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 5, 185 Hudson Street, Suite 3300 Jersey City, NJ 07311
--------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
John T. Genoy
Senior Vice President
SunAmerica Asset Management, LLC
Harborside 5,
185 Hudson Street, Suite 3300
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, 2017
-------------------------
Item 1. Reports to Stockholders
SEMI-ANNUAL REPORT 2017
SUNAMERICA
Equity Funds
[PHOTO]
[LOGO]
[LOGO]
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.................................... 12
NOTES TO FINANCIAL STATEMENTS............................... 18
SUPPLEMENTS TO THE PROSPECTUS............................... 28
Shareholder Letter -- (unaudited)
Dear Shareholders,
We are pleased to present this semi-annual update for the SunAmerica Equity
Funds (the "Equity Funds") for the six month period ended March 31, 2017.
Please note that effective February 28, 2017, SunAmerica Mutual Funds was
rebranded as AIG Funds, and each Fund's name was changed accordingly.
SunAmerica Asset Management, LLC, the investment adviser to each Fund,
continues to serve as investment adviser of the Funds and retains its current
name. In addition, there was no change in the Funds' investment goals or
strategies, portfolio managers or ticker symbols in connection with the
rebranding.
From a broad perspective, the six months ended March 31, 2017 was a period
wherein global equity markets rallied despite having unexpected political
events both in the U.S. and abroad, as well as two Federal Reserve (the "Fed")
interest rate hikes.
As the annual period began in October 2016, a combination of hawkish Fed
commentary and mounting strong U.S. economic data led to increased anticipation
of a December 2016 interest rate hike by the Fed. U.S. gross domestic product
(GDP) increased by 3.5% on an annualized basis for the third quarter of 2016,
above consensus expectations and the strongest growth rate in two years.
Elsewhere, the European Central Bank (ECB) minutes stressed a commitment to
ongoing monthly bond-buying through March 2017, helping to dispel concerns
about potential tapering. The U.K.'s first official GDP growth figure since the
Brexit vote was more robust than consensus-expected at 0.5%. Japanese equities
enjoyed strong performance owing to weakness of the yen, as Bank of Japan
governor Kuroda stated there was room for further easing if necessary to
achieve its 2% inflation target.
Following the unexpected victory of Donald Trump in the November 2016 U.S.
elections, U.S. and international equities quickly reversed a short-lived
sell-off and surged on anticipation of a pro-growth effect of Mr. Trump's
fiscal stimulus plan. However, U.S. dollar appreciation against local
currencies detracted from international equities' U.S. dollar returns, driving
a November 2016 decline. The Fed raised the targeted federal funds rate by
0.25% in December 2016, for the first time in a year but as had largely been
anticipated, and set a more hawkish hike path for 2017, causing equities to
decline, albeit modestly, following the announcement. International equities
rallied during an eventful December 2016, with the resignation of Prime
Minister Renzi after Italian voters' rejection of that nation's constitutional
reform referendum and the ECB's decision to slow its monthly pace of
quantitative easing while extending the program to the end of 2017.
During the first quarter of 2017, global equities advanced. While U.S. equity
markets flirted with new highs, international equity markets performed even
better, boosted by a weakening U.S. dollar and by the accommodative monetary
stance from the ECB and the Bank of Japan that remained in place. Additionally,
the European economies and the Chinese economy showed some signs of
strengthening during the quarter. Japan, by contrast, maintained a slow pace of
economic growth, despite the extraordinary monetary accommodation by the Bank
of Japan, with cash earnings and consumption particularly low. Emerging market
equities saw particularly robust gains, as riskier positions took the lead and
as corporate earnings expectations increased. Indeed, emerging market
currencies strengthened during the quarter, despite the Fed's gradual rise in
interest rates. Within the U.S., favorable sentiment persisted amid
anticipation of more growth-oriented government policies, such as lower taxes
and reduced regulation. The markets were also encouraged by strengthening
employment and increases in both consumer and business confidence. The rally
lost some steam after the Fed raised interest rates by 0.25% again in March
2017. Further, the failure of the Republican plan to repeal and replace the
Affordable Care Act raised doubts about the party's ability to put the rest of
its agenda in place. Despite the weaker performance for stocks in March 2017,
the major indices finished the quarter with strong positive returns.
Against this backdrop, international equities, as measured by the MSCI ACWI
ex-U.S. (Net),/*/ posted a return of 6.51% in U.S. dollar terms for the
six-month period ended March 31, 2017. Japanese equities, as measured by the
MSCI Japan Index (Net),/*/ posted gains but lagged on a comparative basis,
generating a return of 4.32% in U.S. dollar terms for the same period. To
compare, U.S. equities, as measured by the S&P 500(R) Index,/*/ returned
10.12%, and emerging market equities, as measured by the MSCI Emerging Markets
Index (Net),/*/ returned 6.80%, each for the same six-month period.
2
Amid these conditions, each of the Equity Funds generated positive absolute
returns during the semi-annual period ended March 31, 2017. On the following
pages, you will find financial statements and portfolio information for each of
the Funds.
We thank you for being a part of the 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 at our new website, www.aig.com/funds.
Sincerely,
The SunAmerica Equity Funds Investment Professionals
Timothy Pettee Jun Oh Timothy Campion
Andrew Sheridan Kara Murphy Jane Algieri
--------
Past performance is no guarantee of future results.
* The Morgan Stanley Capital International All Country World Index (MSCI ACWI)
ex-U.S. (Net) is a free float-adjusted market capitalization-weighted index
designed to provide a broad measure of the global equity market performance
of 45 developed and emerging markets throughout the world, excluding the U.S.
Net total return indices reinvest dividends after the deduction of
withholding taxes, using (for international indices) a tax rate applicable to
non-resident institutional investors who do not benefit from double taxation
treaties. The MSCI Japan Index (Net) is a free-float adjusted market
capitalization weighted index that is designed to track the equity market
performance of Japanese securities listed on Tokyo Stock Exchange, Osaka
Stock Exchange, JASDAQ and Nagoya Stock Exchange. Net total return indices
reinvest dividends after the deduction of withholding taxes, using (for
international indices) a tax rate applicable to non-resident institutional
investors who do not benefit from double taxation treaties. 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 MSCI Emerging Markets Index
(Net) is a free float-adjusted market capitalization index that is designed
to measure equity performance of emerging markets. It consists of 23 emerging
market country indices. Net total return indices reinvest dividends after the
deduction of withholding taxes, using (for international indices) a tax rate
applicable to non-resident institutional investors who do not benefit from
double taxation treaties. Indices are not managed and an investor cannot
invest directly in an index.
3
SunAmerica Equity Funds
EXPENSE EXAMPLE -- March 31, 2017 -- (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 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, 2016 and held until March 31, 2017.
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, 2017" to estimate the expenses you paid on your account
during this period. For shareholder accounts in classes other than Class I, the
"Expenses Paid During the Six Months Ended March 31, 2017" column and the
"Annualized Expense Ratio" 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, 2017" 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, 2017" 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 each 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
the "Expenses Paid During the Six Months Ended March 31, 2017" column and the
"Annualized Expense Ratio" 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, 2017" 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, 2017" 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, 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, 2017 -- (unaudited) (continued)
Actual Hypothetical
----------------------------------------- -----------------------------------------
Ending Account
Ending Account Expense Paid Value using Expense Paid
Value Using During the a Hypothetical During the
Beginning Actual Six Months Beginning 5% Assumed Six Months
Account Value Return at Ended Account Value Return at Ended
at October 1, March 31, March 31, at October 1, March 31, March 31,
Fund 2016 2017 2017 2016 2017 2017
---- ------------- -------------- ------------ ------------- -------------- ------------
AIG International Dividend Strategy
Fund#@
Class A........................... $1,000.00 $1,062.15 $ 9.77 $1,000.00 $1,015.46 $ 9.55
Class C........................... $1,000.00 $1,059.30 $13.09 $1,000.00 $1,012.22 $12.79
Class I........................... $1,000.00 $1,062.76 $ 9.26 $1,000.00 $1,015.96 $ 9.05
Class W........................... $1,000.00 $1,062.59 $ 8.74 $1,000.00 $1,016.45 $ 8.55
AIG Japan Fund#@
Class A........................... $1,000.00 $1,084.43 $ 9.87 $1,000.00 $1,015.46 $ 9.55
Class C........................... $1,000.00 $1,081.84 $13.24 $1,000.00 $1,012.22 $12.79
Annualized
Expense
Fund Ratio*
---- ----------
AIG International Dividend Strategy
Fund#@
Class A........................... 1.90%
Class C........................... 2.55%
Class I........................... 1.80%
Class W........................... 1.70%
AIG Japan Fund#@
Class A........................... 1.90%
Class C........................... 2.55%
--------
@ See Note 1
* Expenses are equal to each Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 182 days divided by 365
days (to reflect the one-half year period). These ratios do not reflect
transaction costs, including sales charges on purchase payments, contingent
deferred sales charges, 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 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, 2017" 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, 2017" and the annualized
"Expense Ratio" would have been lower.
