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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 811-04708
SunAmerica Income Funds
(Exact name of registrant as specified in charter)
Harborside 5,
185 Hudson Street, Suite 3300,
Jersey City, NJ 07311
(Address of principal executive offices) (Zip code)
John T. Genoy
Senior Vice President
SunAmerica Asset Management, LLC
Harborside 5,
185 Hudson Street, Suite 3300,
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: March 31
Date of reporting period: September 30, 2020
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Item 1. Reports to Stockholders
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SEMI-ANNUAL REPORT 2020
SUNAMERICA
Income Funds
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or your financial intermediary. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. At any time, you may elect to receive reports and other communications from a Fund electronically by calling 800-858-8850 or contacting your financial intermediary directly.
You may elect to receive all future reports in paper free of charge. If your account is held directly at the Fund, you can inform the Fund that you wish to receive paper copies of reports by calling 800-858-8850. If your account is held through a financial intermediary, please contact the financial intermediary to make this election. Your election to receive paper will apply to all AIG Funds in which you are invested and may apply to all funds held with your financial intermediary.
aig.com/funds
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Shareholder Letter — (unaudited)
Dear Shareholders,
All of us at AIG and SunAmerica Asset Management, along with our Fund subadvisers, hope this semi-annual report finds you and yours safe and well during these challenging times.
As the COVID-19 pandemic continues to evolve, know that we remain focused on serving our Fund shareholders. As such, we are pleased to present this semi-annual update for the SunAmerica Income Funds (the “Income Funds”) for the six-month period ended September 30, 2020. From a broad perspective, it was a period wherein fixed income market performance was positive, primarily driven by economic growth expectations, central bank monetary policy and geopolitical events, including the persistence of COVID-19. For the semi-annual period overall, the Bloomberg Barclays U.S. Aggregate Bond Index*, a broad measure of the U.S. fixed income market, returned 3.53%.
In the second quarter of 2020, when the semi-annual period began, global fixed income sectors generated positive returns. Political tensions were a focal point, with U.S.-China disputes reigniting, a wave of racial justice protests engulfing the U.S., and Brexit** uncertainty increasing. Global government bond yields were largely range-bound near record lows across most developed markets, supported by extremely accommodative central bank purchase programs and amplified policy responses to the pandemic and its impact on the economy and the financial markets. For example, the U.S. Federal Reserve (the “Fed”) announced a trillion-dollar lending program, which includes high yield bonds. The European Central Bank (“ECB”) announced more generous terms for its targeted longer-term refinancing operations. The Bank of England (“BOE”) announced an extension of the U.K. government’s overdraft facility and increased its bond purchases. All that said, global government bond yield curves, or maturity spectrums, steepened†, as short-term yields declined in the U.S. and the U.K. In fact, U.K. government bond yields dipped into negative territory after the BOE indicated negative rates could form part of a range of actions it might take should downside risks materialize. Most non-government bond sectors outperformed U.S. Treasuries and other sovereign bonds during the second calendar quarter. Fixed income credit sectors - both investment grade and high yield - performed especially strongly, as countries began to gradually emerge from lockdowns, vaccine developments progressed and asset purchases by the Fed commenced through its credit facilities. Emerging markets debt was also a particularly strong sector during the quarter, as emerging market central banks rapidly cut policy rates, with some banks also initiating unconventional policies, including forms of quantitative easing.
Global government bond yields ended the third quarter of 2020 mixed. Yield curves steepened, led by increases in yields on longer-term maturities, in the U.S., Canada and the U.K., while most other government bond yields generally drifted lower. (Remember, there is an inverse relationship between bond prices and yield movements, so that bond prices rise when yields decrease and vice versa.) The Fed extended its emergency liquidity provisions through the end of 2020 and unveiled a new inflation policy framework that will allow inflation to modestly exceed 2% without a hawkish†† policy response. This low-for-longer and inflation tolerance policy stance by the Fed prompted the sell-off in longer-dated securities, while strong demand for U.S. Treasuries as a “safe haven” kept short-to intermediate-term yields low. The U.K.’s yield curve steepened, reflecting the backdrop of Brexit risks, disappointing economic data and rapidly rising estimates of British government borrowing needs. In contrast, Australian and Italian yields were among the major decliners. Among non-government bond sectors, performance was mixed. Credit sectors performed well, supported by expansionary fiscal policies, purchase programs by the Fed and the ECB, and strong demand, even as corporate issuance set records for the calendar year. Emerging markets debt also posted relatively strong returns. Some securitized sectors, including mortgage-backed securities, were comparatively weaker.
For the semi-annual period overall, the U.S. Treasury yield curve steepened modestly. The yield on the two-year U.S. Treasury declined approximately 10 basis points††† to end the semi-annual period at 0.13%. The yield on the bellwether 10-year U.S. Treasury fell approximately one basis point to end the semi-annual period at 0.69%, and the yield on the 30-year U.S. Treasury increased approximately 11 basis points to end the semi-annual period at 1.46%. Most non-government bond sectors posted positive returns that
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outperformed U.S. Treasuries and other government bonds during the semi-annual period. Corporate bonds, led by lower-rated credits, performed especially well. Emerging markets debt, in U.S. dollar terms, also rallied. Treasury inflation protected securities were also strong, buoyed by Fed purchases. Mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities outperformed U.S. Treasuries during the semi-annual period as a whole but far more modestly so.
Amid these conditions, each of the Income Funds posted solid positive absolute gains during the semi-annual period ended September 30, 2020, and both AIG Flexible Credit Fund and AIG Strategic Bond Fund significantly outperformed their respective benchmark for the same time period. On the following pages, you will find financial statements and portfolio information for each of the Income Funds during the semi-annual period ended September 30, 2020.
We thank you for being a part of AIG Funds. We value your continued confidence in us and look forward to serving your investment needs in the future. As always, if you have any questions regarding your investments, please contact your financial professional or get in touch with us directly at 800-858-8850 or via our website, www.aig.com/funds.
Sincerely,
The SunAmerica Income Funds Investment Professionals
Tim Pettee | Robert Vanden Assem | David L. Albrycht | ||
Timothy Campion | Dana Burns | Frank Ossino | ||
Elizabeth Mauro | Anders Faergemann | Eric Hess | ||
John Yovanovic | William Eastwood |
Past performance is no guarantee of future results.
* | The Bloomberg Barclays U.S. Aggregate Bond Index represents securities that are SEC-registered, taxable and dollar denominated. The index covers the U.S. investment-grade fixed-rate bond market, with index components for government and corporate securities, mortgage pass-through securities and asset-backed securities. Indices are not managed and an investor cannot invest directly in an index. |
** | Brexit refers to the U.K.’s path out of the European Union. |
† | A steepening yield curve is one wherein the differential in yields between longer-term and shorter-term maturities widens. |
†† | Hawkish policy tends to suggest higher interest rates; opposite of dovish. |
††† | A basis point is 1/100th of a percentage point. |
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SunAmerica Income Funds
EXPENSE EXAMPLE — September 30, 2020 — (unaudited)
Disclosure of Portfolio Expenses in Shareholder Reports
As a shareholder of a fund (each, a “Fund” and collectively the “Funds”) in the SunAmerica Income Funds (the “Trust”), you may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges 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 April 1, 2020 and held until September 30, 2020.
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 September 30, 2020” to estimate the expenses you paid on your account during this period. The “Expenses Paid During the Six Months Ended September 30, 2020” column and the “Annualized Expense Ratio” column do 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 September 30, 2020” column and the “Annualized Expense Ratio” column do not include administrative fees that may apply to qualified retirement plan accounts. See the Funds’ prospectuses, your retirement plan document and/or materials from your financial adviser for a full description of these fees. Had these fees been included, the “Expenses Paid During the Six Months Ended September 30, 2020” column would have been higher and the “Ending Account Value” column 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 each Fund’s actual expense ratio and an annual rate of return of 5% 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. The “Expenses Paid During the Six Months Ended September 30, 2020” column and the “Annualized Expense Ratio” column do 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 September 30, 2020” column and the “Annualized Expense Ratio” column do not include administrative fees that may apply to qualified retirement plan accounts and accounts held through financial institutions. See the Funds’ prospectuses, your retirement plan document and/or materials from your financial adviser for a full description of these fees. Had these fees been included, the “Expenses Paid During the Six Months Ended September 30, 2020” column would have been higher and the “Ending Account Value” column 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, small account fees and administrative fees, if applicable to your account. Please refer to the Funds’ prospectus, your retirement plan document and/or material from your financial adviser, for more information. Therefore, the “Hypothetical” example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs and other fees were included, your costs would have been higher.
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SunAmerica Income Funds
EXPENSE EXAMPLE — September 30, 2020 — (unaudited) (continued)
Actual | Hypothetical | |||||||||||||||||||||||||||
Fund | Beginning Account Value at April 1, 2020 | Ending Account Value using Actual Return at September 30, 2020 | Expenses Paid During the Six Months Ended September 30, 2020 | Beginning Account Value at April 1, 2020 | Ending Account Value using a Hypothetical 5% Annual Return at September 30, 2020 | Expenses Paid During the Six Months Ended September 30, 2020 | Annualized Expense Ratio* | |||||||||||||||||||||
AIG U.S. Government Securities# | ||||||||||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,001.02 | $ | 4.97 | $ | 1,000.00 | $ | 1,020.10 | $ | 5.01 | 0.99 | % | ||||||||||||||
Class C | $ | 1,000.00 | $ | 997.76 | $ | 8.21 | $ | 1,000.00 | $ | 1,016.85 | $ | 8.29 | 1.64 | % | ||||||||||||||
AIG Strategic Bond# | ||||||||||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,107.60 | $ | 5.86 | $ | 1,000.00 | $ | 1,019.50 | $ | 5.62 | 1.11 | % | ||||||||||||||
Class B | $ | 1,000.00 | $ | 1,103.61 | $ | 9.70 | $ | 1,000.00 | $ | 1,015.84 | $ | 9.30 | 1.84 | % | ||||||||||||||
Class C | $ | 1,000.00 | $ | 1,103.47 | $ | 9.54 | $ | 1,000.00 | $ | 1,015.99 | $ | 9.15 | 1.81 | % | ||||||||||||||
Class W | $ | 1,000.00 | $ | 1,105.55 | $ | 4.75 | $ | 1,000.00 | $ | 1,020.56 | $ | 4.56 | 0.90 | % | ||||||||||||||
AIG Flexible Credit# | ||||||||||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,159.02 | $ | 5.95 | $ | 1,000.00 | $ | 1,019.55 | $ | 5.57 | 1.10 | % | ||||||||||||||
Class C | $ | 1,000.00 | $ | 1,158.49 | $ | 9.47 | $ | 1,000.00 | $ | 1,016.29 | $ | 8.85 | 1.75 | % | ||||||||||||||
Class W | $ | 1,000.00 | $ | 1,163.90 | $ | 4.83 | $ | 1,000.00 | $ | 1,020.61 | $ | 4.51 | 0.89 | % |
* | Expenses are equal to each Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 183 days then divided by 365 days (to reflect the one-half year period). These ratios do not reflect transaction costs, including sales charges on purchase payments, contingent deferred sales charges, small account fees and administrative fees, if applicable to your account. Please refer to your Prospectus, your retirement plan documents and/or materials from your financial adviser 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. 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 September 30, 2020” and the “Annualized Expense Ratio” would have been higher. |
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SunAmerica Income Funds
STATEMENTS OF ASSETS AND LIABILITIES — September 30, 2020 — (unaudited)
AIG U.S. Government Securities Fund | AIG Strategic Bond Fund | AIG Flexible Credit Fund | ||||||||||
ASSETS: | ||||||||||||
Investments at value (unaffiliated)* | $ | 135,555,179 | $ | 353,541,281 | $ | 251,907,621 | ||||||
Repurchase agreements (cost approximates value) | 1,030,000 | — | — | |||||||||
Cash | 552 | 155,505 | 165,809 | |||||||||
Foreign cash* | — | 371,964 | — | |||||||||
Receivable for: | ||||||||||||
Shares of beneficial interest sold | 35,795 | 2,347,043 | 250,476 | |||||||||
Dividends and interest | 530,214 | 3,628,094 | 2,945,770 | |||||||||
Investments sold | — | 1,980,003 | 1,597,046 | |||||||||
Investments sold on an extended settlement basis | — | 56,047 | 1,823,398 | |||||||||
Prepaid expenses and other assets | 7,851 | 9,773 | 9,573 | |||||||||
Due from investment adviser for expense reimbursements/fee waivers | 65,936 | 77,821 | 84,305 | |||||||||
Unrealized appreciation on forward foreign currency contracts | — | 26,495 | — | |||||||||
Total assets | 137,225,527 | 362,194,026 | 258,783,998 | |||||||||
LIABILITIES: | ||||||||||||
Payable for: | ||||||||||||
Shares of beneficial interest redeemed | 36,526 | 623,831 | 423,071 | |||||||||
Investments purchased | — | 4,027,774 | 392,257 | |||||||||
Investments purchased on an extended settlement basis | — | 5,774,304 | 8,892,596 | |||||||||
Investment advisory and management fees | 73,241 | 187,313 | 154,554 | |||||||||
Distribution and service maintenance fees | 45,846 | 114,772 | 76,985 | |||||||||
Transfer agent fees and expenses | 37,307 | 79,513 | 55,255 | |||||||||
Trustees’ fees and expenses | 4 | 159 | 1,696 | |||||||||
Other accrued expenses | 74,155 | 193,443 | 157,833 | |||||||||
Distributions Payable | — | 35,352 | 178,823 | |||||||||
Commitments (Note 10) | — | 127,680 | — | |||||||||
Unrealized depreciation on forward foreign currency contracts | — | 280,732 | — | |||||||||
Total liabilities | 267,079 | 11,444,873 | 10,333,070 | |||||||||
Net assets | $ | 136,958,448 | $ | 350,749,153 | $ | 248,450,928 | ||||||
NET ASSETS REPRESENTED BY: | ||||||||||||
Shares of beneficial interest, $0.01 | $ | 140,308 | $ | 1,023,354 | $ | 776,689 | ||||||
Paid-in capital | 143,432,776 | 375,852,772 | 286,091,627 | |||||||||
Total accumulated earnings (loss) | (6,614,636 | ) | (26,126,973 | ) | (38,417,388 | ) | ||||||
Net assets | $ | 136,958,448 | $ | 350,749,153 | $ | 248,450,928 | ||||||
*Cost | ||||||||||||
Investments (unaffiliated) | $ | 123,263,210 | $ | 350,284,758 | $ | 265,276,963 | ||||||
Foreign cash | $ | — | $ | 373,773 | $ | — | ||||||
See Notes to Financial Statements
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SunAmerica Income Funds
STATEMENTS OF ASSETS AND LIABILITIES — September 30, 2020 — (unaudited) (continued)
AIG U.S. Government Securities Fund | AIG Strategic Bond Fund | AIG Flexible Credit Fund | ||||||||||
Class A (unlimited shares authorized): | ||||||||||||
Net assets | $ | 125,188,958 | $ | 161,992,205 | $ | 85,824,540 | ||||||
Shares of beneficial interest issued and outstanding | 12,824,154 | 47,239,151 | 26,877,614 | |||||||||
Net asset value and redemption price per share (excluding any applicable contingent deferred sales charge) | $ | 9.76 | $ | 3.43 | $ | 3.19 | ||||||
Maximum sales charge (3.75% of offering price) | $ | 0.38 | $ | 0.13 | $ | 0.12 | ||||||
Maximum offering price to public | $ | 10.14 | $ | 3.56 | $ | 3.31 | ||||||
Class B (unlimited shares authorized): | ||||||||||||
Net assets | $ | — | $ | 15,094,901 | $ | — | ||||||
Shares of beneficial interest issued and outstanding | — | 4,404,943 | — | |||||||||
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge) | $ | — | $ | 3.43 | $ | — | ||||||
Class C (unlimited shares authorized): | ||||||||||||
Net assets | $ | 11,769,490 | $ | 47,918,730 | $ | 44,138,097 | ||||||
Shares of beneficial interest issued and outstanding | 1,206,695 | 13,928,556 | 13,738,461 | |||||||||
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge) | $ | 9.75 | $ | 3.44 | $ | 3.21 | ||||||
Class W (unlimited shares authorized): | ||||||||||||
Net assets | $ | — | $ | 125,743,317 | $ | 118,488,291 | ||||||
Shares of beneficial interest issued and outstanding | — | 36,762,711 | 37,052,816 | |||||||||
Net asset value, offering and redemption price per share | $ | — | $ | 3.42 | $ | 3.20 | ||||||
See Notes to Financial Statements
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SunAmerica Income Funds
STATEMENTS OF OPERATIONS — For the Six Months Ended September 30, 2020 — (unaudited)
AIG U.S. Government Securities Fund | AIG Strategic Bond Fund | AIG Flexible Credit Fund | ||||||||||
INVESTMENT INCOME: | ||||||||||||
Dividends (unaffiliated) | $ | — | $ | 3,055 | $ | — | ||||||
Interest (unaffiliated) | 1,208,599 | 6,728,352 | 7,538,091 | |||||||||
Total investment income* | 1,208,599 | 6,731,407 | 7,538,091 | |||||||||
EXPENSES: | ||||||||||||
Investment advisory and management fees | 450,373 | 1,036,828 | 970,996 | |||||||||
Distribution and Service maintenance fees: | ||||||||||||
Class A | 205,166 | 270,325 | 142,855 | |||||||||
Class B | — | 73,742 | — | |||||||||
Class C | 64,022 | 249,798 | 235,742 | |||||||||
Service fee — Class W | — | 73,916 | 98,303 | |||||||||
Transfer agent fees: | ||||||||||||
Class A | 155,305 | 188,415 | 101,410 | |||||||||
Class B | — | 18,561 | — | |||||||||
Class C | 16,911 | 61,008 | 55,473 | |||||||||
Class W | — | 109,376 | 146,854 | |||||||||
Registration fees: | ||||||||||||
Class A | 19,066 | 17,255 | 15,049 | |||||||||
Class B | — | 6,408 | — | |||||||||
Class C | 12,454 | 17,171 | 8,513 | |||||||||
Class W | — | 12,678 | 24,631 | |||||||||
Custodian and accounting fees | 12,410 | 58,126 | 33,723 | |||||||||
Reports to shareholders | 15,564 | 32,256 | 31,750 | |||||||||
Audit and tax fees | 29,841 | 40,268 | 39,480 | |||||||||
Legal fees | 23,171 | 24,720 | 26,648 | |||||||||
Trustees’ fees and expenses | 5,998 | 13,483 | 14,316 | |||||||||
Interest expense | 191 | 91 | 13,757 | |||||||||
Other expenses | 16,428 | 19,420 | 18,315 | |||||||||
Total expenses before fee waivers, expense reimbursements and expense recoupments | 1,026,900 | 2,323,845 | 1,977,815 | |||||||||
Net (fees waived and expenses reimbursed)/recouped by investment advisor (Note 3) | (299,321 | ) | (430,696 | ) | (526,676 | ) | ||||||
Net expenses | 727,579 | 1,893,149 | 1,451,139 | |||||||||
Net investment income (loss) | 481,020 | 4,838,258 | 6,086,952 | |||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES: | ||||||||||||
Net realized gain (loss) on: | ||||||||||||
Investments (unaffiliated) | 634,157 | 4,222,093 | (3,135,023 | ) | ||||||||
Forward contracts | — | (535,571 | ) | — | ||||||||
Net realized foreign exchange gain (loss) on other assets and liabilities | — | 13,738 | — | |||||||||
Net realized gain (loss) on investments and foreign currencies | 634,157 | 3,700,260 | (3,135,023 | ) | ||||||||
Change in unrealized appreciation (depreciation) on: | ||||||||||||
Investments (unaffiliated) | (980,000 | ) | 22,249,517 | 36,515,869 | ||||||||
Forward contracts | — | (445,096 | ) | — | ||||||||
Change in unrealized foreign exchange gain (loss) on other assets and liabilities | — | 4,845 | — | |||||||||
Net unrealized gain (loss) on investments and foreign currencies | (980,000 | ) | 21,809,266 | 36,515,869 | ||||||||
Net realized and unrealized gain (loss) on investments and foreign currencies | (345,843 | ) | 25,509,526 | 33,380,846 | ||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | 135,177 | 30,347,784 | 39,467,798 | |||||||||
* Net of foreign withholding taxes on interest and dividends of | $ | — | $ | 196 | $ | — | ||||||
See Notes to Financial Statements
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SunAmerica Income Funds
STATEMENTS OF CHANGES IN NET ASSETS
AIG U.S. Government Securities Fund | AIG Strategic Bond Fund | AIG Flexible Credit Fund | ||||||||||||||||||||||
For the six months ended September 30, 2020 (unaudited) | For the year ended March 31, 2020 | For the six months ended September 30, 2020 (unaudited) | For the year ended March 31, 2020 | For the six months ended September 30, 2020 (unaudited) | For the year ended March 31, 2020 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 481,020 | $ | 1,739,735 | $ | 4,838,258 | $ | 9,321,061 | $ | 6,086,952 | $ | 17,039,311 | ||||||||||||
Net realized gain (loss) on investments and foreign currencies | 634,157 | 1,926,705 | 3,700,260 | 2,219,656 | (3,135,023 | ) | (10,508,043 | ) | ||||||||||||||||
Net unrealized gain (loss) on investments and foreign currencies | (980,000 | ) | 9,530,897 | 21,809,266 | (16,562,110 | ) | 36,515,869 | (39,945,114 | ) | |||||||||||||||
Net increase (decrease) in net assets resulting from operations | 135,177 | 13,197,337 | 30,347,784 | (5,021,393 | ) | 39,467,798 | (33,413,846 | ) | ||||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||
Distributable earnings (Class A) | (896,825 | ) | (2,097,203 | ) | (2,665,881 | ) | (5,590,623 | ) | (2,034,756 | ) | (5,350,478 | ) | ||||||||||||
Distributable earnings (Class B) | — | — | (199,152 | ) | (449,803 | ) | — | — | ||||||||||||||||
Distributable earnings (Class C) | (49,639 | ) | (75,838 | ) | (681,512 | ) | (1,472,631 | ) | (1,002,413 | ) | (2,528,440 | ) | ||||||||||||
Distributable earnings (Class W) | — | — | (1,792,133 | ) | (3,163,220 | ) | (3,351,026 | ) | (9,579,290 | ) | ||||||||||||||
Total distributions to shareholders | (946,464 | ) | (2,173,041 | ) | (5,338,678 | ) | (10,676,277 | ) | (6,388,195 | ) | (17,458,208 | ) | ||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions (Note 6) | (651,564 | ) | (6,229,168 | ) | 28,965,242 | 37,021,203 | (39,382,583 | ) | (6,163,477 | ) | ||||||||||||||
Total increase (decrease) in net assets | (1,462,851 | ) | 4,795,128 | 53,974,348 | 21,323,533 | (6,302,980 | ) | (57,035,531 | ) | |||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning of period | 138,421,299 | 133,626,171 | 296,774,805 | 275,451,272 | 254,753,908 | 311,789,439 | ||||||||||||||||||
End of period | $ | 136,958,448 | $ | 138,421,299 | $ | 350,749,153 | $ | 296,774,805 | $ | 248,450,928 | $ | 254,753,908 | ||||||||||||
See Notes to Financial Statements
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SunAmerica Income Funds
AIG U.S. GOVERNMENT SECURITIES FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period Ended | Net Asset Value, beginning of period | Net investment income(1) | Net gain (loss) on investments (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains on investments | Total Distri- butions | Net Asset Value, end of period | Total Return(2) | Net Assets, end of period (000’s) | Ratio of expenses to average net assets(3) | Ratio of net investment income to average net assets(3) | Portfolio Turnover | |||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
