-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BlSHpARu5P7sbqUeKBON9ChD+R9seprqp14bUsc8Iccr3XhWWtWp0fHZLliQDpO8 ZQwMPGCkjW2Rjc1i8RuydA== 0001193125-07-132244.txt : 20070608 0001193125-07-132244.hdr.sgml : 20070608 20070608101847 ACCESSION NUMBER: 0001193125-07-132244 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070331 FILED AS OF DATE: 20070608 DATE AS OF CHANGE: 20070608 EFFECTIVENESS DATE: 20070608 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUNAMERICA EQUITY FUNDS CENTRAL INDEX KEY: 0000799084 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-04801 FILM NUMBER: 07908448 BUSINESS ADDRESS: STREET 1: HARBORSIDE FINANCIAL CENTER STREET 2: 3200 PLAZA 5 CITY: JERSEY CITY STATE: NJ ZIP: 07311 BUSINESS PHONE: 800-858-8850 MAIL ADDRESS: STREET 1: HARBORSIDE FINANCIAL CENTER STREET 2: 3200 PLAZA 5 CITY: JERSEY CITY STATE: NJ ZIP: 07311 FORMER COMPANY: FORMER CONFORMED NAME: SUNAMERICA EQUITY PORTFOLIOS DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: INTEGRATED EQUITY PORTFOLIOS DATE OF NAME CHANGE: 19900306 0000799084 S000007622 Blue Chip Growth C000020786 Class A C000020787 Class B C000020788 Class C C000020789 Class I 0000799084 S000007623 Growth Opportunities C000020790 Class A C000020791 Class B C000020792 Class C C000020793 Class I 0000799084 S000007624 New Century C000020794 Class A C000020795 Class B C000020796 Class C 0000799084 S000007625 Balanced Assets C000020797 Class A C000020798 Class B C000020799 Class C C000020800 Class I 0000799084 S000007626 Growth & Income C000020801 Class A C000020802 Class B C000020803 Class C C000020804 Class I 0000799084 S000007627 Disciplined Growth Fund C000020805 Class A C000020806 Class B C000020807 Class C 0000799084 S000007629 International Equity C000020811 Class A C000020812 Class B C000020813 Class C C000020814 Class I 0000799084 S000007630 SunAmerica Value Fund C000020815 Class A C000020816 Class B C000020817 Class C C000020818 Class Z C000020819 Class I 0000799084 S000012533 SunAmerica International Small-Cap Fund C000034072 Class A C000034073 Class B C000034074 Class C N-CSRS 1 dncsrs.txt SUNAMERICA EQUITY FUNDS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-04801 --------------------------------------------- SunAmerica Equity Funds - -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) Harborside Financial Center, 3200 Plaza 5 Jersey City, NJ 07311 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Vincent M. Marra Senior Vice President 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) 324-6464 ----------------------------- Date of fiscal year end: September 30 -------------------------- Date of reporting period: March 31, 2007 ------------------------- Item 1. Reports to Stockholders SunAmerica 2007 - --------------- [PHOTO] Semi-annual Report [GRAPHIC] Equity Funds [LOGO] AIG SunAmerica Mutual Funds March 31, 2007 SEMI-ANNUAL REPORT SUNAMERICA EQUITY FUNDS SunAmerica Blue Chip Growth Fund (SVLAX) SunAmerica Growth Opportunities Fund (SGWAX) SunAmerica New Century Fund (SEGAX) SunAmerica Growth and Income Fund (SEIAX) SunAmerica Balanced Assets Fund (SBAAX) SunAmerica International Equity Fund (SIEAX) SunAmerica Value Fund (SSVAX) Tax Managed Equity Fund* (TXMAX) SunAmerica International Small-Cap Fund (SAESX) * As of May 15, 2007, the name of the SunAmerica Tax Managed Equity Fund was changed to the SunAmerica Disciplined Growth Fund. Table of Contents SHAREHOLDER LETTER.......................................................... 2 EXPENSE EXAMPLE............................................................. 3 STATEMENT OF ASSETS AND LIABILITIES......................................... 6 STATEMENT OF OPERATIONS..................................................... 10 STATEMENT OF CHANGES IN NET ASSETS.......................................... 13 FINANCIAL HIGHLIGHTS........................................................ 18 PORTFOLIO OF INVESTMENTS.................................................... 27 NOTES TO FINANCIAL STATEMENTS............................................... 68 RESULTS OF SPECIAL MEETING OF SHAREHOLDERS.................................. 90 TRUSTEE AND OFFICER INFORMATION............................................. 91
Shareholder Letter Dear Shareholder: We are pleased to present the semi-annual report for the SunAmerica Equity Funds. This report contains investment portfolio information and financial statements for the six-month period ending March 31, 2007. During the past six months, domestic equities rose across the board, as the Dow Jones Industrial Average, S&P 500 and NASDAQ Composite returned 7.01%, 7.38%, and 7.62%, respectively. International equities remained strong with the MSCI EAFE* Index returning 14.85% for the six-month period The market appreciation during the six-month period was broad-based, as all industry sectors and asset classes posted positive returns. Overall, market leadership was provided by the mid-cap and small-cap categories, and value indices generally outperformed their growth counterparts. In terms of sectors, three of the smallest S&P 500 constituents, the Materials, Utilities and Telecommunications sectors, were the top contributors, while three of the largest industry segments, the Information Technology, Healthcare and Financial categories were the principal laggards during the six-month period. The semi-annual period began on a strong note as the Federal Open Market Committee (FOMC) continued to keep its key monetary target unchanged at its regularly scheduled meetings in October and December. Strong corporate earnings reports and a downward slide in oil prices also helped lift U.S. equities to new highs. As we began the New Year, questions remained on both the direction of the economy and the markets. The economic debate centered around the future level of U.S. Gross Domestic Product (G.D.P.) growth and what that meant for Federal Reserve policy. While there were many differing views, the debate broke down into two basic camps. The first believed that the U.S. economy--driven by the housing sector--was slowing down dramatically and that inflation, which is a lagging indicator, was under control and would come down as the economy decelerated. They expected that this would result in the Federal Reserve cutting interest rates. The second camp acknowledged that the economy had slowed down but believed that this was merely a mid-cycle correction. They believed that growth would reaccelerate and that the Fed would need to tighten further in order to slow down the economy and head-off inflation. The equity market rally continued through January 2007 in anticipation of moderate economic activity and a more benign Federal Reserve. However, market pressures returned as the sub-prime mortgage market continued to deteriorate and fears of a weakening economy increased volatility. After a sell-off in the Chinese equities markets, the U.S. markets experienced a decline in February. However, the domestic markets rebounded in March and the equity and fixed income markets ended the quarter with negligible, yet mostly positive results. All of our funds provided positive returns over the six-month period. The SunAmerica Growth Opportunities Fund, Tax Managed Equity Fund, and SunAmerica New Century Fund were all in the top quartile of their respective Lipper peer groups for the semi-annual period, while the SunAmerica International Small-Cap Fund was in the top half of its Lipper peer group for this period. Thank you for your continued investment in our Funds. We encourage you to visit our website www.sunamericafunds.com for more information. Sincerely, The SunAmerica Equity Funds Investment Professionals AIG SunAmerica Asset Management Corp. AIG Global Investment Corp. - --------------------------- John Massey Ben Barrett Kara Murphy Hans Danielsson Steven Neimeth Soraya Benitez Sandra Salas Robin Thorn Paul Ma Michael Beaulieu Andrew Sheridan Chantal Brennan Jay Rushin Allison Larkin Brendan Voege Ming Hsu Gregory Parker Noriko Umino
- -------- Past performance is no guarantee of future results. * The Morgan Stanley Capital International (MSCI) Europe, Australia and Far East (EAFE) Index is a representative benchmark used to measure the performance of the International stock market as a whole, in U.S. dollar terms. 2 SunAmerica Equity Funds EXPENSE EXAMPLE -- March 31, 2007 -- (unaudited) Disclosure of Portfolio Expenses in Shareholder Reports As a shareholder of a Fund in the SunAmerica Equity Funds (the "Trust"), you may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges, redemption fees (applicable to Class A of International Equity Fund and International Small-Cap Fund only) and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. The Example set forth below is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at October 1, 2006 and held until March 31, 2007. Actual Expenses The "Actual" section of the table provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the column under the heading entitled "Expenses Paid During the six months ended March 31, 2007" to estimate the expenses you paid on your account during this period. For shareholder accounts in classes other than Class I and Class Z the "Expenses Paid During the six months ended March 31, 2007" column does not include small account fees that may be charged if your account balance is below $500 ($250 for retirement plan accounts). In addition, the "Expenses Paid During the six months ended March 31, 2007" column does not include administrative fees that may apply to qualified retirement plan accounts. See the Funds' prospectus and/or your retirement plan documents for full description of these fees. Had these fees been included, the "Expenses Paid During the six months ended March 31, 2007" column would have been higher and the "Ending Account Value" would have been lower. Hypothetical Example for Comparison Purposes The "Hypothetical" section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. For shareholder accounts in classes other than Class I and Class Z the "Expenses Paid During the six months ended March 31, 2007" column does not include small account fees that may be charged if your account balance is below $500 ($250 for retirement plan accounts). In addition, the "Expenses Paid During the six months ended March 31, 2007" column does not include administrative fees that may apply to qualified retirement plan accounts. See the Funds' prospectus and/or your retirement plan document for full description of these fees. Had these fees been included, the "Expenses Paid During the six months ended March 31, 2007" column would have been higher and the "Ending Account Value" would have been lower. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, including sales charges on purchase payments, contingent deferred sales charges, redemption fees (applicable to Class A of International Equity Fund and International Small-Cap Fund only); small account fees and administrative fees, if applicable to your account. Please refer to the Fund's prospectus and/or qualified retirement plan document for more information. Therefore, the "Hypothetical" example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs and other fees were included, your costs would have been higher. 3 SunAmerica Equity Funds EXPENSE EXAMPLE -- March 31, 2007 -- (unaudited) (continued)
Actual Hypothetical ----------------------------------------- -------------------------------------------------- Ending Account Ending Account Expense Paid Value using Value Using During the a Hypothetical Expense Paid Expense Beginning Actual Period Beginning 5% Assumed During the Ratio Account Value Return at Ended Account Value Return at Period Ended as of at October 1, March 31, March 31, at October 1, March 31, March 31, March 31, Fund 2006 2007 2007 2006 2007 2007 2007 * - ---- ------------- -------------- ------------ ------------- -------------- ------------ --------- Blue Chip Growth Fund@ Class A# ................. $1,000.00 $1,056.72 $ 8.26 $1,000.00 $1,016.90 $ 8.10 1.61% Class B#.................. $1,000.00 $1,051.65 $12.23 $1,000.00 $1,013.15 $12.00 2.39% Class C# ................. $1,000.00 $1,050.51 $13.24 $1,000.00 $1,012.15 $12.99 2.59% Class I#.................. $1,000.00 $1,057.97 $ 6.72 $1,000.00 $1,018.40 $ 6.59 1.31% Growth Opportunities Fund@ Class A# ................. $1,000.00 $1,153.17 $ 8.80 $1,000.00 $1,016.89 $ 8.25 1.64% Class B#.................. $1,000.00 $1,149.67 $12.38 $1,000.00 $1,013.55 $11.60 2.31% Class C# ................. $1,000.00 $1,148.54 $12.80 $1,000.00 $1,013.01 $11.99 2.39% Class I#.................. $1,000.00 $1,157.01 $ 7.10 $1,000.00 $1,018.49 $ 6.64 1.32% New Century Fund@ Class A .................. $1,000.00 $1,148.92 $ 8.46 $1,000.00 $1,017.05 $ 7.95 1.58% Class B................... $1,000.00 $1,144.26 $13.04 $1,000.00 $1,012.76 $12.24 2.44% Class C# ................. $1,000.00 $1,145.39 $11.45 $1,000.00 $1,014.26 $10.75 2.14% Growth and Income Fund@ Class A# ................. $1,000.00 $1,063.29 $ 7.82 $1,000.00 $1,017.35 $ 7.64 1.52% Class B#.................. $1,000.00 $1,059.29 $11.30 $1,000.00 $1,013.96 $11.05 2.20% Class C# ................. $1,000.00 $1,060.17 $11.30 $1,000.00 $1,014.10 $11.05 2.20% Class I#.................. $1,000.00 $1,064.59 $ 6.69 $1,000.00 $1,018.45 $ 6.54 1.30% Balanced Assets Fund@ Class A# ................. $1,000.00 $1,050.00 $ 8.02 $1,000.00 $1,017.10 $ 7.90 1.57% Class B#.................. $1,000.00 $1,046.20 $11.78 $1,000.00 $1,013.41 $11.60 2.31% Class C# ................. $1,000.00 $1,046.83 $11.63 $1,000.00 $1,013.56 $11.45 2.28% Class I#.................. $1,000.00 $1,051.74 $ 6.70 $1,000.00 $1,018.40 $ 6.59 1.31% International Equity Fund Class A# ................. $1,000.00 $1,118.06 $10.03 $1,000.00 $1,015.59 $ 9.55 1.90% Class B#.................. $1,000.00 $1,114.48 $13.44 $1,000.00 $1,012.22 $12.79 2.55% Class C# ................. $1,000.00 $1,113.88 $13.44 $1,000.00 $1,012.22 $12.79 2.55% Class I#.................. $1,000.00 $1,118.42 $ 9.51 $1,000.00 $1,015.96 $ 9.05 1.80% Value Fund@ Class A# ................. $1,000.00 $1,066.30 $ 8.40 $1,000.00 $1,016.80 $ 8.20 1.63% Class B#.................. $1,000.00 $1,062.97 $11.73 $1,000.00 $1,013.56 $11.45 2.28% Class C# ................. $1,000.00 $1,062.97 $11.73 $1,000.00 $1,013.56 $11.45 2.28% Class I#.................. $1,000.00 $1,066.42 $ 7.88 $1,000.00 $1,017.44 $ 7.70 1.53% Class Z# ................. $1,000.00 $1,069.46 $ 5.47 $1,000.00 $1,019.65 $ 5.34 1.06% Tax Managed Equity Fund@ Class A# ................. $1,000.00 $1,093.13 $ 7.57 $1,000.00 $1,017.84 $ 7.29 1.45% Class B#.................. $1,000.00 $1,089.83 $10.94 $1,000.00 $1,014.46 $10.55 2.10% Class C# ................. $1,000.00 $1,088.89 $10.94 $1,000.00 $1,014.46 $10.55 2.10% International Small-Cap Fund Class A# ................. $1,000.00 $1,196.38 $10.40 $1,000.00 $1,015.46 $ 9.55 1.90% Class B#.................. $1,000.00 $1,193.28 $13.94 $1,000.00 $1,012.22 $12.79 2.55% Class C# ................. $1,000.00 $1,192.38 $13.94 $1,000.00 $1,012.35 $12.79 2.55%
- -------- * Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by 182 days divided by 365 days. These ratios do not reflect transaction costs, including sales charges on purchase payments, contingent deferred sales charges, redemption fees (International Equity Fund and International Small-Cap Fund only), small account fees and administrative fees, if applicable to your account. Please refer to your Prospectus and/or qualified retirement plan document for more information. # During the stated period, the investment adviser either waived a portion of or all of the fees and assumed a portion of or all expenses for the Funds or through recoupment provisions, recovered a portion of or all fees and expenses waived or reimbursed in the previous two fiscal years. As a result, if these fees and expenses had not been waived or assumed, the "Actual/Hypothetical Ending Account Value" would have been lower and the "Actual/Hypothetical Expenses Paid During the Period" and the "Expense Ratios" would have been higher. If these fees and expenses had not been recouped, the "Actual/Hypothetical Ending Account Value" would have been higher and the "Actual/Hypothetical Expenses Paid During the Period Ended March 31, 2007" and "Expense Ratios" would have been lower. @ Through expense offset arrangements resulting from broker commission recapture, a portion of the Fund's expenses have been reduced. Had the expense reductions been applied, the Expense Example would have been as follows: 4 SunAmerica Equity Funds EXPENSE EXAMPLE -- March 31, 2007 -- (unaudited) (continued)
Actual Hypothetical ----------------------------------------- ----------------------------------------- Ending Account Ending Account Expense Paid Value using Expense Paid Value Using During the a Hypothetical During the Expense Beginning Actual Period Beginning 5% Assumed Period Ratio Account Value Return at Ended Account Value Return at Ended as of at October 1, March 31, March 31, at October 1, March 31, March 31, March 31, Fund 2006 2007 2007 2006 2007 2007 2007 * - ---- ------------- -------------- ------------ ------------- -------------- ------------ --------- Blue Chip Growth Fund Class A# .............. $1,000.00 $1,056.72 $ 8.15 $1,000.00 $1,017.00 $ 8.00 1.59% Class B#............... $1,000.00 $1,051.65 $12.12 $1,000.00 $1,013.11 $11.90 2.37% Class C# .............. $1,000.00 $1,051.51 $13.14 $1,000.00 $1,012.12 $12.89 2.57% Class I#............... $1,000.00 $1,057.97 $ 6.62 $1,000.00 $1,018.50 $ 6.49 1.29% Growth Opportunities Fund Class A# .............. $1,000.00 $1,153.17 $ 8.59 $1,000.00 $1,016.95 $ 8.05 1.60% Class B#............... $1,000.00 $1,149.67 $12.17 $1,000.00 $1,013.61 $11.40 2.27% Class C# .............. $1,000.00 $1,148.54 $12.59 $1,000.00 $1,013.21 $11.80 2.35% Class I#............... $1,000.00 $1,157.01 $ 6.88 $1,000.00 $1,018.55 $ 6.44 1.28% New Century Fund Class A ............... $1,000.00 $1,148.92 $ 8.36 $1,000.00 $1,017.15 $ 7.85 1.56% Class B................ $1,000.00 $1,144.26 $12.94 $1,000.00 $1,012.86 $12.14 2.42% Class C# .............. $1,000.00 $1,145.39 $11.34 $1,000.00 $1,014.36 $10.65 2.12% Growth and Income Fund Class A# .............. $1,000.00 $1,063.29 $ 7.77 $1,000.00 $1,017.40 $ 7.59 1.51% Class B#............... $1,000.00 $1,059.29 $11.24 $1,000.00 $1,014.01 $11.00 2.19% Class C# .............. $1,000.00 $1,060.17 $11.25 $1,000.00 $1,014.01 $11.00 2.19% Class I#............... $1,000.00 $1,064.59 $ 6.64 $1,000.00 $1,018.50 $ 6.49 1.29% Balanced Assets Fund Class A# .............. $1,000.00 $1,050.00 $ 7.97 $1,000.00 $1,017.15 $ 7.85 1.56% Class B#............... $1,000.00 $1,046.20 $11.73 $1,000.00 $1,013.46 $11.55 2.30% Class C# .............. $1,000.00 $1,046.83 $11.58 $1,000.00 $1,013.61 $11.40 2.27% Class I#............... $1,000.00 $1,051.74 $ 6.65 $1,000.00 $1,018.45 $ 6.54 1.30% Value Fund Class A# .............. $1,000.00 $1,066.30 $ 8.35 $1,000.00 $1,016.85 $ 8.15 1.62% Class B#............... $1,000.00 $1,062.97 $11.68 $1,000.00 $1,013.61 $11.40 2.27% Class C# .............. $1,000.00 $1,062.97 $11.68 $1,000.00 $1,013.61 $11.40 2.27% Class I#............... $1,000.00 $1,066.42 $ 7.83 $1,000.00 $1,017.35 $ 7.64 1.52% Class Z# .............. $1,000.00 $1,069.46 $ 5.42 $1,000.00 $1,019.70 $ 5.29 1.05% Tax Managed Equity Fund Class A# .............. $1,000.00 $1,093.13 $ 6.52 $1,000.00 $1,018.70 $ 6.29 1.25% Class B#............... $1,000.00 $1,089.83 $ 9.85 $1,000.00 $1,015.51 $ 9.50 1.89% Class C# .............. $1,000.00 $1,088.89 $ 9.95 $1,000.00 $1,015.41 $ 9.60 1.91%
5 SunAmerica Equity Funds STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2007 -- (unaudited)
Blue Chip Growth New Growth Opportunities Century Fund Fund Fund ------------ ------------- ------------ ASSETS: Long-term investment securities, at value (unaffiliated)*................. $ 65,773,184 $ 63,232,879 $ 89,782,984 Short-term investment securities, at value (unaffiliated)*................ -- -- -- Repurchase agreements (cost equals market value).......................... 2,280,000 5,722,000 21,302,000 ------------ ------------- ------------ Total investments....................................................... 68,053,184 68,954,879 111,084,984 ------------ ------------- ------------ Cash...................................................................... 771 1,912 337,702 Foreign cash*............................................................. -- -- -- Receivable for: Fund shares sold........................................................ 5,944 51,468 19,261 Dividends and interest.................................................. 59,197 16,674 93,259 Investments sold........................................................ 68,822 1,988,333 4,368,634 Prepaid expenses and other assets......................................... 9,120 35,198 12,309 Due from investment adviser for expense reimbursements/fee waivers........ 3,900 3,005 5,609 ------------ ------------- ------------ Total assets.............................................................. 68,200,938 71,051,469 115,921,758 ------------ ------------- ------------ LIABILITIES: Payable for: Fund shares redeemed.................................................... 127,974 52,592 108,550 Investments purchased................................................... 149,946 1,200,840 4,851,005 Investment advisory and management fees................................. 43,150 44,245 62,537 Distribution and service maintenance fees............................... 31,110 37,548 36,704 Transfer agent fees and expenses........................................ 29,947 28,023 35,400 Trustees' fees and expenses............................................. 29,146 24,909 50,879 Other accrued expenses.................................................. 91,700 118,270 161,263 Interest on securities sold short....................................... -- -- -- Line of credit.......................................................... -- -- -- Securities sold short, at value#.......................................... -- -- -- ------------ ------------- ------------ Total liabilities......................................................... 502,973 1,506,427 5,306,338 ------------ ------------- ------------ Net Assets................................................................ $ 67,697,965 $ 69,545,042 $110,615,420 ============ ============= ============ NET ASSETS REPRESENTED BY: Shares of beneficial interest, $.01 par value............................. $ 42,402 $ 37,452 $ 53,135 Paid-in capital........................................................... 133,383,470 262,168,428 188,911,885 ------------ ------------- ------------ 133,425,872 262,205,880 188,965,020 Accumulated undistributed net investment income (loss).................... (193,770) (372,249) (84,412) Accumulated undistributed net realized gain (loss) on investments, futures contracts, options contracts, securities sold short and foreign exchange transactions............................................................. (70,091,746) (194,258,053) (80,283,634) Unrealized appreciation (depreciation) on investments..................... 4,557,512 1,969,464 2,017,935 Unrealized foreign exchange gain (loss) on other assets and liabilities... 97 -- 511 Unrealized appreciation (depreciation) on securities sold short........... -- -- -- Accrued capital gains tax on unrealized appreciation (depreciation)....... -- -- -- ------------ ------------- ------------ Net Assets.............................................................. $ 67,697,965 $ 69,545,042 $110,615,420 ============ ============= ============ *Cost Long-term investment securities (unaffiliated).......................... $ 61,215,672 $ 61,263,415 $ 87,765,049 ============ ============= ============ Short-term investment securities (unaffiliated)......................... $ -- $ -- $ -- ============ ============= ============ Foreign cash............................................................ $ -- $ -- $ -- ============ ============= ============ #Proceeds from securities sold short...................................... $ -- $ -- $ -- ============ ============= ============
Growth and Balanced Income Assets Fund Fund ------------ ------------ ASSETS: Long-term investment securities, at value (unaffiliated)*................. $109,535,039 $156,836,643 Short-term investment securities, at value (unaffiliated)*................ -- -- Repurchase agreements (cost equals market value).......................... -- 2,153,000 ------------ ------------ Total investments....................................................... 109,535,039 158,989,643 ------------ ------------ Cash...................................................................... -- 3,455 Foreign cash*............................................................. -- -- Receivable for: Fund shares sold........................................................ 36,207 14,564 Dividends and interest.................................................. 136,588 660,417 Investments sold........................................................ 3,381,713 2,217,159 Prepaid expenses and other assets......................................... 12,826 11,545 Due from investment adviser for expense reimbursements/fee waivers........ 2,663 6,392 ------------ ------------ Total assets.............................................................. 113,105,036 161,903,175 ------------ ------------ LIABILITIES: Payable for: Fund shares redeemed.................................................... 272,144 109,145 Investments purchased................................................... 1,519,415 4,687,277 Investment advisory and management fees................................. 70,158 99,414 Distribution and service maintenance fees............................... 58,969 64,388 Transfer agent fees and expenses........................................ 45,302 65,596 Trustees' fees and expenses............................................. 38,754 79,395 Other accrued expenses.................................................. 91,734 160,319 Interest on securities sold short....................................... -- 1,008 Line of credit.......................................................... 648,482 -- Securities sold short, at value#.......................................... -- 637,725 ------------ ------------ Total liabilities......................................................... 2,744,958 5,904,267 ------------ ------------ Net Assets................................................................ $110,360,078 $155,998,908 ============ ============ NET ASSETS REPRESENTED BY: Shares of beneficial interest, $.01 par value............................. $ 79,468 $ 105,000 Paid-in capital........................................................... 146,305,576 221,279,564 ------------ ------------ 146,385,044 221,384,564 Accumulated undistributed net investment income (loss).................... 46,845 245,300 Accumulated undistributed net realized gain (loss) on investments, futures contracts, options contracts, securities sold short and foreign exchange transactions............................................................. (42,644,072) (73,536,922) Unrealized appreciation (depreciation) on investments..................... 6,572,024 7,905,148 Unrealized foreign exchange gain (loss) on other assets and liabilities... 237 199 Unrealized appreciation (depreciation) on securities sold short........... -- 619 Accrued capital gains tax on unrealized appreciation (depreciation)....... -- -- ------------ ------------ Net Assets.............................................................. $110,360,078 $155,998,908 ============ ============ *Cost Long-term investment securities (unaffiliated).......................... $102,963,015 $148,931,495 ============ ============ Short-term investment securities (unaffiliated)......................... $ -- $ -- ============ ============ Foreign cash............................................................ $ -- $ -- ============ ============ #Proceeds from securities sold short...................................... $ -- $ 638,344 ============ ============
See Notes to Financial Statements 6 SunAmerica Equity Funds STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2007 -- (unaudited) (continued)
Blue Chip Growth New Growth and Balanced Growth Opportunities Century Income Assets Fund Fund Fund Fund Fund ----------- ------------- ----------- ----------- ------------ Class A (unlimited shares authorized): Net assets.................................................. $47,459,732 $39,000,352 $90,360,128 $62,971,916 $122,961,396 Shares of beneficial interest issued and outstanding........ 2,863,321 1,985,248 4,228,730 4,409,908 8,273,957 Net asset value and redemption price per share.............. $ 16.58 $ 19.65 $ 21.37 $ 14.28 $ 14.86 Maximum sales charge (5.75% of offering price).............. 1.01 1.20 1.30 0.87 0.91 ----------- ----------- ----------- ----------- ------------ Maximum offering price to public............................ $ 17.59 $ 20.85 $ 22.67 $ 15.15 $ 15.77 =========== =========== =========== =========== ============ Class B (unlimited shares authorized): Net assets.................................................. $15,568,339 $20,578,138 $13,597,938 $22,398,812 $ 17,679,477 Shares of beneficial interest issued and outstanding........ 1,061,657 1,185,617 729,631 1,671,533 1,192,319 Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge) $ 14.66 $ 17.36 $ 18.64 $ 13.40 $ 14.83 =========== =========== =========== =========== ============ Class C (unlimited shares authorized): Net assets.................................................. $ 4,074,225 $ 9,823,681 $ 6,657,354 $24,677,884 $ 14,649,185 Shares of beneficial interest issued and outstanding........ 279,774 567,187 355,100 1,843,598 986,112 Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge) $ 14.56 $ 17.32 $ 18.75 $ 13.39 $ 14.86 =========== =========== =========== =========== ============ Class I (unlimited shares authorized): Net assets.................................................. $ 595,669 $ 142,871 $ -- $ 311,466 $ 708,850 Shares of beneficial interest issued and outstanding........ 35,478 7,156 -- 21,724 47,614 Net asset value, offering and redemption price per share.... $ 16.79 $ 19.97 $ -- $ 14.34 $ 14.89 =========== =========== =========== =========== ============ Class Z (unlimited shares authorized): Net assets.................................................. $ -- $ -- $ -- $ -- $ -- Shares of beneficial interest issued and outstanding........ -- -- -- -- -- Net asset value, offering and redemption price per share.... $ -- $ -- $ -- $ -- $ -- =========== =========== =========== =========== ============
See Notes to Financial Statements 7 SunAmerica Equity Funds STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2007 -- (unaudited) (continued)
International Equity Fund ------------- ASSETS: Long-term investment securities, at value (unaffiliated)*............................................... $122,004,110 Short-term investment securities, at value (unaffiliated)*.............................................. -- Repurchase agreements (cost equals market value)........................................................ 1,840,000 ------------ Total investments..................................................................................... 123,844,110 ------------ Cash.................................................................................................... 1,394 Foreign cash*........................................................................................... -- Receivable for: Fund shares sold...................................................................................... 83,469 Dividends and interest................................................................................ 437,746 Investments sold...................................................................................... 332,571 Prepaid expenses and other assets....................................................................... 3,750 Due from investment adviser for expense reimbursements/fee waivers...................................... 28,681 ------------ Total assets............................................................................................ 124,731,721 ------------ LIABILITIES: Payable for: Fund shares redeemed.................................................................................. 141,663 Investments purchased................................................................................. 335,552 Investment advisory and management fees............................................................... 102,547 Distribution and service maintenance fees............................................................. 59,673 Transfer agent fees and expenses...................................................................... 36,482 Trustees' fees and expenses........................................................................... 18,381 Other accrued expenses................................................................................ 144,833 Interest on securities sold short..................................................................... -- Line of credit........................................................................................ -- Due to custodian for foreign cash....................................................................... 898,884 Securities sold short, at value#........................................................................ -- ------------ Total liabilities....................................................................................... 1,738,015 ------------ Net Assets.............................................................................................. $122,993,706 ============ NET ASSETS REPRESENTED BY: Shares of beneficial interest, $.01 par value........................................................... $ 71,213 Paid-in capital......................................................................................... 119,371,771 ------------ 119,442,984 Accumulated undistributed net investment income (loss).................................................. (683,237) Accumulated undistributed net realized gain (loss) on investments, futures contracts, options contracts, securities sold short and foreign exchange transactions................................................ (10,181,139) Unrealized appreciation (depreciation) on investments................................................... 14,406,398 Unrealized foreign exchange gain (loss) on other assets and liabilities................................. 8,700 Unrealized appreciation (depreciation) on securities sold short......................................... -- Accrued capital gains tax on unrealized appreciation (depreciation)..................................... -- ------------ Net Assets............................................................................................ $122,993,706 ============ *Cost Long-term investment securities (unaffiliated)........................................................ $107,597,712 ============ Short-term investment securities (unaffiliated)....................................................... $ -- ============ Foreign cash.......................................................................................... $ (900,694) ============ #Proceeds from securities sold short.................................................................... $ -- ============
Value Fund ------------ ASSETS: Long-term investment securities, at value (unaffiliated)*............................................... $224,717,006 Short-term investment securities, at value (unaffiliated)*.............................................. -- Repurchase agreements (cost equals market value)........................................................ 3,125,000 ------------ Total investments..................................................................................... 227,842,006 ------------ Cash.................................................................................................... 164 Foreign cash*........................................................................................... -- Receivable for: Fund shares sold...................................................................................... 396,679 Dividends and interest................................................................................ 310,789 Investments sold...................................................................................... 2,386,931 Prepaid expenses and other assets....................................................................... 30,131 Due from investment adviser for expense reimbursements/fee waivers...................................... 56,371 ------------ Total assets............................................................................................ 231,023,071 ------------ LIABILITIES: Payable for: Fund shares redeemed.................................................................................. 331,672 Investments purchased................................................................................. -- Investment advisory and management fees............................................................... 194,090 Distribution and service maintenance fees............................................................. 101,349 Transfer agent fees and expenses...................................................................... 64,796 Trustees' fees and expenses........................................................................... 32,184 Other accrued expenses................................................................................ 125,054 Interest on securities sold short..................................................................... -- Line of credit........................................................................................ -- Due to custodian for foreign cash....................................................................... -- Securities sold short, at value#........................................................................ -- ------------ Total liabilities....................................................................................... 849,145 ------------ Net Assets.............................................................................................. $230,173,926 ============ NET ASSETS REPRESENTED BY: Shares of beneficial interest, $.01 par value........................................................... $ 131,093 Paid-in capital......................................................................................... 198,898,994 ------------ 199,030,087 Accumulated undistributed net investment income (loss).................................................. 605,550 Accumulated undistributed net realized gain (loss) on investments, futures contracts, options contracts, securities sold short and foreign exchange transactions................................................ 11,728,628 Unrealized appreciation (depreciation) on investments................................................... 18,809,027 Unrealized foreign exchange gain (loss) on other assets and liabilities................................. 634 Unrealized appreciation (depreciation) on securities sold short......................................... -- Accrued capital gains tax on unrealized appreciation (depreciation)..................................... -- ------------ Net Assets............................................................................................ $230,173,926 ============ *Cost Long-term investment securities (unaffiliated)........................................................ $205,907,979 ============ Short-term investment securities (unaffiliated)....................................................... $ -- ============ Foreign cash.......................................................................................... $ -- ============ #Proceeds from securities sold short.................................................................... $ -- ============
Tax Managed Equity Fund ------------ ASSETS: Long-term investment securities, at value (unaffiliated)*............................................... $ 53,851,037 Short-term investment securities, at value (unaffiliated)*.............................................. -- Repurchase agreements (cost equals market value)........................................................ 1,005,000 ------------ Total investments..................................................................................... 54,856,037 ------------ Cash.................................................................................................... 847 Foreign cash*........................................................................................... 32,567 Receivable for: Fund shares sold...................................................................................... 30,645 Dividends and interest................................................................................ 46,879 Investments sold...................................................................................... 1,425,477 Prepaid expenses and other assets....................................................................... 64,834 Due from investment adviser for expense reimbursements/fee waivers...................................... 57,472 ------------ Total assets............................................................................................ 56,514,758 ------------ LIABILITIES: Payable for: Fund shares redeemed.................................................................................. 31,119 Investments purchased................................................................................. 1,427,804 Investment advisory and management fees............................................................... 39,615 Distribution and service maintenance fees............................................................. 34,643 Transfer agent fees and expenses...................................................................... 14,589 Trustees' fees and expenses........................................................................... 10,916 Other accrued expenses................................................................................ 95,316 Interest on securities sold short..................................................................... -- Line of credit........................................................................................ -- Due to custodian for foreign cash....................................................................... -- Securities sold short, at value#........................................................................ -- ------------ Total liabilities....................................................................................... 1,654,002 ------------ Net Assets.............................................................................................. $ 54,860,756 ============ NET ASSETS REPRESENTED BY: Shares of beneficial interest, $.01 par value........................................................... $ 39,312 Paid-in capital......................................................................................... 76,142,227 ------------ 76,181,539 Accumulated undistributed net investment income (loss).................................................. (235,689) Accumulated undistributed net realized gain (loss) on investments, futures contracts, options contracts, securities sold short and foreign exchange transactions................................................ (24,285,008) Unrealized appreciation (depreciation) on investments................................................... 3,198,444 Unrealized foreign exchange gain (loss) on other assets and liabilities................................. 1,470 Unrealized appreciation (depreciation) on securities sold short......................................... -- Accrued capital gains tax on unrealized appreciation (depreciation)..................................... -- ------------ Net Assets............................................................................................ $ 54,860,756 ============ *Cost Long-term investment securities (unaffiliated)........................................................ $ 50,652,593 ============ Short-term investment securities (unaffiliated)....................................................... $ -- ============ Foreign cash.......................................................................................... $ 31,121 ============ #Proceeds from securities sold short.................................................................... $ -- ============
