Oil & Gas Drilling..................... 0.5
Commercial Services-Finance............ 0.4
X-Ray Equipment........................ 0.4
-----
100.2%
=====
- --------
*Calculated as a percentage of net assets
30
SunAmerica New Century Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009
Market
Value
Security Description Shares (Note 3)
----------------------------------------------------------------
COMMON STOCK -- 76.1%
Applications Software -- 0.9%
Nuance Communications, Inc.+............... 22,946 $ 343,272
----------
Auto-Heavy Duty Trucks -- 1.2%
Force Protection, Inc.+.................... 82,291 449,309
----------
Broadcast Services/Program -- 1.3%
DG FastChannel, Inc.+...................... 22,600 473,244
----------
Cellular Telecom -- 2.1%
Syniverse Holdings, Inc.+.................. 45,200 791,000
----------
Commercial Services-Finance -- 0.4%
Jackson Hewitt Tax Service, Inc............ 28,525 145,478
----------
Computers-Periphery Equipment -- 1.5%
Synaptics, Inc.+........................... 21,900 551,880
----------
Consulting Services -- 5.7%
FTI Consulting, Inc.+...................... 13,200 562,452
Huron Consulting Group, Inc.+.............. 14,000 361,620
Navigant Consulting, Inc.+................. 38,600 521,100
Watson Wyatt Worldwide, Inc., Class A...... 15,700 683,892
----------
2,129,064
----------
Consumer Products-Misc. -- 1.0%
Clorox Co.................................. 6,200 364,684
----------
Data Processing/Management -- 1.8%
Dun & Bradstreet Corp...................... 8,700 655,284
----------
Diversified Manufacturing Operations -- 0.9%
ITT Corp................................... 6,100 318,115
----------
E-Services/Consulting -- 1.4%
Websense, Inc.+............................ 30,800 517,440
----------
Electric Products-Misc. -- 1.4%
AMETEK, Inc................................ 14,700 513,177
----------
Electronic Components-Semiconductors -- 1.4%
IXYS Corp.................................. 4,187 35,631
MEMC Electronic Materials, Inc.+........... 29,000 482,270
----------
517,901
----------
Enterprise Software/Service -- 1.6%
Novell, Inc.+.............................. 129,000 581,790
----------
Entertainment Software -- 1.1%
Activision Blizzard, Inc.+................. 31,600 391,524
----------
Finance-Investment Banker/Broker -- 1.9%
TD Ameritrade Holding Corp.+............... 20,200 396,324
The Charles Schwab Corp.................... 16,100 308,315
----------
704,639
----------
Food-Dairy Products -- 2.3%
Dean Foods Co.+............................ 47,700 848,583
----------
Food-Misc. -- 1.9%
American Italian Pasta Co., Class A+....... 15,100 410,418
Smart Balance, Inc.+....................... 49,200 302,088
----------
712,506
----------
Gold Mining -- 0.9%
Barrick Gold Corp.......................... 8,600 325,940
----------
Market
Value
Security Description Shares (Note 3)
---------------------------------------------------------------
Hazardous Waste Disposal -- 1.1%
Stericycle, Inc.+............................ 8,800 $426,360
--------
Internet Infrastructure Software -- 1.1%
TeleCommunication Systems, Inc., Class A+.... 48,527 405,686
--------
Internet Security -- 1.7%
Symantec Corp.+.............................. 39,400 648,918
--------
Medical Information Systems -- 1.0%
IMS Health, Inc.............................. 24,100 369,935
--------
Medical Instruments -- 0.7%
St. Jude Medical, Inc.+...................... 6,400 249,664
--------
Medical Labs & Testing Services -- 1.9%
Laboratory Corp. of America Holdings+........ 3,000 197,100
Quest Diagnostics, Inc....................... 9,800 511,462
--------
708,562
--------
Medical-Biomedical/Gene -- 1.0%
Myriad Genetics, Inc.+....................... 14,000 383,600
--------
Medical-Drugs -- 0.9%
Cephalon, Inc.+.............................. 6,000 349,440
--------
Medical-Generic Drugs -- 0.6%
Mylan, Inc.+................................. 15,100 241,751
--------
Medical-Nursing Homes -- 1.7%
Sun Healthcare Group, Inc.+.................. 75,100 648,864
--------
Oil & Gas Drilling -- 0.5%
Transocean, Ltd.+............................ 2,300 196,719
--------
Oil Companies-Exploration & Production -- 2.3%
Plains Exploration & Production Co.+......... 30,900 854,694
--------
Oil Companies-Integrated -- 1.1%
Hess Corp.................................... 7,900 422,334
--------
Pharmacy Services -- 2.6%
Omnicare, Inc................................ 43,400 977,368
--------
Poultry -- 1.3%
Sanderson Farms, Inc......................... 13,000 489,320
--------
Rental Auto/Equipment -- 0.7%
Aaron's Inc.................................. 10,500 277,200
--------
Retail-Apparel/Shoe -- 2.2%
Hot Topic, Inc.+............................. 72,300 541,527
The Children's Place Retail Stores, Inc.+.... 9,800 293,608
--------
835,135
--------
Retail-Auto Parts -- 2.0%
Advance Auto Parts, Inc...................... 19,200 754,176
--------
Retail-Computer Equipment -- 1.4%
GameStop Corp., Class A+..................... 19,600 518,812
--------
Retail-Consumer Electronics -- 0.9%
Best Buy Co., Inc............................ 9,400 352,688
--------
Retail-Convenience Store -- 1.4%
The Pantry, Inc.+............................ 34,200 536,256
--------
31
SunAmerica New Century Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
Shares/ Market
Principal Value
Security Description Amount (Note 3)
---------------------------------------------------------------
COMMON STOCK (continued)
Retail-Discount -- 3.8%
BJ's Wholesale Club, Inc.+........... 19,500 $ 706,290
Family Dollar Stores, Inc............ 26,700 704,880
-----------
1,411,170
-----------
Retail-Restaurants -- 1.4%
Burger King Holdings, Inc............ 28,700 504,833
-----------
Schools -- 1.3%
Apollo Group, Inc., Class A+......... 6,500 478,855
-----------
Soap & Cleaning Preparation -- 1.9%
Church & Dwight Co., Inc............. 12,500 709,250
-----------
Telecom Services -- 3.2%
MasTec, Inc.+........................ 66,100 803,115
Neutral Tandem, Inc.+................ 17,300 393,748
-----------
1,196,863
-----------
Theaters -- 1.5%
Regal Entertainment Group, Class A... 44,000 542,080
-----------
Transactional Software -- 1.4%
ACI Worldwide, Inc+.................. 25,800 390,354
Synchronoss Technologies, Inc.+...... 10,900 135,923
-----------
526,277
-----------
Transport-Truck -- 0.9%
Landstar System, Inc................. 9,232 351,370
-----------
Wireless Equipment -- 1.5%
American Tower Corp., Class A+....... 15,800 575,120
-----------
X-Ray Equipment -- 0.4%
Hologic, Inc.+....................... 8,600 140,524
-----------
Total Common Stock
(cost $26,035,341).................. 28,418,654
-----------
EXCHANGE-TRADED FUNDS -- 3.4%
Commodity Funds -- 3.4%
United States Natural Gas Fund, LP+
(cost $1,220,891)................... 108,300 1,271,442
-----------
Total Long-Term Investment Securities
(cost $27,256,232).................. 29,690,096
-----------
REPURCHASE AGREEMENT -- 20.7%
State Street Bank & Trust Co.
Joint Repurchase Agreement(1)
(cost $7,753,000)................... $7,753,000 7,753,000
-----------
TOTAL INVESTMENTS --
(cost $35,009,232)(2)............... 100.2% 37,443,096
Liabilities in excess of other assets.. (0.2) (77,295)
---------- -----------
NET ASSETS -- 100.0% $37,365,801
========== ===========
- --------
+ 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.
The following is a summary of the inputs used to value the Fund's net assets as
of September 30, 2009 (see Note 3):
Level 1 -- Level 2 -- Level 3 --
Unadjusted Other Significant
Quoted Observable Unobservable
Prices Inputs Inputs Total
----------- ---------- ------------ -----------
Long-Term Investment
Securities:
Common Stock
Consulting
Services......... $ 2,129,064 $ -- $-- $ 2,129,064
Other
Industries*...... 26,289,590 -- -- 26,289,590
Exchange-Traded
Funds............. 1,271,442 -- -- 1,271,442
Repurchase
Agreement........... -- 7,753,000 -- 7,753,000
----------- ---------- --- -----------
Total $29,690,096 $7,753,000 $-- $37,443,096
=========== ========== === ===========
- --------
*Sum of all other industries each of which individually has an aggregate market
value of less than 5% of net assets.
See Notes to Financial Statements
32
SunAmerica Growth and Income Fund
PORTFOLIO PROFILE -- September 30, 2009 -- (unaudited)
Industry Allocation*
Oil Companies-Integrated............. 10.7%
Diversified Banking Institutions..... 9.6
Electric-Integrated.................. 6.0
Computers............................ 5.4
Medical-Drugs........................ 4.9
Insurance-Multi-line................. 4.1
Telephone-Integrated................. 4.0
Aerospace/Defense.................... 3.6
Retail-Discount...................... 3.5
Web Portals/ISP...................... 3.0
Beverages-Non-alcoholic.............. 3.0
Food-Misc............................ 2.9
Oil & Gas Drilling................... 2.1
Applications Software................ 2.1
Aerospace/Defense-Equipment.......... 2.1
Diversified Manufacturing Operations. 2.0
Non-Hazardous Waste Disposal......... 2.0
Electronic Components-Semiconductors. 1.9
Medical Products..................... 1.8
Banks-Super Regional................. 1.7
Cable/Satellite TV................... 1.6
Networking Products.................. 1.6
Medical Instruments.................. 1.6
Retail-Building Products............. 1.5
Retail-Drug Store.................... 1.5
Banks-Fiduciary...................... 1.5
Tobacco.............................. 1.5
Cosmetics & Toiletries............... 1.5
Consumer Products-Misc............... 1.5
Retail-Consumer Electronics.......... 1.4
Wireless Equipment................... 1.4
Retail-Restaurants................... 1.4
Enterprise Software/Service.......... 1.4
Medical-HMO.......................... 1.3
Semiconductor Equipment.............. 1.0
Medical-Biomedical/Gene.............. 0.9
Repurchase Agreement................. 0.8
----
99.8%
====
- --------
*Calculated as a percentage of net assets
33
SunAmerica Growth and Income Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009
Market
Value
Security Description Shares (Note 3)
----------------------------------------------------------------
COMMON STOCK -- 99.0%
Aerospace/Defense -- 3.6%
General Dynamics Corp...................... 13,000 $ 839,800
Raytheon Co................................ 21,000 1,007,370
----------
1,847,170
----------
Aerospace/Defense-Equipment -- 2.1%
United Technologies Corp................... 18,200 1,108,926
----------
Applications Software -- 2.1%
Microsoft Corp............................. 42,900 1,110,681
----------
Banks-Fiduciary -- 1.5%
The Bank of New York Mellon Corp........... 27,000 782,730
----------
Banks-Super Regional -- 1.7%
Wells Fargo & Co........................... 31,000 873,580
----------
Beverages-Non-alcoholic -- 3.0%
PepsiCo, Inc............................... 12,700 744,982
The Coca-Cola Co........................... 15,100 810,870
----------
1,555,852
----------
Cable/Satellite TV -- 1.6%
Comcast Corp., Class A..................... 50,000 844,500
----------
Computers -- 5.4%
Apple, Inc.+............................... 4,000 741,480
Hewlett-Packard Co......................... 18,200 859,222
International Business Machines Corp....... 10,000 1,196,100
----------
2,796,802
----------
Consumer Products-Misc. -- 1.5%
Kimberly-Clark Corp........................ 13,000 766,740
----------
Cosmetics & Toiletries -- 1.5%
The Procter & Gamble Co.................... 13,400 776,128
----------
Diversified Banking Institutions -- 9.6%
Bank of America Corp....................... 90,200 1,526,184
Citigroup, Inc............................. 120,000 580,800
JPMorgan Chase & Co........................ 35,500 1,555,610
Morgan Stanley............................. 25,000 772,000
The Goldman Sachs Group, Inc............... 3,000 553,050
----------
4,987,644
----------
Diversified Manufacturing Operations -- 2.0%
General Electric Co........................ 62,500 1,026,250
----------
Electric-Integrated -- 6.0%
Exelon Corp................................ 15,000 744,300
FPL Group, Inc............................. 15,000 828,450
PG&E Corp.................................. 19,100 773,359
Xcel Energy, Inc........................... 40,500 779,220
----------
3,125,329
----------
Electronic Components-Semiconductors -- 1.9%
Intel Corp................................. 51,000 998,070
----------
Enterprise Software/Service -- 1.4%
Oracle Corp................................ 34,900 727,316
----------
Market
Value
Security Description Shares (Note 3)
-------------------------------------------------------
Food-Misc. -- 2.9%
H.J. Heinz Co...................... 20,000 $ 795,000
Kraft Foods, Inc., Class A......... 28,000 735,560
----------
1,530,560
----------
Insurance-Multi-line -- 4.1%
MetLife, Inc....................... 28,000 1,065,960
The Allstate Corp.................. 35,000 1,071,700
----------
2,137,660
----------
Medical Instruments -- 1.6%
Medtronic, Inc..................... 22,000 809,600
----------
Medical Products -- 1.8%
Johnson & Johnson.................. 15,100 919,439
----------
Medical-Biomedical/Gene -- 0.9%
Amgen, Inc.+....................... 8,000 481,840
----------
Medical-Drugs -- 4.9%
Abbott Laboratories................ 20,500 1,014,135
Merck & Co., Inc................... 23,200 733,816
Pfizer, Inc........................ 47,050 778,678
----------
2,526,629
----------
Medical-HMO -- 1.3%
UnitedHealth Group, Inc............ 27,000 676,080
----------
Networking Products -- 1.6%
Cisco Systems, Inc.+............... 34,500 812,130
----------
Non-Hazardous Waste Disposal -- 2.0%
Waste Management, Inc.............. 34,000 1,013,880
----------
Oil & Gas Drilling -- 2.1%
Transocean, Ltd.+.................. 13,000 1,111,890
----------
Oil Companies-Integrated -- 10.7%
Chevron Corp....................... 21,800 1,535,374
ConocoPhillips..................... 34,000 1,535,440
Exxon Mobil Corp................... 22,000 1,509,420
Marathon Oil Corp.................. 31,000 988,900
----------
5,569,134
----------
Retail-Building Products -- 1.5%
Lowe's Cos., Inc................... 38,000 795,720
----------
Retail-Consumer Electronics -- 1.4%
Best Buy Co., Inc.................. 20,000 750,400
----------
Retail-Discount -- 3.5%
Target Corp........................ 18,000 840,240
Wal-Mart Stores, Inc............... 20,000 981,800
----------
1,822,040
----------
Retail-Drug Store -- 1.5%
CVS Caremark Corp.................. 22,000 786,280
----------
Retail-Restaurants -- 1.4%
McDonald's Corp.................... 13,000 741,910
----------
Semiconductor Equipment -- 1.0%
Applied Materials, Inc............. 40,000 536,000
----------
34
SunAmerica Growth and Income Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
Shares/ Market
Principal Value
Security Description Amount (Note 3)
-----------------------------------------------------------------
COMMON STOCK (continued)
Telephone-Integrated -- 4.0%
AT&T, Inc................................ 38,000 $ 1,026,380
Qwest Communications International, Inc.. 150,000 571,500
Verizon Communications, Inc.............. 16,400 496,428
-----------
2,094,308
-----------
Tobacco -- 1.5%
Philip Morris International, Inc......... 16,000 779,840
-----------
Web Portals/ISP -- 3.0%
Google, Inc., Class A+................... 1,300 644,605
Yahoo!, Inc.+............................ 52,000 926,120
-----------
1,570,725
-----------
Wireless Equipment -- 1.4%
QUALCOMM, Inc............................ 16,500 742,170
-----------
Total Long-Term Investment Securities
(cost $49,358,332)...................... 51,535,953
-----------
REPURCHASE AGREEMENT -- 0.8%
State Street Bank & Trust Co.
Joint Repurchase Agreement(1)
(cost $404,000)......................... $404,000 404,000
-----------
TOTAL INVESTMENTS --
(cost $49,762,332)(2)................... 99.8% 51,939,953
Other assets less liabilities.............. 0.2 82,150
-------- -----------
NET ASSETS -- 100.0% $52,022,103
======== ===========
- --------
+ 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.
The following is a summary of the inputs used to value the Fund's net assets as
of September 30, 2009 (see Note 3):
Level 1 -- Level 2 -- Level 3 --
Unadjusted Other Significant
Quoted Observable Unobservable
Prices Inputs Inputs Total
----------- ---------- ------------ -----------
Long-Term Investment
Securities:
Common Stock
Computers.......... $ 2,796,802 $ -- $-- $ 2,796,802
Diversified
Banking
Institutions...... 4,987,644 -- -- 4,987,644
Electric --
Integrated........ 3,125,329 -- -- 3,125,329
Oil Companies --
Integrated........ 5,569,134 -- -- 5,569,134
Other
Industries*....... 35,057,044 -- -- 35,057,044
Repurchase
Agreement............ -- 404,000 -- 404,000
----------- -------- --- -----------
Total $51,535,953 $404,000 $-- $51,939,953
=========== ======== === ===========
- --------
*Sum of all other industries each of which individually has an aggregate market
value of less than 5% of net assets.
See Notes to Financial Statements
35
SunAmerica Balanced Assets Fund
PORTFOLIO PROFILE -- September 30, 2009 -- (unaudited)
Industry Allocation*
Federal Home Loan Mtg. Corp............ 8.0%
Diversified Banking Institutions....... 5.8
Repurchase Agreements.................. 4.7
Federal National Mtg. Assoc............ 4.5
Oil Companies-Integrated............... 4.2
Electric-Integrated.................... 4.0
Computers.............................. 3.9
United States Treasury Notes........... 3.4
Diversified Financial Services......... 2.6
Telephone-Integrated................... 2.1
Oil Companies-Exploration & Production. 1.9
Medical-Drugs.......................... 1.9
Aerospace/Defense...................... 1.8
Insurance-Multi-line................... 1.8
Electronic Components-Semiconductors... 1.6
Retail-Discount........................ 1.5
Medical-Biomedical/Gene................ 1.4
Retail-Drug Store...................... 1.4
Banks-Commercial....................... 1.3
Diversified Manufacturing Operations... 1.3
Web Portals/ISP........................ 1.3
Oil & Gas Drilling..................... 1.2
Medical Products....................... 1.2
Insurance-Property/Casualty............ 1.2
Banks-Super Regional................... 1.2
Wireless Equipment..................... 1.2
Applications Software.................. 1.1
Government National Mtg. Assoc......... 1.1
Networking Products.................... 1.1
Beverages-Non-alcoholic................ 1.1
Aerospace/Defense-Equipment............ 1.0
Cable/Satellite TV..................... 1.0
Special Purpose Entities............... 1.0
United States Treasury Bonds........... 1.0
Food-Misc.............................. 0.9
Retail-Restaurants..................... 0.9
Transport-Rail......................... 0.8
Finance-Investment Banker/Broker....... 0.8
Cosmetics & Toiletries................. 0.8
Sector Fund-Financial Services......... 0.8
Medical-Generic Drugs.................. 0.7
Semiconductor Equipment................ 0.7
Retail-Consumer Electronics............ 0.7
Instruments-Scientific................. 0.7
Non-Hazardous Waste Disposal........... 0.7
Medical-HMO............................ 0.6
Commercial Services-Finance............ 0.6
Electric Products-Misc................. 0.6
Investment Management/Advisor Services. 0.6
Enterprise Software/Service............ 0.6
Consumer Products-Misc................. 0.5
Oil-Field Services..................... 0.5
Banks-Fiduciary........................ 0.5
Insurance-Life/Health.................. 0.5
Pipelines.............................. 0.4
Tobacco................................ 0.4
Retail-Building Products............... 0.4
Multimedia............................. 0.4
Agricultural Chemicals................. 0.4
Finance-Credit Card.................... 0.4
Retail-Regional Department Stores... 0.4%
Casino Hotels....................... 0.4
Apparel Manufacturers............... 0.4
E-Commerce/Products................. 0.3
Office Automation & Equipment....... 0.3
Medical Instruments................. 0.3
Retail-Office Supplies.............. 0.3
Consulting Services................. 0.3
X-Ray Equipment..................... 0.3
Transport-Air Freight............... 0.3
Pharmacy Services................... 0.3
Banks-Money Center.................. 0.2
Medical-Hospitals................... 0.2
Computer Services................... 0.2
Internet Security................... 0.2
Telecom Services.................... 0.2
Metal-Copper........................ 0.2
Electric-Generation................. 0.2
Electronic Forms.................... 0.2
Cellular Telecom.................... 0.2
Medical Labs & Testing Services..... 0.2
Auto-Heavy Duty Trucks.............. 0.2
Finance-Other Services.............. 0.2
Telecom Equipment-Fiber Optics...... 0.2
Electronic Measurement Instruments.. 0.2
Retail-Apparel/Shoe................. 0.2
Retail-Computer Equipment........... 0.2
Food-Dairy Products................. 0.2
Chemicals-Diversified............... 0.2
Steel-Producers..................... 0.1
Finance-Auto Loans.................. 0.1
Airlines............................ 0.1
Insurance-Mutual.................... 0.1
Finance-Commercial.................. 0.1
Sovereign........................... 0.1
Medical-Wholesale Drug Distribution. 0.1
Satellite Telecom................... 0.1
Containers-Metal/Glass.............. 0.1
Insurance Brokers................... 0.1
Finance-Mortgage Loan/Banker........ 0.1
Paper & Related Products............ 0.1
Property Trust...................... 0.1
Gas-Distribution.................... 0.1
Transport-Services.................. 0.1
Metal-Aluminum...................... 0.1
Independent Power Producers......... 0.1
Schools............................. 0.1
Brewery............................. 0.1
Transport-Equipment & Leasing....... 0.1
Diversified Minerals................ 0.1
Building Products-Cement............ 0.1
Chemicals-Specialty................. 0.1
Metal-Diversified................... 0.1
-----
100.3%
=====
- --------
*Calculated as a percentage of net assets
36
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009
Market
Value
Security Description Shares (Note 3)
-------------------------------------------------------------------
COMMON STOCK -- 57.1%
Aerospace/Defense -- 1.8%
General Dynamics Corp.......................... 9,000 $ 581,400
Lockheed Martin Corp........................... 2,600 203,008
Raytheon Co.................................... 16,800 805,896
----------
1,590,304
----------
Aerospace/Defense-Equipment -- 1.0%
United Technologies Corp....................... 14,900 907,857
----------
Agricultural Chemicals -- 0.4%
Monsanto Co.................................... 4,287 331,814
----------
Apparel Manufacturers -- 0.3%
Coach, Inc..................................... 9,500 312,740
----------
Applications Software -- 1.1%
Microsoft Corp................................. 38,778 1,003,962
----------
Auto-Heavy Duty Trucks -- 0.2%
Navistar International Corp.+.................. 3,800 142,196
----------
Banks-Fiduciary -- 0.4%
The Bank of New York Mellon Corp............... 13,000 376,870
----------
Banks-Super Regional -- 0.6%
Wells Fargo & Co............................... 19,400 546,692
----------
Beverages-Non-alcoholic -- 1.0%
PepsiCo, Inc................................... 14,834 870,162
----------
Cable/Satellite TV -- 0.5%
Comcast Corp., Class A......................... 25,000 422,250
----------
Casino Hotels -- 0.3%
Wynn Resorts, Ltd.+............................ 3,900 276,471
----------
Commercial Services-Finance -- 0.6%
Visa, Inc., Class A............................ 7,650 528,692
----------
Computer Services -- 0.2%
Cognizant Technology Solutions Corp., Class A+. 4,900 189,434
----------
Computers -- 3.9%
Apple, Inc.+................................... 6,300 1,167,831
Hewlett-Packard Co............................. 23,900 1,128,319
International Business Machines Corp........... 7,400 885,114
Research In Motion, Ltd.+...................... 4,100 276,955
----------
3,458,219
----------
Consulting Services -- 0.3%
FTI Consulting, Inc.+.......................... 6,300 268,443
----------
Consumer Products-Misc. -- 0.5%
Kimberly-Clark Corp............................ 7,000 412,860
----------
Cosmetics & Toiletries -- 0.7%
The Procter & Gamble Co........................ 11,300 654,496
----------
Diversified Banking Institutions -- 4.1%
Bank of America Corp........................... 43,988 744,277
Citigroup, Inc................................. 92,000 445,280
JPMorgan Chase & Co............................ 24,400 1,069,208
Morgan Stanley................................. 16,000 494,080
The Goldman Sachs Group, Inc................... 5,000 921,750
----------
3,674,595
----------
Market
Value
Security Description Shares (Note 3)
---------------------------------------------------------------
Diversified Manufacturing Operations -- 1.2%
Danaher Corp............................... 4,500 $ 302,940
General Electric Co........................ 49,568 813,907
----------
1,116,847
----------
E-Commerce/Products -- 0.3%
Amazon.com, Inc.+.......................... 3,100 289,416
----------
Electric Products-Misc. -- 0.6%
AMETEK, Inc................................ 8,234 287,449
Emerson Electric Co........................ 5,800 232,464
----------
519,913
----------
Electric-Integrated -- 2.3%
Exelon Corp................................ 11,000 545,820
FPL Group, Inc............................. 10,000 552,300
PG&E Corp.................................. 11,700 473,733
Xcel Energy, Inc........................... 24,100 463,684
----------
2,035,537
----------
Electronic Components-Semiconductors -- 1.5%
Avago Technologies, Ltd.+.................. 8,623 147,195
Broadcom Corp., Class A+................... 6,900 211,761
Intel Corp................................. 41,300 808,241
NVIDIA Corp.+.............................. 6,900 103,707
Texas Instruments, Inc..................... 2,900 68,701
----------
1,339,605
----------
Electronic Forms -- 0.2%
Adobe Systems, Inc.+....................... 5,834 192,755
----------
Electronic Measurement Instruments -- 0.2%
Agilent Technologies, Inc.+................ 5,900 164,197
----------
Enterprise Software/Service -- 0.6%
Oracle Corp................................ 24,000 500,160
----------
Finance-Credit Card -- 0.3%
Discover Financial Services................ 17,600 285,648
----------
Finance-Investment Banker/Broker -- 0.4%
The Charles Schwab Corp.................... 17,300 331,295
----------
Food-Dairy Products -- 0.2%
Dean Foods Co.+............................ 7,900 140,541
----------
Food-Misc. -- 0.8%
H.J. Heinz Co.............................. 9,000 357,750
Kraft Foods, Inc., Class A................. 14,000 367,780
----------
725,530
----------
Independent Power Producers -- 0.0%
Mirant Corp.+.............................. 186 3,056
----------
Instruments-Scientific -- 0.7%
Thermo Fisher Scientific, Inc.+............ 13,837 604,262
----------
Insurance-Multi-line -- 1.3%
Genworth Financial, Inc., Class A+......... 13,100 156,545
MetLife, Inc............................... 13,000 494,910
The Allstate Corp.......................... 17,000 520,540
----------
1,171,995
----------
37
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
Market
Value
Security Description Shares (Note 3)
-----------------------------------------------------------------
COMMON STOCK (continued)
Insurance-Property/Casualty -- 1.2%
Chubb Corp................................... 9,800 $ 494,018
The Travelers Cos., Inc...................... 11,000 541,530
----------
1,035,548
----------
Internet Security -- 0.2%
Symantec Corp.+.............................. 13,100 215,757
----------
Investment Management/Advisor Services -- 0.6%
Invesco, Ltd................................. 22,000 500,720
----------
Medical Instruments -- 0.3%
Medtronic, Inc............................... 7,400 272,320
----------
Medical Labs & Testing Services -- 0.2%
Laboratory Corp. of America Holdings+........ 2,700 177,390
----------
Medical Products -- 1.1%
Baxter International, Inc.................... 4,500 256,545
Johnson & Johnson............................ 12,400 755,036
----------
1,011,581
----------
Medical-Biomedical/Gene -- 1.4%
Amgen, Inc.+................................. 2,100 126,483
Celgene Corp.+............................... 5,300 296,270
Genzyme Corp.+............................... 4,000 226,920
Gilead Sciences, Inc.+....................... 12,100 563,618
----------
1,213,291
----------
Medical-Drugs -- 1.7%
Abbott Laboratories.......................... 13,800 682,686
Merck & Co., Inc............................. 10,800 341,604
Pfizer, Inc.................................. 28,714 475,217
----------
1,499,507
----------
Medical-Generic Drugs -- 0.6%
Mylan, Inc.+................................. 22,700 363,427
Teva Pharmaceutical Industries, Ltd. ADR..... 4,347 219,784
----------
583,211
----------
Medical-HMO -- 0.6%
UnitedHealth Group, Inc...................... 20,500 513,320
----------
Medical-Wholesale Drug Distribution -- 0.1%
Cardinal Health, Inc......................... 3,500 93,800
----------
Metal-Copper -- 0.2%
Freeport-McMoRan Copper & Gold, Inc.......... 2,400 164,664
----------
Multimedia -- 0.2%
Time Warner, Inc............................. 7,600 218,728
----------
Networking Products -- 1.1%
Cisco Systems, Inc.+......................... 41,000 965,140
----------
Non-Hazardous Waste Disposal -- 0.5%
Waste Management, Inc........................ 16,000 477,120
----------
Oil & Gas Drilling -- 1.2%
Transocean, Ltd.+............................ 12,983 1,110,436
----------
Oil Companies-Exploration & Production -- 1.2%
Apache Corp.................................. 1,750 160,702
Devon Energy Corp............................ 1,550 104,362
Occidental Petroleum Corp.................... 3,900 305,760
Ultra Petroleum Corp.+....................... 2,800 137,088
Market
Value
Security Description Shares (Note 3)
---------------------------------------------------------------------
Oil Companies-Exploration & Production (continued)
XTO Energy, Inc.................................. 9,300 $ 384,276
----------
1,092,188
----------
Oil Companies-Integrated -- 3.9%
Chevron Corp..................................... 12,328 868,261
ConocoPhillips................................... 16,000 722,560
Exxon Mobil Corp................................. 15,900 1,090,899
Marathon Oil Corp................................ 25,000 797,500
----------
3,479,220
----------
Oil-Field Services -- 0.5%
Schlumberger, Ltd................................ 7,600 452,960
----------
Pharmacy Services -- 0.2%
Express Scripts, Inc.+........................... 2,200 170,676
----------
Printing-Commercial -- 0.0%
World Color Press, Inc.+......................... 193 1,853
----------
Retail-Apparel/Shoe -- 0.2%
American Eagle Outfitters, Inc................... 9,300 156,798
----------
Retail-Building Products -- 0.4%
Lowe's Cos., Inc................................. 18,000 376,920
----------
Retail-Computer Equipment -- 0.2%
GameStop Corp., Class A+......................... 5,900 156,173
----------
Retail-Consumer Electronics -- 0.7%
Best Buy Co., Inc................................ 16,400 615,328
----------
Retail-Discount -- 1.5%
Target Corp...................................... 12,600 588,168
Wal-Mart Stores, Inc............................. 14,900 731,441
----------
1,319,609
----------
Retail-Drug Store -- 1.4%
CVS Caremark Corp................................ 34,861 1,245,932
----------
Retail-Office Supplies -- 0.3%
Staples, Inc..................................... 11,700 271,674
----------
Retail-Regional Department Stores -- 0.3%
Kohl's Corp.+.................................... 5,500 313,775
----------
Retail-Restaurants -- 0.8%
Burger King Holdings, Inc........................ 10,700 188,213
McDonald's Corp.................................. 10,100 576,407
----------
764,620
----------
Semiconductor Equipment -- 0.7%
Applied Materials, Inc........................... 30,000 402,000
ASML Holding NV.................................. 8,000 236,560
----------
638,560
----------
Telecom Equipment-Fiber Optics -- 0.2%
Corning, Inc..................................... 11,100 169,941
----------
Telephone-Integrated -- 1.3%
AT&T, Inc........................................ 28,135 759,926
Verizon Communications, Inc...................... 13,100 396,537
----------
1,156,463
----------
Tobacco -- 0.4%
Philip Morris International, Inc................. 8,000 389,920
----------
38
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
Shares/ Market
Principal Value
Security Description Amount (Note 3)
----------------------------------------------------------------------
COMMON STOCK (continued)
Transport-Rail -- 0.4%
Union Pacific Corp............................. 5,600 $ 326,760
-----------
Web Portals/ISP -- 1.3%
Google, Inc., Class A+......................... 2,300 1,140,455
-----------
Wireless Equipment -- 1.2%
American Tower Corp., Class A+................. 7,700 280,280
QUALCOMM, Inc.................................. 16,750 753,415
-----------
1,033,695
-----------
X-Ray Equipment -- 0.3%
Hologic, Inc.+................................. 16,100 263,074
-----------
Total Common Stock
(cost $48,641,126)............................ 50,977,941
-----------
EXCHANGE-TRADED FUNDS -- 0.8%
Sector Fund -- Financial Services -- 0.8%
Financial Select Sector SPDR Fund
(cost $520,181)............................... 45,529 680,203
-----------
PREFERRED STOCK -- 0.5%
Banks-Money Center -- 0.1%
Santander Finance Preferred SA
4.00%(1)...................................... 4,347 71,552
-----------
Banks-Super Regional -- 0.1%
Wachovia Capital Trust IX
6.38%......................................... 3,100 67,022
-----------
Diversified Financial Services -- 0.2%
General Electric Capital Corp.
8.00%(2)...................................... 7,510 174,307
-----------
Finance-Mortgage Loan/Banker -- 0.0%
Federal Home Loan Mtg. Corp.
8.38%(1)...................................... 1,300 2,353
-----------
Special Purpose Entity -- 0.1%
Structured Repackaged Asset-Backed
Trust Securities
3.00%(1)...................................... 9,200 161,460
-----------
Total Preferred Stock
(cost $612,114)............................... 476,694
-----------
WARRANTS+ -- 0.0%
Printing-Commercial -- 0.0%
World Color Press, Inc.
Expires 07/20/14
(strike price $13.00)......................... 109 333
World Color Press, Inc.
Expires 07/20/14
(strike price $16.30)......................... 109 223
-----------
Total Warrants
(cost $3,502)................................. 556
-----------
ASSET BACKED SECURITIES -- 2.3%
Diversified Financial Services -- 2.3%
Banc of America Commercial Mtg., Inc.
Series 2006-6, Class AM
5.39% due 10/10/45(3)......................... $ 80,000 60,025
Bear Stearns Commercial Mtg. Securities, Inc.
Series 2007-PW15, Class A2
5.21% due 02/11/44(3)......................... 165,000 162,581
Market
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------------------
Diversified Financial Services (continued)
Chase Mtg. Finance Corp.
Series 2007-A2, Class 1A1
4.05% due 07/25/37(4)(5)......................... $190,389 $ 161,113
Citigroup Commercial Mtg. Trust
Series 2008-C7, Class AM
6.10% due 12/01/49(3)(5)......................... 12,000 8,318
Commercial Mtg. Asset Trust
Series 1999-C1, Class D
7.35% due 01/17/32(3)(5)......................... 15,000 16,060
Commercial Mtg. Pass-Through Certs.
Series 2004-LB2A, Class A3
4.22% due 03/10/39(3)............................ 576,609 582,528
GE Capital Commercial Mtg. Corp.
Series 2004-C2, Class A4
4.89% due 03/10/40(3)............................ 55,000 53,875
GMAC Commercial Mtg. Securities, Inc.
Series 2003-C2, Class A2
5.67% due 05/10/40(3)(5)......................... 3,000 3,129
JP Morgan Chase Commercial Mtg. Securities Corp.
Series 2006-LDP9, Class AM
5.37% due 05/15/47(3)............................ 334,000 248,311
JP Morgan Chase Commercial Mtg. Securities Corp.
Series 2008-C2, Class AM
6.80% due 02/12/51(3)(5)......................... 271,000 136,887
LB Commercial Conduit Mtg. Trust
Series 1998-C1, Class E
7.00% due 02/18/30(3)............................ 14,000 15,418
Swift Master Auto Receivables Trust
Series 2007-2, Class A
0.89% due 10/15/12(1)............................ 439,937 433,047
Wells Fargo Mtg. Backed Securities Trust
Series 2006-AR12, Class 2A1
6.10% due 09/25/36(4)(5)......................... 158,148 124,855
----------
Total Asset Backed Securities
(cost $2,247,927)................................ 2,006,147
----------
U.S. CORPORATE BONDS & NOTES -- 13.1%
Aerospace/Defense -- 0.0%
Meccanica Holdings USA
Company Guar. Notes
7.38% due 07/15/39*.............................. 32,000 37,721
----------
Agricultural Chemicals -- 0.0%
Terra Capital, Inc.
Company Guar. Notes
7.00% due 02/01/17............................... 35,000 36,488
----------
Airlines -- 0.1%
American Airlines, Inc.
Pass Through Certs.
Series 2001-1, Class A-2
6.82% due 05/23/11............................... 70,000 64,400
American Airlines, Inc.
Pass Through Certs.
Series 2001-2, Class A-2
7.86% due 04/01/13............................... 4,000 3,995
Continental Airlines, Inc.
Pass Through Certs.
Series 2001-1, Class A-2
6.50% due 06/15/11............................... 15,000 14,325
39
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
Market
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------
U.S. CORPORATE BONDS & NOTES (continued)
Airlines (continued)
Delta Air Lines, Inc.
Pass Through Certs.
Series 2001-1, Class A2
7.11% due 03/18/13.................... $ 20,000 $ 19,500
United AirLines, Inc.
Pass Through Certs.
Series 2001-1 Class B
6.93% due 09/01/11.................... 13,301 13,234
--------
115,454
--------
Auction Houses/Art Dealers -- 0.0%
KAR Holdings, Inc.
Company Guar. Notes
4.48% due 05/01/14(1)................. 16,000 14,400
KAR Holdings, Inc.
Company Guar. Notes
8.75% due 05/01/14.................... 9,000 8,910
--------
23,310
--------
Banks-Commercial -- 0.7%
BB&T Corp.
Sub. Notes
0.71% due 05/23/17(1)................. 42,000 35,672
BB&T Corp.
Senior Notes
3.38% due 09/25/13.................... 30,000 30,120
BB&T Corp.
Sub. Notes
5.25% due 11/01/19.................... 60,000 59,703
CoBank ACB
Sub. Notes
7.88% due 04/16/18*................... 16,000 15,578
Credit Suisse/New York Branch
Sub. Notes
6.00% due 02/15/18.................... 32,000 33,503
KeyBank NA
Sub. Notes
5.45% due 03/03/16.................... 54,000 47,793
KeyBank NA
Sub. Notes
7.41% due 10/15/27.................... 16,000 16,030
Union Bank of California NA
Sub. Notes
5.95% due 05/11/16.................... 120,000 119,322
Wachovia Bank NA
Sub. Notes
5.00% due 08/15/15.................... 149,000 143,648
Wachovia Bank NA
Sub. Notes
5.60% due 03/15/16.................... 51,000 51,586
Zions Bancorporation
Senior Notes
7.75% due 09/23/14.................... 49,000 43,855
--------
596,810
--------
Market
Principal Value
Security Description Amount (Note 3)
----------------------------------------------------------
Banks-Fiduciary -- 0.1%
State Street Capital Trust IV
Company Guar. Notes
1.30% due 06/15/37(1)................ $ 80,000 $ 51,594
--------
Banks-Money Center -- 0.1%
Chase Capital III
Company Guar. Notes
0.91% due 03/01/27(1)................ 114,000 77,228
--------
Banks-Super Regional -- 0.5%
BAC Capital Trust XIII
Bank Guar. Notes
0.70% due 03/15/12(1)(6)............. 164,000 89,012
National City Corp.
Senior Notes
4.90% due 01/15/15................... 22,000 22,265
National City Corp.
Sub. Notes
6.88% due 05/15/19................... 60,000 65,141
PNC Funding Corp.
Bank Guar. Notes
4.25% due 09/21/15................... 30,000 30,118
PNC Preferred Funding Trust II
Jr. Sub. Notes
6.11% due 03/15/12*(6)(7)............ 45,000 26,625
USB Capital IX
Company Guar. Notes
6.19% due 04/15/11(6)(7)............. 100,000 76,750
Wachovia Corp.
Senior Notes
0.57% due 06/15/17(1)................ 24,000 20,658
Wachovia Corp.
Sub. Notes
5.63% due 10/15/16................... 35,000 36,541
Wells Fargo Bank NA
Sub. Notes
5.75% due 05/16/16................... 95,000 97,678
--------
464,788
--------
Beverages-Non-alcoholic -- 0.1%
Bottling Group LLC
Company Guar. Notes
6.95% due 03/15/14................... 67,000 78,085
--------
Brewery -- 0.1%
Anheuser-Busch InBev Worldwide, Inc.
Company Guar. Notes
7.75% due 01/15/19*.................. 43,000 50,880
--------
Broadcast Services/Program -- 0.0%
Nexstar Broadcasting, Inc.
Company Guar. Notes
7.00% due 01/15/14*(8)............... 20,842 9,379
Nexstar Broadcasting, Inc.
Company Guar. Notes
7.00% due 01/15/14................... 7,000 3,500
--------
12,879
--------
40
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
Market
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------------
U.S. CORPORATE BONDS & NOTES (continued)
Cable/Satellite TV -- 0.5%
CCH II LLC/CCH II Capital Corp.
Senior Notes
10.25% due 09/15/10+(9)(10).................. $ 7,000 $ 7,875
CCH II LLC/CCH II Capital Corp.
Company Guar. Notes
10.25% due 10/01/13+*(9)(10)................. 77,000 81,042
CCO Holdings LLC/CCO Holdings Capital Corp.
Senior Notes
8.75% due 11/15/13+(9)(10)................... 8,000 8,120
Charter Communications Operating LLC/Charter
Communications Operating Capital
Senior Notes
8.38% due 04/30/14*(10)...................... 79,000 80,580
Comcast Corp.
Company Guar. Notes
5.85% due 11/15/15........................... 39,000 42,721
COX Communications, Inc.
Senior Notes
6.95% due 06/01/38*.......................... 23,000 24,808
COX Communications, Inc.
Notes
7.13% due 10/01/12........................... 35,000 39,043
COX Communications, Inc.
Senior Notes
9.38% due 01/15/19*.......................... 80,000 101,078
CSC Holdings, Inc.
Senior Notes
8.50% due 06/15/15*.......................... 25,000 26,250
DirecTV Holdings LLC/DirecTV Financing Co.
Company Guar. Notes
7.63% due 05/15/16........................... 35,000 37,450
Time Warner Cable, Inc.
Company Guar. Notes
5.85% due 05/01/17........................... 28,000 29,522
--------
478,489
--------
Casino Hotels -- 0.1%
MGM Mirage, Inc.
Senior Sec. Notes
11.13% due 11/15/17*......................... 15,000 16,538
Turning Stone Resort Casino Enterprise
Senior Notes
9.13% due 09/15/14*.......................... 29,000 27,695
--------
44,233
--------
Cellular Telecom -- 0.1%
Cricket Communications, Inc.
Company Guar. Notes
9.38% due 11/01/14........................... 5,000 5,075
Cricket Communications, Inc.
Company Guar. Notes
10.00% due 07/15/15.......................... 25,000 25,687
Nextel Communications, Inc.
Company Guar. Notes
5.95% due 03/15/14........................... 50,000 44,250
--------
75,012
--------
Market
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------
Chemicals-Diversified -- 0.2%
E.I. du Pont de Nemours & Co.
Senior Notes
4.75% due 03/15/15.................... $35,000 $ 37,515
Olin Corp.
Senior Notes
8.88% due 08/15/19.................... 10,000 10,450
The Dow Chemical Co.
Senior Notes
5.90% due 02/15/15.................... 35,000 35,923
The Dow Chemical Co.
Senior Notes
8.55% due 05/15/19.................... 45,000 50,587
--------
134,475
--------
Chemicals-Specialty -- 0.1%
Huntsman International LLC
Company Guar. Notes
7.88% due 11/15/14.................... 20,000 18,650
Momentive Performance Materials, Inc.