5
SunAmerica Equity Funds
STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2017 -- (unaudited)
AIG International
Dividend
Strategy Fund+ AIG Japan Fund+
----------------- ---------------
ASSETS:
Investments at value (unaffiliated)*................ $ 85,437,559 $28,449,223
Repurchase agreements (cost approximates value)..... 772,000 312,000
------------ -----------
Total investments.................................. 86,209,559 28,761,223
------------ -----------
Cash................................................ 760 30
Foreign cash*....................................... 204,829 21,340
Receivable for:
Fund shares sold................................... 130,948 57,238
Dividends and interest............................. 340,377 244,477
Investments sold................................... -- 1,619,006
Prepaid expenses and other assets................... 8,415 7,885
Due from investment adviser for expense
reimbursements/fee waivers......................... 6,641 11,565
------------ -----------
Total assets........................................ 86,901,529 30,722,764
------------ -----------
LIABILITIES:
Payable for:
Fund shares redeemed............................... 178,500 3,238
Investments purchased.............................. -- 1,155,656
Investment advisory and management fees............ 72,537 29,333
Distribution and service maintenance fees.......... 31,999 11,718
Transfer agent fees and expenses................... 27,274 7,595
Trustees' fees and expenses........................ 1,924 1,111
Other accrued expenses............................. 188,402 67,718
Accrued foreign tax on captial gains............... 25,379 --
------------ -----------
Total liabilities................................... 526,015 1,276,369
------------ -----------
Net Assets.......................................... $ 86,375,514 $29,446,395
============ ===========
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $0.01 par value...... $ 96,590 $ 38,042
Paid-in capital..................................... 177,832,266 28,144,930
------------ -----------
177,928,856 28,182,972
Accumulated undistributed net investment income
(loss)............................................. (287,373) (280,341)
Accumulated undistributed net realized gain (loss)
on investments, futures contracts, options
contracts, securities sold short, and foreign
exchange transactions.............................. (95,835,404) (941,218)
Unrealized appreciation (depreciation) on
investments........................................ 4,613,453 2,485,852
Unrealized foreign exchange gain (loss) on other
assets and liabilities............................. (18,639) (870)
Accrued capital gains tax on unrealized
appreciation (depreciation)........................ (25,379) --
------------ -----------
Net Assets.......................................... $ 86,375,514 $29,446,395
============ ===========
*Cost
Investments (unaffiliated)......................... $ 80,824,106 $25,963,371
============ ===========
Foreign cash....................................... $ 205,064 $ 21,254
============ ===========
--------
+ See Note 1
See Notes to Financial Statements
6
SunAmerica Equity Funds
STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2017 -- (unaudited)
(continued)
AIG International
Dividend
Strategy Fund+ AIG Japan Fund+
----------------- ---------------
Class A (unlimited shares authorized):
Net assets.......................................... $66,395,085 $24,422,469
Shares of beneficial interest issued and outstanding 7,305,613 3,127,775
Net asset value and redemption price per share...... $ 9.09 $ 7.81
Maximum sales charge (5.75% of offering price)...... $ 0.55 $ 0.48
----------- -----------
Maximum offering price to public.................... $ 9.64 $ 8.29
=========== ===========
Class C (unlimited shares authorized):
Net assets.......................................... $13,838,847 $ 5,023,926
Shares of beneficial interest issued and outstanding 1,678,182 676,386
Net asset value, offering and redemption price per
share (excluding any applicable contingent
deferred sales charge)............................. $ 8.25 $ 7.43
=========== ===========
Class I (unlimited shares authorized):
Net assets.......................................... $ 247,397 $ --
Shares of beneficial interest issued and outstanding 26,901 --
Net asset value, offering and redemption price per
share.............................................. $ 9.20 $ --
=========== ===========
Class W (unlimited shares authorized):
Net assets.......................................... $ 5,894,185 $ --
Shares of beneficial interest issued and outstanding 648,288 --
Net asset value, offering and redemption price per
share.............................................. $ 9.09 $ --
=========== ===========
--------
+ See Note 1
See Notes to Financial Statements
7
SunAmerica Equity Funds
STATEMENT OF OPERATIONS -- For the six months ended March 31, 2017 --
(unaudited)
AIG International
Dividend
Strategy Fund+ AIG Japan Fund+
----------------- ---------------
INVESTMENT INCOME:
Dividends (unaffiliated)............................................................. $1,062,670 $ 236,351
Interest (unaffiliated).............................................................. 78 62
---------- ----------
Total investment income*............................................................ 1,062,748 236,413
---------- ----------
EXPENSES:
Investment advisory and management fees.............................................. 425,178 175,560
Distribution and service maintenance fees:
Class A............................................................................. 114,575 44,398
Class C............................................................................. 70,041 25,810
Service fees:
Class I............................................................................. 306 --
Class W............................................................................. 3,983 --
Transfer agent fees and expenses:
Class A............................................................................. 85,241 29,767
Class C............................................................................. 19,351 6,379
Class I............................................................................. 834 --
Class W............................................................................. 6,268 --
Registration fees:
Class A............................................................................. 13,606 13,957
Class C............................................................................. 7,311 8,902
Class I............................................................................. 2,037 --
Class W............................................................................. 6,921 --
Custodian and accounting fees........................................................ 20,943 12,471
Reports to shareholders.............................................................. 41,501 3,518
Audit and tax fees................................................................... 34,929 34,878
Legal fees........................................................................... 11,888 8,205
Directors' fees and expenses......................................................... 3,059 1,367
Interest expense..................................................................... 2,620 387
Other expenses....................................................................... 18,036 8,668
---------- ----------
Total expenses before fee waivers, expense reimbursements, and expense recoupments.. 888,628 374,267
Net (Fees waived and expenses reimbursed)/recouped by investment adviser (Note 3)... (38,989) (67,435)
---------- ----------
Net expenses........................................................................ 849,639 306,832
---------- ----------
Net investment income (loss)........................................................... 213,109 (70,419)
---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)**............................... 979,041 1,343,677
Net realized foreign exchange gain (loss) on other assets and liabilities.............. (53,684) (22,825)
---------- ----------
Net realized gain (loss) on investments and foreign currencies......................... 925,357 1,320,852
---------- ----------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)......... 3,854,455 1,111,920
Change in unrealized foreign exchange gain (loss) on other assets and liabilities...... 1,425 275
Change in accrued capital gains tax on unrealized appreciation (depreciation).......... (25,379) --
---------- ----------
Net unrealized gain (loss) on investments and foreign currencies....................... 3,830,501 1,112,195
---------- ----------
Net realized and unrealized gain (loss) on investments and foreign currencies.......... 4,755,858 2,433,047
---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................ $4,968,967 $2,362,628
========== ==========
* Net of foreign withholding taxes on interest and dividends of........................ $ 95,286 $ 28,769
========== ==========
** Net of foreign withholding taxes on capital gains of................................ $ 164 $ --
========== ==========
--------
+ See Note 1
See Notes to Financial Statements
8
SunAmerica Equity Funds
STATEMENT OF CHANGES IN NET ASSETS -- March 31, 2017
AIG International
Dividend
Strategy Fund++
-------------------------
For the
six months
ended For the year
March 31, ended
2017 September 30,
(unaudited) 2016
----------- -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).................................................................. $ 213,109 $ 2,347,183
Net realized gain (loss) on investments and foreign currencies................................ 925,357 (6,646,222)
Net unrealized gain (loss) on investments and foreign currencies.............................. 3,830,501 12,264,963
----------- ------------
Net increase (decrease) in net assets resulting from operations................................ 4,968,967 7,965,924
----------- ------------
Distributions to shareholders from:
Net investment income (Class A)............................................................... (551,683) (1,412,918)
Net investment income (Class C)............................................................... (111,290) (249,596)
Net investment income (Class I)............................................................... (2,069) (5,394)
Net investment income (Class W)............................................................... (46,811) (138,218)
Net realized gain on securities (Class A)..................................................... -- --
Net realized gain on securities (Class C)..................................................... -- --
Net realized gain on securities (Class I)..................................................... -- --
Net realized gain on securities (Class W)..................................................... -- --
----------- ------------
Total distributions to shareholders............................................................ (711,853) (1,806,126)
----------- ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 6)....... (7,598,030) (21,784,719)
----------- ------------
Total increase (decrease) in net assets........................................................ (3,340,916) (15,624,921)
NET ASSETS:
Beginning of period............................................................................ $89,716,430 $105,341,351
----------- ------------
End of period+................................................................................. $86,375,514 $ 89,716,430
=========== ============
+ Includes accumulated undistributed net investment income (loss).............................. $ (287,373) $ 211,371
=========== ============
AIG Japan Fund++
-------------------------
For the
six months
ended For the year
March 31, ended
2017 September 30,
(unaudited) 2016
----------- -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).................................................................. $ (70,419) $ (52,275)
Net realized gain (loss) on investments and foreign currencies................................ 1,320,852 (1,746,666)
Net unrealized gain (loss) on investments and foreign currencies.............................. 1,112,195 5,418,486
----------- -----------
Net increase (decrease) in net assets resulting from operations................................ 2,362,628 3,619,545
----------- -----------
Distributions to shareholders from:
Net investment income (Class A)............................................................... (133,702) --
Net investment income (Class C)............................................................... (1,525) --
Net investment income (Class I)............................................................... -- --
Net investment income (Class W)............................................................... -- --
Net realized gain on securities (Class A)..................................................... -- (1,096,454)
Net realized gain on securities (Class C)..................................................... -- (263,731)
Net realized gain on securities (Class I)..................................................... -- --
Net realized gain on securities (Class W)..................................................... -- --
----------- -----------
Total distributions to shareholders............................................................ (135,227) (1,360,185)
----------- -----------
Net increase (decrease) in net assets resulting from capital share transactions (Note 6)....... (9,461,679) (5,162,562)
----------- -----------
Total increase (decrease) in net assets........................................................ (7,234,278) (2,903,202)
NET ASSETS:
Beginning of period............................................................................ $36,680,673 $39,583,875
----------- -----------
End of period+................................................................................. $29,446,395 $36,680,673
=========== ===========
+ Includes accumulated undistributed net investment income (loss).............................. $ (280,341) $ (74,695)
=========== ===========
++ See Note 1
See Notes to Financial Statements
9
SunAmerica Equity Funds
FINANCIAL HIGHLIGHTS
AIG INTERNATIONAL DIVIDEND STRATEGY FUND#
-----------------------------------------
Net gain
(loss) on
Net investments Distri- Net Net
Asset Net (both Dividends butions Asset Assets
Value investment realized Total from from net from Total Value end of
beginning income and investment investment capital distri- end of Total period
Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's)
------------------ --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- --------
Class A
-
09/30/12 $10.28 $ 0.23 $ 0.66 $ 0.89 $(0.26) $-- $(0.26) $10.91 8.77% $ 51,309
09/30/13 10.91 0.47 0.50 0.97 (0.47) -- (0.47) 11.41 9.24 96,020
09/30/14 11.41 0.40 (0.14) 0.26 (0.34) -- (0.34) 11.33 2.20 162,284
09/30/15 11.33 0.23 (3.29) (3.06) (0.22) -- (0.22) 8.05 (27.24) 71,969
09/30/16 8.05 0.21 0.54 0.75 (0.17) -- (0.17) 8.63 9.49(6) 68,775
03/31/17(7) 8.63 0.03 0.50 0.53 (0.07) -- (0.07) 9.09 6.21 66,395
Class C
-
09/30/12 9.42 0.14 0.61 0.75 (0.14) -- (0.14) 10.03 7.98 12,571
09/30/13 10.03 0.36 0.47 0.83 (0.41) -- (0.41) 10.45 8.56 24,776
09/30/14 10.45 0.30 (0.13) 0.17 (0.27) -- (0.27) 10.35 1.56 46,349
09/30/15 10.35 0.16 (3.01) (2.85) (0.16) -- (0.16) 7.34 (27.70) 22,445
09/30/16 7.34 0.14 0.49 0.63 (0.12) -- (0.12) 7.85 8.73(6) 15,182
03/31/17(7) 7.85 (0.00) 0.46 0.46 (0.06) -- (0.06) 8.25 5.93 13,839
Class I
-
09/30/12 10.36 0.24 0.66 0.90 (0.27) -- (0.27) 10.99 8.84 1,289
09/30/13 10.99 0.44 0.56 1.00 (0.48) -- (0.48) 11.51 9.41 1,184
09/30/14 11.51 0.32 (0.02) 0.30 (0.36) -- (0.36) 11.45 2.45 426
09/30/15 11.45 0.26 (3.34) (3.08) (0.23) -- (0.23) 8.14 (27.13) 283
09/30/16 8.14 0.22 0.55 0.77 (0.18) -- (0.18) 8.73 9.60(6) 260
03/31/17(7) 8.73 0.03 0.51 0.54 (0.07) -- (0.07) 9.20 6.28 247
Class W
-
01/29/15*-09/30/15 9.80 0.27 (1.84) (1.57) (0.19) -- (0.19) 8.04 (16.23) 10,644
09/30/16 8.04 0.21 0.57 0.78 (0.19) -- (0.19) 8.63 9.83(6) 5,500
03/31/17(7) 8.63 0.04 0.49 0.53 (0.07) -- (0.07) 9.09 6.26 5,894
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets net assets Turnover
---------- ------------- ---------
1.90(3)% 2.07(3)% 248%
1.90(3) 4.42(3) 32
1.90(3) 3.47(3) 80
1.88(3) 2.31(3) 160
1.90(3)(5) 2.61(3) 80
1.90(3)(4) 0.60(3)(4) 6
2.55(3) 1.38(3) 248%
2.55(3) 3.70(3) 32
2.55(3) 2.85(3) 80
2.55(3) 1.69(3) 160
2.55(3)(5) 1.78(3) 80
2.55(3)(4) (0.07)(3)(4) 6
1.80(3) 2.14(3) 248%
1.80(3) 3.98(3) 32
1.77(3) 2.66(3) 80
1.71 2.61 160
1.80(3)(5) 2.66(3) 80
1.80(3)(4) 0.69(3)(4) 6
1.70(3)(4) 3.98(3)(4) 160%
1.70(3)(5) 2.50(3) 80
1.70(3)(4) 0.83(3)(4) 6
--------
* Commencement of Operations.
