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, 2019
-------------------------
Item 1. Reports to Stockholders
SEMI-ANNUAL REPORT 2019
SUNAMERICA
Equity Funds
[PHOTO]
Beginning on January 1, 2021, as permitted by regulations adopted by the
Securities and Exchange Commission, paper copies of each Fund's shareholder
reports will no longer be sent by mail, unless you specifically request paper
copies of the reports from the Fund or your financial intermediary. Instead,
the reports will be made available on a website, and you will be notified by
mail each time a report is posted and provided with a website link to access
the report.
If you already elected to receive shareholder reports electronically, you will
not be affected by this change and you need not take any action. At any time,
you may elect to receive reports and other communications from a Fund
electronically by calling 800-858-8850 or contacting your financial
intermediary directly.
You may elect to receive all future reports in paper free of charge. If your
account is held directly at the Fund, you can inform the Fund that you wish to
receive paper copies of reports by calling 800-858-8850. If your account is
held through a financial intermediary, please contact the financial
intermediary to make this election. Your election to receive paper will apply
to all AIG Funds in which you are invested and may apply to all funds held with
your financial intermediary.
[LOGO]
aig.com/funds
TABLE OF CONTENTS
SHAREHOLDER LETTER.................. 2
EXPENSE EXAMPLE..................... 4
STATEMENT OF ASSETS AND LIABILITIES. 6
STATEMENT OF OPERATIONS............. 7
STATEMENT OF CHANGES IN NET ASSETS.. 8
FINANCIAL HIGHLIGHTS................ 9
PORTFOLIO OF INVESTMENTS............ 11
NOTES TO FINANCIAL STATEMENTS....... 17
SUPPLEMENT TO THE PROSPECTUS........ 27
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, 2019. From
a broad perspective, the period was a tale of two halves, as global equities
tumbled in the fourth quarter of 2018 to post their worst quarterly return
since September 2008 and then surged in the first quarter of 2019 to post their
best quarterly return since September 2009.
As the semi-annual period began with the fourth quarter of 2018, concerns about
slowing global economic growth weighed heavily on the global equity markets.
China's economy grew at the weakest pace in a decade, and economic growth in
the Eurozone moderated. Markets contended with myriad risks, including
increased geopolitical tensions, elevated volatility, tighter liquidity and
trade uncertainty. On the monetary policy front, the U.S. Federal Reserve (the
"Fed") raised interest rates by 25 basis points/*/ to the highest level in a
decade. The European Central Bank (ECB) concluded its asset purchase program
but announced it will continue its reinvestment policy for an extended period
of time. The People's Bank of China reduced its reserve requirement ratio/**/
in an effort to spur economic growth in that country. For the quarter, U.S.
equities suffered their largest quarterly loss since 2011. European equities
ended the quarter lower, with concerns about budget negotiations between Italy
and the European Union, protests in France, Brexit risks/***/ and trade
developments among key areas of focus. All equity markets in the Pacific Basin
declined, with Japan underperforming by a substantial margin, as increased
global economic growth risks weighed on Japan's export-dependent economy.
Emerging markets equities fell precipitously as sentiment was weighed upon by
unresolved U.S.-China trade issues, rising U.S. interest rates and concerns
about slowing global economic growth.
In a sharp reversal, global equity markets were buoyed during the first quarter
of 2019 by productive trade negotiations between the U.S. and China and by
dovish+ rhetoric and policy action from the major central banks. The U.S.
delayed its plan to increase tariffs on $200 billion of imports from China amid
constructive dialogue between U.S. and Chinese trade representatives and
growing optimism the two countries can ultimately reach a trade agreement.
Brexit remained a key area of concern, with the British Parliament rejecting
Prime Minister May's deal for the third time, leaving the future relationship
between the U.K. and the European Union clouded in uncertainty. On the monetary
front, the ECB surprised markets by pushing back interest rate increases,
slashing its economic growth forecast and unveiling stimulus measures to revive
the Eurozone economy amid slowing growth, escalating Brexit risks, political
uncertainty and ongoing trade tensions. In the U.S., the Fed left short-term
interest rates unchanged and indicated its rates would likely remain stable in
2019. The Bank of Japan maintained its key short-term interest rate and guided
for continued asset purchases until inflation meets its 2% target. For the
quarter, U.S. equities rallied to their largest quarterly gain since 2009,
buoyed by the dovish shift in Fed policy and guidance, optimism for a
U.S.-China trade deal, relatively strong fourth quarter 2018 corporate earnings
and corporate share buybacks. European equities gained as central banks put
quantitative tightening on hold and equity valuations appeared attractive to
many investors. Pacific Basin equities rose alongside other global markets in
the first quarter of 2019, though Japanese equities underperformed the region
as inflation there sank to 0.2% in the quarter. Emerging markets equities were
bolstered by the U.S. Fed's decision to keep interest rates unchanged and by
improved trade sentiment.
Against this backdrop, international equities, as measured by the MSCI ACWI
ex-U.S. (Net),++ posted a return of -2.33% in U.S. dollar terms for the
six-month period ended March 31, 2019. Japanese equities, as measured by the
MSCI Japan Index (Net),++ were weaker, generating a return of -8.52% in U.S.
dollar terms for the same period. To compare, U.S. equities, as measured by the
S&P 500(R) Index,++ returned -1.72%, and emerging markets equities, as measured
by the MSCI Emerging Markets Index (Net),++ gained 1.71% for the same six-month
period.
2
Amid these conditions, each of the Equity Funds closely tracked their
respective benchmark indices during the semi-annual period ended March 31,
2019. On the following pages, you will find financial statements and portfolio
information for each of the Equity Funds.
We thank you for being a part of AIG 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 advisor or get in touch with us directly at 800-858-8850 or via our
website at www.aig.com/funds.
Sincerely,
THE SUNAMERICA EQUITY FUNDS INVESTMENT PROFESSIONALS
Timothy Pettee Jun Oh Timothy Campion
Andrew Sheridan Jane Bayar Algieri Elizabeth Mauro
--------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
* A basis point is 1/100/th/ of a percentage point.
** Reserve requirement ratio is the portion of reservable liabilities
commercial banks must hold onto rather than lend out or invest.
***Brexit refers to the U.K.'s path out of the European Union.
+ Dovish language suggests lower interest rates; opposite of hawkish.
++ The MSCI ACWI (MORGAN STANLEY CAPITAL INTERNATIONAL ALL COUNTRY WORLD INDEX)
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. 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. The S&P 500(R) 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 24
emerging market country indices.
Indices are not managed and an investor cannot invest directly in an index. 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.
3
SUNAMERICA EQUITY FUNDS
EXPENSE EXAMPLE -- MARCH 31, 2019 -- (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, 2018 and held until March 31, 2019.
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, 2019" to estimate the expenses you paid on your account
during this period. For shareholder accounts in classes other than Class W, the
"Expenses Paid During the Six Months Ended March 31, 2019" 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, 2019" 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, 2019" 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 W
the "Expenses Paid During the Six Months Ended March 31, 2019" 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, 2019" 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, 2019" 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, 2019 -- (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 2018 2019 2019 2018 2019 2019
---- ------------- -------------- ------------ ------------- -------------- ------------
AIG INTERNATIONAL DIVIDEND STRATEGY
FUND(2)
Class A........................... $1,000.00 $976.37 $ 9.36 $1,000.00 $1,105.46 $ 9.55
Class C........................... $1,000.00 $974.00 $12.55 $1,000.00 $1,012.22 $12.79
Class W........................... $1,000.00 $977.87 $ 8.38 $1,000.00 $1,016.45 $ 8.55
AIG JAPAN FUND(2)
Class A........................... $1,000.00 $910.12 $ 9.05 $1,000.00 $1,015.46 $ 9.55
Class C........................... $1,000.00 $906.83 $12.12 $1,000.00 $1,012.22 $12.79
Class W........................... $1,000.00 $910.32 $ 8.10 $1,000.00 $1,016.45 $ 8.55
ANNUALIZED
EXPENSE
FUND RATIO(1)
---- ----------
AIG INTERNATIONAL DIVIDEND STRATEGY
FUND(2)
Class A........................... 1.90%
Class C........................... 2.55%
Class W........................... 1.70%
AIG JAPAN FUND(2)
Class A........................... 1.90%
Class C........................... 2.55%
Class W........................... 1.70%
--------
(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.
