N-CSR 1 a2111347zn-csr.txt N-CSR ----------------------------- OMB APPROVAL ----------------------------- OMB Number: 3235-0570 Expires: November 30, 2005 Estimated average burden hours per response....... 5.0 ----------------------------- 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 811-09169 --------------------------------------------- SunAmerica Strategic Investment Series, Inc. ------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) Harborside Financial Center, 3200 Plaza 5, Jersey City, NJ 07311 ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Robert M. Zakem, ESQ. Senior Vice President & General Counsel AIG SunAmerica Asset Management Corp. Harborside Financial Center 3200 Plaza 5 Jersey City, NJ 07311 ------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (201) 324-6363 ---------------------------- Date of fiscal year end: October 31 -------------------------- Date of reporting period: April 30, 2003 ------------------------- Item 1. Reports to Shareholders. SunAmerica Strategic Investment Series, Inc., Semiannual Report at April 30, 2003. [GRAPHIC] SUNAMERICA THE RETIREMENT SPECIALIST STRATEGIC INVESTMENT SERIES 2003 SEMIANNUAL REPORT [AIG SUNAMERICA MUTUAL FUNDS LOGO] APRIL 30, 2003 SEMIANNUAL REPORT SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. SUNAMERICA BIOTECH/HEALTH FUND (SBHAX) TAX MANAGED EQUITY FUND (TXMAX) SUNAMERICA STOCK INDEX FUND (NBSKX) SUNAMERICA SCIENCE & TECHNOLOGY FUND (NSTAX) SUNAMERICA AGGRESSIVE GROWTH LIFESTAGE FUND (NKLAX) SUNAMERICA MODERATE GROWTH LIFESTAGE FUND (NLMAX) SUNAMERICA CONSERVATIVE GROWTH LIFESTAGE FUND (NCLAX) TABLE OF CONTENTS --------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES............... 1 STATEMENT OF OPERATIONS........................... 3 STATEMENTS OF CHANGES IN NET ASSETS............... 4 FINANCIAL HIGHLIGHTS.............................. 7 PORTFOLIO OF INVESTMENTS.......................... 14 NOTES TO FINANCIAL STATEMENTS..................... 30 DIRECTOR INFORMATION.............................. 49
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. STATEMENT OF ASSETS AND LIABILITIES -- APRIL 30, 2003 -- (UNAUDITED)
TAX AGGRESSIVE MODERATE CONSERVATIVE BIOTECH/ MANAGED STOCK SCIENCE & GROWTH GROWTH GROWTH HEALTH EQUITY INDEX TECHNOLOGY LIFESTAGE LIFESTAGE LIFESTAGE FUND FUND FUND FUND FUND FUND FUND ----------------------------------------------------------------------------------------------- ASSETS: Investments securities, at value*............... $ 35,176,069 $ 58,681,869 $ 29,519,038 $ 10,188,501 $ 20,302,795 $30,797,710 $19,092,331 Short-term securities (cost approximates market)................. -- 875,000 129,885 -- -- -- -- Repurchase agreements (cost equals market).... 5,558,000 -- 1,389,000 245,000 -- -- -- Foreign cash@............ -- -- -- 32 -- -- -- Deposit with brokers for securities sold short... 2,081,847 -- -- -- -- -- -- Cash..................... 311 393 472 189 12,264 86,469 -- Receivable for investments sold........ 26,730 -- -- 55,892 -- -- -- Receivable for shares of beneficial interest sold.................... 29,662 11,469 45,121 1,934 13,482 35,065 8,425 Interest and dividends receivable.............. 174 79,946 31,297 2,587 -- -- -- Receivable for variation margin on futures contracts............... -- -- 193 -- -- -- -- Receivable from investment adviser...... 9,678 11,478 15,762 15,261 18,523 14,804 14,967 Prepaid expenses......... 315 488 132 858 17,537 18,527 17,756 ------------ ------------ ------------ ------------ ------------ ----------- ----------- Total assets......... 42,882,786 59,660,643 31,130,900 10,510,254 20,364,601 30,952,575 19,133,479 ------------ ------------ ------------ ------------ ------------ ----------- ----------- LIABILITIES: Payable for investments purchased............... 1,464,596 -- -- 81,583 -- -- -- Payable for shares of beneficial interest sold.................... 111,621 68,675 9,970 1,020 5,578 18,770 5,854 Accrued expenses......... 106,957 101,610 29,047 15,267 2,421 6,345 8,613 Distribution and service maintenance fees payable................. 23,442 40,046 20,162 6,838 6,568 8,418 5,447 Investment advisory and management fees payable................. 23,210 40,498 6,670 7,319 1,619 2,460 1,550 Securities sold short, at value#.................. 2,135,250 -- -- -- -- -- -- Due to custodian......... -- -- -- -- -- -- 1,809 Dividend payable on securities sold short... 500 -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ----------- ----------- Total liabilities.... 3,865,576 250,829 65,849 112,027 16,186 35,993 23,273 ------------ ------------ ------------ ------------ ------------ ----------- ----------- Net assets......... $ 39,017,210 $ 59,409,814 $ 31,065,051 $ 10,398,227 $ 20,348,415 $30,916,582 $19,110,206 ============ ============ ============ ============ ============ =========== =========== NET ASSETS WERE COMPOSED OF: Shares of beneficial interest $.0001 par value................... $ 514 $ 652 $ 383 $ 437 $ 308 $ 396 $ 223 Paid-in capital.......... 79,371,627 103,084,929 43,570,759 32,659,801 32,873,621 40,199,467 23,685,964 ------------ ------------ ------------ ------------ ------------ ----------- ----------- 79,372,141 103,085,581 43,571,142 32,660,238 32,873,929 40,199,863 23,686,187 Accumulated undistributed net investment income (loss)........... (359,257) (56,214) 66,278 (78,119) (124,039) 24,540 63,874 Accumulated undistributed net realized gain (loss) on investments, futures contracts, securities sold short and foreign currency transactions... (39,945,348) (30,388,254) (2,672,767) (20,985,629) (10,642,015) (8,174,704) (4,808,620) Net unrealized appreciation (depreciation) on: Investments............ 3,077 (13,231,299) (10,008,697) (1,198,110) (1,759,460) (1,133,117) 168,765 Future contracts....... -- -- 109,095 -- -- -- -- Foreign currencies and other assets and liabilities........... -- -- -- (153) -- -- -- Securities sold short................. (53,403) -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ----------- ----------- Net assets........... $ 39,017,210 $ 59,409,814 $ 31,065,051 $ 10,398,227 $ 20,348,415 $30,916,582 $19,110,206 ============ ============ ============ ============ ============ =========== =========== *Identified cost of investment securities... $ 35,172,992 $ 71,913,168 $ 39,527,735 $ 11,386,611 $ 22,062,255 $31,930,827 $18,923,566 ============ ============ ============ ============ ============ =========== =========== @Identified cost of foreign cash............ $ -- $ -- $ -- $ 28 $ -- $ -- $ -- ============ ============ ============ ============ ============ =========== =========== #Proceeds from securities sold short.............. $ 2,081,847 $ -- $ -- $ -- $ -- $ -- $ -- ============ ============ ============ ============ ============ =========== ===========
See Notes to Financial Statements 1 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. STATEMENT OF ASSETS AND LIABILITIES -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
TAX AGGRESSIVE MODERATE CONSERVATIVE BIOTECH/ MANAGED STOCK SCIENCE & GROWTH GROWTH GROWTH HEALTH EQUITY INDEX TECHNOLOGY LIFESTAGE LIFESTAGE LIFESTAGE FUND FUND FUND FUND FUND FUND FUND ------------------------------------------------------------------------------------------ CLASS A (UNLIMITED SHARES AUTHORIZED): Net assets............... $14,677,493 $14,603,968 $ 8,865,681 $2,378,357 $ 3,048,693 $ 4,363,055 $4,362,020 Shares of beneficial interest issued and outstanding............ 1,909,554 1,570,140 1,090,423 981,232 462,432 559,431 510,533 Net asset value and redemption price per share.................. $ 7.69 $ 9.30 $ 8.13 $ 2.42 $ 6.59 $ 7.80 $ 8.54 Maximum sales charge (5.75% of offering price)................. 0.47 0.57 0.50 0.15 0.40 0.48 0.52 ----------- ----------- ----------- ---------- ----------- ----------- ---------- Maximum offering price to public................. $ 8.16 $ 9.87 $ 8.63 $ 2.57 $ 6.99 $ 8.28 $ 9.06 =========== =========== =========== ========== =========== =========== ========== CLASS B (UNLIMITED SHARES AUTHORIZED): Net assets............... $14,516,904 $22,499,376 $19,685,218 $7,217,526 $10,186,614 $12,220,711 $6,684,958 Shares of beneficial interest issued and outstanding............ 1,925,568 2,486,375 2,431,184 3,040,579 1,541,159 1,562,801 779,035 Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge).......... $ 7.54 $ 9.05 $ 8.10 $ 2.37 $ 6.61 $ 7.82 $ 8.58 =========== =========== =========== ========== =========== =========== ========== CLASS II (UNLIMITED SHARES AUTHORIZED): Net assets............... $ 9,822,813 $22,306,470 $ 2,514,152 $ 639,831 $ 365,353 $ 1,270,463 $1,571,202 Shares of beneficial interest issued and outstanding............ 1,300,725 2,461,645 312,035 276,716 54,758 162,249 182,577 Net asset value and redemption price per share (excluding any applicable contingent deferred sales charge).......... $ 7.55 $ 9.06 $ 8.06 $ 2.31 $ 6.67 $ 7.83 $ 8.61 Maximum sales charge (1.00% of offering price)................. 0.08 0.09 0.08 0.02 0.07 0.08 0.09 ----------- ----------- ----------- ---------- ----------- ----------- ---------- Maximum offering price to public................. $ 7.63 $ 9.15 $ 8.14 $ 2.33 $ 6.74 $ 7.91 $ 8.70 =========== =========== =========== ========== =========== =========== ========== CLASS I (UNLIMITED SHARES AUTHORIZED): Net assets............... $ -- $ -- $ -- $ 162,513 $ 6,747,755 $13,062,353 $6,492,026 Shares of beneficial interest issued and outstanding............ -- -- -- 66,700 1,021,834 1,676,031 759,220 Net asset value, offering and redemption price per share.............. $ -- $ -- $ -- $ 2.44 $ 6.60 $ 7.79 $ 8.55 =========== =========== =========== ========== =========== =========== ==========
See Notes to Financial Statements 2 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS ENDED APRIL 30, 2003 -- (UNAUDITED)
TAX AGGRESSIVE MODERATE CONSERVATIVE BIOTECH/ MANAGED STOCK SCIENCE & GROWTH GROWTH GROWTH HEALTH EQUITY INDEX TECHNOLOGY LIFESTAGE LIFESTAGE LIFESTAGE FUND FUND FUND FUND FUND FUND FUND ---------------------------------------------------------------------------------------------- INVESTMENT INCOME: Income: Interest....................... $ 33,895 $ 1,095 $ 9,445 $ 1,026 $ -- $ -- $ -- Dividends*..................... 2,300 544,682 256,696 17,295 24,847 143,152 166,536 ----------- ----------- ---------- ----------- ----------- ---------- ---------- Total investment income...... 36,195 545,777 266,141 18,321 24,847 143,152 166,536 ----------- ----------- ---------- ----------- ----------- ---------- ---------- Expenses: Investment advisory and management fees............... 150,246 260,589 39,634 43,509 9,578 14,262 9,241 Distribution and service maintenance fees-Class A...... 25,792 26,426 13,993 3,852 1,455 1,985 2,041 Distribution and service maintenance fees-Class B...... 73,024 116,232 93,531 33,523 36,884 44,232 26,245 Distribution and service maintenance fees-Class II..... 53,613 114,839 13,280 3,057 1,087 4,072 5,025 Service fees-Class I........... -- -- -- 189 -- -- -- Transfer agent fees and expenses-Class A.............. 23,526 20,541 12,062 6,744 2,265 1,510 1,510 Transfer agent fees and expenses-Class B.............. 26,453 30,915 33,365 22,702 3,020 5,285 2,265 Transfer agent fees and expenses-Class II............. 20,436 30,024 4,538 3,186 1,510 1,510 1,510 Transfer agent fees and expenses-Class I.............. -- -- -- 250 755 755 755 Registration fees-Class A...... 11,036 6,199 4,861 3,258 1,510 1,510 1,510 Registration fees-Class B...... 9,942 6,409 2,862 3,641 1,510 1,510 1,510 Registration fees-Class II..... 9,942 6,695 3,127 2,555 755 755 755 Registration fees-Class I...... -- -- -- 2,917 755 755 755 Printing expense............... 4,230 861 11,689 15,369 20,385 12,080 6,040 Custodian fees and expenses.... 26,913 27,726 25,548 27,009 5,285 5,285 5,285 Audit and tax fees............. 8,940 9,420 9,260 9,260 21,305 21,305 21,305 Legal fees and expenses........ 2,938 4,483 1,991 2,534 2,265 2,265 2,265 Directors' fees and expenses... 3,262 3,522 1,257 1,062 1,639 1,700 1,632 Dividend expense on securities sold short.................... 8,450 -- -- -- -- -- -- Miscellaneous expenses......... 3,976 4,540 5,496 2,903 2,264 2,325 1,967 ----------- ----------- ---------- ----------- ----------- ---------- ---------- Total expenses............... 462,719 669,421 276,494 187,520 114,227 123,101 91,616 Less: expenses waived/reimbursed by investment adviser.......... (67,995) (74,535) (95,838) (91,271) (41,305) (22,849) (25,926) Less: custody credits earned on cash balances (1,901) (164) (1,134) (35) -- -- -- ----------- ----------- ---------- ----------- ----------- ---------- ---------- Net expenses................. 392,823 594,722 179,522 96,214 72,922 100,252 65,690 ----------- ----------- ---------- ----------- ----------- ---------- ---------- Net investment income (loss)..... (356,628) (48,945) 86,619 (77,893) (48,075) 42,900 100,846 ----------- ----------- ---------- ----------- ----------- ---------- ---------- REALIZED AND UNREALIZED LOSS ON INVESTMENTS: Net realized gain (loss) on investments..................... (5,286,150) (3,724,460) (123,878) (1,281,427) (831,447) (981,213) (641,000) Net realized gain (loss) on futures contracts............... -- -- 37,075 -- -- -- -- Net realized gain (loss) on securities sold short........... 555,644 -- -- -- -- -- -- Net realized gain (loss) on foreign currencies and other assets and liabilities.......... -- -- -- (1,436) -- -- -- Net change in unrealized appreciation (depreciation) on investments..................... 4,916,009 5,450,477 1,117,274 2,366,522 1,515,873 1,959,754 1,220,623 Net change in unrealized appreciation (depreciation) on futures contracts............... -- -- 25,507 -- -- -- -- Net change in unrealized appreciation (depreciation) on foreign currencies and other assets and liabilities.......... -- -- -- (153) -- -- -- Net change in unrealized appreciation (depreciation) on securities sold short........... 289,279 -- -- -- -- -- -- ----------- ----------- ---------- ----------- ----------- ---------- ---------- Net realized and unrealized gain (loss) on investments, future contracts, securities sold short, foreign currencies and other assets and liabilities.... 474,782 1,726,017 1,055,978 1,083,506 684,426 978,541 579,623 ----------- ----------- ---------- ----------- ----------- ---------- ---------- NET INCREASE(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ 118,154 $ 1,677,072 $1,142,597 $ 1,005,613 $ 636,351 $1,021,441 $ 680,469 =========== =========== ========== =========== =========== ========== ========== *Net of foreign withholding taxes on dividends of $ -- $ 80 $ -- $ 916 $ -- $ -- $ -- =========== =========== ========== =========== =========== ========== ==========
See Notes to Financial Statements 3 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. STATEMENT OF CHANGES IN NET ASSETS
BIOTECH/HEALTH FUND TAX MANAGED EQUITY FUND STOCK INDEX FUND -------------------------- --------------------------- ------------------------- FOR THE SIX FOR THE SIX FOR THE SIX MONTHS MONTHS MONTHS FOR THE ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED YEAR APRIL 30, ENDED APRIL 30, ENDED APRIL 30, ENDED 2003 OCTOBER 31, 2003 OCTOBER 31, 2003 OCTOBER 31, (UNAUDITED) 2002 (UNAUDITED) 2002 (UNAUDITED) 2002+ ------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss)............. $ (356,628) $ (1,116,235) $ (48,945) $ (393,346) $ 86,619 $ 101,290 Net realized gain (loss) on investments............................. (5,286,150) (17,583,650) (3,724,460) (15,675,665) 37,075 (1,116,427) Net realized gain (loss) from capital gain distribution from underlying funds................................... -- -- -- -- -- -- Net realized gain (loss) on futures contracts............................... -- -- -- -- (123,878) (501,587) Net realized gain (loss) on securities sold short.............................. 555,644 -- -- -- -- -- Net realized gain (loss) on foreign currencies and other assets and liabilities............................. -- -- -- -- -- -- Net change in unrealized appreciation (depreciation) on investments........... 4,916,009 (5,200,198) 5,450,477 (2,347,140) 1,117,274 (4,194,388) Net change in unrealized appreciation (depreciation) on futures contracts..... -- -- -- -- 25,507 73,796 Net change in unrealized appreciation (depreciation) on foreign currencies and other assets and liabilities............ -- -- -- -- -- -- Net change in unrealized appreciation (depreciation) on securities sold short................................... 289,279 422,091 -- -- -- -- ----------- ------------ ------------ ------------ ----------- ----------- Net increase (decrease) in net assets resulting from operations................. 118,154 (23,477,992) 1,677,072 (18,416,151) 1,142,597 (5,637,316) ----------- ------------ ------------ ------------ ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income (Class A)..... -- -- -- -- (69,075) (50,367) From net investment income (Class B)..... -- -- -- -- (33,854) (4,344) From net investment income (Class II).... -- -- -- -- (5,066) (282) From net investment income (Class I)..... -- -- -- -- -- -- ----------- ------------ ------------ ------------ ----------- ----------- Total distributions to shareholders...... -- -- -- -- (107,995) (54,993) ----------- ------------ ------------ ------------ ----------- ----------- NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS (NOTE 8)....... (5,398,517) (9,222,459) (10,987,007) (25,890,226) 1,028,354 3,765,201 ----------- ------------ ------------ ------------ ----------- ----------- TOTAL INCREASE (DECREASE) IN NET ASSETS.... (5,280,363) (32,700,451) (9,309,935) (44,306,377) 2,062,956 (1,927,108) NET ASSETS: Beginning of period........................ 44,297,573 76,998,024 68,719,749 113,026,126 29,002,095 30,929,203 ----------- ------------ ------------ ------------ ----------- ----------- End of period.............................. $39,017,210 $ 44,297,573 $ 59,409,814 $ 68,719,749 $31,065,051 $29,002,095 =========== ============ ============ ============ =========== =========== Accumulated undistributed net investment income (loss)............................. $ (359,257) $ (2,629) $ (56,214) $ (7,269) $ 66,278 $ 87,654 =========== ============ ============ ============ =========== ===========
------------------ + See note 2 See Notes to Financial Statements 4 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
SCIENCE & TECHNOLOGY AGGRESSIVE GROWTH FUND LIFESTAGE FUND ------------------------- ------------------------- FOR THE FOR THE SIX MONTHS FOR THE SIX MONTHS FOR THE ENDED YEAR ENDED YEAR APRIL 30, ENDED APRIL 30, ENDED 2003 OCTOBER 31, 2003 OCTOBER 31, (UNAUDITED) 2002+ (UNAUDITED) 2002+ -------------------------------------------------------- OPERATIONS: Net investment income (loss).............................. $ (77,893) $ (206,954) $ (48,075) $ 213,896 Net realized gain (loss) on investments................... (1,281,427) (5,035,553) (831,447) (4,812,315) Net realized gain (loss) from capital gain distribution from underlying funds.................................... -- -- -- 190,574 Net realized gain (loss) on futures contracts............. -- -- -- -- Net realized gain (loss) on securities sold short......... -- -- -- -- Net realized gain (loss) on foreign currencies and other assets and liabilities................................... (1,436) (1,525) -- -- Net change in unrealized appreciation (depreciation) on investments.............................................. 2,366,522 886,939 1,515,873 471,977 Net change in unrealized appreciation (depreciation) on futures contracts........................................ -- -- -- -- Net change in unrealized appreciation (depreciation) on foreign currencies and other assets and liabilities...... (153) -- -- -- Net change in unrealized appreciation (depreciation) on securities sold short.................................... -- -- -- -- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations................................................. 1,005,613 (4,357,093) 636,351 (3,935,868) ----------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income (Class A)...................... -- -- (38,873) (31,219) From net investment income (Class B)...................... -- -- (59,391) (17,221) From net investment income (Class II)..................... -- -- (1,665) (344) From net investment income (Class I)...................... -- -- (87,062) (61,214) ----------- ----------- ----------- ----------- Total distributions to shareholders....................... -- -- (186,991) (109,998) ----------- ----------- ----------- ----------- NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS (NOTE 8)...................................... 165,239 (257,676) 838,785 1,241,280 ----------- ----------- ----------- ----------- TOTAL INCREASE (DECREASE) IN NET ASSETS..................... 1,170,852 (4,614,769) 1,288,145 (2,804,586) NET ASSETS: Beginning of period......................................... 9,227,375 13,842,144 19,060,270 21,864,856 ----------- ----------- ----------- ----------- End of period............................................... $10,398,227 $ 9,227,375 $20,348,415 $19,060,270 =========== =========== =========== =========== Accumulated undistributed net investment income (loss)...... $ (78,119) $ (226) $ (124,039) $ 111,027 =========== =========== =========== ===========
------------------ + See note 2 See Notes to Financial Statements 5 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