Company Guar. Notes
9.75% due 12/01/14.................... 13,000 10,075
Momentive Performance Materials, Inc.
Company Guar. Notes
12.50% due 06/15/14*.................. 16,000 16,680
--------
45,405
--------
Computer Services -- 0.0%
Compucom Systems, Inc.
Senior Sub. Notes
12.50% due 10/01/15*.................. 30,000 27,975
--------
Consumer Products-Misc. -- 0.1%
American Achievement Corp.
Company Guar. Notes
8.25% due 04/01/12*................... 45,000 44,775
--------
Containers-Metal/Glass -- 0.0%
Ball Corp.
Company Guar. Notes
7.13% due 09/01/16.................... 36,000 36,720
--------
Cosmetics & Toiletries -- 0.1%
Procter & Gamble Co.
Senior Notes
4.60% due 01/15/14.................... 43,000 46,195
--------
Decision Support Software -- 0.0%
Vangent, Inc.
Company Guar. Notes
9.63% due 02/15/15.................... 25,000 23,281
--------
Direct Marketing -- 0.0%
Affinity Group, Inc.
Company Guar. Notes
9.00% due 02/15/12.................... 45,000 31,050
--------
Diversified Banking Institutions -- 1.6%
Bank of America Corp.
Senior Notes
4.90% due 05/01/13.................... 35,000 35,881
41
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
Market
Principal Value
Security Description Amount (Note 3)
----------------------------------------------------------------
U.S. CORPORATE BONDS & NOTES (continued)
Diversified Banking Institutions (continued)
Bank of America Corp.
Sub. Notes
5.75% due 08/15/16........................ $ 88,000 $ 86,631
Bank of America Corp.
Senior Notes
5.75% due 12/01/17........................ 58,000 57,894
Bank of America Corp.
Notes
6.50% due 08/01/16........................ 53,000 55,711
Bank of America Corp.
Sub. Notes
7.25% due 10/15/25........................ 15,000 15,184
Citigroup, Inc.
Sub. Notes
5.00% due 09/15/14........................ 111,000 105,626
Citigroup, Inc.
Senior Notes
5.50% due 04/11/13........................ 32,000 32,747
Citigroup, Inc.
Senior Notes
5.85% due 07/02/13........................ 52,000 52,937
Citigroup, Inc.
Global Sub. Notes
6.00% due 10/31/33........................ 40,000 33,473
Citigroup, Inc.
Senior Notes
6.13% due 05/15/18........................ 67,000 65,971
Citigroup, Inc.
Senior Notes
6.38% due 08/12/14........................ 30,000 31,017
Citigroup, Inc.
Senior Notes
6.88% due 03/05/38........................ 44,000 44,133
GMAC LLC
Senior Notes
6.00% due 12/15/11........................ 50,000 46,875
GMAC LLC
Company Guar. Notes
6.88% due 09/15/11*....................... 126,000 119,070
GMAC LLC
Sub. Notes
8.00% due 12/31/18*....................... 135,000 101,925
JPMorgan Chase & Co.
Senior Notes
3.70% due 01/20/15........................ 44,000 43,612
JPMorgan Chase & Co.
Sub. Notes
4.89% due 09/01/10(7)..................... 56,000 52,360
Morgan Stanley
Sub. Notes
4.75% due 04/01/14........................ 34,000 33,749
Morgan Stanley
Senior Notes
5.63% due 09/23/19........................ 30,000 29,499
Morgan Stanley
Senior Notes
6.00% due 04/28/15........................ 141,000 149,315
Market
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------------
Diversified Banking Institutions (continued)
The Goldman Sachs Group, Inc.
Senior Notes
5.13% due 01/15/15........................ $ 78,000 $ 81,512
The Goldman Sachs Group, Inc.
Senior Notes
5.95% due 01/18/18........................ 60,000 62,248
The Goldman Sachs Group, Inc.
Sub. Notes
6.75% due 10/01/37........................ 76,000 78,434
----------
1,415,804
----------
Diversified Financial Services -- 0.2%
General Electric Capital Corp.
Senior Notes
5.88% due 01/14/38........................ 63,000 57,776
General Electric Capital Corp.
Senior Notes
6.15% due 08/07/37........................ 92,000 87,306
USAA Capital Corp.
Notes
3.50% due 07/17/14*....................... 29,000 28,976
----------
174,058
----------
Diversified Manufacturing Operations -- 0.0%
General Electric Co.
Senior Notes
5.25% due 12/06/17........................ 22,000 22,577
Textron, Inc.
Senior Notes
6.20% due 03/15/15........................ 12,000 12,048
----------
34,625
----------
Electric-Generation -- 0.2%
Edison Mission Energy
Senior Notes
7.20% due 05/15/19........................ 65,000 52,650
The AES Corp.
Senior Notes
8.00% due 10/15/17........................ 60,000 60,375
The AES Corp.
Senior Notes
8.88% due 02/15/11........................ 85,000 87,550
----------
200,575
----------
Electric-Integrated -- 1.1%
Ameren Corp.
Senior Notes
8.88% due 05/15/14........................ 49,000 55,078
CenterPoint Energy Houston Electric LLC
General Refunding Mtg.
7.00% due 03/01/14........................ 58,000 65,914
Commonwealth Edison Co.
1st Mtg. Notes
6.15% due 09/15/17........................ 40,000 44,201
Dominion Resources, Inc.
Jr. Sub Notes
6.30% due 09/30/11(7)..................... 109,000 87,200
42
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
Market
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------------
U.S. CORPORATE BONDS & NOTES (continued)
Electric-Integrated (continued)
Energy East Corp.
Notes
6.75% due 07/15/36........................... $36,000 $ 40,890
FirstEnergy Corp.
Senior Notes
7.38% due 11/15/31........................... 51,000 57,167
FirstEnergy Solutions Corp.
Company Guar. Notes
6.80% due 08/15/39*.......................... 40,000 42,398
Mirant Americas Generation LLC
Senior Notes
8.50% due 10/01/21........................... 35,000 30,450
Mirant Mid-Atlantic LLC
Pass Through Certs.,
Series B
9.13% due 06/30/17........................... 40,254 41,059
Nevada Power Co.
General Refunding Mtg.
7.13% due 03/15/19........................... 98,000 111,471
Ohio Power Co.
Senior Notes
5.38% due 10/01/21........................... 60,000 60,879
Pennsylvania Electric Co
Senior Notes
5.20% due 04/01/20........................... 62,000 61,806
Pennsylvania Electric Co.
Senior Notes
6.15% due 10/01/38........................... 80,000 80,010
Pepco Holdings, Inc.
Senior Notes
6.13% due 06/01/17........................... 21,000 21,665
PSEG Power LLC
Company Guar. Notes
7.75% due 04/15/11........................... 65,000 70,226
Puget Sound Energy, Inc.
Senior Sec. Notes
5.76% due 10/01/39........................... 40,000 40,796
Texas Competitive Electric Holdings Co., LLC
Company Guar. Notes
Series A
10.25% due 11/01/15.......................... 35,000 25,200
Texas Competitive Electric Holdings Co., LLC
Company Guar. Notes
Series B
10.25% due 11/01/15.......................... 5,000 3,600
Toledo Edison Co.
1st Mtg. Notes
7.25% due 05/01/20........................... 30,000 35,330
--------
975,340
--------
Electronic Components-Semiconductors -- 0.1%
National Semiconductor Corp.
Senior Notes
6.60% due 06/15/17........................... 56,000 55,342
Spansion LLC
Senior Sec. Notes
5.33% due 06/01/13+*(9)(10).................. 35,000 35,438
--------
90,780
--------
Market
Principal Value
Security Description Amount (Note 3)
----------------------------------------------------------------
Electronics-Military -- 0.1%
L-3 Communications Corp.
Senior Notes
5.20% due 10/15/19*........................ $24,000 $ 24,060
L-3 Communications Corp.
Company Guar. Notes
6.38% due 10/15/15......................... 20,000 20,200
--------
44,260
--------
Finance-Auto Loans -- 0.1%
Ford Motor Credit Co. LLC
Senior Notes
7.38% due 02/01/11......................... 75,000 74,609
Ford Motor Credit Co. LLC
Notes
7.88% due 06/15/10......................... 45,000 45,197
--------
119,806
--------
Finance-Commercial -- 0.1%
CIT Group, Inc.
Senior Notes
5.65% due 02/13/17(16)(17)................. 36,000 22,511
Textron Financial Corp.
Senior Notes
5.40% due 04/28/13......................... 80,000 78,552
--------
101,063
--------
Finance-Consumer Loans -- 0.0%
SLM Corp.
Senior Notes
5.13% due 08/27/12......................... 34,000 29,093
--------
Finance-Credit Card -- 0.1%
FIA Card Services NA
Sub. Notes
7.13% due 11/15/12......................... 41,000 44,302
--------
Finance-Investment Banker/Broker -- 0.4%
Jefferies Group, Inc.
Senior Notes
8.50% due 07/15/19......................... 12,000 12,700
Lehman Brothers Holdings Capital Trust VII
Company Guar. Notes
5.86% due 05/31/12+(6)(9)(10).............. 27,000 3
Lehman Brothers Holdings, Inc.
Senior Notes
5.50% due 04/04/16+(9)(10)................. 26,000 4,420
Lehman Brothers Holdings, Inc.
Sub. Notes
6.75% due 12/28/17+(9)(10)................. 30,000 3
Lehman Brothers Holdings, Inc.
Sub. Notes
7.50% due 05/11/38+(9)(10)................. 38,000 4
Merrill Lynch & Co., Inc.
Sub. Notes
5.70% due 05/02/17......................... 34,000 33,291
Merrill Lynch & Co., Inc.
Sub. Notes
6.22% due 09/15/26......................... 40,000 37,916
Merrill Lynch & Co., Inc.
Senior Notes
6.40% due 08/28/17......................... 37,000 37,472
43
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
Market
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------------------
U.S. CORPORATE BONDS & NOTES (continued)
Finance-Investment Banker/Broker (continued)
The Bear Stearns Cos., Inc.
Senior Notes
5.30% due 10/30/15................................. $ 66,000 $ 69,687
The Bear Stearns Cos., Inc.
Senior Notes
6.40% due 10/02/17................................. 117,000 127,281
--------
322,777
--------
Finance-Mortgage Loan/Banker -- 0.1%
Countrywide Financial Corp.
Sub. Notes
6.25% due 05/15/16................................. 35,000 35,055
Countrywide Home Loans, Inc.
Company Guar. Notes
4.00% due 03/22/11................................. 40,000 40,654
--------
75,709
--------
Finance-Other Services -- 0.0%
National Rural Utilities Cooperative Finance Corp.
Senior Sec. Notes
3.88% due 09/16/15................................. 30,000 30,325
--------
Food-Meat Products -- 0.0%
Smithfield Foods, Inc.
Senior Sec. Notes
10.00% due 07/15/14*............................... 25,000 26,250
--------
Food-Misc. -- 0.1%
HJ Heinz Finance Co.
Company Guar. Notes
7.13% due 08/01/39*................................ 32,000 37,875
Kraft Foods, Inc.
Senior Notes
6.75% due 02/19/14................................. 56,000 62,474
--------
100,349
--------
Funeral Services & Related Items -- 0.0%
Carriage Services, Inc.
Senior Notes
7.88% due 01/15/15................................. 25,000 23,438
--------
Gambling (Non-Hotel) -- 0.0%
Downstream Development Authority
Senior Sec. Notes
12.00% due 10/15/15*............................... 30,000 23,250
--------
Gas-Distribution -- 0.1%
Sempra Energy
Senior Notes
6.50% due 06/01/16................................. 60,000 66,327
--------
Home Furnishings -- 0.0%
Simmons Co.
Senior Disc. Notes
10.00% due 12/15/14(2)............................. 1,000 250
--------
Independent Power Producers -- 0.1%
NRG Energy, Inc.
Company Guar. Notes
7.38% due 02/01/16................................. 55,000 53,212
--------
Market
Principal Value
Security Description Amount (Note 3)
-------------------------------------------------------------
Industrial Gases -- 0.0%
Airgas, Inc.
Company Guar. Notes
4.50% due 09/15/14...................... $ 24,000 $ 24,425
--------
Insurance Brokers -- 0.1%
Marsh & McLennan Cos., Inc.
Senior Notes
5.15% due 09/15/10...................... 60,000 61,231
USI Holdings Corp.
Senior Sub. Notes
9.75% due 05/15/15*..................... 25,000 22,156
--------
83,387
--------
Insurance-Life/Health -- 0.5%
Americo Life, Inc.
Notes
7.88% due 05/01/13*..................... 134,000 107,200
Genworth Financial, Inc.
Notes
5.75% due 06/15/14...................... 30,000 26,898
Monumental Global Funding II
Senior Sec. Notes
5.65% due 07/14/11*..................... 66,000 67,488
Pacific Life Insurance Co.
Notes
9.25% due 06/15/39*..................... 36,000 41,280
Prudential Financial, Inc.
Notes
4.75% due 09/17/15...................... 54,000 53,621
Prudential Financial, Inc.
Senior Notes
6.20% due 01/15/15...................... 58,000 61,362
Torchmark Corp.
Senior Notes
9.25% due 06/15/19...................... 30,000 33,728
Unum Group
Senior Notes
7.13% due 09/30/16...................... 35,000 35,413
--------
426,990
--------
Insurance-Multi-line -- 0.3%
Hartford Financial Services Group, Inc.
Senior Notes
5.95% due 10/15/36...................... 75,000 61,248
MetLife, Inc.
Senior Notes
6.75% due 06/01/16...................... 35,000 39,060
Metropolitan Life Global Funding I
Notes
2.88% due 09/17/12*..................... 70,000 70,173
Metropolitan Life Global Funding I
Notes
5.13% due 06/10/14*..................... 76,000 79,397
Nationwide Mutual Insurance Co.
Notes
9.38% due 08/15/39*..................... 50,000 53,283
--------
303,161
--------
44
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
Market
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------------
U.S. CORPORATE BONDS & NOTES (continued)
Insurance-Mutual -- 0.1%
Liberty Mutual Group, Inc.
Notes
6.50% due 03/15/35*......................... $ 40,000 $ 32,311
Liberty Mutual Group, Inc.
Company Guar. Bonds
10.75% due 06/15/38*(7)..................... 77,000 73,150
--------
105,461
--------
Insurance-Property/Casualty -- 0.1%
Markel Corp.
Senior Notes
7.13% due 09/30/19.......................... 30,000 31,118
W.R. Berkley Corp.
Senior Notes
6.25% due 02/15/37.......................... 21,000 18,984
--------
50,102
--------
Investment Management/Advisor Services -- 0.0%
Ameriprise Financial, Inc.
Senior Notes
5.35% due 11/15/10.......................... 2,000 2,037
--------
Medical Products -- 0.1%
CareFusion Corp.
Senior Notes
4.13% due 08/01/12*......................... 40,000 41,060
LVB Acquisition Holding LLC
Company Guar. Notes
10.00% due 10/15/17......................... 25,000 26,625
--------
67,685
--------
Medical-Biomedical/Gene -- 0.1%
Amgen, Inc.
Senior Notes
5.85% due 06/01/17.......................... 70,000 76,990
--------
Medical-Drugs -- 0.2%
Axcan Intermediate Holdings, Inc.
Senior Notes
9.25% due 03/01/15.......................... 15,000 15,825
Merck & Co., Inc.
Senior Notes
4.00% due 06/30/15.......................... 28,000 29,421
Wyeth
Bonds
5.50% due 02/01/14.......................... 126,000 137,605
--------
182,851
--------
Medical-Generic Drugs -- 0.1%
Watson Pharmaceuticals, Inc.
Senior Notes
6.13% due 08/15/19.......................... 69,000 72,567
--------
Medical-HMO -- 0.1%
UnitedHealth Group, Inc.
Senior Notes
5.25% due 03/15/11.......................... 35,000 36,376
WellPoint, Inc.
Senior Notes
5.00% due 01/15/11.......................... 21,000 21,644
--------
58,020
--------
Market
Principal Value
Security Description Amount (Note 3)
----------------------------------------------------------
Medical-Hospitals -- 0.2%
Community Health Systems, Inc.
Company Guar. Notes
8.88% due 07/15/15................... $ 55,000 $ 56,375
HCA, Inc.
Senior Notes
7.50% due 11/15/95................... 50,000 35,374
HCA, Inc.
Senior Notes
8.50% due 04/15/19*.................. 75,000 78,375
HCA, Inc.
Senior Sec. Notes
9.25% due 11/15/16................... 50,000 51,688
--------
221,812
--------
Metal-Aluminum -- 0.1%
Alcoa, Inc.
Senior Notes
6.50% due 06/15/18................... 65,000 62,942
--------
Metal-Copper -- 0.0%
Freeport-McMoRan Copper & Gold, Inc.
Senior Notes
8.38% due 04/01/17................... 37,000 39,359
--------
Mining -- 0.0%
Noranda Aluminum Acquisition Corp.
Company Guar. Notes
5.41% due 11/15/14(1)(11)............ 25,918 18,272
--------
Multimedia -- 0.2%
News America, Inc.
Company Guar. Notes
6.15% due 03/01/37................... 42,000 41,095
News America, Inc.
Company Guar. Notes
6.90% due 08/15/39*.................. 40,000 42,583
Time Warner Entertainment Co. LP
Senior Notes
8.38% due 07/15/33................... 56,000 67,305
--------
150,983
--------
Non-Hazardous Waste Disposal -- 0.1%
Allied Waste North America, Inc.
Company Guar. Notes
7.38% due 04/15/14................... 25,000 26,014
Waste Management, Inc.
Company Guar. Notes
6.38% due 11/15/12................... 29,000 31,738
Waste Management, Inc.
Company Guar. Notes
7.75% due 05/15/32................... 40,000 48,598
--------
106,350
--------
Office Automation & Equipment -- 0.3%
Pitney Bowes, Inc.
Senior Notes
5.25% due 01/15/37................... 234,000 241,630
Xerox Corp.
Senior Notes
6.35% due 05/15/18................... 35,000 36,386
--------
278,016
--------
45
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
Market
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------------
U.S. CORPORATE BONDS & NOTES (continued)
Oil Companies-Exploration & Production -- 0.4%
Chesapeake Energy Corp.
Company Guar. Notes
7.50% due 09/15/13.......................... $175,000 $173,906
Hilcorp Energy I LP
Senior Notes
7.75% due 11/01/15*......................... 30,000 28,350
Kerr-McGee Corp.
Company Guar. Notes
6.95% due 07/01/24.......................... 83,000 88,864
Sabine Pass LNG LP
Senior Sec. Notes
7.50% due 11/30/16.......................... 75,000 64,031
--------
355,151
--------
Oil Companies-Integrated -- 0.2%
ConocoPhillips Holding Co.
Senior Notes
6.95% due 04/15/29.......................... 39,000 45,769
Hess Corp.
Senior Notes
7.13% due 03/15/33.......................... 35,000 38,511
Hess Corp.
Senior Notes
7.88% due 10/01/29.......................... 80,000 93,704
--------
177,984
--------
Oil Refining & Marketing -- 0.0%
Valero Energy Corp.
Senior Notes
6.63% due 06/15/37.......................... 41,000 36,616
--------
Paper & Related Products -- 0.1%
Georgia-Pacific LLC
Company Guar. Notes
7.00% due 01/15/15*......................... 30,000 29,550
Georgia-Pacific LLC
Company Guar. Notes
7.13% due 01/15/17*......................... 10,000 9,775
MeadWestvaco Corp.
Senior Notes
7.38% due 09/01/19.......................... 35,000 36,664
--------
75,989
--------
Pharmacy Services -- 0.1%
Express Scripts, Inc.
Senior Notes
6.25% due 06/15/14.......................... 35,000 38,463
Express Scripts, Inc.
Senior Notes
7.25% due 06/15/19.......................... 20,000 23,489
--------
61,952
--------
Pipelines -- 0.4%
Copano Energy LLC
Company Guar. Notes
8.13% due 03/01/16.......................... 95,000 92,625
Dynegy-Roseton Danskammer
Pass Through Certs.,
Series B
7.67% due 11/08/16.......................... 45,000 41,344
Market
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------------------
Pipelines (continued)
Enterprise Products Operating LLC
Company Guar. Notes
4.60% due 08/01/12................................. $ 35,000 $ 36,265
ONEOK, Inc.
Senior Notes
6.00% due 06/15/35................................. 33,000 32,575
Plains All American Pipeline, LP/PAA Finance Corp.
Senior Notes
4.25% due 09/01/12................................. 58,000 59,625
Plains All American Pipeline, LP/PAA Finance Corp.
Company Guar. Notes
5.75% due 01/15/20................................. 37,000 37,286
Williams Cos., Inc.
Senior Notes
7.88% due 09/01/21................................. 90,000 97,350
--------
397,070
--------
Property Trust -- 0.1%
WEA Finance LLC/WT Finance
Australia Property, Ltd.
Company Guar. Notes
6.75% due 09/02/19*................................ 70,000 70,805
--------
Publishing-Periodicals -- 0.0%
The Reader's Digest Association, Inc.
Company Guar. Notes
9.00% due 02/15/17(9)(10).......................... 25,000 563
--------
Recycling -- 0.0%
Aleris International, Inc.
Company Guar. Notes
9.00% due 12/15/14+(9)(10)(11)..................... 45,000 45
--------
Research & Development -- 0.0%
Alion Science and Technology Corp.
Company Guar. Notes
10.25% due 02/01/15................................ 55,000 40,975
--------
Retail-Discount -- 0.0%
Wal-Mart Stores, Inc.
Senior Notes
3.20% due 05/15/14................................. 30,000 30,630
--------
Retail-Regional Department Stores -- 0.0%
Macy's Retail Holdings, Inc.
Company Guar. Notes
6.65% due 07/15/24................................. 15,000 11,829
--------
Schools -- 0.1%
Princeton University
Senior Notes
5.70% due 03/01/39................................. 49,000 53,875
--------
Special Purpose Entities -- 0.3%
CDX North America High Yield
Credit Linked Certificates,
Series 10-T
8.88% due 06/29/13*(12)............................ 117,450 110,403
Chukchansi Economic Development Authority
Senior Notes
8.00% due 11/15/13*................................ 45,000 35,550
46
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
Market
Principal Value
Security Description Amount (Note 3)
--------------------------------------------------------------
U.S. CORPORATE BONDS & NOTES (continued)
Special Purpose Entities (continued)
Principal Life Global Funding I
Senior Sec. Notes
5.25% due 01/15/13*...................... $100,000 $101,828
TECO Finance, Inc.
Company Guar. Notes
6.57% due 11/01/17....................... 24,000 24,776
--------
272,557
--------
Steel-Producers -- 0.1%
Reliance Steel & Aluminum Co.
Company Guar. Notes
6.85% due 11/15/36....................... 60,000 52,102
Ryerson, Inc.
Company Guar. Notes
7.86% due 11/01/14(1).................... 50,000 43,750
--------
95,852
--------
Telecom Services -- 0.2%
Bellsouth Telecommunications, Inc.
Senior Notes
7.00% due 12/01/95....................... 101,000 100,287
Embarq Corp.
Senior Notes
8.00% due 06/01/36....................... 16,000 16,717
PAETEC Holding Corp.
Company Guar. Notes
9.50% due 07/15/15....................... 25,000 22,687
Qwest Corp.
Senior Notes
7.50% due 10/01/14....................... 65,000 65,650
--------
205,341
--------
Telephone-Integrated -- 0.5%
AT&T, Inc.
Senior Notes
5.63% due 06/15/16....................... 35,000 37,651
BellSouth Corp.
Senior Notes
6.88% due 10/15/31....................... 40,000 43,733
CenturyTel, Inc.
Senior Notes
7.60% due 09/15/39....................... 77,000 76,733
Cincinnati Bell, Inc.
Company Guar. Notes
7.00% due 02/15/15....................... 14,000 13,580
Citizens Communications Co.
Senior Notes
9.00% due 08/15/31....................... 25,000 24,500
Pacific Bell Telephone Co.
Company Guar. Notes
7.13% due 03/15/26....................... 80,000 89,331
Qwest Communications International, Inc.
Company Guar. Notes
8.00% due 10/01/15*...................... 5,000 4,994
Sprint Capital Corp.
Company Guar. Notes
6.88% due 11/15/28....................... 75,000 62,625
Market
Principal Value
Security Description Amount (Note 3)
--------------------------------------------------------------
Telephone-Integrated (continued)
Verizon Pennsylvania, Inc.
Senior Notes
8.35% due 12/15/30................... $ 35,000 $ 40,607
Verizon Virginia, Inc.
Senior Notes
4.63% due 03/15/13................... 35,000 36,359
-----------
430,113
-----------
Television -- 0.0%
Allbritton Communications Co.
Senior Sub. Notes
7.75% due 12/15/12................... 7,000 6,580
Paxson Communications Corp.
Senior Sec. Notes
7.38% due 01/15/13+*(9)(10).......... 40,847 511
Young Broadcasting, Inc.
Company Guar. Notes
10.00% due 03/01/11+(9)(10).......... 25,000 31
-----------
7,122
-----------
Transport-Air Freight -- 0.3%
Atlas Air, Inc.
Pass Through Certs.
Series 1991-1, Class B
7.63% due 01/02/15................... 329,872 247,404
-----------
Transport-Equipment & Leasing -- 0.1%
GATX Corp.
Notes
4.75% due 10/01/12................... 50,000 50,304
-----------
Transport-Rail -- 0.2%
CSX Corp.
Senior Notes
6.15% due 05/01/37................... 40,000 42,370
CSX Corp.
Senior Notes
7.90% due 05/01/17................... 60,000 70,950
Union Pacific Corp.
Senior Notes
5.75% due 11/15/17................... 95,000 101,840
-----------
215,160
-----------
Transport-Services -- 0.1%
PHI, Inc.
Company Guar. Notes
7.13% due 04/15/13................... 70,000 65,712
-----------
Total U.S. Corporate Bonds & Notes
(cost $11,484,454)................... 11,718,899
-----------
FOREIGN CORPORATE BONDS & NOTES -- 3.8%
Auto-Heavy Duty Trucks -- 0.0%
Volvo Treasury AB
Notes
5.95% due 04/01/15*.................. 35,000 34,967
-----------
Banks-Commercial -- 0.7%
Barclays Bank PLC
Senior Notes
5.00% due 09/22/16................... 30,000 30,383
47
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
Market
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------------
FOREIGN CORPORATE BONDS & NOTES (continued)
Banks-Commercial (continued)
Barclays Bank PLC
Jr. Sub. Notes
5.93% due 12/31/16*(6)(7).................... $ 80,000 $ 59,200
Caisse Nationale des Caisses d'Epargne et de
Prevoyance
Senior Notes
3.82% due 12/30/09(6)........................ 109,000 66,490
Lloyds Banking Group PLC
Jr. Sub. Notes
5.92% due 10/01/15*(6)(7).................... 40,000 22,800
Rabobank Nederland NV
Senior Notes
4.20% due 05/13/14*.......................... 80,000 83,329
Standard Chartered PLC
Senior Notes
5.50% due 11/18/14*.......................... 100,000 107,739
Svenska Handelsbanken AB
Senior Notes
4.88% due 06/10/14*.......................... 100,000 104,609
Westpac Banking Corp.
Sub. Notes
1.91% due 03/31/10(1)(6)..................... 160,000 96,000
Westpac Banking Corp.
Senior Notes
4.20% due 02/27/15........................... 35,000 35,573
--------
606,123
--------
Banks-Money Center -- 0.1%
Bank of Scotland PLC
Senior Sub. Notes
1.50% due 11/29/09(1)(6)..................... 110,000 50,550
KBC Internationale
Financieringsmaatschappij NV
Bank Guar. Notes
6.00% due 02/07/25(7)........................ 35,000 22,889
--------
73,439
--------
Building Products-Cement -- 0.1%
Holcim Capital Corp., Ltd.
Company Guar. Notes
6.88% due 09/29/39*.......................... 46,000 47,404
--------
Cellular Telecom -- 0.1%
Vodafone Group PLC
Senior Notes
4.15% due 06/10/14........................... 18,000 18,485
Vodafone Group PLC
Senior Notes
5.38% due 01/30/15........................... 19,000 20,362
Vodafone Group PLC
Senior Notes
5.45% due 06/10/19........................... 67,000 69,761
--------
108,608
--------
Containers-Metal/Glass -- 0.1%
Rexam PLC
Senior Notes
6.75% due 06/01/13*.......................... 51,000 53,492
--------
Market
Principal Value
Security Description Amount (Note 3)
----------------------------------------------------------------
Diversified Banking Institutions -- 0.1%
Credit Agricole SA
Jr. Sub. Notes
6.64% due 05/29/17*(6)(7)................. $ 71,000 $ 50,410
--------
Diversified Manufacturing Operations -- 0.0%
Bombardier, Inc.
Senior Notes
8.00% due 11/15/14*....................... 21,000 21,525
--------
Diversified Minerals -- 0.1%
Teck Resources, Ltd.
Senior Sec. Notes
10.25% due 05/15/16....................... 15,000 16,950
Teck Resources, Ltd.
Senior Sec. Notes
10.75% due 05/15/19....................... 10,000 11,625
Vale Overseas, Ltd.
Company Guar. Notes
5.63% due 09/15/19........................ 20,000 20,344
--------
48,919
--------
Electric-Integrated -- 0.6%
EDP Finance BV
Senior Notes
4.90% due 10/01/19*....................... 74,000 74,364
Electricite de France
Notes
6.50% due 01/26/19*....................... 56,000 64,166
Electricite de France
Notes
6.95% due 01/26/39*....................... 66,000 81,771
Empresa Nacional de Electricidad SA
Bonds
7.33% due 02/01/37........................ 84,000 88,899
Enel Finance International SA
Company Guar. Notes
5.13% due 10/07/19*....................... 100,000 99,560
Enel Finance International SA
Company Guar. Notes
6.00% due 10/07/39*....................... 120,000 119,356
--------
528,116
--------
Finance-Investment Banker/Broker -- 0.1%
Macquarie Group, Ltd.
Notes
7.30% due 08/01/14*....................... 68,000 72,553
--------
Finance-Other Services -- 0.1%
BP Capital Markets PLC
Company Guar. Notes
3.88% due 03/10/15........................ 100,000 103,306
Iberdrola Finance Ireland, Ltd.
Company Guar. Notes
5.00% due 09/11/19*....................... 39,000 39,275
--------
142,581
--------
Insurance-Multi-line -- 0.1%
Aegon NV
Senior Notes
3.60% due 07/29/14(6)..................... 86,000 40,291
48
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
Market
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------------
FOREIGN CORPORATE BONDS & NOTES (continued)
Insurance-Multi-line (continued)
XL Capital, Ltd.
Senior Notes
5.25% due 09/15/14.......................... $ 56,000 $ 54,973
XL Capital, Ltd.
Senior Notes
6.38% due 11/15/24.......................... 36,000 29,071
--------
124,335
--------
Investment Companies -- 0.0%
Xstrata Finance Canada, Ltd.
Company Guar. Notes
6.90% due 11/15/37*......................... 40,000 37,648
--------
Medical Products -- 0.0%
Angiotech Pharmaceuticals, Inc.
Company Guar. Notes
4.11% due 12/01/13(1)....................... 15,000 12,675
--------
Medical-Drugs -- 0.0%
Elan Finance PLC
Company Guar. Notes
7.75% due 11/15/11.......................... 22,000 22,412
--------
Metal-Diversified -- 0.1%
Noranda, Inc.
Notes
6.00% due 10/15/15.......................... 44,000 44,732
--------
Oil Companies-Exploration & Production -- 0.3%
Nexen, Inc.
Senior Notes
5.88% due 03/10/35.......................... 124,000 113,567
Nexen, Inc.
Bonds
6.40% due 05/15/37.......................... 40,000 38,942
OPTI Canada, Inc.
Senior Sec. Notes
7.88% due 12/15/14.......................... 50,000 38,250
Talisman Energy, Inc.
Senior Notes
7.75% due 06/01/19.......................... 60,000 70,549
--------
261,308
--------
Oil Companies-Integrated -- 0.1%
Total Capital SA
Company Guar. Notes
3.13% due 10/02/15.......................... 60,000 59,761
--------
Printing-Commercial -- 0.0%
Quebecor World Capital Corp.
Bonds
6.50% due 08/01/27+(15)(18)................. 30,000 0
--------
Satellite Telecom -- 0.1%
Intelsat Intermediate Holding Co., Ltd.
Company Guar. Notes
9.50% due 02/01/15(2)....................... 15,000 14,963
Intelsat Subsidiary Holding Co., Ltd.
Company Guar. Notes
8.50% due 01/15/13.......................... 50,000 50,625
Market
Principal Value
Security Description Amount (Note 3)
-------------------------------------------------------------
Satellite Telecom (continued)
Intelsat Subsidiary Holding Co., Ltd.
Company Guar. Notes
8.88% due 01/15/15.................... $ 25,000 $ 25,437
----------
91,025
----------
Special Purpose Entities -- 0.5%
Aries Vermoegensverwaltungs GmbH
Sec. Notes
9.60% due 10/25/14.................... 250,000 313,750
SMFG Preferred Capital, Ltd.
Sub. Notes
6.08% due 01/29/17*(6)(7)............. 121,000 105,690
----------
419,440
----------
Steel-Producers -- 0.0%
ArcelorMittal
Senior Notes
6.13% due 06/01/18.................... 28,000 27,584
----------
Telephone-Integrated -- 0.3%
Telecom Italia Capital SA
Company Guar. Notes
4.95% due 09/30/14.................... 207,000 214,200
Telefonica Emisiones SAU
Company Guar. Notes
5.88% due 07/15/19.................... 65,000 70,624
----------
284,824
----------
Transport-Rail -- 0.2%
Canadian National Railway Co.
Senior Notes
6.38% due 10/15/11.................... 130,000 142,528
Canadian National Railway Co.
Senior Notes
6.90% due 07/15/28.................... 39,000 46,994
----------
189,522
----------
Total Foreign Corporate Bonds & Notes
(cost $3,339,409)..................... 3,363,403
----------
FOREIGN GOVERNMENT AGENCIES -- 0.1%
Sovereign -- 0.1%
Federal Republic of Brazil
Bonds
5.63% due 01/07/41
(cost $97,498)........................ 100,000 97,498
----------
U.S. GOVERNMENT AGENCIES -- 13.6%
Federal Home Loan Mtg. Corp. -- 8.0%
4.50% due 01/01/39.................... 158,867 160,951
5.00% due 05/01/34.................... 647,881 672,406
5.00% due 06/01/34.................... 616,892 640,244
5.00% due 07/01/35.................... 79,307 82,235
5.00% due 10/01/35.................... 429,349 445,199
5.00% due 11/01/35.................... 283,735 294,209
5.00% due 11/01/36.................... 27,502 28,479
5.00% due 03/01/38.................... 186,917 193,437
5.50% due 07/01/34.................... 372,167 391,318
5.50% due 09/01/37.................... 172,484 180,794
49
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
Market
Principal Value
Security Description Amount (Note 3)
---------------------------------------------------------------
U.S. GOVERNMENT AGENCIES (continued)
Federal Home Loan Mtg. Corp. (continued)
5.50% due 01/01/38.................... $411,449 $ 431,593
5.50% due 07/01/38.................... 407,601 427,238
5.81% due 01/01/37(1)................. 301,651 318,552
5.95% due 10/01/36(1)................. 406,161 429,724
6.00% due 12/01/33.................... 62,828 66,896
6.00% due 10/01/37.................... 262,565 277,761
6.50% due 03/01/36.................... 190,891 203,784
6.50% due 05/01/36.................... 5,702 6,087
6.50% due 11/01/37.................... 110,368 117,799
7.00% due 04/01/32.................... 99,017 108,552
REMIC
Series 3102, Class PG
5.00% due 11/15/28.................... 304,000 319,337
Series 3317, Class PD
5.00% due 09/15/31.................... 390,000 411,354
Series 3116, Class PD
5.00% due 10/15/34.................... 615,000 647,813
Series 3349, Class HB
5.50% due 06/15/31.................... 232,000 245,553
-----------
7,101,315
-----------
Federal National Mtg. Assoc. -- 4.5%
4.50% due 01/01/39.................... 148,253 150,384
5.00% due 03/15/16.................... 47,000 51,907
5.00% due 08/01/18.................... 97,591 103,683
5.00% due 07/01/37.................... 103,745 107,331
5.50% due 11/01/22.................... 153,321 162,388
5.50% due 12/01/33.................... 628,086 660,799
5.50% due 02/01/36(1)................. 207,260 217,947
5.50% due 11/01/36.................... 173,237 181,692
5.50% due 06/01/38.................... 428,732 449,119
5.50% due 08/01/38.................... 7,011 7,344
6.00% due 12/01/33.................... 62,523 66,532
6.00% due 07/01/38.................... 539,615 570,056
6.00% due 09/01/38.................... 457,364 483,548
6.50% due 09/01/32.................... 203,641 219,750
6.50% due 07/01/36.................... 84,688 90,713
6.50% due 10/01/37.................... 81,643 87,400
REMIC
Series 2005-12, Class BE
5.00% due 11/25/30.................... 385,000 406,599
-----------
4,017,192
-----------
Government National Mtg. Assoc. -- 1.1%
5.50% due 05/15/33.................... 311,205 328,856
5.50% due 12/15/33.................... 250,229 264,421
6.00% due 09/15/38.................... 282,568 298,904
7.50% due 01/15/32.................... 87,212 97,781
-----------
989,962
-----------
Total U.S. Government Agencies
(cost $11,586,708).................... 12,108,469
-----------
U.S. GOVERNMENT TREASURIES -- 4.3%
United States Treasury Bonds -- 0.9%
3.50% due 02/15/39.................... 53,000 48,015
4.25% due 05/15/39.................... 69,000 71,383
Market
Principal Value
Security Description Amount (Note 3)
----------------------------------------------------------------------------
U.S. GOVERNMENT TREASURIES (continued)
United States Treasury Bonds (continued)
4.38% due 02/15/38............................. $ 495,000 $ 521,452
4.50% due 05/15/38............................. 38,000 40,892
5.25% due 11/15/28............................. 107,000 124,220
8.13% due 08/15/19............................. 33,000 45,983
-----------
851,945
-----------
United States Treasury Notes -- 3.4%
2.00% due 11/30/13............................. 558,000 558,785
2.75% due 02/28/13............................. 45,000 46,719
2.75% due 02/15/19............................. 105,000 100,201
2.88% due 01/31/13............................. 446,000 465,059
3.00% due 08/31/16............................. 21,000 21,125
3.38% due 07/31/13............................. 102,000 108,040
3.50% due 02/15/18............................. 97,000 99,069
3.63% due 06/15/10............................. 800,000 818,687
3.63% due 08/15/19............................. 21,000 21,555
3.75% due 11/15/18............................. 102,000 105,546
3.88% due 05/15/18............................. 31,000 32,489
4.00% due 08/15/18............................. 206,000 217,475
4.25% due 08/15/15............................. 24,000 26,137
4.25% due 11/15/17............................. 150,000 161,625
4.50% due 11/15/15............................. 200,000 220,516
-----------
3,003,028
-----------
Total U.S. Government Treasuries
(cost $3,955,182).............................. 3,854,973
-----------
Total Long-Term Investment Securities
(cost $82,488,101)............................. 85,284,783
-----------
REPURCHASE AGREEMENTS -- 4.7%
Agreement with State Street Bank & Trust Co.,
bearing interest at 0.01%, dated 09/30/09, to
be repurchased 10/01/09 in the amount of
$3,041,001 and collateralized by $3,100,000
of Federal Home Loan Mtg. Corp., bearing
interest at 0.35% due 04/01/11 and having
approximate value of $3,103,875................ 3,041,000 3,041,000
State Street Bank & Trust Co.
Joint Repurchase Agreement(13)................. 1,164,000 1,164,000
-----------
Total Repurchase Agreements
(cost $4,205,000).............................. 4,205,000
-----------
TOTAL INVESTMENTS --
(cost $86,693,101)(14)......................... 100.3% 89,489,783
Liabilities in excess of other assets............. (0.3) (268,880)
---------- -----------
NET ASSETS -- 100.0% $ 89,220,903
========== ===========
- --------
+ 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 September 30, 2009,
50
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
the aggregate value of these securities was $3,406,926 representing 3.8%
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 September 30, 2009.
(2) "Step-up" security where the rate increases ("steps-up") at a
predetermined rate. Rate shown reflects the increased rate.
(3) Commercial Mortgage Backed Security
(4) Collateralized Mortgage Obligation
(5) Variable Rate Security -- the rate reflected is as of September 30, 2009,
maturity date reflects the stated maturity date.
(6) Perpetual maturity -- maturity date reflects the next call date.
(7) Variable Rate Security -- the rate reflected is as of September 30, 2009,
maturity date reflects next reset date.
(8) PIK ("Payment-in-Kind") security. Bond or preferred stock that pays
interest/dividends in the form of additional bonds or preferred stocks.
(9) Bond in default.
(10) Company has filed Chapter 11 bankruptcy protection.
(11) Income may be received in cash or additional shares at the discretion of
the issuer.
(12) The structured security is an investment in a trust that is linked to
entities included in the CDX.NA.HY.10 index as published by CDS IndexCo
LLC. Generally described, investors in the structured security are taking
credit risk, and are providing credit protection to the trust, in respect
of the entities included in the CDX.NA.HY.10 index. The trust, in turn, is
taking credit risk with respect to the entities included in the
CDX.NA.HY.10 index in the trust's transactions with credit default swap
counterparties and, through credit default swap agreements, is providing
credit protection to credit default swap counterparties. (See Note 3)
(13) See Note 3 for details on Joint Repurchase Agreement.
(14) See Note 7 for cost of investment on a tax basis.
(15) Illiquid security. At September 30, 2009, the aggregate value of these
securities was $0 representing 0.0% of net assets.
(16) Subsequent to September 30, 2009, the company has filed Chapter 11
bankruptcy protection.
(17) Bond is in default of interest subsequent to September 30, 2009.
(18) Fair valued security. Securities are classified as Level 3 based on the
securities valuation inputs; see Note 3.
