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 AIG SunAmerica Asset Management Corp. Harborside Financial Center, 3200 Plaza 5 Jersey City, NJ 07311 -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (201) 324-6414 ----------------------------- Date of fiscal year end: September 30 -------------------------- Date of reporting period: March 31, 2008 ------------------------- Item 1. Reports to Stockholders LOGO SEMI-ANNUAL REPORT 2008 SUNAMERICA Equity Funds LOGO www.sunamericafunds.com live longer retire stronger/sm/ March 31, 2008 SEMI-ANNUAL REPORT SUNAMERICA EQUITY FUNDS SunAmerica Blue Chip Growth Fund (SVLAX) SunAmerica Growth Opportunities Fund (SGWAX) SunAmerica New Century Fund (SEGAX) SunAmerica Growth and Income Fund (SEIAX) SunAmerica Balanced Assets Fund (SBAAX) SunAmerica International Equity Fund (SIEAX) SunAmerica Value Fund (SSVAX) SunAmerica Disciplined Growth Fund (TXMAX) SunAmerica International Small-Cap Fund (SAESX) Table of Contents SHAREHOLDER LETTER................. 2 EXPENSE EXAMPLE.................... 3 STATEMENT OF ASSETS AND LIABILITIES 6 STATEMENT OF OPERATIONS............ 10 STATEMENT OF CHANGES IN NET ASSETS. 13 FINANCIAL HIGHLIGHTS............... 18 PORTFOLIO OF INVESTMENTS........... 27 NOTES TO FINANCIAL STATEMENTS...... 67
Shareholder Letter Dear Shareholder, The semi-annual period ended March 31, 2008 was a challenging time for the equity markets. Equity prices declined across the board during the six-month period, as the Dow Jones Industrial Average (DJIA), S&P 500 Index, and Russell 2000 Index returned -10.64%, -12.46% and -14.02%, respectively. The NASDAQ Composite was the worst-performing major index, losing -15.28% during the semi-annual period. International markets also retreated with the benchmark MSCI EAFE Index returning -10.50% over the six months. A confluence of factors prompted the sell-off. The subprime mortgage crisis and housing correction, the absence of liquidity in the credit markets, major financial institutions taking write-downs and obtaining capital infusions, rising food and energy prices creating inflationary concerns, a weakening U.S. dollar and declining corporate earnings growth are several themes that defined the period. Growing concern over where the economic slowdown will lead continues to loom over the economy and the markets. The Federal Reserve responded aggressively by cutting interest rates to end the period with the Federal Funds rate at 2.25%. In addition, they coordinated monetary activities with the European Central Bank, utilized the discount window, and activated other innovative mechanisms in an attempt to improve liquidity and increase confidence. Given this backdrop, it is very important that you meet with your financial adviser to review your portfolio and investment objectives. Thank you for your investment in the SunAmerica Equity Funds. We continue to work diligently to invest your capital in a manner consistent with each Fund's individual investment objective. Be sure to visit our website, www.sunamericafunds.com, for more information. The SunAmerica Equity Funds Investment Professionals AIG SunAmerica Asset Management Corp. AIG Investments - --------------- John Massey Alison Larkin Hans Danielsson Steve Neimeth Brendan Voege Robin Thorn Paul Ma Ben Barrett Jay Rushin Mike Beaulieu Soraya Benitez Andrew Sheridan Sandra Salas Jay Merchant Sarah Kallok Kara Murphy Karen Forte
-------- Past performance is no guarantee of future results. 2 SunAmerica Equity Funds EXPENSE EXAMPLE -- March 31, 2008 -- (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 of International Equity Fund and International Small-Cap Fund only) and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. The Example set forth below is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at October 1, 2007 and held until March 31, 2008. 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, 2008" 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, 2008" 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, 2008" column does not include administrative fees that may apply to qualified retirement plan accounts. See the Funds' prospectus and/or your retirement plan documents for full description of these fees. Had these fees been included, the "Expenses Paid During the Six Months Ended March 31, 2008" 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, 2008" 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, 2008" column does not include administrative fees that may apply to qualified retirement plan accounts. See the Funds' prospectus and/or your retirement plan document for full description of these fees. Had these fees been included, the "Expenses Paid During the Six Months Ended March 31, 2008" column would have been higher and the "Ending Account Value" would have been lower. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, including sales charges on purchase payments, contingent deferred sales charges, redemption fees (applicable to Class A of International Equity Fund and International Small-Cap Fund only); small account fees and administrative fees, if applicable to your account. Please refer to the Fund's prospectus and/or qualified retirement plan document for more information. Therefore, the "Hypothetical" example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs and other fees were included, your costs would have been higher. 3 SunAmerica Equity Funds EXPENSE EXAMPLE -- March 31, 2008 -- (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 2007 2008 2008 2007 2008 2008 2008* ---- ------------- -------------- ------------ ------------- -------------- ------------ --------- Blue Chip Growth Fund@ Class A................... $1,000.00 $884.21 $ 7.63 $1,000.00 $1,016.90 $ 8.17 1.62% Class B................... $1,000.00 $880.75 $11.24 $1,000.00 $1,013.05 $12.03 2.39% Class C................... $1,000.00 $880.41 $11.80 $1,000.00 $1,012.45 $12.63 2.51% Class I#.................. $1,000.00 $885.32 $ 6.27 $1,000.00 $1,018.35 $ 6.71 1.33% Growth Opportunities Fund@ Class A................... $1,000.00 $771.62 $ 7.71 $1,000.00 $1,016.30 $ 8.77 1.74% Class B................... $1,000.00 $768.23 $11.01 $1,000.00 $1,012.55 $12.53 2.49% Class C................... $1,000.00 $768.28 $11.14 $1,000.00 $1,012.40 $12.68 2.52% Class I#.................. $1,000.00 $773.70 $ 5.90 $1,000.00 $1,018.35 $ 6.71 1.33% New Century Fund@ Class A................... $1,000.00 $783.16 $ 7.13 $1,000.00 $1,017.00 $ 8.07 1.60% Class B................... $1,000.00 $779.69 $10.72 $1,000.00 $1,012.95 $12.13 2.41% Class C#.................. $1,000.00 $781.06 $ 9.53 $1,000.00 $1,014.30 $10.78 2.14% Growth and Income Fund@ Class A................... $1,000.00 $881.16 $ 7.38 $1,000.00 $1,017.15 $ 7.92 1.57% Class B................... $1,000.00 $878.11 $10.75 $1,000.00 $1,013.55 $11.53 2.29% Class C................... $1,000.00 $878.03 $10.56 $1,000.00 $1,013.75 $11.33 2.25% Class I#.................. $1,000.00 $882.44 $ 6.21 $1,000.00 $1,018.40 $ 6.66 1.32% Balanced Assets Fund@ Class A#.................. $1,000.00 $909.24 $ 7.59 $1,000.00 $1,017.05 $ 8.02 1.59% Class B#.................. $1,000.00 $905.82 $11.05 $1,000.00 $1,013.40 $11.68 2.32% Class C#.................. $1,000.00 $906.00 $10.82 $1,000.00 $1,013.65 $11.43 2.27% Class I#.................. $1,000.00 $910.25 $ 6.26 $1,000.00 $1,018.45 $ 6.61 1.31% International Equity Fund@ Class A................... $1,000.00 $896.87 $ 8.77 $1,000.00 $1,015.75 $ 9.32 1.85% Class B#.................. $1,000.00 $893.44 $12.07 $1,000.00 $1,012.25 $12.83 2.55% Class C#.................. $1,000.00 $893.86 $12.07 $1,000.00 $1,012.25 $12.83 2.55% Class I#.................. $1,000.00 $896.13 $ 8.53 $1,000.00 $1,016.00 $ 9.07 1.80% Value Fund@ Class A#.................. $1,000.00 $864.70 $ 7.60 $1,000.00 $1,016.85 $ 8.22 1.63% Class B#.................. $1,000.00 $862.09 $10.61 $1,000.00 $1,013.60 $11.48 2.28% Class C#.................. $1,000.00 $862.09 $10.61 $1,000.00 $1,013.60 $11.48 2.28% Class I#.................. $1,000.00 $865.03 $ 7.13 $1,000.00 $1,017.35 $ 7.72 1.53% Class Z#.................. $1,000.00 $866.98 $ 4.95 $1,000.00 $1,019.70 $ 5.35 1.06% Disciplined Growth Fund@ Class A#.................. $1,000.00 $833.14 $ 6.65 $1,000.00 $1,017.75 $ 7.31 1.45% Class B#.................. $1,000.00 $830.63 $ 9.61 $1,000.00 $1,014.50 $10.58 2.10% Class C#.................. $1,000.00 $830.73 $ 9.61 $1,000.00 $1,014.50 $10.58 2.10% International Small-Cap Fund Class A#.................. $1,000.00 $850.51 $ 8.79 $1,000.00 $1,015.50 $ 9.57 1.90% Class B#.................. $1,000.00 $847.76 $11.78 $1,000.00 $1,012.25 $12.83 2.55% Class C#.................. $1,000.00 $847.76 $11.78 $1,000.00 $1,012.25 $12.83 2.55%
-------- * Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by 183 days divided by 366 days. These ratios do not reflect transaction costs, including sales charges on purchase payments, contingent deferred sales charges, redemption fees (International Equity Fund and International Small-Cap Fund only), small account fees and administrative fees, if applicable to your account. Please refer to your Prospectus and/or qualified retirement plan document for more information. # During the stated period, the investment 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, 2008" 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, 2008" and "Expense Ratios" would have been lower. @ Through expense offset arrangements resulting from broker commission recapture, a portion of the Fund's expenses have been reduced. Had the expense reductions been applied, the Expense Example would have been as follows: 4 SunAmerica Equity Funds EXPENSE EXAMPLE -- March 31, 2008 -- (unaudited) (continued)
Actual Hypothetical --------------------------------------------- --------------------------------------------- Ending Account Ending Account Value using Value Using a Hypothetical Expense Beginning Actual Expense Paid Beginning 5% Assumed Expense Paid Ratio Account Value Return at During the Account Value Return at During the as of at October 1, March 31, Six Months Ended at October 1, March 31, Six Months Ended March 31, Fund 2007 2008 March 31, 2008 2007 2008 March 31, 2008 2008 * ---- ------------- -------------- ---------------- ------------- -------------- ---------------- --------- Blue Chip Growth Fund Class A................ $1,000.00 $884.21 $ 7.58 $1,000.00 $1,016.95 $ 8.12 1.61% Class B................ $1,000.00 $880.75 $11.19 $1,000.00 $1,013.10 $11.98 2.38% Class C ............... $1,000.00 $880.41 $11.75 $1,000.00 $1,012.50 $12.58 2.50% Class I#............... $1,000.00 $885.32 $ 6.22 $1,000.00 $1,018.40 $ 6.66 1.32% Growth Opportunities Fund Class A................ $1,000.00 $771.62 $ 6.82 $1,000.00 $1,017.30 $ 7.77 1.54% Class B................ $1,000.00 $768.23 $10.12 $1,000.00 $1,013.55 $11.53 2.29% Class C ............... $1,000.00 $768.28 $10.26 $1,000.00 $1,013.40 $11.68 2.32% Class I#............... $1,000.00 $773.70 $ 5.06 $1,000.00 $1,019.30 $ 5.76 1.14% New Century Fund Class A................ $1,000.00 $783.16 $ 6.78 $1,000.00 $1,017.40 $ 7.67 1.52% Class B................ $1,000.00 $779.69 $10.37 $1,000.00 $1,013.35 $11.73 2.33% Class C# .............. $1,000.00 $781.06 $ 9.17 $1,000.00 $1,014.70 $10.38 2.06% Growth and Income Fund Class A................ $1,000.00 $881.16 $ 7.20 $1,000.00 $1,017.35 $ 7.72 1.53% Class B................ $1,000.00 $878.11 $10.56 $1,000.00 $1,013.75 $11.33 2.25% Class C ............... $1,000.00 $878.03 $10.38 $1,000.00 $1,013.95 $11.13 2.21% Class I#............... $1,000.00 $882.44 $ 6.02 $1,000.00 $1,018.60 $ 6.46 1.28% Balanced Assets Fund Class A#............... $1,000.00 $909.24 $ 7.49 $1,000.00 $1,017.15 $ 7.92 1.57% Class B#............... $1,000.00 $905.82 $10.96 $1,000.00 $1,013.50 $11.58 2.30% Class C# .............. $1,000.00 $906.00 $10.72 $1,000.00 $1,013.75 $11.33 2.25% Class I#............... $1,000.00 $910.25 $ 6.16 $1,000.00 $1,018.55 $ 6.51 1.29% International Equity Fund Class A................ $1,000.00 $896.87 $ 8.77 $1,000.00 $1,015.75 $ 9.32 1.85% Class B#............... $1,000.00 $893.44 $12.07 $1,000.00 $1,012.25 $12.83 2.55% Class C# .............. $1,000.00 $893.86 $12.07 $1,000.00 $1,012.25 $12.83 2.55% Class I#............... $1,000.00 $896.13 $ 8.53 $1,000.00 $1,016.00 $ 9.07 1.80% Value Fund Class A#............... $1,000.00 $864.70 $ 7.41 $1,000.00 $1,017.05 $ 8.02 1.59% Class B#............... $1,000.00 $862.09 $10.43 $1,000.00 $1,013.80 $11.28 2.24% Class C# .............. $1,000.00 $862.09 $10.43 $1,000.00 $1,013.80 $11.28 2.24% Class I#............... $1,000.00 $865.03 $ 6.95 $1,000.00 $1,017.55 $ 7.52 1.49% Class Z#............... $1,000.00 $866.98 $ 4.81 $1,000.00 $1,019.85 $ 5.20 1.03% Disciplined Growth Fund Class A#............... $1,000.00 $833.14 $ 6.37 $1,000.00 $1,018.05 $ 7.01 1.39% Class B#............... $1,000.00 $830.63 $ 9.34 $1,000.00 $1,014.80 $10.28 2.04% Class C# .............. $1,000.00 $830.73 $ 9.34 $1,000.00 $1,014.80 $10.28 2.04%
5 SunAmerica Equity Funds STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2008 -- (unaudited)
Blue Chip Growth New Growth Opportunities Century Fund Fund Fund ------------ ------------- ------------- ASSETS: Long-term investment securities, at market value (unaffiliated)*.......... $ 57,308,101 $ 33,739,382 $ 63,339,220 Short-term investment securities, at market value (unaffiliated)*......... -- -- -- Repurchase agreements (cost approximates market value).................... 2,392,000 5,178,000 5,409,000 ------------ ------------- ------------- Total investments....................................................... 59,700,101 38,917,382 68,748,220 ------------ ------------- ------------- Cash...................................................................... 533 44 172 Foreign cash*............................................................. -- -- -- Receivable for: Fund shares sold........................................................ 30,167 8,507 12,619 Dividends and interest.................................................. 39,238 6,278 29,061 Investments sold........................................................ 499,461 3,516,055 5,970,166 Prepaid expenses and other assets......................................... 2,924 43,784 15,933 Due from investment adviser for expense reimbursements/fee waivers........ 1,000 807 1,440 ------------ ------------- ------------- Total assets.............................................................. 60,273,424 42,492,857 74,777,611 ------------ ------------- ------------- LIABILITIES: Payable for: Fund shares redeemed.................................................... 68,291 15,721 61,407 Investments purchased................................................... 159,962 453,489 1,081,292 Investment advisory and management fees................................. 38,018 26,728 46,870 Distribution and service maintenance fees............................... 25,818 20,348 27,752 Transfer agent fees and expenses........................................ 29,476 25,220 35,978 Trustees' fees and expenses............................................. 28,242 24,668 48,196 Other accrued expenses.................................................. 82,434 90,878 95,441 Due to custodian.......................................................... -- -- -- ------------ ------------- ------------- Total liabilities......................................................... 432,241 657,052 1,396,936 ------------ ------------- ------------- Net Assets................................................................ $ 59,841,183 $ 41,835,805 $ 73,380,675 ============ ============= ============= NET ASSETS REPRESENTED BY: Shares of beneficial interest, $.01 par value............................. $ 37,359 $ 29,433 $ 43,353 Paid-in capital........................................................... 124,809,826 248,216,769 200,353,203 ------------ ------------- ------------- 124,847,185 248,246,202 200,396,556 Accumulated undistributed net investment income (loss).................... (304,829) (229,605) (356,931) Accumulated undistributed net realized gain (loss) on investments, futures contracts, options contracts, securities sold short and foreign exchange transactions............................................................. (67,899,794) (206,504,060) (125,915,378) Unrealized appreciation (depreciation) on investments..................... 3,198,621 323,268 (743,572) Unrealized foreign exchange gain (loss) on other assets and liabilities... -- -- -- ------------ ------------- ------------- Net Assets................................................................ $ 59,841,183 $ 41,835,805 $ 73,380,675 ============ ============= ============= *Cost Long-term investment securities (unaffiliated).......................... $ 54,109,480 $ 33,416,114 $ 64,082,792 ============ ============= ============= Short-term investment securities (unaffiliated)......................... $ -- $ -- $ -- ============ ============= ============= Foreign cash............................................................ $ -- $ -- $ -- ============ ============= =============
Growth and Balanced Income Assets Fund Fund ------------ ------------ ASSETS: Long-term investment securities, at market value (unaffiliated)*.......... $ 83,665,844 $120,632,909 Short-term investment securities, at market value (unaffiliated)*......... -- -- Repurchase agreements (cost approximates market value).................... 2,539,000 6,378,000 ------------ ------------ Total investments....................................................... 86,204,844 127,010,909 ------------ ------------ Cash...................................................................... 580 3,244 Foreign cash*............................................................. -- -- Receivable for: Fund shares sold........................................................ 26,079 27,109 Dividends and interest.................................................. 132,939 614,762 Investments sold........................................................ 4,272,937 2,964,314 Prepaid expenses and other assets......................................... 7,951 15,532 Due from investment adviser for expense reimbursements/fee waivers........ 940 3,123 ------------ ------------ Total assets.............................................................. 90,646,270 130,638,993 ------------ ------------ LIABILITIES: Payable for: Fund shares redeemed.................................................... 69,502 73,545 Investments purchased................................................... 1,805,433 501,078 Investment advisory and management fees................................. 56,077 82,428 Distribution and service maintenance fees............................... 43,882 51,034 Transfer agent fees and expenses........................................ 38,779 62,901 Trustees' fees and expenses............................................. 38,444 76,093 Other accrued expenses.................................................. 82,524 112,286 Due to custodian.......................................................... -- -- ------------ ------------ Total liabilities......................................................... 2,134,641 959,365 ------------ ------------ Net Assets................................................................ $ 88,511,629 $129,679,628 ============ ============ NET ASSETS REPRESENTED BY: Shares of beneficial interest, $.01 par value............................. $ 65,081 $ 91,107 Paid-in capital........................................................... 125,824,442 200,000,873 ------------ ------------ 125,889,523 200,091,980 Accumulated undistributed net investment income (loss).................... 371,124 217,320 Accumulated undistributed net realized gain (loss) on investments, futures contracts, options contracts, securities sold short and foreign exchange transactions............................................................. (34,676,136) (71,365,967) Unrealized appreciation (depreciation) on investments..................... (3,072,882) 736,295 Unrealized foreign exchange gain (loss) on other assets and liabilities... -- -- ------------ ------------ Net Assets................................................................ $ 88,511,629 $129,679,628 ============ ============ *Cost Long-term investment securities (unaffiliated).......................... $ 86,738,726 $119,896,614 ============ ============ Short-term investment securities (unaffiliated)......................... $ -- $ -- ============ ============ Foreign cash............................................................ $ -- $ -- ============ ============
See Notes to Financial Statements 6 SunAmerica Equity Funds STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2008 -- (unaudited) (continued)
Blue Chip Growth New Growth and Balanced Growth Opportunities Century Income Assets Fund Fund Fund Fund Fund ----------- ------------- ----------- ----------- ------------ Class A (unlimited shares authorized): Net assets.................................................... $44,679,720 $27,504,463 $62,752,718 $56,170,532 $106,272,890 Shares of beneficial interest issued and outstanding.......... 2,696,967 1,846,446 3,627,419 4,029,136 7,464,797 Net asset value and redemption price per share................ $ 16.57 $ 14.90 $ 17.30 $ 13.94 $ 14.24 Maximum sales charge (5.75% of offering price)................ 1.01 0.91 1.06 0.85 0.87 ----------- ----------- ----------- ----------- ------------ Maximum offering price to public.............................. 17.58 15.81 18.36 14.79 15.11 =========== =========== =========== =========== ============ Class B (unlimited shares authorized): Net assets.................................................... $10,667,868 $ 9,097,850 $ 6,792,995 $13,707,788 $ 11,429,638 Shares of beneficial interest issued and outstanding.......... 733,256 696,366 453,684 1,051,030 804,593 Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge). $ 14.55 $ 13.06 $ 14.97 $ 13.04 $ 14.21 =========== =========== =========== =========== ============ Class C (unlimited shares authorized): Net assets.................................................... $ 3,909,815 $ 5,125,806 $ 3,834,962 $18,324,123 $ 11,379,765 Shares of beneficial interest issued and outstanding.......... 271,028 393,350 254,149 1,405,885 799,383 Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge). $ 14.43 $ 13.03 $ 15.09 $ 13.03 $ 14.24 =========== =========== =========== =========== ============ Class I (unlimited shares authorized): Net assets.................................................... $ 583,780 $ 107,686 $ -- $ 309,186 $ 597,335 Shares of beneficial interest issued and outstanding.......... 34,692 7,095 -- 22,054 41,892 Net asset value, offering and redemption price per share...... $ 16.83 $ 15.18 $ -- $ 14.02 $ 14.26 =========== =========== =========== =========== ============ Class Z (unlimited shares authorized): Net assets.................................................... $ -- $ -- $ -- $ -- $ -- Shares of beneficial interest issued and outstanding.......... -- -- -- -- -- Net asset value, offering and redemption price per share...... $ -- $ -- $ -- $ -- $ -- =========== =========== =========== =========== ============
See Notes to Financial Statements 7 SunAmerica Equity Funds STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2008 -- (unaudited) (continued)
International Equity Fund ------------- ASSETS: Long-term investment securities, at market value (unaffiliated)*........................................ $106,671,661 Short-term investment securities, at market value (unaffiliated)*....................................... -- Repurchase agreements (cost approximates market value).................................................. 681,000 ------------ Total investments..................................................................................... 107,352,661 ------------ Cash.................................................................................................... -- Foreign cash*........................................................................................... 273,218 Receivable for: Fund shares sold...................................................................................... 76,490 Dividends and interest................................................................................ 781,445 Investments sold...................................................................................... 1,457,390 Prepaid expenses and other assets....................................................................... 2,310 Due from investment adviser for expense reimbursements/fee waivers...................................... 3,272 ------------ Total assets............................................................................................ 109,946,786 ------------ LIABILITIES: Payable for: Fund shares redeemed.................................................................................. 169,148 Investments purchased................................................................................. 1,093,667 Investment advisory and management fees............................................................... 92,621 Distribution and service maintenance fees............................................................. 52,898 Transfer agent fees and expenses...................................................................... 35,568 Trustees' fees and expenses........................................................................... 18,663 Other accrued expenses................................................................................ 86,709 Due to custodian........................................................................................ 959 ------------ Total liabilities....................................................................................... 1,550,233 ------------ Net Assets.............................................................................................. $108,396,553 ============ NET ASSETS REPRESENTED BY: Shares of beneficial interest, $.01 par value........................................................... $ 68,693 Paid-in capital......................................................................................... 115,728,106 ------------ 115,796,799 Accumulated undistributed net investment income (loss).................................................. (266,861) Accumulated undistributed net realized gain (loss) on investments, futures contracts, options contracts, securities sold short and foreign exchange transactions................................................ (11,105,454) Unrealized appreciation (depreciation) on investments................................................... 3,960,056 Unrealized foreign exchange gain (loss) on other assets and liabilities................................. 12,013 ------------ Net Assets............................................................................................ $108,396,553 ============ *Cost Long-term investment securities (unaffiliated)........................................................ $102,711,605 ============ Short-term investment securities (unaffiliated)....................................................... $ -- ============ Foreign cash.......................................................................................... $ 272,974 ============
Value Fund ------------ ASSETS: Long-term investment securities, at market value (unaffiliated)*........................................ $147,741,201 Short-term investment securities, at market value (unaffiliated)*....................................... -- Repurchase agreements (cost approximates market value).................................................. 13,310,000 ------------ Total investments..................................................................................... 161,051,201 ------------ Cash.................................................................................................... 689 Foreign cash*........................................................................................... -- Receivable for: Fund shares sold...................................................................................... 33,775 Dividends and interest................................................................................ 270,017 Investments sold...................................................................................... 9,880,259 Prepaid expenses and other assets....................................................................... 18,213 Due from investment adviser for expense reimbursements/fee waivers...................................... 20,525 ------------ Total assets............................................................................................ 171,274,679 ------------ LIABILITIES: Payable for: Fund shares redeemed.................................................................................. 234,758 Investments purchased................................................................................. -- Investment advisory and management fees............................................................... 144,478 Distribution and service maintenance fees............................................................. 67,164 Transfer agent fees and expenses...................................................................... 57,397 Trustees' fees and expenses........................................................................... 33,982 Other accrued expenses................................................................................ 94,380 Due to custodian........................................................................................ -- ------------ Total liabilities....................................................................................... 632,159 ------------ Net Assets.............................................................................................. $170,642,520 ============ NET ASSETS REPRESENTED BY: Shares of beneficial interest, $.01 par value........................................................... $ 122,429 Paid-in capital......................................................................................... 182,468,694 ------------ 182,591,123 Accumulated undistributed net investment income (loss).................................................. 567,247 Accumulated undistributed net realized gain (loss) on investments, futures contracts, options contracts, securities sold short and foreign exchange transactions................................................ (12,752,583) Unrealized appreciation (depreciation) on investments................................................... 236,733 Unrealized foreign exchange gain (loss) on other assets and liabilities................................. -- ------------ Net Assets............................................................................................ $170,642,520 ============ *Cost Long-term investment securities (unaffiliated)........................................................ $147,504,468 ============ Short-term investment securities (unaffiliated)....................................................... $ -- ============ Foreign cash.......................................................................................... $ -- ============
Disciplined Growth Fund ------------ ASSETS: Long-term investment securities, at market value (unaffiliated)*........................................ $ 54,017,714 Short-term investment securities, at market value (unaffiliated)*....................................... -- Repurchase agreements (cost approximates market value).................................................. 10,105,000 ------------ Total investments..................................................................................... 64,122,714 ------------ Cash.................................................................................................... 792,050 Foreign cash*........................................................................................... 61,031 Receivable for: Fund shares sold...................................................................................... 113,070 Dividends and interest................................................................................ 46,654 Investments sold...................................................................................... 4,484,201 Prepaid expenses and other assets....................................................................... 45,396 Due from investment adviser for expense reimbursements/fee waivers...................................... 15,387 ------------ Total assets............................................................................................ 69,680,503 ------------ LIABILITIES: Payable for: Fund shares redeemed.................................................................................. 123,046 Investments purchased................................................................................. 7,604,300 Investment advisory and management fees............................................................... 45,729 Distribution and service maintenance fees............................................................. 37,543 Transfer agent fees and expenses...................................................................... 16,097 Trustees' fees and expenses........................................................................... 10,981 Other accrued expenses................................................................................ 53,957 Due to custodian........................................................................................ -- ------------ Total liabilities....................................................................................... 7,891,653 ------------ Net Assets.............................................................................................. $ 61,788,850 ============ NET ASSETS REPRESENTED BY: Shares of beneficial interest, $.01 par value........................................................... $ 43,659 Paid-in capital......................................................................................... 84,524,372 ------------ 84,568,031 Accumulated undistributed net investment income (loss).................................................. (197,835) Accumulated undistributed net realized gain (loss) on investments, futures contracts, options contracts, securities sold short and foreign exchange transactions................................................ (22,594,030) Unrealized appreciation (depreciation) on investments................................................... 4,772 Unrealized foreign exchange gain (loss) on other assets and liabilities................................. 7,912 ------------ Net Assets............................................................................................ $ 61,788,850 ============ *Cost Long-term investment securities (unaffiliated)........................................................ $ 54,012,942 ============ Short-term investment securities (unaffiliated)....................................................... $ -- ============ Foreign cash.......................................................................................... $ 53,266 ============
International Small-Cap Fund ------------- ASSETS: Long-term investment securities, at market value (unaffiliated)*........................................ $29,637,895 Short-term investment securities, at market value (unaffiliated)*....................................... 136,000 Repurchase agreements (cost approximates market value).................................................. -- ----------- Total investments..................................................................................... 29,773,895 ----------- Cash.................................................................................................... 180 Foreign cash*........................................................................................... 357,962 Receivable for: Fund shares sold...................................................................................... 28,797 Dividends and interest................................................................................ 77,984 Investments sold...................................................................................... 472,095 Prepaid expenses and other assets....................................................................... 109 Due from investment adviser for expense reimbursements/fee waivers...................................... 16,614 ----------- Total assets............................................................................................ 30,727,636 ----------- LIABILITIES: Payable for: Fund shares redeemed.................................................................................. 48,408 Investments purchased................................................................................. 520,876 Investment advisory and management fees............................................................... 28,546 Distribution and service maintenance fees............................................................. 11,316 Transfer agent fees and expenses...................................................................... 8,221 Trustees' fees and expenses........................................................................... 722 Other accrued expenses................................................................................ 45,801 Due to custodian........................................................................................ -- ----------- Total liabilities....................................................................................... 663,890 ----------- Net Assets.............................................................................................. $30,063,746 =========== NET ASSETS REPRESENTED BY: Shares of beneficial interest, $.01 par value........................................................... $ 25,575 Paid-in capital......................................................................................... 31,620,112 ----------- 31,645,687 Accumulated undistributed net investment income (loss).................................................. (137,348) Accumulated undistributed net realized gain (loss) on investments, futures contracts, options contracts, securities sold short and foreign exchange transactions................................................ (2,234,328) Unrealized appreciation (depreciation) on investments................................................... 777,439 Unrealized foreign exchange gain (loss) on other assets and liabilities................................. 12,296 ----------- Net Assets............................................................................................ $30,063,746 =========== *Cost Long-term investment securities (unaffiliated)........................................................ $28,860,456 =========== Short-term investment securities (unaffiliated)....................................................... $ 136,000 =========== Foreign cash.......................................................................................... $ 346,036 ===========
See Notes to Financial Statements 8 SunAmerica Equity Funds STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2008 -- (unaudited) (continued)
International Disciplined International Equity Value Growth Small-Cap Fund Fund Fund Fund ------------- ----------- ----------- ------------- Class A (unlimited shares authorized): Net assets.................................................. $64,360,479 $95,948,054 $28,817,088 $25,184,243 Shares of beneficial interest issued and outstanding........ 3,961,820 6,818,183 1,983,153 2,138,213 Net asset value and redemption price per share.............. $ 16.25 $ 14.07 $ 14.53 $ 11.78 Maximum sales charge (5.75% of offering price).............. 0.99 0.86 0.89 0.72 ----------- ----------- ----------- ----------- Maximum offering price to public............................ 17.24 14.93 15.42 12.50 =========== =========== =========== =========== Class B (unlimited shares authorized): Net assets.................................................. $15,899,072 $27,592,006 $ 4,742,108 $ 1,088,495 Shares of beneficial interest issued and outstanding........ 1,062,005 2,091,944 342,934 93,531 Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge) $ 14.97 $ 13.19 $ 13.83 $ 11.64 =========== =========== =========== =========== Class C (unlimited shares authorized): Net assets.................................................. $21,988,891 $17,851,221 $28,229,654 $ 3,791,008 Shares of beneficial interest issued and outstanding........ 1,470,160 1,353,450 2,039,838 325,775 Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge) $ 14.96 $ 13.19 $ 13.84 $ 11.64 =========== =========== =========== =========== Class I (unlimited shares authorized): Net assets.................................................. $ 6,148,111 $ 28,599 $ -- $ -- Shares of beneficial interest issued and outstanding........ 375,267 2,035 -- -- Net asset value, offering and redemption price per share.... $ 16.38 $ 14.05 $ -- $ -- =========== =========== =========== =========== Class Z (unlimited shares authorized): Net assets.................................................. $ -- $29,222,640 $ -- $ -- Shares of beneficial interest issued and outstanding........ -- 1,977,271 -- -- Net asset value, offering and redemption price per share.... $ -- $ 14.78 $ -- $ -- =========== =========== =========== ===========
See Notes to Financial Statements 9 SunAmerica Equity Funds STATEMENT OF OPERATIONS -- For the period ended March 31, 2008 -- (unaudited)