International Small-Cap Fund ------------- ASSETS: Long-term investment securities, at value (unaffiliated)*............................................... $30,969,659 Short-term investment securities, at value (unaffiliated)*.............................................. 809,000 Repurchase agreements (cost equals market value)........................................................ -- ----------- Total investments..................................................................................... 31,778,659 ----------- Cash.................................................................................................... 839 Foreign cash*........................................................................................... 394,044 Receivable for: Fund shares sold...................................................................................... 74,974 Dividends and interest................................................................................ 48,820 Investments sold...................................................................................... 445,568 Prepaid expenses and other assets....................................................................... 3,300 Due from investment adviser for expense reimbursements/fee waivers...................................... 17,629 ----------- Total assets............................................................................................ 32,763,833 ----------- LIABILITIES: Payable for: Fund shares redeemed.................................................................................. 22,165 Investments purchased................................................................................. 520,684 Investment advisory and management fees............................................................... 30,008 Distribution and service maintenance fees............................................................. 11,551 Transfer agent fees and expenses...................................................................... 7,196 Trustees' fees and expenses........................................................................... 291 Other accrued expenses................................................................................ 95,949 Interest on securities sold short..................................................................... -- Line of credit........................................................................................ -- Due to custodian for foreign cash....................................................................... -- Securities sold short, at value#........................................................................ -- ----------- Total liabilities....................................................................................... 687,844 ----------- Net Assets.............................................................................................. $32,075,989 =========== NET ASSETS REPRESENTED BY: Shares of beneficial interest, $.01 par value........................................................... $ 24,284 Paid-in capital......................................................................................... 29,582,793 ----------- 29,607,077 Accumulated undistributed net investment income (loss).................................................. (158,297) Accumulated undistributed net realized gain (loss) on investments, futures contracts, options contracts, securities sold short and foreign exchange transactions................................................ (952,256) Unrealized appreciation (depreciation) on investments................................................... 3,579,877 Unrealized foreign exchange gain (loss) on other assets and liabilities................................. (412) Unrealized appreciation (depreciation) on securities sold short......................................... -- Accrued capital gains tax on unrealized appreciation (depreciation)..................................... -- ----------- Net Assets............................................................................................ $32,075,989 =========== *Cost Long-term investment securities (unaffiliated)........................................................ $27,389,782 =========== Short-term investment securities (unaffiliated)....................................................... $ 809,000 =========== Foreign cash.......................................................................................... $ 393,845 =========== #Proceeds from securities sold short.................................................................... $ -- ===========
See Notes to Financial Statements 8 SunAmerica Equity Funds STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2007 -- (unaudited) (continued)
International Tax Managed International Equity Value Equity Small-Cap Fund Fund Fund Fund ------------- ------------ ----------- ------------- Class A (unlimited shares authorized): Net assets.................................................. $68,720,293 $124,810,964 $22,039,223 $27,488,161 Shares of beneficial interest issued and outstanding........ 3,880,688 7,015,412 1,539,417 2,079,383 Net asset value and redemption price per share.............. $ 17.71 $ 17.79 $ 14.32 $ 13.22 Maximum sales charge (5.75% of offering price).............. 1.08 1.09 0.87 0.81 ----------- ------------ ----------- ----------- Maximum offering price to public............................ $ 18.79 $ 18.88 $ 15.19 $ 14.03 =========== ============ =========== =========== Class B (unlimited shares authorized): Net assets.................................................. $21,121,173 $ 43,509,555 $ 6,542,963 $ 880,108 Shares of beneficial interest issued and outstanding........ 1,276,270 2,581,619 477,172 66,936 Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge) $ 16.55 $ 16.85 $ 13.71 $ 13.15 =========== ============ =========== =========== Class C (unlimited shares authorized): Net assets.................................................. $23,945,384 $ 32,044,588 $26,278,570 $ 3,707,720 Shares of beneficial interest issued and outstanding........ 1,448,454 1,901,689 1,914,656 282,084 Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge) $ 16.53 $ 16.85 $ 13.72 $ 13.14 =========== ============ =========== =========== Class I (unlimited shares authorized): Net assets.................................................. $ 9,206,856 $ 33,055 $ -- $ -- Shares of beneficial interest issued and outstanding........ 515,878 1,860 -- -- Net asset value, offering and redemption price per share.... $ 17.85 $ 17.77 $ -- $ -- =========== ============ =========== =========== Class Z (unlimited shares authorized): Net assets.................................................. $ -- $ 29,775,764 $ -- $ -- Shares of beneficial interest issued and outstanding........ -- 1,608,681 -- -- Net asset value, offering and redemption price per share.... $ -- $ 18.51 $ -- $ -- =========== ============ =========== ===========
See Notes to Financial Statements 9 SunAmerica Equity Funds STATEMENT OF OPERATIONS -- For the period ended March 31, 2007 -- (unaudited)
Blue Chip Growth New Growth and Growth Opportunities Century Income Fund Fund Fund Fund ---------- ------------- ----------- ---------- INVESTMENT INCOME: Dividends (unaffiliated)................ $ 447,135 $ 121,590 $ 354,400 $1,066,929 Interest (unaffiliated)................. 38,569 204,878 350,461 58,472 ---------- ----------- ----------- ---------- Total investment income*.............. 485,704 326,468 704,861 1,125,401 ---------- ----------- ----------- ---------- EXPENSES: Investment advisory and management fees. 265,287 264,840 337,311 430,668 Distribution and service maintenance fees Class A............................... 85,335 68,155 139,871 110,187 Class B............................... 85,251 108,811 39,464 127,317 Class C............................... 21,489 48,217 10,652 130,544 Service fees Class I.................... 791 341 -- 386 Transfer agent fees and expenses Class A............................... 65,205 53,664 103,636 85,922 Class B............................... 26,990 32,250 11,568 35,262 Class C............................... 6,664 14,141 3,443 34,415 Class I............................... 314 369 -- -- Registration fees Class A............................... 10,695 13,198 17,013 10,520 Class B............................... 10,368 6,867 8,877 8,272 Class C............................... 7,200 7,429 9,342 9,843 Class I............................... 6,968 6,759 -- 6,851 Class Z............................... -- -- -- -- Custodian and accounting fees........... 26,584 32,637 31,512 25,877 Reports to shareholders................. 18,266 5,949 19,141 17,269 Audit and tax fees...................... 15,856 18,863 13,264 15,863 Legal fees.............................. 6,417 6,206 6,797 6,565 Trustees' fees and expenses............. 2,506 2,533 3,093 3,895 Interest expense........................ 56 -- -- 710 Other expenses.......................... 7,423 7,041 7,274 8,585 ---------- ----------- ----------- ---------- Total expenses before fee waivers, expense reimbursements, expense recoupments, custody credits and fees paid indirectly................. 669,665 698,270 762,258 1,068,951 Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4)..................... (13,997) (10,533) (10,473) (21,249) Custody credits earned on cash balances............................. (117) (622) (990) (22) Fees paid indirectly (Note 5)......... (5,500) (13,795) (8,635) (7,805) ---------- ----------- ----------- ---------- Net expenses.......................... 650,051 673,320 742,160 1,039,875 ---------- ----------- ----------- ---------- Net investment income (loss)............. (164,347) (346,852) (37,299) 85,526 ---------- ----------- ----------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES: Net realized gain (loss) on investments (unaffiliated)**........................ 2,263,355 10,581,797 13,292,608 6,706,797 Net realized foreign exchange gain (loss) on other assets and liabilities.. -- -- (193) -- Net realized gain (loss) on securities sold short.............................. -- -- -- -- ---------- ----------- ----------- ---------- Net realized gain (loss) on investments and foreign currencies.................. 2,263,355 10,581,797 13,292,415 6,706,797 ---------- ----------- ----------- ---------- Change in unrealized appreciation (depreciation) on investments (unaffiliated).......................... 1,762,901 (301,914) (224,143) 207,795 Change in unrealized foreign exchange gain (loss) on other assets and liabilities............................. 97 -- 511 237 Change in unrealized appreciation (depreciation) on securities sold short. -- -- -- -- Change in accrued capital gains tax on unrealized appreciation (depreciation).. -- -- -- -- ---------- ----------- ----------- ---------- Net unrealized gain (loss) on investments and foreign currencies...... 1,762,998 (301,914) (223,632) 208,032 ---------- ----------- ----------- ---------- Net realized and unrealized gain (loss) on investments and foreign currencies... 4,026,353 10,279,883 13,068,783 6,914,829 ---------- ----------- ----------- ---------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............... $3,862,006 $ 9,933,031 $13,031,484 $7,000,355 ========== =========== =========== ========== - -------- *Net of foreign withholding taxes on interest and dividends of............... $ 2,681 $ -- $ 9,200 $ 6,234 ========== =========== =========== ========== **Net of foreign withholding taxes on capital gains of........................ $ -- $ -- $ -- $ -- ========== =========== =========== ==========
See Notes to Financial Statements 10 SunAmerica Equity Funds STATEMENT OF OPERATIONS -- For the period ended March 31, 2007 -- (unaudited) (continued)
Balanced International Assets Equity Value Fund Fund Fund ---------- ------------- ----------- INVESTMENT INCOME: Dividends (unaffiliated)............................................................ $ 967,307 $ 706,035 $ 2,766,707 Interest (unaffiliated)............................................................. 1,920,417 11,892 212,097 ---------- ----------- ----------- Total investment income*........................................................... 2,887,724 717,927 2,978,804 ---------- ----------- ----------- EXPENSES: Investment advisory and management fees............................................. 605,069 602,003 1,169,883 Distribution and service maintenance fees Class A............................................................................ 220,734 116,795 219,926 Class B............................................................................ 97,308 108,903 234,947 Class C............................................................................ 75,072 115,164 171,222 Service fees Class I................................................................ 928 11,059 78 Transfer agent fees and expenses Class A............................................................................ 169,488 86,957 155,545 Class B............................................................................ 27,725 32,247 63,217 Class C............................................................................ 19,183 30,640 41,537 Class I............................................................................ 1,264 9,741 27 Registration fees Class A............................................................................ 13,444 13,427 13,941 Class B............................................................................ 8,903 8,924 10,123 Class C............................................................................ 7,284 10,297 10,655 Class I............................................................................ 6,903 7,588 7,940 Class Z............................................................................ -- -- 9,159 Custodian and accounting fees....................................................... 74,221 88,928 40,669 Reports to shareholders............................................................. 38,244 20,431 27,905 Audit and tax fees.................................................................. 24,471 16,708 18,514 Legal fees.......................................................................... 9,356 7,813 8,589 Trustees' fees and expenses......................................................... 5,483 4,378 7,994 Interest expense.................................................................... 244 1,049 -- Other expenses...................................................................... 9,956 8,194 11,268 ---------- ----------- ----------- Total expenses before fee waivers, expense reimbursements, expense recoupments, custody credits and fees paid indirectly.......................................... 1,415,280 1,301,246 2,223,139 Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4).. (23,821) (15,825) (129,187) Custody credits earned on cash balances............................................ (280) (396) (38) Fees paid indirectly (Note 5)...................................................... (7,481) -- (11,588) ---------- ----------- ----------- Net expenses....................................................................... 1,383,698 1,285,025 2,082,326 ---------- ----------- ----------- Net investment income (loss).......................................................... 1,504,026 (567,098) 896,478 ---------- ----------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES: Net realized gain (loss) on investments (unaffiliated)**.............................. 5,326,584 8,945,313 14,960,547 Net realized foreign exchange gain (loss) on other assets and liabilities............. (10) 33,135 -- Net realized gain (loss) on securities sold short..................................... 10,759 -- -- ---------- ----------- ----------- Net realized gain (loss) on investments and foreign currencies........................ 5,337,333 8,978,448 14,960,547 ---------- ----------- ----------- Change in unrealized appreciation (depreciation) on investments (unaffiliated)........ 1,034,821 4,771,582 (1,069,928) Change in unrealized foreign exchange gain (loss) on other assets and liabilities..... 199 8,106 634 Change in unrealized appreciation (depreciation) on securities sold short............. 467 -- -- Change in accrued capital gains tax on unrealized appreciation (depreciation)......... -- -- -- ---------- ----------- ----------- Net unrealized gain (loss) on investments and foreign currencies...................... 1,035,487 4,779,688 (1,069,294) ---------- ----------- ----------- Net realized and unrealized gain (loss) on investments and foreign currencies......... 6,372,820 13,758,136 13,891,253 ---------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $7,876,846 $13,191,038 $14,787,731 ========== =========== =========== - -------- *Net of foreign withholding taxes on interest and dividends of........................ $ 5,563 $ 41,376 $ 14,686 ========== =========== =========== **Net of foreign withholding taxes on capital gains of................................ $ -- $ 6 $ -- ========== =========== ===========
See Notes to Financial Statements 11 SunAmerica Equity Funds STATEMENT OF OPERATIONS -- For the period ended March 31, 2007 -- (unaudited) (continued)
Tax Managed International Equity Small-Cap Fund Fund ----------- ------------- INVESTMENT INCOME: Dividends (unaffiliated)............................................................ $ 267,929 $ 120,254 Interest (unaffiliated)............................................................. 32,542 4,669 ---------- ---------- Total investment income*........................................................... 300,471 124,923 ---------- ---------- EXPENSES: Investment advisory and management fees............................................. 243,558 163,497 Distribution and service maintenance fees Class A............................................................................ 38,588 42,710 Class B............................................................................ 41,147 3,371 Class C............................................................................ 135,141 16,773 Service fees Class I................................................................ -- -- Transfer agent fees and expenses Class A............................................................................ 28,414 27,038 Class B............................................................................ 11,123 300 Class C............................................................................ 33,107 3,560 Class I............................................................................ -- -- Registration fees Class A............................................................................ 18,082 11,502 Class B............................................................................ 11,608 11,398 Class C............................................................................ 16,779 11,779 Class I............................................................................ -- -- Class Z............................................................................ -- -- Custodian and accounting fees....................................................... 26,158 58,059 Reports to shareholders............................................................. 2,702 702 Audit and tax fees.................................................................. 21,634 19,446 Legal fees.......................................................................... 6,293 7,046 Trustees' fees and expenses......................................................... 2,371 500 Interest expense.................................................................... 10,923 -- Other expenses...................................................................... 12,496 4,640 ---------- ---------- Total expenses before fee waivers, expense reimbursements, expense recoupments, custody credits and fees paid indirectly.......................................... 660,124 382,321 Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4).. (128,867) (98,946) Custody credits earned on cash balances............................................ (1,188) (155) Fees paid indirectly (Note 5)...................................................... (56,488) -- ---------- ---------- Net expenses....................................................................... 473,581 283,220 ---------- ---------- Net investment income (loss).......................................................... (173,110) (158,297) ---------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES: Net realized gain (loss) on investments (unaffiliated)**.............................. 4,985,431 254,231 Net realized foreign exchange gain (loss) on other assets and liabilities............. 5,370 1,096 Net realized gain (loss) on securities sold short..................................... -- -- ---------- ---------- Net realized gain (loss) on investments and foreign currencies........................ 4,990,801 255,327 ---------- ---------- Change in unrealized appreciation (depreciation) on investments (unaffiliated)........ 226,434 4,946,110 Change in unrealized foreign exchange gain (loss) on other assets and liabilities..... 165 2,687 Change in unrealized appreciation (depreciation) on securities sold short............. -- -- Change in accrued capital gains tax on unrealized appreciation (depreciation)......... -- 149 ---------- ---------- Net unrealized gain (loss) on investments and foreign currencies...................... 226,599 4,948,946 ---------- ---------- Net realized and unrealized gain (loss) on investments and foreign currencies......... 5,217,400 5,204,273 ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $5,044,290 $5,045,976 ========== ========== - -------- *Net of foreign withholding taxes on interest and dividends of........................ $ 2,985 $ 8,315 ========== ========== **Net of foreign withholding taxes on capital gains of................................ $ -- $ 641 ========== ==========
See Notes to Financial Statements 12 SunAmerica Equity Funds STATEMENT OF CHANGES IN NET ASSETS
Blue Chip Growth Fund Growth Opportunities Fund ------------------------- ------------------------- For the For the six months six months ended For the year ended For the year March 31, ended March 31, ended 2007 September 30, 2007 September 30, (unaudited) 2006 (unaudited) 2006 ----------- ------------- ----------- ------------- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss)..................... $ (164,347) $ (532,478) $ (346,852) $ (791,253) Net realized gain (loss) on investments and foreign currencies............................. 2,263,355 5,198,168 10,581,797 13,948,650 Net unrealized gain (loss) on investments and foreign currencies............................. 1,762,998 (2,357,467) (301,914) (9,975,076) ----------- ------------ ----------- ------------ Net increase (decrease) in net assets resulting from operations.................................. 3,862,006 2,308,223 9,933,031 3,182,321 ----------- ------------ ----------- ------------ Distributions to shareholders from: Net investment income (Class A).................. -- -- -- -- Net investment income (Class B).................. -- -- -- -- Net investment income (Class C).................. -- -- -- -- Net investment income (Class I).................. -- -- -- -- Net investment income (Class Z).................. -- -- -- -- Net realized gain on securities (Class A)........ -- -- -- -- Net realized gain on securities (Class B)........ -- -- -- -- Net realized gain on securities (Class C)........ -- -- -- -- Net realized gain on securities (Class I)........ -- -- -- -- Net realized gain on securities (Class Z)........ -- -- -- -- ----------- ------------ ----------- ------------ Total distributions to shareholders............... -- -- -- -- ----------- ------------ ----------- ------------ Net increase (decrease) in net assets resulting from capital share transactions (Note 8)......... (8,352,052) (16,165,295) (8,972,470) (20,760,692) ----------- ------------ ----------- ------------ Total increase (decrease) in net assets........... (4,490,046) (13,857,072) 960,561 (17,578,371) NET ASSETS: Beginning of period............................... 72,188,011 86,045,083 68,584,481 86,162,852 ----------- ------------ ----------- ------------ End of period+.................................... $67,697,965 $ 72,188,011 $69,545,042 $ 68,584,481 =========== ============ =========== ============ - -------- +Includes accumulated undistributed net investment income (loss)......................... $ (193,770) $ (29,423) $ (372,249) $ (25,937) =========== ============ =========== ============
See Notes to Financial Statements 13 SunAmerica Equity Funds STATEMENT OF CHANGES IN NET ASSETS -- (continued)
New Century Fund -------------------------- For the six months ended For the year March 31, ended 2007 September 30, (unaudited) 2006 ------------ ------------- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss).......................................................... $ (37,299) $ (439,624) Net realized gain (loss) on investments and foreign currencies........................ 13,292,415 11,815,681 Net unrealized gain (loss) on investments and foreign currencies...................... (223,632) (8,389,295) ------------ ------------ Net increase (decrease) in net assets resulting from operations......................... 13,031,484 2,986,762 ------------ ------------ Distributions to shareholders from: Net investment income (Class A)....................................................... -- -- Net investment income (Class B)....................................................... -- -- Net investment income (Class C)....................................................... -- -- Net investment income (Class I)....................................................... -- -- Net investment income (Class Z)....................................................... -- -- Net realized gain on securities (Class A)............................................. -- -- Net realized gain on securities (Class B)............................................. -- -- Net realized gain on securities (Class C)............................................. -- -- Net realized gain on securities (Class I)............................................. -- -- Net realized gain on securities (Class Z)............................................. -- -- ------------ ------------ Total distributions to shareholders..................................................... -- -- ------------ ------------ Net increase (decrease) in net assets resulting from capital share transactions (Note 8) 12,618,473 (17,643,382) ------------ ------------ Total increase (decrease) in net assets................................................. 25,649,957 (14,656,620) NET ASSETS: Beginning of period..................................................................... 84,965,463 99,622,083 ============ ============ End of period+.......................................................................... $110,615,420 $ 84,965,463 ============ ============ - -------- +Includes accumulated undistributed net investment income (loss)........................ $ (84,412) $ (47,113) ============ ============
Growth and Income Fund -------------------------- For the six months ended For the year March 31, ended 2007 September 30, (unaudited) 2006 ------------ ------------- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss).......................................................... $ 85,526 $ (32,741) Net realized gain (loss) on investments and foreign currencies........................ 6,706,797 14,027,002 Net unrealized gain (loss) on investments and foreign currencies...................... 208,032 (4,359,123) ------------ ------------ Net increase (decrease) in net assets resulting from operations......................... 7,000,355 9,635,138 ------------ ------------ Distributions to shareholders from: Net investment income (Class A)....................................................... -- (99,245) Net investment income (Class B)....................................................... -- -- Net investment income (Class C)....................................................... -- -- Net investment income (Class I)....................................................... -- (2,121) Net investment income (Class Z)....................................................... -- -- Net realized gain on securities (Class A)............................................. -- -- Net realized gain on securities (Class B)............................................. -- -- Net realized gain on securities (Class C)............................................. -- -- Net realized gain on securities (Class I)............................................. -- -- Net realized gain on securities (Class Z)............................................. -- -- ------------ ------------ Total distributions to shareholders..................................................... -- (101,366) ------------ ------------ Net increase (decrease) in net assets resulting from capital share transactions (Note 8) (12,721,967) (38,443,036) ------------ ------------ Total increase (decrease) in net assets................................................. (5,721,612) (28,909,264) NET ASSETS: Beginning of period..................................................................... 116,081,690 144,990,954 ============ ============ End of period+.......................................................................... $110,360,078 $116,081,690 ============ ============ - -------- +Includes accumulated undistributed net investment income (loss)........................ $ 46,845 $ (38,681) ============ ============
See Notes to Financial Statements 14 SunAmerica Equity Funds STATEMENT OF CHANGES IN NET ASSETS -- (continued)
Balanced Assets Fund International Equity Fund -------------------------- -------------------------- For the For the six months six months ended For the year ended For the year March 31, ended March 31, ended 2007 September 30, 2007 September 30, (unaudited) 2006 (unaudited) 2006 ------------ ------------- ------------ ------------- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss)............................... $ 1,504,026 $ 2,524,412 $ (567,098) $ (372,437) Net realized gain (loss) on investments and foreign currencies............................................... 5,337,333 5,408,614 8,978,448 22,221,354 Net unrealized gain (loss) on investments and foreign currencies............................................... 1,035,487 1,638,175 4,779,688 (2,823,314) ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations................................................. 7,876,846 9,571,201 13,191,038 19,025,603 ------------ ------------ ------------ ------------ Distributions to shareholders from: Net investment income (Class A)............................ (1,034,446) (2,367,072) -- -- Net investment income (Class B)............................ (71,511) (256,828) -- -- Net investment income (Class C)............................ (57,121) (176,512) -- -- Net investment income (Class I)............................ (6,754) (15,164) -- -- Net investment income (Class Z)............................ -- -- -- -- Net realized gain on securities (Class A).................. -- -- -- -- Net realized gain on securities (Class B).................. -- -- -- -- Net realized gain on securities (Class C).................. -- -- -- -- Net realized gain on securities (Class I).................. -- -- -- -- Net realized gain on securities (Class Z).................. -- -- -- -- ------------ ------------ ------------ ------------ Total distributions to shareholders......................... (1,169,832) (2,815,576) -- -- ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from capital share transactions (Note 8)........................ (14,402,755) (35,679,423) (4,754,564) 8,501,813 ------------ ------------ ------------ ------------ Total increase (decrease) in net assets..................... (7,695,741) (28,923,798) 8,436,474 27,527,416 NET ASSETS: Beginning of period......................................... 163,694,649 192,618,447 114,557,232 87,029,816 ------------ ------------ ------------ ------------ End of period+.............................................. $155,998,908 $163,694,649 $122,993,706 $114,557,232 ============ ============ ============ ============ - -------- +Includes accumulated undistributed net investment income (loss)..................................................... $ 245,300 $ (88,894) $ (683,237) $ (116,139) ============ ============ ============ ============
See Notes to Financial Statements 15 SunAmerica Equity Funds STATEMENT OF CHANGES IN NET ASSETS -- (continued)
Value Fund -------------------------- For the six months ended For the year March 31, ended 2007 September 30, (unaudited) 2006 ------------ ------------- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss).......................................................... $ 896,478 $ 1,551,527 Net realized gain (loss) on investments and foreign currencies........................ 14,960,547 22,506,011 Net unrealized gain (loss) on investments and foreign currencies...................... (1,069,294) 1,434,818 ------------ ------------ Net increase (decrease) in net assets resulting from operations......................... 14,787,731 25,492,356 ------------ ------------ Distributions to shareholders from: Net investment income (Class A)....................................................... (1,037,323) (937,019) Net investment income (Class B)....................................................... (138,581) (80,387) Net investment income (Class C)....................................................... (102,287) (58,523) Net investment income (Class I)....................................................... (285) (27,586) Net investment income (Class Z)....................................................... (294,735) (189,399) Net realized gain on securities (Class A)............................................. (13,182,325) (8,311,112) Net realized gain on securities (Class B)............................................. (5,278,693) (3,719,250) Net realized gain on securities (Class C)............................................. (3,896,204) (2,707,693) Net realized gain on securities (Class I)............................................. (3,186) (214,316) Net realized gain on securities (Class Z)............................................. (2,693,654) (1,144,085) ------------ ------------ Total distributions to shareholders..................................................... (26,627,273) (17,389,370) ------------ ------------ Net increase (decrease) in net assets resulting from capital share transactions (Note 8) 16,308,699 (32,363,644) ------------ ------------ Total increase (decrease) in net assets................................................. 4,469,157 (24,260,658) NET ASSETS: Beginning of period..................................................................... 225,704,769 249,965,427 ------------ ------------ End of period+.......................................................................... $230,173,926 $225,704,769 ============ ============ - -------- +Includes accumulated undistributed net investment income (loss)........................ $ 605,550 $ 1,282,283 ============ ============
See Notes to Financial Statements 16 SunAmerica Equity Funds STATEMENT OF CHANGES IN NET ASSETS -- (continued)
Tax Managed Equity Fund ------------------------- For the six months ended For the year March 31, ended 2007 September 30, (unaudited) 2006 ----------- ------------- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss).......................................................... $ (173,110) $ (247,089) Net realized gain (loss) on investments and foreign currencies........................ 4,990,801 2,537,901 Net unrealized gain (loss) on investments and foreign currencies...................... 226,599 950,584 ----------- ----------- Net increase (decrease) in net assets resulting from operations......................... 5,044,290 3,241,396 ----------- ----------- Distributions to shareholders from: Net investment income (Class A)....................................................... -- (51,047) Net investment income (Class B)....................................................... -- (1,497) Net investment income (Class C)....................................................... -- (1,412) Net investment income (Class I)....................................................... -- -- Net investment income (Class Z)....................................................... -- -- Net realized gain on securities (Class A)............................................. -- -- Net realized gain on securities (Class B)............................................. -- -- Net realized gain on securities (Class C)............................................. -- -- Net realized gain on securities (Class I)............................................. -- -- Net realized gain on securities (Class Z)............................................. -- -- ----------- ----------- Total distributions to shareholders..................................................... -- (53,956) ----------- ----------- Net increase (decrease) in net assets resulting from capital share transactions (Note 8) (8,962,672) 15,240,310 ----------- ----------- Total increase (decrease) in net assets................................................. (3,918,382) 18,427,750 NET ASSETS: Beginning of period..................................................................... 58,779,138 40,351,388 ----------- ----------- End of period+.......................................................................... $54,860,756 $58,779,138 =========== =========== - -------- +Includes accumulated undistributed net investment income (loss)........................ $ (235,689) $ (62,579) =========== ===========
International Small-Cap Fund -------------------------- For the six months For the period ended May 2, 2006@ March 31, through 2007 September 30, (unaudited) 2006 ----------- -------------- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss).......................................................... $ (158,297) $ (4,779) Net realized gain (loss) on investments and foreign currencies........................ 255,327 (1,276,207) Net unrealized gain (loss) on investments and foreign currencies...................... 4,948,946 (1,369,481) ----------- ----------- Net increase (decrease) in net assets resulting from operations......................... 5,045,976 (2,650,467) ----------- ----------- Distributions to shareholders from: Net investment income (Class A)....................................................... -- -- Net investment income (Class B)....................................................... -- -- Net investment income (Class C)....................................................... -- -- Net investment income (Class I)....................................................... -- -- Net investment income (Class Z)....................................................... -- -- Net realized gain on securities (Class A)............................................. -- -- Net realized gain on securities (Class B)............................................. -- -- Net realized gain on securities (Class C)............................................. -- -- Net realized gain on securities (Class I)............................................. -- -- Net realized gain on securities (Class Z)............................................. -- -- ----------- ----------- Total distributions to shareholders..................................................... -- -- ----------- ----------- Net increase (decrease) in net assets resulting from capital share transactions (Note 8) 1,526,089 28,154,391 ----------- ----------- Total increase (decrease) in net assets................................................. 6,572,065 25,503,924 NET ASSETS: Beginning of period..................................................................... 25,503,924 -- ----------- ----------- End of period+.......................................................................... $32,075,989 $25,503,924 =========== =========== - -------- +Includes accumulated undistributed net investment income (loss)........................ $ (158,297) $ -- =========== ===========
@ Commencement of operations See Notes to Financial Statements 17 SunAmerica Equity Funds FINANCIAL HIGHLIGHTS
BLUE CHIP GROWTH FUND --------------------- Net gain (loss) on Net investments Distri- Net Net Asset Net (both Dividends butions Asset Assets Value investment realized Total from from net from Total Value end of beginning income and investment investment capital distri- end of Total period Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's) - ----------------- --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- ------- Class A - - 09/30/02 $14.35 $(0.07) $(3.13) $(3.20) $-- $-- $-- $11.15 (22.30)% $59,812 09/30/03 11.15 (0.06) 2.03 1.97 -- -- -- 13.12 17.67 64,672 09/30/04 13.12 (0.08) 1.05 0.97 -- -- -- 14.09 7.39 62,316 09/30/05 14.09 (0.01) 1.13 1.12 -- -- -- 15.21 7.95 56,755 09/30/06 15.21 (0.07) 0.55 0.48 -- -- -- 15.69 3.16 49,539 03/31/07(7) 15.69 (0.01) 0.90 0.89 -- -- -- 16.58 5.67 47,460 Class B - - 09/30/02 $13.22 $(0.16) $(2.86) $(3.02) $-- $-- $-- $10.20 (22.84)% $31,203 09/30/03 10.20 (0.14) 1.84 1.70 -- -- -- 11.90 16.67 30,263 09/30/04 11.90 (0.16) 0.96 0.80 -- -- -- 12.70 6.72 27,946 09/30/05 12.70 (0.11) 1.02 0.91 -- -- -- 13.61 7.17 22,558 09/30/06 13.61 (0.17) 0.50 0.33 -- -- -- 13.94 2.42 17,479 03/31/07(7) 13.94 (0.07) 0.79 0.72 -- -- -- 14.66 5.17 15,568 Class C+ - - 09/30/02 $13.21 $(0.16) $(2.87) $(3.03) $-- $-- $-- $10.18 (22.94)% $ 7,687 09/30/03 10.18 (0.16) 1.85 1.69 -- -- -- 11.87 16.60 7,286 09/30/04 11.87 (0.18) 0.96 0.78 -- -- -- 12.65 6.57 6,458 09/30/05 12.65 (0.13) 1.01 0.88 -- -- -- 13.53 6.96 5,278 09/30/06 13.53 (0.17) 0.50 0.33 -- -- -- 13.86 2.44 4,528 03/31/07(7) 13.86 (0.08) 0.78 0.70 -- -- -- 14.56 5.05 4,074 Class I - - 11/16/01-09/30/02(3) $16.30 $(0.04) $(5.10) $(5.14) $-- $-- $-- $11.16 (31.53)% $15,612 09/30/03 11.16 (0.04) 2.04 2.00 -- -- -- 13.16 17.92 19,778 09/30/04 13.16 (0.04) 1.05 1.01 -- -- -- 14.17 7.67 2,164 09/30/05 14.17 0.03 1.14 1.17 -- -- -- 15.34 8.26 1,454 09/30/06 15.34 (0.04) 0.57 0.53 -- -- -- 15.87 3.45 642 03/31/07(7) 15.87 0.01 0.91 0.92 -- -- -- 16.79 5.80 596
Ratio of net Ratio of investment expenses income (loss) to average to average Portfolio net assets net assets Turnover - ---------- ------------- --------- 1.47%(6) (0.47)%(6) 107% 1.54 (0.50) 114 1.60 (0.59) 145 1.59 (0.09) 120 1.55(5)(6) (0.45)(5)(6) 154 1.61(4)(5)(6) (0.24)(4)(5)(6) 48 2.18%(6) (1.18)%(6) 107% 2.32 (1.28) 114 2.26 (1.25) 145 2.32 (0.80) 120 2.29(5)(6) (1.20)(5)(6) 154 2.39(4)(5)(6) (1.02)(4)(5)(6) 48 2.23%(6) (1.25)%(6) 107% 2.44 (1.40) 114 2.37 (1.37) 145 2.49 (0.98) 120 2.30(5)(6) (1.21)(5)(6) 154 2.59(4)(5)(6) (1.22)(4)(5)(6) 48 1.33%(4)(5)(6) (0.32)%(4)(5)(6) 107% 1.33(5) (0.29)(5) 114 1.33(5) (0.26)(5) 145 1.33(5) 0.22(5) 120 1.28(5)(6) (0.22)(5)(6) 154 1.31(4)(5)(6) 0.06(4)(5)(6) 48
- -------- (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load. Total return does include expense reimbursements and expense reductions. (3)Commencement of sale of respective class of shares. (4)Annualized (5)Net of the following expense reimbursements/fee waivers (based on average net assets):
09/30/02 09/30/03 09/30/04 09/30/05 09/30/06 03/31/07(4) -------- -------- -------- -------- -------- ----------- Blue Chip Growth Class A. -- % -- % -- % -- % 0.05% 0.02% Blue Chip Growth Class B. -- -- -- -- 0.05 0.02 Blue Chip Growth Class C+ -- -- -- -- 0.05 0.02 Blue Chip Growth Class I. 0.08(4) 0.33 0.13 0.49 1.15 2.42
(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 and the ratio of net investment income to average net assets would have been higher by:
09/30/02 09/30/06 03/31/07(4) -------- -------- ----------- Blue Chip Growth Class A. 0.01% 0.01% 0.02% Blue Chip Growth Class B. 0.01 0.01 0.02 Blue Chip Growth Class C+ 0.01 0.01 0.02 Blue Chip Growth Class I. 0.01 0.01 0.02
(7)Unaudited + Effective February 23, 2004, Class II shares were redesignated to Class C shares. See Notes to Financial Statements 18 SunAmerica Equity Funds FINANCIAL HIGHLIGHTS -- (continued)
GROWTH OPPORTUNITIES FUND ------------------------- Net gain (loss) on Net investments Distri- Net Net Asset Net (both Dividends butions Asset Assets Value investment realized Total from from net from Total Value end of beginning income and investment investment capital distri- end of Total period Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's) - -------------------- --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- ------- Class A - - 09/30/02 $15.42 $(0.17) $(5.26) $(5.43) $-- $-- $-- $ 9.99 (35.21)% $50,018 09/30/03 9.99 (0.13) 3.88 3.75 -- -- -- 13.74 37.54 62,600 09/30/04 13.74 (0.16) 0.07 (0.09) -- -- -- 13.65 (0.66)(7) 49,918 09/30/05 13.65 (0.17) 2.79 2.62 -- -- -- 16.27 19.19 44,641 09/30/06 16.27 (0.12) 0.89 0.77 -- -- -- 17.04 4.73 37,382 03/31/07(8) 17.04 (0.06) 2.67 2.61 -- -- -- 19.65 15.32 39,000 Class B - - 09/30/02 $14.16 $(0.26) $(4.79) $(5.05) $-- $-- $-- $ 9.11 (35.66)% $33,221 09/30/03 9.11 (0.20) 3.53 3.33 -- -- -- 12.44 36.55 38,870 09/30/04 12.44 (0.24) 0.07 (0.17) -- -- -- 12.27 (1.37)(7) 31,429 09/30/05 12.27 (0.25) 2.50 2.25 -- -- -- 14.52 18.34 27,673 09/30/06 14.52 (0.21) 0.79 0.58 -- -- -- 15.10 3.99 21,500 03/31/07(8) 15.10 (0.11) 2.37 2.26 -- -- -- 17.36 14.97 20,578 Class C+ - - 09/30/02 $14.15 $(0.26) $(4.79) $(5.05) $-- $-- $-- $ 9.10 (35.69)% $17,484 09/30/03 9.10 (0.20) 3.53 3.33 -- -- -- 12.43 36.59 19,808 09/30/04 12.43 (0.24) 0.06 (0.18) -- -- -- 12.25 (1.45)(7) 14,599 09/30/05 12.25 (0.26) 2.51 2.25 -- -- -- 14.50 18.37 12,089 09/30/06 14.50 (0.21) 0.79 0.58 -- -- -- 15.08 4.00 9,281 03/31/07(8) 15.08 (0.12) 2.36 2.24 -- -- -- 17.32 14.85 9,824 Class I - - 11/16/01-09/30/02(3) $18.09 $(0.14) $(7.95) $(8.09) $-- $-- $-- $10.00 (44.72)% $ 3,054 09/30/03 10.00 (0.10) 3.90 3.80 -- -- -- 13.80 38.00 4,404 09/30/04 13.80 (0.13) 0.08 (0.05) -- -- -- 13.75 (0.36)(7) 3,493 09/30/05 13.75 (0.13) 2.82 2.69 -- -- -- 16.44 19.56 1,759 09/30/06 16.44 (0.06) 0.88 0.82 -- -- -- 17.26 4.99 422 03/31/07(8) 17.26 (0.02) 2.73 2.71 -- -- -- 19.97 15.70 143
