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 811-21805
---------------------------------------------
SunAmerica Focused Alpha Large-Cap Fund, Inc.
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(Exact name of registrant as specified in charter)
Harborside Financial Center, 3200 Plaza 5 Jersey City, NJ 07311
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(Address of principal executive offices) (Zip code)
Vincent M. Marra
Senior Vice President
AIG SunAmerica Asset Management Corp.
Harborside Financial Center,
3200 Plaza 5
Jersey City, NJ 07311
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(Name and address of agent for service)
Registrant's telephone number, including area code: (201) 324-6464
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Date of fiscal year end: December 31
--------------------------
Date of reporting period: June 30, 2007
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Item 1. Reports to Stockholders
SUNAMERICA
FOCUSED
ALPHA LARGE-CAP
FUND (FGI)
[PHOTOGRAPH OF ROBERT C. DOLL]
BLACKROCK
[PHOTOGRAPH OF THOMAS F. MARSICO]
MARSICO
CAPITAL MANAGEMENT, LLC
2007
SEMI-ANNUAL REPORT
AIG SUNAMERICA MUTUAL FUNDS
JUNE 30, 2007 SEMI-ANNUAL REPORT
SUNAMERICA FOCUSED ALPHA LARGE-CAP FUND, INC.
SUNAMERICA FOCUSED ALPHA LARGE-CAP FUND (FGI)
TABLE OF CONTENTS
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SHAREHOLDERS' LETTER........................................ 1
STATEMENT OF ASSETS AND LIABILITIES......................... 3
STATEMENT OF OPERATIONS..................................... 4
STATEMENT OF CHANGES IN NET ASSETS.......................... 5
FINANCIAL HIGHLIGHTS........................................ 6
PORTFOLIO OF INVESTMENTS.................................... 7
NOTES TO FINANCIAL STATEMENTS............................... 9
DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN................ 15
RESULTS OF ANNUAL SHAREHOLDER MEETING....................... 16
June 30, 2007 SEMI-ANNUAL REPORT
SHAREHOLDERS' LETTER
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Dear Shareholders:
We are pleased to present the semi-annual report for the SunAmerica
Focused Alpha Large-Cap Fund (the "Fund") and thank you for including this
strategic investment solution in your investment plan.
In the six-month period commencing January 1, 2007 through June 30, 2007,
the Fund's Net Asset Value (NAV) returned 7.42%. The Fund's market price
returned 6.02% for the same period. The Fund's benchmark, the Russell 1000
Value Index(1), returned 6.23% during this same period.
As of June 30, 2007, the Fund's NAV was $21.10 and its market share price
was $18.91.
U.S. equity markets yielded strong overall results year-to-date,
withstanding a variety of challenges that included contradictory economic
signals, continued housing weakness and sub-prime lending woes. In
addition, the markets also faced sharply rising oil prices and fading
hopes for an interest rate cut during the six-month period. For the past
six months, the Federal Reserve Board ("Fed") has kept the target federal
funds rate unchanged at 5.25%. Its meeting on June 28, 2007 marked the
eighth consecutive pause, following increases at each of its 17 meetings
held between June 2004 and June 2006.
From January 1, 2007 until June 30, 2007, the broad-market S&P 500(R)
Index(2) rose 6.96% as strong deal activity, solid global growth and an
easing of inflation pressures helped to drive up stock prices. Large-cap
"growth" generally outperformed large-cap "value" stocks during this time.
The Russell 1000(R) Growth Index(3) returned 8.13% versus the 6.23% return
of the Russell 1000 Value Index(1). This was due in great part to improved
performance in the Telecommunications and Information Technology sectors
while higher interest rates have pressured other areas of the markets
including real estate, diversified financial services and utilities.
The Fund's relative return during the reporting period was enhanced by
security selection and an underweight allocation to Financials as well as
security selection and an overweight allocation in Energy. Overweight
allocations in the Information Technology and Telecommunication Services
sectors also contributed on the upside. Specific holdings in the
weak-performing Consumer Discretionary, Hotel and Real Estate sectors hurt
returns.
As you know, SunAmerica Focused Alpha Large-Cap Fund is unique and we
value your ongoing confidence in us. What sets the Fund apart from its
competitors in the marketplace is its multi-managed, focused approach in a
closed-end fund structure. The Fund brings together two of Wall Street's
best known large-cap equity managers, Marsico Capital Management LLC and
Blackrock Investment Management, LLC. Marsico emphasizes large growth
investing while Blackrock's Bob Doll and his team favor a large-cap value
investment style. Together, their stock picks, blending large-cap growth
and large-cap value, are designed to generate Alpha through exposure to
different styles of large-cap investing. This strategy is designed to
provide enhanced returns over the long term.
We look forward to serving your investment needs in the future.
Sincerely,
/s/ Peter A. Harbeck
Peter A. Harbeck
President and CEO
AIG SunAmerica Asset Management Corp.
------------------
(1) The Russell 1000 Value Index measures the performance of those Russell
1000 companies with lower price-to-book ratios and lower forecasted
growth values. The Russell 1000 Index is a comprehensive large-cap
index measuring the performance of the largest 1,000 U.S. incorporated
companies.
(2) The S&P 500 is the Standard & Poor's 500 composite Stock Price Index,
a widely recognized, unmanaged index of common stock prices.
(3) The Russell 1000 Growth Index measures the performance of those
Russell 1000 companies with higher price-to-book ratios ad higher
forecasted growth values. The Russell 1000 Index is a comprehensive
large-cap index measuring the performance of the largest 1,000 U.S.
incorporated companies. Indices are not managed and an investor cannot
invest directly into an index.
Indices are not managed and an investor cannot invest directly into an
index.
1
SHAREHOLDERS' LETTER -- (CONTINUED)
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---------------------------
Investors should carefully consider the SunAmerica Focused Alpha Large-Cap
Fund's investment objective, strategies, risks, charges and expenses
before investing. The SunAmerica Focused Alpha Large-Cap Fund should be
considered as only one element of a complete investment program. The
Fund's equity exposure and derivative investments involve special risks.