03/31/16 | $ | 9.73 | $ | 0.08 | $ | (0.05 | ) | $ | 0.03 | $ | (0.17 | ) | $ | — | $ | (0.17 | ) | $ | 9.59 | 0.33 | % | $ | 156,468 | 0.99 | % | 0.81 | % | 36 | % | |||||||||||||||||||||||||
03/31/17 | 9.59 | 0.09 | (0.37 | ) | (0.28 | ) | (0.16 | ) | — | (0.16 | ) | 9.15 | (2.93 | ) | 148,382 | 0.99 | 0.91 | 95 | ||||||||||||||||||||||||||||||||||||
03/31/18 | 9.15 | 0.09 | (0.13 | ) | (0.04 | ) | (0.16 | ) | — | (0.16 | ) | 8.95 | (0.46 | ) | 138,599 | 0.99 | 1.03 | 29 | ||||||||||||||||||||||||||||||||||||
03/31/19 | 8.95 | 0.13 | 0.11 | 0.24 | (0.15 | ) | — | (0.15 | ) | 9.04 | 2.71 | 126,119 | 0.99 | 1.49 | 18 | |||||||||||||||||||||||||||||||||||||||
03/31/20 | 9.04 | 0.12 | 0.82 | 0.94 | (0.16 | ) | — | (0.16 | ) | 9.82 | 10.45 | 126,770 | 0.99 | 1.34 | 40 | |||||||||||||||||||||||||||||||||||||||
09/30/20# | 9.82 | 0.04 | (0.03 | ) | 0.01 | (0.07 | ) | — | (0.07 | ) | 9.76 | 0.10 | 125,189 | 0.99 | (4) | 0.75 | (4) | 11 | ||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
03/31/16 | $ | 9.72 | $ | 0.01 | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.11 | ) | $ | — | $ | (0.11 | ) | $ | 9.59 | (0.22 | )% | $ | 31,665 | 1.64 | % | 0.16 | % | 36 | % | ||||||||||||||||||||||||
03/31/17 | 9.59 | 0.02 | (0.37 | ) | (0.35 | ) | (0.10 | ) | — | (0.10 | ) | 9.14 | (3.66 | ) | 19,592 | 1.64 | 0.26 | 95 | ||||||||||||||||||||||||||||||||||||
03/31/18 | 9.14 | 0.04 | (0.13 | ) | (0.09 | ) | (0.10 | ) | — | (0.10 | ) | 8.95 | (1.00 | ) | 7,637 | 1.64 | 0.38 | 29 | ||||||||||||||||||||||||||||||||||||
03/31/19 | 8.95 | 0.08 | 0.10 | 0.18 | (0.09 | ) | — | (0.09 | ) | 9.04 | 2.05 | 7,507 | 1.64 | 0.84 | 18 | |||||||||||||||||||||||||||||||||||||||
03/31/20 | 9.04 | 0.06 | 0.81 | 0.87 | (0.10 | ) | — | (0.10 | ) | 9.81 | 9.64 | 11,652 | 1.64 | 0.69 | 40 | |||||||||||||||||||||||||||||||||||||||
09/30/20# | 9.81 | 0.01 | (0.03 | ) | (0.02 | ) | (0.04 | ) | — | (0.04 | ) | 9.75 | (0.22 | ) | 11,769 | 1.64 | (4) | 0.11 | (4) | 11 |
# | Unaudited |
(1) | Calculated based upon average shares outstanding. |
(2) | Total return is not annualized and does not reflect sales load, but does include expense reimbursements. |
(3) | Net of the following expense reimbursements, if applicable (based on average net assets): |
03/31/16 | 03/31/17 | 03/31/18 | 03/31/19 | 03/31/20 | 09/30/20#(4) | |||||||||||||||||||
AIG U.S. Government Securities Fund Class A | 0.37 | % | 0.35 | % | 0.37 | % | 0.37 | % | 0.40 | % | 0.41 | % | ||||||||||||
AIG U.S. Government Securities Fund Class C | 0.39 | 0.40 | 0.46 | 0.59 | 0.67 | 0.62 |
(4) | Annualized |
See Notes to Financial Statements
10 |
Table of Contents
SunAmerica Income Funds
FINANCIAL HIGHLIGHTS — (continued)
AIG STRATEGIC BOND FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period Ended | Net Asset Value, beginning of period | Net investment income(1) | Net gain (loss) on investments (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains on investments | Total Distri- butions | Net Asset Value, end of period | Total Return(2) | Net Assets, end of period (000’s) | Ratio of expenses to average net assets | Ratio of net investment income to average net assets | Portfolio Turnover | |||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
03/31/16 | $ | 3.49 | $ | 0.12 | $ | (0.20 | ) | $ | (0.08 | ) | $ | (0.14 | ) | $ | — | $ | (0.14 | ) | $ | 3.27 | (2.32 | )% | $ | 175,386 | 1.34 | % | 3.54 | % | 108 | % | ||||||||||||||||||||||||
03/31/17 | 3.27 | 0.10 | 0.14 | 0.24 | (0.11 | ) | — | (0.11 | ) | 3.40 | 7.38 | 163,163 | 1.32 | 3.00 | 109 | |||||||||||||||||||||||||||||||||||||||
03/31/18 | 3.40 | 0.11 | (0.03 | ) | 0.08 | (0.10 | ) | — | (0.10 | ) | 3.38 | 2.41 | 196,712 | 1.33 | 3.15 | 149 | ||||||||||||||||||||||||||||||||||||||
03/31/19 | 3.38 | 0.13 | (0.04 | ) | 0.09 | (0.16 | ) | — | (0.16 | ) | 3.31 | 2.86 | 153,979 | 1.14 | (3) | 3.89 | (3) | 123 | ||||||||||||||||||||||||||||||||||||
03/31/20 | 3.31 | 0.11 | (0.15 | ) | (0.04 | ) | (0.12 | ) | — | (0.12 | ) | 3.15 | (1.37 | ) | 143,815 | 1.10 | (3) | 3.14 | (3) | 85 | ||||||||||||||||||||||||||||||||||
09/30/20# | 3.15 | 0.05 | 0.29 | 0.34 | (0.06 | ) | — | (0.06 | ) | 3.43 | 10.76 | 161,992 | 1.11 | (3)(4) | 3.11 | (3)(4) | 64 | |||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
03/31/16 | $ | 3.49 | $ | 0.10 | $ | (0.20 | ) | $ | (0.10 | ) | $ | (0.12 | ) | $ | — | $ | (0.12 | ) | $ | 3.27 | (2.97 | )% | $ | 31,038 | 2.01 | % | 2.87 | % | 108 | % | ||||||||||||||||||||||||
03/31/17 | 3.27 | 0.08 | 0.14 | 0.22 | (0.09 | ) | — | (0.09 | ) | 3.40 | 6.66 | 29,762 | 1.99 | 2.33 | 109 | |||||||||||||||||||||||||||||||||||||||
03/31/18 | 3.40 | 0.09 | (0.04 | ) | 0.05 | (0.08 | ) | — | (0.08 | ) | 3.37 | 1.41 | 21,875 | 2.02 | 2.46 | 149 | ||||||||||||||||||||||||||||||||||||||
03/31/19 | 3.37 | 0.11 | (0.03 | ) | 0.08 | (0.14 | ) | — | (0.14 | ) | 3.31 | 2.43 | 16,015 | 1.86 | (3) | 3.17 | (3) | 123 | ||||||||||||||||||||||||||||||||||||
03/31/20 | 3.31 | 0.08 | (0.15 | ) | (0.07 | ) | (0.09 | ) | — | (0.09 | ) | 3.15 | (2.12 | ) | 13,423 | 1.84 | (3) | 2.42 | (3) | 85 | ||||||||||||||||||||||||||||||||||
09/30/20# | 3.15 | 0.04 | 0.29 | 0.33 | (0.05 | ) | — | (0.05 | ) | 3.43 | 10.36 | 15,095 | 1.84 | (3)(4) | 2.38 | (3)(4) | 64 | |||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
03/31/16 | $ | 3.50 | $ | 0.10 | $ | (0.19 | ) | $ | (0.09 | ) | $ | (0.12 | ) | $ | — | $ | (0.12 | ) | $ | 3.29 | (2.63 | )% | $ | 151,197 | 1.98 | % | 2.90 | % | 108 | % | ||||||||||||||||||||||||
03/31/17 | 3.29 | 0.08 | 0.13 | 0.21 | (0.09 | ) | — | (0.09 | ) | 3.41 | 6.35 | 128,332 | 1.97 | 2.35 | 109 | |||||||||||||||||||||||||||||||||||||||
03/31/18 | 3.41 | 0.09 | (0.03 | ) | 0.06 | (0.08 | ) | — | (0.08 | ) | 3.39 | 1.75 | 71,103 | 1.98 | 2.50 | 149 | ||||||||||||||||||||||||||||||||||||||
03/31/19 | 3.39 | 0.11 | (0.04 | ) | 0.07 | (0.14 | ) | — | (0.14 | ) | 3.32 | 2.18 | 52,782 | 1.81 | (3) | 3.22 | (3) | 123 | ||||||||||||||||||||||||||||||||||||
03/31/20 | 3.32 | 0.08 | (0.14 | ) | (0.06 | ) | (0.10 | ) | — | (0.10 | ) | 3.16 | (2.04 | ) | 49,730 | 1.78 | (3) | 2.47 | (3) | 85 | ||||||||||||||||||||||||||||||||||
09/30/20# | 3.16 | 0.04 | 0.29 | 0.33 | (0.05 | ) | — | (0.05 | ) | 3.44 | 10.35 | 47,919 | 1.81 | (3)(4) | 2.42 | (3)(4) | 64 | |||||||||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
03/31/16 | $ | 3.49 | $ | 0.12 | $ | (0.20 | ) | $ | (0.08 | ) | $ | (0.14 | ) | $ | — | $ | (0.14 | ) | $ | 3.27 | (2.14 | )% | $ | 30,065 | 1.15 | % | 3.71 | % | 108 | % | ||||||||||||||||||||||||
03/31/17 | 3.27 | 0.11 | 0.13 | 0.24 | (0.12 | ) | — | (0.12 | ) | 3.39 | 7.26 | 40,412 | 1.14 | 3.20 | 109 | |||||||||||||||||||||||||||||||||||||||
03/31/18 | 3.39 | 0.11 | (0.02 | ) | 0.09 | (0.11 | ) | — | (0.11 | ) | 3.37 | 2.65 | 70,239 | 1.14 | 3.34 | 149 | ||||||||||||||||||||||||||||||||||||||
03/31/19 | 3.37 | 0.14 | (0.03 | ) | 0.11 | (0.17 | ) | — | (0.17 | ) | 3.31 | 3.38 | 52,676 | 0.94 | (3) | 4.06 | (3) | 123 | ||||||||||||||||||||||||||||||||||||
03/31/20 | 3.31 | 0.11 | (0.14 | ) | (0.03 | ) | (0.13 | ) | — | (0.13 | ) | 3.15 | (1.16 | ) | 89,806 | 0.91 | (3) | 3.28 | (3) | 85 | ||||||||||||||||||||||||||||||||||
09/30/20# | 3.15 | 0.05 | 0.28 | 0.33 | (0.06 | ) | — | (0.06 | ) | 3.42 | 10.56 | 125,743 | 0.90 | (3)(4) | 3.32 | (3)(4) | 64 |
# | Unaudited |
(1) | Calculated based upon average shares outstanding. |
(2) | Total return is not annualized and does not reflect sales load, but does include expense reimbursements. |
(3) | Net of the following expense reimbursements and waivers, if applicable (based on average net assets): |
03/31/16 | 03/31/17 | 03/31/18 | 03/31/19 | 03/31/20 | 09/30/20#(4) | |||||||||||||||||||
AIG Strategic Bond Fund Class A | — | % | — | % | — | % | 0.23 | % | 0.27 | % | 0.27 | % | ||||||||||||
AIG Strategic Bond Fund Class B | — | — | — | 0.23 | 0.27 | 0.27 | ||||||||||||||||||
AIG Strategic Bond Fund Class C | — | — | — | 0.23 | 0.27 | 0.27 | ||||||||||||||||||
AIG Strategic Bond Fund Class W | — | — | — | 0.23 | 0.27 | 0.27 |
(4) | Annualized |
See Notes to Financial Statements
11 |
Table of Contents
SunAmerica Income Funds
FINANCIAL HIGHLIGHTS — (continued)
AIG FLEXIBLE CREDIT FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Period Ended | Net Asset Value, beginning of period | Net investment income(1) | Net gain (loss) on investments (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains on investment | Total Distri- butions | Net Asset Value, end of period | Total Return(2) | Net Assets, end of period (000’s) | Ratio of expenses to average net assets | Ratio of net investment income to average net assets | Portfolio Turnover | |||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||
03/31/16 | $ | 3.46 | $ | 0.13 | $ | (0.16 | ) | $ | (0.03 | ) | $ | (0.14 | ) | $ | — | $ | (0.14 | ) | $ | 3.29 | (0.93 | )% | $ | 125,775 | 1.45 | %(3) | 3.92 | %(3) | 52 | % | ||||||||||||||||||||||
03/31/17 | 3.29 | 0.14 | 0.16 | 0.30 | (0.15 | ) | — | (0.15 | ) | 3.44 | 9.11 | 144,880 | 1.43 | 4.21 | 69 | |||||||||||||||||||||||||||||||||||||
03/31/18 | 3.44 | 0.16 | (0.04 | ) | 0.12 | (0.16 | ) | — | (0.16 | ) | 3.40 | 3.54 | 133,268 | 1.33 | (3) | 4.60 | (3) | 63 | ||||||||||||||||||||||||||||||||||
03/31/19 | 3.40 | 0.18 | (0.09 | ) | 0.09 | (0.18 | ) | — | (0.18 | ) | 3.31 | 2.75 | 119,903 | 1.06 | (3) | 5.29 | (3) | 57 | ||||||||||||||||||||||||||||||||||
03/31/20 | 3.31 | 0.17 | (0.49 | ) | (0.32 | ) | (0.17 | ) | — | (0.17 | ) | 2.82 | (10.16 | ) | 75,556 | 1.04 | (3) | 5.12 | (3) | 67 | ||||||||||||||||||||||||||||||||
09/30/20# | 2.82 | 0.07 | 0.38 | 0.45 | (0.08 | ) | — | (0.08 | ) | 3.19 | 15.90 | 85,825 | 1.10 | (3)(4) | 4.66 | (3)(4) | 35 | |||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||
03/31/16 | $ | 3.48 | $ | 0.11 | $ | (0.16 | ) | $ | (0.05 | ) | $ | (0.12 | ) | $ | — | $ | (0.12 | ) | $ | 3.31 | (1.54 | )% | $ | 61,891 | 2.10 | %(3) | 3.27 | %(3) | 52 | % | ||||||||||||||||||||||
03/31/17 | 3.31 | 0.12 | 0.15 | 0.27 | (0.12 | ) | — | (0.12 | ) | 3.46 | 8.38 | 74,241 | 2.07 | 3.57 | 69 | |||||||||||||||||||||||||||||||||||||
03/31/18 | 3.46 | 0.14 | (0.04 | ) | 0.10 | (0.14 | ) | — | (0.14 | ) | 3.42 | 2.88 | 58,994 | 1.99 | (3) | 3.94 | (3) | 63 | ||||||||||||||||||||||||||||||||||
03/31/19 | 3.42 | 0.16 | (0.09 | ) | 0.07 | (0.16 | ) | — | (0.16 | ) | 3.33 | 2.09 | 55,505 | 1.72 | (3) | 4.63 | (3) | 57 | ||||||||||||||||||||||||||||||||||
03/31/20 | 3.33 | 0.15 | (0.50 | ) | (0.35 | ) | (0.15 | ) | — | (0.15 | ) | 2.83 | (11.02 | ) | 46,393 | 1.71 | (3) | 4.43 | (3) | 67 | ||||||||||||||||||||||||||||||||
09/30/20# | 2.83 | 0.06 | 0.39 | 0.45 | (0.07 | ) | — | (0.07 | ) | 3.21 | 15.85 | 44,138 | 1.75 | (3)(4) | 4.02 | (3)(4) | 35 | |||||||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||||||||||
03/31/16 | $ | 3.47 | $ | 0.13 | $ | (0.17 | ) | $ | (0.04 | ) | $ | (0.14 | ) | $ | — | $ | (0.14 | ) | $ | 3.29 | (1.02 | )% | $ | 90,441 | 1.25 | %(3) | 4.11 | %(3) | 52 | % | ||||||||||||||||||||||
03/31/17 | 3.29 | 0.15 | 0.15 | 0.30 | (0.15 | ) | — | (0.15 | ) | 3.44 | 9.34 | 157,377 | 1.21 | 4.44 | 69 | |||||||||||||||||||||||||||||||||||||
03/31/18 | 3.44 | 0.17 | (0.04 | ) | 0.13 | (0.17 | ) | — | (0.17 | ) | 3.40 | 3.76 | 131,163 | 1.12 | (3) | 4.79 | (3) | 63 | ||||||||||||||||||||||||||||||||||
03/31/19 | 3.40 | 0.18 | (0.07 | ) | 0.11 | (0.19 | ) | — | (0.19 | ) | 3.32 | 3.26 | 136,382 | 0.85 | (3) | 5.50 | (3) | 57 | ||||||||||||||||||||||||||||||||||
03/31/20 | 3.32 | 0.17 | (0.49 | ) | (0.32 | ) | (0.18 | ) | — | (0.18 | ) | 2.82 | (10.28 | ) | 132,805 | 0.83 | (3) | 5.28 | (3) | 67 | ||||||||||||||||||||||||||||||||
09/30/20# | 2.82 | 0.08 | 0.38 | 0.46 | (0.08 | ) | — | (0.08 | ) | 3.20 | 16.39 | 118,488 | 0.89 | (3)(4) | 4.88 | (3)(4) | 35 |
# | Unaudited |
(1) | Calculated based upon average shares outstanding. |
(2) | Total return is not annualized and does not reflect sales load, but does include expense reimbursements. |
(3) | Net of the following expense reimbursements and waivers, if applicable (based on average net assets): |
03/31/16 | 03/31/17 | 03/31/18 | 03/31/19 | 03/31/20 | 09/30/20#(4) | |||||||||||||||||||
AIG Flexible Credit Fund Class A | 0.03 | % | — | % | 0.11 | % | 0.39 | % | 0.40 | % | 0.40 | % | ||||||||||||
AIG Flexible Credit Fund Class C | 0.02 | — | 0.11 | 0.39 | 0.40 | 0.40 | ||||||||||||||||||
AIG Flexible Credit Fund Class W | 0.04 | — | 0.11 | 0.39 | 0.40 | 0.40 |
(4) | Annualized |
See Notes to Financial Statements
12 |
Table of Contents
AIG U.S. Government Securities Fund
PORTFOLIO PROFILE — September 30, 2020 — (unaudited)
Industry Allocation*
United States Treasury Notes | 55.0 | % | ||
United States Treasury Bonds | 23.6 | |||
Government National Mtg. Assoc. | 14.1 | |||
Federal Home Loan Mtg. Corp. | 4.9 | |||
Federal National Mtg. Assoc. | 1.4 | |||
Repurchase Agreements | 0.7 | |||
99.7 | % | |||
Credit Quality†#
Aaa | 99.3 | % | ||
Not Rated@ | 0.7 | |||
100.00 | % | |||
* | Calculated as a percentage of net assets |
† | Source: Moody’s |
# | Calculated as a percentage of total debt issues, excluding short-term securities. |
@ | Represents debt issues that either have no rating, or the rating is unavailable from the data source. |
13 |
Table of Contents
AIG U.S. Government Securities Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited)
Security Description | Principal Amount | Value (Note 2) | ||||||
U.S. GOVERNMENT AGENCIES — 20.4% | ||||||||
Federal Home Loan Mtg. Corp. — 4.9% | ||||||||
3.50% due 08/01/2030 | $ | 1,573,618 | $ | 1,674,185 | ||||
3.50% due 12/01/2044 | 2,917,989 | 3,150,129 | ||||||
4.00% due 04/01/2034 | 840,604 | 916,381 | ||||||
Federal Home Loan Mtg. Corp. REMIC | 928,144 | 1,005,755 | ||||||
6,746,450 | ||||||||
Federal National Mtg. Assoc. — 1.4% | ||||||||
2.50% due 11/01/2027 | 1,771,000 | 1,865,588 | ||||||
Government National Mtg. Assoc. — 14.1% | ||||||||
3.50% due 03/15/2042 | 178,140 | 188,238 | ||||||
3.50% due 06/15/2042 | 920,744 | 969,143 | ||||||
3.50% due 07/15/2042 | 185,418 | 195,097 | ||||||
3.50% due 02/20/2045 | 484,735 | 518,684 | ||||||
4.00% due 03/15/2039 | 100,854 | 108,380 | ||||||
4.00% due 06/15/2039 | 231,472 | 248,607 | ||||||
4.00% due 12/15/2039 | 150,324 | 161,792 | ||||||
4.00% due 08/15/2040 | 100,025 | 107,128 | ||||||
4.00% due 11/15/2040 | 229,624 | 249,656 | ||||||
4.00% due 09/15/2041 | 571,657 | 617,962 | ||||||
4.00% due 10/15/2041 | 23,571 | 24,902 | ||||||
4.00% due 11/15/2041 | 183,619 | 195,463 | ||||||
4.00% due 12/15/2041 | 252,499 | 268,686 | ||||||
4.00% due 01/15/2042 | 910,691 | 989,036 | ||||||
4.00% due 02/15/2042 | 234,786 | 255,617 | ||||||
4.00% due 03/15/2042 | 96,986 | 104,197 | ||||||
4.50% due 09/15/2033 | 173,511 | 191,490 | ||||||
4.50% due 04/15/2039 | 36,587 | 40,641 | ||||||
4.50% due 05/15/2039 | 61,969 | 68,406 | ||||||
4.50% due 06/15/2039 | 691,096 | 768,387 | ||||||
4.50% due 07/15/2039 | 203,961 | 225,892 | ||||||
4.50% due 09/15/2039 | 101,805 | 113,065 | ||||||
4.50% due 11/15/2039 | 85,341 | 94,986 | ||||||
4.50% due 12/15/2039 | 170,147 | 187,849 | ||||||
4.50% due 02/15/2040 | 442,761 | 489,171 | ||||||
4.50% due 03/15/2040 | 141,585 | 156,502 | ||||||
4.50% due 04/15/2040 | 78,769 | 86,959 | ||||||
4.50% due 07/15/2040 | 132,110 | 145,273 | ||||||
4.50% due 03/15/2041 | 698,512 | 777,703 | ||||||
4.50% due 04/15/2041 | 167,011 | 183,861 | ||||||
4.50% due 06/15/2041 | 112,515 | 123,081 | ||||||
4.50% due 08/15/2041 | 130,893 | 143,193 | ||||||
4.50% due 04/20/2044 | 386,253 | 429,164 | ||||||
5.00% due 08/15/2033 | 183,498 | 207,628 | ||||||
5.00% due 10/15/2033 | 358,077 | 406,450 | ||||||
5.00% due 05/15/2035 | 70,851 | 77,710 | ||||||
5.00% due 08/15/2035 | 191,465 | 217,656 | ||||||
5.00% due 05/15/2036 | 51,418 | 58,858 | ||||||
5.00% due 09/15/2036 | 78,012 | 89,300 | ||||||
5.00% due 01/15/2037 | 123,159 | 140,774 | ||||||
5.00% due 03/15/2037 | 29,281 | 32,781 | ||||||
5.00% due 04/15/2037 | 157,076 | 176,105 | ||||||
5.00% due 04/15/2038 | 191,221 | 218,653 | ||||||
5.00% due 05/15/2038 | 109,419 | 122,961 | ||||||
5.00% due 08/15/2038 | 319,725 | 366,020 | ||||||
5.00% due 02/15/2039 | 51,067 | 57,639 | ||||||
Government National Mtg. Assoc. (continued) | ||||||||
5.00% due 03/15/2039 | $ | 30,820 | $ | 33,726 | ||||
5.00% due 04/15/2039 | 65,767 | 75,381 | ||||||
5.00% due 07/20/2039 | 529,929 | 605,011 | ||||||
5.00% due 08/15/2039 | 173,405 | 197,258 | ||||||
5.00% due 09/20/2039 | 1,704,935 | 1,944,811 | ||||||
5.00% due 10/15/2039 | 310,314 | 349,605 | ||||||
5.00% due 11/15/2039 | 261,234 | 294,779 | ||||||
5.00% due 12/15/2039 | 232,773 | 260,664 | ||||||
5.00% due 04/15/2040 | 263,924 | 301,771 | ||||||
5.00% due 05/15/2040 | 408,352 | 460,561 | ||||||
5.00% due 07/20/2045 | 193,244 | 220,811 | ||||||
5.50% due 06/15/2033 | 288,306 | 335,578 | ||||||
5.50% due 07/15/2033 | 55,913 | 65,005 | ||||||
5.50% due 10/15/2033 | 88,958 | 104,219 | ||||||
5.50% due 01/15/2034 | 316,449 | 364,362 | ||||||
5.50% due 02/15/2034 | 180,811 | 202,583 | ||||||
5.50% due 04/20/2035 | 268,011 | 317,899 | ||||||
5.50% due 09/15/2035 | 247,949 | 284,928 | ||||||
5.50% due 10/15/2035 | 114,448 | 134,099 | ||||||
5.50% due 02/15/2038 | 69,658 | 80,023 | ||||||
5.50% due 04/15/2038 | 40,435 | 46,193 | ||||||
5.50% due 09/15/2039 | 27,928 | 31,730 | ||||||
5.50% due 03/15/2040 | 172 | 201 | ||||||
6.00% due 04/15/2028 | 78,610 | 89,654 | ||||||
6.00% due 08/15/2033 | 140,834 | 167,881 | ||||||
6.00% due 12/15/2033 | 55,425 | 62,853 | ||||||
6.00% due 09/20/2038 | 573,329 | 659,289 | ||||||
6.50% due 10/15/2031 | 14,422 | 15,937 | ||||||
19,307,558 | ||||||||
Total U.S. Government Agencies | ||||||||
(cost $26,949,226) | 27,919,596 | |||||||
U.S. GOVERNMENT TREASURIES — 78.6% | ||||||||
United States Treasury Bonds — 23.6% | ||||||||
2.00% due 02/15/2050 | 800,000 | 907,625 | ||||||
2.25% due 08/15/2049 | 300,000 | 357,809 | ||||||
2.50% due 02/15/2045 | 1,000,000 | 1,233,438 | ||||||
2.75% due 11/15/2042 | 2,000,000 | 2,565,703 | ||||||
3.13% due 11/15/2041 | 1,500,000 | 2,030,332 | ||||||
3.13% due 02/15/2042 | 1,100,000 | 1,492,691 | ||||||
3.38% due 11/15/2048 | 1,000,000 | 1,458,750 | ||||||
3.50% due 02/15/2039 | 2,000,000 | 2,811,172 | ||||||
4.25% due 11/15/2040 | 3,300,000 | 5,131,242 | ||||||
4.50% due 02/15/2036 | 1,500,000 | 2,271,914 | ||||||
2.75% due 08/15/2042 | 1,100,000 | 1,412,082 | ||||||
3.00% due 05/15/2042 | 2,000,000 | 2,663,594 | ||||||
3.00% due 02/15/2049 | 1,000,000 | 1,370,508 | ||||||
4.75% due 02/15/2041 | 4,000,000 | 6,607,656 | ||||||
32,314,516 | ||||||||
United States Treasury Notes — 55.0% | ||||||||
0.13% due 04/30/2022 | 1,000,000 | 1,000,039 | ||||||
0.13% due 05/31/2022 | 1,000,000 | 999,922 | ||||||
0.13% due 06/30/2022 | 1,000,000 | 1,000,000 | ||||||
0.13% due 05/15/2023 | 1,000,000 | 999,453 | ||||||
0.25% due 04/15/2023 | 1,000,000 | 1,002,695 | ||||||
0.25% due 06/15/2023 | 600,000 | 601,594 | ||||||
0.25% due 05/31/2025 | 300,000 | 300,035 |
14 |
Table of Contents
AIG U.S. Government Securities Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount | Value (Note 2) | ||||||
U.S. GOVERNMENT TREASURIES (continued) |
| |||||||
United States Treasury Notes (continued) | ||||||||
0.38% due 03/31/2022 | $ | 800,000 | $ | 802,906 | ||||
0.50% due 03/15/2023 | 1,000,000 | 1,008,672 | ||||||
0.50% due 03/31/2025 | 800,000 | 809,281 | ||||||
0.50% due 04/30/2027 | 400,000 | 401,937 | ||||||
0.50% due 05/31/2027 | 1,000,000 | 1,004,297 | ||||||
0.63% due 05/15/2030 | 1,000,000 | 997,031 | ||||||
0.63% due 08/15/2030 | 1,000,000 | 995,000 | ||||||
1.25% due 10/31/2021 | 800,000 | 809,687 | ||||||
1.25% due 07/31/2023 | 1,000,000 | 1,030,977 | ||||||
1.25% due 08/31/2024 | 500,000 | 520,293 | ||||||
1.50% due 08/31/2021 | 1,000,000 | 1,012,500 | ||||||
1.50% due 09/30/2021 | 1,100,000 | 1,114,953 | ||||||
1.50% due 10/31/2021 | 1,000,000 | 1,014,766 | ||||||
1.50% due 01/31/2022 | 1,175,000 | 1,196,389 | ||||||
1.50% due 08/15/2022 | 1,000,000 | 1,025,781 | ||||||
1.50% due 09/15/2022 | 500,000 | 513,418 | ||||||
1.50% due 01/15/2023 | 800,000 | 824,812 | ||||||
1.50% due 02/28/2023 | 2,000,000 | 2,065,703 | ||||||
1.50% due 09/30/2024 | 800,000 | 841,094 | ||||||
1.50% due 08/15/2026 | 2,000,000 | 2,132,500 | ||||||
1.50% due 02/15/2030 | 400,000 | 431,750 | ||||||
1.63% due 08/15/2022 | 1,000,000 | 1,028,086 | ||||||
1.63% due 11/15/2022 | 1,000,000 | 1,031,562 | ||||||
1.63% due 05/15/2026 | 1,000,000 | 1,071,602 | ||||||
1.63% due 08/15/2029 | 500,000 | 544,531 | ||||||
1.75% due 10/31/2020 | 200,000 | 200,269 | ||||||
1.75% due 05/15/2022 | 1,875,000 | 1,924,219 | ||||||
1.75% due 05/15/2023 | 1,000,000 | 1,041,992 | ||||||
1.75% due 11/15/2029 | 1,000,000 | 1,101,523 | ||||||
1.88% due 03/31/2022 | 2,500,000 | 2,565,332 | ||||||
2.00% due 08/31/2021 | 2,000,000 | 2,034,141 | ||||||
2.00% due 11/15/2021 | 1,000,000 | 1,020,937 | ||||||
2.00% due 02/15/2022 | 1,000,000 | 1,025,742 | ||||||
2.00% due 11/30/2022 | 1,000,000 | 1,040,352 | ||||||
2.00% due 02/15/2023 | 1,000,000 | 1,043,789 | ||||||
2.00% due 05/31/2024 | 1,000,000 | 1,065,977 | ||||||
2.00% due 02/15/2025 | 5,000,000 | 5,383,008 | ||||||
2.00% due 08/15/2025 | 3,000,000 | 3,251,133 | ||||||
2.00% due 11/15/2026 | 2,700,000 | 2,964,199 | ||||||
2.13% due 12/31/2022 | 1,000,000 | 1,044,687 | ||||||
United States Treasury Notes (continued) | ||||||||
2.13% due 03/31/2024 | $ | 2,000,000 | $ | 2,135,469 | ||||
2.25% due 11/15/2024 | 1,000,000 | 1,083,047 | ||||||
2.25% due 11/15/2025 | 1,000,000 | 1,099,375 | ||||||
2.25% due 08/15/2027 | 900,000 | 1,009,652 | ||||||
2.25% due 11/15/2027 | 2,000,000 | 2,249,375 | ||||||
2.38% due 08/15/2024 | 1,000,000 | 1,083,789 | ||||||
2.50% due 08/15/2023 | 1,000,000 | 1,067,266 | ||||||
2.50% due 05/15/2024 | 1,000,000 | 1,083,281 | ||||||
2.63% due 11/15/2020 | 200,000 | 200,615 | ||||||
2.63% due 02/28/2023 | 3,000,000 | 3,179,766 | ||||||
2.75% due 11/15/2023 | 2,500,000 | 2,700,977 | ||||||
2.75% due 02/15/2024 | 1,000,000 | 1,086,758 | ||||||
2.88% due 10/31/2020 | 500,000 | 501,131 | ||||||
75,321,067 | ||||||||
Total U.S. Government Treasuries | ||||||||
(cost $96,313,984) | 107,635,583 | |||||||
Total Long-Term Investment Securities | ||||||||
(cost $123,263,210) | 135,555,179 | |||||||
REPURCHASE AGREEMENTS — 0.7% | ||||||||
Agreement with Fixed Income Clearing Corp., bearing interest at 0.00% dated 09/30/2020, to be repurchased 10/01/2020 in the amount of $1,030,000 and collateralized by $845,000 of United States Treasury Bonds, bearing interest at 2.38% due 11/15/2049 and having an approximate value of $1,050,639 | 1,030,000 | 1,030,000 | ||||||
TOTAL INVESTMENTS | ||||||||
(cost $124,293,210)(2) | 99.7 | % | 136,585,179 | |||||
Other assets less liabilities | 0.3 | 373,269 | ||||||
NET ASSETS | 100.0 | % | $ | 136,958,448 | ||||
(1) | Collateralized Mortgage Obligation |
(2) | See Note 5 for cost of investments on a tax basis. |
REMIC — Real Estate Mortgage Investment Conduit
The following is a summary of the inputs used to value the Fund’s net assets as of September 30, 2020 (see Note 2):
Level 1 — Unadjusted Quoted Prices | Level 2 — Other Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
ASSETS: | ||||||||||||||||
Investments at Value:* | ||||||||||||||||
U.S. Government Agencies | $ | — | $ | 27,919,596 | $ | — | $ | 27,919,596 | ||||||||
U.S. Government Treasuries | — | 107,635,583 | — | 107,635,583 | ||||||||||||
Repurchase Agreements | — | 1,030,000 | — | 1,030,000 | ||||||||||||
Total Investments at Value | $ | — | $ | 136,585,179 | $ | — | $ | 136,585,179 | ||||||||
* | For a detailed presentation of investments, please refer to the Portfolio of Investments. |
See Notes to Financial Statements
15 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO PROFILE — September 30, 2020 — (unaudited)
Industry Allocation*
Sovereign | 15.5 | % | ||
Federal National Mtg. Assoc. | 7.7 | |||
Registered Investment Companies | 7.1 | |||
Federal Home Loan Mtg. Corp. | 4.6 | |||
Diversified Banking Institutions | 2.7 | |||
Real Estate Investment Trusts | 2.7 | |||
Pipelines | 2.7 | |||
Government National Mtg. Assoc. | 2.1 | |||
Diversified Financial Services | 2.0 | |||
Oil Companies-Exploration & Production | 1.9 | |||
Banks-Commercial | 1.8 | |||
Cable/Satellite TV | 1.4 | |||
Oil Companies-Integrated | 1.4 | |||
Auto-Cars/Light Trucks | 1.3 | |||
Electric-Integrated | 1.2 | |||
Telephone-Integrated | 1.2 | |||
Uniform Mtg. Backed Securities | 1.2 | |||
Cellular Telecom | 1.1 | |||