Ratio of net Ratio of investment expenses income (loss) to average to average Portfolio net assets net assets Turnover - ---------- ------------- --------- 1.49%(6) (1.11)%(6) 344% 1.63 (1.11) 204 1.58 (1.09) 170 1.65 (1.15) 86 1.59(5)(6) (0.76)(5)(6) 278 1.64(4)(5)(6) (0.72)(4)(5)(6) 187 2.18%(6) (1.80)%(6) 344% 2.36 (1.85) 204 2.27 (1.78) 170 2.32 (1.82) 86 2.30(5)(6) (1.46)(5)(6) 278 2.31(4)(5)(6) (1.38)(4)(5)(6) 187 2.21%(6) (1.82)%(6) 344% 2.33 (1.82) 204 2.29 (1.80) 170 2.39 (1.89) 86 2.28(5)(6) (1.44)(5)(6) 278 2.39(4)(5)(6) (1.47)(4)(5)(6) 187 1.33%(4)(5)(6) (0.95)%(4)(5)(6) 344% 1.33(5) (0.82)(5) 204 1.33(5) (0.85)(5) 170 1.33(5) (0.85)(5) 86 1.28(5)(6) (0.35)(5)(6) 278 1.32(4)(5)(6) (0.21)(4)(5)(6) 187
- -------- (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load. Total return does include expense reimbursements and expense reductions. (3)Commencement of sale of respective class of shares. (4)Annualized (5)Net of the following expense reimbursements/fee waivers (based on average net assets):
09/30/02 09/30/03 09/30/04 09/30/05 09/30/06 03/31/07(4) -------- -------- -------- -------- -------- ----------- Growth Opportunities Class A. -- % -- % -- % -- % 0.05% 0.01% Growth Opportunities Class B. -- -- -- -- 0.05 0.01 Growth Opportunities Class C+ -- -- -- -- 0.05 0.01 Growth Opportunities Class I. 0.18(4) 0.50 0.18 0.49 1.59 5.11
(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 and the ratio of net investment income to average net assets would have been higher by:
09/30/02 09/30/06 03/31/07(4) -------- -------- ----------- Growth Opportunities Class A. 0.00% 0.04% 0.04% Growth Opportunities Class B. 0.00 0.04 0.04 Growth Opportunities Class C+ 0.00 0.04 0.04 Growth Opportunities Class I. 0.00 0.03 0.04
(7)The Fund's total return increased from a gain realized on the disposal of investments in violation of investment restrictions on Class A 0.07%, Class B 0.10%, Class C 0.10% and Class I 0.08%. (8)Unaudited + Effective February 23, 2004, Class II shares were redesignated to Class C shares. See Notes to Financial Statements 19 SunAmerica Equity Funds FINANCIAL HIGHLIGHTS -- (continued)
NEW CENTURY FUND ---------------- Net gain (loss) on Net investments Distri- Net Net Asset Net (both Dividends butions Asset Assets Ratio of Value investment realized Total from from net from Total Value end of expenses beginning income and investment investment capital distri- end of Total period to average Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's) net assets - ------------ --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- ------- ---------- Class A - - 09/30/02 $13.21 $(0.13) $(1.86) $(1.99) $-- $-- $-- $11.22 (15.06)% $74,710 1.50% 09/30/03 11.22 (0.13) 2.35 2.22 -- -- -- 13.44 19.79 85,685 1.57 09/30/04 13.44 (0.17) 1.50 1.33 -- -- -- 14.77 9.90 80,872 1.57 09/30/05 14.77 (0.15) 3.38 3.23 -- -- -- 18.00 21.87 87,314 1.58 09/30/06 18.00 (0.07) 0.67 0.60 -- -- -- 18.60 3.33 75,682 1.55(4) 03/31/07(5) 18.60 0.01 2.76 2.77 -- -- -- 21.37 14.89 90,360 1.58(4)(6) Class B - - 09/30/02 $11.99 $(0.20) $(1.68) $(1.88) $-- $-- $-- $10.11 (15.68)% $23,271 2.18% 09/30/03 10.11 (0.20) 2.12 1.92 -- -- -- 12.03 18.99 16,078 2.28 09/30/04 12.03 (0.25) 1.35 1.10 -- -- -- 13.13 9.14 11,415 2.29 09/30/05 13.13 (0.25) 3.00 2.75 -- -- -- 15.88 20.94 10,344 2.32 09/30/06 15.88 (0.19) 0.60 0.41 -- -- -- 16.29 2.58 7,528 2.29(4) 03/31/07(5) 16.29 (0.06) 2.41 2.35 -- -- -- 18.64 14.43 13,598 2.44(4)(6) Class C+ - - 09/30/02 $11.96 $(0.20) $(1.67) $(1.87) $-- $-- $-- $10.09 (15.64)% $ 2,447 2.14%(3) 09/30/03 10.09 (0.18) 2.11 1.93 -- -- -- 12.02 19.13 2,183 2.14(3) 09/30/04 12.02 (0.22) 1.34 1.12 -- -- -- 13.14 9.32 2,180 2.10(3) 09/30/05 13.14 (0.22) 3.02 2.80 -- -- -- 15.94 21.31 1,964 2.14(3) 09/30/06 15.94 (0.16) 0.59 0.43 -- -- -- 16.37 2.70 1,756 2.14(3)(4) 03/31/07(5) 16.37 (0.04) 2.42 2.38 -- -- -- 18.75 14.54 6,657 2.14(3)(4)(6)
Ratio of net investment income (loss) to average Portfolio net assets Turnover - ------------- --------- (0.92)% 199% (1.08) 123 (1.20) 110 (0.89) 80 (0.39)(4) 235 (0.02)(4)(6) 186 (1.60)% 199% (1.77) 123 (1.91) 110 (1.64) 80 (1.14)(4) 235 (0.86)(4)(6) 186 (1.56)%(3) 199% (1.63)(3) 123 (1.73)(3) 110 (1.45)(3) 80 (0.98)(3)(4) 235 (0.52)(3)(4)(6) 186
- -------- (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load. Total return does include expense reimbursements and expense reductions. (3)Net of the following expense reimbursements (based on average net assets):
09/30/02 09/30/03 09/30/04 09/30/05 09/30/06 03/31/07(6) -------- -------- -------- -------- -------- ----------- New Century Class C+ 0.27% 0.66% 0.48% 0.66% 0.44% 0.99%
(4)Includes expense reimbursements, but excludes expense reductions. If the expense reductions had been applied the ratio of expenses to average net assets would have been lower and the ratio of net investment income to average net assets would have been higher by:
09/30/06 03/31/07(6) -------- ----------- New Century Class A 0.01% 0.02% New Century Class B 0.01 0.02 New Century Class C 0.01 0.02
(5)Unaudited (6)Annualized + Effective February 23, 2004, Class II shares were redesignated to Class C shares. See Notes to Financial Statements 20 SunAmerica Equity Funds FINANCIAL HIGHLIGHTS -- (continued)
GROWTH AND INCOME FUND ---------------------- Net gain (loss) on Net investments Distri- Net Net Asset Net (both Dividends butions Asset Assets Value investment realized Total from from net from Total Value end of beginning income and investment investment capital distri- end of Total period Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's) - -------------------- --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- ------- Class A - - 09/30/02 $11.11 $ -- $(2.24) $(2.24) $ -- $-- $ -- $ 8.87 (20.16)% $71,482 09/30/03 8.87 0.01 1.31 1.32 -- -- -- 10.19 14.88 70,826 09/30/04 10.19 0.00 1.19 1.19 -- -- -- 11.38 11.68 69,069 09/30/05 11.38 0.10 1.03 1.13 (0.11) -- (0.11) 12.40 9.89 65,666 09/30/06 12.40 0.04 1.01 1.05 (0.02) -- (0.02) 13.43 8.47 61,872 03/31/07(7) 13.43 0.03 0.82 0.85 -- -- -- 14.28 6.33 62,972 Class B - - 09/30/02 $10.70 $(0.07) $(2.14) $(2.21) $ -- $-- $ -- $ 8.49 (20.65)% $81,686 09/30/03 8.49 (0.06) 1.26 1.20 -- -- -- 9.69 14.13 66,378 09/30/04 9.69 (0.07) 1.13 1.06 -- -- -- 10.75 10.94 54,199 09/30/05 10.75 0.02 0.97 0.99 -- -- -- 11.74 9.21 41,120 09/30/06 11.74 (0.05) 0.96 0.91 -- -- -- 12.65 7.75 27,100 03/31/07(7) 12.65 (0.02) 0.77 0.75 -- -- -- 13.40 5.93 22,399 Class C+ - - 09/30/02 $10.68 $(0.07) $(2.13) $(2.20) $ -- $-- $ -- $ 8.48 (20.60)% $60,174 09/30/03 8.48 (0.06) 1.25 1.19 -- -- -- 9.67 14.03 49,593 09/30/04 9.67 (0.07) 1.13 1.06 -- -- -- 10.73 10.96 43,993 09/30/05 10.73 0.02 0.97 0.99 -- -- -- 11.72 9.23 37,448 09/30/06 11.72 (0.04) 0.95 0.91 -- -- -- 12.63 7.76 26,821 03/31/07(7) 12.63 (0.02) 0.78 0.76 -- -- -- 13.39 6.02 24,678 Class I - - 11/16/01-09/30/02(3) $12.29 $ 0.02 $(3.43) $(3.41) $ -- $-- $ -- $ 8.88 (27.75)% $ 9,877 09/30/03 8.88 0.02 1.31 1.33 -- -- -- 10.21 14.98 12,899 09/30/04 10.21 0.02 1.18 1.20 -- -- -- 11.41 11.75 769 09/30/05 11.41 0.12 1.04 1.16 (0.14) -- (0.14) 12.43 10.18 758 09/30/06 12.43 0.07 1.01 1.08 (0.04) -- (0.04) 13.47 8.69 288 03/31/07(7) 13.47 0.05 0.82 0.87 -- -- -- 14.34 6.46 311
Ratio of net Ratio of investment expenses income (loss) to average to average Portfolio net assets net assets Turnover - ---------- ------------- --------- 1.50%(6) (0.01)%(6) 118% 1.50 0.06 123 1.50 0.01 139 1.55 0.78 79 1.54(5)(6) 0.31(5)(6) 152 1.52(4)(5)(6) 0.44(4)(5)(6) 84 2.13%(6) (0.66)%(6) 118% 2.16 (0.59) 123 2.17 (0.67) 139 2.20 0.16 79 2.22(5)(6) (0.39)(5)(6) 152 2.20(4)(5)(6) (0.25)(4)(5)(6) 84 2.17%(6) (0.68)%(6) 118% 2.16 (0.60) 123 2.14 (0.64) 139 2.18 0.17 79 2.19(5)(6) (0.36)(5)(6) 152 2.20(4)(5)(6) (0.24)(4)(5)(6) 84 1.32%(4)(5)(6) 0.21%(4)(5)(6) 118% 1.32(5) 0.23(5) 123 1.32(5) 0.19(5) 139 1.31(5) 1.00(5) 79 1.32(5)(6) 0.48(5)(6) 152 1.30(4)(5)(6) 0.67(4)(5)(6) 84
- -------- (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load. Total return does include expense reimbursements and expense reductions. (3)Commencement of sale of respective class of shares. (4)Annualized (5)Net of the following expense reimbursements/fee waivers (based on average net assets):
09/30/02 09/30/03 09/30/04 09/30/05 09/30/06 03/31/07(4) -------- -------- -------- -------- -------- ----------- Growth and Income Class A. -- % -- % -- % -- 0.00% 0.03% Growth and Income Class B. -- -- -- -- 0.00 0.02 Growth and Income Class C+ -- -- -- -- 0.00 0.03 Growth and Income Class I. 0.12(4) 0.37 0.14 0.96 2.23 4.06
(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 and the ratio of net investment income to average net assets would have been higher by:
09/30/02 09/30/06 03/31/07(4) -------- -------- ----------- Growth and Income Class A. 0.02% 0.01% 0.01% Growth and Income Class B. 0.02 0.01 0.01 Growth and Income Class C+ 0.02 0.01 0.01 Growth and Income Class I. 0.02 0.01 0.01
(7)Unaudited + Effective February 23, 2004, Class II shares were redesignated to Class C shares. See Notes to Financial Statements 21 SunAmerica Equity Funds FINANCIAL HIGHLIGHTS -- (continued)
BALANCED ASSETS FUND -------------------- Net gain (loss) on Net investments Distri- Net Net Asset Net (both Dividends butions Asset Assets Value investment realized Total from from net from Total Value end of beginning income and investment investment capital distri- end of Total period Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's) - ----------------------- --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- -------- Class A - - 09/30/02(7) $13.24 $0.19 $(1.45) $(1.26) $(0.19) $-- $(0.19) $11.79 (9.65)% $183,652 09/30/03 11.79 0.10 0.68 0.78 (0.12) -- (0.12) 12.45 6.65 175,324 09/30/04 12.45 0.12 0.78 0.90 (0.16) -- (0.16) 13.19 7.27 160,269 09/30/05 13.19 0.21 0.56 0.77 (0.24) -- (0.24) 13.72 5.84 142,573 09/30/06 13.72 0.22 0.58 0.80 (0.25) -- (0.25) 14.27 5.90 127,313 03/31/07(8) 14.27 0.13 0.58 0.71 (0.12) -- (0.12) 14.86 5.00 122,961 Class B - - 09/30/02(7) $13.20 $0.10 $(1.45) $(1.35) $(0.11) $-- $(0.11) $11.74 (10.29)% $ 64,452 09/30/03 11.74 0.03 0.68 0.71 (0.04) -- (0.04) 12.41 6.07 47,496 09/30/04 12.41 0.03 0.77 0.80 (0.07) -- (0.07) 13.14 6.45 38,687 09/30/05 13.14 0.13 0.55 0.68 (0.15) -- (0.15) 13.67 5.16 30,002 09/30/06 13.67 0.13 0.58 0.71 (0.15) -- (0.15) 14.23 5.23 20,464 03/31/07(8) 14.23 0.07 0.59 0.66 (0.06) -- (0.06) 14.83 4.62 17,679 Class C+ - - 09/30/02(7) $13.21 $0.09 $(1.43) $(1.34) $(0.11) $-- $(0.11) $11.76 (10.21)% $ 31,894 09/30/03 11.76 0.03 0.67 0.70 (0.04) -- (0.04) 12.42 5.97 25,784 09/30/04 12.42 0.03 0.78 0.81 (0.07) -- (0.07) 13.16 6.53 22,781 09/30/05 13.16 0.13 0.55 0.68 (0.15) -- (0.15) 13.69 5.15 19,298 09/30/06 13.69 0.13 0.58 0.71 (0.15) -- (0.15) 14.25 5.22 15,164 03/31/07(8) 14.25 0.08 0.59 0.67 (0.06) -- (0.06) 14.86 4.68 14,649 Class I - - 11/16/01-09/30/02(3)(7) $14.29 $0.19 $(2.48) $(2.29) $(0.21) $-- $(0.21) $11.79 (16.18)% $ 4,457 09/30/03 11.79 0.12 0.69 0.81 (0.14) -- (0.14) 12.46 6.89 4,574 09/30/04 12.46 0.16 0.77 0.93 (0.18) -- (0.18) 13.21 7.44 679 09/30/05 13.21 0.25 0.55 0.80 (0.28) -- (0.28) 13.73 6.10 746 09/30/06 13.73 0.26 0.59 0.85 (0.29) -- (0.29) 14.29 6.24 754 03/31/07(8) 14.29 0.15 0.58 0.73 (0.13) -- (0.13) 14.89 5.17 709
Ratio of net Ratio of investment expenses income (loss) to average to average Portfolio net assets net assets Turnover - ---------- ------------- --------- 1.47%(6) 1.39%(6) 485% 1.49 0.86 409 1.50 0.89 181 1.62 1.56 160 1.52(5)(6) 1.59(5)(6) 154 1.57(4)(5)(6) 1.71(4)(5)(6) 72 2.12%(6) 0.73%(6) 485% 2.16 0.22 409 2.18 0.20 181 2.27 0.91 160 2.20(5)(6) 0.91(5)(6) 154 2.31(4)(5)(6) 0.97(4)(5)(6) 72 2.13%(6) 0.72%(6) 485% 2.15 0.22 409 2.18 0.21 181 2.26 0.92 160 2.18(5)(6) 0.93(5)(6) 154 2.28(4)(5)(6) 1.00(4)(5)(6) 72 1.33%(4)(5)(6) 1.52%(4)(5)(6) 485% 1.33(5) 1.02(5) 409 1.29(5) 1.10(5) 181 1.32(5) 1.84(5) 160 1.28(5)(6) 1.84(5)(6) 154 1.31(4)(5)(6) 1.97(4)(5)(6) 72
- -------- (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load. Total return does include expense reimbursements and expense reductions. (3)Commencement of sale of respective class of shares. (4)Annualized (5)Net of the following expense reimbursements/fee waivers (based on average net assets):
09/30/02 09/30/03 09/30/04 09/30/05 09/30/06 03/31/07(4) -------- -------- -------- -------- -------- ----------- Balanced Assets Class A. -- % -- % -- % -- % 0.05% 0.02% Balanced Assets Class B. -- -- -- -- 0.05 0.02 Balanced Assets Class C+ -- -- -- -- 0.05 0.02 Balanced Assets Class I. 0.19(4) 0.19 0.24 1.47 1.38 2.10
(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 and the ratio of net investment income to average net assets would have been higher by:
09/30/02 09/30/06 03/31/07(4) -------- -------- ----------- Balanced Assets Class A. 0.01% 0.00% 0.01% Balanced Assets Class B. 0.01 0.00 0.01 Balanced Assets Class C+ 0.01 0.00 0.01 Balanced Assets Class I. 0.01 0.00 0.01
(7)The Fund has adopted the provisions of the AICPA Audit and Accounting Guide of Investment Companies and began accreting discount and amortizing premium on debt securities. The per share affect of this change for the period ended September 30, 2002 on investment income and realized and unrealized gain and losses was approximately $0.01 per share for all classes of shares. The effect of this change was to decrease the ratio of net investment income to average net assets by 0.05% for all classes of shares. Per share data and ratios for periods prior to September 30, 2002 have not been restated to reflect this change in accounting policy. (8)Unaudited + Effective February 23, 2004, Class II shares were redesignated to Class C shares. See Notes to Financial Statements 22 SunAmerica Equity Funds FINANCIAL HIGHLIGHTS -- (continued)
INTERNATIONAL EQUITY FUND ------------------------- Net gain (loss) on Net investments Distri- Net Net Asset Net (both Dividends butions Asset Assets Value investment realized Total from from net from Total Value end of beginning income and investment investment capital distri- end of Total period Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's) - -------------------- --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- ------- Class A - - 10/31/01 $14.44 $(0.05) $(4.40) $(4.45) $ -- $(1.11) $(1.11) $ 8.88 (33.17)% $24,408 11/01/01-09/30/02(8) 8.88 0.00 (1.88) (1.88) -- -- -- 7.00 (21.17) 30,896 09/30/03 7.00 0.03 1.70 1.73 -- -- -- 8.73 24.71 28,720 09/30/04 8.73 0.01 1.46 1.47 0.00 -- 0.00 10.20 16.88 32,221 09/30/05 10.20 0.02 2.82 2.84 -- -- -- 13.04 27.84 43,527 09/30/06 13.04 (0.01) 2.81 2.80 -- -- -- 15.84 21.47 62,190 03/31/07(9) 15.84 (0.05) 1.92 1.87 -- -- -- 17.71 11.81 68,720 Class B - - 10/31/01 $14.07 $(0.13) $(4.26) $(4.39) $ -- $(1.11) $(1.11) $ 8.57 (33.64)% $26,747 11/01/01-09/30/02(8) 8.57 (0.06) (1.78) (1.84) -- -- -- 6.73 (21.47) 25,509 09/30/03 6.73 (0.03) 1.64 1.61 -- -- -- 8.34 23.92 24,799 09/30/04 8.34 (0.06) 1.41 1.35 -- -- -- 9.69 16.19 20,673 09/30/05 9.69 (0.06) 2.68 2.62 -- -- -- 12.31 27.04 19,546 09/30/06 12.31 (0.11) 2.65 2.54 -- -- -- 14.85 20.63 21,240 03/31/07(9) 14.85 (0.10) 1.80 1.70 -- -- -- 16.55 11.45 21,121 Class C+ - - 10/31/01 $14.08 $(0.12) $(4.28) $(4.40) $ -- $(1.11) $(1.11) $ 8.57 (33.69)% $12,949 11/01/01-09/30/02(8) 8.57 (0.06) (1.79) (1.85) -- -- -- 6.72 (21.59) 15,067 09/30/03 6.72 (0.03) 1.64 1.61 -- -- -- 8.33 23.96 14,787 09/30/04 8.33 (0.06) 1.41 1.35 -- -- -- 9.68 16.21 15,798 09/30/05 9.68 (0.06) 2.67 2.61 -- -- -- 12.29 26.96 16,892 09/30/06 12.29 (0.11) 2.66 2.55 -- -- -- 14.84 20.75 21,646 03/31/07(9) 14.84 (0.10) 1.79 1.69 -- -- -- 16.53 11.39 23,945 Class I - - 11/16/01-09/30/02(6)(8) $ 9.09 $ 0.01 $(2.08) $(2.07) $ -- $ -- $ -- $ 7.02 (22.77)% $15,802 09/30/03 7.02 0.03 1.72 1.75 -- -- -- 8.77 24.93 20,499 09/30/04 8.77 (0.04) 1.53 1.49 (0.01) -- (0.01) 10.25 16.96 4,233 09/30/05 10.25 0.05 2.82 2.87 -- -- -- 13.12 28.00 7,065 09/30/06 13.12 0.00 2.84 2.84 -- -- -- 15.96 21.65 9,482 03/31/07(9) 15.96 (0.04) 1.93 1.89 -- -- -- 17.85 11.84 9,207
Ratio Ratio of of net expenses investment to average income (loss) net to average Portfolio assets(4) net assets(4) Turnover - ---------- ------------- --------- 2.03% (0.42)% 272% 1.93(3)(5)(7) (0.06)(3)(5)(7) 230 1.90 0.35 209 1.90 0.06 202 1.90 0.17 126 1.90 (0.09) 152 1.90(3) (0.61)(3) 65 2.68% (1.14)% 272% 2.56(3)(5)(7) (0.72)(3)(5)(7) 230 2.55 (0.41) 209 2.55 (0.62) 202 2.55 (0.51) 126 2.55 (0.80) 152 2.55(3) (1.29)(3) 65 2.68% (1.13)% 272% 2.55(3)(5)(7) (0.72)(3)(5)(7) 230 2.55 (0.38) 209 2.55 (0.60) 202 2.55 (0.49) 126 2.55 (0.76) 152 2.55(3) (1.25)(3) 65 1.80%(3)(5)(7) 0.16%(3)(5)(7) 230% 1.80 0.43 209 1.80 (0.34) 202 1.80 0.43 126 1.80 (0.01) 152 1.80(3) (0.51)(3) 65
- -------- (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load. Total return does include expense reimbursements and expense reductions. (3)Annualized (4)Net of the following expense reimbursements (recoupments) (based on average net assets):
10/31/01 09/30/02(3) 09/30/03 09/30/04 09/30/05 09/30/06 3/31/07(3) -------- ----------- -------- -------- -------- -------- ---------- International Equity Class A. 0.03% 0.08% 0.18% 0.10% 0.09% (0.04)% (0.00)% International Equity Class B. 0.06 0.14 0.13 0.11 0.17 0.02 0.07 International Equity Class C+ 0.14 0.13 0.28 0.06 0.14 (0.01) 0.05 International Equity Class I. -- 0.11 0.16 0.12 0.14 0.00 0.09
(5)The ratio reflects an expense cap which is net of custody credits of (0.01)%. (6)Commencement of sale of respective class of shares. (7)Includes expense reimbursements (recoupments), but excludes expense reductions. If the expense reductions had been applied, the ratio of expenses to average net assets would have remained the same. (8)The Fund changed its fiscal year end from October 31 to September 30. (9)Unaudited + Effective February 23, 2004, Class II shares were redesignated to Class C shares. See Notes to Financial Statements 23 SunAmerica Equity Funds FINANCIAL HIGHLIGHTS -- (continued)
VALUE FUND ---------- Net gain (loss) on Net investments Distri- Net Net Asset Net (both Dividends butions Asset Assets Value investment realized Total from from net from Total Value end of beginning income and investment investment capital distri- end of Total period Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's) - -------------------- --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- -------- Class A - - 10/31/01 $17.77 $0.11 $(0.83) $(0.72) $ -- $(1.95) $(1.95) $15.10 (4.42)% $ 51,150 10/31/02 15.10 0.18 0.07 0.25 (0.09) (0.63) (0.72) 14.63 1.44 50,975 10/31/03 14.63 0.29 2.05 2.34 (0.18) (0.46) (0.64) 16.33 16.59 60,701 11/1/03-09/30/04(8) 16.33 0.32 1.86 2.18 (0.37) (0.45) (0.82) 17.69 13.79 91,769 09/30/05 17.69 0.17 2.22 2.39 (0.29) (1.78) (2.07) 18.01 14.06 130,754 09/30/06 18.01 0.15 1.89 2.04 (0.13) (1.17) (1.30) 18.75 12.02 121,729 03/31/07(9) 18.75 0.08 1.16 1.24 (0.16) (2.04) (2.20) 17.79 6.63 124,811 Class B - - 10/31/01 $17.31 $0.00 $(0.80) $(0.80) $ -- $(1.95) $(1.95) $14.56 (5.06)% $ 77,667 10/31/02 14.56 0.07 0.07 0.14 (0.01) (0.63) (0.64) 14.06 0.74 78,584 10/31/03 14.06 0.19 1.98 2.17 (0.08) (0.46) (0.54) 15.69 15.94 83,935 11/1/03-09/30/04(8) 15.69 0.24 1.75 1.99 (0.27) (0.45) (0.72) 16.96 13.09 68,492 09/30/05 16.96 0.07 2.11 2.18 (0.18) (1.78) (1.96) 17.18 13.34 57,704 09/30/06 17.18 0.04 1.80 1.84 (0.03) (1.17) (1.20) 17.82 11.29 47,100 03/31/07(9) 17.82 0.02 1.10 1.12 (0.05) (2.04) (2.09) 16.85 6.30 43,510 Class C+ - - 10/31/01 $17.30 $0.00 $(0.79) $(0.79) $ -- $(1.95) $(1.95) $14.56 (5.01)% $ 17,805 10/31/02 14.56 0.07 0.07 0.14 (0.01) (0.63) (0.64) 14.06 0.74 18,504 10/31/03 14.06 0.18 1.99 2.17 (0.08) (0.46) (0.54) 15.69 15.94 23,208 11/1/03-09/30/04(8) 15.69 0.22 1.77 1.99 (0.27) (0.45) (0.72) 16.96 13.09 30,985 09/30/05 16.96 0.06 2.12 2.18 (0.18) (1.78) (1.96) 17.18 13.34 41,095 09/30/06 17.18 0.04 1.80 1.84 (0.03) (1.17) (1.20) 17.82 11.30 33,849 03/31/07(9) 17.82 0.02 1.10 1.12 (0.05) (2.04) (2.09) 16.85 6.30 32,045 Class I - - 11/16/01-10/31/02(6) $15.93 $0.19 $(0.77) $(0.58) $(0.09) $(0.63) $(0.72) $14.63 (3.83)% $ 4,726 10/31/03 14.63 0.30 2.05 2.35 (0.19) (0.46) (0.65) 16.33 16.72 6,629 11/1/03-09/30/04(8) 16.33 0.37 1.83 2.20 (0.40) (0.45) (0.85) 17.68 13.91 4,746 09/30/05 17.68 0.20 2.20 2.40 (0.30) (1.78) (2.08) 18.00 14.12 3,106 09/30/06 18.00 0.16 1.91 2.07 (0.15) (1.17) (1.32) 18.75 12.20 174 03/31/07(9) 18.75 0.10 1.14 1.24 (0.18) (2.04) (2.22) 17.77 6.64 33 Class Z - - 10/31/01 $18.02 $0.21 $(0.85) $(0.64) $ -- $(1.95) $(1.95) $15.43 (3.86)% $ 487 10/31/02 15.43 0.27 0.06 0.33 (0.16) (0.63) (0.79) 14.97 1.98 360 10/31/03 14.97 0.36 2.13 2.49 (0.25) (0.46) (0.71) 16.75 17.36 4,532 11/1/03-09/30/04(8) 16.75 0.41 1.92 2.33 (0.45) (0.45) (0.90) 18.18 14.37 7,370 09/30/05 18.18 0.27 2.30 2.57 (0.39) (1.78) (2.17) 18.58 14.77 17,307 09/30/06 18.58 0.26 1.95 2.21 (0.19) (1.17) (1.36) 19.43 12.64 22,853 03/31/07(9) 19.43 0.14 1.20 1.34 (0.22) (2.04) (2.26) 18.51 6.95 29,776
Ratio of net Ratio of investment expenses income (loss) to average to average Portfolio net assets(4) net assets(4) Turnover - ------------- ------------- --------- 1.78%(5) 0.68%(5) 146% 1.78 1.15 188 1.78(7) 1.94(7) 138 1.73(3) 2.12(3) 204 1.63 1.00 82 1.63(7) 0.88(7) 140 1.63(3)(7) 0.94(3)(7) 73 2.43%(5) 0.03%(5) 146% 2.43 0.49 188 2.41(7) 1.32(7) 138 2.40(3) 1.58(3) 204 2.28 0.38 82 2.28(7) 0.23(7) 140 2.28(3)(7) 0.28(3)(7) 73 2.43%(5) 0.02%(5) 146% 2.43 0.49 188 2.43(7) 1.28(7) 138 2.41(3) 1.48(3) 204 2.28 0.36 82 2.28(7) 0.23(7) 140 2.28(3)(7) 0.28(3)(7) 73 1.68%(3) 1.26%(3) 188% 1.68(7) 2.02(7) 138 1.67(3) 2.31(3) 204 1.53 1.11 82 1.53(7) 0.90(7) 140 1.53(3)(7) 1.04(3)(7) 73 1.21%(5) 1.26%(5) 146% 1.21 1.69 188 1.21(7) 2.33(7) 138 1.19(3) 2.58(3) 204 1.06 1.54 82 1.06(7) 1.45(7) 140 1.06(3)(7) 1.51(3)(7) 73
- -------- (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load. Total return does include expense reimbursements and expense reductions. (3)Annualized (4)Net of the following expense reimbursements (recoupments) (based on average net assets):
10/31/01 10/31/02 10/31/03 09/30/04(3) 09/30/05 09/30/06 03/31/07(3) -------- -------- -------- ----------- -------- -------- ----------- Value Class A. 0.00% 0.01% (0.01)% 0.04% 0.08% 0.08% 0.09% Value Class B. -- (0.02) (0.01) 0.02 0.14 0.10 0.13 Value Class C+ 0.05 0.03 0.02 0.06 0.08 0.08 0.12 Value Class I. -- 0.19(3) -- 0.10 0.25 0.30 25.82 Value Class Z. 6.55 5.52 1.00 0.16 0.10 0.07 0.10
(5)The ratio reflects an expense cap which is net of custody credits of (0.01)%. (6)Commencement of sale of respective class of shares. (7)Includes expense reimbursements, but excludes expense reductions. If the expense reductions had been applied the ratio of expenses to average net assets would have been lower and the ratio of net investment income to average net assets would have been higher by:
10/31/03 09/30/06 03/31/07(3) -------- -------- ----------- Value Class A. 0.01% 0.01% 0.01% Value Class B. 0.01 0.01 0.01 Value Class C+ 0.01 0.01 0.01 Value Class I. 0.01 0.01 0.01 Value Class Z. 0.00 0.01 0.01
(8)The Fund changed its fiscal year end from October 31 to September 30. (9)Unaudited + Effective February 23, 2004, Class II shares were redesignated to Class C shares. See Notes to Financial Statements 24 SunAmerica Equity Funds FINANCIAL HIGHLIGHTS -- (continued)
TAX MANAGED EQUITY FUND ----------------------- Net Gain (loss) on investments Distri- Net Net Net Asset Net (both Dividends butions Asset Assets Value investment realized Total from from net from Total Value end of beginning income and investment investment capital distri- end of Total period Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's) - -------------------- --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- ------- Class A - - 10/31/01 $14.54 $ 0.00 $(3.50) $(3.50) $ -- $-- $ -- $11.04 (24.07)% $28,739 10/31/02 11.04 0.01 (2.05) (2.04) -- -- -- 9.00 (18.48) 16,587 10/31/03 9.00 0.03 1.46 1.49 -- -- -- 10.49 16.56 14,877 11/01/03-09/30/04(3) 10.49 0.03 0.75 0.78 -- -- -- 11.27 7.44 13,562 09/30/05 11.27 0.09 0.53 0.62 (0.06) -- (0.06) 11.83 5.51 11,251 09/30/06 11.83 (0.01) 1.34 1.33 (0.06) -- (0.06) 13.10 11.25 22,554 03/31/07(8) 13.10 (0.01) 1.23 1.22 -- -- -- 14.32 9.31 22,039 Class B - - 10/31/01 $14.38 $(0.08) $(3.45) $(3.53) $ -- $-- $ -- $10.85 (24.55)% $40,677 10/31/02 10.85 (0.06) (2.00) (2.06) -- -- -- 8.79 (18.99) 25,703 10/31/03 8.79 (0.03) 1.41 1.38 -- -- -- 10.17 15.70 22,694 11/01/03-09/30/04(3) 10.17 (0.04) 0.73 0.69 -- -- -- 10.86 6.78 19,669 09/30/05 10.86 0.01 0.52 0.53 -- -- -- 11.39 4.88 15,117 09/30/06 11.39 (0.10) 1.29 1.19 0.00 -- 0.00 12.58 10.46 9,299 03/31/07(8) 12.58 (0.06) 1.19 1.13 -- -- -- 13.71 8.98 6,543 Class C+ - - 10/31/01 $14.40 $(0.08) $(3.46) $(3.54) $ -- $-- $ -- $10.86 (24.58)% $43,610 10/31/02 10.86 (0.06) (2.00) (2.06) -- -- -- 8.80 (18.97) 26,430 10/31/03 8.80 (0.03) 1.42 1.39 -- -- -- 10.19 15.80 23,036 11/01/03-09/30/04(3) 10.19 (0.04) 0.73 0.69 -- -- -- 10.88 6.77 18,295 09/30/05 10.88 0.01 0.51 0.52 -- -- -- 11.40 4.78 13,983 09/30/06 11.40 (0.09) 1.29 1.20 0.00 -- 0.00 12.60 10.54 26,927 03/31/07(8) 12.60 (0.06) 1.18 1.12 -- -- -- 13.72 8.89 26,279
Ratio of net Ratio of investment expenses income (loss) to average to average Portfolio net assets(5) net assets(5) Turnover - ------------- ------------- --------- 1.45%(6) (0.03)%(6) 19% 1.45 0.09 16 1.45 0.35 13 1.45(4) 0.25(4) 20 1.45 0.74 32 1.45(7) (0.02)(7) 999 1.45(4)(7) (0.02)(4)(7) 281 2.10%(6) (0.68)%(6) 19% 2.10 (0.56) 16 2.10 (0.30) 13 2.10(4) (0.40)(4) 20 2.10 0.09 32 2.10(7) (0.77)(7) 999 2.10(4)(7) (0.67)(4)(7) 281 2.10%(6) (0.68)%(6) 19% 2.10 (0.56) 16 2.10 (0.30) 13 2.10(4) (0.40)(4) 20 2.10 0.09 32 2.10(7) (0.68)(7) 999 2.10(4)(7) (0.67)(4)(7) 281
- -------- (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load. Total return does include expense reimbursements and expense reductions. (3)The Fund changed its fiscal year end from October 31 to September 30. (4)Annualized (5)Net of the following expense reimbursements (based on average net assets):
10/31/01 10/31/02 10/31/03 09/30/04(4) 09/30/05 09/30/06 03/31/07(4) -------- -------- -------- ----------- -------- -------- ----------- Tax Managed Equity Class A. 0.15% 0.00% 0.26% 0.24% 0.38% 0.31% 0.45% Tax Managed Equity Class B. 0.15 0.20 0.23 0.25 0.35 0.37 0.58 Tax Managed Equity Class C+ 0.14 0.21 0.23 0.24 0.33 0.30 0.40
(6)The ratio reflects an expense cap which is net of custody credits of less than (0.01)%. (7)Includes expense reimbursements, but excludes expense reductions. If the expense reductions had been applied the ratio of expenses to average net assets would have been lower and the ratio of net investment income to average net assets would have been higher by:
09/30/06 03/31/07(4) -------- ----------- Tax Managed Equity Class A 0.04% 0.20% Tax Managed Equity Class B 0.02 0.21 Tax Managed Equity Class C 0.03 0.19
(8)Unaudited + Effective February 23, 2004, Class II shares were redesignated to Class C shares. See Notes to Financial Statements 25 SunAmerica Equity Funds FINANCIAL HIGHLIGHTS -- (continued)
INTERNATIONAL SMALL-CAP FUND ---------------------------- Net gain (loss) on Net investments Distri- Net Net Asset Net (both Dividends butions Asset Assets Value investment realized Total from from net from Total Value end of beginning income and investment investment capital distri- end of Total period Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's) - -------------------- --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- ------- Class A 05/02/06-09/30/06(3) $12.50 $ 0.00 $(1.45) $(1.45) $-- $-- $-- $11.05 (11.60)% $21,557 03/31/07(6) 11.05 (0.07) 2.24 2.17 -- -- -- 13.22 19.64 27,488 Class B 05/02/06-09/30/06(3) $12.50 $(0.04) $(1.44) $(1.48) $-- $-- $-- $11.02 (11.84)% $ 583 03/31/07(6) 11.02 (0.10) 2.23 2.13 -- -- -- 13.15 19.33 880 Class C 05/02/06-09/30/06(3) $12.50 $(0.04) $(1.44) $(1.48) $-- $-- $-- $11.02 (11.84)% $ 3,363 03/31/07(6) 11.02 (0.11) 2.23 2.12 -- -- -- 13.14 19.24 3,708
Ratio of net investment Ratio of income (loss) expenses to average to average net Portfolio net assets(4)(5) assets(4)(5) Turnover - ---------------- ------------- --------- 1.90% 0.08% 55% 1.90 (1.17) 38 2.55% (0.93)% 55% 2.55 (1.78) 38 2.55% (1.07)% 55% 2.55 (1.83) 38
- -------- (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load. Total return does include expense reimbursements and expense reductions. (3)Commencement of operations. (4)Annualized (5)Net of the following expense reimbursements (based on average net assets):
09/30/06(4) 03/31/07(4) ----------- ----------- International Small-Cap Class A 1.27% 0.55% International Small-Cap Class B 12.63 3.92 International Small-Cap Class C 2.88 1.18
(6)Unaudited See Notes to Financial Statements 26 SunAmerica Blue Chip Growth Fund PORTFOLIO PROFILE -- March 31, 2007 -- (unaudited) Industry Allocation* Diversified Manufactured Operations. 6.6% Computers........................... 4.8 Finance-Investment Banker/Broker.... 4.8 Medical-Biomedical/Gene............. 4.6 Web Portals/ISP..................... 4.2 Retail-Discount..................... 3.6 Repurchase Agreements............... 3.4 Applications Software............... 3.1 Cosmetics & Toiletries.............. 3.1 Electronic Components-Semiconductors 3.1 Electric Products-Misc.............. 2.8 Medical-HMO......................... 2.8 Beverages-Non-alcoholic............. 2.7 Medical Products.................... 2.7 Networking Products................. 2.2 Retail-Drug Store................... 2.1 Finance-Credit Card................. 2.0 Aerospace/Defense................... 1.8 Medical-Drugs....................... 1.8 Wireless Equipment.................. 1.8 Multimedia.......................... 1.7 Oil-Field Services.................. 1.7 Medical Instruments................. 1.6 Aerospace/Defense-Equipment......... 1.4 Pharmacy Services................... 1.3 Cable TV............................ 1.2 Therapeutics........................ 1.2 E-Commerce/Services................. 1.1 Electronic Measurement Instruments.. 1.1 Enterprise Software/Service......... 1.1 Machinery-Construction & Mining..... 1.1 Retail-Building Products............ 1.1 Telecom Equipment-Fiber Optics...... 1.1 Telecom Services.................... 1.1 Agricultural Chemicals.............. 1.0 Banks-Fiduciary..................... 1.0 Cellular Telecom.................... 1.0 Coal................................ 1.0 Computer Aided Design............... 1.0 Electronics-Military................ 1.0 Finance-Consumer Loans.............. 1.0 Industrial Automated/Robotic........ 1.0 Oil Companies-Integrated............ 1.0 Oil Refining & Marketing............ 1.0 Retail-Office Supplies.............. 1.0 Casino Services..................... 0.9 Commercial Services................. 0.9 Entertainment Software.............. 0.9 Machinery-General Industrial........ 0.9 Retail-Regional Department Stores... 0.9 Retail-Consumer Electronics......... 0.7 Beverages-Wine/Spirits.............. 0.5 Insurance-Property/Casualty......... 0.5 Medical-Generic Drugs............... 0.5 Radio............................... 0.5 Retail-Jewelry...................... 0.5 ----- 100.5% =====
- -------- * Calculated as a percentage of Net Assets 27 SunAmerica Blue Chip Growth Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited)
Value Security Description Shares (Note 3) --------------------------------------------- COMMON STOCK -- 97.1% Aerospace/Defense -- 1.8% Boeing Co................................... 9,300 $ 826,863 Spirit Aerosystems Holdings, Inc., Class A+. 11,700 372,645 ---------- 1,199,508 ---------- Aerospace/Defense-Equipment -- 1.4% United Technologies Corp.................... 14,700 955,500 ---------- Agricultural Chemicals -- 1.0% Monsanto Co................................. 11,800 648,528 ---------- Applications Software -- 3.1% Microsoft Corp.............................. 76,200 2,123,694 ---------- Banks-Fiduciary -- 1.0% The Bank of New York Co., Inc............... 16,800 681,240 ---------- Beverages-Non-alcoholic -- 2.7% PepsiCo, Inc................................ 28,700 1,824,172 ---------- Beverages-Wine/Spirits -- 0.5% Constellation Brands, Inc., Class A+........ 17,000 360,060 ---------- Cable TV -- 1.2% Comcast Corp., Class A+..................... 31,200 809,640 ---------- Casino Services -- 0.9% International Game Technology............... 15,700 633,966 ---------- Cellular Telecom -- 1.0% NII Holdings, Inc.+......................... 9,600 712,128 ---------- Coal -- 1.0% Peabody Energy Corp......................... 17,300 696,152 ---------- Commercial Services -- 0.9% AerCap Holdings NV+......................... 20,300 590,933 ---------- Computer Aided Design -- 1.0% Autodesk, Inc.+............................. 17,600 661,760 ---------- Computers -- 4.8% Apple Computer, Inc.+....................... 12,400 1,152,084 Hewlett-Packard Co.......................... 19,600 786,744 International Business Machines Corp........ 14,100 1,329,066 ---------- 3,267,894 ---------- Cosmetics & Toiletries -- 3.1% Procter & Gamble Co......................... 33,000 2,084,280 ---------- Diversified Manufactured Operations -- 6.6% 3M Co....................................... 9,200 703,156 Danaher Corp................................ 12,600 900,270 Dover Corp.................................. 15,200 741,912 General Electric Co......................... 60,600 2,142,816 ---------- 4,488,154 ---------- E-Commerce/Services -- 1.1% eBay, Inc.+................................. 21,900 725,985 ---------- Electric Products-Misc. -- 2.8% AMETEK, Inc................................. 32,000 1,105,280 Emerson Electric Co......................... 17,900 771,311 ---------- 1,876,591 ----------
Value Security Description Shares (Note 3) -------------------------------------------------------------- Electronic Components-Semiconductors -- 3.1% Intel Corp................................ 34,804 $ 665,801 Intersil Corp., Class A................... 28,100 744,369 Texas Instruments, Inc.................... 23,200 698,320 ---------- 2,108,490 ---------- Electronic Measurement Instruments -- 1.1% Agilent Technologies, Inc.+............... 21,700 731,073 ---------- Electronics-Military -- 1.0% L-3 Communications Holdings, Inc.......... 8,100 708,507 ---------- Enterprise Software/Service -- 1.1% Oracle Corp.+............................. 41,000 743,330 ---------- Entertainment Software -- 0.9% Electronic Arts, Inc.+.................... 12,100 609,356 ---------- Finance-Consumer Loans -- 1.0% SLM Corp.................................. 16,400 670,760 ---------- Finance-Credit Card -- 2.0% American Express Co....................... 24,000 1,353,600 ---------- Finance-Investment Banker/Broker -- 4.8% Citigroup, Inc............................ 13,900 713,626 Goldman Sachs Group, Inc.................. 5,300 1,095,139 Merrill Lynch & Co., Inc.................. 8,800 718,696 TD Ameritrade Holding Corp.+.............. 49,200 732,096 ---------- 3,259,557 ---------- Industrial Automated/Robotic -- 1.0% Rockwell Automation, Inc.................. 11,800 706,466 ---------- Insurance-Property/Casualty -- 0.5% OneBeacon Insurance Group, Ltd............ 12,400 310,000 ---------- Machinery-Construction & Mining -- 1.1% Caterpillar, Inc.......................... 11,000 737,330 ---------- Machinery-General Industrial -- 0.9% IDEX Corp................................. 11,421 581,100 ---------- Medical Instruments -- 1.6% Medtronic, Inc............................ 22,500 1,103,850 ---------- Medical Products -- 2.7% Johnson & Johnson......................... 30,500 1,837,930 ---------- Medical-Biomedical/Gene -- 4.6% Amgen, Inc.+.............................. 12,000 670,560 Celgene Corp.+............................ 8,300 435,418 Genentech, Inc.+.......................... 8,600 706,232 Genzyme Corp.+............................ 10,500 630,210 MedImmune, Inc.+.......................... 18,400 669,576 ---------- 3,111,996 ---------- Medical-Drugs -- 1.8% Abbott Laboratories....................... 7,600 424,080 Allergan, Inc............................. 1,600 177,312 Novartis AG ADR........................... 11,300 617,319 ---------- 1,218,711 ---------- Medical-Generic Drugs -- 0.5% Barr Pharmaceuticals, Inc.+............... 6,900 319,815 ----------
28 SunAmerica Blue Chip Growth Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Value Security Description Shares (Note 3) ---------------------------------------------------------------- COMMON STOCK (continued) Medical-HMO -- 2.8% Coventry Health Care, Inc.+................. 11,900 $ 666,995 UnitedHealth Group, Inc..................... 23,700 1,255,389 ----------- 1,922,384 ----------- Multimedia -- 1.7% News Corp., Class A......................... 48,500 1,121,320 ----------- Networking Products -- 2.2% Cisco Systems, Inc.+........................ 59,500 1,519,035 ----------- Oil Companies-Integrated -- 1.0% Exxon Mobil Corp............................ 9,400 709,230 ----------- Oil Refining & Marketing -- 1.0% Valero Energy Corp.......................... 11,000 709,390 ----------- Oil-Field Services -- 1.7% Schlumberger, Ltd........................... 16,600 1,147,060 ----------- Pharmacy Services -- 1.3% Express Scripts, Inc.+...................... 10,500 847,560 ----------- Radio -- 0.5% XM Satellite Radio Holdings, Inc., Class A+. 23,900 308,788 ----------- Retail-Building Products -- 1.1% Home Depot, Inc............................. 19,900 731,126 ----------- Retail-Consumer Electronics -- 0.7% Best Buy Co., Inc........................... 10,100 492,072 ----------- Retail-Discount -- 3.6% Target Corp................................. 18,700 1,108,162 Wal-Mart Stores, Inc........................ 28,000 1,314,600 ----------- 2,422,762 ----------- Retail-Drug Store -- 2.1% CVS Corp.................................... 41,602 1,420,292 ----------- Retail-Jewelry -- 0.5% Tiffany & Co................................ 7,300 332,004 ----------- Retail-Office Supplies -- 1.0% Staples, Inc................................ 26,900 695,096 ----------- Retail-Regional Department Stores -- 0.9% Kohl's Corp.+............................... 8,100 620,541 ----------- Telecom Equipment-Fiber Optics -- 1.1% Corning, Inc.+.............................. 31,500 716,310 ----------- Telecom Services -- 1.1% BCE, Inc.................................... 26,300 743,764 ----------- Therapeutics -- 1.2% Gilead Sciences, Inc.+...................... 10,200 780,300 ----------- Web Portals/ISP -- 4.2% Google, Inc., Class A+...................... 3,650 1,672,284 Yahoo!, Inc.+............................... 38,500 1,204,665 ----------- 2,876,949 ----------- Wireless Equipment -- 1.8% QUALCOMM, Inc............................... 28,250 1,205,145 ----------- Total Long-Term Investment Securities (cost $61,215,672)......................... 65,773,184 -----------
Shares/ Principal Value Security Description Amount (Note 3) -------------------------------------------------------------- REPURCHASE AGREEMENT -- 3.4% State Street Bank & Trust Co. Joint Repurchase Agreement(1) (cost $2,280,000)................. $2,280,000 $ 2,280,000 ----------- TOTAL INVESTMENTS -- (cost $63,495,672)(2)............. 100.5% 68,053,184 Liabilities in excess of other assets (0.5) (355,219) ---------- ----------- NET ASSETS -- 100.0% $67,697,965 ========== ===========
- -------- + Non-income producing security (1) See Note 3 for details of Joint Repurchase Agreements (2) See Note 7 for cost of investments on a tax basis ADR --American Depository Receipt See Notes to Financials Statements 29 SunAmerica Growth Opportunities Fund PORTFOLIO PROFILE -- March 31, 2007 -- (unaudited) Industry Allocation* Repurchase Agreements......................... 8.3% Banks-Commercial.............................. 4.8 Consulting Services........................... 4.4 Telecom Services.............................. 3.7 E-Commerce/Products........................... 3.6 Metal Processors & Fabrication................ 3.3 Retail-Apparel/Shoe........................... 2.8 Insurance-Multi-line.......................... 2.7 Oil Field Machinery & Equipment............... 2.7 Casino Services............................... 2.6 Building-MobileHome/Manufactured Housing...... 2.2 Advanced Materials............................ 2.1 Aerospace/Defense-Equipment................... 2.1 Transactional Software........................ 2.1 Distribution/Wholesale........................ 2.0 Internet Financial Services................... 2.0 Retail-Petroleum Products..................... 2.0 Aerospace/Defense............................. 1.9 Commercial Services........................... 1.7 Research & Development........................ 1.7 Commercial Services-Finance................... 1.6 Finance-Investment Banker/Broker.............. 1.6 Finance-Other Services........................ 1.6 Medical Instruments........................... 1.6 Diagnostic Equipment.......................... 1.5 Footwear & Related Apparel.................... 1.5 Internet Security............................. 1.5 Networking Products........................... 1.5 Wireless Equipment............................ 1.5 Casino Hotels................................. 1.4 Internet Connectivity Services................ 1.4 Internet Infrastructure Equipment............. 1.4 Machinery-General Industrial.................. 1.4 Circuit Boards................................ 1.3 Computer Aided Design......................... 1.3 Medical Products.............................. 1.3 Medical-Hospitals............................. 1.3 Music......................................... 1.3 Internet Application Software................. 1.2 Semiconductors Components-Intergrated Circuits 1.2 Telecommunication Equipment................... 1.2 Transport-Truck............................... 1.1 Medical-HMO................................... 1.0 Oil Companies-Exploration & Production........ 1.0 Retail-Catalog Shopping....................... 1.0 Electronic Connectors......................... 0.9 Office Supplies & Forms....................... 0.9 Building & Construction Products-Misc......... 0.8 Human Resources............................... 0.7 Semiconductor Equipment....................... 0.7 Medical-Drugs................................. 0.6 Electronic Components-Semiconductors.......... 0.5 Transport-Services............................ 0.5 Cosmetics & Toiletries........................ 0.4 Entertainment Software........................ 0.4 Patient Monitoring Equipment.................. 0.4 ---- 99.2% ====
- -------- * Calculated as a percentage of Net Assets 30 SunAmerica Growth Opportunities Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited)
Value Security Description Shares (Note 3) ---------------------------------------------------------------- COMMON STOCK -- 90.9% Advanced Materials -- 2.1% Ceradyne, Inc.+............................. 26,500 $1,450,610 ---------- Aerospace/Defense -- 1.9% Spirit Aerosystems Holdings, Inc., Class A+. 41,900 1,334,515 ---------- Aerospace/Defense-Equipment -- 2.1% LMI Aerospace, Inc.+........................ 76,800 1,430,784 ---------- Banks-Commercial -- 4.8% Center Financial Corp....................... 63,600 1,257,372 Dearborn Bancorp, Inc.+..................... 33,170 579,480 SVB Financial Group......................... 18,900 918,351 Western Alliance Bancorp.+.................. 19,200 595,968 ---------- 3,351,171 ---------- Building & Construction Products-Misc. -- 0.8% NCI Building Systems, Inc.+................. 11,200 534,688 ---------- Building-MobileHome/Manufactured Housing -- 2.2% Williams Scotsman International, Inc.+...... 78,500 1,543,310 ---------- Casino Hotel -- 1.4% Trump Entertainment Resorts, Inc.+.......... 53,800 972,166 ---------- Casino Services -- 2.6% Scientific Games Corp., Class A+............ 21,500 705,845 Shuffle Master, Inc.+....................... 61,100 1,115,075 ---------- 1,820,920 ---------- Circuit Boards -- 1.3% Park Electrochemical Corp................... 32,200 873,264 ---------- Commercial Services -- 1.7% AerCap Holdings NV+......................... 16,800 489,048 ICT Group, Inc.+............................ 41,200 721,000 ---------- 1,210,048 ---------- Commercial Services-Finance -- 1.6% Heartland Payment Systems, Inc.............. 47,800 1,129,992 ---------- Computer Aided Design -- 1.3% Aspen Technology, Inc.+..................... 68,600 891,800 ---------- Consulting Services -- 4.4% ICF International, Inc.+.................... 43,700 825,930 LECG Corp.+................................. 79,400 1,149,712 Navigant Consulting, Inc.+.................. 55,000 1,086,800 ---------- 3,062,442 ---------- Cosmetics & Toiletries -- 0.4% Physicians Formula Holdings, Inc.+.......... 14,435 272,533 ---------- Diagnostic Equipment -- 1.5% Home Diagnostics, Inc.+..................... 98,200 1,060,560 ---------- Distribution/Wholesale -- 2.0% WESCO International, Inc.+.................. 22,300 1,399,994 ---------- E-Commerce/Products -- 3.6% NutriSystem, Inc.+.......................... 47,500 2,489,475 ---------- Electronic Components-Semiconductors -- 0.5% QLogic Corp.+............................... 20,500 348,500 ---------- Electronic Connectors -- 0.9% Thomas & Betts Corp.+....................... 13,400 654,188 ----------