ADR --American Depository Receipt
REMIC --Real Estate Mortgage Investment Conduit
The following is a summary of the inputs used to value the Fund's net assets as
of September 30, 2009 (see Note 3):
Level 1 -- Level 2 -- Level 3 --
Unadjusted Other Significant
Quoted Observable Unobservable
Prices Inputs Inputs Total
----------- ----------- ------------ -----------
Long-Term
Investment
Securities:
Common Stock....... $50,977,941 $ -- $ -- $50,977,941
Exchange-Traded
Fund.............. 680,203 -- -- 680,203
Preferred Stock.... 476,694 -- -- 476,694
Warrants........... 556 -- 556
Asset Backed
Securities........ -- 2,006,147 -- 2,006,147
U.S. Corporate
Bonds &
Notes............. -- 11,433,675 285,224 11,718,899
Foreign Corporate
Bonds &
Notes............. -- 3,363,403 0 3,363,403
Foreign
Government
Agencies.......... -- 97,498 -- 97,498
U.S. Government
Agencies.......... -- 12,108,469 -- 12,108,469
U.S. Government
Treasuries........ 3,854,973 -- -- 3,854,973
Repurchase
Agreement........... -- 4,205,000 -- 4,205,000
----------- ----------- -------- -----------
Total $55,990,367 $33,214,192 $285,224 $89,489,783
=========== =========== ======== ===========
The following is a reconciliation of Level 3 assets for which significant
unobservable inputs were used to determine fair value:
U.S. Foreign
Corporate Corporate
Bonds & Bonds &
Notes Notes
--------- ---------
Balance as of
9/30/2008........... $ -- $--
Accrued discounts/
premiums............ -- --
Realized gain
(loss).............. 14,395 --
Change in unrealized
appreciation
(depreciation)...... (86,785) --
Net purchases
(sales)............. (1,959) 0
Transfers in and/or
out of Level 3...... 359,573 --
-------- ---
Balance as of
9/30/2009........... $285,224 $ 0
======== ===
See Notes to Financial Statements
51
SunAmerica International Equity Fund
PORTFOLIO PROFILE -- September 30, 2009 -- (unaudited)
Industry Allocation*
Banks-Commercial....................... 17.2%
Diversified Banking Institutions....... 7.0
Chemicals-Diversified.................. 4.5
Oil Companies-Exploration & Production. 4.3
Electronic Components-Misc............. 3.9
Index Fund............................. 3.5
Food-Retail............................ 3.4
Cellular Telecom....................... 3.3
Diversified Minerals................... 2.8
Oil Companies-Integrated............... 2.8
Electronic Components-Semiconductors... 2.5
Wireless Equipment..................... 2.5
Building Products-Cement............... 2.3
Soap & Cleaning Preparation............ 2.1
Machine Tools & Related Products....... 2.1
Steel-Producers........................ 1.9
Telephone-Integrated................... 1.9
Advertising Services................... 1.8
Rubber-Tires........................... 1.7
Gas-Transportation..................... 1.7
Repurchase Agreement................... 1.6
Import/Export.......................... 1.6
Real Estate Operations & Development... 1.6
Coal................................... 1.5
Chemicals-Specialty.................... 1.5
Sugar.................................. 1.4
Travel Services........................ 1.3
Oil-Field Services..................... 1.3
Semiconductor Equipment................ 1.2
Building-Residential/Commercial........ 1.0
Medical-Generic Drugs.................. 0.9
Metal-Diversified...................... 0.9
Cosmetics & Toiletries................. 0.9
Food-Dairy Products.................... 0.8
Electric-Generation.................... 0.8
Diversified Operations................. 0.8
Transport-Rail......................... 0.8
Building Products-Air & Heating........ 0.7
Medical Products....................... 0.7
Steel-Specialty........................ 0.6
Gas-Distribution....................... 0.6
Electric Products-Misc................. 0.5
Instruments-Scientific................. 0.5
Finance-Leasing Companies.............. 0.5
Auto-Cars/Light Trucks................. 0.5
Machinery-Farming...................... 0.4
Auto/Truck Parts & Equipment-Original.. 0.4
----
98.5%
====
Country Allocation*
United Kingdom......................... 20.1%
Japan.................................. 13.8
Italy.................................. 6.3
France................................. 5.9
Australia.............................. 5.5
Brazil................................. 5.4
Germany................................ 5.2
United States.......................... 5.1
Switzerland............................ 5.0
Sweden................................. 4.6
Canada................................. 2.9
South Korea............................ 2.7
China.................................. 2.4
Hong Kong.............................. 2.4
Taiwan................................. 1.8
Singapore.............................. 1.5
Indonesia.............................. 1.2
Luxembourg............................. 1.2
South Africa........................... 1.1
Ireland................................ 1.0
India.................................. 0.9
Israel................................. 0.9
Cayman Islands......................... 0.8
Turkey................................. 0.8
----
98.5%
====
- --------
*Calculated as a percentage of net assets
52
SunAmerica International Equity Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009
Market
Value
Security Description Shares (Note 3)
-----------------------------------------------------------------------
COMMON STOCK -- 92.6%
Australia -- 5.5%
BHP Billiton, Ltd................................ 118,209 $3,934,634
Commonwealth Bank of Australia................... 111,875 5,107,524
----------
9,042,158
----------
Bermuda -- 0.0%
Peace Mark Holdings, Ltd.+(1)(2)................. 800,000 0
Peregrine Investments Holdings, Ltd.+(1)(2)...... 91,000 0
----------
0
----------
Brazil -- 5.4%
Cosan SA Industria e Comercio+................... 204,910 2,262,384
Itau Unibanco Holding SA ADR..................... 110,770 2,232,015
MRV Engenharia e Participacoes SA................ 87,630 1,681,768
Petroleo Brasileiro SA ADR....................... 61,110 2,804,949
----------
8,981,116
----------
Canada -- 2.9%
Petrobank Energy & Resources, Ltd.+.............. 19,288 797,174
Toronto-Dominion Bank............................ 60,840 3,935,151
----------
4,732,325
----------
Cayman Islands -- 0.8%
China Mengniu Dairy Co., Ltd.+................... 533,950 1,360,014
----------
China -- 2.4%
Anhui Conch Cement Co., Ltd...................... 214,000 1,426,197
China Merchants Bank Co., Ltd.................... 532,330 1,186,917
Huaneng Power International, Inc................. 2,046,000 1,351,671
----------
3,964,785
----------
France -- 5.8%
BNP Paribas...................................... 48,460 3,871,898
Compagnie Generale des Etablissements Michelin,
Class B......................................... 35,871 2,814,085
Publicis Groupe.................................. 74,387 2,983,692
----------
9,669,675
----------
Germany -- 4.5%
Bayer AG......................................... 71,825 4,976,724
HeidelbergCement AG.............................. 36,915 2,389,824
----------
7,366,548
----------
Hong Kong -- 2.4%
China Merchants Holdings International Co.,
Ltd............................................. 399,320 1,329,340
Sun Hung Kai Properties, Ltd..................... 177,133 2,614,695
----------
3,944,035
----------
India -- 0.9%
Punjab National Bank, Ltd........................ 87,300 1,447,559
----------
Indonesia -- 1.2%
Bank Mandiri Tbk PT.............................. 4,118,230 2,002,657
----------
Ireland -- 1.0%
Dragon Oil PLC+.................................. 279,380 1,701,133
----------
Israel -- 0.9%
Teva Pharmaceutical Industries, Ltd. ADR......... 28,551 1,443,539
----------
Market
Value
Security Description Shares (Note 3)
-----------------------------------------------------------------
Italy -- 6.3%
Intesa Sanpaolo SpA+..................... 1,230,027 $ 5,440,375
Saipem SpA............................... 70,930 2,136,108
Snam Rete Gas SpA........................ 566,246 2,755,147
-----------
10,331,630
-----------
Japan -- 13.8%
Aisin Seiki Co., Ltd..................... 24,900 607,486
East Japan Railway Co.................... 17,400 1,252,203
Hamamatsu Photonics K.K.................. 32,900 788,002
Hitachi Chemical Co., Ltd................ 66,000 1,348,454
Hitachi Metals, Ltd...................... 103,000 1,054,498
Kaneka Corp.............................. 163,000 1,171,225
Kubota Corp.............................. 83,000 690,704
Mitsubishi Corp.......................... 67,700 1,369,612
Mitsubishi UFJ Financial Group, Inc...... 335,700 1,802,567
Nippon Telegraph and Telephone Corp...... 29,000 1,343,954
Nissan Motor Co., Ltd.+.................. 112,300 759,384
ORIX Corp................................ 12,630 771,040
Rinnai Corp.............................. 26,200 1,237,542
Rohm Co., Ltd............................ 18,300 1,280,276
Sumitomo Metal Mining Co., Ltd........... 40,000 656,826
Tokyo Electron, Ltd...................... 30,700 1,959,684
Tokyo Gas Co., Ltd....................... 233,000 968,184
Toshiba Corp.+........................... 208,000 1,091,383
Toyota Tsusho Corp....................... 85,500 1,289,667
Uni-Charm Corp........................... 15,000 1,423,717
-----------
22,866,408
-----------
Luxembourg -- 1.2%
ArcelorMittal............................ 51,825 1,937,662
-----------
Singapore -- 1.5%
Straits Asia Resources, Ltd.............. 1,684,488 2,547,091
-----------
South Africa -- 1.1%
Sasol, Ltd............................... 47,370 1,780,789
-----------
South Korea -- 2.7%
LG Electronics, Inc...................... 8,050 857,437
POSCO.................................... 2,970 1,227,574
Samsung Electro-Mechanics Co., Ltd....... 26,860 2,313,847
-----------
4,398,858
-----------
Sweden -- 4.6%
Sandvik AB............................... 317,788 3,510,034
Telefonaktiebolaget LM Ericsson, Class B. 410,513 4,122,001
-----------
7,632,035
-----------
Switzerland -- 5.0%
Clariant AG+............................. 271,571 2,471,210
Credit Suisse Group AG................... 105,804 5,870,626
-----------
8,341,836
-----------
Taiwan -- 1.8%
Hon Hai Precision Industry Co., Ltd. GDR. 373,211 3,060,330
-----------
Turkey -- 0.8%
Turkiye Halk Bankasi AS+................. 218,975 1,298,504
-----------
53
SunAmerica International Equity Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
Shares/ Market
Principal Value
Security Description Amount (Note 3)
-------------------------------------------------------------------------
COMMON STOCK (continued)
United Kingdom -- 20.1%
ARM Holdings PLC............................... 1,261,624 $ 2,895,358
BT Group PLC................................... 866,302 1,799,826
Dana Petroleum PLC+............................ 118,271 2,649,990
Reckitt Benckiser Group PLC.................... 72,513 3,543,817
Rio Tinto PLC.................................. 33,568 1,431,563
Standard Chartered PLC......................... 234,084 5,768,647
Tesco PLC...................................... 872,060 5,569,161
Thomas Cook Group PLC.......................... 577,259 2,143,077
Tullow Oil PLC................................. 106,290 1,916,105
Vodafone Group PLC............................. 2,428,415 5,441,126
------------
33,158,670
------------
Total Common Stock
(cost $134,439,245)........................... 153,009,357
------------
PREFERRED STOCK -- 0.7%
Germany -- 0.7%
Fresenius SE
(cost $1,148,393)............................. 19,661 1,150,548
------------
EXCHANGE-TRADED FUNDS -- 3.5%
United States -- 3.5%
iShares MSCI Canada Index Fund
(cost $5,228,521)............................. 227,212 5,789,362
------------
RIGHTS+ -- 0.1%
France -- 0.1%
BNP Paribas Expires 10/14/09
(cost $0)..................................... 48,460 104,953
------------
Total Long-Term Investment Securities
(cost $140,816,159)........................... 160,054,220
------------
REPURCHASE AGREEMENT -- 1.6%
Agreement with State Street Bank & Trust Co.,
bearing interest at 0.01%, dated 09/30/09,
to be repurchased 10/01/09 in the amount
of $2,725,001 and collateralized by
$2,780,000 of Federal Home Loan Mtg.
Corp. Notes, bearing interest at 3.50% due
04/01/11 and having approximate value
of $2,783,475
(cost $2,725,000)............................. $2,725,000 2,725,000
------------
TOTAL INVESTMENTS --
(cost $143,541,159)(3)........................ 98.5% 162,779,220
Other assets less liabilities.................... 1.5 2,446,272
---------- ------------
NET ASSETS -- 100.0% $165,225,492
========== ============
- --------
+ Non-income producing security
(1) Fair valued security. Securities are classified as Level 3 based on the
securities valuation inputs; see Note 3.
(2) Illiquid security. At September 30, 2009, the aggregate value of these
securities was $0 representing 0.0% of net assets.
(3) See Note 7 for cost of investments on a tax basis.
ADR -- AmericanDepository Receipt
GDR -- GlobalDepository Receipt
The following is a summary of the inputs used to value the Fund's net assets as
of September 30, 2009 (see Note 3):
Level 1 -- Level 2 -- Level 3 --
Unadjusted Other Significant
Quoted Observable Unobservable
Prices Inputs Inputs Total
------------ ---------- ------------ ------------
Long-Term
Investment
Securities:
Common Stock
Australia........... $ 9,042,158 $ -- $-- $ 9,042,158
Brazil.............. 8,981,116 -- -- 8,981,116
France.............. 9,669,675 -- -- 9,669,675
Italy............... 10,331,630 -- -- 10,331,630
Japan............... 22,866,408 -- -- 22,866,408
Switzerland......... 8,341,836 -- -- 8,341,836
United
Kingdom............ 33,158,670 -- -- 33,158,670
Other
Countries*......... 50,617,864 -- 0 50,617,864
Preferred Stock...... 1,150,548 -- -- 1,150,548
Exchange Traded
Fund................ 5,789,362 -- -- 5,789,362
Rights............... 104,953 -- -- 104,953
Repurchase
Agreement............. -- 2,725,000 -- 2,725,000
------------ ---------- --- ------------
Total $160,054,220 $2,725,000 $ 0 $162,779,220
============ ========== === ============
--------
*Sum of all other countries each of which individually has an aggregate market
value of less than 5% of net assets.
The following is a reconciliation of Level 3 assets for which significant
unobservable inputs were used to determine fair value:
Common
Stock --
Other
Countries
------------
Balance as of
9/30/2008............. $ 154,511
Accrued discounts/
premiums.............. --
Realized gain
(loss)................ --
Change in unrealized
appreciation
(depreciation)........ (154,511)
Net purchases
(sales)............... --
Transfers in and/or
out of Level 3........ --
------------
Balance as of
9/30/2009............. $ 0
============
See Notes to Financial Statements
54
SunAmerica Value Fund
PORTFOLIO PROFILE -- September 30, 2009 -- (unaudited)
Industry Allocation*
Oil Companies-Integrated............. 12.2%
Diversified Banking Institutions..... 11.5
Electric-Integrated.................. 8.2
Medical-Drugs........................ 5.0
Telephone-Integrated................. 4.6
Aerospace/Defense.................... 4.3
Insurance-Property/Casualty.......... 4.3
Insurance-Multi-line................. 4.2
Retail-Discount...................... 3.5
Diversified Manufacturing Operations. 3.3
Computers............................ 3.1
Oil & Gas Drilling................... 3.1
Food-Misc............................ 2.9
Aerospace/Defense-Equipment.......... 2.2
Banks-Super Regional................. 2.2
Medical Products..................... 2.0
Non-Hazardous Waste Disposal......... 2.0
Repurchase Agreement................. 1.9
Cable/Satellite TV................... 1.7
Consumer Products-Misc............... 1.6
Retail-Consumer Electronics.......... 1.6
Semiconductor Equipment.............. 1.6
Tobacco.............................. 1.6
Applications Software................ 1.5
Banks-Fiduciary...................... 1.5
Retail-Drug Store.................... 1.5
Retail-Building Products............. 1.5
Cosmetics & Toiletries............... 1.5
Retail-Restaurants................... 1.5
Medical-HMO.......................... 1.3
Networking Products.................. 1.1
Electronic Components-Semiconductors. 1.0
-----
101.0%
=====
- --------
*Calculated as a percentage of net assets
55
SunAmerica Value Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009
Market
Value
Security Description Shares (Note 3)
-----------------------------------------------------------------
COMMON STOCK -- 99.1%
Aerospace/Defense -- 4.3%
General Dynamics Corp...................... 33,000 $ 2,131,800
Raytheon Co................................ 40,000 1,918,800
-----------
4,050,600
-----------
Aerospace/Defense-Equipment -- 2.2%
United Technologies Corp................... 33,700 2,053,341
-----------
Applications Software -- 1.5%
Microsoft Corp............................. 56,000 1,449,840
-----------
Banks-Fiduciary -- 1.5%
The Bank of New York Mellon Corp........... 50,000 1,449,500
-----------
Banks-Super Regional -- 2.2%
Wells Fargo & Co........................... 72,100 2,031,778
-----------
Cable/Satellite TV -- 1.7%
Comcast Corp., Class A..................... 95,000 1,604,550
-----------
Computers -- 3.1%
Hewlett-Packard Co......................... 24,000 1,133,040
International Business Machines Corp....... 15,000 1,794,150
-----------
2,927,190
-----------
Consumer Products-Misc. -- 1.6%
Kimberly-Clark Corp........................ 26,000 1,533,480
-----------
Cosmetics & Toiletries -- 1.5%
The Procter & Gamble Co.................... 24,300 1,407,456
-----------
Diversified Banking Institutions -- 11.5%
Bank of America Corp....................... 165,300 2,796,876
Citigroup, Inc............................. 338,000 1,635,920
JPMorgan Chase & Co........................ 66,000 2,892,120
Morgan Stanley............................. 59,000 1,821,920
The Goldman Sachs Group, Inc............... 9,000 1,659,150
-----------
10,805,986
-----------
Diversified Manufacturing Operations -- 3.3%
General Electric Co........................ 189,000 3,103,380
-----------
Electric-Integrated -- 8.2%
Exelon Corp................................ 40,000 1,984,800
FPL Group, Inc............................. 35,000 1,933,050
PG&E Corp.................................. 47,800 1,935,422
Xcel Energy, Inc........................... 94,200 1,812,408
-----------
7,665,680
-----------
Electronic Components-Semiconductors -- 1.0%
Intel Corp................................. 50,000 978,500
-----------
Food-Misc. -- 2.9%
H.J. Heinz Co.............................. 36,000 1,431,000
Kraft Foods, Inc., Class A................. 49,000 1,287,230
-----------
2,718,230
-----------
Insurance-Multi-line -- 4.2%
MetLife, Inc............................... 50,000 1,903,500
The Allstate Corp.......................... 65,000 1,990,300
-----------
3,893,800
-----------
Insurance-Property/Casualty -- 4.3%
Chubb Corp................................. 38,000 1,915,580
Market
Value
Security Description Shares (Note 3)
------------------------------------------------------------
Insurance-Property/Casualty (continued)
The Travelers Cos., Inc............... 43,000 $ 2,116,890
-----------
4,032,470
-----------
Medical Products -- 2.0%
Johnson & Johnson..................... 30,400 1,851,056
-----------
Medical-Drugs -- 5.0%
Abbott Laboratories................... 30,000 1,484,100
Merck & Co., Inc...................... 43,500 1,375,905
Pfizer, Inc........................... 110,100 1,822,155
-----------
4,682,160
-----------
Medical-HMO -- 1.3%
UnitedHealth Group, Inc............... 50,000 1,252,000
-----------
Networking Products -- 1.1%
Cisco Systems, Inc.+.................. 45,000 1,059,300
-----------
Non-Hazardous Waste Disposal -- 2.0%
Waste Management, Inc................. 62,000 1,848,840
-----------
Oil & Gas Drilling -- 3.1%
Transocean, Ltd.+..................... 34,000 2,908,020
-----------
Oil Companies-Integrated -- 12.2%
Chevron Corp.......................... 44,700 3,148,221
ConocoPhillips........................ 63,000 2,845,080
Exxon Mobil Corp...................... 40,000 2,744,400
Marathon Oil Corp..................... 85,000 2,711,500
-----------
11,449,201
-----------
Retail-Building Products -- 1.5%
Lowe's Cos., Inc...................... 68,000 1,423,920
-----------
Retail-Consumer Electronics -- 1.6%
Best Buy Co., Inc..................... 40,000 1,500,800
-----------
Retail-Discount -- 3.5%
Target Corp........................... 33,000 1,540,440
Wal-Mart Stores, Inc.................. 36,000 1,767,240
-----------
3,307,680
-----------
Retail-Drug Store -- 1.5%
CVS Caremark Corp..................... 40,000 1,429,600
-----------
Retail-Restaurants -- 1.5%
McDonald's Corp....................... 24,000 1,369,680
-----------
Semiconductor Equipment -- 1.6%
Applied Materials, Inc................ 110,000 1,474,000
-----------
Telephone-Integrated -- 4.6%
AT&T, Inc............................. 107,050 2,891,421
Verizon Communications, Inc........... 47,400 1,434,798
-----------
4,326,219
-----------
Tobacco -- 1.6%
Philip Morris International, Inc...... 30,000 1,462,200
-----------
Total Long-Term Investment Securities
(cost $89,651,741)................... 93,050,457
-----------
56
SunAmerica Value Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
Market
Principal Value
Security Description Amount (Note 3)
---------------------------------------------------------------
REPURCHASE AGREEMENT -- 1.9%
State Street Bank & Trust Co.
Joint Repurchase Agreement(1)
(cost $1,783,000).................. $1,783,000 $ 1,783,000
-----------
TOTAL INVESTMENTS --
(cost $91,434,741)(2).............. 101.0% 94,833,457
Liabilities in excess of other assets. (1.0) (969,293)
---------- -----------
NET ASSETS -- 100.0% $93,864,164
========== ===========
- --------
+ 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.
The following is a summary of the inputs used to value the Fund's net assets as
of September 30, 2009 (see Note 3):
Level 1 -- Level 2 -- Level 3 --
Unadjusted Other Significant
Quoted Observable Unobservable
Prices Inputs Inputs Total
----------- ---------- ------------ -----------
Long-Term Investment
Securities:
Common Stock
Diversified Banking
Institutions......... $10,805,986 $ -- $-- $10,805,986
Electric --
Integrated........... 7,665,680 -- -- 7,665,680
Medical --
Drugs................ 4,682,160 -- -- 4,682,160
Oil Companies --
Integrated........... 11,449,201 -- -- 11,449,201
Other
Industries*.......... 58,447,430 -- -- 58,447,430
Repurchase
Agreement............... -- 1,783,000 -- 1,783,000
----------- ---------- --- -----------
Total $93,050,457 $1,783,000 $-- $94,833,457
=========== ========== === ===========
- --------
*Sum of all other industries each of which individually has an aggregate market
value of less than 5% of net assets.
See Notes to Financial Statements
57
SunAmerica Disciplined Growth Fund
PORTFOLIO PROFILE -- September 30, 2009 -- (unaudited)
Industry Allocation*
Computers.............................. 9.7%
Medical-Drugs.......................... 4.7
Applications Software.................. 4.5
Commercial Services-Finance............ 4.5
Beverages-Non-alcoholic................ 3.8
Medical Products....................... 3.8
Tobacco................................ 3.5
Networking Products.................... 3.4
Electronic Components-Semiconductors... 3.3
Cosmetics & Toiletries................. 3.2
Aerospace/Defense...................... 2.8
Web Portals/ISP........................ 2.7
Retail-Restaurants..................... 2.6
Enterprise Software/Service............ 2.4
Oil Companies-Integrated............... 2.0
Data Processing/Management............. 1.9
Wireless Equipment..................... 1.7
Consulting Services.................... 1.7
Retail-Discount........................ 1.6
Aerospace/Defense-Equipment............ 1.6
Retail-Apparel/Shoe.................... 1.4
Retail-Drug Store...................... 1.2
E-Commerce/Products.................... 1.2
Medical-Wholesale Drug Distribution.... 1.1
Retail-Major Department Stores......... 1.1
Engineering/R&D Services............... 1.0
Pharmacy Services...................... 1.0
Oil-Field Services..................... 1.0
Medical Instruments.................... 0.9
Retail-Regional Department Stores...... 0.9
Hospital Beds/Equipment................ 0.9
Advertising Agencies................... 0.8
Athletic Footwear...................... 0.8
Retail-Consumer Electronics............ 0.8
Apparel Manufacturers.................. 0.8
Finance-Investment Banker/Broker....... 0.8
Industrial Audio & Video Products...... 0.8
Instruments-Scientific................. 0.8
Medical-Generic Drugs.................. 0.8
Insurance-Life/Health.................. 0.8
Investment Management/Advisor Services. 0.8
Medical-Biomedical/Gene................ 0.8
Machinery-Pumps........................ 0.7
Educational Software................... 0.7
E-Commerce/Services.................... 0.7
Computer Software...................... 0.7
Internet Telephone..................... 0.7
Metal-Copper........................... 0.7
Machinery-Construction & Mining........ 0.7
Consumer Products-Misc................. 0.7
Agricultural Chemicals................. 0.7
Theaters............................... 0.7
Electric Products-Misc................. 0.7
Repurchase Agreement................... 0.7
Food-Confectionery..................... 0.6
Electronic Forms....................... 0.6
Food-Dairy Products.................... 0.6
Diagnostic Equipment................... 0.6
Machinery-General Industrial........... 0.5
Multimedia............................. 0.5
Finance-Other Services................. 0.5
Oil Field Machinery & Equipment. 0.5%
Chemicals-Specialty............. 0.4
Computers-Periphery Equipment... 0.4
Semiconductor Equipment......... 0.3
Cellular Telecom................ 0.2
Computers-Integrated Systems.... 0.2
-----
100.2%
=====
- --------
*Calculated as a percentage of net assets
58
SunAmerica Disciplined Growth Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009
Market
Value
Security Description Shares (Note 3)
----------------------------------------------------------
COMMON STOCK -- 99.5%
Advertising Agencies -- 0.8%
Omnicom Group, Inc.................... 5,500 $ 203,170
----------
Aerospace/Defense -- 2.8%
Lockheed Martin Corp.................. 3,100 242,048
Northrop Grumman Corp................. 4,000 207,000
Raytheon Co........................... 4,800 230,256
----------
679,304
----------
Aerospace/Defense-Equipment -- 1.6%
Alliant Techsystems, Inc.+............ 1,700 132,345
United Technologies Corp.............. 4,100 249,813
----------
382,158
----------
Agricultural Chemicals -- 0.7%
Monsanto Co........................... 2,200 170,280
----------
Apparel Manufacturers -- 0.8%
Coach, Inc............................ 5,800 190,936
----------
Applications Software -- 4.5%
Microsoft Corp........................ 36,700 950,163
Nuance Communications, Inc.+.......... 9,100 136,136
----------
1,086,299
----------
Athletic Footwear -- 0.8%
NIKE, Inc., Class B................... 3,000 194,100
----------
Beverages-Non-alcoholic -- 3.8%
PepsiCo, Inc.......................... 8,800 516,208
The Coca-Cola Co...................... 7,700 413,490
----------
929,698
----------
Cellular Telecom -- 0.2%
Syniverse Holdings, Inc.+............. 3,200 56,000
----------
Chemicals-Specialty -- 0.4%
NewMarket Corp........................ 1,100 102,344
----------
Commercial Services-Finance -- 4.5%
Equifax, Inc.......................... 7,100 206,894
Global Cash Access Holdings, Inc.+.... 9,800 71,638
Mastercard, Inc., Class A............. 1,200 242,580
The Western Union Co.................. 9,300 175,956
Visa, Inc., Class A................... 5,600 387,016
----------
1,084,084
----------
Computer Software -- 0.7%
Accelrys, Inc.+....................... 29,900 173,420
----------
Computers -- 9.7%
Apple, Inc.+.......................... 4,600 852,702
Dell, Inc.+........................... 12,900 196,854
Hewlett-Packard Co.................... 11,300 533,473
International Business Machines Corp.. 6,300 753,543
----------
2,336,572
----------
Computers-Integrated Systems -- 0.2%
Cray, Inc.+........................... 5,800 48,314
----------
Computers-Periphery Equipment -- 0.4%
Synaptics, Inc.+...................... 3,400 85,680
----------
Market
Value
Security Description Shares (Note 3)
-------------------------------------------------------------
Consulting Services -- 1.7%
FTI Consulting, Inc.+...................... 3,100 $132,091
SAIC, Inc.+................................ 15,300 268,362
--------
400,453
--------
Consumer Products-Misc. -- 0.7%
Clorox Co.................................. 2,900 170,578
--------
Cosmetics & Toiletries -- 3.2%
Colgate-Palmolive Co....................... 2,000 152,560
The Procter & Gamble Co.................... 10,500 608,160
--------
760,720
--------
Data Processing/Management -- 1.9%
Dun & Bradstreet Corp...................... 3,300 248,556
Fiserv, Inc.+.............................. 4,200 202,440
--------
450,996
--------
Diagnostic Equipment -- 0.6%
Immucor, Inc.+............................. 8,000 141,600
--------
E-Commerce/Products -- 1.2%
Amazon.com, Inc.+.......................... 3,000 280,080
--------
E-Commerce/Services -- 0.7%
eBay, Inc.+................................ 3,200 75,552
priceline.com, Inc.+....................... 600 99,492
--------
175,044
--------
Educational Software -- 0.7%
Renaissance Learning, Inc.................. 17,800 176,932
--------
Electric Products-Misc. -- 0.7%
Emerson Electric Co........................ 4,200 168,336
--------
Electronic Components-Semiconductors -- 3.3%
Altera Corp................................ 10,200 209,202
Intel Corp................................. 21,500 420,755
Texas Instruments, Inc..................... 7,100 168,199
--------
798,156
--------
Electronic Forms -- 0.6%
Adobe Systems, Inc.+....................... 4,700 155,288
--------
Engineering/R&D Services -- 1.0%
Fluor Corp................................. 2,700 137,295
URS Corp.+................................. 2,500 109,125
--------
246,420
--------
Enterprise Software/Service -- 2.4%
Novell, Inc.+.............................. 19,000 85,690
Oracle Corp................................ 23,400 487,656
--------
573,346
--------
Finance-Investment Banker/Broker -- 0.8%
TD Ameritrade Holding Corp.+............... 9,600 188,352
--------
Finance-Other Services -- 0.5%
IntercontinentalExchange, Inc.+............ 1,300 126,347
--------
Food-Confectionery -- 0.6%
The Hershey Co............................. 4,000 155,440
--------
59
SunAmerica Disciplined Growth Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
Market
Value
Security Description Shares (Note 3)
--------------------------------------------------------------
COMMON STOCK (continued)
Food-Dairy Products -- 0.6%
Dean Foods Co.+........................... 8,500 $ 151,215
----------
Hospital Beds/Equipment -- 0.9%
Kinetic Concepts, Inc.+................... 5,600 207,088
----------
Industrial Audio & Video Products -- 0.8%
Dolby Laboratories, Inc., Class A+........ 4,900 187,131
----------
Instruments-Scientific -- 0.8%
Waters Corp.+............................. 3,300 184,338
----------
Insurance-Life/Health -- 0.8%
Aflac, Inc................................ 4,300 183,782
----------
Internet Telephone -- 0.7%
j2 Global Communications, Inc.+........... 7,500 172,575
----------
Investment Management/Advisor Services -- 0.8%
T. Rowe Price Group, Inc.................. 4,000 182,800
----------
Machinery-Construction & Mining -- 0.7%
Joy Global, Inc........................... 3,500 171,290
----------
Machinery-General Industrial -- 0.5%
Middleby Corp.+........................... 2,400 132,024
----------
Machinery-Pumps -- 0.7%
Flowserve Corp............................ 1,800 177,372
----------
Medical Instruments -- 0.9%
Medtronic, Inc............................ 5,900 217,120
----------
Medical Products -- 3.8%
Henry Schein, Inc.+....................... 3,900 214,149
Johnson & Johnson......................... 11,700 712,413
----------
926,562
----------
Medical-Biomedical/Gene -- 0.8%
Gilead Sciences, Inc.+.................... 3,900 181,662
----------
Medical-Drugs -- 4.7%
Abbott Laboratories....................... 6,200 306,714
Bristol-Myers Squibb Co................... 10,100 227,452
Eli Lilly & Co............................ 9,100 300,573
Schering-Plough Corp...................... 10,900 307,925
----------
1,142,664
----------
Medical-Generic Drugs -- 0.8%
Mylan, Inc.+.............................. 11,500 184,115
----------
Medical-Wholesale Drug Distribution -- 1.1%
AmerisourceBergen Corp.................... 12,300 275,274
----------
Metal-Copper -- 0.7%
Freeport-McMoRan Copper & Gold, Inc....... 2,500 171,525
----------
Multimedia -- 0.5%
The McGraw-Hill Cos., Inc................. 5,200 130,728
----------
Networking Products -- 3.4%
Cisco Systems, Inc.+...................... 33,200 781,528
Juniper Networks, Inc.+................... 1,900 51,338
----------
832,866
----------
Market
Value
Security Description Shares (Note 3)
-------------------------------------------------------------
Oil Companies-Integrated -- 2.0%
Exxon Mobil Corp........................ 7,000 $ 480,270
-----------
Oil Field Machinery & Equipment -- 0.5%
Cameron International Corp.+............ 3,300 124,806
-----------
Oil-Field Services -- 1.0%
Schlumberger, Ltd....................... 3,900 232,440
-----------
Pharmacy Services -- 1.0%
Express Scripts, Inc.+.................. 3,100 240,498
-----------
Retail-Apparel/Shoe -- 1.4%
Aeropostale, Inc.+...................... 3,700 160,839
The Gap, Inc............................ 7,900 169,060
-----------
329,899
-----------
Retail-Consumer Electronics -- 0.8%
Best Buy Co., Inc....................... 5,100 191,352
-----------
Retail-Discount -- 1.6%
Target Corp............................. 4,800 224,064
Wal-Mart Stores, Inc.................... 3,300 161,997
-----------
386,061
-----------
Retail-Drug Store -- 1.2%
CVS Caremark Corp....................... 8,200 293,068
-----------
Retail-Major Department Stores -- 1.1%
TJX Cos., Inc........................... 6,900 256,335
-----------
Retail-Regional Department Stores -- 0.9%
Kohl's Corp.+........................... 3,700 211,085
-----------
Retail-Restaurants -- 2.6%
Chipotle Mexican Grill, Inc., Class A+.. 1,800 174,690
McDonald's Corp......................... 4,200 239,694
Yum! Brands, Inc........................ 6,300 212,688
-----------
627,072
-----------
Semiconductor Equipment -- 0.3%
Tessera Technologies, Inc.+............. 3,000 83,670
-----------
Theaters -- 0.7%
National CineMedia, Inc................. 10,000 169,700
-----------
Tobacco -- 3.5%
Altria Group, Inc....................... 12,500 222,625
Philip Morris International, Inc........ 12,700 618,998
-----------
841,623
-----------
Web Portals/ISP -- 2.7%
Google, Inc., Class A+.................. 1,300 644,605
-----------
Wireless Equipment -- 1.7%
QUALCOMM, Inc........................... 9,000 404,820
-----------
Total Long-Term Investment Securities
(cost $20,593,542)..................... 24,019,882
-----------
60
SunAmerica Disciplined Growth Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
Market
Principal Value
Security Description Amount (Note 3)
-------------------------------------------------------------
REPURCHASE AGREEMENT -- 0.7%
State Street Bank & Trust Co.
Joint Repurchase Agreement(1)
(cost $160,000).................... $160,000 $ 160,000
-----------
TOTAL INVESTMENTS --
(cost $20,753,542)(2).............. 100.2% 24,179,882
Liabilities in excess of other assets. (0.2) (37,625)
-------- -----------
NET ASSETS -- 100.0% $24,142,257
======== ===========
- --------
+ 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.
The following is a summary of the inputs used to value the Fund's net assets as
of September 30, 2009 (see Note 3):
Level 1 -- Level 2 -- Level 3 --
Unadjusted Other Significant
Quoted Observable Unobservable
Prices Inputs Inputs Total
----------- ---------- ------------ -----------
Long-Term Investment
Securities:
Common Stock
Computers......... $ 2,336,572 $ -- $-- $ 2,336,572
Other
Industries*...... 21,683,310 -- -- 21,683,310
Repurchase
Agreement........... -- 160,000 -- 160,000
----------- -------- --- -----------
Total $24,019,882 $160,000 $-- $24,179,882
=========== ======== === ===========
- --------
*Sum of all other industries each of which individually has an aggregate market
value of less than 5% of net assets.
