-----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, UjSwLCf3Rr2zquXZ1jfI8GVMbjd07ZYE7Zvk4AtljhiWB22TlJxrRTPTSOwDq6ce NLt2lOG7FQcWIMFDeqDGNg== 0001193125-10-134532.txt : 20100608 0001193125-10-134532.hdr.sgml : 20100608 20100608105742 ACCESSION NUMBER: 0001193125-10-134532 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20100331 FILED AS OF DATE: 20100608 DATE AS OF CHANGE: 20100608 EFFECTIVENESS DATE: 20100608 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: 10883455 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 S000007629 International Equity C000020811 Class A SIEAX C000020812 Class B SSIBX C000020813 Class C SIETX C000020814 Class I NAOIX 0000799084 S000007630 SunAmerica Value Fund C000020815 Class A SSVAX C000020816 Class B SSVBX C000020817 Class C SVPCX C000020818 Class Z C000020819 Class I NMVIX 0000799084 S000012533 SunAmerica International Small-Cap Fund C000034072 Class A SAESX 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) John T. Genoy Senior Vice President SunAmerica Asset Management Corp. Harborside Financial Center, 3200 Plaza 5 Jersey City, NJ 07311 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (201) 324-6414 ----------------------------- Date of fiscal year end: September 30 -------------------------- Date of reporting period: March 31, 2010 ------------------------- Item 1. Reports to Stockholders [PHOTO] SEMI-ANNUAL REPORT 2010 SUNAMERICA Equity Funds [LOGO] Sun America Mutual Funds MARCH 31, 2010 SEMI-ANNUAL REPORT SUNAMERICA EQUITY FUNDS SUNAMERICA INTERNATIONAL EQUITY FUND (SIEAX) SUNAMERICA VALUE FUND (SSVAX) SUNAMERICA INTERNATIONAL SMALL-CAP FUND (SAESX) TABLE OF CONTENTS SHAREHOLDER LETTER...................... 2 EXPENSE EXAMPLE......................... 3 STATEMENT OF ASSETS AND LIABILITIES..... 5 STATEMENT OF OPERATIONS................. 7 STATEMENT OF CHANGES IN NET ASSETS...... 8 FINANCIAL HIGHLIGHTS.................... 9 PORTFOLIO OF INVESTMENTS................ 12 NOTES TO FINANCIAL STATEMENTS........... 23 RESULTS OF SPECIAL SHAREHOLDER MEETINGS. 37 APPROVAL OF ADVISORY AGREEMENTS......... 38
SHAREHOLDER LETTER -- (UNAUDITED) Dear Shareholder, Enclosed is the semi-annual report for the SunAmerica Equity Funds for the six-month period ended March 31, 2010. The semi-annual period was a strong one for the equity markets as low interest rates and solid corporate earnings helped to fuel the equity markets. While the Standard & Poor's ("S&P") 500(R) Index* returned 11.75% for the six-month period, performance of small-cap indices was even stronger. The Russell 2000 Value Index* returned 14.01% while the Russell 2000 Growth Index* returned 12.07% for the same period. International markets lagged the U.S. during this period with the MSCI EAFE Index* delivering a 3.06% return. Solid performance in the equity markets has finally calmed investors somewhat as the financial markets have shown signs of stabilization. Nevertheless, there are weighty issues facing our economy which remain lurking over the equity markets. How and when will the U.S. government remove the financial backstop it provided to the economy? When will the Federal Reserve move to increase interest rates? Can the U.S. economy generate sufficient jobs to reduce unemployment? How will we deal with the growing budget deficit? The future of the equity markets will become clearer as these questions are addressed. Be sure to consult with your financial advisor when determining how to best position your portfolio to fit with your individual requirements. We encourage you to utilize our website, www.sunamericafunds.com, for ongoing updates throughout the year. Thank you for your investment in the SunAmerica Equity Funds. We remain focused on managing your assets and continue to work diligently to help grow your capital as is consistent with each Fund's individual objective. Sincerely, THE SUNAMERICA EQUITY FUNDS INVESTMENT PROFESSIONALS Steve Neimeth Ben Barrett Robin Thorn Andy Sheridan Mike Beaulieu Chantal Brennan Brendan Voege Karen Forte Kara Murphy Sarah Kallok Jay Merchant
- -------- Past performance is no guarantee of future results. * The S&P 500 INDEX is Standard & Poor's 500 Composite Stock Price Index, a widely recognized, unmanaged index of common stock prices. The RUSSELL 2000 VALUE INDEX measures the performance of those Russell 2000 Index companies with lower price-to-book ratios and lower forecasted growth values. The RUSSELL 2000 GROWTH INDEX measures the performance of those Russell 2000 Index companies with higher price-to-book ratios and higher forecasted growth values. (The Russell 2000 Index consists of the smallest 2,000 of the largest 3,000 U.S. companies.) The Morgan Stanley Capital International Europe, Australasia, and the Far East (MSCI EAFE) INDEX is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the US & Canada. Indices are not managed and an investor cannot invest directly into an index. 2 SUNAMERICA EQUITY FUNDS EXPENSE EXAMPLE -- MARCH 31, 2010 -- (UNAUDITED) DISCLOSURE OF PORTFOLIO EXPENSES IN SHAREHOLDER REPORTS As a shareholder of a fund (each, a "Fund" and collectively, the "Funds") in the SunAmerica Equity Funds (the "Trust"), you may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges, redemption fees (applicable to Class A shares of SunAmerica International Equity Fund and SunAmerica 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, 2009 and held until March 31, 2010. 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, 2010" 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, 2010" 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, 2010" column does not include administrative fees that may apply to qualified retirement plan accounts. See the Funds' prospectus, your retirement plan document and/or materials from your financial adviser, for a full description of these fees. Had these fees been included, the "Expenses Paid During the Six Months Ended March 31, 2010" 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, 2010" 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, 2010" column does not include administrative fees that may apply to qualified retirement plan accounts. See the Funds' prospectus, your retirement plan document and/or materials from your financial adviser, for a full description of these fees. Had these fees been included, the "Expenses Paid During the Six Months Ended March 31, 2010" column would have been higher and the "Ending Account Value" would have been lower. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, including sales charges on purchase payments, contingent deferred sales charges, redemption fees (applicable to Class A shares of SunAmerica International Equity Fund and SunAmerica International Small-Cap Fund only); small account fees and administrative fees, if applicable to your account. Please refer to the Fund's prospectus, your retirement plan document and/or materials from your financial adviser, for more information. Therefore, the "Hypothetical" example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs and other fees were included, your costs would have been higher. 3 SUNAMERICA EQUITY FUNDS EXPENSE EXAMPLE -- MARCH 31, 2010 -- (UNAUDITED) (CONTINUED)
ACTUAL HYPOTHETICAL ----------------------------------------- ----------------------------------------- ENDING ACCOUNT ENDING ACCOUNT EXPENSE PAID VALUE USING EXPENSE PAID VALUE USING DURING THE A HYPOTHETICAL DURING THE EXPENSE BEGINNING ACTUAL SIX MONTHS BEGINNING 5% ASSUMED SIX MONTHS RATIO ACCOUNT VALUE RETURN AT ENDED ACCOUNT VALUE RETURN AT ENDED AS OF AT OCTOBER 1, MARCH 31, MARCH 31, AT OCTOBER 1, MARCH 31, MARCH 31, MARCH 31, FUND 2009 2010 2010 2009 2010 2010 2010* - ---- ------------- -------------- ------------ ------------- -------------- ------------ --------- INTERNATIONAL EQUITY FUND Class A..................... $1,000.00 $1,061.79 $ 9.51 $1,000.00 $1,015.71 $ 9.30 1.85% Class B#.................... $1,000.00 $1,057.84 $13.08 $1,000.00 $1,012.22 $12.79 2.55% Class C# ................... $1,000.00 $1,057.94 $13.08 $1,000.00 $1,012.22 $12.79 2.55% Class I#.................... $1,000.00 $1,061.63 $ 9.25 $1,000.00 $1,015.96 $ 9.05 1.80% VALUE FUND#@ Class A..................... $1,000.00 $1,076.71 $ 8.44 $1,000.00 $1,016.80 $ 8.20 1.63% Class B..................... $1,000.00 $1,072.97 $11.78 $1,000.00 $1,013.56 $11.45 2.28% Class C .................... $1,000.00 $1,074.03 $11.79 $1,000.00 $1,013.56 $11.45 2.28% Class Z..................... $1,000.00 $1,079.21 $ 5.49 $1,000.00 $1,019.65 $ 5.34 1.06% INTERNATIONAL SMALL-CAP FUND# Class A..................... $1,000.00 $1,045.67 $ 9.69 $1,000.00 $1,015.46 $ 9.55 1.90% Class B..................... $1,000.00 $1,042.37 $12.98 $1,000.00 $1,012.22 $12.79 2.55% Class C .................... $1,000.00 $1,042.39 $12.98 $1,000.00 $1,012.22 $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, your retirement plan document and/or materials from your financial advisor. # During the stated period, the investment advisor either waived a portion of or all of the fees and assumed a portion of or all expenses for the Funds or through recoupment provisions, recovered a portion of or all fees and expenses waived or reimbursed in the previous two fiscal years. As a result, if these fees and expenses had not been waived or assumed, the "Actual/Hypothetical Ending Account Value" would have been lower and the "Actual/Hypothetical Expenses Paid During the Six Months Ended March 31, 2010" and the "Expense Ratios" would have been higher. If these fees and expenses had not been recouped, the "Actual/Hypothetical Ending Account Value" would have been higher and the "Actual/Hypothetical Expenses Paid During the Six Months Ended March 31, 2010" 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:
ACTUAL HYPOTHETICAL ----------------------------------------- ----------------------------------------- ENDING ACCOUNT ENDING ACCOUNT EXPENSE PAID VALUE USING EXPENSE PAID VALUE USING DURING THE A HYPOTHETICAL DURING THE EXPENSE BEGINNING ACTUAL SIX MONTHS BEGINNING 5% ASSUMED SIX MONTHS RATIO ACCOUNT VALUE RETURN AT ENDED ACCOUNT VALUE RETURN AT ENDED AS OF AT OCTOBER 1, MARCH 31 MARCH 31 AT OCTOBER 1, MARCH 31, MARCH 31 MARCH 31 FUND 2009 2010 2010 2009 2010 2010 2010* - ---- ------------- -------------- ------------ ------------- -------------- ------------ -------- VALUE FUND# Class A... $1,000.00 $1,076.71 $ 8.39 $1,000.00 $1,016.85 $ 8.15 1.62% Class B... $1,000.00 $1,072.97 $11.73 $1,000.00 $1,013.61 $11.40 2.27% Class C .. $1,000.00 $1,074.03 $11.74 $1,000.00 $1,013.61 $11.40 2.27% Class Z... $1,000.00 $1,079.21 $ 5.44 $1,000.00 $1,019.70 $ 5.29 1.05%
4 SUNAMERICA EQUITY FUNDS STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2010 -- (UNAUDITED)
INTERNATIONAL INTERNATIONAL EQUITY FUND VALUE FUND SMALL-CAP FUND ------------- ------------ -------------- ASSETS: Investments at value (unaffiliated)*.... $ 150,301,789 $167,054,759 $65,822,861 Repurchase agreements (cost approximates value).................... 984,000 1,206,000 -- ------------- ------------ ----------- Total investments...................... 151,285,789 168,260,759 65,822,861 ------------- ------------ ----------- Cash.................................... 415 164 249 Foreign cash*........................... 2,141,739 -- 486,839 Receivable for: Fund shares sold....................... 51,985 12,760 4,953 Dividends and interest................. 593,745 237,573 234,707 Investments sold....................... 5,223,104 3,036,181 56,261 Prepaid expenses and other assets....... 6,326 19,993 5,759 Due from investment adviser for expense reimbursements/fee waivers............. -- 6,463 3,891 ------------- ------------ ----------- Total assets............................ 159,303,103 171,573,893 66,615,520 ------------- ------------ ----------- LIABILITIES: Payable for: Fund shares redeemed................... 239,300 250,802 78,925 Investments purchased.................. 4,362,953 -- 1,081,020 Investment advisory and management fees 129,647 107,648 63,380 Distribution and service maintenance fees................................. 64,366 66,094 19,873 Transfer agent fees and expenses....... 43,065 53,704 13,804 Trustees' fees and expenses............ 4,108 7,485 35 Other accrued expenses................. 178,704 121,584 69,349 Accrued foreign tax on capital gains... -- -- 19,224 Due to investment adviser for expense recoupment............................. 1,712 -- -- ------------- ------------ ----------- Total liabilities....................... 5,023,855 607,317 1,345,610 ------------- ------------ ----------- Net Assets.............................. $ 154,279,248 $170,966,576 $65,269,910 ============= ============ =========== NET ASSETS REPRESENTED BY: Shares of beneficial interest, $0.01 par value.............................. $ 128,404 $ 149,458 $ 77,498 Paid-in capital......................... 247,408,844 207,403,759 60,659,302 ------------- ------------ ----------- 247,537,248 207,553,217 60,736,800 Accumulated undistributed net investment income (loss)............... (1,484,302) 289,707 (1,958,546) Accumulated undistributed net realized gain (loss) on investments, futures contracts, options contracts, securities sold short, and foreign exchange transactions.................. (102,760,913) (49,649,112) (7,147,010) Unrealized appreciation (depreciation) on investments......................... 11,012,036 12,772,764 13,660,007 Unrealized foreign exchange gain (loss) on other assets and liabilities........ (24,821) -- (2,117) Accrued capital gains tax on unrealized appreciation (depreciation)............ -- -- (19,224) ------------- ------------ ----------- Net Assets.............................. $ 154,279,248 $170,966,576 $65,269,910 ============= ============ =========== * Cost Investments (unaffiliated)............. $ 139,289,753 $154,281,995 $52,162,854 ============= ============ =========== Foreign cash........................... $ 2,149,247 $ -- $ 480,739 ============= ============ ===========
See Notes to Financial Statements 5 SUNAMERICA EQUITY FUNDS STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2010 -- (UNAUDITED) (CONTINUED)
INTERNATIONAL INTERNATIONAL EQUITY FUND VALUE FUND SMALL-CAP FUND ------------- ------------ -------------- CLASS A (UNLIMITED SHARES AUTHORIZED): Net assets.............................. $115,092,135 $107,752,374 $64,208,739 Shares of beneficial interest issued and outstanding........................ 9,409,076 9,334,268 7,621,690 Net asset value and redemption price per share.............................. $ 12.23 $ 11.54 $ 8.42 Maximum sales charge (5.75% of offering price)................................. 0.75 0.70 0.51 ------------ ------------ ----------- Maximum offering price to public........ $ 12.98 $ 12.24 $ 8.93 ============ ============ =========== CLASS B (UNLIMITED SHARES AUTHORIZED): Net assets.............................. $ 11,286,093 $ 15,784,210 $ 317,437 Shares of beneficial interest issued and outstanding........................ 995,318 1,457,439 38,290 Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge).......................... $ 11.34 $ 10.83 $ 8.29 ============ ============ =========== CLASS C (UNLIMITED SHARES AUTHORIZED): Net assets.............................. $ 23,974,983 $ 24,835,612 $ 743,734 Shares of beneficial interest issued and outstanding........................ 2,117,363 2,293,637 89,780 Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge).......................... $ 11.32 $ 10.83 $ 8.28 ============ ============ =========== CLASS I (UNLIMITED SHARES AUTHORIZED): Net assets.............................. $ 3,926,037 $ -- $ -- Shares of beneficial interest issued and outstanding........................ 318,613 -- -- Net asset value, offering and redemption price per share............. $ 12.32 $ -- $ -- ============ ============ =========== CLASS Z (UNLIMITED SHARES AUTHORIZED): Net assets.............................. $ -- $ 22,594,380 $ -- Shares of beneficial interest issued and outstanding........................ -- 1,860,418 -- Net asset value, offering and redemption price per share............. $ -- $ 12.14 $ -- ============ ============ ===========
See Notes to Financial Statements 6 SUNAMERICA EQUITY FUNDS STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS ENDED MARCH 31, 2010 -- (UNAUDITED)
INTERNATIONAL INTERNATIONAL EQUITY FUND VALUE FUND SMALL-CAP FUND ------------- ----------- -------------- INVESTMENT INCOME: Dividends (unaffiliated)................ $ 765,280 $ 1,836,842 $ 413,782 Interest (unaffiliated)................. 90 219 82 ----------- ----------- ----------- Total investment income*.............. 765,370 1,837,061 413,864 ----------- ----------- ----------- EXPENSES: Investment advisory and management fees. 784,835 610,537 379,768 Distribution and service maintenance fees: Class A............................... 203,111 171,322 113,766 Class B............................... 61,244 79,624 1,581 Class C............................... 122,356 116,417 3,605 Service fees Class I+................... 5,230 4 -- Transfer agent fees and expenses: Class A............................... 139,648 128,366 72,762 Class B............................... 17,690 25,593 1,036 Class C............................... 31,294 30,486 1,363 Class I+.............................. 4,796 4 -- Registration fees: Class A............................... 8,826 6,800 6,892 Class B............................... 4,580 4,569 5,494 Class C............................... 6,034 5,096 5,500 Class I+.............................. 3,540 1,032 -- Class Z............................... -- 1,498 -- Custodian and accounting fees........... 93,687 29,668 65,309 Reports to shareholders................. 43,214 42,094 574 Audit and tax fees...................... 22,454 21,942 23,302 Legal fees.............................. 12,478 5,752 3,554 Trustees' fees and expenses............. 9,316 7,109 3,338 Interest expense........................ 258 -- 123 Other expenses.......................... 9,694 10,564 9,144 ----------- ----------- ----------- Total expenses before fee waivers, expense reimbursements, expense recoupments, custody credits and fees paid indirectly................. 1,584,285 1,298,477 697,111 Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4)..................... (5,080) 59,712 (66,297) Custody credits earned on cash balances............................. (7) (2) (3) Fees paid indirectly (Note 5)......... -- (7,488) -- ----------- ----------- ----------- Net expenses.......................... 1,579,198 1,350,699 630,811 ----------- ----------- ----------- Net investment income (loss)............. (813,828) 486,362 (216,947) ----------- ----------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES: Net realized gain (loss) on investments (unaffiliated).......................... 18,789,575 6,577,739 5,527,319 Net realized foreign exchange gain (loss) on other assets and liabilities.. (379,738) -- (91,684) ----------- ----------- ----------- Net realized gain (loss) on investments and foreign currencies.................. 18,409,837 6,577,739 5,435,635 ----------- ----------- ----------- Change in unrealized appreciation (depreciation) on investments (unaffiliated).......................... (8,226,025) 4,087,613 (2,117,317) Change in unrealized foreign exchange gain (loss) on other assets and liabilities............................. (43,149) -- (9,028) Change in accrued capital gains tax on unrealized appreciation (depreciation).. 29,518 -- (8,092) ----------- ----------- ----------- Net unrealized gain (loss) on investments and foreign currencies...... (8,239,656) 4,087,613 (2,134,437) ----------- ----------- ----------- Net realized and unrealized gain (loss) on investments and foreign currencies... 10,170,181 10,665,352 3,301,198 ----------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............... $ 9,356,353 $11,151,714 $ 3,084,251 =========== =========== =========== - -------- *Net of foreign withholding taxes on interest and dividends of............... $ 88,798 $ -- $ 25,881 =========== =========== ===========