Value Security Description Shares (Note 3) ----------------------------------------------------------------- Entertainment Software -- 0.4% Glu Mobile, Inc.+........................... 29,792 $ 297,920 ---------- Finance-Investment Banker/Broker -- 1.6% optionsXpress Holdings, Inc................. 48,300 1,136,982 ---------- Finance-Other Services -- 1.6% Nasdaq Stock Market, Inc.+.................. 37,300 1,096,993 ---------- Footwear & Related Apparel -- 1.5% Steven Madden, Ltd.+........................ 36,600 1,068,720 ---------- Human Resources -- 0.7% Barrett Business Services, Inc.............. 21,500 495,575 ---------- Insurance-Multi-line -- 2.7% HCC Insurance Holdings, Inc................. 59,900 1,844,920 ---------- Internet Application Software -- 1.2% Art Technology Group, Inc.+................. 346,700 804,344 ---------- Internet Connectivity Services -- 1.4% NDS Group PLC ADR+.......................... 19,900 993,806 ---------- Internet Financial Services -- 2.0% Online Resources Corp.+..................... 120,300 1,379,841 ---------- Internet Infrastructure Equipment -- 1.4% Avocent Corp.+.............................. 36,300 979,011 ---------- Internet Security -- 1.5% CheckFree Corp.+............................ 28,400 1,053,356 ---------- Machinery-General Industrial -- 1.4% Flow International Corp.+................... 89,200 958,008 ---------- Medical Instruments -- 1.6% ArthroCare Corp.+........................... 30,700 1,106,428 ---------- Medical Products -- 1.3% Northstar Neuroscience, Inc.+............... 73,100 935,680 ---------- Medical-Drugs -- 0.6% Adams Respiratory Therapeutics, Inc.+....... 12,600 423,738 ---------- Medical-HMO -- 1.0% Magellan Health Services, Inc.+............. 16,600 697,200 ---------- Medical-Hospitals -- 1.3% Health Management Assoc., Inc.,Class A...... 80,600 876,122 ---------- Metal Processors & Fabrication -- 3.3% Dynamic Materials Corp.+.................... 69,900 2,287,128 ---------- Music -- 1.3% Warner Music Group Corp..................... 55,100 940,006 ---------- Networking Products -- 1.5% Anixter International, Inc.+................ 15,600 1,028,664 ---------- Office Supplies & Forms -- 0.9% The Standard Register Co.................... 47,800 604,670 ---------- Oil Companies-Exploration & Production -- 1.0% Edge Petroleum Corp.+....................... 54,000 676,080 ---------- Oil Field Machinery & Equipment -- 2.7% Metretek Technologies, Inc.+................ 140,600 1,875,604 ---------- Patient Monitoring Equipment -- 0.4% Aspect Medical Systems, Inc.+............... 17,876 278,687 ----------
31 SunAmerica Growth Opportunities Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Shares/ Principal Value Security Description Amount (Note 3) ------------------------------------------------------------------- COMMON STOCK (continued) Research & Development -- 1.7% Pharmaceutical Product Development, Inc... 34,100 $ 1,148,829 ----------- Retail-Apparel/Shoe -- 2.8% The Children's Place Retail Stores, Inc.+. 22,500 1,254,600 Tween Brands, Inc.+....................... 19,000 678,680 ----------- 1,933,280 ----------- Retail-Catalog Shopping -- 1.0% Coldwater Creek, Inc.+.................... 34,500 699,660 ----------- Retail-Petroleum Products -- 2.0% World Fuel Services Corp.................. 30,400 1,406,304 ----------- Semiconductor Equipment -- 0.7% Rudolph Technologies, Inc.+............... 29,000 505,760 ----------- Semiconductors Components-Intergrated Circuits -- 1.2% Integrated Device Technology, Inc.+....... 54,100 834,222 ----------- Telecom Services -- 3.7% Allot Communications, Ltd.+............... 109,600 1,002,840 NeuStar Inc., Class A+.................... 55,400 1,575,576 ----------- 2,578,416 ----------- Telecommunication Equipment -- 1.2% Sirenza Microdevices, Inc.+............... 97,400 839,588 ----------- Transactional Software -- 2.1% Transaction Systems Architects, Inc.+..... 44,800 1,451,072 ----------- Transport-Services -- 0.5% UTI Worldwide, Inc........................ 14,300 351,494 ----------- Transport-Truck -- 1.1% Forward Air Corp.......................... 23,877 785,075 ----------- Wireless Equipment -- 1.5% Radyne Corp.+............................. 112,800 1,028,736 ----------- Total Long-Term Investment Securities (cost $61,263,415)........................ 63,232,879 ----------- REPURCHASE AGREEMENT -- 8.3% State Street Bank & Trust Co., Joint Repurchase Agreement(1) (cost $5,722,000)........................ $5,722,000 5,722,000 ----------- TOTAL INVESTMENTS -- (cost $66,985,415)(2)..................... 99.2% 68,954,879 Other assets less liabilities............... 0.8 590,163 ---------- ----------- NET ASSETS -- 100.0% $69,545,042 ========== ===========
- -------- + Non-income producing security (1) See Note 3 for details of Joint Repurchase Agreement. (2) See Note 7 for cost of investment on a tax basis. ADR --American Depository Receipt See Notes to Financials Statements 32 SunAmerica New Century Fund PORTFOLIO PROFILE -- March 31, 2007 -- (unaudited) Industry Allocation* Repurchase Agreements......................... 19.2% Telecom Services.............................. 5.6 Finance-Investment Banker/Broker.............. 4.0 E-Commerce/Products........................... 3.3 Casino Services............................... 2.7 Insurance-Multi-line.......................... 2.7 Retail-Apparel/Shoe........................... 2.6 Industrial Automated/Robotic.................. 2.5 Electronic Measurement Instruments............ 2.4 Distribution/Wholesale........................ 2.1 Semiconductor Equipment....................... 2.1 Advanced Materials............................ 1.9 Transactional Software........................ 1.9 Building-MobileHome/Manufactured Housing...... 1.8 Medical Instruments........................... 1.8 Medical-Generic Drugs......................... 1.8 Research & Development........................ 1.8 Banks-Commercial.............................. 1.7 Data Processing/Management.................... 1.7 Footwear & Related Apparel.................... 1.6 Retail-Petroleum Products..................... 1.6 Aerospace/Defense............................. 1.5 Electric Products-Misc........................ 1.5 Finance-Other Services........................ 1.5 Internet Security............................. 1.5 Retirement/Aged Care.......................... 1.5 Networking Products........................... 1.4 Finance-Consumer Loans........................ 1.3 Internet Infrastructure Equipment............. 1.3 Medical-Biomedical/Gene....................... 1.3 Medical-Hospitals............................. 1.3 Music......................................... 1.3 Commercial Services........................... 1.2 Food-Confectionery............................ 1.2 Retail-Consumer Electronics................... 1.2 Internet Connectivity Services................ 1.1 Cable TV...................................... 1.0 Medical-HMO................................... 1.0 Publishing-Newspapers......................... 1.0 Retail-Catalog Shopping....................... 1.0 Semiconductors Components-Intergrated Circuits 0.9 Telecom Equipment-Fiber Optics................ 0.9 Transport-Truck............................... 0.9 Building & Construction Products-Misc......... 0.8 Electronic Connectors......................... 0.8 Disposable Medical Products................... 0.8 Pharmacy Services............................. 0.7 Retail-Office Supplies........................ 0.6 Water......................................... 0.6 Electronic Components-Semiconductors.......... 0.5 Medical Information Systems................... 0.5 Medical-Drugs................................. 0.5 Therapeutics.................................. 0.5 Transport-Services............................ 0.5 ----- 100.4% =====
- -------- * Calculated as a percentage of Net Assets 33 SunAmerica New Century Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited)
Value Security Description Shares (Note 3) ----------------------------------------------------------------- COMMON STOCK -- 81.2% Advanced Materials -- 1.9% Ceradyne, Inc.+............................. 38,900 $2,129,386 ---------- Aerospace/Defense -- 1.5% Spirit Aerosystems Holdings, Inc., Class A+. 52,300 1,665,755 ---------- Banks-Commercial -- 1.7% SVB Financial Group+........................ 28,700 1,394,533 Whitney Holding Corp........................ 14,400 440,352 ---------- 1,834,885 ---------- Building & Construction Products-Misc. -- 0.8% NCI Building Systems, Inc.+................. 18,000 859,320 ---------- Building-MobileHome/Manufactured Housing -- 1.8% Williams Scotsman International, Inc.+...... 101,700 1,999,422 ---------- Cable TV -- 1.0% Time Warner Cable, Inc. Class A+............ 28,500 1,067,895 ---------- Casino Services -- 2.7% Scientific Games Corp., Class A+............ 35,500 1,165,465 Shuffle Master, Inc.+....................... 97,600 1,781,200 ---------- 2,946,665 ---------- Commercial Services -- 1.2% AerCap Holdings NV+......................... 28,300 823,813 Alliance Data Systems Corp.+................ 7,900 486,798 ---------- 1,310,611 ---------- Data Processing/Management -- 1.7% Global Payments, Inc........................ 53,800 1,832,428 ---------- Disposable Medical Products -- 0.8% C.R. Bard, Inc.............................. 11,400 906,414 ---------- Distribution/Wholesale -- 2.1% WESCO International, Inc.+.................. 36,800 2,310,304 ---------- E-Commerce/Products -- 3.3% NutriSystem, Inc.+.......................... 70,400 3,689,664 ---------- Electric Products-Misc. -- 1.5% Molex, Inc.................................. 60,800 1,714,560 ---------- Electronic Components-Semiconductors -- 0.5% QLogic Corp.+............................... 34,600 588,200 ---------- Electronic Connectors -- 0.8% Thomas & Betts Corp.+....................... 17,100 834,822 ---------- Electronic Measurement Instruments -- 2.4% Agilent Technologies, Inc.+................. 77,700 2,617,713 ---------- Finance-Consumer Loans -- 1.3% SLM Corp.................................... 34,200 1,398,780 ---------- Finance-Investment Banker/Broker -- 4.0% optionsXpress Holdings, Inc................. 71,600 1,685,464 TD Ameritrade Holding Corp.+................ 185,500 2,760,240 ---------- 4,445,704 ---------- Finance-Other Services -- 1.5% Nasdaq Stock Market, Inc.+.................. 55,200 1,623,432 ---------- Food-Confectionery -- 1.2% Hershey Co.................................. 24,800 1,355,568 ----------
Value Security Description Shares (Note 3) -------------------------------------------------------------- Footwear & Related Apparel -- 1.6% Steven Madden, Ltd.+...................... 59,000 $1,722,800 ---------- Industrial Automated/Robotic -- 2.5% Rockwell Automation, Inc.................. 45,900 2,748,033 ---------- Insurance-Multi-line -- 2.7% HCC Insurance Holdings, Inc............... 97,500 3,003,000 ---------- Internet Connectivity Services -- 1.1% NDS Group PLC ADR+........................ 25,200 1,258,488 ---------- Internet Infrastructure Equipment -- 1.3% Avocent Corp.+............................ 55,200 1,488,744 ---------- Internet Security -- 1.5% CheckFree Corp.+.......................... 45,500 1,687,595 ---------- Medical Information Systems -- 0.5% Allscripts Heathcare Solutions, Inc.+..... 22,000 589,820 ---------- Medical Instruments -- 1.8% ArthroCare Corp.+......................... 39,100 1,409,164 Ventana Medical Systems, Inc.+............ 15,000 628,500 ---------- 2,037,664 ---------- Medical-Biomedical/Gene -- 1.3% Genzyme Corp.+............................ 23,400 1,404,468 ---------- Medical-Drugs -- 0.5% Adams Respiratory Therapeutics, Inc.+..... 16,300 548,169 ---------- Medical-Generic Drugs -- 1.8% Barr Pharmaceuticals, Inc.+............... 42,300 1,960,605 ---------- Medical-HMO -- 1.0% Magellan Health Services, Inc.+........... 26,500 1,113,000 ---------- Medical-Hospitals -- 1.3% Health Management Assoc., Inc., Class A... 127,800 1,389,186 ---------- Music -- 1.3% Warner Music Group Corp................... 87,300 1,489,338 ---------- Networking Products -- 1.4% Anixter International, Inc.+.............. 24,100 1,589,154 ---------- Pharmacy Services -- 0.7% Express Scripts, Inc.+.................... 10,000 807,200 ---------- Publishing-Newspapers -- 1.0% Dow Jones & Co., Inc...................... 30,800 1,061,676 ---------- Research & Development -- 1.8% Pharmaceutical Product Development, Inc... 57,700 1,943,913 ---------- Retail-Apparel/Shoe -- 2.6% The Children's Place Retail Stores, Inc.+. 33,700 1,879,112 Tween Brands, Inc.+....................... 28,800 1,028,736 ---------- 2,907,848 ---------- Retail-Catalog Shopping -- 1.0% Coldwater Creek, Inc.+.................... 54,600 1,107,288 ---------- Retail-Consumer Electronics -- 1.2% Best Buy Co., Inc......................... 28,300 1,378,776 ---------- Retail-Office Supplies -- 0.6% Office Depot, Inc.+....................... 19,800 695,772 ----------
34 SunAmerica New Century Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Shares/ Principal Value Security Description Amount (Note 3) ------------------------------------------------------------------ COMMON STOCK (continued) Retail-Petroleum Products -- 1.6% World Fuel Services Corp.............. 38,300 $ 1,771,758 ------------ Retirement/Aged Care -- 1.5% Brookdale Senior Living, Inc.......... 37,100 1,656,886 ------------ Semiconductor Equipment -- 2.1% Lam Research Corp.+................... 48,500 2,295,990 ------------ Semiconductors Components-Intergrated Circuits -- 0.9% Integrated Device Technology, Inc.+.... 67,300 1,037,766 ------------ Telecom Equipment-Fiber Optics -- 0.9% Corning, Inc.+......................... 42,700 970,998 ------------ Telecom Services -- 5.6% BCE, Inc............................... 46,700 1,320,676 NeuStar Inc., Class A+................. 87,700 2,494,188 TELUS Corp............................. 47,400 2,370,000 ------------ 6,184,864 ------------ Therapeutics -- 0.5% BioMarin Pharmaceutical, Inc.+......... 31,500 543,690 ------------ Transactional Software -- 1.9% Transaction Systems Architects, Inc.+.. 64,200 2,079,438 ------------ Transport-Services -- 0.5% UTI Worldwide, Inc..................... 23,000 565,340 ------------ Transport-Truck -- 0.9% Forward Air Corp....................... 29,300 963,384 ------------ Water -- 0.6% Aqua America, Inc...................... 28,900 648,805 ------------ Total Long-Term Investment Securities (cost $87,765,049).................... 89,782,984 ------------ REPURCHASE AGREEMENTS -- 19.2% State Street Bank & Trust Co. Joint Repurchase Agreement............ $18,068,000 18,068,000 UBS Securities, LLC Joint Repurchase Agreement............ 3,234,000 3,234,000 ------------ Total Repurchase Agreements (cost $21,302,000)(1)................. 21,302,000 ------------ TOTAL INVESTMENTS -- (cost $109,067,049)(2)................. 100.4% 111,084,984 Liabilities in excess of other assets.... (0.4) (469,564) ----------- ------------ NET ASSETS -- 100.0% $110,615,420 =========== ============
- -------- + Non-income producing security (1) See Note 3 for details of Joint Repurchase Agreements (2) See Note 7 for cost of investments on a tax basis ADR --American Depository Receipt See Notes to Financials Statements 35 SunAmerica Growth and Income Fund PORTFOLIO PROFILE -- March 31, 2007 -- (unaudited) Industry Allocation* Finance-Investment Banker/Broker.... 9.3% Diversified Manufactured Operations. 7.7 Oil Companies-Integrated............ 7.5 Banks-Super Regional................ 5.6 Medical-Drugs....................... 4.4 Telephone-Integrated................ 3.7 Computers........................... 3.3 Medical-Biomedical/Gene............. 2.6 Oil-Field Services.................. 2.6 Electric-Integrated................. 2.3 Electronic Components-Semiconductors 2.3 Retail-Building Products............ 2.2 Applications Software............... 2.0 Finance-Credit Card................. 2.0 Networking Products................. 1.9 Multimedia.......................... 1.7 Telecom Services.................... 1.7 Tobacco............................. 1.7 Beverages-Non-alcoholic............. 1.6 Medical-HMO......................... 1.6 Retail-Discount..................... 1.6 Aerospace/Defense-Equipment......... 1.5 Cosmetics & Toiletries.............. 1.5 Finance-Mortgage Loan/Banker........ 1.5 Food-Confectionery.................. 1.5 Food-Misc........................... 1.5 Oil Refining & Marketing............ 1.5 Retail-Office Supplies.............. 1.5 Wireless Equipment.................. 1.5 Cable TV............................ 1.4 Medical Products.................... 1.4 Chemicals-Diversified............... 1.2 E-Commerce/Services................. 1.1 Paper & Related Products............ 1.1 Aerospace/Defense................... 1.0 Distribution/Wholesale.............. 1.0 Enterprise Software/Service......... 1.0 Finance-Consumer Loans.............. 1.0 Food-Wholesale/Distribution......... 1.0 Industrial Automated/Robotic........ 1.0 Medical Instruments................. 1.0 Medical-Wholesale Drug Distribution. 1.0 Retail-Drug Store................... 1.0 Transport-Services.................. 1.0 Web Portals/ISP..................... 1.0 Metal-Aluminum...................... 0.8 ---- 99.3% ====
- -------- * Calculated as a percentage of Net Assets 36 SunAmerica Growth and Income Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited)
Value Security Description Shares (Note 3) -------------------------------------------------------------- COMMON STOCK -- 99.3% Aerospace/Defense -- 1.0% Boeing Co................................. 13,000 $1,155,830 ---------- Aerospace/Defense-Equipment -- 1.5% United Technologies Corp.................. 25,100 1,631,500 ---------- Applications Software -- 2.0% Microsoft Corp............................ 77,400 2,157,138 ---------- Banks-Super Regional -- 5.6% Bank of America Corp...................... 44,200 2,255,084 Wachovia Corp............................. 40,500 2,229,525 Wells Fargo & Co.......................... 49,200 1,693,956 ---------- 6,178,565 ---------- Beverages-Non-alcoholic -- 1.6% PepsiCo, Inc.............................. 27,100 1,722,476 ---------- Cable TV -- 1.4% Comcast Corp., Class A+................... 59,700 1,549,215 ---------- Chemicals-Diversified -- 1.2% Dow Chemical Co........................... 28,400 1,302,424 ---------- Computers -- 3.3% Apple Computer, Inc.+..................... 12,200 1,133,502 Hewlett-Packard Co........................ 27,200 1,091,808 International Business Machines Corp...... 15,500 1,461,030 ---------- 3,686,340 ---------- Cosmetics & Toiletries -- 1.5% Procter & Gamble Co....................... 26,200 1,654,792 ---------- Distribution/Wholesale -- 1.0% WESCO International, Inc.+................ 17,200 1,079,816 ---------- Diversified Manufactured Operations -- 7.7% 3M Co..................................... 21,700 1,658,531 Dover Corp................................ 34,700 1,693,707 General Electric Co....................... 83,000 2,934,880 Textron, Inc.............................. 24,400 2,191,120 ---------- 8,478,238 ---------- E-Commerce/Services -- 1.1% eBay, Inc.+............................... 38,000 1,259,700 ---------- Electric-Integrated -- 2.3% Duke Energy Corp.......................... 67,800 1,375,662 Exelon Corp............................... 16,400 1,126,844 ---------- 2,502,506 ---------- Electronic Components-Semiconductors -- 2.3% Intel Corp................................ 80,100 1,532,313 Texas Instruments, Inc.................... 35,100 1,056,510 ---------- 2,588,823 ---------- Enterprise Software/Service -- 1.0% Oracle Corp.+............................. 61,000 1,105,930 ---------- Finance-Consumer Loans -- 1.0% SLM Corp.................................. 26,600 1,087,940 ---------- Finance-Credit Card -- 2.0% American Express Co....................... 38,500 2,171,400 ----------
Value Security Description Shares (Note 3) --------------------------------------------------------------- Finance-Investment Banker/Broker -- 9.3% Citigroup, Inc........................... 53,900 $ 2,767,226 J.P. Morgan Chase & Co................... 48,600 2,351,268 Morgan Stanley........................... 20,700 1,630,332 TD Ameritrade Holding Corp.+............. 103,000 1,532,640 The Bear Stearns Cos., Inc............... 13,400 2,014,690 ----------- 10,296,156 ----------- Finance-Mortgage Loan/Banker -- 1.5% Fannie Mae............................... 29,700 1,621,026 ----------- Food-Confectionery -- 1.5% Hershey Co............................... 29,900 1,634,334 ----------- Food-Misc. -- 1.5% General Mills, Inc....................... 29,000 1,688,380 ----------- Food-Wholesale/Distribution -- 1.0% Sysco Corp............................... 34,100 1,153,603 ----------- Industrial Automated/Robotic -- 1.0% Rockwell Automation, Inc................. 18,200 1,089,634 ----------- Medical Instruments -- 1.0% Medtronic, Inc........................... 21,900 1,074,414 ----------- Medical Products -- 1.4% Johnson & Johnson........................ 25,400 1,530,604 ----------- Medical-Biomedical/Gene -- 2.6% Amgen, Inc.+............................. 8,800 491,744 Genzyme Corp.+........................... 17,500 1,050,350 MedImmune, Inc.+......................... 35,600 1,295,484 ----------- 2,837,578 ----------- Medical-Drugs -- 4.4% Abbott Laboratories...................... 24,800 1,383,840 Bristol-Myers Squibb Co.................. 19,800 549,648 Novartis AG ADR.......................... 19,600 1,070,748 Pfizer, Inc.............................. 73,950 1,867,977 ----------- 4,872,213 ----------- Medical-HMO -- 1.6% UnitedHealth Group, Inc.................. 32,600 1,726,822 ----------- Medical-Wholesale Drug Distribution -- 1.0% Cardinal Health, Inc..................... 15,800 1,152,610 ----------- Metal-Aluminum -- 0.8% Alcoa, Inc............................... 26,300 891,570 ----------- Multimedia -- 1.7% News Corp., Class A...................... 79,400 1,835,728 ----------- Networking Products -- 1.9% Cisco Systems, Inc.+..................... 82,500 2,106,225 ----------- Oil Companies-Integrated -- 7.5% Chevron Corp............................. 23,800 1,760,248 ConocoPhillips........................... 25,400 1,736,090 Exxon Mobil Corp......................... 47,700 3,598,965 Occidental Petroleum Corp................ 23,300 1,148,923 ----------- 8,244,226 -----------
37 SunAmerica Growth and Income Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Value Security Description Shares (Note 3) ----------------------------------------------------------- COMMON STOCK (continued) Oil Refining & Marketing -- 1.5% Valero Energy Corp................... 25,900 $ 1,670,291 ------------ Oil-Field Services -- 2.6% Schlumberger, Ltd.................... 16,800 1,160,880 Smith International, Inc............. 36,500 1,753,825 ------------ 2,914,705 ------------ Paper & Related Products -- 1.1% International Paper Co............... 34,800 1,266,720 ------------ Retail-Building Products -- 2.2% Home Depot, Inc...................... 33,800 1,241,812 Lowe's Cos., Inc..................... 38,300 1,206,067 ------------ 2,447,879 ------------ Retail-Discount -- 1.6% Target Corp.......................... 30,000 1,777,800 ------------ Retail-Drug Store -- 1.0% CVS Corp............................. 33,000 1,126,620 ------------ Retail-Office Supplies -- 1.5% Staples, Inc......................... 65,600 1,695,104 ------------ Telecom Services -- 1.7% BCE, Inc............................. 65,200 1,843,856 ------------ Telephone-Integrated -- 3.7% AT&T, Inc............................ 59,500 2,346,085 Verizon Communications, Inc.......... 44,300 1,679,856 ------------ 4,025,941 ------------ Tobacco -- 1.7% Altria Group, Inc.................... 21,000 1,844,010 ------------ Transport-Services -- 1.0% United Parcel Service, Inc., Class B. 15,400 1,079,540 ------------ Web Portals/ISP -- 1.0% Yahoo!, Inc.+........................ 35,100 1,098,279 ------------ Wireless Equipment -- 1.5% QUALCOMM, Inc........................ 39,300 1,676,538 ------------ Total Long-Term Investment Securities (cost $102,963,015)................. 109,535,039 ------------ TOTAL INVESTMENTS -- (cost $102,963,015)(1).............. 99.3% 109,535,039 Other assets less liabilities.......... 0.7 825,039 ------ ------------ NET ASSETS -- 100.0% $110,360,078 ====== ============
- -------- + Non-income producing security (1) See Note 7 for cost of investment on a tax basis ADR --American Depository Receipt See Notes to Financials Statements 38 SunAmerica Balanced Assets Fund PORTFOLIO PROFILE -- March 31, 2007 -- (unaudited) Industry Allocation* U.S. Government Agencies............ 13.5% Finance-Investment Banker/Broker.... 6.0 Diversified Financial Services...... 4.8 Oil Companies-Integrated............ 3.9 Banks-Super Regional................ 3.8 Diversified Manufactured Operations. 3.8 Telephone-Integrated................ 2.5 Computers........................... 2.3 Medical-Drugs....................... 2.3 Electric-Integrated................. 2.2 Foreign Government Agencies......... 2.0 Multimedia.......................... 1.9 Cosmetics & Toiletries.............. 1.8 Retail-Discount..................... 1.8 Medical-Biomedical/Gene............. 1.6 Telecom Services.................... 1.5 Web Portals/ISP..................... 1.5 Electric Products-Misc.............. 1.4 Finance-Credit Card................. 1.4 Medical Products.................... 1.4 Medical-HMO......................... 1.4 Repurchase Agreements............... 1.4 Electronic Components-Semiconductors 1.3 Oil Refining & Marketing............ 1.3 Special Purpose Entities............ 1.3 Applications Software............... 1.1 Banks-Fiduciary..................... 1.1 Cable TV............................ 1.1 Finance-Mortgage Loan/Banker........ 1.1 Oil-Field Services.................. 1.1 Banks-Commercial.................... 1.0 Aerospace/Defense................... 0.9 Aerospace/Defense-Equipment......... 0.9 Beverages-Non-alcoholic............. 0.9 Insurance-Multi-line................ 0.8 Networking Products................. 0.8 Retail-Building Products............ 0.8 Retail-Drug Store................... 0.8 Banks-Money Center.................. 0.7 Finance-Consumer Loans.............. 0.7 Insurance-Property/Casualty......... 0.7 Brewery............................. 0.6 Industrial Automated/Robotic........ 0.6 Medical Instruments................. 0.6 Paper & Related Products............ 0.6 Wireless Equipment.................. 0.6 Cellular Telecom.................... 0.5 Chemicals-Diversified............... 0.5 Distribution/Wholesale.............. 0.5 Food-Misc........................... 0.5 Non-Hazardous Waste Disposal........ 0.5 Pipelines........................... 0.5 Tobacco............................. 0.5 Agricultural Chemicals.............. 0.4 E-Commerce/Services................. 0.4 Electronic Measurement Instruments.. 0.4 Electronics-Military................ 0.4 Enterprise Software/Service......... 0.4
Machinery-Construction & Mining....... 0.4% Pharmacy Services..................... 0.4 Real Estate Investment Trusts......... 0.4 Retail-Office Supplies................ 0.4 Savings & Loans/Thrifts............... 0.4 Telecom Equipment-Fiber Optics........ 0.4 Therapeutics.......................... 0.4 Beverages-Wine/Spirits................ 0.3 Casino Services....................... 0.3 Coal.................................. 0.3 Commercial Services................... 0.3 Computer Aided Design................. 0.3 Entertainment Software................ 0.3 Finance-Auto Loans.................... 0.3 Industrial Gases...................... 0.3 Machinery-General Industrial.......... 0.3 Metal-Aluminum........................ 0.3 Oil Companies-Exploration & Production 0.3 Radio................................. 0.3 Retail-Regional Department Stores..... 0.3 Transport-Air Freight................. 0.3 Containers-Paper/Plastic.............. 0.2 Independent Power Producers........... 0.2 Medical-Generic Drugs................. 0.2 Retail-Consumer Electronics........... 0.2 Retail-Jewelry........................ 0.2 Transport-Rail........................ 0.2 Airlines.............................. 0.1 Auto-Cars/Light Trucks................ 0.1 Broadcast Services/Program............ 0.1 Building Products-Cement.............. 0.1 Casino Hotels......................... 0.1 Chemicals-Specialty................... 0.1 Diversified Minerals.................. 0.1 Electric-Generation................... 0.1 Financial Guarantee Insurance......... 0.1 Funeral Services & Related Items...... 0.1 Gas-Distribution...................... 0.1 Insurance Brokers..................... 0.1 Insurance-Life/Health................. 0.1 Investment Companies.................. 0.1 Leisure Products...................... 0.1 Medical-Hospitals..................... 0.1 Medical-Wholesale Drug Distribution... 0.1 Metal Processors & Fabrication........ 0.1 Office Automation & Equipment......... 0.1 Precious Metals....................... 0.1 Publishing-Newspapers................. 0.1 Real Estate Operations & Development.. 0.1 Satellite Telecom..................... 0.1 Steel-Producers....................... 0.1 Television............................ 0.1 Transport-Services.................... 0.1 ----- 101.9% =====
- -------- * Calculated as a percentage of Net Assets 39 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited)
Value Security Description Shares (Note 3) --------------------------------------------------------------- COMMON STOCK -- 64.3% Aerospace/Defense -- 0.6% Boeing Co................................... 7,300 $ 649,043 Spirit Aerosystems Holdings, Inc., Class A+. 9,200 293,020 ---------- 942,063 ---------- Aerospace/Defense-Equipment -- 0.9% United Technologies Corp.................... 22,800 1,482,000 ---------- Agricultural Chemicals -- 0.3% Monsanto Co................................. 9,300 511,128 ---------- Applications Software -- 1.1% Microsoft Corp.............................. 60,278 1,679,948 ---------- Banks-Fiduciary -- 1.1% The Bank of New York Co., Inc............... 42,100 1,707,155 ---------- Banks-Super Regional -- 3.5% Bank of America Corp........................ 37,788 1,927,944 US Bancorp.................................. 30,700 1,073,579 Wachovia Corp............................... 26,800 1,475,340 Wells Fargo & Co............................ 28,200 970,926 ---------- 5,447,789 ---------- Beverages-Non-alcoholic -- 0.9% PepsiCo, Inc................................ 22,700 1,442,812 ---------- Beverages-Wine/Spirits -- 0.2% Constellation Brands, Inc., Class A+........ 13,500 285,930 ---------- Brewery -- 0.5% Anheuser-Busch Cos., Inc.................... 14,200 716,532 ---------- Cable TV -- 0.8% Comcast Corp., Class A+..................... 50,000 1,297,500 ---------- Casino Services -- 0.3% International Game Technology............... 12,400 500,712 ---------- Cellular Telecom -- 0.4% NII Holdings, Inc.+......................... 7,500 556,350 ---------- Chemicals-Diversified -- 0.4% Dow Chemical Co............................. 12,400 568,664 ---------- Coal -- 0.3% Peabody Energy Corp......................... 13,600 547,264 ---------- Commercial Services -- 0.3% AerCap Holdings NV+......................... 16,000 465,760 ---------- Computer Aided Design -- 0.3% Autodesk, Inc.+............................. 13,900 522,640 ---------- Computers -- 2.3% Apple Computer, Inc.+....................... 9,800 910,518 Hewlett-Packard Co.......................... 28,700 1,152,018 International Business Machines Corp........ 16,200 1,527,012 ---------- 3,589,548 ---------- Cosmetics & Toiletries -- 1.7% Procter & Gamble Co......................... 41,700 2,633,772 ---------- Distribution/Wholesale -- 0.5% WESCO International, Inc.+.................. 11,400 715,692 ----------
Value Security Description Shares (Note 3) -------------------------------------------------------------- Diversified Manufactured Operations -- 3.5% 3M Co..................................... 16,700 $1,276,381 Danaher Corp.............................. 10,000 714,500 Dover Corp................................ 12,090 590,113 General Electric Co....................... 83,500 2,952,560 ---------- 5,533,554 ---------- E-Commerce/Services -- 0.4% eBay, Inc.+............................... 17,300 573,495 ---------- Electric Products-Misc. -- 1.4% AMETEK, Inc............................... 25,300 873,862 Emerson Electric Co....................... 31,600 1,361,644 ---------- 2,235,506 ---------- Electric-Integrated -- 1.3% Duke Energy Corp.......................... 38,900 789,281 Exelon Corp............................... 7,300 501,583 FPL Group, Inc............................ 12,300 752,391 ---------- 2,043,255 ---------- Electronic Components-Semiconductors -- 1.3% Intel Corp................................ 50,400 964,152 Intersil Corp., Class A................... 22,200 588,078 Texas Instruments, Inc.................... 18,400 553,840 ---------- 2,106,070 ---------- Electronic Measurement Instruments -- 0.4% Agilent Technologies, Inc.+............... 16,900 569,361 ---------- Electronics-Military -- 0.4% L-3 Communications Holdings, Inc.......... 6,400 559,808 ---------- Enterprise Software/Service -- 0.4% Oracle Corp.+............................. 32,300 585,599 ---------- Entertainment Software -- 0.3% Electronic Arts, Inc.+.................... 9,500 478,420 ---------- Finance-Consumer Loans -- 0.6% SLM Corp.................................. 24,600 1,006,140 ---------- Finance-Credit Card -- 1.4% American Express Co....................... 38,300 2,160,120 ---------- Finance-Investment Banker/Broker -- 5.6% Citigroup, Inc............................ 49,088 2,520,178 Goldman Sachs Group, Inc.................. 4,184 864,540 J.P. Morgan Chase & Co.................... 35,700 1,727,166 Merrill Lynch & Co., Inc.................. 6,900 563,523 Morgan Stanley............................ 12,900 1,016,004 TD Ameritrade Holding Corp.+.............. 81,700 1,215,696 The Bear Stearns Cos., Inc................ 5,800 872,030 ---------- 8,779,137 ---------- Finance-Mortgage Loan/Banker -- 0.6% Fannie Mae................................ 17,500 955,150 ---------- Food-Misc. -- 0.5% General Mills, Inc........................ 13,000 756,860 ---------- Industrial Automated/Robotic -- 0.6% Rockwell Automation, Inc.................. 16,700 999,829 ----------
40 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Value Security Description Shares (Note 3) --------------------------------------------------------- COMMON STOCK (continued) Industrial Gases -- 0.3% Air Products & Chemicals, Inc........ 7,100 $ 525,116 ---------- Insurance-Multi-line -- 0.5% MetLife, Inc......................... 12,200 770,430 ---------- Insurance-Property/Casualty -- 0.5% Chubb Corp........................... 9,600 496,032 OneBeacon Insurance Group, Ltd....... 9,700 242,500 ---------- 738,532 ---------- Machinery-Construction & Mining -- 0.4% Caterpillar, Inc..................... 8,700 583,161 ---------- Machinery-General Industrial -- 0.3% IDEX Corp............................ 9,039 459,904 ---------- Medical Instruments -- 0.6% Medtronic, Inc....................... 17,800 873,268 ---------- Medical Products -- 1.4% Johnson & Johnson.................... 35,500 2,139,230 ---------- Medical-Biomedical/Gene -- 1.6% Amgen, Inc.+......................... 9,500 530,860 Celgene Corp.+....................... 6,500 340,990 Genentech, Inc.+..................... 6,800 558,416 Genzyme Corp.+....................... 8,300 498,166 MedImmune, Inc.+..................... 14,500 527,655 ---------- 2,456,087 ---------- Medical-Drugs -- 1.9% Abbott Laboratories.................. 6,000 334,800 Allergan, Inc........................ 1,200 132,984 Bristol-Myers Squibb Co.............. 8,700 241,512 Novartis AG ADR...................... 17,500 956,025 Pfizer, Inc.......................... 53,714 1,356,816 ---------- 3,022,137 ---------- Medical-Generic Drugs -- 0.2% Barr Pharmaceuticals, Inc.+.......... 5,400 250,290 ---------- Medical-HMO -- 1.4% Coventry Health Care, Inc.+.......... 9,400 526,870 UnitedHealth Group, Inc.............. 32,500 1,721,525 ---------- 2,248,395 ---------- Metal-Aluminum -- 0.2% Alcoa, Inc........................... 10,800 366,120 ---------- Multimedia -- 1.3% News Corp., Class A.................. 71,074 1,643,231 Time Warner, Inc..................... 23,444 462,315 ---------- 2,105,546 ---------- Networking Products -- 0.8% Cisco Systems, Inc.+................. 47,000 1,199,910 ---------- Non-Hazardous Waste Disposal -- 0.5% Waste Management, Inc................ 20,700 712,287 ---------- Oil Companies-Integrated -- 3.6% Chevron Corp......................... 17,428 1,288,975 ConocoPhillips....................... 18,400 1,257,640
Value Security Description Shares (Note 3) --------------------------------------------------------------- Oil Companies-Integrated (continued) Exxon Mobil Corp............................ 34,800 $2,625,660 Occidental Petroleum Corp................... 10,300 507,893 ---------- 5,680,168 ---------- Oil Refining & Marketing -- 1.2% Sunoco, Inc................................. 8,700 612,828 Valero Energy Corp.......................... 20,200 1,302,698 ---------- 1,915,526 ---------- Oil-Field Services -- 1.1% Schlumberger, Ltd........................... 13,100 905,210 Smith International, Inc.................... 16,100 773,605 ---------- 1,678,815 ---------- Paper & Related Products -- 0.3% International Paper Co...................... 14,900 542,360 ---------- Pharmacy Services -- 0.4% Express Scripts, Inc.+...................... 8,300 669,976 ---------- Radio -- 0.2% XM Satellite Radio Holdings, Inc., Class A+. 18,900 244,188 ---------- Retail-Building Products -- 0.7% Home Depot, Inc............................. 29,300 1,076,482 ---------- Retail-Consumer Electronics -- 0.2% Best Buy Co., Inc........................... 7,900 384,888 ---------- Retail-Discount -- 1.7% Target Corp................................. 14,700 871,122 Wal-Mart Stores, Inc........................ 37,100 1,741,845 ---------- 2,612,967 ---------- Retail-Drug Store -- 0.7% CVS Corp.................................... 32,661 1,115,046 ---------- Retail-Jewelry -- 0.2% Tiffany & Co................................ 5,800 263,784 ---------- Retail-Office Supplies -- 0.4% Staples, Inc................................ 21,300 550,392 ---------- Retail-Regional Department Stores -- 0.3% Kohl's Corp.+............................... 6,400 490,304 ---------- Telecom Equipment-Fiber Optics -- 0.4% Corning, Inc.+.............................. 24,800 563,952 ---------- Telecom Services -- 1.1% BCE, Inc.................................... 58,300 1,648,724 ---------- Telephone-Integrated -- 1.8% AT&T, Inc................................... 40,535 1,598,295 Verizon Communications, Inc................. 32,600 1,236,192 ---------- 2,834,487 ---------- Therapeutics -- 0.4% Gilead Sciences, Inc.+...................... 8,100 619,650 ---------- Tobacco -- 0.5% Altria Group, Inc........................... 9,000 790,290 ----------
41 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Shares/ Principal Value Security Description Amount (Note 3) -------------------------------------------------------------- COMMON STOCKS (continued) Web Portals/ISP -- 1.5% Google, Inc., Class A+.............. 2,950 $ 1,351,572 Yahoo!, Inc.+....................... 30,500 954,345 ------------ 2,305,917 ------------ Wireless Equipment -- 0.6% QUALCOMM, Inc....................... 22,350 953,451 ------------ Total Common Stock (cost $92,679,582)................. 100,347,343 ------------ PREFERRED STOCK -- 0.6% Banks-Money Center -- 0.1% Santander Finance Preferred SA 5.88%*(1).......................... 8,400 207,113 ------------ Diversified Financial Services -- 0.2% General Electric Capital Corp. 8.00%(2)........................... 14,000 335,440 ------------ Finance-Mortgage Loan/Banker -- 0.1% Fannie Mae Series O, 7.00%(1)................. 2,250 119,655 ------------ Special Purpose Entity -- 0.1% Structured Repackaged Asset-Backed Trust Securities 5.88%(1).......... 9,200 216,200 ------------ Telephone-Integrated -- 0.1% AT&T, Inc. 6.38%.............................. 4,400 110,352 ------------ Total Preferred Stock (cost $1,012,175).................. 988,760 ------------ ASSET BACKED SECURITIES -- 4.5% Diversified Financial Services -- 4.5% Bear Stearns Commercial Mtg. Securities Inc. Series 2007-PW15, Class A2 5.21% due 02/11/44(3)(4)........... $ 165,000 164,934 Bear Stearns Commercial Mtg. Securities Inc. Series 2007-PW15, Class H 5.93% due 02/11/44*(3)(4).......... 375,000 367,196 Bear Stearns Commercial Mtg. Securities, Inc., Series 2006-PW12, Class F 5.75% due 09/11/38*(3)(4).......... 340,000 336,602 Bear Stearns Commercial Mtg. Securities, Inc., Series 2006-PW12, Class G 5.75% due 09/11/38*(3)(4).......... 58,000 56,553 Commercial Mtg. Pass Through Certs. Series 2004-LB2A, Class A3 4.22% due 03/10/39(3).............. 1,074,000 1,044,852 Countrywide Asset-Backed Certs. Series 2006-S6, Class A3 5.66% due 03/25/34(3).............. 928,000 929,021 Countrywide Asset-Backed Certs. Series 2006-S4, Class A3 5.80% due 10/25/36................. 920,000 928,338
Principal Value Security Description Amount (Note 3) --------------------------------------------------------------- Diversified Financial Services (continued) J.P. Morgan Chase Commercial Mtg. Securities Corp.,(1) Series 2006-CB16, Class E 5.84% due 05/12/45*(3)(4).............. $230,000 $ 233,701 Merrill Lynch Mortgage Investors, Inc. Series 2004-A1, Class 3A 4.83% due 02/25/34(4).................. 335,795 332,542 Merrill Lynch/Countrywide Commercial Mtg. Trust, Series 2007-5, Class H 6.12% due 08/25/48*(5)................. 210,000 195,579 Morgan Stanley Capital I, Series 2006-IQ12, Class AJ 5.40% due 12/15/43(3).................. 355,000 352,921 Morgan Stanley Capital I, Series 2006-IQ12, Class D 5.53% due 12/15/43(3)(4)............... 250,000 249,204 Ocwen Advance Receivables Backed Notes Series 2006-1A 5.34% due 11/24/15*.................... 350,000 349,125 Providian Master Note Trust Series 2006-C1A, Class C1 5.87% due 03/16/15*(1)................. 550,000 553,352 Wachovia Bank Commercial Mtg. Trust, Series 2006-C27, Class A3 5.77% due 07/15/45(3)(4)............... 160,000 164,287 Wachovia Bank Commercial Mtg. Trust, Series 2006-WL7A, Class F 5.87% due 09/15/21*(1)(3).............. 515,000 515,101 Wells Fargo Mortgage Backed Securities Trust Series 2006-AR12, Class 2A1 6.11% due 09/25/36(4).................. 239,617 242,568 ---------- Total Asset Backed Securities (cost $7,035,665)...................... 7,015,876 ---------- CORPORATE BONDS & NOTES -- 12.0% Aerospace/Defense -- 0.3% Raytheon Co. Debentures 6.00% due 12/15/10..................... 55,000 56,945 Raytheon Co. Senior Notes 6.75% due 08/15/07..................... 220,000 220,942 Raytheon Co. Senior Notes 6.75% due 03/15/18..................... 107,000 117,994 ---------- 395,881 ---------- Agricultural Chemicals -- 0.1% Mosaic Global Holdings, Inc. Debentures 7.38% due 08/01/18..................... 10,000 9,950
42 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 3) ------------------------------------------------------ CORPORATE BONDS & NOTES (continued) Agricultural Chemicals (continued) Terra Capital, Inc. Senior Notes 7.00% due 02/01/17*............. $ 25,000 $ 24,875 The Mosaic Co. Senior Notes 7.38% due 12/01/14*............. 45,000 46,913 -------- 81,738 -------- Airlines -- 0.1% American Airlines, Inc. Pass Through Certs. Series 2001-1, Class A-2 6.82% due 05/23/11.............. 140,000 143,150 -------- Auto-Cars/Light Trucks -- 0.1% DaimlerChrysler NA Holding Corp. Company Guar. Notes 5.69% due 03/13/09(1)........... 60,000 60,105 DaimlerChrysler NA Holding Corp. Company Guar. Bonds 5.75% due 09/08/11.............. 55,000 55,876 Ford Motor Co. Debentures 6.38% due 02/01/29.............. 50,000 35,625 General Motors Corp. Debentures 8.25% due 07/15/23.............. 40,000 36,000 General Motors Corp. Senior Bonds 8.38% due 07/15/33.............. 2,000 1,795 -------- 189,401 -------- Banks-Commercial -- 0.6% Colonial Bank NA Sub. Notes 6.38% due 12/01/15.............. 70,000 72,667 Compass Bank Notes 5.50% due 04/01/20.............. 110,000 108,193 First Maryland Capital II Company Guar. Notes 6.21% due 02/01/27(1)........... 196,000 191,611 Popular North America, Inc. Company Guar. Notes 5.65% due 04/15/09.............. 90,000 90,545 SouthTrust Bank Sub. Notes 4.75% due 03/01/13.............. 120,000 117,693 SouthTrust Corp. Sub. Notes 5.80% due 06/15/14.............. 55,000 56,245 UBS AG Sub. Notes 5.88% due 07/15/16.............. 55,000 57,273 Union Bank of California NA Sub. Notes 5.95% due 05/11/16.............. 120,000 123,462