See Notes to Financial Statements
61
SunAmerica International Small-Cap Fund
PORTFOLIO PROFILE -- September 30, 2009 -- (unaudited)
Industry Allocation*
Index Funds................................ 10.0%
Time Deposit............................... 4.3
Investment Management/Advisor Services..... 3.3
Electronic Components-Misc................. 2.5
Retail-Restaurants......................... 2.3
Banks-Commercial........................... 2.2
Auto/Truck Parts & Equipment-Original...... 2.0
Diversified Manufacturing Operations....... 1.9
Chemicals-Specialty........................ 1.9
Diversified Operations..................... 1.8
Finance-Investment Banker/Broker........... 1.7
Telecom Services........................... 1.7
Medical-Drugs.............................. 1.7
Transport-Truck............................ 1.5
Machinery-General Industrial............... 1.5
E-Commerce/Services........................ 1.5
Oil Companies-Exploration & Production..... 1.3
Food-Misc.................................. 1.3
Diagnostic Kits............................ 1.3
Retail-Misc./Diversified................... 1.2
Internet Content-Information/News.......... 1.2
Electronic Components-Semiconductors....... 1.2
Real Estate Management/Services............ 1.2
Insurance-Reinsurance...................... 1.2
Chemicals-Diversified...................... 1.2
Computers-Periphery Equipment.............. 1.1
Electronic Connectors...................... 1.1
Auto/Truck Parts & Equipment-Replacement... 1.1
Electric Products-Misc..................... 1.0
Retail-Apparel/Shoe........................ 1.0
Oil-Field Services......................... 1.0
Real Estate Operations & Development....... 0.9
Applications Software...................... 0.9
Transactional Software..................... 0.9
Diversified Financial Services............. 0.9
Food-Baking................................ 0.9
Containers-Paper/Plastic................... 0.9
Building-Maintance & Services.............. 0.9
Machinery-Construction & Mining............ 0.9
Coal....................................... 0.8
Commercial Services........................ 0.8
Diversified Operations/Commercial Services. 0.8
Internet Content-Entertainment............. 0.8
Cable TV................................... 0.8
Advertising Sales.......................... 0.8
Semiconductor Equipment.................... 0.8
Beverages-Non-alcoholic.................... 0.8
Finance-Other Services..................... 0.8
Human Resources............................ 0.8
Transport-Rail............................. 0.7
Metal Processors & Fabrication............. 0.7
Medical Products........................... 0.7
Retail-Petroleum Products.................. 0.7
Cosmetics & Toiletries..................... 0.7
Machinery-Electrical....................... 0.6
Retail-Pubs................................ 0.6
Casino Services............................ 0.6
Computers-Integrated Systems............... 0.6
Auto-Cars/Light Trucks..................... 0.6
Medical Labs & Testing Services............ 0.5
Machine Tools & Related Products....... 0.5%
Alternative Waste Technology........... 0.5
Retail-Sporting Goods.................. 0.5
Internet Infrastructure Software....... 0.5
Travel Services........................ 0.5
Water Treatment Systems................ 0.5
Retail-Bookstores...................... 0.5
Advanced Materials..................... 0.5
Audio/Video Products................... 0.5
Soap & Cleaning Preparation............ 0.5
Direct Marketing....................... 0.5
Food-Dairy Products.................... 0.5
Power Converter/Supply Equipment....... 0.4
Building-Residential/Commercial........ 0.4
Rubber-Tires........................... 0.4
Real Estate Investment Trusts.......... 0.4
Television............................. 0.4
Medical-Nursing Homes.................. 0.4
Electronic Measurement Instruments..... 0.4
Consulting Services.................... 0.4
Leisure Products....................... 0.4
Machinery-Material Handling............ 0.4
Telephone-Integrated................... 0.4
Building Products-Air & Heating........ 0.4
Non-Ferrous Metals..................... 0.4
Transport-Services..................... 0.4
Coatings/Paint......................... 0.4
Pipelines.............................. 0.4
Retail-Discount........................ 0.3
Beverages-Wine/Spirits................. 0.3
Medical-Wholesale Drug Distribution.... 0.3
Lottery Services....................... 0.3
Building & Construction Products-Misc.. 0.3
E-Services/Consulting.................. 0.3
Medical Instruments.................... 0.3
Rubber/Plastic Products................ 0.3
Finance-Credit Card.................... 0.3
Computers.............................. 0.2
Food-Retail............................ 0.2
Agricultural Operations................ 0.2
Cellular Telecom....................... 0.2
Medical Information Systems............ 0.2
Auto-Heavy Duty Trucks................. 0.2
Miscellaneous Manufacturing............ 0.2
Paper & Related Products............... 0.2
Batteries/Battery Systems.............. 0.2
Agricultural Chemicals................. 0.2
Brewery................................ 0.2
Transport-Marine....................... 0.1
Machinery-Thermal Process.............. 0.1
Motion Pictures & Services............. 0.1
Bicycle Manufacturing.................. 0.1
Engines-Internal Combustion............ 0.1
Retail-Regional Department Stores...... 0.1
----
99.3%
====
- --------
*Calculated as a percentage of net assets
62
SunAmerica International Small-Cap Fund
PORTFOLIO PROFILE -- September 30, 2009 -- (unaudited) (continued)
Country Allocation*
Japan.......... 21.3%
United Kingdom. 10.6
Luxembourg..... 7.0
United States.. 6.5
France......... 6.1
Ireland........ 5.8
Italy.......... 4.9
South Korea.... 4.5
Australia...... 3.9
Cayman Islands. 3.6
Germany........ 3.4
Switzerland.... 2.8
Hong Kong...... 2.1
Denmark........ 1.9
Singapore...... 1.8
Taiwan......... 1.7
Sweden......... 1.7
Netherlands.... 1.6
China.......... 1.6
Bermuda........ 0.9
Indonesia...... 0.9
Spain.......... 0.9
Finland........ 0.8
Jersey......... 0.8
Malaysia....... 0.6
Norway......... 0.4
Thailand....... 0.4
Greece......... 0.4
Mauritius...... 0.2
Austria........ 0.2
----
99.3%
====
- --------
*Calculated as a percentage of net assets
63
SunAmerica International Small-Cap Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009
Market
Value
Security Description Shares (Note 3)
----------------------------------------------------------------------
COMMON STOCK -- 84.6%
Australia -- 3.9%
Ansell, Ltd....................................... 21,058 $ 185,774
Asciano Group..................................... 175,640 256,442
Bendigo & Adelaide Bank, Ltd...................... 34,320 284,605
carsales.com.au Ltd.+............................. 74,959 247,983
CSR, Ltd.......................................... 348,579 578,131
Domino's Pizza Enterprises, Ltd................... 40,499 144,699
Felix Resources, Ltd.............................. 11,316 171,208
MacArthur Coal, Ltd............................... 50,399 419,721
Nufarm, Ltd....................................... 25,519 255,521
The Reject Shop, Ltd.............................. 9,125 107,468
Webjet, Ltd....................................... 46,563 64,903
----------
2,716,455
----------
Austria -- 0.2%
Rosenbauer International AG....................... 3,197 144,888
----------
Bermuda -- 0.9%
China Gas Holdings, Ltd........................... 774,000 246,680
China Yurun Food Group, Ltd....................... 77,000 165,922
Huabao International Holdings, Ltd................ 145,000 155,476
Pacific Basin Shipping, Ltd....................... 139,000 91,829
Peace Mark Holdings, Ltd.(1)(2)................... 8,000 0
----------
659,907
----------
Cayman Islands -- 3.6%
AAC Acoustic Technologies Holdings, Inc........... 402,000 440,382
Agile Property Holdings, Ltd...................... 230,000 270,656
China Dongxiang Group Co.......................... 564,000 374,057
China High Speed Transmission Equipment Group
Co., Ltd......................................... 152,000 311,843
China Mengniu Dairy Co., Ltd...................... 123,000 313,291
China State Construction International Holdings,
Ltd.............................................. 530,400 207,368
Li Ning Co., Ltd.................................. 79,000 243,624
Shui On Land, Ltd................................. 299,000 171,683
Xinyi Glass Holding Co., Ltd...................... 264,000 185,650
----------
2,518,554
----------
China -- 1.6%
Beijing Jingkelong Supermarket Chain Group Co.,
Ltd.............................................. 269,000 163,481
China National Materials Co., Ltd................. 294,000 251,511
Weichai Power Co., Ltd............................ 46,000 242,463
Zhuzhou CSR Times Electric Co., Ltd............... 248,000 433,277
----------
1,090,732
----------
Denmark -- 1.9%
DSV A/S+.......................................... 36,230 645,966
SimCorp A/S....................................... 3,154 646,666
----------
1,292,632
----------
Finland -- 0.8%
Nokian Renkaat Oyj................................ 12,951 301,903
Talvivaara Mining Co., PLC+....................... 43,829 265,962
----------
567,865
----------
France -- 5.2%
Meetic+........................................... 16,839 563,794
Nexity............................................ 14,678 584,982
Market
Value
Security Description Shares (Note 3)
---------------------------------------------------------------
France (continued)
Rubis SA................................ 5,068 $ 462,774
SCOR SE................................. 21,310 582,516
Seloger.com+............................ 15,358 615,791
SOITEC+................................. 20,672 289,647
Teleperformance......................... 16,369 549,375
----------
3,648,879
----------
Germany -- 3.0%
CTS Eventim AG.......................... 6,333 286,918
Freenet AG+............................. 20,136 275,213
Rheinmetall AG.......................... 15,844 938,077
Sky Deutschland AG+..................... 105,877 562,414
----------
2,062,622
----------
Greece -- 0.4%
Athens Stock Exchange SA................ 20,925 265,787
----------
Hong Kong -- 2.1%
China Everbright International, Ltd..... 926,000 376,372
Dah Sing Banking Group, Ltd............. 118,400 152,773
Denway Motors, Ltd...................... 864,000 386,847
Shanghai Industrial Holdings, Ltd....... 35,000 158,289
Techtronic Industries Co................ 454,000 376,671
----------
1,450,952
----------
Indonesia -- 0.9%
PT Indofood Sukses Makmur Tbk........... 1,202,500 376,365
PT United Tractors Tbk.................. 144,666 233,501
----------
609,866
----------
Ireland -- 3.0%
Allied Irish Banks PLC.................. 58,996 282,089
DCC PLC................................. 33,485 862,404
Greencore Group PLC..................... 146,482 341,895
Irish Life & Permanent PLC.............. 73,395 612,194
----------
2,098,582
----------
Italy -- 4.9%
Amplifon SpA............................ 142,078 571,752
Ansaldo STS SpA......................... 24,570 503,003
Autogrill SpA+.......................... 47,483 573,939
Azimut Holding SpA...................... 71,818 907,494
DiaSorin SpA............................ 26,238 883,093
----------
3,439,281
----------
Japan -- 21.3%
Ahresty Corp............................ 14,500 114,688
Ain Pharmaciez, Inc..................... 13,700 380,789
Asahi Intecc Co., Ltd................... 5,500 88,843
Axell Corp.............................. 13,200 555,851
Benefit One, Inc........................ 165 140,066
CanBas Co., Ltd.+....................... 2,000 75,530
Chugoku Marine Paints, Ltd.............. 40,000 251,323
CMIC Co., Ltd........................... 230 63,441
Credit Saison Co., Ltd.................. 15,500 182,343
Dai-ichi Seiko Co., Ltd................. 11,100 531,722
Daihatsu Diesel Manufacturing Co., Ltd.. 10,000 49,240
Daiseki Co., Ltd........................ 9,300 183,379
Dena Co., Ltd........................... 22 60,781
64
SunAmerica International Small-Cap Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
Market
Value
Security Description Shares (Note 3)
----------------------------------------------------------
COMMON STOCK (continued)
Japan (continued)
Disco Corp.......................... 4,200 $ 279,797
Don Quijote Co., Ltd................ 5,400 128,135
en-japan, Inc....................... 214 292,994
Enplas Corp......................... 4,700 90,319
EPS Co., Ltd........................ 61 253,473
Foster Electric Co., Ltd............ 15,300 337,822
FP Corp............................. 11,700 606,082
Funai Electric Co., Ltd............. 5,900 269,481
GCA Savvian Group Corp.............. 116 146,026
HIRANO TECSEED Co., Ltd............. 6,000 72,924
H.I.S. Co., Ltd..................... 17,700 365,180
Hisamitsu Pharmaceutical Co., Inc... 3,000 121,651
Intage, Inc......................... 11,900 202,167
Iriso Electronics Co., Ltd.......... 16,600 244,104
Japan Electronic Materials Corp..... 6,500 48,153
Kakaku.com, Inc..................... 64 235,281
Koito Manufacturing Co., Ltd........ 24,000 332,869
Kokusai Co., Ltd.................... 31,000 225,511
MACROMILL, Inc...................... 129 193,288
Mani, Inc........................... 5,200 384,649
Mars Engineering Corp............... 11,300 416,677
Message Co., Ltd.................... 148 295,126
MICRONICS JAPAN CO., LTD............ 3,900 69,428
Modec, Inc.......................... 5,200 106,358
Moshi Moshi Hotline, Inc............ 16,200 316,186
Nichi-iko Pharmaceutical Co., Ltd... 9,800 316,059
Nichii Gakkan Co.................... 5,900 58,957
Nihon M&A Center, Inc............... 20 90,681
Nishimatsuya Chain Co., Ltd......... 41,700 438,067
Nomura Real Estate Holdings, Inc.... 10,600 172,288
Oenon Holdings, Inc................. 100,000 222,804
OPTEX Co., Ltd...................... 6,800 83,783
Osaka Securities Exchange Co., Ltd.. 58 263,622
Otsuka Corp......................... 6,700 400,813
OUTSOURCING, Inc.................... 271 199,254
Proto Corp.+........................ 11,900 373,843
Roland DG Corp...................... 17,700 253,970
Shima Seiki Manufacturing, Ltd...... 1,500 34,841
Shimano, Inc........................ 1,400 60,514
Sintokogio, Ltd..................... 9,400 71,627
Software Service, Inc............... 10,300 150,315
Sysmex Corp......................... 4,300 185,863
Taiko Pharmaceutical Co., Ltd....... 7,200 317,629
The Hiroshima Bank, Ltd............. 24,000 99,192
Toho Holdings Co., Ltd.............. 15,400 212,733
Token Corp.......................... 9,540 310,330
TOKYU LIVABLE, Inc.................. 7,900 66,446
Toridoll.corp....................... 161 354,410
Towa Corp.+......................... 15,800 139,052
Union Tool Co....................... 5,400 172,350
Unipres Corp........................ 5,900 83,802
Village Vanguard Co., Ltd........... 89 356,932
VSN, Inc............................ 11,400 89,788
Works Applications Co., Ltd......... 515 353,412
Yamaguchi Financial Group, Inc...... 14,000 145,201
-----------
14,790,255
-----------
Market
Value
Security Description Shares (Note 3)
---------------------------------------------------------
Jersey -- 0.8%
Henderson Group PLC................. 263,891 $ 544,042
----------
Luxembourg -- 1.0%
Acergy SA........................... 52,681 663,517
----------
Malaysia -- 0.6%
Berjaya Sports Toto Bhd............. 164,785 210,921
IJM Corp. Bhd....................... 158,760 206,420
----------
417,341
----------
Mauritius -- 0.2%
Golden Agri-Resources, Ltd.+........ 526,670 160,770
----------
Netherlands -- 1.6%
ASM International NV+............... 29,780 548,436
BinckBank NV........................ 33,544 593,947
----------
1,142,383
----------
Norway -- 0.4%
Opera Software ASA.................. 77,476 301,797
----------
Singapore -- 1.8%
CapitaCommercial Trust.............. 407,000 300,486
Epure International, Ltd............ 423,000 171,164
Hyflux, Ltd......................... 88,000 190,537
Venture Corp., Ltd.................. 58,000 370,156
Yanlord Land Group.................. 135,000 218,507
----------
1,250,850
----------
South Korea -- 4.5%
Cheil Industries, Inc............... 5,330 231,159
CJ Internet Corp.................... 5,940 65,538
Digitech Systems Co., Ltd.+......... 4,627 105,440
GIovis Co., Ltd..................... 4,457 421,774
Hansol Paper Co., Ltd.+............. 13,670 138,643
Hite Brewery Co., Ltd............... 819 116,777
Hyundai DSF Co,, Ltd................ 5,560 40,110
Hyundai Mobis....................... 3,372 473,640
Korean Reinsurance Co............... 23,580 237,151
LG Household & Health Care, Ltd..... 2,021 452,827
SODIFF Advanced Materials Co., Ltd.. 4,201 341,571
Sungwoo Hitech Co., Ltd............. 23,102 208,815
Taewoong Co., Ltd................... 4,115 264,380
----------
3,097,825
----------
Spain -- 0.9%
Bolsasy Mercados Espanoles.......... 15,223 592,779
----------
Sweden -- 1.7%
Clas Ohlson AB...................... 16,557 295,688
Mekonomen AB........................ 16,860 309,564
Modern Times Group AB, Class B...... 6,862 296,771
NIBE Industrier AB.................. 26,787 271,853
----------
1,173,876
----------
Switzerland -- 2.8%
Aryzta AG+.......................... 14,980 607,122
Clariant AG+........................ 64,396 585,983
EFG International AG................ 17,000 305,944
Partners Group Holding AS........... 3,606 439,832
----------
1,938,881
----------
65
SunAmerica International Small-Cap Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
Market
Value
Security Description Shares (Note 3)
---------------------------------------------------------------------
COMMON STOCK (continued)
Taiwan -- 1.7%
Chicony Electronics Co., Ltd.................. 198,318 $ 448,479
Far EasTone Telecommunications Co., Ltd....... 133,000 155,556
InnoLux Display Corp.......................... 59,740 76,004
Shin Zu Shing Co., Ltd........................ 21,884 122,190
Simplo Technology Co., Ltd.................... 22,000 124,891
Taiwan Fertilizer Co., Ltd.................... 33,000 118,048
Wistron Corp.................................. 90,058 167,521
-----------
1,212,689
-----------
Thailand -- 0.4%
TMB Bank PCL (foreign shares)+(3)............. 7,856,300 279,826
-----------
United Kingdom -- 10.6%
Afren PLC+.................................... 328,272 421,014
Babcock International Group PLC............... 66,010 599,733
BlueBay Asset Management PLC.................. 57,726 272,152
Britvic PLC................................... 95,302 536,882
Chemring Group PLC............................ 15,530 606,583
Cookson Group PLC............................. 83,207 546,670
Croda International PLC....................... 53,424 560,090
Dana Petroleum PLC+........................... 22,340 500,552
Enterprise Inns PLC........................... 211,089 420,004
Healthcare Locums PLC......................... 104,155 434,449
McBride PLC................................... 103,805 317,691
Rentokil Initial PLC.......................... 315,060 573,502
Restaurant Group PLC.......................... 175,024 539,850
Telecity Group PLC+........................... 93,304 477,015
Victrex PLC................................... 45,341 553,246
-----------
7,359,433
-----------
United States -- 1.9%
Asialnfo Holdings, Inc.+...................... 18,500 369,445
Autoliv, Inc.................................. 8,776 294,874
Virgin Media, Inc. ........................... 48,810 679,435
-----------
1,343,754
-----------
Total Common Stock
(cost $44,478,259)........................... 58,837,020
-----------
EXCHANGE-TRADED FUNDS -- 10.0%
France -- 0.9%
Lyxor ETF Eastern Europe...................... 25,041 637,601
-----------
Ireland -- 2.8%
iShares MSCI Latin America Fund............... 81,906 1,927,921
-----------
Luxembourg -- 6.0%
db x-trackers -- MSCI Emerging Latin America
TRN Index ETF................................ 36,898 1,915,006
db x-trackers -- MSCI Emerging Markets TRN
Index ETF.................................... 79,800 2,248,764
-----------
4,163,770
-----------
Shares/ Market
Principal Value
Security Description Amount (Note 3)
--------------------------------------------------------------
United States -- 0.3%
iShares MSCI Israel Capped
Investable Market Index Fund........ 5,000 $ 244,550
-----------
Total Exchange-Traded Funds
(cost $5,554,131)................... 6,973,842
-----------
PREFERRED STOCK -- 0.4%
Germany -- 0.4%
Jungheinrich AG
(cost $288,274)..................... 14,100 283,500
-----------
RIGHTS+ -- 0.0%
Malaysia -- 0.0%
IJM Land Bhd
Expires 10/16/09
(cost $0)........................... 15,876 1,949
-----------
WARRANTS+ -- 0.0%
Mauritius -- 0.0%
Golden Agri-Resources, Ltd.
Expires 07/23/12
(strike price $0.38)
(cost $0)........................... 18,172 1,677
-----------
Total Long-Term Investment Securities
(cost $50,320,664).................. 66,097,988
-----------
SHORT-TERM INVESTMENT SECURITIES -- 4.3%
Time Deposit -- 4.3%
Euro Time Deposit with State Street
Bank & Trust Co.
0.01% due 10/01/09
(cost $2,972,000)................... $2,972,000 2,972,000
-----------
TOTAL INVESTMENTS --
(cost $53,292,664)(4)............... 99.3% 69,069,988
Other assets less liabilities.......... 0.7 458,422
---------- -----------
NET ASSETS -- 100.0% $69,528,410
========== ===========
- --------
+ Non-income producing security
(1) Fair valued security. Securities are classified as Level 3 based on the
securities valuation inputs; See Note 3.
(2) Illiquid security. At September 30, 2009, the aggregate value of these
securities was $0 representing 0.0% of net assets.
(3) Fair valued security. Securities are classified as Level 2 based on the
securities valuation inputs; see Note 3.
(4) See Note 7 for cost of investments on a tax basis.
ETF --Exchange-Traded Fund
66
SunAmerica International Small-Cap Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2009 -- (continued)
The following is a summary of the inputs used to value the Fund's net assets as
of September 30, 2009 (see Note 3):
Level 1 -- Unadjusted Level 2 -- Other Level 3 -- Significant
Quoted Prices Observable Inputs Unobservable Inputs Total
- --------------------- ----------------- ---------------------- -----------
Long-Term Investment Securities:
Common Stock
France......................................... $ 3,648,879 $ -- $-- $ 3,648,879
Japan.......................................... 14,790,255 -- -- 14,790,255
United Kingdom................................. 7,359,433 -- -- 7,359,433
Other Countries*............................... 32,758,627 279,826 0 33,038,453
Exchange-Traded Fund............................
Luxemburg...................................... 4,163,770 -- -- 4,163,770
Other Countries*............................... 2,810,072 -- -- 2,810,072
Preferred Stock................................. 283,500 -- -- 283,500
Rights.......................................... -- 1,949 -- 1,949
Warrants........................................ 1,677 -- -- 1,677
Short-Term Investment Securities
Time Deposit.................................... -- 2,972,000 -- 2,972,000
----------- ---------- --- -----------
Total............................................. $65,816,213 $3,253,775 $ 0 $69,069,988
=========== ========== === ===========
- --------
*Sum of all other countries each of which individually has an aggregate market value of less than 5% of net assets.
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
Common Stock --
Other Countries
- ---------------------
Balance as of 9/30/2008........................... $ 11,586
Accrued discounts/premiums........................ --
Realized gain (loss).............................. (40,140)
Change in unrealized appreciation (depreciation).. 28,699
Net purchases (sales)............................. (145)
Transfers in and/or out of Level 3................ --
-----------
Balance as of 9/30/2009........................... $ 0
===========
See Notes to Financial Statements
67
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009
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 SunAmerica Asset Management Corp. (the
"Adviser" or "SunAmerica")*. 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 are 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 Blue Chip companies.
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 equity 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.
- --------
* Effective April 1, 2009, AIG SunAmerica Asset Management Corp. changed its
name to SunAmerica Asset Management Corp.
68
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (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 deferred 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 certain institutions and to participants
in certain employee benefit plans and other programs. Class I shares are
closed to new purchases, however, existing investors may continue to
purchase shares through reinvestments of dividends and capital gains
distributions.
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 liabilities arising out of the
performance of their duties to the Trust. In addition, pursuant to
Indemnification Agreements between the Trust and each of the current
trustees who is not an "interested person," as defined in Section 2(a)(19)
of the 1940 Act, of the Trust (collectively, the "Disinterested Directors"),
the Trust provides the Disinterested Directors with a limited
indemnification against liabilities arising out of the performance of their
duties to the Trust, whether such liabilities are asserted during or after
their service as trustees. 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
Focused International Equity Portfolio, a series of SunAmerica Focused
Series, Inc. (the "Corporation"), were transferred in a tax-free exchange to
the International Equity Fund, in exchange for shares of International
Equity Fund. The details of the reorganization, which was consummated on
January 12, 2009, are set forth below.
Class A, Class B, and Class C shares of Focused International Equity
Portfolio were exchanged tax-free for Class A, Class B, and Class C shares
of International Equity Fund at an exchange ratio of 1.10 to 1, 1.14 to 1
and 1.13 to 1, respectively.
69
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (continued)
Net assets and unrealized appreciation (depreciation) as of the merger date
were as follows:
Net assets of the Focused International Equity Portfolio prior to merger....................................... $107,741,476
Net assets of the International Equity Fund prior to merger.................................................... $ 47,409,481
------------
Aggregate net assets of the International Equity Fund following acquisition.................................... $155,150,957
------------
Shares of the International Equity Fund issued in connection with the acquisition of the Focused International
Equity Portfolio.............................................................................................. 12,447,732
Unrealized appreciation (depreciation) in the Focused International Equity Portfolio........................... $(28,289,972)
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 if a
development/significant event occurs that may significantly impact the value
of the security, then these securities are valued, as determined pursuant to
procedures adopted in good faith by the Board. There is no single standard
for making fair value determinations, which may result in prices that vary
from those of other funds.
70
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (continued)
The various inputs that may be used to determine the value of the Funds'
investments are summarized into three broad levels listed below:
Level 1 -- Unadjusted quoted prices in active markets for identical
securities
Level 2 -- Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk, quoted
prices in inactive markets, etc.)
Level 3 -- Significant unobservable inputs (includes inputs that reflect the
Funds' own assumptions about the assumptions market participants would use
in pricing the security, developed based on the best information available
under the circumstances.)
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities.
The summary of the inputs used to value the Funds' net assets as of
September 30, 2009 are reported on a schedule following the Portfolio of
Investments.
Derivative Instruments:
Structured Securities: The Funds may invest in structured securities for
various purposes, including managing exposure to fluctuations in currency
exchange rates, interest rates, commodity prices, indices or other financial
indicators or with the objective of enhancing total return. As of September
30, 2009, the Balanced Assets Fund had one open structured security.
Structured securities include notes, bonds or debentures that provide for
the payment of principal of, and/or interest in, amounts determined by
reference to changes in the value of specific currencies, interest rates,
commodities, indices or other financial indicators (the "Reference") or the
relative change in two or more References. The interest rate or the
principal amount payable upon maturity or redemption may be increased or
decreased depending upon changes in the applicable Reference. The terms of
structured securities may provide that under certain circumstances no
principal is due at maturity and, therefore, may result in the loss of a
Fund's entire investment in the structured security. Structured securities
may be positively or negatively indexed, so that appreciation of the
Reference may produce an increase or decrease in the interest rate or value
of the security at maturity. In addition, the change in interest rate or the
value of the security at maturity may be a multiple of the change in the
value of the Reference (i.e. leveraged structured securities). Consequently,
leveraged structured securities entail a greater degree of market risk than
other types of debt obligations. Structured securities may also be more
volatile, less liquid and more difficult to price than less complex fixed
income investments (i.e. investment grade corporate bonds).
The risk of investing in a particular structured security will depend upon
the terms of the instrument, however, structured securities generally will
expose the Fund to credit risk, illiquidity risk and market risk. Credit
risk arises from the potential inability of counterparties to meet the terms
of their contract. Structured securities are typically sold in private
placement transactions with no active trading market. Market risk is the
risk that there will be an unfavorable change in the Reference. Investments
in structured securities may be more volatile than their underlying
instruments; however, generally any loss is limited to the amount of the
original investment.
Swap Contracts: The Funds may enter into certain types of swap contracts.
Generally, a swap contract is a privately negotiated agreement between a
Fund and a counterparty to exchange or swap investment cash flows, assets,
foreign currencies or market-linked returns at specified, future intervals.
Swap contracts are either marked-to-market daily based upon quotations from
market makers or are calculated using standard models and current market
data. Any change, in market value is recorded as an unrealized gain or loss.
In connection with these contracts, securities or cash may be identified as
collateral in accordance with the terms of the respective swap contract to
provide assets of value and recourse in the event of default or
bankruptcy/insolvency. The Funds amortize upfront payments and receipts on
the swap contracts on a daily basis. A liquidation payment received or made
at the termination of the swap is recorded as realized gain or loss. Net
periodic payments made or received by the Funds are included as part of
realized gain (loss).
Credit Default Swap Agreements: Credit default swaps are bilateral contracts
in which one party makes periodic fixed-rate payments or a one time premium
payment (referred to as the buyer of protection) to another party (the
seller of protection) in
71
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (continued)
exchange for the right to receive a specified payment in the event of a
default or other credit event for the referenced entity, obligation or
index. The seller of protection on credit default swaps, will generally
receive from the buyer of protection a fixed rate of income throughout the
term of the swap provided that there is no credit event. The seller would
effectively add leverage to its investment because, it would be subject to
investment exposure on the notional amount of the swap.
If a credit event occurs, as defined under the terms of that particular swap
agreement, a seller of protection will either (i) pay to the buyer of
protection an amount equal to the notional amount of the swap and take
delivery of the referenced obligation, other deliverable obligations or
underlying securities comprising the referenced index or (ii) pay a net
settlement amount in the form of cash or securities equal to the notional
amount of the swap less the recovery value of the referenced obligation or
underlying securities comprising the referenced index.
A buyer of protection on credit default swaps will make periodic payments,
similar to an insurance premium, to the seller of protection and the seller
agrees to compensate the buyer for future potential losses as a result of a
credit event on the reference bond or other asset. The buyer effectively
transfers the credit event risk of the reference bond or asset from it to
the seller of protection.
If a credit event occurs, as defined under the terms of that particular swap
agreement, a buyer of protection will either (i) receive from the seller of
protection an amount equal to the notional amount of the swap and deliver
the referenced obligation, other deliverable obligations or underlying
securities comprising the referenced index or (ii) receive a net settlement
amount in the form of cash or securities equal to the notional amount of the
swap less the recovery value of the referenced obligation or underlying
securities comprising the referenced index. Recovery values are assumed by
market makers considering either industry standard recovery rates or entity
specific factors and considerations until a credit event occurs. If a credit
event has occurred, the recovery value is determined by a facilitated
auction whereby a minimum number of allowable broker bids, together with a
specified valuation method, are used to calculate the settlement value.
Credit default swaps on corporate issues or sovereign issues of an emerging
country are bilateral contracts in which the buyer of protection makes
periodic fixed payments or a one time premium payment to the seller of
protection in exchange for the right to receive a specified payment in the
event of a default or other credit event. If a credit event occurs and cash
settlement is not elected, a variety of other deliverable obligations may be
delivered in lieu of the specific referenced obligation. The ability to
deliver other obligations may result in a cheapest-to-deliver option (the
buyer of protection's right to choose the deliverable obligation with the
lowest value following a credit event). An investor may use credit default
swaps on corporate issues or sovereign issues of an emerging country to
provide a measure of protection against defaults of the issuers (i.e., to
reduce credit risk where the investor owns or has exposure to the referenced
obligation) or to take a speculative credit position with an active long or
short position with respect to the likelihood of a particular issuer's
default.
Credit default swaps on asset-backed securities are bilateral contracts in
which the buyer of protection makes periodic fixed-rate payments or a one
time premium payment to the seller of protection in exchange for the right
to receive a specified payment in the event of a default or other credit
event. Unlike credit default swaps on corporate issues or sovereign issues
of an emerging country, deliverable obligations in most instances would be
limited to the specific referenced obligation as performance for
asset-backed securities can vary across deals. Prepayments, principal
paydowns, and other write down or loss events on the underlying mortgage
loans will reduce the outstanding principal balance of the referenced
obligation.
These reductions may be temporary or permanent as defined under the terms of
the swap agreement and the notional amount for the swap agreement will be
adjusted by corresponding amounts. An investor may use credit default swaps
on asset-backed securities to provide a measure of protection against
defaults of the referenced obligation or to take a speculative credit
position with an active long or short position with respect to the
likelihood of a particular referenced obligation's default.
Credit default swaps on credit indices are bilateral contracts in which the
buyer of protection makes periodic fixed-rate payments or a one time premium
payment to the seller of protection in exchange for the right to receive a
specified payment in the event of a write down, principal shortfall,
interest shortfall or default of all or part of the referenced entities
comprising the credit index. A credit index is a list of a basket of credit
instruments or exposures designed to be representative of some part of the
credit market as a whole. These indices are made up of reference credits
that are judged by a poll of dealers to be the most liquid entities in the
credit default swap market based on the sector of the index. Components of
the indices may include, but are not limited to,
72
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (continued)
investment grade securities, high yield securities, asset-backed securities,
emerging markets, and/or various credit ratings within each sector. Credit
indices are traded using credit default swaps with standardized terms
including a fixed spread and standard maturity dates. An index credit
default swap references all the names in the index, and if there is a
default, the credit event is settled based on that name's weight in the
index. The composition of the indices changes periodically, usually every
six months, and for most indices, each name has an equal weight in the
index. An investor may use credit default swaps on credit indices to hedge a
portfolio of credit default swaps or bonds which is less expensive than it
would be to enter into many credit default swaps to achieve a similar
effect. Credit-default swaps on indices are used for protecting investors
owning bonds against default, and also to speculate on changes in credit
quality.
The maximum potential amount of future payments (undiscounted) that a seller
of protection could be required to make under a credit default swap would be
an amount equal to the notional amount of the agreement. These potential
amounts would be partially offset by any recovery values of the respective
referenced obligations, upfront payments received upon entering into the
agreement, or net amounts received from the settlement of buy protection
credit default swaps entered into for the same referenced entity or entities.
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, plus
accrued interest, 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 September 30, 2009, the following Funds held an undivided interest in
a joint repurchase agreement with State Street Bank & Trust Co.:
Percentage Principal
Fund Interest Amount
- ---- ---------- ----------
Blue Chip Growth..... 0.54% $1,005,000
Growth Opportunities. 4.35 8,073,000
New Century.......... 4.17 7,753,000
Growth and Income.... 0.22 404,000
Balanced Assets...... 0.63 1,164,000
Value................ 0.96 1,783,000
Disciplined Growth... 0.09 160,000
As of such date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
State Street Bank & Trust Co., dated September 30, 2009, bearing interest at
a rate of 0.01% per annum, with a principal amount of $185,727,000, a
repurchase price of $185,727,052, and a maturity date of October 1, 2009.
The repurchase agreement is collateralized by the following:
Maturity Principal
Type of Collateral Interest Rate Date Amount Market Value
- ------------------ ------------- -------- ------------ ------------
U.S. Treasury Bills. 0.15% 02/25/10 $189,560,000 $189,446,264
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
73
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (continued)
various rates. Under applicable foreign law, a withholding of tax may be
imposed on interest, dividends, and capital gains at various rates. For
financial statements purposes, the Funds amortize all premiums and accrete
all discounts on fixed income securities.
Net investment income, other than class-specific expenses, and realized and
unrealized gains and losses, are allocated daily to each class of shares
based upon the relative net asset value of outstanding shares of each class
of shares at the beginning of the day (after adjusting for the current
capital shares activity of the respective class).
Expenses common to all Funds, not directly related to individual Funds, are
allocated among the Funds based upon their relative net asset value or other
appropriate methods. In all other respects, expenses are charged to each
Fund as incurred on a specific identification basis. Interest earned on cash
balances held at the custodian are shown as custody credits on the Statement
of Operations.
Dividends from net investment income, if any, are paid annually, except for
the Balanced Assets Fund and Growth and Income Fund, which pay quarterly.
Capital gain distributions, if any, are paid at least annually. The Balanced
Assets Fund and Growth and Income Fund reserve the right to declare and pay
dividends less frequently than disclosed above, provided that net realized
capital gains and net investment income, if any, are paid annually.
The Funds record dividends and distributions to their shareholders on the
ex-dividend date. The amount of dividends and distributions from net
investment income and net realized capital gains are determined and
presented in accordance with federal income tax regulations, which may
differ from U.S. generally accepted accounting principles. These "book/tax"
differences are either considered temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts are
reclassified within the capital accounts at fiscal year end based on their
federal tax-basis treatment; temporary differences do not require
reclassification. Net investment income (loss), net realized gain (loss) and
net assets are not affected by these reclassifications.
Each Fund intends to comply with the requirements of the Internal Revenue
Code, as amended, applicable to regulated investment companies and
distribute all of its taxable income, including any net realized gain on
investments to its shareholders. Therefore, no federal tax provisions are
required. Each Fund is considered a separate entity for tax purposes. 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 2005.
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.
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 SunAmerica. Under the Agreement, SunAmerica
provides continuous supervision of a Fund's portfolio and administers its
corporate affairs, subject to general review by the Trustees. In connection
therewith, 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
SunAmerica and its affiliates.
74
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (continued)
The Funds pay 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
- --------
+ Effective September 1, 2008, SunAmerica agreed to a voluntary waiver of
0.02% of the investment advisory fees for the Growth Opportunities Fund and
the New Century Fund. These voluntary waivers may be terminated at any time
at the option of SunAmerica. For the year ended September 30, 2009, the
amount of investment advisory fees waived were $5,162 and $6,789,
respectively. These amounts are reflected in the Statement of Operations.
* Effective October 26, 2009, the investment advisory and management fee was
decreased from 1.00% of average daily net assets to 0.75% of average daily
net assets. Please see Note 14 for additional information.
For the year ended September 30, 2009, 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 SunAmerica. AIGGIC is an indirect wholly-owned
subsidiary of AIG and an affiliate of 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 SunAmerica. For the year ended September 30, 2009, AIGGIC
voluntary waived 0.05% of the fee payable by SunAmerica to AIGGIC for the
International Small-Cap Fund.
75
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (continued)
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 daily net assets. Annual Fund
operating expenses shall not include extraordinary expenses, as determined
under generally accepted accounting principals, or acquired fund fees and
expenses. The contractual expense waivers and fee reimbursements will
continue indefinitely subject to termination by the Trustees, including a
majority of the Disinterested Trustees.
Fund Percentage
- ---- ----------
Blue Chip Growth Class I........ 1.33%
Growth Opportunities Class I.... 1.33
Growth and Income Class I....... 1.32
Balanced Assets Class I......... 1.33
International Equity Class A.... 1.90
International Equity Class B.... 2.55
International Equity Class C.... 2.55
International Equity Class I.... 1.80
Value Class A................... 1.63
Value Class B................... 2.28
Value Class C................... 2.28
Value Class I................... 1.53
Value Class Z................... 1.06
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, 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
SunAmerica.
Fund Percentage
- ---- ----------
Blue Chip Growth Class A*....... 1.80%
Blue Chip Growth Class B*....... 2.45
Blue Chip Growth Class C*....... 2.45
Growth Opportunities Class A*... 1.80
Growth Opportunities Class B*... 2.45
Growth Opportunities Class C*... 2.45
New Century Class A*............ 1.80
New Century Class B*............ 2.45
New Century Class C............. 2.14
Growth and Income Fund Class A*. 1.80
Growth and Income Fund Class B*. 2.45
Growth and Income Fund Class C*. 2.45
Balanced Assets Fund Class A*... 1.80
Balanced Assets Fund Class B*... 2.45
Balanced Assets Fund Class C*... 2.45
- --------
* Effective February 18, 2009.
76
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (continued)
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 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 SunAmerica and
remain in compliance with the foregoing expense limitations.
For the year ending September 30, 2009, pursuant to the contractual and
voluntary expense limitations in the above tables SunAmerica has waived or
reimbursed expenses as follows:
Blue Chip Growth Class A........ $ 8,234
Blue Chip Growth Class B........ 5,925
Blue Chip Growth Class C........ 5,769
Blue Chip Growth Class I........ 12,186
Growth Opportunities Class A.... 34,515
Growth Opportunities Class B.... 12,627
Growth Opportunities Class C.... 9,713
Growth Opportunities Class I.... 9,137
New Century Fund Class A........ 29,372
New Century Fund Class B........ 8,355
New Century Fund Class C........ 18,163
Growth and Income Class A....... 3,410
Growth and Income Class B....... 5,198
Growth and Income Class C....... 2,184
Growth and Income Class I....... 9,072
Balanced Assets Class A......... 5,982
Balanced Assets Class B......... 4,765
Balanced Assets Class C......... 2,291
Balanced Assets Class I......... 9,747
International Equity Class A.... 31,454
International Equity Class B.... 22,661
International Equity Class C.... 17,710
International Equity Class I.... 10,466
Value Fund Class A.............. 108,361
Value Fund Class B.............. 38,287
Value Fund Class C.............. 27,206
Value Fund Class I.............. 11,992
Value Fund Class Z.............. 26,388
Disciplined Growth Class A...... 78,689
Disciplined Growth Class B...... 20,778
Disciplined Growth Class C...... 58,491
International Small-Cap Class A. 161,192
International Small-Cap Class B. 14,089
International Small-Cap Class C. 18,013
For the year ended September 30, 2009, the amounts recouped by SunAmerica
are as follows:
International Equity Class A. $30,962
International Equity Class B. --
International Equity Class C. 2,252
International Equity Class I. --
Value Fund Class A........... --
Value Fund Class B........... --
Value Fund Class C........... --
Value Fund Class I........... --
Value Fund Class Z........... 881
77
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (continued)
At September 30, 2009, expenses previously waived and/or reimbursed by
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......... $ 492 $ --
International Equity Class B......... 99 32,791
International Equity Class C......... 146 23,926
International Equity Class I ........ 57 16,781
Value Fund Class A................... 128,706 88,432
Value Fund Class B................... 36,111 44,325
Value Fund Class C................... 24,170 29,461
Value Fund Class I................... 39 16,930
Value Fund Class Z................... 40,102 14,760
Disciplined Growth Class A........... 28,281 124,817
Disciplined Growth Class B........... 4,928 36,036
Disciplined Growth Class C........... 22,285 104,075
International Small-Cap Fund Class A. 114,227 183,518
International Small-Cap Fund Class B. 2,425 26,451
International Small-Cap Fund Class C. 13,502 35,464
The Trust, on behalf of each Fund, has entered into a Distribution Agreement
with 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 year ended September 30, 2009, 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 year ended September 30, 2009,
SACS earned fees (see Statement of Operations) based upon the aforementioned
rates.
- --------
+ Effective November 12, 2008, AIG SunAmerica Capital Services, Inc. changed
its name to SunAmerica Capital Services, Inc.
78
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (continued)
SACS receives sales charges on each Fund's Class A shares, portions of which
are reallocated to affiliated broker-dealers and non-affiliated
broker-dealers. SACS also receives the proceeds of contingent deferred sales
charges paid by investors in connection with certain redemptions of each
Fund's Class A, Class B and Class C shares. SACS has advised the Funds that
for the year ended September 30, 2009, 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
Affiliated Deferred Deferred Deferred
Sales Broker- Non-affiliated Sales Sales Sales
Fund Charges dealers Broker-dealers Charges Charges Charges
- ---- -------- ---------- -------------- ---------- ---------- ----------
Blue Chip Growth........ $ 23,591 $ 8,203 $11,989 $ -- $ 6,729 $ 81
Growth Opportunities ... 15,984 6,545 7,203 -- 7,471 274
New Century ............ 22,385 10,121 9,204 88 2,294 141
Growth and Income....... 30,102 12,389 13,456 -- 11,060 948
Balanced Assets ........ 100,801 54,330 32,801 -- 12,247 224
International Equity ... 38,212 17,932 16,122 295 17,507 1,217
Value................... 36,649 10,097 20,668 -- 18,674 489
Disciplined Growth...... 5,199 2,086 2,317 54 7,604 1,681
International Small-Cap. 3,017 1,503 1,046 -- 2,920 123
The Trust has entered into a Service Agreement with 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 year ended September 30, 2009,
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 September 30, 2009
-------------------------------- -------------------------------
Fund Class A Class B Class C Class I Class A Class B Class C Class I
- ---- -------- ------- ------- ------- ------- ------- ------- -------
Blue Chip Growth........ $ 65,282 $11,139 $ 4,652 $ 850 $ 6,144 $ 898 $ 417 $ 67
Growth Opportunities.... 40,583 9,599 6,473 126 4,328 783 635 12
New Century............. 65,200 5,626 3,852 -- 5,847 467 339 --
Growth and Income....... 73,992 12,580 22,328 379 6,494 935 1,898 30
Balanced Assets......... 155,876 14,520 16,178 969 13,435 1,137 1,349 88
International Equity.... 185,512 22,538 40,668 8,470 21,871 2,339 4,513 867
Value................... 113,456 28,887 21,072 36 9,409 2,067 1,703 3
Disciplined Growth...... 29,592 4,489 21,628 -- 2,411 294 1,639 --
International Small-Cap. 115,131 761 2,359 -- 12,168 50 131 --
At September 30, 2009, the following affiliates owned a percentage of the
outstanding shares of the following funds; Focused Multi-Asset Strategy
Portfolio, Focused Balanced Strategy Portfolio and Focused Equity Strategy
Portfolio owned 30.9%, 7.2%, and 7.4% of the SunAmerica International Equity
Fund, respectively; Focused Multi-Asset Strategy Portfolio and American Home
Assurance Company owned 76.2% and 19.4% of SunAmerica International
Small-Cap Fund, respectively; and SunAmerica, Inc. owned 21.3% of SunAmerica
Value Fund.
On November 7, 2008, the International Small Cap Fund purchased an
additional 280,000 shares of SPDR S&P International Small Cap ETF resulting
in the Fund's position in the security to exceed 5% of assets. The Fund is
subject to a limitation which prohibits the Fund from investing more than 5%
of assets in a single investment company. On November 14, 2008, the Fund
sold 130,970 shares of SPDR S&P International Small Cap ETF reducing the
Fund's position in the security to less than 5% of assets. The sale resulted
in a gain of $4,099 to the Fund.
- --------
* Effective March 17, 2009, AIG SunAmerica Fund Services, Inc. changed its name
to SunAmerica Fund Services, Inc.
79
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (continued)
On August 7, 2009, the Blue Chip Growth Fund sold 100 shares of Zimmer
Holdings, Inc. common stock that the Fund did not own. The Blue Chip Growth
Fund has an investment restriction that prohibits it from engaging in short
sales except to the extent the Fund contemporaneously owns, or has the right
to obtain without payment, securities identical to those sold short ("short
sales against the box"). The short position was closed on August 7, 2009,
resulting in a gain of $6.
On March 4, 2009, AIG, the ultimate parent of SunAmerica, SACS, SAFS, and
AIGGIC, issued and sold to the AIG Credit Facility Trust, a trust
established for the sole benefit of the United States Treasury (the
"Trust"), 100,000 shares of AIG's Series C Perpetual, Convertible,
Participating Preferred Stock (the "Stock") for an aggregate purchase price
of $500,000, with an understanding that additional and independently
sufficient consideration was also furnished to AIG by the Federal Reserve
Bank of New York (the "FRBNY") in the form of its lending commitment (the
"Credit Facility") under the Credit Agreement, dated as of September 22,
2008, between AIG and the FRBNY. The Stock has preferential liquidation
rights over AIG common stock, and, to the extent permitted by law, votes
with AIG's common stock on all matters submitted to AIG's shareholders. The
Trust has approximately 79.9% of the aggregate voting power of AIG's common
stock and is entitled to approximately 79.9% of all dividends paid on AIG's
common stock, in each case treating the Stock as if converted. The Stock
will remain outstanding even if the Credit Facility is repaid in full or
otherwise terminates.
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 year ended September 30, 2009, 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..... $ 556
Growth Opportunities. 6,864
New Century.......... 10,414
Growth and Income.... 3,710
Balanced Assets...... 4,572
International Equity. 626
Value................ 17,479
Disciplined Growth... 10,707
Note 6. Purchases and Sales of Investment Securities
The cost of purchases and proceeds from sales and maturities of long-term
investments during the year ended September 30, 2009, were as follows:
Blue Chip Growth New Growth and Balanced
Growth Opportunities Century Income Assets
Fund Fund Fund Fund Fund
------------- ------------- ------------ ------------- ------------
Purchases (excluding U.S. government securities)............. $ 22,041,703 $163,939,711 $190,296,721 $ 90,549,834 $104,008,363
Sales and maturities (excluding U.S. government securities).. 24,828,566 166,572,044 192,655,033 96,673,943 115,669,204
Purchases of U.S. government securities...................... -- -- -- -- 5,209,768
Sales and maturities of U.S. government securities........... -- -- -- -- 6,239,011
International Disciplined International
Equity Value Growth Small-Cap
Fund Fund Fund Fund
------------- ------------- ------------ -------------
Purchases (excluding U.S. government securities)............. $491,202,279 $190,031,264 $121,126,378 $105,713,011
Sales and maturities (excluding U.S. government securities).. 496,869,443 204,722,469 126,878,286 72,198,398
Purchases of U.S. government securities...................... -- -- -- --
Sales and maturities of U.S. government securities........... -- -- -- --
80
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (continued)
Note 7. Federal Income Taxes
The amounts of aggregate unrealized gain (loss) and the cost of investment
securities for federal income tax purposes, including short-term securities
and repurchase agreements, were as follows at September 30, 2009:
Blue Chip Growth New Growth and Balanced
Growth Opportunities Century Income Assets
Fund Fund Fund Fund Fund
------------- ------------- ----------- ------------- -----------
Cost (tax basis)........................... $ 40,665,210 $ 31,022,102 $35,073,415 $53,339,522 $89,488,246
============ ============ =========== =========== ===========
Appreciation............................... 4,960,786 2,432,310 2,801,803 4,404,637 6,547,558
Depreciation............................... (3,565,626) (335,174) (432,122) (5,804,206) (6,546,021)
------------ ------------ ----------- ----------- -----------
Net unrealized appreciation (depreciation). $ 1,395,160 $ 2,097,136 $ 2,369,681 $(1,399,569) $ 1,537
============ ============ =========== =========== ===========
International Disciplined International
Equity Value Growth Small-Cap
Fund Fund Fund Fund
------------- ------------- ----------- -------------
Cost (tax basis)........................... $144,900,247 $ 98,335,404 $21,297,226 $55,176,863
============ ============ =========== ===========
Appreciation............................... 21,119,359 7,668,796 3,811,552 16,331,233
Depreciation............................... (3,240,386) (11,170,743) (928,896) (2,438,108)
------------ ------------ ----------- -----------
Net unrealized appreciation (depreciation). $ 17,878,973 $ (3,501,947) $ 2,882,656 $13,893,125
============ ============ =========== ===========
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.
For the year ended September 30, 2009
-------------------------------------------------------------------------
Distributable Earnings Tax Distributions
----------------------------------------- ------------------------------
Long-term
Gains/Capital Unrealized Long-Term
Ordinary Loss Appreciation Ordinary Capital Return of
Fund Income Carryover (Depreciation)* Income Gains Capital
- ---- ---------- ------------- --------------- ---------- --------- ---------
Blue Chip Growth........ $ -- $ (54,552,938) $ 1,395,160 $ -- $-- $ --
Growth Opportunities.... -- (204,176,123) 2,097,136 -- -- --
New Century............. -- (122,109,301) 2,369,681 -- -- --
Growth and Income....... 430,910 (42,451,093) (1,399,569) 687,504 -- --
Balanced Assets......... 81,864 (75,120,532) 1,537 2,046,111 -- --
International Equity.... -- (98,567,104)@ 17,867,783 987,723 -- 150,500
Value................... 799,696 (19,719,989) (3,501,947) 2,291,939 -- --
Disciplined Growth...... 14,621 (39,065,072) 2,886,477 -- -- --
International Small-Cap. 2,219,408 (6,116,326) 13,888,948 11,219 -- --
- --------
* Unrealized appreciation (depreciation) includes amounts for derivatives and
other assets and liabilities denominated in foreign currency
@ Includes realized capital losses of $10,093,998 which as the result of the
merger may be subject to annual limitation imposed by the Internal Revenue
Code.
81
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (continued)
Tax Distributions
For the year ended September 30, 2008
-------------------------------------
Long-Term
Ordinary Capital Return of
Income Gains Capital
----------- ----------- ---------
Blue Chip Growth........ $ -- $ -- $ --
Growth Opportunities.... -- -- --
New Century............. -- -- --
Growth and Income....... 242,422 -- --
Balanced Assets......... 2,211,571 -- --
International Equity.... 1,052,826 10,274,358 --
Value................... 19,180,606 13,697,035 --
Disciplined Growth...... -- -- --
International Small-Cap. 86,582 247,600 39,211
For the year ended September 30, 2009, the reclassifications arising from
book/tax differences resulted in increases (decreases) that were primarily
due to tax treatment of net investment losses, expiration of capital loss
carry forward amounts, principal paydown adjustments, non-deductible
expenses, disposition of passive foreign investment companies securities,
capital loss carryforwards acquired as the result of mergers, and foreign
currency transactions to the components of net assets as follows:
Accumulated Accumulated
Undistributed Undistributed
Net Investment Net Realized Capital
Fund Income (Loss) Gain (Loss) Paid-in
- ---- -------------- ------------- ------------
Blue Chip Growth........ $248,675 $ -- $ (248,675)
Growth Opportunities.... 437,875 151,316 (589,191)
New Century............. 322,295 17,583,650 (17,905,945)
Growth and Income....... -- -- --
Balanced Assets......... 104,903 (104,903) --
International Equity.... 38,232 (71,788,408) 71,750,176
Value................... -- -- --
Disciplined Growth...... -- 219 (219)
International Small-Cap. 463,973 (462,556) (1,417)
For Federal income tax purposes, the Funds indicated below have capital loss
carryforwards, which expire in the year indicated, as of September 30, 2009,
which are available to offset future capital gains, if any:
Capital Loss Carryforward
-------------------------------------------------------------------------------------
Fund 2010 2011 2012 2013 2014 2015 2016 2017
- ---- ------------ ----------- ---------- -------- ---- ----------- ----------- -----------
Blue Chip Growth Fund... $ 10,374,287 $42,060,944 $ -- $ -- $-- $ -- $ -- $ 2,117,707
Growth Opportunities*... 121,180,893 65,312,802 -- -- -- -- -- 17,682,428
New Century*............ 38,311,136 36,351,156 -- -- -- -- -- 47,447,009
Growth and Income....... -- 25,935,512 5,722,390 -- -- -- -- 10,793,191
Balanced Assets......... 7,399,151 55,685,563 3,874,552 -- -- -- -- 8,161,266
International Equity*... -- -- -- -- -- 46,684,225 25,210,425 16,578,456
Value................... -- -- -- -- -- -- -- 19,719,989
Disciplined Growth...... 10,618,952 4,260,050 594,906 177,899 -- -- -- 23,413,265
International Small-Cap. -- -- -- -- -- -- -- 6,116,326
- --------
* 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.