+ See Note 1 See Notes to Financial Statements 7 SUNAMERICA EQUITY FUNDS STATEMENT OF CHANGES IN NET ASSETS
INTERNATIONAL EQUITY FUND VALUE FUND INTERNATIONAL SMALL-CAP FUND --------------------------- --------------------------- --------------------------- FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED MARCH 31, 2010 SEPTEMBER 30, MARCH 31, 2010 SEPTEMBER 30, MARCH 31, 2010 SEPTEMBER 30, (UNAUDITED) 2009 (UNAUDITED) 2009 (UNAUDITED) 2009 -------------- ------------- -------------- ------------- -------------- ------------- INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income (loss)........... $ (813,828) $ 1,111,980 $ 486,362 $ 1,547,054 $ (216,947) $ 89,563 Net realized gain (loss) on investments and foreign currencies... 18,409,837 (44,108,289) 6,577,739 (36,881,515) 5,435,635 (7,642,648) Net unrealized gain (loss) on investments and foreign currencies... (8,239,656) 61,754,668 4,087,613 12,553,880 (2,134,437) 21,301,702 ------------ ------------ ------------ ------------ ----------- ----------- Net increase (decrease) in net assets resulting from operations.............. 9,356,353 18,758,359 11,151,714 (22,780,581) 3,084,251 13,748,617 ------------ ------------ ------------ ------------ ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income (Class A)........ (627,747) (716,458) (711,835) (1,308,678) (2,253,549) (11,219) Net investment income (Class B)........ -- (69,620) (28,234) (236,161) (8,543) -- Net investment income (Class C)........ -- (101,385) (42,742) (158,369) (18,855) -- Net investment income (Class I)........ (23,599) (100,260) -- (478) -- -- Net investment income (Class Z)........ -- -- (209,196) (588,253) -- -- 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)................................... -- -- -- -- -- -- Return of capital (Class A)............ -- (90,648) -- -- -- -- Return of capital (Class B)............ -- (19,887) -- -- -- -- Return of capital (Class C)............ -- (28,960) -- -- -- -- Return of capital (Class I)............ -- (11,005) -- -- -- -- Return of capital (Class Z)............ -- -- -- -- -- -- ------------ ------------ ------------ ------------ ----------- ----------- Total distributions to shareholders..... (651,346) (1,138,223) (992,007) (2,291,939) (2,280,947) (11,219) ------------ ------------ ------------ ------------ ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS (NOTE 8).................. (19,651,251) 72,757,838 66,942,705 (20,315,857) (5,061,804) 36,129,441 ------------ ------------ ------------ ------------ ----------- ----------- TOTAL INCREASE (DECREASE) IN NET ASSETS. (10,946,244) 90,377,974 77,102,412 (45,388,377) (4,258,500) 49,866,839 NET ASSETS: Beginning of period..................... 165,225,492 74,847,518 93,864,164 139,252,541 69,528,410 19,661,571 ------------ ------------ ------------ ------------ ----------- ----------- End of period+.......................... $154,279,248 $165,225,492 $170,966,576 $ 93,864,164 $65,269,910 $69,528,410 ============ ============ ============ ============ =========== =========== - -------- +Includes accumulated undistributed net investment income (loss)............... $ (1,484,302) $ (19,128) $ 289,707 $ 795,352 $(1,958,546) $ 539,348 ============ ============ ============ ============ =========== ===========
See Notes to Financial Statements 8 SUNAMERICA EQUITY FUNDS FINANCIAL HIGHLIGHTS
INTERNATIONAL EQUITY FUND ------------------------- NET GAIN (LOSS) ON NET INVESTMENTS DISTRI- NET ASSET NET (BOTH DIVIDENDS BUTIONS ASSET NET ASSETS VALUE INVESTMENT REALIZED TOTAL FROM FROM NET FROM DISTRIBUTIONS TOTAL VALUE END OF BEGINNING INCOME AND INVESTMENT INVESTMENT CAPITAL FROM RETURN DISTRI- END OF TOTAL PERIOD PERIOD ENDED OF PERIOD (LOSS)(1) UNREALIZED) OPERATIONS INCOME GAINS OF CAPITAL BUTIONS PERIOD RETURN(2) (000'S) - ------------ --------- ---------- ----------- ---------- ---------- ------- ------------- ------- ------ --------- ---------- CLASS A - - 09/30/05 $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 09/30/07 15.84 0.02 3.94 3.96 -- -- -- -- 19.80 25.00 75,408 09/30/08 19.80 0.17 (5.85) (5.68) -- (1.68) -- (1.68) 12.44 (31.34) 46,384 09/30/09 12.44 0.10 (0.71)(5) (0.61) (0.22) -- (0.03) (0.25) 11.58 (4.28) 122,343 03/31/10(6) 11.58 (0.05) 0.76 0.71 (0.06) -- -- (0.06) 12.23 6.18 115,092 CLASS B - - 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 09/30/07 14.85 (0.10) 3.69 3.59 -- -- -- -- 18.44 24.18 20,509 09/30/08 18.44 0.04 (5.36) (5.32) -- (1.68) -- (1.68) 11.44 (31.72) 9,279 09/30/09 11.44 0.03 (0.63)(5) (0.60) (0.09) -- (0.03) (0.12) 10.72 (4.85) 12,960 03/31/10(6) 10.72 (0.09) 0.71 0.62 -- -- -- -- 11.34 5.78 11,286 CLASS C - - 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 09/30/07 14.84 (0.09) 3.67 3.58 -- -- -- -- 18.42 24.12 26,683 09/30/08 18.42 0.05 (5.37) (5.32) -- (1.68) -- (1.68) 11.42 (31.77) 14,221 09/30/09 11.42 0.03 (0.63)(5) (0.60) (0.09) -- (0.03) (0.12) 10.70 (4.86) 25,123 03/31/10(6) 10.70 (0.09) 0.71 0.62 -- -- -- -- 11.32 5.79 23,975 CLASS I - - 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 09/30/07 15.96 0.04 3.96 4.00 -- -- -- -- 19.96 25.06 7,997 09/30/08 19.96 0.17 (5.89) (5.72) -- (1.68) -- (1.68) 12.56 (31.29) 4,964 09/30/09 12.56 0.09 (0.70)(5) (0.61) (0.25) -- (0.03) (0.28) 11.67 (4.12) 4,799 03/31/10(6) 11.67 (0.05) 0.77 0.72 (0.07) -- -- (0.07) 12.32 6.16 3,926
RATIO OF NET RATIO OF INVESTMENT EXPENSES INCOME (LOSS) TO AVERAGE TO AVERAGE PORTFOLIO NET ASSETS NET ASSETS TURNOVER - ---------- ------------- --------- 1.90%(3) 0.17%(3) 126% 1.90(3) (0.09)(3) 152 1.90(3) 0.13(3) 132 1.90(4) 0.98(4) 199 1.89(3)(4) 1.14(3)(4) 431 1.85(7) (0.87)(7) 140 2.55%(3) (0.51)%(3) 126% 2.55(3) (0.80)(3) 152 2.55(3) (0.59)(3) 132 2.55(3)(4) 0.25(3)(4) 199 2.55(3)(4) 0.36(3)(4) 431 2.55(3)(7) (1.59)(3)(7) 140 2.55%(3) (0.49)%(3) 126% 2.55(3) (0.76)(3) 152 2.55(3) (0.52)(3) 132 2.55(3)(4) 0.31(3)(4) 199 2.55(3)(4) 0.41(3)(4) 431 2.55(3)(7) (1.58)(3)(7) 140 1.80%(3) 0.43%(3) 126% 1.80(3) (0.01)(3) 152 1.80(3) 0.24(3) 132 1.80(3)(4) 1.01(3)(4) 199 1.80(3)(4) 0.95(3)(4) 431 1.80(3)(7) (0.83)(3)(7) 140
- -------- (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load. Total return does include expense reimbursements and expense reductions. (3)Net of the following expense reimbursements (recoupments) (based on average net assets) (See Note 4):
09/30/05 09/30/06 09/30/07 09/30/08 09/30/09 03/31/10(6)(7) -------- -------- -------- -------- -------- -------------- International Equity Class A............ 0.09% (0.04)% (0.05)% -- % 0.00% -- % International Equity Class B............ 0.17 0.02 0.04 0.06 0.22 0.06 International Equity Class C............ 0.14 (0.01) (0.00) 0.01 0.08 (0.00) International Equity Class I............ 0.14 0.00 0.04 0.09 0.27 0.09
(4)Includes expense reimbursements, but excludes expense reductions. If the expense reductions had been applied the ratio of expenses to average net assets would have been lower and the ratio of net investment income to average net assets would have been higher by:
09/30/08 09/30/09 -------- -------- International Equity Class A. 0.00% 0.00% International Equity Class B. 0.00 0.00 International Equity Class C. 0.00 0.00 International Equity Class I. 0.00 0.00
(5)Includes the effect of a merger. (6)Unaudited (7)Annualized See Notes to Financial Statements 9 SUNAMERICA EQUITY FUNDS FINANCIAL HIGHLIGHTS -- (CONTINUED)
VALUE FUND ---------- NET GAIN (LOSS) ON NET INVESTMENTS DISTRI- NET NET ASSET NET (BOTH DIVIDENDS BUTIONS ASSET ASSETS RATIO OF VALUE INVESTMENT REALIZED TOTAL FROM FROM NET FROM TOTAL VALUE END OF EXPENSES BEGINNING INCOME AND INVESTMENT INVESTMENT CAPITAL DISTRI- END OF TOTAL PERIOD TO AVERAGE PERIOD ENDED OF PERIOD (LOSS)(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) (000'S) NET ASSETS(3) - ------------ --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- -------- ------------- CLASS A - - 09/30/05 $17.69 $0.17 $ 2.22 $ 2.39 $(0.29) $(1.78) $(2.07) $18.01 14.06% $130,754 1.63% 09/30/06 18.01 0.15 1.89 2.04 (0.13) (1.17) (1.30) 18.75 12.02 121,729 1.63(4) 09/30/07 18.75 0.18 2.59 2.77 (0.16) (2.04) (2.20) 19.32 15.80 126,788 1.63(4) 09/30/08 19.32 0.19 (3.86) (3.67) (0.21) (2.70) (2.91) 12.74 (21.70) 77,903 1.63(4) 09/30/09 12.74 0.16 (1.88) (1.72) (0.23) -- (0.23) 10.79 (13.24) 52,112 1.63(4) 03/31/10(6) 10.79 0.08 0.74(5) 0.82 (0.07) -- (0.07) 11.54 7.67 107,752 1.63(4)(7) CLASS B - - 09/30/05 $16.96 $0.07 $ 2.11 $ 2.18 $(0.18) $(1.78) $(1.96) $17.18 13.34% $ 57,704 2.28% 09/30/06 17.18 0.04 1.80 1.84 (0.03) (1.17) (1.20) 17.82 11.29 47,100 2.28(4) 09/30/07 17.82 0.05 2.46 2.51 (0.05) (2.04) (2.09) 18.24 15.07 39,355 2.28(4) 09/30/08 18.24 0.09 (3.62) (3.53) (0.10) (2.70) (2.80) 11.91 (22.16) 21,304 2.28(4) 09/30/09 11.91 0.10 (1.76) (1.66) (0.14) -- (0.14) 10.11 (13.78) 11,213 2.28(4) 03/31/10(6) 10.11 0.00 0.74(5) 0.74 (0.02) -- (0.02) 10.83 7.30 15,784 2.28(4)(7) CLASS C - - 09/30/05 $16.96 $0.06 $ 2.12 $ 2.18 $(0.18) $(1.78) $(1.96) $17.18 13.34% $ 41,095 2.28% 09/30/06 17.18 0.04 1.80 1.84 (0.03) (1.17) (1.20) 17.82 11.30 33,849 2.28(4) 09/30/07 17.82 0.06 2.45 2.51 (0.05) (2.04) (2.09) 18.24 15.07 26,071 2.28(4) 09/30/08 18.24 0.09 (3.62) (3.53) (0.10) (2.70) (2.80) 11.91 (22.16) 14,194 2.28(4) 09/30/09 11.91 0.09 (1.76) (1.67) (0.14) -- (0.14) 10.10 (13.86) 9,386 2.28(4) 03/31/10(6) 10.10 0.01 0.74(5) 0.75 (0.02) -- (0.02) 10.83 7.40 24,836 2.28(4)(7) CLASS Z - - 09/30/05 $18.18 $0.27 $ 2.30 $ 2.57 $(0.39) $(1.78) $(2.17) $18.58 14.77% $ 17,307 1.06% 09/30/06 18.58 0.26 1.95 2.21 (0.19) (1.17) (1.36) 19.43 12.64 22,853 1.06(4) 09/30/07 19.43 0.29 2.70 2.99 (0.22) (2.04) (2.26) 20.16 16.48 34,644 1.06(4) 09/30/08 20.16 0.29 (4.05) (3.76) (0.28) (2.70) (2.98) 13.42 (21.28) 25,827 1.06(4) 09/30/09 13.42 0.22 (1.98) (1.76) (0.30) -- (0.30) 11.36 (12.75) 21,138 1.06(4) 03/31/10(6) 11.36 0.07 0.82(5) 0.89 (0.11) -- (0.11) 12.14 7.92 22,594 1.06(4)(7)
RATIO OF NET INVESTMENT INCOME (LOSS) TO AVERAGE PORTFOLIO NET ASSETS(3) TURNOVER - ------------- --------- 1.00% 82% 0.88(4) 140 0.97(4) 143 1.23(4) 207 1.68(4) 204 0.69(4)(7) 67 0.38% 82% 0.23(4) 140 0.31(4) 143 0.58(4) 207 1.06(4) 204 0.04(4)(7) 67 0.36% 82% 0.23(4) 140 0.32(4) 143 0.58(4) 207 1.02(4) 204 0.05(4)(7) 67 1.54% 82% 1.45(4) 140 1.54(4) 143 1.81(4) 207 2.20(4) 204 1.24(4)(7) 67
- -------- (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load. Total return does include expense reimbursements and expense reductions. (3)Net of the following expense reimbursements (recoupments) (based on average net assets) (See Note 4):
09/30/05 09/30/06 09/30/07 09/30/08 09/30/09 03/31/10(6)(7) -------- -------- -------- -------- -------- -------------- Value Class A........................... 0.08% 0.08% 0.07% 0.11% 0.21% (0.09)% Value Class B........................... 0.14 0.10 0.11 0.14 0.29 0.02 Value Class C........................... 0.08 0.08 0.09 0.14 0.28 (0.06) Value Class Z........................... 0.10 0.07 0.07 0.10 0.13 (0.11)
(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 09/30/07 09/30/08 09/30/09 03/31/10(6)(7) -------- -------- -------- -------- -------------- Value Class A........................... 0.01% 0.01% 0.03% 0.02% 0.01% Value Class B........................... 0.01 0.01 0.03 0.02 0.01 Value Class C........................... 0.01 0.01 0.03 0.02 0.01 Value Class Z........................... 0.01 0.01 0.03 0.02 0.01
(5)Includes the effect of a merger (See Note 2). (6)Unaudited (7)Annualized See Notes to Financial Statements 10 SUNAMERICA EQUITY FUNDS FINANCIAL HIGHLIGHTS -- (CONTINUED)
INTERNATIONAL SMALL-CAP FUND ---------------------------- NET GAIN (LOSS) ON NET INVESTMENTS DISTRI- NET ASSET NET (BOTH DIVIDENDS BUTIONS ASSET VALUE INVESTMENT REALIZED TOTAL FROM FROM NET FROM DISTRIBUTIONS TOTAL VALUE BEGINNING INCOME AND INVESTMENT INVESTMENT CAPITAL FROM RETURN DISTRI- END OF TOTAL PERIOD ENDED OF PERIOD (LOSS)(1) UNREALIZED) OPERATIONS INCOME GAINS OF CAPITAL BUTIONS PERIOD RETURN(2) - -------------------- --------- ---------- ----------- ---------- ---------- ------- ------------- ------- ------ --------- CLASS A 05/02/06-09/30/06(3) $12.50 $ 0.00 $(1.45) $(1.45) $ -- $ -- $ -- $ -- $11.05 (11.60)% 09/30/07 11.05 (0.04) 2.99 2.95 -- -- -- -- 14.00 26.70 09/30/08 14.00 (0.00) (5.52) (5.52) -- (0.13) (0.01) (0.14) 8.34 (39.79) 09/30/09 8.34 0.01 (0.01) 0.00 (0.00) -- -- (0.00) 8.34 0.02(6) 03/31/10(7) 8.34 (0.03) 0.40 0.37 (0.29) -- -- (0.29) 8.42 4.57 CLASS B 05/02/06-09/30/06(3) $12.50 $(0.04) $(1.44) $(1.48) $ -- $ -- $ -- $ -- $11.02 (11.84)% 09/30/07 11.02 (0.11) 2.97 2.86 -- -- -- -- 13.88 25.95 09/30/08 13.88 (0.08) (5.45) (5.53) -- (0.13) (0.01) (0.14) 8.21 (40.21) 09/30/09 8.21 (0.04) 0.00 (0.04) -- -- -- -- 8.17 (0.49)(6) 03/31/10(7) 8.17 (0.05) 0.39 0.34 (0.22) -- -- (0.22) 8.29 4.24 CLASS C 05/02/06-09/30/06(3) $12.50 $(0.04) $(1.44) $(1.48) $ -- $ -- $ -- $ -- $11.02 (11.84)% 09/30/07 11.02 (0.12) 2.98 2.86 -- -- -- -- 13.88 25.95 09/30/08 13.88 (0.09) (5.44) (5.53) -- (0.13) (0.01) (0.14) 8.21 (40.20) 09/30/09 8.21 (0.04) (0.01) (0.05) -- -- -- -- 8.16 (0.61)(6) 03/31/10(7) 8.16 (0.05) 0.39 0.34 (0.22) -- -- (0.22) 8.28 4.24
RATIO NET OF NET ASSETS RATIO OF INVESTMENT END OF EXPENSES INCOME (LOSS) PERIOD TO AVERAGE TO AVERAGE PORTFOLIO (000'S) NET ASSETS(5) NET ASSETS(5) TURNOVER - ------- ------------- ------------- --------- $21,557 1.90%(4) 0.08%(4) 55% 30,845 1.90 (0.30) 70 16,830 1.90 (0.04) 93 68,492 1.90 0.19 148 64,209 1.90(4) (0.65)(4) 47 $ 583 2.55%(4) (0.93)%(4) 55% 1,181 2.55 (0.89) 70 633 2.55 (0.68) 93 313 2.55 (0.53) 148 317 2.55(4) (1.29)(4) 47 $ 3,363 2.55%(4) (1.07)%(4) 55% 5,357 2.55 (0.94) 70 2,199 2.55 (0.78) 93 724 2.55 (0.58) 148 744 2.55(4) (1.27)(4) 47
- -------- (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) (See Note 4):
09/30/06(4) 09/30/07 09/30/08 09/30/09 03/31/10(4)(7) ----------- -------- -------- -------- -------------- International Small-Cap Class A......... 1.27% 0.45% 0.54% 0.31% 0.16% International Small-Cap Class B......... 12.63 2.10 1.53 4.07 4.05 International Small-Cap Class C......... 2.88 0.77 0.77 1.68 1.82
(6)The Fund's performance was increased by less than 0.01% from gains on disposal of investments in violation of investment restrictions. (7)Unaudited See Notes to Financial Statements 11 SUNAMERICA INTERNATIONAL EQUITY FUND PORTFOLIO PROFILE -- MARCH 31, 2010 -- (UNAUDITED) INDUSTRY ALLOCATION* Banks-Commercial....................... 10.9% Diversified Banking Institutions....... 8.8 Electronic Components-Misc............. 4.4 Oil Companies-Exploration & Production. 4.4 Cellular Telecom....................... 3.1 Chemicals-Diversified.................. 3.1 Index Fund............................. 3.1 Medical-Drugs.......................... 3.0 Distribution/Wholesale................. 2.9 Diversified Minerals................... 2.6 Agricultural Chemicals................. 2.5 Medical Products....................... 2.3 Oil Companies-Integrated............... 2.2 Insurance-Multi-line................... 2.2 Steel-Producers........................ 2.1 Cosmetics & Toiletries................. 2.0 Retail-Apparel/Shoe.................... 2.0 Building-Residential/Commercial........ 2.0 Beverages-Wine/Spirits................. 1.9 Food-Retail............................ 1.8 Oil-Field Services..................... 1.8 Building Products-Cement............... 1.8 Shipbuilding........................... 1.7 Diversified Manufacturing Operations... 1.6 Telecom Services....................... 1.6 Transport-Services..................... 1.6 Enterprise Software/Service............ 1.5 Industrial Gases....................... 1.5 Equity Fund-Emerging Market............ 1.4 Diversified Operations................. 1.3 Import/Export.......................... 1.1 Building Products-Air & Heating........ 1.0 Transport-Marine....................... 1.0 Auto-Cars/Light Trucks................. 1.0 Textile-Products....................... 1.0 Auto/Truck Parts & Equipment-Original.. 0.9 Computers-Memory Devices............... 0.9 Food-Dairy Products.................... 0.9 Internet Application Software.......... 0.8 Electronic Measurement Instruments..... 0.8 Semiconductor Equipment................ 0.8 Machinery-Farming...................... 0.8 Repurchase Agreement................... 0.7 Chemicals-Specialty.................... 0.6 Building Products-Doors & Windows...... 0.6 Coatings/Paint......................... 0.6 Metal Processors & Fabrication......... 0.6 Rubber/Plastic Products................ 0.5 Retail-Building Products............... 0.3 Insurance-Life/Health.................. 0.1 ---- 98.1% ====