An investment in this Fund should be considered speculative. There is no
assurance that the SunAmerica Focused Alpha Large-Cap Fund will achieve
its investment objectives. The Fund is actively managed and its portfolio
composition will vary. Investing in the Fund is subject to several risks,
including: Non-Diversified Status Risk, Growth and Value Stock Risk, Key
Adviser Personnel Risk, Investment and Market Risk, Issuer Risk, Foreign
Securities Risk, Emerging Markets Risk, Income Risk, Hedging Strategy
Risk, Derivatives Risk, Preferred Securities Risk, Debt Securities Risk,
Small and Medium Capitalization Company Risk, Leverage Risk, Liquidity
Risk, Market Price of Shares Risk, Management Risk, Anti-Takeover
Provisions Risk, Portfolio Turnover Risk and Non-Investment Grade
Securities Risk. The price of shares of the Fund traded on the New York
Stock Exchange will fluctuate with market conditions and may be worth more
or less than their original offering price. Shares of closed-end funds
often trade at a discount to their net asset value, but may also trade at
a premium.
2
SUNAMERICA FOCUSED ALPHA LARGE-CAP FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES -- JUNE 30, 2007 -- (UNAUDITED)
--------------------------------------------------------------------------------
ASSETS:
Long-term investment securities, at value (unaffiliated)*... $200,927,377
Short-term investment securities, at value
(unaffiliated)*........................................... 4,911,000
------------
Total investments......................................... 205,838,377
------------
Cash........................................................ 1,115
Receivable for:
Dividends and interest.................................... 163,623
Investments sold.......................................... 7,232,691
Prepaid expenses and other assets........................... 3,360
------------
Total assets.............................................. 213,239,166
------------
LIABILITIES:
Payable for:
Investments purchased..................................... 9,228,264
Investment advisory and management fees................... 172,889
Administration fees....................................... 6,916
Directors' fees and expenses.............................. 501
Other accrued expenses.................................... 103,320
------------
Total liabilities......................................... 9,511,890
------------
Net Assets.............................................. $203,727,276
============
NET ASSETS REPRESENTED BY:
Common stock, $0.001 par value (200,000,000 shares
authorized)............................................... $ 9,655
Additional paid-in capital.................................. 173,844,453
------------
173,854,108
Accumulated undistributed net investment income (loss)
(unaffiliated)............................................ (6,055,454)
Accumulated undistributed net realized gain (loss) on
investments (unaffiliated)................................ 6,905,271
Unrealized appreciation (depreciation) on investments
(unaffiliated)............................................ 29,023,351
------------
Net Assets.............................................. $203,727,276
============
NET ASSET VALUES:
Net assets.................................................. $203,727,276
Shares outstanding.......................................... 9,655,236
Net Asset value per share................................... $ 21.10
============
*Cost
Long-term investment securities (unaffiliated)............ $171,904,026
============
Short-term investment securities (unaffiliated)........... $ 4,911,000
============
See Notes to Financial Statements
3
SUNAMERICA FOCUSED ALPHA LARGE-CAP FUND, INC.
STATEMENT OF OPERATIONS -- FOR THE PERIOD ENDED JUNE 30, 2007 -- (UNAUDITED)
--------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends (unaffiliated).................................... $ 913,233
Interest (unaffiliated)..................................... 49,744
-----------
Total investment income*.................................. 962,977
-----------
EXPENSES:
Investment advisory and management fees..................... 1,012,147
Administration fees......................................... 40,486
Transfer agent fees and expenses............................ 10,498
Custodian and accounting fees............................... 22,832
Reports to shareholders..................................... 36,409
Audit and tax fees.......................................... 13,756
Legal fees.................................................. 37,105
Directors' fees and expenses................................ 26,941
Other expenses.............................................. 25,146
-----------
Total expenses before custody credits..................... 1,225,320
Custody credits earned on cash balances................... (26)
Fees paid indirectly (Note 4)............................. (4)
-----------
Net expenses.............................................. 1,225,290
-----------
Net investment income (loss)................................ (262,313)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)...... 7,350,282
-----------
Change in unrealized appreciation (depreciation) on
investments (unaffiliated)................................ 7,255,553
-----------
Net realized and unrealized gain (loss) on investments and
foreign currencies........................................ 14,605,835
-----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $14,343,522
===========
------------
* Net of foreign withholding taxes on interest and dividends
of........................................................ $ 4,907
===========
See Notes to Financial Statements
4
SUNAMERICA FOCUSED ALPHA LARGE-CAP FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
FOR THE
SIX MONTH ENDED FOR THE
JUNE 30, 2007 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2006
----------------- --------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss).............................. $ (262,313) $ 1,070
Net realized gain (loss) on investments and foreign
currencies.............................................. 7,350,282 957,618
Net unrealized gain (loss) on investments and foreign
currencies.............................................. 7,255,553 21,767,798
------------ ------------
Net increase (decrease) in net assets resulting from
operations................................................ 14,343,522 22,726,486
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income..................................... --* (9,064)
Net realized gain on investments.......................... (779,211)* (1,402,629)
Return of capital......................................... (5,013,931)* (10,174,590)
------------ ------------
Total distributions to shareholders......................... (5,793,141) (11,586,283)
------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS..................... 8,550,381 11,140,203
NET ASSETS:
Beginning of period......................................... $195,176,895 $184,036,692
------------ ------------
End of period+.............................................. $203,727,276 $195,176,895
============ ============
------------
+ Includes accumulated undistributed net investment income
(loss).................................................... $ (6,055,454) $ --
============ =============
* Amounts estimated are for net investment income, net
realized short-term capital gains and return of capital as
of June 30, 2007, and are subject to change and
recharacterization at fiscal year end.
See Notes to Financial Statements
5
SUNAMERICA FOCUSED ALPHA LARGE-CAP FUND, INC.