Principal Value Security Description Amount (Note 3) ---------------------------------------------------------- Banks-Commercial (continued) US Bank NA Notes 3.90% due 08/15/08.................. $ 38,000 $ 37,324 -------- 855,013 -------- Banks-Money Center -- 0.3% BankBoston Capital Trust IV 5.94% due 06/08/28(1)............... 222,000 218,047 Comerica Bank Senior Sub. Notes 5.75% due 11/21/16.................. 130,000 130,335 RBS Capital Trust I Bank Bank Guar. Notes 4.71% due 12/29/49(4)............... 77,000 73,578 -------- 421,960 -------- Banks-Special Purpose -- 0.0% Rabobank Capital Funding II Bonds 5.26% due 12/31/49*(4).............. 70,000 68,107 -------- Banks-Super Regional -- 0.3% Bank of America Corp. Sub. Notes 5.42% due 03/15/17*................. 96,000 95,003 Capital One Financial Corp. Senior Notes 5.70% due 09/15/11.................. 242,000 244,453 Huntington National Bank Sub. Notes 6.60% due 06/15/18.................. 69,000 73,310 Wachovia Capital Trust III Bank Guar. 5.80% due 03/15/42(4)............... 110,000 111,312 -------- 524,078 -------- Brewery -- 0.1% Anheuser-Busch Cos., Inc. Bonds 6.00% due 11/01/41.................. 136,000 132,703 -------- Broadcast Services/Program -- 0.0% Nexstar Finance, Inc. Senior Sub. Notes 7.00% due 01/15/14.................. 35,000 33,600 -------- Building Products-Air & Heating -- 0.0% American Standard, Inc. Company Guar. Notes 7.38% due 02/01/08.................. 51,000 51,649 -------- Building-Residential/Commercial -- 0.0% Lennar Corp. Company Guar. Notes 5.95% due 10/17/11.................. 60,000 59,906 -------- Cable TV -- 0.3% CCH I LLC Company Guar. Notes 11.00% due 10/01/15................. 28,000 28,910
43 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 3) ---------------------------------------------------------- CORPORATE BONDS & NOTES (continued) Cable TV (continued) CCH II LLC/CCH II Capital Corp. Company Guar. Notes 10.25% due 10/01/13.................. $ 85,000 $ 92,863 Comcast Corp. Company Guar. Notes 5.88% due 02/15/18................... 100,000 100,270 Comcast Corp. Company Guar. Notes 6.50% due 01/15/15................... 65,000 68,558 Cox Communications, Inc. Bonds 5.50% due 10/01/15................... 110,000 108,172 -------- 398,773 -------- Casino Hotels -- 0.1% MGM Mirage, Inc. Senior Notes 5.88% due 02/27/14................... 100,000 93,000 Riviera Holdings Corp. Company Guar. Notes 11.00% due 06/15/10.................. 55,000 57,337 -------- 150,337 -------- Cellular Telecom -- 0.1% American Cellular Corp. Senior Notes 10.00% due 08/01/11.................. 16,000 16,940 Centennial Communications Corp. Senior Notes 11.11% due 01/01/13(1)............... 100,000 105,250 Rural Cellular Corp. Senior Sub. Notes 9.75% due 01/15/10................... 65,000 66,950 -------- 189,140 -------- Chemicals-Diversified -- 0.1% EI Du Pont de Nemours & Co. Senior Notes 4.88% due 04/30/14................... 38,000 37,069 ICI Wilmington, Inc. Company Guar. Notes 7.05% due 09/15/07................... 170,000 171,034 -------- 208,103 -------- Chemicals-Specialty -- 0.1% Huntsman International LLC Company Guar. Notes 7.88% due 11/15/14*.................. 55,000 56,856 Momentive Performance Materials, Inc. Senior Sub. Notes 11.50% due 12/01/16*................. 85,000 87,125 Nalco Co. Senior Notes 7.75% due 11/15/11................... 35,000 35,875 -------- 179,856 --------
Principal Value Security Description Amount (Note 3) -------------------------------------------------------------- Commercial Services -- 0.0% The ServiceMaster Co. Notes 7.88% due 08/15/09....................... $ 44,000 $ 46,283 -------- Computer Services -- 0.0% Computer Sciences Corp. Notes 3.50% due 04/15/08....................... 65,000 63,461 -------- Consulting Services -- 0.0% FTI Consulting, Inc. Company Guar. Notes 7.63% due 06/15/13....................... 45,000 46,688 -------- Containers-Paper/Plastic -- 0.2% Jefferson Smurfit Corp. Company Guar. Notes 8.25% due 10/01/12....................... 30,000 30,000 Pliant Corp. Company Guar. Notes 11.13% due 09/01/09...................... 82,000 82,000 Smurfit-Stone Container Enterprises, Inc. Senior Notes 8.00% due 03/15/17*...................... 175,000 171,062 -------- 283,062 -------- Cosmetics & Toiletries -- 0.1% Procter & Gamble Co. Senior Notes 5.55% due 03/05/37....................... 130,000 126,481 -------- Direct Marketing -- 0.0% Affinity Group, Inc. Senior Sub. Notes 9.00% due 02/15/12....................... 45,000 46,238 -------- Diversified Financial Services -- 0.1% AXA Financial, Inc. Senior Notes 6.50% due 04/01/08....................... 55,000 55,595 General Electric Capital Corp. Senior Notes 5.65% due 06/09/14....................... 67,000 68,250 -------- 123,845 -------- Diversified Manufactured Operations -- 0.2% 3M Co. Notes 6.38% due 02/15/28....................... 72,000 77,626 Crane Co. Senior Notes 6.55% due 11/15/36....................... 168,000 167,550 -------- 245,176 -------- Electric-Generation -- 0.1% The AES Corp. Senior Notes 8.88% due 02/15/11....................... 85,000 91,375 --------
44 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 3) -------------------------------------------------------- CORPORATE BONDS & NOTES (continued) Electric-Integrated -- 0.8% American Electric Power Co., Inc. Senior Notes 4.71% due 08/16/07(2)............ $ 72,000 $ 71,789 Appalachian Power Co. Senior Notes 5.00% due 06/01/17............... 72,000 68,148 Centerpoint Energy, Inc. Senior Notes 5.88% due 06/01/08............... 140,000 140,541 Commonwealth Edison Co. 1st Mtg. Bonds 5.90% due 03/15/36............... 84,000 77,964 Dominion Resources, Inc. Senior Notes 5.75% due 05/15/08(2)............ 132,000 132,307 Dominion Resources, Inc. Junior Sub. Notes 6.30% due 09/30/66(2)............ 109,000 111,044 Duke Energy Indiana, Inc. Debentures 5.00% due 09/15/13............... 60,000 58,388 Entergy Louisiana LLC 1st Mtg. Bonds 5.83% due 11/01/10............... 195,000 196,820 Mirant Mid-Atlantic LLC Pass Through Certs. Series B 9.13% due 06/30/17............... 40,254 45,990 Pepco Holdings, Inc. Notes 6.45% due 08/15/12............... 55,000 57,552 PSEG Power LLC Company Guar. Notes 7.75% due 04/15/11............... 65,000 70,492 Public Service Electric & Gas Co. Sec. Notes 5.00% due 08/15/14............... 66,000 64,409 Puget Sound Energy, Inc. Senior Notes 5.20% due 10/01/15............... 212,000 206,287 Southern Energy, Inc. Notes 7.90% due 07/15/09+(1)(5)(6)(11). 150,000 0 ---------- 1,301,731 ---------- Electronics-Military -- 0.0% L-3 Communications Corp. Company Guar. Notes 6.38% due 10/15/15............... 50,000 49,563 ---------- Finance-Auto Loans -- 0.3% Ford Motor Credit Co. Senior Notes 6.63% due 06/16/08............... 55,000 54,826 Ford Motor Credit Co. Notes 7.38% due 10/28/09............... 140,000 139,743
Principal Value Security Description Amount (Note 3) ----------------------------------------------------------- Finance-Auto Loans (continued) General Motors Acceptance Corp. Notes 6.75% due 12/01/14................... $ 45,000 $ 44,239 General Motors Acceptance Corp. Notes 6.88% due 09/15/11................... 255,000 255,247 General Motors Acceptance Corp. Notes 6.88% due 08/28/12................... 13,000 12,948 -------- 507,003 -------- Finance-Commercial -- 0.1% Transamerica Finance Corp. Senior Notes 6.40% due 09/15/08................... 75,000 76,218 -------- Finance-Consumer Loans -- 0.1% HSBC Finance Corp. Notes 4.75% due 07/15/13................... 96,000 92,732 John Deere Capital Corp. Debentures 5.10% due 01/15/13................... 72,000 71,653 -------- 164,385 -------- Finance-Credit Card -- 0.1% Capital One Bank Senior Sub. Notes 6.50% due 06/13/13................... 82,000 85,804 -------- Finance-Investment Banker/Broker -- 0.3% Lehman Brothers Holdings, Inc. Senior Notes 5.25% due 02/06/12................... 65,000 64,941 Merrill Lynch & Co., Inc. Sub. Notes 6.11% due 01/29/37................... 220,000 213,282 Morgan Stanley Notes 5.45% due 01/09/17................... 134,000 131,796 Morgan Stanley Senior Notes 5.63% due 01/09/12................... 65,000 65,854 The Bear Stearns Cos., Inc. Senior Sub. Notes 5.55% due 01/22/17................... 65,000 63,753 -------- 539,626 -------- Finance-Mortgage Loan/Banker -- 0.4% Countrywide Financial Corp. Sub. Notes 6.25% due 05/15/16................... 120,000 120,963 Residential Capital LLC Company Guar. Notes 6.13% due 11/21/08................... 60,000 59,969 Residential Capital LLC Company Guar. Notes 6.38% due 06/30/10................... 267,000 266,928
45 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 3) ------------------------------------------------------------ CORPORATE BONDS & NOTES (continued) Finance-Mortgage Loan/Banker (continued) Residential Capital LLC Company Guar. Notes 6.50% due 04/17/13................... $ 60,000 `$ 59,431 Residential Capital LLC Company Guar. Notes 6.88% due 06/30/15................... 84,000 84,749 --------- 592,040 --------- Food-Misc. -- 0.0% Kraft Foods, Inc. Senior Bonds 5.63% due 11/01/11................... 60,000 60,732 --------- Funeral Services & Related Items -- 0.1% Service Corp. International Senior Notes 6.75% due 04/01/16................... 95,000 94,525 --------- Home Furnishings -- 0.0% Simmons Co. Senior Disc. Notes 10.00% due 12/15/14(2)............... 8,000 6,580 --------- Independent Power Producers -- 0.2% Calpine Corp.+ Sec. Notes 8.75% due 07/15/13*(7)............... 175,000 186,375 NRG Energy, Inc. Company Guar. Notes 7.38% due 02/01/16................... 90,000 92,475 --------- 278,850 --------- Insurance Brokers -- 0.1% Marsh & McLennan Cos., Inc. Senior Notes 5.15% due 09/15/10................... 60,000 59,476 Marsh & McLennan Cos., Inc. Senior Notes 7.13% due 06/15/09................... 40,000 41,489 --------- 100,965 --------- Insurance-Life/Health -- 0.1% Americo Life, Inc. Notes 7.88% due 05/01/13*.................. 134,000 137,735 Monumental Global Funding II Notes 5.65% due 07/14/11*.................. 66,000 67,326 --------- 205,061 --------- Insurance-Multi-line -- 0.0% Metropolitan Life Global Funding I Sec. Notes 5.75% due 07/25/11*.................. 55,000 56,372 --------- Insurance-Property/Casualty -- 0.2% Crum & Forster Holdings Corp. Senior Notes 10.38% due 06/15/13.................. 65,000 70,200
Principal Value Security Description Amount (Note 3) ---------------------------------------------------------- Insurance-Property/Casualty (continued) Fidelity National Title Group, Inc. Notes 7.30% due 08/15/11.................. $131,000 $135,959 WR Berkley Corp. Senior Sub. Notes 6.25% due 02/15/37.................. 120,000 117,208 -------- 323,367 -------- Leisure Products -- 0.1% Brunswick Corp. Notes 5.00% due 06/01/11.................. 103,000 100,653 -------- Machinery-Farming -- 0.0% Case Corp. Notes 7.25% due 01/15/16.................. 50,000 52,250 -------- Medical Products -- 0.1% Baxter International, Inc. Senior Notes 5.90% due 09/01/16.................. 55,000 56,759 Universal Hospital Services, Inc. Senior Notes 10.13% due 11/01/11................. 45,000 47,812 -------- 104,571 -------- Medical-Drugs -- 0.3% Abbott Laboratories Notes 5.88% due 05/15/16.................. 60,000 62,070 American Home Products Corp. Notes 6.95% due 03/15/11.................. 123,000 130,771 Eli Lilly & Co. Notes 5.50% due 03/15/27.................. 130,000 125,253 Wyeth Bonds 5.50% due 02/01/14.................. 126,000 126,768 Wyeth Notes 5.95% due 04/01/37.................. 60,000 59,091 -------- 503,953 -------- Medical-HMO -- 0.0% WellPoint, Inc. Notes 3.75% due 12/14/07.................. 6,620 6,546 -------- Medical-Hospitals -- 0.1% HCA, Inc. Senior Notes 6.95% due 05/01/12.................. 100,000 96,500 HCA, Inc. Sec Notes. 9.13% due 11/15/14*................. 25,000 26,719
46 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 3) ----------------------------------------------------------------- CORPORATE BONDS & NOTES (continued) Medical-Hospitals (continued) HCA, Inc. Sec. Notes 9.25% due 11/15/16*........................ $ 95,000 $102,481 -------- 225,700 -------- Medical-Wholesale Drug Distribution -- 0.1% Cardinal Health, Inc. Senior Notes 5.80% due 10/15/16*........................ 110,000 109,599 -------- Metal Processors & Fabrication -- 0.1% Timken Co. Notes 5.75% due 02/15/10......................... 96,000 95,909 -------- Metal-Aluminum -- 0.1% Alcoa, Inc. Bonds 5.90% due 02/01/27......................... 84,000 81,978 Alcoa, Inc. Bonds 6.50% due 06/15/18......................... 56,000 59,095 -------- 141,073 -------- Metal-Diversified -- 0.0% Freeport-McMoRan Copper & Gold, Inc. Senior Notes 8.38% due 04/01/17......................... 45,000 48,656 -------- Multimedia -- 0.6% Belo Corp. Senior Notes 6.75% due 05/30/13......................... 60,000 63,099 Cox Enterprises, Inc. Notes 7.88% due 09/15/10*........................ 205,000 220,248 News America, Inc. Company Guar. Bonds 7.30% due 04/30/28......................... 80,000 86,599 Time Warner Entertainment Co. LP Debentures 8.38% due 03/15/23......................... 356,000 420,816 Time Warner, Inc. Company Guar. Notes 6.75% due 04/15/11......................... 60,000 63,232 Viacom, Inc. Senior Notes 6.88% due 04/30/36......................... 50,000 50,399 -------- 904,393 -------- Office Automation & Equipment -- 0.1% Pitney Bowes, Inc. Notes 5.25% due 01/15/37......................... 110,000 107,393 -------- Oil Companies-Exploration & Production -- 0.2% Chesapeake Energy Corp. Company Guar. Notes 7.50% due 09/15/13......................... 175,000 182,875
Principal Value Security Description Amount (Note 3) --------------------------------------------------------------------- Oil Companies-Exploration & Production (continued) Devon Energy Corp. Company Guar. Debentures 7.95% due 04/15/32............................. $120,000 $143,908 -------- 326,783 -------- Oil Companies-Integrated -- 0.2% Hess Corp. Notes 7.13% due 03/15/33............................. 145,000 156,858 Hess Corp. Bonds 7.88% due 10/01/29............................. 80,000 92,281 -------- 249,139 -------- Oil Refining & Marketing -- 0.1% The Premcor Refining Group, Inc.. Company Guar. Notes 6.75% due 05/01/14............................. 180,000 187,520 -------- Oil-Field Services -- 0.1% Hanover Compressor Co. Senior Notes 9.00% due 06/01/14............................. 85,000 92,012 -------- Paper & Related Products -- 0.2% Bowater, Inc. Notes 6.50% due 06/15/13............................. 75,000 67,688 Georgia-Pacific Corp. Company Guar. Notes 7.00% due 01/15/15*............................ 30,000 30,150 Georgia-Pacific Corp. Company Guar. Notes 7.13% due 01/15/17*............................ 10,000 10,025 Plum Creek Timberlands LP Company Guar. Notes 5.88% due 11/15/15............................. 103,000 102,341 Temple-Inland, Inc. Bonds 6.63% due 01/15/18............................. 60,000 63,075 -------- 273,279 -------- Pipelines -- 0.4% CenterPoint Energy Resources Corp. Notes 7.75% due 02/15/11............................. 130,000 140,565 Copano Energy LLC Company Guar. Notes 8.13% due 03/01/16............................. 95,000 98,325 Duke Energy Field Services LLC Notes 6.88% due 02/01/11............................. 60,000 63,145 Dynegy-Roseton Danskammer Pass Through Certs. Series B 7.67% due 11/08/16............................. 45,000 47,700
47 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 3) --------------------------------------------------------- CORPORATE BONDS & NOTES (continued) Pipelines (continued) El Paso Natural Gas Co. Senior Notes 5.95% due 04/15/17*................. $ 88,000 $ 88,327 Enbridge Energy Partners LP Senior Notes 5.88% due 12/15/16.................. 38,000 38,177 ONEOK Partners LP Company Guar. Notes 6.15% due 10/01/16.................. 55,000 56,229 Southern Natural Gas Co. Notes 5.90% due 04/01/17*................. 41,000 41,000 Williams Cos., Inc. Senior Notes 7.88% due 09/01/21.................. 90,000 99,000 -------- 672,468 -------- Precious Metals -- 0.1% Barrick Gold Finance, Inc. Company Guar. Debentures 7.50% due 05/01/07.................. 97,000 97,145 -------- Private Corrections -- 0.0% Corrections Corp. of America Company Guar. Notes 6.25% due 03/15/13.................. 45,000 45,000 -------- Publishing-Newspapers -- 0.1% Knight Ridder, Inc. Debentures 6.88% due 03/15/29.................. 70,000 65,038 Knight Ridder, Inc. Debentures 7.15% due 11/01/27.................. 75,000 71,585 -------- 136,623 -------- Radio -- 0.1% Chancellor Media Corp. Company Guar. Notes 8.00% due 11/01/08.................. 182,000 188,574 -------- Real Estate Investment Trusts -- 0.4% AvalonBay Communities, Inc. Senior Notes 5.75% due 09/15/16.................. 110,000 111,452 Health Care Property Investors, Inc. Senior Notes 5.65% due 12/15/13.................. 100,000 99,322 Heritage Property Investment Trust Notes 4.50% due 10/15/09.................. 60,000 58,869 Mack-Cali Realty LP Bonds 5.80% due 01/15/16.................. 60,000 60,404 New Plan Excel Realty Trust Senior Notes 4.50% due 02/01/11.................. 110,000 106,306
Principal Value Security Description Amount (Note 3) ------------------------------------------------------------ Real Estate Investment Trusts (continued) Reckson Operating Partnership LP Senior Notes 6.00% due 03/31/16.................... $ 35,000 $ 34,404 Simon Property Group LP Notes 5.00% due 03/01/12.................... 34,000 33,678 Simon Property Group LP Notes 5.38% due 08/28/08.................... 40,000 39,998 Vornado Realty LP Notes 4.50% due 08/15/09.................... 60,000 58,801 -------- 603,234 -------- Recycling -- 0.0% Aleris International, Inc. Senior Notes 9.00% due 12/15/14*(8)................ 45,000 47,475 Aleris International, Inc. Senior Sub. Notes 10.00% due 12/15/16*.................. 20,000 21,000 -------- 68,475 -------- Research & Development -- 0.0% Alion Science and Technology Corp. Senior Notes 10.25% due 02/01/15*.................. 45,000 46,350 -------- Retail-Building Products -- 0.1% Home Depot, Inc. Senior Notes 5.88% due 12/16/36.................... 100,000 95,343 -------- Retail-Discount -- 0.1% Wal-Mart Stores, Inc. Senior Notes 5.88% due 04/05/27.................... 130,000 129,652 -------- Retail-Drug Store -- 0.1% CVS Lease Pass Through Trust Pass Through Certs. 6.04% due 12/10/28*................... 119,390 120,752 -------- Savings & Loans/Thrifts -- 0.4% Independence Community Bank Corp. Notes 3.50% due 06/20/13(4)................. 64,000 62,656 Sovereign Bancorp, Inc. Senior Notes 4.80% due 09/01/10.................... 206,000 202,572 Washington Mutual Bank Sub. Notes 5.50% due 01/15/13.................... 138,000 137,717 Washington Mutual Preferred Funding II Bonds 6.67% due 12/31/49*(4)................ 155,000 152,117
48 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 3) ------------------------------------------------------- CORPORATE BONDS & NOTES (continued) Savings & Loans/Thrifts (continued) Western Financial Bank Senior Debentures 9.63% due 05/15/12................ $126,000 $137,055 -------- 692,117 -------- Special Purpose Entities -- 0.5% BAE Systems Holdings, Inc. Notes 5.20% due 08/15/15*............... 175,000 171,391 Capital One Capital IV Company Guar. Notes 6.75% due 02/17/37................ 65,000 62,275 Consolidated Communications Illinois/Texas Holdings, Inc. Senior Notes 9.75% due 04/01/12................ 159,000 168,341 Cyrus Reinsurance Holdings SPC Senior Notes 6.36% due 09/01/08*(4)(5)......... 76,000 75,810 Norbord Delaware GP I Company Guar. Notes 6.45% due 02/15/17*............... 49,000 49,601 Pricoa Global Funding I Notes 5.30% due 09/27/13*............... 110,000 110,179 Principal Life Global Funding I Sec. Notes 5.25% due 01/15/13*............... 184,000 183,640 -------- 821,237 -------- Steel-Producer -- 0.1% International Steel Group, Inc. Senior Notes 6.50% due 04/15/14................ 130,000 135,362 -------- Telecom Services -- 0.1% Bellsouth Telecommunications, Inc. Debentures 7.00% due 12/01/95................ 104,000 106,709 Qwest Corp. Senior Notes 7.50% due 10/01/14................ 65,000 68,575 -------- 175,284 -------- Telephone-Integrated -- 0.4% AT&T Corp. Senior Notes 7.30% due 11/15/11................ 63,000 68,390 Citizens Communications Co. Bonds 7.13% due 03/15/19*............... 25,000 24,750 GTE Northwest, Inc. Debentures 5.55% due 10/15/08................ 70,000 70,204 LCI International, Inc. Senior Notes 7.25% due 06/15/07................ 140,000 140,350
Principal Value Security Description Amount (Note 3) ------------------------------------------------------------- Telephone-Integrated (continued) New England Telephone & Telegraph Co. Debentures 7.88% due 11/15/29................... $ 80,000 $ 89,940 Sprint Capital Corp. Company Guar. Notes 6.88% due 11/15/28................... 120,000 119,506 Verizon Communications, Inc. Senior Notes 6.25% due 04/01/37................... 65,000 64,383 Verizon New York, Inc. Debentures 6.88% due 04/01/12................... 102,000 107,645 ----------- 685,168 ----------- Television -- 0.1% Paxson Communication Corp. Sec. Notes 11.61% due 01/15/13*(1).............. 55,000 57,337 Young Broadcasting, Inc. Company Guar. Notes 10.00% due 03/01/11.................. 25,000 24,625 ----------- 81,962 ----------- Transport-Air Freight -- 0.3% Atlas Air, Inc. Pass Through Certs. Series 1991-1, Class B 7.63% due 01/02/15................... 366,911 406,354 ----------- Transport-Rail -- 0.1% Burlington Northern Santa Fe Corp. Debentures 7.29% due 06/01/36................... 71,000 79,268 Norfolk Southern Corp. Senior Notes 7.70% due 05/15/17................... 120,000 133,734 ----------- 213,002 ----------- Transport-Services -- 0.1% FedEx Corp. Company Guar. Notes 5.50% due 08/15/09................... 55,000 55,420 Ryder System, Inc. Notes 5.85% due 03/01/14................... 32,000 31,943 Ryder System, Inc. Notes 5.85% due 11/01/16................... 100,000 99,142 ----------- 186,505 ----------- Total Corporate Bonds & Notes (cost $18,482,877)................... 18,728,862 -----------
49 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 3) -------------------------------------------------------- FOREIGN CORPORATE BONDS & NOTES -- 3.6% Banks-Commercial -- 0.4% Banco Continental de Panama SA Notes 6.63% due 12/01/10*................ $ 35,000 $ 35,107 Barclays Bank PLC Sub. Notes 5.93% due 12/31/49*(4)............. 130,000 133,125 Caisse Nationale des Caisses d'Epargne et de Prevoyance Notes 4.96% due 12/30/49................. 109,000 89,925 NIB Capital Bank Bonds 5.82% due 12/31/49*(4)............. 60,000 59,567 Royal Bank of Scotland Group PLC Bonds 7.65% due 08/31/49(2).............. 160,000 185,150 Societe Generale Senior Sub. Notes 5.92% due 12/31/49*(4)............. 130,000 129,922 -------- 632,796 -------- Banks-Money Center -- 0.2% HBOS Capital Funding LP Company Guar. Notes 6.85% due 03/29/49................. 200,000 202,260 Mizuho Financial Group Cayman, Ltd. Bank Guar. Notes 8.38% due 12/29/49................. 145,000 153,251 National Westminster Bank PLC Sub. Notes 7.75% due 04/29/49(4).............. 55,000 55,524 -------- 411,035 -------- Beverages-Wine/Spirits -- 0.1% Diageo Capital PLC Company Guar. Notes 5.13% due 01/30/13................. 110,000 109,465 -------- Brewery -- 0.1% SABMiller PLC Notes 6.50% due 07/01/16*................ 100,000 105,675 -------- Broadcast Services/Program -- 0.1% Grupo Televisa SA Senior Notes 6.63% due 03/18/25................. 139,000 145,016 -------- Building Products-Cement -- 0.1% C8 Capital SPV, Ltd. Notes 6.64% due 12/31/49*(4)............. 221,000 218,399 -------- Cellular Telecom -- 0.1% America Movil SA de CV Bonds 6.38% due 03/01/35................. 112,000 110,327 -------- Cruise Lines -- 0.0% Royal Caribbean Cruises, Ltd. Senior Notes 7.00% due 06/15/13................. 70,000 72,332 --------
Principal Value Security Description Amount (Note 3) -------------------------------------------------------------- Diversified Manufactured Operations -- 0.1% Tyco International Group SA Company Guar. Notes 6.00% due 11/15/13...................... $120,000 $126,143 -------- Diversified Minerals -- 0.1% BHP Billiton Finance, Ltd. Company Guar. Notes 5.40% due 03/29/17...................... 130,000 129,011 -------- Electric-Integrated -- 0.1% Empresa Nacional de Electricidad SA Bonds 7.33% due 02/01/37...................... 84,000 89,918 -------- Financial Guarantee Insurance -- 0.1% Security Capital Assurance, Ltd. Bonds 6.88% due 12/31/49*(4)(5)............... 130,000 130,000 -------- Gas-Distribution -- 0.1% Nakilat, Inc. Sec. Notes 6.07% due 12/31/33*..................... 85,000 81,981 -------- Insurance-Multi-line -- 0.2% Aegon NV Sub. Notes 5.31% due 07/29/49...................... 156,000 132,772 AXA SA Sub. Notes 6.38% due 12/14/49*(4).................. 85,000 81,587 ING Groep NV Bonds 5.78% due 12/29/49(4)................... 225,000 223,847 -------- 438,206 -------- Investment Companies -- 0.1% Canadian Oil Sands, Ltd. Notes 5.80% due 08/15/13*..................... 124,000 124,447 -------- Medical-Drugs -- 0.1% Angiotech Pharmaceuticals, Inc. Company Guar. Notes 7.75% due 04/01/14...................... 55,000 50,737 Angiotech Pharmaceuticals, Inc. Senior Notes 9.11% due 12/01/13*(1).................. 15,000 15,319 Elan Finance PLC Company Guar. Bonds 7.75% due 11/15/11...................... 70,000 68,775 -------- 134,831 -------- Oil Companies-Exploration & Production -- 0.0% Nexen, Inc. Bonds 5.88% due 03/10/35...................... 35,000 32,832
50 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 3) --------------------------------------------------------------- FOREIGN CORPORATE BONDS & NOTES (continued) Oil Companies-Exploration & Production (continued) Nexen, Inc. Notes 7.88% due 03/15/32....................... $ 28,000 $ 33,147 -------- 65,979 -------- Oil Companies-Integrated -- 0.1% ConocoPhillips Canada Funding Co. Company Guar. Notes 5.95% due 10/15/36....................... 50,000 50,557 Petro-Canada Notes 5.95% due 05/15/35....................... 60,000 57,237 -------- 107,794 -------- Paper & Related Products -- 0.0% Abitibi-Consolidated, Inc. Notes 8.55% due 08/01/10....................... 45,000 45,562 -------- Pipelines -- 0.1% Kinder Morgan Finance Co. ULC Company Guar. Notes 5.70% due 01/05/16....................... 105,000 98,449 -------- Real Estate Operations & Development -- 0.1% Brookfield Asset Management, Inc. Notes 8.13% due 12/15/08....................... 157,000 164,302 -------- Satellite Telecom -- 0.1% Intelsat Bermuda, Ltd. Senior Notes 8.87% due 01/15/15*(1)................... 65,000 66,300 Intelsat, Ltd. Senior Notes 6.50% due 11/01/13....................... 50,000 44,125 -------- 110,425 -------- Special Purpose Entities -- 0.6% Aries Vermoegensverwaltungs GmbH Bonds 9.60% due 10/25/14....................... 250,000 319,225 Hybrid Capital Funding I LP Sub. Notes 8.00% due 04/29/49....................... 286,000 300,383 Rio Tinto Finance USA, Ltd. Notes 2.63% due 09/30/08....................... 55,000 53,018 SMFG Preferred Capital Ltd. Bonds 6.08% due 01/29/49*(4)................... 121,000 121,235 SovRisc BV Notes 4.63% due 10/31/08*...................... 133,000 132,088 -------- 925,949 --------
Principal Value Security Description Amount (Note 3) ---------------------------------------------------------- Telecom Services -- 0.3% Telenet Group Holdings NV Disc. Notes 11.50% due 06/15/14*(2)........... $121,000 $ 113,437 TELUS Corp. Notes 7.50% due 06/01/07................ 143,000 143,453 TELUS Corp. Notes 8.00% due 06/01/11................ 238,000 260,664 ---------- 517,554 ---------- Telephone-Integrated -- 0.2% British Telecommunications PLC Bonds 8.63% due 12/15/30................ 130,000 178,492 Telecom Italia Capital SA Company Guar. Notes 4.00% due 01/15/10................ 115,000 111,105 Telecom Italia Capital SA Company Guar. Bonds 5.25% due 10/01/15................ 55,000 52,181 ---------- 341,778 ---------- Transport-Rail -- 0.1% Canadian National Railway Co. Notes 6.38% due 10/15/11................ 130,000 135,778 ---------- Total Foreign Corporate Bonds & Notes (cost $5,556,823)................. 5,573,152 ---------- FOREIGN GOVERNMENT AGENCIES -- 2.0% Sovereign -- 2.0% Federal Republic of Brazil Notes 8.00% due 01/15/18................ 200,000 225,900 Federal Republic of Brazil Bonds 10.50% due 07/14/14............... 205,000 263,425 Republic of Argentina Bonds 5.48% due 08/03/12................ 230,000 165,255 Republic of Argentina Notes 8.28% due 12/31/33................ 363,670 422,585 Republic of Turkey Notes 9.00% due 06/30/11................ 190,000 210,900 Republic of Turkey Senior Notes 11.88% due 01/15/30............... 380,000 583,300 Republic of Venezuela Notes 8.50% due 10/08/14................ 100,000 111,350 Republic of Venezuela Bonds 9.25% due 09/15/27................ 500,000 628,750
51 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 3) ----------------------------------------------------------- FOREIGN CORPORATE BONDS & NOTES (continued) Sovereign (continued) Russian Federation Bonds 5.00% due 03/31/30............... $ 350,000 $ 397,215 Russian Federation Bonds 5.00% due 03/31/30*(2)........... 125,000 141,875 ----------- Total Foreign Government Agencies (cost $2,733,426)................ 3,150,555 ----------- U.S. GOVERNMENT AGENCIES -- 13.5% Federal Home Loan Mtg. Corp. -- 6.7% 4.50% due 04/01/19................ 1,403,211 1,362,225 5.00% due 05/01/34................ 31,024 30,040 5.00% due 05/01/34................ 831,788 805,398 5.00% due 06/01/34................ 1,364,960 1,321,655 5.00% due 06/01/34................ 169,592 164,211 5.00% due 11/01/35................ 1,024,515 991,141 5.00% due 04/01/36................ 253,469 244,967 5.00% due 11/01/36................ 443,961 429,069 5.50% due 07/01/34................ 588,240 583,046 5.72% due 08/01/36(1)............. 1,404,006 1,410,590 5.82% due 01/01/37(1)............. 467,538 470,373 5.85% due 01/01/37(1)............. 274,893 277,640 6.00% due 12/01/33................ 970,504 983,353 6.00% due 08/01/36................ 485,161 489,070 6.50% due 03/01/36................ 319,347 325,674 6.50% due 05/01/36................ 10,307 10,511 6.50% due December TBA............ 325,000 331,589 7.00% due 04/01/32................ 167,301 173,597 ----------- 10,404,149 ----------- Federal National Mtg. Assoc. -- 6.1% 5.00% due 07/01/18................ 803,877 794,891 5.00% due 08/01/18................ 173,026 171,092 5.50% due 11/01/17................ 399,161 401,126 5.50% due 12/01/33................ 993,040 984,903 5.50% due 02/01/36(1)............. 349,585 351,907 5.50% due 11/01/36................ 516,885 511,494 5.50% due 11/01/36................ 957,659 947,672 5.50% due 12/01/36................ 1,068,161 1,052,447 5.50% due December TBA............ 887,000 877,576 6.00% due 06/01/17................ 300,290 305,638 6.00% due 12/01/33................ 94,810 95,942 6.00% due 11/01/36................ 1,033,645 1,037,435 6.00% due December TBA............ 1,500,000 1,510,782 6.50% due 09/01/10................ 88,226 89,680 6.50% due 09/01/32................ 315,082 323,943 6.50% due 07/01/36................ 132,914 135,589 ----------- 9,592,117 -----------
Principal Value Security Description Amount (Note 3) ------------------------------------------------------------------------- Government National Mtg. Assoc. -- 0.7% 5.50% due 05/15/33............................ $ 511,390 $ 509,258 5.50% due 12/15/33............................ 62,366 62,105 5.50% due 12/15/33............................ 312,179 310,877 7.50% due 01/15/32............................ 147,101 153,589 ------------ 1,035,829 ------------ Total U.S. Government Agencies (cost $21,430,947)........................... 21,032,095 ------------ Total Long-Term Investment Securities (cost $148,931,495).......................... 156,836,643 ------------ REPURCHASE AGREEMENTS -- 1.4% Agreement with State Street Bank & Trust Co., bearing interest at 3.00%, dated 03/31/07, to be repurchased 04/02/07 in the amount of $265,066 and collateralized by $265,000 of Federal National Mtg. Assoc. Bonds, bearing interest at 5.375%, due 07/18/11 and having an approximate value of $272,619..................................... 265,000 265,000 State Street Bank & Trust Co. Joint Repurchase Agreement(9)...................... 1,888,000 1,888,000 ------------ Total Repurchase Agreements (cost $2,153,000)............................ 2,153,000 ------------ TOTAL INVESTMENTS (cost $151,084,495)(10)...................... 101.9% 158,989,643 Liabilities in excess of other assets........... (1.9) (2,990,735) ---------- ------------ NET ASSETS -- 100.0% $155,998,908 ========== ============ Bond & Notes Sold Short -- (0.6%) U.S. Government Agencies -- (0.6%) Federal Home Loan Mtg. Corp. 5.00% due April TBA (Proceeds $638,344).......................... $ (660,000) $ (637,725) ========== ============
- -------- + Non-income producing security * Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. The Fund has no right to demand registration of these securities. At March 31, 2007, the aggregate value of these securities was $7,407,286 representing 4.7% of net assets. Unless otherwise indicated these securities are not considered to be illiquid. (1) Floating rate security where the rate fluctuates. The rate moves up or down at each reset date. The rate reflected is as of March 31, 2007 (2) "Step-up" security where the rate increases ("steps-up") at a predetermined rate. Rate shown reflects the increased rate. (3) Commercial Mortgaged Back Security (4) Variable Rate Security -- the rate reflected is as of March 31, 2007, maturity date reflects the stated maturity date. 52 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (continued) (5) Fair valued security; see Note 3 (6) Illiquid security (7) Bond in default (8) PIK ("Payment-in-Kind") security. Bond or preferred stock that pays interest/dividends in the form of additional bonds or preferred stocks. (9) See Note 3 for details of Joint Repurchase Agreement (10) See Note 7 for cost of investment on a tax basis (11) To the extent permitted by the Statement of Additional Information, the Balanced Assets Fund may invest in restricted securities. The fund has no right to demand registration of these securities. The securities are valued pursuant to Note 3. Restricted securities held by a fund may not be sold except in exempt transactions or in a public offering registered under the Securities Act of 1933. The risk of investing in such securities is generally greater than the risk of investing in the securities of widely held, publicly traded companies. Lack of a secondary market and resale restrictions may result in the inability of a fund to sell a security at a fair price and may substantially delay the sale of the security. In addition, these securities may exhibit greater price volatility than securities for which secondary markets exist. As of March 31, 2007, the Balanced Assets fund held the following restricted security:
Market Value % of Acquisition Principal Acquisition Market Per Par Net Name Date Amount Cost Value Amount Assets ---- ----------- --------- ----------- ------ ------- ------ Southern Energy 7.90% due 07/15/09...... 01/10/2006 150,000 $0 $0 $0 0.00%
ADR --American Depository Receipt TBA --Securities purchased on a forward commitment basis with an appropriate principal amount and no definitive maturity date. The actual principal and maturity date will be determined upon settlement date. See Notes to Financial Statements 53 SunAmerica International Equity Fund PORTFOLIO PROFILE -- March 31, 2007 -- (unaudited) Industry Allocation* Banks-Commercial.................... 21.3% Medical-Drugs....................... 10.7 Auto-Cars/Light Trucks.............. 5.4 Building-Heavy Construction......... 4.3 Electric-Integrated................. 4.1 Medical Products.................... 3.8 Oil-Field Services.................. 3.8 Insurance-Multi-line................ 3.4 Chemicals-Diversified............... 2.9 Soap & Cleaning Preparation......... 2.8 Telephone-Integrated................ 2.5 Diversified Manufactured Operations. 2.3 Advertising Services................ 2.2 Cellular Telecom.................... 2.1 Electric Products-Misc.............. 2.1 Electronic Components-Misc.......... 2.0 Office Automation & Equipment....... 2.0 Oil Companies-Integrated............ 1.7 Aerospace/Defense................... 1.5 Repurchase Agreements............... 1.5 Tobacco............................. 1.4 Electronic Components-Semiconductors 1.3 Circuit Boards...................... 1.2 Enterprise Software/Service......... 1.2 Finance-Leasing Companies........... 1.2 Machinery-Construction & Mining..... 1.2 Real Estate Operations & Development 1.2 Agricultural Chemicals.............. 1.1 Gas-Distribution.................... 0.9 Insurance-Property/Casualty......... 0.9 Diversified Minerals................ 0.8 E-Commerce/Products................. 0.8 Food-Retail......................... 0.8 Beverages-Non-alcoholic............. 0.7 Footwear & Related Apparel.......... 0.7 Machine Tools & Related Products.... 0.7 Steel-Producers..................... 0.7 Food-Misc........................... 0.6 Multimedia.......................... 0.6 Metal Processors & Fabrication...... 0.3 ----- 100.7% =====
- -------- * Calculated as a percentage of Net Assets Country Allocation* Japan......... 22.8% Germany....... 16.1 United Kingdom 13.4 France........ 8.1 Switzerland... 7.2 Italy......... 6.7 Spain......... 5.0 Australia..... 4.3 Norway........ 3.1 Greece........ 2.6 Ireland....... 2.5 Luxembourg.... 1.5 United States. 1.5 Belgium....... 1.2 Singapore..... 1.2 Hong Kong..... 0.9 Brazil........ 0.8 Malaysia...... 0.8 Cayman Islands 0.7 Mexico........ 0.3 ----- 100.7% =====
54 SunAmerica International Equity Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited)
Value Security Description Shares (Note 3) --------------------------------------------- COMMON STOCK -- 99.2% Australia -- 4.3% BHP Billiton, Ltd........................... 39,300 $ 950,431 CSL, Ltd.................................... 22,000 1,466,203 Publishing & Broadcasting, Ltd.............. 45,300 727,547 QBE Insurance Group, Ltd.................... 45,200 1,153,459 Woolworths, Ltd............................. 47,680 1,048,933 ----------- 5,346,573 ----------- Belgium -- 1.2% KBC Groep NV................................ 11,720 1,457,745 ----------- Brazil -- 0.8% Submarino SA................................ 28,000 943,164 ----------- Cayman Islands -- 0.7% Prime Success International Group, Ltd...... 748,000 808,933 ----------- France -- 8.1% BNP Paribas SA.............................. 28,460 2,972,650 Renault SA.................................. 17,600 2,058,385 Sanofi-Aventis.............................. 28,280 2,459,337 Vinci SA.................................... 16,000 2,479,765 ----------- 9,970,137 ----------- Germany -- 16.1% Allianz SE.................................. 10,400 2,135,468 Bayer AG.................................... 55,020 3,516,167 DaimlerChrysler AG.......................... 12,200 1,000,659 Deutsche Bank AG............................ 23,800 3,206,029 Merck KGaA.................................. 25,148 3,242,489 RWE AG...................................... 22,900 2,422,499 SAP AG...................................... 33,000 1,471,051 Siemens AG.................................. 26,400 2,822,021 ----------- 19,816,383 ----------- Greece -- 2.6% Coca-Cola Hellenic Bottling Co. SA+......... 20,420 859,259 Hellenic Telecommunications Organization SA+........................... 30,900 845,369 National Bank of Greece SA.................. 28,700 1,522,054 ----------- 3,226,682 ----------- Hong Kong -- 0.9% Hong Kong & China Gas Co., Ltd.............. 485,000 1,083,778 Peregrine Investments Holdings, Ltd.+(2)(3). 91,000 0 ----------- 1,083,778 ----------- Ireland -- 2.5% Allied Irish Banks PLC...................... 104,500 3,099,038 ----------- Italy -- 6.7% Banco Popolare di Verona e Novara SCRL...... 48,300 1,500,126 Saipem SpA.................................. 98,840 2,878,372 UniCredito Italiano SpA..................... 407,690 3,880,366 ----------- 8,258,864 ----------- Japan -- 22.8% Canon, Inc.................................. 45,700 2,454,863 Casio Computer Co., Ltd..................... 115,400 2,526,578 Daiichi Sankyo Co., Ltd..................... 113,100 3,464,791
Value Security Description Shares (Note 3) ------------------------------------------------------------ Japan (continued) Elpida Memory, Inc.+.................. 41,100 $ 1,593,915 FANUC, Ltd............................ 26,900 2,504,184 Ibiden Co., Ltd....................... 27,900 1,446,614 Isuzu Motors, Ltd..................... 81,000 406,237 Japan Tobacco, Inc.................... 345 1,695,137 JFE Holdings, Inc..................... 15,200 899,050 Komatsu, Ltd.......................... 72,100 1,517,380 Mori Seiki Co., Ltd................... 35,700 849,784 ORIX Corp............................. 5,660 1,474,559 Sumitomo Mitsui Financial Group, Inc.. 220 1,997,624 Toho Zinc Co., Ltd.................... 41,000 371,241 Tokyo Electric Power Co., Inc......... 47,500 1,624,448 Toyota Motor Corp..................... 50,000 3,203,496 ------------ 28,029,901 ------------ Luxembourg -- 1.5% Acergy SA............................. 86,600 1,848,601 ------------ Malaysia -- 0.8% Tenaga Nasional Bhd................... 299,400 987,176 ------------ Mexico -- 0.3% Axtel SA de CV+....................... 92,200 366,687 ------------ Norway -- 3.1% DNB NOR ASA........................... 115,470 1,629,950 Norsk Hydro ASA....................... 64,400 2,134,906 ------------ 3,764,856 ------------ Singapore -- 1.2% CapitaLand, Ltd....................... 288,000 1,518,637 ------------ Spain -- 5.0% Banco Bilbao Vizcaya Argentaria SA.... 134,790 3,309,489 Grupo Ferrovial SA.................... 27,900 2,823,219 ------------ 6,132,708 ------------ Switzerland -- 7.2% Nestle SA............................. 2,000 778,916 Nobel Biocare Holding AG.............. 6,200 2,260,297 Novartis AG........................... 44,100 2,529,540 Roche Holding AG...................... 10 1,769 Syngenta AG........................... 6,800 1,301,074 Zurich Financial Services AG.......... 6,900 1,991,668 ------------ 8,863,264 ------------ United Kingdom -- 13.4% BAE Systems PLC....................... 210,700 1,907,279 BT Group PLC.......................... 315,400 1,885,254 Reckitt Benckiser PLC................. 66,600 3,467,815 Royal Bank of Scotland Group PLC...... 41,900 1,635,865 Smith & Nephew PLC.................... 185,600 2,359,404 Vodafone Group PLC ADR................ 94,800 2,546,328 WPP Group PLC......................... 176,800 2,678,951 ------------ 16,480,896 ------------ United States -- 0.0% SoftBrands, Inc.+..................... 40 87 ------------ Total Long-Term Investment Securities (cost $107,597,712).................. 122,004,110 ------------
55 SunAmerica International Equity Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 3) ------------------------------------------------------------------------- REPURCHASE AGREEMENT -- 1.5% Repurchase Agreement -- 1.5% Agreement with State Street Bank & Trust Co., bearing interest at 3.00%, dated 03/31/07, to be repurchased 04/02/07 in the amount of $1,840,460 and collateralized by $1,825,000 of Federal Farm Credit Bank Bonds, bearing interest at 5.38%, due 07/18/11 and having an approximate value of $1,877,469 (cost $1,840,000)............................ $1,840,000 $ 1,840,000 ------------ TOTAL INVESTMENTS -- (cost $109,437,712)(1)....................... 100.7% 123,844,110 Liabilities in excess of other assets........... (0.7) (850,404) ---------- ------------ NET ASSETS -- 100.0% $122,993,706 ========== ============
- -------- + Non-income producing security (1) See Notes 7 for cost of investment on a tax basis (2) Fair valued security. See Note 3. (3) Illiquid security ADR American Despository Receipt See Notes to Financial Statements 56 SunAmerica Value Fund PORTFOLIO PROFILE -- March 31, 2007 -- (unaudited) Industry Allocation* Finance-Investment Banker/Broker.... 12.5% Banks-Super Regional................ 11.1 Oil Companies-Integrated............ 10.4 Telephone-Integrated................ 5.8 Electric-Integrated................. 4.2 Medical-Drugs....................... 4.2 Diversified Manufactured Operations. 4.0 Oil Refining & Marketing............ 2.7 Multimedia.......................... 2.5 Banks-Fiduciary..................... 2.2 Finance-Credit Card................. 2.1 Telecom Services.................... 2.1 Computers........................... 2.0 Cosmetics & Toiletries.............. 2.0 Finance-Mortgage Loan/Banker........ 1.9 Insurance-Multi-line................ 1.6 Oil-Field Services.................. 1.6 Aerospace/Defense-Equipment......... 1.5 Brewery............................. 1.5 Distribution/Wholesale.............. 1.5 Electric Products-Misc.............. 1.5 Food-Misc........................... 1.5 Medical-HMO......................... 1.5 Tobacco............................. 1.5 Medical Products.................... 1.4 Non-Hazardous Waste Disposal........ 1.4 Repurchase Agreements............... 1.4 Retail-Discount..................... 1.4 Cable TV............................ 1.3 Chemicals-Diversified............... 1.1 Paper & Related Products............ 1.1 Finance-Consumer Loans.............. 1.0 Industrial Gases.................... 1.0 Insurance-Property/Casualty......... 1.0 Retail-Building Products............ 1.0 Electronic Components-Semiconductors 0.9 Industrial Automated/Robotic........ 0.9 Metal-Aluminum...................... 0.7 ---- 99.0% ====