(2)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, 2019" 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, 2019" and the annualized
"Expense Ratio" would have been lower.
5
SUNAMERICA EQUITY FUNDS
STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2019 -- (UNAUDITED)
AIG INTERNATIONAL
DIVIDEND
STRATEGY FUND AIG JAPAN FUND
----------------- --------------
ASSETS:
Investments at value (unaffiliated)*................ $ 62,010,119 $18,086,508
Repurchase agreements (cost approximates value)..... 130,000 581,000
Cash................................................ 252 502
Foreign cash*....................................... 132,476 16,785
Receivable for:
Fund shares sold................................... 1,600,830 297,173
Dividends and interest............................. 438,176 164,155
Investments sold................................... -- 86,172
Prepaid expenses and other assets................... 5,271 4,458
Due from investment adviser for expense
reimbursements/fee waivers......................... 21,714 31,661
------------ -----------
Total assets........................................ 64,338,838 19,268,414
------------ -----------
LIABILITIES:
Payable for:
Fund shares redeemed............................... 25,479 13,541
Investments purchased.............................. -- --
Investment advisory and management fees............ 52,963 18,493
Distribution and service maintenance fees.......... 21,259 7,858
Transfer agent fees and expenses................... 19,302 5,236
Trustees' fees and expenses........................ 1,044 537
Other accrued expenses............................. 150,332 61,517
------------ -----------
Total liabilities................................... 270,379 107,182
------------ -----------
Net Assets.......................................... $ 64,068,459 $19,161,232
============ ===========
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $0.01 par value...... $ 77,961 $ 30,849
Paid-in capital..................................... 126,337,934 22,911,033
------------ -----------
126,415,895 22,941,882
Total accumulated earnings (loss)................... (62,347,436) (3,780,650)
------------ -----------
Net Assets.......................................... $ 64,068,459 $19,161,232
============ ===========
*Cost
Long-term investment securities (unaffiliated)..... $ 64,510,419 $20,181,318
============ ===========
Foreign cash....................................... $ 132,983 $ 16,813
============ ===========
CLASS A (UNLIMITED SHARES AUTHORIZED):
Net assets.......................................... $ 57,237,205 $14,889,914
Shares of beneficial interest issued and outstanding 6,903,354 2,360,788
Net asset value and redemption price per share...... $ 8.29 $ 6.31
Maximum sales charge (5.75% of offering price)...... $ 0.51 $ 0.38
------------ -----------
Maximum offering price to public.................... $ 8.80 $ 6.69
============ ===========
CLASS C (UNLIMITED SHARES AUTHORIZED):
Net assets.......................................... $ 5,340,089 $ 4,023,889
Shares of beneficial interest issued and outstanding 713,100 684,993
Net asset value, offering and redemption price per
share (excluding any applicable contingent
deferred sales charge)............................. $ 7.49 $ 5.87
============ ===========
CLASS W (UNLIMITED SHARES AUTHORIZED):
Net assets.......................................... $ 1,491,165 $ 247,429
Shares of beneficial interest issued and outstanding 179,619 39,093
Net asset value, offering and redemption price per
share.............................................. $ 8.30 $ 6.33
============ ===========
See Notes to Financial Statements
6
SUNAMERICA EQUITY FUNDS
STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS ENDED MARCH 31, 2019 --
(UNAUDITED)
AIG INTERNATIONAL
DIVIDEND
STRATEGY FUND AIG JAPAN FUND
----------------- --------------
INVESTMENT INCOME:
Dividends (unaffiliated)............................................................. $ 829,605 $ 233,052
Interest (unaffiliated).............................................................. 497 772
----------- -----------
Total investment income*............................................................ 830,102 233,824
----------- -----------
EXPENSES:
Investment advisory and management fees................................................ 314,130 118,850
Distributionand service maintenance fees:
Class A............................................................................. 95,668 26,880
Class C............................................................................. 28,712 23,904
Servicefees:
Class W............................................................................. 1,214 199
Transferagent fees and expenses:
Class A............................................................................. 71,908 18,292
Class C............................................................................. 8,433 5,962
Class W............................................................................. 2,199 543
Registrationfees:
Class A............................................................................. 10,618 8,754
Class C............................................................................. 5,540 6,223
Class W............................................................................. 5,360 5,338
Custodian and accounting fees........................................................ 18,549 15,557
Reports to shareholders.............................................................. 39,345 9,995
Audit and tax fees................................................................... 38,014 38,014
Legal fees........................................................................... 26,415 19,987
Trustees' fees and expenses.......................................................... 2,328 794
Interest expense..................................................................... 446 57
Other expenses....................................................................... 11,173 9,064
----------- -----------
Total expenses before fee waivers, expense reimbursements, and expense recoupments.. 680,052 308,413
Net (Fees waived and expenses reimbursed) recouped by investment adviser (Note 3)... (66,074) (96,761)
----------- -----------
Net expenses........................................................................ 613,978 211,652
----------- -----------
Net investment income (loss)........................................................... 216,124 22,172
----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)**............................... (5,390,592) (1,351,889)
Net realized foreign exchange gain (loss) on other assets and liabilities.............. (35,356) (2,769)
----------- -----------
Net realized gain (loss) on investments and foreign currencies......................... (5,425,948) (1,354,658)
----------- -----------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)......... 3,219,354 (1,085,002)
Change in unrealized foreign exchange gain (loss) on other assets and liabilities...... (6,114) (235)
----------- -----------
Net unrealized gain (loss) on investments and foreign currencies....................... 3,213,240 (1,085,237)
----------- -----------
Net realized and unrealized gain (loss) on investments and foreign currencies.......... (2,212,708) (2,439,895)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................ $(1,996,584) $(2,417,723)
=========== ===========