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE YEAR FOR THE PERIOD
JUNE 30, 2007 ENDED DECEMBER 28, 2005++
(UNAUDITED) DECEMBER 31, 2006 TO DECEMBER 31, 2005
----------------- -------------------- --------------------
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 20.21 $ 19.06 $ 19.10(1)
INVESTMENT OPERATIONS:
Net investment income (loss) @.............................. (0.03) (0.00) 0.00
Net realized and unrealized gain (loss) on investments...... 1.52 2.35 --
-------- -------- --------
Total from investment operations.......................... 1.49 2.35 --
-------- -------- --------
DISTRIBUTIONS FROM:
Net investment income....................................... --* (0.00) --
Net realized gains on investments........................... (0.08)* (0.15) --
Return of capital........................................... (0.52)* (1.05) --
-------- -------- --------
Total distributions....................................... (0.60) (1.20) --
CAPITAL SHARE TRANSACTIONS:
Offering costs for common shares charged to additional
paid-in capital........................................... -- -- (0.04)
-------- -------- --------
NET ASSET VALUE, END OF PERIOD.............................. $ 21.10 $ 20.21 $ 19.06
======== ======== ========
NET ASSET VALUE TOTAL RETURN #(2)........................... 7.42% 12.77%(4) (0.21)%
MARKET VALUE, END OF PERIOD................................. $ 18.91 $ 18.40 $ 20.00
MARKET VALUE TOTAL RETURN #(3).............................. 6.02% (1.53)% 0.00%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of period ($000's).......................... $203,727 $195,177 $184,037
Ratio of expenses to average net assets(5).................. 1.22% 1.23% 0.03%+
Ratio of net investment income (loss) to average net
assets(5)................................................. (0.26)% 0.00% 0.00%+
Portfolio turnover rate..................................... 32% 91% 0%
------------
++ Commencement of operations
@ Calculated based upon average shares outstanding
* Amounts estimated are for net investment income, net realized short-term
capital gains and return of capital as of June 30, 2007, and are subject to
change and recharacterization at fiscal year end.
# Total return is not annualized.
+ Due to commencing operations on December 28, 2005, the ratio of expenses and
ratio of net investment income are not annualized. If the ratios were
annualized, the ratio of expenses and the ratio of net investment income
would have been 3.07% and 0.38%, respectively. The ratios are not
representative of a full year of operations.
(1) Net asset value, beginning of the period, reflects a deduction of $0.90 per
share sales change from the initial offering price if $20.00.
(2) Based on the net asset value per share, dividends and distributions, if any,
are assumed for purposes of this calculation to be reinvested at prices
obtained under the Fund's dividend reinvestment plan. NAV performance
reflects performance without imposition of initial sales charge in
connection with the initial public offering of the Fund and would be lower
if included.
(3) Based on market value per share, dividends and distributions, if any, are
assumed for purposes of this calculation to be reinvested at prices obtained
under the Fund's dividend reinvestment plan.
(4) The Fund's performance figure was increased by 0.11% from gains on the
disposal of investments in violation of investment restrictions.
(5) Excludes expense reductions. If expense reductions had been applied, the
ratio of expenses and net investment income to average net assets would have
remained the same.
See Notes to Financial Statements
6
SUNAMERICA FOCUSED ALPHA LARGE-CAP FUND, INC.
PORTFOLIO PROFILE -- JUNE 30, 2007 -- (UNAUDITED)
--------------------------------------------------------------------------------
INDUSTRY ALLOCATION*
Oil Companies-Integrated.................................. 12.2%
Computers................................................. 10.4
Telephone-Integrated...................................... 8.5
Aerospace/Defense......................................... 7.3
Casino Hotels............................................. 6.2
Pharmacy Services......................................... 5.4
Health Care Cost Containment.............................. 5.3
Office Automation & Equipment............................. 5.3
Cable TV.................................................. 5.2
Medical-HMO............................................... 5.2
Retail-Restaurants........................................ 4.9
Insurance-Property/Casualty............................... 4.5
Cellular Telecom.......................................... 3.4
Medical-Biomedical/Gene................................... 3.2
Finance-Investment Banker/Broker.......................... 3.1
Auto-Cars/Light Trucks.................................... 3.0
Data Processing/Management................................ 2.8
Time Deposits............................................. 2.4
Medical-Drugs............................................. 1.4
Real Estate Investment Trusts............................. 1.3
-----
101.0%
=====
------------
* Calculated as a percentage of Net Assets
7
SUNAMERICA FOCUSED ALPHA LARGE-CAP FUND, INC.
