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: March 31, 2012
-------------------------
Item 1. Reports to Stockholders
[GRAPHIC]
SEMI-ANNUAL REPORT 2012
SUNAMERICA
Equity Funds
MARCH 31, 2012 SEMI-ANNUAL REPORT
SUNAMERICA EQUITY FUNDS
SUNAMERICA INTERNATIONAL EQUITY FUND (SIEAX)
SUNAMERICA VALUE FUND (SSVAX)
SUNAMERICA JAPAN FUND (SAESX)
TABLE OF CONTENTS
SHAREHOLDER LETTER.......................................... 2
EXPENSE EXAMPLE............................................. 4
STATEMENT OF ASSETS AND LIABILITIES......................... 6
STATEMENT OF OPERATIONS..................................... 8
STATEMENT OF CHANGES IN NET ASSETS.......................... 9
FINANCIAL HIGHLIGHTS........................................ 10
PORTFOLIO OF INVESTMENTS.................................... 13
NOTES TO FINANCIAL STATEMENTS............................... 22
APPROVAL OF SUBADVISORY AGREEMENT........................... 34
SHAREHOLDER LETTER -- (UNAUDITED)
Dear Shareholders,
We are pleased to present this semi-annual update for the SunAmerica Equity
Funds for the six months ended March 31, 2012. It was a period wherein equity
performance overall reflected optimistic sentiment regarding the global economy
and a reduction in investors' aversion to risk.
U.S. and international equities overall rallied broadly, albeit not steadily,
during the semi-annual period on reduced fears of a contagion effect from the
European sovereign debt crisis and on better than anticipated U.S. economic
data. In the U.S., solid manufacturing activity, robust job growth and a hint
of better news for the housing market buoyed the equity markets. Statements by
the Federal Reserve Board that it had reduced its outlook for near-term
economic growth were offset by its commitment to low interest rates until late
2014. News that U.S. Gross Domestic Product advanced 1.8% in the third quarter
of 2011 and was revised up from 2.8% to 3% for the fourth quarter of 2011
further supported the equity markets. Both the U.S. and international equity
markets also rallied strongly at the end of the semi-annual period after
European authorities set the overall ceiling for the rescue of the region's
indebted nations at $1.1 trillion. Additionally, investors responded favorably
to Spain's proposed budget that cuts spending and raises taxes to try to bring
its deficit under control.
That said, macroeconomic challenges, both domestic and international,
persisted. Among these challenges in the U.S. were the Standard & Poor's
ratings downgrade on several large banks and Washington D.C.'s inability to
reach a plan for deficit reduction. In Europe, credit conditions tightened for
banks, yields on Italian and Spanish government debt hovered near unsustainable
levels, and there were widespread downgrades of sovereign debt by Standard &
Poor's. Japanese equities generally lagged the broader international equity
markets during the fourth quarter of 2011 despite the announcement that its
economy grew at an annualized pace of 6% during the third calendar quarter.
However, Japanese equities then rose during the first quarter of 2012 as the
yen weakened significantly following the Bank of Japan's surprise monetary
policy easing, which was to be accomplished through increased asset purchases.
Against this backdrop, U.S. equities, as measured by the S&P 500(R) Index/*/,
gained 25.89% for the six months ended March 31, 2012. The fourth quarter of
2011 advance of 11.82% was the S&P 500's best quarterly gain since the third
quarter of 2009 and the best fourth quarter since 1999. The first quarter of
2012 surge of 12.59% was the S&P 500's strongest first quarter gain since 1998.
International equities, as measured by the MSCI All Country (AC) World ex-U.S.
Index/*/, lagged the U.S. equity market but still produced strong gains,
advancing 15.55% for the six month period ended March 31, 2012. Within the
equity markets broadly, the more economically-sensitive, cyclical sectors led
the rally. Conversely, the more traditionally defensive sectors were weaker.
Amid these generally supportive conditions, each of the portfolios in the
SunAmerica Equity Funds generated positive gains during the semi-annual period.
The six-month period ended March 31, 2012 was a meaningful one for the
SunAmerica Equity Funds in other ways as well. For example, effective January
27, 2012, the name of the SunAmerica International Small-Cap Fund was changed
to the SunAmerica Japan Fund and certain corresponding changes were made to the
Fund's principal investment strategy and techniques. The principal investment
strategy of the SunAmerica Japan Fund is country-specific investing, and its
principal investment technique is active securities trading of Japanese issuers
and other investments that are tied economically to Japan. Wellington
Management Company LLP serves as the subadviser to the SunAmerica Japan Fund.
In addition, on March 7, 2012, the Board of Trustees of the SunAmerica Equity
Funds approved a change in the SunAmerica International Equity Fund's name to
the SunAmerica International Dividend Strategy Fund along with certain changes
to the Fund's investment goal, principal investment strategy and principal
investment techniques. It is currently expected that these changes will become
effective on or about the end of June 2012. Once these changes become
effective, an updated prospectus reflecting these changes will be mailed to
shareholders of the Fund.
2
On the following pages, you will find detailed financial statements and
portfolio information for each of the SunAmerica Equity Funds.
We thank you for being a part of the SunAmerica Equity Funds. We value your
ongoing confidence in us and look forward to serving your investment needs in
the future. As always, if you have any questions regarding your investments,
please contact your financial adviser or get in touch with us directly at
800-858-8850 or www.safunds.com.
Sincerely,
THE SUNAMERICA EQUITY FUNDS INVESTMENT PROFESSIONALS
Steve Neimeth Jun Oh Robin Thorn
Sarah Kallok Ben Barrett Graeme Bencke
Mike Beaulieu Karen Forte Hiroyuki Saito
Kara Murphy Chris Kagaoan Jay Merchant
Jennifer Coombs
--------
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 U.S. common stock prices. The MORGAN
STANLEY CAPITAL INTERNATIONAL (MSCI) ALL COUNTRY (AC) WORLD EX-U.S. INDEX is
a free float-adjusted market capitalization-weighted index designed to
measure the equity market performance of 44 global developed and emerging
markets, excluding the U.S. Indices are not managed and an investor cannot
invest directly in an index.
3
SUNAMERICA EQUITY FUNDS
EXPENSE EXAMPLE -- MARCH 31, 2012 -- (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 Japan Fund only)
and (2) ongoing costs, including management fees; distribution and service
fees; and other Fund expenses. The Example set forth below is intended to help
you understand your ongoing costs (in dollars) of investing in the Funds and to
compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at October 1, 2011 and
held until March 31, 2012.
ACTUAL EXPENSES
The "Actual" section of the table provides information about actual account
values and actual expenses. You may use the information in these columns,
together with the amount you invested, to estimate the expenses that you paid
over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number in the column under the heading entitled "Expenses Paid During the Six
Months Ended March 31, 2012" to estimate the expenses you paid on your account
during this period. For shareholder accounts in classes other than Class I and
Class Z, the "Expenses Paid During the Six Months Ended March 31, 2012" column
does not include small account fees that may be charged if your account balance
is below $500 ($250 for retirement plan accounts). In addition, the "Expenses
Paid During the Six Months Ended March 31, 2012" 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 March 31, 2012" column
would have been higher and the "Ending Account Value" would have been lower.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The "Hypothetical" section of the table provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is
not the Fund's actual return. The hypothetical account values and expenses may
not be used to estimate the actual ending account balance or expenses you paid
for the period. You may use this information to compare the ongoing costs of
investing in the Funds and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder
reports of other funds. For shareholder accounts in classes other than Class I
and Class Z the "Expenses Paid During the Six Months Ended March 31, 2012"
column does not include small account fees that may be charged if your account
balance is below $500 ($250 for retirement plan accounts). In addition, the
"Expenses Paid During the Six Months Ended March 31, 2012" 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
March 31, 2012" 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 Japan 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.
4
SUNAMERICA EQUITY FUNDS
EXPENSE EXAMPLE -- MARCH 31, 2012 -- (UNAUDITED) (CONTINUED)
ACTUAL HYPOTHETICAL
----------------------------------------- -----------------------------------------
ENDING ACCOUNT
ENDING ACCOUNT EXPENSE PAID VALUE USING EXPENSE PAID
VALUE USING DURING THE A HYPOTHETICAL DURING THE EXPENSE
BEGINNING ACTUAL SIX MONTHS BEGINNING 5% ASSUMED SIX MONTHS RATIO
ACCOUNT VALUE RETURN AT ENDED ACCOUNT VALUE RETURN AT ENDED AS OF
AT OCTOBER 1, MARCH 31, MARCH 31, AT OCTOBER 1, MARCH 31, MARCH 31, MARCH 31,
FUND 2011 2012 2012 2011 2012 2012 2012*
---- ------------- -------------- ------------ ------------- -------------- ------------ ---------
INTERNATIONAL EQUITY FUND
Class A#................ $1,000.00 $1,150.59 $10.22 $1,000.00 $1,015.50 $ 9.57 1.90%
Class B#................ $1,000.00 $1,146.44 $13.68 $1,000.00 $1,012.25 $12.83 2.55%
Class C# ............... $1,000.00 $1,146.59 $13.68 $1,000.00 $1,012.25 $12.83 2.55%
Class I#................ $1,000.00 $1,151.18 $ 9.68 $1,000.00 $1,016.00 $ 9.07 1.80%
VALUE FUND@
Class A................. $1,000.00 $1,268.76 $ 8.79 $1,000.00 $1,017.25 $ 7.82 1.55%
Class B#................ $1,000.00 $1,265.06 $12.91 $1,000.00 $1,013.60 $11.48 2.28%
Class C ................ $1,000.00 $1,265.33 $12.80 $1,000.00 $1,013.70 $11.38 2.26%
Class Z................. $1,000.00 $1,273.36 $ 5.23 $1,000.00 $1,020.40 $ 4.65 0.92%
JAPAN FUND+
Class A#................ $1,000.00 $1,102.38 $ 9.99 $1,000.00 $1,015.50 $ 9.57 1.90%
Class B#................ $1,000.00 $1,099.71 $13.39 $1,000.00 $1,012.25 $12.83 2.55%
Class C# ............... $1,000.00 $1,101.17 $13.39 $1,000.00 $1,012.25 $12.83 2.55%
--------
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 183 days divided by 366
days. These ratios do not reflect transaction costs, including sales charges
on purchase payments, contingent deferred sales charges, redemption fees
(International Equity Fund and Japan Fund only), small account fees and
administrative fees, if applicable to your account. Please refer to your
Prospectus, your retirement plan documents and/or materials from your
financial advisor for more information.
# During the stated period, the investment advisor either waived a portion of
or all of the fees and assumed a portion of or all expenses for the Funds or
through recoupment provisions, recovered a portion of or all fees and
expenses waived or reimbursed in the previous two fiscal years. As a result,
if these fees and expenses had not been waived or assumed, the
"Actual/Hypothetical Ending Account Value" would have been lower and the
"Actual/Hypothetical Expenses Paid During the Six Months Ended March 31,
2012" and the "Expense Ratios" would have been higher. If these fees and
expenses had not been recouped, the "Actual/Hypothetical Ending Account
Value" would have been higher and the "Actual/Hypothetical Expenses Paid
During the Six Months Ended March 31, 2012" and "Expense Ratios" would have
been lower.