Blue Chip Growth Growth Opportunities Fund Fund ----------- ------------- INVESTMENT INCOME: Dividends (unaffiliated).......................................................................... $ 288,510 $ 104,495 Interest (unaffiliated)........................................................................... 35,849 156,811 ----------- ------------ Total investment income*......................................................................... 324,359 261,306 ----------- ------------ EXPENSES: Investment advisory and management fees........................................................... 248,994 193,118 Distribution and service maintenance fees Class A.......................................................................................... 85,667 58,360 Class B.......................................................................................... 63,244 58,296 Class C.......................................................................................... 20,713 31,821 Service fees Class I.............................................................................. 818 157 Transfer agent fees and expenses Class A.......................................................................................... 70,320 51,788 Class B.......................................................................................... 22,872 20,877 Class C.......................................................................................... 6,288 10,256 Class I.......................................................................................... 879 292 Registration fees Class A.......................................................................................... 7,694 6,307 Class B.......................................................................................... 4,707 5,240 Class C.......................................................................................... 5,172 5,149 Class I.......................................................................................... 4,977 4,746 Class Z.......................................................................................... -- -- Custodian and accounting fees..................................................................... 19,348 27,320 Reports to shareholders........................................................................... 19,337 21,559 Audit and tax fees................................................................................ 16,548 16,558 Legal fees........................................................................................ 4,958 3,521 Trustees' fees and expenses....................................................................... 2,679 2,355 Interest expense.................................................................................. -- -- Other expenses.................................................................................... 5,407 3,845 ----------- ------------ Total expenses before fee waivers, expense reimbursements, expense recoupments, custody credits and fees paid indirectly........................................................................ 610,622 521,565 Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4)................ (5,448) (5,015) Custody credits earned on cash balances.......................................................... (25) (206) Fees paid indirectly (Note 5).................................................................... (4,299) (50,299) ----------- ------------ Net expenses..................................................................................... 600,850 466,045 ----------- ------------ Net investment income (loss)........................................................................ (276,491) (204,739) ----------- ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES: Net realized gain (loss) on investments (unaffiliated)**............................................ 197,883 (13,074,061) Net realized foreign exchange gain (loss) on other assets and liabilities........................... -- -- Net realized gain (loss) on disposal of investments in violation of investment restrictions (Note 4) 19 -- ----------- ------------ Net realized gain (loss) on investments and foreign currencies...................................... 197,902 (13,074,061) ----------- ------------ Change in unrealized appreciation (depreciation) on investments (unaffiliated)...................... (8,111,715) (105,811) Change in unrealized foreign exchange gain (loss) on other assets and liabilities................... -- -- Change in unrealized appreciation (depreciation) on securities sold short........................... -- -- Change in accrued capital gains tax on unrealized appreciation (depreciation)....................... -- -- ----------- ------------ Net unrealized gain (loss) on investments and foreign currencies.................................... (8,111,715) (105,811) ----------- ------------ Net realized and unrealized gain (loss) on investments and foreign currencies....................... (7,913,813) (13,179,872) ----------- ------------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................................... $(8,190,304) $(13,384,611) =========== ============ -------- * Net of foreign withholding taxes on interest and dividends of..................................... $ 525 $ -- =========== ============ ** Net of foreign withholding taxes on capital gains of............................................. $ -- $ -- =========== ============
New Growth and Century Income Fund Fund ------------ ------------ INVESTMENT INCOME: Dividends (unaffiliated).......................................................................... $ 206,134 $ 1,228,546 Interest (unaffiliated)........................................................................... 205,968 63,816 ------------ ------------ Total investment income*......................................................................... 412,102 1,292,362 ------------ ------------ EXPENSES: Investment advisory and management fees........................................................... 330,910 370,664 Distribution and service maintenance fees Class A.......................................................................................... 131,306 107,019 Class B.......................................................................................... 42,027 81,960 Class C.......................................................................................... 24,028 104,957 Service fees Class I.............................................................................. -- 384 Transfer agent fees and expenses Class A.......................................................................................... 107,383 85,225 Class B.......................................................................................... 14,533 25,975 Class C.......................................................................................... 8,207 29,467 Class I.......................................................................................... -- 583 Registration fees Class A.......................................................................................... 7,806 6,968 Class B.......................................................................................... 5,041 4,756 Class C.......................................................................................... 4,663 5,313 Class I.......................................................................................... -- 4,832 Class Z.......................................................................................... -- -- Custodian and accounting fees..................................................................... 24,273 22,230 Reports to shareholders........................................................................... 24,101 24,255 Audit and tax fees................................................................................ 17,913 17,008 Legal fees........................................................................................ 7,516 6,952 Trustees' fees and expenses....................................................................... 4,132 4,052 Interest expense.................................................................................. -- 130 Other expenses.................................................................................... 8,386 6,985 ------------ ------------ Total expenses before fee waivers, expense reimbursements, expense recoupments, custody credits and fees paid indirectly........................................................................ 762,225 909,715 Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4)................ (8,167) (5,179) Custody credits earned on cash balances.......................................................... (284) (7) Fees paid indirectly (Note 5).................................................................... (34,277) (21,514) ------------ ------------ Net expenses..................................................................................... 719,497 883,015 ------------ ------------ Net investment income (loss)........................................................................ (307,395) 409,347 ------------ ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES: Net realized gain (loss) on investments (unaffiliated)**............................................ (20,014,411) (522,659) Net realized foreign exchange gain (loss) on other assets and liabilities........................... -- -- Net realized gain (loss) on disposal of investments in violation of investment restrictions (Note 4) -- -- ------------ ------------ Net realized gain (loss) on investments and foreign currencies...................................... (20,014,411) (522,659) ------------ ------------ Change in unrealized appreciation (depreciation) on investments (unaffiliated)...................... (1,301,648) (12,714,539) Change in unrealized foreign exchange gain (loss) on other assets and liabilities................... -- -- Change in unrealized appreciation (depreciation) on securities sold short........................... -- -- Change in accrued capital gains tax on unrealized appreciation (depreciation)....................... -- -- ------------ ------------ Net unrealized gain (loss) on investments and foreign currencies.................................... (1,301,648) (12,714,539) ------------ ------------ Net realized and unrealized gain (loss) on investments and foreign currencies....................... (21,316,059) (13,237,198) ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................................... $(21,623,454) $(12,827,851) ============ ============ -------- * Net of foreign withholding taxes on interest and dividends of..................................... $ -- $ -- ============ ============ ** Net of foreign withholding taxes on capital gains of............................................. $ -- $ -- ============ ============
See Notes to Financial Statements 10 SunAmerica Equity Funds STATEMENT OF OPERATIONS -- For the period ended March 31, 2008 -- (unaudited) (continued)
Balanced International Assets Equity Fund Fund ------------ ------------- INVESTMENT INCOME: Dividends (unaffiliated).......................................................................... $ 825,445 $ 1,121,918 Interest (unaffiliated)........................................................................... 1,487,355 16,349 ------------ ------------ Total investment income*......................................................................... 2,312,800 1,138,267 ------------ ------------ EXPENSES: Investment advisory and management fees........................................................... 530,586 611,124 Distribution and service maintenance fees Class A.......................................................................................... 201,758 124,151 Class B.......................................................................................... 64,693 92,381 Class C.......................................................................................... 63,180 125,220 Service fees Class I.............................................................................. 781 9,704 Transfer agent fees and expenses Class A.......................................................................................... 177,134 93,417 Class B.......................................................................................... 21,654 27,019 Class C.......................................................................................... 17,146 32,473 Class I.......................................................................................... 760 8,754 Registration fees Class A.......................................................................................... 8,301 8,234 Class B.......................................................................................... 4,300 5,206 Class C.......................................................................................... 5,285 4,133 Class I.......................................................................................... 4,771 5,274 Class Z.......................................................................................... -- -- Custodian and accounting fees..................................................................... 56,726 68,818 Reports to shareholders........................................................................... 35,796 22,602 Audit and tax fees................................................................................ 18,724 20,180 Legal fees........................................................................................ 7,505 6,998 Trustees' fees and expenses....................................................................... 5,908 5,221 Interest expense.................................................................................. 427 719 Other expenses.................................................................................... 6,743 7,974 ------------ ------------ Total expenses before fee waivers, expense reimbursements, expense recoupments, custody credits and fees paid indirectly........................................................ 1,232,178 1,279,602 Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4)................ (19,229) 2,977 Custody credits earned on cash balances.......................................................... (576) (812) Fees paid indirectly (Note 5).................................................................... (10,996) (1,910) ------------ ------------ Net expenses..................................................................................... 1,201,377 1,279,857 ------------ ------------ Net investment income (loss)........................................................................ 1,111,423 (141,590) ------------ ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES: Net realized gain (loss) on investments (unaffiliated)**............................................ (2,339,147) 5,787,454 Net realized foreign exchange gain (loss) on other assets and liabilities........................... -- 119,382 Net realized gain (loss) on disposal of investments in violation of investment restrictions (Note 4) 12 -- ------------ ------------ Net realized gain (loss) on investments and foreign currencies...................................... (2,339,135) 5,906,836 ------------ ------------ Change in unrealized appreciation (depreciation) on investments (unaffiliated)...................... (12,259,785) (19,352,099) Change in unrealized foreign exchange gain (loss) on other assets and liabilities................... -- 17,454 Change in unrealized appreciation (depreciation) on securities sold short........................... (6,456) -- Change in accrued capital gains tax on unrealized appreciation (depreciation)....................... -- 7,115 ------------ ------------ Net unrealized gain (loss) on investments and foreign currencies.................................... (12,266,241) (19,327,530) ------------ ------------ Net realized and unrealized gain (loss) on investments and foreign currencies....................... (14,605,376) (13,420,694) ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................................... $(13,493,953) $(13,562,284) ============ ============ -------- *Net of foreign withholding taxes on interest and dividends of...................................... $ 9 $ 51,355 ============ ============ **Net of foreign withholding taxes on capital gains of.............................................. $ -- $ 7,121 ============ ============
Value Fund ------------ INVESTMENT INCOME: Dividends (unaffiliated).......................................................................... $ 2,619,866 Interest (unaffiliated)........................................................................... 150,128 ------------ Total investment income*......................................................................... 2,769,994 ------------ EXPENSES: Investment advisory and management fees........................................................... 980,721 Distribution and service maintenance fees Class A.......................................................................................... 192,973 Class B.......................................................................................... 164,704 Class C.......................................................................................... 107,470 Service fees Class I.............................................................................. 40 Transfer agent fees and expenses Class A.......................................................................................... 141,103 Class B.......................................................................................... 46,550 Class C.......................................................................................... 27,658 Class I.......................................................................................... 35 Registration fees Class A.......................................................................................... 7,188 Class B.......................................................................................... 5,181 Class C.......................................................................................... 5,318 Class I.......................................................................................... 4,134 Class Z.......................................................................................... 3,990 Custodian and accounting fees..................................................................... 35,312 Reports to shareholders........................................................................... 28,652 Audit and tax fees................................................................................ 16,975 Legal fees........................................................................................ 8,333 Trustees' fees and expenses....................................................................... 9,070 Interest expense.................................................................................. -- Other expenses.................................................................................... 8,232 ------------ Total expenses before fee waivers, expense reimbursements, expense recoupments, custody credits and fees paid indirectly........................................................ 1,793,639 Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4)................ (107,667) Custody credits earned on cash balances.......................................................... (9) Fees paid indirectly (Note 5).................................................................... (34,650) ------------ Net expenses..................................................................................... 1,651,313 ------------ Net investment income (loss)........................................................................ 1,118,681 ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES: Net realized gain (loss) on investments (unaffiliated)**............................................ (9,060,773) Net realized foreign exchange gain (loss) on other assets and liabilities........................... -- Net realized gain (loss) on disposal of investments in violation of investment restrictions (Note 4) -- ------------ Net realized gain (loss) on investments and foreign currencies...................................... (9,060,773) ------------ Change in unrealized appreciation (depreciation) on investments (unaffiliated)...................... (21,198,766) Change in unrealized foreign exchange gain (loss) on other assets and liabilities................... -- Change in unrealized appreciation (depreciation) on securities sold short........................... -- Change in accrued capital gains tax on unrealized appreciation (depreciation)....................... -- ------------ Net unrealized gain (loss) on investments and foreign currencies.................................... (21,198,766) ------------ Net realized and unrealized gain (loss) on investments and foreign currencies....................... (30,259,539) ------------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................................... $(29,140,858) ============ -------- *Net of foreign withholding taxes on interest and dividends of...................................... $ -- ============ **Net of foreign withholding taxes on capital gains of.............................................. $ -- ============
See Notes to Financial Statements 11 SunAmerica Equity Funds STATEMENT OF OPERATIONS -- For the period ended March 31, 2008 -- (unaudited) (continued)
Disciplined International Growth Small-Cap Fund Fund ------------ ------------- INVESTMENT INCOME: Dividends (unaffiliated).......................................................................... $ 336,752 $ 189,509 Interest (unaffiliated)........................................................................... 57,129 5,487 ------------ ----------- Total investment income*......................................................................... 393,881 194,996 ------------ ----------- EXPENSES: Investment advisory and management fees........................................................... 283,807 189,665 Distribution and service maintenance fees Class A.......................................................................................... 52,741 47,637 Class B.......................................................................................... 26,636 5,592 Class C.......................................................................................... 156,564 23,230 Service fees Class I.............................................................................. -- -- Transfer agent fees and expenses Class A.......................................................................................... 36,953 31,099 Class B.......................................................................................... 7,515 2,056 Class C.......................................................................................... 37,150 6,289 Class I.......................................................................................... -- -- Registration fees Class A.......................................................................................... 7,410 5,526 Class B.......................................................................................... 5,069 5,041 Class C.......................................................................................... 6,696 5,074 Class I.......................................................................................... -- -- Class Z.......................................................................................... -- -- Custodian and accounting fees..................................................................... 17,878 57,245 Reports to shareholders........................................................................... 994 2,135 Audit and tax fees................................................................................ 16,030 19,970 Legal fees........................................................................................ 14,555 5,317 Trustees' fees and expenses....................................................................... 2,585 1,162 Interest expense.................................................................................. 943 1,155 Other expenses.................................................................................... 9,718 9,519 ------------ ----------- Total expenses before fee waivers, expense reimbursements, expense recoupments, custody credits and fees paid indirectly........................................................ 683,244 417,712 Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4)................ (79,362) (85,587) Custody credits earned on cash balances.......................................................... (661) (31) Fees paid indirectly (Note 5).................................................................... (20,575) -- ------------ ----------- Net expenses..................................................................................... 582,646 332,094 ------------ ----------- Net investment income (loss)........................................................................ (188,765) (137,098) ------------ ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES: Net realized gain (loss) on investments (unaffiliated)**............................................ (3,791,738) (1,797,045) Net realized foreign exchange gain (loss) on other assets and liabilities........................... -- 29,680 Net realized gain (loss) on disposal of investments in violation of investment restrictions (Note 4) -- -- ------------ ----------- Net realized gain (loss) on investments and foreign currencies...................................... (3,791,738) (1,767,365) ------------ ----------- Change in unrealized appreciation (depreciation) on investments (unaffiliated)...................... (8,688,322) (3,706,775) Change in unrealized foreign exchange gain (loss) on other assets and liabilities................... 5,231 4,442 Change in unrealized appreciation (depreciation) on securities sold short........................... -- -- Change in accrued capital gain tax on unrealized appreciation (depreciation)........................ -- -- ------------ ----------- Net unrealized gain (loss) on investments and foreign currencies.................................... (8,683,091) (3,702,333) ------------ ----------- Net realized and unrealized gain (loss) on investments and foreign currencies....................... (12,474,829) (5,469,698) ------------ ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................................... $(12,663,594) $(5,606,796) ============ =========== -------- *Net of foreign withholding taxes on interest and dividends of...................................... $ 1,847 $ 15,856 ============ =========== **Net of foreign withholding taxes on capital gains of.............................................. $ -- $ -- ============ ===========
See Notes to Financial Statements 12 SunAmerica Equity Funds STATEMENT OF CHANGES IN NET ASSETS
Blue Chip Growth Fund -------------------------- For the six months ended For the year March 31, ended 2008 September 30, (unaudited) 2007 ------------ ------------- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss).......................................................... $ (276,491) $ (428,681) Net realized gain (loss) on investments and foreign currencies........................ 197,902 4,257,622 Net unrealized gain (loss) on investments and foreign currencies...................... (8,111,715) 8,515,725 ------------ ------------ Net increase (decrease) in net assets resulting from operations......................... (8,190,304) 12,344,666 ------------ ------------ Distributions to shareholders from: Net investment income (Class A)....................................................... -- -- Net investment income (Class B)....................................................... -- -- Net investment income (Class C)....................................................... -- -- Net investment income (Class I)....................................................... -- -- Net investment income (Class Z)....................................................... -- -- Net realized gain on securities (Class A)............................................. -- -- Net realized gain on securities (Class B)............................................. -- -- Net realized gain on securities (Class C)............................................. -- -- Net realized gain on securities (Class I)............................................. -- -- Net realized gain on securities (Class Z)............................................. -- -- ------------ ------------ Total distributions to shareholders..................................................... -- -- ------------ ------------ Net increase (decrease) in net assets resulting from capital share transactions (Note 8) (2,875,920) (13,625,270) ------------ ------------ Total increase (decrease) in net assets................................................. (11,066,224) (1,280,604) NET ASSETS: Beginning of period..................................................................... 70,907,407 72,188,011 ------------ ------------ End of period+.......................................................................... $ 59,841,183 $ 70,907,407 ============ ============ -------- +Includes accumulated undistributed net investment income (loss)........................ $ (304,829) $ (28,338) ============ ============
Growth Opportunities Fund -------------------------- For the six months ended For the year March 31, ended 2008 September 30, (unaudited) 2007 ------------ ------------- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss).......................................................... $ (204,739) $ (729,282) Net realized gain (loss) on investments and foreign currencies........................ (13,074,061) 11,409,851 Net unrealized gain (loss) on investments and foreign currencies...................... (105,811) (1,842,299) ------------ ------------ Net increase (decrease) in net assets resulting from operations......................... (13,384,611) 8,838,270 ------------ ------------ Distributions to shareholders from: Net investment income (Class A)....................................................... -- -- Net investment income (Class B)....................................................... -- -- Net investment income (Class C)....................................................... -- -- Net investment income (Class I)....................................................... -- -- Net investment income (Class Z)....................................................... -- -- Net realized gain on securities (Class A)............................................. -- -- Net realized gain on securities (Class B)............................................. -- -- Net realized gain on securities (Class C)............................................. -- -- Net realized gain on securities (Class I)............................................. -- -- Net realized gain on securities (Class Z)............................................. -- -- ------------ ------------ Total distributions to shareholders..................................................... -- -- ------------ ------------ Net increase (decrease) in net assets resulting from capital share transactions (Note 8) (8,030,379) (14,171,956) ------------ ------------ Total increase (decrease) in net assets................................................. (21,414,990) (5,333,686) NET ASSETS: Beginning of period..................................................................... 63,250,795 68,584,481 ------------ ------------ End of period+.......................................................................... $ 41,835,805 $ 63,250,795 ============ ============ -------- +Includes accumulated undistributed net investment income (loss)........................ $ (229,605) $ (24,866) ============ ============
See Notes to Financial Statements 13 SunAmerica Equity Funds STATEMENT OF CHANGES IN NET ASSETS -- (continued)
New Century Fund -------------------------- For the six months ended For the year March 31, ended 2008 September 30, (unaudited) 2007 ------------ ------------- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss).......................................................... $ (307,395) $ (294,293) Net realized gain (loss) on investments and foreign currencies........................ (20,014,411) 18,717,708 Net unrealized gain (loss) on investments and foreign currencies...................... (1,301,648) (1,684,002) ------------ ------------ Net increase (decrease) in net assets resulting from operations......................... (21,623,454) 16,739,413 ------------ ------------ Distributions to shareholders from: Net investment income (Class A)....................................................... -- -- Net investment income (Class B)....................................................... -- -- Net investment income (Class C)....................................................... -- -- Net investment income (Class I)....................................................... -- -- Net investment income (Class Z)....................................................... -- -- Net realized gain on securities (Class A)............................................. -- -- Net realized gain on securities (Class B)............................................. -- -- Net realized gain on securities (Class C)............................................. -- -- Net realized gain on securities (Class I)............................................. -- -- Net realized gain on securities (Class Z)............................................. -- -- ------------ ------------ Total distributions to shareholders..................................................... -- -- ------------ ------------ Net increase (decrease) in net assets resulting from capital share transactions (Note 8) (10,030,054) 3,329,307 ------------ ------------ Total increase (decrease) in net assets................................................. (31,653,508) 20,068,720 NET ASSETS: Beginning of period..................................................................... 105,034,183 84,965,463 ------------ ------------ End of period+.......................................................................... $ 73,380,675 $105,034,183 ============ ============ -------- +Includes accumulated undistributed net investment income (loss)........................ $ (356,931) $ (49,536) ============ ============
Growth and Income Fund -------------------------- For the six months ended For the year March 31, ended 2008 September 30, (unaudited) 2007 ------------ ------------- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss).......................................................... $ 409,347 $ 242,350 Net realized gain (loss) on investments and foreign currencies........................ (522,659) 15,197,922 Net unrealized gain (loss) on investments and foreign currencies...................... (12,714,539) 3,277,428 ------------ ------------ Net increase (decrease) in net assets resulting from operations......................... (12,827,851) 18,717,700 ------------ ------------ Distributions to shareholders from: Net investment income (Class A)....................................................... (240,971) -- Net investment income (Class B)....................................................... -- -- Net investment income (Class C)....................................................... -- -- Net investment income (Class I)....................................................... (1,451) -- Net investment income (Class Z)....................................................... -- -- Net realized gain on securities (Class A)............................................. -- -- Net realized gain on securities (Class B)............................................. -- -- Net realized gain on securities (Class C)............................................. -- -- Net realized gain on securities (Class I)............................................. -- -- Net realized gain on securities (Class Z)............................................. -- -- ------------ ------------ Total distributions to shareholders..................................................... (242,422) -- ------------ ------------ Net increase (decrease) in net assets resulting from capital share transactions (Note 8) (9,116,370) (24,101,118) ------------ ------------ Total increase (decrease) in net assets................................................. (22,186,643) (5,383,418) NET ASSETS: Beginning of period..................................................................... 110,698,272 116,081,690 ------------ ------------ End of period+.......................................................................... $ 88,511,629 $110,698,272 ============ ============ -------- +Includes accumulated undistributed net investment income (loss)........................ $ 371,124 $ 204,199 ============ ============
See Notes to Financial Statements 14 SunAmerica Equity Funds STATEMENT OF CHANGES IN NET ASSETS -- (continued)
Balanced Assets Fund -------------------------- For the six months ended For the year March 31, ended 2008 September 30, (unaudited) 2007 INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss).......................................................... $ 1,111,423 $ 2,415,467 Net realized gain (loss) on investments and foreign currencies........................ (2,339,135) 10,008,735 Net unrealized gain (loss) on investments and foreign currencies...................... (12,266,241) 6,132,057 ------------ ------------ Net increase (decrease) in net assets resulting from operations......................... (13,493,953) 18,556,259 ------------ ------------ Distributions to shareholders from: Net investment income (Class A)....................................................... (994,543) (1,990,178) Net investment income (Class B)....................................................... (65,973) (133,492) Net investment income (Class C)....................................................... (64,473) (113,780) Net investment income (Class I)....................................................... (6,049) (13,500) Net investment income (Class Z)....................................................... -- -- Net realized gain on securities (Class A)............................................. -- -- Net realized gain on securities (Class B)............................................. -- -- Net realized gain on securities (Class C)............................................. -- -- Net realized gain on securities (Class I)............................................. -- -- Net realized gain on securities (Class Z)............................................. -- -- ------------ ------------ Total distributions to shareholders..................................................... (1,131,038) (2,250,950) ------------ ------------ Net increase (decrease) in net assets resulting from capital share transactions (Note 8) (9,208,436) (26,486,903) ------------ ------------ Total increase (decrease) in net assets................................................. (23,833,427) (10,181,594) NET ASSETS: Beginning of period..................................................................... 153,513,055 163,694,649 ------------ ------------ End of period+.......................................................................... $129,679,628 $153,513,055 ============ ============ -------- +Includes accumulated undistributed net investment income (loss)........................ $ 217,320 $ 236,935 ============ ============
International Equity Fund -------------------------- For the six months ended For the year March 31, ended 2008 September 30, (unaudited) 2007 INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss).......................................................... $ (141,590) $ (141,323) Net realized gain (loss) on investments and foreign currencies........................ 5,906,836 13,471,646 Net unrealized gain (loss) on investments and foreign currencies...................... (19,327,530) 13,664,189 ------------ ------------ Net increase (decrease) in net assets resulting from operations......................... (13,562,284) 26,994,512 ------------ ------------ Distributions to shareholders from: Net investment income (Class A)....................................................... -- -- Net investment income (Class B)....................................................... -- -- Net investment income (Class C)....................................................... -- -- Net investment income (Class I)....................................................... -- -- Net investment income (Class Z)....................................................... -- -- Net realized gain on securities (Class A)............................................. (6,405,167) -- Net realized gain on securities (Class B)............................................. (1,777,695) -- Net realized gain on securities (Class C)............................................. (2,438,019) -- Net realized gain on securities (Class I)............................................. (706,303) -- Net realized gain on securities (Class Z)............................................. -- -- ------------ ------------ Total distributions to shareholders..................................................... (11,327,184) -- ------------ ------------ Net increase (decrease) in net assets resulting from capital share transactions (Note 8) 2,689,932 (10,955,655) ------------ ------------ Total increase (decrease) in net assets................................................. (22,199,536) 16,038,857 NET ASSETS: Beginning of period..................................................................... 130,596,089 114,557,232 ------------ ------------ End of period+.......................................................................... $108,396,553 $130,596,089 ============ ============ -------- +Includes accumulated undistributed net investment income (loss)........................ $ (266,861) $ (125,271) ============ ============
See Notes to Financial Statements 15 SunAmerica Equity Funds STATEMENT OF CHANGES IN NET ASSETS -- (continued)
Value Fund -------------------------- For the six months ended For the year March 31, ended 2008 September 30, (unaudited) 2007 ------------ ------------- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss).......................................................... $ 1,118,681 $ 1,902,699 Net realized gain (loss) on investments and foreign currencies........................ (9,060,773) 30,254,544 Net unrealized gain (loss) on investments and foreign currencies...................... (21,198,766) 1,556,544 ------------ ------------ Net increase (decrease) in net assets resulting from operations......................... (29,140,858) 33,713,787 ------------ ------------ Distributions to shareholders from: Net investment income (Class A)....................................................... (1,348,358) (1,037,323) Net investment income (Class B)....................................................... (210,886) (138,581) Net investment income (Class C)....................................................... (136,301) (102,287) Net investment income (Class I)....................................................... (425) (285) Net investment income (Class Z)....................................................... (468,653) (294,735) Net realized gain on securities (Class A)............................................. (17,163,009) (13,182,325) Net realized gain on securities (Class B)............................................. (5,445,543) (5,278,693) Net realized gain on securities (Class C)............................................. (3,519,589) (3,896,204) Net realized gain on securities (Class I)............................................. (4,981) (3,186) Net realized gain on securities (Class Z)............................................. (4,579,895) (2,693,654) ------------ ------------ Total distributions to shareholders..................................................... (32,877,640) (26,627,273) ------------ ------------ Net increase (decrease) in net assets resulting from capital share transactions (Note 8) 5,768,999 (5,899,264) ------------ ------------ Total increase (decrease) in net assets................................................. (56,249,499) 1,187,250 NET ASSETS: Beginning of period..................................................................... 226,892,019 225,704,769 ------------ ------------ End of period+.......................................................................... $170,642,520 $226,892,019 ============ ============ -------- +Includes accumulated undistributed net investment income (loss)........................ $ 567,247 $ 1,613,189 ============ ============
See Notes to Financial Statements 16 SunAmerica Equity Funds STATEMENT OF CHANGES IN NET ASSETS -- (continued)