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2007 -- (UNAUDITED)
--------------------------------------------------------------------------------
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
-------------------------------------------------------------------
COMMON STOCK -- 98.6%
AEROSPACE/DEFENSE -- 7.3%
Lockheed Martin Corp. ............. 66,286 $ 6,239,501
Raytheon Co. ...................... 160,000 8,622,400
------------
14,861,901
------------
AUTO-CARS/LIGHT TRUCKS -- 3.0%
Toyota Motor Co. ADR............... 48,077 6,051,933
------------
CABLE TV -- 5.2%
Comcast Corp. Class A+............. 375,085 10,547,390
------------
CASINO HOTELS -- 6.2%
Las Vegas Sands Corp.+............. 70,723 5,402,530
Wynn Resorts, Ltd. ................ 81,413 7,301,932
------------
12,704,462
------------
CELLULAR TELECOM -- 3.4%
America Movil SAB de CV ADR........ 112,529 6,968,921
------------
COMPUTERS -- 10.4%
Hewlett-Packard Co. ............... 240,000 10,708,800
International Business Machines
Corp. ........................... 100,000 10,525,000
------------
21,233,800
------------
DATA PROCESSING/MANAGEMENT -- 2.8%
Mastercard, Inc., Class A.......... 35,073 5,817,558
------------
FINANCE-INVESTMENT BANKER/BROKER -- 3.1%
The Goldman Sachs Group, Inc. ..... 28,981 6,281,632
------------
HEALTH CARE COST CONTAINMENT -- 5.3%
McKesson Corp. .................... 180,000 10,735,200
------------
INSURANCE-PROPERTY/CASUALTY -- 4.5%
The Travelers Cos., Inc. .......... 170,000 9,095,000
------------
MEDICAL-BIOMEDICAL/GENE -- 3.2%
Genentech, Inc.+................... 85,019 6,432,537
------------
MEDICAL-DRUGS -- 1.4%
Schering-Plough Corp. ............. 94,706 2,882,851
------------
MEDICAL-HMO -- 5.2%
UnitedHealth Group, Inc. .......... 208,633 10,669,492
------------
OFFICE AUTOMATION & EQUIPMENT -- 5.3%
Xerox Corp.+....................... 590,000 10,903,200
------------
SHARES/
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
-------------------------------------------------------------------
OIL COMPANIES-INTEGRATED -- 12.2%
Chevron Corp. ..................... 130,000 $ 10,951,200
Marathon Oil Corp. ................ 160,000 9,593,600
Petroleo Brasileiro SA ADR......... 34,829 4,223,713
------------
24,768,513
------------
PHARMACY SERVICES -- 5.4%
Medco Health Solutions, Inc.+...... 140,000 10,918,600
------------
REAL ESTATE INVESTMENT TRUSTS -- 1.3%
ProLogis........................... 48,214 2,743,377
------------
RETAIL-RESTAURANTS -- 4.9%
McDonald's Corp. .................. 198,264 10,063,881
------------
TELEPHONE-INTEGRATED -- 8.5%
AT&T, Inc. ........................ 151,473 6,286,129
Qwest Communications International,
Inc.+............................ 1,130,000 10,961,000
------------
17,247,129
------------
TOTAL LONG-TERM INVESTMENT SECURITIES
(cost $171,904,026)................ 200,927,377
------------
SHORT-TERM INVESTMENT SECURITIES -- 2.4%
TIME DEPOSITS -- 2.4%
Euro Time Deposit with State Street
Bank & Trust Co.
1.80% due 07/02/07............... $ 405,000 405,000
Euro Time Deposit with State Street
Bank & Trust Co.
2.80% due 07/02/07............... 4,506,000 4,506,000
------------
TOTAL SHORT-TERM INVESTMENT
SECURITIES
(cost $4,911,000).................. 4,911,000
------------
TOTAL INVESTMENTS
(cost $176,815,026) (1)............ 101.0% 205,838,377
Liabilities in excess of other
assets............................. (1.0) (2,111,101)
---------- ------------
NET ASSETS........................... 100.0% $203,727,276
========== ============
------------
+ Non-income producing security
(1) See Note 7 for cost of investments on a tax basis
ADR -- American Depository Receipt
See Notes to Financials Statements
8
SUNAMERICA FOCUSED ALPHA LARGE-CAP FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2007 -- (UNAUDITED)
--------------------------------------------------------------------------------
Note 1. Organization of the Fund
SunAmerica Focused Alpha Large-Cap Fund, Inc. ("the Fund") is a
non-diversified closed-end management investment company. The Fund is traded
on the New York Stock Exchange ("NYSE") under the ticker symbol FGI. The
Fund was organized as a Maryland corporation on September 7, 2005 and is
registered under the Investment Company Act of 1940, as amended, (the "1940
Act"). The Fund sold 5,236 of its common stock shares ("Shares") on November
14, 2005 to AIG SunAmerica Asset Management Corp. (the "Adviser" or "AIG
SunAmerica"), an indirect wholly-owned subsidiary of America International
Group, Inc. ("AIG"). Investment operations commenced on December 28, 2005
upon settlement of the sale of 9,650,000 Shares in the amount of
$184,315,000 (net of underwriting fees and expenses of $8,685,000). AIG
SunAmerica paid certain organizational expenses of the Fund and then
offering costs of the Fund to the extent they exceeded $.04 per share of the
Fund's common stock.
The Fund's investment objective is to provide growth of capital. The Fund
seeks to pursue this objective by employing a concentrated stock picking
strategy in which the Fund, through subadvisers selected by the Adviser,
actively invests primarily in a small number of equity securities (i.e.,
common stocks) of large-capitalization companies and to a lesser extent in
equity-related securities (i.e., preferred stocks, convertible securities,
warrants and rights) of large-capitalization companies primarily in the U.S.
markets. Under normal market conditions, the Fund will invest at least 80%
of its net assets, plus any borrowing for investment purposes, in
large-capitalization companies.
INDEMNIFICATIONS: Under the Fund's organizational documents, its officers
and directors are indemnified against certain liability arising out of the
performance of their duties to the Fund. In addition, in the normal course
of business the Fund enters into contracts that contain the obligation to
indemnify others. The Fund's maximum exposure under these arrangements is
unknown. Currently, however, the Fund expects the risk of loss to be remote.
Note 2. 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 Fund in the preparation of its financial statements:
SECURITY VALUATION: 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 NYSE, securities traded primarily
on security exchanges outside the U.S. are valued at the last sale price on
such exchanges on the day of valuation, or if there is no sale on the day of
valuation, at the last-reported bid price. If a security's price is
available from more than one exchange, the Fund 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
the 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 the 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 Directors (the
"Board" or the "Directors") to reflect what it believes to be the fair value
of the securities as of the close of regular trading on the NYSE. The Fund
may also fair value securities in other situations, for example, when a
particular foreign market is closed but the Fund is open. For foreign equity
securities, the Fund uses an outside pricing service to provide it with
closing market prices and information used for adjusting those prices.
9
SUNAMERICA FOCUSED ALPHA LARGE-CAP FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2007 -- (UNAUDITED) -- (CONTINUED)
--------------------------------------------------------------------------------
Short-term securities with 60 days or less to maturity are amortized to
maturity based on their cost to the Fund if acquired within 60 days of
maturity or, if already held by the Fund on the 60th day, are amortized to
maturity based on the value determined on the 61st day.
Securities for which market quotations are not readily available or where a
development/significant event occurs that may significantly impact the value
of the security, are fair valued, as determined pursuant to procedures
adopted in good faith by the Board.