COUNTRY ALLOCATION* Germany................................. 17.9% Japan................................... 16.5 United Kingdom.......................... 12.8 Australia............................... 6.1 United States........................... 5.9 Canada.................................. 5.7 France.................................. 4.9 Luxembourg.............................. 4.8 Switzerland............................. 4.5 Singapore............................... 3.6 Italy................................... 3.6 Brazil.................................. 3.0 Cayman Islands.......................... 1.7 Taiwan.................................. 1.5 Bermuda................................. 1.3 Russia.................................. 1.0 South Korea............................. 0.8 India................................... 0.7 Turkey.................................. 0.6 Hungary................................. 0.6 Ireland................................. 0.6 ---- 98.1% ====
- -------- *Calculated as a percentage of net assets 12 SUNAMERICA INTERNATIONAL EQUITY FUND PORTFOLIO OF INVESTMENTS -- MARCH 31, 2010 -- (UNAUDITED)
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) -------------------------------------------------------------------- COMMON STOCK -- 90.7% AUSTRALIA -- 6.1% Asciano Group+.............................. 1,376,190 $ 2,393,121 Australia and New Zealand Banking Group, Ltd........................................ 133,100 3,097,451 Incitec Pivot, Ltd.......................... 1,220,590 3,886,659 ----------- 9,377,231 ----------- BERMUDA -- 1.3% Li & Fung, Ltd.............................. 412,720 2,027,919 Peace Mark Holdings, Ltd.+(1)(2)............ 800,000 0 Peregrine Investments Holdings, Ltd.+(1)(2). 91,000 0 ----------- 2,027,919 ----------- BRAZIL -- 3.0% Itau Unibanco Holding SA ADR................ 37,790 831,002 MRV Engenharia e Participacoes SA........... 262,890 1,834,546 Vale SA ADR................................. 59,010 1,899,532 ----------- 4,565,080 ----------- CANADA -- 5.7% Talisman Energy, Inc........................ 188,250 3,219,517 Teck Resources, Ltd.+....................... 48,700 2,121,769 Toronto-Dominion Bank....................... 46,738 3,483,549 ----------- 8,824,835 ----------- CAYMAN ISLANDS -- 1.7% China Mengniu Dairy Co., Ltd.+.............. 444,650 1,385,907 Tencent Holdings, Ltd....................... 63,890 1,281,215 ----------- 2,667,122 ----------- FRANCE -- 4.1% BNP Paribas................................. 39,666 3,046,269 Natixis+.................................... 611,900 3,301,720 ----------- 6,347,989 ----------- GERMANY -- 15.6% Bayer AG.................................... 42,355 2,864,917 Deutsche Bank AG............................ 88,200 6,793,834 GEA Group AG................................ 89,077 2,064,552 HeidelbergCement AG......................... 49,651 2,769,625 Kloeckner & Co. AG+......................... 79,900 2,361,763 Linde AG.................................... 19,606 2,339,319 SAP AG...................................... 49,100 2,378,125 Siemens AG.................................. 24,564 2,460,103 ----------- 24,032,238 ----------- HUNGARY -- 0.6% OTP Bank PLC+............................... 27,340 956,185 ----------- INDIA -- 0.7% Dr. Reddy's Laboratories, Ltd. ADR.......... 36,190 1,021,644 ----------- IRELAND -- 0.6% Dragon Oil PLC+............................. 117,190 860,725 -----------
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) --------------------------------------------------------------- ITALY -- 3.6% Intesa Sanpaolo SpA+..................... 755,291 $ 2,813,020 Saipem SpA............................... 71,700 2,774,513 ----------- 5,587,533 ----------- JAPAN -- 16.5% Central Glass Co., Ltd................... 200,000 988,341 Daicel Chemical Industries, Ltd.......... 159,000 1,093,561 Kaneka Corp.............................. 132,000 855,621 Keyence Corp............................. 5,300 1,266,467 Kubota Corp.............................. 126,000 1,148,273 Kuraray Co., Ltd......................... 108,000 1,453,246 Kureha Corp.............................. 147,000 712,279 Mitsubishi UFJ Financial Group, Inc...... 78,600 411,959 Mitsui & Co., Ltd........................ 104,500 1,756,011 Mitsui O.S.K. Lines, Ltd................. 209,000 1,500,043 Nidec Corp............................... 17,400 1,864,884 Nippon Paint Co., Ltd.................... 147,000 962,285 Nissan Chemical Industries, Ltd.......... 79,000 1,105,273 Nissan Motor Co., Ltd.+.................. 173,100 1,483,079 NTT DoCoMo, Inc.......................... 332 505,688 Omron Corp............................... 59,200 1,374,094 Rinnai Corp.............................. 28,900 1,517,799 Sekisui Chemical Co., Ltd................ 182,000 1,234,228 Takata Corp.............................. 56,400 1,445,442 TDK Corp................................. 20,900 1,390,502 The Dai-ichi Life Insurance Co., Ltd.(1). 47 70,382 Tokyo Electron, Ltd...................... 18,800 1,246,764 ----------- 25,386,221 ----------- LUXEMBOURG -- 4.8% ArcelorMittal............................ 74,293 3,260,173 Oriflame Cosmetics SA SDR................ 50,500 3,147,245 Ternium SA ADR........................... 23,200 951,896 ----------- 7,359,314 ----------- RUSSIA -- 1.0% Sberbank................................. 533,310 1,562,598 ----------- SINGAPORE -- 3.6% DBS Group Holdings, Ltd.................. 302,900 3,096,229 Sembcorp Marine, Ltd..................... 846,404 2,535,068 ----------- 5,631,297 ----------- SOUTH KOREA -- 0.8% Samsung Electro-Mechanics Co., Ltd....... 12,823 1,303,323 ----------- SWITZERLAND -- 4.5% Novartis AG.............................. 67,058 3,621,920 Zurich Financial Services AG............. 12,937 3,316,456 ----------- 6,938,376 ----------- TAIWAN -- 1.5% Hon Hai Precision Industry Co., Ltd. GDR. 251,571 2,306,906 ----------- TURKEY -- 0.6% Turkiye Is Bankasi, Class C.............. 294,990 960,139 -----------
13 SUNAMERICA INTERNATIONAL EQUITY FUND PORTFOLIO OF INVESTMENTS -- MARCH 31, 2010 -- (UNAUDITED) (CONTINUED)
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) ------------------------------------------------------------------ COMMON STOCK (CONTINUED) UNITED KINGDOM -- 12.8% BG Group PLC............................. 193,700 $ 3,352,381 Cairn Energy PLC+........................ 425,385 2,691,824 Diageo PLC............................... 177,300 2,975,722 Kingfisher PLC........................... 144,432 469,912 Next PLC................................. 95,100 3,122,958 Vodafone Group PLC....................... 1,878,200 4,332,253 WM Morrison Supermarkets PLC............. 634,600 2,826,419 ------------ 19,771,469 ------------ UNITED STATES -- 1.6% Virgin Media, Inc........................ 141,200 2,437,112 ------------ TOTAL COMMON STOCK (cost $130,012,923)..................... 139,925,256 ------------ EXCHANGE-TRADED FUNDS -- 4.4% FRANCE -- 0.8% streetTRACKS MSCI Europe+................ 8,430 1,238,340 ------------ UNITED STATES -- 3.6% iShares MSCI Canada Index Fund........... 124,068 3,460,256 iShares MSCI Emerging Markets Index Fund. 50,580 2,130,430 ------------ 5,590,686 ------------ TOTAL EXCHANGE-TRADED FUNDS (cost $6,526,638)....................... 6,829,026 ------------
SHARES/ PRINCIPAL VALUE SECURITY DESCRIPTION AMOUNT (NOTE 3) ------------------------------------------------------------------------- PREFERRED STOCK -- 2.3% GERMANY -- 2.3% Fresenius SE (cost $2,750,192)............................... 46,986 $ 3,547,507 ------------ TOTAL LONG-TERM INVESTMENT SECURITIES (cost $139,289,753)............................. 150,301,789 ------------ REPURCHASE AGREEMENT -- 0.7% Agreement with State Street Bank and Trust Co., bearing interest at 0.00%, dated 03/31/10, to be repurchased 04/01/10 in the amount of $984,000 and collateralized by $985,000 of Federal Home Loan Bank Notes, bearing interest at 4.38% due 09/17/10 and having approximate value of $1,005,193 (cost $984,000)................................. $984,000 984,000 ------------ TOTAL INVESTMENTS -- (cost $140,273,753)(3).......................... 98.1% 151,285,789 Other assets less liabilities...................... 1.9 2,993,459 -------- ------------ NET ASSETS -- 100.0% $154,279,248 ======== ============
- -------- + Non-income producing security (1) Fair valued security. Securities are classified as Level 3 based on the securities valuation inputs; see Note 3. (2) Illiquid security. At March 31, 2010, the aggregate value of these securities was $0 representing 0.0% of net assets. (3) See Note 7 for cost of investments on a tax basis. ADR --American Depository Receipt GDR --Global Depository Receipt SDR --Swedish Depository Receipt The following is a summary of the inputs used to value the Fund's net assets as of March 31, 2010 (see Note 3):
LEVEL 1 -- UNADJUSTED LEVEL 2 -- OTHER LEVEL 3 -- SIGNIFICANT QUOTED PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS TOTAL --------------------- ----------------- ---------------------- ------------ Long-Term Investment Securities: Common Stock: Australia..................... $ 9,377,231 $ -- $ -- $ 9,377,231 Canada........................ 8,824,835 -- -- 8,824,835 Germany....................... 24,032,238 -- -- 24,032,238 Japan......................... 25,315,839 -- 70,382 25,386,221 United Kingdom................ 19,771,469 -- -- 19,771,469 Other Countries*.............. 52,533,262 -- 0 52,533,262 Exchange-Traded Funds.......... 6,829,026 -- -- 6,829,026 Preferred Stock................ 3,547,507 -- -- 3,547,507 Repurchase Agreement............. -- 984,000 -- 984,000 ------------ -------- ------- ------------ TOTAL $150,231,407 $984,000 $70,382 $151,285,789 ============ ======== ======= ============
- -------- * Sum of all other countries each of which individually has an aggregate market value of less than 5% of net assets. For a detailed presentation of common stocks by country, please refer to the Portfolio of Investments. The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
COMMON STOCK ------------ Balance as of 9/30/2009.......................... $ 0 Accrued discounts/premiums....................... -- Realized gain (loss)............................. -- Change in unrealized appreciation (depreciation). (607) Net purchases (sales)............................ 70,989 Transfers in and/or out of Level 3............... -- ------- Balance as of 3/31/2010.......................... $70,382 =======
See Notes to Financial Statements 14 SUNAMERICA VALUE FUND PORTFOLIO PROFILE -- MARCH 31, 2010 -- (UNAUDITED) INDUSTRY ALLOCATION* Oil Companies-Integrated............... 10.8% Diversified Banking Institutions....... 9.2 Aerospace/Defense...................... 5.5 Medical-Drugs.......................... 4.9 Electric-Integrated.................... 4.0 Telephone-Integrated................... 3.7 Multimedia............................. 3.2 Diversified Manufacturing Operations... 3.2 Banks-Super Regional................... 3.1 Oil Companies-Exploration & Production. 3.1 Insurance-Multi-line................... 3.0 Retail-Discount........................ 3.0 Food-Misc.............................. 3.0 Oil & Gas Drilling..................... 2.2 Medical Products....................... 2.1 Computers.............................. 2.0 Aerospace/Defense-Equipment............ 2.0 Transport-Rail......................... 1.9 Cable/Satellite TV..................... 1.7 Retail-Restaurants..................... 1.6 Retail-Building Products............... 1.6 Finance-Credit Card.................... 1.6 Beverages-Non-alcoholic................ 1.5 Medical Instruments.................... 1.5 Medical-HMO............................ 1.5 Cosmetics & Toiletries................. 1.4 Investment Management/Advisor Services. 1.3 Electronic Components-Semiconductors... 1.2 Enterprise Software/Service............ 1.1 E-Commerce/Services.................... 1.1 Tobacco................................ 1.1 Chemicals-Diversified.................. 1.1 Retail-Drug Store...................... 1.1 Industrial Gases....................... 1.1 Semiconductor Equipment................ 1.1 Insurance-Property/Casualty............ 1.1 Oil-Field Services..................... 1.1 Applications Software.................. 1.0 Networking Products.................... 1.0 Metal-Copper........................... 1.0 Repurchase Agreement................... 0.7 ---- 98.4% ====
- -------- *Calculated as a percentage of net assets 15 SUNAMERICA VALUE FUND PORTFOLIO OF INVESTMENTS -- MARCH 31, 2010 -- (UNAUDITED)
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) ------------------------------------------------------------------ COMMON STOCK -- 97.7% AEROSPACE/DEFENSE -- 5.5% General Dynamics Corp....................... 36,400 $ 2,810,080 Raytheon Co................................. 81,700 4,666,704 Spirit Aerosystems Holdings, Inc., Class A+. 80,000 1,870,400 ----------- 9,347,184 ----------- AEROSPACE/DEFENSE-EQUIPMENT -- 2.0% United Technologies Corp.................... 46,400 3,415,504 ----------- APPLICATIONS SOFTWARE -- 1.0% Microsoft Corp.............................. 60,000 1,756,200 ----------- BANKS-SUPER REGIONAL -- 3.1% Wells Fargo & Co............................ 172,400 5,365,088 ----------- BEVERAGES-NON-ALCOHOLIC -- 1.5% PepsiCo, Inc................................ 40,000 2,646,400 ----------- CABLE/SATELLITE TV -- 1.7% Comcast Corp., Class A...................... 151,600 2,853,112 ----------- CHEMICALS-DIVERSIFIED -- 1.1% E.I. du Pont de Nemours & Co................ 50,000 1,862,000 ----------- COMPUTERS -- 2.0% Hewlett-Packard Co.......................... 32,900 1,748,635 International Business Machines Corp........ 13,300 1,705,725 ----------- 3,454,360 ----------- COSMETICS & TOILETRIES -- 1.4% The Procter & Gamble Co..................... 38,700 2,448,549 ----------- DIVERSIFIED BANKING INSTITUTIONS -- 9.2% Bank of America Corp........................ 217,100 3,875,235 Citigroup, Inc.+............................ 500,000 2,025,000 JPMorgan Chase & Co......................... 120,100 5,374,475 Morgan Stanley.............................. 85,600 2,507,224 The Goldman Sachs Group, Inc................ 11,100 1,893,993 ----------- 15,675,927 ----------- DIVERSIFIED MANUFACTURING OPERATIONS -- 3.2% General Electric Co......................... 303,200 5,518,240 ----------- E-COMMERCE/SERVICES -- 1.1% eBay, Inc.+................................. 70,000 1,886,500 ----------- ELECTRIC-INTEGRATED -- 4.0% Entergy Corp................................ 30,000 2,440,500 FPL Group, Inc.............................. 53,200 2,571,156 PG&E Corp................................... 45,000 1,908,900 ----------- 6,920,556 ----------- ELECTRONIC COMPONENTS-SEMICONDUCTORS -- 1.2% Intel Corp.................................. 88,700 1,974,462 ----------- ENTERPRISE SOFTWARE/SERVICE -- 1.1% Oracle Corp................................. 75,000 1,926,750 ----------- FINANCE-CREDIT CARD -- 1.6% Discover Financial Services................. 180,000 2,682,000 ----------- FOOD-MISC. -- 3.0% H.J. Heinz Co............................... 53,400 2,435,574 Kraft Foods, Inc., Class A.................. 88,500 2,676,240 ----------- 5,111,814 -----------
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) ----------------------------------------------------------- INDUSTRIAL GASES -- 1.1% Praxair, Inc......................... 22,000 $ 1,826,000 ----------- INSURANCE-MULTI-LINE -- 3.0% Assurant, Inc........................ 65,000 2,234,700 The Allstate Corp.................... 91,000 2,940,210 ----------- 5,174,910 ----------- INSURANCE-PROPERTY/CASUALTY -- 1.1% Chubb Corp........................... 35,000 1,814,750 ----------- INVESTMENT MANAGEMENT/ADVISOR SERVICES -- 1.3% Invesco, Ltd......................... 100,000 2,191,000 ----------- MEDICAL INSTRUMENTS -- 1.5% Medtronic, Inc....................... 56,000 2,521,680 ----------- MEDICAL PRODUCTS -- 2.1% Johnson & Johnson.................... 55,300 3,605,560 ----------- MEDICAL-DRUGS -- 4.9% Abbott Laboratories.................. 45,600 2,402,208 Merck & Co., Inc..................... 70,000 2,614,500 Pfizer, Inc.......................... 200,000 3,430,000 ----------- 8,446,708 ----------- MEDICAL-HMO -- 1.5% UnitedHealth Group, Inc.............. 76,700 2,505,789 ----------- METAL-COPPER -- 1.0% Freeport-McMoRan Copper & Gold, Inc.. 20,000 1,670,800 ----------- MULTIMEDIA -- 3.2% The Walt Disney Co................... 80,000 2,792,800 Viacom, Inc., Class B+............... 80,000 2,750,400 ----------- 5,543,200 ----------- NETWORKING PRODUCTS -- 1.0% Cisco Systems, Inc.+................. 66,900 1,741,407 ----------- OIL & GAS DRILLING -- 2.2% Noble Corp........................... 45,000 1,881,900 Transocean, Ltd.+.................... 21,800 1,883,084 ----------- 3,764,984 ----------- OIL COMPANIES-EXPLORATION & PRODUCTION -- 3.1% Apache Corp.......................... 16,000 1,624,000 Devon Energy Corp.................... 25,000 1,610,750 Occidental Petroleum Corp............ 25,000 2,113,500 ----------- 5,348,250 ----------- OIL COMPANIES-INTEGRATED -- 10.8% Chevron Corp......................... 67,100 5,088,193 ConocoPhillips....................... 69,200 3,540,964 Exxon Mobil Corp..................... 81,100 5,432,078 Hess Corp............................ 30,000 1,876,500 Marathon Oil Corp.................... 79,600 2,518,544 ----------- 18,456,279 ----------- OIL-FIELD SERVICES -- 1.1% Halliburton Co....................... 60,000 1,807,800 ----------- RETAIL-BUILDING PRODUCTS -- 1.6% Lowe's Cos., Inc..................... 110,800 2,685,792 -----------
16 SUNAMERICA VALUE FUND PORTFOLIO OF INVESTMENTS -- MARCH 31, 2010 -- (UNAUDITED) (CONTINUED)
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) ------------------------------------------------------- COMMON STOCK (CONTINUED) RETAIL-DISCOUNT -- 3.0% Target Corp....................... 47,400 $2,493,240 Wal-Mart Stores, Inc.............. 48,200 2,679,920 ---------- 5,173,160 ---------- RETAIL-DRUG STORE -- 1.1% CVS Caremark Corp................. 50,000 1,828,000 ---------- RETAIL-RESTAURANTS -- 1.6% McDonald's Corp................... 40,900 2,728,848 ---------- SEMICONDUCTOR EQUIPMENT -- 1.1% Applied Materials, Inc............ 135,000 1,819,800 ---------- TELEPHONE-INTEGRATED -- 3.7% AT&T, Inc......................... 141,950 3,667,988 Verizon Communications, Inc....... 87,400 2,711,148 ---------- 6,379,136 ---------- TOBACCO -- 1.1% Philip Morris International, Inc.. 36,000 1,877,760 ----------
SHARES/ PRINCIPAL VALUE SECURITY DESCRIPTION AMOUNT (NOTE 3) --------------------------------------------------------------- TRANSPORT-RAIL -- 1.9% Union Pacific Corp.................. 45,000 $ 3,298,500 ------------ TOTAL LONG-TERM INVESTMENT SECURITIES (cost $154,281,995)................ 167,054,759 ------------ REPURCHASE AGREEMENT -- 0.7% State Street Bank and Trust Co. Joint Repurchase Agreement(1) (cost $1,206,000).................. $1,206,000 1,206,000 ------------ TOTAL INVESTMENTS -- (cost $155,487,995)(2)............. 98.4% 168,260,759 Other assets less liabilities......... 1.6 2,705,817 ---------- ------------ NET ASSETS -- 100.0% $170,966,576 ========== ============