# See Note 1
(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 (recoupments).
(3)Net of the following expense reimbursements (recoupments) (based on average
net assets) (See Note 3):
09/30/12 09/30/13 09/30/14 09/30/15 09/30/16 03/31/17(4)(7)
-------- -------- -------- -------- -------- --------------
AIG International Dividend Strategy Class A. 0.25% 0.16% (0.09)% (0.01)% 0.03% 0.06%
AIG International Dividend Strategy Class C. 0.33 0.20 (0.05) (0.02) 0.08 0.14
AIG International Dividend Strategy Class I. 0.17 0.09 (0.09) -- 1.95 2.10
AIG International Dividend Strategy Class W. -- -- -- 0.20 0.15 0.26
(4)Annualized
(5)Excludes a one time reimbursement the Fund received for custody expenses
paid in the prior years. If the reimbursement had been applied, the ratio of
expenses to the average net assets would have been 1.68%, 2.35%, 1.59% and
1.51% for Class A, Class C, Class I and Class W, respectively.
(6)The Fund's performance figure was increased by 0.25%, 0.28%, 0.25%, 0.25%
for Class A, Class C, Class I and Class W, respectively, for a reimbursement
of custody expenses from prior years.
(7)Unaudited
See Notes to Financial Statements
10
SunAmerica Equity Funds
FINANCIAL HIGHLIGHTS -- (continued)
AIG JAPAN FUND#
---------------
Net gain
(loss) on
Net investments Distri- Net Net
Asset Net (both Dividends butions Asset Assets Ratio of
Value investment realized Total from from net from Total Value end of expenses
beginning income and investment investment capital distri- end of Total period to average
Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's) net assets(3)
------------ --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- ------- -------------
Class A
-
09/30/12 $7.73 $ 0.04 $ 0.02 $ 0.06 $(0.01) $(1.37) $(1.38) $6.41 1.38% $20,714 1.90%
09/30/13 6.41 (0.01) 1.86 1.85 (0.16) -- (0.16) 8.10 29.54 25,053 1.90
09/30/14 8.10 (0.01) 0.37 0.36 (0.15) (0.58) (0.73) 7.73 4.81 35,178 1.90
09/30/15 7.73 (0.03) (0.36) (0.39) (0.05) (0.58) (0.63) 6.71 (4.91) 32,241 1.90
09/30/16 6.71 0.00 0.75 0.75 -- (0.22) (0.22) 7.24 11.26 30,895 1.90
03/31/17(5) 7.24 (0.01) 0.62 0.61 (0.04) -- (0.04) 7.81 8.44 24,422 1.90(4)
Class C
-
09/30/12 7.54 (0.02) 0.05 0.03 -- (1.37) (1.37) 6.20 0.85 438 2.55
09/30/13 6.20 (0.03) 1.77 1.74 (0.10) -- (0.10) 7.84 28.58 2,222 2.55
09/30/14 7.84 (0.05) 0.34 0.29 (0.12) (0.58) (0.70) 7.43 4.07 4,542 2.55
09/30/15 7.43 (0.07) (0.35) (0.42) (0.01) (0.58) (0.59) 6.42 (5.52) 7,343 2.55
09/30/16 6.42 (0.05) 0.72 0.67 -- (0.22) (0.22) 6.87 10.50 5,785 2.55
03/31/17(5) 6.87 (0.04) 0.60 0.56 (0.00) -- (0.00) 7.43 8.18 5,024 2.55(4)
Ratio
of net
investment
income (loss)
to average Portfolio
net assets(3) Turnover
------------- ---------
0.52% 192%
(0.12) 162
(0.19) 111
(0.46) 144
0.01 151
(0.35)(4) 71
(0.23) 192%
(0.43) 162
(0.65) 111
(0.95) 144
(0.78) 151
(0.99)(4) 71
--------
# See Note 1
(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 (recoupments).
(3)Net of the following expense reimbursements (based on average net assets)
(See Note 3):
09/30/12 09/30/13 09/30/14 09/30/15 09/30/16 03/31/17(4)(5)
-------- -------- -------- -------- -------- --------------
AIG Japan Class A....................... 0.59% 0.55% 0.29% 0.24% 0.41% 0.40%
AIG Japan Class C....................... 2.80 1.57 0.84 0.50 0.56 0.65
(4)Annualized
(5)Unaudited
See Notes to Financial Statements
11
AIG International Dividend Strategy Fund#
PORTFOLIO PROFILE -- March 31, 2017 -- (unaudited)
Industry Allocation*
Food-Retail.................................. 9.6%
Medical-Drugs................................ 5.9
Cellular Telecom............................. 5.7
Human Resources.............................. 4.8
Television................................... 4.1
Airlines..................................... 4.1
Building-Heavy Construction.................. 4.1
Electric-Integrated.......................... 3.1
Internet Content-Information/News............ 2.5
Oil Refining & Marketing..................... 2.4
Aerospace/Defense............................ 2.3
Electronic Components-Misc................... 2.3
Building & Construction Products-Misc........ 2.2
Metal Processors & Fabrication............... 2.2
Chemicals-Diversified........................ 2.2
Building-Residential/Commercial.............. 2.1
Rubber-Tires................................. 2.1
Transport-Services........................... 2.1
Office Automation & Equipment................ 2.0
Semiconductor Components-Integrated Circuits. 2.0
Circuit Boards............................... 2.0
Cosmetics & Toiletries....................... 2.0
Power Converter/Supply Equipment............. 2.0
Real Estate Operations & Development......... 2.0
Computers.................................... 1.9
Retail-Major Department Stores............... 1.9
Metal-Diversified............................ 1.9
Telephone-Integrated......................... 1.9
Insurance-Multi-line......................... 1.9
Multimedia................................... 1.8
Networking Products.......................... 1.8
Auto-Cars/Light Trucks....................... 1.8
Diversified Financial Services............... 1.7
Electronic Components-Semiconductors......... 1.7
Retail-Apparel/Shoe.......................... 1.6
Food-Meat Products........................... 1.6
Tobacco...................................... 1.6
Repurchase Agreements........................ 0.9
----
99.8%
====
Country Allocation*
United Kingdom. 15.9%
France......... 15.8
Japan.......... 12.0
Germany........ 8.2
Taiwan......... 8.2
Switzerland.... 4.3
Spain.......... 3.9
Sweden......... 3.7
China.......... 3.7
Australia...... 3.7
Brazil......... 3.5
Turkey......... 2.4
Netherlands.... 2.4
Thailand....... 2.1
Cayman Islands. 2.0
Hong Kong...... 1.9
Russia......... 1.9
South Africa... 1.9
South Korea.... 1.4
United States.. 0.9
----
99.8%
====
--------
*Calculated as a percentage of net assets
#See Note 1
12
AIG International Dividend Strategy Fund#
PORTFOLIO OF INVESTMENTS -- March 31, 2017 -- (unaudited)
Value
Security Description Shares (Note 2)
COMMON STOCKS -- 98.9%
Australia -- 3.7%
Telstra Corp., Ltd................. 414,375 $ 1,475,274
Wesfarmers, Ltd.................... 48,834 1,681,524
-----------
3,156,798
-----------
Bermuda -- 0.0%
Peace Mark Holdings, Ltd.+(1)(2)... 800,000 0
-----------
Brazil -- 3.5%
BB Seguridade Participacoes SA..... 169,974 1,585,396
JBS SA............................. 432,961 1,412,040
-----------
2,997,436
-----------
Cayman Islands -- 2.0%
Zhen Ding Technology Holding, Ltd.. 740,000 1,738,881
-----------
China -- 3.7%
China Galaxy Securities Co., Ltd... 1,652,000 1,524,138
China Vanke Co., Ltd.+............. 628,200 1,697,510
-----------
3,221,648
-----------
France -- 15.8%
Carrefour SA....................... 62,350 1,469,981
Casino Guichard Perrachon SA....... 33,404 1,868,363
Cie de Saint-Gobain................ 37,423 1,921,686
Engie SA+.......................... 105,528 1,495,026
Orange SA.......................... 106,410 1,653,392
Sanofi............................. 21,361 1,928,313
Schneider Electric SE.............. 23,223 1,700,259
Vivendi SA......................... 81,317 1,581,000
-----------
13,618,020
-----------
Germany -- 8.2%
Deutsche Post AG................... 51,949 1,779,233
K+S AG............................. 81,544 1,895,537
METRO AG........................... 54,192 1,733,204
ProSiebenSat.1 Media SE............ 37,951 1,680,376
-----------
7,088,350
-----------
Hong Kong -- 1.9%
Lenovo Group, Ltd.................. 2,528,000 1,665,491
-----------
Japan -- 12.0%
Bridgestone Corp................... 44,600 1,803,950
Canon, Inc......................... 56,800 1,770,887
Fuji Heavy Industries, Ltd......... 42,300 1,551,342
Japan Airlines Co., Ltd............ 53,600 1,697,598
Japan Tobacco, Inc................. 41,400 1,345,416
Mixi, Inc.......................... 45,100 2,171,347
-----------
10,340,540
-----------
Netherlands -- 2.4%
Randstad Holding NV................ 35,523 2,050,170
-----------
Russia -- 1.9%
MMC Norilsk Nickel PJSC ADR........ 105,585 1,659,796
-----------
South Africa -- 1.9%
MTN Group, Ltd..................... 176,926 1,608,868
-----------
South Korea -- 1.4%
Korea Electric Power Corp.+........ 30,142 1,251,986
-----------
Shares/
Principal Value
Security Description Amount (Note 2)
Spain -- 3.9%
ACS Actividades de Construccion y
Servicios SA..................................... 54,383 $ 1,850,413
Distribuidora Internacional de Alimentacion SA.... 258,364 1,494,151
-----------
3,344,564
-----------
Sweden -- 3.7%
Skanska AB, Class B............................... 70,610 1,662,682
Telefonaktiebolaget LM Ericsson, Class B.......... 236,081 1,575,515
-----------
3,238,197
-----------
Switzerland -- 4.3%
Adecco Group AG................................... 29,065 2,064,568
Roche Holding AG.................................. 6,488 1,656,897
-----------
3,721,465
-----------
Taiwan -- 8.2%
Catcher Technology Co., Ltd....................... 193,000 1,908,215
Foxconn Technology Co., Ltd....................... 6,013 18,331