REPURCHASE AGREEMENTS: The Fund may enter into repurchase agreements. When
the Fund enters into a repurchase agreement the Fund's custodian takes
possession of the collateral pledged for investments in repurchase
agreements. The underlying collateral is valued daily on a mark to market
basis to ensure that the value, including accrued interest, is at least 102%
of the repurchase price. In the event of default of the obligation to
repurchase, a Fund has the right to liquidate the collateral and apply the
proceeds in satisfaction of the obligation. If the seller defaults and the
value of the collateral declines or if bankruptcy proceedings are commenced
with respect to the seller of the security, realization of the collateral by
the portfolio may be delayed or limited. At June 30, 2007, the Fund did not
invest in any repurchase agreements.
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. 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. Interest earned on cash balances held at the custodian are
shown as custody credits on the Statement of Operations.
The Fund has adopted a distribution policy (the "Distribution Policy") under
which the Fund will pay level quarterly dividend distributions, subject to
an adjusting dividend distribution in the fourth quarter as described below.
The Distribution Policy and the dividend distribution rate may be terminated
or modified at any time. The Fund intends to pay a level quarterly amount in
each of the first three quarters of the calendar year and increase, if
necessary, the amount payable for the fourth quarter to an amount expected
to satisfy the minimum distribution requirements of the Internal Revenue
Code of 1986, as amended (the "Code"), or as necessary to distribute
long-term capital gains in a manner consistent with the requirements of the
1940 Act, as amended, whichever is greater. Each quarter the Board will
review the amount of any potential dividend distribution and the income,
capital gains and capital available. A portion of the dividend distribution
may be treated as ordinary income (derived from short-term capital gains)
and qualifying dividend income for individuals. If the Fund does not
generate earnings from dividends, interest and net realized capital gains
equal to or in excess of the aggregate dividend distributions paid by the
Fund for the year, then the amount distributed in excess of the Fund's
investment income and net realized capital gains may be deemed a tax return
of capital. The final determination of the source of all dividend
distributions in 2007 will be made after year-end. The Distribution Policy
may, under certain circumstances, have certain adverse consequences to the
Fund and its shareholder because it may result in a return of capital
resulting in less of a shareholder's assets being invested in the Fund and,
over time, increase the Fund's expense ratio. The Distribution Policy also
may cause the Fund to sell a security at a time it would not otherwise do so
in order to manage the distribution of income and/or gains.
The Fund intends to comply with the requirements of the Code, applicable to
regulated investment companies and distribute all of their taxable income,
including any net realized gain on investments, to its shareholders.
Therefore, no federal tax provisions are required.
10
SUNAMERICA FOCUSED ALPHA LARGE-CAP FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2007 -- (UNAUDITED) -- (CONTINUED)
--------------------------------------------------------------------------------
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
financial statement reporting period for fiscal years beginning after
December 15, 2006. Management has 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 June 30, 2007, the Funds do
not believe the adoption of FAS 157 will impact the amounts reported in the
financial statements, however, additional disclosures will be required about
the inputs used to develop the measurements of fair value.
Note 3. Investment Advisory and Management Agreement
Pursuant to its Investment Advisory and Management Agreement ("Advisory
Agreement") with the Fund, AIG SunAmerica manages the affairs of the Fund,
and selects, supervises and compensates the subadvisers to manage the Fund's
assets. AIG SunAmerica monitors the compliance of the subadvisers with the
investment objective and related policies of the Fund, reviews the
performance of the subadvisers, and reports periodically on such performance
to the Directors. Pursuant to the Advisory Agreement, the Fund will pay AIG
SunAmerica a monthly fee at the annual rate of 1.00% of the average daily
total assets of the Fund.
AIG SunAmerica has engaged Marsico Capital Management, LLC ("Marsico"), a
wholly-owned subsidiary of Bank of America, and Blackrock Investment
Management, LLC ('Blackrock"), a wholly-owned subsidiary of Blackrock Inc.,
as the subadvisers to the Fund (the "Subadvisers") to manage the investment
and reinvestment of the Fund's assets. Pursuant to the subadvisory
agreements ("Subadvisory Agreements") among AIG SunAmerica, the Fund and
Marsico and Blackrock, respectively, Marsico and Blackrock select the
investments made by the Fund. Marsico will manage the large-cap growth
portion of the Fund and Blackrock will manage the large-cap value portion of
the Fund. Pursuant to the Subadvisory Agreements, AIG SunAmerica and not the
Fund, pays each of the subadvisers a fee at the annual rate of 0.40% of the
Fund's average daily total assets allocated to each subadvisor.
AIG SunAmerica serves as administrator to the Fund. Under the Administrative
Services Agreement, AIG SunAmerica is responsible for performing or
supervising the performance by others of administrative services in
connection with the operations of the Fund, subject to the supervision of
the Fund's Board. AIG SunAmerica will provide the Fund with administrative
services, regulatory reporting, all necessary office space, equipment,
personnel and facilities for handling the affairs of the Fund. AIG
SunAmerica's administrative services include recordkeeping, supervising the
activities of the Fund's custodian and transfer agent, providing assistance
in connection with the Directors' and shareholders' meetings and other
administrative services necessary to conduct the Fund's affairs. For its
services as administrator, AIG SunAmerica is paid a monthly fee at the
annual rate of 0.04% of the Fund's average daily total assets.
11
SUNAMERICA FOCUSED ALPHA LARGE-CAP FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2007 -- (UNAUDITED) -- (CONTINUED)
--------------------------------------------------------------------------------
Note 4. Expense Reductions
Through expense offset arrangements resulting from broker commission
recapture, a portion of the expenses of the Fund have been reduced. For the
period ended June 30, 2007, the amount of expense reductions received to
offset the Fund's non-affiliated expenses were $4.
Note 5. Purchase and Sales of Investment Securities
The cost of purchases and proceeds from sales and maturities of long-term
investments during the period ended June 30, 2007 were as follows:
Purchases (excluding U.S. government securities)............ $ 64,215,114
Sales and maturities (excluding U.S. government
securities)............................................... 72,482,544
Purchases of U.S. government securities..................... --
Sales and maturities of U.S. government securities.......... --
Note 6. Transactions with Affiliates
For the six months ended June 30, 2007 the Fund incurred brokerage
commissions with Banc of America Securities LLC, an affiliated broker, of
$5,160.