MODERATE GROWTH CONVERATIVE GROWTH LIFESTAGE FUND LIFESTAGE FUND ------------------------- ------------------------- FOR THE FOR THE SIX MONTHS FOR THE SIX MONTHS FOR THE ENDED YEAR ENDED YEAR APRIL 30, ENDED APRIL 30, ENDED 2003 OCTOBER 31, 2003 OCTOBER 31, (UNAUDITED) 2002+ (UNAUDITED) 2002+ -------------------------------------------------------- OPERATIONS: Net investment income (loss).............................. $ 42,900 $ 492,973 $ 100,846 $ 467,516 Net realized gain (loss) on investments................... (981,213) (3,977,340) (641,000) (1,943,093) Net realized gain (loss) from capital gain distribution from underlying funds.................................... -- 206,108 -- 110,236 Net realized gain (loss) on futures contracts............. -- -- -- -- Net realized gain (loss) on securities sold short......... -- -- -- -- Net realized gain (loss) on foreign currencies and other assets and liabilities................................... -- -- -- -- Net change in unrealized appreciation (depreciation) on investments.............................................. 1,959,754 (688,725) 1,220,623 (255,689) Net change in unrealized appreciation (depreciation) on futures contracts........................................ -- -- -- -- Net change in unrealized appreciation (depreciation) on foreign currencies and other assets and liabilities...... -- -- -- -- Net change in unrealized appreciation (depreciation) on securities sold short.................................... -- -- -- -- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations................................................. 1,021,441 (3,966,984) 680,469 (1,621,030) ----------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income (Class A)...................... (59,132) (50,695) (99,551) (76,020) From net investment income (Class B)...................... (105,333) (78,487) (122,535) (127,052) From net investment income (Class II)..................... (9,927) (4,373) (22,240) (8,928) From net investment income (Class I)...................... (193,593) (129,438) (150,668) (128,001) ----------- ----------- ----------- ----------- Total distributions to shareholders....................... (367,985) (262,993) (394,994) (340,001) ----------- ----------- ----------- ----------- NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS (NOTE 8).................................... 2,628,800 5,131,531 545,665 822,814 ----------- ----------- ----------- ----------- TOTAL INCREASE (DECREASE) IN NET ASSETS..................... 3,282,256 901,554 831,140 (1,138,217) NET ASSETS: Beginning of period......................................... 27,634,326 26,732,772 18,279,066 19,417,283 ----------- ----------- ----------- ----------- End of period............................................... $30,916,582 $27,634,326 $19,110,206 $18,279,066 =========== =========== =========== =========== Accumulated undistributed net investment income (loss)...... $ 24,540 $ 349,625 $ 63,874 $ 358,022 =========== =========== =========== ===========
------------------ + See note 2 See Notes to Financial Statements 6 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. FINANCIAL HIGHLIGHTS
BIOTECH/HEALTH FUND NET DIVIDENDS NET GAIN (LOSS) TOTAL FROM DISTRI- NET NET ASSET INVEST- ON INVEST- FROM NET BUTIONS ASSET VALUE, MENT MENTS (BOTH INVEST- INVEST- FROM TOTAL VALUE, PERIOD BEGINNING INCOME REALIZED AND MENT MENT CAPITAL DISTRI- END OF TOTAL ENDED OF PERIOD (LOSS)(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) --------------------- --------- --------- ------------ ---------- --------- -------- -------- -------- --------- CLASS A 6/14/00- 10/31/00(3)........ $12.50 $(0.02) $ 3.48 $ 3.46 $ -- $ -- $ -- $15.96 27.68% 10/31/01............. 15.96 (0.06) (4.32) (4.38) -- (0.55) (0.55) 11.03 (27.92) 10/31/02............. 11.03 (0.13) (3.28) (3.41) -- -- -- 7.62 (30.92) 4/30/03(8)........... 7.62 (0.05) 0.12 0.07 -- -- -- 7.69 0.92 CLASS B 6/14/00- 10/31/00(3)........ $12.50 $(0.05) $ 3.47 $ 3.42 $ -- $ -- $ -- $15.92 27.36% 10/31/01............. 15.92 (0.14) (4.31) (4.45) -- (0.55) (0.55) 10.92 (28.45) 10/31/02............. 10.92 (0.19) (3.23) (3.42) -- -- -- 7.50 (31.32) 4/30/03(8)........... 7.50 (0.07) 0.11 0.04 -- -- -- 7.54 0.53 CLASS II 6/14/00- 10/31/00(3)........ $12.50 $(0.05) $ 3.48 $ 3.43 $ -- $ -- $ -- $15.93 27.44% 10/31/01............. 15.93 (0.14) (4.31) (4.45) -- (0.55) (0.55) 10.93 (28.43) 10/31/02............. 10.93 (0.19) (3.23) (3.42) -- -- -- 7.51 (31.29) 4/30/03(8)........... 7.51 (0.08) 0.12 0.04 -- -- -- 7.55 0.53 --------------------------------------------------------------------------------------------------------------------------------- BIOTECH/HEALTH FUND RATIO OF NET NET INVESTMENT ASSETS RATIO OF INCOME (LOSS) END OF EXPENSES TO PERIOD PERIOD TO AVERAGE AVERAGE PORTFOLIO ENDED (000'S) NET ASSETS NET ASSETS TURNOVER --------------------- -------- --------------- ---------------- --------- CLASS A 6/14/00- 10/31/00(3)........ $30,489 1.55%(4)(5)(6) (0.28)%(4)(5)(6) 112% 10/31/01............. 27,865 1.55(5)(6) (0.50)(5)(6) 333 10/31/02............. 16,092 1.55(5) (1.38)(5) 340 4/30/03(8)........... 14,677 1.55(4)(5)(7) (1.37)(4)(5)(7) 95 CLASS B 6/14/00- 10/31/00(3)........ $23,457 2.20%(4)(5)(6) (1.08)%(4)(5)(6) 112% 10/31/01............. 25,552 2.20(5)(6) (1.18)(5)(6) 333 10/31/02............. 15,757 2.20(5) (2.03)(5) 340 4/30/03(8)........... 14,517 2.20(4)(5)(7) (2.02)(4)(5)(7) 95 CLASS II 6/14/00- 10/31/00(3)........ $20,386 2.20%(4)(5)(6) (1.07)%(4)(5)(6) 112% 10/31/01............. 23,581 2.20(5)(6) (1.17)(5)(6) 333 10/31/02............. 12,448 2.20(5) (2.03)(5) 340 4/30/03(8)........... 9,823 2.20(4)(5)(7) (2.02)(4)(5)(7) 95 ---------------------
(1) Calculated based upon average shares outstanding (2) Total return is not annualized and does not reflect sales load but does include expense reimbursements. (3) Commencement of operations (4) Annualized (5) Net of the following expense reimbursements (based on average net assets):
10/31/00(4) 10/31/01 10/31/02 4/30/03(4)(8) ----------- --------- --------- ------------- Biotech/Health Fund Class A.......... 0.49% 0.19% 0.20% 0.30% Biotech/Health Fund Class B.......... 0.96 0.21 0.20 0.33 Biotech/Health Fund Class II......... 1.09 0.20 0.21 0.40
(6) The ratio reflects an expense cap which is net of custody credits of less than 0.01% (7) The ratio reflects an expense cap which is net of custody credits of 0.02% or waiver/reimbursements, if applicable (8) Unaudited See Notes to Financial Statements 7 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED)
TAX MANAGED EQUITY FUND NET DIVIDENDS NET GAIN (LOSS) TOTAL FROM DISTRI- NET NET ASSET INVEST- ON INVEST- FROM NET BUTIONS ASSET VALUE, MENT MENTS (BOTH INVEST- INVEST- FROM TOTAL VALUE, PERIOD BEGINNING INCOME REALIZED AND MENT MENT CAPITAL DISTRI- END OF TOTAL ENDED OF PERIOD (LOSS)(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) --------------------- --------- --------- ------------ ---------- --------- -------- -------- -------- --------- CLASS A 3/01/99- 10/31/99(3)........ $12.50 $ -- $ 1.15 $ 1.15 $ -- $ -- $ -- $13.65 9.20% 10/31/00............. 13.65 (0.02) 0.91 0.89 -- -- -- 14.54 6.52 10/31/01............. 14.54 -- (3.50) (3.50) -- -- -- 11.04 (24.07) 10/31/02............. 11.04 0.01 (2.05) (2.04) -- -- -- 9.00 (18.48) 4/30/03(7)........... 9.00 0.01 0.29 0.30 -- -- -- 9.30 3.33 CLASS B 3/01/99- 10/31/99(3)........ $12.50 $(0.06) $ 1.14 $ 1.08 $ -- $ -- $ -- $13.58 8.64% 10/31/00............. 13.58 (0.11) 0.91 0.80 -- -- -- 14.38 5.89 10/31/01............ 14.38 (0.08) (3.45) (3.53) -- -- -- 10.85 (24.55) 10/31/02............. 10.85 (0.06) (2.00) (2.06) -- -- -- 8.79 (18.99) 4/30/03(7)........... 8.79 (0.01) 0.27 0.26 -- -- -- 9.05 2.96 CLASS II 3/01/99- 10/31/99(3)........ $12.50 $(0.06) $ 1.16 $ 1.10 $ -- $ -- $ -- $13.60 8.80% 10/31/00............. 13.60 (0.11) 0.91 0.80 -- -- -- 14.40 5.88 10/31/01............. 14.40 (0.08) (3.46) (3.54) -- -- -- 10.86 (24.58) 10/31/02............. 10.86 (0.06) (2.00) (2.06) -- -- -- 8.80 (18.97) 4/30/03(7)........... 8.80 (0.01) 0.27 0.26 -- -- -- 9.06 2.95 --------------------------------------------------------------------------------------------------------------------------------- TAX MANAGED EQUITY FUND RATIO OF NET NET INVESTMENT ASSETS RATIO OF INCOME (LOSS) END OF EXPENSES TO PERIOD PERIOD TO AVERAGE AVERAGE PORTFOLIO ENDED (000'S) NET ASSETS NET ASSETS TURNOVER --------------------- -------- --------------- ---------------- --------- CLASS A 3/01/99- 10/31/99(3)........ $25,067 1.45%(4)(5)(6) (0.02)%(4)(5)(6) 9% 10/31/00............. 38,802 1.45(5)(6) (0.14)(5)(6) 7 10/31/01............. 28,739 1.45(5)(6) (0.03)(5)(6) 19 10/31/02............. 16,587 1.45(5) 0.09(5) 16 4/30/03(7)........... 14,604 1.45(4)(5) 0.33(4)(5) 4 CLASS B 3/01/99- 10/31/99(3)........ $27,524 2.10%(4)(5)(6) (0.74)%(4)(5)(6) 9% 10/31/00............. 47,972 2.10(5)(6) (0.79)(5)(6) 7 10/31/01............ 40,677 2.10(5)(6) (0.68)(5)(6) 19 10/31/02............. 25,703 2.10(5) (0.56)(5) 16 4/30/03(7)........... 22,499 2.10(4)(5) (0.32)(4)(5) 4 CLASS II 3/01/99- 10/31/99(3)........ $27,884 2.10%(4)(5)(6) (0.75)%(4)(5)(6) 9% 10/31/00............. 51,348 2.10(5)(6) (0.79)(5)(6) 7 10/31/01............. 43,610 2.10(5)(6) (0.68)(5)(6) 19 10/31/02............. 26,430 2.10(5) (0.56)(5) 16 4/30/03(7)........... 22,306 2.10(4)(5) (0.32)(4)(5) 4 ---------------------
(1) Calculated based upon average shares outstanding (2) Total return is not annualized and does not reflect sales load but does include expense reimbursements. (3) Commencement of operations (4) Annualized (5) Net of the following expense reimbursements (based on average net assets):
10/31/99(4) 10/31/00 10/31/01 10/31/02 4/30/03(4)(7) ----------- --------- --------- --------- ------------- Tax Managed Equity Fund Class A...... 1.07% 0.23% 0.15% 0.21% 0.27% Tax Managed Equity Fund Class B...... 0.84 0.22 0.15 0.20 0.24 Tax Managed Equity Fund Class II..... 0.83 0.22 0.14 0.21 0.23
(6) The ratio reflects an expense cap which is net of custody credits of less than 0.01% or waiver/reimbursements if applicable (7) Unaudited See Notes to Financial Statements 8 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED)
STOCK INDEX FUND DIVI- NET DENDS DIS- NET GAIN (LOSS) TOTAL FROM TRIBU- NET NET ASSET INVEST- ON INVEST- FROM NET TIONS ASSET VALUE, MENT MENTS (BOTH INVEST- INVEST- FROM TOTAL VALUE, PERIOD BEGINNING INCOME REALIZED AND MENT MENT CAPITAL DISTRI- END OF TOTAL ENDED OF PERIOD (LOSS)(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) --------------------- --------- --------- ------------ ---------- -------- -------- -------- -------- --------- CLASS A 11/01/98-10/31/99(3)... $10.00 $ 0.11 $ 2.32 $ 2.43 $(0.11) $ -- $(0.11) $12.32 24.36% 10/31/00............. 12.32 0.14 0.47 0.61 (0.10) (0.08) (0.18) 12.75 4.91 10/31/01............. 12.75 0.09 (3.32) (3.23) (0.13) -- (0.13) 9.39 (25.53) 10/31/02............. 9.39 0.07 (1.53) (1.46) (0.06) -- (0.06) 7.87 (15.67) 4/30/03(6)........... 7.87 0.04 0.29 0.33 (0.07) -- (0.07) 8.13 4.20 CLASS B 11/01/98-10/31/99(3)... $10.00 $ 0.02 $ 2.23 $ 2.25 $(0.02) $ -- $(0.02) $12.23 22.55% 10/31/00............. 12.23 0.05 0.46 0.51 (0.02) (0.08) (0.10) 12.64 4.21 10/31/01............. 12.64 0.02 (3.29) (3.27) (0.04) -- (0.04) 9.33 (25.97) 10/31/02............. 9.33 0.01 (1.53) (1.52) -- -- -- 7.81 (16.28) 4/30/03(6)........... 7.81 0.02 0.28 0.30 (0.01) -- (0.01) 8.10 3.89 CLASS II* 7/17/00-10/31/00(3)... $13.38 $ 0.01 $(0.83) $(0.82) $(0.01) $ -- $(0.01) $12.55 (5.21)% 10/31/01............. 12.55 0.02 (3.26) (3.24) (0.04) -- (0.04) 9.27 (25.92) 10/31/02............. 9.27 0.02 (1.51) (1.49) -- -- -- 7.78 (16.06) 4/30/03(6)........... 7.78 0.02 0.27 0.29 (0.01) -- (0.01) 8.06 3.78 -------------------------------------------------------------------------------------------------------------------------------- STOCK INDEX FUND RATIO OF NET NET INVESTMENT ASSETS RATIO OF INCOME (LOSS) END OF EXPENSES TO PERIOD PERIOD TO AVERAGE AVERAGE PORTFOLIO ENDED (000'S) NET ASSETS NET ASSETS TURNOVER --------------------- -------- ---------- ------------- --------- CLASS A 11/01/98-10/31/99(3). $ 5,634 0.82%(5) 1.08%(5) 14% 10/31/00............. 8,543 0.78(5) 1.12(5) 2 10/31/01............. 7,639 0.75(5) 0.85(5) 3 10/31/02............. 7,269 0.75(5) 0.80(5) 2 4/30/03(6)........... 8,866 0.75(4)(5) 1.06(4)(5) 1 CLASS B 11/01/98-10/31/99(3). $15,040 1.57%(5) 0.37%(5) 14% 10/31/00............. 24,966 1.49(5) 0.42(5) 2 10/31/01............. 21,905 1.38(5) 0.22(5) 3 10/31/02............. 18,852 1.40(5) 0.15(5) 2 4/30/03(6)........... 19,685 1.40(4)(5) 0.41(4)(5) 1 CLASS II* 7/17/00-10/31/00(3).. $ 500 1.35%(4)(5) 0.30%(4)(5) 2% 10/31/01............. 1,385 1.39(5) 0.15(5) 3 10/31/02............. 2,882 1.40(5) 0.18(5) 2 4/30/03(6)........... 2,514 1.40(4)(5) 0.43(4)(5) 1 ---------------------
(1) Calculated based upon average shares outstanding (2) Total return is not annualized and does not reflect sales load but does include expense reimbursements. (3) Commencement of operations (4) Annualized (5) Net of the following expense reimbursements (based on average net assets):
10/31/99 10/31/00 10/31/01 10/31/02 4/30/03(4)(6) --------- --------- --------- --------- ------------- Stock Index Fund Class A............. 0.71% 0.34% 1.10% 0.67% 0.66% Stock Index Fund Class B............. 0.41 0.34 1.11 0.65 0.63 Stock Index Fund Class II*........... -- 0.40(4) 1.10 1.07 0.82
(6) Unaudited * In conjunction with the reorganization, Class C was redesignated as Class II. See Note 2 for further discussion. See Notes to Financial Statements 9 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED)
SCIENCE & TECHNOLOGY FUND DIVI- NET DENDS DIS- NET GAIN (LOSS) TOTAL FROM TRIBU- NET NET ASSET INVEST- ON INVEST- FROM NET TIONS ASSET VALUE, MENT MENTS (BOTH INVEST- INVEST- FROM TOTAL VALUE, PERIOD BEGINNING INCOME REALIZED AND MENT MENT CAPITAL DISTRI- END OF TOTAL ENDED OF PERIOD (LOSS)(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) --------------------- --------- --------- ------------ ---------- -------- -------- -------- -------- --------- CLASS A 3/1/00-10/31/00(3)... $10.00 $(0.04) $(1.88) $(1.92) $ -- $ -- $ -- $ 8.08 (19.20)% 10/31/01............. 8.08 (0.04) (4.86) (4.90) -- -- -- 3.18 (60.64) 10/31/02............. 3.18 (0.03) (0.97) (1.00) -- -- -- 2.18 (31.45) 4/30/03(7)........... 2.18 (0.01) 0.25 0.24 -- -- -- 2.42 11.01 CLASS B 3/1/00-10/31/00(3)... $10.00 $(0.07) $(1.90) $(1.97) $ -- $ -- $ -- $ 8.03 (19.70)% 10/31/01............. 8.03 (0.07) (4.82) (4.89) -- -- -- 3.14 (60.90) 10/31/02............. 3.14 (0.05) (0.95) (1.00) -- -- -- 2.14 (31.85) 4/30/03(7)........... 2.14 (0.02) 0.25 0.23 -- -- -- 2.37 10.75 CLASS II* 7/12/00-10/31/00(3)... $ 8.48 $(0.03) $(0.63) $(0.66) $ -- $ -- $ -- $ 7.82 (7.78)% 10/31/01............. 7.82 (0.07) (4.69) (4.76) -- -- -- 3.06 (60.87) 10/31/02............. 3.06 (0.05) (0.93) (0.98) -- -- -- 2.08 (32.03) 4/30/03(7)........... 2.08 (0.02) 0.25 0.23 -- -- -- 2.31 11.06 CLASS I 3/1/00-10/31/00(3)... $10.00 $(0.03) $(1.89) $(1.92) $ -- $ -- $ -- $ 8.08 (19.20)% 10/31/01............. 8.08 (0.04) (4.85) (4.89) -- -- -- 3.19 (60.52) 10/31/02............. 3.19 (0.03) (0.97) (1.00) -- -- -- 2.19 (31.35) 4/30/03(7)........... 2.19 (0.01) 0.26 0.25 -- -- -- 2.44 11.42 -------------------------------------------------------------------------------------------------------------------------------- SCIENCE & TECHNOLOGY FUND RATIO OF NET NET INVESTMENT ASSETS RATIO OF INCOME (LOSS) END OF EXPENSES TO PERIOD PERIOD TO AVERAGE AVERAGE PORTFOLIO ENDED (000'S) NET ASSETS NET ASSETS TURNOVER --------------------- -------- ----------- ------------- --------- CLASS A 3/1/00-10/31/00(3)... $ 4,623 1.24%(4)(5) (0.64)%(4)(5) 120% 10/31/01............. 2,673 1.34(5) (0.89)(5) 129 10/31/02............. 2,068 1.50(5)(6) (1.19)(5)(6) 82 4/30/03(7)........... 2,378 1.50(4)(5) (1.12)(4)(5) 23 CLASS B 3/1/00-10/31/00(3)... $15,840 1.91%(4)(5) (1.37)%(4)(5) 120% 10/31/01............. 9,408 1.99(5) (1.55)(5) 129 10/31/02............. 6,440 2.15(5)(6) (1.84)(5)(6) 82 4/30/03(7)........... 7,218 2.15(4)(5) (1.77)(4)(5) 23 CLASS II* 7/12/00-10/31/00(3).. $ 1,065 1.71%(4)(5) (1.11)%(4)(5) 120% 10/31/01............. 940 2.01(5) (1.57)(5) 129 10/31/02............. 574 2.15(5)(6) (1.84)(5)(6) 82 4/30/03(7)........... 640 2.15(4)(5) (1.78)(4)(5) 23 CLASS I 3/1/00-10/31/00(3)... $ 539 1.20%(4)(5) (0.48)%(4)(5) 120% 10/31/01............. 821 1.28(5) (0.85)(5) 129 10/31/02............. 146 1.40(5)(6) (1.08)(5)(6) 82 4/30/03(7)........... 163 1.40(4)(5) (1.02)(4)(5) 23 ---------------------
(1) Calculated based upon average shares outstanding (2) Total return is not annualized and does not reflect sales load but does include expense reimbursements and expense reductions. (3) Commencement of operations (4) Annualized (5) Net of the following expense reimbursements (based on average net assets):
10/31/00(4) 10/31/01 10/31/02 4/30/03(4)(7) ----------- --------- --------- ------------- Science & Technology Fund Class A.... 0.68% 2.10% 1.38% 1.86% Science & Technology Fund Class B.... 0.68 2.11 1.21 1.74 Science & Technology Fund 0.66 2.10 1.81 2.83 Class II*.......................... Science & Technology Fund Class I.... 0.68 2.10 4.66 5.14
(6) Includes expense reimbursements, but excludes expense reductions. If the expense reductions had been applied, the ratio of expenses to average net assets would have been lower by 0.01% for Class A, B, II and 0.02% for Class I. (7) Unaudited * In conjunction with the reorganization, Class C was redesignated as Class II. See Note 2 for further discussion. See Notes to Financial Statements 10 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AGGRESSIVE GROWTH LIFESTAGE FUND DIVI- NET DENDS DIS- NET GAIN (LOSS) TOTAL FROM TRIBU- NET NET ASSET INVEST- ON INVEST- FROM NET TIONS ASSET VALUE, MENT MENTS (BOTH INVEST- INVEST- FROM TOTAL VALUE, PERIOD BEGINNING INCOME REALIZED AND MENT MENT CAPITAL DISTRI- END OF TOTAL ENDED OF PERIOD (LOSS)(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) --------------------- --------- --------- ------------ ---------- -------- -------- -------- -------- --------- CLASS A 11/1/98-10/31/99(3)... $10.00 $0.07 $ 1.91 $ 1.98 $(0.06) $ -- $(0.06) $11.92 19.65% 10/31/00............. 11.92 1.39 0.53 1.92 (0.98) (0.15) (1.13) 12.71 16.27 10/31/01............. 12.71 0.51 (3.28) (2.77) (0.50) (1.62) (2.12) 7.82 (24.89) 10/31/02............. 7.82 0.10 (1.39) (1.29) (0.07) -- (0.07) 6.46 (16.68) 4/30/03(7)........... 6.46 (0.01) 0.23 0.22 (0.09) -- (0.09) 6.59 3.39 CLASS B 11/1/98-10/31/99(3)... $10.00 $0.06 $ 1.89 $ 1.95 $(0.05) $ -- $(0.05) $11.90 19.52% 10/31/00............. 11.90 1.46 0.48 1.94 (0.96) (0.15) (1.11) 12.73 16.30 10/31/01............. 12.73 0.44 (3.28) (2.84) (0.46) (1.62) (2.08) 7.81 (25.39) 10/31/02............. 7.81 0.05 (1.40) (1.35) (0.01) -- (0.01) 6.45 (17.31) 4/30/03(7)........... 6.45 (0.03) 0.23 0.20 (0.04) -- (0.04) 6.61 3.10 CLASS II* 8/10/00-10/31/00(3)... $13.03 $0.86 $(1.09) $(0.23) $ -- $ -- $ -- $12.80 (1.77)% 10/31/01............. 12.80 0.44 (3.29) (2.85) (0.46) (1.62) (2.08) 7.87 (25.33) 10/31/02............. 7.87 0.04 (1.39) (1.35) (0.01) -- (0.01) 6.51 (17.18) 4/30/03(7)........... 6.51 (0.03) 0.23 0.20 (0.04) -- (0.04) 6.67 3.07 CLASS I 11/1/98-10/31/99(3)... $10.00 $0.07(3) $ 1.90 $ 1.97 $(0.06) $ -- $(0.06) $11.91 19.71% 10/31/00............. 11.91 1.59 0.34 1.93 (0.96) (0.15) (1.11) 12.73 16.22 10/31/01............. 12.73 0.46 (3.23) (2.77) (0.50) (1.62) (2.12) 7.84 (24.81) 10/31/02............. 7.84 0.10 (1.38) (1.28) (0.08) -- (0.08) 6.48 (16.52) 4/30/03(7)........... 6.48 -- 0.21 0.21 (0.09) -- (0.09) 6.60 3.34 -------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE GROWTH LIFESTAGE FUND RATIO OF NET NET RATIO OF INVESTMENT ASSETS EXPENSES INCOME (LOSS) END OF TO AVERAGE TO PERIOD PERIOD NET AVERAGE PORTFOLIO ENDED (000'S) ASSETS(5) NET ASSETS(5) TURNOVER --------------------- -------- ---------- ------------- --------- CLASS A 11/1/98-10/31/99(3).. $ 1,929 0.10% 0.63% 9% 10/31/00............. 4,064 0.12 10.81 53 10/31/01............. 3,417 0.20 5.62 86 10/31/02............. 2,872 0.20 1.33 158 4/30/03(7)........... 3,049 0.45(4)(6) (0.19)(4)(6) 18 CLASS B 11/1/98-10/31/99(3).. $ 4,915 0.10% 0.66% 9% 10/31/00............. 13,450 0.24 11.51 53 10/31/01............. 12,695 0.85 4.82 86 10/31/02............. 9,992 0.85 0.70 158 4/30/03(7)........... 10,187 1.10(4)(6) (0.84)(4)(6) 18 CLASS II* 8/10/00-10/31/00(3).. $ 184 0.73%(4) 39.30%(4) 53% 10/31/01............. 235 0.85 4.82 86 10/31/02............. 286 0.85 0.56 158 4/30/03(7)........... 365 1.10(4)(6) (0.84)(4)(6) 18 CLASS I 11/1/98-10/31/99(3).. $ 1,547 0.10% 0.62% 9% 10/31/00............. 5,004 0.15 12.62 53 10/31/01............. 5,518 0.10 5.12 86 10/31/02............. 5,910 0.10 1.36 158 4/30/03(7)........... 6,748 0.35(4)(6) (0.09)(4)(6) 18 ---------------------
(1) Calculated based upon average shares outstanding (2) Total return is not annualized and does not reflect sales load but does include expense reimbursements. (3) Commencement of operations (4) Annualized (5) Amounts do not include the expenses of the underlying funds (6) Net of the following expense reimbursements (based on average net assets):
4/30/03(4)(7) ------------- Aggressive Growth LifeStage Fund 0.56% Class A............................ Aggressive Growth LifeStage Fund 0.40 Class B............................ Aggressive Growth LifeStage Fund 1.87 Class II........................... Aggressive Growth LifeStage Fund 0.36 Class I............................