- -------- * Calculated as a percentage of Net Assets 57 SunAmerica Value Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited)
Value Security Description Shares (Note 3) ---------------------------------------------------------------- COMMON STOCK -- 97.6% Aerospace/Defense-Equipment -- 1.5% United Technologies Corp.................. 52,500 $ 3,412,500 ----------- Banks-Fiduciary -- 2.2% The Bank of New York Co., Inc............. 127,500 5,170,125 ----------- Banks-Super Regional -- 11.1% Bank of America Corp...................... 194,600 9,928,492 US Bancorp................................ 137,500 4,808,375 Wachovia Corp............................. 120,000 6,606,000 Wells Fargo & Co.......................... 125,000 4,303,750 ----------- 25,646,617 ----------- Brewery -- 1.5% Anheuser-Busch Cos., Inc.................. 66,400 3,350,544 ----------- Cable TV -- 1.3% Comcast Corp., Class A+................... 117,300 3,043,935 ----------- Chemicals-Diversified -- 1.1% Dow Chemical Co........................... 56,500 2,591,090 ----------- Computers -- 2.0% Hewlett-Packard Co........................ 59,000 2,368,260 International Business Machines Corp...... 23,200 2,186,832 ----------- 4,555,092 ----------- Cosmetics & Toiletries -- 2.0% Procter & Gamble Co....................... 72,600 4,585,416 ----------- Distribution/Wholesale -- 1.5% WESCO International, Inc.+................ 53,400 3,352,452 ----------- Diversified Manufactured Operations -- 4.0% 3M Co..................................... 44,100 3,370,563 General Electric Co....................... 165,300 5,845,008 ----------- 9,215,571 ----------- Electric Products-Misc. -- 1.5% Emerson Electric Co....................... 81,200 3,498,908 ----------- Electric-Integrated -- 4.2% Duke Energy Corp.......................... 180,500 3,662,345 Exelon Corp............................... 34,100 2,343,011 FPL Group, Inc............................ 58,200 3,560,094 ----------- 9,565,450 ----------- Electronic Components-Semiconductors -- 0.9% Intel Corp................................ 106,500 2,037,345 ----------- Finance-Consumer Loans -- 1.0% SLM Corp.................................. 55,300 2,261,770 ----------- Finance-Credit Card -- 2.1% American Express Co....................... 85,900 4,844,760 ----------- Finance-Investment Banker/Broker -- 12.5% Citigroup, Inc............................ 178,100 9,143,654 J.P. Morgan Chase & Co.................... 160,300 7,755,314 Morgan Stanley............................ 61,100 4,812,236 TD Ameritrade Holding Corp.+.............. 202,300 3,010,224 The Bear Stearns Cos., Inc................ 27,200 4,089,520 ----------- 28,810,948 -----------
Value Security Description Shares (Note 3) -------------------------------------------------------- Finance-Mortgage Loan/Banker -- 1.9% Fannie Mae........................ 82,300 $ 4,491,934 ----------- Food-Misc. -- 1.5% General Mills, Inc................ 57,800 3,365,116 ----------- Industrial Automated/Robotic -- 0.9% Rockwell Automation, Inc.......... 34,300 2,053,541 ----------- Industrial Gases -- 1.0% Air Products & Chemicals, Inc..... 32,300 2,388,908 ----------- Insurance-Multi-line -- 1.6% MetLife, Inc...................... 57,000 3,599,550 ----------- Insurance-Property/Casualty -- 1.0% Chubb Corp........................ 44,900 2,319,983 ----------- Medical Products -- 1.4% Johnson & Johnson................. 53,200 3,205,832 ----------- Medical-Drugs -- 4.2% Bristol-Myers Squibb Co........... 40,500 1,124,280 Novartis AG ADR................... 40,200 2,196,126 Pfizer, Inc....................... 247,800 6,259,428 ----------- 9,579,834 ----------- Medical-HMO -- 1.5% UnitedHealth Group, Inc........... 63,700 3,374,189 ----------- Metal-Aluminum -- 0.7% Alcoa, Inc........................ 50,500 1,711,950 ----------- Multimedia -- 2.5% News Corp., Class A............... 153,100 3,539,672 Time Warner, Inc.................. 110,500 2,179,060 ----------- 5,718,732 ----------- Non-Hazardous Waste Disposal -- 1.4% Waste Management, Inc............. 96,600 3,324,006 ----------- Oil Companies-Integrated -- 10.4% Chevron Corp...................... 81,300 6,012,948 ConocoPhillips.................... 86,000 5,878,100 Exxon Mobil Corp.................. 127,500 9,619,875 Occidental Petroleum Corp......... 48,400 2,386,604 ----------- 23,897,527 ----------- Oil Refining & Marketing -- 2.7% Sunoco, Inc....................... 40,300 2,838,732 Valero Energy Corp................ 53,800 3,469,562 ----------- 6,308,294 ----------- Oil-Field Services -- 1.6% Smith International, Inc.......... 75,400 3,622,970 ----------- Paper & Related Products -- 1.1% International Paper Co............ 67,900 2,471,560 ----------- Retail-Building Products -- 1.0% Home Depot, Inc................... 62,400 2,292,576 ----------- Retail-Discount -- 1.4% Wal-Mart Stores, Inc.............. 70,800 3,324,060 ----------- Telecom Services -- 2.1% BCE, Inc.......................... 174,300 4,929,204 -----------
58 SunAmerica Value Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Shares/ Principal Value Security Description Amount (Note 3) -------------------------------------------------------------- COMMON STOCK (continued) Telephone-Integrated -- 5.8% AT&T, Inc........................... 190,750 $ 7,521,273 Verizon Communications, Inc......... 151,000 5,725,920 ------------ 13,247,193 ------------ Tobacco -- 1.5% Altria Group, Inc................... 40,400 3,547,524 ------------ Total Long-Term Investment Securities (cost $205,907,979)................ 224,717,006 ------------ REPURCHASE AGREEMENT -- 1.4% State Street Bank & Trust Co. Joint Repurchase Agreement(1) (cost $3,125,000).................. $3,125,000 3,125,000 ------------ TOTAL INVESTMENTS -- (cost $209,032,979)(2)............. 99.0% 227,842,006 Other assets less liabilities......... 1.0 2,331,920 ---------- ------------ NET ASSETS -- 100.0% $230,173,926 ========== ============
- -------- + Non-income producing security (1) See Note 3 for details of Joint Repurchase Agreements. (2) See Note 7 for cost of investments on a tax basis ADR --American Depository Receipt See Notes to Financial Statements 59 Tax Managed Equity Fund PORTFOLIO PROFILE -- March 31, 2007 -- (unaudited) INDUSTRY ALLOCATION* Medical-Biomedical/Gene....................... 6.1% Computers..................................... 5.5 Electronic Components-Semiconductors.......... 4.5 Finance-Investment Banker/Broker.............. 4.4 Aerospace/Defense-Equipment................... 4.3 Semiconductor Equipment....................... 3.9 Aerospace/Defense............................. 3.5 Banks-Super Regional.......................... 3.3 Agricultural Operations....................... 2.9 Auto-Cars/Light Trucks........................ 2.8 Cellular Telecom.............................. 2.8 Retail-Apparel/Shoe........................... 2.6 X-Ray Equipment............................... 2.6 Insurance-Multi-line.......................... 2.5 Retail-Office Supplies........................ 2.4 Retail-Discount............................... 2.2 Telephone-Integrated.......................... 2.2 Tobacco....................................... 2.2 Internet Security............................. 2.0 Medical Instruments........................... 2.0 Medical-Drugs................................. 2.0 Internet Infrastructure Software.............. 1.9 Medical-HMO................................... 1.9 Networking Products........................... 1.8 Repurchase Agreements......................... 1.8 Non-Ferrous Metals............................ 1.7 Diversified Manufactured Operations........... 1.6 Pharmacy Services............................. 1.6 Casino Services............................... 1.5 Oil Field Machinery & Equipment............... 1.5 Web Portals/ISP............................... 1.5 E-Commerce/Products........................... 1.4 Cosmetics & Toiletries........................ 1.3 Diversified Minerals.......................... 1.3 Diagnostic Kits............................... 1.1 Distribution/Wholesale........................ 1.1 Financial Guarantee Insurance................. 1.1 Industrial Automated/Robotic.................. 1.1 Oil Companies-Integrated...................... 1.1 Oil-Field Services............................ 1.1 Therapeutics.................................. 1.1 Cable TV...................................... 1.0 Semiconductors Components-Intergrated Circuits 1.0 Beverages-Wine/Spirits........................ 0.9 Medical Products.............................. 0.8 Computers-Integrated Systems.................. 0.6 Telecommunication Equipment................... 0.5 ----- 100.0% =====
- -------- * Calculated as a percentage of Net Assets 60 Tax Managed Equity Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited)
Value Security Description Shares (Note 3) ------------------------------------------------------------- COMMON STOCK -- 98.2% Aerospace/Defense -- 3.5% Boeing Co................................ 13,300 $1,182,503 Spirit Aerosystems Holdings, Inc., Class A+................................ 22,700 722,995 ---------- 1,905,498 ---------- Aerospace/Defense-Equipment -- 4.3% Alliant Techsystems, Inc.+............... 20,600 1,811,152 BE Aerospace, Inc.+...................... 18,000 570,600 ---------- 2,381,752 ---------- Agricultural Operations -- 2.9% Andersons, Inc........................... 15,000 666,000 Archer-Daniels-Midland Co................ 25,000 917,500 ---------- 1,583,500 ---------- Auto-Cars/Light Trucks -- 2.8% Toyota Motor Co. ADR..................... 12,000 1,537,920 ---------- Banks-Super Regional -- 3.3% Wachovia Corp............................ 22,000 1,211,100 Wells Fargo & Co......................... 17,000 585,310 ---------- 1,796,410 ---------- Beverages-Wine/Spirits -- 0.9% Constellation Brands, Inc., Class A+..... 24,000 508,320 ---------- Cable TV -- 1.0% Comcast Corp., Class A+.................. 20,700 537,165 ---------- Casino Services -- 1.5% International Game Technology............ 21,000 847,980 ---------- Cellular Telecom -- 2.8% Leap Wireless International, Inc.+....... 13,000 857,740 NII Holdings, Inc.+...................... 8,800 652,784 ---------- 1,510,524 ---------- Computers -- 5.5% Apple Computer, Inc.+.................... 20,300 1,886,073 Hewlett-Packard Co....................... 14,000 561,960 International Business Machines Corp..... 6,300 593,838 ---------- 3,041,871 ---------- Computers-Integrated Systems -- 0.6% NCR Corp.+............................... 7,000 334,390 ---------- Cosmetics & Toiletries -- 1.3% Physicians Formula Holdings, Inc.+....... 5,000 94,400 Procter & Gamble Co...................... 10,000 631,600 ---------- 726,000 ---------- Diagnostic Kits -- 1.1% Inverness Medical Innovations, Inc.+..... 14,000 612,920 ---------- Distribution/Wholesale -- 1.1% WESCO International, Inc.+............... 9,500 596,410 ---------- Diversified Manufactured Operations -- 1.6% Roper Industries, Inc.................... 15,500 850,640 ---------- Diversified Minerals -- 1.3% BHP Billiton, Ltd. ADR................... 15,000 726,750 ----------
Value Security Description Shares (Note 3) --------------------------------------------------------------- E-Commerce/Products -- 1.4% NutriSystem, Inc.+........................ 15,000 $ 786,150 ---------- Electronic Components-Semiconductors -- 4.5% Intel Corp................................ 28,000 535,640 ON Semiconductor Corp.+................... 60,000 535,200 Silicon Motion Technology Corp. ADR+...... 61,000 1,373,720 ---------- 2,444,560 ---------- Finance-Investment Banker/Broker -- 4.4% Goldman Sachs Group, Inc.................. 8,000 1,653,040 The Bear Stearns Cos., Inc................ 5,000 751,750 ---------- 2,404,790 ---------- Financial Guarantee Insurance -- 1.1% Ambac Financial Group, Inc................ 6,700 578,813 ---------- Industrial Automated/Robotic -- 1.1% Rockwell Automation, Inc.................. 10,000 598,700 ---------- Insurance-Multi-line -- 2.5% MetLife, Inc.............................. 22,000 1,389,300 ---------- Internet Infrastructure Software -- 1.9% F5 Networks, Inc.+........................ 15,800 1,053,544 ---------- Internet Security -- 2.0% Blue Coat Systems, Inc.+.................. 30,000 1,101,900 ---------- Medical Instruments -- 2.0% Micrus Endovascular Corp.+................ 47,000 1,120,480 ---------- Medical Products -- 0.8% NMT Medical, Inc.+........................ 10,000 136,000 NxStage Medical, Inc.+.................... 22,000 293,040 ---------- 429,040 ---------- Medical-Biomedical/Gene -- 6.1% Genzyme Corp.+............................ 9,300 558,186 Omrix Biopharmaceuticals, Inc.+........... 52,000 1,990,040 Sangamo Biosciences, Inc.+................ 119,500 812,600 ---------- 3,360,826 ---------- Medical-Drugs -- 2.0% Gentium SpA ADR+.......................... 12,200 240,218 King Pharmaceuticals, Inc.+............... 15,000 295,050 Novartis AG ADR........................... 10,200 557,226 ---------- 1,092,494 ---------- Medical-HMO -- 1.9% Health Net, Inc.+......................... 19,000 1,022,390 ---------- Networking Products -- 1.8% Anixter International, Inc.+.............. 10,000 659,400 Polycom, Inc.+............................ 10,000 333,300 ---------- 992,700 ---------- Non-Ferrous Metals -- 1.7% Energy Resources of Australia, Ltd........ 41,500 933,459 ---------- Oil Companies-Integrated -- 1.1% ConocoPhillips............................ 9,200 628,820 ---------- Oil-Field Machinery & Equipment -- 1.5% National-Oilwell Varco, Inc.+............. 10,300 801,237 ----------
61 Tax Managed Equity Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Value Security Description Shares (Note 3) ---------------------------------------------------------------- COMMON STOCK (continued) Oil-Field Services -- 1.1% Oceaneering International, Inc.+............ 14,000 $ 589,680 ---------- Pharmacy Services -- 1.6% Medco Health Solutions, Inc.+............... 12,000 870,360 ---------- Retail-Apparel/Shoe -- 2.6% Abercrombie & Fitch Co., Class A............ 8,500 643,280 The Children's Place Retail Stores, Inc.+... 9,500 529,720 Wet Seal, Inc., Class A+.................... 40,000 262,000 ---------- 1,435,000 ---------- Retail-Discount -- 2.2% Target Corp................................. 20,300 1,202,978 ---------- Retail-Office Supplies -- 2.4% Staples, Inc................................ 50,000 1,292,000 ---------- Semiconductor Equipment -- 3.9% ASML Holding NV+............................ 12,000 297,000 Axcelis Technologies, Inc.+................. 40,000 305,600 FormFactor, Inc.+........................... 14,200 635,450 Varian Semiconductor Equipment Associates, Inc.+...................................... 17,000 907,460 ---------- 2,145,510 ---------- Semiconductors Components-Intergrated Circuits -- 1.0% Integrated Device Technology, Inc.+......... 35,000 539,700 ---------- Telecommunication Equipment -- 0.5% Arris Group, Inc.+.......................... 20,000 281,600 ---------- Telephone-Integrated -- 2.2% AT&T, Inc................................... 30,000 1,182,900 ----------
Shares/ Principal Value Security Description Amount (Note 3) ------------------------------------------------------------- Therapeutics -- 1.1% BioMarin Pharmaceutical, Inc.+..... 34,000 $ 586,840 ----------- Tobacco -- 2.2% Altria Group, Inc.................. 14,000 1,229,340 ----------- Web Portals/ISP -- 1.5% Google, Inc., Class A+............. 1,100 503,976 Yahoo!, Inc.+...................... 10,000 312,900 ----------- 816,876 ----------- X-Ray Equipment -- 2.6% Hologic, Inc.+..................... 25,000 1,441,000 ----------- Total Long-Term Investment Securities (cost $50,652,593)................ 53,851,037 ----------- REPURCHASE AGREEMENT -- 1.8% State Street Bank & Trust Co., Joint Repurchase Agreement(1) (cost $1,005,000)................. $1,005,000 1,005,000 ----------- TOTAL INVESTMENTS (cost $51,657,593)................ 100.0% 54,856,037 Other assets less liabilities........ 0.0 4,719 ---------- ----------- NET ASSETS -- 100.0% $54,860,756 ========== ===========
- -------- + Non-income producing security (1) See Note 3 for details of Joint Repurchase Agreement (2) See Note 7 for cost of investments on a tax basis ADR --American Depository Receipt See Notes to Financial Statements 62 SunAmerica International Small-Cap Fund PORTFOLIO PROFILE -- March 31, 2007 -- (unaudited) Industry Allocation* Building & Construction Products-Misc. 5.4% Auto/Truck Parts & Equipment-Original. 3.3 Banks-Commercial...................... 3.0 Building & Construction-Misc.......... 3.0 Time Deposits......................... 2.5 Machinery-General Industrial.......... 2.4 Real Estate Operations & Development.. 2.4 Apparel Manufacturers................. 2.2 Medical-Biomedical/Gene............... 2.2 Computers-Integrated Systems.......... 2.1 Diversified Manufactured Operations... 2.1 Retail-Apparel/Shoe................... 2.0 Food-Misc............................. 1.9 Machinery-Electrical.................. 1.9 Miscellaneous Manufacturing........... 1.6 Rental Auto/Equipment................. 1.6 Medical Instruments................... 1.5 Medical-Drugs......................... 1.5 Chemicals-Diversified................. 1.3 Engineering/R&D Services.............. 1.3 Finance-Other Services................ 1.3 Medical Products...................... 1.3 Office Automation & Equipment......... 1.3 Retail-Misc./Diversified.............. 1.3 Distribution/Wholesale................ 1.2 Footwear & Related Apparel............ 1.2 Machinery-Material Handling........... 1.2 Rubber-Tires.......................... 1.2 Audio/Video Products.................. 1.1 Brewery............................... 1.1 Computers............................. 1.1 Machinery-Construction & Mining....... 1.1 Oil-Field Services.................... 1.1 Retail-Restaurants.................... 1.1 Travel Services....................... 1.1 Oil Refining & Marketing.............. 1.0 Retail-Building Products.............. 1.0 Television............................ 1.0 Water................................. 1.0 Diversified Minerals.................. 0.9 Electric-Integrated................... 0.9 Electronic Components-Semiconductors.. 0.9 Enterprise Software/Service........... 0.9 Environmental Consulting & Engineering 0.9 Finance-Investment Banker/Broker...... 0.9 Advertising Sales..................... 0.8 Chemicals-Specialty................... 0.8 E-Commerce/Services................... 0.8 Electronic Components-Misc............ 0.8 Food-Flour & Grain.................... 0.8 Gambling (Non-Hotel).................. 0.8 Hotels/Motels......................... 0.8 Resorts/Theme Parks................... 0.8 Coatings/Paint........................ 0.7 Direct Marketing...................... 0.7 Environmental Monitoring & Detection.. 0.7 Retail-Consumer Electronics........... 0.7 Retail-Discount....................... 0.7 Telecommunication Equipment........... 0.7 Auto-Cars/Light Trucks................ 0.6
Consulting Services......................... 0.6% Electronics-Military........................ 0.6 Energy-Alternate Sources.................... 0.6 Oil Field Machinery & Equipment............. 0.6 Retail-Automobile........................... 0.6 Appliances.................................. 0.5 Applications Software....................... 0.5 Building-Maintance & Services............... 0.5 Commercial Services......................... 0.5 Engines-Internal Combustion................. 0.5 Human Resources............................. 0.5 Medical-Hospitals........................... 0.5 Motion Pictures & Services.................. 0.5 Beverages-Non-alcoholic..................... 0.4 Building Products-Cement.................... 0.4 Finance-Leasing Companies................... 0.4 Internet Content-Information/News........... 0.4 Medical-Wholesale Drug Distribution......... 0.4 Mining...................................... 0.4 Non-Ferrous Metals.......................... 0.4 Protection/Safety........................... 0.4 Retail-Sporting Goods....................... 0.4 Airport Development/Maintenance............. 0.3 Beverages-Wine/Spirits...................... 0.3 Cellular Telecom............................ 0.3 Cosmetics & Toiletries...................... 0.3 Decision Support Software................... 0.3 Food-Dairy Products......................... 0.3 Investment Management/Advisor Services...... 0.3 Machinery-Print Trade....................... 0.3 Retail-Bookstore............................ 0.3 Shipbuilding................................ 0.3 Transport-Truck............................. 0.3 Warehousing & Harbor Transportation Services 0.3 Computers-Periphery Equipment............... 0.2 E-Services/Consulting....................... 0.2 Electronic Connectors....................... 0.2 Electronic Parts Distribution............... 0.2 Leisure Products............................ 0.2 Printing-Commercial......................... 0.2 Machinery-Farming........................... 0.1 Medical-Generic Drugs....................... 0.1 ---- 99.1% ====
- -------- * Calculated as a percentage of Net Assets 63 SunAmerica International Small-Cap Fund PORTFOLIO PROFILE -- March 31, 2007 -- (unaudited) (continued) Country Allocation* Japan......... 27.1% Germany....... 14.7 Sweden........ 6.7 Finland....... 4.8 Denmark....... 4.7 France........ 4.2 United Kingdom 4.1 Ireland....... 3.5 Australia..... 2.8 Italy......... 2.5 United States. 2.5 Bermuda....... 2.2 South Korea... 2.2 Singapore..... 2.1 Greece........ 1.9 Switzerland... 1.9 Cayman Islands 1.7 Norway........ 1.7 Spain......... 1.7 Malaysia...... 1.3 Netherlands... 1.2 China......... 1.1 Austria....... 1.0 Indonesia..... 0.5 Taiwan........ 0.5 Philippines... 0.4 Cyprus........ 0.1 ---- 99.1% ====
- -------- * Calculated as a percentage of Net Assets 64 SunAmerica International Small-Cap Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited)
Value Security Description Shares (Note 3) ------------------------------------------------------------------ COMMON STOCK -- 93.7% Australia -- 2.8% Bradken, Ltd.................................. 26,826 $ 191,220 Independence Group NL......................... 38,739 155,778 JB Hi-Fi, Ltd................................. 36,632 224,071 Just Group, Ltd............................... 55,133 186,016 Sino Gold, Ltd.+.............................. 26,657 135,017 ---------- 892,102 ---------- Austria -- 1.0% Andritz AG.................................... 1,251 313,825 ---------- Bermuda -- 2.2% Celestial Nutrifoods, Ltd.+................... 235,000 243,186 Glorious Sun Enterprises, Ltd................. 436,000 212,043 Synear Food Holdings, Ltd.+................... 140,000 184,557 TPV Technology, Ltd........................... 110,000 70,391 ---------- 710,177 ---------- Cayman Islands -- 1.7% China Milk Products Group, Ltd.+.............. 125,000 103,813 China Rare Earth Holdings, Ltd................ 588,000 144,488 Prime Success International Group, Ltd........ 214,000 231,433 SPG Land Holdings, Ltd.+...................... 85,000 55,807 ---------- 535,541 ---------- China -- 1.1% First Tractor Co.+............................ 100,000 40,955 Shanghai Jin Jiang International Hotels Group Co., Ltd.+................................... 428,000 248,139 Travelsky Technology, Ltd..................... 36,000 63,398 ---------- 352,492 ---------- Cyprus -- 0.1% Marfin Popular Bank Public Co................. 2,132 22,955 ---------- Denmark -- 4.7% Bang & Olufsen A/S, Class B................... 2,770 343,161 Bavarian Nordic A/S+.......................... 1,639 151,331 FLSmidth & Co. A/S............................ 6,354 430,606 Genmab A/S+................................... 3,798 231,513 Royal UNIBREW A/S............................. 3,020 365,470 ---------- 1,522,081 ---------- Finland -- 4.8% KCI Konecranes Oyj............................ 10,365 347,537 Lassila & Tikanoja Oyj........................ 8,580 288,259 Nokian Renkaat Oyj............................ 13,867 379,747 Ramirent Oyj.................................. 6,443 516,413 ---------- 1,531,956 ---------- France -- 4.2% Icade+........................................ 4,970 365,154 Ingenico SA+.................................. 6,290 163,933 Neopost SA.................................... 2,644 377,923 Sechilienne SA................................ 3,170 187,425 Teleperformance............................... 5,997 262,043 ---------- 1,356,478 ----------
Value Security Description Shares (Note 3) --------------------------------------------------------- Germany -- 11.8% Bauer AG+............................ 6,714 $ 421,538 Demag Cranes AG...................... 2,849 185,687 ElringKlinger AG..................... 7,387 574,412 Fielmann AG.......................... 6,580 403,280 Francotyp-Postalia Holding AG+....... 1,752 45,170 Kloeckner & Co. AG................... 6,816 374,677 Pfleiderer AG........................ 18,560 540,992 Rational AG.......................... 810 157,166 Software AG.......................... 3,273 279,430 Symrise AG+.......................... 10,027 260,390 Thielert AG+......................... 5,240 162,677 Washtec AG+.......................... 1,177 23,254 Wincor Nixdorf AG.................... 3,960 369,028 ---------- 3,797,701 ---------- Greece -- 1.9% Athens Stock Exchange SA............. 18,540 425,491 Piraeus Bank SA...................... 5,043 175,154 ---------- 600,645 ---------- Indonesia -- 0.5% United Tractors Tbk PT............... 199,500 161,786 ---------- Ireland -- 3.5% Grafton Group PLC(1)................. 21,232 319,081 Iaws Group PLC....................... 12,980 301,704 Iaws Group PLC, Class A.............. 2,930 68,183 Kingspan Group PLC................... 13,171 349,251 Norkom Group PLC+.................... 36,550 95,209 ---------- 1,133,428 ---------- Italy -- 2.5% ASM SpA.............................. 46,680 301,654 Digital Multimedia Technologies SpA+. 2,190 211,397 Piccolo Credito Valtellinese Scarl... 6,830 113,045 Tod's SpA............................ 1,890 164,892 ---------- 790,988 ---------- Japan -- 27.1% Amano Corp........................... 5,000 61,057 Asahi Soft Drinks Co, Ltd............ 8,500 126,447 Chugoku Marine Paints, Ltd........... 26,000 236,303 Culture Convenience Club Co.......... 18,700 109,972 Daikoku Denki Co, Ltd................ 3,500 63,709 Dena Co., Ltd........................ 47 151,960 Digital Garage, Inc.+................ 36 64,460 Disco Corp........................... 2,200 134,420 Don Quijote Co, Ltd.................. 12,200 239,155 en-japan, Inc........................ 21 106,568 Exedy Corp........................... 8,300 236,660 Fujimi, Inc.......................... 4,700 146,376 Fullcast Co., Ltd.................... 37 91,998 Harmonic Drive Systems, Inc.......... 13 72,811 HIS Co, Ltd.......................... 8,500 244,526 Hisamitsu Pharmaceutical Co., Inc.... 4,900 144,705
65 SunAmerica International Small-Cap Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Value Security Description Shares (Note 3) -------------------------------------------------------------- COMMON STOCK (continued) Japan (continued) Hitachi Systems & Services, Ltd........... 6,300 $ 133,656 Intelligence, Ltd......................... 21 61,125 Iriso Electronics Co., Ltd................ 2,400 73,523 Japan Aviation Electronics Industry, Ltd.. 15,000 187,500 Japan Steel Works, Ltd.................... 16,000 192,396 Kaga Electronics Co, Ltd.................. 3,500 62,818 KaKaKu.com, Inc........................... 40 133,741 Kenedix, Inc.............................. 19 97,064 Koito Manufacturing Co., Ltd.............. 10,000 137,305 Kyoritsu Maintenance Co., Ltd............. 6,300 146,487 Kyowa Exeo Corp........................... 15,000 164,460 La Parler Co., Ltd........................ 38 57,722 Lintec Corp............................... 8,800 173,625 Mani, Inc................................. 1,200 77,699 Milbon Co., Ltd........................... 1,600 49,695 Miraca Holdings, Inc...................... 5,000 104,803 Miraial Co., Ltd.......................... 800 79,633 Modec, Inc................................ 6,300 178,564 Moshi Moshi Hotline, Inc.................. 4,550 210,820 Nabtesco Corp............................. 19,000 249,915 Nichias Corp.............................. 18,000 155,346 Nippon Chemiphar Co, Ltd.+................ 8,000 43,652 Nishimatsuya Chain Co., Ltd............... 4,800 81,059 Nissha Printing Co, Ltd................... 2,000 52,953 Obic Co, Ltd.............................. 910 180,008 Oenon Holdings, Inc....................... 31,000 82,604 Okasan Holdings, Inc...................... 18,000 140,530 Otsuka Corp............................... 1,900 181,874 Park24 Co, Ltd............................ 11,000 147,955 ResortTrust, Inc.......................... 11,400 266,039 Sankyu, Inc............................... 20,000 107,604 Sasebo Heavy Industries Co., Ltd.......... 24,000 91,650 Sato Corp................................. 4,300 86,847 Secom Techno Service Co., Ltd............. 3,000 128,564 St. Marc Holdings Co., Ltd................ 1,800 106,008 Star Micronics Co., Ltd................... 7,900 170,617 Sysmex Corp............................... 4,800 174,338 Taiyo Ink Manufacturing Co., Ltd.......... 3,200 95,044 Teikoku Piston Ring Co., Ltd.............. 13,400 116,215 Telepark Corp............................. 58 84,165 The Kagoshima Bank, Ltd................... 10,000 72,811 Toho Pharmaceutical Co., Ltd.............. 7,200 130,143 Toshiba Machine Co., Ltd.................. 10,000 102,512 Toyo Tanso Co., Ltd....................... 1,600 164,698 Tsumura & Co.............................. 5,200 122,454 UFJ Central Leasing Co., Ltd.............. 2,700 130,601 Unicharm Petcare Corp..................... 1,600 55,669 Union Tool Co............................. 3,100 127,588 USS Co, Ltd............................... 3,070 200,342 Works Applications Co., Ltd.+............. 124 91,653 Xebio Co., Ltd............................ 4,500 125,636 Yamaguchi Financial Group, Inc............ 5,000 67,379 ---------- 8,688,236 ---------- Malaysia -- 1.3% Cheetah Holdings Bhd...................... 313,800 105,281 IGB Corp. Bhd............................. 188,300 136,698
Value Security Description Shares (Note 3) ---------------------------------------------------------------- Malaysia (continued) Muhibbah Engineering (M) Bhd................ 47,300 $ 72,506 Transmile Group Bhd......................... 26,200 99,268 ---------- 413,753 ---------- Netherlands -- 1.2% Aalberts Industries NV...................... 3,770 372,373 ---------- Norway -- 1.7% ProSafe ASA................................. 22,700 347,318 Sevan Marine ASA+........................... 21,891 192,680 ---------- 539,998 ---------- Philippines -- 0.4% Chemrez Technologies, Inc................... 107,000 10,977 International Container Term Services, Inc.. 185,600 105,783 ---------- 116,760 ---------- Singapore -- 2.1% Ho Bee Investment, Ltd...................... 154,000 229,404 Raffles Medical Group, Ltd.................. 188,000 152,417 STATS ChipPAC, Ltd.+........................ 144,000 172,745 United Test and Assembly Center, Ltd.+...... 185,000 110,965 ---------- 665,531 ---------- South Korea -- 2.2% CJ Internet Corp............................ 5,940 155,950 Hanmi Pharm Co., Ltd........................ 739 95,438 JVM Co., Ltd................................ 2,280 114,630 Korea Zinc Co., Ltd......................... 1,070 114,302 Modetour Network, Inc....................... 2,573 109,123 Sungshin Cement Co., Ltd.................... 5,920 115,153 ---------- 704,596 ---------- Spain -- 1.7% Banco Pastor SA............................. 15,759 363,141 Mecalux SA.................................. 3,860 190,271 ---------- 553,412 ---------- Sweden -- 6.7% Elekta AB, Class B.......................... 16,395 295,250 JM AB....................................... 11,970 412,268 Lindab International AB+.................... 16,784 373,763 Modern Times Group AB, Class B+............. 5,326 311,576 Munters AB.................................. 5,380 233,451 Q-Med AB.................................... 10,709 165,632 RaySearch Laboratories AB+.................. 6,530 165,522 rnb Retail and Brands AB.................... 14,980 179,130 ---------- 2,136,592 ---------- Switzerland -- 1.9% Banque Cantonale Vaudoise+.................. 347 165,197 Basilea Pharmaceutica AG+................... 1,042 242,031 Compagne Financiere Tradition+.............. 940 143,884 Speedel Holding AG+......................... 520 76,728 ---------- 627,840 ---------- Taiwan -- 0.5% Sanyang Industrial Co., Ltd................. 302,000 177,958 ----------
66 SunAmerica International Small-Cap Fund PORTFOLIO OF INVESTMENTS -- March 31, 2007 -- (unaudited) (continued)
Shares/ Principal Value Security Description Amount (Note 3) ----------------------------------------------------------- COMMON STOCK (continued) United Kingdom -- 4.1% Cookson Group PLC................... 25,640 $ 313,582 Detica Group PLC.................... 22,998 186,910 IG Group Holdings PLC............... 45,550 266,441 Luminar PLC......................... 17,179 255,233 Northumbrian Water Group PLC........ 50,390 307,396 ----------- 1,329,562 ----------- Total Common Stock (cost $26,606,068)................. 30,048,766 ----------- PREFERRED STOCK -- 2.9% Germany -- 2.9% Fuchs Petrolub AG................... 3,630 318,297 Hugo Boss AG 7.49%.............................. 10,370 602,596 ----------- Total Preferred Stock (cost $783,714).................... 920,893 ----------- Total Long-Term Investment Securities (cost $27,389,782)................. 30,969,659 ----------- SHORT-TERM INVESTMENT SECURITIES -- 2.5% Euro Time Deposit with State Street Bank & Trust Co. 1.80% due 04/02/07 (cost $809,000).................... $809,000 809,000 ----------- TOTAL INVESTMENTS -- (cost $28,198,782)(2).............. 99.1% 31,778,659 Other assets less liabilities......... 0.9 297,330 -------- ----------- NET ASSETS -- 100.0% $32,075,989 ======== ===========
- -------- + Non-income producing security (1)Consists of more than one class of securities traded together as a unit. (2)See Note 7 for cost of investments on a tax basis See Notes to Financial Statements 67 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited) Note 1. Organization SunAmerica Equity Funds is registered under the Investment Company Act of 1940, as amended, (the "1940 Act") as an open-end management investment company and was organized as a Massachusetts business trust (the "Trust" or "Equity Funds") on June 16, 1986. It currently consists of nine different funds (each, a "Fund" and collectively, the "Funds"). Each Fund is a separate series of the Trust with a distinct objective and/or strategy. Each Fund is advised and/or managed by AIG SunAmerica Asset Management Corp. (the "Adviser" or "AIG SunAmerica"), an indirect wholly-owned subsidiary of American International Group, Inc. ("AIG"). An investor may invest in one or more of the following Funds: SunAmerica Blue Chip Growth Fund ("Blue Chip Growth Fund"), SunAmerica Growth Opportunities Fund ("Growth Opportunities Fund"), SunAmerica New Century Fund ("New Century Fund"), SunAmerica Growth and Income Fund ("Growth and Income Fund"), SunAmerica Balanced Assets Fund ("Balanced Assets Fund"), SunAmerica International Equity Fund ("International Equity Fund"), SunAmerica Value Fund ("Value Fund"), Tax Managed Equity Fund ("Tax Managed Equity Fund") and SunAmerica International Small-Cap Fund ("International Small-Cap Fund"). The Funds are considered to be separate entities for financial and tax reporting purposes. The investment objective and principal investment techniques for each of the Funds is as follows: Blue Chip Growth Fund seeks capital appreciation, by primarily investing in equity securities of Blue Chip companies that demonstrate the potential for capital appreciation. At least 80% of the Fund's net assets plus any borrowing for investment purposes will be invested in such securities. Growth Opportunities Fund seeks capital appreciation by primarily investing in equity securities that demonstrate the potential for capital appreciation, issued generally by small-cap companies. New Century Fund seeks capital appreciation by investing in equity securities that demonstrate the potential for capital appreciation, without regard to market capitalization. Growth and Income Fund seeks capital appreciation and current income by investing in equity securities issued by companies of any size, that pay dividends, demonstrate the potential for capital appreciation and/or are believed to be undervalued in the market. Balanced Assets Fund seeks capital appreciation and conservation of principal through active trading partly in equity securities that demonstrate the potential for capital appreciation issued by companies with market capitalization of over $1.5 billion and partly in investment-grade fixed income securities. International Equity Fund seeks capital appreciation by investing in equity securities and other securities with equity characteristics of non-U.S. issuers located in a number of different countries other than the U.S. and selected without regard to market capitalization. At least 80% of the Fund's net assets plus any borrowing for investment purposes will be invested in such securities. Value Fund seeks long-term growth of capital through active trading of equity securities selected on the basis of value criteria, issued by companies of any market capitalization. Tax Managed Equity Fund* seeks high total return while minimizing the impact of capital gains through active trading of equity securities of large and medium-sized U.S. 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. International Small-Cap Fund seeks long-term capital appreciation by investing in equity and equity-related securities of small-capitalization companies throughout the world including emerging market countries, excluding the U.S. Under normal circumstances, at least 80% of the Fund's net assets, plus any borrowings for investment purposes will be invested in such securities. The Blue Chip Growth Fund, Growth Opportunities Fund, New Century Fund, Growth and Income Fund, Balanced Assets Fund, Tax Managed Equity Fund and International Small-Cap Fund are organized as "diversified" funds within the meaning of the 1940 Act. The International Equity Fund and Value Fund are organized as "non-diversified" funds. - -------- * On May 15, 2007, the Tax Managed Equity Fund changed its name to the "SunAmerica Disciplined Growth Fund." The Fund seeks capital appreciation by active trading of equity securities that demonstrate the potential for capital appreciation, without regard to market capitalization. 68 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited) (continued) Each Fund offers multiple classes of shares. The classes within each Fund are presented in the Statement of Assets and Liabilities. The cost structure for each class is as follows: Class A shares are offered at net asset value per share plus an initial sales charge. Additionally, purchases of Class A shares in excess of $1,000,000 will be purchased at net asset value but will be subject to a contingent deferred sales charge on redemptions made within two years of purchase. With respect to Class A shares of the International Equity Fund and International Small-Cap Fund, a redemption fee of 2% will be assessed on the proceeds of any redemption of shares that were purchased within ninety (90) days prior to the date of such redemption. An exchange fee of 2% will be assessed on the amount of any exchange of Class A shares of the International Equity Fund and International Small-Cap Fund that were purchased within ninety (90) days prior to the date of such exchange. Class B shares are offered without an initial sales charge, although a declining contingent sales charge may be imposed on redemptions made within six years of purchase. Class B shares of each Fund convert automatically to Class A shares approximately eight years after purchase of such Class B shares and at such time will be subject to the lower distribution fee applicable to Class A shares. Class C shares are offered at net asset value per share without an initial sales charge, although may be subject to a contingent deferred sales charge on redemptions made within 12 months of purchase. Certain Class C shares of particular Funds issued in connection with particular reorganizations or mergers will convert automatically to Class A shares approximately ten years after purchase and at such time will be subject to the lower distribution fee applicable to Class A shares. Class I and Class Z shares are offered at net asset value per share. These classes are offered exclusively to participants in certain employee benefit plans and other programs. Each class of shares bears the same voting, dividend, liquidation and other rights and conditions, except as may otherwise be provided in the Trust's registration statement. Class A, Class B and Class C shares each makes distribution and account maintenance fee payments under the distribution plans pursuant to Rule 12b-1 under the 1940 Act, except that Class B and Class C shares are subject to higher distribution fee rates. Class I shares and Class Z shares have not adopted 12b-1 plans and make no payments thereunder, however, Class I shares pay a service fee to the Funds' distributor for providing administrative and shareholder services. Indemnifications: Under the Trust's organizational documents, its officers and trustees are indemnified against certain liability arising out of the performance of their duties to the Trust. In addition, in the normal course of business the Trust enters into contracts that contain the obligation to indemnify others. The Trust's maximum exposure under these arrangements is unknown. Currently, however, the Trust expects the risk of loss to be remote. Note 2. Fund Merger Pursuant to a plan of reorganization, all the assets and liabilities of SunAmerica Biotech/Health Fund ("Biotech/Health Fund") were transferred in a tax-free exchange to the New Century Fund, in exchange for shares of New Century Fund. The details of the reorganization, which was consummated on March 19, 2007, are set forth below. Class A, Class B, and Class C shares of Biotech/Health Fund were exchanged tax-free for Class A, Class B, and Class C shares of New Century Fund, respectively. Net assets and unrealized appreciation (depreciation) as of the merger date were as follows: Net assets of the Biotech/Health Fund prior to merger............. $ 21,294,588 Net assets of the New Century Fund prior to merger................ $ 88,216,005 ------------ Aggregate net assets of the New Century Fund following acquisition $109,510,593 ------------ Unrealized appreciation (depreciation) in the Biotech/Health Fund. $ 397,826