Disciplined Growth Fund -------------------------- For the six months ended For the year March 31, ended 2008 September 30, (unaudited) 2007 ------------ ------------- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss).......................................................... $ (188,765) $ (359,066) Net realized gain (loss) on investments and foreign currencies........................ (3,791,738) 10,478,279 Net unrealized gain (loss) on investments and foreign currencies...................... (8,683,091) 5,722,460 ------------ ------------ Net increase (decrease) in net assets resulting from operations......................... (12,663,594) 15,841,673 ------------ ------------ Distributions to shareholders from: Net investment income (Class A)....................................................... -- -- Net investment income (Class B)....................................................... -- -- Net investment income (Class C)....................................................... -- -- Net investment income (Class I)....................................................... -- -- Net investment income (Class Z)....................................................... -- -- Net realized gain on securities (Class A)............................................. -- -- Net realized gain on securities (Class B)............................................. -- -- Net realized gain on securities (Class C)............................................. -- -- Net realized gain on securities (Class I)............................................. -- -- Net realized gain on securities (Class Z)............................................. -- -- ------------ ------------ Total distributions to shareholders..................................................... -- -- ------------ ------------ Net increase (decrease) in net assets resulting from capital share transactions (Note 8) 14,075,500 (14,243,867) ------------ ------------ Total increase (decrease) in net assets................................................. 1,411,906 1,597,806 NET ASSETS: Beginning of period..................................................................... 60,376,944 58,779,138 ------------ ------------ End of period+.......................................................................... $ 61,788,850 $ 60,376,944 ============ ============ -------- +Includes accumulated undistributed net investment income (loss)........................ $ (197,835) $ (9,070) ============ ============
International Small-Cap Fund --------------------------- For the six months ended For the year March 31, ended 2008 September 30, (unaudited) 2007 ----------- ------------- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss).......................................................... $ (137,098) $ (126,780) Net realized gain (loss) on investments and foreign currencies........................ (1,767,365) 1,240,543 Net unrealized gain (loss) on investments and foreign currencies...................... (3,702,333) 5,861,549 ----------- ----------- Net increase (decrease) in net assets resulting from operations......................... (5,606,796) 6,975,312 ----------- ----------- Distributions to shareholders from: Net investment income (Class A)....................................................... -- -- Net investment income (Class B)....................................................... -- -- Net investment income (Class C)....................................................... -- -- Net investment income (Class I)....................................................... -- -- Net investment income (Class Z)....................................................... -- -- Net realized gain on securities (Class A)............................................. (305,914) -- Net realized gain on securities (Class B)............................................. (12,418) -- Net realized gain on securities (Class C)............................................. (55,061) -- Net realized gain on securities (Class I)............................................. -- -- Net realized gain on securities (Class Z)............................................. -- -- ----------- ----------- Total distributions to shareholders..................................................... (373,393) -- ----------- ----------- Net increase (decrease) in net assets resulting from capital share transactions (Note 8) (1,339,039) 4,903,738 ----------- ----------- Total increase (decrease) in net assets................................................. (7,319,228) 11,879,050 NET ASSETS: Beginning of period..................................................................... 37,382,974 25,503,924 ----------- ----------- End of period+.......................................................................... $30,063,746 $37,382,974 =========== =========== -------- +Includes accumulated undistributed net investment income (loss)........................ $ (137,348) $ (250) =========== ===========
See Notes to Financial Statements 17 SunAmerica Equity Funds FINANCIAL HIGHLIGHTS
BLUE CHIP GROWTH FUND --------------------- Net gain (loss) on Net investments Distri- Net Net Asset Net (both Dividends butions Asset Assets Ratio of Value investment realized Total from from net from Total Value end of expenses beginning income and investment investment capital distri- end of Total period to average Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's) net assets ------------ --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- ------- ---------- Class A - 09/30/03 $11.15 $(0.06) $ 2.03 $ 1.97 $-- $-- $-- $13.12 17.67% $64,672 1.54% 09/30/04 13.12 (0.08) 1.05 0.97 -- -- -- 14.09 7.39 62,316 1.60 09/30/05 14.09 (0.01) 1.13 1.12 -- -- -- 15.21 7.95 56,755 1.59 09/30/06 15.21 (0.07) 0.55 0.48 -- -- -- 15.69 3.16 49,539 1.55(3)(4) 09/30/07 15.69 (0.07) 3.12 3.05 -- -- -- 18.74 19.44 51,961 1.60(3)(4) 03/31/08(6) 18.74 (0.06) (2.11) (2.17) -- -- -- 16.57 (11.58)(7) 44,680 1.62(4)(5) Class B - 09/30/03 $10.20 $(0.14) $ 1.84 $ 1.70 $-- $-- $-- $11.90 16.67% $30,263 2.32% 09/30/04 11.90 (0.16) 0.96 0.80 -- -- -- 12.70 6.72 27,946 2.26 09/30/05 12.70 (0.11) 1.02 0.91 -- -- -- 13.61 7.17 22,558 2.32 09/30/06 13.61 (0.17) 0.50 0.33 -- -- -- 13.94 2.42 17,479 2.29(3)(4) 09/30/07 13.94 (0.17) 2.75 2.58 -- -- -- 16.52 18.51 14,314 2.36(3)(4) 03/31/08(6) 16.52 (0.11) (1.86) (1.97) -- -- -- 14.55 (11.92)(7) 10,668 2.39(4)(5) Class C+ - 09/30/03 $10.18 $(0.16) $ 1.85 $ 1.69 $-- $-- $-- $11.87 16.60% $ 7,286 2.44% 09/30/04 11.87 (0.18) 0.96 0.78 -- -- -- 12.65 6.57 6,458 2.37 09/30/05 12.65 (0.13) 1.01 0.88 -- -- -- 13.53 6.96 5,278 2.49 09/30/06 13.53 (0.17) 0.50 0.33 -- -- -- 13.86 2.44 4,528 2.30(3)(4) 09/30/07 13.86 (0.20) 2.73 2.53 -- -- -- 16.39 18.25 3,959 2.55(3)(4) 03/31/08(6) 16.39 (0.12) (1.84) (1.96) -- -- -- 14.43 (11.96)(7) 3,910 2.51(4)(5) Class I - 09/30/03 $11.16 $(0.04) $ 2.04 $ 2.00 $-- $-- $-- $13.16 17.92% $19,778 1.33%(3) 09/30/04 13.16 (0.04) 1.05 1.01 -- -- -- 14.17 7.67 2,164 1.33(3) 09/30/05 14.17 0.03 1.14 1.17 -- -- -- 15.34 8.26 1,454 1.33(3) 09/30/06 15.34 (0.04) 0.57 0.53 -- -- -- 15.87 3.45 642 1.28(3)(4) 09/30/07 15.87 (0.02) 3.16 3.14 -- -- -- 19.01 19.79 673 1.32(3)(4) 03/31/08(6) 19.01 (0.03) (2.15) (2.18) -- -- -- 16.83 (11.47)(7) 584 1.33(3)(4)(5)
Ratio of net investment income (loss) to average Portfolio net assets Turnover ------------- --------- (0.50)% 114% (0.59) 145 (0.09) 120 (0.45)(3)(4) 154 (0.40)(3)(4) 72 (0.65)(4)(5) 34 (1.28)% 114% (1.25) 145 (0.80) 120 (1.20)(3)(4) 154 (1.14)(3)(4) 72 (1.42)(4)(5) 34 (1.40)% 114% (1.37) 145 (0.98) 120 (1.21)(3)(4) 154 (1.35)(3)(4) 72 (1.53)(4)(5) 34 (0.29)%(3) 114% (0.26)(3) 145 0.22(3) 120 (0.22)(3)(4) 154 (0.11)(3)(4) 72 (0.36)(3)(4)(5) 34
-------- (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/fee waivers (based on average net assets):
09/30/03 09/30/04 09/30/05 09/30/06 09/30/07 03/31/08(5)(6) -------- -------- -------- -------- -------- -------------- Blue Chip Growth Class A................ -- % -- % -- % 0.05% 0.01% -- % Blue Chip Growth Class B................ -- -- -- 0.05 0.02 -- Blue Chip Growth Class C+............... -- -- -- 0.05 0.02 -- Blue Chip Growth Class I................ 0.33 0.13 0.49 1.15 1.92 1.67
(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 03/31/08(5)(6) -------- -------- -------------- Blue Chip Growth Class A................ 0.01% 0.01% 0.01% Blue Chip Growth Class B................ 0.01 0.01 0.01 Blue Chip Growth Class C+............... 0.01 0.01 0.01 Blue Chip Growth Class I................ 0.01 0.01 0.01
(5)Annualized (6)Unaudited (7)The Fund's performance was increased by less than 0.01% from gains on disposal of investments in violation of investment restrictions. (See Note 4) + Effective February 23, 2004, Class II shares were redesignated to Class C shares. See Notes to Financial Statements 18 SunAmerica Equity Funds FINANCIAL HIGHLIGHTS -- (continued)
GROWTH OPPORTUNITIES FUND ------------------------- Net gain (loss) on Net investments Distri- Net Net Asset Net (both Dividends butions Asset Assets Ratio of Value investment realized Total from from net from Total Value end of expenses beginning income and investment investment capital distri- end of Total period to average Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's) net assets ------------ --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- ------- ---------- Class A - 09/30/03 $ 9.99 $(0.13) $ 3.88 $ 3.75 $-- $-- $-- $13.74 37.54% $62,600 1.63% 09/30/04 13.74 (0.16) 0.07 (0.09) -- -- -- 13.65 (0.66)(3) 49,918 1.58 09/30/05 13.65 (0.17) 2.79 2.62 -- -- -- 16.27 19.19 44,641 1.65 09/30/06 16.27 (0.12) 0.89 0.77 -- -- -- 17.04 4.73 37,382 1.59(4)(5) 09/30/07 17.04 (0.14) 2.41 2.27 -- -- -- 19.31 13.32 39,646 1.62(4)(5) 03/31/08(7) 19.31 (0.05) (4.36) (4.41) -- -- -- 14.90 (22.84) 27,504 1.74(5)(6) Class B - 09/30/03 $ 9.11 $(0.20) $ 3.53 $ 3.33 $-- $-- $-- $12.44 36.55% $38,870 2.36% 09/30/04 12.44 (0.24) 0.07 (0.17) -- -- -- 12.27 (1.37)(3) 31,429 2.27 09/30/05 12.27 (0.25) 2.50 2.25 -- -- -- 14.52 18.34 27,673 2.32 09/30/06 14.52 (0.21) 0.79 0.58 -- -- -- 15.10 3.99 21,500 2.30(4)(5) 09/30/07 15.10 (0.25) 2.15 1.90 -- -- -- 17.00 12.58 15,229 2.31(4)(5) 03/31/08(7) 17.00 (0.10) (3.84) (3.94) -- -- -- 13.06 (23.18) 9,098 2.49(5)(6) Class C+ - 09/30/03 $ 9.10 $(0.20) $ 3.53 $ 3.33 $-- $-- $-- $12.43 36.59% $19,808 2.33% 09/30/04 12.43 (0.24) 0.06 (0.18) -- -- -- 12.25 (1.45)(3) 14,599 2.29 09/30/05 12.25 (0.26) 2.51 2.25 -- -- -- 14.50 18.37 12,089 2.39 09/30/06 14.50 (0.21) 0.79 0.58 -- -- -- 15.08 4.00 9,281 2.28(4)(5) 09/30/07 15.08 (0.26) 2.14 1.88 -- -- -- 16.96 12.47 8,230 2.38(4)(5) 03/31/08(7) 16.96 (0.10) (3.83) (3.93) -- -- -- 13.03 (23.17) 5,126 2.52(5)(6) Class I - 09/30/03 $10.00 $(0.10) $ 3.90 $ 3.80 $-- $-- $-- $13.80 38.00% $ 4,404 1.33%(4) 09/30/04 13.80 (0.13) 0.08 (0.05) -- -- -- 13.75 (0.36)(3) 3,493 1.33(4) 09/30/05 13.75 (0.13) 2.82 2.69 -- -- -- 16.44 19.56 1,759 1.33(4) 09/30/06 16.44 (0.06) 0.88 0.82 -- -- -- 17.26 4.99 422 1.28(4)(5) 09/30/07 17.26 (0.06) 2.42 2.36 -- -- -- 19.62 13.67 145 1.32(4)(5) 03/31/08(7) 19.62 (0.01) (4.43) (4.44) -- -- -- 15.18 (22.63) 108 1.33(4)(5)(6)
Ratio of net investment income (loss) to average Portfolio net assets Turnover ------------- --------- (1.11)% 204% (1.09) 170 (1.15) 86 (0.76)(4)(5) 278 (0.79)(4)(5) 321 (0.73)(5)(6) 192 (1.85)% 204% (1.78) 170 (1.82) 86 (1.46)(4)(5) 278 (1.48)(4)(5) 321 (1.47)(5)(6) 192 (1.82)% 204% (1.80) 170 (1.89) 86 (1.44)(4)(5) 278 (1.56)(4)(5) 321 (1.51)(5)(6) 192 (0.82)%(4) 204% (0.85)(4) 170 (0.85)(4) 86 (0.35)(4)(5) 278 (0.34)(4)(5) 321 (0.31)(4)(5)(6) 192
-------- (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load. Total return does include expense reimbursements and expense reductions. (3)The Fund's total return increased from a gain realized on the disposal of investments in violation of investment restrictions on Class A 0.07%, Class B 0.10%, Class C 0.10% and Class I 0.08%. (4)Net of the following expense reimbursements/fee waivers (based on average net assets):
09/30/03 09/30/04 09/30/05 09/30/06 09/30/07 03/31/08(6)(7) -------- -------- -------- -------- -------- -------------- Growth Opportunities Class A............ -- % -- % -- % 0.05% 0.00% -- % Growth Opportunities Class B............ -- -- -- 0.05 0.01 -- Growth Opportunities Class C+........... -- -- -- 0.05 0.01 -- Growth Opportunities Class I............ 0.50 0.18 0.49 1.59 5.77 7.98
(5)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 03/31/08(6)(7) -------- -------- -------------- Growth Opportunities Class A............ 0.04% 0.05% 0.20% Growth Opportunities Class B............ 0.04 0.05 0.20 Growth Opportunities Class C+........... 0.04 0.05 0.20 Growth Opportunities Class I............ 0.03 0.05 0.19
(6)Annualized (7)Unaudited + Effective February 23, 2004, Class II shares were redesignated to Class C shares. See Notes to Financial Statements 19 SunAmerica Equity Funds FINANCIAL HIGHLIGHTS -- (continued)
NEW CENTURY FUND ---------------- Net gain (loss) on Net investments Distri- Net Net Asset Net (both Dividends butions Asset Assets Ratio of Value investment realized Total from from net from Total Value end of expenses beginning income and investment investment capital distri- end of Total period to average Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's) net assets ------------ --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- ------- ---------- Class A - 09/30/03 $11.22 $(0.13) $ 2.35 $ 2.22 $-- $-- $-- $13.44 19.79% $85,685 1.57% 09/30/04 13.44 (0.17) 1.50 1.33 -- -- -- 14.77 9.90 80,872 1.57 09/30/05 14.77 (0.15) 3.38 3.23 -- -- -- 18.00 21.87 87,314 1.58 09/30/06 18.00 (0.07) 0.67 0.60 -- -- -- 18.60 3.33 75,682 1.55(4) 09/30/07 18.60 (0.04) 3.53 3.49 -- -- -- 22.09 18.76 88,535 1.55(4) 03/31/08(6) 22.09 (0.06) (4.73) (4.79) -- -- -- 17.30 (21.68) 62,753 1.60(4)(5) Class B - 09/30/03 $10.11 $(0.20) $ 2.12 $ 1.92 $-- $-- $-- $12.03 18.99% $16,078 2.28% 09/30/04 12.03 (0.25) 1.35 1.10 -- -- -- 13.13 9.14 11,415 2.29 09/30/05 13.13 (0.25) 3.00 2.75 -- -- -- 15.88 20.94 10,344 2.32 09/30/06 15.88 (0.19) 0.60 0.41 -- -- -- 16.29 2.58 7,528 2.29(4) 09/30/07 16.29 (0.18) 3.09 2.91 -- -- -- 19.20 17.86 10,701 2.31(4) 03/31/08(6) 19.20 (0.12) (4.11) (4.23) -- -- -- 14.97 (22.03) 6,793 2.41(4)(5) Class C+ - 09/30/03 $10.09 $(0.18) $ 2.11 $ 1.93 $-- $-- $-- $12.02 19.13% $ 2,183 2.14%(3) 09/30/04 12.02 (0.22) 1.34 1.12 -- -- -- 13.14 9.32 2,180 2.10(3) 09/30/05 13.14 (0.22) 3.02 2.80 -- -- -- 15.94 21.31 1,964 2.14(3) 09/30/06 15.94 (0.16) 0.59 0.43 -- -- -- 16.37 2.70 1,756 2.14(3)(4) 09/30/07 16.37 (0.16) 3.11 2.95 -- -- -- 19.32 18.02 5,798 2.14(3)(4) 03/31/08(6) 19.32 (0.10) (4.13) (4.23) -- -- -- 15.09 (21.89) 3,835 2.14(3)(4)(5)
Ratio of net investment income (loss) to average Portfolio net assets Turnover ------------- --------- (1.08)% 123% (1.20) 110 (0.89) 80 (0.39)(4) 235 (0.20)(4) 315 (0.67)(4)(5) 188 (1.77)% 123% (1.91) 110 (1.64) 80 (1.14)(4) 235 (1.00)(4) 315 (1.48)(4)(5) 188 (1.63)%(3) 123% (1.73)(3) 110 (1.45)(3) 80 (0.98)(3)(4) 235 (0.88)(3)(4) 315 (1.21)(3)(4)(5) 188
-------- (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load. Total return does include expense reimbursements and expense reductions. (3)Net of the following expense reimbursements (based on average net assets):
09/30/03 09/30/04 09/30/05 09/30/06 09/30/07 03/31/08(5)(6) -------- -------- -------- -------- -------- -------------- New Century Class C+.................... 0.66% 0.48% 0.66% 0.44% 0.35% 0.35%
(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 03/31/08(5)(6) -------- -------- -------------- New Century Class A..................... 0.01% 0.02% 0.08% New Century Class B..................... 0.01 0.02 0.08 New Century Class C..................... 0.01 0.03 0.08
(5)Annualized (6)Unaudited + Effective February 23, 2004, Class II shares were redesignated to Class C shares. See Notes to Financial Statements 20 SunAmerica Equity Funds FINANCIAL HIGHLIGHTS -- (continued)
GROWTH AND INCOME FUND ---------------------- Net gain (loss) on Net investments Distri- Net Net Asset Net (both Dividends butions Asset Assets Ratio of Value investment realized Total from from net from Total Value end of expenses beginning income and investment investment capital distri- end of Total period to average Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's) net assets ------------ --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- ------- ---------- Class A - 09/30/03 $ 8.87 $ 0.01 $ 1.31 $ 1.32 $ -- $-- $ -- $10.19 14.88% $70,826 1.50% 09/30/04 10.19 0.00 1.19 1.19 -- -- -- 11.38 11.68 69,069 1.50 09/30/05 11.38 0.10 1.03 1.13 (0.11) -- (0.11) 12.40 9.89 65,666 1.55 09/30/06 12.40 0.04 1.01 1.05 (0.02) -- (0.02) 13.43 8.47 61,872 1.54(3)(4) 09/30/07 13.43 0.07 2.38 2.45 -- -- -- 15.88 18.24 66,963 1.52(3)(4) 03/31/08(6) 15.88 0.08 (1.96) (1.88) (0.06) -- (0.06) 13.94 (11.88) 56,171 1.57(4)(5) Class B - 09/30/03 $ 8.49 $(0.06) $ 1.26 $ 1.20 $ -- $-- $ -- $ 9.69 14.13% $66,378 2.16% 09/30/04 9.69 (0.07) 1.13 1.06 -- -- -- 10.75 10.94 54,199 2.17 09/30/05 10.75 0.02 0.97 0.99 -- -- -- 11.74 9.21 41,120 2.20 09/30/06 11.74 (0.05) 0.96 0.91 -- -- -- 12.65 7.75 27,100 2.22(3)(4) 09/30/07 12.65 (0.03) 2.23 2.20 -- -- -- 14.85 17.39 19,562 2.21(3)(4) 03/31/08(6) 14.85 0.03 (1.84) (1.81) -- -- -- 13.04 (12.19) 13,708 2.29(4)(5) Class C+ - 09/30/03 $ 8.48 $(0.06) $ 1.25 $ 1.19 $ -- $-- $ -- $ 9.67 14.03% $49,593 2.16% 09/30/04 9.67 (0.07) 1.13 1.06 -- -- -- 10.73 10.96 43,993 2.14 09/30/05 10.73 0.02 0.97 0.99 -- -- -- 11.72 9.23 37,448 2.18 09/30/06 11.72 (0.04) 0.95 0.91 -- -- -- 12.63 7.76 26,821 2.19(3)(4) 09/30/07 12.63 (0.02) 2.23 2.21 -- -- -- 14.84 17.50 23,851 2.19(3)(4) 03/31/08(6) 14.84 0.03 (1.84) (1.81) -- -- -- 13.03 (12.20) 18,324 2.25(4)(5) Class I - 09/30/03 $ 8.88 $ 0.02 $ 1.31 $ 1.33 $ -- $-- $ -- $10.21 14.98% $12,899 1.32%(3) 09/30/04 10.21 0.02 1.18 1.20 -- -- -- 11.41 11.75 769 1.32(3) 09/30/05 11.41 0.12 1.04 1.16 (0.14) -- (0.14) 12.43 10.18 758 1.31(3) 09/30/06 12.43 0.07 1.01 1.08 (0.04) -- (0.04) 13.47 8.69 288 1.32(3)(4) 09/30/07 13.47 0.11 2.38 2.49 -- -- -- 15.96 18.49 323 1.31(3)(4) 03/31/08(6) 15.96 0.10 (1.97) (1.87) (0.07) -- (0.07) 14.02 (11.76) 309 1.32(3)(4)(5)
Ratio of net investment income (loss) to average Portfolio net assets Turnover ------------- --------- 0.06% 123% 0.01 139 0.78 79 0.31(3)(4) 152 0.49(3)(4) 164 1.05(4)(5) 137 (0.59)% 123% (0.67) 139 0.16 79 (0.39)(3)(4) 152 (0.21)(3)(4) 164 0.32(4)(5) 137 (0.60)% 123% (0.64) 139 0.17 79 (0.36)(3)(4) 152 (0.18)(3)(4) 164 0.37(4)(5) 137 0.23%(3) 123% 0.19(3) 139 1.00(3) 79 0.48(3)(4) 152 0.70(3)(4) 164 1.29(3)(4)(5) 137
-------- (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/fee waivers (based on average net assets):
09/30/03 09/30/04 09/30/05 09/30/06 09/30/07 03/31/08(5)(6) -------- -------- -------- -------- -------- -------------- Growth and Income Class A............... -- % -- % -- % 0.00% 0.01% -- % Growth and Income Class B............... -- -- -- 0.00 0.01 -- Growth and Income Class C+.............. -- -- -- 0.00 0.01 -- Growth and Income Class I............... 0.37 0.14 0.96 2.23 3.72 3.37
(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 03/31/08(5)(6) -------- -------- -------------- Growth and Income Class A............... 0.01% 0.02% 0.04% Growth and Income Class B............... 0.01 0.02 0.04 Growth and Income Class C+.............. 0.01 0.02 0.04 Growth and Income Class I............... 0.01 0.02 0.04
(5)Annualized (6)Unaudited + Effective February 23, 2004, Class II shares were redesignated to Class C shares. See Notes to Financial Statements 21 SunAmerica Equity Funds FINANCIAL HIGHLIGHTS -- (continued)
BALANCED ASSETS FUND -------------------- Net gain (loss) on Net investments Distri- Net Net Asset Net (both Dividends butions Asset Assets Ratio of Value investment realized Total from from net from Total Value end of expenses beginning income and investment investment capital distri- end of Total period to average Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's) net assets ------------ --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- -------- ---------- Class A - 09/30/03 $11.79 $0.10 $ 0.68 $ 0.78 $(0.12) $-- $(0.12) $12.45 6.65% $175,324 1.49% 09/30/04 12.45 0.12 0.78 0.90 (0.16) -- (0.16) 13.19 7.27 160,269 1.50 09/30/05 13.19 0.21 0.56 0.77 (0.24) -- (0.24) 13.72 5.84 142,573 1.62 09/30/06 13.72 0.22 0.58 0.80 (0.25) -- (0.25) 14.27 5.90 127,313 1.52(3)(4) 09/30/07 14.27 0.25 1.52 1.77 (0.24) -- (0.24) 15.80 12.50 124,257 1.55(3)(4) 03/31/08(6) 15.80 0.13 (1.56) (1.43) (0.13) -- (0.13) 14.24 (9.08)(7) 106,273 1.59(3)(4)(5) Class B - 09/30/03 $11.74 $0.03 $ 0.68 $ 0.71 $(0.04) $-- $(0.04) $12.41 6.07% $ 47,496 2.16% 09/30/04 12.41 0.03 0.77 0.80 (0.07) -- (0.07) 13.14 6.45 38,687 2.18 09/30/05 13.14 0.13 0.55 0.68 (0.15) -- (0.15) 13.67 5.16 30,002 2.27 09/30/06 13.67 0.13 0.58 0.71 (0.15) -- (0.15) 14.23 5.23 20,464 2.20(3)(4) 09/30/07 14.23 0.14 1.52 1.66 (0.12) -- (0.12) 15.77 11.70 14,714 2.28(3)(4) 03/31/08(6) 15.77 0.07 (1.55) (1.48) (0.08) -- (0.08) 14.21 (9.42)(7) 11,430 2.32(3)(4)(5) Class C+ - 09/30/03 $11.76 $0.03 $ 0.67 $ 0.70 $(0.04) $-- $(0.04) $12.42 5.97% $ 25,784 2.15% 09/30/04 12.42 0.03 0.78 0.81 (0.07) -- (0.07) 13.16 6.53 22,781 2.18 09/30/05 13.16 0.13 0.55 0.68 (0.15) -- (0.15) 13.69 5.15 19,298 2.26 09/30/06 13.69 0.13 0.58 0.71 (0.15) -- (0.15) 14.25 5.22 15,164 2.18(3)(4) 09/30/07 14.25 0.15 1.52 1.67 (0.12) -- (0.12) 15.80 11.75 13,891 2.26(3)(4) 03/31/08(6) 15.80 0.08 (1.56) (1.48) (0.08) -- (0.08) 14.24 (9.40)(7) 11,380 2.27(3)(4)(5) Class I - 09/30/03 $11.79 $0.12 $ 0.69 $ 0.81 $(0.14) $-- $(0.14) $12.46 6.89% $ 4,574 1.33%(3) 09/30/04 12.46 0.16 0.77 0.93 (0.18) -- (0.18) 13.21 7.44 679 1.29(3) 09/30/05 13.21 0.25 0.55 0.80 (0.28) -- (0.28) 13.73 6.10 746 1.32(3) 09/30/06 13.73 0.26 0.59 0.85 (0.29) -- (0.29) 14.29 6.24 754 1.28(3)(4) 09/30/07 14.29 0.29 1.53 1.82 (0.29) -- (0.29) 15.82 12.81 652 1.31(3)(4) 03/31/08(6) 15.82 0.15 (1.56) (1.41) (0.15) -- (0.15) 14.26 (8.97)(7) 597 1.31(3)(4)(5)
Ratio of net investment income (loss) to average Portfolio net assets Turnover ------------- --------- 0.86% 409% 0.89 181 1.56 160 1.59(3)(4) 154 1.66(3)(4) 123 1.68(3)(4)(5) 63 0.22% 409% 0.20 181 0.91 160 0.91(3)(4) 154 0.93(3)(4) 123 0.95(3)(4)(5) 63 0.22% 409% 0.21 181 0.92 160 0.93(3)(4) 154 0.95(3)(4) 123 1.00(3)(4)(5) 63 1.02%(3) 409% 1.10(3) 181 1.84(3) 160 1.84(3)(4) 154 1.90(3)(4) 123 1.96(3)(4)(5) 63
-------- (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/fee waivers (based on average net assets):
09/30/03 09/30/04 09/30/05 09/30/06 09/30/07 03/31/08(5)(6) -------- -------- -------- -------- -------- -------------- Balanced Assets Class A................. -- % -- % -- % 0.05% 0.02% 0.02% Balanced Assets Class B................. -- -- -- 0.05 0.02 0.02 Balanced Assets Class C+................ -- -- -- 0.05 0.02 0.02 Balanced Assets Class I................. 0.19 0.24 1.47 1.38 1.71 1.65
(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 03/31/08(5)(6) -------- -------- -------------- Balanced Assets Class A................. 0.00% 0.01% 0.02% Balanced Assets Class B................. 0.00 0.01 0.02 Balanced Assets Class C+................ 0.00 0.01 0.02 Balanced Assets Class I................. 0.00 0.01 0.02
(5)Annualized (6)Unaudited (7)The Fund's performance was increased by less than 0.01% from gains on the disposal of investments in violation of investment restrictions. (See Note 4) + Effective February 23, 2004, Class II shares were redesignated to Class C shares. See Notes to Financial Statements 22 SunAmerica Equity Funds FINANCIAL HIGHLIGHTS -- (continued)
INTERNATIONAL EQUITY FUND ------------------------- Net gain (loss) on Net investments Distri- Net Net Asset Net (both Dividends butions Asset Assets 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 - 09/30/03 $ 7.00 $ 0.03 $ 1.70 $ 1.73 $ -- $ -- $ -- $ 8.73 24.71% $28,720 1.90% 09/30/04 8.73 0.01 1.46 1.47 0.00 -- 0.00 10.20 16.88 32,221 1.90 09/30/05 10.20 0.02 2.82 2.84 -- -- -- 13.04 27.84 43,527 1.90 09/30/06 13.04 (0.01) 2.81 2.80 -- -- -- 15.84 21.47 62,190 1.90 09/30/07 15.84 0.02 3.94 3.96 -- -- -- 19.80 25.00 75,408 1.90 03/31/08(6) 19.80 0.00 (1.87) (1.87) -- (1.68) (1.68) 16.25 (10.31) 64,360 1.85(4)(5) Class B - 09/30/03 $ 6.73 $(0.03) $ 1.64 $ 1.61 $ -- $ -- $ -- $ 8.34 23.92% $24,799 2.55% 09/30/04 8.34 (0.06) 1.41 1.35 -- -- -- 9.69 16.19 20,673 2.55 09/30/05 9.69 (0.06) 2.68 2.62 -- -- -- 12.31 27.04 19,546 2.55 09/30/06 12.31 (0.11) 2.65 2.54 -- -- -- 14.85 20.63 21,240 2.55 09/30/07 14.85 (0.10) 3.69 3.59 -- -- -- 18.44 24.18 20,509 2.55 03/31/08(6) 18.44 (0.06) (1.73) (1.79) -- (1.68) (1.68) 14.97 (10.66) 15,899 2.55(4)(5) Class C+ - 09/30/03 $ 6.72 $(0.03) $ 1.64 $ 1.61 $ -- $ -- $ -- $ 8.33 23.96% $14,787 2.55% 09/30/04 8.33 (0.06) 1.41 1.35 -- -- -- 9.68 16.21 15,798 2.55 09/30/05 9.68 (0.06) 2.67 2.61 -- -- -- 12.29 26.96 16,892 2.55 09/30/06 12.29 (0.11) 2.66 2.55 -- -- -- 14.84 20.75 21,646 2.55 09/30/07 14.84 (0.09) 3.67 3.58 -- -- -- 18.42 24.12 26,683 2.55 03/31/08(6) 18.42 (0.06) (1.72) (1.78) -- (1.68) (1.68) 14.96 (10.61) 21,989 2.55(4)(5) Class I - 09/30/03 $ 7.02 $ 0.03 $ 1.72 $ 1.75 $ -- $ -- $ -- $ 8.77 24.93% $20,499 1.80% 09/30/04 8.77 (0.04) 1.53 1.49 (0.01) -- (0.01) 10.25 16.96 4,233 1.80 09/30/05 10.25 0.05 2.82 2.87 -- -- -- 13.12 28.00 7,065 1.80 09/30/06 13.12 0.00 2.84 2.84 -- -- -- 15.96 21.65 9,482 1.80 09/30/07 15.96 0.04 3.96 4.00 -- -- -- 19.96 25.06 7,997 1.80 03/31/08(6) 19.96 0.01 (1.91) (1.90) -- (1.68) (1.68) 16.38 (10.39) 6,148 1.80(4)(5)
Ratio of net investment income (loss) to average Portfolio net assets(3) Turnover ------------- --------- 0.35% 209% 0.06 202 0.17 126 (0.09) 152 0.13 132 0.03(4)(5) 102 (0.41)% 209% (0.62) 202 (0.51) 126 (0.80) 152 (0.59) 132 (0.75)(4)(5) 102 (0.38)% 209% (0.60) 202 (0.49) 126 (0.76) 152 (0.52) 132 (0.71)(4)(5) 102 0.43% 209% (0.34) 202 0.43 126 (0.01) 152 0.24 132 0.09(4)(5) 102
-------- (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):
09/30/03 09/30/04 09/30/05 09/30/06 09/30/07 03/31/08(4)(6) -------- -------- -------- -------- -------- -------------- International Equity Class A............ 0.18% 0.10% 0.09% (0.04)% (0.05)% -- % International Equity Class B............ 0.13 0.11 0.17 0.02 0.04 0.01 International Equity Class C+........... 0.28 0.06 0.14 (0.01) (0.00) (0.04) International Equity Class I............ 0.16 0.12 0.14 0.00 0.04 0.03
(4)Annualized (5)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:
03/31/08(4)(6) -------------- International Equity Class A 0.00% International Equity Class B 0.00 International Equity Class C 0.00 International Equity Class I 0.00
(6)Unaudited + Effective February 23, 2004, Class II shares were redesignated to Class C shares. See Notes to Financial Statements 23 SunAmerica Equity Funds FINANCIAL HIGHLIGHTS -- (continued)
VALUE FUND ---------- Net gain (loss) on Net investments Distri- Net Net Asset Net (both Dividends butions Asset Assets Value investment realized Total from from net from Total Value end of beginning income and investment investment capital distri- end of Total period Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's) -------------------- --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- -------- Class A - 10/31/02 $15.10 $0.18 $ 0.07 $ 0.25 $(0.09) $(0.63) $(0.72) $14.63 1.44% $ 50,975 10/31/03 14.63 0.29 2.05 2.34 (0.18) (0.46) (0.64) 16.33 16.59 60,701 11/1/03-09/30/04(7) 16.33 0.32 1.86 2.18 (0.37) (0.45) (0.82) 17.69 13.79 91,769 09/30/05 17.69 0.17 2.22 2.39 (0.29) (1.78) (2.07) 18.01 14.06 130,754 09/30/06 18.01 0.15 1.89 2.04 (0.13) (1.17) (1.30) 18.75 12.02 121,729 09/30/07 18.75 0.18 2.59 2.77 (0.16) (2.04) (2.20) 19.32 15.80 126,788 03/31/08(8) 19.32 0.10 (2.44) (2.34) (0.21) (2.70) (2.91) 14.07 (13.53) 95,948 Class B - 10/31/02 $14.56 $0.07 $ 0.07 $ 0.14 $(0.01) $(0.63) $(0.64) $14.06 0.74% $ 78,584 10/31/03 14.06 0.19 1.98 2.17 (0.08) (0.46) (0.54) 15.69 15.94 83,935 11/1/03-09/30/04(7) 15.69 0.24 1.75 1.99 (0.27) (0.45) (0.72) 16.96 13.09 68,492 09/30/05 16.96 0.07 2.11 2.18 (0.18) (1.78) (1.96) 17.18 13.34 57,704 09/30/06 17.18 0.04 1.80 1.84 (0.03) (1.17) (1.20) 17.82 11.29 47,100 09/30/07 17.82 0.05 2.46 2.51 (0.05) (2.04) (2.09) 18.24 15.07 39,355 03/31/08(8) 18.24 0.04 (2.29) (2.25) (0.10) (2.70) (2.80) 13.19 (13.79) 27,592 Class C+ - 10/31/02 $14.56 $0.07 $ 0.07 $ 0.14 $(0.01) $(0.63) $(0.64) $14.06 0.74% $ 18,504 10/31/03 14.06 0.18 1.99 2.17 (0.08) (0.46) (0.54) 15.69 15.94 23,208 11/1/03-09/30/04(7) 15.69 0.22 1.77 1.99 (0.27) (0.45) (0.72) 16.96 13.09 30,985 09/30/05 16.96 0.06 2.12 2.18 (0.18) (1.78) (1.96) 17.18 13.34 41,095 09/30/06 17.18 0.04 1.80 1.84 (0.03) (1.17) (1.20) 17.82 11.30 33,849 09/30/07 17.82 0.06 2.45 2.51 (0.05) (2.04) (2.09) 18.24 15.07 26,071 03/31/08(8) 18.24 0.04 (2.29) (2.25) (0.10) (2.70) (2.80) 13.19 (13.79) 17,851 Class I - 11/16/01-10/31/02(5) $15.93 $0.19 $(0.77) $(0.58) $(0.09) $(0.63) $(0.72) $14.63 (3.83)% $ 4,726 10/31/03 14.63 0.30 2.05 2.35 (0.19) (0.46) (0.65) 16.33 16.72 6,629 11/1/03-09/30/04(7) 16.33 0.37 1.83 2.20 (0.40) (0.45) (0.85) 17.68 13.91 4,746 09/30/05 17.68 0.20 2.20 2.40 (0.30) (1.78) (2.08) 18.00 14.12 3,106 09/30/06 18.00 0.16 1.91 2.07 (0.15) (1.17) (1.32) 18.75 12.20 174 09/30/07 18.75 0.21 2.57 2.78 (0.18) (2.04) (2.22) 19.31 15.89 34 03/31/08(8) 19.31 0.11 (2.44) (2.33) (0.23) (2.70) (2.93) 14.05 (13.50) 29 Class Z - 10/31/02 $15.43 $0.27 $ 0.06 $ 0.33 $(0.16) $(0.63) $(0.79) $14.97 1.98% $ 360 10/31/03 14.97 0.36 2.13 2.49 (0.25) (0.46) (0.71) 16.75 17.36 4,532 11/1/03-09/30/04(7) 16.75 0.41 1.92 2.33 (0.45) (0.45) (0.90) 18.18 14.37 7,370 09/30/05 18.18 0.27 2.30 2.57 (0.39) (1.78) (2.17) 18.58 14.77 17,307 09/30/06 18.58 0.26 1.95 2.21 (0.19) (1.17) (1.36) 19.43 12.64 22,853 09/30/07 19.43 0.29 2.70 2.99 (0.22) (2.04) (2.26) 20.16 16.48 34,644 03/31/08(8) 20.16 0.15 (2.55) (2.40) (0.28) (2.70) (2.98) 14.78 (13.30) 29,223
Ratio of net Ratio of investment expenses income (loss) to average to average Portfolio net assets(4) net assets(4) Turnover ------------- ------------- --------- 1.78% 1.15% 188% 1.78(6) 1.94(6) 138 1.73(3) 2.12(3) 204 1.63 1.00 82 1.63(6) 0.88(6) 140 1.63(6) 0.97(6) 143 1.63(3)(6) 1.26(3)(6) 111 2.43% 0.49% 188% 2.41(6) 1.32(6) 138 2.40(3) 1.58(3) 204 2.28 0.38 82 2.28(6) 0.23(6) 140 2.28(6) 0.31(6) 143 2.28(3)(6) 0.62(3)(6) 111 2.43% 0.49% 188% 2.43(6) 1.28(6) 138 2.41(3) 1.48(3) 204 2.28 0.36 82 2.28(6) 0.23(6) 140 2.28(6) 0.32(6) 143 2.28(3)(6) 0.62(3)(6) 111 1.68%(3) 1.26%(3) 188% 1.68(6) 2.02(6) 138 1.67(3) 2.31(3) 204 1.53 1.11 82 1.53(6) 0.90(6) 140 1.53(6) 1.05(6) 143 1.53(3)(6) 1.37(3)(6) 111 1.21% 1.69% 188% 1.21(6) 2.33(6) 138 1.19(3) 2.58(3) 204 1.06 1.54 82 1.06(6) 1.45(6) 140 1.06(6) 1.54(6) 143 1.06(3)(6) 1.83(3)(6) 111
-------- (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load. Total return does include expense reimbursements and expense reductions. (3)Annualized (4)Net of the following expense reimbursements (recoupments) (based on average net assets):
10/31/02 10/31/03 09/30/04(3) 09/30/05 09/30/06 09/30/07 03/31/08(3)(8) -------- -------- ----------- -------- -------- -------- -------------- Value Class A........................... 0.01% (0.01)% 0.04% 0.08% 0.08% 0.07% 0.10% Value Class B........................... (0.02) (0.01) 0.02 0.14 0.10 0.11 0.14 Value Class C+.......................... 0.03 0.02 0.06 0.08 0.08 0.09 0.14 Value Class I........................... 0.19(3) -- 0.10 0.25 0.30 21.30 26.13 Value Class Z........................... 5.52 1.00 0.16 0.10 0.07 0.07 0.07
(5)Commencement of sale of respective class of shares. (6)Includes expense reimbursements, but excludes expense reductions. If the expense reductions had been applied the ratio of expenses to average net assets would have been lower and the ratio of net investment income to average net assets would have been higher by:
10/31/03 09/30/06 09/30/07 03/31/08(3)(8) -------- -------- -------- -------------- Value Class A........................... 0.01% 0.01% 0.01% 0.04% Value Class B........................... 0.01 0.01 0.01 0.04 Value Class C+.......................... 0.01 0.01 0.01 0.04 Value Class I........................... 0.01 0.01 0.01 0.04 Value Class Z........................... 0.00 0.01 0.01 0.03
(7)The Fund changed its fiscal year end from October 31 to September 30. (8)Unaudited + Effective February 23, 2004, Class II shares were redesignated to Class C shares. See Notes to Financial Statements 24 SunAmerica Equity Funds FINANCIAL HIGHLIGHTS -- (continued)
DISCIPLINED GROWTH FUND ----------------------- Net Gain (loss) on Net investments Distri- Net Net Asset Net (both Dividends butions Asset Assets Value investment realized Total from from net from Total Value end of beginning income and investment investment capital distri- end of Total period Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's) -------------------- --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- ------- Class A - 10/31/02 $11.04 $ 0.01 $(2.05) $(2.04) $ -- $-- $ -- $ 9.00 (18.48)% $16,587 10/31/03 9.00 0.03 1.46 1.49 -- -- -- 10.49 16.56 14,877 11/01/03-09/30/04(3) 10.49 0.03 0.75 0.78 -- -- -- 11.27 7.44 13,562 09/30/05 11.27 0.09 0.53 0.62 (0.06) -- (0.06) 11.83 5.51 11,251 09/30/06 11.83 (0.01) 1.34 1.33 (0.06) -- (0.06) 13.10 11.25 22,554 09/30/07 13.10 (0.04) 4.38 4.34 -- -- -- 17.44 33.13(7) 25,774 03/31/08(8) 17.44 (0.02) (2.89) (2.91) -- -- -- 14.53 (16.69) 28,817 Class B - 10/31/02 $10.85 $(0.06) $(2.00) $(2.06) $ -- $-- $ -- $ 8.79 (18.99)% $25,703 10/31/03 8.79 (0.03) 1.41 1.38 -- -- -- 10.17 15.70 22,694 11/01/03-09/30/04(3) 10.17 (0.04) 0.73 0.69 -- -- -- 10.86 6.78 19,669 09/30/05 10.86 0.01 0.52 0.53 -- -- -- 11.39 4.88 15,117 09/30/06 11.39 (0.10) 1.29 1.19 0.00 -- 0.00 12.58 10.46 9,299 09/30/07 12.58 (0.13) 4.20 4.07 -- -- -- 16.65 32.35(7) 5,676 03/31/08(8) 16.65 (0.07) (2.75) (2.82) -- -- -- 13.83 (16.94) 4,742 Class C+ - 10/31/02 $10.86 $(0.06) $(2.00) $(2.06) $ -- $-- $ -- $ 8.80 (18.97)% $26,430 10/31/03 8.80 (0.03) 1.42 1.39 -- -- -- 10.19 15.80 23,036 11/01/03-09/30/04(3) 10.19 (0.04) 0.73 0.69 -- -- -- 10.88 6.77 18,295 09/30/05 10.88 0.01 0.51 0.52 -- -- -- 11.40 4.78 13,983 09/30/06 11.40 (0.09) 1.29 1.20 0.00 -- 0.00 12.60 10.54 26,927 09/30/07 12.60 (0.13) 4.19 4.06 -- -- -- 16.66 32.22(7) 28,927 03/31/08(8) 16.66 (0.07) (2.75) (2.82) -- -- -- 13.84 (16.93) 28,230
Ratio of net Ratio of investment expenses income (loss) to average to average Portfolio net assets(5) net assets(5) Turnover ------------- ------------- --------- 1.45% 0.09% 16% 1.45 0.35 13 1.45(4) 0.25(4) 20 1.45 0.74 32 1.45(6) (0.02)(6) 999 1.45(6) (0.13)(6) 446 1.45(4)(6) (0.14)(4)(6) 202 2.10% (0.56)% 16% 2.10 (0.30) 13 2.10(4) (0.40)(4) 20 2.10 0.09 32 2.10(6) (0.77)(6) 999 2.10(6) (0.75)(6) 446 2.10(4)(6) (0.81)(4)(6) 202 2.10% (0.56)% 16% 2.10 (0.30) 13 2.10(4) (0.40)(4) 20 2.10 0.09 32 2.10(6) (0.68)(6) 999 2.10(6) (0.78)(6) 446 2.10(4)(6) (0.80)(4)(6) 202
-------- (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load. Total return does include expense reimbursements and expense reductions. (3)The Fund changed its fiscal year end from October 31 to September 30. (4)Annualized (5)Net of the following expense reimbursements (based on average net assets):
10/31/02 10/31/03 09/30/04(4) 09/30/05 09/30/06 09/30/07 03/31/08(4)(8) -------- -------- ----------- -------- -------- -------- -------------- Disciplined Growth Class A.............. 0.00% 0.26% 0.24% 0.38% 0.31% 0.34% 0.23% Disciplined Growth Class B.............. 0.20 0.23 0.25 0.35 0.37 0.45 0.41 Disciplined Growth Class C+............. 0.21 0.23 0.24 0.33 0.30 0.30 0.22
(6)Includes expense reimbursements, but excludes expense reductions. If the expense reductions had been applied the ratio of expenses to average net assets would have been lower and the ratio of net investment income to average net assets would have been higher by:
09/30/06 09/30/07 03/31/08(4)(8) -------- -------- -------------- Disciplined Growth Class A.............. 0.04% 0.11% 0.06% Disciplined Growth Class B.............. 0.02 0.14 0.06 Disciplined Growth Class C.............. 0.03 0.12 0.06
(7)Total Return for each class was increased by 0.38%, 0.40% and 0.40% for Class A, Class B and Class C, respectively, from a reimbursement by an affiliate. (8)Unaudited + Effective February 23, 2004, Class II shares were redesignated to Class C shares. See Notes to Financial Statements 25 SunAmerica Equity Funds FINANCIAL HIGHLIGHTS -- (continued)
INTERNATIONAL SMALL-CAP FUND ---------------------------- Net gain (loss) on Net investments Distri- Net Net Asset Net (both Dividends butions Asset Assets Value investment realized Total from from net from Total Value end of beginning income and investment investment capital distri- end of Total period Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's) -------------------- --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- ------- Class A 05/02/06-09/30/06(3) $12.50 $ 0.00 $(1.45) $(1.45) $-- $ -- $ -- $11.05 (11.60)% $21,557 09/30/07 11.05 (0.04) 2.99 2.95 -- -- -- 14.00 26.70 30,845 03/31/08(6) 14.00 (0.04) (2.04) (2.08) -- (0.14) (0.14) 11.78 (14.95) 25,184 Class B 05/02/06-09/30/06(3) $12.50 $(0.04) $(1.44) $(1.48) $-- $ -- $ -- $11.02 (11.84)% $ 583 09/30/07 11.02 (0.11) 2.97 2.86 -- -- -- 13.88 25.95 1,181 03/31/08(6) 13.88 (0.08) (2.02) (2.10) -- (0.14) (0.14) 11.64 (15.22) 1,088 Class C 05/02/06-09/30/06(3) $12.50 $(0.04) $(1.44) $(1.48) $-- $ -- $ -- $11.02 (11.84)% $ 3,363 09/30/07 11.02 (0.12) 2.98 2.86 -- -- -- 13.88 25.95 5,357 03/31/08(6) 13.88 (0.09) (2.01) (2.10) -- (0.14) (0.14) 11.64 (15.22) 3,791
Ratio of net Ratio of investment expenses income (loss) to average to average Portfolio net assets(5) net assets(5) Turnover ------------- ------------- --------- 1.90%(4) 0.08%(4) 55% 1.90 (0.30) 70 1.90(4) (0.71)(4) 48 2.55%(4) (0.93)%(4) 55% 2.55 (0.89) 70 2.55(4) (1.34)(4) 48 2.55%(4) (1.07)%(4) 55% 2.55 (0.94) 70 2.55(4) (1.41)(4) 48
-------- (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load. Total return does include expense reimbursements and expense reductions. (3)Commencement of operations. (4)Annualized (5)Net of the following expense reimbursements (based on average net assets):
09/30/06(4) 09/30/07 03/31/08(4)(6) ----------- -------- -------------- International Small-Cap Class A......... 1.27% 0.45% 0.45% International Small-Cap Class B......... 12.63 2.10 1.46 International Small-Cap Class C......... 2.88 0.77 0.67
(6)Unaudited See Notes to Financial Statements 26 SunAmerica Blue Chip Growth Fund PORTFOLIO PROFILE -- March 31, 2008 -- (unaudited) Industry Allocation* Computers............................. 6.2% Diversified Manufacturing Operations.. 5.4 Oil-Field Services.................... 4.3 Repurchase Agreement.................. 4.0 Medical Products...................... 3.6 Beverages-Non-alcoholic............... 3.6 Medical-Biomedical/Gene............... 3.4 Electronic Components-Semiconductors.. 3.4 Applications Software................. 3.4 Aerospace/Defense..................... 3.1 Cosmetics & Toiletries................ 3.0 Retail-Drug Store..................... 2.8 Electric Products-Misc................ 2.8 Web Portals/ISP....................... 2.8 Networking Products................... 2.5 Oil Companies-Integrated.............. 2.3 Commercial Services-Finance........... 2.2 Therapeutics.......................... 2.2 Agricultural Chemicals................ 2.1 Retail-Discount....................... 2.0 Wireless Equipment.................... 2.0 Instruments-Scientific................ 2.0 Enterprise Software/Service........... 1.7 Medical Instruments................... 1.4 Telecom Equipment-Fiber Optics........ 1.4 Banks-Fiduciary....................... 1.4 Commercial Services................... 1.3 Data Processing/Management............ 1.3 Oil Companies-Exploration & Production 1.3 Medical-HMO........................... 1.2 Diversified Minerals.................. 1.1 Medical-Drugs......................... 1.1 Electronics-Military.................. 1.1 Aerospace/Defense-Equipment........... 1.1 Insurance-Multi-line.................. 1.1 Multimedia............................ 1.0 Electronic Forms...................... 1.0 Electronic Measurement Instruments.... 1.0 Finance-Investment Banker/Broker...... 0.9 Cellular Telecom...................... 0.9 X-Ray Equipment....................... 0.9 Retail-Office Supplies................ 0.9 Entertainment Software................ 0.7 Retail-Regional Department Stores..... 0.7 Medical-Generic Drugs................. 0.7 Coal.................................. 0.7 E-Commerce/Services................... 0.7 Internet Infrastructure Software...... 0.6 Retail-Apparel/Shoe................... 0.6 Investment Management/Advisor Services 0.5 Medical-Wholesale Drug Distribution... 0.5 Retail-Consumer Electronics........... 0.5 Computer Aided Design................. 0.4 Diagnostic Kits....................... 0.4 Casino Hotel.......................... 0.3 Metal-Diversified..................... 0.3 ---- 99.8% ====
-------- * Calculated as a percentage of net assets 27 SunAmerica Blue Chip Growth Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited)
Market Value Security Description Shares (Note 3) ------------------------------------
-------------------------------------------------------------------------------- COMMON STOCK -- 95.8% Aerospace/Defense -- 3.1% Boeing Co................................... 7,100 $ 528,027 Lockheed Martin Corp........................ 4,250 422,025 Raytheon Co................................. 10,300 665,483 Spirit Aerosystems Holdings, Inc., Class A+. 11,900 263,942 ---------- 1,879,477 ---------- Aerospace/Defense-Equipment -- 1.1% United Technologies Corp.................... 9,600 660,672 ---------- Agricultural Chemicals -- 2.1% Monsanto Co................................. 11,400 1,271,100 ---------- Applications Software -- 3.4% Microsoft Corp.............................. 70,700 2,006,466 ---------- Banks-Fiduciary -- 1.4% The Bank of New York Mellon Corp............ 19,749 824,126 ---------- Beverages-Non-alcoholic -- 3.6% PepsiCo, Inc................................ 29,400 2,122,680 ---------- Casino Hotel -- 0.3% MGM Mirage, Inc.+........................... 3,352 196,997 ---------- Cellular Telecom -- 0.9% NII Holdings, Inc.+......................... 17,600 559,328 ---------- Coal -- 0.7% Peabody Energy Corp......................... 8,200 418,200 ---------- Commercial Services -- 1.3% AerCap Holdings NV+......................... 17,400 305,892 Alliance Data Systems Corp.+................ 9,500 451,345 ---------- 757,237 ---------- Commercial Services-Finance -- 2.2% Global Payments, Inc........................ 17,500 723,800 Visa, Inc., Class A+........................ 9,550 595,538 ---------- 1,319,338 ---------- Computer Aided Design -- 0.4% Autodesk, Inc.+............................. 8,128 255,869 ---------- Computers -- 6.2% Apple, Inc.+................................ 9,100 1,305,850 Hewlett-Packard Co.......................... 23,700 1,082,142 International Business Machines Corp........ 6,500 748,410 Research In Motion Ltd.+.................... 5,350 600,431 ---------- 3,736,833 ---------- Cosmetics & Toiletries -- 3.0% Procter & Gamble Co......................... 25,600 1,793,792 ---------- Data Processing/Management -- 1.3% Fiserv, Inc.+............................... 15,600 750,204 ---------- Diagnostic Kits -- 0.4% Inverness Medical Innovations, Inc.+........ 7,800 234,780 ---------- Diversified Manufacturing Operations -- 5.4% Danaher Corp................................ 13,700 1,041,611 Dover Corp.................................. 15,700 655,946 General Electric Co......................... 40,900 1,513,709 ---------- 3,211,266 ----------