- -------- + 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. The following is a summary of the inputs used to value the Fund's net assets as of March 31, 2010 (see Note 3):
LEVEL 1 -- UNADJUSTED LEVEL 2 -- OTHER LEVEL 3 -- SIGNIFICANT QUOTED PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS TOTAL --------------------- ----------------- ---------------------- ------------ Long-Term Investment Securities: Common Stock: Aerospace/Defense................. $ 9,347,184 $ -- $-- $ 9,347,184 Diversified Banking Institutions.. 15,675,927 -- -- 15,675,927 Oil Companies-Integrated.......... 18,456,279 -- -- 18,456,279 Other Industries*................. 123,575,369 -- -- 123,575,369 Repurchase Agreement................. -- 1,206,000 -- 1,206,000 ------------ ---------- --- ------------ TOTAL $167,054,759 $1,206,000 $-- $168,260,759 ============ ========== === ============
- -------- * Sum of all other industries each of which individually has an aggregate market value of less than 5% of net assets. For a detailed presentation of common stocks by industry classification, please refer to the Portfolio of Investments. See Notes to Financial Statements 17 SUNAMERICA INTERNATIONAL SMALL-CAP FUND PORTFOLIO PROFILE -- MARCH 31, 2010 -- (UNAUDITED) INDUSTRY ALLOCATION* Index Fund............................... 10.3% Banks-Commercial......................... 4.3 Time Deposit............................. 3.3 Electronic Components-Misc............... 3.1 Auto/Truck Parts & Equipment-Original.... 3.0 Diversified Manufacturing Operations..... 2.7 Food-Misc................................ 2.3 Medical-Drugs............................ 2.1 Electronic Components-Semiconductors..... 1.8 Chemicals-Diversified.................... 1.8 Oil Companies-Exploration & Production... 1.6 Finance-Other Services................... 1.6 Internet Content-Information/News........ 1.6 Transport-Services....................... 1.5 Investment Management/Advisor Services... 1.4 Machinery-General Industrial............. 1.4 Paper & Related Products................. 1.3 Diversified Minerals..................... 1.3 Machinery-Material Handling.............. 1.3 Machinery-Electrical..................... 1.3 Distribution/Wholesale................... 1.3 Beverages-Non-alcoholic.................. 1.3 Retail-Misc./Diversified................. 1.3 Insurance-Life/Health.................... 1.3 Publishing-Newspapers.................... 1.2 Telecom Services......................... 1.2 Diagnostic Kits.......................... 1.2 Building & Construction-Misc............. 1.2 Computer Services........................ 1.2 Oil-Field Services....................... 1.2 Hotels/Motels............................ 1.2 Theaters................................. 1.2 Metal Processors & Fabrication........... 1.1 Computers-Periphery Equipment............ 1.1 Retail-Apparel/Shoe...................... 1.0 Auto/Truck Parts & Equipment-Replacement. 1.0 Electric Products-Misc................... 0.9 Entertainment Software................... 0.9 Motorcycle/Motor Scooter................. 0.8 Insurance-Property/Casualty.............. 0.8 Retail-Restaurants....................... 0.8 Cosmetics & Toiletries................... 0.8 Applications Software.................... 0.8 Electronic Security Devices.............. 0.8 Human Resources.......................... 0.8 Food-Meat Products....................... 0.8 Building-Residential/Commercial.......... 0.8 Alternative Waste Technology............. 0.7 Real Estate Operations & Development..... 0.7 Containers-Paper/Plastic................. 0.7 Apparel Manufacturers.................... 0.7 Agricultural Operations.................. 0.7 Pipelines................................ 0.7 Internet Infrastructure Software......... 0.6 Commercial Services...................... 0.6 Machinery-Construction & Mining.......... 0.6 E-Commerce/Services...................... 0.6 Medical Labs & Testing Services.......... 0.6 Auto-Cars/Light Trucks................... 0.6 Electronic Connectors.................... 0.6
Medical Products.................... 0.6 Transport-Truck..................... 0.6 Retail-Sporting Goods............... 0.6 Food-Dairy Products................. 0.6 Audio/Video Products................ 0.5 Power Converter/Supply Equipment.... 0.5 Machine Tools & Related Products.... 0.5 Coatings/Paint...................... 0.5 Advanced Materials.................. 0.5 Retail-Bookstores................... 0.5 Real Estate Investment Trusts....... 0.5 Diversified Operations.............. 0.5 Computers-Integrated Systems........ 0.5 Transport-Marine.................... 0.5 Computers........................... 0.4 Water Treatment Systems............. 0.4 Coal................................ 0.4 Medical-Nursing Homes............... 0.4 Food-Retail......................... 0.4 Real Estate Management/Services..... 0.4 Venture Capital..................... 0.4 Electronic Measurement Instruments.. 0.4 Finance-Credit Card................. 0.3 Telecommunication Equipment......... 0.3 E-Services/Consulting............... 0.3 Direct Marketing.................... 0.3 Medical-Wholesale Drug Distribution. 0.3 Consulting Services................. 0.2 Cellular Telecom.................... 0.2 Mining Services..................... 0.2 Miscellaneous Manufacturing......... 0.2 Machinery-Pumps..................... 0.2 Machinery-Thermal Process........... 0.2 Textile-Products.................... 0.2 Batteries/Battery Systems........... 0.2 Medical Instruments................. 0.2 Finance-Investment Banker/Broker.... 0.2 Medical Information Systems......... 0.2 Retail-Discount..................... 0.2 Travel Services..................... 0.2 Rental Auto/Equipment............... 0.2 Mining.............................. 0.2 Investment Companies................ 0.1 Retail-Toy Stores................... 0.1 Engines-Internal Combustion......... 0.1 ----- 100.8% =====
- -------- *Calculated as a percentage of net assets 18 SUNAMERICA INTERNATIONAL SMALL-CAP FUND PORTFOLIO PROFILE -- MARCH 31, 2010 -- (UNAUDITED) (CONTINUED) COUNTRY ALLOCATION* Japan.......... 19.0% United Kingdom. 8.8 Luxembourg..... 7.7 United States.. 6.7 Australia...... 6.1 Cayman Islands. 5.6 Switzerland.... 4.9 Italy.......... 4.6 France......... 4.2 South Korea.... 4.1 Bermuda........ 3.8 Finland........ 3.4 Germany........ 2.6 Ireland........ 2.5 Hong Kong...... 2.2 Taiwan......... 1.8 China.......... 1.7 Indonesia...... 1.7 Singapore...... 1.7 Sweden......... 1.2 Portugal....... 1.2 Belgium........ 1.2 Guernsey....... 1.0 Netherlands.... 0.8 Norway......... 0.8 Thailand....... 0.5 Malaysia....... 0.4 Mauritius...... 0.3 New Zealand.... 0.2 Spain.......... 0.1 ----- 100.8% =====
- -------- *Calculated as a percentage of net assets 19 SUNAMERICA INTERNATIONAL SMALL-CAP FUND PORTFOLIO OF INVESTMENTS -- MARCH 31, 2010 -- (UNAUDITED)
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) --------------------------------------------------------------------- COMMON STOCK -- 85.9% AUSTRALIA -- 6.1% Asciano Group+................................... 175,640 $ 305,429 Bendigo and Adelaide Bank, Ltd................... 59,997 550,563 Billabong International, Ltd..................... 12,012 124,558 carsales.com.au, Ltd.+........................... 74,959 370,069 Centamin Egypt, Ltd.+............................ 423,745 872,917 Centennial Coal Co., Ltd......................... 71,974 281,360 CSR, Ltd......................................... 409,581 622,035 Domino's Pizza Enterprises, Ltd.................. 40,499 199,570 Emeco Holdings, Ltd.............................. 190,000 106,356 Mineral Resources, Ltd........................... 22,000 149,999 Nufarm, Ltd...................................... 25,519 192,726 Premier Investments, Ltd......................... 9,394 65,515 South Australia Coal Corp.(1).................... 11,316 1,038 Webjet, Ltd...................................... 46,563 107,676 ---------- 3,949,811 ---------- BELGIUM -- 1.2% Kinepolis Group NV............................... 13,866 759,238 ---------- BERMUDA -- 3.8% China Gas Holdings, Ltd.......................... 774,000 434,638 China Yurun Food Group, Ltd...................... 77,000 235,039 Digital China Holdings, Ltd...................... 328,000 553,408 Lancashire Holdings, Ltd......................... 75,360 550,523 Pacific Basin Shipping, Ltd...................... 182,000 144,395 Peace Mark Holdings, Ltd.+(1)(2)................. 8,000 0 Ports Design, Ltd................................ 131,000 330,695 Rexcapital Financial Holdings, Ltd.+............. 850,000 121,519 Texwinca Holdings, Ltd........................... 114,000 125,831 ---------- 2,496,048 ---------- CAYMAN ISLANDS -- 5.6% AAC Acoustic Technologies Holdings, Inc.......... 448,000 748,951 Agile Property Holdings, Ltd..................... 230,000 314,003 China Dongxiang Group Co......................... 403,000 289,108 China High Speed Transmission Equipment Group Co., Ltd........................................ 152,000 335,940 China Mengniu Dairy Co., Ltd.+................... 123,000 383,372 Foxconn International Holdings, Ltd.+............ 187,000 197,736 Fufeng Group, Ltd................................ 254,000 168,804 Li Ning Co., Ltd................................. 79,000 286,422 Shenguan Holdings Group, Ltd..................... 530,000 510,597 Shui On Land, Ltd................................ 299,000 152,499 Xinyi Glass Holding Co., Ltd..................... 264,000 240,734 ---------- 3,628,166 ---------- CHINA -- 1.7% Beijing Jingkelong Supermarket Chain Group Co., Ltd............................................. 269,000 273,356 Weichai Power Co., Ltd........................... 46,000 384,506 Zhuzhou CSR Times Electric Co., Ltd.............. 248,000 468,898 ---------- 1,126,760 ---------- FINLAND -- 3.4% Konecranes Oyj................................... 25,042 739,709 Oriola-KD Oyj Series B........................... 115,628 760,562 Pohjola Bank PLC, Class A........................ 66,243 744,400 ---------- 2,244,671 ----------
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) --------------------------------------------------------------- FRANCE -- 3.3% GameLoft................................ 121,342 $ 585,090 SOITEC+................................. 51,424 792,491 Sopra Group SA.......................... 10,896 779,690 ---------- 2,157,271 ---------- GERMANY -- 1.3% Rheinmetall AG.......................... 11,771 843,098 ---------- GUERNSEY -- 1.0% Stobart Group, Ltd...................... 304,751 665,479 ---------- HONG KONG -- 2.2% China Everbright International, Ltd..... 926,000 471,095 Dah Sing Banking Group, Ltd............. 118,400 161,948 Denway Motors, Ltd...................... 748,000 398,844 Shanghai Industrial Holdings, Ltd....... 15,000 68,777 Techtronic Industries Co................ 397,500 322,536 ---------- 1,423,200 ---------- INDONESIA -- 1.7% PT BW Plantation Tbk.................... 2,829,000 230,063 PT Delta Dunia Makmur Tbk............... 899,500 105,771 PT Indofood Sukses Makmur Tbk........... 1,202,500 498,867 PT United Tractors Tbk.................. 144,666 291,733 ---------- 1,126,434 ---------- ITALY -- 4.6% Amplifon SpA............................ 161,507 831,657 DiaSorin SpA............................ 20,898 786,655 Gruppo Editoriale L'Espresso SpA........ 281,113 795,441 Piaggio & C SpA......................... 173,893 554,290 ---------- 2,968,043 ---------- JAPAN -- 19.0% Acrodea, Inc.+.......................... 45 64,499 Ahresty Corp............................ 8,700 90,546 Ain Pharmaciez, Inc..................... 13,800 403,121 Amiyaki Tei Co., Ltd.................... 21 60,311 Asahi Intecc Co., Ltd................... 4,700 74,353 Axell Corp.............................. 11,500 412,691 Benefit One, Inc........................ 182 139,386 CanBas Co., Ltd.+....................... 3,400 52,078 Chugoku Marine Paints, Ltd.............. 46,000 316,376 Credit Saison Co., Ltd.................. 13,500 209,381 Dai-ichi Seiko Co., Ltd................. 7,900 258,573 Daihatsu Diesel Manufacturing Co., Ltd.. 16,000 59,044 Daiseki Co., Ltd........................ 9,200 191,597 Don Quijote Co., Ltd.................... 4,600 114,840 Doshisha Co., Ltd....................... 5,500 142,721 en-japan, Inc........................... 223 298,160 Enplas Corp............................. 4,700 92,452 EPS Co., Ltd............................ 86 208,722 Foster Electric Co., Ltd................ 12,300 341,542 FP Corp................................. 10,000 457,268 Funai Electric Co., Ltd................. 3,200 134,859 GCA Savvian Group Corp.................. 136 129,323 Hajime Construction Co., Ltd............ 8,700 288,480 HIRANO TECSEED Co., Ltd................. 11,000 127,308 H.I.S. Co., Ltd......................... 5,600 114,707
20 SUNAMERICA INTERNATIONAL SMALL-CAP FUND PORTFOLIO OF INVESTMENTS -- MARCH 31, 2010 -- (UNAUDITED) (CONTINUED)
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) --------------------------------------------------------------- COMMON STOCK (CONTINUED) Hisamitsu Pharmaceutical Co., Inc........ 1,900 $ 70,623 Intage, Inc.............................. 5,100 87,337 Iriso Electronics Co., Ltd............... 8,100 133,946 Jafco Co., Ltd........................... 9,300 244,213 Japan Electronic Materials Corp.......... 6,000 39,469 Kakaku.com, Inc.......................... 81 293,711 Koito Manufacturing Co., Ltd............. 23,000 341,470 Kokusai Co., Ltd......................... 26,800 151,071 MACROMILL, Inc........................... 127 183,660 Mani, Inc................................ 8,000 314,044 Matsuda Sangyo Co., Ltd.................. 8,500 158,017 Message Co., Ltd......................... 129 276,931 MICRONICS JAPAN CO., LTD................. 5,300 92,236 Modec, Inc............................... 6,900 123,770 Moshi Moshi Hotline, Inc................. 6,400 122,332 Nichi-iko Pharmaceutical Co., Ltd........ 8,400 236,034 Nihon M&A Center, Inc.................... 22 75,420 Nishimatsuya Chain Co., Ltd.............. 36,200 376,365 Nomura Real Estate Holdings, Inc......... 6,200 95,629 Osaka Securities Exchange Co., Ltd....... 48 251,064 Otsuka Corp.............................. 4,800 304,974 OUTSOURCING, Inc......................... 242 89,045 Proto Corp.+............................. 10,400 352,637 Roland DG Corp........................... 9,400 167,006 Sintokogio, Ltd.......................... 8,200 68,151 Software Service, Inc.................... 8,100 121,210 Sysmex Corp.............................. 2,100 123,093 Taiko Pharmaceutical Co., Ltd............ 4,000 64,392 Teikoku Electric Manufacturing Co., Ltd.. 6,100 130,430 The Hiroshima Bank, Ltd.................. 20,000 84,501 Tocalo Co., Ltd.......................... 13,400 279,782 Toho Holdings Co., Ltd................... 13,400 175,437 Token Corp............................... 7,530 215,212 TOKYU LIVABLE, Inc....................... 17,100 155,837 Toridoll.corp............................ 160 288,886 Towa Corp.+.............................. 17,100 132,059 Tri-Stage, Inc.+......................... 2,000 53,311 Union Tool Co............................ 4,400 123,072 Unipres Corp............................. 4,500 63,536 Village Vanguard Co., Ltd................ 77 314,622 VSN, Inc................................. 10,000 65,462 Works Applications Co., Ltd.............. 697 465,213 Yamaguchi Financial Group, Inc........... 12,000 131,308 ----------- 12,418,856 ----------- LUXEMBOURG -- 1.2% Acergy SA................................ 42,373 774,994 ----------- MALAYSIA -- 0.4% IJM Corp. Bhd............................ 158,760 237,507 ----------- MAURITIUS -- 0.3% Golden Agri-Resources, Ltd.+............. 526,670 218,356 ----------- NETHERLANDS -- 0.8% Smartrac NV+............................. 24,116 524,414 ----------- NEW ZEALAND -- 0.2% Kathmandu Holdings, Ltd.+................ 55,000 95,390 -----------
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) ---------------------------------------------------------------- NORWAY -- 0.8% Norwegian Energy Co. AS+................. 166,454 $ 515,337 ---------- PORTUGAL -- 1.2% Altri SGPS SA+........................... 113,001 760,072 ---------- SINGAPORE -- 1.7% CapitaCommercial Trust................... 407,000 314,207 Epure International, Ltd................. 423,000 285,740 Ezra Holdings, Ltd....................... 94,000 158,576 Venture Corp., Ltd....................... 58,000 361,528 ---------- 1,120,051 ---------- SOUTH KOREA -- 4.1% Cheil Industries, Inc.................... 5,330 301,018 Glovis Co., Ltd.......................... 4,457 387,617 Hansol Paper Co., Ltd.+.................. 13,670 124,443 Hyundai Mobis............................ 3,372 447,037 LG Household & Health Care, Ltd.......... 2,021 540,327 SODIFF Advanced Materials Co., Ltd....... 4,201 315,599 Sungwoo Hitech Co., Ltd.................. 23,102 306,271 Taewoong Co., Ltd........................ 4,115 257,494 ---------- 2,679,806 ---------- SPAIN -- 0.1% Imaginarium SA+.......................... 15,982 60,657 ---------- SWEDEN -- 1.2% AarhusKarlshamn AB....................... 28,320 768,734 ---------- SWITZERLAND -- 4.9% EFG International AG..................... 46,175 801,406 Implenia AG+............................. 27,829 786,518 Partners Group Holding AG................ 5,668 802,572 Sulzer AG................................ 8,490 825,327 ---------- 3,215,823 ---------- TAIWAN -- 1.8% Advantech Co., Ltd....................... 61,000 130,228 Chicony Electronics Co., Ltd............. 198,318 527,674 Far EasTone Telecommunications Co., Ltd.. 133,000 159,141 Shin Zu Shing Co., Ltd................... 21,884 93,027 Simplo Technology Co., Ltd............... 22,000 125,386 Wistron Corp............................. 90,058 163,623 ---------- 1,199,079 ---------- THAILAND -- 0.5% TMB Bank PCL (Foreign Shares)+(3)........ 7,856,300 340,152 ---------- UNITED KINGDOM -- 8.8% Britvic PLC.............................. 119,002 837,916 Chemring Group PLC....................... 15,658 786,727 Croda International PLC.................. 56,178 798,793 Dana Petroleum PLC+...................... 28,647 522,531 IG Group Holdings PLC.................... 126,730 773,482 Millennium & Copthorne Hotels PLC........ 103,490 761,830 Robert Walters PLC....................... 131,650 449,502 St James's Place PLC..................... 209,563 828,420 ---------- 5,759,201 ----------