* Net of foreign withholding taxes on interest and dividends of........................ $ 47,799 $ 25,605
=========== ===========
** Net of foreign withholding taxes on capital gains of................................ $ -- $ --
=========== ===========
See Notes to Financial Statements
7
SUNAMERICA EQUITY FUNDS
STATEMENT OF CHANGES IN NET ASSETS -- MARCH 31, 2019
AIG INTERNATIONAL
DIVIDEND
STRATEGY FUND
---------------------------
FOR THE
SIX MONTHS
ENDED FOR THE YEAR
MARCH 31, ENDED
2019 SEPTEMBER 30,
(UNAUDITED) 2018
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss).................................................................. $ 216,124 $ 2,378,732
Net realized gain (loss) on investments and foreign currencies................................ (5,425,948) 7,427,297
Net unrealized gain (loss) on investments and foreign currencies.............................. 3,213,240 (15,824,245)
------------ -------------
Net increase (decrease) in net assets resulting from operations................................ (1,996,584) (6,018,216)
------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Distributable earnings (Class A).............................................................. (501,115) (2,032,857)
Distributable earnings (Class C).............................................................. (52,421) (227,075)
Distributable earnings (Class I)+............................................................. -- (4,650)
Distributable earnings (Class W).............................................................. (14,225) (126,742)
------------ -------------
Total distributions to shareholders............................................................ (567,761) (2,391,324)
------------ -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS (NOTE 6)....... (4,604,036) (12,539,781)
------------ -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................................................ (7,168,381) (20,949,321)
NET ASSETS:
Beginning of period............................................................................ $ 71,236,840 $ 92,186,161
------------ -------------
End of period.................................................................................. $ 64,068,459 $ 71,236,840
============ =============
AIG JAPAN FUND
-------------------------
FOR THE
SIX MONTHS
ENDED FOR THE YEAR
MARCH 31, ENDED
2019 SEPTEMBER 30,
(UNAUDITED) 2018
----------- -------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss).................................................................. $ 22,172 $ (99,478)
Net realized gain (loss) on investments and foreign currencies................................ (1,354,658) 4,288,154
Net unrealized gain (loss) on investments and foreign currencies.............................. (1,085,237) (4,205,967)
----------- -----------
Net increase (decrease) in net assets resulting from operations................................ (2,417,723) (17,291)
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Distributable earnings (Class A).............................................................. (2,106,312) (1,695,027)
Distributable earnings (Class C).............................................................. (745,654) (434,048)
Distributable earnings (Class I)+............................................................. -- --
Distributable earnings (Class W).............................................................. (35,310) (49,128)
----------- -----------
Total distributions to shareholders............................................................ (2,887,276) (2,178,203)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS (NOTE 6)....... (1,020,552) (1,255,132)
----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................................................ (6,325,551) (3,450,626)
NET ASSETS:
Beginning of period............................................................................ $25,486,783 $28,937,409
----------- -----------
End of period.................................................................................. $19,161,232 $25,486,783
=========== ===========
--------
+ See Note 1
See Notes to Financial Statements
8
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
-
09/30/14 $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
09/30/17 8.63 0.30 0.91 1.21 (0.31) -- (0.31) 9.53 14.11 72,696
09/30/18 9.53 0.27 (0.95) (0.68) (0.28) -- (0.28) 8.57 (7.18) 62,315
03/31/19(7) 8.57 0.03 (0.24) (0.21) (0.07) -- (0.07) 8.29 (2.36) 57,237
CLASS C
-
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
09/30/17 7.85 0.21 0.83 1.04 (0.25) -- (0.25) 8.64 13.40 13,126
09/30/18 8.64 0.17 (0.84) (0.67) (0.21) -- (0.21) 7.76 (7.80) 6,719
03/31/19(7) 7.76 0.00 (0.21) (0.21) (0.06) -- (0.06) 7.49 (2.60) 5,340
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
09/30/17 8.63 0.32 0.90 1.22 (0.32) -- (0.32) 9.53 14.33 6,099
09/30/18 9.53 0.29 (0.96) (0.67) (0.29) -- (0.29) 8.57 (7.06) 2,203
03/31/19(7) 8.57 0.04 (0.24) (0.20) (0.07) -- (0.07) 8.30 (2.21) 1,491
RATIO
OF NET
RATIO OF INVESTMENT
EXPENSES INCOME (LOSS)
TO AVERAGE TO AVERAGE PORTFOLIO
NET ASSETS NET ASSETS TURNOVER
---------- ------------- ---------
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) 3.28(3) 22
1.90(3) 2.97(3) 59
1.90(3)(4) 0.75(3)(4) 59
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) 2.48(3) 22
2.55(3) 1.95(3) 59
2.55(3)(4) 0.04(3)(4) 59
1.70(3)(4) 3.98(3)(4) 160%
1.70(3)(5) 2.50(3) 80
1.70(3) 3.55(3) 22
1.70(3) 2.98(3) 59
1.70(3)(4) 0.85(3)(4) 59
--------
* Commencement of Operations.
(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):
09/30/14 09/30/15 09/30/16 09/30/17 09/30/18 03/31/19(4)(7)
-------- -------- -------- -------- -------- --------------
AIG International Dividend Strategy Class A. (0.09)% (0.01)% 0.03% (0.02)% 0.06% 0.18%
AIG International Dividend Strategy Class C. (0.05) (0.02) 0.08 0.08 0.12 0.36
AIG International Dividend Strategy Class W. -- 0.20 0.15 0.17 0.22 0.82
(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% and 1.51%
for Class A, Class C and Class W, respectively.
(6)The Fund's performance figure was increased by 0.25%, 0.28%, 0.25% for
Class A, Class C and Class W, respectively, for a reimbursement of custody
expenses from prior years.
(7)Unaudited
See Notes to Financial Statements
9
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
-
09/30/14 $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
09/30/17 7.24 (0.02) 1.44 1.42 (0.04) -- (0.04) 8.62 19.69 23,423 1.90
09/30/18 8.62 (0.02) 0.09 0.07 (0.08) (0.57) (0.65) 8.04 0.34 18,949 1.90
03/31/19(5) 8.04 0.01 (0.78) (0.77) -- (0.96) (0.96) 6.31 (8.99) 14,890 1.90(4)
CLASS C
-
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
09/30/17 6.87 (0.07) 1.37 1.30 (0.00) -- (0.00) 8.17 18.96 5,274 2.55
09/30/18 8.17 (0.06) 0.07 0.01 (0.03) (0.57) (0.60) 7.58 (0.37) 6,225 2.55
03/31/19(5) 7.58 (0.01) (0.74) (0.75) -- (0.96) (0.96) 5.87 (9.32) 4,024 2.55(4)
CLASS W
-
04/20/17*-09/30/17 7.72 0.06 0.85 0.91 -- -- -- 8.63 11.79 241 1.70(4)
09/30/18 8.63 (0.00) 0.09 0.09 (0.09) (0.57) (0.66) 8.06 0.57 312 1.70
03/31/19(5) 8.06 0.02 (0.79) (0.77) -- (0.96) (0.96) 6.33 (8.97) 247 1.70(4)
RATIO
OF NET
INVESTMENT
INCOME (LOSS)
TO AVERAGE PORTFOLIO
NET ASSETS(3) TURNOVER
------------- ---------
(0.19)% 111%
(0.46) 144
0.01 151
(0.28) 115
(0.22) 101
0.40(4) 41
(0.65) 111%
(0.95) 144
(0.78) 151
(0.89) 115
(0.77) 101
(0.40)(4) 41
1.80(4) 115%
(0.03) 101
0.61(4) 41
--------
* Commencement of Operations.