+ See Note 1
@ 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:
ACTUAL HYPOTHETICAL
----------------------------------------- -----------------------------------------
ENDING ACCOUNT
ENDING ACCOUNT EXPENSE PAID VALUE USING EXPENSE PAID
VALUE USING DURING THE A HYPOTHETICAL DURING THE EXPENSE
BEGINNING ACTUAL SIX MONTHS BEGINNING 5% ASSUMED SIX MONTHS RATIO
ACCOUNT VALUE RETURN AT ENDED ACCOUNT VALUE RETURN AT ENDED AS OF
AT OCTOBER 1, MARCH 31, MARCH 31, AT OCTOBER 1, MARCH 31, MARCH 31, MARCH 31,
FUND 2011 2012 2012 2011 2012 2012 2012*
---- ------------- -------------- ------------ ------------- -------------- ------------ ---------
VALUE FUND
Class A... $1,000.00 $1,268.76 $ 8.73 $1,000.00 $1,017.30 $ 7.77 1.54%
Class B#.. $1,000.00 $1,265.06 $12.85 $1,000.00 $1,013.65 $11.43 2.27%
Class C .. $1,000.00 $1,265.33 $12.74 $1,000.00 $1,013.75 $11.33 2.25%
Class Z... $1,000.00 $1,273.36 $ 5.17 $1,000.00 $1,020.45 $ 4.60 0.91%
5
SUNAMERICA EQUITY FUNDS
STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2012 -- (UNAUDITED)
INTERNATIONAL
EQUITY VALUE JAPAN
FUND FUND FUND+
------------- ------------ -----------
ASSETS:
Investments at value (unaffiliated)*..................................... $ 70,984,055 $121,332,660 $25,669,453
Repurchase agreements (cost approximates value).......................... 388,000 5,754,000 --
------------ ------------ -----------
Total investments....................................................... 71,372,055 127,086,660 25,669,453
------------ ------------ -----------
Cash..................................................................... 991 10,957 41,026
Foreign cash*............................................................ 544,867 -- 160,622
Receivable for:
Fund shares sold........................................................ 4,060 14,966 --
Dividends and interest.................................................. 461,659 162,908 267,265
Investments sold........................................................ 161,786 2,806,698 694,787
Prepaid expenses and other assets........................................ 615 11,136 223
Due from investment adviser for expense reimbursements/fee waivers....... -- -- 26,974
------------ ------------ -----------
Total assets............................................................. 72,546,033 130,093,325 26,860,350
------------ ------------ -----------
LIABILITIES:
Payable for:
Fund shares redeemed.................................................... 126,467 129,411 30,659
Investments purchased................................................... -- -- 545,186
Investment advisory and management fees................................. 62,139 82,324 25,775
Distribution and service maintenance fees............................... 31,703 51,013 8,356
Transfer agent fees and expenses........................................ 24,726 44,886 6,601
Trustees' fees and expenses............................................. 3,897 5,918 557
Other accrued expenses.................................................. 108,184 54,568 41,210
Accrued foreign tax on capital gains.................................... 67,613 -- --
Due to investment adviser from expense recoupment........................ 9,630 911 --
------------ ------------ -----------
Total liabilities........................................................ 434,359 369,031 658,344
------------ ------------ -----------
Net assets............................................................... $ 72,111,674 $129,724,294 $26,202,006
============ ============ ===========
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $0.01 par value........................... $ 63,176 $ 99,882 $ 37,614
Paid-in capital.......................................................... 168,648,914 202,769,997 25,009,310
------------ ------------ -----------
168,712,090 202,869,879 25,046,924
Accumulated undistributed net investment income (loss)................... (987,133) 276,647 (171,581)
Accumulated undistributed net realized gain (loss) on investments,
futures contracts, options contracts, securities sold short, foreign
exchange transactions................................................... (97,187,869) (83,848,395) 643,141
Unrealized appreciation (depreciation) on investments.................... 1,618,644 10,426,163 679,324
Unrealized foreign exchange gain (loss) on other assets and liabilities.. 23,555 -- 4,198
Accrued capital gains tax on unrealized appreciation (depreciation)...... (67,613) -- --
------------ ------------ -----------
Net assets............................................................... $ 72,111,674 $129,724,294 $26,202,006
============ ============ ===========
*Cost
Investments (unaffiliated).............................................. $ 69,365,411 $110,906,497 $24,990,129
============ ============ ===========
Foreign cash............................................................ $ 543,602 $ -- $ 159,416
============ ============ ===========
--------
+ See Note 1
See Notes to Financial Statements
6
SUNAMERICA EQUITY FUNDS
STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2012 -- (UNAUDITED)
(CONTINUED)
INTERNATIONAL
EQUITY VALUE JAPAN
FUND FUND FUND+
------------- ------------ -----------
CLASS A (UNLIMITED SHARES AUTHORIZED):
Net assets................................................................. $52,858,740 $107,006,230 $25,323,924
Shares of beneficial interest issued and outstanding....................... 4,533,743 8,141,023 3,631,625
Net asset value and redemption price per share............................. $ 11.66 $ 13.14 $ 6.97
Maximum sales charge (5.75% of offering price)............................. 0.71 0.80 0.43
----------- ------------ -----------
Maximum offering price to public........................................... $ 12.37 $ 13.94 $ 7.40
=========== ============ ===========
CLASS B (UNLIMITED SHARES AUTHORIZED):
Net assets................................................................. $ 4,851,337 $ 6,260,803 $ 269,108
Shares of beneficial interest issued and outstanding....................... 452,021 508,791 39,755
Net asset value, offering and redemption price per share (excluding any
applicable contingent deferred sales charge).............................. $ 10.73 $ 12.31 $ 6.77
=========== ============ ===========
CLASS C (UNLIMITED SHARES AUTHORIZED):
Net assets................................................................. $12,945,214 $ 16,321,821 $ 608,974
Shares of beneficial interest issued and outstanding....................... 1,207,903 1,328,543 90,013
Net asset value, offering and redemption price per share (excluding any
applicable contingent deferred sales charge).............................. $ 10.72 $ 12.29 $ 6.77
=========== ============ ===========
CLASS I (UNLIMITED SHARES AUTHORIZED):
Net assets................................................................. $ 1,456,383 $ -- $ --
Shares of beneficial interest issued and outstanding....................... 123,954 -- --
Net asset value, offering and redemption price per share................... $ 11.75 $ -- $ --
=========== ============ ===========
CLASS Z (UNLIMITED SHARES AUTHORIZED):
Net assets................................................................. $ -- $ 135,440 $ --
Shares of beneficial interest issued and outstanding....................... -- 9,803 --
Net asset value, offering and redemption price per share................... $ -- $ 13.82 $ --
=========== ============ ===========
--------
+ See Note 1
See Notes to Financial Statements
7
SUNAMERICA EQUITY FUNDS
STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS ENDED MARCH 31, 2012 --
(UNAUDITED)
INTERNATIONAL
EQUITY VALUE JAPAN
FUND FUND FUND+
------------- ----------- ----------
INVESTMENT INCOME:
Dividends (unaffiliated)............................................... $ 627,277 $ 1,442,343 $ 354,890
Interest (unaffiliated)................................................ 514 205 43
----------- ----------- ----------
Total investment income*............................................. 627,791 1,442,548 354,933
----------- ----------- ----------
EXPENSES:
Investment advisory and management fees................................ 364,566 425,037 161,123
Distribution and service maintenance fees:
Class A.............................................................. 92,868 158,158 47,054
Class B.............................................................. 25,498 34,188 1,565
Class C.............................................................. 66,175 79,863 4,101
Service Fees Class I................................................... 1,889 -- --
Transfer agent fees and expenses:
Class A.............................................................. 72,373 115,807 31,201
Class B.............................................................. 8,822 11,192 1,169
Class C.............................................................. 18,857 21,265 1,749
Class I.............................................................. 1,717 -- --
Registration fees:
Class A.............................................................. 12,054 12,961 6,986
Class B.............................................................. 7,433 6,933 5,828
Class C.............................................................. 6,906 6,437 5,828
Class I.............................................................. 78 -- --
Custodian and accounting fees.......................................... 50,845 26,335 49,888
Reports to shareholders................................................ 19,298 22,957 2,497
Audit and tax fees..................................................... 25,034 20,503 25,903
Legal fees............................................................. 3,117 3,677 11,500
Trustees' fees and expenses............................................ 4,326 6,753 1,388
Interest expense....................................................... 5 1,474 112
Other expenses......................................................... 12,306 10,375 12,695
----------- ----------- ----------
Total expenses before fee waivers, expense reimbursements, expense
recoupments, custody credits and fees paid indirectly............... 794,167 963,915 370,587
Net (Fees waived and expenses reimbursed)/recouped by investment
adviser (Note 3).................................................... (42,641) (5,707) (100,701)
Custody credits earned on cash balances.............................. (17) (4) --
Fees paid indirectly (Note 4)........................................ -- (3,253) --
----------- ----------- ----------
Net expenses......................................................... 751,509 954,951 269,886
----------- ----------- ----------
Net investment income (loss)............................................ (123,718) 487,597 85,047
----------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)**................ (2,744,261) 1,912,886 633,575
Net realized foreign exchange gain (loss) on other assets and
liabilities............................................................ (57,808) -- 112,615
----------- ----------- ----------
Net realized gain (loss) on investments and foreign currencies.......... (2,802,069) 1,912,886 746,190
----------- ----------- ----------
Change in unrealized appreciation (depreciation) on investments
(unaffiliated)......................................................... 13,048,993 25,343,498 2,363,934
Change in unrealized foreign exchange gain (loss) on other assets and
liabilities............................................................ 7,002 -- 10,281
Change in accrued capital gains tax on unrealized appreciation
(depreciation)......................................................... (67,613) -- 10,730
----------- ----------- ----------
Net unrealized gain (loss) on investments and foreign currencies........ 12,988,382 25,343,498 2,384,945
----------- ----------- ----------
Net realized and unrealized gain (loss) on investments and foreign
currencies............................................................. 10,186,313 27,256,384 3,131,135
----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS......... $10,062,595 $27,743,981 $3,216,182
=========== =========== ==========
--------
* Net of foreign withholding taxes on interest and dividends of......... $ 39,672 $ 645 $ 22,646
=========== =========== ==========
** Net of foreign withholding taxes on capital gains of................. $ 869 $ -- $ 15,873
=========== =========== ==========
+ See Note 1
See Notes to Financial Statements
8
SUNAMERICA EQUITY FUNDS
STATEMENT OF CHANGES IN NET ASSETS
INTERNATIONAL EQUITY FUND VALUE FUND
------------------------- --------------------------
FOR THE FOR THE
SIX MONTHS SIX MONTHS
ENDED FOR THE YEAR ENDED FOR THE YEAR
MARCH 31, ENDED MARCH 31, ENDED
2012 SEPTEMBER 30, 2012 SEPTEMBER 30,
(UNAUDITED) 2011 (UNAUDITED) 2011
----------- ------------- ------------ -------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss).................................. $ (123,718) $ 546,579 $ 487,597 $ 856,894
Net realized gain (loss) on investments and foreign
currencies................................................... (2,802,069) 14,263,854 1,912,886 15,983,709
Net unrealized gain (loss) on investments and foreign
currencies................................................... 12,988,382 (22,181,040) 25,343,498 (19,723,223)
----------- ------------ ------------ ------------
Net increase (decrease) in net assets resulting from operations. 10,062,595 (7,370,607) 27,743,981 (2,882,620)
----------- ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Class A)............................... (709,229) (9,532) (898,865) (569,403)
Net investment income (Class B)............................... (35,769) -- (27,012) --
Net investment income (Class C)............................... (92,003) -- (88,986) --
Net investment income (Class I)............................... (19,571) (788) -- --
Net investment income (Class Z)............................... -- -- (3,390) (248,232)
Net realized gain on securities (Class A)..................... -- -- -- --
Net realized gain on securities (Class B)..................... -- -- -- --
Net realized gain on securities (Class C)..................... -- -- -- --
Net realized gain on securities (Class I)..................... -- -- -- --
Net realized gain on securities (Class Z)..................... -- -- -- --
----------- ------------ ------------ ------------
Total distributions to shareholders............................. (856,572) (10,320) (1,018,253) (817,635)
----------- ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS (NOTE 7).................................... (7,215,884) (54,664,911) (13,393,157) (58,976,424)
----------- ------------ ------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS......................... 1,990,139 (62,045,838) 13,332,571 (62,676,679)
NET ASSETS:
Beginning of period............................................. 70,121,535 132,167,373 116,391,723 179,068,402
----------- ------------ ------------ ------------
End of period*.................................................. $72,111,674 $ 70,121,535 $129,724,294 $116,391,723
=========== ============ ============ ============
--------
* Includes accumulated undistributed net investment income
(loss)......................................................... $ (987,133) $ (6,843) $ 276,647 $ 807,303
=========== ============ ============ ============
JAPAN FUND+
-------------------------
FOR THE
SIX MONTHS
ENDED FOR THE YEAR
MARCH 31, ENDED
2012 SEPTEMBER 30,
(UNAUDITED) 2011
----------- -------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss).................................. $ 85,047 $ 8,842
Net realized gain (loss) on investments and foreign
currencies................................................... 746,190 12,891,580
Net unrealized gain (loss) on investments and foreign
currencies................................................... 2,384,945 (16,152,745)
----------- ------------
Net increase (decrease) in net assets resulting from operations. 3,216,182 (3,252,323)
----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Class A)............................... (47,904) (1,290,403)
Net investment income (Class B)............................... -- (10,171)
Net investment income (Class C)............................... -- (27,548)
Net investment income (Class I)............................... -- --
Net investment income (Class Z)............................... -- --
Net realized gain on securities (Class A)..................... (4,495,773) --
Net realized gain on securities (Class B)..................... (55,170) --
Net realized gain on securities (Class C)..................... (160,446) --
Net realized gain on securities (Class I)..................... -- --
Net realized gain on securities (Class Z)..................... -- --
----------- ------------
Total distributions to shareholders............................. (4,759,293) (1,328,122)
----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS (NOTE 7).................................... (4,750,315) (22,530,336)
----------- ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS......................... (6,293,426) (27,110,781)
NET ASSETS:
Beginning of period............................................. 32,495,432 59,606,213
----------- ------------
End of period*.................................................. $26,202,006 $ 32,495,432
=========== ============
--------
* Includes accumulated undistributed net investment income
(loss)......................................................... $ (171,581) $ (208,724)
=========== ============
+ See Note 1
See Notes to Financial Statements
9
SUNAMERICA EQUITY FUNDS
FINANCIAL HIGHLIGHTS
INTERNATIONAL EQUITY FUND
-------------------------
NET GAIN
(LOSS) ON
NET INVESTMENTS DISTRI- NET NET
ASSET NET (BOTH DIVIDENDS BUTIONS ASSET ASSETS
VALUE INVESTMENT REALIZED TOTAL FROM FROM NET FROM 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
-
09/30/07 $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
09/30/10 11.58 (0.01) 0.33 0.32 (0.00) -- (0.06) (0.06) 11.84 2.79 100,990
09/30/11 11.84 0.08 (1.64) (1.56) (0.00) -- -- (0.00) 10.28 (13.17) 50,177
03/31/12(6) 10.28 (0.01) 1.54 1.53 (0.15) -- -- (0.15) 11.66 15.06 52,859
CLASS B
-
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
09/30/10 10.72 (0.09) 0.31 0.22 -- -- -- -- 10.94 2.05 8,815
09/30/11 10.94 (0.02) (1.49) (1.51) -- -- -- -- 9.43 (13.80) 5,130
03/31/12(6) 9.43 (0.04) 1.41 1.37 (0.07) -- -- (0.07) 10.73 14.64 4,851
CLASS C
-
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
09/30/10 10.70 (0.09) 0.32 0.23 -- -- -- -- 10.93 2.15 19,763
09/30/11 10.93 (0.02) (1.49) (1.51) -- -- -- -- 9.42 (13.82) 13,190
03/31/12(6) 9.42 (0.04) 1.41 1.37 (0.07) -- -- (0.07) 10.72 14.66 12,945
CLASS I
-
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
09/30/10 11.67 (0.02) 0.35 0.33 (0.01) -- (0.06) (0.07) 11.93 2.80 2,600
09/30/11 11.93 0.08 (1.65) (1.57) (0.00) -- -- (0.00) 10.36 (13.13) 1,625
03/31/12(6) 10.36 (0.00) 1.54 1.54 (0.15) -- -- (0.15) 11.75 15.12 1,456
RATIO
OF NET
RATIO OF INVESTMENT
EXPENSES INCOME (LOSS)
TO AVERAGE TO AVERAGE PORTFOLIO
NET ASSETS NET ASSETS TURNOVER
---------- ------------- ---------
1.90%(3) 0.13%(3) 132%
1.90(4) 0.98(4) 199
1.89(3)(4) 1.14(3)(4) 431
1.85(4) (0.11)(4) 295
1.84 0.63 262
1.90(3)(7) (0.18)(3)(7) 105
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)(4) (0.86)(3)(4) 295
2.55(3) (0.18)(3) 262
2.55(3)(7) (0.84)(3)(7) 105
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
2.55(3)(4) (0.82)(3)(4) 295
2.55(3) (0.14)(3) 262
2.55(3)(7) (0.83)(3)(7) 105
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
1.80(3)(4) (0.16)(3)(4) 295
1.80(3) 0.59(3) 262
1.80(3)(7) (0.05)(3)(7) 105
--------
(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 3):
09/30/07 09/30/08 09/30/09 09/30/10 09/30/11 03/31/12(6)(7)
-------- -------- -------- -------- -------- --------------
International Equity Class A............ (0.05)% -- % 0.00% -- % -- % 0.08%
International Equity Class B............ 0.04 0.06 0.22 0.11 0.07 0.40
International Equity Class C............ (0.00) 0.01 0.08 0.02 (0.00) 0.15
International Equity Class I............ 0.04 0.09 0.27 0.01 (0.09) 0.01
(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 09/30/10
-------- -------- --------
International Equity Class A............ 0.00% 0.00% 0.01%
International Equity Class B............ 0.00 0.00 0.00
International Equity Class C............ 0.00 0.00 0.01
International Equity Class I............ 0.00 0.00 0.00
(5)Includes the effect of a merger.