Market Value Security Description Shares (Note 3) ---------------------------------------------------------------- Diversified Minerals -- 1.1% Cia Vale do Rio Doce ADR.................... 19,500 $ 675,480 ---------- E-Commerce/Services -- 0.7% eBay, Inc.+................................. 13,700 408,808 ---------- Electric Products-Misc. -- 2.8% AMETEK, Inc................................. 16,304 715,909 Emerson Electric Co......................... 18,800 967,448 ---------- 1,683,357 ---------- Electronic Components-Semiconductors -- 3.4% Broadcom Corp., Class A+.................... 16,200 312,174 Intel Corp.................................. 53,604 1,135,333 Texas Instruments, Inc...................... 20,100 568,227 ---------- 2,015,734 ---------- Electronic Forms -- 1.0% Adobe Systems, Inc.+........................ 16,500 587,235 ---------- Electronic Measurement Instruments -- 1.0% Agilent Technologies, Inc.+................. 19,000 566,770 ---------- Electronics-Military -- 1.1% L-3 Communications Holdings, Inc............ 6,100 666,974 ---------- Enterprise Software/Service -- 1.7% Oracle Corp.+............................... 50,700 991,692 ---------- Entertainment Software -- 0.7% Electronic Arts, Inc.+...................... 8,900 444,288 ---------- Finance-Investment Banker/Broker -- 0.9% The Goldman Sachs Group, Inc................ 3,400 562,326 ---------- Instruments-Scientific -- 2.0% Thermo Fisher Scientific, Inc.+............. 21,000 1,193,640 ---------- Insurance-Multi-line -- 1.1% Assurant, Inc............................... 10,700 651,202 ---------- Internet Infrastructure Software -- 0.6% Akamai Technologies, Inc.+.................. 13,600 382,976 ---------- Investment Management/Advisor Services -- 0.5% Invesco, Ltd................................ 13,200 321,552 ---------- Medical Instruments -- 1.4% Medtronic, Inc.............................. 17,500 846,475 ---------- Medical Products -- 3.6% Johnson & Johnson........................... 23,500 1,524,445 Zimmer Holdings, Inc.+...................... 7,800 607,308 ---------- 2,131,753 ---------- Medical-Biomedical/Gene -- 3.4% Celgene Corp.+.............................. 9,500 582,255 Genentech, Inc.+............................ 8,900 722,502 Genzyme Corp.+.............................. 10,000 745,400 ---------- 2,050,157 ---------- Medical-Drugs -- 1.1% Abbott Laboratories......................... 9,400 518,410 Schering-Plough Corp........................ 10,367 149,388 ---------- 667,798 ----------
28 SunAmerica Blue Chip Growth Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market Value Security Description Shares (Note 3) ------------------------------------------------------------- COMMON STOCK (continued) Medical-Generic Drugs -- 0.7% Mylan, Inc............................... 37,100 $ 430,360 ---------- Medical-HMO -- 1.2% UnitedHealth Group Inc................... 20,200 694,072 ---------- Medical-Wholesale Drug Distribution -- 0.5% Cardinal Health, Inc..................... 5,800 304,558 ---------- Metal-Diversified -- 0.3% Freeport-McMoRan Copper & Gold, Inc...... 1,600 153,952 ---------- Multimedia -- 1.0% News Corp., Class A...................... 32,179 603,356 ---------- Networking Products -- 2.5% Cisco Systems, Inc.+..................... 62,700 1,510,443 ---------- Oil Companies-Exploration & Production -- 1.3% XTO Energy, Inc.......................... 12,100 748,506 ---------- Oil Companies-Integrated -- 2.3% Exxon Mobil Corp......................... 16,400 1,387,112 ---------- Oil-Field Services -- 4.3% Halliburton Co........................... 19,500 766,935 Schlumberger, Ltd........................ 12,050 1,048,350 Transocean, Inc.+........................ 5,692 769,558 ---------- 2,584,843 ---------- Retail-Apparel/Shoe -- 0.6% American Eagle Outfitters, Inc........... 18,700 327,437 ---------- Retail-Consumer Electronics -- 0.5% Best Buy Co., Inc........................ 7,300 302,658 ---------- Retail-Discount -- 2.0% Target Corp.............................. 8,600 435,848 Wal-Mart Stores, Inc..................... 14,800 779,664 ---------- 1,215,512 ---------- Retail-Drug Store -- 2.8% CVS Caremark Corp........................ 41,902 1,697,450 ---------- Retail-Office Supplies -- 0.9% Staples, Inc............................. 24,000 530,640 ---------- Retail-Regional Department Stores -- 0.7% Kohl's Corp.+............................ 10,300 441,767 ---------- Telecom Equipment-Fiber Optics -- 1.4% Corning, Inc............................. 34,600 831,784 ---------- Therapeutics -- 2.2% Gilead Sciences, Inc.+................... 25,100 1,293,403 ---------- Web Portals/ISP -- 2.8% Google, Inc., Class A+................... 3,200 1,409,504 Yahoo!, Inc.+............................ 8,400 243,012 ---------- 1,652,516 ---------- Wireless Equipment -- 2.0% QUALCOMM, Inc............................ 29,150 1,195,150 ---------- X-Ray Equipment -- 0.9% Hologic, Inc.+........................... 10,000 556,000 ----------
Market Principal Value Security Description Amount (Note 3) -------------------------------------------------------------- Total Long-Term Investment Securities (cost $54,109,480)................. $57,308,101 ----------- REPURCHASE AGREEMENT -- 4.0% State Street Bank & Trust Co. Joint Repurchase Agreement(1)............ (cost $2,392,000).................. $ 2,392,000 2,392,000 ----------- TOTAL INVESTMENTS (cost $56,501,480)(2).............. 99.8% 59,700,101 Other assets less liabilities......... 0.2 141,082 ----------- ----------- NET ASSETS 100.0% $59,841,183 =========== ===========
-------- + Non-income producing security (1) See Note 3 for details of Joint Repurchase Agreement. (2) See Note 7 for cost of investments on a tax basis. ADR -- AmericanDepository Receipt See Notes to Financial Statements 29 SunAmerica Growth Opportunities Fund PORTFOLIO PROFILE -- March 31, 2008 -- (unaudited) Industry Allocation* Repurchase Agreement........................ 12.4% Commercial Services......................... 9.2 Commercial Services-Finance................. 7.3 Oil-Field Services.......................... 5.8 Physical Therapy/Rehabilitation Centers..... 4.8 Medical-Hospitals........................... 4.6 Oil Companies-Exploration & Production...... 3.6 Racetracks.................................. 3.5 Gas-Distribution............................ 2.6 Power Converter/Supply Equipment............ 2.5 Water....................................... 2.5 Human Resources............................. 2.1 Casino Services............................. 2.1 Electronic Components-Misc.................. 2.0 Dental Supplies & Equipment................. 1.9 Computer Aided Design....................... 1.9 Private Corrections......................... 1.9 Food-Wholesale/Distribution................. 1.8 Distribution/Wholesale...................... 1.7 Water Treatment Systems..................... 1.6 Enterprise Software/Service................. 1.5 Veterinary Diagnostics...................... 1.4 Retail-Petroleum Products................... 1.4 Medical-HMO................................. 1.2 Theater..................................... 1.1 Electronic Components-Semiconductors........ 1.1 Computers-Integrated Systems................ 1.1 Aerospace/Defense........................... 1.0 Insurance-Multi-line........................ 1.0 Retail-Apparel/Shoe......................... 1.0 Dialysis Centers............................ 0.8 Insurance-Life/Health....................... 0.8 Motion Pictures & Services.................. 0.7 Computer Services........................... 0.7 Internet Connectivity Services.............. 0.6 Semiconductor Components-Integrated Circuits 0.5 Networking Products......................... 0.5 Semiconductor Equipment..................... 0.4 Electronic Measurement Instruments.......... 0.4 ---- 93.0% ====
-------- * Calculated as a percentage of net assets 30 SunAmerica Growth Opportunities Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited)
Market Value Security Description Shares (Note 3) --------------------------------------------------------------- COMMON STOCK -- 80.6% Aerospace/Defense -- 1.0% Spirit Aerosystems Holdings, Inc., Class A+. 18,700 $ 414,766 ---------- Casino Services -- 2.1% Scientific Games Corp., Class A+............ 41,600 878,176 ---------- Commercial Services -- 9.2% Alliance Data Systems Corp.+................ 32,000 1,520,320 Iron Mountain, Inc.+........................ 57,300 1,515,012 The Providence Service Corp.+............... 26,600 798,000 ---------- 3,833,332 ---------- Commercial Services-Finance -- 7.3% Cardtronics, Inc.+.......................... 81,018 564,695 Equifax, Inc................................ 30,800 1,061,984 Global Payments, Inc........................ 35,000 1,447,600 ---------- 3,074,279 ---------- Computer Aided Design -- 1.9% Aspen Technology, Inc.+..................... 62,100 791,775 ---------- Computer Services -- 0.7% DST Systems, Inc.+.......................... 4,600 302,404 ---------- Computers-Integrated Systems -- 1.1% Brocade Communications Systems, Inc.+....... 61,700 450,410 ---------- Dental Supplies & Equipment -- 1.9% Sirona Dental Systems, Inc.+................ 29,600 798,312 ---------- Dialysis Centers -- 0.8% DaVita, Inc.+............................... 6,800 324,768 ---------- Distribution/Wholesale -- 1.7% MWI Veterinary Supply, Inc.+................ 19,700 694,622 ---------- Electronic Components-Misc. -- 2.0% Daktronics, Inc............................. 46,100 825,651 ---------- Electronic Components-Semiconductors -- 1.1% Microsemi Corp.+............................ 12,900 294,120 ON Semiconductor Corp.+..................... 29,400 166,992 ---------- 461,112 ---------- Electronic Measurement Instruments -- 0.4% Measurement Specialties, Inc.+.............. 9,600 167,712 ---------- Enterprise Software/Service -- 1.5% Epicor Software Corp.+...................... 55,300 619,360 ---------- Food-Wholesale/Distribution -- 1.8% Spartan Stores, Inc......................... 37,100 773,535 ---------- Gas-Distribution -- 2.6% AGL Resources, Inc.......................... 31,800 1,091,376 ---------- Human Resources -- 2.1% Emergency Medical Services Corp., Class A+.. 36,100 891,309 ---------- Insurance-Life/Health -- 0.8% Reinsurance Group of America, Inc........... 5,800 315,752 ---------- Insurance-Multi-line -- 1.0% HCC Insurance Holdings, Inc................. 18,200 412,958 ---------- Internet Connectivity Services -- 0.6% NDS Group PLC+.............................. 4,770 233,110 ----------
Market Value Security Description Shares (Note 3) ------------------------------------------------------------------ Medical-HMO -- 1.2% Coventry Health Care, Inc.+.................. 12,400 $ 500,340 ----------- Medical-Hospitals -- 4.6% LifePoint Hospitals, Inc.+................... 37,600 1,032,872 Universal Health Services, Inc., Class B..... 16,700 896,623 ----------- 1,929,495 ----------- Motion Pictures & Services -- 0.7% Macrovision Corp.+........................... 22,900 309,150 ----------- Networking Products -- 0.5% Foundry Networks, Inc.+...................... 17,400 201,492 ----------- Oil Companies-Exploration & Production -- 3.6% ATP Oil & Gas Corp.+......................... 34,600 1,132,112 Warren Resources, Inc.+...................... 32,600 386,962 ----------- 1,519,074 ----------- Oil-Field Services -- 5.8% Exterran Holdings, Inc.+..................... 16,900 1,090,726 Helix Energy Solutions Group, Inc.+.......... 43,100 1,357,650 ----------- 2,448,376 ----------- Physical Therapy/Rehabilitation Centers -- 4.8% Psychiatric Solutions, Inc.+................. 59,000 2,001,280 ----------- Power Converter/Supply Equipment -- 2.5% PowerSecure International, Inc.+............. 89,800 1,056,946 ----------- Private Corrections -- 1.9% Corrections Corp. of America+................ 28,500 784,320 ----------- Racetracks -- 3.5% International Speedway Corp., Class A........ 22,000 906,400 Speedway Motorsports, Inc.................... 21,900 549,033 ----------- 1,455,433 ----------- Retail-Apparel/Shoe -- 1.0% American Eagle Outfitters, Inc............... 22,900 400,979 ----------- Retail-Petroleum Products -- 1.4% World Fuel Services Corp..................... 21,300 597,891 ----------- Semiconductor Components-Integrated Circuits -- 0.5% Maxim Integrated Products, Inc............... 10,000 203,900 ----------- Semiconductor Equipment -- 0.4% Brooks Automation, Inc.+..................... 18,900 183,708 ----------- Theater -- 1.1% National CineMedia, Inc...................... 21,400 481,072 ----------- Veterinary Diagnostics -- 1.4% Animal Health International, Inc.+........... 54,789 599,392 ----------- Water -- 2.5% Aqua America, Inc............................ 55,000 1,032,900 ----------- Water Treatment Systems -- 1.6% Nalco Holding Co............................. 32,100 678,915 ----------- Total Long-Term Investment Securities (cost $33,416,114).......................... 33,739,382 -----------
31 SunAmerica Growth Opportunities Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market Principal Value Security Description Amount (Note 3) -------------------------------------------------------------- REPURCHASE AGREEMENT -- 12.4% State Street Bank & Trust Co. Joint Repurchase Agreement(1) (cost $5,178,000).................. $ 5,178,000 $ 5,178,000 ----------- TOTAL INVESTMENTS (cost $38,594,114)(2).............. 93.0% 38,917,382 Other assets less liabilities......... 7.0 2,918,423 ----------- ----------- NET ASSETS 100.0% $41,835,805 =========== ===========
-------- + 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. See Notes to Financial Statements 32 SunAmerica New Century Fund PORTFOLIO PROFILE -- March 31, 2008 -- (unaudited) Industry Allocation* Data Processing/Management.................. 8.8% Commercial Services......................... 7.9 Repurchase Agreement........................ 7.4 Commercial Services-Finance................. 6.5 Oil-Field Services.......................... 6.0 Physical Therapy/Rehabilitation Centers..... 4.7 Medical-Hospitals........................... 4.5 Medical-Wholesale Drug Distribution......... 4.0 Oil Companies-Exploration & Production...... 2.7 Gas-Distribution............................ 2.6 Water....................................... 2.4 Racetracks.................................. 2.2 Casino Services............................. 2.1 Batteries/Battery Systems................... 1.9 Telecom Services............................ 1.9 Medical-Generic Drugs....................... 1.9 Computer Aided Design....................... 1.9 Private Corrections......................... 1.9 Medical Information Systems................. 1.8 Dental Supplies & Equipment................. 1.8 Semiconductor Components-Integrated Circuits 1.7 Water Treatment Systems..................... 1.6 Retail-Petroleum Products................... 1.5 Investment Management/Advisor Services...... 1.4 Electronic Forms............................ 1.3 Medical-HMO................................. 1.2 Computers-Integrated Systems................ 1.1 Insurance-Multi-line........................ 1.0 Insurance-Property/Casualty................. 1.0 Aerospace/Defense........................... 1.0 Retail-Apparel/Shoe......................... 0.9 Oil Field Machinery & Equipment............. 0.9 Dialysis Centers............................ 0.8 Computer Services........................... 0.7 Motion Pictures & Services.................. 0.7 Internet Connectivity Services.............. 0.6 Coal........................................ 0.5 Networking Products......................... 0.5 Electronic Components-Semiconductors........ 0.4 ---- 93.7% ====
-------- * Calculated as a percentage of net assets 33 SunAmerica New Century Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited)
Market Value Security Description Shares (Note 3) ----------------------------------------------------------------- COMMON STOCK -- 86.3% Aerospace/Defense -- 1.0% Spirit Aerosystems Holdings, Inc., Class A+.. 32,600 $ 723,068 ---------- Batteries/Battery Systems -- 1.9% Energizer Holdings, Inc.+.................... 15,800 1,429,584 ---------- Casino Services -- 2.1% Scientific Games Corp., Class A+............. 74,100 1,564,251 ---------- Coal -- 0.5% Peabody Energy Corp.......................... 7,300 372,300 ---------- Commercial Services -- 7.9% Alliance Data Systems Corp.+................. 56,200 2,670,062 Iron Mountain, Inc.+......................... 117,800 3,114,632 ---------- 5,784,694 ---------- Commercial Services-Finance -- 6.5% Equifax, Inc................................. 65,200 2,248,096 Global Payments, Inc......................... 60,300 2,494,008 ---------- 4,742,104 ---------- Computer Aided Design -- 1.9% Aspen Technology, Inc.+...................... 107,600 1,371,900 ---------- Computer Services -- 0.7% DST Systems, Inc.+........................... 8,300 545,642 ---------- Computers-Integrated Systems -- 1.1% Brocade Communications Systems, Inc.+........ 108,200 789,860 ---------- Data Processing/Management -- 8.8% Fidelity National Information Services, Inc.. 78,700 3,001,618 Fiserv, Inc.+................................ 71,800 3,452,862 ---------- 6,454,480 ---------- Dental Supplies & Equipment -- 1.8% Sirona Dental Systems, Inc.+................. 48,100 1,297,257 ---------- Dialysis Centers -- 0.8% DaVita, Inc.+................................ 11,900 568,344 ---------- Electronic Components-Semiconductors -- 0.4% ON Semiconductor Corp.+...................... 51,600 293,088 ---------- Electronic Forms -- 1.3% Adobe Systems, Inc.+......................... 26,400 939,576 ---------- Gas-Distribution -- 2.6% AGL Resources, Inc........................... 55,400 1,901,328 ---------- Insurance-Multi-line -- 1.0% HCC Insurance Holdings, Inc.................. 32,000 726,080 ---------- Insurance-Property/Casualty -- 1.0% W.R. Berkley Corp............................ 26,200 725,478 ---------- Internet Connectivity Services -- 0.6% NDS Group PLC ADR+........................... 8,422 411,583 ---------- Investment Management/Advisor Services -- 1.4% Invesco, Ltd................................. 41,900 1,020,684 ---------- Medical Information Systems -- 1.8% IMS Health, Inc.............................. 62,200 1,306,822 ---------- Medical-Generic Drugs -- 1.9% Barr Pharmaceuticals, Inc.+.................. 28,500 1,376,835 ----------
Market Value Security Description Shares (Note 3) ------------------------------------------------------------------- Medical-HMO -- 1.2% Coventry Health Care, Inc.+.................. 21,700 $ 875,595 ----------- Medical-Hospitals -- 4.5% LifePoint Hospitals, Inc.+................... 66,300 1,821,261 Universal Health Services, Inc., Class B..... 28,200 1,514,058 ----------- 3,335,319 ----------- Medical-Wholesale Drug Distribution --4.0% AmerisourceBergen Corp....................... 40,000 1,639,200 Cardinal Health, Inc......................... 24,100 1,265,491 ----------- 2,904,691 ----------- Motion Pictures & Services -- 0.7% Macrovision Corp.+........................... 39,900 538,650 ----------- Networking Products -- 0.5% Foundry Networks, Inc.+...................... 30,500 353,190 ----------- Oil Companies-Exploration & Production -- 2.7% ATP Oil & Gas Corp.+......................... 60,500 1,979,560 ----------- Oil Field Machinery & Equipment -- 0.9% Cameron International Corp.+................. 16,800 699,552 ----------- Oil-Field Services -- 6.0% Exterran Holdings, Inc.+..................... 31,900 2,058,826 Helix Energy Solutions Group, Inc.+.......... 75,200 2,368,800 ----------- 4,427,626 ----------- Physical Therapy/Rehabilitation Centers -- 4.7% Psychiatric Solutions, Inc.+................. 102,500 3,476,800 ----------- Private Corrections -- 1.9% Corrections Corp. of America+................ 49,700 1,367,744 ----------- Racetrack -- 2.2% International Speedway Corp., Class A........ 39,000 1,606,800 ----------- Retail-Apparel/Shoe -- 0.9% American Eagle Outfitters, Inc............... 40,000 700,400 ----------- Retail-Petroleum Products -- 1.5% World Fuel Services Corp..................... 38,400 1,077,888 ----------- Semiconductor Components-Integrated Circuits -- 1.7% Marvell Technology Group, Ltd.+.............. 51,800 563,584 Maxim Integrated Products, Inc............... 34,900 711,611 ----------- 1,275,195 ----------- Telecom Services -- 1.9% Amdocs, Ltd.+................................ 50,200 1,423,672 ----------- Water -- 2.4% Aqua America, Inc............................ 95,000 1,784,100 ----------- Water Treatment Systems -- 1.6% Nalco Holding Co............................. 55,200 1,167,480 ----------- Total Long-Term Investment Securities (cost $64,082,792).......................... 63,339,220 -----------
34 SunAmerica New Century Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market Principal Value Security Description Amount (Note 3) -------------------------------------------------------------- REPURCHASE AGREEMENT -- 7.4% State Street Bank & Trust Co. Joint Repurchase Agreement(1) (cost $5,409,000).................. $ 5,409,000 $ 5,409,000 ----------- TOTAL INVESTMENTS (cost $69,491,792)(2).............. 93.7% 68,748,220 Other assets less liabilities......... 6.3 4,632,455 ----------- ----------- NET ASSETS 100.0% $73,380,675 =========== ===========
-------- + Non-income producing security (1) See Note 3 for details of Joint Repurchase Agreement. (2) See Note 7 for cost of investments on a tax basis. ADR -- AmericanDepository Receipt See Notes to Financial Statements 35 SunAmerica Growth and Income Fund PORTFOLIO PROFILE -- March 31, 2008 -- (unaudited) Industry Allocation* Oil Companies-Integrated.............. 9.8% Aerospace/Defense..................... 6.5 Finance-Investment Banker/Broker...... 6.2 Telephone-Integrated.................. 4.7 Medical-Drugs......................... 4.2 Food-Misc............................. 4.2 Investment Management/Advisor Services 4.1 Diversified Manufacturing Operations.. 3.4 Repurchase Agreement.................. 2.9 Electric-Integrated................... 2.8 Electronic Components-Semiconductors.. 2.6 Computers............................. 2.6 Cosmetics & Toiletries................ 2.3 Oil-Field Services.................... 2.2 Tobacco............................... 2.2 Enterprise Software/Service........... 2.1 Brewery............................... 2.1 Insurance-Multi-line.................. 2.0 Multimedia............................ 2.0 Applications Software................. 1.9 Insurance-Property/Casualty........... 1.9 Banks-Super Regional.................. 1.9 Non-Hazardous Waste Disposal.......... 1.6 Transport-Services.................... 1.6 Networking Products................... 1.6 Medical Instruments................... 1.5 Telecommunication Equipment........... 1.5 Batteries/Battery Systems............. 1.5 Medical Products...................... 1.5 Banks-Fiduciary....................... 1.5 Retail-Apparel/Shoe................... 1.4 Chemicals-Diversified................. 1.4 Electronic Components-Misc............ 1.3 Metal-Aluminum........................ 1.3 Medical-Biomedical/Gene............... 1.1 Telecom Equipment-Fiber Optics........ 1.1 Wireless Equipment.................... 1.0 Metal-Diversified..................... 1.0 Web Portals/ISP....................... 0.9 ---- 97.4% ====
-------- * Calculated as a percentage of net assets 36 SunAmerica Growth and Income Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited)
Market Value Security Description Shares (Note 3) --------------------------------------------------------------- COMMON STOCK -- 94.5% Aerospace/Defense -- 6.5% Boeing Co................................... 23,400 $1,740,258 General Dynamics Corp....................... 17,100 1,425,627 Raytheon Co................................. 21,200 1,369,732 Spirit Aerosystems Holdings, Inc., Class A+. 55,600 1,233,208 ---------- 5,768,825 ---------- Applications Software -- 1.9% Microsoft Corp.............................. 60,300 1,711,314 ---------- Banks-Fiduciary -- 1.5% The Bank of New York Mellon Corp............ 30,900 1,289,457 ---------- Banks-Super Regional -- 1.9% Bank of America Corp........................ 43,600 1,652,876 ---------- Batteries/Battery Systems -- 1.5% Energizer Holdings, Inc.+................... 14,600 1,321,008 ---------- Brewery -- 2.1% Anheuser-Busch Cos., Inc.................... 38,300 1,817,335 ---------- Chemicals-Diversified -- 1.4% E.I. du Pont de Nemours & Co................ 25,800 1,206,408 ---------- Computers -- 2.6% Apple, Inc.+................................ 7,100 1,018,850 Hewlett-Packard Co.......................... 27,600 1,260,216 ---------- 2,279,066 ---------- Cosmetics & Toiletries -- 2.3% Procter & Gamble Co......................... 29,200 2,046,044 ---------- Diversified Manufacturing Operations -- 3.4% General Electric Co......................... 81,100 3,001,511 ---------- Electric-Integrated -- 2.8% FPL Group, Inc.............................. 20,500 1,286,170 Public Service Enterprise Group, Inc........ 30,400 1,221,776 ---------- 2,507,946 ---------- Electronic Components-Misc. -- 1.3% Tyco Electronics, Ltd....................... 34,700 1,190,904 ---------- Electronic Components-Semiconductors -- 2.6% Intel Corp.................................. 61,500 1,302,570 Microchip Technology, Inc................... 30,200 988,446 ---------- 2,291,016 ---------- Enterprise Software/Service -- 2.1% Oracle Corp.+............................... 96,500 1,887,540 ---------- Finance-Investment Banker/Broker -- 6.2% Citigroup, Inc.............................. 86,800 1,859,256 JPMorgan Chase & Co......................... 40,600 1,743,770 Morgan Stanley.............................. 40,900 1,869,130 ---------- 5,472,156 ---------- Food-Misc. -- 4.2% General Mills, Inc.......................... 29,000 1,736,520 Kraft Foods, Inc., Class A.................. 62,700 1,944,327 ---------- 3,680,847 ----------
Market Value Security Description Shares (Note 3) ---------------------------------------------------------------- Insurance-Multi-line -- 2.0% Hartford Financial Services Group, Inc...... 23,800 $1,803,326 ---------- Insurance-Property/Casualty -- 1.9% Chubb Corp.................................. 34,200 1,692,216 ---------- Investment Management/Advisor Services -- 4.1% Ameriprise Financial, Inc................... 33,900 1,757,715 Invesco, Ltd................................ 75,500 1,839,180 ---------- 3,596,895 ---------- Medical Instruments -- 1.5% Medtronic, Inc.............................. 27,600 1,335,012 ---------- Medical Products -- 1.5% Johnson & Johnson........................... 19,900 1,290,913 ---------- Medical-Biomedical/Gene -- 1.1% Genzyme Corp.+.............................. 13,300 991,382 ---------- Medical-Drugs -- 4.2% Abbott Laboratories......................... 23,800 1,312,570 Merck & Co., Inc............................ 29,600 1,123,320 Pfizer, Inc................................. 62,050 1,298,707 ---------- 3,734,597 ---------- Metal-Aluminum -- 1.3% Alcoa, Inc.................................. 32,700 1,179,162 ---------- Metal-Diversified -- 1.0% Freeport-McMoRan Copper & Gold, Inc......... 9,500 914,090 ---------- Multimedia -- 2.0% News Corp., Class A......................... 95,100 1,783,125 ---------- Networking Products -- 1.6% Cisco Systems, Inc.+........................ 57,500 1,385,175 ---------- Non-Hazardous Waste Disposal -- 1.6% Waste Management, Inc....................... 43,200 1,449,792 ---------- Oil Companies-Integrated -- 9.8% Chevron Corp................................ 26,100 2,227,896 ConocoPhillips.............................. 29,700 2,263,437 Exxon Mobil Corp............................ 25,000 2,114,500 Marathon Oil Corp........................... 45,300 2,065,680 ---------- 8,671,513 ---------- Oil-Field Services -- 2.2% BJ Services Co.............................. 68,000 1,938,680 ---------- Retail-Apparel/Shoe -- 1.4% American Eagle Outfitters, Inc.............. 72,100 1,262,471 ---------- Telecom Equipment-Fiber Optics -- 1.1% Corning, Inc................................ 40,300 968,812 ---------- Telecommunication Equipment -- 1.5% Harris Corp................................. 27,300 1,324,869 ---------- Telephone-Integrated -- 4.7% AT&T, Inc................................... 72,900 2,792,070 Verizon Communications, Inc................. 36,900 1,345,005 ---------- 4,137,075 ----------
37 SunAmerica Growth and Income Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Shares/ Market Principal Value Security Description Amount (Note 3) -------------------------------------------------------------------------------------------------------- COMMON STOCK (continued) Tobacco -- 2.2% Altria Group, Inc.............................................................. 26,600 $ 590,520 Philip Morris International, Inc.+............................................. 26,600 1,345,428 ----------- 1,935,948 ----------- Transport-Services -- 1.6% United Parcel Service, Inc., Class B........................................... 19,600 1,431,192 ----------- Web Portals/ISP -- 0.9% Google, Inc., Class A+......................................................... 1,800 792,846 ----------- Wireless Equipment -- 1.0% QUALCOMM, Inc.................................................................. 22,500 922,500 ----------- Total Long-Term Investment Securities (cost $86,738,726)........................................................... 83,665,844 ----------- REPURCHASE AGREEMENT -- 2.9% State Street Bank & Trust Co. Joint Repurchase Agreement(1) (cost $2,539,000).. $ 2,539,000 2,539,000 ----------- TOTAL INVESTMENTS (cost $89,277,726)(2)........................................................ 97.4% 86,204,844 Other assets less liabilities................................................... 2.6 2,306,785 ----------- ----------- NET ASSETS 100.0% $88,511,629 =========== ===========
-------- + 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. See Notes to Financial Statements 38 SunAmerica Balanced Assets Fund PORTFOLIO PROFILE -- March 31, 2008 -- (unaudited) Industry Allocation* Federal Home Loan Mtg. Corp........... 6.2% Repurchase Agreement.................. 4.9 Oil Companies-Integrated.............. 4.8 Diversified Manufacturing Operations.. 4.0 Diversified Financial Services........ 4.0 Federal National Mtg. Assoc........... 3.5 Electric-Integrated................... 3.5 Finance-Investment Banker/Broker...... 3.2 Aerospace/Defense..................... 2.8 Telephone-Integrated.................. 2.4 Medical-Drugs......................... 2.3 Computers............................. 2.2 Oil-Field Services.................... 2.1 Insurance-Multi-line.................. 1.9 Medical Products...................... 1.8 Cosmetics & Toiletries................ 1.8 United States Treasury Notes.......... 1.7 Investment Management/Advisor Services 1.5 Multimedia............................ 1.4 Special Purpose Entities.............. 1.4 Food-Misc............................. 1.4 Electronic Components-Semiconductors.. 1.3 Beverages-Non-alcoholic............... 1.2 Medical-Biomedical/Gene............... 1.2 Applications Software................. 1.2 Retail-Drug Store..................... 1.2 Banks-Fiduciary....................... 1.1 Banks-Super Regional.................. 1.1 Electric Products-Misc................ 1.0 Web Portals/ISP....................... 1.0 Commercial Services-Finance........... 1.0 Networking Products................... 0.9 Agricultural Chemicals................ 0.8 Retail-Discount....................... 0.8 Therapeutics.......................... 0.7 Tobacco............................... 0.7 Government National Mtg. Assoc........ 0.7 Oil Companies-Exploration & Production 0.7 Banks-Commercial...................... 0.7 Wireless Equipment.................... 0.7 Instruments-Scientific................ 0.7 Sovereign............................. 0.7 Brewery............................... 0.7 Metal-Aluminum........................ 0.6 Non-Hazardous Waste Disposal.......... 0.6 Insurance-Property/Casualty........... 0.6 Retail-Apparel/Shoe................... 0.6 Enterprise Software/Service........... 0.6 Cellular Telecom...................... 0.6 Pipelines............................. 0.5 Metal-Diversified..................... 0.5 Chemicals-Diversified................. 0.5 Medical Instruments................... 0.5 Savings & Loans/Thrifts............... 0.5 Telecom Equipment-Fiber Optics........ 0.5 Aerospace/Defense-Equipment........... 0.5 Oil & Gas Drilling.................... 0.4 Commercial Services................... 0.4 Data Processing/Management............ 0.4 Medical-HMO........................... 0.4 Electronics-Military.................. 0.4
Electronic Measurement Instruments.. 0.4 Diversified Minerals................ 0.4 Telecom Services.................... 0.4 Electronic Forms.................... 0.3 Real Estate Investment Trusts....... 0.3 X-Ray Equipment..................... 0.3 Transport-Air Freight............... 0.3 Retail-Office Supplies.............. 0.3 Insurance-Life/Health............... 0.3 Entertainment Software.............. 0.3 Medical-Generic Drugs............... 0.3 Retail-Regional Department Stores... 0.2 Transport-Rail...................... 0.2 Office Automation & Equipment....... 0.2 Coal................................ 0.2 E-Commerce/Services................. 0.2 Medical-Hospitals................... 0.2 Internet Infrastructure Software.... 0.2 Banks-Money Center.................. 0.2 Steel-Producers..................... 0.2 Casino Hotel........................ 0.2 Electric-Generation................. 0.2 Rental Auto/Equipment............... 0.2 Retail-Consumer Electronics......... 0.2 Medical-Wholesale Drug Distribution. 0.2 Finance-Auto Loans.................. 0.2 Cable TV............................ 0.2 Computer Aided Design............... 0.2 Metal Processors & Fabrication...... 0.1 Oil Refining & Marketing............ 0.1 Radio............................... 0.1 Diagnostic Kits..................... 0.1 Diversified Operations.............. 0.1 Broadcast Services/Program.......... 0.1 Agricultural Operations............. 0.1 Beverages-Wine/Spirits.............. 0.1 Real Estate Operations & Development 0.1 Finance-Commercial.................. 0.1 Containers-Paper/Plastic............ 0.1 Chemicals-Specialty................. 0.1 United States Treasury Bonds........ 0.1 Paper & Related Products............ 0.1 Retail-Restaurants.................. 0.1 Airlines............................ 0.1 Transport-Marine.................... 0.1 Insurance Brokers................... 0.1 Industrial Automated/Robotic........ 0.1 Independent Power Producer.......... 0.1 Computer Services................... 0.1 Food-Retail......................... 0.1 Quarrying........................... 0.1 Finance-Consumer Loans.............. 0.1 Home Decoration Products............ 0.1 Gas-Distribution.................... 0.1 Transport-Services.................. 0.1 Cruise Lines........................ 0.1 Auto-Cars/Light Trucks.............. 0.1 ---- 97.9% ====
-------- * Calculated as a percentage of net assets 39 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited)
Market Value Security Description Shares (Note 3) --------------------------------------------------------------- COMMON STOCK -- 59.9% Aerospace/Defense -- 2.7% Boeing Co................................... 16,100 $1,197,357 General Dynamics Corp....................... 7,400 616,938 Lockheed Martin Corp........................ 3,200 317,760 Raytheon Co................................. 18,000 1,162,980 Spirit Aerosystems Holdings, Inc., Class A+. 8,900 197,402 ---------- 3,492,437 ---------- Aerospace/Defense-Equipment -- 0.4% United Technologies Corp.................... 7,200 495,504 ---------- Agricultural Chemicals -- 0.7% Monsanto Co................................. 8,600 958,900 ---------- Applications Software -- 1.2% Microsoft Corp.............................. 53,078 1,506,354 ---------- Banks-Fiduciary -- 1.1% The Bank of New York Mellon Corp............ 33,516 1,398,623 ---------- Banks-Super Regional -- 0.9% Bank of America Corp........................ 29,588 1,121,681 ---------- Beverages-Non-alcoholic -- 1.2% PepsiCo, Inc................................ 22,000 1,588,400 ---------- Brewery -- 0.6% Anheuser-Busch Cos., Inc.................... 17,700 839,865 ---------- Casino Hotel -- 0.1% MGM Mirage, Inc.+........................... 2,546 149,628 ---------- Cellular Telecom -- 0.3% NII Holdings, Inc.+......................... 13,200 419,496 ---------- Chemicals-Diversified -- 0.4% E.I. du Pont de Nemours & Co................ 11,800 551,768 ---------- Coal -- 0.2% Peabody Energy Corp......................... 6,100 311,100 ---------- Commercial Services -- 0.4% AerCap Holdings NV+......................... 13,200 232,056 Alliance Data Systems Corp.+................ 7,000 332,570 ---------- 564,626 ---------- Commercial Services-Finance -- 0.8% Global Payments, Inc........................ 13,100 541,816 Visa, Inc., Class A+........................ 7,150 445,874 ---------- 987,690 ---------- Computer Aided Design -- 0.2% Autodesk, Inc.+............................. 6,144 193,413 ---------- Computers -- 2.2% Apple, Inc.+................................ 6,800 975,800 Hewlett-Packard Co.......................... 17,800 812,748 International Business Machines Corp........ 4,900 564,186 Research In Motion Ltd.+.................... 4,000 448,920 ---------- 2,801,654 ---------- Cosmetics & Toiletries -- 1.7% Procter & Gamble Co......................... 32,200 2,256,254 ---------- Data Processing/Management -- 0.4% Fiserv, Inc.+............................... 11,700 562,653 ----------
Market Value Security Description Shares (Note 3) -------------------------------------------------------------- Diagnostic Kits -- 0.1% Inverness Medical Innovations, Inc.+...... 5,800 $ 174,580 ---------- Diversified Manufacturing Operations -- 3.6% 3M Co..................................... 8,900 704,435 Danaher Corp.............................. 10,300 783,109 Dover Corp................................ 11,790 492,586 General Electric Co....................... 73,200 2,709,132 ---------- 4,689,262 ---------- Diversified Minerals -- 0.4% Cia Vale do Rio Doce ADR.................. 14,600 505,744 ---------- E-Commerce/Services -- 0.2% eBay, Inc.+............................... 10,300 307,352 ---------- Electric Products-Misc. -- 1.0% AMETEK, Inc............................... 12,134 532,804 Emerson Electric Co....................... 14,100 725,586 ---------- 1,258,390 ---------- Electric-Integrated -- 1.9% FPL Group, Inc............................ 9,700 608,578 Public Service Enterprise Group, Inc...... 14,400 578,736 Southern Co............................... 17,300 616,053 Xcel Energy, Inc.......................... 30,100 600,495 ---------- 2,403,862 ---------- Electronic Components-Semiconductors -- 1.2% Broadcom Corp., Class A+.................. 12,100 233,167 Intel Corp................................ 40,300 853,554 Texas Instruments, Inc.................... 15,100 426,877 ---------- 1,513,598 ---------- Electronic Forms -- 0.3% Adobe Systems, Inc.+...................... 12,300 437,757 ---------- Electronic Measurement Instruments -- 0.3% Agilent Technologies, Inc.+............... 14,200 423,586 ---------- Electronics-Military -- 0.4% L-3 Communications Holdings, Inc.......... 4,600 502,964 ---------- Enterprise Software/Service -- 0.6% Oracle Corp.+............................. 37,800 739,368 ---------- Entertainment Software -- 0.3% Electronic Arts, Inc.+.................... 6,700 334,464 ---------- Finance-Investment Banker/Broker -- 2.5% Citigroup, Inc............................ 37,788 809,419 JPMorgan Chase & Co....................... 28,500 1,224,075 Morgan Stanley............................ 18,200 831,740 The Goldman Sachs Group, Inc.............. 2,584 427,368 ---------- 3,292,602 ---------- Food-Misc. -- 1.3% General Mills, Inc........................ 13,200 790,416 Kraft Foods, Inc., Class A................ 28,628 887,754 ---------- 1,678,170 ---------- Independent Power Producer -- 0.0% Mirant Corp.+............................. 186 6,769 ----------
40 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market Value Security Description Shares (Note 3) ---------------------------------------------------------------- COMMON STOCK (continued) Instruments-Scientific -- 0.7% Thermo Fisher Scientific, Inc.+............. 15,700 $ 892,388 ---------- Insurance-Multi-line -- 1.7% Assurant, Inc............................... 8,000 486,880 Hartford Financial Services Group, Inc...... 10,700 810,739 MetLife, Inc................................ 14,400 867,744 ---------- 2,165,363 ---------- Insurance-Property/Casualty -- 0.6% Chubb Corp.................................. 14,700 727,356 ---------- Internet Infrastructure Software -- 0.2% Akamai Technologies, Inc.+.................. 10,200 287,232 ---------- Investment Management/Advisor Services -- 1.4% Ameriprise Financial, Inc................... 15,300 793,305 Invesco, Ltd................................ 44,400 1,081,584 ---------- 1,874,889 ---------- Medical Instruments -- 0.5% Medtronic, Inc.............................. 13,100 633,647 ---------- Medical Products -- 1.8% Johnson & Johnson........................... 29,700 1,926,639 Zimmer Holdings, Inc.+...................... 5,900 459,374 ---------- 2,386,013 ---------- Medical-Biomedical/Gene -- 1.2% Celgene Corp.+.............................. 7,100 435,159 Genentech, Inc.+............................ 6,600 535,788 Genzyme Corp.+.............................. 7,500 559,050 ---------- 1,529,997 ---------- Medical-Drugs -- 1.9% Abbott Laboratories......................... 17,900 987,185 Merck & Co., Inc............................ 14,100 535,095 Pfizer, Inc................................. 41,714 873,074 Schering-Plough Corp........................ 8,074 116,346 ---------- 2,511,700 ---------- Medical-Generic Drugs -- 0.2% Mylan, Inc.................................. 27,800 322,480 ---------- Medical-HMO -- 0.4% UnitedHealth Group Inc...................... 15,100 518,836 ---------- Medical-Wholesale Drug Distribution -- 0.2% Cardinal Health, Inc........................ 4,300 225,793 ---------- Metal-Aluminum -- 0.4% Alcoa, Inc.................................. 14,500 522,870 ---------- Metal-Diversified -- 0.4% Freeport-McMoRan Copper & Gold, Inc......... 5,600 538,832 ---------- Multimedia -- 1.0% News Corp., Class A......................... 67,714 1,269,638 ---------- Networking Products -- 0.9% Cisco Systems, Inc.+........................ 46,800 1,127,412 ---------- Non-Hazardous Waste Disposal -- 0.6% Waste Management, Inc....................... 21,800 731,608 ----------