82
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (continued)
The Funds indicated below utilized capital loss carryforwards, which offset
net taxable gains realized in the current year ended September 30, 2009.
Capital Loss Capital Loss
Carryforward Carryforward
Fund Utilized Expired
- ---- ------------ ------------
Blue Chip Growth........ $-- $ --
Growth Opportunities.... -- 151,316
New Century............. -- 17,583,650
Growth and Income....... -- --
Balanced Assets......... -- --
International Equity.... -- --
Value................... -- --
Disciplined Growth...... -- --
International Small-Cap. -- --
Under the current tax law, capital losses related to securities and foreign
currency realized after October 31 and prior to the Fund's fiscal year end
may be deferred as occurring on the first day of the following year. For the
fiscal year ended September 30, 2009, the Funds elected to defer capital
losses as follows:
Deferred Deferred Deferred
Post-October Post-October Post-October
Fund Capital Loss Currency Loss PFIC Loss
- ---- ------------ ------------- ------------
Blue Chip Growth........ $ 5,217,888 $-- $ --
Growth Opportunities.... -- -- --
New Century............. 978,138 -- --
Growth and Income....... 15,109,021 -- --
Balanced Assets......... 13,149,972 -- --
International Equity.... 21,244,557 -- 1,658
Value................... 29,606,201 -- --
Disciplined Growth...... 3,858,901 -- --
International Small-Cap. 6,257,930 -- --
83
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (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 For the For the
year ended year ended year ended year ended
September 30, 2009 September 30, 2008 September 30, 2009 September 30, 2008
--------------------- --------------------- --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ----------- -------- ----------- -------- -----------
Shares sold (1)(2)(3)(4). 303,615 $ 3,593,220 289,921 $ 5,070,645 69,777 $ 729,759 54,301 $ 830,023
Reinvested dividends..... -- -- -- -- -- -- -- --
Shares redeemed (1)(2)... (513,314) (6,058,764) (451,336) (7,730,963) (256,003) (2,669,354) (343,906) (5,217,068)
-------- ----------- -------- ----------- -------- ----------- -------- -----------
Net increase (decrease).. (209,699) $(2,465,544) (161,415) $(2,660,318) (186,226) $(1,939,595) (289,605) $(4,387,045)
======== =========== ======== =========== ======== =========== ======== ===========
Blue Chip Growth Fund
------------------------------------------------------------------------------------------
Class C Class I
-------------------------------------------- --------------------------------------------
For the For the For the For the
year ended year ended year ended year ended
September 30, 2009 September 30, 2008 September 30, 2009 September 30, 2008
--------------------- --------------------- --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ----------- -------- ----------- -------- -----------
Shares sold.............. 46,249 $ 474,016 68,319 $ 1,087,552 3,842 $ 46,737 14,650 $ 270,801
Reinvested dividends..... -- -- -- -- -- -- -- --
Shares redeemed (3)(4)... (83,913) (849,071) (82,476) (1,252,219) (12,811) (159,531) (15,507) (285,207)
-------- ----------- -------- ----------- -------- ----------- -------- -----------
Net increase (decrease).. (37,664) $ (375,055) (14,157) $ (164,667) (8,969) $ (112,794) (857) $ (14,406)
======== =========== ======== =========== ======== =========== ======== ===========
Growth Opportunities Fund
------------------------------------------------------------------------------------------
Class A Class B
-------------------------------------------- --------------------------------------------
For the For the For the For the
year ended year ended year ended year ended
September 30, 2009 September 30, 2008 September 30, 2009 September 30, 2008
--------------------- --------------------- --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ----------- -------- ----------- -------- -----------
Shares sold (5)(6)(7)(8). 506,522 $ 6,114,286 253,312 $ 4,189,533 43,430 $ 419,512 39,899 $ 553,585
Reinvested dividends..... -- -- -- -- -- -- -- --
Shares redeemed (5)(6)... (495,383) (5,542,810) (613,549) (9,921,188) (278,224) (2,680,401) (364,166) (5,248,108)
-------- ----------- -------- ----------- -------- ----------- -------- -----------
Net increase (decrease).. 11,139 $ 571,476 (360,237) $(5,731,655) (234,794) $(2,260,889) (324,267) $(4,694,523)
======== =========== ======== =========== ======== =========== ======== ===========
Growth Opportunities Fund
------------------------------------------------------------------------------------------
Class C Class I
-------------------------------------------- --------------------------------------------
For the For the For the For the
year ended year ended year ended year ended
September 30, 2009 September 30, 2008 September 30, 2009 September 30, 2008
--------------------- --------------------- --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ----------- -------- ----------- -------- -----------
Shares sold.............. 33,482 $ 344,614 59,452 $ 756,646 389 $ 4,499 1,876 $ 30,513
Reinvested dividends..... -- -- -- -- -- -- -- --
Shares redeemed (7)(8)... (110,708) (1,121,503) (188,701) (2,713,246) (2,027) (21,166) (3,002) (48,708)
-------- ----------- -------- ----------- -------- ----------- -------- -----------
Net increase (decrease).. (77,226) $ (776,889) (129,249) $(1,956,600) (1,638) $ (16,667) (1,126) $ (18,195)
======== =========== ======== =========== ======== =========== ======== ===========
- --------
(1)For the year ended September 30, 2009, includes automatic conversion of
149,222 shares of Class B shares in the amount of $1,540,102 to 130,006
shares of Class A shares in the amount of $1,540,102.
(2)For the year ended September 30, 2008, includes automatic conversion of
213,034 shares of Class B shares in the amount of $3,232,933 to 186,968
shares of Class A shares in the amount of $3,232,933.
(3)For the year ended September 30, 2009, includes automatic conversion of
5,850 shares of Class C shares in the amount of $57,101 to 5,045 shares of
Class A shares in the amount of $57,101.
(4)For the year ended September 30, 2008, includes automatic conversion of
5,104 shares of Class C shares in the amount of $78,117 to 4,448 shares of
Class A shares in the amount of $78,117.
(5)For the year ended September 30, 2009, includes automatic conversion of
189,700 shares of Class B shares in the amount of $1,828,283 to 165,034
shares of Class A shares in the amount of $1,828,283.
(6)For the year ended September 30, 2008, includes automatic conversion of
146,917 shares of Class B shares in the amount of $2,166,396 to 128,971
shares of Class A shares in the amount of $2,166,396.
(7)For the year ended September 30, 2009, includes automatic conversion of
2,338 shares of Class C shares in the amount of $21,581 to 2,029 shares of
Class A shares in the amount of $21,581.
(8)For the year ended September 30, 2008, includes automatic conversion of
9,445 shares of Class C shares in the amount of $129,260 to 8,257 shares of
Class A shares in the amount of $129,260.
84
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (continued)
New Century Fund
-------------------------------------------------------------------------------------------
Class A Class B
--------------------------------------------- --------------------------------------------
For the For the For the For the
year ended year ended year ended year ended
September 30, 2009 September 30, 2008 September 30, 2009 September 30, 2008
--------------------- ---------------------- --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ------------ -------- ----------- -------- -----------
Shares sold (1)(2)...... 198,938 $ 1,918,178 177,557 $ 3,209,325 30,901 $ 253,262 28,304 $ 451,311
Reinvested dividends.... -- -- -- -- -- -- -- --
Shares redeemed (1)(2).. (730,931) (6,878,106) (836,501) (15,340,030) (140,335) (1,155,541) (219,367) (3,484,631)
-------- ----------- -------- ------------ -------- ----------- -------- -----------
Net increase (decrease). (531,993) $(4,959,928) (658,944) $(12,130,705) (109,434) $ (902,279) (191,063) $(3,033,320)
======== =========== ======== ============ ======== =========== ======== ===========
New Century Fund
---------------------------------------------
Class C
---------------------------------------------
For the For the
year ended year ended
September 30, 2009 September 30, 2008
--------------------- ----------------------
Shares Amount Shares Amount
-------- ----------- -------- ------------
Shares sold............. 16,778 $ 143,273 33,282 $ 569,190
Reinvested dividends.... -- -- -- --
Shares redeemed......... (59,854) (504,887) (102,735) (1,656,044)
-------- ----------- -------- ------------
Net increase (decrease). (43,076) $ (361,614) (69,453) $ (1,086,854)
======== =========== ======== ============
- --------
(1)For the year ended September 30, 2009, includes automatic conversion of
83,661 shares of Class B shares in the amount of $678,363 to 71,750 shares
of Class A shares in the amount of $678,363.
(2)For the year ended September 30, 2008, includes automatic conversion of
77,721 shares of Class B shares in the amount of $1,225,115 to 67,258 shares
of Class A shares in the amount of $1,225,115.
85
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (continued)
Growth and Income Fund
------------------------------------------------------------------------------------------------
Class A Class B
-------------------------------------------------- --------------------------------------------
For the For the For the For the
year ended year ended year ended year ended
September 30, 2009 September 30, 2008 September 30, 2009 September 30, 2008
------------------------ ------------------------ --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ----------- -------- -----------
Shares sold (1)(2)(3)(4). 458,397 $ 4,170,736 630,796 $ 9,133,076 82,496 $ 716,974 89,678 $ 1,199,212
Reinvested dividends..... 58,742 519,275 14,377 220,109 3,047 25,411 -- --
Shares redeemed (1)(2)... (1,036,102) (9,400,481) (958,387) (13,836,029) (415,562) (3,530,580) (558,857) (7,455,853)
---------- ------------ ---------- ------------ -------- ----------- -------- -----------
Net increase (decrease).. (518,963) $ (4,710,470) (313,214) $ (4,482,844) (330,019) $(2,788,195) (469,179) $(6,256,641)
========== ============ ========== ============ ======== =========== ======== ===========
Growth and Income Fund
------------------------------------------------------------------------------------------------
Class C Class I
-------------------------------------------------- --------------------------------------------
For the For the For the For the
year ended year ended year ended year ended
September 30, 2009 September 30, 2008 September 30, 2009 September 30, 2008
------------------------ ------------------------ --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ----------- -------- -----------
Shares sold.............. 42,060 $ 357,905 71,480 $ 957,187 2,008 $ 17,872 5,275 $ 76,070
Reinvested dividends..... 8,781 72,884 -- -- 423 3,747 95 1,451
Shares redeemed (3)(4)... (281,119) (2,404,381) (386,530) (5,155,170) (7,666) (70,882) (4,673) (68,432)
---------- ------------ ---------- ------------ -------- ----------- -------- -----------
Net increase (decrease).. (230,278) $ (1,973,592) (315,050) $ (4,197,983) (5,235) $ (49,263) 697 $ 9,089
========== ============ ========== ============ ======== =========== ======== ===========
Balanced Assets Fund
------------------------------------------------------------------------------------------------
Class A Class B
-------------------------------------------------- --------------------------------------------
For the For the For the For the
year ended year ended year ended year ended
September 30, 2009 September 30, 2008 September 30, 2009 September 30, 2008
------------------------ ------------------------ --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ----------- -------- -----------
Shares sold (5)(6)(7)(8). 404,915 $ 4,472,848 492,914 $ 7,199,045 97,149 $ 1,077,239 95,382 $ 1,386,363
Reinvested dividends..... 153,676 1,673,367 128,624 1,834,569 10,523 113,101 8,240 117,639
Shares redeemed (5)(6)... (1,566,803) (16,936,609) (1,444,312) (21,111,948) (317,656) (3,464,982) (322,360) (4,705,433)
---------- ------------ ---------- ------------ -------- ----------- -------- -----------
Net increase (decrease).. (1,008,212) $(10,790,394) (822,774) $(12,078,334) (209,984) $(2,274,642) (218,738) $(3,201,431)
========== ============ ========== ============ ======== =========== ======== ===========
Balanced Assets Fund
------------------------------------------------------------------------------------------------
Class C Class I
-------------------------------------------------- --------------------------------------------
For the For the For the For the
year ended year ended year ended year ended
September 30, 2009 September 30, 2008 September 30, 2009 September 30, 2008
------------------------ ------------------------ --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ----------- -------- -----------
Shares sold.............. 51,108 $ 583,303 42,482 $ 629,344 1,165 $ 13,118 1,809 $ 26,801
Reinvested dividends..... 11,080 119,428 7,970 114,014 1,158 12,678 887 12,606
Shares redeemed (7)(8)... (192,087) (2,094,846) (193,356) (2,838,735) (4,891) (52,003) (1,818) (27,036)
---------- ------------ ---------- ------------ -------- ----------- -------- -----------
Net increase (decrease).. (129,899) $ (1,392,115) (142,904) $ (2,095,377) (2,568) $ (26,207) 878 $ 12,371
========== ============ ========== ============ ======== =========== ======== ===========
- --------
(1)For the year ended September 30, 2009, includes automatic conversion of
227,824 shares of Class B shares in the amount of $1,930,293 to 214,109
shares of Class A shares in the amount of $1,930,293.
(2)For the year ended September 30, 2008, includes automatic conversion of
256,031 shares of Class B shares in the amount of $3,426,719 to 239,301
shares of Class A shares in the amount of $3,426,719.
(3)For the year ended September 30, 2009, includes automatic conversion of
40,656 shares of Class C shares in the amount of $329,888 to 38,027 shares
of Class A shares in the amount of $329,888.
(4)For the year ended September 30, 2008, includes automatic conversion of
79,802 shares of Class C shares in the amount of $1,070,754 to 74,653 shares
of Class A shares in the amount of $1,070,754.
(5)For the year ended September 30, 2009, includes automatic conversion of
152,038 shares of Class B shares in the amount of $1,677,751 to 151,672
shares of Class A shares in the amount of $1,677,751.
(6)For the year ended September 30, 2008, includes automatic conversion of
110,956 shares of Class B shares in the amount of $1,639,736 to 110,614
shares of Class A shares in the amount of $1,639,736.
(7)For the year ended September 30, 2009, includes automatic conversion of
5,737 shares of Class C shares in the amount of $60,286 to 5,731 shares of
Class A shares in the amount of $60,286.
(8)For the year ended September 30, 2008, includes automatic conversion of
6,528 shares of Class C shares in the amount of $94,078 to 6,522 shares of
Class A shares in the amount of $94,078.
86
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (continued)
International Equity Fund
------------------------------------------------------------------------------------------------
Class A Class B
-------------------------------------------------- --------------------------------------------
For the For the For the For the
year ended year ended year ended year ended
September 30, 2009 September 30, 2008 September 30, 2009 September 30, 2008
------------------------ ------------------------ --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ----------- -------- -----------
Shares sold (1)(2)(3)(4)..... 597,710 $ 5,571,131 873,082 $ 15,209,058 105,795 $ 907,568 180,778 $ 2,906,684
Shares issued in merger +.... 9,552,075 84,069,949 -- -- 928,841 7,600,518 -- --
Reinvested dividends......... 88,444 769,459 337,952 6,106,795 10,395 84,199 101,318 1,689,981
Shares redeemed (1)(2)(5)(6). (3,405,180) (30,007,709) (1,289,845) (21,458,586) (647,154) (5,399,341) (582,664) (8,831,689)
---------- ------------ ---------- ------------ -------- ----------- -------- -----------
Net increase (decrease)...... 6,833,049 $ 60,402,830 (78,811) $ (142,733) 397,877 $ 3,192,944 (300,568) $(4,235,024)
========== ============ ========== ============ ======== =========== ======== ===========
International Equity Fund
------------------------------------------------------------------------------------------------
Class C Class I
-------------------------------------------------- --------------------------------------------
For the For the For the For the
year ended year ended year ended year ended
September 30, 2009 September 30, 2008 September 30, 2009 September 30, 2008
------------------------ ------------------------ --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ----------- -------- -----------
Shares sold.................. 268,142 $ 2,379,512 339,109 $ 5,508,728 105,467 $ 946,917 115,757 $ 2,027,150
Shares issued in merger +.... 1,966,816 16,071,009 -- -- -- -- -- --
Reinvested dividends......... 14,687 118,818 130,196 2,170,365 12,701 111,265 38,744 706,298
Shares redeemed (3)(4)(5)(6). (1,147,561) (9,508,735) (672,025) (9,700,348) (102,042) (956,722) (159,912) (2,644,211)
---------- ------------ ---------- ------------ -------- ----------- -------- -----------
Net increase (decrease)...... 1,102,084 $ 9,060,604 (202,720) $ (2,021,255) 16,126 $ 101,460 (5,411) $ 89,237
========== ============ ========== ============ ======== =========== ======== ===========
- --------
(1)For the year ended September 30, 2009, includes automatic conversion of
237,710 shares of Class B shares in the amount of $2,002,438 to 220,396
shares of Class A shares in the amount of $2,002,438.
(2)For the year ended September 30, 2008, includes automatic conversion of
201,566 shares of Class B shares in the amount of $3,107,494 to 185,992
shares of Class A shares in the amount of $3,107,494.
(3)For the year ended September 30, 2009, includes automatic conversion of
7,454 shares of Class C shares in the amount of $60,644 to 6,898 shares of
Class A shares in the amount of $60,644.
(4)For the year ended September 30, 2008, includes automatic conversion of
16,006 shares of Class C shares in the amount of $250,119 to 14,757 shares
of Class A shares in the amount of $250,119.
(5)For the year ended September 30, 2009, net of redemption fees of $4,152,
$571, $972 and $342 for Class A, Class B, Class C and Class I shares,
respectively.
(6)For the year ended September 30, 2008, net of redemption fees of $10,729,
$2,743, $3,748 and $ 1,179 for Class A, Class B, Class C, and Class I
shares, respectively.
+ See Note 2.
87
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (continued)
Value Fund
-------------------------------------------------------------------------------------------------
Class A Class B
-------------------------------------------------- ---------------------------------------------
For the For the For the For the
year ended year ended year ended year ended
September 30, 2009 September 30, 2008 September 30, 2009 September 30, 2008
------------------------ ------------------------ --------------------- ----------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ----------- -------- ------------
Shares sold (1)(2)(3)(4). 860,978 $ 8,101,106 647,141 $ 9,924,293 101,838 $ 912,273 146,756 $ 2,188,231
Reinvested dividends..... 125,403 1,175,028 1,063,818 16,563,642 24,162 213,106 351,095 5,133,009
Shares redeemed (1)(2)... (2,270,671) (20,866,202) (2,160,593) (32,186,863) (805,033) (7,047,624) (866,926) (12,306,794)
---------- ------------ ---------- ------------ -------- ----------- -------- ------------
Net increase (decrease).. (1,284,290) $(11,590,068) (449,634) $ (5,698,928) (679,033) $(5,922,245) (369,075) $ (4,985,554)
========== ============ ========== ============ ======== =========== ======== ============
Value Fund
-------------------------------------------------------------------------------------------------
Class C Class I
-------------------------------------------------- ---------------------------------------------
For the For the For the For the
year ended year ended year ended year ended
September 30,2009 September 30,2008 September 30,2009 September 30,2008
------------------------ ------------------------ --------------------- ----------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ----------- -------- ------------
Shares sold.............. 137,154 $ 1,236,276 126,100 $ 1,696,181 -- $ -- 86 $ 1,562
Reinvested dividends..... 14,733 129,943 203,721 2,978,405 51 478 348 5,401
Shares redeemed (3)(4)... (415,028) (3,645,150) (567,231) (8,063,054) (598) (5,164) (265) (3,842)
---------- ------------ ---------- ------------ -------- ----------- -------- ------------
Net increase (decrease).. (263,141) $ (2,278,931) (237,410) $ (3,388,468) (547) $ (4,686) 169 $ 3,121
========== ============ ========== ============ ======== =========== ======== ============
Value Fund
--------------------------------------------------
Class Z
--------------------------------------------------
For the For the
year ended year ended
September 30, 2009 September 30, 2008
------------------------ ------------------------
Shares Amount Shares Amount
---------- ------------ ---------- ------------
Shares sold.............. 466,705 $ 4,638,603 357,717 $ 5,554,158
Reinvested dividends..... 59,903 588,253 309,158 5,048,549
Shares redeemed.......... (589,588) (5,746,783) (461,438) (7,142,198)
---------- ------------ ---------- ------------
Net increase (decrease).. (62,980) $ (519,927) 205,437 $ 3,460,509
========== ============ ========== ============
- --------
(1)For the year ended September 30, 2009, includes automatic conversion of
394,962 shares of Class B shares in the amount of $3,407,930 to 370,955
shares of Class A shares in the amount of $3,407,930.
(2)For the year ended September 30, 2008, includes automatic conversion of
204,341 shares of Class B shares in the amount of $3,088,508 to 192,052
shares of Class A shares in the amount of $3,088,508.
(3)For the year ended September 30, 2009, includes automatic conversion of
8,112 shares of Class C shares in the amount of $67,882 to 7,615 shares of
Class A shares in the amount of $67,882.
(4)For the year ended September 30, 2008, includes automatic conversion of
5,802 shares of Class C shares in the amount of $80,487 to 5,438 shares of
Class A shares in the amount of $80,487.
88
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (continued)
Disciplined Growth Fund
---------------------------------------------------------------------------------------------
Class A Class B
----------------------------------------------- --------------------------------------------
For the For the For the For the
year ended year ended year ended year ended
September 30, 2009 September 30, 2008 September 30, 2009 September 30, 2008
---------------------- ----------------------- --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
--------- ----------- --------- ------------ -------- ----------- -------- -----------
Shares sold (1)(2)........... 258,027 $ 2,263,137 1,241,974 $ 20,161,048 9,866 $ 81,740 124,724 $ 1,851,127
Reinvested dividends......... -- -- -- -- -- -- -- --
Shares redeemed (1)(2)....... (779,688) (6,934,050) (918,848) (13,537,356) (208,229) (1,720,257) (102,038) (1,489,966)
--------- ----------- --------- ------------ -------- ----------- -------- -----------
Net increase (decrease)...... (521,661) $(4,670,913) 323,126 $ 6,623,692 (198,363) $(1,638,517) 22,686 $ 361,161
========= =========== ========= ============ ======== =========== ======== ===========
Disciplined Growth Fund
-----------------------------------------------
Class C
-----------------------------------------------
For the For the
year ended year ended
September 30, 2009 September 30, 2008
---------------------- -----------------------
Shares Amount Shares Amount
--------- ----------- --------- ------------
Shares sold.................. 37,352 $ 335,289 672,443 $ 10,787,226
Reinvested dividends......... -- -- -- --
Shares redeemed.............. (676,101) (5,698,131) (847,217) (12,061,646)
--------- ----------- --------- ------------
Net increase (decrease)...... (638,749) $(5,362,842) (174,774) $ (1,274,420)
========= =========== ========= ============
International Small-Cap Fund
---------------------------------------------------------------------------------------------
Class A Class B
----------------------------------------------- --------------------------------------------
For the For the For the For the
year ended year ended year ended year ended
September 30, 2009 September 30, 2008 September 30, 2009 September 30, 2008
---------------------- ----------------------- --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
--------- ----------- --------- ------------ -------- ----------- -------- -----------
Shares sold (3)(4)........... 6,912,481 $42,180,929 90,461 $ 1,142,820 16,736 $ 116,273 26,818 $ 324,786
Reinvested dividends......... 1,826 11,121 21,169 275,413 -- -- 949 12,228
Shares redeemed (3)(4)(5)(6). (719,479) (4,748,220) (296,407) (3,416,464) (55,489) (358,727) (35,785) (405,992)
--------- ----------- --------- ------------ -------- ----------- -------- -----------
Net increase (decrease)...... 6,194,828 $37,443,830 (184,777) $ (1,998,231) (38,753) $ (242,454) (8,018) $ (68,978)
========= =========== ========= ============ ======== =========== ======== ===========
International Small-Cap Fund
-----------------------------------------------
Class C
-----------------------------------------------
For the For the
year ended year ended
September 30, 2009 September 30, 2008
---------------------- -----------------------
Shares Amount Shares Amount
--------- ----------- --------- ------------
Shares sold.................. 72,501 $ 446,670 50,457 $ 605,472
Reinvested dividends......... -- -- 4,084 52,562
Shares redeemed (5)(6)....... (251,581) (1,518,605) (172,747) (1,865,760)
--------- ----------- --------- ------------
Net increase (decrease)...... (179,080) $(1,071,935) (118,206) $ (1,207,726)
========= =========== ========= ============
- --------
(1)For the year ended September 30, 2009, includes automatic conversion of
109,857 shares of Class B shares in the amount of $892,768 to 104,045 shares
of Class A shares in the amount of $892,768.
(2)For the year ended September 30, 2008, includes automatic conversion of
27,497 shares of Class B shares in the amount of $437,155 to 26,202 shares
of Class A shares in the amount of $437,155.
(3)For the year ended September 30, 2009, includes automatic conversion of
3,490 shares of Class B shares in the amount of $24,015 to 3,424 shares of
Class A shares in the amount of $24,015.
(4)For the year ended September 30, 2008, includes automatic conversion of
3,459 shares of Class B shares in the amount of $40,920 to 3,421 shares of
Class A shares in the amount of $40,920.
(5)For the year ended September 30, 2009, net of redemption fees of $2,877,
$17, and $57 for Class A , Class B, and Class C shares, respectively.
(6)For the year ended September 30, 2008, net of redemption fees of $1,750,
$71, and $290 for Class A , Class B, and Class C shares, respectively.
89
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (continued)
Note 9. Line of Credit
The SunAmerica family of mutual funds has established a $75 million
committed and $50 million uncommitted line of credit with State Street Bank
and Trust Company, the Funds' custodian. Interest is currently payable at
the higher of the Federal Funds Rate or London Interbank Offered Rate plus
125 basis points on the committed line and State Street Bank and Trust
Company's discretionary bid rate on the uncommitted line of credit. Prior to
September 18, 2009, interest was 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 15 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. Prior to September 18, 2009 the commitment fee was
10 basis points per annum on the daily unused portion of the committed line
of credit. Borrowings under the line of credit will commence when the
respective Fund's cash shortfall exceeds $100,000. For the year ended
September 30, 2009, the following Funds had borrowings:
Days Interest Average Weighted
Portfolio Outstanding Charges Debt Average
Growth Opportunities.. 19 $256 $467,982 0.97%
Balanced Assets....... 20 96 179,559 0.66
International Equity.. 10 169 621,570 1.18
Disciplined Growth.... 24 87 186,698 0.70
International
Small-Cap............ 8 69 230,158 1.47
At September 30, 2009, 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 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 year ended September 30, 2009, none of the
Funds participated in this program.
Note 11. Trustees Retirement Plan
The Trustees of the Trust have adopted the SunAmerica Disinterested
Trustees' and Directors' Retirement Plan (the "Retirement Plan") effective
January 1, 1993, as amended, 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 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%.
Effective December 3, 2008, the Retirement Plan was amended to, among other
things, (1) freeze the Retirement Plan as to future accruals for active
Participants as of December 31, 2008, (2) prohibit Disinterested Directors
from first becoming participants in the Retirement Plan after December 31,
2008 and (3) permit active Participants to elect to receive a distribution
of their entire Retirement Plan account balance in 2009. The freeze on
future accruals does not apply to Participants that have commenced receiving
benefits under the Retirement Plan on or before December 31, 2008.
90
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (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 September 30, 2009
- ---- -----------------------------------------------
Blue Chip Growth............... $ 4,301 $ 647 $24,037
Growth Opportunities........... 3,435 436 20,986
New Century.................... 7,401 752 40,701
Growth and Income.............. 5,017 871 33,915
Balanced Assets................ 11,906 1,552 63,866
International Equity........... 4,403 911 16,270
Value.......................... 4,342 1,566 31,998
Disciplined Growth............. 1,505 478 10,658
International Small-Cap Equity. -- 664 1,522
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 September 30, 2009, the International
Equity Fund had approximately 20% of its net assets invested in equity
securities of companies domiciled in the United Kingdom, and the
International Small-Cap Fund had approximately 21% of its net assets
invested in equity securities of companies domiciled in Japan.
Note 13. Other Matters
The Board of Trustees, on behalf of Blue Chip Growth Fund, Disciplined
Growth Fund, Growth and Income Fund, Balanced Assets Fund, Growth
Opportunities the Fund and New Century Fund (each an "Acquired Fund," and
collectively, the "Acquired Funds"), has determined that it is in the best
interests of each of the Acquired Funds and their respective shareholders to
reorganize each Acquired Fund into the series of the Corporation set forth
in the table below (each, an "Acquiring Fund," and collectively, the
"Acquiring Funds"), subject to shareholder approval. The transactions are
collectively referred to as the Reorganizations.
Acquired Funds Acquiring Funds
-------------- -------------------------
Blue Chip Growth Fund Focused Large-Cap Growth
Portfolio, a series of
the Corporation
Disciplined Growth Fund Focused Large-Cap Growth
Portfolio, a series of
the Corporation
Growth and Income Fund Focused Growth and Income
Portfolio, a series of
the Corporation
Balanced Assets Fund Focused Growth and Income
Portfolio, a series of
the Corporation
Growth Opportunities Fund Focused Small-Cap Growth
Portfolio, a series of
the Corporation
New Century Fund Focused Small-Cap Growth
Portfolio, a series of
the Corporation
Pursuant to each proposed Reorganization, all of an Acquired Fund's assets
and liabilities will be transferred to the respective Acquiring Fund, in
exchange for shares of the Acquiring Fund. If the Acquired Fund's
shareholders approve the proposal, they will receive shares of the
respective Acquiring Fund, the total value of which is equal to the total
value of their shares of the Acquired Fund on the date of the merger, after
which the Acquired Fund will cease operations.
91
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (continued)
See Note 14 for additional information relating to certain of the
Reorganizations.
Note 14. Subsequent Events
The Funds have performed an evaluation of subsequent events through November
25, 2009, which is the date the financial statements were issued. The
following subsequent events were noted:
International Equity Fund and International Small-Cap Fund
On September 5, 2009, AIG entered into an agreement to sell a portion of its
investment advisory and asset management business (the "Transaction") to
Bridge Partners, L.P. ("Bridge Partners"), a partnership formed by Pacific
Century Group, a Hong Kong-based private investment firm. The entities being
sold include AIGGIC, the current subadviser to the International Equity Fund
and International Small-Cap Fund. Prior to the closing of the Transaction,
AIGGIC will be merged with and into a Delaware limited liability company
(the surviving entity, PineBridge Investments LLC, being referred to herein
as "PineBridge"). As part of the Transaction, AIG will cause the indirect
transfer of PineBridge to Bridge Partners. PineBridge, as successor to
AIGGIC, will remain a registered investment adviser pursuant to the
Investment Advisers Act of 1940. The Transaction is expected to close in
December 2009, and is subject to the receipt of the requisite regulatory
approvals and the satisfaction of other conditions to closing. Upon the
closing of the Transaction, the existing subadvisory agreement between
SunAmerica and AIGGIC with respect to the International Equity Fund and
International Small-Cap Fund (the "Current Subadvisory Agreement") will
terminate.
At a meeting held on November 9, 2009, the Board of Trustees appointed
PineBridge, as the successor to AIGGIC, to serve as subadviser to the
International Equity Fund and International Small-Cap Fund, pursuant to a
new subadvisory agreement between SunAmerica and PineBridge (the "PineBridge
Subadvisory Agreement") with respect to each Fund, subject to approval by
each Fund's shareholders. The Board also approved an interim subadvisory
agreement between SunAmerica and PineBridge (the "Interim PineBridge
Subadvisory Agreement") with respect to each Fund, that will go into effect
upon the closing of the Transaction, and will remain in effect for 150 days
from its effective date or until the PineBridge Subadvisory Agreement is
approved by such Fund's shareholders, whichever is earlier. Pursuant to both
the PineBridge Subadvisory Agreement and the Interim PineBridge Subadvisory
Agreement, SunAmerica will pay PineBridge a subadvisory fee equal to the
subadvisory fee that is currently paid to AIGGIC under the Current
Subadvisory Agreement.
At this same meeting, the Board also recommended that a special meeting of
shareholders be convened so that shareholders of the International Equity
Fund can vote on a proposal to approve the operation of the Fund in a manner
consistent with the Fund's exemptive order from the Securities and Exchange
Commission that would permit SunAmerica to, among other things, enter into
or amend subadvisory agreements with unaffiliated subadvisers upon approval
by the Board but without obtaining shareholder approval, subject to certain
conditions (the "Manager of Managers Proposal").
On or about February 16, 2010, each Fund expects to convene a special
meeting of the Fund's shareholders with respect to the proposal to approve
the PineBridge Subadvisory Agreement and, with respect to the International
Equity Fund, the Manager of Managers Proposal. Shareholders of record of
each Fund on the record date, entitled to notice of and to vote at the
special meeting, will receive proxy materials describing the proposal
relating to the PineBridge Subadvisory Agreement and the Manager of Managers
Proposal in greater detail.
Value Fund
Pursuant to a plan of reorganization, all of the assets and liabilities of
Focused Large-Cap Value Portfolio, a series of the Corporation, were
transferred in a tax-free exchange to Value Fund. The reorganization was
consummated on October 26, 2009. In connection with this reorganization, the
advisory fee that SunAmerica receives for its services with respect to the
Value Fund was reduced from an annual rate of 1.00% of average daily net
assets to 0.75% of average daily net assets, effective October 26, 2009.
92
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2009 -- (continued)
Fund Reorganizations
At a special meeting of shareholders held on October 16, 2009, shareholders
of the Disciplined Growth Fund approved an Agreement and Plan of
Reorganization pursuant to which the Disciplined Growth Fund will transfer
all of its assets to the Focused Large-Cap Growth Portfolio, a series of the
Corporation, in exchange solely for the assumption of the Disciplined Growth
Fund's liabilities by the Focused Large-Cap Growth Portfolio and Class A,
Class B and Class C shares of the Focused Large-Cap Growth Portfolio, which
shares will be distributed by the Disciplined Growth Fund to the holders of
its shares in complete liquidation thereof. The Reorganization is expected
to be consummated in December 2009.
At a special meeting of shareholders held on November 10, 2009, shareholders
of the Blue Chip Growth Fund approved an Agreement and Plan of
Reorganization pursuant to which the Blue Chip Growth Fund will transfer all
of its assets to the Focused Large-Cap Growth Portfolio, a series of the
Corporation, in exchange solely for the assumption of the Blue Chip Growth
Fund's liabilities by the Focused Large-Cap Growth Portfolio and Class A,
Class B, Class C and Class Z shares of the Focused Large-Cap Growth
Portfolio, which shares will be distributed by the Blue Chip Growth Fund to
the holders of its shares in complete liquidation thereof. The
Reorganization is expected to be consummated in December 2009.
At a special meeting of shareholders held on November 10, 2009, shareholders
of the New Century Fund approved an Agreement and Plan of Reorganization
pursuant to which the New Century Fund will transfer all of its assets to
the Focused Small-Cap Growth Portfolio, a series of the Corporation, in
exchange solely for the assumption of the New Century Fund's liabilities by
the Focused Small-Cap Growth Portfolio and Class A, Class B and Class C
shares of the Focused Small-Cap Growth Portfolio, which shares will be
distributed by the New Century Fund to the holders of its shares in complete
liquidation thereof. The Reorganization is expected to be consummated in
December 2009.
At a special meeting of shareholders held on November 25, 2009, shareholders
of the Growth Opportunities Fund approved an Agreement and Plan of
Reorganization pursuant to which the Growth Opportunities Fund will transfer
all of its assets to the Focused Small-Cap Growth Portfolio, a series of the
Corporation, in exchange solely for the assumption of the Growth
Opportunities Fund's liabilities by the Focused Small-Cap Growth Portfolio
and Class A, Class B, Class C and Class I shares of the Focused Small-Cap
Growth Portfolio, which shares will be distributed by the Growth
Opportunities Fund to the holders of its shares in complete liquidation
thereof. The Reorganization is expected to be consummated in December 2009.
93
SunAmerica Equity Funds
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders of SunAmerica Equity Funds:
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of each of the nine
funds constituting SunAmerica Equity Funds, (hereafter referred to as the
"Trust") at September 30, 2009, the results of each of their operations for the
year then ended, and the changes in each of their net assets and the financial
highlights for each of the two years in the period then ended, in conformity
with accounting principles generally accepted in the United States of America.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at September 30, 2009 by
correspondence with the custodian, provide a reasonable basis for our opinion.
The financial highlights for each of the periods ended on or before
September 30, 2007 were audited by another independent registered public
accounting firm whose report, dated November 21, 2007, expressed an unqualified
opinion on those financial highlights.
As described in Notes 13 and 14, the Board of Trustees and each of the
shareholders of SunAmerica Blue Chip Growth Fund, SunAmerica Disciplined Growth
Fund, SunAmerica Growth and Income Fund, SunAmerica Balanced Assets Fund,
SunAmerica Growth Opportunities Fund and SunAmerica New Century Fund approved a
plan of reorganization into certain Funds of SunAmerica Focused Series, Inc.
The reorganizations are expected to take place in late 2009, at which time the
Funds will cease to operate.
PricewaterhouseCoopers LLP
Houston, Texas
November 25, 2009
94
SunAmerica Equity Funds
APPROVAL OF ADVISORY AGREEMENTS -- September 30, 2009 -- (unaudited)
Approval of the Investment Advisory and Management Agreement and Subadvisory
Agreement
The Board of Trustees (the "Board," the members of which are referred to as
"Trustees") of the "Trust", including the Trustees who are not "interested
persons," as defined in Section 2(a)(19) of the Investment Company Act of 1940,
as amended (the "1940 Act"), of the Trust or its separate series (each a "Fund"
and collectively, the "Funds"), SunAmerica or AIGGIC (the "Disinterested
Trustees"), approved the continuation of the Investment Advisory and Management
Agreement between the Trust, on behalf of the Funds, and SunAmerica (the
"Advisory Agreement") for a one-year period ending August 31, 2010 at an
in-person meeting held on August 25, 2009. The Trust currently consists of nine
separate Funds, including the Balanced Assets Fund, Blue Chip Growth Fund,
Disciplined Growth Fund, Growth and Income Fund, Growth Opportunities Fund,
International Equity Fund, International Small-Cap Fund, New Century Fund and
Value Fund. At this same meeting, the Board also approved the continuation of
the Subadvisory Agreement between SunAmerica and AIGGIC (the "Subadvisory
Agreement") with respect to the International Equity Fund and the International
Small-Cap Fund for a one-year period ending August 31, 2010.
In accordance with Section 15(c) of the 1940 Act, the Board requested and
SunAmerica and AIGGIC, where applicable, provided materials relating to the
Board's consideration of whether to approve the continuation of the Advisory
Agreement and Subadvisory Agreement. These materials included (a) a summary of
the services provided by SunAmerica and its affiliates to the Funds;
(b) information independently compiled and prepared by Lipper, Inc. ("Lipper")
on Fund fees and expenses, and the investment performance of the Fund as
compared with a peer group of funds; (c) information on the profitability of
SunAmerica, AIGGIC and their affiliates, and a discussion of any indirect
benefits; (d) a report on economies of scale; (e) a discussion on general
compliance policies and procedures; (f) a summary of brokerage and soft dollar
practices; (g) a discussion of the key personnel of SunAmerica, AIGGIC and
their affiliates; and (h) an internal comparison of management fees received
for other mutual funds and accounts with similar investment objectives and
strategies for which SunAmerica and AIGGIC serve as adviser or subadviser, as
applicable.
In determining whether to approve the continuation of the Advisory Agreement
and Subadvisory Agreement, the Board, including Disinterested Trustees,
considered the following information:
Nature, Extent and Quality of Services Provided by SunAmerica and AIGGIC. The
Board, including the Disinterested Trustees, considered the nature, quality and
extent of services to be provided by SunAmerica and AIGGIC. The Board noted
that the services include acting as investment manager and adviser to the
Funds, managing the daily business affairs of the Funds, and obtaining and
evaluating economic, statistical and financial information to formulate and
implement investment policies. Additionally, the Board observed that SunAmerica
would provide office space, accounting, legal, and compliance, clerical and
administrative services and has authorized any of its officers and employees,
if elected, to serve as officers or trustees of the Funds without compensation.
Finally, the Board noted that SunAmerica is responsible for monitoring and
reviewing the activities of affiliated and unaffiliated third-party service
providers, including AIGGIC. In addition to the quality of the advisory
services, the Board considered the quality of the administrative and
non-investment advisory services provided to the Funds pursuant to the Advisory
Agreement and noted that such services include (i) preparing disclosure
documents, such as the prospectus, the statement of additional information and
shareholder reports; (ii) assisting with daily accounting and pricing;
(iii) organizing Board meetings and preparing the materials for such Board
meetings; (iv) providing legal and compliance support; and (v) performing other
administrative functions necessary for the operation of the Funds, such as tax
reporting and fulfilling regulatory filing requirements.
In connection with the services provided by SunAmerica, the Board analyzed the
structure and duties of SunAmerica's fund administration, accounting, legal and
compliance departments and concluded that they were adequate to meet the needs
of the Funds. The Board also reviewed the personnel responsible for providing
advisory services to the Funds and other key personnel of SunAmerica and
concluded, based on their experience and interaction with SunAmerica, that:
(i) SunAmerica is able to retain quality portfolio managers, analysts and other
personnel; (ii) SunAmerica exhibited a high level of diligence and attention to
detail in carrying out its advisory and other responsibilities under the
Advisory Agreement; (iii) SunAmerica had been responsive to requests of the
Board; and (iv) SunAmerica had kept the Board apprised of developments relating
to the Funds and the industry in general. The Board concluded that the nature
and extent of services provided under the Advisory Agreement were reasonable
and appropriate in relation to the management fee and that the quality of
services continues to be high.
The Board also considered SunAmerica's reputation and long-standing
relationship with the Funds and considered the benefit to shareholders of
investing in funds that are part of a family of funds offering a variety of
types of mutual funds and shareholder services. The Board considered
SunAmerica's experience in providing management and investment advisory and
administrative
95
SunAmerica Equity Funds
APPROVAL OF ADVISORY AGREEMENTS -- September 30, 2009 -- (unaudited)
(continued)
services to advisory clients and noted that as of June 30, 2009, SunAmerica
managed, advised an/or administered approximately $35.3 billion in assets. The
Board also considered SunAmerica's code of ethics, and that it has developed
internal procedures, adopted by the Board, for monitoring compliance with the
investment objectives, policies and restrictions of the Funds as set forth in
the Fund's prospectus. Additionally, the Board considered SunAmerica's
compliance and regulatory history.
With respect to the International Equity Fund and the International Small-Cap
Fund, for which SunAmerica has delegated daily investment management
responsibilities to AIGGIC, the Board considered the nature, quality and extent
of subadvisory services provided by AIGGIC. The Board observed that AIGGIC is
responsible for providing investment management services, including investment
research, advice and supervision, and determining which securities will be
purchased or sold by each of the International Equity Fund and International
Small-Cap Fund, subject to the oversight and review of SunAmerica. The Board
reviewed AIGGIC's history, structure, size, visibility and resources, which are
needed to attract and retain highly qualified investment professionals. The
Board reviewed the personnel that are responsible for providing subadvisory
services to the International Equity Fund and International Small-Cap Fund and
concluded, based on their experience with AIGGIC, that: (i) AIGGIC is able to
retain high quality portfolio managers and other investment personnel;
(ii) AIGGIC exhibited a high level of diligence and attention to detail in
carrying out its responsibilities under the Subadvisory Agreement; and
(iii) AIGGIC had been responsive to requests of the Board and of SunAmerica.