(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):
09/30/14 09/30/15 09/30/16 09/30/17 09/30/18 03/31/19(4)(5)
-------- -------- -------- -------- -------- --------------
AIG Japan Class A....................... 0.29% 0.24% 0.41% 0.55% 0.56% 0.85%
AIG Japan Class C....................... 0.84 0.50 0.56 0.75 0.70 1.01
AIG Japan Class W....................... -- -- -- 17.99(4) 2.75 4.94
(4)Annualized
(5)Unaudited
See Notes to Financial Statements
10
AIG INTERNATIONAL DIVIDEND STRATEGY FUND
PORTFOLIO PROFILE -- MARCH 31, 2019 -- (UNAUDITED)
INDUSTRY ALLOCATION*
Real Estate Operations & Development... 9.9%
Medical-Drugs.......................... 6.4
Telephone-Integrated................... 6.1
Tobacco................................ 5.6
Chemicals-Diversified.................. 4.7
Diversified Minerals................... 4.5
Food-Retail............................ 3.7
Oil Companies-Integrated............... 3.5
Auto-Cars/Light Trucks................. 3.0
Finance-Other Services................. 2.4
Metal-Diversified...................... 2.4
Public Thoroughfares................... 2.4
Real Estate Management/Services........ 2.2
Telecom Services....................... 2.1
Building Products-Cement............... 2.1
Cellular Telecom....................... 2.1
Cosmetics & Toiletries................. 2.1
Semiconductor Equipment................ 2.0
Building-Heavy Construction............ 2.0
Human Resources........................ 2.0
Coal................................... 2.0
Power Converter/Supply Equipment....... 2.0
Food-Dairy Products.................... 2.0
Electronic Components-Semiconductors... 1.9
Machinery-Construction & Mining........ 1.9
Office Automation & Equipment.......... 1.8
Advertising Services................... 1.8
Building & Construction Products-Misc.. 1.7
Rubber-Tires........................... 1.7
Machinery-Electrical................... 1.6
Retail-Jewelry......................... 1.5
Gas-Distribution....................... 1.5
Advertising Agencies................... 1.4
Metal Processors & Fabrication......... 1.4
Electronic Components-Misc............. 1.4
Repurchase Agreements.................. 0.2
----
97.0%
====
COUNTRY ALLOCATION*
France......... 15.0%
United Kingdom. 13.7
Japan.......... 9.4
China.......... 8.0
Hong Kong...... 7.0
Australia...... 6.0
Switzerland.... 5.9
Cayman Islands. 5.1
Germany........ 4.7
Italy.......... 4.3
Taiwan......... 2.8
Netherlands.... 2.3
Canada......... 2.1
Spain.......... 2.1
South Korea.... 1.9
Sweden......... 1.9
Turkey......... 1.7
Denmark........ 1.5
Jersey......... 1.4
United States.. 0.2
----
97.0%
====
--------
*Calculated as a percentage of net assets
11
AIG INTERNATIONAL DIVIDEND STRATEGY FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2019 -- (UNAUDITED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
COMMON STOCKS -- 96.8%
AUSTRALIA -- 6.0%
BHP Group, Ltd......................... 50,645 $1,383,853
Rio Tinto, Ltd......................... 22,510 1,570,137
Wesfarmers, Ltd........................ 35,998 886,664
----------
3,840,654
----------
BERMUDA -- 0.0%
Peace Mark Holdings, Ltd.+(1).......... 800,000 0
----------
CANADA -- 2.1%
BCE, Inc............................... 31,008 1,376,896
----------
CAYMAN ISLANDS -- 5.1%
China Resources Land, Ltd.............. 376,000 1,685,742
Country Garden Holdings Co., Ltd....... 1,031,000 1,609,900
----------
3,295,642
----------
CHINA -- 8.0%
Anhui Conch Cement Co., Ltd............ 220,500 1,346,753
China Evergrande Group................. 451,000 1,499,289
China Petroleum & Chemical Corp........ 1,298,000 1,023,652
China Shenhua Energy Co., Ltd.......... 559,700 1,278,824
----------
5,148,518
----------
DENMARK -- 1.5%
Pandora A/S............................ 20,534 962,321
----------
FRANCE -- 15.0%
Cie de Saint-Gobain.................... 30,195 1,095,346
Danone SA.............................. 16,192 1,248,951
Orange SA.............................. 80,459 1,309,809
Publicis Groupe SA..................... 20,954 1,124,051
Renault SA............................. 14,760 977,693
Sanofi................................. 14,234 1,258,700
Schneider Electric SE.................. 16,175 1,272,065
Vinci SA............................... 13,480 1,312,144
----------
9,598,759
----------
GERMANY -- 4.7%
BASF SE................................ 14,360 1,054,619
Continental AG......................... 7,169 1,079,169
Covestro AG*........................... 15,419 848,227
----------
2,982,015
----------
HONG KONG -- 7.0%
China Mobile, Ltd...................... 130,900 1,338,551
China Overseas Land & Investment, Ltd.. 417,000 1,586,015
Hong Kong Exchanges & Clearing, Ltd.... 45,300 1,578,675
----------
4,503,241
----------
ITALY -- 4.3%
Atlantia SpA........................... 59,726 1,549,741
Eni SpA................................ 67,009 1,183,753
----------
2,733,494
----------
JAPAN -- 9.4%
Canon, Inc............................. 39,300 1,141,969
Daito Trust Construction Co., Ltd...... 10,000 1,394,048
Japan Tobacco, Inc..................... 48,000 1,192,288
Subaru Corp............................ 42,000 960,040
Tokyo Electron, Ltd.................... 9,100 1,319,501
----------
6,007,846
----------
SHARES/
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
JERSEY -- 1.4%
WPP PLC........................................ 85,315 $ 904,035
-----------
NETHERLANDS -- 2.3%
Koninklijke Ahold Delhaize NV.................. 56,534 1,505,281
-----------
SOUTH KOREA -- 1.9%
Samsung Electronics Co., Ltd................... 30,993 1,218,786
-----------
SPAIN -- 2.1%
Telefonica SA.................................. 162,157 1,359,545
-----------
SWEDEN -- 1.9%
Atlas Copco AB, Class A........................ 44,455 1,194,964
-----------
SWITZERLAND -- 5.9%
ABB, Ltd....................................... 54,621 1,027,594
Adecco Group AG................................ 24,198 1,292,370
Roche Holding AG............................... 5,183 1,428,744
-----------
3,748,708
-----------
TAIWAN -- 2.8%
Catcher Technology Co., Ltd.................... 116,000 897,615
Yageo Corp..................................... 84,000 878,027
-----------
1,775,642
-----------
TURKEY -- 1.7%
Petkim Petrokimya Holding AS................... 1,350,826 1,100,430
-----------
UNITED KINGDOM -- 13.7%
Anglo American PLC............................. 55,980 1,503,033
British American Tobacco PLC................... 27,403 1,143,269
BT Group PLC................................... 434,756 1,264,435
Centrica PLC................................... 639,164 951,244
GlaxoSmithKline PLC............................ 63,352 1,314,310
Imperial Brands PLC............................ 36,370 1,246,211
Unilever PLC................................... 23,204 1,330,840
-----------
8,753,342
-----------
TOTAL LONG-TERM INVESTMENT SECURITIES
(cost $64,510,419)............................ 62,010,119
-----------
REPURCHASE AGREEMENTS -- 0.2%
Agreement with Fixed Income Clearing Corp.,
bearing interest at 0.50%, dated 03/29/2019,
to be repurchased 04/01/2019 in the amount
of $130,005 collateralized by $135,000 of
United States Treasury Notes, bearing
interest at 2.63% due 02/28/2023 and
having an approximate value of $137,446
(cost $130,000)............................... $ 130,000 130,000
-----------
TOTAL INVESTMENTS --
(cost $64,640,419)(2)......................... 97.0% 62,140,119
Other assets less liabilities.................... 3.0 1,928,340
---------- -----------
NET ASSETS -- 100.0% $64,068,459
========== ===========
--------
+ Non-income producing security
* Securities exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be sold in transactions exempt from registration,
normally to qualified institutional buyers. The Fund has no right to demand
registration of these securities. At March 31, 2019, the aggregate value of
these securities was $848,227 representing 1.3% of net assets.
(1)Securities classified as Level 3 (see Note 2).
(2)See Note 5 for cost of investments on a tax basis.
12
AIG INTERNATIONAL DIVIDEND STRATEGY FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2019 -- (UNAUDITED) (CONTINUED)
The following is a summary of the inputs used to value the Fund's net assets as
of March 31, 2019 (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.......... 1,376,896 60,633,223** -- 62,010,119
Repurchase Agreements...... -- 130,000 -- 130,000
---------- ----------- --- -----------
TOTAL INVESTMENTS AT VALUE. $1,376,896 $60,763,223 $ 0 $62,140,119
========== =========== === ===========
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
** Represents foreign equity securities that have been fair valued in
accordance with pricing procedures approved by the Board. See Note 2.