Medical-Hospitals | 1.0 | |||
Satellite Telecom | 0.9 | |||
Electric-Generation | 0.9 | |||
Finance-Consumer Loans | 0.8 | |||
Medical-Drugs | 0.7 | |||
Containers-Paper/Plastic | 0.7 | |||
Food-Misc./Diversified | 0.7 | |||
Electric-Distribution | 0.7 | |||
Airlines | 0.7 | |||
Enterprise Software/Service | 0.7 | |||
Distribution/Wholesale | 0.7 | |||
Chemicals-Diversified | 0.7 | |||
Television | 0.7 | |||
Computer Services | 0.6 | |||
United States Treasury Notes | 0.6 | |||
Retail-Restaurants | 0.6 | |||
Insurance-Life/Health | 0.6 | |||
Metal-Copper | 0.6 | |||
Oil-Field Services | 0.5 | |||
Batteries/Battery Systems | 0.5 | |||
Containers-Metal/Glass | 0.5 | |||
Protection/Safety | 0.5 | |||
Food-Retail | 0.4 | |||
Security Services | 0.4 | |||
Commercial Services | 0.4 | |||
Computers | 0.4 | |||
Independent Power Producers | 0.4 | |||
Paper & Related Products | 0.4 | |||
Metal-Iron | 0.4 | |||
Retail-Petroleum Products | 0.4 | |||
Agricultural Chemicals | 0.4 | |||
Multimedia | 0.4 | |||
Hotels/Motels | 0.4 | |||
Diversified Minerals | 0.4 | |||
Resorts/Theme Parks | 0.4 | |||
Electronic Parts Distribution | 0.4 | |||
Casino Hotels | 0.4 | |||
Auto/Truck Parts & Equipment-Original | 0.4 | |||
Telecom Services | 0.4 | |||
Medical-Generic Drugs | 0.4 | |||
Cosmetics & Toiletries | 0.4 | |||
Broadcast Services/Program | 0.3 | |||
Chemicals-Specialty | 0.3 | |||
Cruise Lines | 0.3 | % | ||
Federal Home Loan Bank | 0.3 | |||
Finance-Leasing Companies | 0.3 | |||
Aerospace/Defense-Equipment | 0.3 | |||
Real Estate Management/Services | 0.3 | |||
Investment Companies | 0.3 | |||
Internet Content-Entertainment | 0.3 | |||
Food-Wholesale/Distribution | 0.3 | |||
E-Commerce/Services | 0.3 | |||
Finance-Mortgage Loan/Banker | 0.3 | |||
Brewery | 0.3 | |||
Human Resources | 0.3 | |||
Auction Houses/Art Dealers | 0.3 | |||
Steel-Producers | 0.3 | |||
Investment Management/Advisor Services | 0.3 | |||
Finance-Auto Loans | 0.3 | |||
Applications Software | 0.3 | |||
Insurance-Property/Casualty | 0.3 | |||
Banks-Super Regional | 0.2 | |||
Building Products-Doors & Windows | 0.2 | |||
Motion Pictures & Services | 0.2 | |||
Rental Auto/Equipment | 0.2 | |||
Transport-Air Freight | 0.2 | |||
Finance-Credit Card | 0.2 | |||
Real Estate Operations & Development | 0.2 | |||
Computer Software | 0.2 | |||
Electronic Components-Semiconductors | 0.2 | |||
SupraNational Banks | 0.2 | |||
Medical-Biomedical/Gene | 0.2 | |||
Casino Services | 0.2 | |||
Computers-Integrated Systems | 0.2 | |||
Commercial Services-Finance | 0.2 | |||
Building & Construction Products-Misc. | 0.2 | |||
Vitamins & Nutrition Products | 0.2 | |||
Non-Hazardous Waste Disposal | 0.2 | |||
Theaters | 0.2 | |||
Coal | 0.2 | |||
Food-Meat Products | 0.2 | |||
Oil Refining & Marketing | 0.2 | |||
Metal-Aluminum | 0.2 | |||
Recycling | 0.2 | |||
Direct Marketing | 0.2 | |||
Finance-Investment Banker/Broker | 0.2 | |||
Machinery-Farming | 0.2 | |||
Pharmacy Services | 0.2 | |||
Transport-Services | 0.2 | |||
Medical Labs & Testing Services | 0.2 | |||
Industrial Gases | 0.2 | |||
Savings & Loans/Thrifts | 0.2 | |||
Auto-Heavy Duty Trucks | 0.2 | |||
Building Products-Wood | 0.2 | |||
Banks-Money Center | 0.2 | |||
Aerospace/Defense | 0.2 | |||
Metal-Diversified | 0.2 | |||
Building-Residential/Commercial | 0.1 | |||
Transport-Rail | 0.1 | |||
Diagnostic Equipment | 0.1 | |||
Research & Development | 0.1 | |||
Gas-Distribution | 0.1 | |||
Building Products-Air & Heating | 0.1 | |||
Consumer Products-Misc. | 0.1 |
16 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO PROFILE — September 30, 2020 — (unaudited) (continued)
Industry Allocation* (continued)
| ||||
Data Processing/Management | 0.1 | % | ||
Building & Construction-Misc. | 0.1 | |||
Retail-Pawn Shops | 0.1 | |||
Electric Products-Misc. | 0.1 | |||
Advertising Sales | 0.1 | |||
Internet Telephone | 0.1 | |||
Trucking/Leasing | 0.1 | |||
Poultry | 0.1 | |||
Food-Dairy Products | 0.1 | |||
Insurance Brokers | 0.1 | |||
Internet Connectivity Services | 0.1 | |||
Retail-Appliances | 0.1 | |||
Energy-Alternate Sources | 0.1 | |||
Airport Development/Maintenance | 0.1 | |||
Medical Products | 0.1 | |||
Warehousing & Harbor Transportation Services | 0.1 | |||
Semiconductor Components-Integrated Circuits | 0.1 | |||
Diversified Manufacturing Operations | 0.1 | |||
Insurance-Multi-line | 0.1 | |||
Retail-Apparel/Shoe | 0.1 | |||
Machinery-Pumps | 0.1 | |||
Machinery-Construction & Mining | 0.1 | |||
Banks-Special Purpose | 0.1 | |||
Telecom Equipment-Fiber Optics | 0.1 | |||
Petrochemicals | 0.1 | |||
Tools-Hand Held | 0.1 | |||
Web Portals/ISP | 0.1 | |||
Electronic Measurement Instruments | 0.1 | |||
Oil Field Machinery & Equipment | 0.1 | |||
Transport-Equipment & Leasing | 0.1 | |||
Medical-HMO | 0.1 | |||
Retail-Auto Parts | 0.1 | |||
Medical Information Systems | 0.1 | |||
Auto Repair Centers | 0.1 | |||
Financial Guarantee Insurance | 0.1 | |||
Chemicals-Other | 0.1 | |||
Finance-Commercial | 0.1 | |||
Gold Mining | 0.1 | |||
Retail-Sporting Goods | 0.1 | |||
Retail-Regional Department Stores | 0.1 | |||
Physical Therapy/Rehabilitation Centers | 0.1 | |||
Advertising Agencies | 0.1 | |||
Transport-Truck | 0.1 | |||
Metal Processors & Fabrication | 0.1 | |||
Computer Graphics | 0.1 | |||
Internet Financial Services | 0.1 | |||
Machinery-General Industrial | 0.1 | |||
Publishing-Periodicals | 0.1 | |||
100.8% | ||||
Credit Quality†#
Aaa | 18.4 | % | ||
Aa | 2.7 | |||
A | 6.2 | |||
Baa | 18.0 | |||
Ba | 18.1 | |||
B | 23.3 | |||
Caa | 5.3 | |||
Not Rated@ | 8.0 | |||
100.0% | ||||
* | Calculated as a percentage of net assets |
† | Source: Moody’s |
# | Calculated as a percentage of total debt issues, excluding short-term securities. |
@ | Represents debt issues that either have no rating, or the rating is unavailable from the data source. |
17 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
ASSET BACKED SECURITIES — 1.7% | ||||||||
Diversified Financial Services — 1.7% | ||||||||
AmeriCredit Automobile Receivables Trust | $ | 200,000 | $ | 203,877 | ||||
BA Credit Card Trust | 200,000 | 205,766 | ||||||
BA Credit Card Trust | 209,000 | 212,118 | ||||||
BANK | 239,000 | 257,169 | ||||||
Benchmark Mtg. Trust | 300,000 | 346,871 | ||||||
BX Commercial Mtg. Trust FRS | 400,000 | 385,122 | ||||||
Capital One Prime Auto Receivables Trust | 100,000 | 102,179 | ||||||
CarMax Auto Owner Trust | 100,000 | 102,038 | ||||||
CarMax Auto Owner Trust | 65,000 | 66,795 | ||||||
CarMax Auto Owner Trust | 200,000 | 205,063 | ||||||
Chase Mtg. Finance Corp. VRS | 210,640 | 217,244 | ||||||
Citibank Credit Card Issuance Trust | 100,000 | 100,682 | ||||||
COMM Mtg. Trust VRS | 132,000 | 138,987 | ||||||
GM Financial Consumer Automobile Receivables Trust | 50,000 | 51,103 | ||||||
Honda Auto Receivables Owner Trust | 160,000 | 159,965 | ||||||
Honda Auto Receivables Owner Trust | 100,000 | 101,889 | ||||||
Honda Auto Receivables Owner Trust | 70,000 | 71,539 | ||||||
ILPT Trust | 590,000 | 672,782 | ||||||
Jackson Park Trust | 500,000 | 533,890 | ||||||
Diversified Financial Services (continued) | ||||||||
JP Morgan Mtg. Trust VRS | 277,230 | 278,255 | ||||||
JP Morgan Mtg. Trust VRS | 259,551 | 261,134 | ||||||
Morgan Stanley Capital Barclays Bank Trust | 185,000 | 184,473 | ||||||
MTRO Commercial Mtg. Trust FRS | 350,000 | 348,683 | ||||||
One Bryant Park Trust | 390,000 | 414,984 | ||||||
Shellpoint Co-Originator Trust VRS | 89,364 | 91,715 | ||||||
Toyota Auto Loan Extended Note Trust | 100,000 | 106,717 | ||||||
Toyota Auto Receivables Owner Trust | 125,000 | 130,046 | ||||||
Total Asset Backed Securities | ||||||||
(cost $5,725,791) | 5,951,086 | |||||||
U.S. CORPORATE BONDS & NOTES — 37.8% | ||||||||
Advertising Agencies — 0.1% | ||||||||
Omnicom Group, Inc. | 126,000 | 129,605 | ||||||
Omnicom Group, Inc. | 27,000 | 31,602 | ||||||
161,207 | ||||||||
Advertising Sales — 0.1% | ||||||||
National CineMedia LLC | 527,000 | 440,045 | ||||||
Aerospace/Defense — 0.1% | ||||||||
BAE Systems Holdings, Inc. | 177,000 | 199,798 | ||||||
Aerospace/Defense-Equipment — 0.3% | ||||||||
Moog, Inc. | 415,000 | 424,358 | ||||||
Spirit AeroSystems, Inc. | 607,000 | 615,340 | ||||||
1,039,698 | ||||||||
Airlines — 0.5% | ||||||||
American Airlines, Inc. | 830,000 | 800,950 |
18 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) | ||||||||
Airlines (continued) | ||||||||
Delta Air Lines, Inc. | $ | 723,000 | $ | 793,872 | ||||
1,594,822 | ||||||||
Applications Software — 0.2% | ||||||||
SS&C Technologies, Inc. | 570,000 | 605,750 | ||||||
Auction Houses/Art Dealers — 0.3% | ||||||||
Sotheby’s | 871,000 | 871,000 | ||||||
Auto-Cars/Light Trucks — 1.1% | ||||||||
Daimler Finance North America LLC | 228,000 | 230,374 | ||||||
Ford Motor Co. | 629,000 | 569,512 | ||||||
Ford Motor Co. | 865,000 | 932,038 | ||||||
Ford Motor Co. | 96,000 | 110,760 | ||||||
Ford Motor Credit Co LLC | EUR 272,000 | 310,351 | ||||||
Ford Motor Credit Co. LLC | 200,000 | 206,250 | ||||||
General Motors Co. | 97,000 | 118,140 | ||||||
General Motors Financial Co., Inc. | EUR 585,000 | 679,005 | ||||||
General Motors Financial Co., Inc. | 126,000 | 128,913 | ||||||
Hyundai Capital America | 84,000 | 89,008 | ||||||
Tesla, Inc. | 344,000 | 356,040 | ||||||
3,730,391 | ||||||||
Auto-Heavy Duty Trucks — 0.2% | ||||||||
Allison Transmission, Inc. | 361,000 | 364,631 | ||||||
Cummins, Inc. | 88,000 | 88,268 | ||||||
Auto-Heavy Duty Trucks (continued) | ||||||||
PACCAR Financial Corp. | $ | 81,000 | $ | 81,573 | ||||
534,472 | ||||||||
Auto/Truck Parts & Equipment-Original — 0.2% | ||||||||
BorgWarner, Inc. | 102,000 | 107,643 | ||||||
Dana, Inc. | 379,000 | 388,475 | ||||||
Lear Corp. | 77,000 | 83,520 | ||||||
579,638 | ||||||||
Banks-Commercial — 0.5% | ||||||||
BankUnited, Inc. | 418,000 | 474,517 | ||||||
BankUnited, Inc. | 236,000 | 259,502 | ||||||
Citizens Financial Group, Inc. | 29,000 | 30,748 | ||||||
Citizens Financial Group, Inc. | 71,000 | 70,799 | ||||||
Citizens Financial Group, Inc. | 44,000 | 48,569 | ||||||
First Horizon Bank | 250,000 | 282,424 | ||||||
Regions Financial Corp. | 209,000 | 310,778 | ||||||
Santander Holdings USA, Inc. | 65,000 | 69,555 | ||||||
Zions Bancorp NA | 250,000 | 249,167 | ||||||
1,796,059 | ||||||||
Banks-Super Regional — 0.2% | ||||||||
Wells Fargo & Co. | 29,000 | 30,255 | ||||||
Wells Fargo & Co. | 212,000 | 221,773 | ||||||
Wells Fargo & Co. | 64,000 | 73,329 |
19 |
Table of Contents
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PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) | ||||||||
Banks-Super Regional (continued) | ||||||||
Wells Fargo & Co. | $ | 188,000 | $ | 229,418 | ||||
Wells Fargo & Co. | 207,000 | 283,310 | ||||||
838,085 | ||||||||
Batteries/Battery Systems — 0.5% | ||||||||
Energizer Holdings, Inc. | 495,000 | 499,950 | ||||||
Energizer Holdings, Inc. | 535,000 | 575,232 | ||||||
EnerSys | 780,000 | 805,350 | ||||||
1,880,532 | ||||||||
Beverages-Non-alcoholic — 0.0% | ||||||||
Coca-Cola Co. | 124,000 | 123,877 | ||||||
Brewery — 0.2% | ||||||||
Anheuser-Busch Cos. LLC/Anheuser- | 174,000 | 214,547 | ||||||
Anheuser-Busch InBev Worldwide, Inc. | 276,000 | 329,115 | ||||||
543,662 | ||||||||
Broadcast Services/Program — 0.3% | ||||||||
Discovery Communications LLC | 120,000 | 146,645 | ||||||
Univision Communications, Inc. | 67,000 | 63,482 | ||||||
Univision Communications, Inc. | 1,004,000 | 980,155 | ||||||
1,190,282 | ||||||||
Building & Construction Products-Misc. — 0.2% | ||||||||
Owens Corning | 165,000 | 181,372 | ||||||
Standard Industries, Inc. | 415,000 | 409,603 | ||||||
Standard Industries, Inc. | 135,000 | 140,400 | ||||||
731,375 | ||||||||
Building Products-Air & Heating — 0.1% | ||||||||
Carrier Global Corp. | 65,000 | 67,992 | ||||||
Carrier Global Corp. | 174,000 | 182,304 | ||||||
Carrier Global Corp. | 75,000 | 79,675 | ||||||
329,971 | ||||||||
Building Products-Cement — 0.0% | ||||||||
Martin Marietta Materials, Inc. | 128,000 | 143,877 | ||||||
Building Products-Doors & Windows — 0.2% | ||||||||
Griffon Corp. | 730,000 | 761,996 | ||||||
Building Products-Wood — 0.2% | ||||||||
Boise Cascade Co. | 365,000 | 392,375 | ||||||
Masco Corp. | 132,000 | 132,050 | ||||||
524,425 | ||||||||
Building-Residential/Commercial — 0.0% | ||||||||
Toll Brothers Finance Corp. | 135,000 | 146,475 | ||||||
Cable/Satellite TV — 1.1% | ||||||||
Block Communications, Inc. | 697,000 | 710,940 | ||||||
CCO Holdings LLC/CCO Holdings Capital Corp. | 203,000 | 213,150 | ||||||
CCO Holdings LLC/CCO Holdings Capital Corp. | 300,000 | 308,625 | ||||||
CCO Holdings LLC/CCO Holdings Capital Corp. | 565,000 | 612,319 | ||||||
Charter Communications Operating LLC/Charter Communications Operating Capital | 32,000 | 31,625 | ||||||
Charter Communications Operating LLC/Charter Communications Operating Capital | 89,000 | 101,205 | ||||||
Charter Communications Operating LLC/Charter Communications Operating Capital | 23,000 | 28,152 |
20 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) | ||||||||
Cable/Satellite TV (continued) | ||||||||
Charter Communications Operating LLC/Charter Communications Operating Capital | $ | 63,000 | $ | 86,398 | ||||
Comcast Corp. | 109,000 | 102,181 | ||||||
Comcast Corp. | 124,000 | 139,902 | ||||||
Comcast Corp. | 53,000 | 61,983 | ||||||
Comcast Corp. | 51,000 | 60,518 | ||||||
Comcast Corp. | 96,000 | 122,702 | ||||||
CSC Holdings LLC | 425,000 | 455,813 | ||||||
CSC Holdings LLC | 689,000 | 725,241 | ||||||
Time Warner Cable LLC | 136,000 | 180,807 | ||||||
3,941,561 | ||||||||
Casino Hotels — 0.2% | ||||||||
Boyd Gaming Corp. | 271,000 | 265,919 | ||||||
Boyd Gaming Corp. | 355,000 | 369,622 | ||||||
635,541 | ||||||||
Casino Services — 0.2% | ||||||||
Caesars Entertainment, Inc. | 630,000 | 658,504 | ||||||
Cellular Telecom — 0.6% | ||||||||
Sprint Corp. | 1,615,000 | 1,855,231 | ||||||
T-Mobile USA, Inc. | 22,000 | 21,769 | ||||||
T-Mobile USA, Inc. | 187,000 | 212,174 | ||||||
2,089,174 | ||||||||
Chemicals-Diversified — 0.3% | ||||||||
Olin Corp. | 443,000 | 516,361 | ||||||
Westlake Chemical Corp. | EUR | 160,000 | 184,331 | |||||
Westlake Chemical Corp. | 174,000 | 186,620 | ||||||
887,312 | ||||||||
Chemicals-Specialty — 0.2% | ||||||||
Ecolab, Inc. | 141,000 | 146,114 | ||||||
Huntsman International LLC | 148,000 | 166,480 | ||||||
Minerals Technologies, Inc. | 495,000 | 512,221 | ||||||
824,815 | ||||||||
Coal — 0.2% | ||||||||
SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp. | 745,000 | 672,005 | ||||||
Commercial Services — 0.3% | ||||||||
Nielsen Finance LLC/Nielsen Finance Co. | 435,000 | 436,088 | ||||||
Nielsen Finance LLC/Nielsen Finance Co | 161,000 | 166,522 | ||||||
Nielsen Finance LLC/Nielsen Finance Co | 255,000 | 263,925 | ||||||
Quanta Services, Inc. | 125,000 | 127,576 | ||||||
994,111 | ||||||||
Commercial Services-Finance — 0.1% | ||||||||
MPH Acquisition Holdings LLC | 224,000 | 230,127 | ||||||
S&P Global, Inc. | 36,000 | 32,613 | ||||||
262,740 | ||||||||
Computer Services — 0.6% | ||||||||
Banff Merger Sub, Inc. | 755,000 | 798,110 |
21 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) | ||||||||
Computer Services (continued) | ||||||||
Leidos, Inc. | $ | 75,000 | $ | 83,186 | ||||
Leidos, Inc. | 108,000 | 126,571 | ||||||
Presidio Holdings, Inc. | 580,000 | 607,550 | ||||||
Tempo Acquisition LLC/Tempo Acquisition Finance Corp. | 109,000 | 114,178 | ||||||
Tempo Acquisition LLC/Tempo Acquisition Finance Corp. | 450,000 | 459,274 | ||||||
2,188,869 | ||||||||
Computers — 0.4% | ||||||||
Apple, Inc. | 104,000 | 111,196 | ||||||
Dell International LLC/EMC Corp. | 506,000 | 526,336 | ||||||
Dell International LLC/EMC Corp. | 145,000 | 190,681 | ||||||
Hewlett Packard Enterprise Co. | 305,000 | 307,245 | ||||||
Hewlett Packard Enterprise Co. | 115,000 | 130,042 | ||||||
Hewlett Packard Enterprise Co. | 130,000 | 162,714 | ||||||
1,428,214 | ||||||||
Computers-Integrated Systems — 0.2% | ||||||||
Diebold Nixdorf, Inc. | 420,000 | 382,410 | ||||||
Diebold Nixdorf, Inc. | 279,000 | 294,345 | ||||||
676,755 | ||||||||
Consumer Products-Misc. — 0.1% | ||||||||
Central Garden & Pet Co. | 375,000 | 393,750 | ||||||
Containers-Metal/Glass — 0.1% | ||||||||
Silgan Holdings, Inc. | 501,000 | 509,767 | ||||||
Containers-Paper/Plastic — 0.1% | ||||||||
Sealed Air Corp. | 241,000 | 261,033 | ||||||
Sonoco Products Co | 166,000 | 179,935 | ||||||
440,968 | ||||||||
Cosmetics & Toiletries — 0.3% | ||||||||
Coty, Inc. | 1,146,000 | 899,610 | ||||||
Data Processing/Management — 0.1% | ||||||||
Fiserv, Inc. | EUR | 275,000 | 343,806 | |||||
Diagnostic Equipment — 0.1% | ||||||||
Danaher Corp. | EUR | 140,000 | 180,823 | |||||
Ortho-Clinical Diagnostics, Inc./Ortho-Clinical Diagnostics SA | 273,000 | 283,920 | ||||||
Ortho-Clinical Diagnostics, Inc./Ortho-Clinical Diagnostics SA | 44,000 | 44,660 | ||||||
509,403 | ||||||||
Direct Marketing — 0.1% | ||||||||
Terrier Media Buyer, Inc. | 405,000 | 408,037 | ||||||
Distribution/Wholesale — 0.6% | ||||||||
H&E Equipment Services, Inc. | 717,000 | 747,472 | ||||||
KAR Auction Services, Inc. | 563,000 | 562,989 | ||||||
Performance Food Group, Inc. | 588,000 | 605,640 | ||||||
1,916,101 | ||||||||
Diversified Banking Institutions — 1.2% | ||||||||
Bank of America Corp. | EUR | 225,000 | 268,931 | |||||
Bank of America Corp. | 121,000 | 120,275 | ||||||
Bank of America Corp. | 239,000 | 251,984 | ||||||
Bank of America Corp. | 60,000 | 74,300 |
22 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) | ||||||||
Diversified Banking Institutions (continued) | ||||||||
Bank of America Corp. | $ | 327,000 | $ | 374,650 | ||||
Citigroup, Inc. | GBP | 100,000 | 136,376 | |||||
Citigroup, Inc. | 62,000 | 69,695 | ||||||
Citigroup, Inc. | 179,000 | 207,567 | ||||||
Citigroup, Inc. | 98,000 | 122,988 | ||||||
Citigroup, Inc. | 130,000 | 170,831 | ||||||
Citigroup, Inc. | 148,000 | 199,373 | ||||||
Goldman Sachs Group, Inc. | EUR | 165,000 | 196,120 | |||||
Goldman Sachs Group, Inc. | 265,000 | 293,147 | ||||||
Goldman Sachs Group, Inc. | 269,000 | 390,838 | ||||||
JPMorgan Chase & Co. | 176,000 | 176,067 | ||||||
JPMorgan Chase & Co. | 391,000 | 404,823 | ||||||
JPMorgan Chase & Co. | 44,000 | 47,208 | ||||||
JPMorgan Chase & Co. | 51,000 | 54,729 | ||||||
JPMorgan Chase & Co. | 191,000 | 214,839 | ||||||
Morgan Stanley | 59,000 | 67,790 | ||||||
Morgan Stanley | 312,000 | 353,577 | ||||||
Morgan Stanley | 26,000 | 30,546 | ||||||
4,226,654 | ||||||||
Diversified Manufacturing Operations — 0.1% | ||||||||
General Electric Co. | EUR | 200,000 | 238,384 | |||||
General Electric Co. | 46,000 | 46,902 | ||||||
Illinois Tool Works, Inc. | 95,000 | 104,086 | ||||||
389,372 | ||||||||
E-Commerce/Products — 0.0% | ||||||||
Amazon.com, Inc. | 67,000 | 92,369 | ||||||
E-Commerce/Services — 0.3% | ||||||||
GrubHub Holdings, Inc. | 849,000 | 880,837 | ||||||
Electric Products-Misc. — 0.1% | ||||||||
Emerson Electric Co. | 118,000 | 117,206 | ||||||
WESCO Distribution, Inc. | 209,000 | 227,664 | ||||||
WESCO Distribution, Inc. | 97,000 | 106,280 | ||||||
451,150 | ||||||||
Electric-Distribution — 0.2% | ||||||||
National Rural Utilities Cooperative Finance Corp. | 143,000 | 142,390 | ||||||
National Rural Utilities Cooperative Finance Corp. | 115,000 | 125,279 | ||||||
NextEra Energy Operating Partners LP | 425,000 | 443,148 | ||||||
NSTAR Electric Co. | 106,000 | 128,221 | ||||||
839,038 | ||||||||
Electric-Generation — 0.4% | ||||||||
Emera US Finance LP | 120,000 | 144,630 | ||||||
Liberty Utilities Finance GP | 77,000 | 75,910 | ||||||
Pattern Energy Operations LP/Pattern Energy Operations, Inc. | 500,000 | 518,750 |
23 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) | ||||||||
Electric-Generation (continued) | ||||||||
Vistra Operations Co. LLC | $ | 539,000 | $ | 564,872 | ||||
1,304,162 | ||||||||
Electric-Integrated — 1.0% | ||||||||
AEP Texas, Inc. | 46,000 | 55,241 | ||||||
Appalachian Power Co. | 115,000 | 130,606 | ||||||
Avangrid, Inc. | 285,000 | 313,418 | ||||||
Consolidated Edison Co. of New York, Inc. | 26,000 | 31,701 | ||||||
Dominion Energy South Carolina, Inc. | 192,000 | 286,154 | ||||||
Dominion Resources, Inc. | 199,000 | 253,083 | ||||||
DTE Electric Co. | 212,000 | 267,498 | ||||||
Entergy Texas, Inc. | 216,000 | 269,161 | ||||||
Exelon Corp. | 85,000 | 108,105 | ||||||
Exelon Generation Co. LLC | 3,000 | 3,280 | ||||||
FirstEnergy Corp. | 256,000 | 358,928 | ||||||
Interstate Power & Light Co. | 87,000 | 95,304 | ||||||
Kentucky Utilities Co. | 47,000 | 51,630 | ||||||
Pacific Gas & Electric Co. | 100,000 | 92,683 | ||||||
Pacific Gas & Electric Co. | 48,000 | 47,098 | ||||||
Public Service Co. of Colorado | 219,000 | 222,595 | ||||||
Public Service Co. of Colorado | 177,000 | 206,564 | ||||||
Electric-Integrated (continued) | ||||||||
Public Service Co. of Colorado | 123,000 | 158,078 | ||||||
Southern California Edison Co. | 10,000 | 10,333 | ||||||
Talen Energy Supply LLC | 289,000 | 279,969 | ||||||
Talen Energy Supply LLC | 425,000 | 423,563 | ||||||
3,664,992 | ||||||||
Electronic Components-Semiconductors — 0.2% | ||||||||
Broadcom, Inc. | 86,000 | 96,608 | ||||||
Broadcom, Inc. | 54,000 | 63,698 | ||||||
NVIDIA Corp. | 106,000 | 126,372 | ||||||
ON Semiconductor Corp. | 410,000 | 415,771 | ||||||
702,449 | ||||||||
Electronic Measurement Instruments — 0.1% | ||||||||
Trimble, Inc. | 10,000 | 11,078 | ||||||
Trimble, Inc. | 211,000 | 248,991 | ||||||
260,069 | ||||||||
Electronic Parts Distribution — 0.3% | ||||||||
Arrow Electronics, Inc. | 61,000 | 66,324 | ||||||
Ingram Micro, Inc. | 860,000 | 919,863 | ||||||
986,187 | ||||||||
Enterprise Software/Service — 0.3% | ||||||||
Donnelley Financial Solutions, Inc. | 604,000 | 632,690 | ||||||
Oracle Corp. | 236,000 | 255,959 | ||||||
888,649 | ||||||||
24 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) | ||||||||
Entertainment Software — 0.0% | ||||||||
Activision Blizzard, Inc. | $ | 98,000 | $ | 91,321 | ||||
Finance-Auto Loans — 0.3% | ||||||||
Credit Acceptance Corp. | 80,000 | 79,442 | ||||||
Credit Acceptance Corp. | 757,000 | 781,603 | ||||||
861,045 | ||||||||
Finance-Commercial — 0.1% | ||||||||
GE Capital Funding LLC | 200,000 | 214,782 | ||||||
Finance-Consumer Loans — 0.7% | ||||||||
Enova International, Inc. | 786,000 | 734,910 | ||||||
Enova International, Inc. | 72,000 | 68,040 | ||||||
Navient Corp. | 250,000 | 234,757 | ||||||
Springleaf Finance Corp. | 482,000 | 501,280 | ||||||
Springleaf Finance Corp. | 425,000 | 471,612 | ||||||
Synchrony Financial | 496,000 | 547,532 | ||||||
2,558,131 | ||||||||
Finance-Credit Card — 0.2% | ||||||||
Alliance Data Systems Corp. | 533,000 | 499,581 | ||||||
American Express Co. | 57,000 | 61,970 | ||||||
American Express Co. | 78,000 | 90,339 | ||||||
Visa, Inc. | 48,000 | 47,637 | ||||||
699,527 | ||||||||
Finance-Investment Banker/Broker — 0.2% | ||||||||
LPL Holdings, Inc. | 105,000 | 106,050 | ||||||
Finance-Investment Banker/Broker (continued) | ||||||||
LPL Holdings, Inc. | 406,000 | 420,691 | ||||||
526,741 | ||||||||
Finance-Mortgage Loan/Banker — 0.3% | ||||||||
Genworth Mtg. Holdings, Inc. | 408,000 | 426,238 | ||||||
Quicken Loans LLC/Quicken Loans Co-Issuer, Inc. | 409,000 | 405,421 | ||||||
Quicken Loans, Inc. | 143,000 | 150,673 | ||||||
982,332 | ||||||||
Financial Guarantee Insurance — 0.1% | ||||||||
NMI Holdings, Inc. | 212,000 | 226,575 | ||||||
Food-Confectionery — 0.0% | ||||||||
Mondelez International, Inc. | 67,000 | 66,843 | ||||||
Food-Meat Products — 0.1% | ||||||||
Smithfield Foods, Inc. | 81,000 | 88,506 | ||||||
Smithfield Foods, Inc. | 77,000 | 90,077 | ||||||
178,583 | ||||||||
Food-Misc./Diversified — 0.6% | ||||||||
Conagra Brands, Inc. | 105,000 | 140,607 | ||||||
Dole Food Co., Inc. | 705,000 | 701,475 | ||||||
Kraft Heinz Foods Co. | 382,000 | 403,131 | ||||||
Lamb Weston Holdings, Inc. | 670,000 | 698,475 | ||||||
Mars, Inc. | 73,000 | 73,003 | ||||||
Nestle Holdings, Inc. 3.50% due 09/24/2025* | 152,000 | 171,930 | ||||||
2,188,621 | ||||||||
25 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) | ||||||||
Food-Retail — 0.3% | ||||||||
Albertsons Cos, Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC | $ | 532,000 | $ | 544,337 | ||||
Albertsons Cos, Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC | 313,000 | 322,875 | ||||||
Albertsons Cos, Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC | 308,000 | 328,790 | ||||||
1,196,002 | ||||||||
Food-Wholesale/Distribution — 0.3% | ||||||||
Sysco Corp. | 119,000 | 119,409 | ||||||
Sysco Corp. | 86,000 | 108,999 | ||||||