(7) Unaudited * In conjunction with the reorganization, Class C was redesignated as Class II. See Note 2 for further discussion. See Notes to Financial Statements 11 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED)
MODERATE GROWTH LIFESTAGE FUND DIVI- NET DENDS DIS- NET GAIN (LOSS) TOTAL FROM TRIBU- NET NET ASSET INVEST- ON INVEST- FROM NET TIONS ASSET VALUE, MENT MENTS (BOTH INVEST- INVEST- FROM TOTAL VALUE, PERIOD BEGINNING INCOME REALIZED AND MENT MENT CAPITAL DISTRI- END OF TOTAL ENDED OF PERIOD (LOSS)(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) --------------------- --------- --------- ------------ ---------- -------- -------- -------- -------- --------- CLASS A 11/1/98-10/31/99(3)... $10.00 $ 0.14 $ 1.39 $ 1.53 $(0.13) $ -- $(0.13) $11.40 15.20% 10/31/00............. 11.40 0.99 0.50 1.49 (0.73) (0.09) (0.82) 12.07 13.27 10/31/01............. 12.07 0.55 (2.21) (1.66) (0.38) (1.15) (1.53) 8.88 (15.06) 10/31/02............. 8.88 0.18 (1.30) (1.12) (0.11) -- (0.11) 7.65 (12.77) 4/30/03(7)........... 7.65 0.02 0.25 0.27 (0.12) -- (0.12) 7.80 3.60 CLASS B 11/1/98-10/31/99(3)... $10.00 $ 0.12 $ 1.41 $ 1.53 $(0.11) $ -- $(0.11) $11.42 15.26% 10/31/00............. 11.42 1.02 0.47 1.49 (0.74) (0.09) (0.83) 12.08 13.22 10/31/01............. 12.08 0.47 (2.19) (1.72) (0.34) (1.15) (1.49) 8.87 (15.56) 10/31/02............. 8.87 0.12 (1.30) (1.18) (0.05) -- (0.05) 7.64 (13.38) 4/30/03(7)........... 7.64 -- 0.25 0.25 (0.07) -- (0.07) 7.82 3.27 CLASS II* 7/12/00-10/31/00(3)... $12.77 $ 0.73 $(1.03) $(0.30) $(0.36) $ -- $(0.36) $12.11 (2.30)% 10/31/01............. 12.11 0.28 (2.02) (1.74) (0.34) (1.15) (1.49) 8.88 (15.69) 10/31/02............. 8.88 0.10 (1.28) (1.18) (0.05) -- (0.05) 7.65 (13.37) 4/30/03(7)........... 7.65 -- 0.25 0.25 (0.07) -- (0.07) 7.83 3.26 CLASS I 11/1/98-10/31/99(3)... $10.00 $ 0.15 $ 1.38 $ 1.53 $(0.14) $ -- $(0.14) $11.39 15.35% 10/31/00............. 11.39 1.16 0.32 1.48 (0.72) (0.09) (0.81) 12.06 13.10 10/31/01............. 12.06 0.47 (2.12) (1.65) (0.38) (1.15) (1.53) 8.88 (14.97) 10/31/02............. 8.88 0.17 (1.27) (1.10) (0.13) -- (0.13) 7.65 (12.66) 4/30/03(7)........... 7.65 0.02 0.25 0.27 (0.13) -- (0.13) 7.79 3.58 -------------------------------------------------------------------------------------------------------------------------------- MODERATE GROWTH LIFESTAGE FUND RATIO OF NET NET INVESTMENT ASSETS RATIO OF INCOME END OF EXPENSES TO PERIOD PERIOD TO AVERAGE AVERAGE PORTFOLIO ENDED (000'S) NET ASSETS(5) NET ASSETS(5) TURNOVER --------------------- -------- ------------- ------------- --------- CLASS A 11/1/98-10/31/99(3).. $ 1,918 0.10% 1.33% 11% 10/31/00............. 3,396 0.12 8.27 47 10/31/01............. 3,876 0.20 5.68 79 10/31/02............. 3,697 0.20 2.10 156 4/30/03(7)........... 4,363 0.45(4)(6) 0.55(4)(6) 23 CLASS B 11/1/98-10/31/99(3).. $ 5,553 0.10% 1.40% 11% 10/31/00............. 11,843 0.23 8.53 47 10/31/01............. 13,412 0.85 4.83 79 10/31/02............. 12,036 0.85 1.44 156 4/30/03(7)........... 12,221 1.10(4)(6) (0.10)(4)(6) 23 CLASS II* 7/12/00-10/31/00(3).. $ 183 0.80%(4) 19.82%(4) 47% 10/31/01............. 738 0.85 2.96 79 10/31/02............. 970 0.85 1.22 156 4/30/03(7)........... 1,270 1.10(4)(6) (0.10)(4)(6) 23 CLASS I 11/1/98-10/31/99(3).. $ 1,537 0.10% 1.42% 11% 10/31/00............. 5,439 0.15 9.91 47 10/31/01............. 8,707 0.10 4.90 79 10/31/02............. 10,932 0.10 2.07 156 4/30/03(7)........... 13,062 0.35(4)(6) 0.65(4)(6) 23 ---------------------
(1) Calculated based upon average shares outstanding (2) Total return is not annualized and does not reflect sales load but does include expense reimbursements. (3) Commencement of operations (4) Annualized (5) Amounts do not include the expenses of the underlying funds (6) Net of the following expense reimbursements (based on average net assets):
4/30/03(4)(7) ------------- Moderate Growth LifeStage Fund 0.22% Class A............................ Moderate Growth LifeStage Fund 0.18 Class B............................ Moderate Growth LifeStage Fund 0.48 Class II........................... Moderate Growth LifeStage Fund 0.09 Class I............................
(7) Unaudited * In conjunction with the reorganization, Class C was redesignated as Class II. See Note 2 for further discussion. See Notes to Financial Statements 12 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED)
CONSERVATIVE GROWTH LIFESTAGE FUND DIVI- NET DENDS DIS- NET GAIN (LOSS) TOTAL FROM TRIBU- NET NET ASSET INVEST- ON INVEST- FROM NET TIONS ASSET VALUE, MENT MENTS (BOTH INVEST- INVEST- FROM TOTAL VALUE, PERIOD BEGINNING INCOME REALIZED AND MENT MENT CAPITAL DISTRI- END OF TOTAL ENDED OF PERIOD (LOSS)(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) --------------------- --------- --------- ------------ ---------- -------- -------- -------- -------- --------- CLASS A 11/1/98-10/31/99(3)... $10.00 $0.21 $ 1.02 $ 1.23 $(0.20) $ -- $(0.20) $11.03 12.30% 10/31/00............. 11.03 0.87 0.39 1.26 (0.60) (0.10) (0.70) 11.59 11.61 10/31/01............. 11.59 0.55 (1.40) (0.85) (0.37) (0.99) (1.36) 9.38 (7.91) 10/31/02............. 9.38 0.25 (1.00) (0.75) (0.20) -- (0.20) 8.43 (8.18) 4/30/03(7)........... 8.43 0.06 0.25 0.31 (0.20) -- (0.20) 8.54 3.81 CLASS B 11/1/98-10/31/99(3)... $10.00 $0.18 $ 1.05 $ 1.23 $(0.17) $ -- $(0.17) $11.06 12.21% 10/31/00............. 11.06 0.81 0.45 1.26 (0.59) (0.10) (0.69) 11.63 11.66 10/31/01............. 11.63 0.50 (1.43) (0.93) (0.33) (0.99) (1.32) 9.38 (8.60) 10/31/02............. 9.38 0.20 (1.01) (0.81) (0.13) -- (0.13) 8.44 (8.80) 4/30/03(7)........... 8.44 0.03 0.26 0.29 (0.15) -- (0.15) 8.58 3.45 CLASS II* 7/20/00-10/31/00(3)... $11.95 $0.74 $(0.73) $ 0.01 $(0.27) $ -- $(0.27) $11.69 0.06% 10/31/01............. 11.69 0.34 (1.31) (0.97) (0.33) (0.99) (1.32) 9.40 (8.93) 10/31/02............. 9.40 0.16 (0.97) (0.81) (0.13) -- (0.13) 8.46 (8.78) 4/30/03(7)........... 8.46 0.03 0.27 0.30 (0.15) -- (0.15) 8.61 3.56 CLASS I 11/1/98-10/31/99(3)... $10.00 $0.21 $ 1.02 $ 1.23 $(0.20) $ -- $(0.20) $11.03 12.24% 10/31/00............. 11.03 0.91 0.33 1.24 (0.58) (0.10) (0.68) 11.59 11.54 10/31/01............. 11.59 0.54 (1.38) (0.84) (0.37) (0.99) (1.36) 9.39 (7.80) 10/31/02............. 9.39 0.26 (0.99) (0.73) (0.22) -- (0.22) 8.44 (8.05) 4/30/03(7)........... 8.44 0.06 0.26 0.32 (0.21) -- (0.21) 8.55 3.91 -------------------------------------------------------------------------------------------------------------------------------- CONSERVATIVE GROWTH LIFESTAGE FUND RATIO OF NET NET INVESTMENT ASSETS RATIO OF INCOME (LOSS) END OF EXPENSES TO PERIOD PERIOD TO AVERAGE AVERAGE PORTFOLIO ENDED (000'S) NET ASSETS(5) NET ASSETS(5) TURNOVER --------------------- -------- ------------- ------------- --------- CLASS A 11/1/98-10/31/99(3).. $ 1,790 0.10% 2.01% 10% 10/31/00............. 3,420 0.12 7.62 45 10/31/01............. 3,459 0.20 5.63 85 10/31/02............. 3,699 0.20 2.79 199 4/30/03(7)........... 4,362 0.45(4)(6) 1.35(4)(6) 29 CLASS B 11/1/98-10/31/99(3).. $ 5,880 0.10% 2.11% 10% 10/31/00............. 10,354 0.23 7.15 45 10/31/01............. 9,908 0.85 5.08 85 10/31/02............. 7,417 0.85 2.19 199 4/30/03(7)........... 6,685 1.10(4)(6) 0.71(4)(6) 29 CLASS II* 7/20/00-10/31/00(3).. $ 150 0.86%(4) 22.43%(4) 45% 10/31/01............. 642 0.85 3.43 85 10/31/02............. 1,223 0.85 1.88 199 4/30/03(7)........... 1,571 1.10(4)(6) 0.69(4)(6) 29 CLASS I 11/1/98-10/31/99(3).. $ 1,508 0.10% 2.01% 10% 10/31/00............. 4,484 0.15 8.15 45 10/31/01............. 5,409 0.10 5.46 85 10/31/02............. 5,941 0.10 2.87 199 4/30/03(7)........... 6,492 0.35(4)(6) 1.45(4)(6) 29 ---------------------
(1) Calculated based upon average shares outstanding (2) Total return is not annualized and does not reflect sales load but does include expense reimbursements. (3) Commencement of operations (4) Annualized (5) Amounts do not include the expenses of the underlying funds (6) Net of the following expense reimbursements (based on average net assets):
4/30/03(4)(7) ------------- Conservative Growth LifeStage Fund 0.30% Class A............................ Conservative Growth LifeStage Fund 0.28 Class B............................ Conservative Growth LifeStage Fund 0.51 Class II........................... Conservative Growth LifeStage Fund 0.22 Class I............................
(7) Unaudited * In conjunction with the reorganization, Class C was redesignated as Class II. See Note 2 for further discussion. See Notes to Financial Statements 13 SUNAMERICA BIOTECH/HEALTH FUND PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED)
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) COMMON STOCK -- 90.2% BIOMEDICAL -- 9.0% Amgen, Inc.+..................... 20,000 $ 1,226,200 Genentech, Inc.+................. 30,000 1,139,700 IDEC Pharmaceuticals Corp.(1)+... 35,000 1,146,250 --------------- 3,512,150 --------------- BIOTECHNOLOGY -- 16.2% Biomarin Pharmaceutical, Inc.+... 200,000 2,196,000 Genta, Inc.+..................... 200,000 1,496,000 Medicines Co.+................... 50,000 1,027,500 Neurocrine Biosciences, Inc.+.... 35,000 1,583,750 --------------- 6,303,250 --------------- DISTRIBUTION -- 1.5% Caremark Rx, Inc.+............... 30,000 597,300 --------------- GENOMICS -- 2.2% Introgen Therapeutics, Inc.+..... 75,000 183,750 Invitrogen Corp.+................ 20,000 654,000 --------------- 837,750 --------------- HEALTH MAINTENANCE ORGANIZATIONS -- 6.9% Anthem, Inc.+.................... 30,000 2,059,200 Centene Corp.+................... 20,000 640,700 --------------- 2,699,900 --------------- HEALTH SERVICES -- 3.0% Odyssey Healthcare, Inc.+........ 37,500 969,000 United Surgical Partners International, Inc.+........... 10,000 185,300 --------------- 1,154,300 --------------- MEDICAL DEVICES -- 9.7% Integra LifeSciences Holdings+(1)................... 135,000 3,603,150 Quinton Cardiology Systems, Inc.+.......................... 32,700 193,584 --------------- 3,796,734 --------------- MEDICAL DRUGS -- 14.1% Allergan, Inc.................... 20,000 1,405,000 Celgene Corp.+................... 50,000 1,330,500 OSI Pharmaceuticals, Inc.+....... 100,000 2,100,000 Telik, Inc.+..................... 50,000 657,500 --------------- 5,493,000 --------------- MEDICAL SUPPLIES -- 2.4% Charles River Laboratories International, Inc.+........... 35,000 950,250 ---------------
SHARES/ PRINCIPAL AMOUNT VALUE SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 3) PHARMACEUTICALS -- 14.7% Biovail Corp+.................... 10,000 $ 361,500 Ilex Oncology, Inc.+............. 32,500 435,175 Kos Pharmaceuticals, Inc.+....... 50,000 1,020,000 MGI Pharma, Inc.+................ 80,000 1,155,200 Millennium Pharmaceuticals, Inc.+.......................... 100,000 1,100,000 Pharmaceutical Resources, Inc.+.. 20,000 879,000 Tanox, Inc.+..................... 50,000 790,000 --------------- 5,740,875 --------------- THERAPEUTICS -- 10.5% Cell Therapeutics, Inc.+......... 100,000 900,000 CV Therapeutics, Inc.+........... 90,000 1,798,200 Forest Laboratories, Inc.+(1).... 18,000 930,960 Gilead Sciences, Inc.+........... 10,000 461,400 --------------- 4,090,560 --------------- TOTAL INVESTMENT SECURITIES (cost $35,172,992)............... 35,176,069 --------------- REPURCHASE AGREEMENT -- 14.2% State Street Bank & Trust Co. Joint Repurchase Agreement Account (Note 3) (cost $5,558,000).............. $ 5,558 5,558,000 --------------- TOTAL INVESTMENTS (cost $40,730,992*)............ 40,734,069 --------------- COMMON STOCK-SHORT POSITIONS -- (5.5%) DISTRIBUTION -- (2.8%) Cardinal Health, Inc............. (20,000) (1,105,600) --------------- HEALTH SERVICES -- (1.3%) Vistacare, Inc.+................. (25,000) (506,250) --------------- PHARMACEUTICALS -- (1.4%) Pharmaceutical Product Development, Inc.+............. (20,000) (523,400) --------------- TOTAL COMMON STOCK-SHORT POSITIONS -- (5.5%) (proceeds $2,081,847)............ (2,135,250) --------------- Other assets less liabilities...... 1.1 418,391 --------------- NET ASSETS --...................... 100.0% $ 39,017,210 ===============
------------ * See Note 7 + Non-income producing securities (1) The security or a portion thereof represents collateral for securities sold short.