At the beginning and end of the reporting period, Level 3 investments in
securities were not considered a material portion of the Fund. There were no
Level 3 transfers between Levels during the reporting period.
See Notes to Financial Statements
13
INDUSTRY ALLOCATION*
Electronic Components-Misc............ 12.0%
Auto/Truck Parts & Equipment-Original. 5.4
Rubber-Tires.......................... 5.3
Diversified Banking Institutions...... 5.2
Medical Products...................... 4.3
Chemicals-Specialty................... 4.1
Machinery-Electrical.................. 4.0
Motorcycle/Motor Scooter.............. 3.9
Entertainment Software................ 3.6
Building & Construction-Misc.......... 3.5
Real Estate Management/Services....... 3.5
Auto-Cars/Light Trucks................ 3.1
Repurchase Agreements................. 3.0
Tobacco............................... 2.9
Electronic Components-Semiconductors.. 2.4
Aerospace/Defense..................... 2.3
Oil Refining & Marketing.............. 2.2
Computer Services..................... 2.1
Casino Services....................... 2.0
E-Commerce/Products................... 2.0
Telephone-Integrated.................. 2.0
Insurance-Property/Casualty........... 1.9
Industrial Automated/Robotic.......... 1.8
Building-Maintenance & Services....... 1.7
Retail-Catalog Shopping............... 1.7
Photo Equipment & Supplies............ 1.7
Building-Heavy Construction........... 1.5
Chemicals-Diversified................. 1.5
Food-Retail........................... 1.3
Insurance-Life/Health................. 1.3
Medical-Drugs......................... 1.2
Distribution/Wholesale................ 1.1
Food-Misc./Diversified................ 1.0
Human Resources....................... 0.9
----
97.4%
====
COUNTRY ALLOCATION*
Japan......... 94.4%
United States. 3.0
----
97.4%
====
--------
*Calculated as a percentage of net assets
14
AIG JAPAN FUND
PORTFOLIO PROFILE -- MARCH 31, 2019 -- (UNAUDITED)
AIG JAPAN FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2019 -- (UNAUDITED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
COMMON STOCKS -- 94.4%
AEROSPACE/DEFENSE -- 2.3%
Kawasaki Heavy Industries, Ltd.............. 17,900 $ 442,421
----------
AUTO-CARS/LIGHT TRUCKS -- 3.1%
Suzuki Motor Corp........................... 13,363 592,660
----------
AUTO/TRUCK PARTS & EQUIPMENT-ORIGINAL -- 5.4%
NGK Insulators, Ltd......................... 71,401 1,040,228
----------
BUILDING & CONSTRUCTION-MISC. -- 3.5%
Hazama Ando Corp............................ 58,939 396,520
Maeda Corp.................................. 27,300 271,255
----------
667,775
----------
BUILDING-HEAVY CONSTRUCTION -- 1.5%
Daiho Corp.................................. 10,150 297,328
----------
BUILDING-MAINTENANCE & SERVICES -- 1.7%
Kyoritsu Maintenance Co., Ltd............... 6,633 329,920
----------
CASINO SERVICES -- 2.0%
Universal Entertainment Corp................ 12,600 381,539
----------
CHEMICALS-DIVERSIFIED -- 1.5%
Tokuyama Corp............................... 11,922 282,523
----------
CHEMICALS-SPECIALTY -- 4.1%
Shin-Etsu Chemical Co., Ltd................. 9,280 780,593
----------
COMPUTER SERVICES -- 2.1%
Fujitsu, Ltd................................ 5,486 397,283
----------
DISTRIBUTION/WHOLESALE -- 1.1%
Trusco Nakayama Corp........................ 7,808 216,767
----------
DIVERSIFIED BANKING INSTITUTIONS -- 5.2%
Mitsubishi UFJ Financial Group, Inc......... 199,796 991,637
----------
E-COMMERCE/PRODUCTS -- 2.0%
ZOZO, Inc................................... 19,900 377,700
----------
ELECTRONIC COMPONENTS-MISC. -- 12.0%
Fujitsu General, Ltd........................ 27,615 391,268
Hitachi High-Technologies Corp.............. 10,582 435,012
Kyocera Corp................................ 10,685 629,374
Minebea Mitsumi, Inc........................ 33,303 503,269
SCREEN Holdings Co., Ltd.................... 8,350 337,523
----------
2,296,446
----------
ELECTRONIC COMPONENTS-SEMICONDUCTORS -- 2.4%
Rohm Co., Ltd............................... 7,412 464,718
----------
ENTERTAINMENT SOFTWARE -- 3.6%
DeNA Co., Ltd............................... 21,687 326,913
Nexon Co., Ltd.+............................ 23,294 366,057
----------
692,970
----------
FOOD-MISC./DIVERSIFIED -- 1.0%
Ajinomoto Co., Inc.......................... 12,153 194,456
----------
FOOD-RETAIL -- 1.3%
Seven & i Holdings Co., Ltd................. 6,691 252,488
----------
HUMAN RESOURCES -- 0.9%
Persol Holdings Co., Ltd.................... 11,000 179,308
----------
INDUSTRIAL AUTOMATED/ROBOTIC -- 1.8%
THK Co., Ltd................................ 13,931 346,055
----------
SHARES/
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
INSURANCE-LIFE/HEALTH -- 1.3%
T&D Holdings, Inc.............................. 23,200 $ 244,587
-----------
INSURANCE-PROPERTY/CASUALTY -- 1.9%
Tokio Marine Holdings, Inc..................... 7,682 372,506
-----------
MACHINERY-ELECTRICAL -- 4.0%
Hitachi, Ltd................................... 23,800 773,268
-----------
MEDICAL PRODUCTS -- 4.3%
Nipro Corp..................................... 63,593 822,035
-----------
MEDICAL-DRUGS -- 1.2%
Ono Pharmaceutical Co., Ltd.................... 12,084 237,617
-----------
MISCELLANEOUS MANUFACTURING -- 0.0%
Peace Mark Holdings, Ltd.+(1).................. 8,000 0
-----------
MOTORCYCLE/MOTOR SCOOTER -- 3.9%
Yamaha Motor Co., Ltd.......................... 38,234 752,955
-----------
OIL REFINING & MARKETING -- 2.2%
JXTG Holdings, Inc............................. 91,200 415,202
-----------
PHOTO EQUIPMENT & SUPPLIES -- 1.7%
FUJIFILM Holdings Corp......................... 6,993 318,618
-----------
REAL ESTATE MANAGEMENT/SERVICES -- 3.5%
Mitsubishi Estate Co., Ltd..................... 36,560 664,003
-----------
RETAIL-CATALOG SHOPPING -- 1.7%
ASKUL Corp..................................... 13,155 329,001
-----------
RUBBER-TIRES -- 5.3%
Toyo Tire & Rubber Co., Ltd.................... 88,672 1,008,618
-----------
TELEPHONE-INTEGRATED -- 2.0%
Nippon Telegraph & Telephone Corp.............. 8,857 376,470
-----------
TOBACCO -- 2.9%
Japan Tobacco, Inc............................. 22,014 546,813
-----------
TOTAL LONG-TERM INVESTMENT SECURITIES
(cost $20,181,318)............................ 18,086,508
-----------
REPURCHASE AGREEMENTS -- 3.0%
Agreement with Fixed Income Clearing Corp.,
bearing interest at 0.50%, dated 03/29/2019,
to be repurchased 04/01/2019 in the amount
of $581,024 collateralized by $590,000 of
United States Treasury Notes, bearing
interest at 2.38% due 01/31/2023 and
having an approximate value of $596,078
(cost $581,000)............................... $581,000 581,000
-----------
TOTAL INVESTMENTS
(cost $20,762,318)(2)......................... 97.4% 18,667,508
Other assets less liabilities.................... 2.6 493,724
-------- -----------
NET ASSETS 100.0% $19,161,232
======== ===========
--------
+ Non-income producing security
(1)Securities classified as Level 3 (see Note 2).