Note 7. Federal Income Taxes
The following details the tax basis distributions as well as the components
of distributable earnings. The tax basis components of distributable
earnings may differ from the amounts reflected in the Statement of Assets
and Liabilities due to temporary book/tax differences such as wash sales and
Post-October losses.
FOR THE YEAR ENDED DECEMBER 31, 2006
-----------------------------------------------------------------------------------------------------------
DISTRIBUTABLE EARNINGS TAX DISTRIBUTIONS
-------------------------------------------- ------------------------------------------------------------
LONG-TERM UNREALIZED
ORDINARY GAINS/CAPITAL APPRECIATION ORDINARY LONG-TERM RETURN OF
INCOME AND OTHER LOSSES (DEPRECIATION) INCOME CAPITAL GAINS CAPITAL
-------- ---------------- -------------- -------------------- -------------------- --------------
$-- $ -- $21,601,671 $1,411,693 $ -- $10,174,590
The amounts of aggregate unrealized gain (loss) and the cost of investment
securities for federal tax purposes, including short-term securities were as
follows:
Cost (tax basis)............................................ $172,070,152
============
Appreciation................................................ $ 31,644,783
Depreciation................................................ (2,791,268)
------------
Net unrealized appreciation (depreciation).............. $ 28,853,515
============
For the year ended December 31, 2006, permanent reclassifications were made
to increase accumulated net investment income by $10,175,194 with an
offsetting adjustment to additional paid-in capital and accumulated realized
gain in the amount of $(10,174,892) and $(302), respectively. The
reclassifications arising from book/tax differences were primarily due to
return of capital and distribution reclasses, and excise taxes.
12
SUNAMERICA FOCUSED ALPHA LARGE-CAP FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2007 -- (UNAUDITED) -- (CONTINUED)
--------------------------------------------------------------------------------
Under the current law, capital losses related to securities and foreign
currency realized after October 31 and prior to the Fund's fiscal year end
may be deferred as occurring the first day of the following year. For the
fiscal year ended December 31, 2006, the Fund elected to defer post October
capital losses in the amount of $278,884.
Note 8. Capital Share Transactions
The authorized capital stock of the Fund is 200,000,000 shares of common
stock, $0.001 par value. Of the 9,655,236 shares outstanding at June 30,
2007, AIG SunAmerica owned 5,692 shares.
Note 9. Subsequent Events
On June 14, 2007, Thomas F. Marsico, founder and Chief Executive Officer of
Marsico and Marsico Parent Company, LLC, a company controlled by Mr.
Marsico, signed a definitive agreement to repurchase Marsico from a
subsidiary of Bank of America Corporation (the "Transaction"). The
Transaction is expected to close during the fourth quarter of 2007. The
consummation of the Transaction and resulting change of control of Marsico
will result in an "assignment," as that term is defined under the Investment
Company Act of 1940, as amended (the "1940 Act") and termination of the
current subadvisory agreement between AIG SunAmerica, the Fund and Marsico.
In order to permit Marsico to continue to serve as subadviser after
consummation of the Transaction, the Board approved a new subadvisory
agreement with Marsico at a meeting held on August 27, 2007. The new
subadvisory agreement is identical to the current subadvisory agreement
except for the date of execution and termination of the agreement and will
become effective upon the close of the Transaction, subject to approval by
the Fund's shareholders. The Board also approved an interim subadvisory
agreement between AIG SunAmerica, the Fund and Marsico pursuant to Rule
15a-4 of the 1940 Act that would permit Marsico to continue to serve as
subadviser for up to a period of 150 days if shareholder approval of the
subadvisory agreement is not obtained by the time the current subadvisory
agreement terminates. It is anticipated that proxy materials will be mailed
to shareholders in the near future. These materials will provide more
information on the Transaction and the new subadvisory agreement with
Marsico.
At a meeting held on August 27, 2007, the Board approved a change to the
Fund's investment policies, effective September 1, 2007, so that the Fund
may generally hold up to a total of 40 securities, which will consist of
approximately 10 to 20 securities in both the large-cap growth portion and
the large-cap value portion of the Fund. Prior to this change, the Fund was
generally limited to a maximum of 30 securities overall, generally
consisting of between 10 to 15 securities in both the large-cap growth
portion and large-cap value portion of the Fund. Examples of when the Fund
may hold more than the specified number of securities include, but are not
limited to, rebalancing or purchase and sale transactions.
At a meeting held on August 28, 2007, the Board approved the declaration of
a quarterly dividend distribution in accordance with the Fund's Distribution
Policy and approved the dividend distribution of $0.35 per share of common
stock. The amount per share represents an increase from the quarterly
dividend distribution rate of $0.30 per share that the Fund has previously
paid since its inception.
Note 10. Other Information
On February 9, 2006, AIG, the parent company and an affiliated person of AIG
SunAmerica, announced that it had consented to the settlement of an
injunctive action instituted by the Securities and Exchange Commission
("SEC"). In its complaint, the SEC alleged that AIG violated Section 17(a)
of the Securities Act of 1933, as amended, Sections 10(b), 13(a), 13(b)(2)
and 13(b)(5) of the Securities Exchange Act of 1934, as amended, and Rules
10b-5, 12b-20, 13a-1 and 13b2-1 promulgated thereunder, in connection with
AIG's accounting and public reporting practices. The conduct described in
the complaint did not involve any conduct of AIG or its subsidiaries related
to their investment advisory or distribution activities with respect to the
assets of the Fund.