Sysco Corp. | 114,000 | 154,188 | ||||||
Sysco Corp. | 47,000 | 65,976 | ||||||
US Foods, Inc. | 518,000 | 548,432 | ||||||
997,004 | ||||||||
Gas-Distribution — 0.0% | ||||||||
NiSource, Inc. | 68,000 | 93,813 | ||||||
Hotels/Motels — 0.4% | ||||||||
Hilton Grand Vacations Borrower LLC/Hilton Grand Vacations Borrower, Inc. | 505,000 | 522,675 | ||||||
Wyndham Destinations, Inc. | 180,000 | 188,570 | ||||||
Wyndham Worldwide Corp. | 596,000 | 611,272 | ||||||
1,322,517 | ||||||||
Human Resources — 0.2% | ||||||||
Korn Ferry International | 727,000 | 734,270 | ||||||
Independent Power Producers — 0.3% | ||||||||
Clearway Energy Operating LLC | 585,000 | 604,012 | ||||||
Independent Power Producers (continued) | ||||||||
NRG Yield Operating LLC | 375,000 | 385,313 | ||||||
989,325 | ||||||||
Industrial Gases — 0.1% | ||||||||
Air Products and Chemicals, Inc. | EUR | 200,000 | 239,889 | |||||
Instruments-Controls — 0.0% | ||||||||
Honeywell International, Inc. | 88,000 | 88,145 | ||||||
Insurance Brokers — 0.0% | ||||||||
Willis North America, Inc. | 91,000 | 104,586 | ||||||
Willis North America, Inc. | 33,000 | 44,426 | ||||||
149,012 | ||||||||
Insurance-Life/Health — 0.4% | ||||||||
Athene Global Funding | EUR | 560,000 | 680,296 | |||||
Brighthouse Financial, Inc. | 98,000 | 94,315 | ||||||
Brighthouse Financial, Inc. | 131,000 | 152,558 | ||||||
Pacific LifeCorp | 57,000 | 57,587 | ||||||
Prudential Financial, Inc. | 267,000 | 278,142 | ||||||
Unum Group | 47,000 | 52,207 | ||||||
1,315,105 | ||||||||
Insurance-Property/Casualty — 0.0% | ||||||||
Chubb INA Holdings, Inc. | 76,000 | 75,165 | ||||||
Internet Connectivity Services — 0.1% | ||||||||
Cogent Communications Group, Inc. | 407,000 | 415,140 | ||||||
Internet Content-Entertainment — 0.3% | ||||||||
Netflix, Inc. | 1,025,000 | 1,070,741 | ||||||
26 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) | ||||||||
Internet Telephone — 0.1% | ||||||||
Cablevision Lightpath LLC | $ | 430,000 | $ | 430,000 | ||||
Investment Management/Advisor Services — 0.2% |
| |||||||
AG Issuer LLC | 668,000 | 664,660 | ||||||
Ameriprise Financial, Inc. | 114,000 | 118,293 | ||||||
782,953 | ||||||||
Machinery-Construction & Mining — 0.1% | ||||||||
Caterpillar Financial Services Corp. | 186,000 | 186,886 | ||||||
Caterpillar Financial Services Corp. | 140,000 | 140,138 | ||||||
327,024 | ||||||||
Machinery-Electrical — 0.0% | ||||||||
ABB Finance USA, Inc. | 133,000 | 142,325 | ||||||
Machinery-Farming — 0.1% | ||||||||
CNH Industrial Capital LLC | 118,000 | 117,839 | ||||||
CNH Industrial Capital LLC | 207,000 | 222,407 | ||||||
John Deere Capital Corp. | 75,000 | 82,412 | ||||||
422,658 | ||||||||
Machinery-Pumps — 0.1% | ||||||||
Xylem, Inc. | 241,000 | 251,111 | ||||||
Medical Labs & Testing Services — 0.1% | ||||||||
Catalent Pharma Solutions, Inc. | 216,000 | 224,640 | ||||||
Medical Products — 0.1% | ||||||||
Stryker Corp. | EUR | 340,000 | 404,432 | |||||
Medical-Biomedical/Gene — 0.2% | ||||||||
Amgen, Inc. | 460,000 | 489,373 | ||||||
Biogen, Inc. | 67,000 | 66,117 | ||||||
Medical-Biomedical/Gene (continued) | ||||||||
Regeneron Pharmaceuticals, Inc. | $ | 139,000 | $ | 136,051 | ||||
Regeneron Pharmaceuticals, Inc. | 78,000 | 73,512 | ||||||
765,053 | ||||||||
Medical-Drugs — 0.2% | ||||||||
AbbVie, Inc. | 114,000 | 131,095 | ||||||
AbbVie, Inc. | 135,000 | 160,269 | ||||||
AbbVie, Inc. | 68,000 | 68,378 | ||||||
Bristol-Myers Squibb Co. | 133,000 | 146,562 | ||||||
Bristol-Myers Squibb Co. | 8,000 | 10,819 | ||||||
Bristol-Myers Squibb Co. | 77,000 | 103,165 | ||||||
GlaxoSmithKline Capital, Inc. | 86,000 | 92,592 | ||||||
Upjohn, Inc. | 79,000 | 84,316 | ||||||
797,196 | ||||||||
Medical-Generic Drugs — 0.2% | ||||||||
Mylan, Inc. | 110,000 | 128,140 | ||||||
Par Pharmaceutical, Inc. | 456,000 | 477,742 | ||||||
605,882 | ||||||||
Medical-HMO — 0.1% | ||||||||
Humana, Inc. | 10,000 | 12,498 | ||||||
UnitedHealth Group, Inc. | 145,000 | 148,863 | ||||||
UnitedHealth Group, Inc. | 70,000 | 75,127 | ||||||
236,488 | ||||||||
Medical-Hospitals — 1.0% | ||||||||
Acadia Healthcare Co, Inc. | 120,000 | 121,650 |
27 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) | ||||||||
Medical-Hospitals (continued) | ||||||||
Acadia Healthcare Co., Inc. | $ | 548,000 | $ | 563,625 | ||||
HCA, Inc. | 687,000 | 752,265 | ||||||
LifePoint Health, Inc. | 604,000 | 604,755 | ||||||
Tenet Healthcare Corp. | 700,000 | 703,500 | ||||||
Tenet Healthcare Corp. | 739,000 | 718,677 | ||||||
3,464,472 | ||||||||
Medical-Wholesale Drug Distribution — 0.0% | ||||||||
Cardinal Health, Inc. | 132,000 | 144,711 | ||||||
Metal-Copper — 0.4% | ||||||||
Freeport-McMoRan, Inc. | 380,000 | 384,750 | ||||||
Freeport-McMoRan, Inc. | 343,000 | 351,575 | ||||||
Freeport-McMoRan, Inc. | 251,000 | 259,523 | ||||||
Freeport-McMoRan, Inc. | 251,000 | 263,914 | ||||||
1,259,762 | ||||||||
Metal-Iron — 0.2% | ||||||||
Cleveland-Cliffs, Inc. | 392,000 | 363,580 | ||||||
Cleveland-Cliffs, Inc. | 376,000 | 382,580 | ||||||
746,160 | ||||||||
Multimedia — 0.3% | ||||||||
E.W. Scripps Co. | 897,000 | 876,818 | ||||||
Walt Disney Co. | 166,000 | 161,868 | ||||||
1,038,686 | ||||||||
Non-Hazardous Waste Disposal — 0.2% | ||||||||
Covanta Holding Corp. | 591,000 | 596,496 | ||||||
Non-Profit Charity — 0.0% | ||||||||
Ford Foundation | 95,000 | 99,120 | ||||||
Oil Companies-Exploration & Production — 1.3% | ||||||||
Apache Corp. | 450,000 | 411,750 | ||||||
Apache Corp. | 68,000 | 64,812 | ||||||
Apache Corp. | 119,000 | 112,455 | ||||||
Callon Petroleum Co. | 162,000 | 46,170 | ||||||
Callon Petroleum Co. | 560,000 | 137,200 | ||||||
Endeavor Energy Resources LP/EER Finance, Inc. | 325,000 | 326,625 | ||||||
EOG Resources, Inc. | 69,000 | 81,302 | ||||||
EOG Resources, Inc. | 77,000 | 94,612 | ||||||
Hilcorp Energy I LP/Hilcorp Finance Co. | 1,188,000 | 1,078,110 | ||||||
Marathon Oil Corp. | 110,000 | 113,262 | ||||||
Marathon Oil Corp. | 89,000 | 95,405 | ||||||
Noble Energy, Inc. | 70,000 | 84,119 | ||||||
Noble Energy, Inc. | 126,000 | 167,049 | ||||||
Occidental Petroleum Corp. | 382,000 | 350,088 | ||||||
Occidental Petroleum Corp. | 589,000 | 545,237 | ||||||
Occidental Petroleum Corp. | 48,000 | 45,600 | ||||||
Pioneer Natural Resources Co. | 110,000 | 103,171 |
28 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) | ||||||||
Oil Companies-Exploration & Production (continued) |
| |||||||
Southwestern Energy Co. | $ | 360,000 | $ | 351,900 | ||||
Southwestern Energy Co. | 223,000 | 219,122 | ||||||
4,427,989 | ||||||||
Oil Companies-Integrated — 0.3% | ||||||||
BP Capital Markets America, Inc. | 186,000 | 171,640 | ||||||
BP Capital Markets America, Inc. | 319,000 | 357,079 | ||||||
Chevron Corp. | 223,000 | 231,084 | ||||||
Chevron USA, Inc. | 81,000 | 81,056 | ||||||
Exxon Mobil Corp. | EUR | 275,000 | 317,788 | |||||
1,158,647 | ||||||||
Oil Field Machinery & Equipment — 0.0% | ||||||||
Hi-Crush Partners LP | 683,000 | 33,296 | ||||||
Oil Refining & Marketing — 0.2% | ||||||||
PBF Holding Co. LLC/PBF Finance Corp. | 678,000 | 454,972 | ||||||
Phillips 66 | 114,000 | 110,864 | ||||||
Valero Energy Corp. | 86,000 | 85,653 | ||||||
651,489 | ||||||||
Oil-Field Services — 0.5% | ||||||||
Apergy Corp. | 224,000 | 213,962 | ||||||
Archrock Partners LP/Archrock Partners Finance Corp. | 616,000 | 590,054 | ||||||
Baker Hughes a GE Co. LLC/Baker Hughes Co-Obligor, Inc. | 45,000 | 51,133 | ||||||
Halliburton Co. | 120,000 | 118,245 | ||||||
Oil-Field Services (continued) | ||||||||
Nine Energy Service, Inc. | 684,000 | 205,200 | ||||||
Schlumberger Holdings Corp. | 118,000 | 132,120 | ||||||
USA Compression Partners LP/USA Compression Finance Corp. | 592,000 | 586,820 | ||||||
1,897,534 | ||||||||
Paper & Related Products — 0.3% | ||||||||
Clearwater Paper Corp. | 583,000 | 584,458 | ||||||
Domtar Corp. | 265,000 | 307,569 | ||||||
Georgia-Pacific LLC | 124,000 | 131,574 | ||||||
Georgia-Pacific LLC | 125,000 | 134,579 | ||||||
1,158,180 | ||||||||
Petrochemicals — 0.0% | ||||||||
Chevron Phillips Chemical Co. LLC/Chevron Phillips Chemical Co. LP | 75,000 | 79,580 | ||||||
Pharmacy Services — 0.1% | ||||||||
CVS Health Corp. | 49,000 | 46,701 | ||||||
CVS Health Corp | 57,000 | 66,997 | ||||||
CVS Health Corp. | 196,000 | 238,804 | ||||||
CVS Health Corp. | 10,000 | 12,764 | ||||||
365,266 | ||||||||
Physical Therapy/Rehabilitation Centers — 0.1% | ||||||||
Encompass Health Corp. | 178,000 | 178,000 | ||||||
Pipelines — 2.5% | ||||||||
Buckeye Partners LP | 248,000 | 235,600 | ||||||
Buckeye Partners LP | 563,000 | 542,591 |
29 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) | ||||||||
Pipelines (continued) | ||||||||
Cheniere Corpus Christi Holdings LLC | $ | 117,000 | $ | 121,608 | ||||
Cheniere Energy Partners LP | 392,000 | 402,102 | ||||||
Cheniere Energy Partners LP | 308,000 | 315,084 | ||||||
Cheniere Energy, Inc. | 432,000 | 443,340 | ||||||
Colonial Enterprises, Inc. | 51,000 | 57,052 | ||||||
DCP Midstream Operating LP | 165,000 | 150,356 | ||||||
DCP Midstream Operating LP | 294,000 | 300,762 | ||||||
DCP Midstream Operating LP | 130,000 | 124,800 | ||||||
Enable Midstream Partners LP | 82,000 | 80,059 | ||||||
Energy Transfer Operating LP | 172,000 | 169,310 | ||||||
Energy Transfer Operating LP | 2,000 | 2,202 | ||||||
Energy Transfer Operating LP | 88,000 | 88,334 | ||||||
EnLink Midstream Partners LP | 21,000 | 13,335 | ||||||
Enterprise Products Operating LLC | 128,000 | 118,284 | ||||||
Enterprise Products Operating LLC | 90,000 | 95,552 | ||||||
Genesis Energy LP/Genesis Energy Finance Corp. | 848,000 | 722,776 | ||||||
Genesis Energy LP/Genesis Energy Finance Corp. | 200,000 | 181,500 | ||||||
Genesis Energy LP/Genesis Energy Finance Corp. | 250,000 | 216,250 | ||||||
Gray Oak Pipeline LLC | 176,000 | 176,971 |
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
Pipelines (continued) | ||||||||
Gray Oak Pipeline LLC | $ | 104,000 | $ | 106,261 | ||||
Harvest Midstream I LP | 681,000 | 677,595 | ||||||
Holly Energy Partners LP/Holly Energy Finance Corp. | 815,000 | 794,625 | ||||||
Kinder Morgan, Inc. | EUR | 175,000 | 208,182 | |||||
Kinder Morgan, Inc. | 124,000 | 111,667 | ||||||
MPLX LP | 89,000 | 86,870 | ||||||
NuStar Logistics LP | 252,000 | 260,266 | ||||||
NuStar Logistics LP | 379,000 | 393,212 | ||||||
ONEOK Partners LP | 67,000 | 75,410 | ||||||
ONEOK, Inc. | 118,000 | 113,510 | ||||||
ONEOK, Inc. | 46,000 | 54,660 | ||||||
Plains All American Pipeline LP/PAA Finance Corp. | 49,000 | 41,524 | ||||||
Sabine Pass Liquefaction LLC | 81,000 | 91,243 | ||||||
Targa Resources Partners LP/Targa Resources Partners Finance Corp. | 609,000 | 589,771 | ||||||
Targa Resources Partners LP/Targa Resources Partners Finance Corp. | 44,000 | 42,900 | ||||||
Transcontinental Gas Pipe Line Co. LLC | 91,000 | 98,359 | ||||||
Williams Cos., Inc. | 242,000 | 285,065 | ||||||
8,588,988 | ||||||||
30 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) | ||||||||
Poultry — 0.1% | ||||||||
Pilgrim’s Pride Corp. | $ | 406,000 | $ | 419,195 | ||||
Protection/Safety — 0.5% | ||||||||
Prime Security Services Borrower LLC/Prime Finance, Inc. | 480,000 | 460,438 | ||||||
Prime Security Services Borrower LLC/Prime Finance, Inc. | 513,000 | 537,367 | ||||||
Prime Security Services Borrower LLC/Prime Finance, Inc. | 230,000 | 245,957 | ||||||
Prime Security Services Borrower LLC/Prime Finance, Inc. | 470,000 | 475,875 | ||||||
1,719,637 | ||||||||
Real Estate Investment Trusts — 2.3% | ||||||||
Alexandria Real Estate Equities, Inc. | 52,000 | 50,926 | ||||||
American Tower Corp. | 108,000 | 106,816 | ||||||
Brixmor Operating Partnership LP | 142,000 | 151,882 | ||||||
Columbia Property Trust Operating Partnership LP | 124,000 | 129,843 | ||||||
CTR Partnership LP/CareTrust Capital Corp. | 575,000 | 589,375 | ||||||
Digital Euro Finco LLC | EUR | 300,000 | 359,979 | |||||
ESH Hospitality, Inc. | 340,000 | 333,632 | ||||||
ESH Hospitality, Inc. | 270,000 | 272,700 | ||||||
Essex Portfolio LP | 104,000 | 97,596 | ||||||
GLP Capital LP/GLP Financing II, Inc. | 265,000 | 293,700 | ||||||
HAT Holdings I LLC/HAT Holdings II LLC | 170,000 | 170,425 | ||||||
Real Estate Investment Trusts (continued) | ||||||||
HAT Holdings I LLC/HAT Holdings II LLC | 522,000 | 543,961 | ||||||
HAT Holdings I LLC/HAT Holdings II LLC | 296,000 | 315,329 | ||||||
Host Hotels & Resorts LP | 96,000 | 91,892 | ||||||
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp. | 534,000 | 461,910 | ||||||
MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc. | 515,000 | 554,912 | ||||||
MPT Operating Partnership LP/MPT Finance Corp. | 576,000 | 600,595 | ||||||
Park Intermediate Holdings LLC/PK Domestic Property LLC/PK Finance Co-Issuer | 625,000 | 623,437 | ||||||
Piedmont Operating Partnership LP | 136,000 | 133,229 | ||||||
Prologis LP | 67,000 | 65,516 | ||||||
Prologis LP | 49,000 | 44,122 | ||||||
Prologis LP | 109,000 | 117,048 | ||||||
Sabra Health Care LP | 820,000 | 886,692 | ||||||
Sabra Health Care LP/Sabra Capital Corp. | 69,000 | 72,503 | ||||||
Simon Property Group LP | 100,000 | 91,712 | ||||||
Starwood Property Trust, Inc. | 790,000 | 756,425 | ||||||
Welltower, Inc. | 90,000 | 92,742 | ||||||
8,008,899 | ||||||||
Real Estate Management/Services — 0.3% | ||||||||
Cushman & Wakefield US Borrower LLC | 511,000 | 530,495 |
31 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) | ||||||||
Real Estate Management/Services (continued) | ||||||||
Newmark Group, Inc. | $ | 493,000 | $ | 512,682 | ||||
1,043,177 | ||||||||
Recycling — 0.2% | ||||||||
Harsco Corp. | 638,000 | 645,975 | ||||||
Rental Auto/Equipment — 0.2% | ||||||||
Ahern Rentals, Inc. | 725,000 | 384,250 | ||||||
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. | 508,000 | 457,307 | ||||||
841,557 | ||||||||
Research & Development — 0.1% | ||||||||
Jaguar Holding Co. II/PPD Development LP | 92,000 | 94,760 | ||||||
Jaguar Holding Co. II/PPD Development LP | 375,000 | 391,406 | ||||||
486,166 | ||||||||
Resorts/Theme Parks — 0.3% | ||||||||
SeaWorld Parks & Entertainment, Inc. | 415,000 | 438,862 | ||||||
Six Flags Entertainment Corp. | 540,000 | 512,082 | ||||||
Six Flags Theme Parks, Inc. | 48,000 | 51,060 | ||||||
1,002,004 | ||||||||
Retail-Apparel/Shoe — 0.1% | ||||||||
L Brands, Inc. | 225,000 | 228,937 | ||||||
Ross Stores, Inc. | 117,000 | 153,346 | ||||||
382,283 | ||||||||
Retail-Appliances — 0.1% | ||||||||
Conn’s, Inc. | 464,000 | 413,178 | ||||||
Retail-Auto Parts — 0.1% | ||||||||
Advance Auto Parts, Inc. | 88,000 | 87,739 | ||||||
Retail-Auto Parts (continued) | ||||||||
Advance Auto Parts, Inc. | 128,000 | 144,231 | ||||||
231,970 | ||||||||
Retail-Automobile — 0.0% | ||||||||
AutoNation, Inc. | 45,000 | 53,020 | ||||||
Retail-Drug Store — 0.0% | ||||||||
Walgreens Boots Alliance, Inc. | 86,000 | 85,932 | ||||||
Retail-Major Department Stores — 0.0% | ||||||||
TJX Cos, Inc. | 121,000 | 138,718 | ||||||
Retail-Pawn Shops — 0.1% | ||||||||
FirstCash, Inc. | 452,000 | 460,475 | ||||||
Retail-Petroleum Products — 0.2% | ||||||||
Murphy Oil USA, Inc. | 569,000 | 605,985 | ||||||
Retail-Regional Department Stores — 0.1% | ||||||||
Kohl’s Corp. | 132,000 | 121,387 | ||||||
Kohl’s Corp. | 53,000 | 62,671 | ||||||
184,058 | ||||||||
Retail-Restaurants — 0.5% | ||||||||
Brinker International, Inc. | 700,000 | 712,985 | ||||||
Darden Restaurants, Inc. | 104,000 | 103,411 | ||||||
Golden Nugget, Inc. | 875,000 | 730,625 | ||||||
McDonald’s Corp. | 69,000 | 77,477 | ||||||
McDonald’s Corp. | 66,000 | 80,329 | ||||||
1,704,827 | ||||||||
Satellite Telecom — 0.3% | ||||||||
Hughes Satellite Systems Corp. | 901,000 | 975,062 | ||||||
32 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) | ||||||||
Savings & Loans/Thrifts — 0.2% | ||||||||
First Niagara Financial Group, Inc. | $ | 357,000 | $ | 385,098 | ||||
New York Community Bancorp, Inc. | 159,000 | 161,965 | ||||||
547,063 | ||||||||
Security Services — 0.2% | ||||||||
Brink’s Co. | 711,000 | 709,898 | ||||||
Brink’s Co. | 68,000 | 70,890 | ||||||
780,788 | ||||||||
Shipbuilding — 0.0% | ||||||||
Huntington Ingalls Industries, Inc. | 91,000 | 104,449 | ||||||
Software Tools — 0.0% | ||||||||
VMware, Inc. | 126,000 | 149,418 | ||||||
Steel-Producers — 0.2% | ||||||||
Commercial Metals Co. | 475,000 | 494,000 | ||||||
Reliance Steel & Aluminum Co. | 51,000 | 49,901 | ||||||
Steel Dynamics, Inc. | 40,000 | 42,800 | ||||||
Steel Dynamics, Inc. | 126,000 | 138,921 | ||||||
725,622 | ||||||||
Telecom Equipment-Fiber Optics — 0.1% | ||||||||
Corning, Inc. | 243,000 | 309,261 | ||||||
Telephone-Integrated — 1.0% | ||||||||
AT&T, Inc. | 37,000 | 37,070 | ||||||
AT&T, Inc. | 634,000 | 748,529 | ||||||
AT&T, Inc. | 54,000 | 63,437 | ||||||
AT&T, Inc. | 40,000 | 47,725 | ||||||
Telephone-Integrated (continued) | ||||||||
AT&T, Inc. | 65,000 | 78,546 | ||||||
CenturyLink, Inc. | 484,000 | 497,257 | ||||||
CenturyLink, Inc. | 525,000 | 587,790 | ||||||
Verizon Communications, Inc. | 212,000 | 211,290 | ||||||
Verizon Communications, Inc. | GBP | 100,000 | 142,018 | |||||
Verizon Communications, Inc. | 69,000 | 85,111 | ||||||
Verizon Communications, Inc. | 135,000 | 168,301 | ||||||
Verizon Communications, Inc. | 115,000 | 159,259 | ||||||
Zayo Group Holdings, Inc. | 646,000 | 666,801 | ||||||
3,493,134 | ||||||||
Television — 0.4% | ||||||||
Belo Corp. | 373,000 | 412,165 | ||||||
Belo Corp. | 416,000 | 472,160 | ||||||
Viacom, Inc. | 476,000 | 505,999 | ||||||
1,390,324 | ||||||||
Tools-Hand Held — 0.0% | ||||||||
Stanley Black & Decker, Inc. | 76,000 | 85,178 | ||||||
Transport-Air Freight — 0.2% | ||||||||
Cargo Aircraft Management, Inc. | 833,000 | 841,205 | ||||||
Transport-Equipment & Leasing — 0.1% | ||||||||
GATX Corp. | 78,000 | 89,851 | ||||||
GATX Corp. | 150,000 | 163,899 | ||||||
253,750 | ||||||||
33 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) | ||||||||
Transport-Marine — 0.0% | ||||||||
Kirby Corp. | $ | 129,000 | $ | 133,660 | ||||
Transport-Rail — 0.0% | ||||||||
Kansas City Southern | 96,000 | 101,763 | ||||||
Kansas City Southern | 51,000 | 56,703 | ||||||
158,466 | ||||||||
Transport-Services — 0.1% | ||||||||
FedEx Corp. Pass Through Trust | 156,000 | 158,285 | ||||||
United Parcel Service, Inc. | 91,000 | 103,679 | ||||||
261,964 | ||||||||
Trucking/Leasing — 0.1% | ||||||||
Penske Truck Leasing Co. LP/PTL Finance Corp. | 29,000 | 30,830 | ||||||
Penske Truck Leasing Co. LP/PTL Finance Corp. | 278,000 | 304,237 | ||||||
Penske Truck Leasing Co. LP/PTL Finance Corp. | 84,000 | 94,185 | ||||||
429,252 | ||||||||
Vitamins & Nutrition Products — 0.1% | ||||||||
HLF Financing SARL LLC/Herbalife International, Inc. | 496,000 | 509,639 | ||||||
Water — 0.0% | ||||||||
American Water Capital Corp. | 54,000 | 60,546 | ||||||
Essential Utilities, Inc. | 80,000 | 85,514 | ||||||
146,060 | ||||||||
Web Portals/ISP — 0.1% | ||||||||
Alphabet, Inc. | 144,000 | 143,363 | ||||||
Web Portals/ISP (continued) | ||||||||
Alphabet, Inc. | 136,000 | 127,295 | ||||||
270,658 | ||||||||
Total U.S. Corporate Bonds & Notes | ||||||||
(cost $129,503,438) | 132,685,184 | |||||||
FOREIGN CORPORATE BONDS & NOTES — 15.0% |
| |||||||
Aerospace/Defense — 0.1% | ||||||||
BAE Systems PLC | 206,000 | 230,228 | ||||||
Agricultural Chemicals — 0.4% | ||||||||
Consolidated Energy Finance SA | 519,000 | 472,290 | ||||||
Nutrien, Ltd. | 104,000 | 118,907 | ||||||
OCI NV | 668,000 | 689,175 | ||||||
Yara International ASA | 53,000 | 56,715 | ||||||
1,337,087 | ||||||||
Airlines — 0.1% | ||||||||
Delta Air Lines/Skymiles | 177,930 | 182,708 | ||||||
Delta Air Lines/Skymiles | 132,000 | 137,053 | ||||||
319,761 | ||||||||
Airport Development/Maintenance — 0.1% | ||||||||
Mexico City Airport Trust | 460,000 | 407,100 | ||||||
Auto-Cars/Light Trucks — 0.1% | ||||||||
Nissan Motor Co, Ltd. | EUR | 150,000 | 177,506 | |||||
RCI Banque SA | GBP | 80,000 | 102,872 | |||||
280,378 | ||||||||
Auto/Truck Parts & Equipment-Original — 0.1% |
| |||||||
Delphi Jersey Holdings PLC | 367,000 | 419,298 | ||||||
Banks-Commercial — 1.3% | ||||||||
Banco de Credito del Peru | 300,000 | 300,939 |
34 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
| |||||||
Banks-Commercial (continued) | ||||||||
Banco de Credito e Inversiones SA | $ | 490,000 | $ | 533,429 | ||||
Canadian Imperial Bank of Commerce | 213,000 | 224,649 | ||||||
Cooperatieve Rabobank UA | 261,000 | 259,973 | ||||||
Danske Bank A/S | EUR | 225,000 | 262,641 | |||||
Danske Bank A/S | EUR | 245,000 | 284,587 | |||||
Danske Bank A/S | GBP | 100,000 | 130,917 | |||||
Danske Bank A/S | 200,000 | 215,332 | ||||||
Grupo Aval, Ltd. | 900,000 | 869,130 | ||||||
ING Groep NV | 249,000 | 251,839 | ||||||
Philippine National Bank | 600,000 | 624,968 | ||||||
Skandinaviska Enskilda Banken AB | EUR | 200,000 | 237,569 | |||||
Standard Chartered PLC | EUR | 200,000 | 233,529 | |||||
4,429,502 | ||||||||
Banks-Special Purpose — 0.1% | ||||||||
Industrial Bank of Korea | 312,000 | 314,119 | ||||||
Beverages-Non-alcoholic — 0.0% |
| |||||||
Coca-Cola Femsa SAB de CV | 152,000 | 152,334 | ||||||
Brewery — 0.1% |
| |||||||
Anheuser-Busch InBev SA/NV | EUR | 125,000 | 187,104 | |||||
Heineken NV | EUR | 175,000 | 237,360 | |||||
424,464 | ||||||||
Building Products-Air & Heating — 0.0% | ||||||||
Johnson Controls International PLC/Tyco Fire & Security Finance SCA | 33,000 | 33,209 | ||||||
Building-Residential/Commercial — 0.1% |
| |||||||
Mattamy Group Corp. | 215,000 | 217,709 | ||||||
Mattamy Group Corp. | 339,000 | 348,323 | ||||||
566,032 | ||||||||
Cable/Satellite TV — 0.2% | ||||||||
Altice Financing SA | 661,000 | 641,996 | ||||||
Cellular Telecom — 0.4% |
| |||||||
Colombia Telecomunicaciones SA ESP | 210,000 | 218,400 | ||||||
Numericable-SFR SA | 800,000 | 838,320 | ||||||
Vodafone Group PLC | 68,000 | 84,428 | ||||||
Vodafone Group PLC | 98,000 | 126,696 | ||||||
1,267,844 | ||||||||
Chemicals-Diversified — 0.3% | ||||||||
Braskem Netherlands Finance BV | 202,000 | 188,618 | ||||||
Braskem Netherlands Finance BV | 200,000 | 186,750 | ||||||
CNAC HK Finbridge Co., Ltd. | 220,000 | 228,569 | ||||||
CNAC HK Finbridge Co., Ltd. | 200,000 | 215,591 | ||||||
Petkim Petrokimya Holding AS | 270,000 | 267,952 | ||||||
1,087,480 | ||||||||
Chemicals-Other — 0.1% | ||||||||
MEGlobal Canada ULC | 200,000 | 215,543 | ||||||
Chemicals-Specialty — 0.0% | ||||||||
Albemarle Wodgina Pty, Ltd. | 63,000 | 63,932 | ||||||
35 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
| |||||||
Commercial Services — 0.1% | ||||||||
Nielsen Co. Luxembourg SARL | $ | 432,000 | $ | 440,100 | ||||
Computer Software — 0.1% | ||||||||
Camelot Finance SA | 415,000 | 423,300 | ||||||
Containers-Metal/Glass — 0.3% | ||||||||
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. | 450,000 | 458,550 | ||||||
Trivium Packaging Finance BV | 650,000 | 700,846 | ||||||
1,159,396 | ||||||||
Containers-Paper/Plastic — 0.5% | ||||||||
Cascades, Inc./Cascades USA, Inc. | 559,000 | 587,649 | ||||||
Intertape Polymer Group, Inc. | 674,000 | 707,700 | ||||||
Klabin Austria GmbH | 354,000 | 400,905 | ||||||
1,696,254 | ||||||||
Cruise Lines — 0.3% | ||||||||
Silversea Cruise Finance, Ltd. | 500,000 | 506,250 | ||||||
Viking Cruises, Ltd. | 64,000 | 74,080 | ||||||
VOC Escrow, Ltd. | 615,000 | 544,503 | ||||||
1,124,833 | ||||||||
Diagnostic Equipment — 0.0% | ||||||||
DH Europe Finance II SARL | 137,000 | 153,242 | ||||||
Diversified Banking Institutions — 1.4% | ||||||||
Banco Santander SA | EUR 300,000 | 364,868 | ||||||
Banco Santander SA | 200,000 | 211,604 | ||||||
Barclays PLC | GBP 100,000 | 135,638 | ||||||
BNP Paribas SA | EUR 450,000 | 533,220 | ||||||
Diversified Banking Institutions (continued) | ||||||||
BNP Paribas SA | 444,000 | 476,174 | ||||||
BNP Paribas SA | GBP 200,000 | 283,498 | ||||||
Deutsche Bank AG NY | 150,000 | 151,042 | ||||||
HSBC Holdings PLC | EUR 150,000 | 179,039 | ||||||
HSBC Holdings PLC | GBP 120,000 | 165,390 | ||||||
HSBC Holdings PLC | 200,000 | 223,298 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 207,000 | 216,803 | ||||||
Mizuho Financial Group, Inc. | 474,000 | �� | 498,179 | |||||
Natwest Group PLC | 400,000 | 384,232 | ||||||
NatWest Markets PLC | 200,000 | 205,914 | ||||||
NatWest Markets PLC | EUR 150,000 | 190,931 | ||||||
Royal Bank of Scotland Group PLC | 222,000 | 227,762 | ||||||
UBS AG | EUR 250,000 | 296,410 | ||||||
UniCredit SpA | 298,000 | 303,587 | ||||||
5,047,589 | ||||||||
Diversified Financial Services — 0.3% | ||||||||
Fairstone Financial, Inc. | 582,000 | 596,550 | ||||||