Hon Hai Precision Industry Co., Ltd............... 644,000 1,931,416
MediaTek, Inc..................................... 208,500 1,477,383
Novatek Microelectronics Corp.+................... 452,000 1,750,350
-----------
7,085,695
-----------
Thailand -- 2.1%
Advanced Info Service PCL......................... 350,000 1,828,301
-----------
Turkey -- 2.4%
Tupras Turkiye Petrol Rafinerileri AS............. 83,186 2,064,515
-----------
United Kingdom -- 15.9%
AstraZeneca PLC................................... 24,482 1,506,836
BAE Systems PLC................................... 241,321 1,942,606
easyJet PLC+...................................... 142,647 1,833,693
ITV PLC........................................... 677,945 1,859,331
Marks & Spencer Group PLC......................... 394,676 1,666,431
Next PLC.......................................... 26,251 1,420,843
Persimmon PLC..................................... 68,865 1,806,724
Unilever PLC...................................... 34,855 1,720,374
-----------
13,756,838
-----------
Total Long-Term Investment Securities
(cost $80,824,106)............................... 85,437,559
-----------
REPURCHASE AGREEMENTS -- 0.9%
Agreement with Fixed Income Clearing Corp.,
bearing interest at 0.09%, dated 03/31/2017, to
be repurchased 04/03/2017 in the amount
$772,006 collateralized by $815,000 of United
States Treasury Bonds, bearing interest at
2.88% due 08/15/2045 and having an
approximate value of $792,002
(cost $772,000).................................. $772,000 772,000
-----------
TOTAL INVESTMENTS --
(cost $81,596,106)(3)............................ 99.8% 86,209,559
Other assets less liabilities....................... 0.2 165,955
-------- -----------
NET ASSETS -- 100.0% $86,375,514
======== ===========
--------
# See Note 1
+ Non-income producing security
13
AIG International Dividend Strategy Fund#
PORTFOLIO OF INVESTMENTS -- March 31, 2017 -- (unaudited) (continued)
(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, 2017, the aggregate value of these
securities was $0 representing 0.0% of net assets.
(3) See Note 5 for cost of investments on a tax basis.
ADR --American Depositary Receipt
The following is a summary of the inputs used to value the Funds's net assets
as of March 31, 2017 (see Note 2):
Level 1 -- Unadjusted Level 2 -- Other Level 3 -- Significant
Quoted Prices Observable Inputs Unobservable Inputs Total
- --------------------- ----------------- ---------------------- -----------
ASSETS:
Investments at Value:*
Common Stocks:
Bermuda.................. $ -- $ -- $ 0 $ 0
Other Countries.......... 85,437,559 -- -- 85,437,559
Repurchase Agreements...... -- 772,000 -- 772,000
----------- -------- --- -----------
Total Investments at Value. $85,437,559 $772,000 $ 0 $86,209,559
=========== ======== === ===========
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
The Fund's policy is to recognize transfers between Levels as of the end of the
reporting period. There were no transfers between Levels during the reporting
period.
At the beginning and end of the reporting period, Level 3 investments in
securities were not considered a material portion of the Fund.
See Notes to Financial Statements
14
AIG Japan Fund#
PORTFOLIO PROFILE -- March 31, 2017 -- (unaudited)
Industry Allocation*
Rubber-Tires........................... 6.2%
Auto/Truck Parts & Equipment-Original.. 5.7
Chemicals-Specialty.................... 5.4
Electronic Components-Misc............. 5.3
Television............................. 4.8
Telephone-Integrated................... 4.2
Computers-Integrated Systems........... 4.0
Building-Residential/Commercial........ 3.9
Diversified Banking Institutions....... 3.7
Auto-Heavy Duty Trucks................. 3.5
Chemicals-Diversified.................. 3.0
Food-Confectionery..................... 2.9
Insurance-Property/Casualty............ 2.8
Cosmetics & Toiletries................. 2.5
E-Commerce/Products.................... 2.5
Retail-Drug Store...................... 2.3
Steel-Producers........................ 2.3
Engineering/R&D Services............... 2.2
Auto-Cars/Light Trucks................. 2.0
Photo Equipment & Supplies............. 2.0
Computer Services...................... 2.0
Electronic Connectors.................. 1.9
Building-Maintenance & Services........ 1.9
Transport-Marine....................... 1.9
Audio/Video Products................... 1.8
Oil Companies-Exploration & Production. 1.6
E-Commerce/Services.................... 1.5
Import/Export.......................... 1.5
Airlines............................... 1.5
Web Portals/ISP........................ 1.5
Entertainment Software................. 1.4
Travel Services........................ 1.3
Medical-Drugs.......................... 1.2
Repurchase Agreements.................. 1.1
Medical Instruments.................... 1.1
Aerospace/Defense-Equipment............ 1.0
Finance-Credit Card.................... 1.0
Consulting Services.................... 0.6
Internet Content-Information/News...... 0.5
Collectibles........................... 0.2
----
97.7%
====
Country Allocation*
Japan......... 96.6%
United States. 1.1
----
97.7%
====
--------
*Calculated as a percentage of net assets
15
AIG Japan Fund#
PORTFOLIO OF INVESTMENTS -- March 31, 2017 -- (unaudited)
Value
Security Description Shares (Note 2)
COMMON STOCKS -- 96.6%
Aerospace/Defense-Equipment -- 1.0%
IHI Corp.................................... 93,262 $ 294,035
----------
Airlines -- 1.5%
Japan Airlines Co., Ltd..................... 13,924 440,995
----------
Audio/Video Products -- 1.8%
Panasonic Corp.............................. 45,764 517,121
----------
Auto-Cars/Light Trucks -- 2.0%
Mazda Motor Corp............................ 20,300 292,292
Suzuki Motor Corp........................... 7,464 309,877
----------
602,169
----------
Auto-Heavy Duty Trucks -- 3.5%
Hino Motors, Ltd............................ 85,702 1,036,923
----------
Auto/Truck Parts & Equipment-Original -- 5.7%
NGK Insulators, Ltd......................... 40,399 914,448
NGK Spark Plug Co., Ltd..................... 21,495 491,182
Toyota Industries Corp...................... 5,692 282,734
----------
1,688,364
----------
Building-Maintenance & Services -- 1.9%
Kyoritsu Maintenance Co., Ltd.+............. 18,906 562,951
----------
Building-Residential/Commercial -- 3.9%
Daiwa House Industry Co., Ltd............... 20,076 576,331
Sekisui House, Ltd.......................... 34,000 559,184
----------
1,135,515
----------
Chemicals-Diversified -- 3.0%
DIC Corp.................................... 9,085 335,393
Sumitomo Chemical Co., Ltd.................. 98,064 547,883
----------
883,276
----------
Chemicals-Specialty -- 5.4%
Daicel Corp................................. 55,110 663,815
Teijin, Ltd................................. 12,300 231,903
Toray Industries, Inc....................... 79,000 700,377
----------
1,596,095
----------
Collectibles -- 0.2%
Sanrio Co., Ltd............................. 2,374 43,608
----------
Computer Services -- 2.0%
SCSK Corp.+................................. 14,727 584,688
----------
Computers-Integrated Systems -- 4.0%
Fujitsu, Ltd................................ 157,188 961,370
Otsuka Corp................................. 3,740 202,907
----------
1,164,277
----------
Consulting Services -- 0.6%
FreakOut Holdings, Inc.+.................... 5,489 162,456
----------
Cosmetics & Toiletries -- 2.5%
Kose Corp.+................................. 8,075 730,398
----------
Diversified Banking Institutions -- 3.7%
Mitsubishi UFJ Financial Group, Inc......... 174,871 1,099,050
----------
E-Commerce/Products -- 2.5%
Rakuten, Inc................................ 72,700 728,110
----------
Value
Security Description Shares (Note 2)
E-Commerce/Services -- 1.5%
Dip Corp.................................. 20,800 $ 453,815
----------
Electronic Components-Misc. -- 5.3%
Alps Electric Co., Ltd.................... 22,508 637,858
Hitachi Maxell, Ltd....................... 14,405 262,792
Minebea Mitsumi, Inc...................... 50,496 673,552
----------
1,574,202
----------
Electronic Connectors -- 1.9%
Japan Aviation Electronics Industry, Ltd.. 44,035 565,221
----------
Engineering/R&D Services -- 2.2%
JGC Corp.................................. 16,092 279,691
Kyudenko Corp............................. 13,600 370,754
----------
650,445
----------
Entertainment Software -- 1.4%
Capcom Co., Ltd........................... 2,400 46,801
Square Enix Holdings Co., Ltd............. 12,691 359,083
----------
405,884
----------
Finance-Credit Card -- 1.0%
AEON Financial Service Co., Ltd........... 15,400 290,073
----------
Food-Confectionery -- 2.9%
Ezaki Glico Co., Ltd.+.................... 17,877 867,114
----------
Import/Export -- 1.5%
ITOCHU Corp............................... 31,625 448,823
----------
Insurance-Property/Casualty -- 2.8%
Tokio Marine Holdings, Inc................ 19,847 837,164
----------
Internet Content-Information/News -- 0.5%
Next Co., Ltd............................. 23,200 157,334