69 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited) (continued) Note 3. Significant Accounting Policies The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these estimates. The following is a summary of the significant accounting policies followed by the Trust in the preparation of their financial statements: Security Valuations: Stocks are generally valued based upon closing sales prices reported on recognized securities exchanges. Stocks listed on the NASDAQ are valued using the NASDAQ Official Closing Price ("NOCP"). Generally, the NOCP will be the last sale price unless the reported trade for the stock is outside the range of the bid/ask price. In such cases, the NOCP will be normalized to the nearer of the bid or ask price. For listed securities having no sales reported and for unlisted securities, such securities will be valued based upon the last reported bid price. As of the close of regular trading on the New York Stock Exchange ("NYSE"), securities traded primarily on security exchanges outside the United States are valued at the last sale price on such exchanges on the day of valuation, or if there is no sale on the day of valuation, at the last-reported bid price. If a security's price is available from more than one exchange, a portfolio uses the exchange that is the primary market for the security. However, depending on the foreign market, closing prices may be up to 15 hours old when they are used to price a Fund's shares, and the Fund may determine that certain closing prices are unreliable. This determination will be based on review of a number of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U.S. markets that represent foreign securities and baskets of foreign securities. If a Fund determines that closing prices do not reflect the fair value of the securities, the Fund will adjust the previous closing prices in accordance with pricing procedures approved by the Board of Trustees (the "Board") to reflect what it believes to be the fair value of the securities as of the close of regular trading on the NYSE. The Funds may also fair value securities in other situations, for example, when a particular foreign market is closed but a Fund is open. For foreign equity securities, the Funds use an outside pricing service to provide it with closing market prices and information used for adjusting those prices. Non-convertible bonds and debentures, other long-term debt securities, and short term debt securities with maturities in excess of 60 days, are valued at bid prices obtained for the day of valuation from a bond pricing service, when such prices are available. If a vendor quote is unavailable the securities may be priced at the mean of two independent quotes obtained from brokers. Securities for which market quotations are not readily available are valued as determined pursuant to procedures adopted in good faith by the Board. Short-term securities with 60 days or less to maturity are amortized to maturity based on their cost to the Fund if acquired within 60 days of maturity or, if already held by the Fund on the 60th day, are amortized to maturity based on the value determined on the 61st day. Securities for which market quotations are not readily available or where a development/significant event occurs that may significantly impact the value of the security, are fair valued, as determined pursuant to procedures adopted in good faith by the Board of Trustees. On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. However, Registered Investment Companies are not required to implement FIN 48 until their last net asset value calculation in the first required financial statement reporting period for fiscal years beginning after December 15, 2006. At this time, management is evaluating the implications of FIN 48 and its impact in the financial statements, if any, has not yet been determined. In September 2006, the FASB issued Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"). This standard clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value 70 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited) (continued) and requires additional disclosures about the use of fair value measurements. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. As of March 31, 2007, the Funds do not believe the adoption of FAS 157 will impact the amounts reported in the financial statements, however, additional disclosures will be required about the inputs used to develop the measurements of fair value. Repurchase Agreements: The Funds, along with other affiliated registered investment companies, pursuant to exemptive relief granted by the Securities and Exchange Commission ("SEC"), may transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by U.S. Treasury or federal agency obligations. For repurchase agreements and joint repurchase agreements, the Funds' custodian takes possession of the collateral pledged for investments in repurchase agreements ("repo" or collectively "repos"). The underlying collateral is valued daily on a mark to market basis to ensure that the value, at the time the agreement is entered into, is equal to at least 102% of the repurchase price, including accrued interest. In the event of default of the obligation to repurchase, a Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited. As of March 31, 2007, the following Funds held an undivided interest in a joint repurchase agreement with State Street Bank & Trust Co.:
Percentage Principal Fund Interest Amount - ---- ---------- ----------- Blue Chip Growth.... 3.39% $ 2,280,000 Growth Opportunities 8.51 5,722,000 New Century......... 26.89 18,068,000 Balanced Assets..... 2.81 1,888,000 Value............... 4.65 3,125,000 Tax Managed......... 1.50 1,005,000
As of such date, the repurchase agreement in that joint account and the collateral therefore were as follows: State Street Bank & Trust Co., dated March 31, 2007, bearing interest at a rate of 4.60% per annum, with a principle amount of $67,200,000, a repurchase price of $67,225,760 and a maturity date of April 2, 2007. The repurchase agreement is collateralized by the following:
Maturity Principal Type of Collateral Interest Rate Date Amount Market Value - ------------------ ------------- -------- ----------- ------------ U.S. Treasury Bonds 8.875% 08/15/17 $34,885,000 $47,075,493 U.S. Treasury Bonds 8.875 02/15/19 15,570,000 21,470,719
In addition, at March 31, 2007, the following Fund held an undivided interest in a joint repurchase agreement with UBS Securities LLC:
Percentage Principal Fund Interest Amount - ---- ---------- ---------- New Century 1.44% $3,234,000
As of such date, the repurchase agreement in that joint account and the collateral therefore were as follows: UBS Securities LLC, dated March 31, 2007, bearing interest at a rate of 5.12% per annum, with a principal amount of $225,000,000 a repurchase price of $225,096,000, and a maturity date of April 2, 2007. The repurchase agreement is collateralized by the following:
Maturity Principal Type of Collateral Interest Rate Date Amount Market Value - ------------------ ------------- -------- ------------ ------------ U.S. Treasury Inflation Index Bonds 1.625% 01/15/15 $225,000,000 $229,500,000
71 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited) (continued) Securities Transactions, Investment Income, Expenses, Dividends and Distributions to Shareholders: Security transactions are recorded on a trade date basis. Realized gains and losses on sales of investments are calculated on the identified cost basis. Interest income is accrued daily except when collection is not expected. Dividend income is recorded on the ex-dividend date except for certain dividends from foreign securities, which are recorded as soon as the Fund is informed after the ex-dividend date. Funds which earn foreign income and capital gains may be subject to foreign withholding taxes and capital gains taxes at various rates. Under applicable foreign law, a withholding of tax may be imposed on interest, dividends, and capital gains at various rates. For financial statements purposes, the Funds amortize all premiums and accrete all discounts on fixed income securities. Net investment income, other than class-specific expenses, and realized and unrealized gains and losses, are allocated daily to each class of shares based upon the relative net asset value of outstanding shares of each class of shares at the beginning of the day (after adjusting for the current capital shares activity of the respective class). Expenses common to all Funds, not directly related to individual Funds, are allocated among the Funds based upon their relative net asset value or other appropriate methods. In all other respects, expenses are charged to each Fund as incurred on a specific identification basis. Interest earned on cash balances held at the custodian are shown as custody credits on the Statement of Operations. Dividends from net investment income, if any, are paid annually, except for the Balanced Assets Fund and Growth and Income Fund, which pay quarterly. Capital gain distributions, if any, are paid at least annually. The Balanced Assets Fund and Growth and Income Fund reserve the right to declare and pay dividends less frequently than disclosed above, provided that net realized capital gains and net investment income, if any, are paid annually. The Funds record dividends and distributions to their shareholders on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined and presented in accordance with federal income tax regulations, which may differ from U.S. generally accepted accounting principles. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts at fiscal year end based on their federal tax-basis treatment; temporary differences do not require reclassification. Net investment income (loss), net realized gain (loss) and net assets are not affected by these reclassifications. Each Fund intends to comply with the requirements of the Internal Revenue Code, as amended, applicable to regulated investment companies and distribute all of its taxable income, including any net realized gain on investments to its shareholders. Therefore, no federal tax provisions are required. Each Fund is considered a separate entity for tax purposes. Investment Securities Loaned: In lending portfolio securities to brokers the Fund receives cash as collateral against the loaned securities, which must be maintained at not less than 102% of the market value of the loaned securities during the period of the loan. The Fund may use the cash collateral received to invest in short-term investments which earn interest income or to cover bank overdrafts. Any interest earned from the investment of the collateral is recorded by the Funds net of the portion of interest that is rebated to the borrowing broker. As with other extensions of credit, should the borrower of the securities fail financially, the Fund may bear the risk of delay in recovery or may be subject to replacing the loaned securities by purchasing them with the cash collateral held, which may be less than 100% of the market value of such securities at the time of replacement. For the period ended March 31, 2007, none of the Funds participated in securities lending with qualified brokers. Foreign Currency Translation: The books and records of the Funds are maintained in U.S. dollars. Assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation. The Funds do not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in the market prices of securities held at the end of the period. Similarly, the Funds do not isolate the effect of changes in foreign exchange rates from the changes in the market prices of portfolio securities sold during the period. Realized foreign exchange gains and losses on other assets and liabilities and change in unrealized foreign exchange gains and losses on other assets and liabilities include foreign exchange gains and losses from currency gains or losses between the trade and settlement dates of securities transactions, the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Funds' books and the U.S. dollar equivalent amounts actually received or paid and 72 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited) (continued) 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. Forward Foreign Currency Contracts: Certain funds may enter into forward foreign currency contracts ("forward contracts") to attempt to protect securities and related receivables and payables against changes in future foreign exchange rates or to enhance return. A forward contract is an agreement between two parties to buy or sell currency at a set price on a future date. The market value of the contract will fluctuate with changes in currency exchange rates. The contract is marked to market daily using the forward rate and the change in market value is recorded by the Fund as unrealized gain or loss. On settlement date, the Fund records realized foreign exchange gains or losses when the contract is closed 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. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. Forward contracts involve elements of risk in excess of the amounts reflected in the Statement of Assets and Liabilities. The Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the forward contract. 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 a futures transaction, a Fund will be required to segregate an initial margin payment of cash or other liquid securities with the Futures Commission Merchant ("the broker"). The Funds' activities in futures contracts are used primarily for hedging purposes and from time to time for income enhancement. Futures contracts are conducted through regulated exchanges that minimize counter-party credit risks. A Funds' 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. Options: An option is a contract conveying a right to buy or sell a financial instrument at a specified price during a stipulated period. The premium paid by a Fund for the purchase of a call or a put option is included in the Fund's Statement of Assets and Liabilities as an investment and subsequently marked to market to reflect the current market value of the option. When a Fund writes a call or a put option, an amount equal to the premium received by the Fund is included in the Fund's Statement of Assets and Liabilities as a liability and is subsequently marked to market to reflect the current market value of the option written. If an option which the Fund has written either expires on its stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or loss if the cost of a closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such options is extinguished. If a call option which the Fund has written is exercised, the Fund realizes a capital gain or loss from the sale of the underlying security and the proceeds from such sale are increased by the premium originally received. If a put option which the Fund has written is exercised, the amount of the premium originally received reduces the cost of the security which the Fund purchased upon exercise of the option. There were no transactions in call and put options written during the period ended March 31, 2007. Short Sales: All funds may engage in "short sales against the box". A short sale is against the box to the extent that the Fund contemporaneously owns, or has the right to obtain without payment, securities identical to those sold short. In addition, the Tax Managed Equity Fund, Value Fund, International Equity Fund and International Small-Cap Fund 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 accrues during the period of the loan. To borrow the security, the Fund 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 73 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited) (continued) 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 Trust, on behalf of each Fund, has an Investment Advisory and Management Agreement (the "Agreement") with AIG SunAmerica. Under the Agreement, AIG SunAmerica provides continuous supervision of a Fund's portfolio and administers its corporate affairs, subject to general review by the Trustees. In connection therewith, AIG SunAmerica furnishes the Funds with office facilities, maintains certain of the Funds' books and records, and pays the salaries and expenses of all personnel, including officers of the Funds who are employees of AIG SunAmerica and its affiliates. The Funds pay AIG SunAmerica a monthly investment advisory and management fee calculated daily at the following annual percentages of each Fund's average daily net assets:
Management Assets Fees --------------------------- ---------- Blue Chip Growth Fund *..... $0 - $350 million 0.75% (greater than) $350 million 0.70% (greater than) $700 million 0.65% Growth Opportunities Fund *. $0 - $350 million 0.75% (greater than) $350 million 0.70% (greater than) $700 million 0.65% New Century Fund............ $0 - $350 million 0.75% (greater than) $350 million 0.70% (greater than) $700 million 0.65% Growth and Income Fund+..... $0 - $350 million 0.75% (greater than) $350 million 0.70% (greater than) $700 million 0.65% Balanced Assets Fund *...... $0 - $350 million 0.75% (greater than) $350 million 0.70% (greater than) $700 million 0.65% International Equity Fund... (greater than) $0 1.00% Value Fund.................. $0 - $750 million 1.00% (greater than) $750 million 0.95% (greater than) $1.5 billion 0.90% Tax Managed Equity Fund..... (greater than) $0 0.85% International Small-Cap Fund (greater than) $0 1.15%
- -------- * On August 29, 2006, AIG SunAmerica agreed to the continuation of a 0.05% waiver of the investment advisory fees for the Blue Chip Growth Fund, Growth Opportunities Fund and Balanced Assets Fund. Effective September 1, 2006, AIG SunAmerica agreed to, until further notice, an additional 0.02% waiver of the investment advisory fee for these funds. Effective October 1, 2006, AIG SunAmerica agreed to, until further notice, reduce the waiver of the investment advisory fee for the funds to 0.02%. Effective January 1, 2007, AIG SunAmerica removed the 0.02% waiver from the Growth Opportunities Fund. For the period ended March 31, 2007, the amount of investment advisory fees waived were $7,074, $3,580 and $16,135, respectively. These amounts are reflected in the Statement of Operations. + Effective September 1, 2006, AIG SunAmerica agreed, until further notice, to waive 0.05% of the investment advisory fees for the Growth and Income Fund. Effective January 1, 2007, AIG SunAmerica removed the 0.05% waiver from the Growth and Income Fund. For the period ended March 31, 2007, the amount of investment advisory fees waived were $14,698. These amounts are reflected in the Statement of Operations. For the period ended March 31, 2007, AIG SunAmerica earned fees in the amounts stated in the Statement of Operations. The International Equity Fund and International Small-Cap Fund are subadvised by AIG Global Investment Corp. ("AIGGIC") pursuant to a subadvisory agreement with AIG SunAmerica. AIGGIC is an indirect wholly-owned subsidiary of AIG and an affiliate of AIG SunAmerica. AIGGIC receives an annual fee of 0.47% of average daily net assets for the International Equity Fund and 0.60% of average daily net assets for the International Small-Cap Fund, which is paid by AIG SunAmerica. For the period ended March 31, 2007, AIGGIC waived 0.05% of the fee paid by AIG SunAmerica for the International Small-Cap Fund. 74 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited) (continued) AIG SunAmerica has contractually agreed to waive fees or reimburse expenses, if necessary, to maintain the funds' expense ratios at or below the following percentages of each Fund's average net assets. The expense reimbursements and fee waivers will continue indefinitely subject to termination by the Trustees, including a majority of the trustees who are not deemed to be "interested persons" of the Trust, as defined by Section 2(a)(19) of the 1940 Act ("Independent Trustees").
Fund Percentage - ---- ---------- Blue Chip Growth Class I....... 1.33% Growth Opportunities Class I... 1.33 Growth and Income Class I...... 1.32 Balanced Assets Class I........ 1.33 International Equity Class A... 1.90 International Equity Class B... 2.55 International Equity Class C... 2.55 International Equity Class I... 1.80 Value Class A.................. 1.63 Value Class B.................. 2.28 Value Class C.................. 2.28 Value Class I.................. 1.53 Value Class Z.................. 1.06 Tax Managed Class A............ 1.45 Tax Managed Class B............ 2.10 Tax Managed Class C............ 2.10 International Small-Cap Class A 1.90 International Small-Cap Class B 2.55 International Small-Cap Class C 2.55
AIG SunAmerica has voluntarily agreed to waive fees or reimburse expenses, if necessary, to maintain the funds' expense ratios at or below the following percentages of each Fund's average net assets. The voluntary fee waivers and/or expense reimbursements will continue indefinitely but may be terminated at any time at the option of AIG SunAmerica.
Fund Percentage - ---- ---------- New Century Class C 2.14%
For the International Equity Fund, Value Fund, Tax Managed Fund and International Small-Cap Fund, any waivers or reimbursements made by AIG SunAmerica are subject to recoupment from the Funds within the following two years of making such waivers or reimbursements, provided that the Funds are able to effect such payment to AIG SunAmerica and remain in compliance with the foregoing expense limitations. For the period ended March 31, 2007, AIG SunAmerica has agreed to reimburse expenses as follows: Blue Chip Growth Class I.... $ 6,923 Growth Opportunities Class I 6,953 New Century Fund Class C.... 10,473 Growth & Income Class I..... 6,551 Balanced Assets Class I..... 7,686 International Equity Class A 15,465 International Equity Class B 7,898 International Equity Class C 7,294 International Equity Class I 4,162 Value Fund Class A.......... 55,272 Value Fund Class B.......... 30,641 Value Fund Class C.......... 20,916 Value Fund Class I.......... 8,076 Value Fund Class Z.......... 14,282 Tax Managed Equity Class A.. 50,262
75 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited) (continued) Tax Managed Equity Class B..... $24,137 Tax Managed Equity Class C..... 54,468 International Small-Cap Class A 67,079 International Small-Cap Class B 12,470 International Small-Cap Class C 19,397
For the period ended March 31, 2007, the amounts recouped by the Adviser are as follows: International Equity Class A $17,313 International Equity Class B 31 International Equity Class C 1,650 International Equity Class I --
At March 31, 2007, expenses previously waived or reimbursed by AIG SunAmerica that are subject to recoupment are as follows:
Class Other Specific Expenses Expenses Reimbursed Reimbursed - - ---------- ---------- International Equity Class A........ $ -- $ 32,719 International Equity Class B........ -- 25,840 International Equity Class C........ -- 21,401 International Equity Class I........ -- 9,038 Value Fund Class A.................. 57,953 116,342 Value Fund Class B.................. 23,895 77,096 Value Fund Class C.................. 16,523 40,679 Value Fund Class I.................. 1,055 17,119 Value Fund Class Z.................. 9,550 21,074 Tax Managed Equity Class A.......... 7,752 119,665 Tax Managed Equity Class B.......... 9,807 96,412 Tax Managed Equity Class C.......... 9,493 132,647 International Small-Cap Fund Class A 109,215 65,769 International Small-Cap Fund Class B 2,066 30,306 International Small-Cap Fund Class C 5,877 37,325
The Trust, on behalf of each Fund, has entered into a Distribution Agreement with AIG SunAmerica Capital Services, Inc. ("AIG SACS" or the "Distributor"), an affiliate of the Adviser. Each Fund has adopted a Distribution Plan on behalf of each class of shares (other than Class I and Class Z shares) (each a "Plan" and collectively, the "Plans") in accordance with the provisions of Rule 12b-1 under the 1940 Act, hereinafter referred to as the "Class A Plan," "Class B Plan" and "Class C Plan." In adopting the Plans, the Trustees determined that there was a reasonable likelihood that each such Plan would benefit the Fund and the shareholders of the respective class. The sales charge and distribution fees of a particular class will not be used to subsidize the sale of shares of any other class. Under the Class A Plan, Class B Plan and Class C Plan, the Distributor receives a distribution fee from a Fund at an annual rate of 0.10%, 0.75% and 0.75%, respectively, of the average daily net assets of the Fund's Class A, Class B and Class C shares to compensate the Distributor and certain securities firms for providing sales and promotional activities for distributing that class of shares. The distribution costs for which the Distributor may be compensated include fees paid to broker-dealers that have sold Fund shares, commissions and other expenses such as those incurred for sales literature, prospectus printing and distribution and compensation to wholesalers. It is possible that in any given year the amount paid to the Distributor under each Class' Plan may exceed the Distributor's distribution costs as described above. The Plans provide that the Class A, Class B and Class C shares of each Fund will pay the Distributor an account maintenance fee up to an annual rate of 0.25% of the aggregate average daily net assets of such class of shares for payments to compensate the Distributor and certain securities firms for account maintenance activities. Accordingly, for the period ended March 31, 2007, AIG SACS received fees (see Statement of Operations) based upon the aforementioned rates. 76 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited) (continued) In addition, AIG SACS is paid a fee of 0.25% of average daily net assets of Class I shares in connection with providing administrative and shareholder services to Class I shareholders. For the period ended March 31, 2007, AIG SACS earned fees (see Statement of Operations) based upon the aforementioned rates. AIG SACS receives sales charges on each Fund's Class A shares, portions of which are reallocated to affiliated broker-dealers and non-affiliated broker-dealers. AIG SACS also receives the proceeds of contingent deferred sales charges paid by investors in connection with certain redemptions of each Fund's Class A, Class B and Class C shares. AIG SACS has advised the Funds that for the period ended March 31, 2007, the proceeds received from sales (and paid out to affiliated and non-affiliated broker-dealers) and redemptions are as follows:
Class A Class B Class C --------------------------------------------------- ------------- ------------- Contingent Contingent Contingent Sales Affiliated Non-affiliated Deferred Deferred Deferred Fund Charges Broker-dealers Broker-dealers Sales Charges Sales Charges Sales Charges - ---- ------- -------------- -------------- ------------- ------------- ------------- Blue Chip Growth....... $17,232 $ 7,098 $ 7,098 $ -- $12,604 $ 226 Growth Opportunities... 20,420 8,957 8,480 -- 13,402 96 New Century............ 21,370 9,941 8,395 85 10,324 48 Growth & Income........ 34,007 15,161 13,968 14 17,597 546 Balanced Assets........ 76,055 46,689 18,867 489 18,394 88 International Equity... 60,757 15,961 33,614 55 12,567 1,303 Value.................. 72,201 25,275 31,854 266 35,199 906 Tax Managed Equity..... 33,569 20,936 11,785 60 3,237 7,211 International Small-Cap 32,035 6,465 18,845 -- -- 287
The Trust has entered into a Service Agreement with AIG SunAmerica Fund Services, Inc. ("AIG SAFS"), an affiliate of the Adviser. Under the Service Agreement, AIG SAFS performs certain shareholder account functions by assisting the Funds' transfer agent in connection with the services that it offers to the shareholders of the Funds. Pursuant to the Service Agreement, the Funds (except for Class Z shares of the Funds) pay a fee to AIG SAFS for services rendered based upon an annual rate of 0.22% of average daily net assets. No portion of this fee is paid or reimbursed by the Class Z shares, however, Class Z shares pay all direct transfer agency fees and out-of-pocket expenses relating to Class Z shares. For the period ended March 31, 2007, the Funds incurred the following expenses which are included in transfer agent fees payable in the Statement of Asset and Liabilities and in transfer agent fees and expenses in the Statement of Operations to compensate AIG SAFS pursuant to the terms of the Service Agreement.
Expense Payable At March 31, 2007 -------------------------------- ------------------------------- Fund Class A Class B Class C Class I Class A Class B Class C Class I - ---- -------- ------- ------- ------- ------- ------- ------- ------- Blue Chip Growth....... $ 51,389 $17,105 $ 4,404 $ 696 $ 8,812 $2,972 $ 759 $ 112 Growth Opportunities... 40,784 22,254 10,043 300 7,227 3,913 1,811 27 New Century............ 84,617 8,352 2,264 -- 15,799 1,824 721 -- Growth and Income...... 66,002 27,030 28,147 339 11,636 4,260 4,626 58 Balanced Assets........ 126,247 19,976 16,182 816 22,920 3,374 2,737 131 International Equity... 71,687 23,316 24,851 9,732 12,573 3,937 4,370 1,677 Value.................. 136,378 51,165 37,382 69 23,031 8,239 5,996 6 Tax Managed Equity..... 24,120 9,004 29,707 -- 4,049 1,296 4,908 -- International Small-Cap 26,846 742 3,690 -- 4,923 151 667 --
At March 31, 2007, AIG SunAmerica, Inc. an affiliated company of the adviser, owned 26.5% of the total outstanding shares of International Equity. 77 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited) (continued) Note 5. Expense Reductions Through expense offset arrangements resulting from broker commission recapture, a portion of the expenses of the Funds set forth below have been reduced. For the period ended March 31, 2007, the amount of expense reductions received by each Fund, used to offset the Fund's non-affiliated expenses were as follows:
Total Expense Fund Reductions - ---- ------------- Blue Chip Growth.... $ 5,500 Growth Opportunities 13,795 New Century......... 8,635 Growth and Income... 7,805 Balanced Assets..... 7,481 Value............... 11,588 Tax Managed Equity.. 56,488
Note 6. Purchases and Sales of Investment Securities The cost of purchases and proceeds from sales and maturities of long-term investments during the period ended March 31, 2007, were as follows:
Blue Chip Growth New Growth and Balanced Growth Opportunities Century Income Assets Fund Fund Fund Fund Fund ------------- ------------- ------------ ------------- ------------ Purchases (excluding U.S. government securities)........... $33,155,972 $116,461,728 $143,869,063 $ 93,812,552 $112,429,393 Sales and maturities (excluding U.S. government securities) 41,896,751 120,333,327 153,109,111 107,493,655 125,410,610 Purchases of U.S. government securities.................... -- -- -- -- 17,596,535 Sales and maturities of U.S. government securities......... -- -- -- -- 21,308,548 International Tax International Equity Value Managed Small-Cap Fund Fund Equity Fund Fund ------------- ------------- ------------ ------------- Purchases (excluding U.S. government securities)........... $78,120,388 $164,423,598 $157,697,250 $ 12,374,728 Sales and maturities (excluding U.S. government securities) 84,099,238 171,849,204 165,977,804 10,670,971 Purchases of U.S. government securities.................... -- -- -- -- Sales and maturities of U.S. government securities......... -- -- -- --
78 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited) (continued) Note 7. Federal Income Taxes The amounts of aggregate unrealized gain (loss) and the cost of investment securities for federal income tax purposes, including short-term securities and repurchase agreements, were as follows:
Blue Chip Growth New Growth and Balanced Growth Opportunities Century Income Assets Fund Fund Fund Fund Fund ------------- ------------- -------------- ------------- ------------ Cost (tax basis).......................... $ 63,751,953 $ 67,124,714 $103,345,066 $103,855,562 $151,219,896 ============ ============ ============ ============ ============ Appreciation.............................. 5,794,667 3,498,210 3,810,528 8,627,406 10,021,217 Depreciation.............................. (1,493,436) (1,668,045) (2,070,610) (2,947,929) (2,251,978) ------------ ------------ ------------ ------------ ------------ Net unrealized appreciation (depreciation) $ 4,301,231 $ 1,830,165 $ 1,739,918 $ 5,679,477 $ 7,769,239 ============ ============ ============ ============ ============ International Tax International Equity Managed Equity Small-Cap Fund Value Fund Fund Fund ------------- ------------- -------------- ------------- Cost (tax basis).......................... $109,670,699 $209,607,568 $ 52,021,683 $ 28,216,607 ============ ============ ============ ============ Appreciation.............................. 15,726,100 21,070,019 4,294,548 4,817,580 Depreciation.............................. (1,552,689) (2,835,581) (1,467,861) (1,253,529) ------------ ------------ ------------ ------------ Net unrealized appreciation (depreciation) $ 14,173,411 $ 18,234,438 $ 2,826,687 $ 3,564,051 ============ ============ ============ ============
The following details the tax basis of distributions as well as the components of distributable earnings. The tax basis components of distributable earnings differ from the amounts reflected in the Statement of Assets and Liabilities due to temporary book/tax differences primarily arising from wash sales, post October losses and derivative transactions.
Distributable Earnings Tax Distributions --------------------------------------- ---------------------- For year ended September 30, 2006 --------------------------------------------------------------- Long-Term Gains/Capital Unrealized Long-Term Ordinary and Other Appreciation Ordinary Capital Fund Income Losses (Depreciation) Income Gains - ---- ---------- ------------- -------------- ----------- ---------- Blue Chip Growth....... $ -- $ (72,098,821) $ 2,538,330 $ -- $ -- Growth Opportunities... -- (204,700,551) 2,132,079 -- -- New Century............ -- (93,298,032) 1,964,061 -- -- Growth and Income...... -- (48,458,322) 5,471,682 101,366 -- Balanced Assets........ 101,844 (78,516,188) 6,416,109 2,815,576 -- International Equity... -- (19,024,974) 9,402,423 -- -- Value.................. 7,336,415 16,373,310 19,304,366 14,799,743 2,589,627 Tax Managed Equity..... -- (28,965,441) 2,609,225 53,956 -- International Small-Cap -- (1,191,758) (1,385,306) -- --
79 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited) (continued)
Tax Distributions ---------------------- For year ended September 30, 2006 ---------------------- Long-Term Ordinary Capital Fund Income Gains - ---- ----------- ---------- Blue Chip Growth....... $ -- $ -- Growth Opportunities... -- -- New Century............ -- -- Growth and Income...... 588,836 -- Balanced Assets........ 3,278,600 -- International Equity... -- -- Value.................. 16,513,550 7,934,524 Tax Managed Equity..... 69,828 -- International Small-Cap -- --
For the period ended September 30, 2006, the reclassifications arising from book/tax differences resulted in increases (decreases) that were primarily due to net investment losses, treatment of foreign currency, tax treatments of certain debt obligations, principle paydown adjustments and investments in real estate investment trusts to the components of net assets as follows:
Accumulated Accumulated Undistributed Net Undistributed Investment Net Realized Capital Fund Income (Loss) Gain (Loss) Paid-in - ---- ----------------- ------------- --------- Blue Chip Growth....... $533,652 $ -- $(533,652) Growth Opportunities... 791,849 -- (791,849) New Century............ 442,364 -- (442,364) Growth and Income...... 33,316 -- (33,316) Balanced Assets........ 277,380 (277,380) -- International Equity... 341,540 43,097 (384,637) Value.................. -- -- -- Tax Managed Equity..... 193,397 53,723 (247,120) International Small-Cap 4,779 68,624 (73,403)
For Federal income tax purposes, the Funds indicated below have capital loss carryforwards, which expire in the year indicated, as of September 30, 2006, which are available to offset future capital gains, if any:
Capital Loss Carryforward ------------------------------------------------------------------- ---------- Fund 2008 2009 2010 2011 2012 2013 2014 - ---- ----------- ---------- ------------ ----------- ---------- -------- ---------- Blue Chip Growth*...... $17,540,769 $ -- $ 12,497,108 $42,060,944 $ -- $ -- $ -- Growth Opportunities*.. 8,188,458 151,316 131,047,975 65,312,802 -- -- -- New Century............ -- -- 56,946,876 36,351,156 -- -- -- Growth and Income...... -- -- 12,105,429 30,630,503 5,722,390 -- -- Balanced Assets........ -- -- 18,956,073 55,685,563 3,874,552 -- -- International Equity*.. 15,141,007 -- 1,895,003 1,952,562 -- -- -- Value.................. -- -- -- -- -- -- -- Tax Managed Equity..... 2,013,208 6,189,990 15,675,665 4,260,050 594,906 177,899 -- International Small-Cap -- -- -- -- -- -- 1,191,758
- -------- * The capital loss carryforwards include realized capital losses from the acquisition of other funds. These losses may be subject to annual limitation imposed by the Internal Revenue Code. Therefore, it is possible that not all of these capital losses will be available for use. 80 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited) (continued) The Fund's indicated below, utilized capital loss carryforwards, which offset net taxable gains realized in the year ended September 30, 2006.
Capital Loss Carryforward Fund Utilized - ---- ------------ Blue Chip Growth....... $ 5,410,261 Growth Opportunities... 14,087,949 New Century............ 12,012,220 Growth and Income...... 13,974,770 Balanced Assets........ 5,268,029 International Equity... 22,425,530 Value.................. -- Tax Managed Equity..... 2,784,931 International Small-Cap --
Under the current law, capital losses related to securities and foreign currency realized after October 31 and prior to the Fund's fiscal year end may be deferred as occurring the first day of the following year. For the fiscal year ended September 30, 2006, the Funds elected to defer capital losses as follows:
Deferred Deferred Post- Post- October October Capital Currency Fund Loss Loss - ---- -------- -------- International Equity $-- $34,696 Tax Managed Equity.. -- 53,723
Note 8. Capital Share Transactions Transactions in capital shares of each class of each fund were as follows:
Blue Chip Growth Fund ------------------------------------------------------------------------------------------- Class A Class B --------------------------------------------- -------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2007 year ended March 31, 2007 year ended (unaudited) September 30, 2006 (unaudited) September 30, 2006 --------------------- ---------------------- --------------------- --------------------- Shares Amount Shares Amount Shares Amount Shares Amount -------- ----------- -------- ------------ -------- ----------- -------- ----------- Shares sold (1)(2)(3)(4) 109,201 $ 1,808,713 286,191 $ 4,393,307 34,646 $ 502,314 107,187 $ 1,479,959 Reinvested dividends.... -- -- -- -- -- -- -- -- Shares redeemed (1)(2).. (402,473) (6,589,630) (861,719) (13,297,858) (227,032) (3,314,740) (511,064) (7,023,069) -------- ----------- -------- ------------ -------- ----------- -------- ----------- Net increase (decrease). (293,272) $(4,780,917) (575,528) $ (8,904,551) (192,386) $(2,812,426) (403,877) $(5,543,110) ======== =========== ======== ============ ======== =========== ======== ===========
- -------- (1)For the six months ended March 31, 2007, includes automatic conversion of 77,268 shares of Class B shares in the amount of $1,140,726 to 68,453 shares of Class A shares in the amount of $1,140,726. (2)For the year ended September 30, 2006, includes automatic conversion of 140,669 shares of Class B shares in the amount of $1,929,214 to 125,387 shares of Class A shares in the amount of $1,929,214. (3)For the six months ended March 31, 2007, includes automatic conversion of 6,255 shares of Class C shares in the amount of $89,998 to 5,514 shares of Class A shares in the amount of $89,998. (4)For the year ended September 30, 2006, includes automatic conversion of 13,646 shares of Class C shares in the amount of $184,614 to 12,078 shares of Class A shares in the amount of $184,614. 81 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited) (continued)
Blue Chip Growth Fund ------------------------------------------------------------------------------------------- Class C Class I --------------------------------------------- -------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2007 year ended March 31, 2007 year ended (unaudited) September 30, 2006 (unaudited) September 30, 2006 --------------------- ---------------------- --------------------- --------------------- Shares Amount Shares Amount Shares Amount Shares Amount -------- ----------- -------- ------------ -------- ----------- -------- ----------- Shares sold............. 11,524 $ 166,513 42,327 $ 583,163 3,582 $ 59,118 10,100 $ 157,155 Reinvested dividends.... -- -- -- -- -- -- -- -- Shares redeemed (3)(4).. (58,510) (841,938) (105,697) (1,448,494) (8,534) (142,402) (64,498) (1,009,458) -------- ----------- -------- ------------ -------- ----------- -------- ----------- Net increase (decrease). (46,986) $ (675,425) (63,370) $ (865,331) (4,952) $ (83,284) (54,398) $ (852,303) ======== =========== ======== ============ ======== =========== ======== =========== Growth Opportunities Fund ------------------------------------------------------------------------------------------- Class A Class B --------------------------------------------- -------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2007 year ended March 31, 2007 year ended (unaudited) September 30, 2006 (unaudited) September 30, 2006 --------------------- ---------------------- --------------------- --------------------- Shares Amount Shares Amount Shares Amount Shares Amount -------- ----------- -------- ------------ -------- ----------- -------- ----------- Shares sold (5)(6)(7)(8) 186,004 $ 3,544,253 308,492 $ 5,164,212 33,699 $ 560,554 76,853 $ 1,138,934 Reinvested dividends.... -- -- -- -- -- -- -- -- Shares redeemed (5)(6).. (394,596) (7,406,291) (858,318) (14,201,135) (271,574) (4,547,784) (558,658) (8,294,844) -------- ----------- -------- ------------ -------- ----------- -------- ----------- Net increase (decrease). (208,592) $(3,862,038) (549,826) $ (9,036,923) (237,875) $(3,987,230) (481,805) $(7,155,910) ======== =========== ======== ============ ======== =========== ======== =========== Growth Opportunities Fund ------------------------------------------------------------------------------------------- Class C Class I --------------------------------------------- -------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2007 year ended March 31, 2007 year ended (unaudited) September 30, 2006 (unaudited) September 30, 2006 --------------------- ---------------------- --------------------- --------------------- Shares Amount Shares Amount Shares Amount Shares Amount -------- ----------- -------- ------------ -------- ----------- -------- ----------- Shares sold............. 51,952 $ 864,436 35,295 $ 519,835 574 $ 10,736 6,157 $ 104,273 Reinvested dividends.... -- -- -- -- -- -- -- -- Shares redeemed (7)(8).. (100,268) (1,658,653) (253,692) (3,730,537) (17,848) (339,721) (88,753) (1,461,430) -------- ----------- -------- ------------ -------- ----------- -------- ----------- Net increase (decrease). (48,316) $ (794,217) (218,397) $ (3,210,702) (17,274) $ (328,985) (82,596) $(1,357,157) ======== =========== ======== ============ ======== =========== ======== ===========
- -------- (3)For the six months ended March 31, 2007, includes automatic conversion of 6,255 shares of Class C shares in the amount of $89,998 to 5,514 shares of Class A shares in the amount of $89,998. (4)For the year ended September 30, 2006, includes automatic conversion of 13,646 shares of Class C shares in the amount of $184,614 to 12,078 shares of Class A shares in the amount of $184,614. (5)For the six months ended March 31, 2007, includes automatic conversion of 91,571 shares of Class B shares in the amount of $1,598,776 to 80,971 shares of Class A shares in the amount of $1,598,776. (6)For the year ended September 30, 2006, includes automatic conversion of 89,673 shares of Class B shares in the amount of $1,335,833 to 79,800 shares of Class A shares in the amount of $1,335,833. (7)For the six months ended March 31, 2007, includes automatic conversion of 6,990 shares of Class C shares in the amount of $116,962 to 6,176 shares of Class A shares in the amount of $116,962. (8)For the year ended September 30, 2006, includes automatic conversion of 14,961 shares of Class C shares in the amount of $217,480 to 13,265 shares of Class A shares in the amount of $217,480. 82 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited) (continued)
New Century Fund ---------------------------------------------------------------------------------------------- Class A Class B ------------------------------------------------ -------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2007 year ended March 31, 2007 year ended (unaudited) September 30, 2006 (unaudited) September 30, 2006 ---------------------- ------------------------ --------------------- --------------------- Shares Amount Shares Amount Shares Amount Shares Amount -------- ------------ ---------- ------------ -------- ----------- -------- ----------- Shares sold (1)(2)....... 129,554 $ 2,675,425 251,417 $ 4,619,033 17,920 $ 906,236 52,369 $ 849,797 Shares issued in merger + 456,997 9,556,448 -- -- 378,511 6,906,165 -- -- Reinvested dividends..... -- -- -- -- -- -- -- -- Shares redeemed (1)(2)... (426,663) (10,581,602) (1,032,640) (18,939,346) (128,890) (2,322,910) (241,463) (3,911,556) -------- ------------ ---------- ------------ -------- ----------- -------- ----------- Net increase (decrease).. 159,888 $ 1,650,271 (781,223) $(14,320,313) 267,541 $ 5,489,491 (189,094) $(3,061,759) ======== ============ ========== ============ ======== =========== ======== =========== New Century Fund ------------------------------------------------ Class C ------------------------------------------------ For the six months ended For the March 31, 2007 year ended (unaudited) September 30, 2006 ---------------------- ------------------------ Shares Amount Shares Amount -------- ------------ ---------- ------------ Shares sold.............. 5,605 $ 1,026,717 18,023 $ 288,668 Shares issued in merger + 263,342 4,832,027 -- -- Reinvested dividends..... -- -- -- -- Shares redeemed.......... (21,106) (380,033) (33,993) (549,978) -------- ------------ ---------- ------------ Net increase (decrease).. 247,841 $ 5,478,711 (15,970) $ (261,310) ======== ============ ========== ============
- -------- (1)For the six months ended March 31, 2007, includes automatic conversion of 46,608 shares of Class B shares in the amount of $857,572 to 40,712 shares of Class A shares in the amount of $857,572. (2)For the year ended September 30, 2006, includes automatic conversion of 94,711 shares of Class B shares in the amount of $1,533,530 to 83,219 shares of Class A shares in the amount of $1,533,530.