The Board considered that AIGGIC has developed internal policies and procedures
for monitoring compliance with the investment objectives, policies and
restrictions of the International Equity Fund and the International Small-Cap
Fund as set forth in the Prospectus. The Board also considered AIGGIC's code of
ethics, compliance and regulatory history. The Board noted that AIGGIC has not
experienced any material regulatory or compliance problems nor have they been
involved in any material litigation or administrative proceedings that would
potentially impact them from effectively serving as the subadviser to the
International Equity Fund and the International Small-Cap Fund. The Board
concluded that the nature and extent of services to be provided by AIGGIC under
the Subadvisory Agreement were reasonable and appropriate in relation to the
subadvisory fees and that the quality of services continues to be high.
Investment Performance. The Board, including the Disinterested Trustees, also
considered the investment performance of SunAmerica and AIGGIC with respect to
the Funds. In connection with its review, the Board received and reviewed
information regarding the investment performance of the Funds as compared to
each Fund's peer group ("Peer Group") and/or peer universe ("Peer Universe") as
independently determined by Lipper and to an appropriate index or combination
of indices, including the Funds' benchmarks. The Board was provided with a
description of the methodology used by Lipper to select the funds in the Peer
Groups and Peer Universes. The Board also noted that it regularly reviews the
performance of the Funds throughout the year. The Board noted that, while it
monitors performance of the Funds closely, it generally attaches more
importance to performance over relatively long periods of time, typically three
to five years.
In preparation for the August 25, 2009 meeting, the Board was provided with
reports independently prepared by Lipper. Based on the Lipper reports, the
Board reviewed each Fund's annualized total returns for the prior one-, two-,
three-, four-, five- and ten-year periods ended May 31, 2009. The Board noted
that it was also provided with a supplemental Lipper performance report for the
periods ended June 30, 2009. In addition, the Board received a report prepared
by SunAmerica that detailed the Funds' performance for the three-month period
ended June 30, 2009.
For the Disciplined Growth Fund, the Board considered that the Fund ranked in
the fifth quintile of its Peer Group for the one-, two-, three- and four-year
periods ended May 31, 2009 and ranked in the fourth quintile for the five-year
period. The Board also considered that the Fund ranked in the fourth quintile
of its larger Peer Universe, which consists of all funds within the applicable
Lipper classification, for the ten-year period ended May 31, 2009. The Board
noted that the Fund's performance does not meet the Board's expectations and
further noted that the Fund was a target fund in one of several reorganizations
that were recently approved by the Board (each a "Reorganization" and
collectively, the "Reorganizations") and, subject to shareholder approval, the
Fund would be merged with and into the Focused Large-Cap Growth Portfolio, a
series of SunAmerica Focused Series, Inc. ("Focused Series")./1/
- --------
/1/ The Reorganization was approved by shareholders on October 16, 2009. Please
refer to Notes 13 and 14 for additional information.
96
SunAmerica Equity Funds
APPROVAL OF ADVISORY AGREEMENTS -- September 30, 2009 -- (unaudited)
(continued)
For the Blue Chip Growth Fund, the Board considered that the Fund ranked in the
second quintile of its Peer Group for the one-year period ended May 31, 2009,
ranked in the third quintile for the two- and three-year periods and ranked in
the fourth quintile for the four- and five-year periods. The Board also
considered that the Fund ranked in the fourth quintile of its larger Peer
Universe for the ten-year period ended May 31, 2009. The Board further noted
that the current portfolio manager of the Fund had assumed his role in 2006 and
that the Fund was a target fund in one of the Reorganizations and, subject to
shareholder approval, would be merged with and into the Focused Large-Cap
Growth Portfolio, with the current portfolio manager of the Fund assuming
portfolio management responsibilities for the Focused Large-Cap Growth
Portfolio./2/
For the Growth Opportunities Fund, the Board considered that the Fund ranked in
the first quintile of its Peer Group for the one-year period ended May 31,
2009, ranked in the fourth quintile for the two- and four-year periods, ranked
in the third quintile for the three-year period and ranked in the fifth
quintile for the five-year period. The Board also considered that the Fund
ranked in the fifth quintile of its larger Peer Universe for the ten-year
period ended May 31, 2009. The Board further noted that the current portfolio
manager of the Fund had assumed his role in 2006 and that the Fund was a target
fund in one of the Reorganizations and, subject to shareholder approval, would
be merged with and into the Focused Small-Cap Growth Portfolio, a series of
Focused Series, with the current portfolio manager of the Fund assuming
portfolio management responsibilities for the Focused Small-Cap Growth
Portfolio./3/
For the New Century Fund, the Board considered that the Fund ranked in the
fifth quintile of its Peer Group for all periods ended May 31, 2009. The Board
noted that the Fund's performance does not meet the Board's expectations and
further noted that the Fund was a target fund in one of the Reorganizations
and, subject to shareholder approval, would be merged with and into the Focused
Small-Cap Growth Portfolio./4/
For the Growth and Income Fund, the Board considered that the Fund ranked in
the fourth quintile of its Peer Group for the two-, three- and five-year
periods ended May 31, 2009 and ranked in the fifth quintile for the one-, four-
and ten-year periods. The Board noted that the Fund's performance does not meet
the Board's expectations, but that the results for the three-month period ended
June 30, 2009 were encouraging. The Board further noted that the Fund was a
target fund in one of the Reorganizations and, subject to shareholder approval,
would be merged with and into the Focused Growth and Income Portfolio, a series
of Focused Series.
For the Balanced Assets Fund, the Board considered that the Fund ranked in the
third quintile of its Peer Group for the one-year period ended May 31, 2009,
ranked in the fourth quintile for the two- and three-year periods and ranked in
the fifth quintile for the four-, five- and ten-year periods. The Board noted
that the Fund's performance has improved over the past year and had also
improved relative to the Peer Group for the one-, two- and three-year periods
ended June 30, 2009, however, the Board stated that it would continue to
monitor the Fund's performance. The Board further noted that the Fund was a
target fund in one of the Reorganizations and, subject to shareholder approval,
would be merged with and into the Focused Growth and Income Portfolio.
For the Value Fund, the Board considered that the Fund ranked in the third
quintile of its Peer Group for the one-, two-, four- and five-year periods
ended May 31, 2009, ranked in the second quintile for the three-year period and
ranked in the first quintile for the ten-year period. The Board noted that it
was generally pleased with the Fund's overall performance and would continue to
monitor performance.
The Board then considered the performance of the Funds subadvised by AIGGIC,
the International Equity Fund and International Small-Cap Fund. The Board
considered that the International Equity Fund ranked in the fourth quintile of
its Peer Group for the five-year period ended May 31, 2009 and ranked in the
fifth quintile for the one-, two-, three- and four-year periods. The Board also
considered that the Fund ranked in the fourth quintile of its larger Peer
Universe for the ten-year period ended May 31, 2009. The Board further
considered that the Fund's performance over the three-month period ended
June 30, 2009 had improved. Nonetheless,
- --------
/2/ The Reorganization was approved by shareholders on November 10, 2009.
Please refer to Notes 13 and 14 for additional information.
/3/ The Reorganization was approved by shareholders on November 25, 2009.
Please refer to Notes 13 and 14 to the Financial Statements for additional
information.
/4/ The Reorganization was approved by shareholders on November 10, 2009.
Please refer to Notes 13 and 14 to the Financial Statements for additional
information.
97
SunAmerica Equity Funds
APPROVAL OF ADVISORY AGREEMENTS -- September 30, 2009 -- (unaudited)
(continued)
the Board noted that the Fund's performance does not meet the Board's
expectations and that it would continue to monitor the performance of this
Fund. Additionally, the Board considered the performance of the International
Small-Cap Fund, noting that this Fund has a relatively small Peer Group;
however, the Board considered that the Fund ranked in the fourth quintile of
its Peer Group for the two-year period ended May 31, 2009 and ranked in the
fifth quintile for the one-year period. The Board also considered that the Fund
ranked in the fifth quintile of its larger Peer Universe for the three-year
period ended May 31, 2009. The Board noted that the Fund's performance does not
meet the Board's expectations and that it would continue to monitor the
performance of this Fund.
Consideration of the Management Fees and Subadvisory Fees and the Cost of the
Services and Profits to be Realized by SunAmerica, AIGGIC and their Affiliates
from the Relationship with the Funds. The Board, including the Disinterested
Trustees, received and reviewed information regarding the fees to be paid by
the Funds to SunAmerica pursuant to the Advisory Agreement and the fees paid by
SunAmerica to AIGGIC pursuant to the Subadvisory Agreement. The Board examined
this information in order to determine the reasonableness of the fees in light
of the nature and quality of services to be provided and any potential
additional benefits to be received by SunAmerica, AIGGIC or their affiliates in
connection with providing such services to the Funds. The Board noted that
SunAmerica had previously agreed to, and the Board had approved, a reduction in
the management fee paid by Value Fund in connection with one of the
Reorganizations, but that at this meeting, the Board was considering the
continuation of the Advisory Agreement at the current fee rates since the
management fee reduction would not take effect until the closing of the
applicable Reorganization./5/
To assist in analyzing the reasonableness of the management fee for each of the
Funds, the Board received reports independently prepared by Lipper. The reports
showed comparative fee information for each Fund's Peer Group and/or Peer
Universe. In considering the reasonableness of the management fee to be paid by
each Fund to SunAmerica, the Board reviewed a number of expense comparisons,
including: (i) contractual and actual management fees; and (ii) actual total
operating expenses. In considering each Fund's total operating expenses, the
Board analyzed the level of fee waivers and expense reimbursements and the net
expense caps contractually agreed upon by SunAmerica with respect to each class
of the International Equity Fund, Value Fund, Disciplined Growth Fund and
International Small-Cap Fund, as well as the Class I shares of the Blue Chip
Growth Fund, Growth Opportunities Fund, Growth and Income Fund and Balanced
Assets Fund. The Board also considered the voluntary fee waivers and/or expense
reimbursements agreed to by SunAmerica with respect to certain of the Funds.
The Board compared each Fund's net expense ratio (taking into account the
contractual fee caps) to those of other funds within its Peer Group and/or Peer
Universe as a guide to help assess the reasonableness of the Fund's management
fee for certain Funds. The Board acknowledged that it was difficult to make
precise comparisons with other funds in the Peer Groups and Peer Universes
since the exact nature of services provided under the various fund agreements
is often not apparent. The Board noted, however, that the comparative fee
information provided by Lipper as a whole was useful in assessing whether
SunAmerica was providing services at a cost that was competitive with other,
similar funds.
The Board also considered the management fees received by SunAmerica with
respect to other mutual funds and accounts with similar investment strategies
to the Funds, to the extent applicable, noting in particular the differences in
services that SunAmerica provides as adviser compared to the services it
provides as subadviser. The Board then noted the management fees paid by the
Funds were reasonable as compared to the fees SunAmerica was receiving from
other mutual funds and accounts for which it serves as adviser or subadviser.
The Board also received and reviewed information regarding the fees paid by
SunAmerica to AIGGIC pursuant to the Subadvisory Agreement. To assist in
analyzing the reasonableness of the subadvisory fees, the Board received a
report independently prepared by Lipper. The report showed comparative fee
information of each Fund's Peer Group that the Trustees used as a guide to help
assess the reasonableness of the subadvisory fees. The Trustees noted that Peer
Group information as a whole was useful in assessing whether AIGGIC was
providing services at a cost that was competitive with other similar funds. The
Trustees also considered that the subadvisory fees are paid by SunAmerica out
of its management fee and not by the Funds, and that subadvisory fees may vary
widely within a Peer Group for various reasons, including market pricing
demands, existing relationships, experience and success, and individual client
needs. The Board further considered the amount of subadvisory fees paid out by
SunAmerica and the amount of the management fees which it retained. The Board
also considered advisory fees received by AIGGIC with respect to other mutual
funds and accounts with similar investment strategies to the International
Equity Fund and International Small-Cap Fund. The Board noted
- --------
/5/ Please refer to Note 14 for additional information.
98
SunAmerica Equity Funds
APPROVAL OF ADVISORY AGREEMENTS -- September 30, 2009 -- (unaudited)
(continued)
that the subadvisory fees paid by SunAmerica to AIGGIC were reasonable as
compared to fees AIGGIC receives for other mutual funds and accounts for which
it serves as adviser or subadviser.
The Board also considered SunAmerica's profitability and the benefits
SunAmerica and its affiliates received from its relationship with the Funds.
The Board received and reviewed financial statements relating to SunAmerica's
financial condition and profitability with respect to the services it provided
the Funds and considered how profit margins could affect SunAmerica's ability
to attract and retain high quality investment professionals and other key
personnel. The Board was also provided with a profitability analysis that
detailed the revenues earned and the expenses incurred by SunAmerica and its
affiliates that provide services to the Funds on a Fund by Fund basis. In
particular, the Board considered the contractual and voluntary fee waivers
and/or expense reimbursement agreed to by SunAmerica.
The Board considered the profitability of SunAmerica under the Advisory
Agreement, and considered the profitability of SunAmerica's affiliates under
the Rule 12b-1 Plans, Service Agreements, and Administrative and Shareholder
Agreements. Additionally, the Board considered whether SunAmerica, AIGGIC and
its affiliates received any indirect benefits from the relationship with the
Funds. Specifically, the Board observed that AIG Federal Savings Bank, an
affiliate of SunAmerica and AIGGIC, serves as custodian with respect to certain
shareholder retirement accounts that are administered by SunAmerica and
receives a fee payable by the qualifying shareholders. The Board further
considered whether there were any collateral or "fall-out" benefits that
SunAmerica and its affiliates may derive as a result of their relationship with
the Funds. The Board noted that SunAmerica believes that any such benefits are
de minimis and do not impact the reasonableness of the management fees.
The Board also reviewed AIGGIC's financial statements and considered whether
AIGGIC had the financial resources necessary to attract and retain high quality
investment management personnel and to continue to provide the high quality of
services that it had provided to the International Equity Fund and
International Small-Cap Fund to date.
The Board concluded that SunAmerica and AIGGIC had the financial resources
necessary to perform their obligations under the Advisory Agreement and
Subadvisory Agreement and to continue to provide the Funds with the high
quality services that they had provided in the past. The Board also concluded
that the management fee and subadvisory fees were reasonable in light of the
factors discussed above.
Economies of Scale. The Board, including the Disinterested Trustees, considered
whether the shareholders would benefit from economies of scale and whether
there was potential for future realization of economies with respect to the
Funds. The Board considered that as a result of being part of the SunAmerica
fund complex, the Funds share common resources and may share certain expenses,
and if the size of the complex increases, each Fund could incur lower expenses
than they otherwise would achieve as stand-alone entities. The Board also
considered the anticipated efficiencies in the processes of SunAmerica as it
adds labor and capital to expand the scale of operations. The Board also took
into account that the Blue Chip Growth Fund, Growth Opportunities Fund, New
Century Fund, Balanced Assets Fund, Growth and Income Fund, and Value Fund had
management fee arrangements that included breakpoints that will adjust the fee
downward as the size of the Fund increases, thereby allowing the shareholders
to potentially participate in any economies of scale. The Board further noted
that, with the exception of the New Century Fund, SunAmerica has agreed to
contractually cap the total annual operating expenses of one or more classes of
the Funds, at certain levels. The Board observed that those expense caps
benefited shareholders by keeping total fees down even in the absence of
breakpoints or economies of scale. The Board concluded that the Funds'
management fee structure was reasonable and that it would continue to review
fees in connection with the renewal of the Advisory Agreement, including
whether the implementation of additional breakpoints would be appropriate in
the future due to an increase in asset size or otherwise.
The Board did not review specific information regarding whether there have been
economies of scale with respect to AIGGIC's management of the Funds because it
regards that information as less relevant at the subadviser level. Rather, the
Board considered information regarding economies of scale in the context of the
renewal of the Advisory Agreement.
Other Factors. In consideration of the Advisory Agreement and Subadvisory
Agreement, the Board also received information regarding SunAmerica's and
AIGGIC's brokerage and soft dollar practices. The Board considered that
SunAmerica and AIGGIC are responsible for decisions to buy and sell securities
for the portfolios they manage, selection of broker-dealers and negotiation of
commission rates. The Board noted that they receive reports from SunAmerica and
from an independent third party that included
99
SunAmerica Equity Funds
APPROVAL OF ADVISORY AGREEMENTS -- September 30, 2009 -- (unaudited)
(continued)
information on brokerage commissions and execution throughout the year and that
commissions paid had generally been reasonable and the quality of brokerage
execution had generally been high. The Board also considered the benefits
SunAmerica and AIGGIC derive from their soft dollar arrangements, including
arrangement under which brokers provide brokerage and/or research services to
SunAmerica and/or AIGGIC in return for allocating brokerage.
The Board also considered SunAmerica's efforts over the past year to reevaluate
the fund complex and identify potential opportunities for consolidations of
certain funds that have similar investment objectives and strategies, which
culminated in SunAmerica proposing, and the Board approving, the
Reorganizations. The Board noted that it would closely monitor the combined
funds following the Reorganizations and, in particular, would request that
management provide an update to the Board, in order to ensure that the Board
was satisfied with the performance of the combined funds, and that the
anticipated benefits to shareholders were realized.
Conclusion. After a full and complete discussion, the Board approved the
Advisory Agreement and the Subadvisory Agreement with respect to the
International Equity Fund and International Small-Cap Fund, each for a one-year
period ending August 31, 2010. Based upon their evaluation of all these factors
in their totality, the Board, including the Disinterested Trustees, was
satisfied that the terms of the Advisory Agreement and Subadvisory Agreement
were fair and reasonable and in the best interests of the Funds and the Funds'
shareholders. In arriving at a decision to approve the Advisory Agreement and
Subadvisory Agreement, the Board did not identify any single factor or group of
factors as all-important or controlling, but considered all factors together.
The Disinterested Trustees were also assisted by the advice of independent
counsel in making this determination.
100
SunAmerica Equity Funds
TRUSTEE AND OFFICER INFORMATION -- September 30, 2009 -- (unaudited)
The following table contains basic information regarding the Trustees and
Officers that oversee operations of the Funds and other investment companies
within the Fund complex.
Number of
Position Term of Portfolios in
Name, Held With Office and Fund Complex
Address and SunAmerica Length of Principal Occupations Overseen by Other Directorships
Date of Birth* Complex Time Served(4) During Past 5 Years Trustee(1) Held by Trustee(2)
- ----------------------- ---------- -------------- ------------------------------ ------------- ------------------------------
Disinterested Trustees
Jeffrey S. Burum Trustee 2004-Present Founder and Chairman of 36 None
DOB: February 27, 1963 National Community
Renaissance (1992 to
present); Founder, Owner
and Partner of Colonies
Crossroads, Inc. (2000 to
present); Owner and
Managing Member of
Diversified Pacific
Development Group LLC
(1998 to present).
Dr. Judith L. Craven Trustee 2001-Present Retired. 85 Director, Belo Corp. (1992 to
DOB: October 6, 1945 present); Director, Sysco
Corp. (1996 to present);
Director, Luby's, Inc. (1998
to present).
William F. Devin Trustee 2001-Present Retired. 85 Director, Boston Options
DOB: December 30, 1938 Exchange (2001 to present).
Samuel M. Eisenstat Chairman 1986-Present Attorney, solo practitioner. 46 Director, North European Oil
DOB: March 7, 1940 of the Royal Trust.
Board
Stephen J. Gutman Trustee 1986-Present Vice President, Corcoran 46 None
DOB: May 10, 1943 Group (Real Estate) (2003 to
present); President and
Member of Managing
Directors, Beau Brummell
Soho LLC (licensing of
menswear specialty retailing
and other activities)
(1988 to present).
William J. Shea Trustee 2004-Present Executive Chairman, Lucid, 46 Chairman of the Board,
DOB: February 9, 1948 Inc., (medical technology and Royal and SunAlliance
information); Managing U.S.A., Inc. (2005 to 2006);
Partner, DLB Capital, LLC Director, Boston Private
(Private Equity) (2006 to Financial Holdings (2004 to
present) President and CEO, present); Director,
Conseco, Inc. (Financial NASDAQ OMX BX (2008 to
Services) (2001 to 2004); present).
Chairman of the Board of
Centennial Technologies, Inc.
(1998 to 2001).
101
SunAmerica Equity Funds
TRUSTEE AND OFFICER INFORMATION -- September 30, 2009 -- (unaudited)
(continued)
Number of
Position Term of Portfolios in
Name, Held With Office and Fund Complex
Address and SunAmerica Length of Principal Occupations Overseen by Other Directorships
Date of Birth* Complex Time Served(4) During Past 5 Years Trustee(1) Held by Trustee(2)
- ----------------------- ----------- -------------- ----------------------------- ------------- -------------------
Interested Trustee
Peter A. Harbeck(3) Trustee 1995-Present President, CEO and Director, 94 None
DOB: January 23, 1954 SunAmerica. (1995 to
present); Director,
SunAmerica Capital
Services, Inc. ("SACS")
(1993 to present); Chairman,
AIG Advisor Group, Inc.
(2004 to present).
Officers
John T. Genoy President 2007-Present Chief Financial Officer, N/A N/A
DOB: November 8, 1968 SunAmerica (2002 to
present); Senior Vice
President, SunAmerica (2003
to present); Chief Operating
Officer, SunAmerica (2006
to present).
Donna M. Handel Treasurer 2002-Present Senior Vice President, N/A N/A
DOB: June 25, 1966 SunAmerica (2004 to
present); Vice President,
SunAmerica (1997 to 2004).
Gregory N. Bressler Secretary 2005-Present Senior Vice President and N/A N/A
DOB: November 17, 1966 and Chief General Counsel,
Legal SunAmerica (2005 to
Officer present); Vice President and
Director of U.S. Asset
Management Compliance,
Goldman Sachs Asset
Management L.P. (2004 to
2005); Deputy General
Counsel, Credit Suisse Asset
Management LLC (2002 to
2004).
James Nichols Vice 2006-present Director, President and CEO, N/A N/A
DOB: April 7, 1966 President SACS (2006 to present);
Senior Vice President, SACS
(2002 to 2006); Senior Vice
President, SunAmerica (2002
to present).
Cynthia A. Skrehot Chief 2002-present Vice President, SunAmerica N/A N/A
DOB: December 6, 1967 Compliance (2002 to present); Chief
Officer Compliance Officer,
("CCO") SunAmerica (2003 to 2006).
102
SunAmerica Equity Funds
TRUSTEE AND OFFICER INFORMATION -- September 30, 2009 -- (unaudited)
(continued)
Number of
Position Term of Portfolios in
Name, Held With Office and Fund Complex
Address and SunAmerica Length of Principal Occupations Overseen by Other Directorships
Date of Birth* Complex Time Served(4) During Past 5 Years Trustee(1) Held by Trustee(2)
- ---------------------- ----------- -------------- ----------------------------- ------------- -------------------
Nori L. Gabert Vice 2002-present Vice President and Deputy N/A N/A
DOB: August 15, 1953 President General Counsel,
and SunAmerica (2001 to
Assistant present); Vice President and
Secretary Secretary, VALIC Company
I and VALIC Company II
(2000 to present).
Timothy Pettee Vice 2004-present Chief Investment Officer, N/A N/A
DOB: April 7, 1958 President SunAmerica (2003 to
present).
Gregory R. Kingston Vice 2002-present Vice President, SunAmerica N/A N/A
DOB: January 18, 1966 President (2001 to present).
and
Assistant
Treasurer
Matthew J. Hackethal Anti- 2006-present CCO, SunAmerica (2007 to N/A N/A
DOB: December 31, Money present); Vice President,
1971 Laundering Credit Suisse Asset
Compliance Management (2001 to 2007);
Officer CCO, Credit Suisse
Alternative Funds (2005 to
2006); CCO, Credit Suisse
Asset Management
Securities, Inc. (2004 to
2005)
- --------
* The business address for each Trustee is the Harborside Financial Center,
3200 Plaza 5, Jersey City, NJ 07311-4992.
(1) The "Fund Complex" means two or more registered investment companies that
hold themselves out to investors as related companies for purposes of
investment services or have a common investment adviser or an investment
adviser that is an affiliated person of the Adviser. The "Fund Complex"
includes the Trust (9 funds), SunAmerica Money Market Funds Inc. (2 funds),
SunAmerica Income Funds (5 funds), SunAmerica Focused Series, Inc.
(15 portfolios), SunAmerica Focused Alpha Growth Fund, Inc. (1 fund),
SunAmerica Focused Alpha Large-Cap Fund, Inc. (1 fund), Anchor Series Trust
(9 portfolios), SunAmerica Senior Floating Rate Fund, Inc. (1 fund),
SunAmerica Series Trust (35 portfolios), VALIC Company I (33 portfolios),
VALIC Company II (15 funds), Seasons Series Trust (24 portfolios), AIG
Series Trust (3 portfolios) and Brazos Mutual Funds (4 funds).
(2) Directorships of companies required to report to the SEC under the
Securities Exchange Act of 1934 (i.e. "public companies") or other
investment companies registered under the 1940 Act.
(3) Interested Trustee, as defined within the 1940 Act, because he is an
officer and a director of the Adviser and a director of the principal
underwriter of the Trust.
(4) Trustees serve until their successors are duly elected and qualified,
subject to the Trustee's Retirement Plan as discussed in Note 11 of the
financial statements. Each officer will hold office for an indefinite term,
until the date he or she resigns or retires or until his/her successor is
duly elected and qualifies.
Additional information concerning the Trustees is contained in the Statement of
Additional Information which is available, without charge, by calling (800)
858-8850.
103
SunAmerica Equity Funds
SHAREHOLDER TAX INFORMATION -- (unaudited)
Certain tax information regarding the SunAmerica Equity Funds is required to be
provided to the shareholders based upon each Fund's income and distributions
for the taxable year ended September 30, 2009. The information and
distributions reported herein may differ from the information and distributions
taxable to the shareholders for the calendar year ending December 31, 2009. The
information necessary to complete your tax returns will be included with your
Form 1099-DIV to be received under separate cover in early 2010.
During the year ended September 30, 2009, the Portfolios paid the following
long-term capital gains dividends along with the percentage of ordinary income
dividends that qualified for the 70% dividends received deduction for
corporations:
Net Long- Qualifying % for the
Term 70% Dividends
Fund Capital Gains Received Deductions
---- ------------- --------------------
Blue Chip Growth Class A........ $-- -- %
Blue Chip Growth Class B........ -- --
Blue Chip Growth Class C........ -- --
Blue Chip Growth Class I........ -- --
Growth Opportunities Class A.... -- --
Growth Opportunities Class B.... -- --
Growth Opportunities Class C.... -- --
Growth Opportunities Class I.... -- --
New Century Class A............. -- --
New Century Class B............. -- --
New Century Class C............. -- --
Growth and Income Class A....... -- 100.00
Growth and Income Class B....... -- 100.00
Growth and Income Class C....... -- 100.00
Growth and Income Class I....... -- 100.00
Balanced Assets Class A......... -- 64.19
Balanced Assets Class B......... -- 64.19
Balanced Assets Class C......... -- 64.19
Balanced Assets Class I......... -- 64.19
International Equity Class A.... -- --
International Equity Class B.... -- --
International Equity Class C.... -- --
International Equity Class I.... -- --
Value Class A................... -- 100.00
Value Class B................... -- 100.00
Value Class C................... -- 100.00
Value Class I................... -- 100.00
Value Class Z................... -- 100.00
Disciplined Growth Class A...... -- --
Disciplined Growth Class B...... -- --
Disciplined Growth Class C...... -- --
International Small-Cap Class A. -- 0.08
International Small-Cap Class B. -- --
International Small-Cap Class C. -- --
The International Equity Fund and International Small-Cap Fund intend to make
an election under Internal Revenue Code Section 853 to pass through foreign
taxes paid by the Fund to its shareholders. The total amount of foreign taxes
passed through to the shareholders for the fiscal year ended September 30, 2009
was $331,603 and $75,232, respectively. The gross foreign source income for the
information reporting is $3,881,866 and $1,124,820, respectively.
104
SunAmerica Equity Funds
SHAREHOLDER TAX INFORMATION -- (unaudited) (continued)
For the year ended September 30, 2009, certain dividends paid by the following
funds may be subject to a maximum tax rate of 15%, as provided by the Jobs and
Growth Tax Relief Reconciliation Act of 2003. Of the distributions paid during
the fiscal year, the following represents the maximum amount that may be
considered qualified dividend income:
Fund Income
---- ----------
Growth and Income....... $ 687,504
Balanced Assets......... 2,046,111
Value................... 2,291,939
International Small-Cap. 11,219
105
(THIS PAGE INTENTIONALLY LEFT BLANK)
106
SunAmerica Equity Funds
COMPARISONS: FUNDS vs. INDEXES -- (unaudited)
As required by the Securities and Exchange Commission, the following graphs
compare the performance of a $10,000 investment in the SunAmerica Equity Funds'
portfolios to a similar investment in an index. Please note that "inception",
as used herein, reflects the date on which a specific class of shares commenced
operations. It is important to note that the SunAmerica Equity Funds are
professionally managed mutual funds, while the indices are not available for
investment and are unmanaged. The comparison is shown for illustrative purposes
only. The graphs present the performance of the largest class of that
particular Fund. The performance of the other classes will vary based upon the
difference in sales charges and fees assessed to shareholders of that class.
107
SunAmerica Equity Funds
COMPARISONS: FUNDS vs. INDEXES -- (unaudited) (continued)
SunAmerica Blue Chip Growth Fund
For the annual period ended September 30, 2009, the SunAmerica Blue Chip Growth
Fund's Class A shares returned -3.62% (before maximum sales charge),
underperforming its primary benchmark, the Russell 1000 Growth Index*, which
returned -1.85% during the same period.
Not surprisingly, the first part of the annual reporting period (October 2008
through March 2009) was marred by the extraordinary economic circumstances,
which presented a significant drag on performance. Accordingly, the portfolio
manager sought to maintain a relatively defensive posture, and as the stock
market improved, the Fund's Class A shares returned 27.28% (before maximum
sales charge) for the calendar year-to-date period through September 30, 2009,
while the benchmark returned 27.11%.
Looking back over the annual period, the market and the economy had been
greatly affected by the cascading impact of falling home prices, the resulting
seizure in the credit markets, and de-leveraging throughout the global
financial system. These macro trends had a volatile impact on the U.S. stock
market and markets around the globe. However, the expectation that the economy
had bottomed prompted a sizeable equity rally throughout much of the second
half of the fiscal period, led higher by lower-priced, more speculative stocks.
Among Russell 1000 Growth constituents, Information Technology (27.44% Index
weight) was the only sector to post positive performance for the annual period,
appreciating 9.95%. Energy (6.86% Index weight) was the worst performing
sectoring, returning -19.03%. Three of the largest constituents, Healthcare
(15.62% Index weight), Industrials (14.36% Index weight), and Consumer
Discretionary (12.19% Index weight) returned -3.24%, -6.66%, and -2.49%,
respectively.
The primary cause of the Fund's underperformance relative to its benchmark
during the annual period was an overweight allocation to the Financials, Energy
and Healthcare sectors. Stock selection in the latter two sectors further
hindered results. Losses were offset, however, by security selection in the
Consumer Discretionary, Information Technology, and Financials sectors.
Underweight exposure to the Industrials sector also contributed to performance.
The following holdings contributed to performance: Apple Inc., Financial Select
Sector SPDR Fund, Google Inc., Coach Inc., and Invesco Ltd. Individual
portfolio holdings which detracted from performance included Bank of America
Corp., Procter & Gamble Co., Genzyme Corp., PepsiCo Inc., and Medtronic Inc.
- --------
Past performance is no guarantee of future results.
* The Russell 1000 Growth Index measures the performance of those Russell 1000
companies with higher price-to-book ratios and higher forecasted growth
values. The Russell 1000 Index is a comprehensive large-cap index measuring
the performance of the largest 1,000 U.S. incorporated companies. Indices are
not managed and an investor cannot invest directly into an index.
Securities listed may or may not be a part of current portfolio construction.
108
SunAmerica Equity Funds
COMPARISONS: FUNDS vs. INDEXES -- (unaudited) (continued)
Over the past ten years, $10,000 invested in Blue Chip Growth Fund Class A
shares would be valued at $7,343. The same amount invested in securities
mirroring the performance of the Russell 1000 Growth Index and the S&P 500
would be valued at $7,720 and $9,846, respectively.
[CHART]
Blue Chip Russell 1000
Growth Class A/#/ S&P 500 Index Growth Index
--------------- -------------- --------------
9/30/1999 $ 9,425 $10,000.00 $10,000.00
10/31/1999 10,120 10,632.55 10,755.35
11/30/1999 10,734 10,849.10 11,335.56
12/31/1999 12,294 11,487.68 12,514.63
1/31/2000 11,839 10,910.54 11,927.74
2/29/2000 12,596 10,704.00 12,510.90
3/31/2000 13,169 11,751.18 13,406.24
4/30/2000 12,185 11,397.58 12,768.31
5/31/2000 11,459 11,163.71 12,125.47
6/30/2000 12,307 11,438.89 13,044.37
7/31/2000 12,102 11,260.21 12,500.49
8/31/2000 13,519 11,959.59 13,632.44
9/30/2000 12,692 11,328.24 12,342.82
10/31/2000 11,717 11,280.32 11,758.88
11/30/2000 10,335 10,390.98 10,025.53
12/31/2000 10,516 10,441.79 9,708.23
1/31/2001 10,654 10,812.27 10,378.95
2/28/2001 9,459 9,826.41 8,616.93
3/31/2001 8,794 9,203.90 7,679.25
4/30/2001 9,484 9,919.14 8,650.48
5/31/2001 9,459 9,985.60 8,523.07
6/30/2001 9,162 9,742.55 8,325.74
7/31/2001 8,942 9,646.68 8,117.61
8/31/2001 8,283 9,042.80 7,453.88
9/30/2001 7,333 8,312.59 6,709.66
10/31/2001 7,573 8,471.11 7,061.69
11/30/2001 8,355 9,120.93 7,740.07
12/31/2001 8,329 9,200.83 7,725.53
1/31/2002 8,002 9,066.59 7,589.04
2/28/2002 7,736 8,891.79 7,274.10
3/31/2002 8,048 9,226.21 7,525.70
4/30/2002 7,537 8,666.82 6,911.49
5/31/2002 7,358 8,602.95 6,744.28
6/30/2002 6,771 7,990.07 6,120.41
7/31/2002 6,270 7,367.25 5,783.94
8/31/2002 6,249 7,415.65 5,801.22
9/30/2002 5,698 6,609.72 5,199.47
10/31/2002 6,091 7,191.50 5,676.42
11/30/2002 6,398 7,614.80 5,984.74
12/31/2002 5,892 7,167.43 5,571.33
1/31/2003 5,769 6,980.03 5,436.15
2/28/2003 5,744 6,875.15 5,411.19
3/31/2003 5,795 6,941.71 5,511.90
4/30/2003 6,214 7,513.23 5,919.42
5/31/2003 6,495 7,908.70 6,214.90
6/30/2003 6,546 8,009.74 6,300.47
7/31/2003 6,714 8,151.02 6,457.26
8/31/2003 6,863 8,309.67 6,617.85
9/30/2003 6,704 8,221.69 6,547.00
10/31/2003 7,205 8,686.54 6,914.73
11/30/2003 7,241 8,762.88 6,987.12
12/31/2003 7,425 9,222.13 7,228.77
1/31/2004 7,522 9,391.37 7,376.38
2/29/2004 7,578 9,521.86 7,423.25
3/31/2004 7,435 9,378.18 7,285.55
4/30/2004 7,312 9,231.22 7,200.84
5/31/2004 7,399 9,357.87 7,335.07
6/30/2004 7,522 9,539.79 7,426.72
7/31/2004 7,118 9,224.02 7,006.87
8/31/2004 7,072 9,261.29 6,972.28
9/30/2004 7,200 9,361.59 7,038.58
10/31/2004 7,297 9,504.61 7,148.36
11/30/2004 7,532 9,889.05 7,394.25
12/31/2004 7,782 10,225.57 7,684.17
1/31/2005 7,532 9,976.38 7,427.92
2/28/2005 7,563 10,186.28 7,506.97
3/31/2005 7,430 10,005.98 7,370.20
4/30/2005 7,225 9,816.17 7,229.84
5/31/2005 7,583 10,128.22 7,579.64
6/30/2005 7,517 10,142.74 7,551.70
7/31/2005 7,869 10,519.77 7,920.79
8/31/2005 7,757 10,423.73 7,818.77
9/30/2005 7,772 10,508.11 7,854.78
10/31/2005 7,670 10,332.94 7,778.44
11/30/2005 7,987 10,723.73 8,114.04
12/31/2005 7,910 10,727.38 8,088.60
1/31/2006 8,064 11,011.42 8,230.60
2/28/2006 7,987 11,041.20 8,217.52
3/31/2006 8,079 11,178.66 8,338.86
4/30/2006 8,043 11,328.79 8,327.52
5/31/2006 7,777 11,002.74 8,045.25
6/30/2006 7,701 11,017.66 8,013.51
7/31/2006 7,604 11,085.62 7,860.88
8/31/2006 7,823 11,349.38 8,106.14
9/30/2006 8,018 11,641.85 8,328.88
10/31/2006 8,242 12,021.21 8,621.67
11/30/2006 8,345 12,249.81 8,792.76
12/31/2006 8,375 12,421.65 8,822.54
1/31/2007 8,590 12,609.50 9,049.33
2/28/2007 8,406 12,362.87 8,879.23
3/31/2007 8,472 12,501.15 8,927.39
4/30/2007 8,891 13,054.89 9,347.69
5/31/2007 9,203 13,510.44 9,683.98
6/30/2007 9,101 13,285.99 9,539.42
7/31/2007 8,932 12,874.06 9,391.53
8/31/2007 9,101 13,067.04 9,541.18
9/30/2007 9,576 13,555.73 9,940.86
10/31/2007 9,842 13,771.40 10,279.19
11/30/2007 9,586 13,195.62 9,900.54
12/31/2007 9,505 13,104.04 9,864.74
1/31/2008 8,728 12,318.06 9,095.52
2/29/2008 8,523 11,917.85 8,914.87
3/31/2008 8,467 11,866.36 8,860.59
4/30/2008 8,922 12,444.26 9,325.77
5/31/2008 9,172 12,605.41 9,667.59
6/30/2008 8,554 11,542.77 8,971.32
7/31/2008 8,447 11,445.70 8,800.75
8/31/2008 8,575 11,611.20 8,895.51
9/30/2008 7,619 10,576.53 7,865.37
10/31/2008 6,316 8,800.20 6,480.60
11/30/2008 5,744 8,168.79 5,965.20
12/31/2008 5,769 8,255.70 6,073.01
1/31/2009 5,570 7,559.86 5,780.87
2/28/2009 5,207 6,754.89 5,345.98
3/31/2009 5,667 7,346.58 5,822.83
4/30/2009 6,142 8,049.72 6,381.85
5/31/2009 6,367 8,499.95 6,698.21
6/30/2009 6,454 8,516.78 6,773.15
7/31/2009 6,919 9,160.98 7,254.22
8/31/2009 7,072 9,491.70 7,404.66
9/30/2009 7,343 9,845.93 7,719.62
Class A Class B Class C++ Class I
------------------ ------------------ ------------------ ------------------
Blue Average Average Average Average
Chip Annual Cumulative Annual Cumulative Annual Cumulative Annual Cumulative
Growth Fund Return Return+ Return Return+ Return Return+ Return Return+
- ----------------- ------- ---------- ------- ---------- ------- ---------- ------- ----------
1 Year Return -9.17% -3.62% -8.19% -4.37% -5.44% -4.49% -3.17% -3.17%
- ---------------------------------------------------------------------------------------------
5 Year Return -0.79% 1.99% -0.75% -1.73% -0.48% -2.37% 0.70% 3.53%
- ---------------------------------------------------------------------------------------------
10 Year Return -3.04% -22.09% -3.09% -26.92% -3.27% -28.29% N/A N/A
- ---------------------------------------------------------------------------------------------
Since Inception* 4.14% 102.76% 6.60% 380.03% -2.81% -26.19% -1.32% -9.94%
- ---------------------------------------------------------------------------------------------
+ Cumulative returns do not include sales load. If sales load had been
included, the return would have been lower.
* Inception date: Class A: 10/08/93; Class B: 03/13/85; Class C: 02/02/99;
Class I: 11/16/01.
# For the purposes of the graph, it has been assumed that the maximum sales
charge of 5.75% of offering price, was deducted from the initial $10,000
investment in the Fund. For purposes of the table, it has been assumed that
the maximum sales charge with respect to the Class A shares, was deducted
from the initial investment in the Fund and that the CDSCs with respect to
the Class B and Class C shares have been deducted, as applicable.
++ Effective February 23, 2004, Class II shares were redesignated as Class C
shares.
For the 12 month period ended September 30, 2009, the SunAmerica Blue Chip
Growth Class A returned -9.17% compared to -1.85% for the Russell 1000 Growth
Index and -6.91% for the S&P 500 Index. (The performance table and graph do not
reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares.)
- --------
Performance data quoted represents past performance and is no guarantee of
future results. Maximum Sales Charge: Class A: 5.75%, Class B: 4.00% Contingent
Deferred Sales Charge (CDSC), Class C: 1.00% CDSC. The fund's daily net assets
values are not guaranteed and shares are not insured by the FDIC, the Federal
Reserve Board or any other agency. The investment return and principal value of
an investment will fluctuate so that an investor's shares, when redeemed, may
be higher or lower than the original cost. Current performance may be higher or
lower than that shown. Performance as of the most recent month end is available
at www.sunamericafunds.com.
109
SunAmerica Equity Funds
COMPARISONS: FUNDS vs. INDEXES -- (unaudited) (continued)
SunAmerica Growth Opportunities Fund
For the annual period ended September 30, 2009, the SunAmerica Growth
Opportunities Fund's Class A shares returned 14.66% (before maximum sales
charge), outperforming its Russell 2000 Growth Index* benchmark, which returned
- -6.32% during the same period.
With the exception of the NASDAQ Composite, most of the major domestic equity
indices registered declines for the fiscal year, as a severe global economic
recession, a collapse in real estate prices, and deteriorating conditions in
the overall banking industry sent global stock markets spiraling downward in
the opening half of the annual period. However, renewed optimism and a belief
that the economic conditions were improving prompted a broad-based rally during
the final six months of the annual period.
For the year, the S&P 500, Russell 2000 Growth, and Russell 2000 Value**
Indices returned -6.91%, -6.32%, and -12.61%, respectively. With the exception
of the mid-cap category, growth generally outperformed value across the
capitalization spectrum. In terms of industry groups, results were mixed. Among
Russell 2000 Growth constituents, Information Technology, Telecommunication
Services, Consumer Discretionary and Consumer Staples sectors all delivered
positive returns during the period, while all other sectors had negative
performance.
Despite the difficult market environment for Industrial companies overall, the
Fund's stock selection in this sector was the primary driver of absolute and
relative outperformance versus the benchmark. Other factors which positively
impacted Fund performance included overweight exposure to the Consumer Staples
sector, stock selection in the Information Technology, Consumer Discretionary,
Materials and Consumer Staples sectors, as well as a 20% average cash position,
which contributed to performance by mitigating the Fund's exposure to the
equity market decline. Conversely, factors that hindered results included
security selection in the Healthcare, Energy, and Financials sectors, and
underweight allocations to the Information Technology and Consumer
Discretionary sectors.
Top-contributing investments during the annual period included Comstock
Resources Inc., Western Union Co., Inverness Medical Innovations Inc., Comtech
Telecommunications Corp., and Las Vegas Sands Corp. Portfolio detractors
included Almost Family Inc., Affiliated Managers Group Inc., Ticketmaster
Entertainment Inc., Euronet Worldwide Inc., and Central European Distribution
Corp.
- --------
Past performance is no guarantee of future results.
* The Russell 2000 Growth Index measures the performance of those Russell 2000
companies with higher price-to-book ratios and higher forecasted growth
values. Indices are not managed and an investor cannot invest directly into
an index.
** The Russell 2000 Value Index measures the performance of the small-cap value
segment of the U.S. equity universe. It includes those Russell 2000
companies with lower price-to-book ratios and lower forecasted growth
values. Indices are not managed and an investor cannot invest directly into
an index.
Securities listed may or may not be a part of current portfolio construction.