(6)Unaudited
(7)Annualized
See Notes to Financial Statements
10
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(4)
------------ --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- -------- -------------
CLASS A
-
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%(3)
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(3)
09/30/09 12.74 0.16 (1.88) (1.72) (0.23) -- (0.23) 10.79 (13.24) 52,112 1.63(3)
09/30/10 10.79 0.14 0.30(5) 0.44 (0.07) -- (0.07) 11.16 4.13 122,673 1.61(3)
09/30/11 11.16 0.08 (0.70) (0.62) (0.06) -- (0.06) 10.48 (5.63) 94,560 1.50(3)
03/31/12(7) 10.48 0.06 2.73 2.79 (0.13) -- (0.13) 13.14 26.88 107,006 1.55(8)
CLASS B
-
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%(3)
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(3)
09/30/09 11.91 0.10 (1.76) (1.66) (0.14) -- (0.14) 10.11 (13.78) 11,213 2.28(3)
09/30/10 10.11 (0.00) 0.35(5) 0.35 (0.02) -- (0.02) 10.44 3.43 12,416 2.28(3)
09/30/11 10.44 (0.01) (0.66) (0.67) -- -- -- 9.77 (6.42) 6,732 2.28(3)
03/31/12(7) 9.77 0.02 2.56 2.58 (0.04) -- (0.04) 12.31 26.51 6,261 2.28(3)(8)
CLASS C
-
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%(3)
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(3)
09/30/09 11.91 0.09 (1.76) (1.67) (0.14) -- (0.14) 10.10 (13.86) 9,386 2.28(3)
09/30/10 10.10 (0.00) 0.35(5) 0.35 (0.02) -- (0.02) 10.43 3.44 21,389 2.28(3)
09/30/11 10.43 (0.01) (0.65) (0.66) -- -- -- 9.77 (6.33) 14,941 2.26(3)
03/31/12(7) 9.77 0.02 2.56 2.58 (0.06) -- (0.06) 12.29 26.53 16,322 2.26(8)
CLASS Z
-
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%(3)
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(3)
09/30/09 13.42 0.22 (1.98) (1.76) (0.30) -- (0.30) 11.36 (12.75) 21,138 1.06(3)
09/30/10 11.36 0.15 0.38(5) 0.53 (0.11) -- (0.11) 11.78 4.72 22,591 0.98(3)
09/30/11 11.78 0.19 (0.77) (0.58) (0.13) -- (0.13) 11.07 (5.03) 159 0.87(3)
03/31/12(7) 11.07 0.11 2.88 2.99 (0.24) -- (0.24) 13.82 27.34 135 0.92(8)
RATIO
OF NET
INVESTMENT
INCOME (LOSS)
TO AVERAGE PORTFOLIO
NET ASSETS(4) TURNOVER
------------- ---------
0.97%(3) 143%
1.23(3) 207
1.68(3) 204
0.64(3) 157(6)
0.67(3) 231
1.00(8) 113
0.31%(3) 143%
0.58(3) 207
1.06(3) 204
(0.02)(3) 157(6)
(0.13)(3) 231
0.27(3)(8) 113
0.32%(3) 143%
0.58(3) 207
1.02(3) 204
(0.02)(3) 157(6)
(0.10)(3) 231
0.28(8) 113
1.54%(3) 143%
1.81(3) 207
2.20(3) 204
1.26(3) 157(6)
1.05(3) 231
1.66(8) 113
--------
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load. Total return
does include expense reimbursements and expense reductions.
(3)Net of the following expense reimbursements (recoupments) (based on average
net assets) (See Note 3):
09/30/07 09/30/08 09/30/09 09/30/10 09/30/11 03/31/12(7)(8)
-------- -------- -------- -------- -------- --------------
Value Class A........................... 0.07% 0.11% 0.21% (0.10)% (0.02)% -- %
Value Class B........................... 0.11 0.14 0.29 0.01 (0.04) 0.17
Value Class C........................... 0.09 0.14 0.28 (0.08) (0.08) --
Value Class Z........................... 0.07 0.10 0.13 (0.09) (0.00) --
(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:
09/30/07 09/30/08 09/30/09 09/30/10 09/30/11 03/31/12(7)(8)
-------- -------- -------- -------- -------- --------------
Value Class A........................... 0.01% 0.03% 0.02% 0.01% 0.01% 0.01%
Value Class B........................... 0.01 0.03 0.02 0.01 0.01 0.01
Value Class C........................... 0.01 0.03 0.02 0.01 0.01 0.01
Value Class Z........................... 0.01 0.03 0.02 0.01 0.00 0.01
(5)Includes the effect of a merger.
(6)Excludes purchases due to a fund merger.
(7)Unaudited
(8)Annualized
See Notes to Financial Statements
11
SUNAMERICA EQUITY FUNDS
FINANCIAL HIGHLIGHTS -- (CONTINUED)
JAPAN FUND
----------
NET GAIN
(LOSS) ON
NET INVESTMENTS DISTRI- NET NET
ASSET NET (BOTH DIVIDENDS BUTIONS ASSET ASSETS
VALUE INVESTMENT REALIZED TOTAL FROM FROM NET FROM 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
09/30/07 $11.05 $(0.04) $ 2.99 $ 2.95 $ -- $ -- $ -- $ -- $14.00 26.70% $30,845
09/30/08 14.00 (0.00) (5.52) (5.52) -- (0.13) (0.01) (0.14) 8.34 (39.79) 16,830
09/30/09 8.34 0.01 (0.01) 0.00 (0.00) -- -- (0.00) 8.34 0.02(4) 68,492
09/30/10 8.34 (0.02) 1.07 1.05 (0.29) -- -- (0.29) 9.10 13.01 58,538
09/30/11 9.10 0.00 (1.11) (1.11) (0.26) -- -- (0.26) 7.73 (12.68) 31,292
03/31/12(5) 7.73 0.02 0.60 0.62 (0.01) (1.37) -- (1.38) 6.97 10.24 25,324
CLASS B
09/30/07 $11.02 $(0.11) $ 2.97 $ 2.86 $ -- $ -- $ -- $ -- $13.88 25.95% $ 1,181
09/30/08 13.88 (0.08) (5.45) (5.53) -- (0.13) (0.01) (0.14) 8.21 (40.21) 633
09/30/09 8.21 (0.04) 0.00 (0.04) -- -- -- -- 8.17 (0.49)(4) 313
09/30/10 8.17 (0.07) 1.04 0.97 (0.22) -- -- (0.22) 8.92 12.16 377
09/30/11 8.92 (0.05) (1.09) (1.14) (0.23) -- -- (0.23) 7.55 (13.24) 316
03/31/12(5) 7.55 (0.00) 0.59 0.59 -- (1.37) -- (1.37) 6.77 9.97 269
CLASS C
09/30/07 $11.02 $(0.12) $ 2.98 $ 2.86 $ -- $ -- $ -- $ -- $13.88 25.95% $ 5,357
09/30/08 13.88 (0.09) (5.44) (5.53) -- (0.13) (0.01) (0.14) 8.21 (40.20) 2,199
09/30/09 8.21 (0.04) (0.01) (0.05) -- -- -- -- 8.16 (0.61)(4) 724
09/30/10 8.16 (0.07) 1.05 0.98 (0.22) -- -- (0.22) 8.92 12.30 691
09/30/11 8.92 (0.04) (1.11) (1.15) (0.23) -- -- (0.23) 7.54 (13.35) 888
03/31/12(5) 7.54 (0.01) 0.61 0.60 -- (1.37) -- (1.37) 6.77 10.12 609
RATIO
OF NET
RATIO OF INVESTMENT
EXPENSES INCOME (LOSS)
TO AVERAGE TO AVERAGE PORTFOLIO
NET ASSETS(3) NET ASSETS(3) TURNOVER
------------- ------------- ---------
1.90% (0.30)% 70%
1.90 (0.04) 93
1.90 0.19 148
1.90 (0.24) 77
1.90 0.04 79
1.90(6) 0.64(6) 139
2.55% (0.89)% 70%
2.55 (0.68) 93
2.55 (0.53) 148
2.55 (0.85) 77
2.55 (0.55) 79
2.55(6) (0.03)(6) 139
2.55% (0.94)% 70%
2.55 (0.78) 93
2.55 (0.58) 148
2.55 (0.86) 77
2.55 (0.48) 79
2.55(6) (0.23)(6) 139
--------
(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 3):
09/30/07 09/30/08 09/30/09 09/30/10 09/30/11 03/31/12(5)(6)
-------- -------- -------- -------- -------- --------------
Japan Class A........................... 0.45% 0.54% 0.31% 0.18% 0.27% 0.63%
Japan Class B........................... 2.10 1.53 4.07 5.60 3.06 4.82
Japan Class C........................... 0.77 0.77 1.68 2.66 1.19 2.18
(4)The Fund's performance was increased by less than 0.01% from gains on
disposal of investments in violation of investment restrictions.
(5)Unaudited
(6)Annualized
See Notes to Financial Statements
12
SUNAMERICA INTERNATIONAL EQUITY FUND
PORTFOLIO PROFILE -- MARCH 31, 2012 -- (UNAUDITED)
INDUSTRY ALLOCATION*
Banks-Commercial....................... 9.3%
Medical-Drugs.......................... 7.5
Insurance-Life/Health.................. 3.9
Electronic Components-Misc............. 3.9
Insurance-Reinsurance.................. 3.8
Oil Companies-Integrated............... 3.7
Telecom Services....................... 3.7
Soap & Cleaning Preparation............ 3.7
Diversified Operations................. 3.7
Medical Products....................... 3.6
Auto-Cars/Light Trucks................. 3.6
Retail-Apparel/Shoe.................... 2.6
Diversified Minerals................... 2.6
Chemicals-Diversified.................. 2.3
Machinery-Construction & Mining........ 2.3
Engineering/R&D Services............... 2.2
Retail-Misc./Diversified............... 2.1
Brewery................................ 2.1
Oil-Field Services..................... 2.0
Diversified Banking Institutions....... 2.0
Retail-Jewelry......................... 2.0
Electronics-Military................... 1.9
Insurance-Multi-line................... 1.9
Building-Heavy Construction............ 1.9
Cellular Telecom....................... 1.8
Food-Retail............................ 1.8
Exchange-Traded Funds.................. 1.8
Oil & Gas Drilling..................... 1.7
Building-Residential/Commercial........ 1.7
Motorcycle/Motor Scooter............... 1.6
Computers-Integrated Systems........... 0.9
Import/Export.......................... 0.9
Finance-Leasing Companies.............. 0.7
Office Automation & Equipment.......... 0.7
Rubber-Tires........................... 0.7
Gas-Distribution....................... 0.6
Tobacco................................ 0.6
Computers-Memory Devices............... 0.6
Transport-Marine....................... 0.5
Repurchase Agreement................... 0.5
Textile-Products....................... 0.5
Oil Companies-Exploration & Production. 0.5
Chemicals-Other........................ 0.4
Audio/Video Products................... 0.4
Insurance-Property/Casualty............ 0.4
Steel-Producers........................ 0.4
Television............................. 0.4
Industrial Automated/Robotic........... 0.3
Chemicals-Plastics..................... 0.3
----
99.0%
====
COUNTRY ALLOCATION*
Japan.......... 16.5%
United Kingdom. 11.6
France......... 7.6
Germany........ 7.5
Switzerland.... 7.4
South Africa... 4.2
Cayman Islands. 3.8
Brazil......... 3.8
Netherlands.... 3.7
Norway......... 3.7
Canada......... 3.7
China.......... 3.5
South Korea.... 3.5
Italy.......... 2.0
Thailand....... 2.0
Hong Kong...... 2.0
Poland......... 1.9
Indonesia...... 1.9
Spain.......... 1.8
Jersey......... 1.8
Taiwan......... 1.6
India.......... 1.6
Mexico......... 1.4
United States.. 0.5
----
99.0%
====
--------
*Calculated as a percentage of net assets
13
SUNAMERICA INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2012 -- (UNAUDITED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
-----------------------------------------------------------------------
COMMON STOCK -- 94.6%
BERMUDA -- 0.0%
Peace Mark Holdings, Ltd.+(1)(2)................ 800,000 $ 0
Peregrine Investments Holdings, Ltd.+(1)(2)..... 91,000 0
-----------
0
-----------
BRAZIL -- 1.7%
MRV Engenharia e Participacoes SA............... 170,300 1,208,132
-----------
CANADA -- 1.9%
Suncor Energy, Inc.............................. 41,247 1,347,676
-----------
CAYMAN ISLANDS -- 3.8%
AAC Technologies Holdings, Inc.................. 486,000 1,317,395
Daphne International Holdings, Ltd.............. 1,066,000 1,452,348
-----------
2,769,743
-----------
CHINA -- 3.5%
Industrial & Commercial Bank of China........... 1,997,000 1,288,379
Zoomlion Heavy Industry Science and Technology
Development Co., Ltd........................... 943,600 1,256,424
-----------
2,544,803
-----------
FRANCE -- 7.6%
LVMH Moet Hennessy Louis Vuitton SA............. 15,324 2,633,386
Safran SA....................................... 38,000 1,396,504
Sanofi.......................................... 18,267 1,418,640
-----------
5,448,530
-----------
GERMANY -- 7.5%
Allianz SE...................................... 11,300 1,348,385
Deutsche Bank AG................................ 28,800 1,432,906
Fresenius SE & Co. KGaA......................... 25,467 2,611,594
-----------
5,392,885
-----------
HONG KONG -- 2.0%
Emperor Watch & Jewellery, Ltd.................. 8,880,000 1,406,520
-----------
INDIA -- 1.6%
Hero Motocorp, Ltd.............................. 28,064 1,131,291
-----------
INDONESIA -- 1.9%
Bank Rakyat Indonesia Persero Tbk PT............ 1,752,000 1,331,627
-----------
ITALY -- 2.0%
Saipem SpA...................................... 28,236 1,458,508
-----------
JAPAN -- 16.5%
Astellas Pharma, Inc............................ 9,100 373,807
Bridgestone Corp................................ 20,400 494,411
Canon, Inc...................................... 10,600 500,737
Chiyoda Corp.................................... 22,000 279,352
Daihatsu Motor Co., Ltd......................... 20,000 366,316
Dainippon Screen Manufacturing Co., Ltd......... 41,000 369,035
FANUC Corp...................................... 1,400 248,302
Inpex Corp...................................... 52 351,190
ITOCHU Techno-Solutions Corp.................... 8,800 393,911
Japan Tobacco, Inc.............................. 78 439,145
Komatsu, Ltd.................................... 13,900 396,159
Mazda Motor Corp.+.............................. 230,000 402,924
Mitsui O.S.K. Lines, Ltd........................ 90,000 391,446
Net One Systems Co., Ltd........................ 25,800 314,512
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
----------------------------------------------------------------------
JAPAN (CONTINUED)
Nippon Television Network Corp.................. 1,600 $ 256,518
Nissan Motor Co., Ltd........................... 60,100 639,702
ORIX Corp....................................... 5,440 519,222
Pioneer Corp.+.................................. 54,000 275,970
Shimamura Co., Ltd.............................. 4,000 447,505
Shizuoka Bank, Ltd.............................. 46,000 473,505
Sumitomo Bakelite Co., Ltd...................... 40,000 210,704
Sumitomo Corp................................... 47,000 679,135
Sumitomo Metal Industries, Ltd.................. 130,000 262,293
Sumitomo Mitsui Financial Group, Inc............ 20,800 684,287
TDK Corp........................................ 7,000 396,641
Tokai Carbon Co., Ltd........................... 60,000 319,681
Tokio Marine Holdings, Inc...................... 10,000 274,375
Tokyo Gas Co., Ltd.............................. 97,000 457,050
Toray Industries, Inc........................... 52,000 385,744
Ube Industries, Ltd............................. 109,000 296,303
-----------
11,899,882
-----------
JERSEY -- 1.8%
Shire PLC....................................... 40,577 1,311,040
-----------
MEXICO -- 1.4%
Genomma Lab Internacional SAB de CV+............ 530,000 969,376
-----------
NETHERLANDS -- 3.7%
ING Groep NV CVA+............................... 154,363 1,286,094
Koninklijke DSM NV.............................. 24,045 1,391,305
-----------
2,677,399
-----------
NORWAY -- 3.7%
Telenor ASA..................................... 142,773 2,647,496
-----------
POLAND -- 1.9%
Bank Pekao SA................................... 27,900 1,391,118
-----------
SOUTH AFRICA -- 4.2%
Mr. Price Group, Ltd............................ 124,139 1,526,694
Sanlam, Ltd..................................... 354,627 1,533,897
-----------
3,060,591
-----------