----------
Medical Instruments -- 1.1%
Nihon Kohden Corp......................... 13,800 308,526
----------
Medical-Drugs -- 1.2%
Ono Pharmaceutical Co., Ltd............... 16,800 347,755
----------
Miscellaneous Manufacturing -- 0.0%
Peace Mark Holdings, Ltd.+(1)(2).......... 8,000 0
----------
Oil Companies-Exploration & Production -- 1.6%
Inpex Corp................................ 48,832 480,074
----------
Photo Equipment & Supplies -- 2.0%
FUJIFILM Holdings Corp.................... 15,017 586,490
----------
Retail-Drug Store -- 2.3%
Matsumotokiyoshi Holdings Co., Ltd........ 14,470 686,262
----------
Rubber-Tires -- 6.2%
Toyo Tire & Rubber Co., Ltd............... 101,490 1,823,228
----------
Steel-Producers -- 2.3%
JFE Holdings, Inc......................... 39,747 681,372
----------
Telephone-Integrated -- 4.2%
Nippon Telegraph & Telephone Corp......... 29,003 1,237,962
----------
Television -- 4.8%
Nippon Television Holdings, Inc........... 81,961 1,411,293
----------
16
AIG Japan Fund#
PORTFOLIO OF INVESTMENTS -- March 31, 2017 -- (unaudited) (continued)
Shares/
Principal Value
Security Description Amount (Note 2)
COMMON STOCKS (continued)
Transport-Marine -- 1.9%
Nippon Yusen KK................................... 264,222 $ 557,731
-----------
Travel Services -- 1.3%
HIS Co., Ltd...................................... 15,776 368,433
-----------
Web Portals/ISP -- 1.5%
Yahoo Japan Corp.................................. 95,300 439,991
-----------
Total Long-Term Investment Securities
(cost $25,963,371)............................... 28,449,223
-----------
REPURCHASE AGREEMENTS -- 1.1%
Agreement with Fixed Income Clearing Corp.,
bearing interest at 0.09%, dated 03/31/2017, to
be repurchased 04/03/2017 in the amount of
$312,002 collateralized by $315,000 of United
States Treasury Bonds, bearing interest at
3.13% due 08/15/2044 and having an
approximate value of $321,808
(cost $312,000).................................. $312,000 312,000
-----------
TOTAL INVESTMENTS
(cost $26,275,371)(3)............................ 97.7% 28,761,223
Other assets less liabilities....................... 2.3 685,172
-------- -----------
NET ASSETS 100.0% $29,446,395
======== ===========
--------
# 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, 2017, the aggregate value of these
securities was $0 representing 0.0% of net assets.
(3)See Note 5 for cost of investments on a tax basis.
The following is a summary of the inputs used to value the Portfolio's net
assets as of March 31, 2017 (see Note 2):
Level 1 -- Unadjusted Level 2 -- Other Level 3 -- Significant
Quoted Prices Observable Inputs Unobservable Inputs Total
--------------------- ----------------- ---------------------- -----------
ASSETS:
Investments at Value:*
Common Stocks:
Miscellaneous Manufacturing. $ -- $ -- $ 0 $ 0
Other Industries............ 28,449,223 -- -- 28,449,223
Repurchase Agreements......... -- 312,000 -- 312,000
----------- -------- --- -----------
Total Investments at Value.... $28,449,223 $312,000 $ 0 $28,761,223
=========== ======== === ===========
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
The Fund's policy is to recognize transfers between Levels as of the end of the
reporting period. There were no transfers between Levels during the reporting
period.
At the beginning and end of the reporting period, Level 3 investments in
securities were not considered a material portion of the Fund.
See Notes to Financial Statements
17
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2017 -- (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 18, 1986. It currently consists of two 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, LLC (the
"Adviser" or "SunAmerica"). An investor may invest in one or more of the
following Funds: AIG International Dividend Strategy Fund ("International
Dividend Strategy Fund"), or AIG Japan Fund ("Japan Fund"). The Funds are
considered to be separate entities for financial and tax reporting purposes.
On November 18, 2016, the Board of Directors approved a change in the name
of the SunAmerica International Dividend Strategy Fund and SunAmerica Japan
Fund to the AIG International Dividend Strategy Fund and AIG Japan Fund,
respectively, effective February 28, 2017. SunAmerica Asset Management, LLC,
the investment adviser to each Fund, continues to serve as investment
adviser of the Funds and retains its current name. In addition, there was no
change in the Funds' investment goals or strategies, portfolio managers or
ticker symbols in connection with the rebranding.
The investment objective and principal investment techniques for each of the
Funds are as follows:
International Dividend Strategy Fund seeks total return by employing a "buy
and hold" strategy to identify approximately 50 to 100 high dividend
yielding equity securities selected annually from the MSCI ACWI ex-U.S.
Index. At least 80% of the Fund's net assets, plus any borrowing for
investment purposes, will be invested in dividend yielding equity securities.
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.
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.
Class I shares are closed to new purchases, but existing investors may
continue to purchase shares through reinvestments of dividends and capital
gains distributions.
Class W shares are offered at net asset value per share. The class is
offered exclusively through advisory fee-based programs sponsored by certain
financial intermediaries and other programs.
Each class of shares bears the same voting, dividend, liquidation and other
rights and conditions, except as may otherwise be provided in the Trust's
registration statement. Class A 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 Class C shares are subject to
higher distribution fee rates. Class I and Class W shares have not adopted a
12b-1 plan and make no payments thereunder, however, Class I and Class W
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
18
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2017 -- (unaudited)
(continued)
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 ("GAAP") requires management to make
estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results could differ from those
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: In accordance with the authoritative guidance on fair
value measurements and disclosures under GAAP, the Funds disclose the fair
value of their investments in a hierarchy that prioritizes the inputs to
valuation techniques used to measure the fair value. In accordance with
GAAP, fair value is defined as the price that the Funds would receive upon
selling an asset or transferring a liability in a timely transaction to an
independent third party in the principal or most advantageous market. GAAP
establishes a three-tier hierarchy to provide more transparency around the
inputs used to measure fair value and to establish classification of fair
value measurements for disclosure purposes. Inputs refer broadly to the
assumptions that market participants would use in pricing the asset or
liability, including assumptions about risk. Inputs may be observable or
unobservable. Observable inputs are inputs that reflect the assumptions
market participants would use in pricing the asset or liability developed
based on market data obtained from sources independent of the reporting
entity. Unobservable inputs are inputs that reflect the reporting entity's
own assumptions about the assumptions market participants would use in
pricing the asset or liability developed based on the best information
available in the circumstances. The three tiers are as follows:
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 of Trustees (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)
Changes in valuation techniques may result in transfers in or out of an
investment's assigned Level within the hierarchy. The methodology used for
valuing investments is not necessarily an indication of the risk associated
with investing in those investments and the determination of the
significance of a particular input to the fair value measurement in its
entirety requires judgment and consideration of factors specific to each
security.
The availability of observable inputs can vary from security to security and
is affected by a wide variety of factors, including, for example, the type
of security, whether the security is recently issued and not yet established
in the marketplace, the liquidity of markets, and other characteristics
particular to the security. To the extent that valuation is based on models
or inputs that are less observable or unobservable in the market, the
determination of fair value requires more judgment. Accordingly, the degree
of judgment exercised in determining fair value is greatest for instruments
categorized in Level 3.
The Summary of the Funds' assets and liabilities classified in the fair
value hierarchy as of March 31, 2017, is reported on a schedule following
the portfolio of investments.