Market Value Security Description Shares (Note 3) ---------------------------------------------------------------- Oil Companies-Exploration & Production -- 0.4% XTO Energy, Inc............................. 9,100 $ 562,926 ---------- Oil Companies-Integrated -- 4.7% Chevron Corp................................ 15,128 1,291,326 ConocoPhillips.............................. 15,900 1,211,739 Exxon Mobil Corp............................ 31,300 2,647,354 Marathon Oil Corp........................... 19,400 884,640 ---------- 6,035,059 ---------- Oil-Field Services -- 2.5% BJ Services Co.............................. 31,200 889,512 Global Industries, Ltd.+.................... 24,900 400,641 Halliburton Co.............................. 14,600 574,218 Schlumberger, Ltd........................... 9,050 787,350 Transocean, Inc.+........................... 4,283 579,062 ---------- 3,230,783 ---------- Retail-Apparel/Shoe -- 0.6% American Eagle Outfitters, Inc.............. 43,300 758,183 ---------- Retail-Consumer Electronics -- 0.2% Best Buy Co., Inc........................... 5,500 228,030 ---------- Retail-Discount -- 0.7% Target Corp................................. 6,400 324,352 Wal-Mart Stores, Inc........................ 11,100 584,748 ---------- 909,100 ---------- Retail-Drug Store -- 1.0% CVS Caremark Corp........................... 31,361 1,270,434 ---------- Retail-Office Supplies -- 0.3% Staples, Inc................................ 17,800 393,558 ---------- Retail-Regional Department Stores -- 0.2% Kohl's Corp.+............................... 7,700 330,253 ---------- Telecom Equipment-Fiber Optics -- 0.5% Corning, Inc................................ 26,000 625,040 ---------- Telephone-Integrated -- 1.7% AT&T, Inc................................... 37,835 1,449,080 Verizon Communications, Inc................. 19,100 696,195 ---------- 2,145,275 ---------- Therapeutics -- 0.7% Gilead Sciences, Inc.+...................... 18,700 963,611 ---------- Tobacco -- 0.7% Altria Group, Inc........................... 12,700 281,940 Philip Morris International, Inc.+.......... 12,700 642,366 ---------- 924,306 ---------- Web Portals/ISP -- 1.0% Google, Inc., Class A+...................... 2,400 1,057,128 Yahoo!, Inc.+............................... 6,300 182,259 ---------- 1,239,387 ---------- Wireless Equipment -- 0.7% QUALCOMM, Inc............................... 21,850 895,850 ----------
41 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Shares/ Market Principal Value Security Description Amount (Note 3) ---------------------------------------------------------------- COMMON STOCK (continued) X-Ray Equipment -- 0.3% Hologic, Inc.+........................... 7,500 $ 417,000 ----------- Total Common Stock (cost $75,203,206)...................... 77,663,363 ----------- PREFERRED STOCK -- 0.5% Banks-Money Center -- 0.1% Santander Finance Preferred SA(1) 4.00%................................... 8,400 142,800 ----------- Banks-Super Regional -- 0.1% Wachovia Capital Trust IX 6.38%................................... 3,100 66,154 ----------- Diversified Financial Services -- 0.2% General Electric Capital Corp. 8.00%(2)................................ 14,000 336,420 ----------- Special Purpose Entity -- 0.1% Structured Repackaged Asset-Backed Trust Securities 3.00%(1)..................... 9,200 157,320 ----------- Total Preferred Stock (cost $853,994)......................... 702,694 ----------- ASSET BACKED SECURITIES -- 3.6% Diversified Financial Services -- 3.6% Banc of America Funding Corp. Series 2007-C, Class 5A1 5.40% due 05/20/36(3)(6)................ $ 334,293 328,393 Banc of America Funding Corp. Series 2006-J, Class 2A1 5.89% due 01/20/47(3)(6)................ 326,545 276,151 Bear Stearns Commercial Mtg. Securities, Inc. Series 2007-PW15, Class A2 5.21% due 02/11/44(5)................... 165,000 159,044 Chase Mtg. Finance Corp. Series 2007-A2, Class 1A1 4.67% due 07/25/37(3)(6)................ 312,944 298,312 Commercial Mtg. Pass Through Certs. Series 2004-LB2A, Class A3 4.22% due 03/10/39(5)................... 674,000 657,933 Countrywide Asset-Backed Certs., Series 2006-S4, Class A3 5.80% due 10/25/36(6)................... 920,000 552,000 Countrywide Asset-Backed Certs., Series 2006-S6, Class A3 5.66% due 03/25/34(6)................... 928,000 556,800 Ocwen Advance Receivables Backed Notes Series 2006-1A 5.34% due 11/24/15*(11)................. 350,000 308,000 Providian Master Note Trust Series 2006-C1A, Class C1 3.37% due 03/16/15*(1).................. 550,000 478,156 Swift Master Auto Receivables Trust Series 2007-2, Class A 3.47% due 10/15/12(1)................... 439,937 423,727
Market Principal Value Security Description Amount (Note 3) --------------------------------------------------------------- Diversified Financial Services (continued) Wells Fargo Mtg. Backed Securities Trust Series 2006-AR17, Class A2 5.84% due 10/25/36(1)(3)................ $ 413,346 $ 395,733 Wells Fargo Mtg. Backed Securities Trust Series 2006-AR12, Class 2A1 6.10% due 09/25/36(3)(6)................ 209,559 197,250 ---------- Total Asset Backed Securities (cost $5,634,951)....................... 4,631,499 ---------- CORPORATE BONDS & NOTES -- 12.9% Aerospace/Defense -- 0.1% Lockheed Martin Corp. Senior Notes 4.12% due 03/14/13...................... 80,000 80,115 ---------- Aerospace/Defense-Equipment -- 0.1% United Technologies Corp. Senior Notes 4.88% due 05/01/15...................... 124,000 126,190 ---------- Agricultural Chemicals -- 0.1% Mosaic Global Holdings, Inc. Debentures 7.38% due 08/01/18...................... 10,000 10,200 Terra Capital, Inc. Company Guar. Notes 7.00% due 02/01/17...................... 25,000 24,656 The Mosaic Co. Senior Notes 7.38% due 12/01/14*..................... 45,000 48,150 ---------- 83,006 ---------- Agricultural Operations -- 0.1% Archer-Daniels-Midland Co. Senior Notes 5.45% due 03/15/18...................... 31,000 31,163 Archer-Daniels-Midland Co. Senior Notes 6.45% due 01/15/38...................... 30,000 30,473 Cargill, Inc. Senior Notes 5.00% due 11/15/13*..................... 106,000 105,635 ---------- 167,271 ---------- Airlines -- 0.1% American Airlines, Inc. Pass Through Certs. Series 2001-1, Class A-2 6.82% due 05/23/11...................... 70,000 65,975 Northwest Airlines, Inc. Pass Through Certs. Series 2002-1 Class G2 6.26% due 11/20/21...................... 41,631 41,163 ---------- 107,138 ---------- Auto-Cars/Light Trucks -- 0.0% Ford Motor Co. Debentures 6.38% due 02/01/29...................... 60,000 36,000
42 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market Principal Value Security Description Amount (Note 3) ---------------------------------------------------------- CORPORATE BONDS & NOTES (continued) Auto-Cars/Light Trucks (continued) General Motors Corp. Debentures 8.25% due 07/15/23.................. $ 40,000 $ 28,000 -------- 64,000 -------- Banks-Commercial -- 0.5% Colonial Bank NA Sub. Notes 6.38% due 12/01/15.................. 70,000 60,316 First Maryland Capital II Company Guar. Notes 4.09% due 02/01/27(1)............... 196,000 179,556 SouthTrust Bank Sub. Notes 4.75% due 03/01/13.................. 120,000 121,358 SouthTrust Corp. Sub. Notes 5.80% due 06/15/14.................. 55,000 57,947 SunTrust Bank Sub. Notes 7.25% due 03/15/18.................. 35,000 35,794 Union Bank of California NA Sub. Notes 5.95% due 05/11/16.................. 120,000 117,208 US Bank NA Notes 3.90% due 08/15/08.................. 38,000 38,025 -------- 610,204 -------- Banks-Fiduciary -- 0.0% The Bank of New York Mellon Corp. Senior Notes 4.95% due 11/01/12.................. 47,000 48,155 -------- Banks-Super Regional -- 0.2% Bank of America Corp. Company Guar. Notes 3.76% due 12/18/28(1)............... 80,000 60,761 Fifth Third Bancorp Sub. Notes 8.25% due 03/01/38.................. 70,000 71,328 Wells Fargo Bank NA Sub. Notes 6.45% due 02/01/11.................. 90,000 95,727 -------- 227,816 -------- Broadcast Services/Program -- 0.0% Nexstar Finance, Inc. Senior Sub. Notes 7.00% due 01/15/14.................. 35,000 30,144 -------- Building-Residential/Commercial -- 0.0% D.R. Horton, Inc. Company Guar. Notes 5.00% due 01/15/09.................. 41,000 39,463 --------
Market Principal Value Security Description Amount (Note 3) ----------------------------------------------------------- Cable TV -- 0.2% CCH I LLC Company Guar. Notes 11.00% due 10/01/15................... $ 28,000 $ 19,250 CCH II LLC/CCH II Capital Corp. Company Guar. Notes 10.25% due 10/01/13................... 85,000 72,888 Comcast Cable Communications LLC Senior Notes 7.13% due 06/15/13.................... 50,000 53,120 Comcast Corp. Company Guar. Notes 5.88% due 02/15/18.................... 50,000 48,702 -------- 193,960 -------- Casino Hotels -- 0.1% MGM Mirage, Inc. Senior Notes 5.88% due 02/27/14.................... 95,000 81,225 Turning Stone Resort Casino Enterprise Senior Notes 9.13% due 09/15/14*................... 45,000 42,975 -------- 124,200 -------- Casino Services -- 0.0% Indianapolis Downs LLC Sec. Notes 11.00% due 11/01/12*.................. 30,000 26,100 -------- Cellular Telecom -- 0.2% Centennial Communications Corp. Senior Notes 10.48% due 01/01/13(1)................ 100,000 87,000 MetroPCS Wireless, Inc. Senior Notes 9.25% due 11/01/14.................... 50,000 46,000 Nextel Communications, Inc. Company Guar. Notes 5.95% due 03/15/14.................... 100,000 74,000 Rural Cellular Corp. Senior Sub. Notes 6.08% due 06/01/13(1)................. 15,000 15,000 Rural Cellular Corp. Senior Notes 8.99% due 11/01/12(1)................. 5,000 5,000 -------- 227,000 -------- Chemicals-Diversified -- 0.1% E.I. Du Pont de Nemours & Co. Senior Notes 4.88% due 04/30/14.................... 38,000 38,508 E.I. Du Pont de Nemours & Co. Senior Notes 5.00% due 01/15/13.................... 65,000 67,681 -------- 106,189 --------
43 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market Principal Value Security Description Amount (Note 3) ----------------------------------------------------------------------- CORPORATE BONDS & NOTES (continued) Chemicals-Specialty -- 0.1% Huntsman International LLC Company Guar. Notes 7.88% due 11/15/14................................ $ 60,000 $ 63,600 Momentive Performance Materials, Inc. Senior Sub. Notes 11.50% due 12/01/16............................... 85,000 64,706 -------- 128,306 -------- Commercial Services-Finance -- 0.2% Credit Suisse New York Sub. Notes 5.75% due 02/15/18................................ 43,000 42,897 The Western Union Co. Senior Notes 5.40% due 11/17/11................................ 161,000 164,920 -------- 207,817 -------- Computer Services -- 0.1% Compucom Systems, Inc. Senior Sub. Notes 12.50% due 10/01/15*.............................. 30,000 28,050 Computer Sciences Corp. Senior Notes 3.50% due 04/15/08................................ 65,000 64,985 -------- 93,035 -------- Computers -- 0.0% Hewlett-Packard Co. Senior Notes 4.50% due 03/01/13................................ 45,000 45,652 -------- Containers-Paper/Plastic -- 0.1% Jefferson Smurfit Corp. Company Guar. Notes 8.25% due 10/01/12................................ 30,000 27,037 Smurfit-Stone Container Enterprises, Inc. Senior Notes 8.00% due 03/15/17................................ 125,000 105,000 -------- 132,037 -------- Cosmetics & Toiletries -- 0.0% Avon Products, Inc. Senior Notes 5.75% due 03/01/18................................ 30,000 30,543 -------- Data Processing/Management -- 0.1% Fiserv, Inc. Company Guar. Notes 6.80% due 11/20/17................................ 80,000 82,672 -------- Direct Marketing -- 0.0% Affinity Group, Inc. Senior Sub. Notes 9.00% due 02/15/12................................ 45,000 41,569 -------- Diversified Financial Services -- 0.2% American Express Travel Related Services Co., Inc. Senior Notes 5.25% due 11/21/11*............................... 50,000 50,118
Market Principal Value Security Description Amount (Note 3) --------------------------------------------------------------- Diversified Financial Services (continued) General Electric Capital Corp. Senior Notes 5.65% due 06/09/14....................... $ 80,000 $ 82,896 General Electric Capital Corp. Senior Notes 5.88% due 01/14/38....................... 80,000 77,109 -------- 210,123 -------- Diversified Manufacturing Operations -- 0.3% Cooper, Inc. Senior Notes 5.45% due 04/01/15....................... 80,000 80,737 Danaher Corp. Senior Notes 5.63% due 01/15/18....................... 54,000 56,111 Dover Corp. Senior Notes 5.45% due 03/15/18....................... 27,000 27,268 Dover Corp. Senior Notes 6.60% due 03/15/38....................... 64,000 66,041 General Electric Co. Senior Notes 5.25% due 12/06/17....................... 77,000 76,894 Honeywell International, Inc. Senior Notes 4.25% due 03/01/13....................... 56,000 56,567 -------- 363,618 -------- Diversified Operations -- 0.0% Capmark Financial Group, Inc. Company Guar. Notes 5.88% due 05/10/12*...................... 50,000 31,679 -------- Electric-Generation -- 0.2% Bruce Mansfield Unit 1 Pass Through Certs. 6.85% due 06/01/34....................... 110,000 115,486 The AES Corp. Senior Notes 8.00% due 10/15/17....................... 60,000 60,750 The AES Corp. Senior Notes 8.88% due 02/15/11....................... 85,000 89,037 -------- 265,273 -------- Electric-Integrated -- 1.5% Centerpoint Energy, Inc. Senior Notes 5.88% due 06/01/08....................... 140,000 140,213 Commonwealth Edison Co. 1st Mtg. Bonds 5.95% due 08/15/16....................... 50,000 50,785 Dominion Resources, Inc. Senior Notes 5.75% due 05/15/08(2).................... 132,000 132,265 Dominion Resources, Inc. Jr. Sub. Notes 6.30% due 09/30/11(4).................... 109,000 99,684
44 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market Principal Value Security Description Amount (Note 3) ------------------------------------------------------ CORPORATE BONDS & NOTES (continued) Electric-Integrated (continued) DTE Energy Co. Senior Notes 7.05% due 06/01/11.............. $ 75,000 $ 80,211 Duke Energy Indiana, Inc. Debentures 5.00% due 09/15/13.............. 60,000 60,374 Entergy Louisiana LLC 1st Mtg. Bonds 5.83% due 11/01/10.............. 195,000 194,543 FirstEnergy Corp. Senior Notes 6.45% due 11/15/11.............. 66,060 69,149 Florida Power & Light Co. 1st Mtg. Notes 5.55% due 11/01/17.............. 96,000 100,496 Illinois Power Co. Senior Sec. Notes 6.13% due 11/15/17*............. 45,000 44,498 Mackinaw Power LLC Sec. Notes 6.30% due 10/31/23*............. 105,270 110,143 Mirant Americas Generation LLC Senior Notes 8.30% due 05/01/11.............. 30,000 30,600 Mirant Mid-Atlantic LLC Pass Through Certs. Series B 9.13% due 06/30/17.............. 40,254 44,531 Nisource Finance Corp. Company Guar. Notes 5.25% due 09/15/17.............. 43,000 39,149 Pacific Gas & Electric Co. Senior Notes 4.80% due 03/01/14.............. 45,000 45,390 Pepco Holdings, Inc. Senior Notes 6.45% due 08/15/12.............. 55,000 58,604 Potomac Electric Power Co. Senior Sec. Notes 6.50% due 11/15/37.............. 80,000 78,114 PSEG Power LLC Company Guar. Notes 5.00% due 04/01/14.............. 67,000 65,209 PSEG Power LLC Company Guar. Notes 7.75% due 04/15/11.............. 65,000 70,032 Puget Sound Energy, Inc. Senior Notes 5.20% due 10/01/15.............. 212,000 207,716 Sierra Pacific Power Co. Senior Sec. Bonds 6.75% due 07/01/37.............. 90,000 86,308 Southern Energy, Inc. Notes 7.90% due 07/15/09+(10)(11)(14). 150,000 0
Market Principal Value Security Description Amount (Note 3) ------------------------------------------------------------------ Electric-Integrated (continued) Southern Power Co. Senior Notes 4.88% due 07/15/15......................... $ 47,000 $ 45,089 Texas Competitive Electric Holdings Co. LLC Senior Notes 10.25% due 11/01/15*....................... 60,000 59,775 ---------- 1,912,878 ---------- Electronic Components-Semiconductors -- 0.1% Freescale Semiconductor, Inc. Senior Sub. Notes 10.13% due 12/15/16........................ 30,000 20,250 National Semiconductor Corp. Senior Notes 6.60% due 06/15/17......................... 100,000 99,106 Spansion LLC Senior Sec. Notes 6.20% due 06/01/13*(1)..................... 10,000 6,750 ---------- 126,106 ---------- Electronic Measurement Instruments -- 0.1% Agilent Technologies, Inc. Senior Notes 6.50% due 11/01/17......................... 88,000 88,305 ---------- Electronics-Military -- 0.0% L-3 Communications Corp. Company Guar. Notes 6.38% due 10/15/15......................... 20,000 19,550 ---------- Finance-Auto Loans -- 0.2% Ford Motor Credit Co. LLC Senior Notes 7.38% due 10/28/09......................... 140,000 127,559 General Motors Acceptance Corp. Senior Notes 6.88% due 09/15/11......................... 120,000 91,844 General Motors Acceptance Corp. Senior Notes 6.88% due 08/28/12......................... 8,000 6,079 ---------- 225,482 ---------- Finance-Commercial -- 0.1% Caterpillar Financial Services Corp. Senior Notes 4.70% due 03/15/12......................... 65,000 66,419 Transamerica Finance Corp. Senior Notes 6.40% due 09/15/08......................... 75,000 76,146 ---------- 142,565 ---------- Finance-Consumer Loans -- 0.1% John Deere Capital Corp. Senior Notes 4.50% due 04/03/13......................... 42,000 41,931 John Deere Capital Corp. Senior Notes 5.35% due 04/03/18......................... 40,000 39,878 ---------- 81,809 ----------
45 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market Principal Value Security Description Amount (Note 3) ----------------------------------------------------------- CORPORATE BONDS & NOTES (continued) Finance-Investment Banker/Broker -- 0.7% Citigroup, Inc. Senior Notes 5.00% due 09/15/14................... $ 40,000 $ 37,697 Citigroup, Inc. Senior Notes 5.85% due 07/02/13................... 93,000 94,360 Citigroup, Inc. Global Sub. Notes 6.00% due 10/31/33................... 40,000 34,176 JPMorgan Chase & Co. Senior Notes 5.38% due 01/15/14................... 120,000 122,954 JPMorgan Chase & Co. Senior Notes 6.00% due 01/15/18................... 44,000 45,884 JPMorgan Chase & Co. Sub. Notes 5.75% due 01/02/13................... 56,000 58,502 Lehman Brothers Holdings, Inc. Sub. Notes 6.50% due 07/19/17................... 110,000 104,461 Lehman Brothers Holdings, Inc. Senior Notes 8.80% due 03/01/15................... 26,000 27,990 Morgan Stanley Senior Notes 6.60% due 04/01/12................... 40,000 41,471 Morgan Stanley Senior Notes 6.63% due 04/01/18................... 67,000 67,024 Merrill Lynch & Co., Inc. Senior Notes 5.45% due 02/05/13................... 83,000 81,660 Schwab Capital Trust I Company Guar. Bonds 7.50% due 11/15/37(6)................ 19,000 17,660 The Bear Stearns Cos., Inc. Senior Notes 4.50% due 10/28/10................... 6,000 5,655 The Goldman Sachs Group, Inc. Senior Notes 6.15% due 04/01/18................... 105,000 104,844 The Goldman Sachs Group, Inc. Senior Notes 6.75% due 10/01/37................... 31,000 28,840 -------- 873,178 -------- Finance-Mortgage Loan/Banker -- 0.0% Countrywide Financial Corp. Company Guar. Notes 5.80% due 06/07/12................... 4,000 3,624 Countrywide Financial Corp. Sub. Notes 6.25% due 05/15/16................... 33,000 26,775 Residential Capital LLC Company Guar. Notes 8.50% due 04/17/13(2)................ 60,000 29,100 -------- 59,499 --------
Market Principal Value Security Description Amount (Note 3) ------------------------------------------------------------------- Food-Misc. -- 0.1% Kellogg Co. Senior Notes 4.25% due 03/06/13............................ $40,000 $ 39,876 Kraft Foods, Inc. Senior Notes 6.13% due 02/01/18............................ 90,000 89,943 -------- 129,819 -------- Funeral Services & Related Items -- 0.0% Service Corp. International Senior Notes 6.75% due 04/01/16............................ 30,000 29,025 -------- Gambling (Non-Hotel) -- 0.0% Downstream Development Authority of the Quapaw Tribe of Oklahoma Senior Notes 12.00% due 10/15/15*.......................... 25,000 19,750 -------- Home Decoration Products -- 0.1% Newell Rubbermaid, Inc. Senior Notes 5.50% due 04/15/13............................ 80,000 80,438 -------- Home Furnishings -- 0.0% Simmons Co. Company Guar. Notes 7.88% due 01/15/14............................ 25,000 20,500 Simmons Co. Senior Disc. Notes 10.00% due 12/15/14(2)........................ 21,000 13,545 -------- 34,045 -------- Hotel/Motel -- 0.0% Starwood Hotels & Resorts Worldwide, Inc. Senior Notes 6.25% due 02/15/13............................ 45,000 44,944 -------- Independent Power Producer -- 0.1% NRG Energy, Inc. Company Guar. Notes 7.38% due 02/01/16............................ 90,000 88,200 -------- Industrial Automated/Robotic -- 0.1% Rockwell Automation, Inc. Debentures 5.65% due 12/01/17............................ 19,000 19,995 Rockwell Automation, Inc. Debentures 6.25% due 12/01/37............................ 77,000 78,996 -------- 98,991 -------- Insurance Brokers -- 0.1% Marsh & McLennan Cos., Inc. Senior Notes 5.15% due 09/15/10............................ 60,000 59,862 Marsh & McLennan Cos., Inc. Senior Notes 7.13% due 06/15/09............................ 40,000 40,719 -------- 100,581 --------
46 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market Principal Value Security Description Amount (Note 3) ------------------------------------------------------------------ CORPORATE BONDS & NOTES (continued) Insurance-Life/Health -- 0.3% Americo Life, Inc. Notes 7.88% due 05/01/13*........................ $ 134,000 $ 139,791 Cigna Corp Senior Notes 6.35% due 03/15/18......................... 80,000 81,190 Lincoln National Corp. Senior Notes 5.65% due 08/27/12......................... 58,000 59,137 Monumental Global Funding II Notes 5.65% due 07/14/11*........................ 66,000 69,144 --------- 349,262 --------- Insurance-Property/Casualty -- 0.0% The Travelers Cos., Inc. Senior Notes 6.25% due 06/15/37......................... 38,000 35,222 W.R. Berkley Corp. Senior Sub. Notes 6.25% due 02/15/37......................... 3,000 2,667 --------- 37,889 --------- Investment Management/Advisor Services -- 0.1% LVB Acquisition Merger Sub, Inc. Senior Notes 10.38% due 10/15/17*....................... 40,000 41,500 LVB Acquisition Merger Sub, Inc. Senior Sub. Notes 11.63% due 10/15/17*....................... 50,000 50,000 --------- 91,500 --------- Medical-Drugs -- 0.3% Abbott Laboratories Senior Notes 6.15% due 11/30/37......................... 8,000 8,266 American Home Products Corp. Senior Notes 6.95% due 03/15/11......................... 123,000 132,954 Schering-Plough Corp. Senior Notes 6.55% due 09/15/37......................... 57,000 54,893 Wyeth Bonds 5.50% due 02/01/14......................... 126,000 130,512 --------- 326,625 --------- Medical-HMO -- 0.0% UnitedHealth Group, Inc. Senior Notes 6.88% due 02/15/38......................... 37,000 35,352 --------- Medical-Hospitals -- 0.2% Community Health Systems, Inc. Company Guar. Notes 8.88% due 07/15/15......................... 80,000 80,300 HCA, Inc. Senior Notes 6.25% due 02/15/13......................... 55,000 47,850
Market Principal Value Security Description Amount (Note 3) --------------------------------------------------------- Medical-Hospitals (continued) HCA, Inc. Senior Notes 9.13% due 11/15/14.................. $ 25,000 $ 25,750 HCA, Inc. Senior Notes 9.25% due 11/15/16.................. 140,000 145,250 -------- 299,150 -------- Metal Processors & Fabrication -- 0.1% Commercial Metals Co. Senior Notes 6.50% due 07/15/17.................. 87,000 89,864 Timken Co. Notes 5.75% due 02/15/10.................. 96,000 99,394 -------- 189,258 -------- Metal-Aluminum -- 0.2% Alcoa, Inc. Senior Notes 6.00% due 01/15/12.................. 60,000 62,294 Alcoa, Inc. Senior Notes 6.50% due 06/15/18.................. 141,000 147,069 -------- 209,363 -------- Metal-Diversified -- 0.0% Freeport-McMoRan Copper & Gold, Inc. Senior Notes 8.38% due 04/01/17.................. 40,000 42,450 Noranda Aluminium Acquisition Corp. Senior Notes 8.74% due 05/15/15*................. 25,000 19,625 -------- 62,075 -------- Multimedia -- 0.5% Belo Corp. Senior Notes 6.75% due 05/30/13.................. 60,000 57,641 Cox Enterprises, Inc. Notes 7.88% due 09/15/10*................. 205,000 220,233 News America, Inc. Company Guar. Bonds 7.30% due 04/30/28.................. 80,000 84,781 Time Warner Cos, Inc. Company Guaranteed Notes 7.25% due 10/15/17.................. 71,000 73,514 Time Warner Entertainment Co. LP Senior Notes 8.38% due 07/15/33.................. 99,000 111,393 Viacom, Inc. Senior Notes 6.88% due 04/30/36.................. 50,000 48,148 -------- 595,710 --------
47 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market Principal Value Security Description Amount (Note 3) ----------------------------------------------------------------- CORPORATE BONDS & NOTES (continued) Non-Hazardous Waste Disposal -- 0.0% Waste Management, Inc. Company Guar. Notes 6.88% due 05/15/09......................... $ 56,000 $ 57,449 -------- Office Automation & Equipment -- 0.2% IKON Office Solutions, Inc. Senior Notes 7.75% due 09/15/15......................... 40,000 38,000 Pitney Bowes, Inc. Senior Notes 5.25% due 01/15/37......................... 194,000 192,005 Pitney Bowes, Inc. Senior Notes 5.75% due 09/15/17......................... 85,000 86,484 -------- 316,489 -------- Oil Companies-Exploration & Production -- 0.2% Chesapeake Energy Corp. Company Guar. Notes 7.50% due 09/15/13......................... 175,000 180,250 Hilcorp Energy I LP Senior Notes 7.75% due 11/01/15*........................ 50,000 46,875 Sabine Pass LNG LP Sec. Notes 7.50% due 11/30/16......................... 75,000 72,375 -------- 299,500 -------- Oil Companies-Integrated -- 0.1% Hess Corp. Bonds 7.88% due 10/01/29......................... 80,000 94,939 Marathon Oil Corp. Senior Notes 5.90% due 03/15/18......................... 40,000 40,208 -------- 135,147 -------- Oil Refining & Marketing -- 0.1% The Premcor Refining Group, Inc. Company Guar. Notes 6.75% due 05/01/14......................... 180,000 188,935 -------- Oil-Field Services -- 0.0% Allis-Chalmers Energy, Inc. Company Guar. Notes 9.00% due 01/15/14......................... 15,000 13,650 -------- Paper & Related Products -- 0.1% Bowater, Inc. Senior Notes 6.50% due 06/15/13......................... 75,000 49,500 Georgia-Pacific Corp. Company Guar. Notes 7.00% due 01/15/15*........................ 30,000 28,125 Georgia-Pacific Corp. Company Guar. Notes 7.13% due 01/15/17*........................ 10,000 9,250 -------- 86,875 --------
Market Principal Value Security Description Amount (Note 3) ---------------------------------------------------------- Physicians Practice Management -- 0.0% US Oncology, Inc. Senior Sub. Notes 10.75% due 08/15/14.................. $ 55,000 $ 54,313 -------- Pipelines -- 0.4% CenterPoint Energy Resources Corp. Senior Notes 7.75% due 02/15/11................... 130,000 140,443 Copano Energy LLC Company Guar. Notes 8.13% due 03/01/16................... 95,000 98,325 Duke Energy Field Services LLC Senior Notes 6.88% due 02/01/11................... 60,000 63,383 Dynegy-Roseton Danskammer Pass Through Certs. Series B 7.67% due 11/08/16................... 45,000 45,085 Panhandle Eastern Pipeline Co. Senior Notes 6.20% due 11/01/17................... 56,000 54,890 Williams Cos., Inc. Senior Notes 7.88% due 09/01/21................... 90,000 97,538 -------- 499,664 -------- Publishing-Periodicals -- 0.0% Dex Media West LLC Senior Notes 8.50% due 08/15/10................... 20,000 19,450 The Reader's Digest Association, Inc. Senior Sub. Notes 9.00% due 02/15/17*.................. 25,000 16,688 -------- 36,138 -------- Quarrying -- 0.1% Vulcan Materials Co. Senior Notes 5.60% due 11/30/12................... 90,000 91,429 -------- Radio -- 0.1% Chancellor Media Corp. Company Guar. Notes 8.00% due 11/01/08................... 182,000 187,833 -------- Real Estate Investment Trusts -- 0.3% AvalonBay Communities, Inc. Senior Notes 5.75% due 09/15/16................... 110,000 99,383 Health Care Property Investors, Inc. Senior Notes 5.65% due 12/15/13................... 100,000 89,207 Liberty Property LP Senior Notes 5.63% due 10/01/17................... 45,000 42,738 PPF Funding, Inc. Bonds 5.35% due 04/15/12*.................. 60,000 58,697
48 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market Principal Value Security Description Amount (Note 3) ------------------------------------------------------------ CORPORATE BONDS & NOTES (continued) Real Estate Investment Trusts (continued) Reckson Operating Partnership LP Senior Notes 6.00% due 03/31/16.................... $ 35,000 $ 29,941 Simon Property Group LP Senior Notes 5.38% due 08/28/08.................... 40,000 40,038 Vornado Realty LP Senior Notes 4.50% due 08/15/09.................... 60,000 58,764 -------- 418,768 -------- Recycling -- 0.0% Aleris International, Inc. Company Guar. Notes 9.00% due 12/15/14.................... 45,000 32,850 Aleris International, Inc. Company Guar. Notes 10.00% due 12/15/16................... 20,000 12,700 -------- 45,550 -------- Rental Auto/Equipment -- 0.2% ERAC USA Finance Co. Company Guar. Notes 7.00% due 10/15/37*................... 90,000 73,986 ERAC USA Finance Co. Company Guar. Notes 7.35% due 06/15/08*................... 150,000 151,057 United Rentals North America, Inc. Senior Sub. Notes 7.75% due 11/15/13.................... 40,000 32,600 -------- 257,643 -------- Research & Development -- 0.0% Alion Science and Technology Corp. Company Guar. Notes 10.25% due 02/01/15................... 55,000 31,075 -------- Retail-Discount -- 0.1% Target Corp. Senior Notes 7.00% due 01/15/38.................... 72,000 74,006 -------- Retail-Drug Store -- 0.2% CVS Caremark Corp. Senior Notes 6.25% due 06/01/27.................... 54,000 53,815 CVS Caremark Corp. Pass Through Certs. 6.94% due 01/10/30*................... 58,830 62,204 CVS Lease Pass Through Trust Pass Through Certs. 6.04% due 12/10/28*................... 116,632 111,109 -------- 227,128 -------- Retail-Restaurants -- 0.1% McDonald's Corp. Senior Notes 6.30% due 03/01/38.................... 70,000 71,617
Market Principal Value Security Description Amount (Note 3) -------------------------------------------------------------- Retail-Restaurants (continued) NPC International, Inc. Company Guar. Notes 9.50% due 05/01/14....................... $ 45,000 $ 40,725 -------- 112,342 -------- Savings & Loans/Thrifts -- 0.5% Independence Community Bank Corp. Sub. Notes 3.50% due 06/20/13(4).................... 64,000 63,616 Sovereign Bancorp, Inc. Senior Notes 4.80% due 09/01/10....................... 206,000 203,798 Washington Mutual Bank Sub. Notes 5.50% due 01/15/13....................... 138,000 109,710 Washington Mutual Preferred Funding III Jr. Sub. Bonds 6.90% due 06/15/12*(4)................... 100,000 56,000 Washington Mutual, Inc. Senior Notes 5.50% due 08/24/11....................... 75,000 64,500 Western Financial Bank Senior Debentures 9.63% due 05/15/12....................... 126,000 133,622 -------- 631,246 -------- Special Purpose Entities -- 0.7% BAE Systems Holdings, Inc. Company Guar. Bonds 5.20% due 08/15/15*...................... 175,000 177,353 Capital One Capital IV Company Guar. Bonds 6.75% due 02/17/32(4).................... 65,000 46,414 Chukchansi Economic Development Authority Senior Notes 8.00% due 11/15/13*...................... 45,000 40,500 Consolidated Communications Illinois/Texas Holdings, Inc. Senior Notes 9.75% due 04/01/12....................... 159,000 166,751 Goldman Sachs Capital III Company Guar. Bonds 3.85% due 09/01/12(1)(7)................. 97,000 61,110 Hawker Beechcraft Acquisition Co. LLC/Hawker Beechcraft Notes Co. Senior Notes 8.88% due 04/01/15....................... 10,000 10,225 Hawker Beechcraft Acquisition Co. LLC/Hawker Beechcraft Notes Co. Senior Sub. Notes 9.75% due 04/01/17....................... 25,000 24,875 Hexion US Finance Corp. Company Guar. Notes 9.75% due 11/15/14....................... 20,000 21,450 KAR Holdings, Inc. Senior Notes 7.24% due 05/01/14(1).................... 25,000 20,625
49 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market Principal Value Security Description Amount (Note 3) ------------------------------------------------------- CORPORATE BONDS & NOTES (continued) Special Purpose Entities (continued) Norbord Delaware GP I Company Guar. Notes 6.45% due 02/15/17*............... $ 49,000 $ 39,371 Pricoa Global Funding I Notes 5.30% due 09/27/13*............... 110,000 116,342 Principal Life Global Funding I Sec. Notes 5.25% due 01/15/13*............... 100,000 101,947 Snoqualmie Entertainment Authority Sec. Notes 9.13% due 02/01/15*............... 45,000 38,475 -------- 865,438 -------- Steel-Producers -- 0.2% International Steel Group, Inc. Senior Notes 6.50% due 04/15/14................ 130,000 133,844 Reliance Steel & Aluminum Co. Company Guar. Notes 6.85% due 11/15/36................ 60,000 57,184 Ryerson, Inc. Senior Sec. Notes 10.61% due 11/01/14*(1)........... 50,000 45,000 United States Steel Corp. Senior Notes 7.00% due 02/01/18................ 45,000 43,956 -------- 279,984 -------- Telecom Services -- 0.2% Bellsouth Telecommunications, Inc. Debentures 7.00% due 12/01/95................ 174,000 170,739 Qwest Corp. Senior Notes 7.50% due 10/01/14................ 65,000 63,375 -------- 234,114 -------- Telephone-Integrated -- 0.5% AT&T Corp. Senior Notes 7.30% due 11/15/11................ 63,000 68,237 BellSouth Corp. Senior Notes 6.00% due 10/15/11................ 200,000 209,244 Cincinnati Bell, Inc. Company Guar. Notes 7.00% due 02/15/15................ 25,000 22,625 Citizens Communications Co. Senior Notes 7.13% due 03/15/19................ 25,000 21,875 GTE Northwest, Inc. Debentures 5.55% due 10/15/08................ 70,000 70,611 Pacific Bell Telephone Co. Company Guar. Notes 7.13% due 03/15/26................ 80,000 82,811
Market Principal Value Security Description Amount (Note 3) ------------------------------------------------------------- Telephone-Integrated (continued) Sprint Capital Corp. Company Guar. Notes 6.90% due 05/01/19.................. $ 120,000 $ 94,500 Verizon New York, Inc. Debentures 6.88% due 04/01/12.................. 102,000 107,274 ----------- 677,177 ----------- Television -- 0.0% ION Media Networks, Inc. Sec. Senior Notes 10.51% due 01/15/13*(1)............. 55,000 41,250 Young Broadcasting, Inc. Company Guar. Notes 10.00% due 03/01/11................. 25,000 15,688 ----------- 56,938 ----------- Transport-Air Freight -- 0.3% Atlas Air, Inc. Pass Through Certs. Series 1991-1, Class B 7.63% due 01/02/15.................. 366,911 403,602 ----------- Transport-Rail -- 0.1% BNSF Funding Trust I Company Guar. Bonds 6.61% due 01/15/26(4)............... 130,000 118,087 CSX Corp. Senior Notes 6.25% due 03/15/18.................. 59,000 58,226 ----------- 176,313 ----------- Transport-Services -- 0.1% PHI, Inc. Company Guar. Notes 7.13% due 04/15/13.................. 75,000 68,813 ----------- Travel Service -- 0.0% Travelport LLC Company Guar. Notes 7.70% due 09/01/14(1)............... 25,000 20,250 ----------- Total Corporate Bonds & Notes (cost $16,804,153).................. 16,792,433 ----------- FOREIGN CORPORATE BONDS & NOTES -- 3.2% Banks-Commercial -- 0.2% Banco Continental de Panama SA Notes 6.63% due 12/01/10*................. 35,000 35,700 Barclays Bank PLC Jr. Sub. Notes 7.43% due 12/15/17*(4).............. 70,000 63,286 BOI Capital Funding Bank Guar. Bonds 6.11% due 02/04/16*(4).............. 50,000 38,057 Caisse Nationale des Caisses d'Epargne et de Prevoyance Notes 3.86% due 12/30/09(1)(7)............ 109,000 63,833
50 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market Principal Value Security Description Amount (Note 3) --------------------------------------------------------------- FOREIGN CORPORATE BONDS & NOTES (continued) Banks-Commercial (continued) Royal Bank of Scotland Group PLC Jr. Sub. Notes 6.99% due 10/05/17*(4)................... $ 100,000 $ 84,890 -------- 285,766 -------- Banks-Money Center -- 0.1% Mizuho Financial Group Cayman, Ltd. Bank Guar. Bonds 8.38% due 04/27/09(7).................... 145,000 144,162 -------- Beverages-Wine/Spirits -- 0.1% Diageo Capital PLC Company Guar. Notes 5.75% due 10/23/17....................... 40,000 40,965 Diageo Finance BV Company Guar. Notes 3.88% due 04/01/11....................... 125,000 125,437 -------- 166,402 -------- Broadcast Services/Program -- 0.1% Grupo Televisa SA Senior Notes 6.63% due 03/18/25....................... 139,000 138,882 -------- Cellular Telecom -- 0.1% America Movil SAB de CV Company Guar. Bonds 5.63% due 11/15/17....................... 70,000 69,203 -------- Cruise Lines -- 0.1% Royal Caribbean Cruises, Ltd. Senior Notes 7.00% due 06/15/13....................... 70,000 65,459 -------- Diversified Manufacturing Operations -- 0.1% Bombardier, Inc. Senior Notes 8.00% due 11/15/14*...................... 25,000 25,750 Siemens Financieringsmaatschappij NV Company Guar. Bonds 6.13% due 08/17/26*...................... 11,000 10,741 Tyco International Group SA Company Guar. Notes 6.00% due 11/15/13....................... 120,000 120,500 -------- 156,991 -------- Diversified Operations -- 0.1% Hutchison Whampoa Finance, Ltd. Company Guar. Notes 7.50% due 08/01/27*...................... 140,000 140,219 -------- Electric-Integrated -- 0.1% Empresa Nacional de Electricidad SA Bonds 7.33% due 02/01/37....................... 84,000 86,788 Enel Finance International SA Company Guar. Notes 6.25% due 09/15/17*...................... 30,000 31,125 -------- 117,913 --------
Market Principal Value Security Description Amount (Note 3) ----------------------------------------------------------------- Electronic Components-Misc. -- 0.0% NXP BV/NXP Funding LLC Company Guar. Notes 9.50% due 10/15/15......................... $ 10,000 $ 8,225 -------- Food-Retail -- 0.1% Delhaize Group SA Senior Notes 6.50% due 06/15/17......................... 90,000 92,943 -------- Gas-Distribution -- 0.1% Nakilat, Inc. Sec. Notes 6.07% due 12/31/33*........................ 85,000 77,240 -------- Insurance-Multi-line -- 0.3% Aegon NV Sub. Bonds 4.21% due 07/15/14(1)(7)................... 156,000 87,516 AXA SA Sub. Notes 6.38% due 12/14/36*(4)..................... 85,000 68,516 ING Groep NV Bonds 5.78% due 12/08/15(4)...................... 225,000 191,694 -------- 347,726 -------- Investment Companies -- 0.0% Xstrata Finance Canada, Ltd. Company Guar. Notes 6.90% due 11/15/37*........................ 40,000 38,662 -------- Medical-Drugs -- 0.1% Angiotech Pharmaceuticals, Inc. Company Guar. Notes 6.83% due 12/01/13(1)...................... 15,000 11,475 Angiotech Pharmaceuticals, Inc. Company Guar. Notes 7.75% due 04/01/14......................... 55,000 33,550 AstraZeneca PLC Senior Notes 5.90% due 09/15/17......................... 35,000 36,997 Elan Finance PLC Company Guar. Bonds 7.75% due 11/15/11......................... 40,000 37,200 -------- 119,222 -------- Metal-Aluminum -- 0.1% Alcan, Inc. Notes 6.13% due 12/15/33......................... 75,000 71,680 -------- Metal-Diversified -- 0.1% Inco, Ltd. Bonds 7.20% due 09/15/32......................... 71,000 70,352 -------- Oil Companies-Exploration & Production -- 0.0% OPTI Canada, Inc. Senior Sec. Notes 7.88% due 12/15/14......................... 50,000 48,875 --------
51 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market Principal Value Security Description Amount (Note 3) --------------------------------------------------------------- FOREIGN CORPORATE BONDS & NOTES (continued) Oil-Field Services -- 0.0% Weatherford International, Ltd. Senior Notes 7.00% due 03/15/38....................... $ 30,000 $ 30,455 -------- Paper & Related Products -- 0.0% Abitibi-Consolidated, Inc. Notes 8.55% due 08/01/10....................... 45,000 25,875 -------- Pipelines -- 0.1% Enbridge, Inc. Bonds 5.80% due 06/15/14....................... 183,000 185,547 -------- Printing-Commercial -- 0.0% Quebecor World Capital Corp. Senior Notes 8.75% due 03/15/16*+(8)(9)............... 30,000 14,250 -------- Real Estate Operations & Development -- 0.1% Brascan Corp. Notes 8.13% due 12/15/08....................... 157,000 161,211 -------- Satellite Telecom -- 0.0% Intelsat Intermediate Holding Co., Ltd. Senior Disc. Notes 9.25% due 02/01/15(2).................... 20,000 17,000 -------- Special Purpose Entities -- 0.6% Aries Vermoegensverwaltungs GmbH Bonds 9.60% due 10/25/14....................... 250,000 327,580 Hybrid Capital Funding I LP Sub. Notes 8.00% due 06/30/11(7).................... 286,000 194,480 Rio Tinto Finance USA, Ltd. Notes 2.63% due 09/30/08....................... 55,000 54,605 SMFG Preferred Capital, Ltd. Sub. Bonds 6.08% due 01/25/17*(4)................... 121,000 94,864 SovRisc BV Notes 4.63% due 10/31/08*...................... 133,000 135,074 -------- 806,603 -------- Telecom Services -- 0.2% TELUS Corp. Notes 8.00% due 06/01/11....................... 238,000 258,846 -------- Telephone-Integrated -- 0.2% British Telecommunications PLC Senior Notes 5.15% due 01/15/13....................... 59,000 58,142 British Telecommunications PLC Bonds 8.63% due 12/15/30....................... 71,000 88,180
Market Principal Value Security Description Amount (Note 3) ---------------------------------------------------------- Telephone-Integrated (continued) Telecom Italia Capital SA Company Guar. Bonds 6.20% due 07/18/11................ $ 115,000 $ 114,086 ---------- 260,408 ---------- Transport-Marine -- 0.1% DP World, Ltd. Bonds 6.85% due 07/02/37*............... 121,000 103,185 ---------- Transport-Rail -- 0.1% Canadian National Railway Co. Notes 6.38% due 10/15/11................ 130,000 140,264 ---------- Total Foreign Corporate Bonds & Notes (cost $4,874,914)................. 4,163,566 ---------- FOREIGN GOVERNMENT AGENCIES -- 0.7% Sovereign -- 0.7% Federal Republic of Brazil Bonds 10.50% due 07/14/14............... 205,000 260,350 Republic of Argentina Bonds 3.09% due 08/03/12(1)............. 230,000 122,475 Republic of Argentina Notes 8.28% due 12/31/33................ 35,579 29,175 Republic of Turkey Senior Notes 11.88% due 01/15/30............... 180,000 265,725 Republic of Venezuela Notes 8.50% due 10/08/14................ 100,000 92,750 Republic of Venezuela Bonds 9.25% due 09/15/27................ 100,000 95,000 ---------- Total Foreign Government Agencies (cost $868,543)................... 865,475 ---------- U.S. GOVERNMENT AGENCIES -- 10.4% Federal Home Loan Mtg. Corp. -- 6.2% 4.50% due 01/15/34................. 620,000 603,954 5.00% due 11/15/28................. 304,000 310,867 5.00% due 09/15/31................. 390,000 393,599 5.00% due 05/01/34................. 792,412 786,370 5.00% due 06/01/34................. 755,318 749,560 5.00% due 10/15/34................. 615,000 598,030 5.00% due 07/01/35................. 102,194 101,350 5.00% due 10/01/35................. 544,549 540,049 5.00% due 11/01/35................. 344,390 341,544 5.00% due 11/01/36................. 32,215 31,932 5.50% due 07/01/34................. 486,879 492,865 5.81% due 01/01/37(1).............. 652,397 661,397 5.96% due 10/01/36(1).............. 565,806 576,198 6.00% due 12/01/33................. 88,586 91,400 6.00% due 10/01/37................. 374,914 384,804 6.50% due 03/01/36................. 261,142 271,124
52 SunAmerica Balanced Assets Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market Principal Value Security Description Amount (Note 3) --------------------------------------------------------------- U.S. GOVERNMENT AGENCIES (continued) Federal Home Loan Mtg. Corp. (continued) 6.50% due 05/01/36................... $ 8,102 $ 8,411 7.00% due 04/01/32................... 143,171 151,571 Federal Home Loan Mtg. Corp. REMIC Series 3312, Class LB 5.50% due 11/15/25(3)................ 650,000 676,867 Series 3349, Class HB 5.50 due 06/15/31(3)................. 232,000 238,362 ------------ 8,010,254 ------------ Federal National Mtg. Assoc. -- 3.5% 5.00% due 08/01/18.................... 157,456 159,688 5.00% due 11/25/30.................... 385,000 387,788 5.00% due 10/01/35.................... 424,222 420,493 5.00% due 06/01/37.................... 332,629 329,481 5.00% due 07/01/37.................... 126,789 125,589 5.50% due 11/01/22.................... 273,555 279,489 5.50% due 12/01/33.................... 894,561 905,969 5.50% due 02/01/36(1)................. 290,513 296,514 5.50% due 11/01/36.................... 273,735 276,664 6.00% due 12/01/33.................... 81,070 83,469 6.00% due 11/01/36.................... 575,900 584,713 6.50% due 09/01/32.................... 256,136 267,013 6.50% due 07/01/36.................... 108,723 112,704 6.50% due 10/01/37.................... 354,222 367,167 ------------ 4,596,741 ------------ Government National Mtg. Assoc. -- 0.7% 5.50% due 05/15/33.................... 440,990 450,809 5.50% due 12/15/33.................... 331,048 338,419 7.50% due 01/15/32.................... 117,870 126,990 ------------ 916,218 ------------ Total U.S. Government Agencies (cost $13,374,947)................... 13,523,213 ------------ U.S. GOVERNMENT TREASURIES -- 1.8% United States Treasury Bonds -- 0.1% 4.75% due 02/15/37................... 110,000 118,310 ------------ United States Treasury Notes -- 1.7% 2.75% due 02/28/13................... 45,000 45,619 2.88% due 01/31/13................... 696,000 709,431 3.50% due 02/15/18................... 97,000 97,561 4.25% due 11/15/17................... 450,000 480,129 4.50% due 02/15/16................... 101,000 111,179 4.88% due 06/30/09................... 700,000 728,437 ------------ 2,172,356 ------------ Total U.S. Government Treasuries (cost $2,281,906).................... 2,290,666 ------------ Total Long-Term Investment Securities (cost $119,896,614).................. 120,632,909 ------------