SOUTH KOREA -- 3.5%
Daelim Industrial Co., Ltd...................... 12,470 1,348,197
Hyundai Motor Co................................ 5,783 1,189,214
-----------
2,537,411
-----------
SPAIN -- 1.8%
Distribuidora Internacional de Alimentacion SA+. 265,000 1,313,701
-----------
SWITZERLAND -- 7.4%
ABB, Ltd.+...................................... 62,428 1,280,787
Roche Holding AG................................ 7,750 1,348,760
Swiss Re AG+.................................... 42,583 2,719,519
-----------
5,349,066
-----------
TAIWAN -- 1.6%
Radiant Opto-Electronics Corp................... 266,000 1,180,640
-----------
THAILAND -- 2.0%
Kasikornbank PCL................................ 284,500 1,420,194
-----------
14
SUNAMERICA INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2012 -- (UNAUDITED) (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
------------------------------------------------------------
COMMON STOCK (CONTINUED)
UNITED KINGDOM -- 11.6%
Anglo American PLC..................... 31,218 $ 1,166,939
Ensco PLC ADR.......................... 23,200 1,227,976
Reckitt Benckiser Group PLC............ 46,803 2,644,855
Royal Dutch Shell PLC, Class A......... 37,500 1,312,861
Vodafone Group PLC..................... 480,608 1,323,758
Xstrata PLC............................ 41,550 709,785
-----------
8,386,174
-----------
TOTAL COMMON STOCK
(cost $66,933,462).................... 68,183,803
-----------
EXCHANGE-TRADED FUNDS -- 1.8%
CANADA -- 1.8%
Horizon S&P/TSX 60 Index ETF+
(cost $1,259,716)..................... 122,382 1,274,800
-----------
PREFERRED STOCK -- 2.1%
BRAZIL -- 2.1%
Companhia de Bebidas das Americas ADR
(cost $1,172,233)..................... 36,918 1,525,452
-----------
TOTAL LONG-TERM INVESTMENT SECURITIES
(cost $69,365,411).................... 70,984,055
-----------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 0.5%
Agreement with State Street Bank and Trust Co.,
bearing interest at 0.01%, dated 03/30/12, to
be repurchased 04/02/12 in the amount of
$388,000 and collateralized by $400,000 of
Federal Home Loan Mtg. Corp., bearing interest
at 0.55% due 02/13/15 and having an
approximate value of $399,500
(cost $388,000)................................. $388,000 $ 388,000
-----------
TOTAL INVESTMENTS --
(cost $69,753,411)(3)........................... 99.0% 71,372,055
Other assets less liabilities...................... 1.0 739,619
-------- -----------
NET ASSETS -- 100.0% $72,111,674
======== ===========
--------
+ Non-income producing security
(1) Fair valued security. Securities are classified as Level 3 based on the
securities valuation inputs; see Note 2.
(2) Illiquid security. At March 31, 2012, the aggregate value of these
securities was $0 representing 0% of net assets.
(3) See Note 6 for cost of investments on a tax basis.
ADR -- AmericanDepository Receipt
CVA -- CertificationVan Aandelen (Dutch Certs.)
ETF -- Exchange-TradedFund
TSX -- TorontoStock Exchange
The following is a summary of the inputs used to value the Fund's net assets as
of March 31, 2012 (see Note 2):
LEVEL 1 -- UNADJUSTED LEVEL 2 -- OTHER LEVEL 3 -- SIGNIFICANT
QUOTED PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS TOTAL
- --------------------- ----------------- ---------------------- -----------
ASSETS:
Long-Term Investment Securities:
Common Stock:
France........................ $ 5,448,530 $ -- $-- $ 5,448,530
Germany....................... 5,392,885 -- -- 5,392,885
Japan......................... 11,899,882 -- -- 11,899,882
Switzerland................... 5,349,066 -- -- 5,349,066
United Kingdom................ 8,386,174 -- -- 8,386,174
Other Countries*.............. 31,707,266 -- 0 31,707,266
Exchange-Traded Funds.......... 1,274,800 -- -- 1,274,800
Preferred Stock................ 1,525,452 -- -- 1,525,452
Repurchase Agreement............. -- 388,000 -- 388,000
----------- -------- --- -----------
TOTAL............................ $70,984,055 $388,000 $ 0 $71,372,055
=========== ======== === ===========
--------
* Sum of all other countries each of which individually has an aggregate
market value of less than 5% of net assets. For a detailed presentation of
common stocks by country, please refer to the Portfolio of Investments.
The following is a reconciliation of Level 3 assets for which significant
unobservable inputs were used to determine fair value:
COMMON STOCK
- ------------
Balance as of 9/30/2011........... $ 0
Accrued discounts................. --
Accrued premiums.................. --
Realized gain..................... --
Realized loss..................... --
Change in unrealized appreciation. --
Change in unrealized depreciation. --
Net purchases..................... --
Net sales......................... --
Transfers into Level 3............ --
Transfers out of Level 3.......... --
---
Balance as of 03/31/2012.......... $ 0
===
See Notes to Financial Statements
15
SUNAMERICA VALUE FUND
PORTFOLIO PROFILE -- MARCH 31, 2012 -- (UNAUDITED)
INDUSTRY ALLOCATION*
Diversified Banking Institutions....... 8.7%
Banks-Super Regional................... 8.0
Oil Companies-Integrated............... 7.2
Medical-Drugs.......................... 6.7
Repurchase Agreement................... 4.5
Electric-Integrated.................... 3.8
Oil Companies-Exploration & Production. 3.1
Diversified Manufacturing Operations... 3.1
Medical-HMO............................ 3.0
Medical Products....................... 3.0
Telephone-Integrated................... 2.9
Applications Software.................. 2.5
Cable/Satellite TV..................... 2.4
Finance-Credit Card.................... 2.2
Multimedia............................. 2.0
Auto-Cars/Light Trucks................. 1.9
Aerospace/Defense-Equipment............ 1.9
Instruments-Controls................... 1.9
Computers.............................. 1.8
Retail-Discount........................ 1.8
Insurance-Property/Casualty............ 1.7
Transport-Services..................... 1.6
Cosmetics & Toiletries................. 1.6
Beverages-Non-alcoholic................ 1.5
Electronic Components-Semiconductors... 1.5
Web Portals/ISP........................ 1.5
Insurance-Multi-line................... 1.4
Tobacco................................ 1.4
Networking Products.................... 1.3
Gambling (Non-Hotel)................... 1.3
Retail-Regional Department Stores...... 1.2
Retail-Apparel/Shoe.................... 1.1
Cruise Lines........................... 1.1
Enterprise Software/Service............ 1.1
Chemicals-Diversified.................. 1.0
Medical-Hospitals...................... 1.0
Chemicals-Specialty.................... 0.9
Cellular Telecom....................... 0.9
Transport-Rail......................... 0.8
Banks-Fiduciary........................ 0.7
Telecom Equipment-Fiber Optics......... 0.5
Metal-Iron............................. 0.5
----
98.0%
====
--------
*Calculated as a percentage of net assets
16
SUNAMERICA VALUE FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2012 -- (UNAUDITED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
------------------------------------------------------------------
COMMON STOCK -- 93.5%
AEROSPACE/DEFENSE-EQUIPMENT -- 1.9%
United Technologies Corp................... 30,000 $ 2,488,200
------------
APPLICATIONS SOFTWARE -- 2.5%
Microsoft Corp............................. 100,000 3,225,000
------------
AUTO-CARS/LIGHT TRUCKS -- 1.9%
Ford Motor Co.............................. 200,000 2,498,000
------------
BANKS-FIDUCIARY -- 0.7%
State Street Corp.......................... 20,000 910,000
------------
BANKS-SUPER REGIONAL -- 8.0%
Capital One Financial Corp................. 50,000 2,787,000
PNC Financial Services Group, Inc.......... 30,000 1,934,700
US Bancorp................................. 70,000 2,217,600
Wells Fargo & Co........................... 100,000 3,414,000
------------
10,353,300
------------
BEVERAGES-NON-ALCOHOLIC -- 1.5%
PepsiCo, Inc............................... 30,000 1,990,500
------------
CABLE/SATELLITE TV -- 2.4%
Comcast Corp., Class A..................... 60,000 1,800,600
DISH Network Corp., Class A................ 40,000 1,317,200
------------
3,117,800
------------
CELLULAR TELECOM -- 0.9%
Vodafone Group PLC ADR..................... 40,000 1,106,800
------------
CHEMICALS-DIVERSIFIED -- 1.0%
E.I. du Pont de Nemours & Co............... 25,000 1,322,500
------------
CHEMICALS-SPECIALTY -- 0.9%
Ashland, Inc............................... 20,000 1,221,200
------------
COMPUTERS -- 1.8%
Apple, Inc.+............................... 2,000 1,198,940
Hewlett-Packard Co......................... 50,000 1,191,500
------------
2,390,440
------------
COSMETICS & TOILETRIES -- 1.6%
Procter & Gamble Co........................ 30,000 2,016,300
------------
CRUISE LINES -- 1.1%
Royal Caribbean Cruises, Ltd............... 50,000 1,471,500
------------
DIVERSIFIED BANKING INSTITUTIONS -- 8.7%
Bank of America Corp....................... 150,000 1,435,500
Citigroup, Inc............................. 50,000 1,827,500
Goldman Sachs Group, Inc................... 20,000 2,487,400
JPMorgan Chase & Co........................ 100,000 4,598,000
Morgan Stanley............................. 50,000 982,000
------------
11,330,400
------------
DIVERSIFIED MANUFACTURING OPERATIONS -- 3.1%
General Electric Co........................ 200,000 4,014,000
------------
ELECTRIC-INTEGRATED -- 3.8%
Edison International....................... 30,000 1,275,300
Exelon Corp................................ 30,000 1,176,300
NextEra Energy, Inc........................ 20,000 1,221,600
Public Service Enterprise Group, Inc....... 40,000 1,224,400
------------
4,897,600
------------
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
--------------------------------------------------------------------
ELECTRONIC COMPONENTS-SEMICONDUCTORS -- 1.5%
Intel Corp................................... 70,000 $ 1,967,700
------------
ENTERPRISE SOFTWARE/SERVICE -- 1.1%
Oracle Corp.................................. 50,000 1,458,000
------------
FINANCE-CREDIT CARD -- 2.2%
American Express Co.......................... 20,000 1,157,200
Discover Financial Services.................. 50,000 1,667,000
------------
2,824,200
------------
GAMBLING (NON-HOTEL) -- 1.3%
International Game Technology................ 100,000 1,679,000
------------
INSTRUMENTS-CONTROLS -- 1.9%
Honeywell International, Inc................. 40,000 2,442,000
------------
INSURANCE-MULTI-LINE -- 1.4%
MetLife, Inc................................. 50,000 1,867,500
------------
INSURANCE-PROPERTY/CASUALTY -- 1.7%
Chubb Corp................................... 15,000 1,036,650
Travelers Cos., Inc.......................... 20,000 1,184,000
------------
2,220,650
------------
MEDICAL PRODUCTS -- 3.0%
Covidien PLC................................. 40,000 2,187,200
Stryker Corp................................. 30,000 1,664,400
------------
3,851,600
------------
MEDICAL-DRUGS -- 6.7%
Johnson & Johnson............................ 40,000 2,638,400
Merck & Co., Inc............................. 70,000 2,688,000
Pfizer, Inc.................................. 150,000 3,399,000
------------
8,725,400
------------
MEDICAL-HMO -- 3.0%
Aetna, Inc................................... 30,000 1,504,800
UnitedHealth Group, Inc...................... 40,000 2,357,600
------------
3,862,400
------------
MEDICAL-HOSPITALS -- 1.0%
Universal Health Services, Inc., Class B..... 30,000 1,257,300
------------
METAL-IRON -- 0.5%
Cliffs Natural Resources, Inc................ 10,000 692,600
------------
MULTIMEDIA -- 2.0%
Time Warner, Inc............................. 30,000 1,132,500
Viacom, Inc., Class B........................ 30,000 1,423,800
------------
2,556,300
------------
NETWORKING PRODUCTS -- 1.3%
Cisco Systems, Inc........................... 80,000 1,692,000
------------
OIL COMPANIES-EXPLORATION & PRODUCTION -- 3.1%
Devon Energy Corp............................ 20,000 1,422,400
Occidental Petroleum Corp.................... 15,000 1,428,450
Southwestern Energy Co.+..................... 40,000 1,224,000
------------
4,074,850
------------
OIL COMPANIES-INTEGRATED -- 7.2%
Chevron Corp................................. 30,000 3,217,200
ConocoPhillips............................... 30,000 2,280,300
17
SUNAMERICA VALUE FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2012 -- (UNAUDITED) (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
--------------------------------------------------------------
COMMON STOCK (CONTINUED)
OIL COMPANIES-INTEGRATED (CONTINUED)
Exxon Mobil Corp........................ 30,000 $ 2,601,900
Hess Corp............................... 20,000 1,179,000
------------
9,278,400
------------
RETAIL-APPAREL/SHOE -- 1.1%
Abercrombie & Fitch Co., Class A........ 30,000 1,488,300
------------
RETAIL-DISCOUNT -- 1.8%
Target Corp............................. 40,000 2,330,800
------------
RETAIL-REGIONAL DEPARTMENT STORES -- 1.2%
Kohl's Corp............................. 30,000 1,500,900
------------
TELECOM EQUIPMENT-FIBER OPTICS -- 0.5%
Corning, Inc............................ 50,000 704,000
------------
TELEPHONE-INTEGRATED -- 2.9%
AT&T, Inc............................... 70,000 2,186,100
Verizon Communications, Inc............. 40,000 1,529,200
------------
3,715,300
------------
TOBACCO -- 1.4%
Philip Morris International, Inc........ 20,000 1,772,200
------------
TRANSPORT-RAIL -- 0.8%
CSX Corp................................ 50,000 1,076,000
------------
SHARES/
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
----------------------------------------------------------------
TRANSPORT-SERVICES -- 1.6%
United Parcel Service, Inc., Class B. 25,000 $ 2,018,000
------------
WEB PORTALS/ISP -- 1.5%
Google, Inc., Class A+............... 3,000 1,923,720
------------
TOTAL LONG-TERM INVESTMENT SECURITIES
(cost $110,906,497)................. 121,332,660
------------
REPURCHASE AGREEMENT -- 4.5%
State Street Bank and Trust Co.