GE Capital International Funding Co. ULC | 484,000 | 510,890 | ||||||
1,107,440 | ||||||||
Diversified Minerals — 0.4% | ||||||||
Anglo American Capital PLC | 400,000 | 459,802 |
36 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
| |||||||
Diversified Minerals (continued) | ||||||||
FMG Resources August 2006 Pty, Ltd. | $ | 636,000 | $ | 678,936 | ||||
Teck Resources, Ltd. | 82,000 | 85,799 | ||||||
Teck Resources, Ltd. | 52,000 | 60,113 | ||||||
1,284,650 | ||||||||
Electric-Distribution — 0.3% | ||||||||
Energuate Trust | 600,000 | 620,813 | ||||||
Infraestructura Energetica Nova SAB de CV | 250,000 | 234,312 | ||||||
OmGrid Funding, Ltd. | 200,000 | 182,550 | ||||||
1,037,675 | ||||||||
Electric-Generation — 0.5% | ||||||||
Electricite de France SA | GBP | 100,000 | 172,396 | |||||
LLPL Capital Pte, Ltd. | 375,600 | 432,470 | ||||||
Minejesa Capital BV | 600,000 | 617,316 | ||||||
Mong Duong Finance Holdings BV | 300,000 | 305,756 | ||||||
SPIC Luxembourg Latin America Renewable Energy Investment Co. SARL | 200,000 | 216,157 | ||||||
1,744,095 | ||||||||
Electric-Integrated — 0.1% | ||||||||
Empresas Publicas de Medellin ESP | 320,000 | 321,603 | ||||||
Electric-Transmission — 0.0% | ||||||||
RTE Reseau de Transport d’Electricite SADIR | EUR | 100,000 | 122,829 | |||||
Energy-Alternate Sources — 0.1% | ||||||||
ReNew Power Synthetic | 200,000 | 206,500 | ||||||
Energy-Alternate Sources (continued) | ||||||||
ReNew Power, Ltd. | 200,000 | 203,290 | ||||||
409,790 | ||||||||
Finance-Consumer Loans — 0.1% | ||||||||
goeasy, Ltd. | 533,000 | 539,663 | ||||||
Finance-Leasing Companies — 0.3% | ||||||||
Avolon Holdings Funding, Ltd. | 614,000 | 612,516 | ||||||
BOC Aviation, Ltd. | 580,000 | 575,199 | ||||||
1,187,715 | ||||||||
Food-Meat Products — 0.1% | ||||||||
BRF SA | 200,000 | 205,248 | ||||||
JBS USA LUX SA/JBS USA Finance, Inc. | 279,000 | 284,608 | ||||||
489,856 | ||||||||
Food-Retail — 0.1% | ||||||||
Auchan Holding SA | EUR | 200,000 | 244,312 | |||||
Tesco Corp.orate Treasury Services PLC | EUR | 135,000 | 160,993 | |||||
405,305 | ||||||||
Gas-Distribution — 0.0% | ||||||||
Centrica PLC | GBP | 100,000 | 154,510 | |||||
Gold Mining — 0.1% | ||||||||
AngloGold Ashanti Holdings PLC | 208,000 | 213,371 | ||||||
Independent Power Producers — 0.1% | ||||||||
Termocandelaria Power, Ltd. | 400,000 | 429,004 | ||||||
Industrial Gases — 0.1% | ||||||||
Yingde Gases Investment, Ltd. | 300,000 | 309,358 | ||||||
Insurance-Life/Health — 0.1% | ||||||||
Athene Holding, Ltd. | 82,000 | 97,377 |
37 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
| |||||||
Insurance-Life/Health (continued) | ||||||||
Manulife Financial Corp. | $ | 122,000 | $ | 132,167 | ||||
229,544 | ||||||||
Insurance-Property/Casualty — 0.1% | ||||||||
Enstar Group, Ltd. | 205,000 | 229,714 | ||||||
Investment Companies — 0.3% | ||||||||
Huarong Finance 2019 Co., Ltd. | 230,000 | 240,396 | ||||||
Huarong Finance II Co., Ltd. | 400,000 | 436,382 | ||||||
MDGH — GMTN BV | 400,000 | 447,159 | ||||||
1,123,937 | ||||||||
Machinery-Farming — 0.1% | ||||||||
CNH Industrial Finance Europe SA | EUR | 150,000 | 178,559 | |||||
Medical-Drugs — 0.4% | ||||||||
AstraZeneca PLC | 48,000 | 43,492 | ||||||
Endo Dac/Endo Finance LLC/Endo Finco, Inc. | 400,000 | 399,600 | ||||||
Endo Dac/Endo Finance LLC/Endo Finco, Inc. | 621,000 | 456,435 | ||||||
Shire Acquisitions Investments Ireland DAC | 235,000 | 261,302 | ||||||
Takeda Pharmaceutical Co., Ltd. | 204,000 | 207,234 | ||||||
Upjohn Finance BV | EUR | 100,000 | 121,964 | |||||
1,490,027 | ||||||||
Medical-Generic Drugs — 0.1% | ||||||||
Allergan Funding SCS | EUR | 160,000 | 192,528 | |||||
Metal-Aluminum — 0.1% | ||||||||
Indonesia Asahan Aluminium Persero PT | 200,000 | 243,506 | ||||||
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
Metal-Copper — 0.2% | ||||||||
First Quantum Minerals, Ltd. | $ | 200,000 | $ | 191,750 | ||||
First Quantum Minerals, Ltd. | 482,000 | 481,398 | ||||||
673,148 | ||||||||
Metal-Diversified — 0.1% | ||||||||
Glencore Finance Europe, Ltd. | EUR | 150,000 | 180,321 | |||||
Metal-Iron — 0.2% | ||||||||
Mineral Resources, Ltd. | 600,000 | 651,126 | ||||||
Motion Pictures & Services — 0.2% | ||||||||
Banijay Entertainment SASU | 847,000 | 852,294 | ||||||
Multimedia — 0.1% | ||||||||
Globo Comunicacao e Participacoes SA | 200,000 | 196,250 | ||||||
Oil Companies-Exploration & Production — 0.6% |
| |||||||
Canadian Natural Resources, Ltd. | 88,000 | 88,652 | ||||||
CNOOC Finance, Ltd. | 440,000 | 468,839 | ||||||
MEG Energy Corp. | 663,000 | 650,350 | ||||||
MEG Energy Corp. | 400,000 | 358,732 | ||||||
Saka Energi Indonesia PT | 425,000 | 382,500 | ||||||
Tullow Oil PLC | 200,000 | 103,000 | ||||||
Wintershall Dea Finance B.V. | EUR | 200,000 | 219,511 | |||||
2,271,584 | ||||||||
Oil Companies-Integrated — 1.0% | ||||||||
BP Capital Markets PLC | GBP | 200,000 | 278,963 | |||||
Cenovus Energy, Inc. | 689,000 | 622,911 |
38 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
| |||||||
Oil Companies-Integrated (continued) | ||||||||
Ecopetrol SA | $ | 135,000 | $ | 147,150 | ||||
Ecopetrol SA | 300,000 | 359,250 | ||||||
Equinor ASA | 66,000 | 68,469 | ||||||
Equinor ASA | 79,000 | 83,772 | ||||||
Pertamina Persero PT | 200,000 | 254,978 | ||||||
Petro-Canada | 49,000 | 60,583 | ||||||
Petroleos Mexicanos | 350,000 | 268,275 | ||||||
Petroleos Mexicanos | 350,000 | 328,125 | ||||||
Petroleos Mexicanos | 550,000 | 456,745 | ||||||
Petroleos Mexicanos | 300,000 | 232,860 | ||||||
Shell International Finance BV | EUR | 140,000 | 179,233 | |||||
Total Capital International SA | 63,000 | 68,815 | ||||||
3,410,129 | ||||||||
Paper & Related Products — 0.1% | ||||||||
Suzano Austria GmbH | 255,000 | 255,625 | ||||||
Petrochemicals — 0.1% | ||||||||
Equate Petrochemical BV | 200,000 | 209,750 | ||||||
Real Estate Investment Trusts — 0.2% | ||||||||
Hammerson PLC | EUR | 175,000 | 191,391 | |||||
Trust Fibro Uno | 400,000 | 399,000 | ||||||
590,391 | ||||||||
Real Estate Operations & Development — 0.2% |
| |||||||
Aroundtown SA | EUR 200,000 | 237,810 | ||||||
Aroundtown SA | GBP 100,000 | 136,795 | ||||||
Logicor Financing SARL | EUR 375,000 | 439,864 | ||||||
814,469 | ||||||||
Retail-Petroleum Products — 0.2% | ||||||||
eG Global Finance PLC | 633,000 | 648,034 | ||||||
Satellite Telecom — 0.5% | ||||||||
Connect Finco SARL/Connect US Finco LLC | 739,000 | 741,328 | ||||||
Telesat Canada/Telesat LLC | 214,000 | 214,867 | ||||||
Telesat Canada/Telesat LLC | 823,000 | 828,925 | ||||||
1,785,120 | ||||||||
Security Services — 0.2% | ||||||||
GW B-CR Security Corp. | 693,000 | 727,650 | ||||||
Semiconductor Components-Integrated Circuits — 0.1% |
| |||||||
TSMC Global, Ltd. | 200,000 | 198,220 | ||||||
TSMC Global, Ltd. | 200,000 | 196,001 | ||||||
394,221 | ||||||||
Steel-Producers — 0.1% | ||||||||
Shandong Iron & Steel Xinheng International Co., Ltd. | 200,000 | 201,986 | ||||||
SupraNational Banks — 0.2% | ||||||||
African Development Bank | 142,000 | 143,740 | ||||||
European Bank for Reconstruction & Development | 228,000 | 237,358 | ||||||
International Bank for Reconstruction & Development | 121,000 | 137,312 |
39 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
| |||||||
SupraNational Banks (continued) | ||||||||
International Finance Corp. | $ | 256,000 | $ | 257,307 | ||||
775,717 | ||||||||
Telecom Services — 0.3% | ||||||||
Altice France Holding SA | 630,000 | 600,887 | ||||||
Optus Finance Pty, Ltd. | EUR 300,000 | 363,047 | ||||||
963,934 | ||||||||
Telephone-Integrated — 0.1% | ||||||||
Telecom Italia Capital SA | 78,000 | 103,740 | ||||||
Telefonica Emisiones SA | GBP 100,000 | 169,763 | ||||||
273,503 | ||||||||
Transport-Rail — 0.0% | ||||||||
Canadian Pacific Railway Co. | 88,000 | 133,969 | ||||||
Transport-Services — 0.1% | ||||||||
Rumo Luxembourg SARL | 290,000 | 301,658 | ||||||
Vitamins & Nutrition Products — 0.1% | ||||||||
Herbalife Nutrition, Ltd./HLF Financing, Inc. | 190,000 | 204,013 | ||||||
Warehousing & Harbor Transportation Services — 0.1% |
| |||||||
DP World PLC | 400,000 | 404,000 | ||||||
Total Foreign Corporate Bonds & Notes | ||||||||
(cost $51,701,935) | 52,598,592 | |||||||
FOREIGN GOVERNMENT OBLIGATIONS — 15.5% |
| |||||||
Sovereign — 15.5% | ||||||||
Arab Republic of Egypt | 550,000 | 562,157 | ||||||
Arab Republic of Egypt | 270,000 | 250,968 | ||||||
Arab Republic of Egypt | 370,000 | 352,425 | ||||||
Arab Republic of Egypt | 1,000,000 | 1,024,380 | ||||||
Sovereign (continued) | ||||||||
Arab Republic of Egypt | 350,000 | 338,122 | ||||||
Arab Republic of Egypt | 550,000 | 544,258 | ||||||
Dominican Republic | 400,000 | 378,004 | ||||||
Emirate of Abu Dhabi | 460,000 | 488,042 | ||||||
Emirate of Abu Dhabi | 1,070,000 | 1,189,042 | ||||||
Emirate of Abu Dhabi | 600,000 | 642,000 | ||||||
Emirate of Abu Dhabi | 200,000 | 244,000 | ||||||
Federative Republic of Brazil | 700,000 | 684,250 | ||||||
Federative Republic of Brazil | 580,000 | 584,350 | ||||||
Government of Romania | 750,000 | 769,590 | ||||||
Government of Romania | 770,000 | 790,112 | ||||||
Government of Romania | 500,000 | 515,000 | ||||||
Government of Ukraine | 200,000 | 183,760 | ||||||
Government of Ukraine | 400,000 | 409,500 | ||||||
Government of Ukraine | 550,000 | 558,591 | ||||||
Government of Ukraine | 250,000 | 250,625 | ||||||
Government of Ukraine | 800,000 | 864,000 | ||||||
Islamic Republic of Pakistan | 655,000 | 651,070 | ||||||
Islamic Republic of Pakistan | 500,000 | 529,468 |
40 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
FOREIGN GOVERNMENT OBLIGATIONS (continued) |
| |||||||
Sovereign (continued) | ||||||||
Kingdom of Bahrain | $ | 200,000 | $ | 183,909 | ||||
Kingdom of Bahrain | 340,000 | 372,083 | ||||||
Kingdom of Jordan | 550,000 | 550,006 | ||||||
Kingdom of Jordan | 725,000 | 702,359 | ||||||
Kingdom of Jordan | 470,000 | 466,121 | ||||||
Kingdom of Saudi Arabia | 400,000 | 434,392 | ||||||
Kingdom of Saudi Arabia | 1,085,000 | 1,178,288 | ||||||
Kingdom of Saudi Arabia | 240,000 | 265,862 | ||||||
Kingdom of Saudi Arabia | 200,000 | 246,500 | ||||||
Kingdom of Saudi Arabia | 300,000 | 372,000 | ||||||
Kingdom of Saudi Arabia | 300,000 | 366,690 | ||||||
Kingdom of Saudi Arabia | 280,000 | 362,012 | ||||||
Kingdom of Spain | EUR 545,000 | 1,040,206 | ||||||
Oriental Republic of Uruguay | 187,500 | 222,893 | ||||||
Oriental Republic of Uruguay | 720,000 | 957,600 | ||||||
Republic of the Philippines | 360,000 | 547,246 | ||||||
Republic of Angola | 350,000 | 272,125 | ||||||
Republic of Angola | 350,000 | 303,639 | ||||||
Republic of Armenia | 210,000 | 203,217 | ||||||
Sovereign (continued) | ||||||||
Republic of Belarus | 760,000 | 703,334 | ||||||
Republic of Belarus | 550,000 | 512,904 | ||||||
Republic of Belarus | 750,000 | 725,715 | ||||||
Republic of Chile | 600,000 | 630,906 | ||||||
Republic of Chile | 300,000 | 342,000 | ||||||
Republic of Colombia | 535,000 | 548,915 | ||||||
Republic of Colombia | 500,000 | 561,570 | ||||||
Republic of Colombia | 230,000 | 267,950 | ||||||
Republic of Colombia | 320,000 | 501,203 | ||||||
Republic of Costa Rica | 1,400,000 | 1,316,000 | ||||||
Republic of El Salvador | 360,000 | 309,060 | ||||||
Republic of El Salvador | 600,000 | 515,400 | ||||||
Republic of El Salvador | 85,000 | 80,283 | ||||||
Republic of El Salvador | 740,000 | 699,300 | ||||||
Republic of Georgia | 200,000 | 203,278 | ||||||
Republic of Ghana | 350,000 | 314,558 | ||||||
Republic of Ghana | 560,000 | 470,400 | ||||||
Republic of Ghana | 253,000 | 213,056 | ||||||
Republic of Indonesia | 300,000 | 334,796 |
41 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
FOREIGN GOVERNMENT OBLIGATIONS (continued) |
| |||||||
Sovereign (continued) | ||||||||
Republic of Indonesia | $ | 500,000 | $ | 772,419 | ||||
Republic of Ireland | EUR | 230,000 | 347,942 | |||||
Republic of Italy | EUR | 870,000 | 1,133,026 | |||||
Republic of Italy | EUR | 380,000 | 495,386 | |||||
Republic of Italy | 200,000 | 214,321 | ||||||
Republic of Italy | EUR | 700,000 | 917,109 | |||||
Republic of Ivory Coast | 929,600 | 859,880 | ||||||
Republic of Ivory Coast | 900,000 | 840,726 | ||||||
Republic of Ivory Coast | 350,000 | 349,394 | ||||||
Republic of Kazakhstan | 350,000 | 542,675 | ||||||
Republic of Kenya | 1,100,000 | 1,117,798 | ||||||
Republic of Kenya | 670,000 | 656,935 | ||||||
Republic of Kenya | 200,000 | 197,061 | ||||||
Republic of Kenya | 250,000 | 239,500 | ||||||
Republic of Panama | 600,000 | 686,100 | ||||||
Republic of Panama | 200,000 | 250,500 | ||||||
Republic of Panama | 200,000 | 290,252 | ||||||
Republic of Panama | 200,000 | 307,252 | ||||||
Republic of Paraguay | 450,000 | 518,175 | ||||||
Sovereign (continued) | ||||||||
Republic of South Africa | 350,000 | 326,004 | ||||||
Republic of South Africa | 500,000 | 423,030 | ||||||
Republic of Sri Lanka | 420,000 | 308,700 | ||||||
Republic of Sri Lanka | 400,000 | 270,000 | ||||||
Republic of Sri Lanka | 500,000 | 337,500 | ||||||
Republic of Sri Lanka | 1,050,000 | 708,750 | ||||||
Republic of the Philippines | 405,000 | 428,275 | ||||||
Republic of the Philippines | 200,000 | 233,326 | ||||||
Republic of Turkey | 500,000 | 454,750 | ||||||
Republic of Turkey | 800,000 | 632,560 | ||||||
Republic of Turkey | 570,000 | 497,371 | ||||||
Republic of Turkey | 460,000 | 473,363 | ||||||
Russian Federation | 1,200,000 | 1,376,827 | ||||||
Russian Federation | 200,000 | 264,793 | ||||||
State of Qatar | 330,000 | 361,673 | ||||||
State of Qatar | 320,000 | 370,749 | ||||||
State of Qatar | 400,000 | 514,680 | ||||||
State of Qatar | 335,000 | 431,044 | ||||||
State of Qatar | 1,140,000 | 1,534,953 |
42 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
FOREIGN GOVERNMENT OBLIGATIONS (continued) |
| |||||||
Sovereign (continued) | ||||||||
State of Qatar | $ | 400,000 | $ | 555,672 | ||||
Sultanate of Oman | 600,000 | 551,362 | ||||||
United Kingdom Gilt Treasury | GBP | 90,000 | 126,537 | |||||
United Kingdom Gilt Treasury | GBP | 90,000 | 179,410 | |||||
United Mexican States | 320,000 | 338,400 | ||||||
United Mexican States | 220,000 | 239,910 | ||||||
United Mexican States | 450,000 | 504,000 | ||||||
Total Foreign Government Obligations | ||||||||
(cost $54,285,667) | 54,281,580 | |||||||
U.S. GOVERNMENT AGENCIES — 15.9% | ||||||||
Federal Home Loan Bank — 0.3% | ||||||||
3.25% due 11/16/2028 | 1,000,000 | 1,200,317 | ||||||
Federal Home Loan Mtg. Corp. — 4.6% | ||||||||
2.50% due 01/01/2028 | 132,604 | 140,337 | ||||||
2.50% due 04/01/2028 | 39,739 | 42,030 | ||||||
2.50% due 03/01/2031 | 75,359 | 78,810 | ||||||
2.50% due 11/01/2032 | 549,670 | 589,032 | ||||||
3.00% due 07/01/2045 | 1,422,284 | 1,500,923 | ||||||
3.00% due 10/01/2045 | 478,527 | 504,153 | ||||||
3.50% due 03/01/2042 | 208,728 | 226,178 | ||||||
3.50% due 04/01/2042 | 220,253 | 238,560 | ||||||
3.50% due 09/01/2043 | 176,091 | 193,843 | ||||||
3.50% due 07/01/2045 | 1,985,073 | 2,146,895 | ||||||
3.50% due 03/01/2046 | 698,857 | 745,223 | ||||||
3.50% due 11/01/2047 | 955,908 | 1,012,389 | ||||||
3.50% due 01/01/2048 | 866,770 | 921,371 | ||||||
3.50% due 03/01/2048 | 2,757,062 | 2,987,275 | ||||||
3.50% due 04/01/2050 | 912,653 | 961,881 | ||||||
4.00% due 01/01/2046 | 207,221 | 227,993 | ||||||
4.00% due 07/01/2049 | 368,839 | 400,452 | ||||||
4.00% due 01/01/2050 | 422,521 | 450,338 | ||||||
4.50% due 03/01/2039 | 911,380 | 1,032,075 | ||||||
4.50% due 12/01/2039 | 4,718 | 5,296 | ||||||
4.50% due 07/01/2045 | 975,323 | 1,096,678 | ||||||
5.00% due 02/01/2034 | 13,301 | 15,315 | ||||||
5.00% due 05/01/2034 | 21,001 | 24,125 | ||||||
5.00% due 11/01/2043 | 139,828 | 160,874 | ||||||
5.50% due 05/01/2037 | 30,958 | 35,936 | ||||||
6.00% due 03/01/2040 | 25,748 | 30,412 | ||||||
6.50% due 02/01/2035 | 5,983 | 6,950 | ||||||
Federal Home Loan Mtg. Corp. FRS | 4,915 | 5,090 | ||||||
3.47% (12 ML+1.88%) | 49,277 | 52,152 | ||||||
Federal Home Loan Mtg. Corp. (continued) | ||||||||
Federal Home Loan Mtg. Corp. REMIC | 164,424 | 169,366 | ||||||
Federal Home Loan Mtg. Corp. REMIC FRS | 201,879 | 33,575 | ||||||
16,035,527 | ||||||||
Federal National Mtg. Assoc. — 7.7% | ||||||||
2.50% due 12/01/2026 | 269,163 | 281,703 | ||||||
2.50% due 08/01/2031 | 1,285,474 | 1,345,390 | ||||||
2.50% due 02/01/2032 | 527,113 | 560,306 | ||||||
2.50% due 05/01/2050 | 390,478 | 414,327 | ||||||
2.50% due 06/01/2050 | �� | 977,995 | 1,026,675 | |||||
3.00% due 10/01/2027 | 129,640 | 136,276 | ||||||
3.00% due 03/01/2030 | 761,561 | 818,538 | ||||||
3.00% due 10/01/2030 | 112,790 | 118,320 | ||||||
3.00% due 02/01/2033 | 1,132,611 | 1,189,204 | ||||||
3.00% due 07/01/2034 | 649,357 | 680,901 | ||||||
3.00% due 11/01/2039 | 565,002 | 591,610 | ||||||
3.00% due 12/01/2042 | 79,476 | 85,794 | ||||||
3.00% due 04/01/2047 | 1,494,844 | 1,573,084 | ||||||
3.00% due 09/01/2048 | 1,498,945 | 1,572,841 | ||||||
3.00% due 11/01/2048 | 1,164,621 | 1,222,050 | ||||||
3.00% due 06/01/2049 | 679,044 | 726,157 | ||||||
3.00% due 03/01/2050 | 942,658 | 993,224 | ||||||
3.50% due 08/01/2026 | 43,467 | 46,035 | ||||||
3.50% due 08/01/2027 | 27,031 | 28,625 | ||||||
3.50% due 10/01/2028 | 18,964 | 20,548 | ||||||
3.50% due 02/01/2043 | 90,488 | 101,828 | ||||||
3.50% due 10/01/2045 | 192,547 | 210,815 | ||||||
3.50% due 11/01/2045 | 109,629 | 116,881 | ||||||
3.50% due 03/01/2046 | 1,502,058 | 1,596,204 | ||||||
3.50% due 07/01/2046 | 98,372 | 106,710 | ||||||
3.50% due 04/01/2048 | 1,064,211 | 1,143,644 | ||||||
4.00% due 11/01/2025 | 59,158 | 62,733 | ||||||
4.00% due 03/01/2039 | 813,005 | 871,820 | ||||||
4.00% due 02/01/2045 | 1,063,705 | 1,184,854 | ||||||
4.00% due 05/01/2047 | 322,882 | 346,291 | ||||||
4.00% due 07/01/2047 | 1,374,220 | 1,473,543 | ||||||
4.00% due 06/01/2048 | 571,864 | 617,289 | ||||||
4.00% due 09/01/2048 | 571,053 | 611,009 | ||||||
4.00% due 01/01/2049 | 946,872 | 1,009,829 | ||||||
4.00% due 03/01/2050 | 832,172 | 886,951 | ||||||
4.50% due 11/01/2022 | 2,091 | 2,190 | ||||||
4.50% due 06/01/2023 | 4,412 | 4,635 | ||||||
4.50% due 08/01/2045 | 1,200,028 | 1,374,406 | ||||||
4.50% due 10/01/2048 | 44,007 | 47,563 | ||||||
4.50% due 11/01/2048 | 892,313 | 967,697 | ||||||
4.50% due 03/01/2049 | 92,191 | 99,695 | ||||||
5.00% due 01/01/2023 | 2,384 | 2,510 | ||||||
5.00% due 03/01/2034 | 12,400 | 14,248 | ||||||
5.00% due 05/01/2035 | 6,548 | 7,512 | ||||||
5.00% due 05/01/2040 | 51,789 | 59,650 | ||||||
5.50% due 06/01/2038 | 15,952 | 18,513 | ||||||
6.00% due 02/01/2032 | 3,982 | 4,443 | ||||||
6.00% due 05/01/2034 | 1,068 | 1,264 |
43 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
U.S. GOVERNMENT AGENCIES (continued) | ||||||||
Federal National Mtg. Assoc. (continued) | ||||||||
6.00% due 10/01/2034 | $ | 15,661 | $ | 17,482 | ||||
7.50% due 01/01/2030 | 799 | 811 | ||||||
8.00% due 11/01/2028 | 1,553 | 1,711 | ||||||
Federal National Mtg. Assoc. FRS | 37,006 | 38,255 | ||||||
3.07% (12 ML+1.57%) | 8,942 | 9,327 | ||||||
3.11% (1 Yr USTYCR+2.26%) | 17,461 | 18,409 | ||||||
3.12% (1 Yr USTYCR+2.22%) | 27,055 | 28,509 | ||||||
3.28% (12 ML+1.91%) | 31,819 | 33,530 | ||||||
3.32% (12 ML+1.67%) | 34,704 | 36,312 | ||||||
3.72% (12 ML+1.77%) | 39,308 | 40,985 | ||||||
3.76% (12 ML+1.83%) | 16,832 | 17,532 | ||||||
3.99% (12 ML+1.82%) | 11,164 | 11,635 | ||||||
Federal National Mtg. Assoc. REMIC | ||||||||
Series 2018-27, | 294,828 | 314,865 | ||||||
Series 2018-35, | 292,191 | 306,436 | ||||||
27,252,134 | ||||||||
Government National Mtg. Assoc. — 2.1% | ||||||||
2.50% due 05/20/2050 | 590,900 | 621,183 | ||||||
2.50% due 06/20/2050 | 1,979,202 | 2,080,634 | ||||||
3.00% due 05/20/2046 | 1,397,725 | 1,478,524 | ||||||
3.00% due 05/20/2050 | 1,476,938 | 1,552,212 | ||||||
4.50% due 10/20/2045 | 954,566 | 1,060,218 | ||||||
4.50% due 04/20/2047 | 501,812 | 546,042 | ||||||
7,338,813 | ||||||||
Uniform Mtg. Backed Securities — 1.2% | ||||||||
2.00% due October 30 TBA | 750,000 | 775,430 | ||||||
2.50% due October 30 TBA | 1,200,000 | 1,258,734 | ||||||
3.00% due October 30 TBA | 2,000,000 | 2,095,117 | ||||||
4,129,281 | ||||||||
Total U.S. Government Agencies | ||||||||
(cost $54,159,455) | 55,956,072 | |||||||
U.S. GOVERNMENT TREASURIES — 0.6% | ||||||||
United States Treasury Notes — 0.6% | ||||||||
1.63% due 08/15/2029 | 1,000,000 | 1,089,062 | ||||||
2.00% due 05/31/2021 | 700,000 | 708,750 | ||||||
2.00% due 08/15/2025 | 100,000 | 108,371 | ||||||
2.50% due 01/31/2024 | 250,000 | 269,307 | ||||||
Total U.S. Government Treasuries | ||||||||
(cost $2,068,136) | 2,175,490 | |||||||
LOANS(7)(8)(9) — 5.1% | ||||||||
Aerospace/Defense-Equipment — 0.0% | ||||||||
Spirit Aerosystems Inc. FRS | 29,391 | 29,318 | ||||||
WP CPP Holdings LLC FRS | 123,099 | 107,250 | ||||||
136,568 | ||||||||
Airlines — 0.1% | ||||||||
Delta Air Lines, Inc. FRS | 116,371 | 116,054 | ||||||
SkyMiles IP, Ltd. FRS | 24,890 | 25,077 | ||||||
WestJet Airlines, Ltd. FRS | 47,528 | 41,037 | ||||||
WestJet Airlines, Ltd. FRS | 132,006 | 113,979 | ||||||
296,147 | ||||||||
Apparel Manufacturers — 0.0% | ||||||||
Samsonite IP Holdings SARL FRS | 97,972 | 95,400 | ||||||
Samsonite IP Holdings Sarl FRS | 25,718 | 25,043 | ||||||
120,443 | ||||||||
Applications Software — 0.1% | ||||||||
Project Boost Purchaser LLC FRS | 166,015 | 161,139 | ||||||
VS Buyer LLC FRS | 87,065 | 85,215 | ||||||
246,354 | ||||||||
Athletic Equipment — 0.0% | ||||||||
Varsity Brands Holding Co., Inc. FRS | 144,149 | 120,274 | ||||||
Auction Houses/Art Dealers — 0.0% | ||||||||
Sotheby’s FRS | 89,993 | 89,374 | ||||||
44 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
LOANS(7)(8)(9) (continued) | ||||||||
Auto Repair Centers — 0.1% | ||||||||
Mavis Tire Express Services Corp. FRS | $ | 139,639 | $ | 132,075 | ||||
Wand NewCo. 3, Inc. FRS | 28,887 | 27,840 | ||||||
Wand NewCo. 3, Inc. FRS | 72,613 | 69,981 | ||||||
229,896 | ||||||||
Auto/Truck Parts & Equipment-Original — 0.1% | ||||||||
TI Group Automotive Systems LLC FRS | 146,372 | 145,137 | ||||||
Broadcast Services/Program — 0.0% | ||||||||
NEP Group, Inc. FRS | 137,550 | 117,949 | ||||||
Building & Construction-Misc. — 0.0% | ||||||||
Verra Mobility Corp. FRS | 129,506 | 126,592 | ||||||
Building Products-Air & Heating — 0.0% | ||||||||
API Heat Transfer ThermaSys Corp. FRS | 174,536 | 134,567 | ||||||
Building Products-Doors & Windows — 0.0% | ||||||||
CHI Doors Holdings Corp. FRS | 136,387 | 135,023 | ||||||
Building-Heavy Construction — 0.0% | ||||||||
USIC Holdings, Inc. FRS | 105,674 | 104,088 | ||||||
Cable/Satellite TV — 0.1% | ||||||||
CSC Holdings LLC FRS | 204,670 | 197,609 | ||||||
CSC Holdings LLC FRS | 151,310 | 146,430 | ||||||
Cable/Satellite TV (continued) | ||||||||
UPC Broadband Holding BV FRS | 50,884 | 49,142 | ||||||
UPC Broadband Holding BV FRS | 50,884 | 49,142 | ||||||
Virgin Media Bristol LLC FRS | 66,000 | 64,821 | ||||||
507,144 | ||||||||
Casino Hotels — 0.2% | ||||||||
Caesars Resort Collection LLC FRS | 204,012 | 190,638 | ||||||
CityCenter Holdings LLC FRS | 138,495 | 132,713 | ||||||
Golden Nugget, Inc. FRS | 68,515 | 61,081 | ||||||
Golden Nugget, Inc. FRS | 58,129 | 51,822 | ||||||
Golden Nugget, Inc. FRS | 14,602 | 16,500 | ||||||
Station Casinos LLC FRS | 88,000 | 83,655 | ||||||
536,409 | ||||||||
Casino Services — 0.0% | ||||||||
Stars Group Holdings FRS | 86,428 | 86,365 | ||||||
Cellular Telecom — 0.1% | ||||||||
Altice France SA FRS | 37,613 | 36,109 | ||||||
Altice France SA FRS | 171,938 | 166,350 | ||||||
T-Mobile USA, Inc. FRS | 71,853 | 71,763 | ||||||
274,222 | ||||||||
45 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
LOANS(7)(8)(9) (continued) | ||||||||
Chemicals-Diversified — 0.1% | ||||||||
Hexion, Inc. FRS | $ | 139,237 | $ | 136,800 | ||||
Chemicals-Specialty — 0.1% | ||||||||
Diamond BC BV FRS | 138,187 | 128,946 | ||||||
PQ Corp. FRS | 66,632 | 66,283 | ||||||
Starfruit US HoldCo. LLC FRS | 184,443 | 177,987 | ||||||
373,216 | ||||||||
Commercial Services-Finance — 0.1% | ||||||||
Financial & Risk US Holdings, Inc. FRS | 135,253 | 133,836 | ||||||
MoneyGram International, Inc. FRS | 109,502 | 106,901 | ||||||
MPH Acquisition Holdings LLC FRS | 111,027 | 109,025 | ||||||
349,762 | ||||||||
Computer Data Security — 0.0% | ||||||||
McAfee LLC FRS | 132,632 | 131,450 | ||||||
Computer Graphics — 0.1% | ||||||||
Corel, Inc. FRS | 144,904 | 140,557 | ||||||
Computer Services — 0.0% | ||||||||
Tempo Acquisition LLC FRS | 119,334 | 115,828 | ||||||
Computer Software — 0.1% | ||||||||
Camelot Finance SA FRS | 101,383 | 99,693 | ||||||
Cornerstone OnDemand, Inc. FRS | 117,780 | 117,449 | ||||||