See Notes to Financial Statements 14 SUNAMERICA TAX MANAGED EQUITY FUND PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED)
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) COMMON STOCK -- 98.8% AEROSPACE & MILITARY TECHNOLOGY -- 0.6% United Technologies Corp......... 6,000 $ 370,860 --------------- APPAREL & TEXTILES -- 0.7% Jones Apparel Group, Inc.+....... 15,000 427,800 --------------- BANKS -- 5.2% Bank One Corp.................... 25,500 919,275 Mellon Financial Corp............ 12,000 317,400 U.S. Bancorp..................... 59,831 1,325,257 Wachovia Corp.................... 13,400 512,014 --------------- 3,073,946 --------------- BROADCASTING & MEDIA -- 3.7% News Corp., Ltd. ADR............. 14,600 412,888 Tribune Co....................... 19,000 930,620 Viacom, Inc., Class B+........... 19,000 824,790 --------------- 2,168,298 --------------- BUSINESS SERVICES -- 0.7% Accenture, Ltd., Class A+........ 26,000 416,520 --------------- CHEMICALS -- 0.8% Air Products and Chemicals, Inc............................ 10,500 452,235 --------------- COMPUTER SOFTWARE -- 4.9% First Data Corp.................. 5,000 196,150 Microsoft Corp................... 93,200 2,383,124 Oracle Corp.+.................... 30,000 356,400 --------------- 2,935,674 --------------- COMPUTERS & BUSINESS EQUIPMENT -- 5.7% Dell Computer Corp.+............. 19,000 549,290 Hewlett-Packard Co............... 10,000 163,000 Intel Corp....................... 54,700 1,006,480 International Business Machines Corp.................. 19,800 1,681,020 --------------- 3,399,790 --------------- CONGLOMERATE -- 5.0% General Electric Co.............. 77,800 2,291,210 Tyco International, Ltd.......... 43,500 678,600 --------------- 2,969,810 --------------- VALUE SECURITY DESCRIPTION SHARES (NOTE 3) ELECTRONICS -- 2.9% Altera Corp.+.................... 18,000 $ 284,580 Applied Materials, Inc.+......... 14,000 204,400 Johnson Controls, Inc............ 12,300 1,011,552 Linear Technology Corp........... 7,000 241,290 --------------- 1,741,822 --------------- ENERGY SERVICES -- 1.2% Baker Hughes, Inc................ 25,000 700,000 --------------- ENERGY SOURCES -- 6.5% ChevronTexaco Corp............... 21,000 1,319,010 Exxon Mobil Corp................. 71,620 2,521,024 --------------- 3,840,034 --------------- FINANCIAL SERVICES -- 10.0% Capital One Financial Corp....... 10,000 418,700 Charles Schwab & Co., Inc........ 17,000 146,710 CIT Group, Inc.+................. 8,000 162,960 Citigroup, Inc................... 57,333 2,250,320 Fannie Mae....................... 19,000 1,375,410 Goldman Sachs Group, Inc......... 13,002 986,852 Washington Mutual, Inc........... 15,350 606,325 --------------- 5,947,277 --------------- FOOD, BEVERAGE & TOBACCO -- 3.9% Altria Group, Inc................ 18,800 578,288 Coca-Cola Co..................... 31,400 1,268,560 PepsiCo, Inc..................... 10,300 445,784 --------------- 2,292,632 --------------- FOREST PRODUCTS -- 1.3% Temple-Inland, Inc............... 17,400 788,220 --------------- HOUSEHOLD PRODUCTS -- 4.6% Colgate-Palmolive Co............. 5,000 285,850 Gillette Co...................... 30,200 919,590 Procter & Gamble Co.............. 17,300 1,554,405 --------------- 2,759,845 ---------------
15 SUNAMERICA TAX MANAGED EQUITY FUND PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) COMMON STOCK -- (CONTINUED) INSURANCE -- 5.3% Allstate Corp.................... 25,000 $ 944,750 Ambac Financial Group, Inc....... 21,400 1,248,690 American International Group, Inc.#.......................... 11,580 671,061 Travelers Property Casualty Corp., Class A+................ 17,211 279,335 --------------- 3,143,836 --------------- MACHINERY -- 2.5% Danaher Corp..................... 11,000 758,780 Deere & Co....................... 16,400 722,092 --------------- 1,480,872 --------------- MEDICAL PRODUCTS -- 4.0% Becton, Dickinson and Co......... 14,000 495,600 Guidant Corp.+................... 15,000 584,850 Johnson & Johnson................ 23,444 1,321,304 --------------- 2,401,754 --------------- METALS & MINING -- 1.0% Alcoa, Inc....................... 24,928 571,599 --------------- PHARMACEUTICALS -- 9.8% Amgen, Inc.+..................... 13,000 797,030 Bristol-Myers Squibb Co.......... 19,100 487,814 Eli Lilly and Co................. 19,400 1,238,108 Pfizer, Inc...................... 67,805 2,085,004 Schering-Plough Corp............. 18,700 338,470 Wyeth............................ 20,000 870,600 --------------- 5,817,026 --------------- RETAIL STORES -- 7.3% Home Depot, Inc.................. 28,550 803,111 Target Corp...................... 25,700 859,408 TJX Cos, Inc..................... 40,500 779,625 Wal-Mart Stores, Inc............. 33,800 1,903,616 --------------- 4,345,760 --------------- SHARES/ PRINCIPAL AMOUNT VALUE SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 3) TELECOMMUNICATIONS -- 7.1% Cisco Systems, Inc.+............. 70,400 $ 1,058,816 Comcast Corp., Class A+.......... 31,700 952,902 QUALCOMM, Inc.................... 8,000 255,120 SBC Communications, Inc.......... 30,900 721,824 Verizon Communications, Inc...... 33,230 1,242,137 --------------- 4,230,799 --------------- TRANSPORTATION -- 1.7% Union Pacific Corp............... 16,500 982,080 --------------- UTILITIES -- 2.4% DTE Energy Co.................... 18,000 725,760 Pinnacle West Capital Corp....... 21,000 697,620 --------------- 1,423,380 --------------- TOTAL INVESTMENT SECURITIES (cost $71,913,168)............... 58,681,869 --------------- SHORT-TERM INVESTMENTS -- 1.4% Time Deposit with State Street Bank & Trust Co. 0.10% due 5/01/03 (cost $875,000)........ $ 875 875,000 --------------- TOTAL INVESTMENTS -- (cost $72,788,168*).............. 100.2% 59,556,869 Liabilities in excess of other assets........................... (0.2) (147,055) ------------ --------------- NET ASSETS --...................... 100.0% $ 59,409,814 ============ ===============
------------ * See Note 7 + Non-income producing securities # Security represents an investment in an affiliated company. See Note 6 ADR American Depository Receipt
See Notes to Financial Statements 16 SUNAMERICA STOCK INDEX FUND PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED)
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) COMMON STOCK -- 95.0% AEROSPACE & MILITARY TECHNOLOGY -- 1.6% Boeing Co............................. 2,930 $ 79,930 General Dynamics Corp................. 700 43,449 Goodrich Corp......................... 410 5,769 Honeywell International, Inc.......... 2,980 70,328 Lockheed Martin Corp.................. 1,590 79,580 Northrop Grumman Corp................. 640 56,288 Raytheon Co........................... 1,420 42,501 Rockwell Collins, Inc................. 630 13,469 United Technologies Corp.............. 1,640 101,368 ------------- 492,682 ------------- APPAREL & TEXTILES -- 0.4% Cintas Corp........................... 590 21,181 Jones Apparel Group, Inc.+............ 450 12,834 Liz Claiborne, Inc.................... 370 12,036 Nike, Inc., Class B................... 920 49,248 Reebok International, Ltd.+........... 210 6,523 V.F. Corp............................. 380 14,949 ------------- 116,771 ------------- AUTOMOTIVE -- 0.8% AutoNation, Inc.+..................... 1,010 13,989 AutoZone, Inc.+....................... 340 27,475 Cooper Tire & Rubber Co............... 260 3,661 Dana Corp............................. 520 4,831 Delphi Corp........................... 1,950 16,380 Ford Motor Co......................... 6,400 65,920 General Motors Corp................... 1,950 70,297 Goodyear Tire & Rubber Co............. 610 3,489 Harley Davidson, Inc.................. 1,060 47,106 Snap-on, Inc.......................... 200 5,870 Visteon Corp.......................... 450 3,155 ------------- 262,173 ------------- BANKS -- 5.5% AmSouth Bancorp....................... 1,240 26,102 Bank of America Corp.................. 5,240 388,022 Bank of New York Co., Inc............. 2,670 70,621 Bank One Corp......................... 4,060 146,363 BB&T Corp............................. 1,640 53,464 Charter One Financial, Inc............ 790 22,950 Comerica, Inc......................... 610 26,541 Fifth Third Bancorp................... 2,020 99,566 VALUE SECURITY DESCRIPTION SHARES (NOTE 3) BANKS -- (CONTINUED) First Tennessee National Corp......... 440 $ 19,272 FleetBoston Financial Corp............ 3,660 97,063 Huntington Bancshares, Inc............ 820 15,957 KeyCorp............................... 1,480 35,683 Marshall & Ilsley Corp................ 760 22,359 Mellon Financial Corp................. 1,500 39,675 National City Corp.................... 2,130 63,815 North Fork Bancorp., Inc.............. 560 18,122 Northern Trust Corp................... 770 27,027 PNC Financial Services Group, Inc.......................... 990 43,461 Regions Financial Corp................ 770 25,957 State Street Corp..................... 1,160 40,635 SunTrust Banks, Inc................... 990 56,648 Synovus Financial Corp................ 1,060 20,638 U.S. Bancorp.......................... 6,680 147,962 Union Planters Corp................... 690 19,693 Wachovia Corp......................... 4,740 181,115 Zions Bancorp......................... 320 15,766 ------------- 1,724,477 ------------- BROADCASTING & MEDIA -- 3.2% AOL Time Warner, Inc.+................ 15,590 213,271 Clear Channel Communications, Inc.+... 2,140 83,695 Dow Jones & Co., Inc.................. 290 11,484 Gannett Co., Inc...................... 930 70,420 Interpublic Group of Cos., Inc........ 1,350 15,390 Knight Ridder, Inc.................... 290 18,720 McGraw Hill Cos., Inc................. 680 39,705 Meredith Corp......................... 170 7,347 New York Times Co., Class A........... 530 24,581 Omnicom Group, Inc.................... 660 40,854 Scientific Atlanta, Inc............... 530 8,613 Tribune Co............................ 1,060 51,919 Univision Communications, Inc., Class A+.................................. 800 24,224 Viacom, Inc., Class B+................ 6,140 266,538 Walt Disney Co........................ 7,120 132,859 ------------- 1,009,620 ------------- BUSINESS SERVICES -- 1.1% Allied Waste Industries, Inc.+........ 730 6,059 Avery Dennison Corp................... 380 20,144 Ball Corp............................. 200 11,232
17 SUNAMERICA STOCK INDEX FUND PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) COMMON STOCK -- (CONTINUED) BUSINESS SERVICES -- (CONTINUED) Bemis Co., Inc........................ 190 $ 8,675 Cendant Corp.+........................ 3,590 51,265 Convergys Corp.+...................... 610 9,894 Equifax, Inc.......................... 500 11,595 Fluor Corp............................ 280 9,680 Genuine Parts Co...................... 610 19,502 McDermott International, Inc.+........ 220 715 Pactiv Corp.+......................... 550 11,286 Paychex, Inc.......................... 1,310 40,793 Pitney Bowes, Inc..................... 830 29,141 Robert Half International, Inc.+...... 600 9,768 RR Donnelley & Sons Co................ 400 8,064 Sealed Air Corp.+..................... 290 12,426 W.W. Grainger, Inc.................... 320 14,768 Waste Management, Inc................. 2,080 45,178 Waters Corp.+......................... 450 10,805 ------------- 330,990 ------------- CHEMICALS -- 1.5% Air Products and Chemicals, Inc....... 790 34,025 Ashland, Inc.......................... 240 7,116 Dow Chemical Co....................... 3,180 103,795 du Pont de (E.I.) Nemours & Co........ 3,470 147,579 Eastman Chemical Co................... 270 8,243 Ecolab, Inc........................... 450 22,990 Engelhard Corp........................ 450 11,048 Great Lakes Chemical Corp............. 180 4,421 Hercules, Inc.+....................... 380 3,857 Monsanto Co........................... 910 15,834 PPG Industries, Inc................... 590 28,621 Praxair, Inc.......................... 560 32,525 Rohm and Haas Co...................... 770 25,495 Sigma-Aldrich Corp.................... 250 12,455 Vulcan Materials Co................... 350 12,240 ------------- 470,244 ------------- COMMUNICATION EQUIPMENT -- 0.3% LSI Logic Corp.+...................... 1,300 6,968 Lucent Technologies, Inc.+............ 13,640 24,552 Motorola, Inc......................... 8,020 63,438 Tellabs, Inc.+........................ 1,440 8,899 ------------- 103,857 ------------- VALUE SECURITY DESCRIPTION SHARES (NOTE 3) COMPUTER SOFTWARE -- 5.4% Adobe Systems, Inc.................... 810 $ 27,994 Autodesk, Inc......................... 400 6,224 Automatic Data Processing, Inc........ 2,090 70,287 BMC Software, Inc.+................... 810 12,085 Citrix Systems, Inc.+................. 600 11,376 Computer Associates International, Inc.................. 2,000 32,480 Computer Sciences Corp.+.............. 650 21,417 Compuware Corp.+...................... 1,320 5,795 Electronic Data Systems Corp.......... 1,660 30,129 First Data Corp....................... 2,620 102,783 Fiserv, Inc.+......................... 670 19,725 Intuit, Inc.+......................... 720 27,922 Mercury Interactive Corp.+............ 300 10,182 Microsoft Corp.@...................... 37,320 954,272 NCR Corp.+............................ 340 7,453 Novell, Inc.+......................... 1,280 3,520 Nvidia Corp.+......................... 550 7,848 Oracle Corp.+......................... 18,380 218,354 Parametric Technology Corp.+.......... 920 3,036 PeopleSoft, Inc.+..................... 1,090 16,383 Siebel Systems, Inc.+................. 1,690 14,652 SunGard Data Systems, Inc.+........... 990 21,285 Unisys Corp.+......................... 1,140 11,856 VERITAS Software Corp.+............... 1,440 31,694 ------------- 1,668,752 ------------- COMPUTERS & BUSINESS EQUIPMENT -- 5.0% Apple Computer, Inc.+................. 1,260 17,892 Dell Computer Corp.+.................. 9,000 260,190 EMC Corp.+............................ 7,670 69,720 Gateway, Inc.+........................ 1,130 3,254 Hewlett-Packard Co.................... 10,650 173,595 Intel Corp............................ 23,100 425,040 International Business Machines Corp....................... 5,890 500,061 Lexmark International Group, Inc.+........................ 440 32,785 Network Appliance, Inc.+.............. 1,180 15,670 Sun Microsystems, Inc.+............... 11,140 36,762 Xerox Corp.+.......................... 2,560 25,242 ------------- 1,560,211 -------------
18 SUNAMERICA STOCK INDEX FUND PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) COMMON STOCK -- (CONTINUED) CONGLOMERATE -- 4.6% 3M Co................................. 1,360 $ 171,415 General Electric Co................... 34,700 1,021,915 ITT Industries, Inc................... 320 18,656 Schlumberger Ltd...................... 2,030 85,118 Textron, Inc.......................... 470 13,860 Tyco International, Ltd............... 6,960 108,576 ------------- 1,419,540 ------------- EDUCATION -- 0.1% Apollo Group, Inc., Class A+.......... 610 33,061 ------------- ELECTRONICS -- 2.4% Advanced Micro Devices, Inc.+......... 1,200 8,928 Agilent Technologies, Inc.+........... 1,630 26,113 Altera Corp.+......................... 1,330 21,027 American Power Conversion Corp.+................... 680 10,594 Analog Devices, Inc.+................. 1,270 42,062 Applera Corp. -- Applied Biosystems Group............................... 730 12,797 Applied Materials, Inc.+.............. 5,760 84,096 Applied Micro Circuits Corp.+......... 1,060 4,749 Broadcom Corp., Class A+.............. 960 17,174 Emerson Electric Co................... 1,470 74,529 Jabil Circuit, Inc.+.................. 690 12,903 Johnson Controls, Inc................. 310 25,494 KLA-Tencor Corp.+..................... 660 27,060 Linear Technology Corp................ 1,090 37,572 Maxim Integrated Products, Inc.+...... 1,130 44,398 Micron Technology, Inc.+.............. 2,120 18,020 Millipore Corp.+...................... 170 5,805 Molex, Inc............................ 670 15,638 National Semiconductor Corp.+......... 630 11,800 Novellus Systems, Inc.+............... 520 14,581 PMC-Sierra, Inc.+..................... 580 4,785 Power-One, Inc.+...................... 280 1,638 QLogic Corp.+......................... 330 14,517 Rockwell Automation, Inc.............. 650 14,820 Sanmina-SCI Corp.+.................... 1,780 8,544 Solectron Corp.+...................... 2,880 9,187 Symbol Technologies, Inc.............. 800 8,744 Tektronix Inc.+....................... 300 5,631 Teradyne, Inc.+....................... 640 7,424 Texas Instruments, Inc................ 6,040 111,680 Thomas & Betts Corp.+................. 200 3,162 Xilinx, Inc.+......................... 1,180 31,943 ------------- 737,415 ------------- VALUE SECURITY DESCRIPTION SHARES (NOTE 3) ENERGY SERVICES -- 0.6% Baker Hughes, Inc..................... 1,180 $ 33,040 BJ Services Co.+...................... 550 20,081 Devon Energy Corp..................... 800 37,800 Dynegy, Inc., Class A................. 1,300 5,720 Halliburton Co........................ 1,520 32,543 Nabors Industries, Ltd.+.............. 510 19,992 Rowan Cos., Inc....................... 330 6,765 Transocean Sedco Forex, Inc.+......... 1,110 21,145 ------------- 177,086 ------------- ENERGY SOURCES -- 4.9% Amerada Hess Corp..................... 310 13,997 Anadarko Petroleum Corp............... 870 38,628 Apache Corp........................... 560 32,060 Burlington Resources, Inc............. 700 32,417 ChevronTexaco Corp.................... 3,730 234,281 ConocoPhillips........................ 2,360 118,708 El Paso Corp.......................... 2,090 15,675 EOG Resources, Inc.................... 400 14,952 Exxon Mobil Corp...................... 23,470 826,144 Kerr-Mcgee Corp....................... 350 14,738 Keyspan Corp.......................... 550 18,628 Kinder Morgan, Inc.................... 430 20,219 Marathon Oil Corp..................... 1,090 24,819 Nicor, Inc............................ 150 4,509 NiSource, Inc......................... 870 16,443 Noble Corp.+.......................... 470 14,547 Occidental Petroleum Corp............. 1,320 39,402 Peoples Energy Corp................... 120 4,662 Sempra Energy......................... 720 19,325 Sunoco, Inc........................... 270 10,047 Unocal Corp........................... 900 24,930 ------------- 1,539,131 ------------- ENTERTAINMENT PRODUCTS -- 0.3% Brunswick Corp........................ 310 6,768 Eastman Kodak Co...................... 1,020 30,508 Electronic Arts, Inc.+................ 500 29,635 Hasbro, Inc........................... 600 9,600 Mattel, Inc........................... 1,530 33,262 ------------- 109,773 ------------- FINANCIAL SERVICES -- 9.2% American Express Co................... 4,580 173,399 Bear Stearns Cos., Inc................ 350 23,394