Market Principal Value Security Description Amount (Note 3) ----------------------------------------------------------------------- REPURCHASE AGREEMENT -- 4.9% Agreement with State Street Bank & Trust Co., bearing interest at 0.50%, dated 03/31/08, to be repurchased 04/01/08 in the amount of $1,036,014 and collateralized by $1,015,000 of United States Treasury Notes, bearing interest at 5.00% due 07/31/08 and having an approximate value of $1,056,869............ $ 1,036,000 $ 1,036,000 State Street Bank & Trust Co. Joint Repurchase Agreement(12)................... 5,342,000 5,342,000 ------------ Total Repurchase Agreements (cost $6,378,000).......................... 6,378,000 6,378,000 ------------ TOTAL INVESTMENTS (cost $126,274,614)(13).................... 97.9% 127,010,909 Other assets less liabilities................. 2.1 2,668,719 ----------- ------------ NET ASSETS -- 100.0% $129,679,628 =========== ============
-------- + Non-income producing security * Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. The Fund has no right to demand registration of these securities. At March 31, 2008, the aggregate value of these securities was $4,075,860 representing 3.1% of net assets. Unless otherwise indicated these securities are not considered to be illiquid. (1) Floating rate security where the rate fluctuates. The rate moves up or down at each reset date. The rate reflected is as of March 31, 2008. (2) "Step-up" security where the rate increases ("steps-up") at a predetermined rate. Rate shown reflects the increased rate. (3) Collateralized Mortgage Obligation (4) Variable Rate Security -- the rate reflected is as of March 31, 2008, maturity date reflects next reset date. (5) Commercial Mortgage Backed Security (6) Variable Rate Security -- the rate reflected is as of March 31, 2008, maturity date reflects the stated maturity date. . (7) Perpetual maturity -- maturity date reflects the next call date. (8) Company has filed Chapter 11 bankruptcy protection. (9) Bond in default (10) Illiquid Security (11) Fair valued security; see Note 3. (12) See Note 3 for details of Joint Repurchase Agreement. (13) See Note 7 for cost of investment on a tax basis. (14) To the extent permitted by the Statement of Additional information, the Balanced Assets Fund may invest in restricted securities. The Fund has no right to demand registration of these securities. The securities are valued pursuant to Note 3. Restricted securities held by a fund may not be sold except in exempt transactions or in a public offering registered under the securities Act of 1933. The risk of investing in such securities is generally greater than the risk of investing in the securities of widely held, publicly traded companies. Lack of a secondary market and resale restrictions may result in the inability of a Fund to sell a security at a fair price and may substantially delay the sale of the security. In addition, these securities may exhibit greater price volatility than securities for which secondary markets exist. As of March 31, 2008, the Balanced Assets Fund held the following restricted securities:
Market Value % of Acquisition Principal Acquisition Market Per Par Net Name Date Amount Cost Value Amount Assets ---- ----------- --------- ----------- ------ ------- ------ Southern Energy 7.90% due 7/15/2009..... 01/10/2006 150,000 $0 $0 $0 0.00%
ADR --American Depository Receipt REMIC --Real Estate Mortgage Investments Conducts See Notes to Financial Statements 53 SunAmerica International Equity Fund PORTFOLIO PROFILE -- March 31, 2008 -- (unaudited) Industry Allocation* Banks-Commercial.................................. 10.3% Oil Companies-Integrated.......................... 5.8 Steel-Producers................................... 3.7 Cellular Telecom.................................. 3.6 Electric-Integrated............................... 3.6 Chemicals-Diversified............................. 3.6 Agricultural Chemicals............................ 3.4 Insurance-Multi-line.............................. 3.4 Medical-Drugs..................................... 3.3 Food-Misc......................................... 3.0 Medical Products.................................. 2.9 Food-Retail....................................... 2.8 Machinery-General Industrial...................... 2.8 Diversified Minerals.............................. 2.7 Telephone-Integrated.............................. 2.5 Coal.............................................. 2.4 Building & Construction-Misc...................... 2.1 Index Fund........................................ 2.0 Building-Heavy Construction....................... 2.0 Retail-Apparel/Shoe............................... 1.8 Oil-Field Services................................ 1.6 Dialysis Centers.................................. 1.5 Electric Products-Misc............................ 1.5 Medical-Generic Drugs............................. 1.3 Transport-Marine.................................. 1.3 Medical-Wholesale Drug Distribution............... 1.3 Import/Export..................................... 1.2 Tobacco........................................... 1.2 Insurance-Reinsurance............................. 1.2 Diversified Financial Services.................... 1.2 Miscellaneous Manufacturing....................... 1.1 Gas-Distribution.................................. 1.1 Engineering/R&D Services.......................... 1.1 Audio/Video Products.............................. 1.1 Electronic Components-Misc........................ 1.1 Computer Services................................. 1.1 Insurance-Life/Health............................. 1.1 Satellite Telecom................................. 1.0 Insurance-Property/Casualty....................... 1.0 Enterprise Software/Service....................... 1.0 Machinery-Material Handling....................... 1.0 Toys.............................................. 0.9 Metal-Diversified................................. 0.7 Retail-Jewelry.................................... 0.7 Auto-Cars/Light Trucks............................ 0.6 Repurchase Agreement.............................. 0.6 Non-Ferrous Metals................................ 0.6 Telecom Services.................................. 0.6 Real Estate Operations & Development.............. 0.6 Metal Processors & Fabrication.................... 0.6 Paper & Related Products.......................... 0.4 ---- 99.0% ====
-------- * Calculated as a percentage of net assets Country Allocation* United Kingdom.................................... 14.3% Japan............................................. 13.7 Germany........................................... 12.0 Switzerland....................................... 5.9 France............................................ 4.7 Norway............................................ 4.5 Spain............................................. 4.3 Australia......................................... 4.2 South Korea....................................... 3.5 Italy............................................. 3.0 Hong Kong......................................... 2.9 Greece............................................ 2.8 Israel............................................ 2.5 Mexico............................................ 2.4 South Africa...................................... 2.1 Brazil............................................ 2.1 United States..................................... 1.9 Sweden............................................ 1.8 Luxembourg........................................ 1.4 Canada............................................ 1.4 Taiwan............................................ 1.1 Thailand.......................................... 1.1 Russia............................................ 0.9 China............................................. 0.8 Egypt............................................. 0.8 Bermuda........................................... 0.6 India............................................. 0.6 Cayman Islands.................................... 0.6 Indonesia......................................... 0.6 Singapore......................................... 0.5 ---- 99.0% ====
54 SunAmerica International Equity Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited)
Market Value Security Description Shares (Note 3)(1) ------------------------------------------------------------------ COMMON STOCK -- 96.4% Australia -- 4.2% BHP Billiton, Ltd............................ 32,500 $ 1,067,800 Boart Longyear Group......................... 738,600 1,239,706 CSL, Ltd..................................... 28,600 964,736 Woolworths, Ltd.............................. 47,680 1,266,897 ----------- 4,539,139 ----------- Bermuda -- 0.6% Nine Dragons Paper Holdings, Ltd............. 461,000 377,968 Peace Mark Holdings, Ltd..................... 294,000 264,881 ----------- 642,849 ----------- Brazil -- 2.1% Banco Do Brasil SA........................... 39,700 522,863 Petroleo Brasileiro SA ADR................... 16,700 1,705,237 ----------- 2,228,100 ----------- Canada -- 1.4% Barrick Gold Corp............................ 15,100 660,225 Suncor Energy, Inc........................... 8,500 821,555 ----------- 1,481,780 ----------- Cayman Islands -- 0.6% Hengan International Group Co., Ltd.......... 184,000 630,868 ----------- China -- 0.8% China Coal Energy Co.+....................... 498,200 877,625 ----------- Egypt -- 0.8% Orascom Construction Industries GDR.......... 5,500 823,954 ----------- France -- 4.1% Alstom....................................... 7,000 1,520,595 Suez SA...................................... 28,600 1,879,027 Vinci SA..................................... 15,200 1,100,720 ----------- 4,500,342 ----------- Germany -- 12.0% Allianz SE................................... 6,400 1,268,999 Bayer AG..................................... 33,300 2,667,254 E.ON AG...................................... 10,800 1,998,418 Fresenius Medical Care AG.................... 33,100 1,664,529 MAN AG....................................... 11,200 1,486,295 Merck KGaA................................... 11,200 1,380,833 Muenchener Rueckversicherungs-Gesellschaft AG.......................................... 6,600 1,290,169 Stada Arzneimittel AG........................ 16,600 1,208,780 ----------- 12,965,277 ----------- Greece -- 2.8% Alapis Holding Industrial and Commercial SA+. 394,700 1,356,253 National Bank of Greece SA................... 31,759 1,686,158 ----------- 3,042,411 ----------- Hong Kong -- 2.9% Cheung Kong Holdings, Ltd.................... 43,945 632,236 China Mobile Ltd ADR......................... 17,400 1,305,174 Hong Kong & China Gas Co., Ltd............... 413,500 1,249,198 Peregrine Investments Holdings, Ltd.+(2)(3).. 91,000 0 ----------- 3,186,608 -----------
Market Value Security Description Shares (Note 3)(1) ----------------------------------------------------------------- India -- 0.6% Bharti Airtel, Ltd.+..................... 31,200 $ 638,274 ----------- Indonesia -- 0.5% PT Bakrie and Brothers Tbk+.............. 10,059,500 561,563 ----------- Israel -- 2.5% Israel Chemicals, Ltd.................... 86,300 1,207,596 Teva Pharmaceutical Industries, Ltd. ADR. 31,500 1,454,985 ----------- 2,662,581 ----------- Italy -- 3.0% Saipem SpA............................... 44,000 1,779,153 UniCredito Italiano SpA.................. 225,100 1,504,784 ----------- 3,283,937 ----------- Japan -- 13.7% Aioi Insurance Co., Ltd.................. 187,000 1,052,574 Japan Steel Works, Ltd................... 60,000 1,042,801 Japan Tobacco, Inc....................... 266 1,333,704 JFE Holdings, Inc........................ 19,300 869,772 Kawasaki Kisen Kaisha, Ltd............... 92,000 911,111 Marubeni Corp............................ 184,000 1,367,455 Matsushita Electric Industrial Co., Ltd.. 57,000 1,238,509 Mitsui Matsushima Co., Ltd............... 399,000 866,924 Nihon Nohyaku Co., Ltd................... 106,000 991,430 Nintendo Co., Ltd........................ 1,800 932,466 Sumitomo Metal Mining Co., Ltd........... 54,000 1,012,198 Sumitomo Mitsui Financial Group, Inc..... 128 845,145 Tokyo Steel Manufacturing Co., Ltd....... 53,700 740,992 Toyo Tanso Co., Ltd...................... 10,500 985,897 Toyota Motor Corp........................ 13,900 700,517 ----------- 14,891,495 ----------- Luxembourg -- 1.4% ArcelorMittal............................ 18,700 1,531,247 ----------- Mexico -- 2.4% Axtel SAB de CV+......................... 748,200 1,609,901 Empresas ICA SAB de CV+.................. 173,400 1,034,429 ----------- 2,644,330 ----------- Norway -- 4.5% DnB NOR ASA.............................. 116,900 1,781,687 Statoil ASA.............................. 44,000 1,323,044 Yara International ASA................... 30,500 1,772,659 ----------- 4,877,390 ----------- Russia -- 0.9% Uralkali+................................ 23,800 975,587 Uralkali GDR+............................ 216 8,856 ----------- 984,443 ----------- Singapore -- 0.5% Cosco Corp. Singapore, Ltd............... 192,700 522,245 ----------- South Africa -- 2.1% Exxaro Resources, Ltd.................... 66,200 903,562 Murray & Roberts Holdings, Ltd........... 120,300 1,417,263 ----------- 2,320,825 -----------
55 SunAmerica International Equity Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market Value Security Description Shares (Note 3)(1) ------------------------------------------------------------------ COMMON STOCK (continued) South Korea -- 3.5% Hyundai Steel Co.+....................... 12,100 $ 848,629 LG Electronics, Inc...................... 12,700 1,632,170 Shinhan Financial Group Co., Ltd......... 24,400 1,289,266 ------------ 3,770,065 ------------ Spain -- 4.3% Banco Santander Central Hispano SA....... 114,100 2,273,307 Indra Sistemas SA........................ 42,100 1,212,327 Telefonica SA............................ 39,300 1,129,216 ------------ 4,614,850 ------------ Sweden -- 1.8% Hennes & Mauritz AB, Class B............. 31,500 1,937,947 ------------ Switzerland -- 5.9% Compagnie Financiere Richemont SA........ 12,500 701,960 Nestle SA................................ 6,500 3,249,430 Zurich Financial Services AG............. 7,600 2,395,609 ------------ 6,346,999 ------------ Taiwan -- 1.1% Hon Hai Precision Industry Co., Ltd. GDR. 108,000 1,215,000 ------------ Thailand -- 1.1% Bangkok Bank PCL......................... 276,000 1,187,225 ------------ United Kingdom -- 14.3% Autonomy Corp PLC+....................... 57,311 1,044,530 BP PLC................................... 241,900 2,449,319 HSBC Holdings PLC........................ 80,000 1,317,593 Inmarsat PLC............................. 123,700 1,090,457 Prudential PLC........................... 87,300 1,152,764 Rio Tinto PLC............................ 7,300 757,938 Smith & Nephew PLC....................... 191,612 2,534,251 Tesco PLC................................ 231,700 1,750,155 Vodafone Group PLC....................... 880,500 2,636,530 Xstrata PLC.............................. 11,700 819,316 ------------ 15,552,853 ------------ United States -- 0.0% SoftBrands, Inc.+........................ 40 41 ------------ Total Common Stock (cost $100,610,184)..................... 104,462,263 ------------ EXCHANGE TRADED FUNDS -- 1.9% United States -- 1.3% iShares MSCI Canada Index Fund........... 46,700 1,415,010 France -- 0.6% streetTRACKS MSCI Europe+................ 3,900 729,365 ------------ Total Exchange Traded Funds (cost $2,101,421)....................... 2,144,375 ------------ RIGHTS+ -- 0.1% Indonesia -- 0.1% PT Bakrie and Brothers Tbk Expires 04/25/08 (cost $0)............................... 59,854,025 65,023 ------------ Total Long-Term Investment Securities (cost $102,711,605)..................... 106,671,661 ------------
Market Principal Value Security Description Amount (Note 3)(1) ------------------------------------------------------------------------ REPURCHASE AGREEMENT -- 0.6% Agreement with State Street Bank & Trust Co., bearing interest at 0.50%, dated 03/31/08, to be repurchased 04/01/08 in the amount of $681,009 and collateralized by $600,000 of United States Treasury Bonds bearing interest at 5.38% due 02/15/31 and having an approximate value of $694,853 (cost $681,000)............................... $ 681,000 $ 681,000 ------------ TOTAL INVESTMENTS (cost $103,392,605)(4)........................ 99.0% 107,352,661 Other assets less liabilities.................... 1.0 1,043,892 --------- ------------ NET ASSETS -- 100.0% $108,396,553 ========= ============
-------- + Non-income producing security (1) A substantial number of the Fund's holdings were valued using the fair value procedures at March 31, 2008. At March 31, 2008, the aggregate value of these securities was $97,767,817 representing 89.8% of net assets. See Note 3 regarding fair value pricing procedures for foreign equity securities. (2) Fair valued security. See Note 3. (3) Illiquid security (4) See Note 7 for cost of investments on a tax basis. ADR --American Depository Receipt GDR --Global Depository Receipt See Notes to Financial Statements 56 SunAmerica Value Fund PORTFOLIO PROFILE -- March 31, 2008 -- (unaudited) Industry Allocation* Oil Companies-Integrated.......................... 12.4% Repurchase Agreement.............................. 7.8 Finance-Investment Banker/Broker.................. 7.1 Electric-Integrated............................... 6.0 Diversified Manufacturing Operations.............. 5.7 Telephone-Integrated.............................. 5.4 Aerospace/Defense................................. 5.2 Medical-Drugs..................................... 5.0 Insurance-Multi-line.............................. 4.2 Food-Misc......................................... 4.2 Investment Management/Advisor Services............ 4.1 Oil-Field Services................................ 3.2 Banks-Super Regional.............................. 2.8 Tobacco........................................... 2.3 Cosmetics & Toiletries............................ 2.3 Brewery........................................... 2.1 Multimedia........................................ 2.0 Banks-Fiduciary................................... 2.0 Medical Products.................................. 2.0 Non-Hazardous Waste Disposal...................... 1.8 Insurance-Property/Casualty....................... 1.8 Chemicals-Diversified............................. 1.4 Metal-Aluminum.................................... 1.3 Retail-Apparel/Shoe............................... 1.3 Metal-Diversified................................. 1.0 ---- 94.4% ====
-------- * Calculated as a percentage of net assets 57 SunAmerica Value Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited)
Market Value Security Description Shares (Note 3) ------------------------------------------------------------------ COMMON STOCK -- 86.6% Aerospace/Defense -- 5.2% Boeing Co................................... 45,400 $ 3,376,398 General Dynamics Corp....................... 31,600 2,634,492 Raytheon Co................................. 44,000 2,842,840 ----------- 8,853,730 ----------- Banks-Fiduciary -- 2.0% The Bank of New York Mellon Corp............ 80,083 3,341,864 ----------- Banks-Super Regional -- 2.8% Bank of America Corp........................ 125,900 4,772,869 ----------- Brewery -- 2.1% Anheuser-Busch Cos., Inc.................... 75,200 3,568,240 ----------- Chemicals-Diversified -- 1.4% E.I. du Pont de Nemours & Co................ 50,100 2,342,676 ----------- Cosmetics & Toiletries -- 2.3% Procter & Gamble Co......................... 55,000 3,853,850 ----------- Diversified Manufacturing Operations -- 5.7% 3M Co.+..................................... 37,800 2,991,870 General Electric Co......................... 181,800 6,728,418 ----------- 9,720,288 ----------- Electric-Integrated -- 6.0% FPL Group, Inc.............................. 41,500 2,603,710 Public Service Enterprise Group, Inc........ 61,600 2,475,704 Southern Co................................. 73,700 2,624,457 Xcel Energy, Inc............................ 128,200 2,557,590 ----------- 10,261,461 ----------- Finance-Investment Banker/Broker -- 7.1% Citigroup, Inc.............................. 161,100 3,450,762 JPMorgan Chase & Co......................... 121,400 5,214,130 Morgan Stanley.............................. 77,300 3,532,610 ----------- 12,197,502 ----------- Food-Misc. -- 4.2% General Mills, Inc.......................... 56,300 3,371,244 Kraft Foods, Inc., Class A.................. 121,857 3,778,785 ----------- 7,150,029 ----------- Insurance-Multi-line -- 4.2% Hartford Financial Services Group, Inc...... 45,800 3,470,266 MetLife, Inc................................ 61,300 3,693,938 ----------- 7,164,204 ----------- Insurance-Property/Casualty -- 1.8% Chubb Corp.................................. 62,500 3,092,500 ----------- Investment Management/Advisor Services -- 4.1% Ameriprise Financial, Inc................... 65,300 3,385,805 Invesco, Ltd................................ 147,100 3,583,356 ----------- 6,969,161 ----------- Medical Products -- 2.0% Johnson & Johnson........................... 51,400 3,334,318 -----------
Shares/ Market Principal Value Security Description Amount (Note 3) ----------------------------------------------------------------- Medical-Drugs -- 5.0% Abbott Laboratories.................. 46,600 $ 2,569,990 Merck & Co., Inc..................... 59,800 2,269,410 Pfizer, Inc.......................... 178,100 3,727,633 ------------ 8,567,033 ------------ Metal-Aluminum -- 1.3% Alcoa, Inc........................... 61,900 2,232,114 ------------ Metal-Diversified -- 1.0% Freeport-McMoRan Copper & Gold, Inc.. 18,300 1,760,826 ------------ Multimedia -- 2.0% News Corp., Class A.................. 185,800 3,483,750 ------------ Non-Hazardous Waste Disposal -- 1.8% Waste Management, Inc................ 93,100 3,124,436 ------------ Oil Companies-Integrated -- 12.4% Chevron Corp......................... 64,400 5,497,184 ConocoPhillips....................... 68,000 5,182,280 Exxon Mobil Corp..................... 80,900 6,842,522 Marathon Oil Corp.................... 81,400 3,711,840 ------------ 21,233,826 ------------ Oil-Field Services -- 3.2% BJ Services Co....................... 132,400 3,774,724 Global Industries, Ltd.+............. 104,600 1,683,014 ------------ 5,457,738 ------------ Retail-Apparel/Shoe -- 1.3% American Eagle Outfitters, Inc....... 124,600 2,181,746 ------------ Telephone-Integrated -- 5.4% AT&T, Inc............................ 161,450 6,183,535 Verizon Communications, Inc.......... 81,300 2,963,385 ------------ 9,146,920 ------------ Tobacco -- 2.3% Altria Group, Inc.................... 54,000 1,198,800 Philip Morris International, Inc.+... 54,000 2,731,320 ------------ 3,930,120 ------------ Total Long-Term Investment Securities (cost $147,504,468)................. 147,741,201 ------------ REPURCHASE AGREEMENT -- 7.8% State Street Bank & Trust Co. Joint Repurchase Agreement(1) (cost $13,310,000).................. $ 13,310,000 13,310,000 ------------ TOTAL INVESTMENTS (cost $160,814,468)(2).............. 94.4% 161,051,201 Other assets less liabilities.......... 5.6 9,591,319 ------------ ------------ NET ASSETS -- 100.0% $170,642,520 ============ ============
-------- + 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. See Notes to Financial Statements 58 SunAmerica Disciplined Growth Fund PORTFOLIO PROFILE -- March 31, 2008 -- (unaudited) Industry Allocation* Repurchase Agreement.................. 16.4% Food-Misc............................. 7.1 Computers............................. 6.4 Electronic Components-Semiconductors.. 4.9 Aerospace/Defense..................... 4.3 Metal-Diversified..................... 4.2 Agricultural Chemicals................ 3.7 Energy-Alternate Sources.............. 3.3 Medical Products...................... 3.3 Medical-Biomedical/Gene............... 2.7 Oil Companies-Exploration & Production 2.6 Oil-Field Services.................... 2.5 Retail-Drug Store..................... 2.2 Electronic Forms...................... 2.2 Food-Retail........................... 2.1 Retail-Discount....................... 2.1 Retail-Apparel/Shoe................... 2.1 Machinery-Farming..................... 2.1 Medical-Generic Drugs................. 2.1 Beverages-Non-alcoholic............... 2.0 Oil Field Machinery & Equipment....... 1.8 Oil Companies-Integrated.............. 1.8 Advanced Materials.................... 1.7 Tobacco............................... 1.7 Diversified Manufacturing Operations.. 1.6 Banks-Fiduciary....................... 1.5 X-Ray Equipment....................... 1.2 Cosmetics & Toiletries................ 1.1 Metal-Aluminum........................ 1.1 Wireless Equipment.................... 1.1 Engineering/R&D Services.............. 1.1 Finance-Investment Banker/Broker...... 1.1 Transport-Marine...................... 1.0 Metal Processors & Fabrication........ 1.0 Electric-Integrated................... 1.0 Commercial Services-Finance........... 1.0 Steel-Producer........................ 1.0 Multimedia............................ 0.8 Chemicals-Specialty................... 0.6 Diversified Minerals.................. 0.5 Footwear & Related Apparel............ 0.5 Hazardous Waste Disposal.............. 0.5 Casino Services....................... 0.5 Cable TV.............................. 0.3 ----- 103.8% =====
-------- * Calculated as a percentage of net assets 59 SunAmerica Disciplined Growth Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited)
Market Value Security Description Shares (Note 3) -------------------------------------------------------------- COMMON STOCK -- 87.4% Advanced Materials -- 1.7% Hexcel Corp.+............................. 54,000 $1,031,940 ---------- Aerospace/Defense -- 4.3% Boeing Co................................. 10,000 743,700 Raytheon Co............................... 29,800 1,925,378 ---------- 2,669,078 ---------- Agricultural Chemicals -- 3.7% Monsanto Co............................... 6,800 758,200 Potash Corp. of Saskatchewan, Inc......... 10,000 1,552,100 ---------- 2,310,300 ---------- Banks-Fiduciary -- 1.5% The Bank of New York Mellon Corp.......... 22,500 938,925 ---------- Beverages-Non-alcoholic -- 2.0% PepsiCo, Inc.............................. 17,000 1,227,400 ---------- Cable TV -- 0.3% Comcast Corp., Class A.................... 10,700 206,938 ---------- Casino Hotel -- 0.0% MGM Mirage, Inc.+......................... 368 21,627 ---------- Casino Services -- 0.5% Scientific Games Corp., Class A+.......... 15,000 316,650 ---------- Chemicals-Specialty -- 0.6% Arch Chemicals, Inc....................... 9,000 335,340 ---------- Commercial Services-Finance -- 1.0% Visa, Inc., Class A+...................... 10,000 623,600 ---------- Computers -- 6.4% Apple, Inc.+.............................. 13,300 1,908,550 Research In Motion Ltd.+.................. 18,000 2,020,140 ---------- 3,928,690 ---------- Cosmetics & Toiletries -- 1.1% Procter & Gamble Co....................... 10,000 700,700 ---------- Diversified Manufacturing Operations -- 1.6% Harsco Corp............................... 18,000 996,840 ---------- Diversified Minerals -- 0.5% Teck Cominco, Ltd., Class B............... 8,000 327,680 ---------- Electric-Integrated -- 1.0% Duke Energy Corp.......................... 36,000 642,600 ---------- Electronic Components-Semiconductors -- 4.9% Intel Corp................................ 85,000 1,800,300 MEMC Electronic Materials, Inc+........... 8,000 567,200 Texas Instruments, Inc.................... 22,500 636,075 ---------- 3,003,575 ---------- Electronic Forms -- 2.2% Adobe Systems, Inc.+...................... 38,000 1,352,420 ---------- Energy-Alternate Sources -- 3.3% First Solar, Inc.+........................ 3,000 693,420 Sunpower Corp., Class A+.................. 9,700 722,747 Suntech Power Holdings Co., Ltd. ADR+..................................... 16,000 648,960 ---------- 2,065,127 ----------
Market Value Security Description Shares (Note 3) ----------------------------------------------------------------- Engineering/R&D Services -- 1.1% ABB, Ltd. ADR............................... 24,000 $ 646,080 ---------- Finance-Investment Banker/Broker -- 1.1% JP Morgan Chase & Co........................ 15,000 644,250 ---------- Food-Misc. -- 7.1% Cal-Maine Foods, Inc........................ 100,000 3,338,000 Kraft Foods, Inc., Class A.................. 34,000 1,054,340 ---------- 4,392,340 ---------- Food-Retail -- 2.1% Kroger Co................................... 52,000 1,320,800 ---------- Footwear & Related Apparel -- 0.5% Deckers Outdoor Corp.+...................... 3,000 323,460 ---------- Hazardous Waste Disposal -- 0.5% Energy Solutions, Inc....................... 14,000 321,160 ---------- Machinery-Farming -- 2.1% Deere & Co.................................. 16,000 1,287,040 ---------- Medical Products -- 3.3% Baxter International, Inc................... 11,200 647,584 Becton Dickinson & Co....................... 16,000 1,373,600 ---------- 2,021,184 ---------- Medical-Biomedical/Gene -- 2.7% Genzyme Corp.+.............................. 19,300 1,438,622 Sangamo Biosciences, Inc.+.................. 20,000 203,200 ---------- 1,641,822 ---------- Medical-Generic Drugs -- 2.1% Teva Pharmaceutical Industries, Ltd. ADR........................................ 27,800 1,284,082 ---------- Metal Processors & Fabrication -- 1.0% Precision Castparts Corp.................... 6,300 643,104 ---------- Metal-Aluminum -- 1.1% Alcoa, Inc.................................. 19,000 685,140 ---------- Metal-Diversified -- 4.2% Freeport-McMoRan Copper & Gold, Inc......... 27,000 2,597,940 ---------- Multimedia -- 0.8% News Corp., Class A......................... 25,000 468,750 ---------- Oil Companies-Exploration & Production -- 2.6% Apache Corp................................. 6,600 797,412 Devon Energy Corp........................... 8,000 834,640 ---------- 1,632,052 ---------- Oil Companies-Integrated -- 1.8% Exxon Mobil Corp............................ 12,800 1,082,624 ---------- Oil Field Machinery & Equipment -- 1.8% National-Oilwell Varco, Inc.+............... 19,200 1,120,896 ---------- Oil-Field Services -- 2.5% Schlumberger, Ltd........................... 18,000 1,566,000 ---------- Retail-Apparel/Shoe -- 2.1% Guess ?, Inc................................ 32,000 1,295,040 ----------
60 SunAmerica Disciplined Growth Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Shares/ Market Principal Value Security Description Amount (Note 3) ---------------------------------------------------------------- COMMON STOCK (continued) Retail-Discount -- 2.1% Costco Wholesale Corp.............. 20,000 $ 1,299,400 ----------- Retail-Drug Store -- 2.2% CVS Caremark Corp.................. 34,000 1,377,340 ----------- Steel-Producer -- 1.0% Nucor Corp......................... 9,000 609,660 ----------- Tobacco -- 1.7% Altria Group, Inc.................. 14,000 310,800 Philip Morris International, Inc.+. 14,000 708,120 ----------- 1,018,920 ----------- Transport-Marine -- 1.0% Eagle Bulk Shipping, Inc........... 25,000 644,000 ----------- Wireless Equipment -- 1.1% QUALCOMM, Inc...................... 16,400 672,400 ----------- X-Ray Equipment -- 1.2% Hologic, Inc.+..................... 13,000 722,800 ----------- Total Long-Term Investment Securities (cost $54,012,942)................ 54,017,714 ----------- REPURCHASE AGREEMENT -- 16.4% State Street Bank & Trust Co. Joint Repurchase Agreement(1) (cost $10,105,000)................ $ 10,105,000 10,105,000 ----------- TOTAL INVESTMENTS (cost $64,117,942)(2)............. 103.8% 64,122,714 Liabilities in excess of other assets (3.8) (2,333,864) ------------ ----------- NET ASSETS -- 100.0% $61,788,850 ============ ===========
-------- + Non-income producing security (1) See Note 3 for details for Joint Repurchase Agreement. (2) See Note 7 for cost of investments on a tax basis. ADR --American Depository Receipt See Notes to Financial Statements 61 SunAmerica International Small-Cap Fund PORTFOLIO PROFILE -- March 31, 2008 -- (unaudited) Industry Allocation* Medical-Drugs......................... 3.8% Auto/Truck Parts & Equipment-Original. 3.6 Machinery-General Industrial.......... 3.2 Chemicals-Diversified................. 3.2 Finance-Other Services................ 3.1 Building & Construction Products-Misc. 2.9 Computers-Integrated Systems.......... 2.6 Electronic Components-Misc............ 2.5 Shipbuilding.......................... 2.1 Appliances............................ 2.0 Steel Pipe & Tube..................... 2.0 Water................................. 1.9 Electric Products-Misc................ 1.9 Machinery-Electrical.................. 1.9 Consulting Services................... 1.9 Gambling (Non-Hotel).................. 1.9 Commercial Services................... 1.8 Rubber-Tires.......................... 1.7 Miscellaneous Manufacturing........... 1.7 Building-Maintance & Services......... 1.6 Food-Misc............................. 1.6 Machinery-Construction & Mining....... 1.6 Finance-Investment Banker/Broker...... 1.5 Machinery-Material Handling........... 1.5 Oil Refining & Marketing.............. 1.4 Oil Field Machinery & Equipment....... 1.4 Industrial Audio & Video Products..... 1.4 Power Converter/Supply Equipment...... 1.3 Medical-Biomedical/Gene............... 1.3 Extended Service Contracts............ 1.3 Aerospace/Defense..................... 1.2 Instruments-Controls.................. 1.2 Chemicals-Specialty................... 1.2 Energy-Alternate Sources.............. 1.1 Security Services..................... 1.0 Retail-Petroleum Products............. 1.0 Internet Infrastructure Software...... 1.0 Direct Marketing...................... 0.9 Rental Auto/Equipment................. 0.9 Advanced Materials.................... 0.9 Transport-Marine...................... 0.9 Applications Software................. 0.8 Diversified Financial Services........ 0.8 Auto-Cars/Light Trucks................ 0.8 Retail-Apparel/Shoe................... 0.7 Computers............................. 0.7 Veterinary Products................... 0.7 Electronic Security Devices........... 0.7 Medical Imaging Systems............... 0.7 Diversified Manufacturing Operations.. 0.7 Medical Products...................... 0.7 Retail-Discount....................... 0.7 Coal.................................. 0.6 Retail-Misc./Diversified.............. 0.6 Retail-Automobile..................... 0.6 Medical-Hospitals..................... 0.6 Beverages-Wine/Spirits................ 0.6 Medical Instruments................... 0.6 Electric-Generation................... 0.5 Agricultural Chemicals................ 0.5
Building-Heavy Construction........... 0.5 Fisheries............................. 0.5 Apparel Manufacturers................. 0.5 Footwear & Related Apparel............ 0.5 Internet Content-Information/News..... 0.5 Time Deposits......................... 0.5 E-Commerce/Services................... 0.4 Medical-Wholesale Drug Distribution... 0.4 Electronic Components-Semiconductors.. 0.4 Transport-Truck....................... 0.4 Retail-Sporting Goods................. 0.4 Diversified Operations................ 0.4 Rubber/Plastic Products............... 0.4 Coatings/Paint........................ 0.4 Agricultural Operations............... 0.4 Batteries/Battery Systems............. 0.4 Travel Services....................... 0.4 Motion Pictures & Services............ 0.4 Printing-Commercial................... 0.3 Beverages-Non-alcoholic............... 0.3 Containers-Paper/Plastic.............. 0.3 Commerce.............................. 0.3 E-Services/Consulting................. 0.3 Finance-Leasing Companies............. 0.3 Retail-Restaurants.................... 0.3 Retail-Consumer Electronics........... 0.3 Oil-Field Services.................... 0.3 Retail-Drug Store..................... 0.3 Decision Support Software............. 0.3 Real Estate Operations & Development.. 0.3 Oil Companies-Exploration & Production 0.3 Retail-Regional Department Stores..... 0.3 Communications Software............... 0.2 Machinery-Print Trade................. 0.2 Banks-Commercial...................... 0.2 Building & Construction-Misc.......... 0.2 Electronic Parts Distribution......... 0.1 Investment Management/Advisor Services 0.1 Metal Processors & Fabrication........ 0.1 Retail-Major Department Stores........ 0.1 Electronic Connectors................. 0.1 Transport-Services.................... 0.1 Recycling............................. 0.1 ---- 99.0% ====
-------- * Calculated as a percentage of net assets 62 SunAmerica International Small-Cap Fund PORTFOLIO PROFILE -- March 31, 2008 -- (unaudited) (continued) Country Allocation* Japan......... 24.9% United Kingdom 17.8 Germany....... 11.4 France........ 5.3 Finland....... 5.2 Spain......... 4.1 Sweden........ 3.4 Denmark....... 3.1 Greece........ 3.0 South Korea... 2.7 Norway........ 2.0 Switzerland... 1.9 China......... 1.7 Bermuda....... 1.6 Cayman Islands 1.6 Belgium....... 1.4 Taiwan........ 1.2 Austria....... 1.2 Indonesia..... 0.8 Singapore..... 0.8 Australia..... 0.8 Netherlands... 0.7 Malaysia...... 0.5 United States. 0.4 Hong Kong..... 0.4 Philippines... 0.4 New Zealand... 0.3 Ireland....... 0.3 Thailand...... 0.1 ---- 99.0% ====
-------- * Calculated as a percentage of net assets 63 SunAmerica International Small-Cap Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited)
Market Value Security Description Shares (Note 3)(1) ---------------------------------------------------------------------- COMMON STOCK -- 96.7% Australia -- 0.8% JB Hi-Fi, Ltd.................................... 10,632 $ 87,744 Tassal Group, Ltd................................ 73,726 154,814 ---------- 242,558 ---------- Austria -- 1.2% Andritz AG....................................... 6,450 355,398 ---------- Belgium -- 1.4% EVS Broadcast Equipment SA....................... 3,822 410,552 ---------- Bermuda -- 1.6% China Yurun Food Group, Ltd...................... 57,000 72,255 CNPC Hong Kong, Ltd.............................. 170,000 78,518 Global Sources, Ltd.+............................ 6,930 102,911 Huabao International Holdings, Ltd............... 145,000 119,173 IT, Ltd.......................................... 388,000 108,966 ---------- 481,823 ---------- Cayman Islands -- 1.6% Anta Sports Products, Ltd.+...................... 134,000 142,435 Hidili Industry International Development, Ltd.+. 145,000 190,219 HKR International, Ltd........................... 156,000 106,737 New World Department Store China, Ltd.+.......... 31,000 37,002 ---------- 476,393 ---------- China -- 1.7% AsiaInfo Holdings, Inc.+......................... 27,600 299,736 BYD Co., Ltd..................................... 27,500 51,087 China BlueChemical, Ltd.......................... 300,000 158,276 ---------- 509,099 ---------- Denmark -- 3.1% FLSmidth & Co. A/S............................... 5,541 549,594 Genmab A/S+...................................... 3,579 182,058 NeuroSearch A/S+................................. 3,480 200,335 ---------- 931,987 ---------- Finland -- 5.2% KCI Konecranes Oyj............................... 9,581 369,471 Nokian Renkaat Oyj............................... 11,807 503,842 Oriola-KD Oyj.................................... 39,653 185,701 Poyry Oyj........................................ 9,763 242,583 Ramirent Oyj..................................... 13,771 260,944 ---------- 1,562,541 ---------- France -- 5.3% Guerbet.......................................... 1,057 207,346 Ingenico SA...................................... 10,890 358,225 Laurent-Perrier.................................. 1,100 173,313 Rubis............................................ 3,641 307,541 Sechilienne SA................................... 4,264 329,951 Virbac SA........................................ 2,320 213,092 ---------- 1,589,468 ---------- Germany -- 9.5% Bauer AG......................................... 4,684 308,272 ElringKlinger AG................................. 5,751 642,671 Fielmann AG...................................... 3,075 189,007 Rational AG...................................... 1,483 293,600
Market Value Security Description Shares (Note 3)(1) ---------------------------------------------------------- Germany (continued) Symrise AG......................... 10,709 $ 276,406 Vossloh AG......................... 4,097 577,818 Wincor Nixdorf AG.................. 2,410 192,857 Wirecard AG+....................... 22,135 387,693 ---------- 2,868,324 ---------- Greece -- 3.0% Athens Stock Exchange SA........... 12,090 288,223 Fourlis Holdings SA................ 9,736 318,498 Frigoglass SA...................... 9,509 293,642 ---------- 900,363 ---------- Hong Kong -- 0.4% China Green Holdings, Ltd.......... 104,000 115,588 Guangzhou Investment Co., Ltd...... 72,000 14,783 ---------- 130,371 ---------- Indonesia -- 0.8% PT Ciputra Development Tbk......... 1,315,000 79,447 PT United Tractors Tbk............. 124,000 170,131 ---------- 249,578 ---------- Ireland -- 0.3% Norkom Group PLC+.................. 36,550 83,661 ---------- Japan -- 24.9% Acrodea, Inc.+..................... 13 70,209 Alpha Systems, Inc................. 2,000 62,412 Amano Corp......................... 5,900 60,954 Chugoku Marine Paints, Ltd......... 17,000 119,267 Daiichi Chuo Kisen Kaisha.......... 9,000 64,510 Daiseki Co., Ltd................... 1,700 51,546 Dena Co., Ltd...................... 12 76,899 Digital Garage, Inc.+.............. 50 98,140 Disco Corp......................... 2,100 91,759 Don Quijote Co, Ltd................ 10,700 195,748 en-japan, Inc...................... 27 57,864 EPS Co., Ltd....................... 37 182,069 Exedy Corp......................... 7,100 203,155 FP Corp............................ 4,200 103,097 Fujimi, Inc........................ 4,600 67,164 Glory, Ltd......................... 1,900 41,066 Harmonic Drive Systems, Inc........ 14 46,641 HIS Co., Ltd....................... 7,600 110,217 Hisamitsu Pharmaceutical Co., Inc.. 4,800 174,934 Hitachi Systems & Services, Ltd.... 5,400 118,844 Iriso Electronics Co., Ltd......... 2,300 28,897 Japan Steel Works, Ltd............. 15,000 260,700 Kaga Electronics Co., Ltd.......... 3,400 45,032 Kakaku.com, Inc.................... 22 137,134 Kenedix, Inc....................... 39 43,171 Kito Corp.......................... 22 35,688 Kitz Corp.......................... 7,000 42,261 Koito Manufacturing Co., Ltd....... 10,000 137,660 Kureha Corp........................ 19,000 119,812 Kyoritsu Maintenance Co., Ltd...... 6,200 111,352 Lintec Corp........................ 9,400 134,815 Mani, Inc.......................... 1,200 82,628