Stocks are generally valued based upon closing sales prices reported on
recognized securities exchanges on which the securities are principally
traded and are generally categorized as Level 1. 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
19
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2017 -- (unaudited)
(continued)
day of valuation, at the last-reported bid price. If a security's price is
available from more than one exchange, the Funds use the exchange that is
the primary market for the security. Such securities are generally
categorized as Level 1. However, depending on the foreign market, closing
prices may be up to 15 hours old when they are used to price a Fund's
shares, and a Fund may determine that certain closing prices do not reflect
the fair value of the security. This determination will be based on the
review of a number of factors, including developments in foreign markets,
the performance of U.S. securities markets, and the performance of
instruments trading in U.S. markets that represent foreign securities and
baskets of foreign securities. If a Fund determines that closing prices do
not reflect the fair value of the securities, the Fund will adjust the
previous closing prices in accordance with pricing procedures approved by
the Board to reflect what it believes to be the fair value of the securities
as of the close of regular trading on the NYSE. The Funds may also fair
value securities in other situations, for example, when a particular foreign
market is closed but a Fund is open. For foreign equity securities and
foreign equity futures contracts, the Funds use an outside pricing service
to provide it with closing market prices and information used for adjusting
those prices, and when so adjusted, such securities and futures are
generally categorized as Level 2.
Bonds, debentures, and other debt securities are valued at evaluated bid
prices obtained for the day of valuation from a Board-approved pricing
service and are generally categorized as Level 2. The pricing service 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, maturity date, option
adjusted spread models, prepayments projections, interest rate spreads, and
yield curves to determine current value. If a price is unavailable from a
Board-approved pricing service, the securities may be priced at the mean of
two independent quotes obtained from brokers.
Investments in registered investment companies that do not trade on an
exchange are valued at the end of day net asset value per share. Investments
in 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. Registered investment companies are generally categorized as Level 1.
Other securities are valued on the basis of last sale or bid price (if a
last sale price is not available) which is, in the opinion of the Adviser,
the broadest and most representative market, that may be either a securities
exchange or OTC market, and are generally categorized as Level 1 or Level 2.
The Board is responsible for the share valuation process and has adopted
policies and procedures (the "PRC Procedures") for valuing the securities
and other assets held by the Funds, including procedures for the fair
valuation of securities and other assets for which market quotations are not
readily available or are unreliable. The PRC Procedures provide for the
establishment of a pricing review committee, which is responsible for, among
other things, making certain determinations in connection with the Trust's
fair valuation procedures. Securities for which market quotations are not
readily available or the values of which may be significantly impacted by
the occurrence of developments or significant events are generally
categorized as Level 3. There is no single standard for making fair value
determinations, which may result in prices that vary from those of other
funds.
Master Agreements: The Funds have entered into Master Repurchase Agreements
("Master Agreements") with certain counterparties that govern repurchase
agreement transactions. The Master Agreements may contain provisions
regarding, among other things, the parties' general obligations,
representations, agreements, collateral requirements and events of default.
Collateral can be in the form of cash or securities as agreed to by the
Funds and applicable counterparty. The Master Agreements typically specify
certain standard termination events, such as failure of a party to pay or
deliver, credit support defaults and other events of default. Upon the
occurrence of an event of default, the other party may elect to terminate
early and cause settlement of all repurchase agreement transactions
outstanding pursuant to a particular Master Agreement, including the payment
of any losses and costs resulting from such early termination, as reasonably
determined by the terminating party. Any decision by one or more of the
Funds' counterparties to elect early termination could cause the Funds to
accelerate the payment of liabilities. Typically, the Master Agreement will
permit a single net payment in the event of default. Note, however, that
bankruptcy or insolvency laws of a particular jurisdiction may impose
restrictions on or prohibitions against the right of offset in bankruptcy,
insolvency or other events. As of March 31, 2017, the repurchase agreements
held by the Funds are subject to master netting agreements. See the
Portfolio of Investments for more information about a Fund's holdings in
repurchase agreements.
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
20
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2017 -- (unaudited)
(continued)
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 Trust's 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, a Fund has the right to liquidate the collateral and apply
the proceeds in satisfaction of the obligation. If the seller defaults and
the value of the collateral declines or if bankruptcy proceedings are
commenced with respect to the seller of the security, realization of the
collateral by a Fund may be delayed or limited.
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. For financial statement purposes,
the Funds amortize all premiums and accrete all discounts on fixed income
securities.
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 Trust 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 from the sale of foreign securities at various rates.
Net investment income, expenses 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 share activity of the respective class).
Expenses common to all Funds are allocated among the Funds based upon
relative net assets or other appropriate allocation methods. In all other
respects, expenses are charged to each Fund as incurred on a specific
identification basis.
Dividends from net investment income, if any, are normally paid quarterly
for the International Dividend Strategy Fund. The Japan Fund pays annually.
Capital gain distributions, if any, are paid annually. Each of the Funds
reserves the right to declare and pay dividends less frequently than
disclosed above, provided that the net realized capital gains and net
investment income, if any, are paid at least 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 in accordance with federal income tax
regulations, which may differ from GAAP. 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 assets
are not affected by these reclassifications.
Each Fund is considered a separate entity for tax purposes and 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 capital gains on investments, to its
shareholders. Each Fund also intends to distribute sufficient net investment
income and net capital gains, if any, so that each Fund will not be subject
to excise tax on undistributed income and gains. Therefore, no federal
income tax or excise tax provision is required.
Each Fund recognizes the tax benefits of uncertain tax positions only when
the position is more likely than not to be sustained, assuming examination
by tax authorities. Management has analyzed each Fund's tax positions and
concluded that no liability for unrecognized tax benefits should be recorded
related to uncertain tax positions taken on returns filed for open
tax years 2013 -- 2015 or expected to be taken in each Fund's 2016 tax
return. The Funds are not aware of any tax provisions for which it is
reasonably possible that the total amounts of unrecognized tax benefits will
change materially in the next twelve months. 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 2013.
21
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2017 -- (unaudited)
(continued)
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 year.
Similarly, the Funds do not isolate the effect of changes in foreign
exchange rates from the changes in the market prices of portfolio securities
sold during the year.
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.
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
Fees
----------
International Dividend Strategy Fund. 1.00%
Japan Fund........................... 1.15
For the six months ended March 31, 2017, SunAmerica earned fees in the
amounts stated in the Statement of Operations.
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.
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 fees and/or reimbursed expense calculations, annual fund
operating expenses shall not include extraordinary expenses (i.e., expenses
that are unusual in nature and/or infrequent in occurrence, such as
litigation), or acquired fund fees and expenses, brokerage commissions and
other transactional expenses relating to the purchase and sale of portfolio
securities, interest, taxes governmental fees and other expenses not
incurred in the ordinary course of the Funds' business. 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 Dividend Strategy Fund Class A... 1.90%
International Dividend Strategy Fund Class C... 2.55
International Dividend Strategy Fund Class I .. 1.80
International Dividend Strategy Fund Class W... 1.70
Japan Fund Class A............................. 1.90
Japan Fund Class C............................. 2.55
22
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2017 -- (unaudited)
(continued)
Any contractual waivers and/or reimbursements made by SunAmerica are subject
to recoupment from the Funds within two years after the occurrence of the
waiver and/or reimbursement, provided that the Funds are able to effect such
payments to SunAmerica and remain in compliance with the expense limitations
in effect at the time the waivers and/or reimbursements were made.
For the six months ended March 31, 2017, pursuant to the contractual expense
limitations referred to above, SunAmerica has waived or reimbursed expenses
as follows:
Other Expense
Reimbursed
-------------
Japan Fund................................................ $8,489
Amount
-------
International Dividend Strategy Fund Class A.............. $19,869
International Dividend Strategy Fund Class C.............. 9,762
International Dividend Strategy Fund Class I.............. 2,575
International Dividend Strategy Fund Class W.............. 6,783
Japan Fund Class A........................................ 43,666
Japan Fund Class C........................................ 15,280
For the six months ended March 31, 2017, SunAmerica did not recoup any prior
waivers and/or reimbursements from the Funds.
At March 31, 2017, expenses previously waived and/or reimbursed by
SunAmerica during the prior two years that remain subject to recoupment and
expires during the time periods indicated are as follows:
Other Expenses Reimbursed
----------------------------------------------------
September 30, 2017 September 30, 2018 March 31, 2019
------------------ ------------------ --------------
Japan Fund................................................ $9,052 $61,057 $8,489
Class Specific Expenses Reimbursed
----------------------------------------------------
September 30, 2017 September 30, 2018 March 31, 2019
------------------ ------------------ --------------
International Dividend Strategy Fund Class A.............. $ -- $18,416 $19,869
International Dividend Strategy Fund Class C.............. 3,101 23,062 9,762
International Dividend Strategy Fund Class I.............. -- 5,164 2,575
International Dividend Strategy Fund Class W.............. 2,943 21,714 6,783
Japan Fund Class A........................................ 34,935 80,068 43,666
Japan Fund Class C........................................ 12,145 29,711 15,280
The Trust, on behalf of each Fund, has entered into a Distribution Agreement
with AIG Capital Services, Inc. ("ACS" 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 W 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" 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 and Class C Plan, the Distributor receives a
distribution fee from a Fund at an annual rate of 0.10% and 0.75%,
respectively, of the average daily net assets of the Fund's Class A 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 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, 2017, ACS received fees (see Statement of Operations) based
upon the aforementioned rates.
23
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2017 -- (unaudited)
(continued)
In addition, ACS is paid a fee of 0.25% and 0.15% of average daily net
assets of Class I and Class W shares, respectively, in connection with
providing administrative and shareholder services to Class I and Class W
shareholders. For the six months ended March 31, 2017, ACS earned fees (see
Statement of Operations) based upon the aforementioned rates.
ACS receives sales charges on each Fund's Class A shares, portions of which
are reallocated to affiliated broker-dealers and non-affiliated
broker-dealers. ACS also receives the proceeds of contingent deferred sales
charges paid by investors in connection with certain redemptions of each
Fund's Class A and Class C shares. ACS has advised the Funds that for the
six months ended March 31, 2017, the proceeds received from sales (and paid
out to affiliated and non-affiliated broker-dealers) and redemptions are as
follows:
Class A Class C
--------------------------------------------------- -------------
Contingent Contingent
Sales Affiliated Non-affiliated Deferred Deferred
Charges Broker-dealers Broker-dealers Sales Charges Sales Charges
------- -------------- -------------- ------------- -------------
International Dividend Strategy Fund...................... $25,023 $6,672 $14,334 $-- $ 347
Japan Fund................................................ 6,965 590 5,252 -- 1,067
The Trust has entered into a Service Agreement with AIG Fund Services, Inc.