Computer Software (continued) | ||||||||
Rackspace Hosting, Inc. FRS | 150,766 | 147,728 | ||||||
364,870 | ||||||||
Computers-Integrated Systems — 0.0% | ||||||||
Everi Payments, Inc. FRS | 60,958 | 61,873 | ||||||
Consulting Services — 0.0% | ||||||||
AlixPartners LLP FRS | 136,524 | 132,965 | ||||||
Consumer Products-Misc. — 0.0% | ||||||||
Reynolds Group Holdings, Inc. FRS | 104,112 | 102,420 | ||||||
Containers-Metal/Glass — 0.1% | ||||||||
Mauser Packaging Solutions Holding Co FRS | 188,110 | 177,216 | ||||||
Containers-Paper/Plastic — 0.1% | ||||||||
Charter NEX US, Inc. FRS | 97,067 | 94,579 | ||||||
Graham Packaging Company, Inc. FRS | 121,700 | 120,901 | ||||||
Patriot Container Corp. FRS | 108,247 | 105,541 | ||||||
Trident TPI Holdings, Inc. FRS | 22,250 | 21,791 | ||||||
Trident TPI Holdings, Inc. FRS | 64,520 | 63,190 | ||||||
406,002 | ||||||||
Cosmetics & Toiletries — 0.1% | ||||||||
Sunshine Luxembourg VII SARL FRS | 140,215 | 139,239 | ||||||
46 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
LOANS(7)(8)(9) (continued) | ||||||||
Cruise Lines — 0.0% | ||||||||
Carnival Corp. FRS | $ | 122,888 | $ | 124,015 | ||||
Data Processing/Management — 0.0% | ||||||||
CCC Information Services, Inc. FRS | 136,530 | 135,393 | ||||||
Direct Marketing — 0.1% | ||||||||
Terrier Media Buyer, Inc. FRS | 215,451 | 209,687 | ||||||
Distribution/Wholesale — 0.1% | ||||||||
Fastlane Parent Co., Inc. FRS | 105,659 | 101,433 | ||||||
Univar USA, Inc. FRS | 122,290 | 120,456 | ||||||
221,889 | ||||||||
Diversified Operations — 0.0% | ||||||||
Travelport Finance Luxembourg SARL FRS | 34,258 | 33,316 | ||||||
Travelport Finance Luxembourg SARL FRS | 199,907 | 124,442 | ||||||
Travelport Finance Luxembourg SARL FRS | 34,258 | 32,867 | ||||||
190,625 | ||||||||
E-Commerce/Services — 0.0% | ||||||||
RentPath LLC FRS | 1,062,906 | 106,291 | ||||||
Electric-Integrated — 0.0% | ||||||||
Talen Energy Supply LLC FRS | 83,000 | 81,444 | ||||||
Electronic Components-Misc. — 0.0% | ||||||||
AI Ladder Luxembourg Subco SARL FRS | 132,720 | 125,974 | ||||||
Electronic Components-Semiconductors — 0.0% | ||||||||
Bright Bidco BV FRS | 177,903 | 84,885 | ||||||
Electronic Parts Distribution — 0.1% | ||||||||
Tech Data Corp. FRS | 106,494 | 106,582 | ||||||
Tech Data Corp. FRS | 122,180 | 118,973 | ||||||
225,555 | ||||||||
Enterprise Software/Service — 0.4% | ||||||||
Applied Systems, Inc. FRS | 132,645 | 131,816 | ||||||
Banff Merger Sub, Inc. FRS | 128,347 | 124,304 | ||||||
DCert Buyer, Inc. FRS | 105,068 | 103,545 | ||||||
Epicor Software Corp. FRS | 105,000 | 104,370 | ||||||
Epicor Software Corp. FRS | 13,411 | 13,691 | ||||||
Finastra USA, Inc. FRS | 39,954 | 37,307 | ||||||
Finastra USA, Inc. FRS | 102,342 | 95,562 | ||||||
Greeneden US Holdings II LLC FRS | 137,154 | 136,150 | ||||||
MYOB US Borrower LLC FRS | 102,802 | 100,104 | ||||||
Sophia LP FRS | 161,570 | 160,409 | ||||||
Sophia LP FRS | 128,783 | 128,219 |
47 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
LOANS(7)(8)(9) (continued) | ||||||||
Enterprise Software/Service (continued) | ||||||||
Ultimate Software Group, Inc. FRS | $ | 102,477 | $ | 101,532 | ||||
Ultimate Software Group, Inc. FRS | 20,863 | 20,775 | ||||||
Ultimate Software Group, Inc. FRS | 35,449 | 36,113 | ||||||
1,293,897 | ||||||||
Finance-Credit Card — 0.0% | ||||||||
PI US MergerCo, Inc. FRS | 135,546 | 130,463 | ||||||
Finance-Investment Banker/Broker — 0.0% | ||||||||
Deerfield Dakota Holding LLC FRS | 68,895 | 68,407 | ||||||
Motion Finco SARL FRS | 61,220 | 52,649 | ||||||
Motion Finco SARL FRS | 8,046 | 6,919 | ||||||
127,975 | ||||||||
Food-Misc./Diversified — 0.1% | ||||||||
Dole Food Co., Inc. FRS | 30,168 | 29,678 | ||||||
Dole Food Co., Inc. FRS | 51,281 | 50,448 | ||||||
Froneri US, Inc. FRS | 121,288 | 116,474 | ||||||
196,600 | ||||||||
Gambling (Non-Hotel) — 0.0% | ||||||||
Scientific Games International, Inc. FRS | 27,750 | 26,116 | ||||||
Scientific Games International, Inc. FRS | 113,435 | 106,757 | ||||||
132,873 | ||||||||
Human Resources — 0.1% | ||||||||
Creative Artists Agency LLC FRS | 105,419 | 101,413 | ||||||
Team Health Holdings, Inc. FRS | 153,085 | 127,779 | ||||||
229,192 | ||||||||
�� | ||||||||
Insurance Brokers — 0.1% | ||||||||
Alliant Holdings Intermediate LLC FRS | 137,538 | 133,240 | ||||||
HUB International, Ltd. FRS | 138,468 | 133,552 | ||||||
266,792 | ||||||||
Insurance-Property/Casualty — 0.2% | ||||||||
AmWINS Group, Inc. FRS | 122,681 | 121,488 | ||||||
Asurion LLC FRS | 139,066 | 136,781 | ||||||
Asurion LLC FRS | 50,000 | 50,036 | ||||||
Asurion LLC FRS | 6,670 | 6,675 | ||||||
Sedgwick Claims Management Services, Inc. FRS | 183,105 | 176,434 | ||||||
491,414 | ||||||||
Internet Financial Services — 0.1% | ||||||||
ION Trading Finance, Ltd. FRS | 141,621 | 138,582 | ||||||
Investment Management/Advisor Services — 0.1% | ||||||||
Advisor Group Holdings, Inc. FRS | 144,905 | 139,870 | ||||||
Machinery-Electrical — 0.0% | ||||||||
Brookfield WEC Holdings, Inc. FRS | 101,198 | 98,523 | ||||||
48 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
LOANS(7)(8)(9) (continued) | ||||||||
Machinery-General Industrial — 0.1% | ||||||||
Vertical US Newco, Inc. FRS | $ | 139,352 | $ | 138,083 | ||||
Machinery-Pumps — 0.0% | ||||||||
STS Operating, Inc. FRS | 136,364 | 128,966 | ||||||
Medical Information Systems — 0.1% | ||||||||
Navicure, Inc. FRS | 75,000 | 73,126 | ||||||
Navicure, Inc. FRS | 37,841 | 36,895 | ||||||
Athenahealth, Inc. FRS | 122,689 | 120,746 | ||||||
230,767 | ||||||||
Medical Labs & Testing Services — 0.1% | ||||||||
Envision Healthcare Corp. FRS | 261,008 | 186,185 | ||||||
Jaguar Holding Co. II FRS | 140,151 | 139,546 | ||||||
325,731 | ||||||||
Medical-Drugs — 0.1% | ||||||||
Akorn, Inc. FRS | 114,678 | 96,616 | ||||||
Alphabet Holding Co., Inc. FRS | 144,511 | 140,284 | ||||||
Bausch Health Americas, Inc. FRS | 82,999 | 80,976 | ||||||
317,876 | ||||||||
Medical-Generic Drugs — 0.1% | ||||||||
Amneal Pharmaceuticals LLC FRS | 120,382 | 113,159 | ||||||
Endo Luxembourg Finance Co. I SARL FRS | 134,652 | 128,280 | ||||||
241,439 | ||||||||
Medical-Hospitals — 0.0% | ||||||||
RegionalCare Hospital Partners Holdings, Inc. FRS | 110,231 | 106,924 | ||||||
Metal Processors & Fabrication — 0.1% | ||||||||
Crosby US Acquisition Corp. FRS | 103,787 | 98,425 | ||||||
SEI Holdings I Corp. FRS | 45,393 | 42,897 | ||||||
141,322 | ||||||||
Miscellaneous Manufacturing — 0.0% | ||||||||
Excelitas Technologies Corp. FRS | 105,000 | 102,813 | ||||||
Multimedia — 0.0% | ||||||||
EW Scripps Co. FRS | 102,580 | 99,791 | ||||||
Non-Hazardous Waste Disposal — 0.0% | ||||||||
GFL Environmental, Inc. FRS | 95,068 | 94,528 | ||||||
GFL Environmental, Inc. FRS | 17,011 | 16,915 | ||||||
111,443 | ||||||||
Oil Companies-Exploration & Production — 0.0% | ||||||||
Osum Production Corp. FRS | 115,716 | 102,408 | ||||||
Oil Field Machinery & Equipment — 0.1% | ||||||||
Hi-Crush, Inc. FRS | 108,671 | 108,671 | ||||||
Hi-Crush, Inc. FRS | 115,252 | 115,252 | ||||||
223,923 | ||||||||
Oil-Field Services — 0.0% | ||||||||
Apergy Corp. FRS | 121,840 | 121,002 | ||||||
49 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
LOANS(7)(8)(9) (continued) | ||||||||
Pharmacy Services — 0.1% | ||||||||
Change Healthcare Holdings LLC FRS | $ | 2,656 | $ | 2,600 | ||||
Change Healthcare Holdings LLC FRS | 97,172 | 95,107 | ||||||
HC Group Holdings II, Inc. FRS | 139,718 | 138,204 | ||||||
235,911 | ||||||||
Pipelines — 0.2% | ||||||||
Blackstone CQP Holdco LP FRS | 192,756 | 188,419 | ||||||
Hercules Merger Sub LLC FRS | 188,766 | 185,049 | ||||||
Medallion Midland Acquisition LLC FRS | 145,904 | 136,906 | ||||||
510,374 | ||||||||
Protection/Safety — 0.0% | ||||||||
Prime Security Services Borrower, LLC FRS | 41,955 | 41,513 | ||||||
Prime Security Services Borrower, LLC FRS | 38,886 | 38,476 | ||||||
Prime Security Services Borrower, LLC FRS | 38,886 | 38,477 | ||||||
118,466 | ||||||||
Publishing-Periodicals — 0.1% | ||||||||
Nielsen Finance LLC FRS | 140,189 | 137,210 | ||||||
Quarrying — 0.0% | ||||||||
US Silica Co. FRS | 149,646 | 125,328 | ||||||
Real Estate Investment Trusts — 0.0% | ||||||||
Claros Mtg. Trust, Inc. FRS | 87,778 | 84,596 | ||||||
Real Estate Management/Services — 0.0% | ||||||||
Cushman & Wakefield FRS | 136,795 | 131,494 | ||||||
Research & Development — 0.0% | ||||||||
PAREXEL International Corp. FRS | 128,744 | 123,208 | ||||||
Resorts/Theme Parks — 0.1% | ||||||||
SeaWorld Parks & Entertainment, Inc. FRS | 208,903 | 195,847 | ||||||
Retail-Petroleum Products — 0.0% | ||||||||
EG America LLC FRS | 135,824 | 132,060 | ||||||
Retail-Restaurants — 0.1% | ||||||||
IRB Holding Corp. FRS | 353 | 336 | ||||||
IRB Holding Corp. FRS | 137,179 | 130,749 | ||||||
Whatabrands LLC FRS | 125,684 | 122,594 | ||||||
Wok Holdings, Inc. FRS | 109,609 | 81,750 | ||||||
335,429 | ||||||||
Retail-Sporting Goods — 0.1% | ||||||||
Bass Pro Group LLC FRS | 210,641 | 208,614 | ||||||
Rubber/Plastic Products — 0.0% | ||||||||
Gates Global LLC FRS | 103,664 | 101,872 | ||||||
Satellite Telecom — 0.1% | ||||||||
Connect Finco SARL FRS | 116,415 | 112,704 | ||||||
Intelsat Jackson Holdings SA FRS | 19,009 | 19,278 |
50 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
LOANS(7)(8)(9) (continued) | ||||||||
Satellite Telecom (continued) | ||||||||
Intelsat Jackson Holdings SA FRS | $ | 19,009 | $ | 19,279 | ||||
Intelsat Jackson Holdings SA FRS | 184,000 | 184,414 | ||||||
Iridium Satellite LLC FRS | 118,901 | 118,633 | ||||||
454,308 | ||||||||
Telecom Services — 0.1% | ||||||||
Cablevision Lightpath LLC FRS | 15,030 | 14,905 | ||||||
West Corp. FRS | 116,967 | 105,489 | ||||||
120,394 | ||||||||
Telecommunication Equipment — 0.0% | ||||||||
CommScope, Inc. FRS | 104,509 | 101,613 | ||||||
Telephone-Integrated — 0.1% | ||||||||
CenturyLink, Inc. FRS | 114,431 | 109,711 | ||||||
Level 3 Financing, Inc. FRS | 91,079 | 88,005 | ||||||
Zayo Group Holdings, Inc. FRS | 174,966 | 169,414 | ||||||
367,130 | ||||||||
Television — 0.1% | ||||||||
Ion Media Networks, Inc. FRS | 139,468 | 138,806 | ||||||
Theaters — 0.2% | ||||||||
AMC Entertainment Holdings, Inc. FRS | 135,313 | 86,187 | ||||||
Cineworld, Ltd. FRS | 190,210 | 127,169 | ||||||
Theaters (continued) | ||||||||
William Morris Endeavor Entertainment LLC FRS | 565,568 | 483,560 | ||||||
696,916 | ||||||||
Transactional Software — 0.0% | ||||||||
Solera LLC FRS | 123,034 | 120,134 | ||||||
Transport-Truck — 0.1% | ||||||||
Pods LLC FRS | 147,358 | 144,104 | ||||||
Total Loans | ||||||||
(cost $19,426,950) | 17,766,991 | |||||||
COMMON STOCKS — 0.2% | ||||||||
Building Products-Air & Heating — 0.0% | ||||||||
API Heat Transfer, Inc.†(10)(11) | 171,230 | 13,356 | ||||||
Television — 0.2% | ||||||||
ION Media Networks, Inc.†(10)(11) | 655 | 566,868 | ||||||
Total Common Stocks | ||||||||
(cost $56,513) | 580,224 | |||||||
PREFERRED SECURITIES — 0.1% | ||||||||
Building Products-Air & Heating — 0.0% | ||||||||
API Heat Transfer, Inc. | 36,495 | 2,569 | ||||||
Electric-Distribution — 0.1% | ||||||||
Entergy Louisiana LLC | 5,200 | 131,144 | ||||||
Sovereign Agency — 0.0% | ||||||||
Federal Home Loan Mtg. Corp. | 5,875 | 52,287 | ||||||
Total Preferred Securities | ||||||||
(cost $257,205) | 186,000 | |||||||
PREFERRED SECURITIES/CAPITAL SECURITIES — 1.8% |
| |||||||
Auto-Cars/Light Trucks — 0.1% | ||||||||
Volkswagen International Finance NV | EUR 100,000 | 118,037 | ||||||
Volkswagen International Finance NV | EUR 300,000 | 354,373 | ||||||
472,410 | ||||||||
Banks-Commercial — 0.0% | ||||||||
Barclays Bank PLC FRS | EUR 100,000 | 98,457 | ||||||
Banks-Money Center — 0.2% | ||||||||
BBVA Bancomer SA | 201,000 | 193,463 |
51 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal Amount(18) | Value (Note 2) | ||||||
PREFERRED SECURITIES/CAPITAL SECURITIES (continued) |
| |||||||
Banks-Money Center (continued) | ||||||||
National Westminster Bank PLC FRS | EUR | 300,000 | $ | 329,927 | ||||
523,390 | ||||||||
Banks-Super Regional — 0.0% | ||||||||
Wells Fargo & Co. | $ | 115,000 | 150,833 | |||||
Building & Construction-Misc. — 0.1% | ||||||||
China Minmetals Corp. | 335,000 | 340,685 | ||||||
Diversified Banking Institutions — 0.1% |
| |||||||
HSBC Holdings PLC | EUR | 200,000 | 246,832 | |||||
JPMorgan Chase & Co. | 185,000 | 192,144 | ||||||
438,976 | ||||||||
Electric-Distribution — 0.1% | ||||||||
National Rural Utilities Cooperative Finance Corp. | 276,000 | 284,289 | ||||||
Electric-Integrated — 0.1% |
| |||||||
CMS Energy Corp. | 87,000 | 92,238 | ||||||
Dominion Resources, Inc. | 84,000 | 89,040 | ||||||
Enel SpA | EUR | 200,000 | 248,260 | |||||
429,538 | ||||||||
Food-Dairy Products — 0.1% | ||||||||
Land O’Lakes Capital Trust I | 367,000 | 416,545 | ||||||
Gas-Distribution — 0.1% |
| |||||||
Centrica PLC | EUR | 300,000 | 351,725 | |||||
Insurance-Life/Health — 0.1% |
| |||||||
Credit Agricole Assurances SA | EUR | 100,000 | 139,670 | |||||
Prudential Financial, Inc. | 168,000 | 189,933 | ||||||
Voya Financial, Inc. | 112,000 | 112,105 | ||||||
441,708 | ||||||||
Insurance-Multi-line — 0.1% | ||||||||
Ageas Sub. Notes | EUR | 100,000 | 126,332 | |||||
Allianz SE | EUR | 200,000 | 259,002 | |||||
385,334 | ||||||||
Metal-Aluminum — 0.1% | ||||||||
Chalco Hong Kong Investment Co., Ltd. | 400,000 | 405,600 | ||||||
Metal-Diversified — 0.1% |
| |||||||
Chinalco Capital Holdings, Ltd. | 200,000 | 203,116 | ||||||
Oil Companies-Integrated — 0.1% |
| |||||||
BP Capital Markets PLC | EUR | 160,000 | 193,092 | |||||
BP Capital Markets PLC | 140,000 | 149,800 | ||||||
342,892 | ||||||||
Pipelines — 0.0% | ||||||||
EnLink Midstream Partners LP | 65,000 | 26,000 | ||||||
Enterprise Products Operating LLC | 56,000 | 53,326 | ||||||
79,326 | ||||||||
Real Estate Investment Trusts — 0.2% | ||||||||
Unibail-Rodamco-Westfield SE | EUR | 500,000 | 523,276 | |||||
Tools-Hand Held — 0.1% |
| |||||||
Stanley Black & Decker, Inc. | 184,000 | 191,335 | ||||||
Transport-Rail — 0.1% | ||||||||
CRCC Chengan, Ltd. | 400,000 | 408,186 | ||||||
Total Preferred Securities/Capital Securities |
| |||||||
(cost $6,317,496) | 6,487,621 | |||||||
ESCROWS AND LITIGATION TRUSTS — 0.0% |
| |||||||
Hellas Telecommunications | 1,330,000 | 0 | ||||||
Lehman Brothers Holdings Capital | 222,000 | 22 | ||||||
Lehman Brothers Holdings, Inc. | 280,000 | 28 | ||||||
Lehman Brothers Holdings, Inc. | 361,000 | 36 | ||||||
Venture Holdings Co. LLC | 100,000 | 0 | ||||||
Waterford Gaming LLC/Waterford Gaming Financial Corp. | 459,551 | 3,309 | ||||||
Total Escrows and Litigation Trusts | ||||||||
(cost $1,913,126) | 3,395 | |||||||
Total Long-Term Investment Securities | ||||||||
(cost $325,415,712) | 328,672,235 | |||||||
52 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Shares | Value (Note 2) | ||||||
SHORT-TERM INVESTMENT SECURITIES — 7.1% |
| |||||||
Registered Investment Companies — 7.1% |
| |||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | ||||||||
(cost $24,869,046) | 24,869,046 | $ | 24,869,046 | |||||
TOTAL INVESTMENTS | ||||||||
(cost $350,284,758)(19) | 100.8 | % | 353,541,281 | |||||
Liabilities in excess of other assets | (0.8 | ) | (2,792,128 | ) | ||||
NET ASSETS | 100.0 | % | $ | 350,749,153 | ||||
* | 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 September 30, 2020, the aggregate value of these securities was $106,708,691 representing 30.4% of net assets. |
† | Non-income producing security |
(1) | Commercial Mortgage Backed Security |
(2) | Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. |
(3) | Collateralized Mortgage Obligation |
(4) | Security in default of interest. |
(5) | Interest Only |
(6) | Inverse Floating Rate Security that pays interest that varies inversely to changes in the market interest rates. The interest rate shown is the current interest rate at September 30, 2020. |
(7) | Senior loans in the Fund are generally subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a borrower to prepay, prepayments may occur. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. |
(8) | The Fund invests in senior loans which generally pay interest at rates which are periodically re-determined by reference to a base lending rate plus a premium. These base lending rates are generally either the lending rate offered by one or more major European banks, such as the London Inter-Bank Offered Rate (“LIBOR”) or the prime rate offered by one or more major United States banks, or the certificate of deposit rate. Senior loans are generally considered to be restrictive in that the Fund is ordinarily contractually obligated to receive approval from the Agent Bank and/or borrower prior to the disposition of a senior loan. |
(9) | All loans in the Fund were purchased through assignment agreements unless otherwise indicated. |
| ||||
(10) | Denotes a restricted security that: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933, as amended (the “1933 Act”); (b) is subject to a contractual restriction on public sales; or (c) is otherwise subject to a restriction on sales by operation of applicable law. Restricted securities are valued pursuant to Note 2. Certain restricted securities held by the Fund may not be sold except in exempt transactions or in a public offering registered under the 1933 Act. The Fund has no right to demand registration of these securities. The risk of investing in certain restricted securities is greater than the risk of investing in the securities of widely held, publicly traded companies. To the extent applicable, 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, certain restricted securities may exhibit greater price volatility than securities for which secondary markets exist. As of September 30, 2020, the Fund held the following restricted securities: |
Description | Acquisition Date | Principal Amount/ Shares | Acquisition Cost | Value | Value per Principal amount/ Share | % of Net Assets | ||||||||||||||||||
Loans | ||||||||||||||||||||||||
API Heat Transfer ThermaSys Corp. 12.00% due 12/31/2023 | 12/31/2018 | $ | 158,974 | $ | 158,974 | |||||||||||||||||||
03/31/2020 | 5,202 | 5,202 | ||||||||||||||||||||||
06/30/2020 | 5,167 | 5,167 | ||||||||||||||||||||||
09/30/2020 | 5,193 | 5,193 | ||||||||||||||||||||||
174,536 | 174,536 | $ | 134,567 | $ | 77.10 | 0.04 | % | |||||||||||||||||
RentPath LLC 1.61% due 12/17/2022 | 05/14/2015 | 493,906 | 472,915 | |||||||||||||||||||||
06/09/2015 | 200,000 | 192,000 | ||||||||||||||||||||||
01/18/2017 | 4,000 | 3,600 | ||||||||||||||||||||||
06/21/2017 | 365,000 | 352,225 | ||||||||||||||||||||||
1,062,906 | 1,020,740 | 106,291 | 10.00 | 0.03 | ||||||||||||||||||||
Common Stocks | ||||||||||||||||||||||||
API Heat Transfer, Inc. | 12/31/2018 | 171,230 | 56,506 | 13,356 | 0.08 | 0.00 | ||||||||||||||||||
ION Media Networks, Inc. | 12/16/2016 | 655 | 7 | 566,868 | 865.45 | 0.16 | ||||||||||||||||||
Preferred Securities |
| |||||||||||||||||||||||
API Heat Transfer, Inc. Class A | 12/31/2018 | 36,495 | 36,495 | 2,569 | 0.07 | 0.00 | ||||||||||||||||||
$ | 823,651 | 0.23 | % | |||||||||||||||||||||
53 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
(11) | Securities classified as Level 3 (See Note 2). |
(12) | PIK (“Payment in Kind”) security – Income may be paid in additional securities or cash at the discretion of the issuer. The security is current paying interest in cash at 14.75%. The security is also currently paying interest in the form of additional loans at 0.75%. |
(13) | Company has filed for bankruptcy protection. |
(14) | Perpetual maturity — maturity date reflects the next call date. |
(15) | Security in default of interest and principal at maturity. |
(16) | PIK (“Payment in Kind”) security — Income may be paid in additional securities or cash at the discretion of the issuer. The security is currently paying interest in the form of additional securities at the coupon rate listed. |
(17) | All or a portion of this holding is subject to unfunded loan commitments (See Note 10). |
(18) | Denominated in United States dollars unless otherwise indicated. |
(19) | See Note 5 for cost of investments on a tax basis. |
(20) | The rate shown is the 7-day yield as of September 30, 2020. |
BTL — | Bank Term Loan |
DIP — | Debtor in Possession |
REMIC — | Real Estate Mortgage Investment Conduit |
TBA — | Securities purchased on a forward commitment basis with an approximate principal amount and no definite maturity date. The actual principal amount andmaturity date will be determined upon settlement date. |
TBD — | Senior loan purchased on a when issued or delayed-delivery basis. Certain details associated with this purchase are not known prior to the settlement date of the transaction. In addition, senior loans typically trade without accrued interest and therefore a coupon rate is not available prior to the settlement. |
ULC — | Unlimited Liability Corp. |
FRS — | Floating Rate Security |
VRS — | Variable Rate Security |
The rates shown on FRS and VRS are the current interest rates at September 30, 2020 and unless noted otherwise, the dates are the original maturity dates.
Currency Legend
EUR — Euro Currency
GBP — British Pound
Index Legend
3 ME — 3 Month Euribor
1 ML — 1 Month USD LIBOR
3 ML — 3 Month USD LIBOR
6 ML — 6 Month USD LIBOR
12 ML — 12 Month USD LIBOR
1 Yr USTYCR — 1 Year US Treasury Yield Curve Rate
USFRBPLR — US Federal Reserve Bank Prime Loan Rate
Forward Foreign Currency Contracts
Counterparty | Contract to Deliver | In Exchange For | Delivery Date | Unrealized Appreciation | Unrealized (Depreciation) | |||||||||||||||||||||
JPMorgan Chase Bank N.A. | EUR | 11,543,200 | USD | 13,280,040 | 11/19/2020 | $ | — | $ | (267,214 | ) | ||||||||||||||||
EUR | 4,000,000 | USD | 4,727,888 | 01/14/2021 | 26,495 | — | ||||||||||||||||||||
GBP | 1,820,000 | USD | 2,339,740 | 11/19/2020 | — | (9,253 | ) | |||||||||||||||||||
USD | 356,349 | EUR | 300,000 | 11/19/2020 | — | (4,265 | ) | |||||||||||||||||||
Unrealized Appreciation (Depreciation) |
| $ | 26,495 | $ | (280,732 | ) | ||||||||||||||||||||
EUR — Euro Currency
GBP — British Pound
USD — United States Dollar
54 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
The following is a summary of the inputs used to value the Fund’s net assets as of September 30, 2020 (see Note 2):
Level 1 — Unadjusted Quoted Prices | Level 2 — Other Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
ASSETS: | ||||||||||||||||
Investments at Value:* | ||||||||||||||||
Asset Backed Securities | $ | — | $ | 5,951,086 | $ | — | $ | 5,951,086 | ||||||||
U.S. Corporate Bonds & Notes | — | 132,685,184 | — | 132,685,184 | ||||||||||||
Foreign Corporate Bonds & Notes | — | 52,598,592 | — | 52,598,592 | ||||||||||||
Foreign Government Obligations | — | 54,281,580 | — | 54,281,580 | ||||||||||||
U.S. Government Agencies | — | 55,956,072 | — | 55,956,072 | ||||||||||||
U.S. Government Treasuries | — | 2,175,490 | — | 2,175,490 | ||||||||||||
Loans: | ||||||||||||||||
Buiding Products-Air & Heating | — | — | 134,567 | 134,567 | ||||||||||||
E-Commerce/Services | — | — | 106,291 | 106,291 | ||||||||||||
Oil Field Machinery & Equipment | — | — | 223,923 | 223,923 | ||||||||||||
Other Industries | — | 17,302,210 | — | 17,302,210 | ||||||||||||
Common Stocks: | ||||||||||||||||
Buiding Products-Air & Heating | — | — | 13,356 | 13,356 | ||||||||||||
Television | — | — | 566,868 | 566,868 | ||||||||||||
Preferred Securities: | ||||||||||||||||
Building Products-Air & Heating | — | — | 2,569 | 2,569 | ||||||||||||
Other Industries | 183,431 | — | — | 183,431 | ||||||||||||
Preferred Securities/Capital Securities | — | 6,487,621 | — | 6,487,621 | ||||||||||||
Escrows and Litigation Trusts | — | — | 3,395 | 3,395 | ||||||||||||
Short-Term Investment Securities | 24,869,046 | — | — | 24,869,046 | ||||||||||||
Total Investments at Value | $ | 25,052,477 | $ | 327,437,835 | $ | 1,050,969 | $ | 353,541,281 | ||||||||
Other Financial Instruments:+ | ||||||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | 26,495 | $ | — | $ | 26,495 | ||||||||
LIABILITIES: | ||||||||||||||||
Other Financial Instruments:+ | ||||||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | 280,732 | $ | — | $ | 280,732 | ||||||||
* | For a detailed presentation of investments, please refer to the Portfolio of Investments. |
+ | Amounts represent unrealized appreciation/depreciation as of the end of the reporting period. |
At the beginning and end of the reporting period, Level 3 investments were not considered a material portion of the Fund. There were no Level 3 transfers during the reporting period.