64 SunAmerica International Small-Cap Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Market Value Security Description Shares (Note 3)(1) ---------------------------------------------------------------- COMMON STOCK (continued) Japan (continued) MCJ Co., Ltd............................. 71 $ 27,990 Miraca Holdings, Inc..................... 4,100 107,798 Miraial Co., Ltd......................... 1,500 50,922 Mitsubishi UFJ Lease & Finance Co., Ltd.. 2,690 93,983 Modec, Inc............................... 5,100 168,398 Moshi Moshi Hotline, Inc................. 9,400 285,513 Nabtesco Corp............................ 16,000 219,828 Nihon Dempa Kogyo Co., Ltd............... 2,200 61,869 Nishimatsuya Chain Co., Ltd.............. 9,500 114,756 Nissha Printing Co, Ltd.................. 2,100 104,227 NPC, Inc................................. 1,100 63,050 Obic Co, Ltd............................. 430 76,489 Okasan Holdings, Inc..................... 18,000 90,373 Osaka Securities Exchange Co., Ltd....... 22 100,202 Otsuka Corp.............................. 2,600 222,420 Resort Solution Co., Ltd................. 2,000 7,537 Rohto Pharmaceutical Co., Ltd............ 8,000 100,650 Saint Marc Holdings Co., Ltd............. 2,700 92,920 Sankyu, Inc.............................. 23,000 125,284 Sasebo Heavy Industries Co., Ltd......... 23,000 73,136 Sato Corp................................ 4,700 60,419 So-net M3, Inc........................... 22 90,051 Star Micronics Co., Ltd.................. 5,100 70,596 Sugi Pharmacy Co., Ltd................... 3,000 85,287 Sysmex Corp.............................. 4,700 170,805 Taiyo Ink Manufacturing Co., Ltd......... 4,000 95,831 Takeei Corp.............................. 500 18,093 Teikoku Piston Ring Co., Ltd............. 11,100 94,514 Toho Pharmaceutical Co., Ltd............. 5,200 133,507 Toshiba Machine Co., Ltd................. 9,000 55,059 Toyo Tanso Co., Ltd...................... 2,550 239,432 Tsumura & Co............................. 8,100 202,175 Unicharm Petcare Corp.................... 3,200 101,178 Union Tool Co............................ 3,100 116,517 USS Co, Ltd.............................. 2,710 188,729 Vantec Group Holdings Corp............... 18 21,308 Works Applications Co., Ltd.............. 125 183,392 Xebio Co., Ltd........................... 4,700 121,762 Yamaguchi Financial Group, Inc........... 5,000 56,790 ---------- 7,468,435 ---------- Malaysia -- 0.5% Sarawak Energy Bhd....................... 241,800 159,918 ---------- Netherlands -- 0.7% Smartrac NV+............................. 4,401 212,912 ---------- New Zealand -- 0.3% Nufarm, Ltd.............................. 6,493 102,314 ---------- Norway -- 2.0% Sevan Marine ASA+........................ 32,452 414,502 Songa Offshore ASA+...................... 14,370 192,171 ---------- 606,673 ---------- Philippines -- 0.4% Pepsi-Cola Products Philippines, Inc.+... 1,635,000 103,729 ----------
Market Value Security Description Shares (Note 3)(1) ---------------------------------------------------------------- Singapore -- 0.8% Raffles Medical Group, Ltd................. 206,800 $ 186,678 Swiber Holdings, Ltd.+..................... 33,000 61,470 ----------- 248,148 ----------- South Korea -- 2.7% CJ Internet Corp........................... 5,940 106,666 Hyundai DSF Co., Ltd....................... 6,970 77,516 Jinsung T.E.C.............................. 9,548 128,798 JVM Co., Ltd............................... 2,683 121,920 Kolon Engineering & Construction Co., Ltd.. 4,180 45,687 SODIFF Advanced Materials Co., Ltd......... 1,104 82,625 SSCP Co., Ltd.+............................ 5,375 121,690 Taeyoung Engineering & Construction........ 13,800 113,136 ----------- 798,038 ----------- Spain -- 4.1% Prosegur Cia de Seguridad SA............... 7,440 312,088 Tubacex, SA................................ 54,790 606,363 Viscofan SA................................ 13,364 306,138 ----------- 1,224,589 ----------- Sweden -- 3.4% Intrum Justitia AB......................... 30,154 536,605 RaySearch Laboratories AB+................. 5,004 116,292 Saab AB.................................... 14,817 374,490 ----------- 1,027,387 ----------- Switzerland -- 1.9% Basilea Pharmaceutica AG+.................. 1,433 209,263 Compagne Financiere Tradition.............. 1,025 180,644 Swissquote Group Holding SA................ 3,510 191,851 ----------- 581,758 ----------- Taiwan -- 1.2% Everlight Electronics Co., Ltd............. 37,077 127,514 Sanyang Industrial Co., Ltd................ 302,000 229,602 ----------- 357,116 ----------- Thailand -- 0.1% Italian-Thai Development PCL............... 177,500 42,282 ----------- United Kingdom -- 17.8% Chemring Group PLC......................... 11,651 568,002 Chloride Group PLC......................... 104,884 397,522 Connaught PLC.............................. 50,100 378,801 Cookson Group PLC.......................... 15,372 202,538 Croda International........................ 28,971 381,158 Homeserve PLC.............................. 9,920 378,529 IG Group Holdings PLC...................... 86,464 561,454 Lamprell PLC............................... 3,270 25,959 Northumbrian Water Group PLC............... 84,061 582,578 PayPoint PLC............................... 21,624 243,120 PV Crystalox Solar PLC+.................... 68,850 176,245 Rotork PLC................................. 17,295 370,277 RPS Group PLC.............................. 52,294 334,660 Tanfield Group PLC+........................ 102,438 197,230 VT Group PLC............................... 42,193 550,092 ----------- 5,348,165 ----------- Total Common Stock (cost $28,323,632)........................ 29,073,580 -----------
65 SunAmerica International Small-Cap Fund PORTFOLIO OF INVESTMENTS -- March 31, 2008 -- (unaudited) (continued)
Shares/ Market Principal Value Security Description Amount (Note 3)(1) --------------------------------------------------------------- PREFERRED STOCK -- 1.9% Germany -- 1.9% Fuchs Petrolub AG..................... 4,491 $ 418,720 Hugo Boss AG 7.49%................................ 2,879 145,595 ----------- Total Preferred Stock (cost $536,824)...................... 564,315 ----------- Total Long-Term Investment Securities (cost $28,860,456)................... 29,637,895 ----------- SHORT-TERM INVESTMENT SECURITIES -- 0.4% Time Deposits -- 0.4% Euro Time Deposit with State Street Bank & Trust Co. 0.60% due 04/01/08 (cost $136,000)...................... $ 136,000 136,000 ----------- TOTAL INVESTMENTS (cost $28,996,456)(2)................ 99.0% 29,773,895 Other assets less liabilities........... 1.0 289,851 --------- ----------- NET ASSETS -- 100.0% $30,063,746 ========= ===========
-------- + Non-income producing security (1)A substantial number of the Fund's holdings were valued using fair value procedures at March 31, 2008. At March 31, 2008, the aggregate value of these securities was $29,235,249 representing 97.2% of net assets. See Note 3 regarding fair value pricing procedures for foreign equity securities. (2)See Note 7 for cost of investment on a tax basis. See Notes to Financial Statements 66 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited) Note 1. Organization SunAmerica Equity Funds is registered under the Investment Company Act of 1940, as amended, (the "1940 Act") as an open-end management investment company and was organized as a Massachusetts business trust (the "Trust" or "Equity Funds") on June 16, 1986. It currently consists of nine different funds (each, a "Fund" and collectively, the "Funds"). Each Fund is a separate series of the Trust with a distinct objective and/or strategy. Each Fund is advised and/or managed by AIG SunAmerica Asset Management Corp. (the "Adviser" or "AIG SunAmerica"), an indirect wholly-owned subsidiary of American International Group, Inc. ("AIG"). An investor may invest in one or more of the following Funds: SunAmerica Blue Chip Growth Fund ("Blue Chip Growth Fund"), SunAmerica Growth Opportunities Fund ("Growth Opportunities Fund"), SunAmerica New Century Fund ("New Century Fund"), SunAmerica Growth and Income Fund ("Growth and Income Fund"), SunAmerica Balanced Assets Fund ("Balanced Assets Fund"), SunAmerica International Equity Fund ("International Equity Fund"), SunAmerica Value Fund ("Value Fund"), SunAmerica Disciplined Growth Fund ("Disciplined Growth Fund") and SunAmerica International Small-Cap Fund ("International Small-Cap Fund"). The Funds are considered to be separate entities for financial and tax reporting purposes. The investment objective and principal investment techniques for each of the Funds is as follows: Blue Chip Growth Fund seeks capital appreciation by active trading of equity securities of Blue Chip companies that demonstrate the potential for capital appreciation. At least 80% of the Fund's net assets plus any borrowing for investment purposes will be invested in such securities. Growth Opportunities Fund seeks capital appreciation by active trading of equity securities that demonstrate the potential for capital appreciation, issued generally by small-cap companies. New Century Fund seeks capital appreciation by active trading of equity securities that demonstrate the potential for capital appreciation, without regard to market capitalization. Growth and Income Fund seeks capital appreciation and current income by active trading of equity securities issued by companies of any size, that pay dividends, demonstrate the potential for capital appreciation and/or are believed to be undervalued in the market. Balanced Assets Fund seeks capital appreciation and conservation of principal by active trading partly in equity securities that demonstrate the potential for capital appreciation issued by companies with market capitalization of over $1.5 billion and partly in investment-grade fixed income securities. International Equity Fund seeks capital appreciation by 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. At least 80% of the Fund's net assets plus, any borrowing for investment purposes, will be invested in such securities. Value Fund seeks long-term growth of capital 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. Disciplined Growth Fund seeks capital appreciation by active trading of equity securities that demonstrate the potential for capital appreciation, without regard to market capitalization. International Small-Cap Fund seeks long-term capital appreciation by active trading of equity and equity-related securities 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 Blue Chip Growth Fund, Growth Opportunities Fund, New Century Fund, Growth and Income Fund, Balanced Assets Fund, Disciplined Growth Fund and International Small-Cap Fund are organized as "diversified" funds within the meaning of the 1940 Act. The International Equity Fund and Value Fund are organized as "non-diversified" funds. 67 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited) (continued) Each Fund offers multiple classes of shares. The classes within each Fund are presented in the Statement of Assets and Liabilities. The cost structure for each class is as follows: Class A shares are offered at net asset value per share plus an initial sales charge. Additionally, purchases of Class A shares in 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 sales charge may be imposed on redemptions made within six years of purchase. Class B shares of each Fund convert automatically to Class A shares approximately eight years after purchase of such Class B shares and at such time will be subject to the lower distribution fee applicable to Class A shares. Class C shares are offered at net asset value per share without an initial sales charge, although may be subject to a contingent deferred sales charge on redemptions made within 12 months of purchase. Certain Class C shares of particular Funds issued in connection with particular reorganizations or mergers will convert automatically to Class A shares approximately ten years after purchase and at such time will be subject to the lower distribution fee applicable to Class A shares. Class I and Class Z shares are offered at net asset value per share. These classes are offered exclusively to participants in certain employee benefit plans and other programs. Each class of shares bears the same voting, dividend, liquidation and other rights and conditions, except as may otherwise be provided in the Trust's registration statement. Class A, Class B and Class C shares each 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 liability arising out of the performance of their duties to the Trust. In addition, in the normal course of business the Trust enters into contracts that contain the obligation to indemnify others. The Trust's maximum exposure under these arrangements is unknown. Currently, however, the Trust expects the risk of loss to be remote. Note 2. Fund Merger Pursuant to a plan of reorganization, all the assets and liabilities of SunAmerica Biotech/Health Fund ("Biotech/Health Fund") were transferred in a tax-free exchange to the New Century Fund, in exchange for shares of New Century Fund. The details of the reorganization, which was consummated on March 19, 2007, are set forth below. Class A, Class B, and Class C shares of Biotech/Health Fund were exchanged tax-free for Class A, Class B, and Class C shares of New Century Fund, respectively. Net assets and unrealized appreciation (depreciation) as of the merger date were as follows: Net assets of the Biotech/Health Fund prior to merger............. $ 21,294,588 Net assets of the New Century Fund prior to merger................ $ 88,216,005 ------------ Aggregate net assets of the New Century Fund following acquisition $109,510,593 ------------ Unrealized appreciation (depreciation) in the Biotech/Health Fund. $ 397,826
68 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited) (continued) Note 3. Significant Accounting Policies The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these estimates. The following is a summary of the significant accounting policies followed by the Trust in the preparation of their financial statements: Security Valuations: Stocks are generally valued based upon closing sales prices reported on recognized securities exchanges. Stocks listed on the NASDAQ are valued using the NASDAQ Official Closing Price ("NOCP"). Generally, the NOCP will be the last sale price unless the reported trade for the stock is outside the range of the bid/ask price. In such cases, the NOCP will be normalized to the nearer of the bid or ask price. For listed securities having no sales reported and for unlisted securities, such securities will be valued based upon the last reported bid price. As of the close of regular trading on the New York Stock Exchange ("NYSE"), securities traded primarily on security exchanges outside the United States are valued at the last sale price on such exchanges on the day of valuation, or if there is no sale on the day of valuation, at the last-reported bid price. If a security's price is available from more than one exchange, a portfolio uses the exchange that is the primary market for the security. However, depending on the foreign market, closing prices may be up to 15 hours old when they are used to price a Fund's shares, and the Fund may determine that certain closing prices are unreliable. This determination will be based on review of a number of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U.S. markets that represent foreign securities and baskets of foreign securities. If a Fund determines that closing prices do not reflect the fair value of the securities, the Fund will adjust the previous closing prices in accordance with pricing procedures approved by the Board of Trustees (the "Board") to reflect what it believes to be the fair value of the securities as of the close of regular trading on the NYSE. The Funds may also fair value securities in other situations, for example, when a particular foreign market is closed but a Fund is open. For foreign equity securities, the Funds use an outside pricing service to provide it with closing market prices and information used for adjusting those prices. Non-convertible bonds and debentures, other long-term debt securities, and short term debt securities with maturities in excess of 60 days, are valued at bid prices obtained for the day of valuation from a bond pricing service, when such prices are available. If a vendor quote is unavailable the securities may be priced at the mean of two independent quotes obtained from brokers. 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 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 where a development/significant event occurs that may significantly impact the value of the security, are fair valued, as determined pursuant to procedures adopted in good faith by the Board. New Accounting Pronouncements: On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. However, Registered Investment Companies are not required to implement FIN 48 until their last net asset value calculation in the first required 69 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited) (continued) financial statement reporting period for fiscal years beginning after December 15, 2006. Management had evaluated the implications of FIN 48 and determined there is no impact to the financial statements. In September 2006, the FASB issued Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"). This standard clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of fair value measurements. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. As of March 31, 2008, the management of the Funds does not believe the adoption of FAS 157 will impact the amounts reported in the financial statements, however, additional disclosures will be required about the inputs used to develop the measurements of fair value. Repurchase Agreements: The Funds, along with other affiliated registered investment companies, pursuant to exemptive relief granted by the Securities and Exchange Commission ("SEC"), may transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by U.S. Treasury or federal agency obligations. For repurchase agreements and joint repurchase agreements, the Funds' custodian takes possession of the collateral pledged for investments in repurchase agreements ("repo" or collectively "repos"). The underlying collateral is valued daily on a mark to market basis to ensure that the value, at the time the agreement is entered into, is equal to at least 102% of the repurchase price, including accrued interest. In the event of default of the obligation to repurchase, a Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited. As of March 31, 2008, the following Funds held an undivided interest in a joint repurchase agreement with State Street Bank & Trust Co.:
Percentage Principal Fund Interest Amount ---- ---------- ----------- Blue Chip Growth.... 1.41% $ 2,392,000 Growth Opportunities 3.06 5,178,000 New Century......... 3.19 5,409,000 Growth & Income..... 1.50 2,539,000 Balanced Assets..... 3.15 5,342,000 Value............... 7.86 13,310,000 Disciplined Growth.. 5.97 10,105,000
As of such date, the repurchase agreement in that joint account and the collateral therefore were as follows: State Street Bank & Trust Co., dated March 31, 2008, bearing interest at a rate of 0.80% per annum, with a principal amount of $169,381,000, a repurchase price of $169,384,764 and a maturity date of April 1, 2008. The repurchase agreement is collateralized by the following:
Maturity Principal Type of Collateral Interest Rate Date Amount Market Value ------------------ ------------- -------- ----------- ------------ U.S. Treasury Bonds 6.25% 08/15/23 $93,628,724 $95,501,775 U.S. Treasury Bonds 8.00 11/15/21 15,573,722 15,885,196 U.S. Treasury Bonds 8.75 08/15/20 60,178,554 61,382,125
Securities Transactions, Investment Income, Expenses, Dividends and Distributions to Shareholders: Security transactions are recorded on a trade date basis. Realized gains and losses on sales of investments are calculated on the identified cost basis. Interest income is accrued daily except when collection is not expected. Dividend income is recorded on the ex-dividend date except for certain dividends from foreign securities, which are recorded as soon as the Fund is informed after the ex-dividend date. Funds which earn foreign income and capital gains may be subject to foreign withholding taxes and capital gains taxes at various rates. Under applicable foreign law, a withholding of tax may be imposed on interest, dividends, and capital gains at various rates. For financial statements purposes, the Funds amortize all premiums and accrete all discounts on fixed income securities. 70 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited) (continued) Net investment income, other than class-specific expenses, and realized and unrealized gains and losses, are allocated daily to each class of shares based upon the relative net asset value of outstanding shares of each class of shares at the beginning of the day (after adjusting for the current capital shares activity of the respective class). Expenses common to all Funds, not directly related to individual Funds, are allocated among the Funds based upon their relative net asset value or other appropriate methods. In all other respects, expenses are charged to each Fund as incurred on a specific identification basis. Interest earned on cash balances held at the custodian are shown as custody credits on the Statement of Operations. Dividends from net investment income, if any, are paid annually, except for the Balanced Assets Fund and Growth and Income Fund, which pay quarterly. Capital gain distributions, if any, are paid at least annually. The Balanced Assets Fund and Growth and Income Fund reserve the right to declare and pay dividends less frequently than disclosed above, provided that net realized capital gains and net investment income, if any, are paid annually. The Funds record dividends and distributions to their shareholders on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined and presented in accordance with federal income tax regulations, which may differ from U.S. generally accepted accounting principles. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts at fiscal year end based on their federal tax-basis treatment; temporary differences do not require reclassification. Net investment income (loss), net realized gain (loss) and net assets are not affected by these reclassifications. Each Fund intends to comply with the requirements of the Internal Revenue Code, as amended, applicable to regulated investment companies and distribute all of its taxable income, including any net realized gain on investments to its shareholders. Therefore, no federal tax provisions are required. Each Fund is considered a separate entity for tax purposes. 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 2004. 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. Forward Foreign Currency Contracts: Certain funds may enter into forward foreign currency contracts ("forward contracts") to attempt to protect securities and related receivables and payables against changes in future foreign exchange rates or to enhance return. A forward contract is an agreement between two parties to buy or sell currency at a set price on a future date. The market value of the contract will fluctuate with changes in currency exchange rates. The contract is marked to market daily using the forward rate and the change in market value is recorded by the Fund as unrealized gain or loss. On settlement date, the Fund records realized foreign exchange gains or losses when the contract is closed equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. Forward contracts involve elements of risk in excess of the amounts reflected in the Statement of Assets and Liabilities. The Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the forward contract. Futures Contracts: A futures contract is an agreement between two parties to buy and sell a financial instrument at a set price on a future date. Upon entering into a futures transaction, a Fund will be required to segregate an initial margin payment of cash 71 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited) (continued) or other liquid securities with the Futures Commission Merchant ("the broker"). The Funds' activities in futures contracts are used primarily for hedging purposes and from time to time for income enhancement. Futures contracts are conducted through regulated exchanges that minimize counter-party credit risks. A Funds' participation in the futures markets involves certain risks, including imperfect correlation between movements in the price of futures contracts and movements in the price of the securities hedged or used for cover. Pursuant to a contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as "variation margin" and are recorded by the Funds as unrealized appreciation or depreciation. Futures contracts involve elements of risk in excess of the amount reflected in the Statement of Assets and Liabilities. When a contract is closed, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Options: An option is a contract conveying a right to buy or sell a financial instrument at a specified price during a stipulated period. The premium paid by a Fund for the purchase of a call or a put option is included in the Fund's Statement of Assets and Liabilities as an investment and subsequently marked to market to reflect the current market value of the option. When a Fund writes a call or a put option, an amount equal to the premium received by the Fund is included in the Fund's Statement of Assets and Liabilities as a liability and is subsequently marked to market to reflect the current market value of the option written. If an option which the Fund has written either expires on its stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or loss if the cost of a closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such options is extinguished. If a call option which the Fund has written is exercised, the Fund realizes a capital gain or loss from the sale of the underlying security and the proceeds from such sale are increased by the premium originally received. If a put option which the Fund has written is exercised, the amount of the premium originally received reduces the cost of the security which the Fund purchased upon exercise of the option. There were no transactions in call and put options written during the six months ended March 31, 2008. Mortgage-Backed Dollar Rolls: During the six months ended March 31, 2008, the Balanced Assets Fund entered into dollar rolls using "to be announced" ("TBA") mortgage-backed securities ("TBA Rolls"). The Fund's policy is to record the components of TBA Rolls as purchase/sale transactions. Any difference between the purchase and sale price is recorded as a realized gain or loss on the date the transaction is entered into. Dollar roll transactions involve the risk that the market value of the securities held by the Fund may decline below the price of the securities that the Fund has sold but is obligated to repurchase under the agreement. In the event that the buyer of securities in a dollar roll transaction files bankruptcy or becomes insolvent, the Fund's use of the proceeds from the sale of the securities may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund's obligation to repurchase the securities. The return earned by the Fund with the proceeds of the dollar roll transaction may not exceed transaction costs. Short Sales: All funds may engage in "short sales against the box". A short sale is against the box to the extent that the Fund contemporaneously owns, or has the right to obtain without payment, securities identical to those sold short. In addition, the Disciplined Growth Fund, Value Fund, International Equity Fund and International Small-Cap Fund may sell a security it does not own in anticipation of a decline in the market value of that security ("short sales"). To complete such a transaction, the Fund must borrow the security to make delivery to the buyer. The Fund then is obligated to replace the security borrowed by purchasing it at market price at the time of replacement. The price at such time may be more or less than the price at which the security was sold by the Fund. Until the security is replaced, the Fund is required to pay to the lender any dividends or interest that accrues during the period of the loan. To borrow the security, the Fund may be required to pay a premium, which would increase the cost of the security sold. The proceeds of the short sale will be retained by the broker, to the extent necessary to meet margin requirements, until the short position is closed out. Until the Fund replaces a borrowed security, the Fund will maintain daily a segregated account, containing cash or liquid securities, at such a level that (i) the amount deposited in the account plus the amount deposited with the broker as collateral will equal the current value of the security sold short and (ii) the amount deposited in the segregated account plus the amount deposited with the broker as collateral will not be less than the market value of the security at the time it was sold short. Liabilities for securities sold short are reported at market value in the financial 72 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited) (continued) statements. Such liabilities are subject to off balance sheet risk to the extent of any future increases in market value of the securities sold short. The ultimate liability for securities sold short could exceed the liabilities recorded in the Statement of Assets and Liabilities. The Fund bears the risk of potential inability of the broker to meet their obligation to perform. During the six months ended March 31, 2008, Balanced Assets engaged in short sales. Note 4. Investment Advisory and Management Agreement, Distribution Agreement and Service Agreement The Trust, on behalf of each Fund, has an Investment Advisory and Management Agreement (the "Agreement") with AIG SunAmerica. Under the Agreement, AIG SunAmerica provides continuous supervision of a Fund's portfolio and administers its corporate affairs, subject to general review by the Trustees. In connection therewith, AIG SunAmerica furnishes the Funds with office facilities, maintains certain of the Funds' books and records, and pays the salaries and expenses of all personnel, including officers of the Funds who are employees of AIG SunAmerica and its affiliates. The Funds pay AIG SunAmerica a monthly investment advisory and management fee calculated daily at the following annual percentages of each Fund's average daily net assets:
Management Assets Fees --------------------------- ---------- Blue Chip Growth Fund....... $0 - $350 million 0.75% (greater than) $350 million 0.70 (greater than) $700 million 0.65 Growth Opportunities Fund... $0 - $350 million 0.75 (greater than) $350 million 0.70 (greater than) $700 million 0.65 New Century Fund............ $0 - $350 million 0.75 (greater than) $350 million 0.70 (greater than) $700 million 0.65 Growth and Income Fund...... $0 - $350 million 0.75 (greater than) $350 million 0.70 (greater than) $700 million 0.65 Balanced Assets Fund*....... $0 - $350 million 0.75 (greater than) $350 million 0.70 (greater than) $700 million 0.65 International Equity Fund... (greater than) $0 1.00 Value Fund.................. $0 - $750 million 1.00 (greater than) $750 million 0.95 (greater than) $1.5 billion 0.90 Disciplined Growth Fund..... (greater than) $0 0.85 International Small-Cap Fund (greater than) $0 1.15
-------- * On August 29, 2006, AIG SunAmerica agreed to the continuation of a 0.05% waiver of the investment advisory fees for the Balanced Assets Fund. Effective September 1, 2006, AIG SunAmerica agreed to, until further notice, an additional 0.02% waiver of the investment advisory fee for the fund. Effective October 1, 2006, AIG SunAmerica agreed to, until further notice, reduce the waiver of the investment advisory fee for the fund to 0.02%. For the six months ended March 31, 2008, the amount of investment advisory fees waived for the Balanced Assets Fund was $14,149. This amount is reflected in the Statement of Operations. For the six months ended March 31, 2008, AIG SunAmerica earned fees in the amounts stated in the Statement of Operations. The International Equity Fund and International Small-Cap Fund are subadvised by AIG Global Investment Corp. ("AIGGIC") pursuant to a subadvisory agreement with AIG SunAmerica. AIGGIC is an indirect wholly-owned subsidiary of AIG and an affiliate of AIG SunAmerica. AIGGIC receives an annual fee of 0.47% of average daily net assets for the International Equity Fund and 0.60% of average daily net assets for the International Small-Cap Fund, which is paid by AIG SunAmerica. For the six months ended March 31, 2008, AIGGIC waived 0.05% of the fee paid by AIG SunAmerica for the International Small-Cap Fund. AIG 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 net assets. The contractual expense waivers and fee reimbursements will continue indefinitely subject to termination by the Trustees, including a majority of the trustees who are not deemed to be "interested persons" of the Trust, as defined by Section 2(a)(19) of the 1940 Act ("Disinterested Trustees"). 73 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited) (continued)
Fund Percentage ---- ---------- Blue Chip Growth Class I....... 1.33% Growth Opportunities Class I... 1.33 Growth and Income Class I...... 1.32 Balanced Assets Class I........ 1.33 International Equity Class A... 1.90 International Equity Class B... 2.55 International Equity Class C... 2.55 International Equity Class I... 1.80 Value Class A.................. 1.63 Value Class B.................. 2.28 Value Class C.................. 2.28 Value Class I.................. 1.53 Value Class Z.................. 1.06 Disciplined Growth Class A..... 1.45 Disciplined Growth Class B..... 2.10 Disciplined Growth Class C..... 2.10 International Small-Cap Class A 1.90 International Small-Cap Class B 2.55 International Small-Cap Class C 2.55
Further, AIG SunAmerica is voluntarily waiving fees and/or reimbursing expenses, if necessary, so that the total net expense ratio for the following classes do not exceed the amounts set forth below. The voluntary fee waivers and/or expense reimbursements may be terminated at any time at the option of AIG SunAmerica.
Fund Percentage ---- ---------- New Century Class C 2.14%
For the International Equity Fund, Value Fund, Disciplined Growth Fund, and International Small-Cap Fund, any voluntary or contractual waivers and/or reimbursements made by AIG SunAmerica are subject to recoupment from the Funds within the following two years of making such waivers or reimbursements, provided that the Funds are able to effect such payment to AIG SunAmerica and remain in compliance with the foregoing expense limitations. For the six months ending March 31, 2008, pursuant to the contractual and voluntary expense limitations in the above tables AIG SunAmerica has waived or reimbursed expenses as follows: Blue Chip Growth Class I....... $ 5,448 Growth Opportunities Class I... 5,015 New Century Fund Class C....... 8,167 Growth & Income Class I........ 5,179 Balanced Assets Class I........ 5,080 International Equity Class A... -- International Equity Class B... 2,210 International Equity Class C... 942 International Equity Class I... 1,442 Value Fund Class A............. 53,838 Value Fund Class B............. 23,464 Value Fund Class C............. 14,513 Value Fund Class I............. 4,141 Value Fund Class Z............. 11,711 Disciplined Growth Class A..... 34,722 Disciplined Growth Class B..... 10,866 Disciplined Growth Class C..... 33,774 International Small-Cap Class A 61,865 International Small-Cap Class B 8,145 International Small-Cap Class C 15,577
74 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited) (continued) For the six months ended March 31, 2008, the amounts recouped by the Adviser are as follows: International Equity Class A $ -- International Equity Class B 917 International Equity Class C 6,249 International Equity Class I 405
At March 31, 2008, the amount of expenses previously waived and/or reimbursed by AIG SunAmerica during the prior two years that remain subject to recoupment are as follows:
Class Other Specific Expenses Expenses Reimbursed Reimbursed - ---------- ---------- International Equity Class A........ $ -- $ -- International Equity Class B........ -- 13,392 International Equity Class C........ -- 1,497 International Equity Class l........ -- 5,947 Value Fund Class A.................. 93,258 109,340 Value Fund Class B.................. 35,075 61,139 Value Fund Class C.................. 22,930 37,413 Value Fund Class l.................. 661 19,649 Value Fund Class Z.................. 20,052 27,502 Disciplined Growth Class A.......... 7,625 130,160 Disciplined Growth Class B.......... 3,850 60,031 Disciplined Growth Class C.......... 9,237 136,405 International Small-Cap Fund Class A 163,511 128,824 International Small-Cap Fund Class B 5,279 40,798 International Small-Cap Fund Class C 17,109 57,319
The Trust, on behalf of each Fund, has entered into a Distribution Agreement with AIG 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, 2008, 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, 2008, SACS earned fees (see Statement of Operations) based upon the aforementioned rates. 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 75 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited) (continued) 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, 2008, the proceeds received from sales (and paid out to affiliated and non-affiliated broker-dealers) and redemptions are as follows:
Class A Class B Class C ---------------------------------------------------- ------------- ------------- Contingent Contingent Contingent Sales Affiliated Non-affiliated Deferred Deferred Deferred Fund Charges Broker-dealers Broker-dealers Sales Charges Sales Charges Sales Charges ---- -------- -------------- -------------- ------------- ------------- ------------- Blue Chip Growth....... $ 39,989 $ 7,121 $27,412 $2,475 $ 6,706 $ 182 Growth Opportunities .. 15,202 8,315 4,700 71 6,205 175 New Century ........... 22,956 9,991 8,457 -- 7,078 246 Growth & Income........ 25,897 10,193 12,098 30 12,931 161 Balanced Assets ....... 66,121 43,323 13,687 60 7,776 181 International Equity .. 75,131 17,620 46,884 830 8,544 2,029 Value.................. 36,040 14,227 16,532 -- 19,136 218 Disciplined Growth..... 111,192 11,492 84,197 79 3,671 2,949 International Small-Cap 24,926 7,279 13,744 6 130 97
The Trust has entered into a Service Agreement with AIG 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, 2008, 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, 2008 -------------------------------- ------------------------------- Fund Class A Class B Class C Class I Class A Class B Class C Class I ---- -------- ------- ------- ------- ------- ------- ------- ------- Blue Chip Growth......... $ 53,848 $13,914 $ 4,557 $ 719 $ 8,291 $2,018 $ 732 $ 109 Growth Opportunities..... 36,684 12,825 7,001 138 5,152 1,708 961 20 New Century.............. 82,535 9,246 5,286 -- 11,758 1,273 717 -- Growth and Income........ 67,269 18,031 23,091 338 10,389 2,585 3,419 57 Balanced Assets.......... 126,819 14,233 13,900 688 19,799 2,151 2,120 111 International Equity..... 78,038 20,322 27,548 8,540 11,959 3,002 4,127 1,285 Value ................... 121,298 36,235 23,643 35 17,885 5,183 3,332 6 Disciplined Growth....... 33,152 5,860 34,444 -- 5,502 905 5,429 -- International Small-Cap . 29,943 1,230 5,111 -- 4,572 197 693 --
At March 31, 2008, AIG SunAmerica, Inc. an affiliated company of the Adviser, owned 5.1% of the total outstanding shares of New Century, 17.2% of International Equity, and 6.2% of Value Fund, respectively. On February 8, 2008, the Blue Chip Growth Fund and Balanced Assets Fund sold 900 shares and 600 shares, respectively of Allergan, Inc. common stock that the Funds did not own. Both Funds have an investment restriction that prohibits them from selling securities they do not own ("short selling"). The short positions were closed on February 8, 2008, resulting in a gain of $19 and $12, respectively, for the Blue Chip Growth Fund and Balanced Assets Fund. 76 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited) (continued) Note 5. Expense Reductions Through expense offset arrangements resulting from broker commission recapture, a portion of the expenses of the Funds set forth below have been reduced. For the six months ended March 31, 2008, the amount of expense reductions received by each Fund, used to offset the Fund's non-affiliated expenses were as follows:
Total Expense Fund Reductions ---- ------------- Blue Chip Growth.... $ 4,299 Growth Opportunities 50,299 New Century......... 34,277 Growth and Income... 21,514 Balanced Assets..... 10,996 International Equity 1,910 Value............... 34,650 Disciplined Growth.. 20,575
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, 2008, were as follows:
Blue Chip Growth New Growth and Growth Opportunities Century Income Balanced Fund Fund Fund Fund Assets Fund ------------- ------------- ------------ ------------- ------------ Purchases (excluding U.S. government securities)........... $ 21,772,456 $ 81,655,557 $143,429,634 $130,242,166 $ 86,307,784 Sales and maturities (excluding U.S. government securities) 25,919,844 82,991,566 144,511,334 137,612,441 100,720,197 Purchases of U.S. government securities.................... -- -- -- -- 9,235,346 Sales and maturities of U.S. government securities......... -- -- -- -- 7,693,999 International Disciplined International Equity Value Growth Small-Cap Fund Fund Fund Fund ------------- ------------- ------------ ------------- Purchases (excluding U.S. government securities)........... $123,819,305 $207,112,727 $131,427,534 $ 15,505,469 Sales and maturities (excluding U.S. government securities) 131,890,750 244,184,971 124,966,520 15,928,745 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, 2008:
Blue Chip Growth New Growth and Balanced Growth Opportunities Century Income Assets Fund Fund Fund Fund Fund ------------- ------------- ----------- ------------- ------------ Cost (tax basis).......................... $ 57,029,923 $ 38,981,074 $69,898,646 $89,873,406 $126,895,789 ============ ============ =========== =========== ============ Appreciation.............................. 6,458,412 1,017,446 1,453,901 2,384,545 6,970,716 Depreciation.............................. (3,788,234) (1,081,138) (2,604,327) (6,053,107) (6,855,596) ------------ ------------ ----------- ----------- ------------ Net unrealized appreciation (depreciation) $ 2,670,178 $ (63,692) $(1,150,426) $(3,668,562) $ 115,120 ============ ============ =========== =========== ============ International Disciplined International Equity Value Growth Small-Cap Fund Fund Fund Fund ------------- ------------- ----------- ------------- Cost (tax basis).......................... $103,463,341 $161,338,312 $64,309,228 $29,102,773 ============ ============ =========== =========== Appreciation.............................. 9,937,870 6,371,207 1,567,546 3,251,730 Depreciation.............................. (6,048,550) (6,658,318) (1,754,060) (2,580,608) ------------ ------------ ----------- ----------- Net unrealized appreciation (depreciation) $ 3,889,320 $ (287,111) $ (186,514) $ 671,122 ============ ============ =========== ===========
77 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited) (continued) 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.