Joint Repurchase Agreement(1)
(cost $5,754,000)................... $5,754,000 5,754,000
------------
TOTAL INVESTMENTS --
(cost $116,660,497)(2).............. 98.0% 127,086,660
Other assets less liabilities.......... 2.0 2,637,634
---------- ------------
NET ASSETS -- 100.0% $129,724,294
========== ============
--------
+ Non-income producing security
(1) See Note 2 for details of Joint Repurchase Agreement.
(2) See Note 6 for cost of investments on a tax basis.
ADR -- AmericanDepository Receipt
The following is a summary of the inputs used to value the Fund's net assets as
of March 31, 2012 (see Note 2):
LEVEL 1 -- UNADJUSTED LEVEL 2 -- OTHER LEVEL 3 -- SIGNIFICANT
QUOTED PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS TOTAL
- --------------------- ----------------- ---------------------- ------------
ASSETS:
Long-Term Investment Securities:
Common Stock:
Banks-Super Regional.............. $ 10,353,300 $ -- $ -- $ 10,353,300
Diversified Banking Institutions.. 11,330,400 -- -- 11,330,400
Medical-Drugs..................... 8,725,400 -- -- 8,725,400
Oil Companies-Integrated.......... 9,278,400 -- -- 9,278,400
Other Industries*................. 81,645,160 -- -- 81,645,160
Repurchase Agreement................. -- 5,754,000 -- 5,754,000
------------ ---------- --------- ------------
TOTAL................................ $121,332,660 $5,754,000 $ -- $127,086,660
============ ========== ========= ============
--------
* Sum of all other industries each of which individually has an aggregate
market value of less than 5% of net assets. For a detailed presentation of
common stocks by industry classification, please refer to the Portfolio of
Investments.
See Notes to Financial Statements
18
SUNAMERICA JAPAN FUND@
PORTFOLIO PROFILE -- MARCH 31, 2012 -- (UNAUDITED)
INDUSTRY ALLOCATION*
Auto/Truck Parts & Equipment-Original.. 7.8%
Import/Export.......................... 7.5
Chemicals-Diversified.................. 5.5
Diversified Banking Institutions....... 4.7
Auto-Cars/Light Trucks................. 4.2
E-Commerce/Services.................... 3.8
Entertainment Software................. 3.6
Electric Products-Misc................. 3.3
Leisure Products....................... 3.2
Cosmetics & Toiletries................. 3.0
Oil Companies-Exploration & Production. 2.8
Retail-Consumer Electronics............ 2.6
Television............................. 2.4
Photo Equipment & Supplies............. 2.4
Insurance-Property/Casualty............ 2.1
Schools................................ 2.0
Machinery-Electrical................... 2.0
Office Automation & Equipment.......... 2.0
Insurance-Life/Health.................. 2.0
Real Estate Operations & Development... 2.0
Machinery-General Industrial........... 1.9
Oil Refining & Marketing............... 1.7
Rubber-Tires........................... 1.6
Steel-Producers........................ 1.5
Transport-Truck........................ 1.5
Finance-Consumer Loans................. 1.5
Internet Financial Services............ 1.5
Telephone-Integrated................... 1.5
Diversified Minerals................... 1.4
Web Portals/ISP........................ 1.2
Commercial Services.................... 1.1
Retail-Discount........................ 1.1
Travel Services........................ 1.1
Building & Construction Products-Misc.. 1.0
Audio/Video Products................... 1.0
Chemicals-Specialty.................... 1.0
Internet Content-Information/News...... 1.0
Retail-Misc./Diversified............... 1.0
Human Resources........................ 1.0
Transport-Rail......................... 1.0
Electronic Components-Misc............. 1.0
Recreational Vehicles.................. 0.9
Retail-Convenience Store............... 0.8
Electric-Integrated.................... 0.5
Retail-Apparel/Shoe.................... 0.3
----
98.0%
====
COUNTRY ALLOCATION*
Japan..... 98.0%
Australia. 0.0
Bermuda... 0.0
----
98.0%
====
--------
@See Note 1
*Calculated as a percentage of net assets
19
SUNAMERICA JAPAN FUND@
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2012 -- (UNAUDITED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
-------------------------------------------------------------------
COMMON STOCK -- 98.0%
AUDIO/VIDEO PRODUCTS -- 1.0%
Alpine Electronics, Inc...................... 19,900 $ 268,555
-----------
AUTO-CARS/LIGHT TRUCKS -- 4.2%
Mazda Motor Corp.+........................... 190,000 332,850
Nissan Motor Co., Ltd........................ 71,700 763,171
-----------
1,096,021
-----------
AUTO/TRUCK PARTS & EQUIPMENT-ORIGINAL -- 7.8%
Exedy Corp................................... 16,900 481,661
NOK Corp..................................... 12,300 267,488
Stanley Electric Co., Ltd.................... 26,100 414,661
TACHI-S Co., Ltd............................. 18,200 357,975
TS Tech Co., Ltd............................. 26,600 521,588
-----------
2,043,373
-----------
BUILDING & CONSTRUCTION PRODUCTS-MISC. -- 1.0%
JS Group Corp................................ 13,100 274,282
-----------
CHEMICALS-DIVERSIFIED -- 5.5%
Asahi Kasei Corp............................. 42,000 259,297
Kuraray Co., Ltd............................. 9,200 130,158
Mitsubishi Gas Chemical Co., Inc............. 79,000 527,812
Nitto Denko Corp............................. 6,300 253,842
Shin-Etsu Chemical Co., Ltd.................. 4,600 265,652
-----------
1,436,761
-----------
CHEMICALS-SPECIALTY -- 1.0%
Lintec Corp.................................. 13,100 265,577
-----------
COAL -- 0.0%
White Energy Co., Ltd.+...................... 446 180
-----------
COMMERCIAL SERVICES -- 1.1%
Nichii Gakkan Co............................. 21,800 291,825
-----------
COSMETICS & TOILETRIES -- 3.0%
Pigeon Corp.................................. 3,700 137,906
Pola Orbis Holdings, Inc..................... 21,900 653,534
-----------
791,440
-----------
DIVERSIFIED BANKING INSTITUTIONS -- 4.7%
Mitsubishi UFJ Financial Group, Inc.......... 248,800 1,238,439
-----------
DIVERSIFIED MINERALS -- 1.4%
Sumitomo Metal Mining Co., Ltd............... 26,000 365,326
-----------
E-COMMERCE/SERVICES -- 3.8%
Dena Co., Ltd................................ 14,700 407,238
Rakuten, Inc................................. 561 587,637
-----------
994,875
-----------
ELECTRIC PRODUCTS-MISC. -- 3.3%
Brother Industries, Ltd...................... 34,200 463,603
Mitsubishi Electric Corp..................... 45,000 397,970
-----------
861,573
-----------
ELECTRIC-INTEGRATED -- 0.5%
Tokyo Electric Power Co., Inc.+.............. 47,000 118,110
-----------
ELECTRONIC COMPONENTS-MISC. -- 1.0%
Kyocera Corp................................. 2,800 256,421
-----------
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
------------------------------------------------------------------
ENTERTAINMENT SOFTWARE -- 3.6%
Konami Corp.................................. 23,100 $ 654,737
Square Enix Holdings Co., Ltd................ 13,400 281,373
-----------
936,110
-----------
FINANCE-CONSUMER LOANS -- 1.5%
ACOM Co., Ltd.+.............................. 17,540 391,826
-----------
HUMAN RESOURCES -- 1.0%
Meitec Corp.................................. 12,800 258,103
-----------
IMPORT/EXPORT -- 7.5%
ITOCHU Corp.................................. 37,400 408,025
Mitsubishi Corp.............................. 17,600 408,264
Mitsui & Co., Ltd............................ 38,100 624,643
Sumitomo Corp................................ 35,900 518,743
-----------
1,959,675
-----------
INSURANCE-LIFE/HEALTH -- 2.0%
Sony Financial Holdings, Inc................. 29,100 516,818
-----------
INSURANCE-PROPERTY/CASUALTY -- 2.1%
Tokio Marine Holdings, Inc................... 19,900 546,006
-----------
INTERNET CONTENT-INFORMATION/NEWS -- 1.0%
Kakaku.com, Inc.............................. 10,100 264,550
-----------
INTERNET FINANCIAL SERVICES -- 1.5%
Matsui Securities Co., Ltd................... 60,000 386,372
-----------
LEISURE PRODUCTS -- 3.2%
Sega Sammy Holdings, Inc..................... 39,500 827,510
-----------
MACHINERY-ELECTRICAL -- 2.0%
SMC Corp..................................... 3,300 524,683
-----------
MACHINERY-GENERAL INDUSTRIAL -- 1.9%
Amada Co., Ltd............................... 75,000 505,618
-----------
MISCELLANEOUS MANUFACTURING -- 0.0%
Peace Mark Holdings, Ltd.+(1)(2)............. 8,000 0
-----------
OFFICE AUTOMATION & EQUIPMENT -- 2.0%
Canon, Inc................................... 11,000 519,633
-----------
OIL COMPANIES-EXPLORATION & PRODUCTION -- 2.8%
Inpex Corp................................... 107 722,641
-----------
OIL REFINING & MARKETING -- 1.7%
JX Holdings, Inc............................. 72,900 451,827
-----------
PHOTO EQUIPMENT & SUPPLIES -- 2.4%
FUJIFILM Holdings Corp....................... 27,100 635,509
-----------
REAL ESTATE OPERATIONS & DEVELOPMENT -- 2.0%
Mitsui Fudosan Co., Ltd...................... 27,000 516,383
-----------
RECREATIONAL VEHICLES -- 0.9%
Yamaha Motor Co., Ltd........................ 18,500 247,874
-----------
RETAIL-APPAREL/SHOE -- 0.3%
Nishimatsuya Chain Co., Ltd.................. 10,400 84,813
-----------
RETAIL-CONSUMER ELECTRONICS -- 2.6%
K's Holdings Corp. Senior Notes.............. 21,000 676,912
-----------
RETAIL-CONVENIENCE STORE -- 0.8%
FamilyMart Co., Ltd.......................... 5,100 215,658
-----------
20
SUNAMERICA JAPAN FUND@
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2012 -- (UNAUDITED) (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
----------------------------------------------------
COMMON STOCK (CONTINUED)
RETAIL-DISCOUNT -- 1.1%
Don Quijote Co., Ltd........... 7,900 $ 286,813
-----------
RETAIL-MISC./DIVERSIFIED -- 1.0%
Ryohin Keikaku Co., Ltd........ 5,100 263,719
-----------
RUBBER-TIRES -- 1.6%
Bridgestone Corp............... 17,500 424,127
-----------
SCHOOLS -- 2.0%
Benesse Holdings, Inc.......... 10,700 533,255
-----------
STEEL-PRODUCERS -- 1.5%
Yamato Kogyo Co., Ltd.......... 13,600 396,810
-----------
TELEPHONE-INTEGRATED -- 1.5%
Softbank Corp.................. 12,900 381,374
-----------
TELEVISION -- 2.4%
Fuji Media Holdings, Inc....... 371 637,831
-----------
TRANSPORT-RAIL -- 1.0%
East Japan Railway Co.......... 4,100 258,077
-----------
TRANSPORT-TRUCK -- 1.5%
Sankyu, Inc.................... 33,000 129,177
Seino Holdings Corp............ 37,000 267,319
-----------
396,496
-----------
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
-------------------------------------------------
TRAVEL SERVICES -- 1.1%
HIS Co., Ltd................ 9,200 $ 280,657
-----------
WEB PORTALS/ISP -- 1.2%
So-net Entertainment Corp... 33 121,004
Yahoo Japan Corp............ 612 198,011
-----------
319,015
-----------
TOTAL INVESTMENTS --
(cost $24,990,129)(3)...... 98.0% 25,669,453
Other assets less liabilities. 2.0 532,553
----- -----------
NET ASSETS -- 100.0% $26,202,006
===== ===========
--------
@ See Note 1
+ Non-income producing security
(1)Fair valued security. Securities are classified as Level 3 based on the
securities valuation inputs; see Note 2.
(2)Illiquid security. At March 31, 2012, the aggregate value of these
securities was $0 representing 0.0% of net assets.
(3)See Note 6 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 March 31, 2012 (See Note 2):
LEVEL 1 -- UNADJUSTED LEVEL 2 -- OTHER LEVEL 3 -- SIGNIFICANT
QUOTED PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS TOTAL
- --------------------- ----------------- ---------------------- -----------
ASSETS:
Long-Term Investment Securities:
Common Stock:
Auto/Truck Parts & Equipment-Original.. $ 2,043,373 $ -- $ -- $ 2,043,373
Chemicals-Diversified.................. 1,436,761 -- -- 1,436,761
Import/Export.......................... 1,959,675 -- -- 1,959,675
Other Industries*...................... 20,229,644 -- 0 20,229,644
----------- --------- --------- -----------
TOTAL..................................... $25,669,453 $ -- $ 0 $25,669,453
=========== ========= ========= ===========
--------
* Sum of all other industries each of which individually has an aggregate
market value of less than 5% of net assets. For a detailed presentation of
common stocks by industry classification, please refer to the Portfolio of
Investments.