See Notes to Financial Statements
55 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO PROFILE — September 30, 2020 — (unaudited)
Industry Allocation*
Medical-Hospitals | 4.3 | % | ||
Cable/Satellite TV | 3.0 | |||
Auto/Truck Parts & Equipment-Original | 2.8 | |||
Oil Companies-Exploration & Production | 2.6 | |||
Telephone-Integrated | 2.5 | |||
Containers-Paper/Plastic | 2.4 | |||
Airlines | 2.3 | |||
Pipelines | 2.3 | |||
Broadcast Services/Program | 2.2 | |||
Real Estate Investment Trusts | 2.1 | |||
Registered Investment Companies | 2.1 | |||
Aerospace/Defense-Equipment | 2.0 | |||
Chemicals-Specialty | 2.0 | |||
Machinery-Pumps | 1.9 | |||
Enterprise Software/Service | 1.9 | |||
Containers-Metal/Glass | 1.8 | |||
Building-Residential/Commercial | 1.7 | |||
Food-Misc./Diversified | 1.7 | |||
Casino Hotels | 1.6 | |||
Satellite Telecom | 1.3 | |||
Medical-Drugs | 1.2 | |||
Medical Labs & Testing Services | 1.2 | |||
Chemicals-Diversified | 1.1 | |||
Computer Services | 1.1 | |||
E-Commerce/Services | 1.0 | |||
Medical Information Systems | 1.0 | |||
Auto-Cars/Light Trucks | 1.0 | |||
Rubber/Plastic Products | 1.0 | |||
Machinery-Electrical | 1.0 | |||
Miscellaneous Manufacturing | 0.9 | |||
Medical Products | 0.9 | |||
Diagnostic Equipment | 0.9 | |||
Finance-Consumer Loans | 0.9 | |||
Casino Services | 0.9 | |||
Building & Construction Products-Misc. | 0.9 | |||
Cellular Telecom | 0.8 | |||
Commercial Services | 0.8 | |||
Theaters | 0.8 | |||
Computers-Integrated Systems | 0.8 | |||
Building Products-Cement | 0.8 | |||
Investment Management/Advisor Services | 0.8 | |||
Food-Dairy Products | 0.8 | |||
Gambling (Non-Hotel) | 0.7 | |||
Finance-Credit Card | 0.7 | |||
Electric-Integrated | 0.7 | |||
Aerospace/Defense | 0.7 | |||
Transport-Equipment & Leasing | 0.7 | |||
Food-Retail | 0.7 | |||
Food-Catering | 0.7 | |||
Non-Hazardous Waste Disposal | 0.6 | |||
Food-Confectionery | 0.6 | |||
E-Commerce/Products | 0.6 | |||
Telecom Services | 0.6 | |||
Diversified Minerals | 0.6 | |||
Insurance-Property/Casualty | 0.6 | |||
Building & Construction-Misc. | 0.6 | |||
Data Processing/Management | 0.6 | |||
Hotels/Motels | 0.6 | |||
Medical-HMO | 0.6 | |||
Insurance-Life/Health | 0.6 | |||
Advertising Sales | 0.5 |
Steel-Producers | 0.5 | % | ||
Soap & Cleaning Preparation | 0.5 | |||
Oil-Field Services | 0.5 | |||
Distribution/Wholesale | 0.5 | |||
Food-Baking | 0.5 | |||
Security Services | 0.5 | |||
Cosmetics & Toiletries | 0.5 | |||
Auto-Heavy Duty Trucks | 0.5 | |||
Retail-Automobile | 0.5 | |||
Internet Connectivity Services | 0.5 | |||
Applications Software | 0.4 | |||
Consulting Services | 0.4 | |||
Metal-Aluminum | 0.4 | |||
Paper & Related Products | 0.4 | |||
Wireless Equipment | 0.4 | |||
Pharmacy Services | 0.4 | |||
Professional Sports | 0.4 | |||
Insurance-Multi-line | 0.4 | |||
Food-Wholesale/Distribution | 0.4 | |||
Medical-Outpatient/Home Medical | 0.4 | |||
Building Products-Doors & Windows | 0.4 | |||
Precious Metals | 0.4 | |||
Retail-Arts & Crafts | 0.4 | |||
Physical Therapy/Rehabilitation Centers | 0.4 | |||
Machinery-General Industrial | 0.4 | |||
Publishing-Books | 0.4 | |||
Vitamins & Nutrition Products | 0.4 | |||
Investment Companies | 0.4 | |||
Pollution Control | 0.4 | |||
Engineering/R&D Services | 0.4 | |||
Banks-Commercial | 0.4 | |||
Finance-Investment Banker/Broker | 0.4 | |||
Oil & Gas Drilling | 0.4 | |||
Oil Refining & Marketing | 0.3 | |||
Transactional Software | 0.3 | |||
Electric Products-Misc. | 0.3 | |||
Human Resources | 0.3 | |||
Electronic Components-Semiconductors | 0.3 | |||
Dialysis Centers | 0.3 | |||
Metal-Iron | 0.3 | |||
Internet Content-Information/News | 0.3 | |||
Athletic Equipment | 0.3 | |||
Disposable Medical Products | 0.3 | |||
Housewares | 0.3 | |||
Electronics-Military | 0.3 | |||
Consumer Products-Misc. | 0.3 | |||
Retail-Sporting Goods | 0.3 | |||
Apparel Manufacturers | 0.3 | |||
Office Automation & Equipment | 0.3 | |||
Coal | 0.3 | |||
Diagnostic Kits | 0.3 | |||
Petrochemicals | 0.3 | |||
Telecommunication Equipment | 0.3 | |||
Electric-Generation | 0.3 | |||
Retail-Pawn Shops | 0.3 | |||
Retail-Misc./Diversified | 0.3 | |||
Energy-Alternate Sources | 0.3 | |||
Medical-Generic Drugs | 0.3 | |||
Finance-Leasing Companies | 0.2 | |||
Television | 0.2 | |||
Food-Flour & Grain | 0.2 |
56 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO PROFILE — September 30, 2020 — (unaudited) (continued)
Industry Allocation* (continued)
Research & Development | 0.2 | % | ||
Publishing-Periodicals | 0.2 | |||
Retail-Mail Order | 0.2 | |||
Retail-Vitamins & Nutrition Supplements | 0.2 | |||
Financial Guarantee Insurance | 0.2 | |||
Cruise Lines | 0.1 | |||
Retail-Restaurants | 0.1 | |||
Advertising Services | 0.1 | |||
Agricultural Operations | 0.1 | |||
Retail-Bedding | 0.1 | |||
Veterinary Diagnostics | 0.1 | |||
Retail-Major Department Stores | 0.1 | |||
Radio | 0.1 | |||
Insurance Brokers | 0.1 | |||
Medical-Biomedical/Gene | 0.1 | |||
101.4 | % | |||
Credit Quality†#
Baa | 3.5 | % | ||
Ba | 21.4 | |||
B | 48.3 | |||
Caa | 17.3 | |||
Ca | 0.5 | |||
Not Rated@ | 9.0 | |||
100.0 | % | |||
* | Calculated as a percentage of net assets |
† | Source: Moody’s |
# | Calculated as a percentage of total debt issues, excluding short-term securities. |
@ | Represents debt issues that either have no rating, or the rating is unavailable from the data source. |
57 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited)
Security Description | Principal | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES — 48.3% |
| |||||||
Advertising Sales — 0.3% | ||||||||
Outfront Media Capital LLC/Outfront Media Capital Corp. | $ | 810,000 | $ | 834,300 | ||||
Aerospace/Defense — 0.7% |
| |||||||
Boeing Co. | 980,000 | 896,859 | ||||||
Boeing Co. | 709,000 | 877,486 | ||||||
1,774,345 | ||||||||
Aerospace/Defense-Equipment — 2.0% |
| |||||||
Howmet Aerospace, Inc. | 485,000 | 535,925 | ||||||
Signature Aviation US Holdings, Inc. | 1,700,000 | 1,581,000 | ||||||
Spirit AeroSystems, Inc. | 435,000 | 386,063 | ||||||
Spirit AeroSystems, Inc. | 745,000 | 748,725 | ||||||
TransDigm, Inc. | 1,410,000 | 1,355,080 | ||||||
TransDigm, Inc. | 430,000 | 449,047 | ||||||
5,055,840 | ||||||||
Airlines — 0.6% |
| |||||||
American Airlines, Inc. | 1,475,000 | 1,423,375 | ||||||
Apparel Manufacturers — 0.3% |
| |||||||
Hanesbrands, Inc. | 725,000 | 764,875 | ||||||
Applications Software — 0.4% |
| |||||||
SS&C Technologies, Inc. | 1,030,000 | 1,094,602 | ||||||
Athletic Equipment — 0.3% |
| |||||||
Vista Outdoor, Inc. | 810,000 | 812,025 | ||||||
Auto-Cars/Light Trucks — 0.6% |
| |||||||
Ford Motor Co. | 274,000 | 314,144 | ||||||
Auto-Cars/Light Trucks (continued) |
| |||||||
Ford Motor Co. | $ | 181,000 | $ | 233,716 | ||||
Ford Motor Credit Co. LLC | 660,000 | 641,850 | ||||||
Ford Motor Credit Co. LLC | 235,000 | 242,344 | ||||||
1,432,054 | ||||||||
Auto/Truck Parts & Equipment-Original — 0.7% |
| |||||||
American Axle & Manufacturing, Inc. | 900,000 | 870,750 | ||||||
Dana, Inc. | 943,000 | 966,575 | ||||||
1,837,325 | ||||||||
Banks-Commercial — 0.4% |
| |||||||
Synovus Financial Corp. | 865,000 | 890,950 | ||||||
Broadcast Services/Program — 0.9% |
| |||||||
Clear Channel Worldwide Holdings, Inc. | 440,000 | 422,510 | ||||||
Clear Channel Worldwide Holdings, Inc. | 387,000 | 375,158 | ||||||
Diamond Sports Group LLC/Diamond Sports Finance Co. | 960,000 | 499,800 | ||||||
iHeartCommunications, Inc. | 809,966 | 797,816 | ||||||
Univision Communications, Inc. | 165,000 | 176,550 | ||||||
2,271,834 | ||||||||
Building & Construction Products-Misc. — 0.5% |
| |||||||
Standard Industries, Inc. | 1,130,000 | 1,158,549 | ||||||
Building & Construction-Misc. — 0.6% |
| |||||||
Weekley Homes LLC/Weekley Finance Corp. | 1,460,000 | 1,474,600 | ||||||
Building Products-Doors & Windows — 0.4% |
| |||||||
Cornerstone Building Brands, Inc. | 990,000 | 1,002,761 | ||||||
58 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Building-Residential/Commercial — 1.7% |
| |||||||
M/I Homes, Inc. | $ | 1,700,000 | $ | 1,751,000 | ||||
PulteGroup, Inc. | 645,000 | 886,875 | ||||||
TRI Pointe Group, Inc./TRI Pointe Homes, Inc. | 1,475,000 | 1,593,000 | ||||||
4,230,875 | ||||||||
Cable/Satellite TV — 2.4% |
| |||||||
CCO Holdings LLC/CCO Holdings Capital Corp. | 950,000 | 1,005,813 | ||||||
CCO Holdings LLC/CCO Holdings Capital Corp. | 825,000 | 868,082 | ||||||
CSC Holdings LLC | 1,255,000 | 1,333,437 | ||||||
DISH DBS Corp. | 975,000 | 994,500 | ||||||
DISH DBS Corp. | 340,000 | 373,782 | ||||||
Radiate Holdco LLC/Radiate Finance, Inc. | 295,000 | 294,938 | ||||||
Radiate Holdco LLC/Radiate Finance, Inc. | 1,005,000 | 1,029,886 | ||||||
5,900,438 | ||||||||
Casino Hotels — 0.4% |
| |||||||
Station Casinos LLC | 980,000 | 901,600 | ||||||
Casino Services — 0.3% |
| |||||||
Caesars Entertainment, Inc. | 390,000 | 407,646 | ||||||
Caesars Entertainment, Inc. | 305,000 | 323,300 | ||||||
730,946 | ||||||||
Cellular Telecom — 0.6% |
| |||||||
Sprint Corp. | 1,320,000 | 1,516,350 | ||||||
Chemicals-Diversified — 0.4% |
| |||||||
Olin Corp. | 1,010,000 | 992,315 | ||||||
Chemicals-Specialty — 0.6% |
| |||||||
Kraton Polymers LLC/Kraton Polymers Capital Corp. | $ | 801,000 | $ | 817,020 | ||||
Tronox, Inc. | 665,000 | 693,262 | ||||||
1,510,282 | ||||||||
Coal — 0.3% |
| |||||||
Alliance Resource Operating Partners LP/Alliance Resource Finance Corp. | 985,000 | 699,350 | ||||||
Computer Services — 0.7% |
| |||||||
Banff Merger Sub, Inc. | 530,000 | 560,263 | ||||||
Science Applications International Corp. | 1,105,000 | 1,121,895 | ||||||
1,682,158 | ||||||||
Computers-Integrated Systems — 0.1% |
| |||||||
NCR Corp. | 75,000 | 75,060 | ||||||
NCR Corp. | 75,000 | 75,000 | ||||||
150,060 | ||||||||
Consumer Products-Misc. — 0.3% |
| |||||||
Prestige Brands, Inc. | 775,000 | 794,375 | ||||||
Containers-Metal/Glass — 0.5% |
| |||||||
BWAY Holding Co. | 1,256,000 | 1,182,210 | ||||||
Containers-Paper/Plastic — 0.5% |
| |||||||
Trident Merger Sub, Inc. | 790,000 | 778,150 | ||||||
Trident TPI Holdings, Inc. | 490,000 | 520,159 | ||||||
1,298,309 | ||||||||
Data Processing/Management — 0.2% |
| |||||||
Star Merger Sub, Inc. | 471,000 | 532,230 | ||||||
Diagnostic Equipment — 0.9% |
| |||||||
Avantor Funding, Inc. | 190,000 | 197,125 |
59 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Diagnostic Equipment (continued) |
| |||||||
Avantor, Inc. | $ | 1,155,000 | $ | 1,206,975 | ||||
Ortho-Clinical Diagnostics, Inc./Ortho-Clinical Diagnostics SA | 390,000 | 405,600 | ||||||
Ortho-Clinical Diagnostics, Inc./Ortho-Clinical Diagnostics SA | 420,000 | 426,300 | ||||||
2,236,000 | ||||||||
Dialysis Centers — 0.3% |
| |||||||
DaVita, Inc. | 875,000 | 843,106 | ||||||
Distribution/Wholesale — 0.5% |
| |||||||
KAR Auction Services, Inc. | 1,210,000 | 1,209,976 | ||||||
E-Commerce/Products — 0.3% |
| |||||||
ANGI Group LLC | 820,000 | 811,800 | ||||||
E-Commerce/Services — 0.5% |
| |||||||
TripAdvisor, Inc | 550,000 | 573,375 | ||||||
Uber Technologies, Inc. | 730,000 | 777,881 | ||||||
1,351,256 | ||||||||
Electric Products-Misc. — 0.3% |
| |||||||
WESCO Distribution, Inc. | 780,000 | 854,627 | ||||||
Electric-Integrated — 0.6% |
| |||||||
PG&E Corp. | 830,000 | 803,025 | ||||||
Talen Energy Supply LLC | 750,000 | 726,562 | ||||||
1,529,587 | ||||||||
Electronic Components-Semiconductors — 0.3% |
| |||||||
Microchip Technology, Inc. | 820,000 | 850,798 | ||||||
Energy-Alternate Sources — 0.3% |
| |||||||
TerraForm Power Operating LLC | 590,000 | 645,858 | ||||||
Enterprise Software/Service — 0.4% |
| |||||||
Open Text Holdings, Inc. | $ | 840,000 | $ | 863,890 | ||||
Finance-Consumer Loans — 0.9% |
| |||||||
Navient Corp. | 700,000 | 696,066 | ||||||
Springleaf Finance Corp. | 135,000 | 140,400 | ||||||
Springleaf Finance Corp. | 820,000 | 909,933 | ||||||
Springleaf Finance Corp. | 390,000 | 435,708 | ||||||
2,182,107 | ||||||||
Financial Guarantee Insurance — 0.2% |
| |||||||
NMI Holdings, Inc. | 340,000 | 363,375 | ||||||
Food-Catering — 0.3% |
| |||||||
Aramark Services, Inc. | 670,000 | 697,922 | ||||||
Food-Dairy Products — 0.5% |
| |||||||
Chobani LLC/Chobani Finance Corp., Inc. | 1,095,000 | 1,131,978 | ||||||
Food-Misc./Diversified — 0.5% |
| |||||||
Dole Food Co., Inc. | 1,250,000 | 1,243,750 | ||||||
Food-Retail — 0.7% |
| |||||||
Albertsons Cos, Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC | 1,700,000 | 1,739,423 | ||||||
Food-Wholesale/Distribution — 0.4% |
| |||||||
Matterhorn Merger Sub LLC/Matterhorn Finance Sub, Inc. | 1,045,000 | 1,020,913 | ||||||
Gambling (Non-Hotel) — 0.3% |
| |||||||
Downstream Development Authority of the Quapaw Tribe of Oklahoma | 485,000 | 446,200 | ||||||
Scientific Games International, Inc. | 380,000 | 396,754 | ||||||
842,954 | ||||||||
60 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Hotels/Motels — 0.5% |
| |||||||
Marriott Ownership Resorts, Inc. | $ | 1,210,000 | $ | 1,137,400 | ||||
Insurance-Multi-line — 0.4% |
| |||||||
Acrisure LLC/Acrisure Finance, Inc. | 710,000 | 697,486 | ||||||
Acrisure LLC/Acrisure Finance, Inc. | 320,000 | 335,200 | ||||||
1,032,686 | ||||||||
Internet Connectivity Services — 0.4% |
| |||||||
Northwest Fiber LLC/Northwest Fiber Finance Sub, Inc. | 795,000 | 866,550 | ||||||
Investment Companies — 0.4% |
| |||||||
Icahn Enterprises LP/Icahn Enterprises Finance Corp. | 880,000 | 917,400 | ||||||
Investment Management/Advisor Services — 0.8% |
| |||||||
Citadel LP | 1,735,000 | 1,857,240 | ||||||
Medical Information Systems — 0.3% |
| |||||||
Change Healthcare Holdings LLC/Change Healthcare Finance, Inc. | 690,000 | 699,867 | ||||||
Medical Labs & Testing Services — 0.5% |
| |||||||
West Street Merger Sub, Inc. | 1,230,000 | 1,254,342 | ||||||
Medical-Generic Drugs — 0.3% |
| |||||||
Par Pharmaceutical, Inc. | 603,000 | 631,751 | ||||||
Medical-Hospitals — 3.1% |
| |||||||
Acadia Healthcare Co, Inc. | 30,000 | 30,413 | ||||||
CHS/Community Health Systems, Inc. | 805,000 | 778,837 | ||||||
HCA, Inc. | 1,315,000 | 1,439,925 | ||||||
HCA, Inc. | 465,000 | 531,937 | ||||||
LifePoint Health, Inc. | 835,000 | 836,044 | ||||||
Medical-Hospitals (continued) |
| |||||||
LifePoint Health, Inc. | $ | 10,000 | $ | 10,525 | ||||
Select Medical Corp. | 1,275,000 | 1,326,000 | ||||||
Surgery Center Holdings, Inc. | 420,000 | 417,900 | ||||||
Surgery Center Holdings, Inc. | 425,000 | 452,625 | ||||||
Tenet Healthcare Corp. | 865,000 | 880,708 | ||||||
Tenet Healthcare Corp. | 292,000 | 299,942 | ||||||
Tenet Healthcare Corp. | 345,000 | 356,112 | ||||||
Tenet Healthcare Corp. | 365,000 | 405,844 | ||||||
7,766,812 | ||||||||
Metal-Aluminum — 0.4% |
| |||||||
Kaiser Aluminum Corp. | 240,000 | 247,390 | ||||||
Novelis Corp. | 860,000 | 844,709 | ||||||
1,092,099 | ||||||||
Metal-Iron — 0.3% |
| |||||||
Cleveland-Cliffs, Inc. | 310,000 | 315,425 | ||||||
Cleveland-Cliffs, Inc. | 585,000 | 500,175 | ||||||
815,600 | ||||||||
Miscellaneous Manufacturing — 0.5% |
| |||||||
Hillenbrand, Inc. | 1,215,000 | 1,318,275 | ||||||
Office Automation & Equipment — 0.3% |
| |||||||
Xerox Holdings Corp. | 750,000 | 738,919 | ||||||
Oil & Gas Drilling — 0.3% |
| |||||||
Patterson-UTI Energy, Inc. | 880,000 | 682,999 | ||||||
61 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Oil Companies-Exploration & Production — 1.5% |
| |||||||
Apache Corp. | $ | 770,000 | $ | 733,906 | ||||
Callon Petroleum Co. | 451,345 | 128,633 | ||||||
Continental Resources, Inc. | 835,000 | 723,319 | ||||||
CrownRock LP/CrownRock Finance, Inc. | 1,015,000 | 956,638 | ||||||
Occidental Petroleum Corp. | 270,000 | 252,280 | ||||||
Occidental Petroleum Corp. | 525,000 | 402,255 | ||||||
Occidental Petroleum Corp. | 255,000 | 233,697 | ||||||
Occidental Petroleum Corp. | 385,000 | 355,163 | ||||||
3,785,891 | ||||||||
Oil-Field Services — 0.5% |
| |||||||
CSI Compressco LP/CSI Compressco Finance, Inc. | 1,145,000 | 807,225 | ||||||
USA Compression Partners LP/USA Compression Finance Corp. | 440,000 | 436,150 | ||||||
1,243,375 | ||||||||
Paper & Related Products — 0.4% |
| |||||||
Schweitzer-Mauduit International, Inc. | 1,020,000 | 1,076,100 | ||||||
Petrochemicals — 0.3% |
| |||||||
TPC Group, Inc. | 827,000 | 694,680 | ||||||
Physical Therapy/Rehabilitation Centers — 0.4% |
| |||||||
Encompass Health Corp. | 820,000 | 824,100 | ||||||
Encompass Health Corp. | 135,000 | 136,963 | ||||||
961,063 | ||||||||
Pipelines — 1.9% |
| |||||||
American Midstream Partners LP/American Midstream Finance Corp. | $ | 525,000 | $ | 521,062 | ||||
Antero Midstream Partners LP/Antero Midstream Finance Corp. | 750,000 | 616,875 | ||||||
Cheniere Energy Partners LP | 1,035,000 | 1,061,672 | ||||||
Cheniere Energy, Inc. | 475,000 | 487,469 | ||||||
EQM Midstream Partners LP | 220,000 | 226,875 | ||||||
EQM Midstream Partners LP | 250,000 | 265,005 | ||||||
NuStar Logistics LP | 280,000 | 290,500 | ||||||
Targa Resources Partners LP/Targa Resources Partners Finance Corp. | 310,000 | 300,212 | ||||||
Targa Resources Partners LP/Targa Resources Partners Finance Corp. | 830,000 | 852,161 | ||||||
4,621,831 | ||||||||
Precious Metals — 0.4% |
| |||||||
Hecla Mining Co. | 910,000 | 986,440 | ||||||
Publishing-Books — 0.1% |
| |||||||
McGraw-Hill Global Education Holdings LLC/McGraw-Hill Global Education Finance | 500,000 | 268,750 | ||||||
Real Estate Investment Trusts — 2.1% |
| |||||||
ESH Hospitality, Inc. | 2,140,000 | 2,099,918 | ||||||
iStar, Inc. | 855,000 | 797,818 | ||||||
MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc. | 580,000 | 590,875 | ||||||
MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc. | 370,000 | 398,675 |
62 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Real Estate Investment Trusts (continued) |
| |||||||
Park Intermediate Holdings LLC/PK Domestic Property LLC/PK Finance Co-Issuer | $ | 30,000 | $ | 29,925 | ||||
Service Properties Trust | 505,000 | 536,663 | ||||||
Uniti Group, Inc./CSL Capital LLC | 880,000 | 851,070 | ||||||
5,304,944 | ||||||||
Research & Development — 0.2% |
| |||||||
Jaguar Holding Co. II/PPD Development LP | 520,000 | 542,750 | ||||||
Retail-Automobile — 0.5% |
| |||||||
Carvana Co. | 580,000 | 572,025 | ||||||
Carvana Co. | 580,000 | 572,750 | ||||||
1,144,775 | ||||||||
Retail-Mail Order — 0.2% |
| |||||||
QVC, Inc. | 440,000 | 451,968 | ||||||
Retail-Pawn Shops — 0.3% |
| |||||||
FirstCash, Inc. | 645,000 | 657,094 | ||||||
Retail-Propane Distribution — 0.0% |
| |||||||
Ferrellgas Partners LP/Ferrellgas Partners Finance Corp. | 570,000 | 114,000 | ||||||
Retail-Restaurants — 0.1% |
| |||||||
Golden Nugget, Inc. | 455,000 | 358,881 | ||||||
Security Services — 0.5% |
| |||||||
Allied Universal Holdco LLC/Allied Universal Finance Corp. | 1,120,000 | 1,192,800 | ||||||
Soap & Cleaning Preparation — 0.3% |
| |||||||
Kronos Acquisition Holdings, Inc. | 720,000 | 729,900 | ||||||
Steel-Producers — 0.5% |
| |||||||
United States Steel Corp. | 715,000 | 484,413 | ||||||
Steel-Producers (continued) |
| |||||||
United States Steel Corp. | $ | 790,000 | $ | 840,947 | ||||
1,325,360 | ||||||||
Telephone-Integrated — 1.7% |
| |||||||
Cincinnati Bell, Inc. | 1,075,000 | 1,106,594 | ||||||
Consolidated Communications, Inc. | 965,000 | 964,469 | ||||||
Consolidated Communications, Inc. | 915,000 | 933,300 | ||||||
Frontier Communications Corp. | 295,000 | 297,360 | ||||||
Level 3 Financing, Inc. | 815,000 | 804,813 | ||||||
Level 3 Financing, Inc. | 215,000 | 218,294 | ||||||
4,324,830 | ||||||||
Theaters — 0.6% |
| |||||||
Live Nation Entertainment, Inc. | 310,000 | 290,334 | ||||||
Live Nation Entertainment, Inc. | 1,130,000 | 1,090,450 | ||||||
1,380,784 | ||||||||
Transactional Software — 0.3% |
| |||||||
Black Knight InfoServ LLC | 850,000 | 859,031 | ||||||
Transport-Equipment & Leasing — 0.7% |
| |||||||
Fortress Transportation & Infrastructure Investors LLC | 980,000 | 962,850 | ||||||
Fortress Transportation & Infrastructure Investors LLC | 670,000 | 659,950 | ||||||
Fortress Transportation & Infrastructure Investors LLC | 110,000 | 117,769 | ||||||
1,740,569 | ||||||||
Wireless Equipment — 0.4% |
| |||||||
ViaSat, Inc. | 1,075,000 | 1,053,500 | ||||||
Total U.S. Corporate Bonds & Notes | ||||||||
(cost $120,142,964) | 119,999,509 | |||||||
63 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal | Value (Note 2) | ||||||
FOREIGN CORPORATE BONDS & NOTES — 7.1% |
| |||||||
Airlines — 0.7% |
| |||||||
Norwegian Air Shuttle ASA Pass-Through Trust | $ | 2,093,301 | $ | 1,852,687 | ||||
Auto-Cars/Light Trucks — 0.4% |
| |||||||
Nissan Motor Co., Ltd. | 980,000 | 985,885 | ||||||
Auto/Truck Parts & Equipment-Original — 0.3% |
| |||||||
Panther BF Aggregator 2 LP/Panther Finance Co., Inc. | 695,000 | 717,587 | ||||||
Cable/Satellite TV — 0.1% |
| |||||||
Virgin Media Finance PLC | 275,000 | 273,625 | ||||||
Casino Hotels — 0.2% |
| |||||||
Wynn Macau, Ltd. | 635,000 | 615,950 | ||||||
Casino Services — 0.3% |
| |||||||
Gateway Casinos & Entertainment, Ltd. | 800,000 | 676,000 | ||||||
Chemicals-Specialty — 0.4% |
| |||||||
Alpha 3 BV/Alpha US Bidco, Inc. | 950,000 | 963,062 | ||||||
Cruise Lines — 0.1% |
| |||||||
Carnival Corp. | 125,000 | 140,081 | ||||||
Royal Caribbean Cruises, Ltd. | 220,000 | 233,200 | ||||||
373,281 | ||||||||
Diversified Minerals — 0.4% |
| |||||||
Teck Resources, Ltd. | 780,000 | 932,397 | ||||||
Finance-Leasing Companies — 0.2% |
| |||||||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust | 575,000 | 620,750 | ||||||
Gambling (Non-Hotel) — 0.1% |
| |||||||
International Game Technology PLC | 200,000 | 202,250 | ||||||
Machinery-Pumps — 0.3% |
| |||||||
Titan Acquisition, Ltd./Titan Co-Borrower LLC | $ | 740,000 | $ | 736,300 | ||||
Medical-Biomedical/Gene — 0.1% |
| |||||||
Concordia International Corp. | 142,000 | 139,160 | ||||||
Medical-Drugs — 1.2% |
| |||||||
Bausch Health Cos., Inc. | 585,000 | 620,831 | ||||||
Bausch Health Cos., Inc. | 745,000 | 789,700 | ||||||
Endo Dac/Endo Finance LLC/Endo Finco, Inc. | 70,000 | 73,150 | ||||||
Teva Pharmaceutical Finance Netherlands III BV | 1,185,000 | 1,045,419 | ||||||
Teva Pharmaceutical Finance Netherlands III BV | 380,000 | 399,000 | ||||||
2,928,100 | ||||||||
Miscellaneous Manufacturing — 0.4% |
| |||||||
Bombardier, Inc. | 675,000 | 518,059 | ||||||
Bombardier, Inc. | 365,000 | 276,831 | ||||||
Bombardier, Inc. | 280,000 | 283,617 | ||||||
1,078,507 | ||||||||
Oil & Gas Drilling — 0.1% |
| |||||||
Transocean, Inc. | 398,000 | 163,260 | ||||||
Oil Companies-Exploration & Production — 0.7% |
| |||||||
Geopark, Ltd. | 995,000 | 942,762 | ||||||
MEG Energy Corp. | 890,000 | 798,179 | ||||||
1,740,941 | ||||||||
Satellite Telecom — 0.7% |
| |||||||
Telesat Canada/Telesat LLC | 1,620,000 | 1,631,664 | ||||||
64 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal | Value (Note 2) | ||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
| |||||||
Telecom Services — 0.4% |
| |||||||
Altice France Holding SA | $ | 1,000,000 | $ | 953,790 | ||||
Total Foreign Corporate Bonds & Notes | ||||||||
(cost $18,641,642) | 17,585,196 | |||||||
LOANS(3)(4)(5) — 42.8% | ||||||||
Advertising Sales — 0.2% |
| |||||||
Clear Channel Outdoor Holdings, Inc. FRS | 594,000 | 540,116 | ||||||
Advertising Services — 0.1% |
| |||||||
Advantage Sales & Marketing, Inc. FRS | 351,897 | 345,079 | ||||||
Aerospace/Defense-Equipment — 0.0% |
| |||||||
Spirit Aerosystems, Inc. FRS | 65,000 | 64,838 | ||||||
Agricultural Operations — 0.1% |
| |||||||
Asplundh Tree Expert LLC FRS | 335,000 | 334,372 | ||||||
Airlines — 1.0% |
| |||||||
Mileage Plus Holdings LLC FRS | 1,615,000 | 1,640,487 | ||||||
WestJet Airlines, Ltd. FRS | 861,370 | 743,739 | ||||||
2,384,226 | ||||||||
Auto-Heavy Duty Trucks — 0.5% |
| |||||||
Navistar, Inc. FRS | 1,159,066 | 1,147,475 | ||||||
Auto/Truck Parts & Equipment-Original — 1.8% |
| |||||||
Accuride Corp. FRS | 1,151,635 | 886,759 | ||||||
Cooper-Standard Automotive, Inc. FRS | 818,470 | 695,699 | ||||||
Cooper-Standard Automotive, Inc. FRS | 80,000 | 68,000 | ||||||
Auto/Truck Parts & Equipment-Original (continued) | ||||||||
DexKo Global, Inc. FRS | $ | 686,263 | $ | 669,107 | ||||
Panther BF Aggregator 2 LP FRS | 900,900 | 877,251 | ||||||
Tenneco, Inc. FRS | 1,327,173 | 1,193,211 | ||||||
4,390,027 | ||||||||
Broadcast Services/Program — 1.3% |
| |||||||
Diamond Sports Group LLC FRS | 990,000 | 762,300 | ||||||
iHeartCommunications, Inc. FRS | 1,527,766 | 1,446,794 | ||||||
Univision Communications, Inc. FRS | 1,044,910 | 1,003,114 | ||||||
3,212,208 | ||||||||
Building & Construction Products-Misc. — 0.4% |
| |||||||
AZEK Co. LLC FRS | 985,267 | 981,161 | ||||||
Building Products-Cement — 0.8% |
| |||||||
Quikrete Holdings, Inc. FRS | 1,003,552 | 978,777 | ||||||
Summit Materials LLC FRS | 941,096 | 929,626 | ||||||
1,908,403 | ||||||||
Building-Heavy Construction — 0.0% |
| |||||||
Golden Nugget, Inc. FRS | 55,000 | 62,150 | ||||||
Cable/Satellite TV — 0.5% |
| |||||||
Radiate Holdco LLC FRS | 238,761 | 234,247 | ||||||
UPC Broadband Holding BV FRS | 505,000 | 487,704 |
65 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal | Value (Note 2) | ||||||
LOANS(3)(4)(5) (continued) |
| |||||||
Cable/Satellite TV (continued) |
| |||||||
UPC Broadband Holdings BV FRS | $ | 500,000 | $ | 482,875 | ||||
1,204,826 | ||||||||
Casino Hotels — 1.0% |
| |||||||
Caesars Resort Collection LLC FRS | 546,667 | 528,119 | ||||||
Caesars Resort Collection LLC FRS | 273,333 | 264,059 | ||||||
CityCenter Holdings LLC FRS | 951,942 | 912,198 | ||||||
Golden Nugget, Inc. FRS | 398,306 | 355,090 | ||||||
Golden Nugget, Inc. FRS | 339,687 | 302,831 | ||||||
2,362,297 | ||||||||
Casino Services — 0.3% |
| |||||||
Aristocrat Leisure, Ltd. FRS | 269,325 | 268,820 | ||||||
Gateway Casinos & Entertainment, Ltd. FRS | 543,014 | 483,961 | ||||||
752,781 | ||||||||
Cellular Telecom — 0.2% |
| |||||||
Altice France SA FRS | 638,625 | 617,870 | ||||||
Chemicals-Diversified — 0.7% |
| |||||||
Ascend Performance Materials Operations LLC FRS | 410,850 | 409,138 | ||||||
Hexion, Inc. FRS | 628,539 | 617,539 | ||||||
Chemicals-Diversified (continued) | ||||||||
Innophos Holdings, Inc. FRS | $ | 830,825 | $ | 822,517 | ||||
1,849,194 | ||||||||
Chemicals-Specialty — 1.0% |
| |||||||
Diamond BC BV FRS | 1,675,604 | 1,563,548 | ||||||
Diamond BC BV FRS | 310,000 | 309,225 | ||||||
Zep, Inc. FRS | 742,050 | 692,889 | ||||||
2,565,662 | ||||||||
Commercial Services — 0.8% |
| |||||||
CPI Acquisition, Inc. FRS | 1,285,685 | 1,118,546 | ||||||
DynCorp International , Inc. FRS | 532,000 | 526,680 | ||||||
Spin Holdco, Inc. FRS | 374,034 | 366,163 | ||||||
2,011,389 | ||||||||
Computer Services — 0.4% |
| |||||||
Tempo Acquisition LLC FRS | 899,113 | 872,702 | ||||||
Computers-Integrated Systems — 0.7% |
| |||||||
Everi Payments, Inc. FRS | 1,260,151 | 1,219,196 | ||||||
Everi Payments, Inc. FRS | 54,863 | 55,686 | ||||||
NCR Corp. FRS | 532,312 | 516,342 | ||||||
1,791,224 | ||||||||
66 |
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AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal | Value (Note 2) | ||||||
LOANS(3)(4)(5) (continued) |
| |||||||
Consulting Services — 0.4% |
| |||||||
AlixPartners LLP FRS | $ | 1,123,650 | $ | 1,094,355 | ||||
Containers-Metal/Glass — 1.3% |
| |||||||
Anchor Glass Container Corp. FRS | 1,051,165 | 802,389 | ||||||
Anchor Glass Container Corp. FRS | 796,000 | 286,560 | ||||||
Berlin Packaging LLC FRS | 974,172 | 940,990 | ||||||
Berlin Packaging LLC FRS | 8,216 | 7,936 | ||||||
Mauser Packaging Solutions Holding Co FRS | 1,228,725 | 1,157,561 | ||||||
3,195,436 | ||||||||
Containers-Paper/Plastic — 1.9% |
| |||||||
Fort Dearborn Holding Co., Inc. FRS | 17,545 | 16,975 | ||||||
Fort Dearborn Holding Co., Inc. FRS | 1,091,872 | 1,056,387 | ||||||
Graham Packaging Company, Inc. FRS | 180,000 | 178,819 | ||||||
Kloeckner Pentaplast of America, Inc. FRS | 1,313,977 | 1,266,345 | ||||||
Patriot Container Corp. FRS | 831,864 | 811,067 | ||||||
Reynolds Group Holdings, Inc. FRS | 848,018 | 838,080 | ||||||
Trident TPI Holdings, Inc. FRS | 608,483 | 595,933 | ||||||
4,763,606 | ||||||||
Cosmetics & Toiletries — 0.5% |
| |||||||
Parfums Holding Co., Inc. FRS | $ | 1,184,688 | $ | 1,158,773 | ||||
Cruise Lines — 0.0% |
| |||||||
Carnival Corp. FRS | 104,738 | 105,698 | ||||||
Data Processing/Management — 0.4% |
| |||||||
Dun & Bradstreet Corp. FRS | 950,225 | 940,248 | ||||||
Diagnostic Kits — 0.3% |
| |||||||
Ortho-Clinical Diagnostics SA FRS | 727,687 | 695,851 | ||||||
Disposable Medical Products — 0.3% |
| |||||||
Sotera Health Holdings LLC FRS | 810,925 | 807,073 | ||||||
Diversified Manufacturing Operations — 0.0% |
| |||||||
LEB Holdings USA, Inc. FRS | 125,000 | 123,906 | ||||||
Diversified Minerals — 0.2% |
| |||||||
Covia Holdings Corp. FRS | 788,209 | 575,392 | ||||||
E-Commerce/Products — 0.3% |
| |||||||
Rodan & Fields LLC FRS | 1,124,125 | 761,595 | ||||||
E-Commerce/Services — 0.5% |
| |||||||
Hoya Midco LLC FRS | 654,206 | 558,528 | ||||||
Uber Technologies, Inc. FRS | 650,000 | 638,828 | ||||||
1,197,356 | ||||||||
Electric-Generation — 0.3% |
| |||||||
APLP Holdings LP FRS | 661,314 | 659,385 | ||||||
67 |
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AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal | Value (Note 2) | ||||||
LOANS(3)(4)(5) (continued) |
| |||||||
Electric-Integrated — 0.1% |
| |||||||
PG&E Corp. FRS | $ | 269,325 | $ | 264,163 | ||||
Electronics-Military — 0.3% |
| |||||||
AI Convoy Luxembourg SARL FRS | 810,925 | 800,643 | ||||||
Engineering/R&D Services — 0.4% |
| |||||||
TRC Cos., Inc. FRS | 915,750 | 891,712 | ||||||
Enterprise Software/Service — 1.5% |
| |||||||
Aston US Finco LLC FRS | 462,675 | 453,421 | ||||||
Banff Merger Sub, Inc. FRS | 971,072 | 940,484 | ||||||
Epicor Software Corp. FRS | 570,000 | 566,580 | ||||||
Hyland Software, Inc. FRS | 410,000 | 407,310 | ||||||
Sophia L.P. FRS | 380,000 | 377,268 | ||||||
Ultimate Software Group, Inc. FRS | 845,000 | 841,435 | ||||||
Ultimate Software Group, Inc. FRS | 105,000 | 106,969 | ||||||
3,693,467 | ||||||||
Finance-Credit Card — 0.7% |
| |||||||
Blackhawk Network Holdings, Inc. FRS | 872,185 | 821,670 | ||||||
Pi US Mergerco, Inc. FRS | 1,041,875 | 1,002,805 | ||||||
1,824,475 | ||||||||