13
SUNAMERICA FOCUSED ALPHA LARGE-CAP FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2007 -- (UNAUDITED) -- (CONTINUED)
--------------------------------------------------------------------------------
AIG, without admitting or denying the allegations in the complaint (except
as to jurisdiction), consented to the entry of an injunction against further
violations of the statutes referred to above. Absent exemptive relief
granted by the SEC, the entry of such an injunction would prohibit AIG and
its affiliated persons from, among other things, serving as an investment
adviser of any registered investment management company or principal
underwriter for any registered open-end investment company pursuant to
Section 9(a) of the 1940 Act. Certain affiliated persons of AIG, including
the Adviser, received a temporary order from the SEC pursuant to Section
9(c) of the 1940 Act with respect to the entry of the injunction, granting
exemptive relief from the provisions of Section 9(a) of the 1940 Act. The
temporary order permits AIG and its affiliated persons, including AIG's
investment management subsidiaries, to serve as investment adviser,
sub-adviser, principal underwriter or sponsor of the Fund. The Adviser
expects that a permanent exemptive order will be granted, although there is
no assurance the SEC will issue the order.
Additionally, AIG and its subsidiaries reached a resolution of claims and
matters under investigation with the United States Department of Justice
("DOJ"), the Attorney General of the State of New York ("NYAG") and the New
York State Department of Insurance ("DOI"), regarding accounting, financial
reporting and insurance brokerage practices of AIG and its subsidiaries, as
well as claims relating to the underpayment of certain workers compensation
premium taxes and other assessments.
As a result of the settlements with the SEC, the DOJ, the NYAG and the DOI,
AIG made payments totaling approximately $1.64 billion. In addition, as part
of its settlements, AIG has agreed to retain for a period of three years an
Independent Consultant who will conduct a review that will include the
adequacy of AIG's internal controls over financial reporting and the
remediation plan that AIG has implemented as a result of its own internal
review.
Subject to receipt of permanent relief, the Adviser believes that the
settlements are not likely to have a material adverse effect on its ability
to perform advisory services relating to the Fund.
14
SUNAMERICA FOCUSED ALPHA LARGE-CAP FUND, INC.
DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN -- JUNE 30, 2007 -- (UNAUDITED)
--------------------------------------------------------------------------------
The Fund has adopted a Dividend Reinvestment and Cash Purchase Plan (the
"Plan"), through which all net investment income dividends and capital gains
distributions are paid to Common Stock Shareholders in the form of
additional shares of the Fund's Common Stock (plus cash in lieu of any
fractional shares which otherwise would have been issuable), unless a Common
Stock Shareholder elects to receive cash as provided below. In this way, a
Common Stock Shareholder can maintain an undiluted investment in the Fund
and still allow the Fund to pay out the required distributable income.
No action is required on the part of a registered Common Stock Shareholder
to receive a distribution in shares of Common Stock of the Fund. A
registered Common Stock Shareholder may elect to receive an entire
distribution in cash by notifying Computershare Trust Company, NA, Inc.
("Computershare"), P.O. Box 43010, Providence, RI 02940-3010, the Plan Agent
and the Fund's transfer agent and registrar, in writing so that such notice
is received by Computershare no later than 10 days prior to the record date
for distributions to Common Stock Shareholders. Computershare will set up an
account for shares acquired through the Plan for each Common Stock
Shareholder who has not elected to receive distributions in cash
("Participant") and hold such shares in non-certificated form.
Those Common Stock Shareholders whose shares are held by a broker or other
financial intermediary may receive distributions in cash by notifying their
broker or other financial intermediary.
Computershare will set up an account for shares acquired pursuant to the
Plan for Participants who have not so elected to receive dividends and
distributions in cash. The shares of Common Stock will be acquired by the
Plan Agent for the Participants' accounts, depending upon the circumstances
described below, either (i) through receipt of additional unissued but
authorized shares of Common Stock from the Fund ("Additional Common Stock")
or (ii) by purchase of outstanding shares of Common Stock on the open market
on the NYSE or elsewhere. If on the payment date for a dividend or
distribution, the net asset value per share of Common Stock is equal to or
less than the market price per share of Common Stock plus estimated
brokerage commissions, Computershare shall receive Additional Common Stock,
including fractions, from the Fund for each Participant's account. The
number of shares of Additional Common Stock to be credited shall be
determined by dividing the dollar amount of the dividend or distribution by
the greater of (i) the net asset value per share of Common Stock on the
payment date, or (ii) 95% of the market price per share of the Common Stock
on the payment date. If the net asset value per share of Common Stock
exceeds the market price plus estimated brokerage commissions on the payment
date for a dividend or distribution, Computershare (or a broker-dealer
selected by Computershare) shall endeavor to apply the amount of such
dividend or distribution on each Participant's shares of Common Stock to
purchase shares of Common Stock on the open market. Such purchases will be
made on or shortly after the payment date for such dividend or distribution
but in no event will purchases be made on or after the ex-dividend date for
the next dividend or distribution. The weighted average price (including
brokerage commissions) of all shares of Common Stock purchased by
Computershare shall be the price per share of Common Stock allocable to each
Participant. If, before Computershare has completed its purchases, the
market price plus estimated brokerage commissions exceeds the net asset
value of the shares of Common Stock as of the payment date, the purchase
price paid by Computershare may exceed the net asset value of the Common
Stock, resulting in the acquisition of fewer shares of Common Stock than if
such dividend or distribution had been paid in shares of Common Stock issued
by the Fund. Participants should note that they will not be able to instruct
Computershare to purchase shares of Common Stock at a specific time or at a
specific price.
There is no charge to Common Stock Shareholders for receiving their
distributions in the form of additional shares of the Fund's Common Stock.
Computershare's fees for handling distributions in stock are paid by the
Fund. There are no brokerage charges with respect to shares issued directly
by the Fund as a result of distributions payable in stock. If a Participant
elects by written notice to Computershare to have Computershare sell part or
all of the shares held by Computershare in the Participant's account and
remit the proceeds to the Participant, Computershare is authorized to deduct
a $2.50 transaction fee plus brokerage commissions from the proceeds.