Growth and Income Fund ------------------------------------------------------------------------------------------------- Class A Class B ------------------------------------------------ ----------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2007 year ended March 31, 2007 year ended (unaudited) September 30, 2006 (unaudited) September 30, 2006 ---------------------- ------------------------ --------------------- ------------------------ Shares Amount Shares Amount Shares Amount Shares Amount -------- ------------ ---------- ------------ -------- ----------- ---------- ------------ Shares sold (1)(2)(3)(4) 577,330 $ 8,223,172 1,037,304 $ 13,187,347 55,562 $ 738,061 138,475 $ 1,670,363 Reinvested dividends.... -- -- 7,291 92,385 -- -- -- -- Shares redeemed (1)(2).. (774,012) (10,941,994) (1,733,300) (22,055,189) (526,907) (7,039,794) (1,498,815) (18,023,263) -------- ------------ ---------- ------------ -------- ----------- ---------- ------------ Net increase (decrease). (196,682) $ (2,718,822) (688,705) $ (8,775,457) (471,345) $(6,301,733) (1,360,340) $(16,352,900) ======== ============ ========== ============ ======== =========== ========== ============
- -------- (1)For the six months ended March 31, 2007, includes automatic conversion of 236,606 shares of Class B shares in the amount of $3,176,190 to 222,261 shares of Class A shares in the amount of $3,176,190. (2)For the year ended September 30, 2006, includes automatic conversion of 569,345 shares of Class B shares in the amount of $6,846,288 to 537,783 shares of Class A shares in the amount of $6,846,288. (3)For the six months ended March 31, 2007, includes automatic conversion of 42,592 shares of Class C shares in the amount of $570,768 to 39,976 shares of Class A shares in the amount of $570,768. (4)For the year ended September 30, 2006, includes automatic conversion of 257,374 shares of Class C shares in the amount of $3,090,506 to 244,371 shares of Class A shares in the amount of $3,090,506. + See Note 2. 83 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited) (continued)
Growth and Income Fund ------------------------------------------------------------------------------------------------- Class C Class I -------------------------------------------------- --------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2007 year ended March 31, 2007 year ended (unaudited) September 30, 2006 (unaudited) September 30, 2006 ------------------------ ------------------------ --------------------- ---------------------- Shares Amount Shares Amount Shares Amount Shares Amount ---------- ------------ ---------- ------------ -------- ----------- -------- ------------ Shares sold............. 47,026 $ 624,341 50,775 $ 607,720 2,447 $ 34,321 4,901 $ 62,493 Reinvested dividends.... -- -- -- -- -- -- 167 2,121 Shares redeemed (3)(4).. (326,761) (4,329,863) (1,122,450) (13,426,842) (2,130) (30,211) (44,644) (560,171) ---------- ------------ ---------- ------------ -------- ----------- -------- ------------ Net increase (decrease). (279,735) $ (3,705,522) (1,071,675) $(12,819,122) 317 $ 4,110 (39,576) $ (495,557) ========== ============ ========== ============ ======== =========== ======== ============ Balanced Assets Fund ------------------------------------------------------------------------------------------------- Class A Class B -------------------------------------------------- --------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2007 year ended March 31, 2007 year ended (unaudited) September 30, 2006 (unaudited) September 30, 2006 ------------------------ ------------------------ --------------------- ---------------------- Shares Amount Shares Amount Shares Amount Shares Amount ---------- ------------ ---------- ------------ -------- ----------- -------- ------------ Shares sold (5)(6)(7)(8) 296,016 $ 4,388,667 740,185 $ 10,265,397 40,807 $ 601,112 103,140 $ 1,423,304 Reinvested dividends.... 65,509 972,443 160,938 2,242,794 4,387 64,938 16,817 233,746 Shares redeemed (5)(6).. (1,008,707) (14,908,885) (2,374,864) (32,919,295) (291,172) (4,301,036) (876,652) (12,118,388) ---------- ------------ ---------- ------------ -------- ----------- -------- ------------ Net increase (decrease). (647,182) $ (9,547,775) (1,473,741) $(20,411,104) (245,978) $(3,634,986) (756,695) $(10,461,338) ========== ============ ========== ============ ======== =========== ======== ============ Balanced Assets Fund ------------------------------------------------------------------------------------------------- Class C Class I -------------------------------------------------- --------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2007 year ended March 31, 2007 year ended (unaudited) September 30, 2006 (unaudited) September 30, 2006 ------------------------ ------------------------ --------------------- ---------------------- Shares Amount Shares Amount Shares Amount Shares Amount ---------- ------------ ---------- ------------ -------- ----------- -------- ------------ Shares sold............. 25,929 $ 383,071 59,887 $ 822,679 1,519 $ 22,426 3,998 $ 55,500 Reinvested dividends.... 3,521 52,226 11,763 163,790 455 6,754 1,087 15,163 Shares redeemed (7)(8).. (107,253) (1,578,766) (417,497) (5,771,742) (7,100) (105,705) (6,630) (92,371) ---------- ------------ ---------- ------------ -------- ----------- -------- ------------ Net increase (decrease). (77,803) $ (1,143,469) (345,847) $ (4,785,273) (5,126) $ (76,525) (1,545) $ (21,708) ========== ============ ========== ============ ======== =========== ======== ============
- -------- (3)For the six months ended March 31, 2007, includes automatic conversion of 42,592 shares of Class C shares in the amount of $570,768 to 39,976 shares of Class A shares in the amount of $570,768. (4)For the year ended September 30, 2006, includes automatic conversion of 257,374 shares of Class C shares in the amount of $3,090,506 to 244,371 shares of Class A shares in the amount of $3,090,506. (5)For the six months ended March 31, 2007, includes automatic conversion of 130,843 shares of Class B shares in the amount of $1,944,393 to 130,325 shares of Class A shares in the amount of $1,944,394. (6)For the year ended September 30, 2006, includes automatic conversion of 289,554 shares of Class B shares in the amount of $4,003,645 to 288,356 shares of Class A shares in the amount of $4,003,645. (7)For the six months ended March 31, 2007, includes automatic conversion of 4,670 shares of Class C shares in the amount of $69,236 to 4,661 shares of Class A shares in the amount of $69,236. (8)For the year ended September 30, 2006, includes automatic conversion of 29,174 shares of Class C shares in the amount of $403,247 to 29,117 shares of Class A shares in the amount of $403,247. 84 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited) (continued)
International Equity Fund ------------------------------------------------------------------------------------------------- Class A Class B ------------------------------------------------ ----------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2007 year ended March 31, 2007 year ended (unaudited) September 30, 2006 (unaudited) September 30, 2006 ---------------------- ------------------------ --------------------- ------------------------ Shares Amount Shares Amount Shares Amount Shares Amount -------- ------------ ---------- ------------ -------- ----------- ---------- ------------ Shares sold (1)(2)(3)(4) 741,027 $ 12,584,317 1,792,340 $ 26,707,517 126,189 $ 1,991,870 422,480 $ 5,960,828 Reinvested dividends.... -- -- -- -- -- -- -- -- Shares redeemed (1)(2).. (785,283) (13,385,994) (1,204,676) (17,947,877) (279,897) (4,490,996) (580,769) (8,067,772) -------- ------------ ---------- ------------ -------- ----------- ---------- ------------ Net increase (decrease). (44,256) $ (801,677) 587,664 $ 8,759,640 (153,708) $(2,499,126) (158,289) $ (2,106,944) ======== ============ ========== ============ ======== =========== ========== ============ International Equity Fund ------------------------------------------------------------------------------------------------- Class C Class I ------------------------------------------------ ----------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2007 year ended March 31, 2007 year ended (unaudited) September 30, 2006 (unaudited) September 30, 2006 ---------------------- ------------------------ --------------------- ------------------------ Shares Amount Shares Amount Shares Amount Shares Amount -------- ------------ ---------- ------------ -------- ----------- ---------- ------------ Shares sold............. 145,957 $ 2,302,118 499,169 $ 6,840,120 96,093 $ 1,637,672 318,984 $ 4,744,366 Reinvested dividends.... -- -- -- -- -- -- -- -- Shares redeemed (3)(4).. (156,348) (2,474,433) (414,380) (5,730,063) (174,299) (2,919,118) (263,235) (4,005,306) -------- ------------ ---------- ------------ -------- ----------- ---------- ------------ Net increase (decrease). (10,391) $ (172,315) 84,789 $ 1,110,057 (78,206) $(1,281,446) 55,749 $ 739,060 ======== ============ ========== ============ ======== =========== ========== ============ Value Fund ------------------------------------------------------------------------------------------------- Class A Class B ------------------------------------------------ ----------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2007 year ended March 31, 2007 year ended (unaudited) September 30, 2006 (unaudited) September 30, 2006 ---------------------- ------------------------ --------------------- ------------------------ Shares Amount Shares Amount Shares Amount Shares Amount -------- ------------ ---------- ------------ -------- ----------- ---------- ------------ Shares sold (5)(6)(7)(8) 804,193 $ 14,728,117 1,120,447 $ 19,761,774 196,222 $ 3,440,016 249,089 $ 4,201,032 Reinvested dividends.... 704,045 12,539,044 470,358 8,066,638 284,619 4,810,045 205,229 3,363,708 Shares redeemed (5)(6).. (984,909) (17,955,346) (2,359,246) (41,370,087) (541,593) (9,383,889) (1,169,879) (19,607,142) -------- ------------ ---------- ------------ -------- ----------- ---------- ------------ Net increase (decrease). 523,329 $ 9,311,815 (768,441) $(13,541,675) (60,752) $(1,133,828) (715,561) $(12,042,402) ======== ============ ========== ============ ======== =========== ========== ============
- -------- (1)For the six months ended March 31, 2007, includes automatic conversion of 143,544 shares of Class B shares in the amount of $2,325,373 to 134,254 shares of Class A shares in the amount of $2,325,373. (2)For the year ended September 30, 2006, includes automatic conversion of 213,551 shares of Class B shares in the amount of $2,955,239 to 200,881 shares of Class A shares in the amount of $2,955,239. (3)For the six months ended March 31, 2007, includes automatic conversion of 12,650 shares of Class C shares in the amount of $201,241 to 11,826 shares of Class A shares in the amount of $201,241. (4)For the year ended September 30, 2006, includes automatic conversion of 62,893 shares of Class C shares in the amount of $842,371 to 59,154 shares of Class A shares in the amount of $842,371. (5)For the six months ended March 31, 2007, includes automatic conversion of 265,624 shares of Class B shares in the amount of $4,586,231 to 251,957 shares of Class A shares in the amount of $4,586,231. (6)For the year ended September 30, 2006, includes automatic conversion of 414,287 shares of Class B shares in the amount of $6,940,648 to 395,001 shares of Class A shares in the amount of $6,940,648. (7)For the six months ended March 31, 2007, includes automatic conversion of 2,702 shares of Class C shares in the amount of $46,921 to 2,562 shares of Class A shares in the amount of $46,921. (8)For the year ended September 30, 2006, includes automatic conversion of 3,114 shares of Class C shares in the amount of $38,164 to 3,019 shares of Class A shares in the amount of $38,164. 85 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited) (continued)
Value Fund ----------------------------------------------------------------------------------------- Class C Class I --------------------------------------------- ------------------------------------------ For the For the six months ended For the six months ended For the March 31, 2007 year ended March 31, 2007 year ended (unaudited) September 30, 2006 (unaudited) September 30, 2006 --------------------- ---------------------- ------------------- --------------------- Shares Amount Shares Amount Shares Amount Shares Amount -------- ----------- -------- ------------ --------- --------- --------- ----------- Shares sold............ 175,777 $ 3,096,778 220,948 $ 3,715,418 622 $ 11,687 42,694 $ 745,901 Reinvested dividends... 198,577 3,355,958 147,920 2,422,937 199 3,531 14,121 241,900 Shares redeemed (7)(8). (371,935) (6,413,864) (861,447) (14,432,704) (8,235) (159,637) (220,088) (3,918,465) -------- ----------- -------- ------------ ------ --------- -------- ----------- Net increase (decrease) 2,419 $ 38,872 (492,579) $ (8,294,349) (7,414) $(144,419) (163,273) $(2,930,664) ======== =========== ======== ============ ====== ========= ======== =========== Value Fund --------------------------------------------- Class Z --------------------------------------------- For the six months ended For the March 31, 2007 year ended (unaudited) September 30, 2006 --------------------- ---------------------- Shares Amount Shares Amount -------- ----------- -------- ------------ Shares sold............ 323,064 $ 6,211,730 327,401 $ 5,980,931 Reinvested dividends... 161,535 2,988,389 75,381 1,333,483 Shares redeemed........ (51,938) (963,860) (158,366) (2,868,969) -------- ----------- -------- ------------ Net increase (decrease) 432,661 $ 8,236,259 244,416 $ 4,445,445 ======== =========== ======== ============
- -------- (7)For the six months ended March 31, 2007, includes automatic conversion of 2,702 shares of Class C shares in the amount of $46,921 to 2,562 shares of Class A shares in the amount of $46,921. (8)For the year ended September 30, 2006, includes automatic conversion of 3,114 shares of Class C shares in the amount of $38,164 to 3,019 shares of Class A shares in the amount of $38,164.
Tax Managed Equity Fund ------------------------------------------------------------------------------------------- Class A Class B --------------------------------------------- -------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2007 year ended March 31, 2007 year ended (unaudited) September 30, 2006 (unaudited) September 30, 2006 --------------------- ---------------------- --------------------- --------------------- Shares Amount Shares Amount Shares Amount Shares Amount -------- ----------- --------- ----------- -------- ----------- -------- ----------- Shares sold (1)(2)..... 337,990 $ 4,766,622 1,402,693 $18,992,948 19,670 $ 266,976 78,337 $ 1,037,524 Reinvested dividends... -- -- 3,627 44,146 -- -- 109 1,276 Shares redeemed (1)(2). (520,540) (7,222,674) (635,487) (8,323,021) (281,533) (3,798,359) (666,910) (8,467,051) -------- ----------- --------- ----------- -------- ----------- -------- ----------- Net increase (decrease) (182,550) $(2,456,052) 770,833 $10,714,073 (261,863) $(3,531,383) (588,464) $(7,428,251) ======== =========== ========= =========== ======== =========== ======== =========== Tax Managed Equity Fund --------------------------------------------- Class C --------------------------------------------- For the six months ended For the March 31, 2007 year ended (unaudited) September 30, 2006 --------------------- ---------------------- Shares Amount Shares Amount -------- ----------- --------- ----------- Shares sold............ 84,948 $ 1,130,328 1,260,574 $16,302,699 Reinvested dividends... -- -- 105 1,242 Shares redeemed........ (307,902) (4,105,565) (349,343) (4,349,453) -------- ----------- --------- ----------- Net increase (decrease) (222,954) $(2,975,237) 911,336 $11,954,488 ======== =========== ========= ===========
- -------- (1)For the six months ended March 31, 2007, includes automatic conversion of 203,992 shares of Class B shares in the amount of $2,764,318 to 195,638 shares of Class A shares in the amount of $2,764,318. (2)For the year ended September 30, 2006, includes automatic conversion of 239,315 shares of Class B shares in the amount of $3,094,224 to 230,195 shares of Class A shares in the amount of $3,094,224. 86 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited) (continued)
International Small-Cap Fund --------------------------------------------------------------------------------- Class A Class B ------------------------------------------- ------------------------------------ For the For the For the For the six months ended period May 2, 2006@ six months ended period May 2, 2006@ March 31, 2007 through March 31, 2007 through (unaudited) September 30, 2006 (unaudited) September 30, 2006 ------------------- ---------------------- ---------------- ------------------ Shares Amount Shares Amount Shares Amount Shares Amount ------- ---------- --------- ----------- ------ -------- ------ -------- Shares sold............ 172,808 $2,128,106 1,979,431 $24,347,088 16,262 $203,764 53,478 $612,219 Reinvested dividends... -- -- -- -- -- -- -- -- Shares redeemed........ (44,063) (537,261) (28,793) (311,514) (2,247) (26,807) (557) (6,051) ------- ---------- --------- ----------- ------ -------- ------ -------- Net increase (decrease) 128,745 $1,590,846 1,950,638 $24,035,574 14,015 $176,957 52,921 $606,168 ======= ========== ========= =========== ====== ======== ====== ======== International Small-Cap Fund ------------------------------------------- Class C ------------------------------------------- For the For the six months ended period May 2, 2006@ March 31, 2007 through (unaudited) September 30, 2006 ------------------- ---------------------- Shares Amount Shares Amount ------- ---------- --------- ----------- Shares sold............ 30,533 $ 386,024 313,677 $ 3,605,692 Reinvested dividends... -- -- -- -- Shares redeemed........ (53,663) (627,738) (8,463) (93,043) ------- ---------- --------- ----------- Net increase (decrease) (23,130) $ (241,714) 305,214 $ 3,512,649 ======= ========== ========= ===========
- -------- @ Commencement of operations Note 9. Line of Credit The AIG 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 Bank and Trust Company's discretionary bid rate on the uncommitted line of credit. There is also a commitment fee of 10 basis points per annum on the daily unused portion of the committed line of credit which is included in other expenses on the Statement of Operations. Borrowings under the line of credit will commence when the respective Fund's cash shortfall exceeds $100,000. For the period ended March 31, 2007, the following Funds had borrowings:
Weighted Days Interest Average Debt Average Fund Outstanding Charges Utilized Interest - ---- ----------- -------- ------------ -------- Blue Chip Growth.... 1 $ 56 $ 346,258 5.81% Growth and Income... 6 710 731,043 5.82 Balanced Assets..... 8 244 190,065 5.77 International Equity 22 1,049 296,923 5.78 Tax Managed Equity.. 59 10,923 1,154,333 5.77
At March 31, 2007, Growth & Income Fund had a balance open under the line of credit of $648,482. Note 10. Interfund Lending Agreement Pursuant to exemptive relief granted by the SEC, the Funds are permitted to participate in an interfund lending program among investment companies advised by AIG SunAmerica or an affiliate. The interfund lending program allows the participating Funds to borrow money from and loan money to each other for temporary or emergency purposes. An interfund loan will be made under this facility only if the participating Funds receive a more favorable interest rate than would otherwise be available from a typical bank for a comparable transaction. For the period ended March 31, 2007, none of the Funds participated in this program. 87 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited) (continued) Note 11. Trustees Retirement Plan The Trustees of the SunAmerica Equity Funds have adopted the AIG SunAmerica Disinterested Trustees' and Directors' Retirement Plan (the "Retirement Plan") effective January 1, 1993, as amended December 9, 2006, for the unaffiliated Trustees. The Retirement Plan provides generally that an unaffiliated Trustee may become a participant ("Participant") in the Retirement Plan if he or she has at least 10 years of consecutive service as a Disinterested Trustee of any of the adopting AIG SunAmerica mutual funds (the "Adopting Funds") or has attained the age of 60 while a Trustee and completed five (5) consecutive years of service as a Trustee of any Adopting Fund (an "Eligible Trustee"). Pursuant to the Retirement Plan, an Eligible Trustee may receive benefits upon (i) his or her death or disability while a Trustee or (ii) the termination of his or her tenure as a Trustee, other than removal for cause from each of the Adopting Funds with respect to which he or she is an Eligible Trustee. As of each of the first 10 birthdays after becoming a Participant and on which he or she is both a Trustee and Participant, each Eligible Trustee will be credited with an amount equal to 50% of his or her regular fees (excluding committee fees) for services as a Disinterested Trustee of each Adopting Fund for the calendar year in which such birthday occurs. In addition, an amount equal to 8.50% of any amounts credited under the preceding statement during prior years is added to each Eligible Trustee's account. The rights of any Participant to benefits under the Retirement Plan shall be an unsecured claim against the assets of the Adopting Funds. An Eligible Trustee may receive any benefits payable under the Retirement Plan, at his or her election, either in one lump sum or in up to 15 annual installments. Any undistributed amounts shall continue to accrue interest at 8.50%. The following amounts for the Retirement Plan Liabilities are included in the Trustee fees and expenses payable line on the Statement of Assets and Liabilities and the Amounts for the Retirement Plan Expenses are included in the Trustees' fees and expenses line on the Statement of Operations.
Retirement Plan Retirement Plan Retirement Plan Liability Expense Payments --------------- --------------- --------------- Fund As of March 31, 2007 - ---- ----------------------------------------------- Blue Chip Growth.............. $28,846 $ 563 $1,090 Growth Opportunities.......... 24,601 555 807 New Century................... 45,418 669 1,582 Growth and Income............. 38,354 914 1,139 Balanced Assets............... 78,994 1,261 3,172 International Equity.......... 17,981 799 583 Value......................... 31,534 1,745 921 Tax Managed Equity............ 10,616 356 277 International Small-Cap Equity 91 91 --
Note 12. Investment Concentration Some of the Funds may invest internationally, including in "emerging market" countries. These securities may be denominated in currencies other than U.S. dollars. While investing internationally may reduce your risk by increasing the diversification of your investment, the value of your investment may be affected by fluctuating currency values, changing local and regional economic, political and social conditions, and greater market volatility. In addition, foreign securities may not be as liquid as domestic securities. These risks are primary risks of the International Equity Fund and International Small-Cap Fund. At March 31, 2007, the International Equity Fund and International Small-Cap Fund had approximately 23% and 27%, respectively, of their net assets invested in equity securities of companies domiciled in Japan. Note 13. Subsequent Event On May 15, 2007, the Tax Managed Equity Fund changed its name to the "SunAmerica Disciplined Growth Fund." The Fund seeks capital appreciation by active trading of equity securities that demonstrate the potential for capital appreciation, without regard to market capitalization. 88 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2007 -- (unaudited) (continued) Note 14. Other Information On February 9, 2006, AIG, the parent company and an affiliated person of the Adviser, the Distributor and AIGGIC, the subadviser to two Funds, (the "Subadviser"), announced that it had consented to the settlement of an injunctive action instituted by the SEC. In its complaint, the SEC alleged that AIG violated Section 17(a) of the Securities Act of 1933, as amended, Sections 10(b), 13(a), 13(b)(2) and 13(b)(5) of the Securities Exchange Act of 1934, as amended, and Rules 10b-5, 12b-20, 13a-1 and 13b2-1 promulgated thereunder, in connection with AIG's accounting and public reporting practices. The conduct described in the complaint did not involve any conduct of AIG or its subsidiaries related to their investment advisory or distribution activities with respect to the assets of the Funds. AIG, without admitting or denying the allegations in the complaint (except as to jurisdiction), consented to the entry of an injunction against further violations of the statutes referred to above. Absent exemptive relief granted by the SEC, the entry of such an injunction would prohibit AIG and its affiliated persons from, among other things, serving as an investment adviser of any registered investment management company or principal underwriter for any registered open-end investment company pursuant to Section 9(a) of the 1940 Act. Certain affiliated persons of AIG, including the Adviser, the Subadviser and the Distributor, received a temporary order from the SEC pursuant to Section 9(c) of the 1940 Act with respect to the entry of the injunction, granting exemptive relief from the provisions of Section 9(a) of the 1940 Act. The temporary order permits AIG and its affiliated persons, including AIG's investment management subsidiaries, to serve as investment adviser, sub-adviser, principal underwriter or sponsor of the Funds. The Adviser, the Subadviser and the Distributor expect that a permanent exemptive order will be granted, although there is no assurance the SEC will issue the order. Additionally, AIG and its subsidiaries reached a resolution of claims and matters under investigation with the United States Department of Justice ("DOJ"), the Attorney General of the State of New York ("NYAG") and the New York State Department of Insurance ("DOI"), regarding accounting, financial reporting and insurance brokerage practices of AIG and its subsidiaries, as well as claims relating to the underpayment of certain workers compensation premium taxes and other assessments. As a result of the settlements with the SEC, the DOJ, the NYAG and the DOI, AIG made payments totaling approximately $1.64 billion. In addition, as part of its settlements, AIG has agreed to retain for a period of three years an Independent Consultant who will conduct a review that will include the adequacy of AIG's internal controls over financial reporting and the remediation plan that AIG has implemented as a result of its own internal review. Subject to receipt of permanent relief, the Adviser, Distributor and the Subadviser believe that the settlements are not likely to have a material adverse effect on their ability to perform their respective investment advisory or distribution services relating to the Funds. 89 SunAmerica Equity Funds RESULTS OF SPECIAL MEETING OF SHAREHOLDERS -- March 31, 2007 -- (unaudited) On March 2, 2007, a Special Meeting of Shareholders was held to consider a proposal to approve an Agreement and Plan of Reorganization (the "Reorganization Agreement") pursuant to which the Biotech/Health Fund would transfer all of its assets to the New Century Fund, in exchange solely for the assumption of the Biotech/Health Fund's liabilities by the New Century Fund and Class A, Class B and Class C shares of the New Century Fund, which shares will be distributed by the Biotech/Health Fund to the holders of its shares in complete liquidation thereof. The voting results of this Special Meeting are as follows:
Shares Voted ------------ For.... 1,115,977 Against 66,086 Abstain 127,719
90 SunAmerica Equity Funds TRUSTEE AND OFFICER INFORMATION -- March 31, 2007 -- (unaudited) The following table contains information regarding the Trustees and Officers that oversee operations of the Funds and other investment companies within the Fund complex.
Term of Number of Position Office and Portfolios in Name, Held With Length of Fund Complex Address and SunAmerica Time Principal Occupations Overseen by Other Directorships Date of Birth* Complex Served(4) During Past 5 Years Trustee(1) Held by Trustee(2) - ---------------------- ---------- ------------ ----------------------------- ------------- ----------------------------- Disinterested Trustees Jeffrey S. Burum Trustee 2004-Present Founder and CEO of 42 None DOB: February 27, 1963 Sourthern California Development Corporation/ National Housing Development Corporation (1992 to present); Founder, Owner and Partner of Colonies Crossroads, Inc. (1999 to present); Owner and Managing Member of Diversified Pacific Development Group LLC (1998 to present). Dr. Judith L. Craven Trustee 2001-Present Retired. 89 Director, Belo Corp. (1992 to DOB: October 6, 1945 present); Director, Sysco Corp. (1996 to present); Director, Luby's, Inc. (1998 to present): Director, University of Texas Board of Regents (2001-present). William F. Devin Trustee 2001-Present Retired. 90 Director, Boston Options DOB: December 30, 1938 Exchange (1985-present). Samuel M. Eisenstat Chairman 1986-Present Attorney, solo practitioner. 51 Director, North European Oil DOB: March 7, 1940 of the Royalty Trust. Board Stephen J. Gutman Trustee 1986-Present Senior Associate, Corcoran 51 None DOB: May 10, 1943 Group (Real Estate) (2003 to present); President and Member of Managing Directors, Beau Brummell- Soho LLC (licensing of menswear specialty retailing and other activities) (June 1988 to present). William J. Shea Trustee 2004-Present Managing Partner, DLB 51 Director, Boston Private DOB: February 9, 1948 Capital, LLC (Private Equity) Financial Holdings (October (2006-Present) President and 2004 to present). CEO, Conseco, Inc. (Financial Services) (2001-2004); Chairman of the Board of Centennial Technologies, Inc. (1998 to 2001). Interested Trustee Peter A. Harbeck(3) Trustee 1995-Present President, CEO and Director, 98 None DOB: January 23, 1954 AIG SunAmerica. (August 1995 to present); Director, AIG SunAmerica Capital Services, Inc. ("AIG SACS") (August 1993 to present) President and CEO, AIG Advisor Group, Inc. (June 2004 to present).
91 SunAmerica Equity Funds TRUSTEE AND OFFICER INFORMATION -- March 31, 2007 -- (unaudited) (continued)
Number of Position Term of Portfolios in Name, Held With Office and Fund Complex Address and SunAmerica Length of Principal Occupations Overseen by Other Directorships Date of Birth* Complex Time Served(4) During Past 5 Years Trustee(1) Held by Trustee(2) - --------------------- ---------- -------------- ----------------------------- ------------- ------------------- Officers Vincent M. Marra President 2004-Present Senior Vice President, AIG N/A N/A DOB: May 28, 1950 SunAmerica (February 2003 to present); Chief Administrative Officer, Chief Operating Officer and Chief Financial Officer, Carret & Co. LLC (June 2002 to February 2003); President and Chief Operating Officer, Bowne Digital Solutions (1999 to May 2002). Donna M. Handel Treasurer 2002-Present Senior Vice President, AIG N/A N/A DOB: June 25, 1966 SunAmerica (December 2004 to present); Vice President, AIG SunAmerica (1997 to December 2004). Gregory N. Bressler Secretary September Senior Vice President and N/A N/A DOB: November 17, and Chief 2005 to General Counsel, AIG 1966 Legal Present SunAmerica (June 2005 to Officer present); Vice President and Director of U.S. Asset Management Compliance, Goldman Sachs Asset Management L.P. (June 2004 to June 2005); Deputy General Counsel, Credit Suisse Asset Management LLC (June 2002 to June 2004); Counsel, Credit Suisse Asset Management LLC (January 2000 to June 2002). James Nichols Vice 2006-present Director, President and CEO, N/A N/A DOB: April 7, 1966 President AIG SACS (July 2006 to present); Senior Vice President, AIG SACS (March 2002 to July 2006); Vice President, AIG SunAmerica (1995 to March 2002). Cynthia Gibbons Chief 2005-present Vice President, AIG N/A N/A DOB: December 6, 1967 Compliance SunAmerica (August 2002 to Officer present); Securities Compliance Manager, American General Investment Management, (June 2000 to August 2002).
92 SunAmerica Equity Funds TRUSTEE AND OFFICER INFORMATION -- March 31, 2007 -- (unaudited) (continued)
Number of Position Held Term of Portfolios in Name, With Office and Fund Complex Address and SunAmerica Length of Principal Occupations Overseen by Other Directorships Date of Birth* Complex Time Served(4) During Past 5 Years Trustee(1) Held by Trustee(2) - ---------------------- ------------- -------------- --------------------------------- ------------- ------------------- Nori L. Gabert Vice 2005-present Vice President and Deputy N/A N/A DOB: August 15, 1953 President General Counsel, AIG and SunAmerica (2001 to present); Assistant Vice President and Secretary, Secretary VALIC Company I and VALIC Company II (2000 to present); Formerly, Associate General Counsel, American General Corporation, (1997 to 2001). Timothy Pettee Vice August 2004- Chief Investment Officer, AIG N/A N/A DOB: April 7, 1958 President present SunAmerica (January 2003- present); Executive Vice President and Global Director of Research Schroder Investment Management (2000- 2002); Director of Research U.S. Trust Co. (1998-2000). Gregory R. Kingston Vice 2002-present Vice President, AIG N/A N/A DOB: January 18, 1966 President SunAmerica (2001-present); and Formerly, Vice President, Assistant American General Investment Treasurer Management, L.P. (1999-2001) Matthew J. Hackethal Anti- 2006-present Senior Compliance Manager, N/A N/A DOB: December 31, 1971 Money AIG SunAmerica (November Laundering 2006 to present); Vice President, Compliance Credits Suisse Asset Officer Management (May, 2001 to October 2006); CCO, Credit Suisse Alternative Funds (November 2005 to October 2006); CCO, Credit Suisse Asset Management Securities, Inc. (April 2004 to August 2005)
- -------- * The business address for each Trustee is the Harborside Financial Center, 3200 Plaza 5, Jersey City, NJ 07311-4992. (1) The "Fund Complex" means two or more registered investment companies that hold themselves out to investors as related companies for purposes of investment services or have a common investment advisor that is an affiliated person of the Advisor. The "Fund Complex" includes the SunAmerica Money Market Funds (2 funds), SunAmerica Equity Funds (9 funds), SunAmerica Income Funds (5 funds), SunAmerica Focused Series, Inc. (18 portfolios), SunAmerica Focused Alpha Growth Fund, Inc. (1 fund), SunAmerica Focused Alpha Large-Cap Fund, Inc. (1 fund), Anchor Series Trust (9 portfolios), SunAmerica Senior Floating Rate Fund, Inc. (1 fund), SunAmerica Series Trust (35 portfolios), VALIC Company I (32 portfolios), VALIC Company II (15 funds), Seasons Series Trust (24 portfolios) and AIG Series Trust (5 portfolios). AIG Strategic Hedge Fund of Funds (1 fund) and Brazos Mutual Funds (4 funds). (2) Directorships of companies required to report to the SEC under the Securities Exchange Act of 1934 (i.e. "public companies") or other investment companies registered under the 1940 Act. (3) Interested Trustee, as defined within the 1940 Act, because he is an officer and a director of the Adviser and a director of the principal underwriter of the Trust. (4) Trustees serve until their successors are duly elected and qualified, subject to the Trustee's retirement plan as discussed in Note 10 of the financial statements. Each officer will hold office for an indefinite term, until the date he or she resigns or retires or until his/her successor is duly elected and qualifies. Additional information concerning the Trustees is contained in the Statement of Additional Information which is available, without charge, by calling (800) 858-8850. 93 [LOGO] AIG Sun America Mutual Funds Harborside Financial Center 3200 Plaza 5 Jersey City, NJ 07311-4992 Trustees Shareholder Servicing This report is submitted Samuel M. Eisenstat Agent solely for the general Peter A. Harbeck AIG SunAmerica Fund information of Dr. Judith L. Craven Services, Inc. shareholders of the William F. Devin Harborside Financial Funds. Distribution of Stephen J. Gutman Center this report to persons Jeffrey S. Burum 3200 Plaza 5 other than shareholders William J. Shea Jersey City, NJ of the Funds is 07311-4992 authorized only in Officers con-nection with a Vincent M. Marra, Custodian and Transfer currently effective President and Chief Agent pro-spectus, setting Executive Officer State Street Bank and forth details of the Donna M. Handel, Trust Company Funds, which must precede Treasurer P.O. Box 5607 or accom-pany this report. Timothy P. Pettee, Vice Boston, MA 02110 President DELIVERY OF SHAREHOLDER James Nichols, Vice VOTING PROXIES ON TRUST DOCUMENTS President PORTFOLIO SECURITIES The Funds have adopted a Cynthia Gibbons, Vice A description of the policy that allows them President and Chief policies and procedures to send only one copy of Compliance Officer that the Trust uses to a Fund's prospectus, Gregory N. Bressler, determine how to vote proxy material, annual Chief Legal Officer proxies relating to report and semi-annual and Secretary securities held in a report (the "shareholder Gregory R. Kingston, Fund's portfolio which is documents") to Vice President and available in the Trust's shareholders with Assistant Treasurer Statement of Additional multiple accounts Corey A. Issing, Information, may be residing at the same Assistant Secretary obtained without charge "household." This Kathleen Fuentes, upon request, by calling practice is called Assistant Secretary (800) 858-8850. This householding and reduces Nori L. Gabert, Vice in-formation is also Fund expenses, which President and available from the EDGAR benefits you and other Assistant Secretary database on the U.S. shareholders. Unless the Matthew Hackethal, Securities and Ex-change Funds receive Anti-Money Laundering Commission's website at instructions to the Compliance Officer http://www.sec.gov. con-trary, you will only John E. Smith Jr., receive one copy of the Assistant Treasurer PROXY VOTING RECORD ON shareholder documents. SUNAMERICA EQUITY FUNDS The Funds will continue Investment Adviser Information regarding how to household the AIG SunAmerica Asset SunAmerica Equity Funds share-holder documents Management Corp. voted proxies relating to indefinitely, until we Harborside Financial securities held in are instructed otherwise. Center SunAmerica Equity Funds If you do not wish to 3200 Plaza 5 during the most recent participate in Jersey City, NJ twelve month period ended householding, please 07311-4992 June 30 is available, contact Shareholder once filed with the U.S. Services at (800) Distributor Securities and Exchange 858-8850 ext. 6010 or AIG SunAmerica Capital Commission, without send a written request Services, Inc. charge, upon request, by with your name, the name Harborside Financial calling (800) 858-8850 or of your fund(s) and your Center on the U.S. Securities account number(s) to AIG 3200 Plaza 5 and Exchange Commission's SunAmerica Mutual Funds Jersey City, NJ website at c/o BFDS, P.O. Box 07311-4992 http://www.sec.gov. 219186, Kansas City MO, 64121-9186. We will DISCLOSURE OF QUARTERLY resume individual PORTFOLIO HOLDINGS mailings for your account The Trust is required to within thirty (30) days file its complete of receipt of your schedule of portfolio request. holdings with the U.S. Securities and Exchange The accompanying report Commission for its first has not been audited by and third fiscal quarters independent accountants on Form N-Q. The Trust's and accordingly no Forms N-Q are available opinion has been on the U.S. Securities expressed thereon. and Exchange Commission's website at http://www.sec.gov. You can also review and obtain copies of the Forms N-Q at the U.S. Securities and Exchange Com-mission's Public Reference Room in Wash-ington, DC (information on the operation of Public Reference Room may be obtained by calling 1-800-SEC-0330).
94 [LOGO] AIG Sun America Mutual Funds Distributed by: AIG SunAmerica Capital Services, Inc. Harborside Financial Center 3200 Plaza 5 Jersey City, NJ 07311-4992 Investors should carefully consider the investment objectives, risks, charges and expenses of any mutual fund before investing. This and other important information is contained in the prospectus, which can be obtained from your financial adviser or from the AIG SunAmerica Sales Desk at 800-858-8850, ext. 6003. Read the prospectus carefully before investing. www.sunamericafunds.com EQSAN-3/07 Item 2. Code of Ethics Not applicable. Item 3. Audit Committee Financial Expert. Not applicable. Item 4. Principal Accountant Fees and Services. Not applicable. Item 5. Audit Committee of Listed Registrants. Not applicable. Item 6. Schedule of Investments. Included in Item 1 to the Form Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable. Item 8. Portfolio Managers of Closed-End Management Investment Companies. Not applicable. Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. Not applicable. Item 10. Submission of Matters to a Vote of Security Holders. There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that were implemented after the Registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 299.407) (as required by 22(b)(15)) of Schedule 14A (17 CFR 240.14a- 101), or this Item 10. Item 11. Controls and Procedures. (a) An evaluation was performed within 90 days of the filing of this report, under the supervision and with the participation of the registrant's management, including the President and Treasurer, of the effectiveness of the design and operation of the registrant's disclosure controls and procedures as defined under Rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270. 30a-3(c)). Based on that evaluation, the registrant's management, including the President and Treasurer, concluded that the registrant's disclosure controls and procedures are effective. (b) There was no change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d))) that occurred during the last fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal contro1 over financial reporting. Item 12. Exhibits. (a) (1) Not applicable. (2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT. (3) Not applicable. (b) Certification pursuant to Rule 30a-2(b)under the Investment Company Act of 1940 (17 CFR 270. 30a-2(a)) and Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.906.CERT. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SunAmerica Equity Funds By: /s/ Vincent M. Marra ------------------- Vincent M. Marra President Date: June 8, 2007 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/ Vincent M. Marra ------------------- Vincent M. Marra President Date: June 8, 2007 By: /s/ Donna M. Handel ------------------- Donna M. Handel Treasurer Date: June 8, 2007 EX-99.CERT 2 dex99cert.txt CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT Exhibit 99. CERT CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT I, Vincent M. Marra, certify that: 1. I have reviewed this report on Form N-CSR of SunAmerica Equity Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the most recent fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: May 21, 2007 /s/ Vincent M. Marra ------------------- Vincent M. Marra President CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT I, Donna M. Handel, certify that: 1. I have reviewed this report on Form N-CSR of SunAmerica Equity Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the most recent fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: May 21, 2007 /s/ Donna M. Handel ------------------- Donna M. Handel Treasurer EX-99.906CERT 3 dex99906cert.txt CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT Exhibit 99.906.CERT CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT Vincent M. Marra, President, and Donna M. Handel, Treasurer of SunAmerica Equity Funds (the "Registrant"), each certify to the best of his or her knowledge that: 1. The attached Form N-CSR report of the Registrant fully complies with the requirements of Sections 13(a) and 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in such N-CSR report fairly represents, in all material respects, the financial conditions and results of operations of the Registrant as of, and for, the periods presented in the report. Dated: May 21, 2007 /s/ Vincent M. Marra --------------- Vincent M. Marra President /s/ Donna M. Handel --------------- Donna M. Handel Treasurer -----END PRIVACY-ENHANCED MESSAGE-----