(2)See Note 5 for cost of investments on a tax basis.
15
AIG JAPAN FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2019 -- (UNAUDITED) (CONTINUED)
The following is a summary of the inputs used to value the Fund's net assets as
of March 31, 2019 (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............ -- 18,086,508** -- 18,086,508
Repurchase Agreements......... -- 581,000 -- 581,000
--- ----------- --- -----------
TOTAL INVESTMENTS AT VALUE.... $-- $18,667,508 $ 0 $18,667,508
=== =========== === ===========
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
** Represents foreign equity securities that have been fair valued in
accordance with pricing procedures approved by the Board. See Note 2.
At the beginning and end of the reporting period, Level 3 investments in
securities were not considered a material portion of the Fund. There were no
transfers between Levels during the reporting period.
See Notes to Financial Statements
16
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2019 -- (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.
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 of
$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. Effective March 1, 2018,
Class C shares will convert automatically to Class A shares approximately
ten years after purchase and at the such time will be subject to the lower
distribution fee applicable to Class A shares.
Class I shares of the International Dividend Strategy Fund were liquidated
effective September 7, 2018.
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, with Class C shares being subject to
higher distribution fee rates. Class W shares have not adopted a 12b-1 plan
and make no payments thereunder, however, 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 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.
17
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2019 -- (UNAUDITED)
(CONTINUED)
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 Funds are
considered investment companies under GAAP and follow the accounting and
reporting guidance applicable to investment companies. 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, 2019, is reported on a schedule at the end
of each Fund's 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 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
18
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2019 -- (UNAUDITED)
(CONTINUED)
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. Investments in 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, 2019, 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.
19
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2019 -- (UNAUDITED)
(CONTINUED)
REPURCHASE AGREEMENTS: The Funds, along with other affiliated registered
investment companies, pursuant to procedures adopted by the Board and
applicable guidance from the Securities and Exchange Commission ("SEC"), may
transfer uninvested cash balances into a single joint account, the daily
aggregate balance of which is invested in one or more repurchase agreements
collateralized by U.S. Treasury or federal agency obligations. In a
repurchase agreement, the seller of a security agrees to repurchase the
security at a mutually agreed-upon time and price, which reflects the
effective rate of return for the term of the agreement. For repurchase
agreements and joint repurchase agreements, the 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
2015 - 2017 or expected to be taken in each Fund's 2018 tax return. The
Funds are not aware of any tax provisions for which it is reasonably
20
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2019 -- (UNAUDITED)
(CONTINUED)
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 2015.
FOREIGN CURRENCY TRANSLATION: The books and records of the Funds are
maintained in U.S. dollars. Assets and liabilities denominated in foreign
currencies and commitments under forward foreign currency contracts are
translated into U.S. dollars based on the exchange rate of such currencies
against U.S. dollars on the date of valuation.
The Funds do not isolate that portion of the results of operations arising
as a result of changes in the foreign exchange rates from the changes in the
market prices of securities held at the end of the period.
Similarly, the Funds do not isolate the effect of changes in foreign
exchange rates from the changes in the market prices of portfolio securities
sold during the period.
Realized foreign exchange gains and losses on other assets and liabilities
and change in unrealized foreign exchange gains and losses on other assets
and liabilities located in the Statement of Operations include realized
foreign exchange gains and losses from currency gains or losses between the
trade and the settlement dates of securities transactions, the difference
between the amounts of interest, dividends and foreign withholding taxes
recorded on the Funds' books and the U.S. dollar equivalent amounts actually
received or paid and changes in the unrealized foreign exchange gains and
losses relating to the other assets and liabilities arising as a result of
changes in the exchange rates.
NEW ACCOUNTING PRONOUNCEMENTS: In August 2018, the SEC adopted amendments to
certain financial statement disclosure requirements of Regulation S-X to
conform them to GAAP for investment companies. The final rule became
effective on November 5, 2018. All required changes have been made in
accordance with Regulation S-X.
In August 2018, the FASB issued Accounting Standards Update ("ASU")
No. 2018-13 "Disclosure Framework -- Changes to the Disclosure Requirements
for Fair Value Measurement". The ASU eliminates, modifies, and adds
disclosure requirements for fair value measurements and is effective for
fiscal years, and interim periods within those fiscal years, beginning after
December 15, 2019. The ASU allows for early adoption of either the entire
standard or only the provisions that eliminate or modify the requirements.
Management has elected to early adopt the provisions that eliminate
disclosure requirements and is still evaluating the impact of applying the
rest of the ASU.
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, 2019, SunAmerica earned fees in the
amounts stated in the Statement of Operations.
The AIG Japan Fund is subadvised by Wellington Management Company LLP
("Wellington Management") pursuant to a subadvisory agreement with
SunAmerica.
21
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2019 -- (UNAUDITED)
(CONTINUED)
SunAmerica has contractually agreed to waive fees or reimburse expenses to
the extent necessary to cap the Funds' annual fund operating expenses at the
following percentages of each 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 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 W. 1.70
Japan Fund Class A........................... 1.90
Japan Fund Class C........................... 2.55
Japan Fund Class W........................... 1.70
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 recoupment does not cause the
expense ratio of the share class to exceed the lesser of (a) the limitation
in effect at the time the waivers and/or reimbursements occurred or (b) the
current expense limitation of that share class.
For the six months ended March 31, 2019, pursuant to the contractual expense
limitations referred to above, SunAmerica has waived or reimbursed expenses
as follows:
OTHER EXPENSE
REIMBURSED
-------------
AIG Japan Fund. $ 52,052
AMOUNT
-----------
International Dividend Strategy Fund Class A. $ 48,950
International Dividend Strategy Fund Class C. 10,515
International Dividend Strategy Fund Class W. 6,609
Japan Fund Class A........................... 26,662
Japan Fund Class C........................... 12,166
Japan Fund Class W........................... 5,881
For the six months March 31, 2019, SunAmerica did not recoup any expenses.
At March 31, 2019, expenses previously waived and/or reimbursed by
SunAmerica during the prior two years that remain subject to recoupment and
expire during the time periods indicated are as follows:
OTHER EXPENSES REIMBURSED
----------------------------------------------------
SEPTEMBER 30, 2019 SEPTEMBER 30, 2020 MARCH 31, 2021
------------------ ------------------ --------------
Japan Fund................................... $ 89,874 $ 75,182 $ 52,052
CLASS SPECIFIC EXPENSES REIMBURSED
----------------------------------------------------
SEPTEMBER 30, 2019 SEPTEMBER 30, 2020 MARCH 31, 2021
------------------ ------------------ --------------
International Dividend Strategy Fund Class A. $ -- $ 49,388 $ 48,950
International Dividend Strategy Fund Class C. 6,605 12,338 10,515
International Dividend Strategy Fund Class W. 5,176 10,384 6,609
Japan Fund Class A........................... 34,894 67,003 26,662
Japan Fund Class C........................... 12,752 28,092 12,166
Japan Fund Class W........................... 8,912 12,736 5,881
22
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2019 -- (UNAUDITED)
(CONTINUED)
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 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 each 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 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. The Distributor does not receive or retain
any distribution and/or account maintenance fees for any shares when the
shareholder does not have a broker of record. For the six months ended
March 31, 2019, ACS received fees as reflected in the Statement of
Operations, based upon the aforementioned rates.