Common Stock Shareholders who receive distributions in the form of stock are
subject to the same Federal, state and local tax consequences as are Common
Stock Shareholders who elect to receive their distributions in cash. A
Common Stock Shareholder's basis for determining gain or loss upon the sale
of stock received in a distribution from the Fund will be equal to the total
dollar amount of the distribution paid to the Common Stock Shareholder in
the form of additional shares.
15
SUNAMERICA FOCUSED ALPHA LARGE-CAP FUND, INC.
RESULTS OF ANNUAL SHAREHOLDER MEETING -- JUNE 30, 2007 -- (UNAUDITED)
--------------------------------------------------------------------------------
The Annual Meeting of the Shareholders of the Fund (the "Meeting") was held on
April 25, 2007. At this meeting Dr. Judith L. Craven and William J. Shea were
elected by shareholders to serve as the Class II Directors of the Fund for
three-year terms, which expire at the annual meeting of shareholders to be held
in 2010 and until their respective successors are duly elected and qualify.
The voting results of the Meeting to elect Dr. Judith L. Craven and William J.
Shea to the Board are as follows:
ELECTION OF DR. JUDITH L. CRAVEN TO THE BOARD OF DIRECTORS
FOR WITHHELD TOTAL
--------- -------- ---------
Shares Voted................................................ 8,792,483 427,517 9,220,000
ELECTION OF WILLIAM J. SHEA TO THE BOARD OF DIRECTORS
FOR WITHHELD TOTAL
--------- -------- ---------
Shares Voted................................................ 8,796,408 423,592 9,220,000
The terms of office of Jeffrey S. Burum and William F. Devin (Class I, term
expiring 2009) and Samuel M. Eisenstat, Stephen J. Gutman and Peter A. Harbeck
(Class III, term expiring 2008) continued after the Meeting.
16
--------------------------------------------------------------------------------
(AIG LOGO)
DIRECTORS
Samuel M. Eisenstat
Peter A. Harbeck
Dr. Judith L. Craven
William F. Devin
Stephen J. Gutman
Jeffrey S. Burum
William J. Shea
OFFICERS
Vincent M. Marra, President and
Chief Executive Officer
Donna M. Handel, Treasurer
James Nichols, Vice President
Cynthia Gibbons, Chief Compliance Officer
Gregory N. Bressler, Chief Legal Officer and
Secretary
Gregory R. Kingston, Assistant Treasurer
Nori L. Gabert, Vice President and Assistant Secretary
Corey A. Issing, Assistant Secretary
Kathleen Fuentes, Assistant Secretary
John E. Smith Jr., Assistant Treasurer
INVESTMENT ADVISER
AIG Sun America Asset Management Corp.
Harborside Financial Center
3200 Plaza 5
Jersey City, NJ 07311-4992
CUSTODIAN
State Street Bank and Trust Company
P.O. Box 5607
Boston, MA 02110
TRANSFER AGENT
Computershare Shareholder Services, Inc.
250 Royall Street
Canton, MA 02021
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
A description of the policies and procedures that the Fund uses to determine
how to vote proxies related to securities held in the Fund's portfolio, which
is available in the Fund's Form N-CSR, may be obtained without charge upon
request, by calling (800) 858-8850. This information is also available from
the EDGAR database on the U.S. Securities and Exchange Commission's website
at http://www.sec.gov.
DISCLOSURE OF QUARTERLY PORTFOLIO HOLDINGS
The Fund is required to file its complete schedule of portfolio holdings
with the U.S. Securities and Exchange Commission for its first and third
fiscal quarters on Form N-Q. The Fund's Forms N-Q are available on the
U.S. Securities and Exchange Commission's website at http://www.sec.gov.
You can also review and obtain copies of Form N-Q at the U.S. Securities
and Exchange Commission's Public Reference Room in Washington, DC
(information on the operation of the Public Reference Room may be obtained
by calling 1-800-SEC-0330).
PROXY VOTING RECORD ON FUND PORTFOLIO SECURITIES
Information regarding how the Fund voted proxies related to securities
held in the Fund's portfolio during the most recent twelve month period
ended June 30, is available, once filed with the U.S. Securities and
Exchange Commission without charge, upon request, by calling (800)
858-8850 or on the U.S. Securities and Exchange Commission's website at
http://www.sec.gov.
This report is submitted solely for the general information of
shareholders of the Funds. Distribution of this report to persons other
than shareholders of the Fund is authorized only in connection with a
currently effective prospectus, setting forth details of the Fund, which
must precede or accompany this report.
The accompanying report has not been audited by independent accountants
and accordingly no opinion has been expressed thereon.
17
AIG SUNAMERICA MUTUAL FUNDS
SunAmerica open-end funds distributed by:
AIG SunAmerica Capital Services, Inc., Harborside Financial Center,
3200 Plaza 5, Jersey City, NJ 07311
800-858-8850 x6003 www.sunamericafunds.com
FISAN-6/07
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments.
Included in Item 1 to the Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
None.
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 Directors that
were implemented after the Registrant last provided disclosure in
response to the requirements of Item 407(c)(2)(iv) of Regulation S-K
(17 CFR 229.407) (as required by 22(b)(15)) of Schedule 14A (17 CFR
240.14a-101), or this Item 10.
Item 11. Controls and Procedures.
(a) An evaluation was performed within 90 days of the filing of this
report, under the supervision and with the participation of the
registrant's management, including the President and Treasurer, of the
effectiveness of the design and operation of the registrant's
disclosure controls and procedures, as defined under Rule 30a-3(c)
under the Investment Company Act of 1940 (17 CFR 270.30a-3(c)). Based
on that evaluation, the registrant's management, including the
President and Treasurer, concluded that the registrant's disclosure
controls and procedures are effective.
(b) There was no change in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940 (17 CFR 270.30a-3(d))) that occurred during the
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 control 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 Focused Alpha Large-Cap Fund, Inc.
By: /s/ Vincent M. Marra
--------------------
Vincent M. Marra
President
Date: September 7, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Vincent M. Marra
--------------------
Vincent M. Marra
President
Date: September 7, 2007
By: /s/ Donna M. Handel
-------------------
Donna M. Handel
Treasurer
Date: September 7, 2007