21 SUNAMERICA INTERNATIONAL SMALL-CAP FUND PORTFOLIO OF INVESTMENTS -- MARCH 31, 2010 -- (UNAUDITED) (CONTINUED)
VALUE SECURITY DESCRIPTION SHARES (NOTE 3) ------------------------------------------------------------------------ COMMON STOCK (CONTINUED) UNITED STATES -- 3.0% AsiaInfo Holdings, Inc.............................. 16,100 $ 426,328 Autoliv, Inc.+...................................... 14,986 772,229 Virgin Media, Inc................................... 45,708 788,920 ----------- 1,987,477 ----------- TOTAL COMMON STOCK (cost $44,564,596)................................. 56,064,125 ----------- EXCHANGE-TRADED FUNDS -- 10.3% FRANCE -- 0.9% Lyxor ETF Eastern Europe............................ 21,786 604,983 ----------- IRELAND -- 2.5% iShares MSCI Latin America Fund..................... 61,745 1,674,861 ----------- LUXEMBOURG -- 6.5% db x-trackers-MSCI Emerging Latin America TRN Index ETF...................................... 32,415 1,957,866 db x-trackers-MSCI Emerging Markets TRN Index ETF...................................... 70,038 2,267,130 ----------- 4,224,996 ----------- UNITED STATES -- 0.4% iShares MSCI Israel Capped Investable Market Index Fund............................................... 4,320 254,275 ----------- TOTAL EXCHANGE-TRADED FUNDS (cost $4,682,172).................................. 6,759,115 -----------
SHARES/ PRINCIPAL VALUE SECURITY DESCRIPTION AMOUNT (NOTE 3) ------------------------------------------------------------------------ PREFERRED STOCK -- 1.3% GERMANY -- 1.3% Jungheinrich AG (cost $786,086).............................. 37,212 $ 867,997 ----------- WARRANTS+ -- 0.0% MAURITIUS -- 0.0% Golden Agri-Resources, Ltd. Expires 07/23/12 (strike price $0.54) (cost $0).................................... 18,172 1,624 ----------- TOTAL LONG-TERM INVESTMENT SECURITIES (cost $50,032,854)........................... 63,692,861 ----------- SHORT-TERM INVESTMENT SECURITIES -- 3.3% TIME DEPOSIT -- 3.3% Euro Time Deposit with State Street Bank and Trust Co. 0.01% due 04/01/10 (cost $2,130,000)............................ $2,130,000 2,130,000 ----------- TOTAL INVESTMENTS -- (cost $52,162,854)(4)........................ 100.8% 65,822,861 Liabilities in excess of other assets........... (0.8) (552,951) ---------- ----------- NET ASSETS -- 100.0% $65,269,910 ========== ===========
- -------- + Non-income producing security (1) Fair valued security. Securities are classified as Level 3 based on the securities valuation inputs. See Note 3. (2) Illiquid security. At March 31, 2010, the aggregate value of these securities was $0 representing 0.0% of net assets. (3) Fair valued security. Securities are classified as Level 2 based on the securities valuation inputs. See Note 3. (4) See Note 7 for cost of investments on a tax basis. ETF --Exchange-Traded Fund The following is a summary of the inputs used to value the Fund's net assets as of March 31, 2010 (see Note 3):
LEVEL 1 -- UNADJUSTED LEVEL 2-- OTHER LEVEL 3 -- SIGNIFICANT QUOTED PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS TOTAL --------------------- ----------------- ---------------------- ----------- Long-Term Investment Securities: Common Stock: Australia...................... $ 3,948,773 $ -- $1,038 $ 3,949,811 Cayman Islands................. 3,628,166 -- -- 3,628,166 Japan.......................... 12,418,856 -- -- 12,418,856 United Kingdom................. 5,759,201 -- -- 5,759,201 Other Countries*............... 29,967,939 340,152 0 30,308,091 Exchange-Traded Funds Luxemburg...................... 4,224,996 -- -- 4,224,996 Other Countries*............... 2,534,119 -- -- 2,534,119 Preferred Stock................. 867,997 -- -- 867,997 Warrants........................ 1,624 -- -- 1,624 Short-Term Investment Securities: Time Deposit.................... -- 2,130,000 -- 2,130,000 ----------- ---------- ------ ----------- TOTAL $63,351,671 $2,470,152 $1,038 $65,822,861 =========== ========== ====== ===========
- -------- * Sum of all other countries each of which individually has an aggregate market value of less than 5% of net assets. For a detailed presentation of common stocks by country, please refer to the Portfolio of Investments. The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
COMMON STOCK ------------ Balance as of 9/30/2009.......................... $ 0 Accrued discounts/premiums....................... -- Realized gain (loss)............................. -- Change in unrealized appreciation (depreciation). 680 Net purchases (sales)............................ 358 Transfers in and/or out of Level 3............... -- ------ Balance as of 3/31/2010.......................... $1,038 ======
See Notes to Financial Statements 22 SUNAMERICA EQUITY FUNDS NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2010 -- (UNAUDITED) Note 1. Organization SunAmerica Equity Funds is registered under the Investment Company Act of 1940, as amended (the "1940 Act") as an open-end management investment company and was organized as a Massachusetts business trust (the "Trust" or "Equity Funds") on June 16, 1986. It currently consists of three different funds (each, a "Fund" and collectively, the "Funds"). Each Fund is a separate series of the Trust with a distinct objective and/or strategy. Each Fund is advised and/or managed by SunAmerica Asset Management Corp. (the "Adviser" or "SunAmerica"). An investor may invest in one or more of the following Funds: SunAmerica International Equity Fund ("International Equity Fund"), SunAmerica Value Fund ("Value Fund"), and SunAmerica 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 are as follows: INTERNATIONAL EQUITY FUND seeks capital appreciation by active trading of equity securities and other securities with equity characteristics of non-U.S. issuers located in a number of different countries other than the U.S. and selected without regard to market capitalization. Under normal circumstances, at least 80% of the Fund's net assets, plus any borrowing for investment purposes, will be invested in equity securities. VALUE FUND seeks long-term growth of capital by active trading of equity securities selected on the basis of value criteria, issued by companies of any market capitalization, that offer the potential for long-term growth of capital. INTERNATIONAL SMALL-CAP FUND seeks long-term capital appreciation by active trading of equity securities and other securities with equity characteristics of non-U.S. small-cap companies throughout the world, including emerging market countries. 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 International Small-Cap Fund is organized as a "diversified" fund within the meaning of the 1940 Act. The International Equity Fund and Value Fund are organized as "non-diversified" funds. Each Fund offers multiple classes of shares. The classes within each Fund are presented in the Statement of Assets and Liabilities. The cost structure for each class is as follows: Class A shares are offered at net asset value per share plus an initial sales charge. Additionally, purchases of Class A shares in amounts $1,000,000 or more will be purchased at net asset value but will be subject to a contingent deferred sales charge on redemptions made within two years of purchase. With respect to Class A shares of the International Equity Fund and 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) calendar days prior to the date of such redemption. An exchange fee of 2% will be assessed on the amount of any exchange of Class A shares of the International Equity Fund and International Small-Cap Fund that were purchased within ninety (90) calendar days prior to the date of such exchange. Class B shares are offered without an initial sales charge, although a declining contingent deferred sales charge may be imposed on redemptions made within six years of purchase. Class B shares of each Fund convert automatically to Class A shares approximately eight years after purchase of such Class B shares and at such time will be subject to the lower distribution fee applicable to Class A shares. Class C shares are offered at net asset value per share without an initial sales charge, although may be subject to a contingent deferred sales charge on redemptions made within 12 months of purchase. Class I and Class Z shares are offered at net asset value per share. These classes are offered exclusively to certain institutions and to participants in certain employee benefit plans and other programs. Class I shares are closed to new purchases, however, existing investors may continue to purchase shares through reinvestments of dividends and capital gains distributions. 23 SUNAMERICA EQUITY FUNDS NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2010 -- (UNAUDITED) (CONTINUED) Each class of shares bears the same voting, dividend, liquidation and other rights and conditions, except as may otherwise be provided in the Trust's registration statement. Class A, Class B and Class C shares each make distribution and account maintenance fee payments under the distribution plans pursuant to Rule 12b-1 under the 1940 Act, except that Class B and Class C shares are subject to higher distribution fee rates. Class I shares and Class Z shares have not adopted 12b-1 plans and make no payments thereunder, however, Class I shares pay a service fee to the Funds' distributor for providing administrative and shareholder services. INDEMNIFICATIONS: Under the Trust's organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, pursuant to Indemnification Agreements between the Trust and each of the current trustees who is not an "interested person," as defined in Section 2(a)(19) of the 1940 Act, of the Trust (collectively, the "Disinterested Trustees"), the Trust provides the Disinterested Trustees with a limited indemnification against liabilities arising out of the performance of their duties to the Trust, whether such liabilities are asserted during or after their service as trustees. In addition, in the normal course of business the Trust enters into contracts that contain the obligation to indemnify others. The Trust's maximum exposure under these arrangements is unknown. Currently, however, the Trust expects the risk of loss to be remote. Note 2. Fund Mergers Pursuant to a plan of reorganization, all of the assets and liabilities of the SunAmerica Focused International Equity Portfolio ("Focused International Equity Portfolio"), a series of SunAmerica Focused Series, Inc. (the "Corporation"), were transferred in a tax-free exchange to the International Equity Fund, in exchange for shares of the International Equity Fund. The reorganization was consummated on January 12, 2009. The acquiring fund acquired all of the assets and liabilities of the target fund as shown in the table below. Class A, Class B and Class C shares of the Focused International Equity Portfolio were exchanged tax-free for Class A, Class B and Class C shares of International Equity Fund at an exchange ratio of 1.10 to 1, 1.14 to 1 and 1.13 to 1, respectively. Shares of the International Equity Fund issued in connection with the acquisition of the Focused International Equity Portfolio were 12,447,732 with a value of $107,741,476. The assets in the investment portfolio of the Focused International Equity Portfolio with a value of $107,598,677 and identified cost of $135,888,649 as of the date of the reorganization, were the principal assets acquired by the acquiring fund. For financial statement purposes, assets received and shares issued by the acquiring fund were recorded at value; however, the cost basis of the investments received from the target fund were carried forward to align ongoing reporting of the acquiring fund's realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. The following is a summary of the shares outstanding, net assets, net asset value per share and net unrealized appreciation/(depreciation) immediately before and after the reorganizations:
NET ASSET NET UNREALIZED SHARES NET VALUE APPRECIATION OUTSTANDING ASSETS PER SHARE (DEPRECIATION) ----------- ------------ --------- -------------- Target Fund Focused International Equity Portfolio. $(28,289,972) Class A.............................. 8,676,911 $ 84,069,949 $9.69 Class B.............................. 817,621 7,600,518 9.30 Class C.............................. 1,733,400 16,071,009 9.27 Acquiring Fund International Equity Fund.............. $ (7,162,629) Class A.............................. 3,315,688 $ 29,181,894 $8.80 Class B.............................. 700,833 5,734,759 8.18 Class C.............................. 1,084,491 8,861,529 8.17 Class I.............................. 409,771 3,631,300 8.86 Post Reorganization International Equity Fund.............. $(35,452,601) Class A.............................. 12,867,763 $113,251,843 $8.80 Class B.............................. 1,629,674 13,335,277 8.18 Class C.............................. 3,051,307 24,932,538 8.17 Class I.............................. 409,771 3,631,300 8.86
24 SUNAMERICA EQUITY FUNDS NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2010 -- (UNAUDITED) (CONTINUED) Assuming the reorganization had been completed on October 1, 2008, the beginning of the annual reporting period for the acquiring fund, the pro forma results of operations for the period ended September 30, 2009, are as follows: Net investment income (loss)................... $ 1,012,413 Net realized/unrealized gains (losses)......... (29,717,769) ------------ Change in net assets resulting from operations. $(28,705,356) ============
Because the combined investment portfolios have been managed as a single integrated portfolio since the reorganization was completed, it is not practicable to separate the amounts of revenue and earnings of the target fund that have been included in the Statement of Operations since January 12, 2009. Pursuant to a plan of reorganization, all of the assets and liabilities of the SunAmerica Focused Large-Cap Value Portfolio ("Focused Large-Cap Value Portfolio"), a series of the Corporation, were transferred in a tax-free exchange to the Value Fund, in exchange for shares of the Value Fund. The reorganization was consummated on October 26, 2009. The acquiring fund acquired all of the assets and liabilities of the target fund as shown in the table below. Class A, Class B and Class C shares of the Focused Large-Cap Value Portfolio were exchanged tax-free for Class A, Class B and Class C shares of Value Fund at an exchange ratio of 0.78 to 1, 0.77 to 1 and 0.77 to 1, respectively. Shares of the Value Fund issued in connection with the acquisition of the Focused Large-Cap Value Portfolio were 7,374,611 with a value of $79,273,334. The assets in the investment portfolio of the Focused Large-Cap Value Portfolio with a value of $79,261,700 and identified cost of $73,975,265 as of the date of the reorganization, were the principal assets acquired by the acquiring fund. For financial statement purposes, assets received and shares issued by the acquiring fund were recorded at value; however, the cost basis of the investments received from the target fund were carried forward to align ongoing reporting of the acquiring fund's realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. The following is a summary of the shares outstanding, net assets, net asset value per share and net unrealized appreciation/(depreciation) immediately before and after the reorganizations:
NET ASSET NET UNREALIZED SHARES NET VALUE APPRECIATION OUTSTANDING ASSETS PER SHARE (DEPRECIATION) ----------- ------------ --------- -------------- Target Fund Focused Large Cap-Value Portfolio. $ 5,286,435 Class A......................... 6,439,768 $ 54,815,779 $ 8.51 Class B......................... 867,878 6,871,725 7.92 Class C......................... 2,213,883 17,585,830 7.94 Acquiring Fund Value Fund........................ $ 4,908,527 Class A......................... 4,784,330 $ 52,515,489 $10.98 Class B......................... 1,102,538 11,329,123 10.28 Class C......................... 921,634 9,467,172 10.27 Class Z......................... 1,862,199 21,520,775 11.56 Class I......................... 1,377 15,085 10.96 Post Reorganization Value Fund........................ $10,194,962 Class A......................... 9,778,221 $107,331,268 $10.98 Class B......................... 1,771,282 18,200,848 10.28 Class C......................... 2,633,610 27,053,002 10.27 Class Z......................... 1,862,199 21,520,775 11.56 Class I......................... 1,377 15,085 10.96
25 SUNAMERICA EQUITY FUNDS NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2010 -- (UNAUDITED) (CONTINUED) Assuming the reorganization had been completed on October 1, 2009, the beginning of the annual reporting period for the acquiring fund, the pro forma results of operations for the period ended March 31, 2010, are as follows: Net investment income (loss)................... $ 502,287 Net realized/unrealized gains (losses)......... 12,848,148 ----------- Change in net assets resulting from operations. $13,350,435 ===========