The following is a reconciliation of Level 3 assets for which significant
unobservable inputs were used to determine fair value:
COMMON STOCK
- ------------
Balance as of 09/30/2011.......... $ 0
Accrued discounts................. --
Accrued premiums.................. --
Realized gain..................... --
Realized loss..................... --
Change in unrealized appreciation. --
Change in unrealized depreciation. --
Net purchases..................... --
Net sales......................... (0)
Transfers into Level 3............ --
Transfers out of Level 3.......... --
---------
Balance as of 03/31/2012.......... $ 0
=========
See Notes to Financial Statements
21
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2012 -- (UNAUDITED)
NOTE 1. ORGANIZATION
SunAmerica Equity Funds is registered under the Investment Company Act of
1940, as amended (the "1940 Act") as an open-end management investment
company and was organized as a Massachusetts business trust (the "Trust" or
"Equity Funds") on June 16, 1986. It currently consists of three 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 International Equity Fund ("International Equity
Fund"), SunAmerica Value Fund ("Value Fund"), and SunAmerica Japan Fund
("Japan Fund"). The Funds are considered to be separate entities for
financial and tax reporting purposes.
Effective January 27, 2012, the name of the International Small-Cap Fund was
changed to the Japan Fund and certain changes were made to the principal
investment strategies and techniques of the Fund which are reflected below.
The investment objective and principal investment techniques for each of the
Funds are as follows:
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. Under normal
circumstances, 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 a value criteria, issued by companies of
any market capitalization, that offer the potential for long-term growth of
capital.
JAPAN FUND seeks long-term capital appreciation by active trading of
securities of Japanese issuers and other investments that are tied
economically to Japan ("Japanese companies"). Under normal circumstances, at
least 80% of the Fund's net assets, plus any borrowings for investment
purposes, will be invested in Japanese companies.
Each Fund is organized as a "diversified" fund within the meaning of the
1940 Act.
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 Japan 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 Japan 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.
--------
+On March 7, 2012, the Board of Trustees of the Trust (the "Board") approved a
change in the International Equity Fund's name to the "SunAmerica
International Dividend Strategy Fund," along with certain changes to the
Fund's investment goal, principal investment strategy and principal investment
techniques. These changes are expected to become effective on or about the end
of June 2012 (the "Effective Date"). SunAmerica is anticipated to assume
day-to-day portfolio management responsibility for the Fund, replacing
Pinebridge Investments LLC, as of the Effective Date. Once these changes
become effective, an updated prospectus will be mailed to shareholders of the
Fund.
22
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2012 -- (UNAUDITED)
(CONTINUED)
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 Trustees"),
the Trust provides the Disinterested Trustees 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. 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 and
those differences could be significant. The following is a summary of
significant accounting policies consistently followed by the Trust in the
preparation of its financial statements:
SECURITY VALUATION: Stocks are generally valued based upon closing sales
prices reported on recognized securities exchanges on which the securities
are principally traded. 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
Fund uses the exchange that is the primary market for the security. However,
depending on the foreign market, closing prices may be up to 15 hours old
when they are used to price the Fund's shares, and the Fund may determine
that certain closing prices do not reflect the fair value of the security.
This determination will be based on review of a number of factors, including
developments in foreign markets, the performance of U.S. securities markets,
and the performance of instruments trading in U.S. markets that represent
foreign securities and baskets of foreign securities. If the Fund determines
that closing prices do not reflect the fair value of the securities, the
Fund will adjust the previous closing prices in accordance with pricing
procedures approved by the Board to reflect what it believes to be the fair
value of the securities as of the close of regular trading on the NYSE. The
Fund may also fair value securities in other situations, for example, when a
particular foreign market is closed but the Fund is open. For foreign equity
securities and foreign equity futures contracts, the Fund uses an outside
pricing service to provide it with closing market prices and information
used for adjusting those prices.
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. The pricing services may use valuation models or
matrix pricing which considers information with respect to comparable bond
and note transactions, quotations from bond dealers, or by reference to
other securities that are considered comparable in such characteristics as
rating, interest rate, and maturity date, option adjusted spreads models,
prepayments projections, interest rate
23
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2012 -- (UNAUDITED)
(CONTINUED)
spreads, and yield curves to determine current value. 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.
The various inputs that may be used to determine 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,
referenced indices, quoted prices in inactive markets, adjusted quoted
prices in active markets, adjusted quoted prices on foreign equity
securities that were adjusted in accordance with pricing procedures approved
by the Board, 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
March 31, 2012 are reported on a schedule following the Portfolio of
Investments.
REPURCHASE AGREEMENTS: The Funds, along with other affiliated registered
investment companies, pursuant to procedures adopted by the Board and
applicable guidance from 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. In a
repurchase agreement, the seller of a security agrees to repurchase the
security at a mutually agreed-upon time and price, which reflects the
effective rate of return for the term of the agreement. For repurchase
agreements and joint repurchase agreements, the Funds' custodian takes
possession of the collateral pledged for investments in such 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, the Fund has the right to liquidate
the collateral and apply the proceeds in satisfaction of the obligation. If
the seller defaults and the value of the collateral declines or if
bankruptcy proceedings are commenced with respect to the seller of the
security, realization of the collateral by the Fund may be delayed or
limited.
As of March 31, 2012, the following Fund held an undivided interest in the
joint repurchase agreement with State Street Bank and Trust Co.:
PERCENTAGE PRINCIPAL
FUND INTEREST AMOUNT
---- ---------- ----------
Value Fund. 1.84% $5,754,000
24
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2012 -- (UNAUDITED)
(CONTINUED)
As of such date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
State Street Bank and Trust Co., dated March 30, 2012, bearing interest at a
rate of 0.01% per annum, with a principal amount of
$313,004,000 a repurchase price of $313,004,261, and a maturity date of
April 2, 2012. The repurchase agreement is collateralized by the following:
INTEREST MATURITY PRINCIPAL MARKET
TYPE OF COLLATERAL RATE DATE AMOUNT VALUE
------------------ -------- ---------- ------------ ------------
U.S. Treasury Notes. 1.50% 06/30/2016 $ 1,800,000 $ 1,856,250
U.S. Treasury Notes. 2.63 04/30/2018 263,590,000 286,888,457
U.S. Treasury Notes. 2.63 08/15/2020 28,735,000 30,523,351
SECURITIES TRANSACTIONS, INVESTMENT INCOME, EXPENSES, DIVIDENDS AND
DISTRIBUTIONS TO SHAREHOLDERS: Security transactions are recorded on a trade
date basis. Realized gains and losses on the sale of investments are
calculated on the identified cost basis. Interest income is accrued daily
from settlement date except when collection is not expected. Dividend income
is recorded on the ex-dividend date except for certain dividends from
foreign securities, which are recorded as soon as the Fund is informed after
the ex-dividend date. Funds which earn foreign income and capital gains may
be subject to foreign withholding taxes and capital gains taxes at various
rates. Under applicable foreign law, a withholding of tax may be imposed on
interest, dividends, and capital gains at various rates. For financial
statement 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 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 allocation 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 and capital gain distributions, 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 capital
gain on investments to its shareholders. Therefore, no federal tax provision
is 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
examinations by tax authorities for tax returns ending before 2008.
FOREIGN CURRENCY TRANSLATION: The books and records of the Funds are
maintained in U.S. dollars. Assets and liabilities denominated in foreign
currencies and commitments under forward foreign currency contracts 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
25
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2012 -- (UNAUDITED)
(CONTINUED)
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 located in the Statement of Operations include
realized foreign exchange gains and losses from currency gains or losses
between the trade and the 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 the other assets and
liabilities arising as a result of changes in the exchange rates.
NEW ACCOUNTING PRONOUNCEMENT
In April 2011, the Financial Accounting Standards Board ("FASB") issued
Accounting Standards Update ("ASU") No. 2011-03, "Reconsideration of
Effective Control for Repurchase Agreements." ASU 2011-03 changes the
assessment of effective control for repurchase agreements including dollar
roll transactions. The new and revised disclosures are effective for interim
and annual reporting periods beginning after December 15, 2011. At this
time, management is evaluating the implications of ASU No. 2011-03 and its
impact on the financial statements.
In May 2011, the FASB issued ASU No. 2011-04, "Amendments to Achieve Common
Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs."
ASU 2011-04 requires common fair value measurement and disclosure
requirements between U.S. GAAP and International Financial Reporting
Standards. The new and revised disclosures are effective for interim and
annual reporting periods beginning after December 15, 2011. At this time,
management is evaluating the implications of ASU No. 2011-04 and its impact
on the financial statements.
Note 3. Investment Advisory and Management Agreement, Distribution Agreement
and Service Agreement
The Trust, on behalf of each Fund, has an Investment Advisory and Management
Agreement (the "Agreement") with 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.
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
FUND FEES
---- ----------
International Equity Fund. 1.00%
Value Fund................ 0.75
Japan Fund................ 1.15
For the six months ended March 31, 2012, SunAmerica earned fees in the
amounts stated in the Statement of Operations.
The International Equity Fund is subadvised by PineBridge Investments, LLC
("PineBridge") pursuant to a subadvisory agreement with SunAmerica.
PineBridge receives an annual fee of 0.47% of average daily net assets for
the International Equity Fund, which is paid by SunAmerica.
The Japan Fund is subadvised by Wellington Management Company, LLP
("Wellington Management") pursuant to a subadvisory agreement with
SunAmerica. Wellington Management receives an annual fee of 0.45% of average
daily net assets of the Japan Fund, which is paid by SunAmerica. Pinebridge
served as subadviser to the Japan Fund through January 26, 2012. In
addition, Wellington Management has agreed to voluntarily waive 50% or
0.225% of the subadvisory fee payable to it by SunAmerica. The voluntary fee
waiver may be discontinued at any time by Wellington Management.
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 Class's average daily net assets. For the
purposes of waived fee and/or
26
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2012 -- (UNAUDITED)
(CONTINUED)
reimbursed expense calculations, annual fund operating expenses shall not
include extraordinary expenses, as determined under generally accepted
accounting principals, or acquired fund fees and expenses. The contractual
fee waivers and expense reimbursements will continue in effect indefinitely
unless terminated by the Trustees, including a majority of the Disinterested
Trustees.
FUND PERCENTAGE
---- ----------
International Equity Fund Class A. 1.90%
International Equity Fund Class B. 2.55
International Equity Fund Class C. 2.55
International Equity Fund Class I. 1.80
Value Fund Class A................ 1.63
Value Fund Class B................ 2.28
Value Fund Class C................ 2.28
Value Fund Class Z................ 1.06
Japan Fund Class A................ 1.90
Japan Fund Class B................ 2.55
Japan Fund Class C................ 2.55
Any 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 six months ended March 31, 2012, pursuant to the contractual expense
limitations referred to above, SunAmerica has waived or reimbursed expenses
as follows:
OTHER
EXPENSES
FUND REIMBURSED
---- ----------
International Equity Fund......... $10,925
Japan Fund........................ 78,896
FUND AMOUNT
---- ----------
International Equity Fund Class A. $21,992
International Equity Fund Class B. 9,571
International Equity Fund Class C. 9,724
International Equity Fund Class I. 89
Value Fund Class B................ 6,092
Value Fund Class C................ 947
Japan Fund Class A................ 8,485
Japan Fund Class B................ 6,649
Japan Fund Class C................ 6,671
For the six months ended March 31, 2012, the amounts recouped by SunAmerica
are as follows:
OTHER
EXPENSES
FUND RECOUPED
---- --------
International Equity Fund......... $ 738
FUND AMOUNT
---- --------
International Equity Fund Class A. $7,324
International Equity Fund Class C. 1,328
International Equity Fund Class I. 270
Value Fund Class B................ 385
Value Fund Class C................ 947
27
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2012 -- (UNAUDITED)
(CONTINUED)
At March 31, 2012, expenses previously waived and/or reimbursed by
SunAmerica during the prior two years that remain subject to recoupment are
as follows:
OTHER
EXPENSES
FUND RECOUPED
---- --------
International Equity Fund......... $ 10,187
Japan Fund........................ 189,418
FUND AMOUNT
---- --------
International Equity Fund Class A. $ 14,668
International Equity Fund Class B. 27,675
International Equity Fund Class C. 14,751
International Equity Fund Class I. 771
Value Fund Class B................ 8,145
Japan Fund Class A................ 75,957
Japan Fund Class B................ 32,180
Japan Fund Class C................ 32,332
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 six months ended March 31, 2012, SACS received fees (see Statement
of Operations) based upon the aforementioned rates.
In addition, SACS is paid a fee of 0.25% of average daily net assets of
Class I shares in connection with providing administrative and shareholder
services to Class I shareholders. For the six months ended March 31, 2012,
SACS earned fees (see Statement of Operations) based upon the aforementioned
rates.
SACS receives sales charges on each Fund's Class A shares, portions of which
are reallocated to affiliated broker-dealers and non-affiliated
broker-dealers. SACS also receives the proceeds of contingent deferred sales
charges paid by investors in connection with certain redemptions of each
Fund's Class A, Class B and Class C shares. SACS has advised the Funds that
for the six months ended March 31, 2012, 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
SALES AFFILIATED NON-AFFILIATED DEFERRED DEFERRED DEFERRED
FUND CHARGES BROKER-DEALERS BROKER-DEALERS SALES CHARGES SALES CHARGES SALES CHARGES
---- ------- -------------- -------------- ------------- ------------- -------------
International Equity Fund. $14,420 $3,780 $8,568 $-- $4,651 $263
Value Fund................ 15,286 3,877 9,266 -- 5,795 437
Japan Fund................ 2,850 1,711 739 -- 381 15
28
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2012 -- (UNAUDITED)
(CONTINUED)
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, State Street Bank and Trust Company, in
connection with the services that it offers to the shareholders of the
Funds. Pursuant to the Service Agreement, the Funds (except for Class Z
shares of the Funds) pay a fee to SAFS for services rendered based upon an
annual rate of 0.22% of average daily net assets. No portion of this fee is
paid or reimbursed by the Class Z shares, however, Class Z shares pay all
direct transfer agency fees and out-of-pocket expenses relating to Class Z
shares. For the six months ended
March 31, 2012, 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.