19 SUNAMERICA STOCK INDEX FUND PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) COMMON STOCK -- (CONTINUED) FINANCIAL SERVICES -- (CONTINUED) Capital One Financial Corp............ 770 $ 32,240 Charles Schwab & Co., Inc............. 4,690 40,475 Citigroup, Inc........................ 17,930 703,752 Concord EFS, Inc.+.................... 1,770 24,479 Countrywide Credit Industries, Inc..................... 440 29,744 Deluxe Corp........................... 200 8,802 Fannie Mae............................ 3,470 251,193 Federated Investors, Inc., Class B.... 380 10,370 Franklin Resources, Inc............... 900 31,392 Freddie Mac........................... 2,430 140,697 Golden West Financial Corp............ 540 40,727 Goldman Sachs Group, Inc.............. 1,650 125,235 H & R Block, Inc...................... 620 23,944 J.P. Morgan Chase & Co................ 6,960 204,276 Janus Capital Group, Inc.............. 780 10,842 Lehman Brothers Holdings, Inc......... 850 53,524 MBNA Corp............................. 4,460 84,294 Merrill Lynch & Co., Inc.............. 3,020 123,971 Moodys Corp........................... 530 25,594 Morgan Stanley........................ 3,780 169,155 Providian Financial Corp.+............ 1,010 7,444 SLM Corp.............................. 540 60,480 South Trust Corp...................... 1,210 32,502 T. Rowe Price Group, Inc.............. 430 13,124 Washington Mutual, Inc................ 3,300 130,350 Wells Fargo & Co...................... 5,900 284,734 ------------- 2,860,133 ------------- FOOD, BEVERAGE & TOBACCO -- 4.7% Adolph Coors Co., Class B............. 130 6,959 Altria Group, Inc..................... 7,210 221,780 Anheuser-Busch Cos., Inc.............. 2,990 149,141 Archer-Daniels-Midland Co............. 2,250 24,930 Brown-Forman Corp., Class B........... 210 16,073 Campbell Soup Co...................... 1,430 31,503 Coca-Cola Co.......................... 8,650 349,460 Coca-Cola Enterprises, Inc............ 1,570 30,599 ConAgra Foods, Inc.................... 1,870 39,270 General Mills, Inc.................... 1,290 58,192 H.J. Heinz & Co....................... 1,230 36,752 Hershey Foods Corp.................... 480 31,320 Kellogg Co............................ 1,420 46,491 VALUE SECURITY DESCRIPTION SHARES (NOTE 3) FOOD, BEVERAGE & TOBACCO -- (CONTINUED) McCormick & Co., Inc.................. 490 $ 12,147 Pepsi Bottling Group, Inc............. 980 20,129 PepsiCo, Inc.......................... 6,020 260,546 R.J. Reynolds Tobacco Holdings, Inc....................... 300 8,451 Sara Lee Corp......................... 2,730 45,809 UST, Inc.............................. 590 18,485 Wm. Wrigley Jr. Co.................... 790 44,801 ------------- 1,452,838 ------------- FOREST PRODUCTS -- 0.5% Boise Cascade Corp.................... 200 4,594 Georgia-Pacific Corp.................. 870 13,433 International Paper Co................ 1,670 59,702 Louisiana Pacific Corp.+.............. 370 2,990 MeadWestvaco Corp..................... 700 16,513 Plum Creek Timber Co., Inc............ 650 15,119 Temple-Inland, Inc.................... 190 8,607 Weyerhaeuser Co....................... 760 37,688 ------------- 158,646 ------------- HEALTH SERVICES -- 1.1% Aetna, Inc............................ 530 26,394 HCA, Inc.............................. 1,790 57,459 Health Management Associates, Inc., Class A+............................ 830 14,160 Humana, Inc.+......................... 570 6,298 Manor Care, Inc.+..................... 340 6,613 McKesson, Inc......................... 1,020 28,295 Quest Diagnostics, Inc.+.............. 370 22,107 Quintiles Transnational Corp.+........ 410 5,761 Tenet Healthcare Corp.+............... 1,650 24,486 UnitedHealth Group, Inc............... 1,060 97,658 Wellpoint Health Networks, Inc.,Class A+.................................. 520 39,489 ------------- 328,720 ------------- HOME BUILDING -- 0.1% Centex Corp........................... 220 14,524 KB HOME............................... 170 8,376 Pulte Homes, Inc...................... 210 12,178 ------------- 35,078 -------------
20 SUNAMERICA STOCK INDEX FUND PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) COMMON STOCK -- (CONTINUED) HOUSEHOLD PRODUCTS -- 2.8% Alberto-Culver Co., Class B........... 200 $ 9,856 Avon Products, Inc.................... 820 47,700 Clorox Co............................. 770 34,819 Colgate-Palmolive Co.................. 1,880 107,480 Gillette Co........................... 3,640 110,838 International Flavors & Fragrances, Inc..................... 330 10,487 Kimberly-Clark Corp................... 1,790 89,088 Leggett & Platt, Inc.................. 680 14,042 Newell Rubbermaid, Inc................ 930 28,346 Procter & Gamble Co................... 4,510 405,224 Tupperware Corp....................... 200 2,772 ------------- 860,652 ------------- INSURANCE -- 4.9% ACE, Ltd.............................. 920 30,434 AFLAC, Inc............................ 1,800 58,878 Allstate Corp......................... 2,450 92,585 Ambac Financial Group, Inc............ 370 21,589 American International Group, Inc.#........................ 9,100 527,345 Anthem, Inc.+......................... 490 33,634 Aon Corp.............................. 1,080 23,933 Chubb Corp............................ 600 31,734 CIGNA Corp............................ 490 25,627 Cincinnati Financial Corp............. 560 20,636 Hartford Financial Services Group, Inc.......................... 890 36,276 Jefferson Pilot Corp.................. 500 20,045 John Hancock Financial Services, Inc....................... 1,010 29,310 Lincoln National Corp................. 620 19,815 Loews Corp............................ 650 26,825 Marsh & McLennan Cos., Inc............ 1,870 89,162 MBIA, Inc............................. 510 22,797 MetLife, Inc.......................... 2,440 70,101 MGIC Investment Corp.................. 350 15,911 Principal Financial Group, Inc.+...... 1,120 32,592 Progressive Corp...................... 760 51,680 Prudential Financial, Inc.+........... 1,970 62,981 SAFECO Corp........................... 480 18,485 St. Paul Cos., Inc.................... 790 27,129 Torchmark Corp........................ 410 15,888 VALUE SECURITY DESCRIPTION SHARES (NOTE 3) INSURANCE -- (CONTINUED) Travelers Property Casualty Corp., Class B+............................ 3,510 $ 57,037 UnumProvident Corp.................... 840 9,660 XL Capital, Ltd., Class A............. 470 38,681 ------------- 1,510,770 ------------- INTERNET CONTENT -- 0.5% eBay, Inc.+........................... 1,080 100,191 Sabre Holdings Corp.+................. 500 10,455 Yahoo!, Inc.+......................... 2,060 51,047 ------------- 161,693 ------------- INTERNET SOFTWARE -- 0.1% Symantec Corp.+....................... 520 22,854 TMP Worldwide, Inc.+.................. 390 6,540 ------------- 29,394 ------------- LEISURE & TOURISM -- 0.7% Carnival Corp......................... 2,190 60,422 Delta Air Lines, Inc.................. 430 5,500 Harrah's Entertainment, Inc.+......... 390 15,362 Hilton Hotels Corp.................... 1,310 17,449 International Game Technology+........ 300 25,890 Marriott International, Inc., Class A............................. 820 29,446 Southwest Airlines Co................. 2,700 43,092 Starwood Hotels & Resorts Worldwide, Inc................................. 700 18,788 ------------- 215,949 ------------- MACHINERY -- 1.1% Caterpillar, Inc...................... 1,200 63,120 Cooper Industries, Ltd., Class A...... 330 12,243 Crane Co.............................. 210 4,101 Cummins, Inc.......................... 150 4,067 Danaher Corp.......................... 530 36,559 Deere & Co............................ 830 36,545 Dover Corp............................ 710 20,405 Eaton Corp............................ 250 20,517 Illinois Tool Works, Inc.............. 1,070 68,459 Ingersoll-Rand Company, Ltd., Class A................................... 590 26,007 Navistar International Corp., Inc.+... 240 6,696 PACCAR, Inc........................... 400 23,364 Pall Corp............................. 430 9,082
21 SUNAMERICA STOCK INDEX FUND PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) COMMON STOCK -- (CONTINUED) MACHINERY -- (CONTINUED) Parker-Hannifin Corp.................. 410 $ 16,679 Thermo Electron Corp.+................ 570 10,357 ------------- 358,201 ------------- MEDICAL PRODUCTS -- 4.0% Bausch & Lomb, Inc.................... 190 6,680 Baxter International, Inc............. 2,070 47,610 Becton, Dickinson and Co.............. 890 31,506 Biomet, Inc........................... 900 27,414 Boston Scientific Corp.+.............. 1,420 61,131 C.R. Bard, Inc........................ 180 11,408 Chiron Corp.+......................... 650 26,540 Genzyme Corp.+........................ 750 30,210 Guidant Corp.+........................ 1,070 41,719 IMS Health, Inc....................... 850 13,090 Johnson & Johnson..................... 10,360 583,890 MedImmune, Inc.+...................... 880 31,038 Medtronic, Inc........................ 4,250 202,895 PerkinElmer, Inc...................... 440 4,365 St. Jude Medical, Inc.+............... 620 32,525 Stryker Corp.......................... 690 46,237 Zimmer Holdings, Inc.+................ 680 31,892 ------------- 1,230,150 ------------- METALS & MINING -- 0.5% Alcoa, Inc............................ 2,950 67,643 Allegheny Technologies, Inc........... 280 1,162 Freeport-McMoRan Copper & Gold, Inc., Class B+............................ 510 8,828 Newmont Mining Corp................... 1,400 37,828 Nucor Corp............................ 270 11,030 Phelps Dodge Corp.+................... 310 9,669 United States Steel Corp.............. 360 5,155 Worthington Industries, Inc........... 300 4,029 ------------- 145,344 ------------- PHARMACEUTICALS -- 8.9% Abbott Laboratories................... 5,450 221,434 Allergan, Inc......................... 450 31,613 AmerisourceBergen Corp................ 380 21,983 Amgen, Inc.+.......................... 4,490 275,282 Biogen, Inc.+......................... 520 19,755 Bristol-Myers Squibb Co............... 6,760 172,650 Cardinal Health, Inc.................. 1,580 87,342 VALUE SECURITY DESCRIPTION SHARES (NOTE 3) PHARMACEUTICALS -- (CONTINUED) Eli Lilly and Co...................... 3,920 $ 250,174 Forest Laboratories, Inc.+............ 1,270 65,684 King Pharmaceuticals, Inc.+........... 840 10,592 Merck & Co., Inc...................... 7,830 455,550 Pfizer, Inc........................... 27,804 854,973 Schering-Plough Corp.................. 5,120 92,672 Watson Pharmaceuticals, Inc.+......... 370 10,756 Wyeth................................. 4,620 201,109 ------------- 2,771,569 ------------- REAL ESTATE INVESTMENT TRUSTS -- 0.3% Apartment Investment & Management Co.................................. 330 12,461 Equity Office Properties Trust........ 1,440 37,397 Equity Residential.................... 950 24,614 Simon Property Group , Inc............ 640 23,501 ------------- 97,973 ------------- RESTAURANTS -- 0.5% Darden Restaurants, Inc............... 600 10,506 McDonald's Corp....................... 4,430 75,753 Starbucks Corp.+...................... 1,350 31,712 Wendys International, Inc............. 400 11,616 Yum! Brands, Inc.+.................... 1,030 25,441 ------------- 155,028 ------------- RETAIL STORES -- 7.4% Albertson's, Inc...................... 1,320 26,215 American Greetings Corp., Class A+.... 230 3,349 American Standard Cos., Inc.+......... 250 17,798 Bed Bath & Beyond, Inc.+.............. 1,030 40,695 Best Buy Co., Inc.+................... 1,120 38,730 Big Lots, Inc.+....................... 410 5,133 Black & Decker Corp................... 270 11,138 Circuit City Stores-Circuit City Group............................... 730 4,183 Costco Wholesale Corp.+............... 1,590 55,062 CVS Corp.............................. 1,370 33,168 Dillards, Inc., Class A............... 300 4,194 Dollar General Corp................... 1,160 16,866 Family Dollar Stores, Inc............. 600 20,514 Federated Department Stores, Inc.+.... 660 20,209 Fortune Brands, Inc................... 520 25,168
22 SUNAMERICA STOCK INDEX FUND PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) COMMON STOCK -- (CONTINUED) RETAIL STORES -- (CONTINUED) Gap, Inc.............................. 3,080 $ 51,220 Home Depot, Inc....................... 8,110 228,134 J.C. Penney Co., Inc. (Holding Co.)... 940 16,036 Kohl's Corp.+......................... 1,180 67,024 Kroger Co.+........................... 2,660 38,038 Limited, Inc.......................... 1,820 26,463 Lowe's Cos., Inc...................... 2,720 119,381 Masco Corp............................ 1,720 36,240 May Department Stores Co.............. 1,010 21,836 Maytag Corp........................... 270 5,627 Nordstrom, Inc........................ 470 8,145 Office Depot, Inc.+................... 1,080 13,673 RadioShack Corp....................... 590 13,989 Safeway, Inc.+........................ 1,540 25,595 Sears, Roebuck & Co................... 1,100 31,174 Sherwin-Williams Co................... 520 14,498 Stanley Works......................... 310 7,449 Staples, Inc.+........................ 1,650 31,416 SUPERVALU, Inc........................ 470 7,741 Sysco Corp............................ 2,280 65,504 Target Corp........................... 3,170 106,005 Tiffany & Co.......................... 510 14,147 TJX Cos, Inc.......................... 1,830 35,227 Toys "R" Us, Inc.+.................... 740 7,585 Wal-Mart Stores, Inc.................. 15,390 866,765 Walgreen Co........................... 3,570 110,170 Whirlpool Corp........................ 240 12,838 Winn-Dixie Stores, Inc................ 490 6,140 ------------- 2,310,482 ------------- TELECOMMUNICATIONS -- 5.4% ADC Telecommunications, Inc.+......... 2,800 6,686 Alltel Corp........................... 1,090 51,077 Andrew Corp.+......................... 340 2,608 AT&T Wireless Services, Inc.+......... 9,450 61,047 Avaya, Inc.+.......................... 1,300 5,070 CenturyTel, Inc....................... 500 14,725 CIENA Corp.+.......................... 1,510 7,354 Cisco Systems, Inc.+.................. 24,800 372,992 Citizens Communications Co.+.......... 980 10,711 Comcast Corp., Class A+............... 8,050 256,876 Comverse Technology, Inc.+............ 660 8,626 Corning, Inc.+........................ 4,180 22,656 VALUE SECURITY DESCRIPTION SHARES (NOTE 3) TELECOMMUNICATIONS -- (CONTINUED) JDS Uniphase Corp.+................... 4,940 $ 15,956 Nextel Communications, Inc., Class A+.................................. 3,580 52,948 QUALCOMM, Inc......................... 2,750 87,698 Qwest Communications International, Inc.+............................... 5,910 22,281 SBC Communications, Inc............... 11,580 270,509 Sprint Corp. (FON Group).............. 3,120 35,911 Sprint Corp. (PCS Group )+............ 3,480 12,180 Verizon Communications, Inc........... 9,540 356,605 ------------- 1,674,516 ------------- TRANSPORTATION -- 1.5% Burlington Northern Santa Fe Corp..... 1,310 36,889 CSX Corp.............................. 750 23,985 FedEx Corp............................ 1,040 62,275 Norfolk Southern Corp................. 1,360 28,846 Ryder System, Inc..................... 220 5,465 Union Pacific Corp.................... 890 52,973 United Parcel Service, Inc., Class B............................. 3,920 243,510 ------------- 453,943 ------------- UTILITIES -- 3.1% AES Corp.+............................ 1,900 11,419 Allegheny Energy, Inc................. 440 3,652 Ameren Corp........................... 560 22,949 American Electric Power Co., Inc...... 1,360 35,877 AT&T Corp............................. 2,690 45,864 BellSouth Corp........................ 6,490 165,430 Calpine Corp.+........................ 1,320 7,088 CenterPoint Energy, Inc............... 1,060 8,374 Cinergy Corp.......................... 590 20,143 CMS Energy Corp....................... 500 3,115 Consolidated Edison, Inc.............. 750 29,152 Constellation Energy Group, Inc....... 570 16,690 Dominion Resources, Inc............... 1,070 63,322 DTE Energy Co......................... 580 23,386 Duke Energy Corp...................... 3,110 54,705 Edison International+................. 1,140 16,633 Entergy Corp.......................... 770 35,890 Exelon Corp........................... 1,130 59,935 FirstEnergy Corp...................... 1,040 35,079 FPL Group, Inc........................ 640 38,957
23 SUNAMERICA STOCK INDEX FUND PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
SHARES/ PRINCIPAL AMOUNT VALUE SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 3) COMMON STOCK -- (CONTINUED) UTILITIES -- (CONTINUED) Mirant Corp.+......................... 1,410 $ 4,667 PG&E Corp.+........................... 1,420 21,272 Pinnacle West Capital Corp............ 320 10,630 PPL Corp.............................. 570 20,634 Progress Energy, Inc.................. 830 34,677 Public Service Enterprise Group, Inc.......................... 780 30,007 Southern Co........................... 2,490 72,434 TECO Energy, Inc...................... 610 6,582 TXU Corp.............................. 1,120 22,310 Williams Cos., Inc.................... 1,800 12,510 Xcel Energy, Inc...................... 1,390 18,793 ------------- 952,176 ------------- TOTAL INVESTMENT SECURITIES (cost $39,527,735).................... 29,519,038 ------------- SHORT-TERM INVESTMENTS -- 0.4% United States Treasury Bills 1.09% due 6/19/03@............................ $ 10 $ 9,985 United States Treasury Bills 1.11% due 5/22/93@............................ 10 9,994 United States Treasury Bills 1.12% due 5/29/03@............................ 100 99,913 United States Treasury Bills 1.13% due 5/22/03@............................ 10 9,993 ------------- TOTAL SHORT-TERM INVESTMENTS (cost $129,885)....................... 129,885 -------------
PRINCIPAL AMOUNT VALUE SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 3) REPURCHASE AGREEMENT -- 4.5% Agreement with State Street Bank & Trust Co., bearing interest at 1.21%, dated 04/30/ 03, to be repurchased 05/01/03 in the amount of $1,389,047 and collateralized by $1,430,000 of Federal Home Loan Bank Note, bearing interest at 1.41%, due 03/08/04 and having an approximate value of $1,434,369 (cost $1,389,000)@.................. 1,389 1,389,000 --------------- TOTAL INVESTMENTS -- (cost $41,046,620*)................... 99.9% 31,037,923 Other assets less liabilities........... 0.1 27,128 -------------- --------------- NET ASSETS --........................... 100.0% $ 31,065,051 ============== ===============
------------ * See Note 7 + Non-income producing securities # Security represents an investment in an affiliated company. See Note 6 @ The security or a portion thereof represents collateral for open futures contracts.