Because the combined investment portfolios have been managed as a single integrated portfolio since the reorganization was completed, it is not practicable to separate the amounts of revenue and earnings of the target fund that have been included in the Statement of Operations since October 26, 2009. 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 those estimates and those differences could be significant. 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 for which the securities are principally traded. Stocks listed on the NASDAQ are valued using the NASDAQ Official Closing Price ("NOCP"). Generally, the NOCP will be the last sale price unless the reported trade for the stock is outside the range of the bid/ask price. In such cases, the NOCP will be normalized to the nearer of the bid or ask price. For listed securities having no sales reported and for unlisted securities, such securities will be valued based upon the last reported bid price. As of the close of regular trading on the New York Stock Exchange ("NYSE"), securities traded primarily on security exchanges outside the United States are valued at the last sale price on such exchanges on the day of valuation, or if there is no sale on the day of valuation, at the last-reported bid price. If a security's price is available from more than one exchange, a 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. The pricing services may use valuation models or matrix pricing which considers information with respect to comparable bond and note transactions, quotations from bond dealers, or by reference to other securities that are considered comparable in such characteristics as rating, interest rate, and maturity date, option adjusted spreads models, prepayments projections, interest rate spreads, and yield curves to determine current value. If a vendor quote is unavailable the securities may be priced at the mean of two independent quotes obtained from brokers. Short-term securities with 60 days or less to maturity are amortized to maturity based on their cost to the Fund if acquired within 60 days of maturity or, if already held by the Fund on the 60th day, are amortized to maturity based on the value determined on the 61st day. Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an 26 SUNAMERICA EQUITY FUNDS NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2010 -- (UNAUDITED) (CONTINUED) exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded. Securities for which market quotations are not readily available or if a development/significant event occurs that may significantly impact the value of the security, then these securities are valued, as determined pursuant to procedures adopted in good faith by the Board. There is no single standard for making fair value determinations, which may result in prices that vary from those of other funds. The various inputs that may be used to determine the value of the Funds' investments are summarized into three broad levels listed below: Level 1 -- Unadjusted quoted prices in active markets for identical securities Level 2 -- Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, referenced indices, quoted prices in inactive markets, adjusted quoted prices in active markets, adjusted quoted prices on foreign equity securities that were adjusted in accordance with pricing procedures approved by the Board of Trustees, etc.) Level 3 -- Significant unobservable inputs (includes inputs that reflect the Funds' own assumptions about the assumptions market participants would use in pricing the security, developed based on the best information available under the circumstances.) The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of the inputs used to value the Funds' net assets as of March 31, 2010 are reported on a schedule following the Portfolio of Investments. REPURCHASE AGREEMENTS: The Funds, along with other affiliated registered investment companies, pursuant to and in accordance with applicable Securities and Exchange Commission ("SEC") guidance, 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, plus accrued interest, to ensure that the value at the time the agreement is entered into, is equal to at least 102% of the repurchase price, including accrued interest. In the event of default of the obligation to repurchase, a Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited. As of March 31, 2010, the following Funds held an undivided interest in a joint repurchase agreement with State Street Bank and Trust Co.:
PERCENTAGE PRINCIPAL FUND INTEREST AMOUNT - ---- ---------- ---------- Value. 0.49% $1,206,000
As of such date, the repurchase agreement in that joint account and the collateral therefore were as follows: State Street Bank and Trust Co., dated March 31, 2010, bearing interest at a rate of 0.01% per annum, with a principal amount of $246,749,000, a repurchase price of $246,749,000, and a maturity date of April 1, 2010. The repurchase agreement is collateralized by the following:
MATURITY PRINCIPAL TYPE OF COLLATERAL INTEREST RATE DATE AMOUNT MARKET VALUE - ------------------ ------------- -------- ------------ ------------ U.S. Treasury Bills. 0.10% 05/06/10 $248,535,000 $248,510,147 U.S. Treasury Bills. 0.17 06/03/10 3,175,000 3,174,048
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. 27 SUNAMERICA EQUITY FUNDS NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2010 -- (UNAUDITED) (CONTINUED) 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. Capital gain distributions, if any, are paid at least annually. The Funds record dividends and distributions to their shareholders on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined 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. The Funds file U.S. federal and certain state income tax returns. With few exceptions, the Funds are no longer subject to U.S. federal and state tax examination by tax authorities for tax years ending before 2006. 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 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. 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 SunAmerica. Under the Agreement, SunAmerica provides continuous supervision of a Fund's portfolio and administers its corporate affairs, subject to general review by the Trustees. In connection therewith, SunAmerica furnishes the Funds with office facilities, maintains certain of the Funds' books and records, and pays the salaries and expenses of all personnel, including officers of the Funds who are employees of SunAmerica and its affiliates. 28 SUNAMERICA EQUITY FUNDS NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2010 -- (UNAUDITED) (CONTINUED) The Funds pay SunAmerica a monthly investment advisory and management fee calculated daily at the following annual percentages of each Fund's average daily net assets:
MANAGEMENT FUND FEES - ---- ---------- International Equity Fund.... 1.00% Value Fund*.................. 0.75 International Small-Cap Fund. 1.15
- -------- * Effective October 26, 2009, the investment advisory and management fee was decreased from 1.00% of average daily net assets to 0.75% of average daily net assets. For the six months ended March 31, 2010, SunAmerica earned fees in the amounts stated in the Statement of Operations. The International Equity Fund and International Small-Cap Fund are subadvised by PineBridge Investments, LLC ("PineBridge") pursuant to a subadvisory agreement with SunAmerica. PineBridge receives an annual fee of 0.47% of average daily net assets for the International Equity Fund and 0.60% of average daily net assets for the International Small-Cap Fund, which is paid by SunAmerica. For the six months ended March 31, 2010, PineBridge voluntary waived 0.05% of the fee payable by SunAmerica to PineBridge for the International Small-Cap Fund. SunAmerica has contractually agreed to waive fees or reimburse expenses to the extent necessary to cap the Funds' annual fund operating expenses at the following percentages of each Fund's average daily net assets. Annual Fund operating expenses shall not include extraordinary expenses, as determined under generally accepted accounting principals, or acquired fund fees and expenses. The contractual expense waivers and fee reimbursements will continue in effect indefinitely unless terminated by the Trustees, including a majority of the Disinterested Trustees.
FUND PERCENTAGE - ---- ---------- 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 International Small-Cap Class A. 1.90 International Small-Cap Class B. 2.55 International Small-Cap Class C. 2.55
Any voluntary or contractual waivers and/or reimbursements made by SunAmerica are subject to recoupment from the Funds within the following two years of making such waivers or reimbursements, provided that the Funds are able to effect such payment to SunAmerica and remain in compliance with the foregoing expense limitations. For the six months ended March 31, 2010, pursuant to the contractual and voluntary expense limitations referred to above, SunAmerica has waived or reimbursed expenses as follows:
FUND - ---- International Equity Class A.... $ -- International Equity Class B.... 5,102 International Equity Class C.... 1,003 International Equity Class I.... 1,883 Value Fund Class A.............. 11,741 Value Fund Class B.............. 5,573 Value Fund Class C.............. 3,844 Value Fund Class I+............. 1,032 Value Fund Class Z.............. 2,083 International Small-Cap Class A. 53,330 International Small-Cap Class B. 6,401 International Small-Cap Class C. 6,566
- -------- + See Note 1. 29 SUNAMERICA EQUITY FUNDS NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2010 -- (UNAUDITED) (CONTINUED) For the six months ended March 31, 2010, the amounts recouped by SunAmerica are as follows:
CLASS OTHER SPECIFIC EXPENSES EXPENSES FUND RECOUPED RECOUPED - ---- -------- -------- International Equity Class B. $ -- $ 1,702 International Equity Class C. -- 1,206 Value Fund Class A........... 12,803 41,867 Value Fund Class B........... 2,120 1,869 Value Fund Class C........... 3,073 8,256 Value Fund Class Z........... 2,795 11,202
At March 31, 2010, expenses previously waived and/or reimbursed by SunAmerica during the prior two years that remain subject to recoupment are as follows:
CLASS OTHER SPECIFIC EXPENSES EXPENSES FUND REIMBURSED REIMBURSED - ---- ---------- ---------- International Equity Class A......... $ 492 $ -- International Equity Class B......... 99 35,510 International Equity Class C......... 146 23,749 International Equity Class I......... 57 17,240 Value Fund Class A................... 105,524 48,058 Value Fund Class B................... 28,537 34,356 Value Fund Class C................... 19,573 22,534 Value Fund Class Z................... 33,935 3,847 International Small-Cap Fund Class A. 88,933 202,177 International Small-Cap Fund Class B. 2,401 28,547 International Small-Cap Fund Class C. 9,062 33,192
The Trust, on behalf of each Fund, has entered into a Distribution Agreement with SunAmerica Capital Services, Inc. ("SACS" or the "Distributor"), an affiliate of the Adviser. Each Fund has adopted a Distribution Plan on behalf of each class of shares (other than Class I and Class Z shares) (each a "Plan" and collectively, the "Plans") in accordance with the provisions of Rule 12b-1 under the 1940 Act, hereinafter referred to as the "Class A Plan," "Class B Plan" and "Class C Plan." In adopting the Plans, the Trustees determined that there was a reasonable likelihood that each such Plan would benefit the Fund and the shareholders of the respective class. The sales charge and distribution fees of a particular class will not be used to subsidize the sale of shares of any other class. Under the Class A Plan, Class B Plan and Class C Plan, the Distributor receives a distribution fee from a Fund at an annual rate of 0.10%, 0.75% and 0.75%, respectively, of the average daily net assets of the Fund's Class A, Class B and Class C shares to compensate the Distributor and certain securities firms for providing sales and promotional activities for distributing that class of shares. The distribution costs for which the Distributor may be compensated include fees paid to broker-dealers that have sold Fund shares, commissions and other expenses such as those incurred for sales literature, prospectus printing and distribution and compensation to wholesalers. It is possible that in any given year the amount paid to the Distributor under each Class' Plan may exceed the Distributor's distribution costs as described above. The Plans provide that the Class A, Class B and Class C shares of each Fund will pay the Distributor an account maintenance fee up to an annual rate of 0.25% of the aggregate average daily net assets of such class of shares for payments to compensate the Distributor and certain securities firms for account maintenance activities. Accordingly, for the six months ended March 31, 2010, SACS received fees (see Statement of Operations) based upon the aforementioned rates. In addition, SACS is paid a fee of 0.25% of average daily net assets of Class I shares in connection with providing administrative and shareholder services to Class I shareholders. For the six months ended March 31, 2010, SACS earned fees (see Statement of Operations) based upon the aforementioned rates. 30 SUNAMERICA EQUITY FUNDS NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2010 -- (UNAUDITED) (CONTINUED) SACS receives sales charges on each Fund's Class A shares, portions of which are reallocated to affiliated broker-dealers and non-affiliated broker-dealers. SACS also receives the proceeds of contingent deferred sales charges paid by investors in connection with certain redemptions of each Fund's Class A, Class B and Class C shares. SACS has advised the Funds that for the six months ended March 31, 2010, 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 AFFILIATED DEFERRED DEFERRED DEFERRED SALES BROKER- NON-AFFILIATED SALES SALES SALES FUND CHARGES DEALERS BROKER-DEALERS CHARGES CHARGES CHARGES - ---- ------- ---------- -------------- ---------- ---------- ---------- International Equity.... $26,528 $7,428 $15,636 $-- $10,871 $334 Value................... 26,527 8,206 14,516 -- 13,862 813 International Small-Cap. 3,777 1,108 2,042 -- 182 --
The Trust has entered into a Service Agreement with SunAmerica Fund Services, Inc. ("SAFS"), an affiliate of the Adviser. Under the Service Agreement, SAFS performs certain shareholder account functions by assisting the Funds' transfer agent in connection with the services that it offers to the shareholders of the Funds. Pursuant to the Service Agreement, the Funds (except for Class Z shares of the Funds) pay a fee to SAFS for services rendered based upon an annual rate of 0.22% of average daily net assets. No portion of this fee is paid or reimbursed by the Class Z shares, however, Class Z shares pay all direct transfer agency fees and out-of-pocket expenses relating to Class Z shares. For the six months ended March 31, 2010, the Funds incurred the following expenses which are included in transfer agent fees payable in the Statement of Asset and Liabilities and in transfer agent fees and expenses in the Statement of Operations to compensate SAFS pursuant to the terms of the Service Agreement.
EXPENSE PAYABLE AT MARCH 31, 2010 -------------------------------- --------------------------- CLASS CLASS CLASS FUND CLASS A CLASS B CLASS C CLASS I CLASS A B C I - ---- -------- ------- ------- ------- ------- ------ ------ ----- International Equity.... $127,670 $13,474 $26,918 $4,602 $21,252 $2,128 $4,411 $728 Value................... 107,688 17,517 25,612 4 19,850 2,960 4,633 -- International Small-Cap. 71,510 348 793 -- 11,927 58 140 --
At March 31, 2010, the following affiliates owned a percentage of the outstanding shares of the following funds; Focused Multi-Asset Strategy Portfolio, Focused Balanced Strategy Portfolio and Focused Equity Strategy Portfolio owned 30.8%, 6.1%, and 7.7% of the SunAmerica International Equity Fund, respectively; Focused Multi-Asset Strategy Portfolio and American Home Assurance Company owned 73.4% and 21.6% of SunAmerica International Small-Cap Fund, respectively; and Focused Multi-Asset Strategy Portfolio and Focused Equity Strategy Portfolio owned 6.9% and 14.3%, respectively of SunAmerica Value Fund. On March 4, 2009, AIG, the ultimate parent of SunAmerica, SACS, and SAFS, issued and sold to the AIG Credit Facility Trust, a trust established for the sole benefit of the United States Treasury (the "Trust"), 100,000 shares of AIG's Series C Perpetual, Convertible, Participating Preferred Stock (the "Stock") for an aggregate purchase price of $500,000, with an understanding that additional and independently sufficient consideration was also furnished to AIG by the Federal Reserve Bank of New York (the "FRBNY") in the form of its lending commitment (the "Credit Facility") under the Credit Agreement, dated as of September 22, 2008, between AIG and the FRBNY. The Stock has preferential liquidation rights over AIG common stock, and, to the extent permitted by law, votes with AIG's common stock on all matters submitted to AIG's shareholders. The Trust has approximately 79.8% of the aggregate voting power of AIG's common stock and is entitled to approximately 79.8% of all dividends paid on AIG's common stock, in each case treating the Stock as if converted. The Stock will remain outstanding even if the Credit Facility is repaid in full or otherwise terminates. 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 six months ended March 31, 2010, the amount of expense reductions received by each Fund, used to offset the Fund's non-affiliated expenses were as follows:
TOTAL EXPENSE FUND REDUCTIONS - ---- ------------- Value. $7,488
31 SUNAMERICA EQUITY FUNDS NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2010 -- (UNAUDITED) (CONTINUED) Note 6. Purchases and Sales of Investment Securities The cost of purchases and proceeds from sales and maturities of long-term investments during the six months ended March 31, 2010, were as follows:
INTERNATIONAL INTERNATIONAL EQUITY VALUE SMALL-CAP FUND FUND FUND ------------- ------------ ------------- Purchases (excluding U.S. government securities)............ $217,193,558 $102,296,163 $29,948,883 Sales and maturities (excluding U.S. government securities). 237,176,579 117,101,594 35,764,013 Purchases of U.S. government securities..................... -- -- -- Sales and maturities of U.S. government securities.......... -- -- --
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 at March 31, 2010:
INTERNATIONAL INTERNATIONAL EQUITY VALUE SMALL-CAP FUND FUND FUND ------------- ------------ ------------- Cost (tax basis)........................... $141,632,841 $162,388,658 $54,047,053 ============ ============ =========== Appreciation............................... 13,983,315 16,480,472 14,498,624 Depreciation............................... (4,330,367) (10,608,371) (2,722,816) ------------ ------------ ----------- Net unrealized appreciation (depreciation). $ 9,652,948 $ 5,872,101 $11,775,808 ============ ============ ===========
The following details the tax basis of distributions as well as the components of distributable earnings. The tax character of distributions paid may differ from the character of distributions shown on the Statement of Changes in Net Assets due to short-term capital gains being treated as ordinary income for tax purposes. The tax basis components of distributable earnings differ from the amounts reflected in the Statement of Assets and Liabilities due to temporary book/tax differences primarily arising from wash sales, post October losses and derivative transactions.