PAYABLE AT
EXPENSE MARCH 31, 2012
- ------------------------------- -------------------------------
FUND CLASS A CLASS B CLASS C CLASS I CLASS A CLASS B CLASS C CLASS I
---- ------- ------- ------- ------- ------- ------- ------- -------
International Equity Fund .. $58,374 $5,610 $14,558 $1,662 $ 9,981 $ 944 $2,468 $275
Value Fund.................. 99,414 7,521 17,570 -- 19,847 1,219 3,058 --
Japan Fund.................. 29,577 344 902 -- 4,757 55 118 --
At March 31, 2012, the following affiliates owned a percentage of the
following funds: Focused Multi-Asset Strategy Portfolio owned 31.7% of the
SunAmerica International Equity Fund; Focused Multi-Asset Strategy Portfolio
and Focused Balanced Strategy Portfolio owned 29.5% and 7.7%, respectively,
of SunAmerica Value Fund; and Focused Multi-Asset Strategy Portfolio owned
89.4% of SunAmerica Japan Fund.
As of the date of this report, the United States Department of the Treasury
("Department of the Treasury") owned a majority of outstanding shares of
common stock of American International Group, Inc. ("AIG"), the ultimate
parent of SunAmerica, SACS and SAFS. AIG has stated that it understands
that, subject to market conditions, the Department of the Treasury intends
to dispose of its ownership interest in AIG over time, and that AIG has
granted certain registration rights to the Department of the Treasury to
facilitate such sales.
Note 4. Expense Reductions
Through expense offset arrangements resulting from broker commission
recapture, a portion of the expenses of the Funds set forth below have been
reduced. For the six months ended March 31, 2012, 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
---- -------------
Value Fund. $3,253
Note 5. Purchases and Sales of Securities
The cost of purchases and proceeds from sales and maturities of long-term
investments during the six months ended March 31, 2012 were as follows:
INTERNATIONAL
EQUITY FUND VALUE FUND JAPAN FUND
- ------------- ------------ -----------
Purchases (excluding U.S. government securities). $74,759,735 $121,062,448 $37,818,144
Sales (excluding U.S. government securities)..... 80,579,249 129,556,987 45,461,384
Purchases of U.S. government securities.......... -- -- --
Sales of U.S. government securities.............. -- -- --
29
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2012 -- (UNAUDITED)
(CONTINUED)
Note 6. Federal Income Taxes
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, investments in passive foreign investment companies, post
October losses and derivative transactions.
FOR THE YEAR ENDED SEPTEMBER 30, 2011
--------------------------------------------------------------------------
DISTRIBUTABLE EARNINGS TAX DISTRIBUTIONS
-------------------------------------- ----------------------------------
LONG-TERM UNREALIZED
ORDINARY GAINS/CAPITAL APPRECIATION ORDINARY LONG-TERM RETURN OF
INCOME LOSS CARRYOVER (DEPRECIATION)* INCOME CAPITAL GAINS CAPITAL
-------- -------------- --------------- ---------- ------------- ---------
International Equity Fund. $155,135 $(92,753,419) $(13,046,176) $ 10,320 $-- $--
Value Fund................ 812,654 (79,310,708) (21,367,902) 817,635 -- --
Japan Fund................ 47,867 4,711,386 (1,995,369) 1,328,122 -- --
--------
* Unrealized appreciation (depreciation) includes amounts for derivatives and
other assets and liabilities denominated in foreign currency.
The amounts of aggregate unrealized gain (loss) and the cost of investment
securities for federal income tax purposes, including short-term securities
and repurchase agreements, were as follows at March 31, 2012:
INTERNATIONAL
EQUITY FUND VALUE FUND JAPAN FUND
------------- ------------ -----------
Cost (tax basis)........................... $71,385,791 $123,111,064 $25,283,571
=========== ============ ===========
Appreciation............................... 4,476,479 10,953,958 1,091,493
Depreciation............................... (4,490,215) (6,978,362) (705,611)
----------- ------------ -----------
Net unrealized appreciation (depreciation). $ (13,736) $ 3,975,596 $ 385,882
=========== ============ ===========
For federal income tax purposes, the Funds indicated below have capital loss
carryforwards, which expire in the year indicated, as of September 30, 2011,
which are available to offset future capital gains, if any:
CAPITAL LOSS CARRYFORWARD+
-------------------------------------------------------------------
FUND 2012 2013 2014 2015 2016 2017 2018 2019
---- ---- ---- ---- ----------- ----------- ----------- ----------- ----
International Equity Fund*. $-- $-- $-- $31,583,013 $25,210,425 $16,578,456 $19,381,525 $--
Value Fund*................ -- -- -- -- 21,653,185 36,272,125 21,385,398 --
Japan Fund................. -- -- -- -- -- -- -- --
--------
* The capital loss carryforwards include realized capital losses from the
acquisition of other funds. Certain losses may be subject to annual
limitations imposed by the Internal Revenue Code. Therefore, it is possible
that not all of the capital losses will be available for use. As of
September 30, 2011, based on current tax law, the International Equity Fund
and the Value Fund have $0 and $19,837,903, respectively, of capital losses
that will not be available for use.
+ On December 22, 2010, the Regulated Investment Company Modernization Act of
2010 (the "Act") was enacted, which changed various technical rules
governing the tax treatment of regulated investment companies. The changes
are generally effective for taxable years beginning after the date of
enactment. Under the Act, the fund will be permitted to carry forward
capital losses incurred in taxable years beginning after the date of
enactment for an unlimited period. However, any losses incurred during those
future taxable years will be required to be utilized prior to the losses
incurred in pre-enactment taxable years, which carry an expiration date. As
a result of this ordering rule, pre-enactment capital loss carryforwards may
be more likely to expire unused.
30
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2012 -- (UNAUDITED)
(CONTINUED)
Note 7. Capital Share Transactions
Transactions in capital shares of each class of each Fund were as follows:
INTERNATIONAL EQUITY FUND
---------------------------------------------------------------------------------------------
CLASS A CLASS B
----------------------------------------------- --------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE
MARCH 31, 2012 YEAR ENDED MARCH 31, 2012 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2011 (UNAUDITED) SEPTEMBER 30, 2011
--------------------- ------------------------ --------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------- ----------- ---------- ------------ -------- ----------- -------- -----------
Shares sold(1)(2)........... 249,613 $ 2,782,424 1,998,861 $ 25,245,848 16,038 $ 163,606 40,719 $ 474,694
Reinvested dividends........ 67,851 684,621 743 9,227 3,720 34,630 -- --
Shares redeemed(1)(2)(3)(4). (664,678) (7,414,703) (5,645,038) (71,397,455) (111,728) (1,145,625) (302,366) (3,511,424)
-------- ----------- ---------- ------------ -------- ----------- -------- -----------
Net increase (decrease)..... (347,214) $(3,947,658) (3,645,434) $(46,142,380) (91,970) $ (947,389) (261,647) $(3,036,730)
======== =========== ========== ============ ======== =========== ======== ===========
INTERNATIONAL EQUITY FUND
---------------------------------------------------------------------------------------------
CLASS C CLASS I
----------------------------------------------- --------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE
MARCH 31, 2012 YEAR ENDED MARCH 31, 2012 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2011 (UNAUDITED) SEPTEMBER 30, 2011
--------------------- ------------------------ --------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------- ----------- ---------- ------------ -------- ----------- -------- -----------
Shares sold................. 21,048 $ 213,872 71,165 $ 835,085 -- $ -- -- $ --
Reinvested dividends........ 8,546 79,474 -- -- 1,924 19,571 63 788
Shares redeemed(3)(4)....... (222,503) (2,252,018) (479,188) (5,542,375) (34,811) (381,736) (61,044) (779,299)
-------- ----------- ---------- ------------ -------- ----------- -------- -----------
Net increase (decrease)..... (192,909) $(1,958,672) (408,023) $ (4,707,290) (32,887) $ (362,165) (60,981) $ (778,511)
======== =========== ========== ============ ======== =========== ======== ===========
--------
(1)For the six months ended March 31, 2012, includes automatic conversion of
48,172 shares of Class B shares in the amount of $492,870 to 44,325 shares
of Class A shares in the amount of $492,870.
(2)For the year ended September 30, 2011, includes automatic conversion of
117,150 shares of Class B shares in the amount of $1,345,767 to 107,837
shares of Class A shares in the amount of $1,345,767.
(3)For the six months ended March 31, 2012, net of redemption fees of $1,131,
$108, $279 and $30 for Class A, Class B, Class C and Class I shares,
respectively.
(4)For the year ended September 30, 2011, net of redemption fees of $11,061,
$1,151, $2,967, and $356 for Class A, Class B, Class C and Class I shares,
respectively.
VALUE FUND
---------------------------------------------------------------------------------------------------
CLASS A CLASS B
-------------------------------------------------- -----------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE
MARCH 31, 2012 YEAR ENDED MARCH 31, 2012 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2011 (UNAUDITED) SEPTEMBER 30, 2011
------------------------ ------------------------ --------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Shares sold(1)(2)....... 2,036,731 $ 24,905,067 2,553,891 $ 31,023,654 25,926 $ 285,201 49,155 $ 571,420
Reinvested dividends.... 74,850 840,567 45,185 539,510 2,340 24,642 -- --
Shares redeemed(1)(2)... (2,991,036) (34,768,832) (4,569,055) (54,596,834) (208,353) (2,366,625) (550,104) (6,176,764)
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Net increase (decrease). (879,455) $ (9,023,198) (1,969,979) $(23,033,670) (180,087) $(2,056,782) (500,949) $ (5,605,344)
========== ============ ========== ============ ======== =========== ========== ============
VALUE FUND
---------------------------------------------------------------------------------------------------
CLASS C CLASS Z
-------------------------------------------------- -----------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE
MARCH 31, 2012 YEAR ENDED MARCH 31, 2012 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2011 (UNAUDITED) SEPTEMBER 30, 2011
------------------------ ------------------------ --------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Shares sold............. 13,401 $ 149,652 51,311 $ 597,065 -- $ -- 53,205 $ 651,862
Reinvested dividends.... 6,436 67,705 -- -- 288 3,390 19,779 248,232
Shares redeemed......... (220,051) (2,471,768) (572,566) (6,479,852) (4,890) (62,156) (1,975,845) (25,354,717)
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Net increase (decrease). (200,214) $ (2,254,411) (521,255) $ (5,882,787) (4,602) $ (58,766) (1,902,861) $(24,454,623)
========== ============ ========== ============ ======== =========== ========== ============
--------
(1)For the six months ended March 31, 2012, includes automatic conversion of
111,382 shares of Class B shares in the amount of $1,270,920 to 104,222
shares of Class A shares in the amount of $1,270,920.
(2)For the year ended September 30, 2011, includes automatic conversion of
241,771 shares of Class B shares in the amount of $2,759,483 to 226,124
shares of Class A shares in the amount of $2,759,483.
31
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2012 -- (UNAUDITED)
(CONTINUED)
JAPAN FUND
----------------------------------------------------------------------------------------
CLASS A CLASS B
------------------------------------------------- -------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE
MARCH 31, 2012 YEAR ENDED MARCH 31, 2012 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2011 (UNAUDITED) SEPTEMBER 30, 2011
----------------------- ------------------------ ----------------- ------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ----------- ---------- ------------ ------- -------- ------- ---------
Shares sold(1)(2)........... 19,558 $ 134,097 1,117,986 $ 10,650,844 1,625 $ 11,194 15,809 $ 148,420
Reinvested dividends........ 724,542 4,513,895 99,495 941,225 9,104 55,170 1,094 10,171
Shares redeemed(1)(2)(3)(4). (1,161,883) (9,179,995) (3,601,844) (34,521,715) (12,805) (87,281) (17,344) (161,875)
---------- ----------- ---------- ------------ ------- -------- ------- ---------
Net increase (decrease)..... (417,783) $(4,532,003) (2,384,363) $(22,929,646) (2,076) $(20,917) (441) $ (3,284)
========== =========== ========== ============ ======= ======== ======= =========
JAPAN FUND
-------------------------------------------------
CLASS C
-------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2012 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2011
----------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ----------- ---------- ------------
Shares sold................. 8,900 $ 62,474 78,018 $ 728,678
Reinvested dividends........ 24,675 149,530 2,763 25,672
Shares redeemed(3)(4)....... (61,244) (409,399) (40,612) (351,756)
---------- ----------- ---------- ------------
Net increase (decrease)..... (27,669) $ (197,395) 40,169 $ 402,594
========== =========== ========== ============
--------
(1)For the six months ended March 31, 2012, includes automatic conversion of
1,667 shares of Class B shares in the amount of $11,677 to 1,624 shares of
Class A shares in the amount of $11,677.
(2)For the year ended September 30, 2011, includes automatic conversion of
2,879 shares of Class B shares in the amount of $26,999 to 2,821 shares of
Class A shares in the amount of $26,999.
(3)For the six months ended March 31, 2012, net of redemption fees of $133, $2,
and $5 for Class A, Class B, and Class C shares, respectively.
(4)For the year ended September 30, 2011, net of redemption fees of $964, $10,
and $31 for Class A, Class B, and Class C shares, respectively.
Note 8. 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 plus 125 basis points or the 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. There is also a commitment fee of 10 basis points per annum
on the daily unused portion of the committed line of credit which is
included in other expenses on the Statement of Operations. Borrowings under
the line of credit will commence when the respective Fund's cash shortfall
exceeds $100,000. For the six months ended March 31, 2012, the following
Funds had borrowings:
WEIGHTED
DAYS INTEREST AVERAGE AVERAGE
FUND OUTSTANDING CHARGES DEBT UTILIZED INTEREST
---- ----------- -------- ------------- --------
International Equity Fund. 1 $ 5 $ 139,243 1.40%
Value Fund................ 2 1,474 19,061,793 1.39
Japan Fund................ 25 112 115,012 1.40
At March 31, 2012, there were no borrowings outstanding.
Note 9. Interfund Lending Agreement
Pursuant to the 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 six months ended March 31, 2012, none of the
Funds participated in this program.
32
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2012 -- (UNAUDITED)
(CONTINUED)
Note 10. Trustees' Retirement Plan
The Board has adopted the SunAmerica Disinterested Trustees' and Directors'
Retirement Plan (the "Retirement Plan") effective January 1, 1993, as
amended, for the Disinterested Trustees. The Retirement Plan provides
generally that a Disinterested 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 Trustees
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.
The following amounts for the Retirement Plan Liabilities are included in
the Trustees' fees and expenses payable line on the Statement of Assets and
Liabilities and the amounts for the Retirement Plan Expenses are included in
the Trustees' fees and expenses line on the Statement of Operations.
RETIREMENT PLAN RETIREMENT PLAN RETIREMENT PLAN
FUND LIABILITY EXPENSE PAYMENTS
---- --------------- --------------- ---------------
AS OF MARCH 31, 2012
- -----------------------------------------------
International Equity Fund.. $2,575 $ 96 $462
Value Fund................. 4,634 129 849
Note 11. 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 portfolio risk by
increasing the diversification of portfolio investments, the value of the
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 the Japan Fund. At March 31, 2012, the International Equity Fund and the
Japan Fund had 16.5% and 98.0% of its net assets invested in equity
securities domiciled in Japan.