The Trust, on behalf of each Fund, has entered into an Administrative and
Shareholder Services Agreement with ACS, pursuant to which ACS is paid an
annual fee of 0.15% of average daily net assets of Class W shares as
compensation for providing additional shareholder services to Class W
shareholders. The Distributor does not receive or retain any distribution
and/or account maintenance fees for any shares when the shareholder does not
have a broker of record. For the six months ended March 31, 2019, ACS earned
fees as reflected in the Statements of Operations based on the
aforementioned rate.
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, 2019, 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. $10,821 $3,685 $5,395 $182 $ 53
Japan Fund........................... 1,402 296 943 -- 726
The Trust has entered into a Service Agreement with SunAmerica 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, 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 of such Fund. For the six months ended March 31, 2019, 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, 2019
----------------------- -----------------------
CLASS A CLASS C CLASS W CLASS A CLASS C CLASS W
------- ------- ------- ------- ------- -------
International Dividend Strategy Fund. $60,988 $6,340 $1,781 $10,364 $1,008 $280
Japan Fund........................... 17,179 5,265 292 2,723 769 46
At March 31, 2019, 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 20% and 16%,
respectively, of the International Dividend Strategy Fund and AIG
Multi-Asset Allocation Portfolio and AIG Active Allocation Portfolio owned
36% and 18%, respectively, of the Japan Fund.
23
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2019 -- (UNAUDITED)
(CONTINUED)
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, 2019 were as follows:
INTERNATIONAL
DIVIDEND STRATEGY
FUND JAPAN FUND
----------------- -----------
Purchases (excluding U.S. government securities)... $37,055,928 $ 8,551,832
Sales (excluding U.S. government securities)....... 42,979,787 13,098,733
Purchase of U.S. government securities............. -- --
Sales and maturities of U.S. government securities. -- --
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, investments in passive foreign investment companies and
derivative transactions.
FOR THE YEAR ENDED SEPTEMBER 30, 2018
------------------------------------------------------------------
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. $ 80,882 $(54,009,207) $(5,836,138) $2,391,324 $ --
Japan Fund........................... 1,220,918 1,666,203 (1,343,710) 1,819,884 358,319
--------
* Unrealized appreciation (depreciation) includes amounts for derivatives and
other assets and liabilities denominated in foreign currency.
As of September 30, 2018, for Federal income tax purposes, the Funds
indicated below have capital loss carryforwards, which are available to
offset future capital gains, if any:
UNLIMITED
-----------------------
ST LT
----------- -----------
International Dividend Strategy Fund. $34,178,030 $19,831,177
Japan Fund........................... -- --
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, 2019:
INTERNATIONAL
DIVIDEND
STRATEGY FUND JAPAN FUND
------------- -----------
Cost (tax basis)........................... $64,750,590 $21,094,689
=========== ===========
Appreciation............................... 4,660,847 495,386
Depreciation............................... (7,271,318) (2,922,567)
----------- -----------
Net unrealized appreciation (depreciation). $(2,610,471) $(2,427,181)
=========== ===========
On December 22, 2017, the Tax Cuts and Jobs Act (the "Act") was signed into
law. Certain provisions of the Act were effective upon enactment with the
remainder becoming effective for tax years beginning after December 31,
2017. All requested changes have been made in accordance with the Act.
24
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2019 -- (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 FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2019 SEPTEMBER 30, 2018 MARCH 31, 2019 SEPTEMBER 30, 2018
--------------------- ------------------------ --------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------- ----------- ---------- ------------ -------- ----------- -------- -----------
Shares
sold........ 348,229 $ 2,830,776 1,119,724 $ 10,390,018 54,978 $ 384,395 112,299 $ 953,815
Reinvested
dividends... 63,776 484,697 225,143 1,969,964 6,630 45,618 24,178 193,946
Shares
redeemed.... (782,499) (6,182,910) (1,698,056) (15,740,245) (214,296) (1,540,694) (789,566) (6,652,049)
-------- ----------- ---------- ------------ -------- ----------- -------- -----------
Net
increase
(decrease)
in
shares
outstanding
before
automatic
conversion.. (370,494) $(2,867,437) (353,189) (3,380,263) (152,688) $(1,110,681) (653,089) (5,504,288)
-------- ----------- ---------- ------------ -------- ----------- -------- -----------
Shares
issued
(reacquired)
upon
automatic
conversion.. 8,309 67,790 189,426 1,793,517 (9,190) (67,790) (209,540) (1,793,517)
-------- ----------- ---------- ------------ -------- ----------- -------- -----------
Net
increase
(decrease).. (362,185) $(2,799,647) (163,763) $ (1,586,746) (161,878) $(1,178,471) (862,629) $(7,297,805)
======== =========== ========== ============ ======== =========== ======== ===========
INTERNATIONAL DIVIDEND STRATEGY FUND
----------------------------------------------------------------------
CLASS I CLASS W
--------------------- -----------------------------------------------
FOR THE FOR THE FOR THE
PERIOD ENDED SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2018+ MARCH 31, 2019 SEPTEMBER 30, 2018
--------------------- ------------------------ ---------------------
SHARES AMOUNT SHARES AMOUNT SHARES A MOUNT
-------- ----------- ---------- ------------ -------- -----------
Shares
sold........ -- $ -- 34,369 $ 274,098 311,937 $ 2,940,438
Reinvested
dividends... 521 4,650 1,714 13,047 9,006 78,460
Shares
redeemed.... (27,974) (242,795) (113,474) (913,063) (703,930) (6,435,983)
-------- ----------- ---------- ------------ -------- -----------
Net
increase
(decrease)
in
shares
outstanding
before
automatic
conversion.. (27,453) (238,145) (77,391) $ (625,918) (382,987) (3,417,085)
-------- ----------- ---------- ------------ -------- -----------
Shares
issued
(reacquired)
upon
automatic
conversion.. -- -- -- -- -- --
-------- ----------- ---------- ------------ -------- -----------
Net
increase
(decrease).. (27,453) $ (238,145) (77,391) $ (625,918) (382,987) $(3,417,085)
======== =========== ========== ============ ======== ===========
--------
+ See Note 1
JAPAN FUND
------------------------------------------------------------------------------------------
CLASS A CLASS C
-------------------------------------------- --------------------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2019 SEPTEMBER 30, 2018 MARCH 31, 2019 SEPTEMBER 30, 2018
--------------------- --------------------- --------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------- ----------- -------- ----------- -------- ----------- -------- -----------
Shares
sold........ 93,383 $ 608,909 215,016 $ 1,851,167 20,107 $ 120,704 276,430 $ 2,304,407
Reinvested
dividends... 343,619 2,068,588 187,031 1,597,246 122,766 689,943 48,340 391,553
Shares
redeemed.... (433,731) (2,872,966) (761,542) (6,375,516) (278,648) (1,635,315) (149,288) (1,173,464)
-------- ----------- -------- ----------- -------- ----------- -------- -----------
Net
increase
(decrease)
in
shares
outstanding
before
automatic
conversion.. 3,271 $ (195,469) (359,495) (2,927,103) (135,775) $ (824,668) 175,482 1,522,496
-------- ----------- -------- ----------- -------- ----------- -------- -----------
Shares
issued
(reacquired)
upon
automatic
conversion.. 595 3,860 17,435 143,478 (637) (3,860) (18,397) (143,478)
-------- ----------- -------- ----------- -------- ----------- -------- -----------
Net
increase
(decrease).. 3,866 $ (191,609) (342,060) $(2,783,625) (136,412) $ (828,528) 157,085 $ 1,379,018
======== =========== ======== =========== ======== =========== ======== ===========
25
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2019 -- (UNAUDITED)
(CONTINUED)
JAPAN FUND
-------------------------------------
CLASS W
-------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2019 SEPTEMBER 30, 2018
----------------- ------------------
SHARES AMOUNT SHARES AMOUNT
------- -------- ------- ---------
Shares
sold........ 4,966 $ 36,056 66,113 $ 599,650
Reinvested
dividends... 5,846 35,310 2,319 19,827
Shares
redeemed.... (10,492) (71,781) (57,600) (470,002)
------- -------- ------- ---------
Net
increase
(decrease)
in
shares
outstanding
before
automatic
conversion.. 320 (415) 10,832 149,475
------- -------- ------- ---------
Shares
issued
(reacquired)
upon
automatic
conversion.. -- -- -- --
------- -------- ------- ---------
Net
increase
(decrease).. 320 $ (415) 10,832 $ 149,475
======= ======== ======= =========
Note 7. Line of Credit
The Trust, along with certain other funds managed by the Adviser, has access
to a $75 million committed unsecured line of credit and a $50 million
uncommitted unsecured line of credit. The committed and uncommitted lines of
credit are renewable on an annual basis with State Street Bank and Trust
Company, 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
Bank and Trust Company'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 $25,000 in the aggregate for the uncommitted line of credit made
available by State Street to certain other funds managed by the Advisor,
which are also party to the uncommitted line of credit. There is also a
commitment fee of 25 basis points per annum on the daily unused portion of
the committed line of credit and a one-time closing fee of $25,000 on the
uncommitted 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, 2019, the following Funds had borrowings:
DAYS INTEREST AVERAGE DEBT WEIGHTED AVERAGE
OUTSTANDING CHARGES UTILIZED INTEREST
----------- -------- ------------ ----------------
International Dividend Strategy Fund. 17 $446 $255,191 3.68%
Japan Fund........................... 2 57 276,214 3.74
At March 31, 2019, 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, 2019, 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 AIG
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.