FOR THE YEAR ENDED SEPTEMBER 30, 2009 ------------------------------------------------------------------------ DISTRIBUTABLE EARNINGS TAX DISTRIBUTIONS ---------------------------------------- ------------------------------ LONG-TERM GAINS/CAPITAL UNREALIZED LONG-TERM ORDINARY LOSS APPRECIATION ORDINARY CAPITAL RETURN OF FUND INCOME CARRYOVER (DEPRECIATION)* INCOME GAINS CAPITAL - ---- ---------- ------------- --------------- ---------- --------- --------- International Equity.... $ -- $(98,567,104)@ $17,867,783 $ 987,723 $-- $150,500 Value................... 799,696 (19,719,989) (3,501,947) 2,291,939 -- -- International Small-Cap. 2,219,408 (6,116,326) 13,888,948 11,219 -- --
- -------- * Unrealized appreciation (depreciation) includes amounts for derivatives and other assets and liabilities denominated in foreign currency. @ Includes realized capital losses of $10,093,998 which as the result of the merger may be subject to annual limitation imposed by the Internal Revenue Code. For Federal income tax purposes, the Funds indicated below have capital loss carryforwards, which expire in the year indicated, as of September 30, 2009, which are available to offset future capital gains, if any:
CAPITAL LOSS CARRYFORWARD ----------------------------------- FUND 2015 2016 2017 - ---- ----------- ----------- ----------- International Equity*... $46,684,225 $25,210,425 $16,578,456 Value................... -- -- 19,719,989 International Small-Cap. -- -- 6,116,326
- -------- * 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. 32 SUNAMERICA EQUITY FUNDS NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2010 -- (UNAUDITED) (CONTINUED) Note 8. Capital Share Transactions Transactions in capital shares of each class of each fund were as follows:
INTERNATIONAL EQUITY FUND ------------------------------------------------------------------------------------------------ CLASS A CLASS B -------------------------------------------------- -------------------------------------------- FOR THE FOR THE SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE MARCH 31, 2010 YEAR ENDED MARCH 31, 2010 YEAR ENDED (UNAUDITED) SEPTEMBER 30, 2009 (UNAUDITED) SEPTEMBER 30, 2009 ------------------------ ------------------------ --------------------- --------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ------------ ---------- ------------ -------- ----------- -------- ----------- Shares sold (1)(2)(3)........ 255,602 $ 3,040,278 597,710 $ 5,571,131 36,027 $ 395,101 105,795 $ 907,568 Shares issued in merger+..... -- -- 9,552,075 84,069,949 -- -- 928,841 7,600,518 Reinvested dividends......... 51,192 610,725 88,444 769,459 -- -- 10,395 84,199 Shares redeemed (1)(2)(4)(5). (1,460,460) (17,346,530) (3,405,180) (30,007,709) (249,979) (2,745,293) (647,154) (5,399,341) ---------- ------------ ---------- ------------ -------- ----------- -------- ----------- Net increase (decrease)...... (1,153,666) $(13,695,527) 6,833,049 $ 60,402,830 (213,952) $(2,350,192) 397,877 $ 3,192,944 ========== ============ ========== ============ ======== =========== ======== =========== INTERNATIONAL EQUITY FUND ------------------------------------------------------------------------------------------------ CLASS C CLASS I -------------------------------------------------- -------------------------------------------- FOR THE FOR THE SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE MARCH 31, 2010 YEAR ENDED MARCH 31, 2010 YEAR ENDED (UNAUDITED) SEPTEMBER 30, 2009 (UNAUDITED) SEPTEMBER 30, 2009 ------------------------ ------------------------ --------------------- --------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ------------ ---------- ------------ -------- ----------- -------- ----------- Shares sold.................. 167,875 $ 1,867,275 268,142 $ 2,379,512 -- $ -- 105,467 $ 946,917 Shares issued in merger+..... -- -- 1,966,816 16,071,009 -- -- -- -- Reinvested dividends......... -- -- 14,687 118,818 1,963 23,695 12,701 111,265 Shares redeemed (3)(4)(5).... (398,063) (4,378,792) (1,147,561) (9,508,735) (94,651) (1,117,710) (102,042) (956,722) ---------- ------------ ---------- ------------ -------- ----------- -------- ----------- Net increase (decrease)...... (230,188) $ (2,511,517) 1,102,084 $ 9,060,604 (92,688) $(1,094,015) 16,126 $ 101,460 ========== ============ ========== ============ ======== =========== ======== ===========
- -------- (1)For the six months ended March 31, 2010, includes automatic conversion of 103,451 shares of Class B shares in the amount of $1,137,410 to 95,921 shares of Class A shares in the amount of $1,137,410. (2)For the year ended September 30, 2009, includes automatic conversion of 237,710 shares of Class B shares in the amount of $2,002,438 to 220,396 shares of Class A shares in the amount of $2,002,438. (3)For the year ended September 30, 2009, includes automatic conversion of 7,454 shares of Class C shares in the amount of $60,644 to 6,898 shares of Class A shares in the amount of $60,644. (4)For the six months ended March 31, 2010, net of redemption fees of $2,616, $280, $551, and $96 for Class A, Class B, Class C and Class I shares, respectively. (5)For the year ended September 30, 2009, net of redemption fees of $4,152, $571, $972, and $342 for Class A, Class B, Class C and Class I shares, respectively. + See Note 2. 33 SUNAMERICA EQUITY FUNDS NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2010 -- (UNAUDITED) (CONTINUED)
VALUE FUND ---------------------------------------------------------------------------------------------- CLASS A CLASS B ------------------------------------------------ -------------------------------------------- FOR THE FOR THE SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE MARCH 31, 2010 YEAR ENDED MARCH 31, 2010 YEAR ENDED (UNAUDITED) SEPTEMBER 30, 2009 (UNAUDITED) SEPTEMBER 30, 2009 ---------------------- ------------------------ --------------------- --------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT --------- ----------- ---------- ------------ -------- ----------- -------- ----------- Shares sold (1)(2)(3).... 271,117 $ 3,000,954 860,978 $ 8,101,106 24,192 $ 250,513 101,838 $ 912,273 Shares issued in merger+. 4,993,891 54,815,779 -- -- 668,744 6,871,725 -- -- Reinvested dividends..... 60,401 665,014 125,403 1,175,028 2,477 25,635 24,162 213,106 Shares redeemed (1)(2)... (820,179) (9,048,542) (2,270,671) (20,866,202) (347,425) (3,601,713) (805,033) (7,047,624) --------- ----------- ---------- ------------ -------- ----------- -------- ----------- Net increase (decrease).. 4,505,230 $49,433,205 (1,284,290) $(11,590,068) 347,988 $ 3,546,160 (679,033) $(5,922,245) ========= =========== ========== ============ ======== =========== ======== =========== VALUE FUND ---------------------------------------------------------------------------------------------- CLASS C CLASS I ------------------------------------------------ -------------------------------------------- FOR THE FOR THE SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE MARCH 31, 2010 YEAR ENDED MARCH 31, 2010 YEAR ENDED (UNAUDITED) SEPTEMBER 30, 2009 (UNAUDITED) SEPTEMBER 30, 2009 ---------------------- ------------------------ --------------------- --------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT --------- ----------- ---------- ------------ -------- ----------- -------- ----------- Shares sold.............. 33,303 $ 348,558 137,154 $ 1,236,276 -- $ -- -- $ -- Shares issued in merger+. 1,711,976 17,585,830 -- -- -- -- -- -- Reinvested dividends..... 3,285 33,995 14,733 129,943 -- -- 51 478 Shares redeemed (3)...... (383,888) (3,973,679) (415,028) (3,645,150) (1,379) (15,201) (598) (5,164) --------- ----------- ---------- ------------ -------- ----------- -------- ----------- Net increase (decrease).. 1,364,676 $13,994,704 (263,141) $ (2,278,931) (1,379) $ (15,201) (547) $ (4,686) ========= =========== ========== ============ ======== =========== ======== =========== VALUE FUND ------------------------------------------------ CLASS Z ------------------------------------------------ FOR THE SIX MONTHS ENDED FOR THE MARCH 31, 2010 YEAR ENDED (UNAUDITED) SEPTEMBER 30, 2009 ---------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT --------- ----------- ---------- ------------ Shares sold.............. 167,952 $ 1,944,676 466,705 $ 4,638,603 Shares issued in merger+. -- -- -- -- Reinvested dividends..... 18,096 209,196 59,903 588,253 Shares redeemed.......... (186,830) (2,170,035) (589,588) (5,746,783) --------- ----------- ---------- ------------ Net increase (decrease).. (782) $ (16,163) (62,980) $ (519,927) ========= =========== ========== ============
- -------- (1)For the six months ended March 31, 2010, includes automatic conversion of 136,416 shares of Class B shares in the amount of $1,415,532 to 127,943 shares of Class A shares in the amount of $1,415,532. (2)For the year ended September 30, 2009, includes automatic conversion of 394,962 shares of Class B shares in the amount of $3,407,930 to 370,955 shares of Class A shares in the amount of $3,407,930. (3)For the year ended September 30, 2009, includes automatic conversion of 8,112 shares of Class C shares in the amount of $67,882 to 7,615 shares of Class A shares in the amount of $67,882. + See Note 2. 34 SUNAMERICA EQUITY FUNDS NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2010 -- (UNAUDITED) (CONTINUED)
INTERNATIONAL SMALL-CAP FUND ----------------------------------------------------------------------------------- CLASS A CLASS B --------------------------------------------- ------------------------------------ FOR THE FOR THE SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE MARCH 31, 2010 YEAR ENDED MARCH 31, 2010 YEAR ENDED (UNAUDITED) SEPTEMBER 30, 2009 (UNAUDITED) SEPTEMBER 30, 2009 --------------------- ---------------------- ---------------- ------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- ----------- --------- ----------- ------ -------- ------- --------- Shares sold (1)(2)........... 67,826 $ 568,486 6,912,481 $42,180,929 3,404 $ 27,973 16,736 $ 116,273 Reinvested dividends......... 270,947 2,219,058 1,826 11,121 1,059 8,543 -- -- Shares redeemed (1)(2)(3)(4). (930,191) (7,857,559) (719,479) (4,748,220) (4,483) (36,113) (55,489) (358,727) -------- ----------- --------- ----------- ------ -------- ------- --------- Net increase (decrease)...... (591,418) $(5,070,015) 6,194,828 $37,443,830 (20) $ 403 (38,753) $(242,454) ======== =========== ========= =========== ====== ======== ======= ========= INTERNATIONAL SMALL-CAP FUND --------------------------------------------- CLASS C --------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE MARCH 31, 2010 YEAR ENDED (UNAUDITED) SEPTEMBER 30, 2009 --------------------- ---------------------- SHARES AMOUNT SHARES AMOUNT -------- ----------- --------- ----------- Shares sold.................. 12,490 $ 100,861 72,501 $ 446,670 Reinvested dividends......... 2,062 16,643 -- -- Shares redeemed (3)(4)....... (13,503) (109,696) (251,581) (1,518,605) -------- ----------- --------- ----------- Net increase (decrease)...... 1,049 $ 7,808 (179,080) $(1,071,935) ======== =========== ========= ===========
- -------- (1)For the six months ended March 31, 2010, includes automatic conversion of 1,016 shares of Class B shares in the amount of $8,275 to 1,000 shares of Class A shares in the amount of $8,275. (2)For the year ended September 30, 2009, includes automatic conversion of 3,490 shares of Class B shares in the amount of $24,015 to 3,424 shares of Class A shares in the amount of $24,015. (3)For the six months ended March 31, 2010, net of redemption fees of $361, $2, and $4 for Class A, Class B, and Class C shares, respectively. (4)For the year ended September 30, 2009, net of redemption fees of $2,877, $17, and $57 for Class A, Class B, and Class C shares, respectively. Note 9. Line of Credit The SunAmerica family of mutual funds has established a $75 million committed and $50 million uncommitted line of credit with State Street Bank and Trust Company, the Funds' custodian. Interest is currently payable at the higher of the Federal Funds Rate or London Interbank Offered Rate plus 125 basis points on the committed line and State Street Bank and Trust Company's discretionary bid rate on the uncommitted line of credit. There is also a commitment fee of 15 basis points per annum on the daily unused portion of the committed line of credit which is included in other expenses on the Statement of Operations. Borrowings under the line of credit will commence when the respective Fund's cash shortfall exceeds $100,000. For the six months ended March 31, 2010, the following Funds had borrowings:
DAYS INTEREST AVERAGE WEIGHTED FUND OUTSTANDING CHARGES DEBT AVERAGE International Equity.. 11 $258 $591,132 1.43% International Small-Cap............ 7 123 438,711 1.44
At March 31, 2010, there were no borrowings outstanding. 35 SUNAMERICA EQUITY FUNDS NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 2010 -- (UNAUDITED) (CONTINUED) 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 SunAmerica or an affiliate. The interfund lending program allows the participating Funds to borrow money from and loan money to each other for temporary or emergency purposes. An interfund loan will be made under this facility only if the participating Funds receive a more favorable interest rate than would otherwise be available from a typical bank for a comparable transaction. For the six months ended March 31, 2010, none of the Funds participated in this program. Note 11. Trustees Retirement Plan The Trustees of the Trust have adopted the SunAmerica Disinterested Trustees' and Directors' Retirement Plan (the "Retirement Plan") effective January 1, 1993, as amended, 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 SunAmerica mutual funds (the "Adopting Funds") or has attained the age of 60 while a Trustee and completed five (5) consecutive years of service as a Trustee of any Adopting Fund (an "Eligible Trustee"). Pursuant to the Retirement Plan, an Eligible Trustee may receive benefits upon (i) his or her death or disability while a Trustee or (ii) the termination of his or her tenure as a Trustee, other than removal for cause from each of the Adopting Funds with respect to which he or she is an Eligible Trustee. As of each of the first 10 birthdays after becoming a Participant and on which he or she is both a Trustee and Participant, each Eligible Trustee will be credited with an amount equal to 50% of his or her regular fees (excluding committee fees) for services as a Disinterested Trustee of each Adopting Fund for the calendar year in which such birthday occurs. In addition, an amount equal to 8.50% of any amounts credited under the preceding statement during prior years is added to each Eligible Trustee's account. The rights of any Participant to benefits under the Retirement Plan shall be an unsecured claim against the assets of the Adopting Funds. An Eligible Trustee may receive any benefits payable under the Retirement Plan, at his or her election, either in one lump sum or in up to 15 annual installments. Any undistributed amounts shall continue to accrue interest at 8.50%. Effective December 3, 2008, the Retirement Plan was amended to, among other things, (1) freeze the Retirement Plan as to future accruals for active Participants as of December 31, 2008, (2) prohibit Disinterested Trustees from first becoming participants in the Retirement Plan after December 31, 2008 and (3) permit active Participants to elect to receive a distribution of their entire Retirement Plan account balance in 2009. The freeze on future accruals does not apply to Participants that have commenced receiving benefits under the Retirement Plan on or before December 31, 2008. The following amounts for the Retirement Plan Liabilities are included in the 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, 2010 - ---- ----------------------------------------------- International Equity. $3,994 $ 60 $469 Value................ 3,742 219 819
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, 2010, the International Equity Fund had approximately 17.9% and 16.5% of its net assets invested in equity securities of companies domiciled in Germany and Japan, respectively. At March 31, 2010, the International Small-Cap Fund had approximately 19.0% of its net assets invested in equity securities of companies domiciled in Japan. 36 SUNAMERICA EQUITY FUNDS RESULTS OF SPECIAL SHAREHOLDER MEETINGS -- MARCH 31, 2010 -- (UNAUDITED) INTERNATIONAL EQUITY FUND A special meeting of shareholders of the International Equity Fund was held on February 16, 2010 (the "International Equity Meeting"). At the International Equity Meeting, shareholders approved (i) a new subadvisory agreement between SunAmerica and PineBridge and (ii) the operation of the International Equity Fund in a manner consistent with the exemptive order received from the Securities and Exchange Commission that permits SunAmerica to, among other things, enter into or amend subadvisory agreements with unaffiliated subadvisers upon approval by the Board of Trustees, but without obtaining shareholder approval (the "Manager of Managers Proposal"). The voting results were as follows: To approve a new subadvisory agreement between SunAmerica and PineBridge:
FOR AGAINST ABSTAIN --- ------- ------- 6,222,727 412,805 449,305
To approve the Manager of Managers Proposal:
FOR AGAINST ABSTAIN --- ------- ------- 5,917,807 719,156 447,870
INTERNATIONAL SMALL-CAP FUND A special meeting of shareholders of the International Small-Cap Fund was held on February 16, 2010 (the "International Small-Cap Meeting"). At the International Small-Cap Meeting, shareholders approved a new subadvisory agreement between SunAmerica and PineBridge. The voting results were as follows: To approve a new subadvisory agreement between SunAmerica and PineBridge:
FOR AGAINST ABSTAIN --- ------- ------- 4,251,203 1,422,214 210,896