33
SUNAMERICA EQUITY FUNDS
APPROVAL OF SUBADVISORY AGREEMENT -- MARCH 31, 2012 -- (UNAUDITED)
APPROVAL OF A SUBADVISORY AGREEMENT
At an in-person meeting held on December 6, 2011 (the "Meeting"), the Board,
including the Disinterested Trustees, approved the Subadvisory Agreement
between SunAmerica and Wellington Management (the "Subadvisory Agreement") with
respect to the Japan Fund. As a result, effective January 27, 2012, Wellington
Management assumed portfolio management responsibilities for the Fund.
In accordance with Section 15(c) of the 1940 Act, the Board requested, and
SunAmerica and Wellington Management provided, materials relating to the
Board's consideration of whether to approve the Subadvisory Agreement. These
materials included (a) a summary of the services to be provided to the Japan
Fund by Wellington Management; (b) the key personnel of Wellington Management
that will be involved in the investment management, administration, compliance
and risk management activities with respect to the Japan Fund, as well as
current and projected staffing levels and compensation practices; (c)
Wellington Management's general compliance policies and procedures, (d)
Wellington Management's brokerage and soft dollar practices, (e) information
independently compiled and prepared by Lipper, Inc. ("Lipper") on the
subadvisory fees to be paid by SunAmerica to Wellington Management as compared
with a peer group of funds; and (f) a comparison of fees received for other
mutual funds and accounts with similar investment objectives and strategies for
which Wellington Management serves as adviser or subadviser, as applicable.
The Board also took into account presentations made at the Meeting by members
of management as well as presentations made by representatives of Wellington
Management who responded to questions posed by the Board and management. The
Board also took into account a presentation provided by management at a
previous meeting held on October 27, 2011. The Disinterested Trustees were
separately represented by independent counsel in connection with their
consideration of the approval of the Subadvisory Agreement.
In determining whether to approve the Subadvisory Agreement, the Board,
including the Disinterested Trustees, also considered the following information:
NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED BY SUNAMERICA AND WELLINGTON
The Board, including the Disinterested Trustees, considered the nature, extent
and quality of services to be provided by Wellington Management with respect to
the Japan Fund, including investment management services such as investment
research, advice and supervision, and determining which securities will be
purchased or sold by the Japan Fund, subject to the oversight and review of
SunAmerica. In addition, the Board reviewed Wellington Management's history,
structure, size, visibility and resources, which are needed to attract and
retain highly qualified investment professionals. The Board also reviewed the
personnel that would be responsible for providing portfolio management services
to the Japan Fund and also considered that Wellington Management currently
serves as subadviser with respect to certain other funds within the SunAmerica
fund complex. The Board concluded, based on the materials provided and
Wellington Management's prior experience as a subadviser to certain other
Funds, that: (i) Wellington Management would be able to retain high quality
portfolio managers and other investment personnel; (ii) Wellington Management
would exhibit a high level of diligence and attention to detail in carrying out
its responsibilities as a subadviser; and (iii) Wellington Management would be
responsive to requests of the Board and of SunAmerica. The Board also
considered that Wellington Management has developed internal policies and
procedures for monitoring compliance with the investment objectives, policies
and restrictions of the Japan Fund. The Board further considered Wellington
Management's code of ethics, compliance and regulatory history. The Board also
took into account Wellington Management's risk management process. The Board
also noted that the Wellington Management 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 a subadviser to the Japan Fund.
The Board concluded that the nature and extent of services to be provided by
Wellington Management under the Subadvisory Agreement were reasonable and
appropriate in relation to the proposed subadvisory fees and that the quality
of services was reasonably expected to be high.
INVESTMENT PERFORMANCE
The Board, including the Disinterested Trustees, received information prepared
by Wellington Management regarding its investment performance. The information
provided to the Board included composite performance of certain institutional
accounts managed by Wellington Management with investment policies and/or
strategies similar to the Japan Fund (the "Composite") and the Board noted
34
SUNAMERICA EQUITY FUNDS
APPROVAL OF SUBADVISORY AGREEMENT -- MARCH 31, 2012 -- (UNAUDITED)
(CONTINUED)
that the Composite had outperformed its benchmark index over all applicable
periods since inception as of September 30, 2011. The Board also noted that
none of the accounts included within this Composite were mutual funds, as
Wellington Management did not manage any mutual funds with investment policies
and/or strategies similar to the Japan Fund. The Board also acknowledged that
past performance is no guarantee of future results.
CONSIDERATION OF THE SUBADVISORY FEE AND COST OF THE SERVICES AND PROFITS TO BE
REALIZED BY WELLINGTON AND ITS AFFILIATES FROM THE RELATIONSHIP WITH THE JAPAN
FUND
The Board, including the Disinterested Trustees, also received and reviewed
information regarding the fees to be paid by SunAmerica to Wellington
Management pursuant to the Subadvisory Agreement. The Board noted that the
subadvisory fee to be paid by SunAmerica to Wellington Management pursuant to
the Subadvisory Agreement would be less than the subadvisory fee currently paid
to PineBridge pursuant to the subadvisory agreement between SunAmerica and
PineBridge with respect to the Japan Fund. The Board also noted that Wellington
Management had agreed to voluntarily waive 50% of the subadvisory fee payable
to it by SunAmerica in light of the Japan Fund's current asset size and
SunAmerica's substantial fee waivers and/or expense reimbursements with respect
to the Japan Fund. Accordingly, the Board further considered the amount of
subadvisory fees paid out by SunAmerica and the amount of the management fees
which it retained.
To assist in analyzing the reasonableness of the subadvisory fees under the
Subadvisory Agreement, the Board received a report independently prepared by
Lipper with respect to the Japan Fund. The report showed comparative fee
information of a representative group of funds as determined by Lipper (the
"Peer Group"), and the Board considered that the proposed subadvisory fee to be
paid to Wellington Management was below the median of this Peer Group. The
Board acknowledged, however, that there was only one other fund in Lipper's
Japan classification with disclosed subadvisory fees and, therefore, Lipper
included funds within certain other investment classifications (i.e., China
region, Pacific ex-Japan) so that there was a reasonably sized Peer Group.
Nevertheless, the Board noted that the Peer Group information as a whole was
useful in assessing whether Wellington Management would provide services to the
Japan Fund 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 also considered information provided by Wellington Management
relating to fees charged to other accounts with similar investment strategies
to the Japan Fund that are managed by Wellington Management and observed that
the proposed subadvisory fee to be paid to Wellington Management with respect
to the Japan Fund was lower than the fees applicable to these other accounts.
The Board noted that Wellington Management did not currently manage any
comparable mutual funds and that the fee comparison provided by Wellington
Management related to the standard fee schedule applicable to similarly managed
institutional accounts. The Board also observed that these similarly managed
institutional accounts were managed by Wellington Management in its capacity as
investment adviser and not as a subadviser.
The Board noted that it did not receive information regarding the profitability
of Wellington Management because the Subadvisory Agreement was a new agreement
that was not yet in effect.
The Board also reviewed financial statements and/or other reports from
Wellington Management and considered whether Wellington Management had the
financial resources necessary to attract and retain high quality investment
management personnel and to provide high quality services to the Japan Fund.
The Board concluded that Wellington Management had the financial resources
necessary to perform its obligations under the Subadvisory Agreement and would
provide the Japan Fund with high quality services. The Board also concluded
that the subadvisory fees were reasonable in light of the factors discussed
above.
ECONOMIES OF SCALE
The Board did not review specific information regarding whether there would be
economies of scale with respect to Wellington Management's management of the
Fund because it regards that information as less relevant at the subadviser
level. Rather, the Board noted that it considered information regarding
economies of scale in the context of the renewal of the Investment Advisory and
Management Agreements between the Trust and SunAmerica with respect to the
Japan Fund.
35
SUNAMERICA EQUITY FUNDS
APPROVAL OF SUBADVISORY AGREEMENT -- MARCH 31, 2012 -- (UNAUDITED)
(CONTINUED)
OTHER FACTORS
In consideration of the Subadvisory Agreement, the Board also received
information regarding Wellington's brokerage and soft dollar practices. The
Board considered that SunAmerica and Wellington Management would be responsible
for decisions to buy and sell securities for the Japan Fund, selection of
broker-dealers and negotiation of commission rates.
CONCLUSION
After a full and complete discussion, the Board approved the Subadvisory
Agreement for an initial term ending June 30, 2013. Based upon its evaluation
of all these factors in their totality, the Board, including the Independent
Trustees, was satisfied that the terms of the Subadvisory Agreement were fair
and reasonable and in the best interests of the Japan Fund and the Japan Fund's
shareholders. In arriving at a decision to approve the Subadvisory Agreement,
the Board did not identify any single factor or group of factors as
all-important or controlling, but considered all factors together. Each Trustee
may have contributed different weight to the various factors.
36
[LOGO]
HARBORSIDE FINANCIAL CENTER
3200 PLAZA 5
JERSEY CITY, NJ 07311-4992
TRUSTEES SHAREHOLDER SERVICING This report is submitted
Richard W. Grant 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
William J. Shea 3200 Plaza 5 other than shareholders
Jersey City, NJ of the Funds is
OFFICERS 07311-4992 authorized only in
John T. Genoy, President con-nection with a
and Chief Executive CUSTODIAN AND TRANSFER currently effective
Officer AGENT pro-spectus, setting
Donna M. Handel, State Street Bank and forth details of the
Treasurer Trust Company Funds, which must precede
Timothy P. Pettee, Vice P.O. Box 5607 or accom-pany this report.
President Boston, MA 02110
James Nichols, Vice DELIVERY OF SHAREHOLDER
President VOTING PROXIES ON TRUST DOCUMENTS
Katherine Stoner, Vice PORTFOLIO SECURITIES The Funds have adopted a
President and Chief A description of the policy that allows them
Compliance Officer policies and procedures to send only one copy of
Gregory N. Bressler, that the Trust uses to a Fund's prospectus,
Chief Legal Officer determine how to vote proxy material, annual
and Secretary proxies relating to report and semi-annual
Gregory R. Kingston, securities held in a report (the "shareholder
Vice President and Fund's portfolio which is documents") to
Assistant Treasurer available in the Trust's shareholders with
Kathleen Fuentes, Statement of Additional multiple accounts
Assistant Secretary Information, may be residing at the same
John E. McLean, obtained without charge "household." This
Assistant Secretary upon request, by calling practice is called
Nori L. Gabert, Vice (800) 858-8850. This householding and reduces
President and in-formation is also Fund expenses, which
Assistant Secretary available from the EDGAR benefits you and other
Matthew Hackethal, database on the U.S. shareholders. Unless the
Anti-Money Laundering Securities and Ex-change Funds receive
Compliance Officer Commission's website at instructions to the
John E. Smith Jr., http://www.sec.gov. con-trary, you will only
Assistant Treasurer receive one copy of the
PROXY VOTING RECORD ON shareholder documents.
INVESTMENT ADVISER SUNAMERICA EQUITY FUNDS The Funds will continue
SunAmerica Asset Information regarding how to household the
Management Corp. SunAmerica Equity Funds share-holder documents
Harborside Financial voted proxies relating to indefinitely, until we
Center securities held in are instructed otherwise.
3200 Plaza 5 SunAmerica Equity Funds If you do not wish to
Jersey City, NJ during the most recent participate in
07311-4992 twelve month period ended householding, please
June 30 is available, contact Shareholder
DISTRIBUTOR once filed with the U.S. Services at (800)
SunAmerica Capital Securities and Exchange 858-8850 ext. 6010 or
Services, Inc. Commission, without send a written request
Harborside Financial charge, upon request, by with your name, the name
Center calling (800) 858-8850 or of your fund(s) and your
3200 Plaza 5 on the U.S. Securities account number(s) to
Jersey City, NJ and Exchange Commission's SunAmerica Mutual Funds
07311-4992 website at c/o BFDS, P.O. Box
http://www.sec.gov. 219186, Kansas City MO,
64121-9186. We will
DISCLOSURE OF QUARTERLY resume individual
PORTFOLIO HOLDINGS mailings for your account
The Trust is required to within thirty (30) days
file its complete of receipt of your
schedule of portfolio request.
holdings with the U.S.
Securities and Exchange The accompanying report
Commission for its first has not been audited by
and third fiscal quarters independent accountants
on Form N-Q. The Trust's and accordingly no
Forms N-Q are available opinion has been
on the U.S. Securities expressed thereon.
and Exchange Commission's
website at
http://www.sec.gov. You
can also review and
obtain copies of the
Forms N-Q at the U.S.
Securities and Exchange
Com-mission's Public
Reference Room in
Wash-ington, DC
(information on the
operation of Public
Reference Room may be
obtained by calling
1-800-SEC-0330).
[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.SAFUNDS.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.safunds.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.
FUNDS DISTRIBUTED BY SUNAMERICA CAPITAL SERVICES, INC.
This fund report must be preceded by or accompanied by a prospectus.
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.safunds.com. Read
the prospectus carefully before investing.
WWW.SAFUNDS.COM
EQSAN - 3/12
[LOGO]
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
Included in Item 1 to the Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders
may recommend nominees to the registrant's Board of Trustees that were
implemented after the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR
299.407) (as required by 22(b)(15)) of Schedule 14A (17 CFR 240.14a-
101), or this Item 10.
Item 11. Controls and Procedures.
(a) An evaluation was performed within 90 days of the filing of this
report, under the supervision and with the participation of the
registrant's management, including the President and Treasurer, of the
effectiveness of the design and operation of the registrant's
disclosure controls and procedures (as defined under Rule 30a-3(c)
under the Investment Company Act of 1940 (17 CFR 270. 30a-3(c))). Based
on that evaluation, the registrant's management, including the
President and Treasurer, concluded that the registrant's disclosure
controls and procedures are effective.
(b) There was no change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act
of 1940 (17 CFR 270.30a-3(d))) that occurred during the registrant's
last fiscal quarter of the period covered by this report that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal contro1 over financial reporting.
Item 12. Exhibits.
(a) (1) Not applicable.
(2) Certifications pursuant to Rule 30a-2(a) under the Investment
Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit
99.CERT.
(3) Not applicable.
(b) Certification pursuant to Rule 30a-2(b)under the Investment Company
Act of 1940 (17 CFR 270.30a-2(a)) and Section 906 of the
Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.906.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
SunAmerica Equity Funds
By: /s/ John T. Genoy
------------------
John T. Genoy
President
Date: June 7, 2012
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ John T. Genoy
------------------
John T. Genoy
President
Date: June 7, 2012
By: /s/ Donna M. Handel
-------------------
Donna M. Handel
Treasurer
Date: June 7, 2012