("AFS"), an affiliate of the Adviser. Under the Service Agreement, AFS
performs certain shareholder account functions by assisting the Funds'
transfer agent, State Street Bank and Trust Company ("State Street"), in
connection with the services that it offers to the shareholders of the
Funds. Pursuant to the Service Agreement, the Funds pay a fee to AFS for
services rendered based upon an annual rate of 0.22% of average daily net
assets. For the six months ended March 31, 2017, 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 AFS pursuant to the terms of
the Service Agreement.
Expense Payable at March 31, 2017
------------------------------- -------------------------------
Class A Class C Class I Class W Class A Class C Class I Class W
------- ------- ------- ------- ------- ------- ------- -------
International Dividend Strategy Fund...................... $72,018 $15,409 $270 $5,842 $12,259 $2,576 $46 $1,077
Japan Fund................................................ 27,907 5,678 -- -- 4,667 945 -- --
At March 31, 2017, the following affiliates owned a percentage of the
outstanding shares of the following funds: AIG Multi-Asset Allocation
Portfolio and AIG Active Allocation Portfolio owned 15% and 11%,
respectively, of the International Dividend Strategy Fund and AIG
Multi-Asset Allocation Portfolio and AIG Active Allocation Portfolio owned
44% and 10%, respectively, of the Japan Fund.
Note 4. Purchases and Sales of Investment Securities
The cost of purchases and proceeds from sales and maturities of long-term
investments during the six months ended March 31, 2017 were as follows:
International
Dividend Strategy
Fund Japan Fund
----------------- -----------
Purchases (excluding U.S. government securities).......... $ 5,423,051 $21,414,164
Sales (excluding U.S. government securities).............. 14,789,317 31,967,727
Purchase of U.S. government securities.................... -- --
Sales and maturities of U.S. government securities........ -- --
24
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2017 -- (unaudited)
(continued)
Note 5. Federal Income Taxes
The following details the tax basis of distributions as well as the
components of distributable earnings. The tax basis components of
distributable earnings differ from the amounts reflected in the Statement of
Assets and Liabilities by temporary book/tax differences primarily arising
from wash sales, post October losses, investments in passive foreign
investment companies and derivative transactions.
For the year ended September 30, 2016
----------------------------------------------------------------
Distributable Earnings Tax Distributions
--------------------------------------- ------------------------
Long-term Unrealized
Ordinary Gains/Capital Appreciation Ordinary Long-Term
Income Loss Carryover (Depreciation)* Income Capital Gains
-------- -------------- --------------- ---------- -------------
International Dividend Strategy Fund...................... $243,048 $(89,270,962) $643,050 $1,806,126 $ --
Japan Fund................................................ 100,741 (1,687,151) 655,158 727,465 632,720
--------
* Unrealized appreciation (depreciation) includes amounts for derivatives and
other assets and liabilities denominated in foreign currency.
As of March 31, 2017, for Federal income tax purposes, the Funds indicated
below have capital loss carryforwards, which expire in the year indicated,
which are available to offset future capital gains, if any:
Capital Loss Carryforward+ Unlimited+
-------------------------- -----------------------
2017 2018 ST LT
----------- ----------- ----------- -----------
International Dividend Strategy Fund*..................... $16,578,456 $19,381,525 $33,402,080 $19,908,901
Japan Fund................................................ -- -- 614,476 1,072,675
--------
+ 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, a 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. Additionally, post-enactment capital losses that
are carried forward will retain their character as either short-term or
long-term losses rather than being considered all short-term as under
previous law.
* 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
March 31, 2017, based on current tax law, the International Dividend
Strategy Fund has $0 of capital losses that will not be available for use.
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, 2017:
International
Dividend
Strategy Fund Japan Fund
------------- -----------
Cost (tax basis)........................... $81,691,990 $26,993,000
=========== ===========
Appreciation............................... 8,074,166 2,706,491
Depreciation............................... (3,556,597) (938,268)
----------- -----------
Net unrealized appreciation (depreciation). $ 4,517,569 $ 1,768,223
=========== ===========
25
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2017 -- (unaudited)
(continued)
Note 6. Capital Share Transactions
Transactions in capital shares of each class of each Fund were as follows:
International Dividend Strategy Fund
--------------------------------------------------------------------------------------------------
Class A Class C
------------------------------------------------- -----------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2017 year ended March 31, 2017 year ended
(unaudited) September 30, 2016 (unaudited) September 30, 2016
----------------------- ------------------------ --------------------- ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ----------- ---------- ------------ -------- ----------- ---------- ------------
Shares sold......... 253,668 $ 2,186,783 1,699,575 $ 13,897,531 65,113 $ 506,985 250,950 $ 1,868,884
Reinvested dividends 61,650 522,796 164,428 1,335,978 11,323 87,300 26,215 194,988
Shares redeemed..... (980,789) (8,408,607) (2,838,285) (23,060,441) (332,052) (2,581,313) (1,403,335) (10,378,770)
---------- ----------- ---------- ------------ -------- ----------- ---------- ------------
Net increase
(decrease)......... (665,471) $(5,699,028) (974,282) $ (7,826,932) (255,616) $(1,987,028) (1,126,170) $ (8,314,898)
========== =========== ========== ============ ======== =========== ========== ============
International Dividend Strategy Fund
--------------------------------------------------------------------------------------------------
Class I Class W
------------------------------------------------- -----------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2017 year ended March 31, 2017 year ended
(unaudited) September 30, 2016 (unaudited) September 30, 2016
----------------------- ------------------------ --------------------- ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ----------- ---------- ------------ -------- ----------- ---------- ------------
Shares sold......... -- $ -- -- $ -- 171,653 $ 1,490,059 125,838 $ 1,026,277
Reinvested dividends 241 2,069 656 5,394 2,158 18,304 6,288 50,905
Shares redeemed..... (3,182) (27,440) (5,604) (44,621) (163,017) (1,394,966) (817,838) (6,680,844)
---------- ----------- ---------- ------------ -------- ----------- ---------- ------------
Net increase
(decrease)......... (2,941) $ (25,371) (4,948) $ (39,227) 10,794 $ 113,397 (685,712) $ (5,603,662)
========== =========== ========== ============ ======== =========== ========== ============
Japan Fund
--------------------------------------------------------------------------------------------------
Class A Class C
------------------------------------------------- -----------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2017 year ended March 31, 2017 year ended
(unaudited) September 30, 2016 (unaudited) September 30, 2016
----------------------- ------------------------ --------------------- ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ----------- ---------- ------------ -------- ----------- ---------- ------------
Shares sold......... 69,280 $ 527,730 916,013 $ 6,349,699 22,375 $ 164,014 353,794 $ 2,316,573
Reinvested dividends 15,982 118,111 123,097 864,144 181 1,271 31,106 208,408
Shares redeemed..... (1,226,136) (8,963,371) (1,576,662) (10,562,614) (187,967) (1,309,434) (686,597) (4,338,772)
---------- ----------- ---------- ------------ -------- ----------- ---------- ------------
Net increase
(decrease)......... (1,140,874) $(8,317,530) (537,552) $ (3,348,771) (165,411) $(1,144,149) (301,697) $ (1,813,791)
========== =========== ========== ============ ======== =========== ========== ============
Note 7. Line of Credit
The Trust has access to a $75 million committed unsecured line of credit
and, along with certain other funds managed by the Adviser, a $50 million
uncommitted unsecured line of credit. The committed and uncommitted lines of
credit are renewable on an annual basis with State Street, the Trust's
custodian. Interest is currently payable on the committed line of credit at
the higher of the Federal Funds Rate (but not less than zero) plus 125 basis
points or the One-Month London Interbank Offered Rate (but not less than
zero) plus 125 basis points and State Street's discretionary bid rate on the
uncommitted line of credit. The Trust, on behalf of each of the Funds, has
paid State Street for its own account, such Fund's ratable portion of an
upfront fee in an amount equal to $100,000 in the aggregate for the
committed and uncommitted lines of credit and the committed line of credit
made available by State Street to certain other funds managed by the
Adviser, which are also party to the uncommitted line of credit. The
$100,000 upfront fee is inclusive of a closing fee of 5 basis points on the
uncommitted line of credit. There is also a
26
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2017 -- (unaudited)
(continued)
commitment fee of 25 basis points per annum on the daily unused portion of
the committed line of credit. Borrowings under the line of credit will
commence when the respective Fund's cash shortfall exceeds $100,000. For the
six months ended March 31, 2017, the following Funds had borrowings:
Days Interest Average Debt Weighted Average
Outstanding Charges Utilized Interest
----------- -------- ------------ ----------------
International Dividend Strategy Fund...................... 39 $911 $ 446,836 1.95%
Japan Fund................................................ 6 387 1,308,468 1.79
At March 31, 2017, there were no borrowings outstanding.
Note 8. 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 lend 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, 2017, the Funds did not participate in
this program.
Note 9. Investment Concentration
The Funds invest internationally, including in "emerging market" countries.
Emerging market securities involve risks not typically associated with
investing in securities of issuers in more developed markets. The markets of
emerging market countries are typically more volatile and potentially less
liquid than more developed 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, because the Japan
Fund concentrates its investments in Japan, the Fund's performance is
expected to be closely tied to social, political and economic conditions of
that country. These risks are primary risks of the Japan Fund.
27
SunAmerica Equity Funds
SUPPLEMENTS TO THE PROSPECTUS
THE SUPPLEMENTS ARE NOT PART OF THE SEMI-ANNUAL REPORT
SUNAMERICA EQUITY FUNDS
AIG International Dividend Strategy Fund
AIG Japan Fund
(each, a "Fund," and collectively, the "Funds")
Supplement dated April 7, 2017 to the Funds' Prospectus ("Prospectus")
and Statement of Additional Information ("SAI"), as supplemented and amended to
date
Effective immediately, the following changes are made to the Prospectus and SAI.
The first paragraph under the subsection entitled "Fees and Expenses of the
Fund" in each Fund's "Fund Highlights" section of the Prospectus is amended to
add a cross-reference to the "Financial Intermediary-Specific Sales Charge
Waiver Policies" section of the Prospectus.