Distributable Earnings Tax Distributions ----------------------------------------- ---------------------- For the year ended September 30, 2007 ---------------------------------------------------------------- Long-term Gains/ Capital Unrealized Long-Term Ordinary Loss Appreciation Ordinary Capital Fund Income Carryover (Depreciation) Income Gains ---- ----------- -------------- -------------- ---------- ----------- Blue Chip Growth....... $ -- $ (52,435,231) $10,781,893 $ -- $ -- Growth Opportunities... -- (173,866,796) 42,119 -- -- New Century............ -- (75,049,480) 151,222 -- -- Growth and Income...... 242,352 (33,557,797) 9,045,976 -- -- Balanced Assets........ 412,431 (68,456,727) 12,393,089 2,250,950 -- International Equity... -- 8,141,350 23,228,863 -- -- Value.................. 17,252,045 11,938,455 20,911,655 9,883,623 16,743,650 Disciplined Growth..... -- (18,611,005) 8,504,488 -- -- International Small-Cap 5,925 6,822 4,385,751 -- --
For Federal income tax purposes, the Funds indicated below have capital loss carryforwards, which expire in the year indicated, as of September 30, 2007, which are available to offset future capital gains, if any:
Capital Loss Carryforward ------------------------------------------------------------------------- Fund 2008 2009 2010 2011 2012 2013 2014 ---- ----------- ----------- ------------ ----------- ---------- -------- ---- Blue Chip Growth*...... $15,134,022 $ -- $ 10,374,287 $42,060,944 $ -- $ -- $-- Growth Opportunities*.. 6,398,027 151,316 121,180,899 65,312,802 -- -- -- New Century*........... 12,315,199 17,583,650 39,244,108 36,351,156 -- -- -- Growth and Income...... -- -- -- 27,835,407 5,722,390 -- -- Balanced Assets........ -- -- 8,896,612 55,685,563 3,874,552 -- -- International Equity*.. 13,755,719 -- -- -- -- -- -- Value.................. -- -- -- -- -- -- -- Disciplined Growth..... -- -- 13,578,150 4,260,050 594,906 177,899 -- International Small-Cap -- -- -- -- -- -- --
-------- * 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. 78 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited) (continued) Note 8. Capital Share Transactions Transactions in capital shares of each class of each fund were as follows:
Blue Chip Growth Fund -------------------------------------------------------------------------------------------- Class A Class B --------------------------------------------- --------------------------------------------- For the For the six months For the six months For the March 31, 2008 year ended March 31, 2008 year ended (unaudited) September 30, 2007 (unaudited) September 30, 2007 --------------------- ---------------------- --------------------- ---------------------- Shares Amount Shares Amount Shares Amount Shares Amount -------- ----------- -------- ------------ -------- ----------- -------- ------------ Shares sold (1)(2)(3)(4). 146,516 $ 2,636,455 272,319 $ 4,717,820 28,880 $ 451,432 61,910 $ 927,860 Reinvested dividends..... -- -- -- -- -- -- -- -- Shares redeemed (1)(2)... (221,768) (3,918,142) (656,693) (11,104,067) (161,942) (2,526,561) (449,635) (6,803,173) -------- ----------- -------- ------------ -------- ----------- -------- ------------ Net increase (decrease).. (75,252) $(1,281,687) (384,374) $ (6,386,247) (133,062) $(2,075,129) (387,725) $ (5,875,313) ======== =========== ======== ============ ======== =========== ======== ============ Blue Chip Growth Fund -------------------------------------------------------------------------------------------- Class C Class I --------------------------------------------- --------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2008 year ended March 31, 2008 year ended (unaudited) September 30, 2007 (unaudited) September 30, 2007 --------------------- ---------------------- --------------------- ---------------------- Shares Amount Shares Amount Shares Amount Shares Amount -------- ----------- -------- ------------ -------- ----------- -------- ------------ Shares sold.............. 59,820 $ 961,018 18,808 $ 279,270 12,636 $ 236,651 6,566 $ 112,457 Reinvested dividends..... -- -- -- -- -- -- -- -- Shares redeemed (3)(4)... (30,293) (469,606) (104,067) (1,557,478) (13,336) (247,167) (11,604) (197,959) -------- ----------- -------- ------------ -------- ----------- -------- ------------ Net increase (decrease).. 29,527 $ 491,412 (85,259) $ (1,278,208) (700) $ (10,516) (5,038) $ (85,502) ======== =========== ======== ============ ======== =========== ======== ============ Growth Opportunities Fund -------------------------------------------------------------------------------------------- Class A Class B --------------------------------------------- --------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2008 year ended March 31, 2008 year ended (unaudited) September 30, 2007 (unaudited) September 30, 2007 --------------------- ---------------------- --------------------- ---------------------- Shares Amount Shares Amount Shares Amount Shares Amount -------- ----------- -------- ------------ -------- ----------- -------- ------------ Shares sold (5)(6)(7)(8). 153,903 $ 2,738,123 467,598 $ 9,161,091 19,609 $ 292,430 57,020 $ 971,620 Reinvested dividends..... -- -- -- -- -- -- -- -- Shares redeemed (5)(6)... (361,054) (6,215,344) (607,841) (11,673,643) (219,235) (3,389,272) (584,520) (10,064,774) -------- ----------- -------- ------------ -------- ----------- -------- ------------ Net increase (decrease).. (207,151) $(3,477,221) (140,243) $ (2,512,552) (199,626) $(3,096,842) (527,500) $ (9,093,154) ======== =========== ======== ============ ======== =========== ======== ============
-------- (1)For the six months ended March 31, 2008, includes automatic conversion of 88,547 shares of Class B shares in the amount of $1,390,877 to 77,897 shares of Class A shares in the amount of $1,390,877. (2)For the year ended September 30, 2007, includes automatic conversion of 205,245 shares of Class B shares in the amount of $3,153,549 to 181,415 shares of Class A shares in the amount of $3,153,549. (3)For the six months ended March 31, 2008, includes automatic conversion of 3,097 shares of Class C shares in the amount of $47,855 to 2,704 shares of Class A shares in the amount of $47,855. (4)For the year ended September 30, 2007, includes automatic conversion of 17,217 shares of Class C shares in the amount of $262,954 to 15,124 shares of Class A shares in the amount of $262,954. (5)For the six months ended March 31, 2008, includes automatic conversion of 92,843 shares of Class B shares in the amount of $1,481,712 to 81,654 shares of Class A shares in the amount of $1,481,712. (6)For the year ended September 30, 2007, includes automatic conversion of 277,289 shares of Class B shares in the amount of $4,814,621 to 244,697 shares of Class A shares in the amount of $4,814,621. (7)For the six months ended March 31, 2008, includes automatic conversion of 3,444 shares of Class C shares in the amount of $51,483 to 3,019 shares of Class A shares in the amount of $51,483. (8)For the year ended September 30, 2007, includes automatic conversion of 15,202 shares of Class C shares in the amount of $266,305 to 13,404 shares of Class A shares in the amount of $266,305. 79 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited) (continued)
Growth Opportunities Fund ------------------------------------------------------------------------------------------- Class C Class I --------------------------------------------- -------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2008 year ended March 31, 2008 year ended (unaudited) September 30, 2007 (unaudited) September 30, 2007 --------------------- ---------------------- --------------------- --------------------- Shares Amount Shares Amount Shares Amount Shares Amount -------- ----------- -------- ------------ -------- ----------- -------- ----------- Shares sold............ 11,951 $ 175,304 73,251 $ 1,243,056 451 $ 7,822 900 $ 17,303 Reinvested dividends... -- -- -- -- -- -- -- -- Shares redeemed (7)(8). (103,968) (1,626,207) (203,387) (3,485,346) (762) (13,235) (17,924) (341,263) -------- ----------- -------- ------------ -------- ----------- -------- ----------- Net increase (decrease) (92,017) $(1,450,903) (130,136) $ (2,242,290) (311) $ (5,413) (17,024) $ (323,960) ======== =========== ======== ============ ======== =========== ======== ===========
-------- (7)For the six months ended March 31, 2008, includes automatic conversion of 3,444 shares of Class C shares in the amount of $51,483 to 3,019 shares of Class A shares in the amount of $51,483. (8)For the year ended September 30, 2007, includes automatic conversion of 15,202 shares of Class C shares in the amount of $266,305 to 13,404 shares of Class A shares in the amount of $266,305. New Century Fund ------------------------------------------------------------------------------------------- Class A Class B --------------------------------------------- -------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2008 year ended March 31, 2008 year ended (unaudited) September 30, 2007 (unaudited) September 30, 2007 --------------------- ---------------------- --------------------- --------------------- Shares Amount Shares Amount Shares Amount Shares Amount -------- ----------- -------- ------------ -------- ----------- -------- ----------- Shares sold (1)(2)(3).... 88,536 $ 1,788,717 349,824 $ 7,584,889 14,176 $ 241,623 41,725 $ 1,374,288 Shares issued in merger + -- -- 456,997 9,556,448 -- -- 378,511 6,906,165 Shares redeemed (1)(2)... (469,084) (9,221,765) (867,696) (20,403,970) (117,947) (2,064,221) (324,871) (6,113,256) -------- ----------- -------- ------------ -------- ----------- -------- ----------- Net increase (decrease).. (380,548) $(7,433,048) (60,875) $ (3,262,633) (103,771) $(1,822,598) 95,365 $ 2,167,197 ======== =========== ======== ============ ======== =========== ======== =========== New Century Fund --------------------------------------------- Class C --------------------------------------------- For the six months ended For the March 31, 2008 year ended (unaudited) September 30, 2007 --------------------- ---------------------- Shares Amount Shares Amount -------- ----------- -------- ------------ Shares sold.............. 20,176 $ 365,447 30,355 $ 1,513,139 Shares issued in merger + -- -- 263,342 4,832,027 Shares redeemed (3)...... (66,161) (1,139,855) (100,822) (1,920,423) -------- ----------- -------- ------------ Net increase (decrease).. (45,985) $ (774,408) 192,875 $ 4,424,743 ======== =========== ======== ============
-------- (1)For the six months ended March 31, 2008, includes automatic conversion of 40,621 shares of Class B shares in the amount of $740,053 to 35,265 shares of Class A shares in the amount of $740,053. (2)For the year ended September 30, 2007, includes automatic conversion of 165,359 shares of Class B shares in the amount of $3,144,259 to 144,044 shares of Class A shares in the amount of $3,144,259. (3)For the year ended September 30, 2007, includes automatic conversion of 79 shares of Class C shares in the amount of $1,590 to 69 shares of Class A shares in the amount of $1,590. + See Note 2. 80 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited) (continued)
Growth and Income Fund ----------------------------------------------------------------------------------------------- Class A Class B ------------------------------------------------ --------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2008 year ended March 31, 2008 year ended (unaudited) September 30, 2007 (unaudited) September 30, 2007 ---------------------- ------------------------ --------------------- ---------------------- Shares Amount Shares Amount Shares Amount Shares Amount -------- ------------ ---------- ------------ -------- ----------- -------- ------------ Shares sold (1)(2)(3)(4) 398,887 $ 5,948,391 1,024,726 $ 15,049,599 45,342 $ 623,266 88,044 $ 1,200,393 Reinvested dividends.... 14,377 220,109 -- -- -- -- -- -- Shares redeemed (1)(2).. (599,929) (8,907,849) (1,415,515) (20,646,675) (311,321) (4,286,048) (913,913) (12,582,078) -------- ------------ ---------- ------------ -------- ----------- -------- ------------ Net increase (decrease). (186,665) $ (2,739,349) (390,789) $ (5,597,076) (265,979) $(3,662,782) (825,869) $(11,381,685) ======== ============ ========== ============ ======== =========== ======== ============ Growth and Income Fund ----------------------------------------------------------------------------------------------- Class C Class I ------------------------------------------------ --------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2008 year ended March 31, 2008 year ended (unaudited) September 30, 2007 (unaudited) September 30, 2007 ---------------------- ------------------------ --------------------- ---------------------- Shares Amount Shares Amount Shares Amount Shares Amount -------- ------------ ---------- ------------ -------- ----------- -------- ------------ Shares sold............. 23,943 $ 332,549 69,560 $ 943,742 4,360 $ 63,218 3,981 $ 57,853 Reinvested dividends.... -- -- -- -- 95 1,451 -- -- Shares redeemed (3)(4).. (225,135) (3,071,051) (585,816) (8,047,218) (2,620) (40,406) (5,169) (76,734) -------- ------------ ---------- ------------ -------- ----------- -------- ------------ Net increase (decrease). (201,192) $ (2,738,502) (516,256) $ (7,103,476) 1,835 $ 24,263 (1,188) $ (18,881) ======== ============ ========== ============ ======== =========== ======== ============ Balanced Assets Fund ----------------------------------------------------------------------------------------------- Class A Class B ------------------------------------------------ --------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2008 year ended March 31, 2008 year ended (unaudited) September 30, 2007 (unaudited) September 30, 2007 ---------------------- ------------------------ --------------------- ---------------------- Shares Amount Shares Amount Shares Amount Shares Amount -------- ------------ ---------- ------------ -------- ----------- -------- ------------ Shares sold (5)(6)(7)(8) 265,243 $ 3,995,119 659,237 $ 9,995,580 39,387 $ 593,463 82,301 $ 1,239,592 Reinvested dividends.... 62,925 938,394 122,714 1,865,233 4,027 60,252 7,877 119,339 Shares redeemed (5)(6).. (726,281) (10,999,732) (1,840,180) (27,750,445) (171,896) (2,607,897) (595,400) (8,989,165) -------- ------------ ---------- ------------ -------- ----------- -------- ------------ Net increase (decrease). (398,113) $ (6,066,219) (1,058,229) $(15,889,632) (128,482) $(1,954,182) (505,222) $ (7,630,234) ======== ============ ========== ============ ======== =========== ======== ============
-------- (1)For the six months ended March 31, 2008, includes automatic conversion of 151,696 shares of Class B shares in the amount of $2,105,297 to 141,905 shares of Class A shares in the amount of $2,105,297. (2)For the year ended September 30, 2007, includes automatic conversion of 465,198 shares of Class B shares in the amount of $6,461,560 to 436,352 shares of Class A shares in the amount of $6,461,560. (3)For the six months ended March 31, 2008, includes automatic conversion of 40,689 shares of Class C shares in the amount of $549,547 to 38,058 shares of Class A shares in the amount of $549,547. (4)For the year ended September 30, 2007, includes automatic conversion of 102,570 shares of Class C shares in the amount of $1,439,849 to 96,087 shares of Class A shares in the amount of $1,439,849. (5)For the six months ended March 31, 2008, includes automatic conversion of 73,282 shares of Class B shares in the amount of $1,120,907 to 73,066 shares of Class A shares in the amount of $1,120,907. (6)For the year ended September 30, 2007, includes automatic conversion of 312,489 shares of Class B shares in the amount of $4,744,038 to 311,322 shares of Class A shares in the amount of $4,744,038. (7)For the six months ended March 31, 2008, includes automatic conversion of 2,036 shares of Class C shares in the amount of $29,666 to 2,034 shares of Class A shares in the amount of $29,666. (8)For the year ended September 30, 2007, includes automatic conversion of 9,120 shares of Class C shares in the amount of $137,980 to 9,106 shares of Class A shares in the amount of $137,980. 81 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited) (continued)
Balanced Assets Fund --------------------------------------------------------------------------------- Class C Class I -------------------------------------------- ----------------------------------- For the For the six months ended For the six months ended For the March 31, 2008 year ended March 31, 2008 year ended (unaudited) September 30, 2007 (unaudited) September 30, 2007 --------------------- --------------------- --------------- ------------------ Shares Amount Shares Amount Shares Amount Shares Amount -------- ----------- -------- ----------- ------ -------- ------- --------- Shares sold............ 29,596 $ 444,820 37,806 $ 565,546 1,080 $ 16,428 2,467 $ 37,069 Reinvested dividends... 3,923 58,823 6,854 104,202 406 6,049 886 13,500 Shares redeemed (7)(8). (113,370) (1,701,876) (229,341) (3,460,624) (805) (12,279) (14,882) (226,730) -------- ----------- -------- ----------- ----- -------- ------- --------- Net increase (decrease) (79,851) $(1,198,233) (184,681) $(2,790,876) 681 $ 10,198 (11,529) $(176,161) ======== =========== ======== =========== ===== ======== ======= =========
-------- (7)For the six months ended March 31, 2008, includes automatic conversion of 2,036 shares of Class C shares in the amount of $29,666 to 2,034 shares of Class A shares in the amount of $29,666. (8)For the year ended September 30, 2007, includes automatic conversion of 9,120 shares of Class C shares in the amount of $137,980 to 9,106 shares of Class A shares in the amount of $137,980.
International Equity Fund ---------------------------------------------------------------------------------------------- Class A Class B ------------------------------------------------ -------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2008 year ended March 31, 2008 year ended (unaudited) September 30, 2007 (unaudited) September 30, 2007 ---------------------- ------------------------ --------------------- --------------------- Shares Amount Shares Amount Shares Amount Shares Amount -------- ------------ ---------- ------------ -------- ----------- -------- ----------- Shares sold (1)(2)(3)(4).... 494,456 $ 9,121,233 1,360,169 $ 24,122,022 93,228 $ 1,578,189 234,766 $ 3,887,709 Reinvested dividends........ 337,952 6,106,795 -- -- 101,318 1,689,981 -- -- Shares redeemed (1)(2)...... (679,092) (12,164,868) (1,476,609) (26,115,354) (244,502) (4,031,071) (552,783) (9,228,788) -------- ------------ ---------- ------------ -------- ----------- -------- ----------- Net increase (decrease)..... 153,316 $ 3,063,160 (116,440) $ (1,993,332) (49,956) $ (762,901) (318,017) $(5,341,079) ======== ============ ========== ============ ======== =========== ======== =========== International Equity Fund ---------------------------------------------------------------------------------------------- Class C Class I ------------------------------------------------ -------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2008 year ended March 31, 2008 year ended (unaudited) September 30, 2007 (unaudited) September 30, 2007 ---------------------- ------------------------ --------------------- --------------------- Shares Amount Shares Amount Shares Amount Shares Amount -------- ------------ ---------- ------------ -------- ----------- -------- ----------- Shares sold................. 154,539 $ 2,615,105 340,641 $ 5,685,742 67,563 $ 1,242,146 140,027 $ 2,462,907 Reinvested dividends........ 130,196 2,170,365 -- -- 38,744 706,298 -- -- Shares redeemed (3)(4)(5)(6) (262,762) (4,143,594) (351,299) (5,862,416) (131,626) (2,200,647) (333,525) (5,907,477) -------- ------------ ---------- ------------ -------- ----------- -------- ----------- Net increase (decrease)..... 21,973 $ 641,876 (10,658) $ (176,674) (25,319) $ (252,203) (193,498) $(3,444,570) ======== ============ ========== ============ ======== =========== ======== ===========
-------- (1)For the six months ended March 31, 2008, includes automatic conversion of 94,046 shares of Class B shares in the amount of $1,540,281 to 87,028 shares of Class A shares in the amount of $1,540,281. (2)For the year ended September 30, 2007, includes automatic conversion of 276,480 shares of Class B shares in the amount of $4,654,844 to 258,279 shares of Class A shares in the amount of $4,654,844. (3)For the six months ended March 31, 2008, includes automatic conversion of 8,488 shares of Class C shares in the amount of $137,737 to 7,846 shares of Class A shares in the amount of $137,737. (4)For the year ended September 30, 2007, includes automatic conversion of 35,187 shares of Class C shares in the amount of $594,960 to 32,839 shares of Class A shares in the amount of $594,960. (5)For the six months ended March 31, 2008, net of redemption fees of $10,910, $2,806, $3,818, and $1,202 for Class A, Class B, Class C and Class I shares, respectively. (6)For the year ended September 30, 2007, net of redemption fees of $2,583, $771, $904, and $320 for Class A, Class B, Class C and Class I shares, respectively. 82 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited) (continued)
Value Fund Value Fund -------------------------------------------------- ----------------------------------------------- Class A Class B -------------------------------------------------- ----------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2008 year ended March 31, 2008 year ended (unaudited) September 30, 2007 (unaudited) September 30, 2007 ------------------------ ------------------------ --------------------- ------------------------ Shares Amount Shares Amount Shares Amount Shares Amount ---------- ------------ ---------- ------------ -------- ----------- ---------- ------------ Shares sold (1)(2)(3)(4). 413,647 $ 6,726,777 1,330,412 $ 24,650,750 92,920 $ 1,487,416 305,011 $ 5,377,534 Reinvested dividends..... 1,063,818 16,563,642 704,045 12,539,044 351,095 5,133,009 284,619 4,810,045 Shares redeemed (1)(2)... (1,222,244) (19,249,292) (1,963,578) (36,336,366) (509,630) (7,733,918) (1,074,442) (18,893,815) ---------- ------------ ---------- ------------ -------- ----------- ---------- ------------ Net increase (decrease).. 255,221 $ 4,041,127 70,879 $ 853,428 (65,615) $(1,113,493) (484,812) $ (8,706,236) ========== ============ ========== ============ ======== =========== ========== ============ Value Fund Value Fund -------------------------------------------------- ----------------------------------------------- Class C Class I -------------------------------------------------- ----------------------------------------------- For the For the six months ended For the six months ended For the March 31, 2008 year ended March 31, 2008 year ended (unaudited) September 30, 2007 (unaudited) September 30, 2007 ------------------------ ------------------------ --------------------- ------------------------ Shares Amount Shares Amount Shares Amount Shares Amount ---------- ------------ ---------- ------------ -------- ----------- ---------- ------------ Shares sold.............. 53,889 $ 795,744 234,527 $ 4,126,128 86 $ 1,562 654 $ 12,289 Reinvested dividends..... 203,721 2,978,405 198,577 3,355,958 348 5,401 199 3,531 Shares redeemed (3)(4)... (333,672) (5,092,619) (902,862) (15,771,477) (156) (2,249) (8,370) (162,102) ---------- ------------ ---------- ------------ -------- ----------- ---------- ------------ Net increase (decrease).. (76,062) $ (1,318,470) (469,758) $ (8,289,391) 278 $ 4,714 (7,517) $ (146,282) ========== ============ ========== ============ ======== =========== ========== ============ Value Fund -------------------------------------------------- Class Z -------------------------------------------------- For the six months ended For the March 31, 2008 year ended (unaudited) September 30, 2007 ------------------------ ------------------------ Shares Amount Shares Amount ---------- ------------ ---------- ------------ Shares sold.............. 161,536 $ 2,701,369 509,315 $ 9,851,572 Reinvested dividends..... 309,158 5,048,549 161,535 2,988,389 Shares redeemed.......... (212,166) (3,594,797) (128,127) (2,450,744) ---------- ------------ ---------- ------------ Net increase (decrease).. 258,528 $ 4,155,121 542,723 $ 10,389,217 ========== ============ ========== ============
-------- (1)For the six months ended March 31, 2008, includes automatic conversion of 157,142 shares of Class B shares in the amount of $2,474,676 to 147,872 shares of Class A shares in the amount of $2,474,676. (2)For the year ended September 30, 2007, includes automatic conversion of 559,465 shares of Class B shares in the amount of $9,849,109 to 529,830 shares of Class A shares in the amount of $9,849,109. (3)For the six months ended March 31, 2008, includes automatic conversion of 2,318 shares of Class C shares in the amount of $33,054 to 2,176 shares of Class A shares in the amount of $33,054. (4)For the year ended September 30, 2007, includes automatic conversion of 7,899 shares of Class C shares in the amount of $138,746 to 7,473 shares of Class A shares in the amount of $138,746. 83 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited) (continued)
Disciplined Growth Fund Disciplined Growth Fund --------------------------------------------- ----------------------------------------- Class A Class B --------------------------------------------- ----------------------------------------- For the For the six months ended For the six months ended For the March 31, 2008 year ended March 31, 2008 year ended (unaudited) September 30, 2007 (unaudited) September 30, 2007 --------------------- ---------------------- ------------------ --------------------- Shares Amount Shares Amount Shares Amount Shares Amount -------- ----------- -------- ------------ ------- --------- -------- ----------- Shares sold (1)(2)..... 943,794 $15,704,464 532,983 $ 7,889,774 56,424 $ 892,584 24,300 $ 356,197 Reinvested dividends... -- -- -- -- -- -- -- -- Shares redeemed (1)(2). (438,814) (6,904,913) (776,777) (11,139,424) (54,481) (855,796) (422,344) (5,886,295) -------- ----------- -------- ------------ ------- --------- -------- ----------- Net increase (decrease) 504,980 $ 8,799,551 (243,794) $ (3,249,650) 1,943 $ 36,788 (398,044) $(5,530,098) ======== =========== ======== ============ ======= ========= ======== =========== Disciplined Growth Fund --------------------------------------------- Class C --------------------------------------------- For the six months ended For the March 31, 2008 year ended (unaudited) September 30, 2007 --------------------- ---------------------- Shares Amount Shares Amount -------- ----------- -------- ------------ Shares sold............ 566,385 $ 9,249,055 158,305 $ 2,312,884 Reinvested dividends... -- -- -- -- Shares redeemed........ (262,969) (4,009,894) (559,493) (7,777,003) -------- ----------- -------- ------------ Net increase (decrease) 303,416 $ 5,239,161 (401,188) $ (5,464,119) ======== =========== ======== ============
-------- (1)For the six months ended March 31, 2008, includes automatic conversion of 22,649 shares of Class B shares in the amount of $367,202 to 21,597 shares of Class A shares in the amount of $367,202. (2)For the year ended September 30, 2007, includes automatic conversion of 285,157 shares of Class B shares in the amount of $3,980,961 to 273,229 shares of Class A shares in the amount of $3,980,961.
International Small-Cap Fund International Small-Cap Fund ------------------------------------------- -------------------------------------- Class A Class B ------------------------------------------- -------------------------------------- For the For the six months ended For the six months ended For the March 31, 2008 year ended March 31, 2008 year ended (unaudited) September 30, 2007 (unaudited) September 30, 2007 --------------------- -------------------- ------------------ ------------------ Shares Amount Shares Amount Shares Amount Shares Amount -------- ----------- ------- ----------- ------- --------- ------- --------- Shares sold (1)(2).......... 68,033 $ 892,814 335,947 $ 4,376,150 21,699 $ 269,009 43,182 $ 571,843 Reinvested dividends........ 21,169 275,413 -- -- 949 12,228 -- -- Shares redeemed (1)(2)(3)(4) (154,046) (1,966,703) (83,528) (1,082,480) (14,198) (173,385) (11,022) (145,437) -------- ----------- ------- ----------- ------- --------- ------- --------- Net increase (decrease)..... (64,844) $ (798,476) 252,419 $ 3,293,670 8,450 $ 107,852 32,160 $ 426,406 ======== =========== ======= =========== ======= ========= ======= ========= International Small-Cap Fund ------------------------------------------- Class C ------------------------------------------- For the six months ended For the March 31, 2008 year ended (unaudited) September 30, 2007 --------------------- -------------------- Shares Amount Shares Amount -------- ----------- ------- ----------- Shares sold................. 17,134 $ 227,610 152,986 $ 2,062,450 Reinvested dividends........ 4,084 52,562 -- -- Shares redeemed (3)(4)...... (81,460) (928,587) (72,183) (878,788) -------- ----------- ------- ----------- Net increase (decrease)..... (60,242) $ (648,415) 80,803 $ 1,183,662 ======== =========== ======= ===========
-------- (1)For the six months ended March 31, 2008, includes automatic conversion of 2,232 shares of Class B shares in the amount of $26,898 to 2,210 shares of Class A shares in the amount of $26,898. (2)For the year ended September 30, 2007, includes automatic conversion of 6,170 shares of Class B shares in the amount of $82,165 to 6,131 shares of Class A shares in the amount of $82,165. (3)For the six months ended March 31, 2008, net of redemption fees of $1,288, $53, and $227 for Class A, Class B, and Class C shares, respectively. (4)For the year ended September 30, 2007, net of redemption fees of $1,504, $47, and $218 for Class A, Class B, and Class C shares, respectively. 84 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited) (continued) Note 9. Line of Credit The AIG SunAmerica Family of Mutual Funds has established a $75 million committed and $50 million uncommitted lines of credit with State Street Bank and Trust Company, the Funds' custodian. Interest is currently payable at the Federal Funds Rate plus 50 basis points on the committed line and State Street Bank and Trust Company's discretionary bid rate on the uncommitted line of credit. There is also a commitment fee of 10 basis points per annum on the daily unused portion of the committed line of credit which is included in other expenses on the Statement of Operations. Borrowings under the line of credit will commence when the respective Fund's cash shortfall exceeds $100,000. For the six months ended March 31, 2008, the following Funds had borrowings:
Days Interest Average Weighted Portfolio Outstanding Charges Debt Average Growth and Income...... 1 $ 130 $1,287,383 3.63% Balanced Assets........ 6 427 480,844 5.32 International Equity... 8 719 636,517 4.84 Disciplined Growth..... 8 943 823,107 5.10 International Small-Cap 31 1,155 393,974 3.68
At March 31, 2008, there were no borrowings outstanding. Note 10. Interfund Lending Agreement Pursuant to exemptive relief granted by the SEC, the Funds are permitted to participate in an interfund lending program among investment companies advised by AIG SunAmerica or an affiliate. The interfund lending program allows the participating Funds to borrow money from and loan money to each other for temporary or emergency purposes. An interfund loan will be made under this facility only if the participating Funds receive a more favorable interest rate than would otherwise be available from a typical bank for a comparable transaction. For the six months ended March 31, 2008, none of the Funds participated in this program. Note 11. Trustees Retirement Plan The Trustees of the Trust have adopted the AIG SunAmerica Disinterested Trustees' and Directors' Retirement Plan (the "Retirement Plan") effective January 1, 1993, as amended December 9, 2006, for the unaffiliated Trustees. The Retirement Plan provides generally that an unaffiliated Trustee may become a participant ("Participant") in the Retirement Plan if he or she has at least 10 years of consecutive service as a Disinterested Trustee of any of the adopting AIG SunAmerica mutual funds (the "Adopting Funds") or has attained the age of 60 while a Trustee and completed five (5) consecutive years of service as a Trustee of any Adopting Fund (an "Eligible Trustee"). Pursuant to the Retirement Plan, an Eligible Trustee may receive benefits upon (i) his or her death or disability while a Trustee or (ii) the termination of his or her tenure as a Trustee, other than removal for cause from each of the Adopting Funds with respect to which he or she is an Eligible Trustee. As of each of the first 10 birthdays after becoming a Participant and on which he or she is both a Trustee and Participant, each Eligible Trustee will be credited with an amount equal to 50% of his or her regular fees (excluding committee fees) for services as a Disinterested Trustee of each Adopting Fund for the calendar year in which such birthday occurs. In addition, an amount equal to 8.50% of any amounts credited under the preceding statement during prior years is added to each Eligible Trustee's account. The rights of any Participant to benefits under the Retirement Plan shall be an unsecured claim against the assets of the Adopting Funds. An Eligible Trustee may receive any benefits payable under the Retirement Plan, at his or her election, either in one lump sum or in up to 15 annual installments. Any undistributed amounts shall continue to accrue interest at 8.50%. 85 SunAmerica Equity Funds NOTES TO FINANCIAL STATEMENTS -- March 31, 2008 -- (unaudited) (continued) 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, 2008 ---- ----------------------------------------------- Blue Chip Growth.............. $28,148 $ 908 $1,048 Growth Opportunities.......... 24,321 775 776 New Century................... 48,491 1,158 1,926 Growth and Income............. 38,330 1,382 1,103 Balanced Assets............... 75,986 1,958 3,036 International Equity.......... 19,308 1,631 571 Value......................... 34,110 2,768 918 Disciplined Growth............ 11,365 887 273 International Small-Cap Equity 617 367 --
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, 2008, the International Small-Cap Fund had approximately 18% and 25% of their net assets invested in equity securities of companies domiciled in United Kingdom and Japan, respectively. Note 13. Other Matters On December 31, 2007 Ernst & Young, LLP ("E&Y") resigned as the independent registered public accounting firm of the Equity Funds. On March 5, 2008, the Board of Trustees of the Equity Funds selected PricewaterhouseCoopers, LLP as the new independent registered public accounting firm for the Equity Funds. E&Y's reports on the Equity Fund's financial statements for the two most recent fiscal years contained no adverse opinion or disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principles. During the period E&Y was engaged, there were no disagreements with E&Y on any matter of accounting principles, financial statement disclosure or auditing scope or procedures, which disagreements, if not resolved to the satisfaction of E&Y, would have caused it to make reference to the subject matter of the disagreements in connection with its reports on the Equity Fund's financial statements. 86 [LOGO] AIG Sun America Mutual Funds Harborside Financial Center 3200 Plaza 5 Jersey City, NJ 07311-4992 Trustees Shareholder Servicing This report is submitted Samuel M. Eisenstat Agent solely for the general Peter A. Harbeck AIG SunAmerica Fund information of Dr. Judith L. Craven Services, Inc. shareholders of the William F. Devin Harborside Financial Funds. Distribution of Stephen J. Gutman Center this report to persons Jeffrey S. Burum 3200 Plaza 5 other than shareholders William J. Shea Jersey City, NJ of the Funds is 07311-4992 authorized only in Officers con-nection with a 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 Gibbons, Vice A description of the policy that allows them President and Chief policies and procedures to send only one copy of Compliance Officer that the Trust uses to a Fund's prospectus, Gregory N. Bressler, determine how to vote proxy material, annual Chief Legal Officer proxies relating to report and semi-annual and Secretary securities held in a report (the "shareholder Gregory R. Kingston, Fund's portfolio which is documents") to Vice President and available in the Trust's shareholders with Assistant Treasurer Statement of Additional multiple accounts Kathleen Fuentes, Information, may be residing at the same Assistant Secretary obtained without charge "household." This John E. McLean, upon request, by calling practice is called Assistant Secretary (800) 858-8850. This householding and reduces Richard Barton, in-formation is also Fund expenses, which Assistant Secretary available from the EDGAR benefits you and other Nori L. Gabert, Vice database on the U.S. shareholders. Unless the President and Securities and Ex-change Funds receive Assistant Secretary Commission's website at instructions to the Matthew Hackethal, http://www.sec.gov. con-trary, you will only Anti-Money Laundering receive one copy of the Compliance Officer PROXY VOTING RECORD ON shareholder documents. John E. Smith Jr., SUNAMERICA EQUITY FUNDS The Funds will continue Assistant Treasurer Information regarding how to household the SunAmerica Equity Funds share-holder documents Investment Adviser voted proxies relating to indefinitely, until we AIG SunAmerica Asset securities held in are instructed otherwise. Management Corp. SunAmerica Equity Funds If you do not wish to Harborside Financial during the most recent participate in Center twelve month period ended householding, please 3200 Plaza 5 June 30 is available, contact Shareholder Jersey City, NJ once filed with the U.S. Services at (800) 07311-4992 Securities and Exchange 858-8850 ext. 6010 or Commission, without send a written request Distributor charge, upon request, by with your name, the name AIG SunAmerica Capital calling (800) 858-8850 or of your fund(s) and your Services, Inc. on the U.S. Securities account number(s) to AIG Harborside Financial and Exchange Commission's SunAmerica Mutual Funds Center website at c/o BFDS, P.O. Box 3200 Plaza 5 http://www.sec.gov. 219186, Kansas City MO, Jersey City, NJ 64121-9186. We will 07311-4992 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).
87 Distributed by: AIG 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 AIG SunAmerica Sales Desk at 800-858-8850, ext. 6003, or at www.sunamericafunds.com. Read the prospectus carefully before investing. www.sunamericafunds.com EQSAN - 3/08 [LOGO] AIG Sun America Mutual Funds live longer retire stronger/sm/ Item 2. Code of Ethics Not applicable. Item 3. Audit Committee Financial Expert. Not applicable. Item 4. Principal Accountant Fees and Services. Not applicable. Item 5. Audit Committee of Listed Registrants. Not applicable. Item 6. Schedule of Investments. Included in Item 1 to the Form. Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable. Item 8. Portfolio Managers of Closed-End Management Investment Companies. Not applicable. Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. Not applicable. Item 10. Submission of Matters to a Vote of Security Holders. There were no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board of Trustees that were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 299.407) (as required by 22(b)(15)) of Schedule 14A (17 CFR 240.14a- 101), or this Item 10. Item 11. Controls and Procedures. (a) An evaluation was performed within 90 days of the filing of this report, under the supervision and with the participation of the registrant's management, including the President and Treasurer, of the effectiveness of the design and operation of the registrant's disclosure controls and procedures, as defined under Rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270. 30a-3(c)). Based on that evaluation, the registrant's management, including the President and Treasurer, concluded that the registrant's disclosure controls and procedures are effective. (b) There was no change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d))) that occurred during the 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 6, 2008 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 6, 2008 By: /s/ Donna M. Handel ------------------- Donna M. Handel Treasurer Date: June 6, 2008