OPEN FUTURES CONTRACTS ------------------------------------------------------------------------------------------------------------------- NUMBER OF VALUE AT VALUE AS OF UNREALIZED CONTRACT DESCRIPTION EXPIRATION DATE TRADE DATE APRIL 30, 2003 APPRECIATION ------------------------------------------------------------------------------------------------------------------- 34 Long S&P 500 Mini Index June 2003 $1,448,275 $1,557,370 $109,095 ========
See Notes to Financial Statements 24 SUNAMERICA SCIENCE & TECHNOLOGY FUND PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED)
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) COMMON STOCK -- 97.9% BROADCASTING & MEDIA -- 4.9% AOL Time Warner, Inc.+......... 15,100 $ 206,568 Clear Channel Communications, Inc.+........................ 1,300 50,843 Univision Communications, Inc., Class A+..................... 1,200 36,336 USA Networks, Inc.+............ 2,300 68,885 Viacom, Inc., Class B+......... 3,400 147,594 --------------- 510,226 --------------- BUSINESS SERVICES -- 2.0% Accenture, Ltd., Class A+...... 6,000 96,120 Paychex, Inc................... 3,500 108,990 --------------- 205,110 --------------- CHEMICALS -- 0.3% Cabot Microelectronics Corp.+.. 600 25,932 --------------- COMMUNICATION EQUIPMENT -- 0.7% Intersil Corp., Class A+....... 1,500 27,750 Marvell Technology Group, Ltd.+........................ 1,700 39,234 --------------- 66,984 --------------- COMPUTER SOFTWARE -- 32.1% Adobe Systems, Inc............. 6,300 217,728 Cadence Design Systems, Inc.+.. 6,400 73,152 Certegy, Inc.+................. 4,100 102,459 DST Systems, Inc.+............. 2,300 70,610 First Data Corp................ 9,750 382,493 Fiserv, Inc.+.................. 6,000 176,640 Informatica Corp.+............. 7,800 50,934 Intuit, Inc.+.................. 6,000 232,680 Mercury Interactive Corp.+..... 6,700 227,398 Microsoft Corp................. 32,600 833,582 Oracle Corp.+.................. 7,000 83,160 PeopleSoft, Inc.+.............. 8,000 120,240 SAP AG......................... 700 71,849 Siebel Systems, Inc.+.......... 18,200 157,794 SunGard Data Systems, Inc.+.... 3,600 77,400 Synopsys, Inc.+................ 2,900 141,056 VERITAS Software Corp.+........ 14,500 319,145 --------------- 3,338,320 --------------- VALUE SECURITY DESCRIPTION SHARES (NOTE 3) COMPUTERS & BUSINESS EQUIPMENT -- 10.1% Brocade Communications Systems, Inc.+........................ 7,200 $ 41,544 Dell Computer Corp.+........... 17,400 503,034 EMC Corp.+..................... 2,900 26,361 Intel Corp..................... 5,800 106,720 International Business Machines Corp................ 2,000 169,800 Lexmark International Group, Inc.+........................ 1,300 96,863 Network Appliance, Inc.+....... 4,300 57,104 Seagate Technology+............ 4,200 50,778 --------------- 1,052,204 --------------- ELECTRONICS -- 21.2% Agere Systems, Inc.+........... 12,000 21,480 Altera Corp.+.................. 2,900 45,849 Analog Devices, Inc.+.......... 8,600 284,832 Applied Materials, Inc.+....... 18,800 274,480 ASML Holding NV+............... 1,400 12,334 Celestica, Inc.+............... 3,000 34,680 Flextronics International, Ltd.+........................ 5,500 48,125 KLA-Tencor Corp.+.............. 4,300 176,300 Linear Technology Corp......... 2,400 82,728 Maxim Integrated Products, Inc.+........................ 7,200 282,888 Microchip Technology, Inc.+.... 6,300 130,977 Novellus Systems, Inc.+........ 4,900 137,396 QLogic Corp.+.................. 4,250 186,957 Samsung Electronics Co., Ltd... 550 138,066 Sanmina-SCI Corp.+............. 8,600 41,280 Taiwan Semiconductor Manufacturing Co., Ltd. ADR+......................... 11,700 97,929 Texas Instruments, Inc......... 8,100 149,769 Xilinx, Inc.+.................. 2,300 62,261 --------------- 2,208,331 --------------- ENTERTAINMENT PRODUCTS -- 1.3% Electronic Arts, Inc.+......... 2,300 136,321 --------------- FINANCIAL SERVICES -- 1.9% Concord EFS, Inc.+............. 14,500 200,535 ---------------
25 SUNAMERICA SCIENCE & TECHNOLOGY FUND PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) COMMON STOCK -- (CONTINUED) INTERNET CONTENT -- 1.0% Internet Security Systems, Inc.+............... 2,200 $ 28,864 Yahoo!, Inc.+.................. 2,900 71,862 --------------- 100,726 --------------- INTERNET SOFTWARE -- 3.0% Networks Associates, Inc.+..... 6,500 74,295 Symantec Corp.+................ 2,300 101,085 VeriSign, Inc.+................ 11,350 140,967 --------------- 316,347 --------------- MACHINERY -- 0.4% Cognex Corp.+.................. 2,000 43,780 --------------- MEDICAL PRODUCTS -- 0.3% MedImmune, Inc.+............... 900 31,743 --------------- PHARMACEUTICALS -- 2.4% Bristol-Myers Squibb Co........ 2,100 53,634 Cephalon, Inc.+................ 1,300 53,092 Eli Lilly and Co............... 450 28,719 Genentech, Inc.+............... 700 26,593 Pfizer, Inc.................... 1,500 46,125 Schering-Plough Corp........... 1,000 18,100 Wyeth.......................... 600 26,118 --------------- 252,381 --------------- REGISTERED INVESTMENT COMPANIES -- 5.6% T Rowe Price Resources Investor Fund......................... 586,872 586,872 --------------- SHARES/ PRINCIPAL AMOUNT VALUE SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 3) TELECOMMUNICATIONS -- 10.7% CIENA Corp.+................... 8,100 $ 39,447 Cisco Systems, Inc.+........... 37,100 557,984 Comcast Corp., Class A+........ 2,900 87,174 JDS Uniphase Corp.+............ 11,600 37,468 KT Corp. ADR................... 2,000 40,480 Nokia Corp. ADR................ 5,700 94,449 QUALCOMM, Inc.................. 4,300 137,127 Vodafone Group, PLC ADR........ 6,000 118,560 --------------- 1,112,689 --------------- TOTAL INVESTMENT SECURITIES (cost $11,386,611)............. 10,188,501 --------------- REPURCHASE AGREEMENT -- 2.4% Agreement with State Street Bank & Trust Co., bearing interest at 1.21%, dated 04/30/03, to be repurchased 05/01/03 in the amount of $245,008 and collateralized by $250,000 of Federal Home Loan Bank Note, bearing interest at 5.12%, due 09/15/ 03 and having an approximate value of $255,249 (cost $245,000).............. $ 245 245,000 --------------- TOTAL INVESTMENTS -- (cost $11,631,611*)............ 100.3% 10,433,501 Liabilities in excess of other assets......................... (0.3) (35,274) --------------- --------------- NET ASSETS --.................... 100.0% $10,398,227 =============== ===============
------------ * See Note 7 + Non-income producing securities ADR American Depository Receipt
See Notes to Financial Statements 26 SUNAMERICA AGGRESSIVE GROWTH LIFESTAGE FUND PORTFOLIIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED)
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) AFFILIATED INVESTMENT COMPANIES -- 99.8% INTERNATIONAL EQUITY SECURITIES -- 29.5% SunAmerica International Equity Fund Class I+ (cost $6,486,497)..... 791,096 $ 5,996,504 --------------- DOMESTIC EQUITY SECURITIES -- 64.1% SunAmerica Blue Chip Growth Fund Class I+....................... 354,078 4,316,214 SunAmerica Style Select Series Focused Multi-Cap Value Portfolio Class I........................ 340,241 4,916,479 SunAmerica Growth & Income Fund Class I+....................... 231,957 2,205,908 SunAmerica New Century Fund Class I+....................... 136,621 1,614,863 --------------- TOTAL DOMESTIC EQUITY SECURITIES (cost $14,352,581)............... 13,053,464 --------------- FIXED INCOME SECURITIES -- 6.2% SunAmerica Core Bond Fund Class I (cost $1,223,177)...... 120,464 1,252,827 --------------- TOTAL INVESTMENTS -- (cost $22,062,255*).............. 99.8% 20,302,795 Other assets less liabilities...... 0.2 45,620 ------- --------------- NET ASSETS --...................... 100.0% $ 20,348,415 ======= ===============
------------ * See Note 7 + Non-income producing securities
See Notes to Financial Statements 27 SUNAMERICA MODERATE GROWTH LIFESTAGE FUND PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED)
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) AFFILIATED INVESTMENT COMPANIES -- 99.6% INTERNATIONAL EQUITY SECURITIES -- 15.5% SunAmerica International Equity Fund Class I+ (cost $5,036,741)..... 632,236 $ 4,792,345 --------------- DOMESTIC EQUITY SECURITIES -- 59.7% SunAmerica Blue Chip Growth Fund Class I+....................... 452,916 5,521,045 SunAmerica Style Select Series Focused Multi-Cap Value Portfolio Class I........................ 441,349 6,377,486 SunAmerica Growth & Income Fund Class I+....................... 492,366 4,682,402 SunAmerica New Century Fund Class I+....................... 159,496 1,885,239 --------------- TOTAL DOMESTIC EQUITY SECURITIES (cost $19,544,138)............... 18,466,172 --------------- FIXED INCOME SECURITIES -- 24.4% SunAmerica Core Bond Fund Class I (cost $7,349,948)...... 724,922 7,539,193 --------------- TOTAL INVESTMENTS -- (cost $31,930,827*).............. 99.6% 30,797,710 Other assets less liabilities...... 0.4 118,872 ------- --------------- NET ASSETS --...................... 100.0% $ 30,916,582 ======= ===============
------------ * See Note 7 + Non-income producing securities
See Notes to Financial Statements 28 SUNAMERICA CONSERVATIVE GROWTH LIFESTAGE FUND PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED)
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) AFFILIATED INVESTMENT COMPANIES -- 99.9% INTERNATIONAL EQUITY SECURITIES -- 8.6% SunAmerica International Equity Fund Class I+ (cost $1,689,398).... 217,535 $ 1,648,912 --------------- DOMESTIC EQUITY SECURITIES -- 47.4% SunAmerica Blue Chip Growth Fund Class I+...................... 241,487 2,943,725 SunAmerica Style Select Series Focused Multi-Cap Value Portfolio Class I....................... 213,554 3,085,858 SunAmerica Growth & Income Fund Class I+...................... 275,287 2,617,981 SunAmerica New Century Fund Class I+...................... 34,299 405,417 --------------- TOTAL DOMESTIC EQUITY SECURITIES (cost $9,090,319)............... 9,052,981 --------------- FIXED INCOME SECURITIES -- 43.9% SunAmerica Core Bond Fund Class I (cost $8,143,849)..... 806,773 8,390,438 --------------- TOTAL INVESTMENTS -- (cost $18,923,566*)............. 99.9% 19,092,331 Other assets less liabilities..... 0.1 17,875 -------- --------------- NET ASSETS --..................... 100.0% $ 19,110,206 ======== ===============
------------ * See Note 7 + Non-income producing securities
See Notes to Financial Statements 29 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) NOTE 1. ORGANIZATION SunAmerica Strategic Investment Series, Inc. (the "Corporation") is an open-end investment company organized as a Maryland corporation on December 16, 1998. It currently consists of seven different investment funds (each, a "Fund" and collectively, the "Funds"). Each Fund is a separate series with a distinct investment objective and/or strategy. Each Fund is advised and/or managed by AIG SunAmerica Asset Management Corp. (the "Adviser" or "SAAMCo"), an indirect wholly-owned subsidiary of American International Group, Inc. ("AIG"). An investor may invest in one or more of the following Funds: SunAmerica Biotech/Health Fund ("Biotech/Health Fund") prior to April 16, 2002, this Fund's name was SunAmerica Biotech/Health 30 Fund, Tax Managed Equity Fund ("Tax Managed Equity Fund"), SunAmerica Stock Index Fund ("Stock Index Fund"), SunAmerica Science & Technology Fund ("Science & Technology Fund"), SunAmerica Aggressive Growth LifeStage Fund ("Aggressive Growth LifeStage Fund"), SunAmerica Moderate Growth LifeStage Fund ("Moderate Growth LifeStage Fund") and SunAmerica Conservative Growth LifeStage Fund ("Conservative Growth LifeStage Fund"). The investment objective for each of the Funds is as follows: BIOTECH/HEALTH FUND seeks long-term growth of capital through active trading of equity securities of companies principally engaged in biotechnology or healthcare, without regard to market capitalization. Under normal market conditions this Fund invests at least 80% of the Fund's net assets plus any borrowing for investment purposes, in such securities. TAX MANAGED EQUITY FUND seeks high total return by investing in securities of large and medium-sized companies while attempting to minimize capital gain distributions to shareholders. Under normal market conditions this Fund invests at least 80% of the Fund's net assets plus any borrowing for investment purposes, in such securities. STOCK INDEX FUND seeks returns that are similar to the total return of the S&P 500 Index by investing in equity securities of companies included in the S&P 500 Index. Under normal market conditions this Fund invests at least 80% of the Fund's net assets plus any borrowing for investment purposes, in such securities. SCIENCE & TECHNOLOGY FUND seeks long-term growth of capital through active trading of equity securities of companies expected to benefit from the development, advancement and application of science and technology, without regard to market capitalization. Under normal market conditions this Fund invests at least 80% of the Fund's net assets plus any borrowing for investment purposes, in such securities. AGGRESSIVE GROWTH LIFESTAGE FUND seeks growth of capital by allocating assets among a combination of SunAmerica Mutual Funds investing in equity and fixed income securities, with an emphasis on funds investing in equity securities. Under normal market conditions this Fund invests 45%-85% in domestic equity mutual funds, 10%-35% in foreign equity mutual funds and 10%-20% in bond funds. MODERATE GROWTH LIFESTAGE FUND seeks growth of capital and current income by allocating assets among a combination of SunAmerica Mutual Funds investing in equity and fixed income securities, with an 30 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED) emphasis on funds investing in equity securities. Under normal market conditions the Fund invests 30%-75% in domestic equity mutual funds, 7%-25% in foreign equity mutual funds and 15%-45% in bond funds. CONSERVATIVE GROWTH LIFESTAGE FUND seeks current income and growth of capital, with reduced volatility by allocating assets among a combination of SunAmerica Mutual Funds investing in equity and fixed income securities, with an emphasis on funds investing in fixed income securities. Under normal market conditions the Fund invests 20%-65% in domestic equity mutual funds, 5%-15% in foreign equity mutual funds and 25%-75% in bond funds. The LifeStage Funds invest in various SunAmerica mutual funds, some of which are not presented in this report. Additional information on the underlying Funds is available at our website, www.sunamericafunds.com. CLASSES OF SHARES: Each Fund currently 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 -- Offered at net asset value per share plus an initial sales charge. Any purchases of Class A shares in excess of $1,000,000 will be subject to a contingent deferred sales charge on redemptions made within two years of purchase. Class B shares -- Offered at net asset value per share without an initial sales charge, although a declining contingent deferred sales charge may be imposed on redemptions made within six years of purchase. Class B shares will convert automatically to Class A shares on the first business day of the month after eight years from the issuance of such shares and at such time will be subject to the lower distribution fee applicable to Class A shares. Class II shares -- Offered at net asset value per share plus an initial sales charge. Certain redemptions made within the first 18 months of the date of purchase are subject to a contingent deferred sales charge. Class I shares -- Offered at net asset value per share. This class is offered exclusively to participants in certain employee retirement plans and other programs. Each class of shares bears the same voting, dividend, liquidation and other rights and conditions and each makes distribution and account maintenance and service fee payments under the distribution plans pursuant to Rule 12b-1 under the Investment Company Act of 1940 (the "1940 Act"), except that Class B shares and Class II shares are subject to higher distribution fee rates. There are no distribution or service fee payments applicable to Class I. The LifeStage Funds only make distribution fee payments. INDEMNIFICATIONS: Under the Funds' organizational documents, its officers and trustees are indemnified against certain liability arising out of the performance of their duties to the Funds. In addition, in the normal course of business the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds' maximum exposure under these arrangements are unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds expect the risk of loss to be remote. 31 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED) NOTE 2. FUND MERGERS Pursuant to a plan of reorganization approved by shareholders of the North American Funds ("NA Funds") on November 7, 2001, all the assets and liabilities of the determined NA Funds were transferred in a tax-free exchange to a determined SunAmerica Mutual Funds ("SA Funds"). The details of the reorganization transactions, which were consummated on November 16, 2001, are set forth below. The SunAmerica Stock Index Fund, SunAmerica Science & Technology Fund, SunAmerica Aggressive Growth LifeStage Fund, SunAmerica Moderate Growth LifeStage Fund, and SunAmerica Conservative Growth LifeStage Fund, respectively, newly created portfolios of the Corporation acquired all of the assets and liabilities of the North American Stock Index Fund, North American Science & Technology Fund, North American Aggressive Growth LifeStyle Fund, North American Moderate Growth LifeStyle Fund, and North American Conservative Growth LifeStyle Fund, respectively. In conjunction with the reoganization, for each of the listed Funds above, Class C shares of each of the NA Funds were redesignated as Class II shares of the SA Funds. NOTE 3. SIGNIFICANT ACCOUNTING POLICIES The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these estimates. The following is a summary of the significant accounting policies followed by the Funds in the preparation of their financial statements: SECURITY VALUATIONS: Securities that are actively traded in the over-the-counter market, including listed securities for which the primary market is believed by the Adviser to be over-the-counter, are valued at the quoted bid price provided by principal market makers. Securities listed on the New York Stock Exchange ("NYSE") or other national securities exchanges are valued on the basis of the last sale price on the exchange on which they are primarily traded. If there is no sale on that day, then securities are valued at the closing bid price on the NYSE or other primary exchange for that day. However, if the last sale price on the NYSE is different than the last sale price on any other exchange, the NYSE price is used. Securities listed on the NASDAQ exchange will be valued using the NASDAQ Official Closing Price ("NOCP"). Generally, the NOCP will be the last sale price unless the reported trade for the security 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. Securities that are traded on foreign exchanges are ordinarily valued at the last quoted sales price available before the time when the assets are valued. If a security's price is available from more than one foreign exchange, a Fund uses the exchange that is the primary market for the security. The investments of the LifeStage Funds and other mutual funds held are valued at the closing net asset value per share of each underlying Fund. Options traded on national securities exchanges are valued as of the close of the exchange on which they are traded. Futures and options traded on commodities exchanges are valued at their last sale price as of the close of such exchange. The Funds may make use of a pricing service in the determination of their net asset values. Securities for which market quotations are not readily available or if a development/event 32 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED) occurs that may significantly impact the value of a security, then these securities may be fair valued as determined pursuant to procedures adopted in good faith by the Board of Directors (the "Directors"). Short-term investments which mature in less than 60 days are valued at amortized cost, if their original maturity was 60 days or less, or by amortizing their value on the 61st day prior to maturity, if their original term to maturity exceeded 60 days. REPURCHASE AGREEMENTS: Pursuant to exemptive relief granted by the Securities and Exchange Commission, the Funds are permitted to participate in joint repurchase agreement transactions with other affiliated mutual funds. The Funds, along with other affiliated registered investment companies, 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. The Funds' custodian takes possession of the collateral pledged for investments in such repurchase agreements. The underlying collateral is valued daily on a mark to market basis to ensure that the value, including accrued interest, is at least equal to the repurchase price. In the event of default of the obligation to repurchase, a Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited. As of April 30, 2003, Biotech/Health Fund had a 2.2% undivided interest which represented $5,558,000 in principal amount in a joint repurchase agreement with State Street Bank & Trust Co. As of such date, the repurchase agreement in the joint account and the collateral thereof are as follows: State Street Bank & Trust Co. Repurchase Agreement, 1.13% dated 4/30/03 in the principal amount of $252,071,000, repurchase price $252,078,912 due 5/01/03, collateralized by the following:
INTEREST MATURITY PRINCIPAL MARKET TYPE OF COLLATERAL RATE DATE AMOUNT VALUE ------------------ -------- ----------- ------------- ------------- U.S. Treasury Bill....................... 1.12% 10/2/2003 $ 40,000,000 $ 40,804,950 U.S. Treasury Note....................... 2.88% 6/30/2004 20,000,000 20,401,013 U.S. Treasury Note....................... 2.25% 7/31/2004 80,000,000 81,604,875 U.S. Treasury Bond....................... 6.25% 5/15/2030 100,000,000 102,004,906 U.S. Treasury Bond....................... 7.25% 5/15/2016 12,071,000 12,317,125
SECURITIES TRANSACTIONS, INVESTMENT INCOME, EXPENSES, DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: As customary in the mutual fund industry securities transactions are recorded on a trade date basis. Realized gains and losses on sales of investments are calculated on the identified cost basis. Interest income is recorded on the accrual basis; dividend income is recorded on the ex-dividend date. The LifeStage Funds invest in a combination of SunAmerica Mutual Funds including Funds investing in fixed income securities. Funds that invest in fixed income securities amortize premiums and accrete discounts, as well as those original issue discounts for which amortization is required for federal income tax purposes. Gains and losses realized upon the sale of such securities are based on their identified cost. Funds investing in foreign securities may be subject to taxes imposed by countries in which they invest. Such taxes are generally based on either income or gains earned or repatriated. 33 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED) Net investment income, other than class-specific expenses, and realized and unrealized gains and losses, are allocated daily to each class of shares based upon the relative net asset value of outstanding shares (or the value of the dividend-eligible shares, as appropriate) of each class of shares at the beginning of the day (after adjusting for the current capital share activity of the respective class). Expenses common to all Funds, not directly related to individual Funds, are allocated among the Funds based upon their relative net asset values or other appropriate methods. In all other respects, expenses are charged to each Fund as incurred on a specific identification basis. Interest earned on cash balances held at the custodian are shown as custody credits on the Statement of Operations. Effective December 2, 2002, the Board of Directors approved a change in the accounting of expenses for the LifeStage Funds based on current industry practice. Accordingly, the expenses included in the accompanying financial statements reflect the expenses of the LifeStage Funds and does not include indirect expenses borne by each LifeStage Fund in connection with its investment in the underlying Funds. The Funds issue and redeem shares, invest in securities and distribute dividends from net investment income and net realized gains which are paid in cash or are reinvested at the discretion of shareholders. These activities are reported in the Statement of Changes in Net Assets. Dividends from net investment income, if any, are paid at least annually. Capital gain distributions, if any, are paid at least annually. The Funds record dividends and distributions to their respective shareholders on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined and presented in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts at fiscal year end based on their federal tax-basis treatment; temporary differences do not require reclassification. Net investment income/loss, net realized gain/loss, and net assets are not affected. The Funds intend to comply with the requirements of the Internal Revenue Code, as amended, applicable to regulated investment companies and distribute all of their taxable income, including any net realized gain on investments, to their shareholders. Therefore, no federal tax provision is required. Each Fund is considered a separate entity for tax purposes. 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 fiscal year-end. Similarly, the Funds do not isolate the effect of changes in foreign exchange rates from the changes in the market prices of portfolio securities sold during the year. Realized foreign exchange gains and losses on other assets and liabilities and change in unrealized foreign exchange gains and losses on other assets and liabilities include foreign exchange gains and losses from currency gains or losses between the trade and settlement dates of securities transactions, the difference between the amounts of interest, dividends and foreign withholding taxes recorded on a Fund's 34 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED) books and the U.S. dollar equivalent amounts actually received or paid and changes in the unrealized foreign exchange gains and losses relating to other assets and liabilities arising as a result of changes in the exchange rate. FUTURES CONTRACTS: A futures contract is an agreement between two parties to buy and sell a financial instrument at a set price on a future date. Upon entering into such a contract the Funds are required to pledge to the broker an amount of cash or U.S. government securities equal to the minimum "initial margin" requirements of the exchange on which the futures contract is traded. The Funds' activities in futures contracts are for hedging purposes and are conducted through regulated exchanges which do not result in counterparty credit risks. A Fund's participation in the futures markets involves certain risks, including imperfect correlation between movements in the price of futures contracts and movements in the price of the securities hedged or used for cover. Pursuant to a contract the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as "variation margin" and are recorded by the Funds as unrealized appreciation or depreciation. Futures contracts involve elements of risk in excess of the amount reflected in the Statement of Assets and Liabilities. When a contract is closed, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. SHORT SALES: The Funds may sell a security it does not own in anticipation of a decline in the market value of that security (short sales). To complete such a transaction, the Fund must borrow the security to make delivery to the buyer. The Fund then is obligated to replace the security borrowed by purchasing it at market price at the time of replacement. The price at such time may be more or less than the price at which the security was sold by the Fund. Until the security is replaced, the Fund is required to pay to the lender any dividends or interest that accrue during the period of the loan. To borrow the security, the Fund also may be required to pay a premium, which would increase the cost of the security sold. The proceeds of the short sale will be retained by the broker, to the extent necessary to meet margin requirements, until the short position is closed out. Until the Fund replaces a borrowed security, the Fund will maintain daily a segregated account, containing cash or liquid securities, at such a level that (i) the amount deposited in the account plus the amount deposited with the broker as collateral will equal the current value of the security sold short and (ii) the amount deposited in the segregated account plus the amount deposited with the broker as collateral will not be less than the market value of the security at the time it was sold short. Liabilities for securities sold short are reported at market value in the financial statements. Such liabilities are subject to off balance sheet risk to the extent of any future increases in market value of the securities sold short. The ultimate liability for securities sold short could exceed the liabilities recorded in the Statement of Assets and Liabilities. The Fund bears the risk of potential inability of the broker to meet their obligation to perform. NOTE 4. INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT, DISTRIBUTION AGREEMENT AND SERVICE AGREEMENT The Corporation, on behalf of each Fund, has entered into an Investment Advisory and Management Agreement (the "Agreement") with SAAMCo. Under the Agreement, SAAMCo provides continuous supervision of each respective Fund and administers its corporate affairs, subject to general review by the Directors. In connections therewith, SAAMCo furnishes the Funds with office facilities, maintains certain of 35 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED) the Fund's books and records, and pays the salaries and expenses of all personnel, including officers of the Funds who are employees of SAAMCo and its affiliates. The investment advisory and management fee payable by the Funds to SAAMCo is computed daily and payable monthly, at an annual rate based on the average daily net assets as follows:
EXCESS FIRST OVER FUND $500 MILLION $500 MILLION ---- ------------ ------------ Biotech/Health Fund.................................. 0.75% same Tax Managed Equity Fund.............................. 0.85% same Stock Index Fund..................................... 0.27% 0.26% Science & Technology Fund............................ 0.90% same Aggressive Growth LifeStage Fund..................... 0.10% same Moderate Growth LifeStage Fund....................... 0.10% same Conservative Growth LifeStage Fund................... 0.10% same
Prior to November 16, 2001, American General Asset Management ("AGAM") was the advisor for the Stock Index Fund, Science & Technology Fund, Aggressive Growth LifeStage Fund, Moderate Growth LifeStage Fund and Conservative Growth LifeStage Fund. The annual investment advisory and management fee percentages payable to AGAM prior to November 16, 2001, are the same as those payable under the current investment advisory agreement with SAAMCo. The Tax Managed Equity Fund, Stock Index Fund and Science & Technology Fund are subadvised by J.P. Morgan Fleming Asset Management, Inc., AIG Global Investment Corp. ("AIGGIC") and T. Rowe Price & Associates, Inc., respectively. AIGGIC is an indirect wholly-owned subsidiary of AIG and an affiliate of SAAMCo. Under the Subadvisory Agreements, the subadvisors manage the investment and reinvestment of the assets of the respective Fund for which they are responsible. Each of the subadvisors is independent of SAAMCo except for AIGGIC and discharges its responsibilities subject to the polices of the Corporation's Directors and the oversight and supervision of SAAMCo. All Subadvisory fees are paid by SAAMCo and do not increase Fund expenses. The Subadvisory fees paid by SAAMCo are computed at an annual rate based upon the average daily net assets as follows:
SUBADVISORY ASSETS FEES --------------- ----------- Tax Managed Equity Fund......................... $0-$200 million 0.45% >$200 million 0.40 >$400 million 0.35 Stock Index Fund................................ $0-$2 billion 0.20 >$2 billion 0.10 Science & Technology Fund....................... >$0 0.60
Prior to November 16, 2001, the Stock Index Fund, Aggressive Growth LifeStage Fund, Moderate Growth LifeStage Fund, and Conservative Growth LifeStage Fund (all operating as the North American 36 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED) Funds) were sub-advised by American General Investment Management, L.P. ("AGIM"). AGIM was an indirect wholly-owned subsidiary of AIG and received the same fee rate as the current subadvisor, which was paid by AGAM. SAAMCo has contractually agreed to waive fees or reimburse expenses, if necessary to keep the annual expenses at or below an annual rate of 1.55% of the assets of Class A shares and 2.20% of the assets of Class B and Class II shares for the Biotech/Health Fund; 1.45% of the assets of Class A shares and 2.10% of the assets of Class B and Class II shares for the Tax Managed Equity Fund; 0.75% of the assets of Class A shares, and 1.40% of the assets of Class B and Class II shares for the SunAmerica Stock Index Fund; and 1.50% of the assets of Class A shares, 2.15% of the assets of Class B and Class II shares and 1.40% of the assets of Class I shares of the SunAmerica Science & Technology Fund. Effective December 1, 2002 SAAMCo contractually agreed to waive fees or reimburse expenses, if necessary to keep the annual expenses at or below an annual rate of 0.50% of the assets of Class A shares and 1.15% of the assets of Class B shares and Class II shares and 0.40% of Class I shares of the LifeStage Funds. SAAMCo also may voluntarily waive or reimburse additional amounts to increase the investment return to the Funds' investors. Further, any waivers or reimbursements made by SAAMCo are subject to recoupment from the Funds within the following two years, provided that the Funds are able to effect such payment to SAAMCo and remain in compliance with the foregoing expense limitations. For the six months ended April 30, 2003, expenses were reimbursed to the Funds as follows: Biotech/Health Fund -- Class A.............................. $22,260 Biotech/Health Fund -- Class B.............................. 24,195 Biotech/Health Fund -- Class II............................. 21,540 Tax Managed Equity Fund -- Class A.......................... 20,273 Tax Managed Equity Fund -- Class B.......................... 27,372 Tax Managed Equity Fund -- Class II......................... 26,890 Stock Index Fund -- Class A................................. 26,473 Stock Index Fund -- Class B................................. 58,535 Stock Index Fund -- Class II................................ 10,830 Science & Technology Fund -- Class A........................ 20,478 Science & Technology Fund -- Class B........................ 58,259 Science & Technology Fund -- Class II....................... 8,646 Science & Technology Fund -- Class I........................ 3,888 Aggressive Growth Lifestage Fund A.......................... 8,218 Aggressive Growth Lifestage Fund B.......................... 19,506 Aggressive Growth Lifestage Fund II......................... 2,707 Aggressive Growth Lifestage Fund I.......................... 10,874 Moderate Growth Lifestage Fund A............................ 4,279 Moderate Growth Lifestage Fund B............................ 10,572 Moderate Growth Lifestage Fund II........................... 2,608 Moderate Growth Lifestage Fund I............................ 5,390 Conservative Growth Lifestage Fund A........................ 6,167 Conservative Growth Lifestage Fund B........................ 9,701 Conservative Growth Lifestage Fund II....................... 3,404 Conservative Growth Lifestage Fund I........................ 6,654
37 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED) For the six months ended April 30, 2003, none of the previously reimbursed expenses have been repaid to the Advisor by the Funds. At April 30, 2003, expenses previously waived or reimbursed by SAAMCo that are subject to recoupment are as follows:
OTHER EXPENSES REIMBURSED -------------- Biotech/Health Fund............................... $-- Tax Managed Equity Fund........................... -- Stock Index Fund.................................. 110,524 Science & Technology Fund......................... 115,772 Aggressive Growth LifeStage Fund.................. 29,475 Moderate Growth LifeStage Fund.................... 12,491 Conservative Growth LifeStage Fund................ 16,515 CLASS SPECIFIC EXPENSES REIMBURSED -------------- Biotech/Health Fund Class A....................... $117,029 Biotech/Health Fund Class B....................... 110,772 Biotech/Health Fund Class II...................... 98,785 Tax Managed Equity Fund Class A................... 109,190 Tax Managed Equity Fund Class B................... 152,135 Tax Managed Equity Fund Class II.................. 158,152 Stock Index Fund Class A.......................... 50,163 Stock Index Fund Class B.......................... 119,926 Stock Index Fund Class II......................... 25,343 Science & Technology Fund Class A................. 30,279 Science & Technology Fund Class B................. 80,289 Science & Technology Fund Class II................ 16,236 Science & Technology Fund Class I................. 11,964 Aggressive Growth LifeStage Fund Class A.......... 3,751 Aggressive Growth LifeStage Fund Class B.......... 4,531 Aggressive Growth LifeStage Fund Class II......... 2,244 Aggressive Growth LifeStage Fund Class I.......... 1,304 Moderate Growth LifeStage Fund Class A............ 2,516 Moderate Growth LifeStage Fund Class B............ 5,603 Moderate Growth LifeStage Fund Class II........... 2,112 Moderate Growth LifeStage Fund Class I............ 127 Conservative Growth LifeStage Fund Class A........ 2,429 Conservative Growth LifeStage Fund Class B........ 3,732 Conservative Growth LifeStage Fund Class II....... 2,079 Conservative Growth LifeStage Fund Class I........ 1,171
38 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED) The Corporation, on behalf of each Fund, has entered into a Distribution Agreement with AIG SunAmerica Capital Services, Inc. ("SACS" or the "Distributor"), an affiliate of SAAMCo. Each Fund has adopted a Distribution Plan (the "Plan") in accordance with the provisions of Rule 12b-1 under the 1940 Act. Rule 12b-1 permits an investment company directly or indirectly to pay expenses associated with the distribution of its shares ("distribution expenses") in accordance with a plan adopted by the investment company's Board of Directors and approved by its shareholders. Pursuant to such rule, the Directors and shareholders of each class of shares of each Fund have adopted Distribution Plans hereinafter referred to as the "Class A Plan," the "Class B Plan" and the "Class II Plan." In adopting the Class A Plan, the Class B Plan and the Class II Plan, the Directors determined that there was a reasonable likelihood that each such Plan would benefit the Fund and the shareholders of the respective class. The sales charge and distribution fees of a particular class will not be used to subsidize the sale of shares of any other class. Under the Class A Plan, Class B Plan and Class II Plan, the Distributor receives payments from a Fund at an annual rate of up to 0.10%, 0.75% and 0.75%, respectively, of average daily net assets of such Fund's Class 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 reimbursed out of such distribution fees include fees paid to broker-dealers that have sold Fund shares, commissions, and other expenses such as those incurred for sales literature, prospectus printing and distribution and compensation to wholesalers. It is possible that in any given year the amount paid to the Distributor under each Class' Plan may exceed the Distributor's distribution costs as described above. Except for the three LifeStage Funds, the Distribution Plans also provide that each class of shares of each Fund may also pay the Distributor an account maintenance and service fee up to an annual rate of 0.25% of the aggregate average daily net assets of such class of shares for payments to broker-dealers for providing continuing account maintenance. Accordingly, for the six months ended April 30, 2003, SACS received fees (see Statement of Operations) based upon the aforementioned rate. Prior to November 16, 2001, the Stock Index Fund, Science & Technology Fund, Aggressive Growth LifeStage Fund, Moderate Growth LifeStage Fund and Conservative Growth LifeStage Fund were subject to a different Distribution Agreement with American General Fund Distributor, Inc. ("AGFD"). Under this agreement, AGFD received fees from the Stock Index Fund and Science & Technology Fund at an annual rate of 0.35% for the Class A shares and 1.00% for Class B and II shares based on average daily net assets of each class. For the LifeStage Funds, AGFD received fees at an annual rate of 0.10% for the Class A shares and 0.75% for Class B and II shares based on average daily assets of each class. In addition, except for the LifeStage Funds SACS is paid a fee of 0.25% of average daily net assets of Class I shares as compensation for providing additional shareholder services to Class I shareholders. SACS receives sales charges on the Fund's Class A and Class II shares, portions of which are reallowed to affiliated broker-dealers and non-affiliated broker-dealers. SACS also receives the proceeds of contingent deferred sales charges paid by investors in connection with certain redemptions of the Fund's 39 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED) Class A, Class B and Class II shares. SACS has advised the Funds that for the six months ended April 30, 2003 the proceeds received from sales (and paid out to affiliated and non-affiliated broker-dealers) and redemptions are as follows:
CLASS A CLASS B ----------------------------------------- ------------- CONTINGENT SALES AFFILIATED NON-AFFILIATED DEFERRED CHARGES BROKER-DEALERS BROKER-DEALERS SALES CHARGES ------- -------------- -------------- ------------- Biotech/Health Fund........................... $20,453 $ 9,825 $ 7,908 $30,161 Tax Managed Equity Fund....................... 13,694 6,357 4,283 69,832 Stock Index Fund.............................. 36,845 20,026 12,107 33,777 Science & Technology Fund..................... 10,100 4,742 3,747 10,148 Aggressive Growth LifeStage Fund.............. 5,757 5,045 178 11,320 Moderate Growth LifeStage Fund................ 11,923 10,639 1,695 9,131 Conservative Growth LifeStage Fund............ 10,819 7,314 1,962 14,118
CLASS II --------------------------------------------------------- CONTINGENT SALES AFFILIATED NON-AFFILIATED DEFERRED CHARGES BROKER-DEALERS BROKER-DEALERS SALES CHARGES ------- -------------- -------------- ------------- Biotech/Health Fund............................ $3,643 $1,935 $1,709 $2,650 Tax Managed Equity Fund........................ 3,847 946 2,901 2,043 Stock Index Fund............................... 1,230 735 495 948 Science & Technology Fund...................... 474 356 118 42 Aggressive Growth LifeStage Fund............... 997 782 216 89 Moderate Growth LifeStage Fund................. 2,878 975 1,903 379 Conservative Growth LifeStage Fund............. 2,744 505 2,239 349
The LifeStage Funds do not invest in underlying SunAmerica Funds for the purpose of exercising management or control; however, investments by the LifeStage Funds within the set limits may represent a significant portion of an underlying SunAmerica Fund's net assets. At April 30, 2003, each LifeStage Fund held less than 10% of the outstanding shares of any underlying SunAmerica Fund. In addition, the LifeStage Funds, in the aggregate, held less than 15% of the outstanding shares of any underlying SunAmerica Funds. The Corporation, except for the LifeStage Funds, has entered into a Service Agreement with AIG SunAmerica Fund Services, Inc. ("SAFS"), an affiliate of SAAMCo. Under the Service Agreement, SAFS performs certain shareholder account functions by assisting the Funds' transfer agent in connection with the services that it offers to the shareholders of the Funds. The Service Agreement, which permits the Funds to compensate SAFS for services rendered based upon an annual rate of 0.22% of average daily net 40 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED) assets, is approved annually by the Directors. For the six months ended April 30, 2003, the Funds incurred the following expenses which are included in transfer agent fees in the Statement of Operations to compensate SAFS pursuant to the terms of the Service Agreement.
PAYABLE AT EXPENSES APRIL 30, 2003 ------------------------------------------ ------------------------------------------- CLASS A CLASS B CLASS II CLASS I CLASS A CLASS B CLASS II CLASS I -------- -------- --------- -------- -------- -------- --------- --------- Biotech/Health Fund................ $16,212 $16,065 $11,795 $ -- $2,540 $2,525 $1,743 $ -- Tax Managed Equity Fund............ 16,611 25,571 25,265 -- 2,572 3,972 3,938 -- Stock Index Fund................... 8,796 20,577 2,922 -- 1,538 3,459 438 -- Science & Technology Fund.......... 2,421 7,375 673 166 406 1,246 110 28
As of April 30, 2003, The Variable Annuity Life Insurance Company ("VALIC"), an indirect wholly owned subsidiary of AIG, held five percent or more of the outstanding shares of the indicated Funds' classes:
PERCENT OWNED ---------------------------------------------------------------------- Stock Index Fund Class A..................................................... 19% Science & Technology Fund Class A..................................................... 6 Class I..................................................... 100 Aggressive Growth LifeStage Fund Class A..................................................... 35 Class B..................................................... 9 Class I..................................................... 32 Moderate Growth LifeStage Fund Class A..................................................... 27 Class B..................................................... 8 Class I..................................................... 18 Conservative Growth LifeStage Fund Class A..................................................... 30 Class B..................................................... 17 Class I..................................................... 41
In addition, SAAMCo owns 2% of the Class II outstanding shares of the Tax Managed Equity Fund and 5% of the Class A outstanding shares of the Biotech/Health Fund. 41 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED) NOTE 5. PURCHASES AND SALES OF INVESTMENT SECURITIES The aggregate cost of purchases and proceeds from sales and maturities of long-term investments during the period ended April 30, 2003 were as follows:
AGGRESSIVE MODERATE CONSERVATIVE SCIENCE & GROWTH GROWTH GROWTH BIOTECH/ TAX MANAGED STOCK INDEX TECHNOLOGY LIFESTAGE LIFESTAGE LIFESTAGE HEALTH FUND FUND FUND FUND FUND FUND FUND ----------- ----------- ----------- ---------- ----------- ---------- ------------ Purchases (excluding U.S. government securities)........ $34,510,657 $ 2,318,686 $1,278,687 $2,482,228 $ 4,080,392 $8,596,052 $5,427,007 Sales (excluding U.S. government securities)................... 33,834,711 12,766,852 163,986 2,113,643 3,556,301 6,548,992 5,456,982 Purchases of U.S. government securities.................... -- -- -- -- -- -- -- Sales of U.S. government securities.................... -- -- -- -- -- -- --
NOTE 6. TRANSACTIONS WITH AFFILIATE As disclosed in the investment portfolios of the Tax Managed Equity Fund and Stock Index Fund, the Funds own a security issued by AIG or an affiliate thereof. For the period ended April 30, 2003, the Funds recorded income on security transactions of AIG and subsidiaries of AIG as follows:
SECURITY INCOME -------- ------ Tax Managed Equity Fund............ AIG $1,089 Stock Index Fund................... AIG 839
The following funds incurred brokerage commissions with affiliated brokers which are affiliates of a sub-adviser:
AGGRESSIVE MODERATE CONSERVATIVE BIOTECH/ TAX STOCK SCIENCE & GROWTH GROWTH GROWTH HEALTH MANAGED INDEX TECHNOLOGY LIFESTAGE LIFESTAGE LIFESTAGE FUND FUND FUND FUND FUND FUND FUND -------- --------- --------- ---------- ---------- --------- ------------ J.P. Morgan Securities, Inc........ $7,850 -- -- $143 -- -- --
42 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED) NOTE 7. FEDERAL INCOME TAXES The following details the tax basis distributions as well as the components of distributable earnings. As of October 31, 2002, the tax basis components of distributable earnings differ from the amounts reflected in the Statement of Assets and Liabilities by temporary book/tax differences primarily arising from wash sales, post October losses, and Fund mergers.
DISTRIBUTABLE EARNINGS TAX DISTRIBUTIONS ----------------------------------------------- ---------------------- FOR THE YEAR ENDED OCTOBER 31, 2002 ------------------------------------------------------------------------- LONG-TERM GAINS/ UNREALIZED LONG-TERM ORDINARY CAPITAL LOSS APPRECIATION ORDINARY CAPITAL INCOME CARRYOVER (DEPRECIATION) INCOME GAINS --------- ---------------- -------------- --------- --------- Biotech/Health Fund.......................... $ -- $(35,214,797) $ (5,255,659) $ -- $ -- Tax Managed Equity Fund...................... -- (26,663,794) (18,681,776) -- -- Stock Index Fund............................. 87,654 (2,502,376) (11,125,971) 54,993 -- Science & Technology Fund.................... -- (17,643,730) (5,623,668) -- -- Aggressive Growth LifeStage Fund............. 111,028 (7,199,749) (6,076,726) 109,998 -- Moderate Growth LifeStage Fund............... 349,625 (4,394,037) (6,261,638) 262,993 -- Conservative Growth LifeStage Fund........... 358,022 (2,697,143) (2,632,571) 340,001 --
As of October 31, 2002, the following funds have capital loss carryforwards which will be available to the extent provided in regulations and which will expire between 2007-2010. To the extent that these carryover losses are used to offset future capital gains, it is probable that the gains so offset will not be distributed to shareholders.
CAPITAL LOSS CARRYFORWARDS AMOUNT ------------- Biotech/Health Fund......................................... $35,214,797 Tax Managed Equity Fund..................................... 26,663,794 Stock Index Fund............................................ 2,502,376 Science & Technology Fund................................... 17,643,730 Aggressive Growth LifeStage Fund............................ 7,009,175 Moderate Growth LifeStage Fund.............................. 4,024,724 Conservative Growth LifeStage Fund.......................... 2,586,907
43 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED) The amounts of aggregate unrealized gain (loss) and the cost of investment securities for federal tax purposes, including short-term securities and repurchase agreements as of April 30, 2003, were as follows:
AGGRESSIVE MODERATE CONSERVATIVE SCIENCE & GROWTH GROWTH GROWTH BIOTECH/ TAX MANAGED STOCK INDEX TECHNOLOGY LIFESTAGE LIFESTAGE LIFESTAGE HEALTH FUND FUND FUND FUND FUND FUND FUND ----------- ------------ ------------ ----------- ----------- ----------- ------------ Cost (tax basis)............. $40,731,037 $ 72,788,168 $ 41,046,620 $13,690,647 $24,863,648 $34,936,389 $20,504,279 =========== ============ ============ =========== =========== =========== =========== Appreciation................. $ 3,466,292 $ 3,338,202 $ 1,554,442 $ 477,469 $ 29,650 $ 189,245 $ 308,958 Depreciation................. (3,463,260) (16,569,501) (11,563,138) (3,734,615) (4,590,503) (4,327,924) (1,720,906) ----------- ------------ ------------ ----------- ----------- ----------- ----------- Net unrealized appreciation (depreciaiton)............. $ 3,032 $(13,231,299) $(10,008,697) $(3,257,146) $(4,560,853) $(4,138,679) $(1,411,948) =========== ============ ============ =========== =========== =========== ===========
NOTE 8. CAPITAL SHARE TRANSACTIONS Transactions in capital shares of each class of each fund were as follows:
BIOTECH/HEALTH FUND ---------------------------------------------------------------------------------------------------- CLASS A CLASS B --------------------------------------------------- ----------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS FOR THE YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 ENDED APRIL 30, 2003 OCTOBER 31, 2002 ------------------------- ------------------------ ----------------------- ---------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ------------- ---------- ------------ --------- ------------ --------- ----------- Shares sold.............. 185,863* $ 1,392,046* 646,970 $ 6,336,427 100,783 $ 740,772 572,460 $ 5,712,976 Reinvested dividends..... -- -- -- -- -- -- -- -- Shares redeemed.......... (387,818) (2,891,965) (1,062,148) (9,526,931) (276,245)* (2,030,829)* (810,536) (7,339,560) -------- ----------- ---------- ----------- -------- ----------- -------- ----------- Net increase (decrease)............. (201,955) $(1,499,919) (415,178) $(3,190,504) (175,462) $(1,290,057) (238,076) $(1,626,584) ======== =========== ========== =========== ======== =========== ======== ===========
BIOTECH/HEALTH FUND -------------------------------------------------- CLASS II -------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 ------------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT ---------- ------------- --------- ------------ Shares sold.............. 73,123 $ 540,173 339,378 $ 3,284,100 Reinvested dividends..... -- -- -- -- Shares redeemed.......... (430,167) (3,148,714) (838,133) (7,689,471) -------- ----------- -------- ----------- Net increase (decrease)............. (357,044) $(2,608,541) (498,755) $(4,405,371) ======== =========== ======== =========== ------------------ * Includes automatic conversion of 12,941 shares of Class B shares in the amount of $92,343 to 12,636 shares of Class A shares in the amount of $92,343.