110
SunAmerica Equity Funds
COMPARISONS: FUNDS vs. INDEXES -- (unaudited) (continued)
Over the past ten years, $10,000 invested in Growth Opportunities Fund Class A
shares would be valued at $7,583. The same amount invested in securities
mirroring the performance of the Russell 2000 Growth Index would be valued at
$11,154.
[CHART]
Growth Opportunities Russell 2000 Growth
Class A /#/ Index
-------------------- -------------------
9/30/1999 $ 9,425 $10,000.00
10/31/1999 10,363 10,256.15
11/30/1999 11,553 11,340.60
12/31/1999 14,626 13,339.43
1/31/2000 14,594 13,215.26
2/29/2000 19,748 16,289.98
3/31/2000 18,268 14,577.67
4/30/2000 16,526 13,105.81
5/31/2000 15,098 11,958.22
6/30/2000 17,946 13,502.99
7/31/2000 16,615 12,345.78
8/31/2000 19,505 13,644.39
9/30/2000 19,043 12,966.55
10/31/2000 17,498 11,913.99
11/30/2000 13,193 9,750.84
12/31/2000 14,253 10,347.46
1/31/2001 14,268 11,184.99
2/28/2001 11,699 9,651.81
3/31/2001 10,497 8,774.28
4/30/2001 11,513 9,848.48
5/31/2001 11,256 10,076.61
6/30/2001 10,724 10,351.38
7/31/2001 9,801 9,468.29
8/31/2001 8,939 8,877.01
9/30/2001 7,954 7,444.66
10/31/2001 8,465 8,160.87
11/30/2001 9,301 8,842.08
12/31/2001 9,538 9,392.59
1/31/2002 9,362 9,058.43
2/28/2002 8,357 8,472.14
3/31/2002 9,244 9,208.53
4/30/2002 8,326 9,009.29
5/31/2002 7,727 8,482.52
6/30/2002 6,742 7,763.22
7/31/2002 5,731 6,570.08
8/31/2002 5,468 6,567.02
9/30/2002 5,148 6,092.67
10/31/2002 5,628 6,400.84
11/30/2002 6,128 7,035.40
12/31/2002 5,525 6,550.21
1/31/2003 5,473 6,372.27
2/28/2003 5,514 6,202.33
3/31/2003 5,659 6,296.23
4/30/2003 6,035 6,892.11
5/31/2003 6,680 7,668.78
6/30/2003 6,680 7,816.58
7/31/2003 6,804 8,407.48
8/31/2003 7,232 8,859.07
9/30/2003 7,088 8,634.81
10/31/2003 7,459 9,380.76
11/30/2003 7,634 9,686.60
12/31/2003 7,717 9,729.91
1/31/2004 7,949 10,241.05
2/29/2004 8,021 10,225.21
3/31/2004 8,001 10,273.00
4/30/2004 7,531 9,757.32
5/31/2004 7,588 9,951.41
6/30/2004 7,799 10,282.53
7/31/2004 7,072 9,359.57
8/31/2004 6,809 9,158.08
9/30/2004 7,046 9,664.47
10/31/2004 7,175 9,899.30
11/30/2004 7,681 10,736.05
12/31/2004 7,913 11,121.91
1/31/2005 7,758 10,620.87
2/28/2005 7,954 10,766.64
3/31/2005 7,738 10,362.80
4/30/2005 7,346 9,703.27
5/31/2005 7,670 10,387.41
6/30/2005 7,841 10,723.27
7/31/2005 8,181 11,472.81
8/31/2005 8,279 11,311.15
9/30/2005 8,393 11,400.78
10/31/2005 8,109 10,979.46
11/30/2005 8,387 11,601.06
12/31/2005 8,393 11,583.79
1/31/2006 8,841 12,701.16
2/28/2006 8,785 12,633.47
3/31/2006 9,141 13,247.49
4/30/2006 9,208 13,209.24
5/31/2006 8,821 12,279.64
6/30/2006 8,553 12,287.05
7/31/2006 8,248 11,648.77
8/31/2006 8,573 11,989.97
9/30/2006 8,790 12,071.12
10/31/2006 9,223 12,853.30
11/30/2006 9,631 13,161.02
12/31/2006 9,687 13,129.70
1/31/2007 9,914 13,373.98
2/28/2007 10,079 13,331.68
3/31/2007 10,131 13,454.80
4/30/2007 10,332 13,807.56
5/31/2007 10,894 14,436.31
6/30/2007 10,760 14,354.62
7/31/2007 9,925 13,609.31
8/31/2007 9,889 13,951.60
9/30/2007 9,961 14,356.91
10/31/2007 10,048 15,003.27
11/30/2007 9,203 13,967.14
12/31/2007 9,037 14,054.86
1/31/2008 8,238 12,765.51
2/29/2008 7,970 12,323.70
3/31/2008 7,686 12,251.95
4/30/2008 7,872 12,881.49
5/31/2008 8,331 13,611.19
6/30/2008 7,433 12,799.76
7/31/2008 7,263 13,097.40
8/31/2008 7,459 13,422.77
9/30/2008 6,613 11,905.67
10/31/2008 5,715 9,321.72
11/30/2008 5,148 8,193.70
12/31/2008 5,463 8,638.13
1/31/2009 5,308 7,980.95
2/28/2009 4,741 7,154.58
3/31/2009 5,236 7,796.74
4/30/2009 5,860 8,970.19
5/31/2009 6,138 9,317.52
6/30/2009 6,530 9,619.40
7/31/2009 6,917 10,365.32
8/31/2009 7,160 10,466.51
9/30/2009 7,583 11,153.77
Class A Class B Class C++ Class I
------------------ ------------------ ------------------ ------------------
Growth Average Average Average Average
Opportunities Annual Cumulative Annual Cumulative Annual Cumulative Annual Cumulative
Fund Return Return+ Return Return+ Return Return+ Return Return+
- ----------------- ------- ---------- ------- ---------- ------- ---------- ------- ----------
1 Year Return 8.09% 14.66% 9.93% 13.93% 12.79% 13.79% 15.50% 15.50%
- ---------------------------------------------------------------------------------------------
5 Year Return 0.29% 7.61% 0.38% 3.91% 0.72% 3.67% 1.92% 9.96%
- ---------------------------------------------------------------------------------------------
10 Year Return -2.73% -19.55% -2.70% -23.92% -2.87% -25.28% N/A N/A
- ---------------------------------------------------------------------------------------------
Since Inception* 6.65% 356.41% 3.65% 77.40% -1.81% -17.68% -2.25% -16.36%
- ---------------------------------------------------------------------------------------------
+ Cumulative returns do not include sales load. If sales load had been
included, the return would have been lower.
* Inception date: Class A: 01/28/87; Class B: 10/04/93; Class C: 02/02/99;
Class I: 11/16/01.
# For the purposes of the graph, it has been assumed that the maximum sales
charge of 5.75% of offering price, was deducted from the initial $10,000
investment in the Fund. For purposes of the table, it has been assumed that
the maximum sales charge with respect to the Class A shares, was deducted
from the initial investment in the Fund and that the CDSCs with respect to
the Class B and Class C shares have been deducted, as applicable.
++ Effective February 23, 2004, Class II shares were redesignated as Class C
shares.
For the 12 month period ended September 30, 2009, the SunAmerica Growth
Opportunities Class A returned 8.09% compared to -6.32% for the Russell 2000
Growth Index. (The performance data and graph do not reflect the deduction of
taxes that a shareholder would pay on fund distributions or the redemption of
fund shares.)
- --------
Performance data quoted represents past performance and is no guarantee of
future results. Maximum Sales Charge: Class A: 5.75%, Class B: 4.00% Contingent
Deferred Sales Charge (CDSC), Class C: 1.00% CDSC. The fund's daily net assets
values are not guaranteed and shares are not insured by the FDIC, the Federal
Reserve Board or any other agency. The investment return and principal value of
an investment will fluctuate so that an investor's shares, when redeemed, may
be higher or lower than the original cost. Current performance may be higher or
lower than that shown. Performance as of the most recent month end is available
at www.sunamericafunds.com.
111
SunAmerica Equity Funds
COMPARISONS: FUNDS vs. INDEXES -- (unaudited) (continued)
SunAmerica New Century Fund
For the annual period ended September 30, 2009, the SunAmerica New Century
Fund's Class A shares returned -5.58%, (before maximum sales charge),
underperforming its benchmark the Russell Midcap Growth Index*, which returned
- -0.40% for the same period.
Not surprisingly, the first part of the annual reporting period (October 2008
through March 2009) was marred by the extraordinary economic circumstances,
which presented a significant drag on performance. Accordingly, the portfolio
manager sought to maintain a relatively defensive posture and as the stock
market improved, the Fund's Class A shares returned 25.05% (before maximum
sales charge) for the calendar year-to-date period through September 30, 2009,
while the benchmark returned 37.12%.
Despite a harrowing start to the annual period, as tighter credit and
deteriorating economic trends produced the worst market conditions in
generations, U.S. equities finished the period on a positive note. Renewed
optimism and a belief that the business conditions were improving prompted a
broad-based rally during the final six months of the period. For the year, the
S&P 500, Russell Midcap Growth, and Russell Midcap Value** Indices returned
- -6.91%, -0.40%, and -7.12%, respectively. In terms of Lipper categories,
Mid-Cap Value was the top-performing asset class, while the Large-Cap Value
segment was the worst performer. In terms of industry groups, Information
Technology (16.17% Index weight) and Consumer Discretionary (17.14% Index
weight) were the only Russell Midcap Growth sectors to post positive returns,
appreciating 15.26% and 2.77%, respectively. Telecommunication Services (2.36%
Index weight) and Financials (6.22% Index weight) were the worst performing
groups, returning -14.17% and -13.12%, respectively. All other Russell Midcap
Growth sectors also had negative returns for the fiscal year.
The Fund focuses its investment selection on companies that demonstrate the
potential for capital appreciation, without regard to market capitalization.
During the annual period, factors driving the Fund's underperformance relative
to its benchmark included underweight exposure to the Consumer Discretionary
and Financials sectors, and stock selection in the Consumer Discretionary,
Healthcare, Industrials, and Information Technology sectors.
Alternatively, security selection in the Energy, Financials, Telecommunication
Services, and Utilities sectors contributed to the Fund's performance during
the annual period, as did a 10% average cash position. The cash position
contributed to performance by mitigating the Fund's exposure to the equity
market decline.
Top stock contributors to the Fund's performance during the annual period were
Saks Inc., Gap Inc., Marvell Technology Group Ltd., Transocean Ltd., and True
Religion Apparel Inc. Investments in McMoRan Exploration Co., Pactiv Corp.,
Bank of America Corp., Harris Corp., and Beckman Coulter Inc. detracted from
the Fund's performance during the period.
- --------
Past performance is no guarantee of future results.
* The Russell Midcap Growth Index measures the performance of those Russell
Midcap companies with higher price-to-book ratios and higher forecasted
growth values. The stocks are also members of the Russell 1000 Growth Index.
Indices are not managed and an investor cannot invest directly into an index.
** The Russell Midcap Value Index measures the performance of the mid-cap value
segment of the U.S. equity universe. It includes those Russell Midcap Index
companies with lower price-to-book ratios and lower forecasted growth
values. Indices are not managed and an investor cannot invest into an index.
Securities listed may or may not be a part of current portfolio construction.
112
SunAmerica Equity Funds
COMPARISONS: FUNDS vs. INDEXES -- (unaudited) (continued)
Over the past ten years, $10,000 invested in New Century Fund Class A shares
would be valued at $6,496. The same amount invested in securities mirroring the
performance of the Russell Midcap Growth Index would be valued at $12,407.
[CHART]
New Century Russell Midcap
Class A/#/ Growth Index
----------- ----------------------
9/30/1999 $ 9,425 $10,000.00
10/31/1999 9,966 10,773.22
11/30/1999 11,663 11,888.97
12/31/1999 15,102 13,947.50
1/31/2000 14,584 13,944.76
2/29/2000 18,624 16,876.29
3/31/2000 16,238 16,893.70
4/30/2000 14,591 15,253.79
5/31/2000 13,503 14,141.87
6/30/2000 16,238 15,642.38
7/31/2000 14,627 14,651.91
8/31/2000 16,820 16,861.63
9/30/2000 16,281 16,037.28
10/31/2000 14,362 14,939.62
11/30/2000 11,865 11,693.10
12/31/2000 12,296 12,308.82
1/31/2001 11,968 13,011.99
2/28/2001 10,350 10,761.29
3/31/2001 9,521 9,221.19
4/30/2001 10,411 10,758.26
5/31/2001 10,383 10,707.70
6/30/2001 10,166 10,713.32
7/31/2001 9,476 9,990.82
8/31/2001 8,692 9,266.66
9/30/2001 7,346 7,735.15
10/31/2001 7,680 8,548.24
11/30/2001 8,203 9,468.55
12/31/2001 8,370 9,828.47
1/31/2002 8,164 9,509.33
2/28/2002 7,758 8,970.24
3/31/2002 8,208 9,654.87
4/30/2002 7,986 9,143.72
5/31/2002 7,764 8,870.88
6/30/2002 7,246 7,891.91
7/31/2002 6,518 7,125.16
8/31/2002 6,529 7,100.36
9/30/2002 6,240 6,536.25
10/31/2002 6,362 7,042.53
11/30/2002 6,601 7,593.75
12/31/2002 6,312 7,134.96
1/31/2003 6,195 7,064.90
2/28/2003 6,084 7,003.47
3/31/2003 6,134 7,133.89
4/30/2003 6,546 7,619.61
5/31/2003 7,035 8,352.78
6/30/2003 7,146 8,471.89
7/31/2003 7,374 8,774.64
8/31/2003 7,758 9,257.87
9/30/2003 7,474 9,078.36
10/31/2003 8,042 9,810.01
11/30/2003 8,058 10,072.51
12/31/2003 8,069 10,182.44
1/31/2004 8,186 10,518.66
2/29/2004 8,208 10,695.11
3/31/2004 8,220 10,674.68
4/30/2004 7,936 10,373.33
5/31/2004 8,142 10,618.11
6/30/2004 8,448 10,787.09
7/31/2004 7,969 10,072.70
8/31/2004 7,786 9,948.52
9/30/2004 8,214 10,319.95
10/31/2004 8,487 10,669.99
11/30/2004 9,037 11,221.01
12/31/2004 9,321 11,758.60
1/31/2005 9,226 11,443.85
2/28/2005 9,504 11,733.62
3/31/2005 9,310 11,562.20
4/30/2005 8,881 11,104.68
5/31/2005 9,482 11,740.68
6/30/2005 9,643 11,958.98
7/31/2005 10,155 12,656.79
8/31/2005 10,021 12,579.47
9/30/2005 10,010 12,742.35
10/31/2005 9,688 12,367.34
11/30/2005 10,083 13,038.27
12/31/2005 10,038 13,181.28
1/31/2006 10,528 13,970.64
2/28/2006 10,522 13,798.70
3/31/2006 10,817 14,184.27
4/30/2006 10,906 14,244.38
5/31/2006 10,405 13,573.91
6/30/2006 10,149 13,518.50
7/31/2006 9,782 13,033.98
8/31/2006 10,094 13,334.28
9/30/2006 10,344 13,638.55
10/31/2006 10,772 14,161.99
11/30/2006 11,139 14,717.77
12/31/2006 11,323 14,585.89
1/31/2007 11,712 15,116.70
2/28/2007 11,823 15,084.11
3/31/2007 11,885 15,163.26
4/30/2007 12,335 15,829.12
5/31/2007 12,997 16,471.05
6/30/2007 12,774 16,185.51
7/31/2007 11,873 15,823.17
8/31/2007 12,035 15,908.84
9/30/2007 12,285 16,533.06
10/31/2007 12,396 16,954.75
11/30/2007 11,384 16,208.12
12/31/2007 11,150 16,252.57
1/31/2008 10,350 14,961.13
2/29/2008 10,033 14,733.16
3/31/2008 9,627 14,472.98
4/30/2008 10,027 15,523.06
5/31/2008 10,600 16,340.84
6/30/2008 9,604 15,145.62
7/31/2008 8,692 14,570.41
8/31/2008 8,442 14,703.81
9/30/2008 6,879 12,457.58
10/31/2008 5,767 9,723.62
11/30/2008 5,367 8,727.67
12/31/2008 5,194 9,048.67
1/31/2009 4,950 8,641.33
2/28/2009 4,532 7,983.74
3/31/2009 4,849 8,744.34
4/30/2009 5,372 9,986.96
5/31/2009 5,689 10,503.14
6/30/2009 5,639 10,551.86
7/31/2009 5,951 11,384.32
8/31/2009 6,095 11,732.76
9/30/2009 6,496 12,407.37
Class A Class B Class C++
------------------ ------------------ ------------------
New Average Average Average
Century Annual Cumulative Annual Cumulative Annual Cumulative
Fund Return Return+ Return Return+ Return Return+
- ----------------- ------- ---------- ------- ---------- ------- ----------
1 Year Return -10.98% -5.58% -10.03% -6.29% -6.89% -5.95%
- --------------------------------------------------------------------------
5 Year Return -5.71% -20.92% -5.70% -23.91% -5.10% -23.04%
- --------------------------------------------------------------------------
10 Year Return -4.22% -31.08% -4.19% -34.83% -4.21% -34.94%
- --------------------------------------------------------------------------
Since Inception* 5.88% 287.26% 2.60% 50.89% -1.29% -14.06%
- --------------------------------------------------------------------------
+ Cumulative returns do not include sales load. If sales load had been
included, the return would have been lower.
* Inception date: Class A: 01/28/87; Class B: 09/24/93; Class C: 02/02/98.
# For the purposes of the graph, it has been assumed that the maximum sales
charge of 5.75% of offering price, was deducted from the initial $10,000
investment in the Fund. For purposes of the table, it has been assumed that
the maximum sales charge with respect to the Class A shares, was deducted
from the initial investment in the Fund and that the CDSCs with respect to
the Class B and Class C shares have been deducted, as applicable.
++ Effective February 23, 2004, Class II shares were redesignated as Class C
shares.
For the 12 month period ended September 30, 2009, the SunAmerica New Century
Class A returned -10.98% compared to -0.40% for the Russell Midcap Growth
Index. (The performance data and graph do not reflect the deduction of taxes
that a shareholder would pay on fund distributions or the redemption of fund
shares.)
- --------
Performance data quoted represents past performance and is no guarantee of
future results. Maximum Sales Charge: Class A: 5.75%, Class B: 4.00% Contingent
Deferred Sales Charge (CDSC), Class C: 1.00% CDSC. The fund's daily net assets
values are not guaranteed and shares are not insured by the FDIC, the Federal
Reserve Board or any other agency. The investment return and principal value of
an investment will fluctuate so that an investor's shares, when redeemed, may
be higher or lower than the original cost. Current performance may be higher or
lower than that shown. Performance as of the most recent month end is available
at www.sunamericafunds.com.
113
SunAmerica Equity Funds
COMPARISONS: FUNDS vs. INDEXES -- (unaudited) (continued)
SunAmerica Growth and Income Fund
For the annual period ended September 30, 2009, the SunAmerica Growth and
Income Fund's Class A shares returned -11.83% (before maximum sales charge),
underperforming its S&P 500 Index* benchmark, which returned -6.91% during the
same period.
Not surprisingly, the first part of the annual reporting period (October 2008
through March 2009) was marred by the extraordinary economic circumstances,
which presented a significant drag on performance. Accordingly, the portfolio
manager sought to maintain a relatively defensive posture and as the stock
market improved, the Fund's Class A shares returned 15.48% (before maximum
sales charge) for the calendar year-to-date period through September 30, 2009,
while the benchmark returned 19.26%.
It was another challenging annual period for the equity markets, as tighter
credit conditions, weakening economic trends, and deteriorating corporate
profits weighed heavily on investor sentiment in the first half of the annual
period. However, investor optimism improved beginning in the middle of the
period following the announcement of fiscal policy initiatives, improved
corporate earnings outlook, and the stabilization in the credit markets.
Despite the significant second half rally, the S&P 500 finished the year down
6.91%. In terms of industry groups, Information Technology (16.08% Index
weight) and Telecommunication Services (3.58% Index weight) were the
top-performing groups in the S&P 500 Index, gaining 9.80% and 0.11%,
respectively. Conversely, Financials (13.00% Index weight) and Energy (12.50%
Index weight) were the principal laggards, returning -23.10% and -14.32%,
respectively. All remaining S&P 500 sectors also posted negative returns during
the annual period.
With respect to the Fund's sector weightings versus the portfolio's benchmark,
the combination of stock selection and an underweight allocation to the
Industrials group contributed to the Fund's performance during the annual
period. Security selection in the Utilities and Healthcare sectors also aided
performance. Factors that hindered the Fund's performance included security
selection in the Materials, Energy, Consumer Staples, and Consumer
Discretionary sectors, underweight exposure to the Materials and Financials
sectors, and an Energy sector overweight.
Top-contributing investments for the year included eBay Inc., Goodrich Corp.,
International Business Machines Corp., Gap Inc., and Union Pacific Corp. On the
other hand, Citigroup Inc., Freeport-McMoRan Copper & Gold Inc., NBTY Inc.,
Schlumberger Ltd., and General Electric Co. headed the list of portfolio
detractors.
- --------
Past performance is no guarantee of future results.
* The S&P 500 Index is Standard & Poor's 500 Composite Stock Price Index, a
widely recognized, unmanaged index of common stock prices. Indices are not
managed and an investor cannot invest directly into an index.
Securities listed may or may not be a part of current portfolio construction.
114
SunAmerica Equity Funds
COMPARISONS: FUNDS vs. INDEXES -- (unaudited) (continued)
Over the past ten years, $10,000 invested in Growth and Income Fund Class A
shares would be valued at $7,215. The same amount invested in securities
mirroring the performance of the S&P 500 Index would be valued at $9,846.
[CHART]
Growth and Income
Class A/#/ S&P 500 Index
----------------- --------------
9/30/1999 $ 9425 $10000.00
10/31/1999 10046 10632.55
11/30/1999 10459 10849.10
12/31/1999 11658 11487.68
1/31/2000 11237 10910.54
2/29/2000 11646 10704.00
3/31/2000 12313 11751.18
4/30/2000 11447 11397.58
5/31/2000 10900 11163.71
6/30/2000 11592 11438.89
7/31/2000 11393 11260.21
8/31/2000 12698 11959.59
9/30/2000 12031 11328.24
10/31/2000 11339 11280.32
11/30/2000 10100 10390.98
12/31/2000 10392 10441.79
1/31/2001 10451 10812.27
2/28/2001 9481 9826.41
3/31/2001 8851 9203.90
4/30/2001 9494 9919.14
5/31/2001 9448 9985.60
6/30/2001 9061 9742.55
7/31/2001 8864 9646.68
8/31/2001 8209 9042.80
9/30/2001 7284 8312.59
10/31/2001 7396 8471.11
11/30/2001 8097 9120.93
12/31/2001 8150 9200.83
1/31/2002 7763 9066.59
2/28/2002 7645 8891.79
3/31/2002 7986 9226.21
4/30/2002 7586 8666.82
5/31/2002 7494 8602.95
6/30/2002 6976 7990.07
7/31/2002 6386 7367.25
8/31/2002 6478 7415.65
9/30/2002 5816 6609.72
10/31/2002 6202 7191.50
11/30/2002 6511 7614.80
12/31/2002 6071 7167.43
1/31/2003 5875 6980.03
2/28/2003 5816 6875.15
3/31/2003 5848 6941.71
4/30/2003 6229 7513.23
5/31/2003 6497 7908.70
6/30/2003 6537 8009.74
7/31/2003 6688 8151.02
8/31/2003 6806 8309.67
9/30/2003 6681 8221.69
10/31/2003 7147 8686.54
11/30/2003 7212 8762.88
12/31/2003 7448 9222.13
1/31/2004 7520 9391.37
2/29/2004 7632 9521.86
3/31/2004 7494 9378.18
4/30/2004 7343 9231.22
5/31/2004 7389 9357.87
6/30/2004 7507 9539.79
7/31/2004 7330 9224.02
8/31/2004 7337 9261.29
9/30/2004 7461 9361.59
10/31/2004 7599 9504.61
11/30/2004 7907 9889.05
12/31/2004 8183 10225.57
1/31/2005 8025 9976.38
2/28/2005 8176 10186.28
3/31/2005 8051 10005.98
4/30/2005 7893 9816.17
5/31/2005 8111 10128.22
6/30/2005 8058 10142.74
7/31/2005 8242 10519.77
8/31/2005 8176 10423.73
9/30/2005 8199 10508.11
10/31/2005 8041 10332.94
11/30/2005 8272 10723.73
12/31/2005 8238 10727.38
1/31/2006 8371 11011.42
2/28/2006 8450 11041.20
3/31/2006 8530 11178.66
4/30/2006 8695 11328.79
5/31/2006 8483 11002.74
6/30/2006 8457 11017.66
7/31/2006 8503 11085.62
8/31/2006 8689 11349.38
9/30/2006 8894 11641.85
10/31/2006 9179 12021.21
11/30/2006 9305 12249.81
12/31/2006 9450 12421.65
1/31/2007 9589 12609.50
2/28/2007 9351 12362.87
3/31/2007 9457 12501.15
4/30/2007 9894 13054.89
5/31/2007 10238 13510.44
6/30/2007 10119 13285.99
7/31/2007 9907 12874.06
8/31/2007 10192 13067.04
9/30/2007 10523 13555.73
10/31/2007 10550 13771.40
11/30/2007 10133 13195.62
12/31/2007 10051 13104.04
1/31/2008 9586 12318.06
2/29/2008 9254 11917.85
3/31/2008 9274 11866.36
4/30/2008 9593 12444.26
5/31/2008 9799 12605.41
6/30/2008 8934 11542.77
7/31/2008 8841 11445.70
8/31/2008 9014 11611.20
9/30/2008 8183 10576.53
10/31/2008 6721 8800.20
11/30/2008 6142 8168.79
12/31/2008 6248 8255.70
1/31/2009 5761 7559.86
2/28/2009 5092 6754.89
3/31/2009 5558 7346.58
4/30/2009 5998 8049.72
5/31/2009 6404 8499.95
6/30/2009 6410 8516.78
7/31/2009 6823 9160.98
8/31/2009 7046 9491.70
9/30/2009 7215 9845.93
Class A Class B Class C++ Class I
------------------ ------------------ ------------------ ------------------
Growth Average Average Average Average
and Income Annual Cumulative Annual Cumulative Annual Cumulative Annual Cumulative
Fund Return Return+ Return Return+ Return Return+ Return Return+
- ----------------- ------- ---------- ------- ---------- ------- ---------- ------- ----------
1 Year Return -16.89% -11.83% -16.01% -12.52% -13.27% -12.40% -11.51% -11.51%
- ---------------------------------------------------------------------------------------------
5 Year Return -1.83% -3.30% -1.75% -6.58% -1.31% -6.36% -0.44% -2.17%
- ---------------------------------------------------------------------------------------------
10 Year Return -3.21% -23.45% -3.15% -27.40% -3.27% -28.30% N/A N/A
- ---------------------------------------------------------------------------------------------
Since Inception* 5.22% 130.44% 5.30% 119.64% -0.70% -7.85% -1.21% -9.10%
- ---------------------------------------------------------------------------------------------
+ Cumulative returns do not include sales load. If sales load had been
included, the return would have been lower.
* Inception date: Class A: 07/01/94; Class B: 07/06/94; Class C: 02/02/98;
Class I: 11/16/01.
# For the purposes of the graph, it has been assumed that the maximum sales
charge of 5.75% of offering price, was deducted from the initial $10,000
investment in the Fund. For purposes of the table, it has been assumed that
the maximum sales charge with respect to the Class A shares, was deducted
from the initial investment in the Fund and that the CDSCs with respect to
the Class B and Class C shares have been deducted, as applicable.
++ Effective February 23, 2004, Class II shares were redesignated as Class C
shares.
For the 12 month period ended September 30, 2009, the SunAmerica Growth and
Income Class A returned -16.89% compared to -6.91% for the S&P 500 Index. (The
performance data and graph do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.)
- --------
Performance data quoted represents past performance and is no guarantee of
future results. Maximum Sales Charge: Class A: 5.75%, Class B: 4.00% Contingent
Deferred Sales Charge (CDSC), Class C: 1.00% CDSC. The fund's daily net assets
values are not guaranteed and shares are not insured by the FDIC, the Federal
Reserve Board or any other agency. The investment return and principal value of
an investment will fluctuate so that an investor's shares, when redeemed, may
be higher or lower than the original cost. Current performance may be higher or
lower than that shown. Performance as of the most recent month end is available
at www.sunamericafunds.com.
115
SunAmerica Equity Funds
COMPARISONS: FUNDS vs. INDEXES -- (unaudited) (continued)
SunAmerica Balanced Assets Fund
For the annual period ended September 30, 2009, the SunAmerica Balanced Assets
Fund's Class A shares returned -1.77% before maximum sales charge. At the end
of the annual period, the Fund held 61% of its total portfolio in equities and
39% in fixed-income securities. The Fund's equity benchmark, the S&P 500
Index*, returned -6.91% during this same period, whereas its fixed-income
benchmark, the Barclays Capital U.S. Aggregate Bond Index**, returned 10.56%
for the same period.
Not surprisingly, the first part of the annual reporting period (October 2008
through March 2009) was marred by the extraordinary economic circumstances,
which presented a significant drag on performance. Accordingly, the portfolio
managers sought to maintain a relatively defensive posture and as the stock
market improved, the Fund's Class A shares returned 15.76% (before maximum
sales charge) for the calendar year-to-date period through September 30, 2009,
while the Fund's equity and fixed income benchmarks returned 19.26% and 5.72%,
respectively.
Overall, it was a challenging year for U.S. equities, as economic conditions
and credit markets deteriorated in the first half of the annual period,
culminating in the S&P 500 setting a multi-year low in mid-March. The third
fiscal quarter brought a belief that the economy had bottomed and was on its
way to a sustainable rally. Additionally, several government initiatives to
reform regulation of the financial markets also buoyed market sentiment. The
recovery in equity markets that began in the spring accelerated during the
final three months of the fiscal year as the Dow Jones Industrial Average
(DJIA) rose 15% during this period.
While equity markets ended the annual period on a strong note, it was not
enough to erase the losses generated during the first six months of the period,
as nearly every major domestic stock index finished the annual period with
negative returns. In terms of Lipper categories, Mid-Cap Value was the
top-performer, returning -2.32%, while Large-Cap Value was the principal
laggard, returning -7.88%.
The primary cause of the Fund's equity holdings' underperformance relative to
its benchmark was underweight exposure and stock selection in the Materials,
Energy, and Financials sectors. Conversely, the Fund's equity holdings were
aided by positive security selection in the Utilities, Industrials, Consumer
Discretionary, and Consumer Staples sectors. An Industrials underweight and a
4% average cash position also mitigated losses.
Apple Inc., Financial Select Sector SPDR Fund, Coach Inc., Google Inc., and
eBay Inc. led the list of top equity contributors. The positions which
detracted most significantly from the Fund's performance included several
financial institutions such as Citigroup Inc., Bank of America Corp., U.S.
Bancorp, and State Street Corp. ConocoPhillips, an integrated oil producer, was
another principal detractor.
The performance of the Fund's fixed income holdings was affected by the
volatile market conditions witnessed over the last 12 months. Both the income
generated by the portfolio's fixed income holdings and sector selection were
positive contributors. Specifically, the Fund's overweight in the Banking
sector was a positive contributor. Also of benefit were positions in Federal
Home Loan Mortgage Corporation MBS securities and Finance sector. The
portfolio's underweight in U.S. Agency debt and positions in Telecom were
negative contributors.
Security selection overall proved to be a negative contributor during the
period. Negative contributors to security selection metrics included names such
as Providian, Smurfit Stone and Atlas Air. Positive contributors to performance
during the period included exposures in Republic of Argentina, Westpac Bank and
Goldman Sachs.
- --------
Past performance is no guarantee of future results.
* The S&P 500 Index is Standard & Poor's 500 Composite Stock Price Index, a
widely recognized, unmanaged index of common stock prices. Indices are not
managed and an investor cannot invest directly into an index.
** The Barclays Capital U.S. Aggregate Bond Index represents securities that
are U.S. domestic, taxable and dollar denominated. The index covers
components for government and corporate securities, mortgage pass-through
securities and asset-backed securities. Indices are not managed and an
investor cannot invest directly into an index.
Securities listed may or may not be a part of current portfolio construction.
116
SunAmerica Equity Funds
COMPARISONS: FUNDS vs. INDEXES -- (unaudited) (continued)
Over the past ten years, $10,000 invested in Balanced Assets Fund Class A
shares would be valued at $8,363. The same amount invested in securities
mirroring the performance of the S&P 500 Index and the Barclays Capital U.S.
Aggregate Bond Index would be valued at $9,846 and $18,413, respectively.
[CHART]
Barclays Capital
Balanced Assets U.S. Aggregate
Class A/#/ Bond Index S&P 500 Index
-------- ---------- -------------
9/30/1999 $9,424 $10,000.00 $10,000.00
10/31/1999 9,855 10,037.00 10,632.55
11/30/1999 10,066 10,036.00 10,849.10
12/31/1999 10,853 9,987.82 11,487.68
1/31/2000 10,538 9,954.86 10,910.54
2/29/2000 10,765 10,075.32 10,704.00
3/31/2000 11,324 10,208.31 11,751.18
4/30/2000 10,703 10,178.71 11,397.58
5/31/2000 10,330 10,173.62 11,163.71
6/30/2000 10,826 10,385.23 11,438.89
7/31/2000 10,780 10,479.74 11,260.21
8/31/2000 11,548 10,631.69 11,959.59
9/30/2000 10,903 10,698.67 11,328.24
10/31/2000 10,362 10,769.28 11,280.32
11/30/2000 9,618 10,945.90 10,390.98
12/31/2000 9,805 11,149.49 10,441.79
1/31/2001 9,922 11,331.23 10,812.27
2/28/2001 9,215 11,429.81 9,826.41
3/31/2001 8,770 11,486.96 9,203.90
4/30/2001 9,127 11,438.71 9,919.14
5/31/2001 9,104 11,507.35 9,985.60
6/30/2001 8,926 11,551.07 9,742.55
7/31/2001 8,826 11,809.82 9,646.68
8/31/2001 8,385 11,945.63 9,042.80
9/30/2001 7,812 12,084.20 8,312.59
10/31/2001 8,066 12,336.76 8,471.11
11/30/2001 8,473 12,166.51 9,120.93
12/31/2001 8,404 12,089.17 9,200.83
1/31/2002 8,220 12,187.04 9,066.59
2/28/2002 8,102 12,305.14 8,891.79
3/31/2002 8,189 12,100.48 9,226.21
4/30/2002 7,969 12,335.14 8,666.82
5/31/2002 7,868 12,439.93 8,602.95
6/30/2002 7,580 12,547.55 7,990.07
7/31/2002 7,312 12,698.90 7,367.25
8/31/2002 7,395 12,913.28 7,415.65
9/30/2002 7,058 13,122.46 6,609.72
10/31/2002 7,160 13,062.64 7,191.50
11/30/2002 7,310 13,059.19 7,614.80
12/31/2002 7,058 13,328.91 7,167.43
1/31/2003 6,914 13,340.31 6,980.03
2/28/2003 6,908 13,524.98 6,875.15
3/31/2003 6,915 13,514.52 6,941.71
4/30/2003 7,229 13,626.07 7,513.23
5/31/2003 7,458 13,880.13 7,908.70
6/30/2003 7,470 13,852.56 8,009.74
7/31/2003 7,440 13,386.84 8,151.02
8/31/2003 7,536 13,475.69 8,309.67
9/30/2003 7,527 13,832.38 8,221.69
10/31/2003 7,836 13,703.46 8,686.54
11/30/2003 7,872 13,736.22 8,762.88
12/31/2003 8,058 13,876.00 9,222.13
1/31/2004 8,131 13,987.66 9,391.37
2/29/2004 8,221 14,139.01 9,521.86
3/31/2004 8,139 14,245.00 9,378.18
4/30/2004 7,969 13,874.31 9,231.22
5/31/2004 7,993 13,818.78 9,357.87
6/30/2004 8,119 13,896.87 9,539.79
7/31/2004 7,936 14,034.62 9,224.02
8/31/2004 7,979 14,302.36 9,261.29
9/30/2004 8,074 14,341.14 9,361.59
10/31/2004 8,160 14,461.39 9,504.61
11/30/2004 8,313 14,346.04 9,889.05
12/31/2004 8,529 14,478.07 10,225.57
1/31/2005 8,418 14,568.92 9,976.38
2/28/2005 8,486 14,482.99 10,186.28
3/31/2005 8,331 14,408.54 10,005.98
4/30/2005 8,244 14,603.53 9,816.17
5/31/2005 8,405 14,761.52 10,128.22
6/30/2005 8,399 14,842.02 10,142.74
7/31/2005 8,566 14,707.01 10,519.77
8/31/2005 8,541 14,895.54 10,423.73
9/30/2005 8,546 14,741.98 10,508.11
10/31/2005 8,421 14,625.36 10,332.94
11/30/2005 8,620 14,690.08 10,723.73
12/31/2005 8,615 14,829.66 10,727.38
1/31/2006 8,734 14,830.57 11,011.42
2/28/2006 8,747 14,879.75 11,041.20
3/31/2006 8,774 14,733.76 11,178.66
4/30/2006 8,812 14,707.09 11,328.79
5/31/2006 8,648 14,691.34 11,002.74
6/30/2006 8,636 14,722.52 11,017.66
7/31/2006 8,711 14,921.55 11,085.62
8/31/2006 8,882 15,150.02 11,349.38
9/30/2006 9,050 15,283.09 11,641.85
10/31/2006 9,247 15,384.21 12,021.21
11/30/2006 9,361 15,562.71 12,249.81
12/31/2006 9,432 15,472.35 12,421.65
1/31/2007 9,540 15,465.97 12,609.50
2/28/2007 9,445 15,704.47 12,362.87
3/31/2007 9,509 15,704.98 12,501.15
4/30/2007 9,803 15,789.67 13,054.89
5/31/2007 10,014 15,669.94 13,510.44
6/30/2007 9,897 15,623.62 13,285.99
7/31/2007 9,724 15,753.95 12,874.06
8/31/2007 9,865 15,947.05 13,067.04
9/30/2007 10,188 16,067.99 13,555.73
10/31/2007 10,298 16,212.34 13,771.40
11/30/2007 10,027 16,503.87 13,195.62
12/31/2007 9,980 16,550.25 13,104.04
1/31/2008 9,559 16,828.33 12,318.06
2/29/2008 9,346 16,851.62 11,917.85
3/31/2008 9,257 16,909.10 11,866.36
4/30/2008 9,524 16,873.79 12,444.26
5/31/2008 9,641 16,750.04 12,605.41
6/30/2008 9,105 16,736.61 11,542.77
7/31/2008 9,026 16,722.93 11,445.70
8/31/2008 9,164 16,881.58 11,611.20
9/30/2008 8,514 16,654.86 10,576.53
10/31/2008 7,471 16,261.74 8,800.20
11/30/2008 7,110 16,791.05 8,168.79
12/31/2008 7,225 17,417.55 8,255.70
1/31/2009 6,906 17,263.83 7,559.86
2/28/2009 6,508 17,198.64 6,754.89
3/31/2009 6,824 17,437.73 7,346.58
4/30/2009 7,184 17,521.19 8,049.72
5/31/2009 7,498 17,648.24 8,499.95
6/30/2009 7,590 17,748.55 8,516.78
7/31/2009 7,966 18,034.89 9,160.98
8/31/2009 8,153 18,221.62 9,491.70
9/30/2009 8,363 18,413.07 9,845.93
Class A Class B Class C++ Class I
------------------ ------------------ ------------------ ------------------
Balanced Average Average Average Average
Assets Annual Cumulative Annual Cumulative Annual Cumulative Annual Cumulative
Fund Return Return+ Return Return+ Return Return+ Return Return+
- ----------------- ------- ---------- ------- ---------- ------- ---------- ------- ----------
1 Year Return -7.41% -1.77% -6.33% -2.50% -3.42% -2.46% -1.40% -1.40%
- ---------------------------------------------------------------------------------------------
5 Year Return -0.47% 3.58% -0.35% 0.16% 0.04% 0.20% 1.00% 5.08%
- ---------------------------------------------------------------------------------------------
10 Year Return -1.77% -11.25% -1.76% -16.24% -1.83% -16.90% N/A N/A
- ---------------------------------------------------------------------------------------------
Since Inception* 4.01% 99.24% 7.10% 443.63% -1.63% -16.11% 0.15% 1.15%
- ---------------------------------------------------------------------------------------------
+ Cumulative returns do not include sales load. If sales load had been
included, the return would have been lower.
* Inception date: Class A: 09/24/93; Class B: 01/29/85; Class C: 02/02/99;
Class I: 11/16/01.
# For the purposes of the graph, it has been assumed that the maximum sales
charge of 5.75% of offering price, was deducted from the initial $10,000
investment in the Fund. For purposes of the table, it has been assumed that
the maximum sales charge with respect to the Class A shares, was deducted
from the initial investment in the Fund and that the CDSCs with respect to
the Class B and Class C shares have been deducted, as applicable.
++ Effective February 23, 2004, Class II shares were redesignated as Class C
shares.
For the 12 month period ended September 30, 2009, the SunAmerica Balanced
Assets Class A returned -7.41% compared to -6.91% for the S&P 500 Index and
10.56% for the Barclays Capital U.S. Aggregate Bond Index. (The performance
data and graph do not reflect the deduction of taxes that a shareholder would
pay on fund distributions or the redemption of fund shares.)
- --------
Performance data quoted represents past performance and is no guarantee of
future results. Maximum Sales Charge: Class A: 5.75%, Class B: 4.00% Contingent
Deferred Sales Charge (CDSC), Class C: 1.00% CDSC. The fund's daily net assets
values are not guaranteed and shares are not insured by the FDIC, the Federal
Reserve Board or any other agency. The investment return and principal value of
an investment will fluctuate so that an investor's shares, when redeemed, may
be higher or lower than the original cost. Current performance may be higher or
lower than that shown. Performance as of the most recent month end is available
at www.sunamericafunds.com.
117
SunAmerica Equity Funds
COMPARISONS: FUNDS vs. INDEXES -- (unaudited) (continued)
SunAmerica International Equity Fund
For the annual period ended September 30, 2009, the SunAmerica International
Equity Fund's Class A shares returned -4.28% (before maximum sales charge),
underperforming its MSCI All Country World ex-U.S. Index (Gross)* benchmark,
which returned 6.43% during the same period.
Not surprisingly, the first part of the annual reporting period (October 2008
through March 2009) was marred by the extraordinary economic circumstances,
which presented a significant drag on performance. Accordingly, the portfolio
managers sought to maintain a relatively defensive posture and as the stock
market improved, the Fund's Class A shares returned 29.68% (before maximum
sales charge) for the calendar year-to-date period through September 30, 2009,
while the benchmark returned 36.95%.
The events of the last 12 months were truly unparalleled for global equity
markets. The collapse of various financial institutions, unemployment levels
reaching all-time highs and negative growth for most developed economies sent
stock markets tumbling to percentage losses not seen since the Great
Depression. Global equity markets bottomed in early March and staged a
significant rally to date on the back of major government stimulus packages and
signs of a stabilizing economy.
Over the last 12 months equity markets have experienced unprecedented
volatility. Large percentage swings were common, particularly in lower-quality
speculative names found in the index. These more speculative names did not have
the fundamental support we require to enter the Fund.
The movements of individual stocks were the main drivers of performance. Our
intent is to find the best stocks in our investment universe that have the
potential to generate positive alpha. During the annual period, stock selection
in Japan, Canada, Switzerland and France detracted. Stocks that hurt our
performance most over the annual period include Lonza Group, Alapis, AXA, Royal
Bank of Scotland and Orix Corporation. The investment thesis behind these
stocks that led to our initial investment did not materialize or lead to the
positive performance that was anticipated.
Contributors to Fund's positive performance over the annual period included an
underweight and stock selection in Germany, stock selection in Taiwan and
overweighting Israel.
- --------
Past performance is no guarantee of future results.
Investing internationally involves special risks, such as currency
fluctuations, and economic and political instability. Diversification does not
insure against market loss.