37 SUNAMERICA EQUITY FUNDS APPROVAL OF ADVISORY AGREEMENTS -- MARCH 31, 2010 -- (unaudited) APPROVAL OF NEW SUBADVISORY AGREEMENTS At an in-person meeting held on November 9, 2009, the Board of Trustees (the "Board" the members of which are referred to as "Trustees") of the Trust, including the Disinterested Trustees, approved new subadvisory agreements between SunAmerica and PineBridge with respect to each of the International Equity Fund and International Small-Cap Fund (each a "Fund" and together, the "Funds"), subject to shareholder approval. These subadvisory agreements are each referred to as a "New Subadvisory Agreement" and collectively as the "New Subadvisory Agreements"). The Board approved the New Subadvisory Agreements in response to the anticipated termination of the prior subadvisory agreements between SunAmerica and AIG Global Investment Corp. ("AIGGIC") with respect to the Funds (the "Prior Subadvisory Agreements") as a result of the announcement that, on September 5, 2009, AIG entered into an agreement to sell a portion of AIG Investments, including its interest in AIGGIC, to Bridge Partners, L.P. ("Bridge"), a partnership formed by the Pacific Century Group ("PCG"), an Asia-based private investment group (the "Transaction"). In preparation for the closing of the Transaction, AIG merged AIGGIC with and into PineBridge on December 31, 2009. Shareholders of each of the Funds approved a respective New Subadvisory Agreement at a special meeting of shareholders held on February 16, 2010 and the Transaction closed on March 29, 2010. Upon the closing of the Transaction, PineBridge became an indirect, wholly-owned subsidiary of Bridge. The closing of the Transaction resulted in an "assignment" of the Prior Subadvisory Agreements which, under the terms of the Prior Subadvisory Agreements and as required by law, resulted in the automatic termination of the Prior Subadvisory Agreements. The New Subadvisory Agreements, which became effective upon the closing of the Transaction, will remain in effect until August 31, 2011, and are subject to continuance thereafter for successive one-year periods in the manner required by the 1940 Act and the rules thereunder. In accordance with Section 15(c) of the 1940 Act, the Board requested, and SunAmerica and AIGGIC provided, materials relating to the Board's consideration of whether to approve the New Subadvisory Agreements. These materials included (a) information concerning the Transaction, including the corporate restructuring of AIGGIC into PineBridge in anticipation of the closing of the Transaction; (b) a summary of the services to be provided by PineBridge; (c) information independently compiled by Lipper on fees and expenses of the Funds as compared to a representative group of similar funds as determined by Lipper; (d) information provided by AIGGIC on fees and expenses of funds with similar investment styles as the Funds; (e) performance information of the Funds as well as performance information of funds and accounts managed by AIGGIC with investment policies and/or strategies similar to the Funds; (f) a discussion of indirect benefits to PineBridge; (g) a report by SunAmerica of PineBridge's compliance policies and procedures; (h) a summary of brokerage and soft dollar practices; and (i) a discussion of the key personnel of PineBridge. In determining whether to approve the New Subadvisory Agreements, the Board, including the Disinterested Trustees, considered the following information: NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED BY PINEBRIDGE. The Board, including the Disinterested Trustees, considered the nature, extent and quality of services to be provided to the Funds by PineBridge. The Board observed that they had a long-standing relationship with AIGGIC. The Board also considered information relating to the Transaction and representations from AIGGIC and PCG, which would be the ultimate parent company of PineBridge, that PCG was committed to PineBridge and would devote sufficient resources to PineBridge. The Board concluded that the services to be provided by PineBridge would be identical to the services that AIGGIC has provided to the Funds, which would include investment management services such as investment research, advice and supervision, and determining which securities will be purchased or sold by the Funds, subject to the oversight and review of SunAmerica. In addition, the Board reviewed AIGGIC's history, structure, size, visibility and resources, which are needed to attract and retain highly qualified investment professionals, and considered the resources PineBridge was expected to have under its new ownership structure. The Board also reviewed the personnel that would be responsible for providing subadvisory services to the Funds and considered that the key investment personnel at AIGGIC that were responsible for managing the Funds would continue to manage the Funds as portfolio managers at PineBridge. The Board also considered that certain other key personnel of AIGGIC would continue with PineBridge and that PCG anticipated allowing PineBridge to manage its day-to-day operations. In light of these considerations, the Board concluded that PineBridge would be able to continue to provide a high level of service to the Funds. The Board concluded, based on the materials provided and its prior experience with AIGGIC, that: (i) PineBridge would be able to retain high quality portfolio managers and other investment personnel; (ii) PineBridge would continue to exhibit a high level of diligence and attention to detail in carrying out its responsibilities as a subadviser; and (iii) PineBridge would be responsive to requests of the Board and of SunAmerica. The Board concluded that AIGGIC had developed internal policies and procedures for 38 SUNAMERICA EQUITY FUNDS APPROVAL OF ADVISORY AGREEMENTS -- MARCH 31, 2010 -- (UNAUDITED) (CONTINUED) monitoring compliance with the investment objectives, policies and restrictions of the Funds as set forth in its prospectus, and that such policies and procedures were expected to continue. The Board also concluded that it was satisfied with AIGGIC's code of ethics and compliance and regulatory history. The Board concluded that the nature and extent of services to be provided by PineBridge to the Funds under the New Subadvisory Agreements were reasonable and appropriate in relation to the proposed subadvisory fees and that the quality of services was reasonably expected to be high. INVESTMENT PERFORMANCE. The Board, including the Disinterested Trustees, considered the investment performance of AIGGIC. In connection with its review, the Board received information prepared by AIGGIC regarding the performance information of the International Small-Cap Fund as compared to a variable annuity fund subadvised by AIGGIC whose investment policies and/or strategies are similar to those of the International Small-Cap Fund. The Board noted that the performance of this comparable fund was similar to the performance of the International Small-Cap Fund, with the exception of the three-year period ended September 30, 2009, where the performance of the comparable fund outperformed the International Small-Cap Fund. The Board did not review comparisons of other account information for the International Equity Fund as AIGGIC reported that it did not act as the subadviser to any other registered investment companies with investment policies and/or strategies substantially similar to that of the International Equity Fund. The Board also reviewed certain composite performance information relating to AIGGIC's institutional small-cap equity mandates. The Board also reviewed Lipper reports with respect to the Funds that were provided at the August 25-26, 2009 Board meeting in connection with the annual renewal of the Funds' Prior Subadvisory Agreements. The Lipper reports provided performance information through May 31, 2009 with respect to the Funds and a representative group of similar funds as determined by Lipper. The Board also considered the performance information of the Funds through September 30, 2009. With respect to the International Equity Fund, the Board considered that the International Equity Fund ranked in the fourth quintile of its Peer Group for the five-year period ended May 31, 2009 and ranked in the fifth quintile for the one-, two-, three- and four-year periods. The Board also considered that the International Equity Fund ranked in the fourth quintile of its larger Peer Universe for the ten-year period ended May 31, 2009. The Board further considered that the Fund's performance over the six-month period ended September 30, 2009 had improved. Nonetheless, the Board concluded that the Fund's performance does not meet the Board's expectations and that it would continue to monitor the performance of this Fund. The Board noted that it may consider further actions if the Fund's performance does not meet the Board's expectations in the future. With respect to the International Small-Cap Fund, the Board noted that the Fund has a relatively small Peer Group; however, the Board considered that the Fund ranked in the fourth quintile of its Peer Group for the two-year period ended May 31, 2009 and ranked in the fifth quintile for the one-year period. The Board also considered that the Fund ranked in the fifth quintile of its larger Peer Universe for the three-year period ended May 31, 2009. The Board further considered that the Fund's performance over the six-month period ended September 30, 2009 had improved. Nonetheless, the Board concluded that the Fund's performance does not meet the Board's expectations and that it would continue to monitor the performance of this Fund. The Board noted that it may consider further actions if the Fund's performance does not meet the Board's expectations in the future. CONSIDERATION OF THE SUBADVISORY FEES AND THE COST OF THE SERVICES AND PROFITS TO BE REALIZED BY PINEBRIDGE AND ITS AFFILIATES FROM THE RELATIONSHIP WITH THE FUNDS. The Board, including the Disinterested Trustees, received and reviewed information regarding the fees to be paid by SunAmerica to PineBridge pursuant to the New Subadvisory Agreements. The Board examined this information in order to determine the reasonableness of the fees in light of the nature and quality of services to be provided and any potential additional benefits to be received by PineBridge or its affiliates in connection with providing such services to the Funds. To assist in analyzing the reasonableness of the subadvisory fees under the New Subadvisory Agreements, which are identical to the subadvisory fees of the Prior Subadvisory Agreements, the Board reviewed the Lipper reports referenced above that were provided at the August 25-26, 2009 Board meeting in connection with the annual renewal of the Funds' Prior Subadvisory Agreements. The Lipper reports addressed the expense information with respect to the Funds and a representative group of similar funds as determined by Lipper. In considering the reasonableness of the subadvisory fee to be paid by SunAmerica to PineBridge on behalf of the Funds, the Board reviewed expense comparisons by Lipper including contractual and actual subadvisor fees as a portion of actual net 39 SUNAMERICA EQUITY FUNDS APPROVAL OF ADVISORY AGREEMENTS -- MARCH 31, 2010 -- (UNAUDITED) (CONTINUED) management fees. The Board compared the Funds' contractual subadvisory fees to those of other funds within their Peer Group and Peer Universe as a guide to help assess the subadvisory fees to be paid to PineBridge. The Board noted that the Peer Group information as a whole was useful in assessing whether the subadviser was providing services at a cost that was competitive with other similar funds. The Board also considered information provided by AIGGIC on fees relating to the variable annuity fund subadvised by AIGGIC whose investment policies and/or strategies are substantially similar to those of the International Small-Cap Fund, and noted that the fees payable to AIGGIC with respect to the respective comparable fund were similar to those payable to AIGGIC for the International Small-Cap Fund. The Board further reviewed the standard investment management fee schedule for AIGGIC's small-cap composite accounts and noted that the standard fees were higher than the subadvisory fee payable to AIGGIC for the International Small-Cap Fund but observed that these accounts were not registered investment companies and were generally not subadvised accounts, and further that such fees could vary among accounts. The Board also considered that the subadvisory fees are paid by SunAmerica out of its management fee and not by the Funds, and that subadvisory fees may vary widely within a Peer Group for various reasons, including market pricing demands, existing relationships, experience and success, and individual client needs. The Board noted that the subadvisory fees paid under the Prior Subadvisory Agreements and the proposed subadvisory fees that will be paid to PineBridge under the New Subadvisory Agreements are identical. The Board also considered the amount of subadvisory fees paid out by SunAmerica and the amount of the management fees which it retained. The Board further considered whether there were any collateral or "fall-out" benefits that PineBridge and its affiliates may derive as a result of their relationship with the Funds. The Board concluded that any such benefits would be de minimis and would not impact the reasonableness of the management fees. The Board also reviewed financial information and other reports from PineBridge and considered whether PineBridge would have the financial resources necessary to attract and retain high quality investment management personnel and to provide a high quality of services. In connection with its review, the Board received the consolidated financial statements of AIG and its subsidiaries, including AIGGIC, for the year ended December 31, 2008. The Board also received pro forma financial information for Bridge. The Board concluded that PineBridge had the financial resources necessary to perform its obligations under the New Subadvisory Agreements and would provide the Funds with high quality services. The Board also concluded that the subadvisory fees were reasonable in light of the factors discussed above. ECONOMIES OF SCALE. The Board did not review specific information regarding whether there would be economies of scale with respect to PineBridge's management of the Funds because it regards that information as less relevant at the subadviser level. Rather, the Board noted that it considered information regarding economies of scale in the context of the renewal of the Investment Advisory and Management Agreement with SunAmerica. OTHER FACTORS. In consideration of the New Subadvisory Agreements, the Board also received information regarding PineBridge's brokerage and soft dollar practices. The Board considered that SunAmerica and PineBridge are responsible for decisions to buy and sell securities, selection of broker-dealers and negotiation of commission rates. CONCLUSION. After a full and complete discussion, the Board approved the New Subadvisory Agreements for each of the International Equity Fund and International Small-Cap Fund. Based upon their evaluation, the Board, including its Disinterested Trustees, was satisfied that the terms of the New Subadvisory Agreements were fair and reasonable and in the best interests of each of the Funds and its shareholders. In arriving at a decision to approve the New Subadvisory Agreements, the Board did not identify a single factor or group of factors as all-important or controlling, but considered all factors together. The Disinterested Trustees were also assisted by the advice of independent counsel in making these determinations. 40 [LOGO] 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 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 John T. Genoy, President CUSTODIAN AND TRANSFER currently effective and Chief Executive AGENT pro-spectus, setting 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 A. A description of the policy that allows them Gibbons-Skrehot, Vice policies and procedures to send only one copy of President and Chief that the Trust uses to a Fund's prospectus, Compliance Officer determine how to vote proxy material, annual Gregory N. Bressler, proxies relating to report and semi-annual Chief Legal Officer securities held in a report (the "shareholder and Secretary Fund's portfolio which is documents") to Gregory R. Kingston, available in the Trust's shareholders with Vice President and Statement of Additional multiple accounts Assistant Treasurer Information, may be residing at the same Kathleen Fuentes, obtained without charge "household." This Assistant Secretary upon request, by calling practice is called John E. McLean, (800) 858-8850. This householding and reduces Assistant Secretary in-formation is also Fund expenses, which Nori L. Gabert, Vice available from the EDGAR benefits you and other President and database on the U.S. shareholders. Unless the Assistant Secretary Securities and Ex-change Funds receive Matthew Hackethal, Commission's website at instructions to the Anti-Money Laundering http://www.sec.gov. con-trary, you will only Compliance Officer receive one copy of the John E. Smith Jr., PROXY VOTING RECORD ON shareholder documents. Assistant Treasurer SUNAMERICA EQUITY FUNDS The Funds will continue Information regarding how to household the INVESTMENT ADVISER SunAmerica Equity Funds share-holder documents SunAmerica Asset voted proxies relating to indefinitely, until we Management Corp. securities held in are instructed otherwise. Harborside Financial SunAmerica Equity Funds If you do not wish to Center during the most recent participate in 3200 Plaza 5 twelve month period ended householding, please Jersey City, NJ June 30 is available, contact Shareholder 07311-4992 once filed with the U.S. Services at (800) Securities and Exchange 858-8850 ext. 6010 or DISTRIBUTOR Commission, without send a written request SunAmerica Capital charge, upon request, by with your name, the name Services, Inc. calling (800) 858-8850 or of your fund(s) and your Harborside Financial on the U.S. Securities account number(s) to Center and Exchange Commission's SunAmerica Mutual Funds 3200 Plaza 5 website at c/o BFDS, P.O. Box Jersey City, NJ http://www.sec.gov. 219186, Kansas City MO, 07311-4992 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).
41 [GRAPHIC] GO PAPERLESS!! DID YOU KNOW THAT YOU HAVE THE OPTION TO RECEIVE YOUR SHAREHOLDER REPORTS ONLINE? By choosing this convenient service, you will no longer receive paper copies of Fund documents such as annual reports, semi-annual reports, prospectuses and proxy statements in the mail. Instead, you are provided with quick and easy access to this information via the Internet. Why Choose Electronic Delivery? IT'S QUICK -- Fund documents will be received faster than via traditional mail. IT'S CONVENIENT -- Elimination of bulky documents from personal files. IT'S COST EFFECTIVE -- Reduction of your Fund's printing and mailing costs. TO SIGN UP FOR ELECTRONIC DELIVERY, FOLLOW THESE SIMPLE STEPS: 1 GO TO WWW.SUNAMERICAFUNDS.COM 2 CLICK ON THE LINK TO "GO PAPERLESS!!"
The email address you provide will be kept strictly confidential. Once your enrollment has been processed, you will begin receiving email notifications when anything you receive electronically is available online. You can return to www.sunamericafunds.com at any time to change your email address, edit your preferences or to cancel this service if you choose to resume physical delivery of your Fund documents. Please note - this option is only available to accounts opened through the Funds. FOR INFORMATION ON RECEIVING THIS REPORT ONLINE, SEE INSIDE BACK COVER. FOR INFORMATION ON RECEIVING THIS REPORT ONLINE, SEE INSIDE BACK COVER. FUNDS DISTRIBUTED BY SUNAMERICA CAPITAL SERVICES, INC. Investors should carefully consider a Fund's investment objectives, risks, charges and expenses before investing. The prospectus, containing this and other important information, can be obtained from your financial adviser, the SunAmerica Sales Desk at 800-858-8850, ext. 6003, or at www.sunamericafunds.com. Read the prospectus carefully before investing. WWW.SUNAMERICAFUNDS.COM EQSAN - 3/10 [LOGO] AIG Sun America Mutual Funds Item 2. Code of Ethics. Not applicable. Item 3. Audit Committee Financial Expert. Not applicable. Item 4. Principal Accountant Fees and Services. Not applicable. Item 5. Audit Committee of Listed Registrants. Not applicable. Item 6. Investments. Included in Item 1 to the Form. Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable. Item 8. Portfolio Managers of Closed-End Management Investment Companies. Not applicable. Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. Not applicable. Item 10. Submission of Matters to a Vote of Security Holders. There were no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board of Trustees that were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 299.407) (as required by 22(b)(15)) of Schedule 14A (17 CFR 240.14a- 101), or this Item 10. Item 11. Controls and Procedures. (a) An evaluation was performed within 90 days of the filing of this report, under the supervision and with the participation of the registrant's management, including the President and Treasurer, of the effectiveness of the design and operation of the registrant's disclosure controls and procedures (as defined under Rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270. 30a-3(c))). Based on that evaluation, the registrant's management, including the President and Treasurer, concluded that the registrant's disclosure controls and procedures are effective. (b) There was no change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d))) that occurred during the registrant's last fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal contro1 over financial reporting. Item 12. Exhibits. (a) (1) Not applicable. (2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT. (3) Not applicable. (b) Certification pursuant to Rule 30a-2(b)under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) and Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.906.CERT. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SunAmerica Equity Funds By: /s/ John T. Genoy ------------------ John T. Genoy President Date: June 8, 2010 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ John T. Genoy ------------------ John T. Genoy President Date: June 8, 2010 By: /s/ Donna M. Handel ------------------- Donna M. Handel Treasurer Date: June 8, 2010
EX-99.CERT 2 dex99cert.txt CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT Exhibit 99. CERT CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT I, John T. Genoy, 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 registrant's 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 17, 2010 /s/ John T. Genoy ------------------ John T. Genoy 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 registrant's 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 17, 2010 /s/ Donna M. Handel ------------------- Donna M. Handel Treasurer EX-99.906CERT 3 dex99906cert.txt CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT Exhibit 99.906.CERT CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT John T. Genoy, 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 17, 2010 /s/ John T. Genoy -------------- John T. Genoy President /s/ Donna M. Handel --------------- Donna M. Handel Treasurer
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