The following paragraph is added after the first paragraph under the section of
the Prospectus entitled "Shareholder Account Information -- Sales Charge
Reductions and Waivers":
The availability of certain sales charge waivers and reductions will depend on
whether you purchase your shares through a financial intermediary or directly
through a Fund. Financial intermediaries may have different policies and
procedures regarding the availability of frontend sales charge waivers and
reductions or CDSC waivers, as referenced below. For waivers and reductions not
available through a particular financial intermediary, shareholders will have
to purchase Fund shares through another financial intermediary or directly
through a Fund to receive these waivers or reductions. If Merrill Lynch is your
financial intermediary, please see the section entitled "Financial
Intermediary-Specific Sales Charge Waiver Policies" on page A-1of this
Prospectus for additional information about sales charge waivers and reductions
that may be available to you.
The last paragraph under the section of the Prospectus entitled "Shareholder
Account Information - Sales Charge Reductions and Waivers" is amended to add a
cross-reference to the "Financial Intermediary-Specific Sales Charge Waiver
Policies" section of the Prospectus.
The following section is added after the section entitled "Financial
Highlights" in the Prospectus:
FINANCIAL INTERMEDIARY-SPECIFIC SALES CHARGE WAIVER POLICIES
MERRILL LYNCH
Effective April 10, 2017, shareholders purchasing fund shares through a Merrill
Lynch platform or account will be eligible only for the following sales charge
waivers (frontend sales charge waivers and CDSC waivers) and reductions, which
may differ from those disclosed elsewhere in this Prospectus or SAI.
FRONT-END SALES CHARGE WAIVERS FOR CLASS A SHARES AVAILABLE AT MERRILL LYNCH
.. Employer-sponsored retirement, deferred compensation and employee benefit
plans (including health savings accounts) and trusts used to fund those
plans, provided that the shares are not held in a commission-based brokerage
account and shares are held for the benefit of the plan
.. Shares purchased by or through a 529 Plan
.. Shares purchased through a Merrill Lynch affiliated investment advisory
program
.. Shares purchased by third party investment advisers on behalf of their
advisory clients through Merrill Lynch's platform
.. Shares of funds purchased through the Merrill Edge Self-Directed platform
(if applicable)
.. Shares purchased through reinvestment of capital gains distributions and
dividend reinvestment when purchasing shares of the same fund (but not any
other fund within AIG Funds)
.. Shares exchanged from Class C (i.e., level-load) shares of the same fund in
the month of or following the 10year anniversary of the purchase date
28
SunAmerica Equity Funds
SUPPLEMENTS TO THE PROSPECTUS -- (continued)
.. Employees and registered representatives of Merrill Lynch or its affiliates
and their family members
.. Trustees of the Trust , and employees of the Adviser or any of its
affiliates, as described in this Prospectus
.. Shares purchased from the proceeds of redemptions within AIG Funds, provided
(1) the repurchase occurs within 90 days following the redemption, (2) the
redemption and purchase occur in the same account, and (3) redeemed shares
were subject to a frontend or deferred sales charge (known as rights of
reinstatement)
CDSC WAIVERS ON CLASS A AND C SHARES AVAILABLE AT MERRILL LYNCH
.. Death or disability of the shareholder
.. Shares sold as part of a systematic withdrawal plan as described in the
Funds' Prospectus
.. Return of excess contributions from an IRA Account
.. Shares sold as part of a required minimum distribution for IRA and
retirement accounts due to the shareholder reaching age 70 /
.. Shares sold to pay Merrill Lynch fees but only if the transaction is
initiated by Merrill Lynch
.. Shares acquired through a right of reinstatement
.. Shares held in retirement brokerage accounts that are exchanged for a lower
cost share class due to a transfer to certain feebased accounts or platforms
FRONT-END SALES CHARGE DISCOUNTS AVAILABLE AT MERRILL LYNCH: BREAKPOINTS,
RIGHTS OF ACCUMULATION & LETTERS OF INTENT
.. Breakpoints as described in this Prospectus
.. Rights of Accumulation ("ROA") that entitle shareholders to breakpoint
discounts will be automatically calculated based on the aggregated holding
of AIG Funds assets held by accounts within the purchaser's household at
Merrill Lynch. Eligible AIG Funds assets not held at Merrill Lynch may be
included in the ROA calculation only if the shareholder notifies his or her
financial advisor about such assets
.. Letters of Intent which allow for breakpoint discounts based on anticipated
purchases within AIG Funds, through Merrill Lynch, over a 13month period of
time (if applicable)
The first paragraph under each of the sections of the SAI entitled "Additional
Information Regarding Purchase of Shares -- Waiver of CDSCs," "Additional
Information Regarding Purchase of Shares -- Waiver of Sales Charges with
Respect to Certain Purchases of Class A Shares" and "Additional Information
Regarding Purchase of Shares -- Reduced Sales Charges (Class A Shares only)" is
amended to add a cross-reference to the "Financial Intermediary-Specific Sales
Charge Waiver Policies" section of the Prospectus.
Capitalized terms used herein but not defined shall have the meanings assigned
to them in the Prospectus or SAI.
29
AIG Funds
Harborside 5
185 Hudson Street, Suite 3300
Jersey City, NJ 07311
Trustees Shareholder Servicing DELIVERY OF SHAREHOLDER
Richard W. Grant Agent DOCUMENTS
Peter A. Harbeck AIG Fund Services, Inc. The Funds have adopted a
Dr. Judith L. Craven Harborside 5 policy that allows them
William F. Devin 185 Hudson Street, Suite to send only one copy of
Stephen J. Gutman 3300 a Fund's prospectus,
Officers Jersey City, NJ 07311 proxy material, annual
John T. Genoy, President Custodian and Transfer report and semi-annual
and Chief Executive Agent report (the "shareholder
Officer State Street Bank and documents") to
Kara Murphy, Vice Trust Company shareholders with
President P.O. Box 5607 multiple accounts
James Nichols, Vice Boston, MA 02110 residing at the same
President VOTING PROXIES ON TRUST "household." This
Gregory N. Bressler, PORTFOLIO SECURITIES practice is called
Secretary A description of the householding and reduces
Christopher C. Joe, policies and procedures Fund expenses, which
Chief Compliance that the Trust uses to benefits you and other
Officer determine how to vote shareholders. Unless the
Gregory R. Kingston, proxies relating to Funds receive
Treasurer securities held in a instructions to the
Shawn Parry, Vice Fund's portfolio which is con-trary, you will only
President and available in the Trust's receive one copy of the
Assistant Treasurer Statement of Additional shareholder documents.
Donna McManus, Vice Information, may be The Funds will continue
President and obtained without charge to household the
Assistant Treasurer upon request, by calling share-holder documents
Kathleen Fuentes, Chief (800) 858-8850. This indefinitely, until we
Legal Officer and in-formation is also are instructed otherwise.
Assistant Secretary available from the EDGAR If you do not wish to
Matthew J. Hackethal, database on the U.S. participate in
Anti-Money Laundering Securities and Ex-change householding, please
Compliance Officer Commission's website at contact Shareholder
Investment Adviser http://www.sec.gov. Services at (800)
SunAmerica Asset PROXY VOTING RECORD ON 858-8850 ext. 6010 or
Management, LLC SUNAMERICA EQUITY FUNDS send a written request
Harborside 5 Information regarding how with your name, the name
185 Hudson Street, Suite SunAmerica Equity Funds of your fund(s) and your
3300 voted proxies relating to account number(s) to
Jersey City, NJ 07311 securities held in SunAmerica Mutual Funds
Distributor SunAmerica Equity Funds c/o BFDS, P.O. Box
AIG Capital Services, during the most recent 219186, Kansas City MO,
Inc. twelve month period ended 64121-9186. We will
Harborside 5 June 30 is available, resume individual
185 Hudson Street, Suite once filed with the U.S. mailings for your account
3300 Securities and Exchange within thirty (30) days
Jersey City, NJ 07311 Commission, without of receipt of your
charge, upon request, by request.
calling (800) 858-8850 or This report is submitted
on the U.S. Securities solely for the general
and Exchange Commission's information of
website at shareholders of the
http://www.sec.gov. Funds. Distribution of
DISCLOSURE OF QUARTERLY this report to persons
PORTFOLIO HOLDINGS other than shareholders
The Trust is required to of the Funds is
file its complete authorized only in
schedule of portfolio con-nection with a
holdings with the U.S. currently effective
Securities and Exchange pro-spectus, setting
Commission for its first forth details of the
and third fiscal quarters Funds, which must precede
on Form N-Q. The Trust's or accom-pany this report.
Forms N-Q are available The accompanying report
on the U.S. Securities has not been audited by
and Exchange Commission's independent accountants
website at and accordingly no
http://www.sec.gov. You opinion has been
can also review and expressed thereon.
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.aig.com/funds
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.aig.com/funds 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.
AIG Funds are advised by SunAmerica Asset Management, LLC (SAAMCo) and
distributed by AIG Capital Services, Inc. (ACS), Member FINRA. Harborside 5,
185 Hudson Street, Suite 3300, Jersey City, NJ 07311, 800-858-8850. SAAMCo and
ACS are members of American International Group, Inc. (AIG).
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
AIG Funds Sales Desk at 800-858-8850, ext. 6003, or at aig.com/funds. Read the
prospectus carefully before investing.
aig.com/funds
EQSAN - 3/17
[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
229.407) (as required by 22(b)(15)) of Schedule 14A (17 CFR 240.14a-
101), or this Item 10.
Item 11. Controls and Procedures.
(a) An evaluation was performed within 90 days of the filing of this
report, under the supervision and with the participation of the
registrant's management, including the President and Treasurer, of the
effectiveness of the design and operation of the registrant's
disclosure controls and procedures (as defined under Rule 30a-3(c)
under the Investment Company Act of 1940 (17 CFR 270. 30a-3(c))). Based
on that evaluation, the registrant's management, including the
President and Treasurer, concluded that the registrant's disclosure
controls and procedures are effective.
(b) There was no change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act
of 1940 (17 CFR 270.30a-3(d))) that occurred during the registrant's
last fiscal quarter of the period covered by this report that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal contro1 over financial reporting.
Item 12. Exhibits.
(a) (1) 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 8, 2017
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 8, 2017
By: /s/ Gregory R. Kingston
-------------------
Gregory R. Kingston
Treasurer
Date: June 8, 2017