26
SUNAMERICA EQUITY FUNDS
SUPPLEMENT TO THE PROSPECTUS
THIS SUPPLEMENT IS NOT PART OF THE SEMI-ANNUAL REPORT
SUNAMERICA EQUITY FUNDS
AIG International Dividend Strategy Fund
AIG Japan Fund
(each, a "Fund")
Supplement dated April 1, 2019
to each Fund's Summary Prospectus and Prospectus, as supplemented and amended
to date
Effective immediately, in the section of each Summary Prospectus entitled "FEES
AND EXPENSES OF THE FUND," the first sentence of footnote 1 to the table is
deleted in its entirety and replaced with the following:
Purchases of Class A shares of $1 million or more will be subject to a
contingent deferred sales charge ("CDSC") on redemptions made within one year
of purchase.
In the section of the Prospectus entitled "SHAREHOLDER ACCOUNT INFORMATION --
CALCULATION OF SALES CHARGES," the paragraph under the heading "Investments of
$1 million or more" is deleted in its entirety and replaced with the following:
INVESTMENTS OF $1 MILLION OR MORE: Class A shares are offered with no front-end
sales charge with respect to investments of $1 million or more. However, a 1%
CDSC is imposed on any shares you sell within one year of purchase.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
27
AIG FUNDS
HARBORSIDE 5
185 HUDSON STREET, SUITE 3300
JERSEY CITY, NJ 07311
TRUSTEES VOTING PROXIES ON TRUST DELIVERY OF SHAREHOLDER
Richard W. Grant PORTFOLIO SECURITIES DOCUMENTS
Peter A. Harbeck A description of the The Funds have adopted a
Dr. Judith L. Craven policies and proce-dures policy that allows them
William F. Devin that the Trust uses to to send only one copy of
Stephen J. Gutman determine how to vote a Fund's prospectus,
Eileen A. Kamerick proxies relating to proxy material, annual
OFFICERS secu-rities held in a report and semi-annual
John T. Genoy, President Fund's portfolio which is report (the "shareholder
and Chief Executive available in the Trust's documents") to
Officer Statement of Additional shareholders with
James Nichols, Vice Information, may be multiple accounts
President ob-tained without charge residing at the same
Gregory N. Bressler, upon request, by calling "household." This
Secretary (800) 858-8850. This practice is called
Christopher C. Joe, in-formation is also householding and reduces
Chief Compliance available from the EDGAR Fund expenses, which
Officer database on the U.S. benefits you and other
Gregory R. Kingston, Secu-rities and Exchange shareholders. Unless the
Treasurer Commission's website at Funds receive
Shawn Parry, Vice http://www.sec.gov. instructions to the
President and PROXY VOTING RECORD ON con-trary, you will only
Assistant Treasurer SUNAMERICA EQUITY FUNDS receive one copy of the
Donna McManus, Vice Information regarding how shareholder documents.
President and SunAmer-ica Equity Funds The Funds will continue
Assistant Treasurer voted proxies relating to to household the
Kathleen Fuentes, Chief securities held in share-holder documents
Legal Officer and SunAmerica Equity Funds indefinitely, until we
Assistant Secretary during the most recent are instructed otherwise.
Matthew J. Hackethal, twelve month period ended If you do not wish to
Anti-Money Laundering June 30 is avail-able, participate in
Compliance Officer once filed with the U.S. householding, please
INVESTMENT ADVISER Securities and Exchange contact Shareholder
SunAmerica Asset Commission, without Services at (800)
Management, LLC charge, upon request, by 858-8850 ext. 6010 or
Harborside 5 calling (800) 858-8850 or send a written request
185 Hudson Street, Suite on the U.S. Secu-rities with your name, the name
3300 and Exchange Commission's of your fund(s) and your
Jersey City, NJ 07311 website at account number(s) to AIG
DISTRIBUTOR http://www.sec.gov. Funds c/o DST, P.O. Box
AIG Capital Services, DISCLOSURE OF QUARTERLY 219186, Kansas City MO,
Inc. PORTFOLIO HOLDINGS 64121-9186. We will
Harborside 5 The Trust is required to resume in-dividual
185 Hudson Street, Suite file its com-plete mailings for your account
3300 schedule of portfolio within thirty (30) days
Jersey City, NJ 07311 holdings quarterly with of receipt of your
SHAREHOLDER SERVICING the U.S. Securities and request.
AGENT Exchange Commission on This report is submitted
AIG Fund Services, Inc. Form N-PORT. The Trust's solely for the general
Harborside 5 Forms N-PORT are information of
185 Hudson Street, Suite available on the U.S. shareholders of the
3300 Securities and Exchange Funds. Distribution of
Jersey City, NJ 07311 Commission's website at this report to persons
CUSTODIAN http://www.sec.gov. other than shareholders
State Street Bank and of the Funds is
Trust Company authorized only in
One Lincoln Street con-nection with a
Boston, MA 02110 currently effective
TRANSFER AGENT pro-spectus, setting
DST Asset Manager forth details of the
Solutions, Inc. Funds, which must precede
303 W. 11/th/ Street or accom-pany this report.
Kansas City, MO 64105 The accompanying report
has not been audited by
independent accountants
and accordingly no
opinion has been
expressed thereon.
[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 - 3/19
[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. Disclosure of Securities Lending Activities for Closed-End Management
Investment Companies.
Not applicable.
Item 13. Exhibits.
(a) (1) Not applicable.
(2) Certifications pursuant to Rule 30a-2(a) under the Investment
Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit
99.CERT.
(3) Not applicable.
(b) Certification pursuant to Rule 30a-2(b)under the Investment Company
Act of 1940 (17 CFR 270.30a-2(a)) and Section 906 of the
Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.906.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
SunAmerica Equity Funds
By: /s/ John T. Genoy
------------------
John T. Genoy
President
Date: June 7, 2019
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ John T. Genoy
------------------
John T. Genoy
President
Date: June 7, 2019
By: /s/ Gregory R. Kingston
-------------------
Gregory R. Kingston
Treasurer
Date: June 7, 2019