* The Morgan Stanley Capital International (MSCI) All Country World ex-U.S.
Index (Gross) is a free float-adjusted market capitalization-weighted index
designed to measure the equity market performance of 47 global developed and
emerging markets, excluding the U.S. Indices are not managed and an investor
cannot invest directly into an index.
Securities listed may or may not be a part of current portfolio construction.
118
SunAmerica Equity Funds
COMPARISONS: FUNDS vs. INDEXES -- (unaudited) (continued)
Over the past ten years, $10,000 invested in International Equity Fund Class A
shares would be valued at $9,723. The same amount invested in securities
mirroring the performance of the MSCI All Country World ex-U.S. Index (Gross)
would be valued at $15,439.
[CHART]
MSCI All Country
International World ex-U.S. Daily
Equity Class A/#/ Total Return Index (Gross)
------------------ --------------------------
9/30/1999 $ 9,423 $10,000.00
10/31/1999 9,801 10,363.63
11/30/1999 10,557 10,772.83
12/31/1999 12,089 11,794.01
1/31/2000 11,388 11,144.49
2/29/2000 12,254 11,441.98
3/31/2000 12,076 11,884.81
4/30/2000 11,230 11,227.15
5/31/2000 10,907 10,954.10
6/30/2000 11,354 11,422.78
7/31/2000 11,024 10,966.88
8/31/2000 11,265 11,104.19
9/30/2000 10,481 10,487.58
10/31/2000 9,924 10,147.33
11/30/2000 9,375 9,686.87
12/31/2000 9,665 10,011.88
1/31/2001 9,628 10,162.06
2/28/2001 8,829 9,357.53
3/31/2001 8,052 8,696.08
4/30/2001 8,545 9,287.53
5/31/2001 8,216 9,031.06
6/30/2001 7,902 8,684.69
7/31/2001 7,671 8,491.46
8/31/2001 7,424 8,280.57
9/30/2001 6,521 7,402.09
10/31/2001 6,633 7,609.48
11/30/2001 6,677 7,957.52
12/31/2001 6,775 8,060.03
1/31/2002 6,603 7,714.84
2/28/2002 6,707 7,770.40
3/31/2002 6,984 8,192.50
4/30/2002 6,991 8,245.73
5/31/2002 7,073 8,335.55
6/30/2002 6,804 7,975.63
7/31/2002 6,080 7,198.36
8/31/2002 5,960 7,198.81
9/30/2002 5,228 6,435.95
10/31/2002 5,505 6,781.22
11/30/2002 5,736 7,107.32
12/31/2002 5,550 6,877.71
1/31/2003 5,393 6,636.26
2/28/2003 5,326 6,501.80
3/31/2003 5,221 6,375.68
4/30/2003 5,639 6,990.03
5/31/2003 5,945 7,435.34
6/30/2003 6,095 7,641.14
7/31/2003 6,282 7,844.75
8/31/2003 6,461 8,078.51
9/30/2003 6,521 8,304.70
10/31/2003 6,946 8,843.04
11/30/2003 7,051 9,035.86
12/31/2003 7,614 9,725.71
1/31/2004 7,651 9,881.91
2/29/2004 7,681 10,133.17
3/31/2004 7,763 10,195.52
4/30/2004 7,517 9,878.65
5/31/2004 7,494 9,909.91
6/30/2004 7,681 10,124.70
7/31/2004 7,382 9,829.65
8/31/2004 7,449 9,908.36
9/30/2004 7,621 10,226.93
10/31/2004 7,913 10,582.62
11/30/2004 8,406 11,317.16
12/31/2004 8,802 11,803.08
1/31/2005 8,660 11,599.80
2/28/2005 9,071 12,171.95
3/31/2005 8,809 11,841.78
4/30/2005 8,682 11,549.74
5/31/2005 8,690 11,622.10
6/30/2005 8,809 11,840.84
7/31/2005 9,130 12,277.72
8/31/2005 9,497 12,591.94
9/30/2005 9,743 13,241.46
10/31/2005 9,504 12,759.41
11/30/2005 9,795 13,188.40
12/31/2005 10,535 13,822.94
1/31/2006 11,312 14,786.72
2/28/2006 11,125 14,744.03
3/31/2006 11,507 15,172.28
4/30/2006 12,201 15,954.60
5/31/2006 11,731 15,219.04
6/30/2006 11,559 15,203.86
7/31/2006 11,641 15,359.40
8/31/2006 11,895 15,794.74
9/30/2006 11,843 15,804.99
10/31/2006 12,179 16,448.57
11/30/2006 12,515 17,045.76
12/31/2006 12,844 17,576.97
1/31/2007 12,941 17,642.62
2/28/2007 12,904 17,750.42
3/31/2007 13,232 18,250.54
4/30/2007 13,658 19,096.87
5/31/2007 13,942 19,620.31
6/30/2007 14,122 19,787.42
7/31/2007 13,935 19,731.01
8/31/2007 13,778 19,428.06
9/30/2007 14,794 20,714.61
10/31/2007 15,743 21,870.89
11/30/2007 14,861 20,888.14
12/31/2007 14,779 20,586.21
1/31/2008 13,138 18,594.31
2/29/2008 13,424 19,133.17
3/31/2008 13,317 18,720.59
4/30/2008 14,240 19,872.68
5/31/2008 14,509 20,217.05
6/30/2008 13,440 18,559.96
7/31/2008 12,770 17,896.20
8/31/2008 12,003 17,063.87
9/30/2008 10,157 14,505.91
10/31/2008 7,741 11,313.37
11/30/2008 7,251 10,663.57
12/31/2008 7,498 11,273.17
1/31/2009 6,734 10,279.55
2/28/2009 6,180 9,323.38
3/31/2009 6,541 10,076.07
4/30/2009 7,297 11,461.75
5/31/2009 8,405 13,030.65
6/30/2009 8,279 12,890.98
7/31/2009 8,984 14,155.15
8/31/2009 9,161 14,681.84
9/30/2009 9,723 15,439.09
Class A Class B Class C++ Class I
------------------ ------------------ ------------------ ------------------
International Average Average Average Average
Equity Annual Cumulative Annual Cumulative Annual Cumulative Annual Cumulative
Fund Return Return+ Return Return+ Return Return+ Return Return+
- ----------------- ------- ---------- ------- ---------- ------- ---------- ------- ----------
1 Year Return -9.79% -4.28% -8.60% -4.85% -5.80% -4.86% -4.12% -4.12%
- ---------------------------------------------------------------------------------------------
5 Year Return 3.76% 27.58% 3.99% 23.62% 4.32% 23.53% 5.11% 28.30%
- ---------------------------------------------------------------------------------------------
10 Year Return -0.28% 3.19% -0.19% -1.84% -0.32% -3.15% N/A N/A
- ---------------------------------------------------------------------------------------------
Since Inception* 0.68% 15.75% 0.75% 10.03% 0.45% 5.76% 4.82% 44.78%
- ---------------------------------------------------------------------------------------------
+ Cumulative returns do not include sales load. If sales load had been
included, the return would have been lower.
* Inception date: Class A and Class B: 11/19/96; Class C: 03/06/97; Class I:
11/16/01.
# For the purposes of the graph, it has been assumed that the maximum sales
charge of 5.75% of offering price, was deducted from the initial $10,000
investment in the Fund. For purposes of the table, it has been assumed that
the maximum sales charge with respect to the Class A shares, was deducted
from the initial investment in the Fund and that the CDSCs with respect to
the Class B and Class C shares have been deducted, as applicable.
++ Effective February 23, 2004, Class II shares were redesignated as Class C
shares.
For the 12 month period ended September 30, 2009, the SunAmerica International
Equity Class A returned -9.79% compared to 6.43% for the MSCI All Country World
ex-U.S. Index (Gross). (The performance data and graph do not reflect the
deduction of taxes that a shareholder would pay on fund distributions or the
redemption of fund shares.)
- --------
Performance data quoted represents past performance and is no guarantee of
future results. Maximum Sales Charge: Class A: 5.75%, Class B: 4.00% Contingent
Deferred Sales Charge (CDSC), Class C: 1.00% CDSC. The fund's daily net assets
values are not guaranteed and shares are not insured by the FDIC, the Federal
Reserve Board or any other agency. The investment return and principal value of
an investment will fluctuate so that an investor's shares, when redeemed, may
be higher or lower than the original cost. Current performance may be higher or
lower than that shown. Performance as of the most recent month end is available
at www.sunamericafunds.com.
119
SunAmerica Equity Funds
COMPARISONS: FUNDS vs. INDEXES -- (unaudited) (continued)
SunAmerica Value Fund
For the annual period ended September 30, 2009, the SunAmerica Value Fund's
Class A shares returned -13.24% (before maximum sales charge), underperforming
its Russell 1000 Value Index* benchmark, which returned -10.62% during the same
period.
Not surprisingly, the first part of the annual reporting period (October 2008
through March 2009) was marred by the extraordinary economic circumstances,
which presented a significant drag on performance. Accordingly, the portfolio
manager sought to maintain a relatively defensive posture and as the stock
market improved, the Fund's Class A shares returned 9.43% (before maximum sales
charge) for the calendar year-to-date period through September 30, 2009, while
the benchmark returned 14.85%.
Although the stock market staged an impressive rally during the second half of
the annual period, it masked the volatile conditions which characterized the
marketplace during the past twelve months. The fiscal year began on a
precarious note as the economy continued to weaken due to slower consumer
spending, contraction of credit, and declining corporate earnings. The first
calendar quarter of 2009 was also a challenging time for investors as Gross
Domestic Product (GDP) contracted sharply, unemployment rose, consumer
confidence plummeted and the equity markets declined.
The U.S. equity markets rebounded significantly during the second half of the
annual period and was driven by improved investor optimism following the
announcement of significant economic stimulus and initiatives. Investors also
responded positively to the stabilization in the credit markets and overall
economy, as well as an improved corporate earnings outlook. Despite the
significant second half 2009 rally, most domestic indices finished the fiscal
year with negative returns.
Stock selection in the Industrials, Utilities, Consumer Staples, and Healthcare
sectors contributed to the Fund's performance. An overweight allocation to the
Information Technology sector also proved beneficial. On the other hand, stock
selection in the Financials, Materials, Energy and Consumer Discretionary
sectors were the largest detractors from the Fund's performance. Underweight
positions in the Materials, Financials and Energy sectors also were detractors
from the Fund's performance relative to the benchmark.
Top-performing investments for the year included Goodrich Corp., eBay Inc.,
Union Pacific Corp., Gap Inc., and Archer Daniels Midland Co. The positions
which detracted most significantly from the Fund's performance included
Citigroup Inc., U.S. Bancorp, ConocoPhillips, Bank of America Corp., and State
Street Corp.
- --------
Past performance is no guarantee of future results.
* The Russell 1000 Value Index measures the performance of those Russell 1000
companies with lower price-to-book ratios and lower forecasted growth values.
The Russell 1000 Index is a comprehensive large-cap index measuring the
performance of the largest 1,000 U.S. incorporated companies. Indices are not
managed and an investor cannot invest directly into an index.
Securities listed may or may not be a part of current portfolio construction.
120
SunAmerica Equity Funds
COMPARISONS: FUNDS vs. INDEXES -- (unaudited) (continued)
Over the past ten years, $10,000 invested in Value Fund Class A shares would
have increased to $14,016. The same amount invested in securities mirroring the
performance of the Russell 1000 Value Index would be valued at $12,916.
[CHART]
Date Value Class A/#/ Russell 1000 Value Index
---- -------------- ------------------------
9/30/1999 $9,424 $10,000.00
10/31/1999 9,779 10,575.55
11/30/1999 9,854 10,492.77
12/31/1999 10,127 10,543.39
1/31/2000 9,829 10,199.53
2/29/2000 9,609 9,441.78
3/31/2000 10,524 10,593.79
4/30/2000 10,414 10,470.42
5/31/2000 10,524 10,580.79
6/30/2000 10,372 10,097.37
7/31/2000 10,256 10,223.70
8/31/2000 10,969 10,792.63
9/30/2000 10,683 10,891.37
10/31/2000 10,841 11,159.07
11/30/2000 10,463 10,744.74
12/31/2000 11,165 11,283.12
1/31/2001 11,419 11,326.45
2/28/2001 10,939 11,011.52
3/31/2001 10,513 10,622.41
4/30/2001 11,028 11,143.34
5/31/2001 11,316 11,393.72
6/30/2001 11,255 11,140.60
7/31/2001 11,316 11,117.34
8/31/2001 11,062 10,671.98
9/30/2001 10,356 9,920.87
10/31/2001 10,362 9,835.48
11/30/2001 11,021 10,407.28
12/31/2001 11,424 10,652.39
1/31/2002 11,302 10,570.32
2/28/2002 11,410 10,587.29
3/31/2002 11,812 11,088.18
4/30/2002 11,554 10,707.92
5/31/2002 11,669 10,761.60
6/30/2002 11,223 10,143.68
7/31/2002 10,605 9,200.73
8/31/2002 10,699 9,270.21
9/30/2002 9,973 8,239.48
10/31/2002 10,512 8,849.91
11/30/2002 10,993 9,407.42
12/31/2002 10,740 8,998.81
1/31/2003 10,454 8,780.95
2/28/2003 10,214 8,546.86
3/31/2003 10,274 8,561.07
4/30/2003 10,995 9,314.63
5/31/2003 11,663 9,915.90
6/30/2003 11,655 10,039.88
7/31/2003 11,715 10,189.38
8/31/2003 11,940 10,348.16
9/30/2003 11,888 10,247.18
10/31/2003 12,256 10,874.31
11/30/2003 12,428 11,021.82
12/31/2003 13,228 11,701.21
1/31/2004 13,244 11,906.96
2/29/2004 13,512 12,162.15
3/31/2004 13,394 12,055.71
4/30/2004 13,394 11,761.07
5/31/2004 13,386 11,881.01
6/30/2004 13,733 12,161.74
7/31/2004 13,551 11,990.42
8/31/2004 13,693 12,160.94
9/30/2004 13,946 12,349.45
10/31/2004 14,198 12,554.75
11/30/2004 14,821 13,189.49
12/31/2004 15,306 13,631.17
1/31/2005 15,120 13,389.20
2/28/2005 15,500 13,832.94
3/31/2005 15,403 13,643.13
4/30/2005 15,147 13,398.78
5/31/2005 15,421 13,721.33
6/30/2005 15,483 13,871.55
7/31/2005 15,800 14,272.88
8/31/2005 15,730 14,210.81
9/30/2005 15,906 14,410.34
10/31/2005 15,562 14,044.35
11/30/2005 16,021 14,503.60
12/31/2005 15,955 14,592.68
1/31/2006 16,288 15,159.44
2/28/2006 16,421 15,251.96
3/31/2006 16,563 15,458.59
4/30/2006 16,953 15,851.43
5/31/2006 16,573 15,451.01
6/30/2006 16,696 15,549.85
7/31/2006 17,134 15,927.77
8/31/2006 17,371 16,194.36
9/30/2006 17,818 16,517.18
10/31/2006 18,340 17,057.84
11/30/2006 18,587 17,447.24
12/31/2006 19,042 17,838.89
1/31/2007 19,159 18,067.02
2/28/2007 18,743 17,785.36
3/31/2007 18,999 18,060.33
4/30/2007 19,779 18,727.71
5/31/2007 20,516 19,403.20
6/30/2007 20,174 18,949.83
7/31/2007 19,554 18,073.51
8/31/2007 20,024 18,276.04
9/30/2007 20,633 18,903.78
10/31/2007 20,580 18,905.87
11/30/2007 19,629 17,981.86
12/31/2007 19,490 17,807.98
1/31/2008 18,742 17,094.71
2/29/2008 17,892 16,378.48
3/31/2008 17,841 16,255.33
4/30/2008 18,399 17,047.71
5/31/2008 18,615 17,020.65
6/30/2008 16,878 15,391.41
7/31/2008 16,878 15,335.85
8/31/2008 17,284 15,596.37
9/30/2008 16,180 14,450.49
10/31/2008 13,670 11,948.93
11/30/2008 12,668 11,092.09
12/31/2008 12,808 11,246.04
1/31/2009 11,470 9,952.87
2/28/2009 10,015 8,623.06
3/31/2009 10,847 9,360.36
4/30/2009 11,639 10,363.71
5/31/2009 12,470 11,004.56
6/30/2009 12,419 10,923.30
7/31/2009 13,198 11,817.38
8/31/2009 13,718 12,435.50
9/30/2009 14,016 12,915.95
Class A Class B Class C++ Class I Class Z
------------------ ------------------ ------------------ ------------------ ------------------
Average Average Average Average Average
Value Annual Cumulative Annual Cumulative Annual Cumulative Annual Cumulative Annual Cumulative
Fund Return Return+ Return Return+ Return Return+ Return Return+ Return Return+
- ----------------- ------- ---------- ------- ---------- ------- ---------- ------- ---------- ------- ----------
1 Year Return -18.24% -13.24% -17.17% -13.78% -14.71% -13.86% -13.15% -13.15% -12.75% -12.75%
- ----------------------------------------------------------------------------------------------------------------
5 Year Return -1.08% 0.51% -0.77% -2.58% -0.54% -2.67% 0.20% 1.01% 0.68% 3.43%
- ----------------------------------------------------------------------------------------------------------------
10 Year Return 3.43% 48.73% 3.51% 41.24% 3.38% 39.49% N/A N/A 4.64% 57.45%
- ----------------------------------------------------------------------------------------------------------------
Since Inception* 5.05% 99.91% 5.11% 89.92% 4.30% 69.67% 3.31% 29.15% 3.34% 45.83%
- ----------------------------------------------------------------------------------------------------------------
+ Cumulative returns do not include sales load. If sales load had been
included, the return would have been lower.
* Inception date: Class A and Class B: 11/19/96; Class C: 03/06/97; Class I:
11/16/01; Class Z: 04/03/98.
# For the purposes of the graph, it has been assumed that the maximum sales
charge of 5.75% of offering price, was deducted from the initial $10,000
investment in the Fund. For purposes of the table, it has been assumed that
the maximum sales charge with respect to the Class A shares, was deducted
from the initial investment in the Fund and that the CDSCs with respect to
the Class B and Class C shares have been deducted, as applicable.
++ Effective February 23, 2004, Class II shares were redesignated as Class C
shares.
For the 12 month period ended September 30, 2009, the SunAmerica Value Class A
returned -18.24% compared to -10.62% for the Russell 1000 Value Index. (The
performance data and graph do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.)
- --------
Performance data quoted represents past performance and is no guarantee of
future results. Maximum Sales Charge: Class A: 5.75%, Class B: 4.00% Contingent
Deferred Sales Charge (CDSC), Class C: 1.00% CDSC. The fund's daily net assets
values are not guaranteed and shares are not insured by the FDIC, the Federal
Reserve Board or any other agency. The investment return and principal value of
an investment will fluctuate so that an investor's shares, when redeemed, may
be higher or lower than the original cost. Current performance may be higher or
lower than that shown. Performance as of the most recent month end is available
at www.sunamericafunds.com.
121
SunAmerica Equity Funds
COMPARISONS: FUNDS vs. INDEXES -- (unaudited) (continued)
SunAmerica Disciplined Growth Fund
For the annual period ended September 30, 2009, the SunAmerica Disciplined
Growth Fund's Class A shares returned -5.42%, (before maximum sales charge),
underperforming its benchmark, the Russell 3000 Growth Index*, which returned
- -2.19% during the same period.
Not surprisingly, the first part of the annual reporting period (October 2008
through March 2009) was marred by the extraordinary economic circumstances,
which presented a significant drag on performance. Accordingly, the portfolio
manager sought to maintain a relatively defensive posture and as the stock
market improved, the Fund's Class A shares returned 20.62% (before maximum
sales charge) for the calendar year-to-date period through September 30, 2009,
while the benchmark returned 27.27%.
Overall, it was a challenging fiscal year for U.S. equities, as deteriorating
corporate profits, tighter credit conditions and slowing consumer spending
trends impaired the domestic economy during the first six months of the annual
period. However, the stock market recovery, which began in the spring,
accelerated in the final fiscal quarter as the Dow Jones Industrial Average
(DJIA) delivered a 15% gain--the largest quarterly gain since the second
quarter of 1997.
Losses were widespread, as nearly every Russell 3000 Growth sector posted
negative returns during the annual period, most notably Energy (6.72% Index
weight) and Financials (4.84% Index weight), which returned -19.67% and
- -11.65%, respectively. The benchmark's largest sector, Information Technology
(26.92% Index weight) was the only positive performer, returning 10.01%.
Stock selection was the primary source of Fund's underperformance relative to
the benchmark during the annual period. Stock selection in the Consumer
Discretionary, Information Technology, and Industrials sectors negatively
impacted performance, as did underweight exposure to the Financials and
Consumer Discretionary sectors. An overweight in the Energy sector also
hindered results. Alternatively, performance benefited from stock selection in
the Healthcare, Telecommunication Services, and Energy sectors. Underweight
exposure to the Utilities sector also proved beneficial.
In terms of individual stock holdings, four technology companies headed the
list of top-contributing holdings during the annual period, including Apple
Inc., International Business Machines Corp., Google Inc., and Microsoft Corp.
Schering-Plough Corp., a leading pharmaceutical producer, also performed well.
On the other hand, investments in Bank of America Corp., Harris Corp.,
ExxonMobil Corp., Rent-A-Center Inc., and Iconix Brand Group Inc. hindered
results.
- --------
Past performance is no guarantee of future results.
* The Russell 3000 Growth Index measures the performance of those Russell 3000
Index companies with higher price-to-book ratios and higher forecasted growth
values. Russell 3000 Index consists of the 3,000 largest U.S. companies based
on total market capitalization. Indices are not managed and an investor
cannot invest directly into an index.
Securities listed may or may not be a part of current portfolio construction.
122
SunAmerica Equity Funds
COMPARISONS: FUNDS vs. INDEXES -- (unaudited) (continued)
Over the past ten years, $10,000 invested in Disciplined Growth Fund Class A
shares would be valued at $7,700. The same amount invested in securities
mirroring the performance of the Russell 3000 Growth Index would be valued at
$7,937.
[CHART]
Disciplined Russell 3000
Growth Class A/#/ Growth Index
---------- ------------
9/30/1999 $9,425 $10000
10/31/1999 9,942 10720.3
11/30/1999 10,175 11335.54
12/31/1999 10,575 12570.26
1/31/2000 10,350 12014.69
2/29/2000 10,262 12765.29
3/31/2000 11,165 13487.23
4/30/2000 10,568 12793.43
5/31/2000 10,233 12116.71
6/30/2000 10,466 13078
7/31/2000 10,466 12492.67
8/31/2000 11,078 13635.82
9/30/2000 10,590 12386.95
10/31/2000 10,590 11771.52
11/30/2000 9,767 10009.42
12/31/2000 9,781 9752.44
1/31/2001 10,117 10434.23
2/28/2001 9,148 8686.92
3/31/2001 8,521 7752.93
4/30/2001 9,192 8731.09
5/31/2001 9,279 8627.03
6/30/2001 9,060 8460.72
7/31/2001 8,988 8213.66
8/31/2001 8,485 7552.3
9/30/2001 7,902 6767.25
10/31/2001 8,041 7140.79
11/30/2001 8,667 7820.88
12/31/2001 8,725 7838.44
1/31/2002 8,434 7690.38
2/28/2002 8,237 7359.22
3/31/2002 8,572 7639.08
4/30/2002 7,917 7047.22
5/31/2002 7,910 6858.99
6/30/2002 7,349 6228.24
7/31/2002 6,766 5843.48
8/31/2002 6,839 5859.72
9/30/2002 6,067 5263.32
10/31/2002 6,555 5732.3
11/30/2002 6,897 6059.49
12/31/2002 6,511 5640.97
1/31/2003 6,307 5503.03
2/28/2003 6,220 5469.95
3/31/2003 6,256 5570.54
4/30/2003 6,773 5989.66
5/31/2003 7,065 6312.64
6/30/2003 7,123 6401.83
7/31/2003 7,225 6583.63
8/31/2003 7,320 6761.05
9/30/2003 7,232 6681.34
10/31/2003 7,640 7071.41
11/30/2003 7,706 7157.17
12/31/2003 8,128 7388.14
1/31/2004 8,223 7556.74
2/29/2004 8,325 7600.18
3/31/2004 8,208 7472.65
4/30/2004 8,084 7363.25
5/31/2004 8,150 7501.17
6/30/2004 8,296 7606.63
7/31/2004 8,063 7155.74
8/31/2004 8,135 7110.91
9/30/2004 8,208 7204.1
10/31/2004 8,274 7321.6
11/30/2004 8,543 7603.9
12/31/2004 8,800 7899.88
1/31/2005 8,573 7628.35
2/28/2005 8,705 7711.54
3/31/2005 8,551 7558.26
4/30/2005 8,360 7385.62
5/31/2005 8,558 7756.29
6/30/2005 8,521 7751.05
7/31/2005 8,726 8144.01
8/31/2005 8,602 8038.25
9/30/2005 8,661 8077.61
10/31/2005 8,478 7979.74
11/30/2005 8,734 8333.22
12/31/2005 8,943 8308.29
1/31/2006 10,429 8511.23
2/28/2006 9,922 8494.73
3/31/2006 10,297 8646.69
4/30/2006 10,694 8633.64
5/31/2006 10,017 8310.76
6/30/2006 9,988 8281.41
7/31/2006 9,605 8099.97
8/31/2006 9,716 8351.41
9/30/2006 9,635 8566.39
10/31/2006 9,870 8888.45
11/30/2006 10,333 9067.9
12/31/2006 10,355 9094.15
1/31/2007 10,539 9322.41
2/28/2007 10,370 9159.14
3/31/2007 10,525 9211.68
4/30/2007 10,760 9629.37
5/31/2007 11,216 9983.26
6/30/2007 11,216 9841.96
7/31/2007 11,216 9658.39
8/31/2007 11,951 9819.67
9/30/2007 12,819 10220.5
10/31/2007 13,606 10577.58
11/30/2007 12,657 10159.43
12/31/2007 12,709 10130.73
1/31/2008 11,253 9329.36
2/29/2008 11,267 9133.2
3/31/2008 10,686 9077.76
4/30/2008 11,495 9553.55
5/31/2008 12,172 9918.64
6/30/2008 11,253 9214.43
7/31/2008 10,260 9067.93
8/31/2008 9,958 9175.34
9/30/2008 8,149 8114.72
10/31/2008 6,715 6659.91
11/30/2008 6,325 6109.84
12/31/2008 6,384 6236.07
1/31/2009 6,104 5923.14
2/28/2009 5,612 5465.49
3/31/2009 6,009 5953.17
4/30/2009 6,524 6547.74
5/31/2009 6,788 6867.05
6/30/2009 6,906 6954.58
7/31/2009 7,325 7451.92
8/31/2009 7,436 7600.25
9/30/2009 7,700 7936.75
Class A Class B Class C++
------------------ ------------------ ------------------
Disciplined Average Average Average
Growth Annual Cumulative Annual Cumulative Annual Cumulative
Fund Return Return+ Return Return+ Return Return+
- ----------------- ------- ---------- ------- ---------- ------- ----------
1 Year Return -10.89% -5.42% -9.85% -6.10% -6.93% -5.99%
- --------------------------------------------------------------------------
5 Year Return -2.44% -6.19% -2.31% -9.20% -1.91% -9.18%
- --------------------------------------------------------------------------
10 Year Return -2.58% -18.29% -2.50% -22.41% -2.63% -23.40%
- --------------------------------------------------------------------------
Since Inception* -2.12% -15.42% -2.06% -19.79% -2.20% -20.95%
- --------------------------------------------------------------------------
+ Cumulative returns do not include sales load. If sales load had been
included, the return would have been lower.
* Inception date: Class A, Class B and Class C: 03/01/99.
# For the purposes of the graph, it has been assumed that the maximum sales
charge of 5.75% of offering price, was deducted from the initial $10,000
investment in the Fund. For purposes of the table, it has been assumed that
the maximum sales charge with respect to the Class A shares, was deducted
from the initial investment in the Fund and that the CDSCs with respect to
the Class B and Class C shares have been deducted, as applicable.
++ Effective February 23, 2004, Class II shares were redesignated as Class C
shares.
For the 12 month period ended September 30, 2009, the SunAmerica Disciplined
Growth Class A returned -10.89% compared to -2.19% for the Russell 3000 Growth
Index. (The performance data and graph do not reflect the deduction of taxes
that a shareholder would pay on fund distributions or the redemption of fund
shares.)
Performance information that includes a period prior to May 15, 2007 reflects
management of the Fund for such period in accordance with the investment goals
and principal investment strategies and techniques ("policies") of the Fund as
a tax managed fund. Accordingly, any such performance information may not
reflect (or may only partially reflect) the management of the Fund in
accordance with its current investment goals and policies, depending on the
period shown.
- --------
Performance data quoted represents past performance and is no guarantee of
future results. Maximum Sales Charge: Class A: 5.75%, Class B: 4.00% Contingent
Deferred Sales Charge (CDSC), Class C: 1.00% CDSC. The fund's daily net assets
values are not guaranteed and shares are not insured by the FDIC, the Federal
Reserve Board or any other agency. The investment return and principal value of
an investment will fluctuate so that an investor's shares, when redeemed, may
be higher or lower than the original cost. Current performance may be higher or
lower than that shown. Performance as of the most recent month end is available
at www.sunamericafunds.com.
123
SunAmerica Equity Funds
COMPARISONS: FUNDS vs. INDEXES -- (unaudited) (continued)
SunAmerica International Small-Cap Fund
For the annual period ended September 30, 2009, the SunAmerica International
Small-Cap Fund's Class A shares returned 0.02% (before maximum sales charge),
underperforming its MSCI EAFE Small Cap Index (Net)* benchmark, which returned
15.46% during the same period.
Not surprisingly, the first part of the annual reporting period (October 2008
through March 2009) was marred by the extraordinary economic circumstances,
which presented a significant drag on performance. Accordingly, the portfolio
managers sought to maintain a relatively defensive posture and as the stock
market improved, the Fund's Class A shares returned 32.17% (before maximum
sales charge) for the calendar year-to-date period through September 30, 2009,
while the benchmark returned 48.31%.
In addition to high levels of market volatility, the annual period that ended
September 30, 2009 was characterized by headline-grabbing macroeconomic and
corporate events. At the onset, a growing credit crisis prompted central
bankers to initiate a series of restorative measures such as concerted interest
rate cuts, economic stimulus packages and nationalization of troubled financial
companies.
The first quarter of 2009 began in a similar vein, as economic uncertainty and
murky earnings forecasts undermined investors' confidence. However, in
mid-March the markets began to rally, following positive pronouncements on the
profitability of certain U.S. banks. At the same time, a number of
financially-distressed companies in the Industrials and Materials sectors held
successful rights issues, removing the immediate threat of bankruptcy, causing
a dramatic rotation out of defensive sectors and into Financials and
lowly-valued economically-sensitive industries.
The market rally continued during the final half of the annual period as
improving economic conditions and earnings outlooks stoked investor confidence
and risk appetite, particularly in the small-cap space. As a consequence,
small-cap stocks outperformed large-caps by a significant margin in Europe and
South-East Asia, whereas in Japan they performed broadly in-line with
large-caps.
Since the equity market rally began in March 2009, stocks with high levels of
operational and financial leverage have been favored by the market, and
significantly out-performed higher quality stocks which were previously more
representative of the Fund's holdings.
The Fund's performance was also affected by sector selection in each of its
regional portions, with the main source of underperformance coming from Europe,
where we were, in retrospect, too defensively positioned at the beginning of
March. In Europe, performance was negatively impacted both by sector allocation
and stock selection in Industrials, Information Technology, and Consumer
Discretionary stocks. The Fund's performance was also affected by country
selection, notably in the United Kingdom (U.K.) where a combination of stock
selection and the weakening currency negatively impacted returns.
Contributors to performance included an overweight position and stock selection
in Japanese Consumer Discretionary stocks, and the South-East Asian Information
Technology, and Consumer Staples sectors. An underweight position in the
Japanese Materials sector was another positive contributor to performance.
In terms of stock selection, top contributors to performance included FP Corp,
(Japan/Materials), Azimut (Italy/Financials), Dai-Ichi Seiko (Japan/Information
Technology), Diasorin (Italy/Healthcare), and Asiainfo Holdings
(China/Information Technology). Conversely, detractors from performance
included Sarantis (Greece/Consumer Staples), Lamprell (UK/Energy), IG Group
(UK/Financials), RPS (UK/Industrials), and QinetiQ (UK/Industrials).
- --------
Past performance is no guarantee of future results.
Investing internationally involves special risks, such as currency
fluctuations, and economic and political instability. Diversification does not
insure against market loss.
* The Morgan Stanley Capital International Europe, Australasia, and the Far
East ("MSCI EAFE") Small Cap Index (Net) is comprised of 40% of the full
market capitalization of the eligible small cap universe with each industry
group and each country in the MSCI EAFE Index. Indices are not managed and an
investor cannot invest directly into an index.
Securities listed may or may not be a part of current portfolio construction.
124
SunAmerica Equity Funds
COMPARISONS: FUNDS vs. INDEXES -- (unaudited) (continued)
Since the Fund's inception on May 2, 2006, $10,000 invested in International
Small-Cap Fund Class A shares would be valued at $6,359. The same amount
invested in securities mirroring the performance of the MSCI EAFE Small-Cap
Index (Net) would be valued at $8,141.
[CHART]
International MSCI EAFE Small-Cap
Small-Cap Class A/#/ Index (Net)
-------------------- -------------------
5/1/2006 $ 9,427 $10,000.00
5/31/2006 8,650 9,308.67
6/30/2006 8,431 9,104.43
7/31/2006 8,213 8,858.49
8/31/2006 8,311 9,106.42
9/30/2006 8,333 9,141.29
10/31/2006 8,673 9,476.29
11/30/2006 8,959 9,883.31
12/31/2006 9,336 10,211.42
1/31/2007 9,578 10,425.07
2/28/2007 9,608 10,599.39
3/31/2007 9,970 10,936.70
4/30/2007 10,294 11,342.32
5/31/2007 10,558 11,424.10
6/30/2007 10,596 11,398.72
7/31/2007 10,603 11,354.40
8/31/2007 10,181 10,768.44
9/30/2007 10,558 10,886.89
10/31/2007 10,988 11,565.22
11/30/2007 10,113 10,733.05
12/31/2007 9,712 10,359.07
1/31/2008 8,675 9,348.05
2/29/2008 8,896 9,744.98
3/31/2008 8,980 9,712.98
4/30/2008 9,163 9,938.55
5/31/2008 9,422 10,105.13
6/30/2008 8,743 9,273.88
7/31/2008 8,195 8,849.97
8/31/2008 7,569 8,510.06
9/30/2008 6,357 7,050.53
10/31/2008 4,711 5,376.59
11/30/2008 4,513 5,138.67
12/31/2008 4,811 5,489.09
1/31/2009 4,559 5,137.59
2/28/2009 4,178 4,662.19
3/31/2009 4,308 4,964.67
4/30/2009 4,628 5,726.90
5/31/2009 5,253 6,539.38
6/30/2009 5,322 6,665.43
7/31/2009 5,825 7,173.99
8/31/2009 5,985 7,754.05
9/30/2009 6,359 8,141
Class A Class B Class C
------------------ ------------------ ------------------
International Average Average Average
Small-Cap Annual Cumulative Annual Cumulative Annual Cumulative
Fund Return Return+ Return Return+ Return Return+
- ----------------- ------- ---------- ------- ---------- ------- ----------
1 Year Return -5.74% 0.02% -4.47% -0.49% -1.60% -0.61%
- --------------------------------------------------------------------------
Since Inception* -12.41% -32.55% -12.20% -33.93% -11.45% -34.01%
- --------------------------------------------------------------------------
+ Cumulative returns do not include sales load. If sales load had been
included, the return would have been lower.
* Inception date: Class A, Class B and Class C: 05/02/06.
# For the purposes of the graph, it has been assumed that the maximum sales
charge of 5.75% of offering price, was deducted from the initial $10,000
investment in the Fund. For purposes of the table, it has been assumed that
the maximum sales charge with respect to the Class A shares, was deducted
from the initial investment in the Fund and that the CDSCs with respect to
the Class B and Class C shares have been deducted, as applicable.
For the 12 month period ended September 30, 2009, the SunAmerica International
Small-Cap Class A returned -5.74% compared to 15.46% for the MSCI EAFE
Small-Cap Index (Net). (The performance data and graph do not reflect the
deduction of taxes that a shareholder would pay on fund distributions or the
redemption of fund shares.)
- --------
Performance data quoted represents past performance and is no guarantee of
future results. Maximum Sales Charge: Class A: 5.75%, Class B: 4.00% Contingent
Deferred Sales Charge (CDSC), Class C: 1.00% CDSC. The fund's daily net assets
values are not guaranteed and shares are not insured by the FDIC, the Federal
Reserve Board or any other agency. The investment return and principal value of
an investment will fluctuate so that an investor's shares, when redeemed, may
be higher or lower than the original cost. Current performance may be higher or
lower than that shown. Performance as of the most recent month end is available
at www.sunamericafunds.com.
125
[LOGO]
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 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 A. Skrehot, 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
Nori L. Gabert, Vice in-formation is also Fund expenses, which
President and available from the EDGAR benefits you and other
Assistant Secretary database on the U.S. shareholders. Unless the
Matthew Hackethal, Securities and Ex-change Funds receive
Anti-Money Laundering Commission's website at instructions to the
Compliance Officer http://www.sec.gov. con-trary, you will only
John E. Smith Jr., receive one copy of the
Assistant Treasurer PROXY VOTING RECORD ON shareholder documents.
SUNAMERICA EQUITY FUNDS The Funds will continue
Investment Adviser Information regarding how to household the
SunAmerica Asset SunAmerica Equity Funds share-holder documents
Management Corp. voted proxies relating to indefinitely, until we
Harborside Financial securities held in are instructed otherwise.
Center SunAmerica Equity Funds If you do not wish to
3200 Plaza 5 during the most recent participate in
Jersey City, NJ twelve month period ended householding, please
07311-4992 June 30 is available, contact Shareholder
once filed with the U.S. Services at (800)
Distributor Securities and Exchange 858-8850 ext. 6010 or
SunAmerica Capital Commission, without send a written request
Services, Inc. charge, upon request, by with your name, the name
Harborside Financial calling (800) 858-8850 or of your fund(s) and your
Center on the U.S. Securities account number(s) to
3200 Plaza 5 and Exchange Commission's SunAmerica Mutual Funds
Jersey City, NJ website at c/o BFDS, P.O. Box
07311-4992 http://www.sec.gov. 219186, Kansas City MO,
64121-9186. We will
DISCLOSURE OF QUARTERLY resume individual
PORTFOLIO HOLDINGS mailings for your account
The Trust is required to within thirty (30) days
file its complete of receipt of your
schedule of portfolio request.
holdings with the U.S.
Securities and Exchange
Commission for its first
and third fiscal quarters
on Form N-Q. The Trust's
Forms N-Q are available
on the U.S. Securities
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).
126
[GRAPHIC]
Go Paperless!!
Did you know that you have the option to
receive your shareholder reports online?
By choosing this convenient service, you will no longer receive paper copies of
Fund documents such as annual reports, semi-annual reports, prospectuses and
proxy statements in the mail. Instead, you are provided with quick and easy
access to this information via the Internet.
Why Choose Electronic Delivery?
It's Quick -- Fund documents will be received faster than via traditional mail.
It's Convenient -- Elimination of bulky documents from personal files.
It's Cost Effective -- Reduction of your Fund's printing and mailing costs.
To sign up for electronic delivery, follow
these simple steps:
1 Go to
www.sunamericafunds.com
2 Click on the link to
"Go Paperless!!"
The email address you provide will be kept strictly confidential. Once your
enrollment has been processed, you will begin receiving email notifications
when anything you receive electronically is available online.
You can return to www.sunamericafunds.com at any time to change your email
address, edit your preferences or to cancel this service if you choose to
resume physical delivery of your Fund documents.
Please note - this option is only available to accounts opened through the
Funds.
For information on receiving this report online, see inside back cover.
For information on receiving this report online, see inside back cover.
Funds distributed by 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
SunAmerica Sales Desk at 800-858-8850, ext. 6003, or at
www.sunamericafunds.com. Read the prospectus carefully before investing.
www.sunamericafunds.com
EQANN - 9/09
[LOGO]
AIG
Sun America
Mutual Funds
Item 2. Code of Ethics
The SunAmerica Equity Funds (the "registrant") has adopted a Code of
Ethics applicable to its Principal Executive and Principal Accounting
Officers pursuant to Section 406 of the Sarbanes-Oxley Act of 2002.
During the fiscal year ended 2009, there were no reportable amendments,
waivers or implicit waivers to a provision of the Code of Ethics that
applies to the registrant's Principal Executive and Principal
Accounting Officers.
Item 3. Audit Committee Financial Expert.
The registrant's Board of Trustees has determined that William J. Shea,
the Chairman of the registrant's Audit Committee, qualifies as an audit
committee financial expert, as defined in the instructions to Item
3(a) of Form N-CSR. Mr. Shea is considered to be "independent" for
purposes of Item 3(a)(2) of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
(a)--(d) Aggregate fees billed to the registrant for the last two
fiscal years for professional services rendered by the registrant's
principal accountant were as follows:
2008 2009
(a) Audit Fees ....................$ 236,700 $ 236,700
(b) Audit-Related Fees ............$ 0 $ 0
(c) Tax Fees ......................$ 0 $ 0
(d) All Other Fees ................$ 0 $ 0
Audit Fees include amounts related to the audit of the registrant's
annual financial statements and services normally provided by the
principal accountant in connection with statutory and regulatory
filings.
Aggregate fees billed to the investment adviser and Adviser Affiliates
(as defined below in Item 4(e)) that are required to be pre-approved
pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X for
the last two fiscal years for services rendered by the registrant's
principal accountant were as follows:
2008 2009
(b) Audit-Related Fees ............$ 0 $ 0
(c) Tax Fees ......................$ 0 $ 0
(d) All Other Fees ................$ 0 $ 0
On December 31, 2007 Ernst & Young, LLP ("E&Y") resigned as principal
accountant for the SunAmerica Equity Funds. On March 5, 2008, the Board
of Trustees of the SunAmerica Equity Funds selected
PricewaterhouseCoopers, LLP as principal accountant.
In addition, E&Y is performing tax services for the registrant. For the
fiscal years ended 2009 and 2008, the fees for these tax services were
$116,075 for each year.
(e) (1) The registrant's audit committee pre-approves all audit services
provided by the registrant's principal accountant for the registrant
and all non-audit services provided by the registrant's principal
accountant for the registrant, its investment adviser and any entity
controlling, controlled by, or under common control with the
investment adviser ("Adviser Affiliates") that provides ongoing
services to the registrant, if the engagement by the investment
adviser or Adviser Affiliate relates directly to the operations and
financial reporting of the registrant. The audit committee has not
presently established any pre-approval policies and procedures that
permit the pre-approval of the above services other than by the full
audit committee. Certain de minimis exceptions are allowed for non-
audit services in accordance with Rule 2-01(c)(7)(i)(C) of Regulation
S-X as set forth in the registrant's audit committee charter.
(2) No services included in (b)-(d) above in connection with fees
billed to the registrant or the investment adviser or Adviser
Affiliates were approved pursuant to paragraph (c)(7)(i)(C) of
Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) The aggregate fees billed for the most recent fiscal year and the
preceding fiscal year by the registrant's principal accountant for
non-audit services rendered to the registrant, its investment adviser,
and Adviser Affiliates that provides ongoing services to the registrant
for 2009 and 2008 were $206,850 and $485,370, respectively.
(h) Non-audit services rendered to the registrant's investment adviser and
any Adviser Affiliate that provides ongoing services to the registrant
that were not pre-approved pursuant to Paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X were considered by the registrant's audit
committee as to whether they were compatible with maintaining the
principal accountant's independence.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. 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
229.407) (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) Code of Ethics applicable to its Principal Executive and
Principle Accounting Officers pursuant to Section 406 of the
Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.406.
Code of Ethics.
(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: December 7, 2009
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: December 7, 2009
By: /s/ Donna M. Handel
-------------------
Donna M. Handel
Treasurer
Date: December 7, 2009