44 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
TAX MANAGED EQUITY FUND ------------------------------------------------------------------------------------------------------ CLASS A CLASS B --------------------------------------------------- ------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS FOR THE YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 ENDED APRIL 30, 2003 OCTOBER 31, 2002 ------------------------- ------------------------ ----------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ------------- ---------- ------------ --------- ------------ ---------- ------------ Shares sold............. 37,309* $ 338,474* 255,825 $ 2,796,384 41,358 $ 368,203 341,922 $ 3,766,020 Reinvested dividends.... -- -- -- -- -- -- -- -- Shares redeemed......... (309,244) (2,754,565) (1,016,375) (10,481,262) (479,381)* (4,181,808)* (1,167,526) (11,638,648) -------- ----------- ---------- ------------ -------- ----------- ---------- ------------ Net increase (decrease)............ (271,935) $(2,416,091) (760,550) $ (7,684,878) (438,023) $(3,813,605) (825,604) $ (7,872,628) ======== =========== ========== ============ ======== =========== ========== ============
TAX MANAGED EQUITY FUND --------------------------------------------------- CLASS II --------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 ------------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT ---------- ------------- ---------- ------------ Shares sold............. 69,250 $ 601,220 319,412 $ 3,458,869 Reinvested dividends.... -- -- -- -- Shares redeemed......... (610,595) (5,358,531) (1,331,221) (13,791,589) -------- ----------- ---------- ------------ Net increase (decrease)............ (541,345) $(4,757,311) (1,011,809) $(10,332,720) ======== =========== ========== ============
STOCK INDEX FUND ---------------------------------------------------------------------------------------------------- CLASS A CLASS B ------------------------------------------------- ------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS FOR THE YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 ENDED APRIL 30, 2003 OCTOBER 31, 2002 ------------------------ ----------------------- ----------------------- ---------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ------------ --------- ------------ -------- ----------- --------- ----------- Shares sold.............. 280,062** $2,198,222** 260,515 $ 2,428,245 299,103 $ 2,333,511 632,857 $ 5,906,314 Reinvested dividends..... 7,985 63,642 5,044 49,982 4,165 33,152 431 4,268 Shares redeemed.......... (120,724) (937,422) (155,624) (1,356,697) (284,363)** (2,217,393)** (568,750) (5,278,347) -------- ---------- -------- ----------- -------- ----------- -------- ----------- Net increase (decrease)............. 167,323 $1,324,442 109,935 $ 1,121,530 18,905 $ 149,270 64,538 $ 632,235 ======== ========== ======== =========== ======== =========== ======== ===========
STOCK INDEX FUND ------------------------------------------------ CLASS II+ ------------------------------------------------ FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 ------------------------- --------------------- SHARES AMOUNT SHARES AMOUNT ----------- ------------ -------- ----------- Shares sold.............. 43,851 $ 344,297 292,752 $2,643,460 Reinvested dividends..... 624 4,942 29 281 Shares redeemed.......... (102,987) (794,597) (71,600) (632,305) -------- --------- ------- ---------- Net increase (decrease)............. (58,512) $(445,358) 221,181 $2,011,436 ======== ========= ======= ========== ------------------ + See Note 2 * Includes automatic conversion of 1,530 shares of Class B shares in the amount of $13,081 to 1,516 shares of Class A shares in the amount of $13,081. ** Includes automatic conversion of 1,482 shares of Class B shares in the amount of $11,323 to 1,474 shares of Class A shares in the amount of $11,323.
45 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
SCIENCE & TECHNOLOGY FUND -------------------------------------------------------------------------------------------------- CLASS A CLASS B ------------------------------------------------ ------------------------------------------------ FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS FOR THE YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 ENDED APRIL 30, 2003 OCTOBER 31, 2002 ------------------------- --------------------- ----------------------- ---------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ----------- ------------ --------- ---------- ---------- ----------- --------- ----------- Shares sold.............. 206,874* $ 481,914* 244,541 $ 726,756 344,802 $ 781,753 559,269 $ 1,607,887 Reinvested dividends..... -- -- -- -- -- -- -- -- Shares redeemed.......... (176,286) (392,852) (134,448) (384,113) (317,283)* (707,867)* (541,541) (1,479,868) -------- --------- -------- --------- -------- --------- -------- ----------- Net increase (decrease)............. 30,588 $ 89,062 110,093 $ 342,643 27,519 $ 73,886 17,728 $ 128,019 ======== ========= ======== ========= ======== ========= ======== ===========
SCIENCE & TECHNOLOGY FUND -------------------------------------------------------------------------------------------- CLASS II+ CLASS I ---------------------------------------------- -------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS FOR THE YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 ENDED APRIL 30, 2003 OCTOBER 31, 2002 ------------------------ -------------------- ---------------------- -------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ------------ -------- ---------- ---------- ---------- --------- --------- Shares sold.............. 68,945 $ 151,443 63,024 $ 193,961 -- $-- 33,747 $ 116,738 Reinvested dividends..... -- -- -- -- -- -- -- -- Shares redeemed.......... (67,766) (149,152) (94,353) (248,758) -- -- (224,586) (790,279) ------- --------- ------- --------- ------- ------- -------- --------- Net increase (decrease)............. 1,179 $ 2,291 (31,329) $ (54,797) -- $-- (190,839) $(673,541) ======= ========= ======= ========= ======= ======= ======== =========
AGGRESSIVE GROWTH LIFESTAGE FUND ------------------------------------------------------------------------------------------------- CLASS A CLASS B ---------------------------------------------- ------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS FOR THE YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 ENDED APRIL 30, 2003 OCTOBER 31, 2002 ------------------------ -------------------- ----------------------- ---------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ------------ -------- ---------- --------- ---------- --------- ----------- Shares sold......... 31,505** $ 202,002** 93,914 $ 714,141 103,890 $ 668,316 193,588 $ 1,476,309 Reinvested dividends......... 6,081 38,374 4,135 34,526 9,328 59,139 2,073 17,106 Shares redeemed..... (19,473) (124,355) (90,472) (703,615) (120,889)** (773,987)** (272,106) (2,014,498) ------- --------- ------- --------- -------- --------- -------- ----------- Net increase (decrease)........ 18,113 $ 116,021 7,577 $ 45,052 (7,671) $ (46,532) (76,445) $ (521,083) ======= ========= ======= ========= ======== ========= ======== ===========
AGGRESSIVE GROWTH LIFESTAGE FUND -------------------------------------------------------------------------------------------- CLASS II+ CLASS I ---------------------------------------------- -------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS FOR THE YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 ENDED APRIL 30, 2003 OCTOBER 31, 2002 ------------------------ -------------------- ---------------------- -------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ------------ -------- ---------- --------- ----------- -------- ---------- Shares sold.............. 17,322 $111,672 45,563 $ 380,095 141,468 $ 901,610 280,983 $2,138,818 Reinvested dividends..... 257 1,644 41 344 13,775 87,062 7,447 61,214 Shares redeemed.......... (6,795) (43,579) (31,487) (275,989) (45,820) (289,113) (79,390) (587,171) ------ -------- ------- --------- ------- --------- ------- ---------- Net increase (decrease)............. 10,784 $ 69,737 14,117 $ 104,450 109,423 $ 699,559 209,040 $1,612,861 ====== ======== ======= ========= ======= ========= ======= ========== ------------------ + See Note 2 * Includes automatic conversion of 12,272 shares of Class B shares in the amount of $28,535 to 12,266 shares of Class A shares in the amount of $28,535. ** Includes automatic conversion of 1,015 shares of Class B shares in the amount of $6,425 to 1,017 shares of Class A shares in the amount of $6,425.
46 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
MODERATE GROWTH LIFESTAGE FUND ----------------------------------------------------------------------------------------------- CLASS A CLASS B ---------------------------------------------- ----------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS FOR THE YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 ENDED APRIL 30, 2003 OCTOBER 31, 2002 ------------------------ -------------------- ----------------------- ---------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ------------ -------- ---------- --------- ------------ --------- ----------- Shares sold.............. 108,203 $ 829,062 121,248 $ 997,231 120,513 $ 911,142 261,161 $ 2,203,318 Reinvested dividends..... 7,877 58,996 5,608 50,695 13,846 104,263 8,440 76,638 Shares redeemed.......... (39,995) (299,700) (79,893) (691,063) (147,038) (1,112,702) (206,329) (1,753,040) ------- --------- ------- --------- -------- ----------- -------- ----------- Net increase (decrease)............. 76,085 $ 588,358 46,963 $ 356,863 (12,679) $ (97,297) 63,272 $ 526,916 ======= ========= ======= ========= ======== =========== ======== ===========
MODERATE GROWTH LIFESTAGE FUND ----------------------------------------------------------------------------------------------- CLASS II+ CLASS I ---------------------------------------------- ----------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS FOR THE YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 ENDED APRIL 30, 2003 OCTOBER 31, 2002 ------------------------ -------------------- ----------------------- ---------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ------------ -------- ---------- --------- ------------ --------- ----------- Shares sold.............. 59,504 $ 456,060 67,822 $ 582,164 299,388 $2,261,994 672,505 $ 5,764,807 Reinvested dividends..... 1,166 8,791 481 4,379 25,881 193,593 14,350 129,438 Shares redeemed.......... (25,154) (190,401) (24,662) (206,397) (78,494) (592,298) (238,088) (2,026,639) ------- --------- ------- --------- ------- ---------- -------- ----------- Net increase (decrease)............. 35,516 $ 274,450 43,641 $ 380,146 246,775 $1,863,289 448,767 $ 3,867,606 ======= ========= ======= ========= ======= ========== ======== ===========
CONSERVATIVE GROWTH LIFESTAGE FUND -------------------------------------------------------------------------------------------------- CLASS A CLASS B ----------------------------------------------- ------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS FOR THE YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 ENDED APRIL 30, 2003 OCTOBER 31, 2002 ------------------------ --------------------- ----------------------- ---------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ------------ -------- ----------- --------- ------------ --------- ----------- Shares sold.............. 84,655* $ 715,041* 151,857 $1,331,153 60,386 $ 507,051 152,122 $ 1,346,548 Reinvested dividends..... 12,002 98,893 8,165 76,020 13,895 115,202 13,082 127,052 Shares redeemed.......... (24,833) (204,965) (89,989) (808,598) (174,422)* (1,466,519)* (342,458) (3,097,024) ------- --------- ------- ---------- -------- ----------- -------- ----------- Net increase (decrease)............. 71,824 $ 608,969 70,033 $ 598,575 (100,141) $ (844,266) (177,254) $(1,623,424) ======= ========= ======= ========== ======== =========== ======== ===========
CONSERVATIVE GROWTH LIFESTAGE FUND -------------------------------------------------------------------------------------------- CLASS II+ CLASS I ---------------------------------------------- -------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS FOR THE YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 ENDED APRIL 30, 2003 OCTOBER 31, 2002 ------------------------ -------------------- ---------------------- -------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ------------ -------- ---------- --------- ----------- -------- ---------- Shares sold.............. 44,709 $374,702 94,644 $ 839,800 65,363 $ 545,598 175,836 $1,599,196 Reinvested dividends..... 2,663 22,160 950 8,928 18,285 150,668 13,749 128,001 Shares redeemed.......... (9,293) (77,883) (19,358) (170,559) (28,141) (234,283) (61,696) (557,703) ------ -------- ------- --------- ------- --------- ------- ---------- Net increase (decrease)............. 38,079 $318,979 76,236 $ 678,169 55,507 $ 461,983 127,889 $1,169,494 ====== ======== ======= ========= ======= ========= ======= ========== ------------------ + See Note 2 * Includes automatic conversion of 248 shares of Class B shares in the amount of $2,023 to 247 shares of Class A shares in the amount of $2,023.
47 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED) NOTE 9. DIRECTORS' RETIREMENT PLAN The Directors (and Trustees) of the SunAmerica Strategic Investment Series, Inc. have adopted the SunAmerica Disinterested Trustees' and Directors' Retirement Plan (the "Retirement Plan") effective January 1, 1993 for the unaffiliated Directors. The Retirement Plan provides generally that if an unaffiliated Director who has at least 10 years of consecutive service as a Disinterested Director of any of the SunAmerica mutual funds (an "Eligible Director") retires after reaching age 60 but before age 70 or dies while a Director, such person will be eligible to receive a retirement or death benefit from each SunAmerica mutual fund with respect to which he or she is an Eligible Director. As of each birthday, prior to the 70th birthday, but in no event for a period greater than 10 years, each Eligible Director will be credited with an amount equal to 50% of his or her regular fees (excluding committee fees) for services as a Disinterested Director of each SunAmerica mutual fund for the calendar year in which such birthday occurs. In addition, an amount equal to 8.5% of any amounts credited under the preceding clause during prior years, is added to each Eligible Director's account until such Eligible Director reaches his or her 70th birthday. An Eligible Director may receive any benefits payable under the Retirement Plan, at his or her election, either in one lump sum or in up to fifteen annual installments. Any undistributed amounts shall continue to accrue interest at 8.5%.
RETIREMENT PLAN RETIREMENT PLAN LIABILITY EXPENSE --------------- --------------- AS OF APRIL 30, 2003 --------------------------------- Biotech/Health Fund.............................. $3,177 $548 Tax Managed Equity Fund.......................... 8,077 807 Stock Index Fund................................. 804 310 Science & Technology Fund........................ 341 115 Aggressive Growth Lifestage Fund................. 129 129 Moderate Growth Lifestage Fund................... 190 190 Conservative Growth Lifestage Fund............... 122 122
NOTE 10. COMMITMENTS AND CONTINGENCIES The SunAmerica Family of Mutual Funds has established a $75 million committed and $50 million uncommitted lines of credit with State Street Bank and Trust Company, the Funds' custodian. Interest is currently payable at the Federal Funds Rate plus 50 basis points on the committed line and State Street's discretionary bid rate on the uncommitted line of credit. There is also a commitment fee of 10 basis points per annum on the daily unused portion of the committed line of credit. Borrowings under the line of credit will commence when the respective Fund's cash shortfall exceeds $100,000. During the six months ended April 30, 2003, none of the Funds participated in the lines of credit agreement. 48 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. DIRECTOR INFORMATION -- (UNAUDITED) The following table contains basic information regarding the Directors that oversee operations of the Funds and other investment companies within the Fund complex.
NUMBER OF TERM OF FUNDS IN POSITION OFFICE AND FUND OTHER NAME, HELD WITH LENGTH OF COMPLEX DIRECTORSHIPS ADDRESS AND SUNAMERICA TIME PRINCIPAL OCCUPATIONS OVERSEEN BY HELD BY DATE OF BIRTH* COMPLEX SERVED DURING PAST 5 YEARS DIRECTOR(1) DIRECTOR(2) -------------- ---------- ----------- ------------------------------ ----------- ------------------------------ S. James Coppersmith Director 18 years Retired. 45 Director of BJ's Wholesale DOB: February 21, 1933 Club, Inc.; Member of Board of Governors of the Boston Stock Exchange. Judith L. Craven Director 1 1/2 years Retired Administrator. 75 Director, A.G. Belo DOB: October 6, 1945 Corporation (1992 to present); Director, Sysco Corporation (1996 to present); Director, Luby's Inc. (1998 to present). William F. Devin Director 1 1/2 years Retired. 75 Member of the Board of DOB: December 30, 1938 Governors, Boston Stock Exchange (1985-Present). Samual M.. Eisenstat Chairman 17 years Attorney, solo practitioner. 46 Director, North European Oil DOB: March 7, 1940 of the Royalty Trust. Board Stephen J. Gutman Director 18 years Partner and Managing Member of 46 None DOB: May 10, 1943 B.B. Associates LLC (menswear specialty retailing and other activities) (June 1988 to present). Peter A. Harbeck(3) Director 8 years President, CEO and Director, 83 None DOB: January 23, 1954 SAAMCo (August 1995 to present). Director, SACS (August 1993 to present).
49 SUNAMERICA STRATEGIC INVESTMENT SERIES, INC. DIRECTOR INFORMATION -- (UNAUDITED) (CONTINUED)
NUMBER OF TERM OF FUNDS IN POSITION OFFICE AND FUND OTHER NAME, HELD WITH LENGTH OF COMPLEX DIRECTORSHIPS ADDRESS AND SUNAMERICA TIME PRINCIPAL OCCUPATIONS OVERSEEN BY HELD BY DATE OF BIRTH* COMPLEX SERVED DURING PAST 5 YEARS DIRECTOR(1) DIRECTOR(2) -------------- ---------- ----------- ------------------------------ ----------- ------------------------------ Sebastiano Sterpa Director 10 years Founder and Chairman of the 37 Director, Real Estate Business DOB: July 18, 1929 Board of the Sterpa Group Service and Countrywide (real estate investment and Financial. management) (1962 to present).
------------ * The business address for each Director is the Haborside Financial Center, 3200 Plaza 5, Jersey City, NJ 07311-4992. (1) The "Fund Complex" consists of all registered investment company portfolios for which SAAMCo serves as investment adviser or business manager. The "Fund Complex" includes the SunAmerica Money Market Funds (2 funds), SunAmerica Equity Funds (7 funds), SunAmerica Income Funds (6 funds), SunAmerica Style Select Series, Inc. (15 portfolios), SunAmerica Strategic Investment Series, Inc. (7 funds), Anchor Series Trust (8 portfolios), SunAmerica Senior Floating Rate Fund, Inc. (1 fund), SunAmerica Series Trust (33 portfolios), VALIC Company I (22 portfolios), VALIC Company II (15 funds) Anchor Pathway Funds (7 series) and Seasons Series Trust (19 portfolios). (2) Directorships of companies required to report to the Securities and Exchange Commission under the Securities Exchange Act of 1934 (i.e. "public companies") or other investment companies registered under the Investment Company Act of 1940. (3) Interested Director, as defined in the Investment Company Act of 1940. Additional information concerning the Directors is contained in the Statement of Additional Information and is available without charge by calling (800) 858-8850. 50 [AIG SUNAMERICA MUTUAL FUNDS LOGO] AIG SUNAMERICA ASSET MANAGEMENT CORP. HARBORSIDE FINANCIAL CENTER 3200 PLAZA 5 JERSEY CITY, NJ 07311-4992 DIRECTORS/TRUSTEES S. JAMES COPPERSMITH JUDITH L. CRAVEN WILLIAM F. DEVIN SAMUEL M. EISENSTAT STEPHEN J. GUTMAN PETER A. HARBECK SEBASTIANO STERPA OFFICERS ROBERT M. ZAKEM, PRESIDENT DONNA M. HANDEL, TREASURER BRIAN P. CLIFFORD, VICE PRESIDENT J. STEVEN NEAMTZ, VICE PRESIDENT STEVEN SCHOEPKE, VICE PRESIDENT ABBE P. STEIN, VICE PRESIDENT AND ASSISTANT SECRETARY JOSEPH P. KELLY, ASSISTANT SECRETARY STACEY V. MORRISON, ASSISTANT SECRETARY LAURA E. FILIPPONE, ASSISTANT TREASURER GREGORY R. KINGSTON, VICE PRESIDENT AND ASSISTANT TREASURER DONALD H. GUIRE, ASSISTANT TREASURER INVESTMENT ADVISER AIG SUNAMERICA ASSET MANAGEMENT CORP. HARBORSIDE FINANCIAL CENTER 3200 PLAZA 5 JERSEY CITY, NJ 07311-4992 DISTRIBUTOR AIG SUNAMERICA CAPITAL SERVICES, INC. HARBORSIDE FINANCIAL CENTER 3200 PLAZA 5 JERSEY CITY, NJ 07311-4992 SHAREHOLDER SERVICING AGENT AIG SUNAMERICA FUND SERVICES, INC. HARBORSIDE FINANCIAL CENTER 3200 PLAZA 5 JERSEY CITY, NJ 07311-4992 CUSTODIAN AND TRANSFER AGENT STATE STREET BANK AND TRUST COMPANY P.O. BOX 219373 KANSAS CITY, MO 64121 This report is submitted solely for the general information of shareholders of the Fund. Distribution of this report to persons other than shareholders of the Fund is authorized only in connection with a currently effective prospectus, setting forth details of the Fund, which must precede or accompany this report. The accompanying report has not been audited by independent accountants and accordingly no opinion has been expressed thereon. Distributed by: AIG SunAmerica Capital Services, Inc. SISAN-4/03 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. Reserved. Item 6. Reserved. Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable. Item 8. Reserved. Item 9. 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. 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) During the period covered in this report there were no significant deficiencies or material weaknesses in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to date of their evaluation. However, the registrant did enhance its process of monitoring the recording of the daily variation margin for Futures Contracts. Item 10. Exhibits. (a) Not applicable. (b) (1) Certification pursuant to Rule 30a-2 under the Investment Company Act of 1940 (17 CFR 270.30a-2) attached hereto as Exhibit 99.CERT. (2) Certification pursuant to 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 Strategic Investment Series, Inc. By: /s/Robert M. Zakem ------------------ Robert M. Zakem President Date: July 3, 2003 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/Robert M. Zakem ------------------ Robert M. Zakem President Date: July 3, 2003 By: /s/Donna M. Handel ------------------ Donna M. Handel Treasurer Date: July 3, 2003