Finance-Investment Banker/Broker — 0.4% |
| |||||||
Deerfield Dakota Holding LLC FRS | $ | 882,788 | $ | 876,535 | ||||
Food-Baking — 0.5% |
| |||||||
Hostess Brands LLC FRS | 332,335 | 326,173 | ||||||
Hostess Brands LLC FRS | 892,380 | 875,833 | ||||||
1,202,006 | ||||||||
Food-Catering — 0.4% |
| |||||||
TKC Holdings, Inc. FRS | 983,750 | 921,774 | ||||||
Food-Confectionery — 0.6% |
| |||||||
Shearer’s Foods LLC FRS | 1,241,467 | 1,241,467 | ||||||
Shearer’s Foods, LLC FRS | 86,907 | 86,386 | ||||||
Shearer’s Foods, LLC FRS | 250,000 | 248,500 | ||||||
1,576,353 | ||||||||
Food-Dairy Products — 0.3% |
| |||||||
Chobani LLC FRS | 708,223 | 699,591 | ||||||
Food-Flour & Grain — 0.2% |
| |||||||
CHG PPC Parent LLC FRS | 587,094 | 563,610 | ||||||
Food-Misc./Diversified — 1.2% |
| |||||||
Froneri US, Inc. FRS | 842,888 | 809,435 | ||||||
H-Food Holdings LLC FRS | 957,950 | 928,762 | ||||||
Sigma Bidco BV FRS | 1,205,731 | 1,172,574 | ||||||
2,910,771 | ||||||||
68 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal | Value (Note 2) | ||||||
LOANS(3)(4)(5) (continued) |
| |||||||
Gambling (Non-Hotel) — 0.3% |
| |||||||
Scientific Games International, Inc. FRS | $ | 179,180 | $ | 168,631 | ||||
Scientific Games International, Inc. FRS | 732,445 | 689,322 | ||||||
857,953 | ||||||||
Hotels/Motels — 0.1% |
| |||||||
Playa Resorts Holding BV FRS | 348,204 | 305,113 | ||||||
Housewares — 0.3% |
| |||||||
Carlisle FoodService Products, Inc. FRS | 750,299 | 664,015 | ||||||
Libbey Glass, Inc. FRS | 863,568 | 138,890 | ||||||
802,905 | ||||||||
Human Resources — 0.3% |
| |||||||
CHG Healthcare Services, Inc. FRS | 870,391 | 854,434 | ||||||
Insurance Brokers — 0.1% |
| |||||||
Ryan Specialty Group LLC FRS | 145,000 | 143,731 | ||||||
Insurance-Property/Casualty — 0.6% |
| |||||||
Sedgwick Claims Management Services, Inc. FRS | 1,550,309 | 1,493,832 | ||||||
Internet Connectivity Services — 0.1% |
| |||||||
Northwest Fiber LLC FRS | 209,475 | 208,951 | ||||||
Internet Content-Information/News — 0.3% |
| |||||||
Pug LLC FRS | 926,843 | 814,077 | ||||||
Machinery-Electrical — 1.0% |
| |||||||
Brookfield WEC Holdings, Inc. FRS | 1,598,216 | 1,555,977 | ||||||
Machinery-Electrical (continuted) |
| |||||||
Vertiv Group Corp. FRS | $ | 855,695 | $ | 838,795 | ||||
2,394,772 | ||||||||
Machinery-General Industrial — 0.4% |
| |||||||
Zodiac Pool Solutions LLC FRS | 982,015 | 955,010 | ||||||
Machinery-Pumps — 1.6% |
| |||||||
CIRCOR International, Inc. FRS | 880,000 | 859,650 | ||||||
NN, Inc. FRS | 485,900 | 477,518 | ||||||
NN, Inc. FRS | 695,679 | 683,679 | ||||||
Star US Bidco LLC FRS | 927,675 | 879,745 | ||||||
Titan Acquisition, Ltd. FRS | 1,108,847 | 1,045,088 | ||||||
3,945,680 | ||||||||
Medical Information Systems — 0.7% |
| |||||||
Emerald TopCo, Inc. FRS | 524,700 | 504,587 | ||||||
Navicure, Inc. FRS | 597,000 | 583,194 | ||||||
Navicure, Inc. FRS | 130,000 | 126,750 | ||||||
Zelis Payments Buyer, Inc. FRS | 580,613 | 575,411 | ||||||
1,789,942 | ||||||||
Medical Labs & Testing Services — 0.7% |
| |||||||
Envision Healthcare Corp. FRS | 1,123,503 | 801,432 |
69 |
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AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal | Value (Note 2) | ||||||
LOANS(3)(4)(5) (continued) |
| |||||||
Medical Labs & Testing Services (continued) |
| |||||||
eResearchTechnology, Inc. FRS | $ | 837,900 | $ | 833,972 | ||||
1,635,404 | ||||||||
Medical Products — 0.9% |
| |||||||
ASP Navigate Acquisition Corp. FRS | 365,000 | 360,438 | ||||||
CPI Holdco LLC FRS | 422,875 | 419,703 | ||||||
Greatbatch, Ltd. FRS | 384,536 | 383,214 | ||||||
Viant Medical Holdings, Inc. FRS | 1,220,365 | 1,123,498 | ||||||
2,286,853 | ||||||||
Medical-HMO — 0.6% |
| |||||||
One Call Corp. FRS | 1,616,005 | 1,401,884 | ||||||
Medical-Hospitals — 1.2% |
| |||||||
Accelerated Health Systems LLC FRS | 869,513 | 843,427 | ||||||
AHP Health Partners, Inc. FRS | 971,392 | 969,571 | ||||||
RegionalCare Hospital Partners Holdings, Inc. FRS | 841,376 | 816,135 | ||||||
Surgery Center Holdings, Inc. FRS | 268,615 | 253,458 | ||||||
Surgery Center Holdings, Inc. FRS | 199,000 | 200,658 | ||||||
3,083,249 | ||||||||
Medical-Outpatient/Home Medical — 0.4% |
| |||||||
Gentiva Health Services, Inc. FRS | $ | 524,693 | $ | 513,216 | ||||
National Mentor Holdings, Inc. FRS | 487,070 | 481,133 | ||||||
National Mentor Holdings, Inc. FRS | 22,233 | 21,962 | ||||||
1,016,311 | ||||||||
Non-Hazardous Waste Disposal — 0.6% |
| |||||||
GFL Environmental, Inc. FRS | 761,313 | 756,987 | ||||||
GFL Environmental, Inc. FRS | 136,226 | 135,452 | ||||||
Tunnel Hill Partners LP FRS | 748,600 | 709,298 | ||||||
1,601,737 | ||||||||
Oil Companies-Exploration & Production — 0.2% |
| |||||||
California Resources Corp. FRS | 650,000 | 234,000 | ||||||
Fieldwood Energy LLC FRS | 1,085,382 | 270,667 | ||||||
Gavilan Resources LLC FRS | 470,000 | 1,175 | ||||||
505,842 | ||||||||
Oil Refining & Marketing — 0.3% |
| |||||||
CITGO Holding, Inc. FRS | 262,350 | 245,297 | ||||||
CITGO Petroleum Corp. FRS | 658,561 | 623,163 | ||||||
868,460 | ||||||||
Pharmacy Services — 0.4% |
| |||||||
Milano Acquisition Corp. FRS | 875,000 | 864,062 |
70 |
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PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal | Value (Note 2) | ||||||
LOANS(3)(4)(5) (continued) |
| |||||||
Pharmacy Services (continued) |
| |||||||
Packaging Coordinators Midco, Inc. FRS | $ | 185,000 | $ | 184,191 | ||||
1,048,253 | ||||||||
Pipelines — 0.4% |
| |||||||
Medallion Midland Acquisition LLC FRS | 706,919 | 663,326 | ||||||
Traverse Midstream Partners LLC FRS | 349,018 | 319,874 | ||||||
983,200 | ||||||||
Pollution Control — 0.4% |
| |||||||
Filtration Group Corp. FRS | 931,580 | 912,366 | ||||||
Professional Sports — 0.4% |
| |||||||
UFC Holdings LLC FRS | 1,051,103 | 1,036,125 | ||||||
Publishing-Books — 0.3% |
| |||||||
McGraw-Hill Global Education Holdings LLC FRS | 812,762 | 681,196 | ||||||
Publishing-Periodicals — 0.2% |
| |||||||
Meredith Corp. FRS | 526,651 | 506,902 | ||||||
Retail-Arts & Crafts — 0.4% |
| |||||||
Michaels Stores, Inc. FRS | 726,662 | 723,392 | ||||||
Michaels Stores, Inc. FRS | 255,000 | 253,853 | ||||||
977,245 | ||||||||
Retail-Bedding — 0.1% |
| |||||||
Serta Simmons Bedding LLC FRS | 945,700 | 315,121 | ||||||
Retail-Major Department Stores — 0.1% |
| |||||||
Neiman Marcus Group, Ltd. LLC FRS | 1,189,009 | 180,334 | ||||||
Retail-Misc./Diversified — 0.3% |
| |||||||
Leslie’s Poolmart, Inc. FRS | $ | 667,313 | $ | 653,728 | ||||
Retail-Sporting Goods — 0.3% |
| |||||||
Bass Pro Group LLC FRS | 784,897 | 777,343 | ||||||
Retail-Vitamins & Nutrition Supplements — 0.2% |
| |||||||
Isagenix International LLC FRS | 843,170 | 427,206 | ||||||
Rubber/Plastic Products — 1.0% |
| |||||||
Gates Global LLC FRS | 1,217,424 | 1,196,372 | ||||||
U.S. Farathane LLC FRS | 1,397,122 | 1,210,840 | ||||||
2,407,212 | ||||||||
Satellite Telecom — 0.6% |
| |||||||
Intelsat Jackson Holdings SA FRS | 840,000 | 841,890 | ||||||
Intelsat Jackson Holdings SA FRS | 541,000 | 545,058 | ||||||
1,386,948 | ||||||||
Soap & Cleaning Preparation — 0.2% |
| |||||||
KIK Custom Products, Inc. FRS | 538,267 | 534,226 | ||||||
Telecom Services — 0.2% |
| |||||||
West Corp. FRS | 671,980 | 609,582 | ||||||
Telecommunication Equipment — 0.3% |
| |||||||
Plantronics, Inc. FRS | 630,172 | 590,628 | ||||||
Plantronics, Inc. FRS | 94,828 | 88,878 | ||||||
679,506 | ||||||||
71 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
Security Description | Principal | Value (Note 2) | ||||||
LOANS(3)(4)(5) (continued) |
| |||||||
Telephone-Integrated — 0.8% |
| |||||||
Consolidated Communications, Inc. FRS | $ | 570,000 | $ | 563,350 | ||||
Consolidated Communications, Inc. FRS | 553,880 | 548,549 | ||||||
Zayo Group Holdings, Inc. FRS | 776,100 | 751,473 | ||||||
1,863,372 | ||||||||
Theaters — 0.2% |
| |||||||
CDS U.S. Intermediate Holdings, Inc. FRS | 1,211,688 | 581,611 | ||||||
Veterinary Diagnostics — 0.1% |
| |||||||
PetVet Care Centers LLC FRS | 289,270 | 288,546 | ||||||
Vitamins & Nutrition Products — 0.4% |
| |||||||
Milk Specialties Co. FRS | 959,318 | 926,541 | ||||||
Total Loans | ||||||||
(cost $116,334,978) | 106,444,477 | |||||||
COMMON STOCKS — 0.4% |
| |||||||
Advertising Sales — 0.0% |
| |||||||
Clear Channel Outdoor Holdings, Inc.† | 56,198 | 56,198 | ||||||
Oil Companies-Exploration & Production — 0.2% |
| |||||||
Denbury, Inc.† | 22,954 | 403,990 | ||||||
Radio — 0.0% |
| |||||||
iHeartMedia, Inc., Class A† | 2,196 | 17,832 | ||||||
iHeartMedia, Inc., Class B†(11) | 29 | 235 | ||||||
18,067 | ||||||||
Retail-Regional Department Stores — 0.0% |
| |||||||
MYT Holding LLC†(6)(11) | 57,392 | 49,931 | ||||||
NMG Parent LLC†(6)(11) | 203 | 13,163 | ||||||
63,094 | ||||||||
Television — 0.2% |
| |||||||
ION Media Networks, Inc.†(6)(11) | 660 | 571,195 | ||||||
Total Common Stocks | ||||||||
(cost $1,593,812) | 1,112,544 | |||||||
PREFERRED SECURITIES/CAPITAL SECURITIES — 0.6% |
| |||||||
Insurance-Life/Health — 0.6% |
| |||||||
Voya Financial, Inc. | $ | 1,325,000 | 1,361,438 | |||||
WARRANTS — 0.1% |
| |||||||
Radio — 0.1% |
| |||||||
iHeartmedia, Inc. | 21,674 | $ | 159,304 | |||||
ESCROWS AND LITIGATION TRUSTS — 0.0% |
| |||||||
Mesquite Energy, Inc. | $ | 405,000 | 2,025 | |||||
Texas Competitive Electric Holdings Co. LLC/TCEH Finance, Inc. | 1,667,835 | 2,502 | ||||||
Venture Holdings Co. LLC | 550,000 | 0 | ||||||
Hellas Telecommunications Luxembourg II SCA | 1,025,000 | 0 | ||||||
Paragon Offshore Finance Co. FRS | 1,745 | 0 | ||||||
Vistra Energy Corp. CVR†(11) | 27,942 | 30,512 | ||||||
Total Escrows and Litigation Trusts | ||||||||
(cost $1,603,132) | 35,039 | |||||||
Total Long-Term Investment Securities | ||||||||
(cost $260,066,849) | 246,697,507 | |||||||
SHORT-TERM INVESTMENT SECURITIES — 2.1% |
| |||||||
Registered Investment Companies — 2.1% |
| |||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 5,210,114 | 5,210,114 | ||||||
TOTAL INVESTMENTS | ||||||||
(cost $265,276,963)(10) | 101.4 | % | 251,907,621 | |||||
Liabilities in excess of other assets | (1.4 | ) | (3,456,693 | ) | ||||
NET ASSETS | 100.0 | % | $ | 248,450,928 | ||||
* | 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 September 30, 2020, the aggregate value of these securities was $94,163,661 representing 37.9% of net assets. |
† | Non-income producing security |
(1) | Security in default of interest and principal at maturity. |
(2) | Security in default of interest. |
(3) | Senior loans in the Fund are generally subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a borrower to prepay, prepayments may occur. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. |
72 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
(4) | The Fund invests in senior loans which generally pay interest at rates which are periodically re-determined by reference to a base lending rate plus a premium. These base lending rates are generally either the lending rate offered by one or more major European banks, such as the London Inter-Bank Offered Rate (“LIBOR”) or the prime rate offered by one or more major United States banks, or the certificate of deposit rate. Senior loans are generally considered to be restrictive in that the Fund is ordinarily contractually obligated to receive approval from the Agent Bank and/or borrower prior to the disposition of a senior loan. |
(5) | All loans in the Fund were purchased through assignment agreements unless otherwise indicated. |
(6) | Securities classified as Level 3 (see Note 2). |
(7) | PIK (“Payment-in-Kind”) security — Income may be paid in additional securities or cash at the discretion of the issuer. The security is currently paying interest in the form of additional securities. |
(8) | Company has filed for bankruptcy protection. |
(9) | The rate shown is the 7-day yield as of September 30, 2020. |
(10) | See Note 5 for cost of investments on a tax basis. |
(11) | Denotes a restricted security that: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933, as amended (the “1933 Act”); (b) is subject to a contractual restriction on public sales; or (c) is otherwise subject to a restriction on sales by operation of applicable law. Restricted securities are valued pursuant to Note 2. Certain restricted securities held by the Fund may not be sold except in exempt transactions or in a public offering registered under the 1933 Act. The Fund has no right to demand registration of these securities. The risk of investing in certain restricted securities is greater than the risk of investing in the securities of widely held, publicly traded companies. To the extent applicable, 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, certain restricted securities may exhibit greater price volatility than securities for which secondary markets exist. |
As of September 30, 2020, the Fund held the following restricted securities:
Description | Acquisition Date | Principal Amount/ Shares | Acquisition Cost | Value | Value Per Share | % of Net Assets | ||||||||||||||||||
Term Loans | ||||||||||||||||||||||||
Gavilan Resources LLC 10.25% due 03/01/2024 | 3/9/2007 | $ | 470,000 | $ | 465,300 | $ | 1,175 | $ | 0.25 | 0.00 | % | |||||||||||||
Common Stocks | ||||||||||||||||||||||||
iHeartMedia, Inc., Class B | 05/07/2019 | 29 | 522 | 235 | 8.10 | 0.00 | ||||||||||||||||||
MYT Holding LLC | 11/20/2017 | 10,532 | 0 | |||||||||||||||||||||
02/14/2018 | 35,731 | 0 | ||||||||||||||||||||||
09/17/2018 | 11,129 | 0 | ||||||||||||||||||||||
57,392 | 0 | 49,931 | 0.87 | 0.02 | ||||||||||||||||||||
NMG Parent LLC | 11/20/2017 | 37 | 68,915 | |||||||||||||||||||||
02/14/2018 | 127 | 239,200 | ||||||||||||||||||||||
09/17/2018 | 39 | 81,283 | ||||||||||||||||||||||
203 | 389,398 | 13,163 | 64.84 | 0.01 | ||||||||||||||||||||
ION Media Networks, Inc. | 12/21/2016 | 660 | 7 | 571,195 | 865.45 | 0.23 | ||||||||||||||||||
Escrows and Litigation Trusts | ||||||||||||||||||||||||
Vistra Energy Corp. CVR | 10/06/2016 | 27,942 | 0 | 30,512 | 1.09 | 0.01 | ||||||||||||||||||
$ | 666,211 | 0.27 | % | |||||||||||||||||||||
BTL — | Bank Term Loan |
CVR — | Contingent Value Rights |
TBD — | Senior loan purchased on a when-issued or delayed-delivery basis. Certain details associated with this purchase are not known prior to the settlement date of the transaction. In addition, senior loans typically trade without accrued interest and therefore a coupon rate is not available prior to the settlement. |
FRS — | Floating Rate Security |
The rates shown on FRS are the current interest rates at September 30, 2020 and unless noted otherwise, the dates shown are the original maturity dates.
Index Legend
1 | ML — 1 Month USD Libor |
1 | WL — 1 Week USD Libor |
2 | ML — 2 Month USD Libor |
3 | ML — 3 Month USD Libor |
6 | ML — 6 Month USD Libor |
USFRBPLR — | US Federal Reserve Bank Prime Loan Rate |
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AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — September 30, 2020 — (unaudited) (continued)
The following is a summary of the inputs used to value the Fund’s net assets as of September 30, 2020 (see Note 2):
Level 1 — Unadjusted Quoted Prices | Level 2 — Other Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
ASSETS: | ||||||||||||||||
Investments at Value:* | ||||||||||||||||
U.S. Corporate Bonds & Notes | $ | — | $ | 119,999,509 | $ | — | $ | 119,999,509 | ||||||||
Foreign Corporate Bonds & Notes | — | 17,585,196 | — | 17,585,196 | ||||||||||||
Loans: | ||||||||||||||||
Oil Companies-Exploration & Production | — | 270,667 | 235,175 | 505,842 | ||||||||||||
Other Industries | — | 105,938,635 | — | 105,938,635 | ||||||||||||
Common Stocks: | ||||||||||||||||
Radio | 17,832 | 235 | — | 18,067 | ||||||||||||
Retail-Regional Department Stores | — | — | 63,094 | 63,094 | ||||||||||||
Television | — | — | 571,195 | 571,195 | ||||||||||||
Other Industries | 460,188 | — | — | 460,188 | ||||||||||||
Preferred Securities/Capital Securities | — | 1,361,438 | — | 1,361,438 | ||||||||||||
Warrants | — | �� | 159,304 | — | 159,304 | |||||||||||
Escrows and Litigation Trusts | — | 35,039 | 0 | 35,039 | ||||||||||||
Short-Term Investment Securities | 5,210,114 | — | — | 5,210,114 | ||||||||||||
Total Investments at Value | $ | 5,688,134 | $ | 245,350,023 | $ | 869,464 | $ | 251,907,621 | ||||||||
* | For a detailed presentation of investments, please refer to the Portfolio of Investments. |
At the beginning and end of the reporting period, Level 3 investments in securities were not considered a material portion of the Fund. There were no material Level 3 transfers during the reporting period.
See Notes to Financial Statements
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Table of Contents
SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS — September 30, 2020 — (unaudited)
Note 1. Organization
The SunAmerica Income Funds (the “Trust”) is a diversified open-end management investment company organized as a Massachusetts business trust. The Trust currently consists of three different series (each, a “Fund” and collectively, the “Funds”). Each Fund is a separate series of the Trust with distinct investment objectives and/or strategies. Each Fund is managed by SunAmerica Asset Management, LLC (the “Adviser” or “SunAmerica”), an indirect wholly-owned subsidiary of American International Group, Inc. (“AIG”). An investor may invest in one or more of the following Funds: AIG U.S. Government Securities Fund (“U.S. Government Securities Fund”), AIG Strategic Bond Fund (“Strategic Bond Fund”), and AIG Flexible Credit Fund (“Flexible Credit Fund”). The Funds are considered to be separate entities for financial and tax reporting purposes.
The investment goals and principal investment techniques for each of the Funds are as follows:
U.S. Government Securities Fund seeks high current income consistent with relative safety of capital by the active trading of U.S. Government securities, without regard to the maturities of such securities. Under normal market conditions, at least 80% of the Fund’s net assets plus any borrowing for investment purposes will be invested in such securities.
Strategic Bond Fund seeks a high level of total return by the active trading of a broad range of bonds, including both investment grade and non-investment grade U.S. and foreign bonds (which may include “junk bonds”), U.S. and foreign government and agency obligations, and mortgage-backed securities, without regard to the maturities of such securities. Under normal market conditions, at least 80% of the Fund’s net assets plus any borrowing for investment purposes will be invested in bonds.
Flexible Credit Fund seeks a high level of total return by the active trading in credit instruments. Under normal circumstances, at least 80% of the Fund’s net assets, plus any borrowings for investment purposes, will be invested in credit instruments and derivative instruments and exchange-traded funds (“ETFs”) that are linked to, or provide investment exposure to, credit instruments. The Fund considers a credit instrument to be any debt instrument or instrument with debt-like characteristics, including but not limited to, corporate and sovereign bonds, secured floating rate loans and other institutionally traded secured floating rate debt obligations (“Loans”), and securitized instruments, which are securities backed by pools of assets such as mortgages, loans, or other receivables. The credit instruments in which the Fund intends to primarily invest are U.S. and non-U.S. below investment grade, high yield bonds (commonly referred to as “junk bonds”) and Loans.
Each Fund offers multiple classes of shares. The classes within each Fund are presented in the Statements 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 of $250,000 or more will be purchased at net asset value but will be subject to a contingent deferred sales charge on redemptions made within one year of purchase.
Class B shares are offered without an initial sales charge, although a declining contingent deferred sales charge may be imposed on redemptions made within six years of purchase. Class B shares convert automatically to Class A shares on the first business day of the month following the eighth anniversary of the issuance 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 and may be subject to a contingent deferred sales charge on redemptions made within 12 months of purchase. Effective September 30, 2020, Class C shares will convert automatically to Class A shares approximately eight years after purchase and at such time will be subject to the lower distribution fee applicable to Class A shares.
Class W shares are offered at net asset value per share. The class is offered exclusively through advisory fee-based programs sponsored by certain financial intermediaries and other programs.
Each class of shares bears the same voting, dividend, liquidation and other rights and conditions except as may otherwise be provided in the Trust’s registration statement. Class A, Class B and Class C shares each makes distribution and account maintenance and service fee payments under the distribution plan pursuant to Rule 12b-1 under the Investment Company Act of
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SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS — September 30, 2020 — (unaudited) (continued)
1940, as amended (the “1940 Act”), with Class B and Class C shares being subject to higher distribution fee rates. Class W shares have not adopted 12b-1 Plans and make no payments thereunder, however, Class W shares pay a service fee to the Funds’ distributor for administrative and shareholder services.
Indemnifications: The Trust’s organizational documents provide current and former officers and trustees with a limited indemnification against liabilities arising out of the performance of their duties to the Trust. In addition, pursuant to Indemnification Agreements between the Trust and each of the current trustees who is not an “interested person,” as defined in Section 2(a)(19) of the 1940 Act, of the Trust (collectively, the “Disinterested Trustees”), the Trust provides the Disinterested Trustees with a limited indemnification against liabilities arising out of the performance of their duties to the Trust, whether such liabilities are asserted during or after their service as trustees. In addition, in the normal course of business, the Trust enters into contracts that contain the obligation to indemnify others. The Trust’s maximum exposure under these arrangements is unknown. Currently, however, the Trust expects the risk of loss to be remote.
Note 2. Significant Accounting Policies
The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and those differences could be significant. The Funds are considered investment companies under GAAP and follow the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements:
Security Valuation: In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Funds disclose the fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. In accordance with GAAP, fair value is defined as the price that the Funds would receive upon selling an asset or transferring a liability in a timely transaction to an independent third party in the principal or most advantageous market. GAAP establishes a three-tier hierarchy to provide more transparency around the inputs used to measure fair value and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tiers are as follows:
Level 1 — Unadjusted quoted prices in active markets for identical securities
Level 2 — Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, referenced indices, quoted prices in inactive markets, adjusted quoted prices in active markets, adjusted quoted prices on foreign equity securities that were adjusted in accordance with pricing procedures approved by the Board of Trustees (“the Board”), etc.)
Level 3 — Significant unobservable inputs (includes inputs that reflect the Funds’ own assumptions about the assumptions market participants would use in pricing the security, developed based on the best information available under the circumstances)
Changes in valuation techniques may result in transfers in or out of an investment’s assigned Level within the hierarchy. The methodology used for valuing investments is not necessarily an indication of the risk associated with investing in those investments and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to each security.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is recently issued and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
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SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS — September 30, 2020 — (unaudited) (continued)
The summary of each Fund’s asset and liabilities classified in the fair value hierarchy as of September 30, 2020 is reported on a schedule at the end of each Fund’s Portfolio of Investments.
Stocks are generally valued based upon closing sales prices reported on recognized securities exchanges on which the securities are principally traded and are generally categorized as Level 1. 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, the Funds use the exchange that is the primary market for the security. Such securities are generally categorized as Level 1. 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 a Fund may determine that certain closing prices do not reflect the fair value of the security. 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 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 and foreign equity futures contracts, the Funds use an outside pricing service to provide it with closing market prices and information used for adjusting those prices and when so adjusted, such securities and futures are generally categorized as Level 2.
Bonds, debentures and other debt securities are valued at evaluated bid prices obtained for the day of valuation from a Board-approved pricing service, and are generally categorized as Level 2. The pricing service may use valuation models or matrix pricing which considers information with respect to comparable bond and note transactions, quotations from bond dealers, or by reference to other securities that are considered comparable in such characteristics as rating, interest rate, and maturity date, option adjusted spread models, prepayments projections, interest rate spreads, and yield curves to determine current value. If a price is unavailable from a Board-approved pricing service, the securities may be priced at the mean of two independent quotes obtained from brokers.
Senior floating rate loans (“Loans”) are valued at the average of available bids in the market for such Loans, as provided by a Board-approved loan pricing service, and are generally categorized as Level 2.
Investments in registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in 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. Investments in registered investment companies are generally categorized as Level 1.
Forward foreign currency contracts (“forward contracts”) are valued at the 4:00 p.m. Eastern Time forward rate and are generally categorized as Level 2.
Other securities are valued on the basis of last sale or bid price (if a last sale price is not available) which is, in the opinion of the Adviser, the broadest and most representative market, that may be either a securities exchange or over-the-counter market and are generally categorized as Level 1 or Level 2.
The Board is responsible for the share valuation process and has adopted policies and procedures (the “PRC Procedures”) for valuing the securities and other assets held by the Funds, including procedures for the fair valuation of securities and other assets for which market quotations are not readily available or are unreliable. The PRC Procedures provide for the establishment of a pricing review committee, which is responsible for, among other things, making certain determinations in connection with the
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SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS — September 30, 2020 — (unaudited) (continued)
Trust’s fair valuation procedures. Securities for which market quotations are not readily available or the values of which may be significantly impacted by the occurrence of developments or significant events are generally categorized as Level 3. There is no single standard for making fair value determinations, which may result in prices that vary from those of other funds.
Derivative Instruments:
Forward Foreign Currency Contracts: During the period, the Strategic Bond Fund used forward contracts to attempt to protect securities and related receivables and payables against changes in future foreign exchange rates.
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 cumulative change in market value is recorded by a Fund as unrealized appreciation or depreciation. On the settlement date, a Fund records either realized gains or losses 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 to the Funds of entering into forward contracts include counterparty risk, market risk and illiquidity risk. Counterparty risk arises upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts. If the counterparty defaults, a Fund’s loss will generally consist of the net amount of contractual payments that the Fund has not yet received though the Fund’s maximum exposure due to counterparty risk could extend to the notional amount of the contract. Market risk is the risk that the value of the forward contract will depreciate due to unfavorable changes in the exchange rates. These contracts may involve market risk in excess of the unrealized appreciation or depreciation reported on the Statements of Assets and Liabilities. Illiquidity risk arises because the secondary market for forwards may have less liquidity relative to markets for other securities. Currency transactions are also subject to risks different from those of other portfolio transactions. Because currency control is of great importance to the issuing governments and influences economic planning and policy, purchases and sales of currency and related instruments can be adversely affected by government exchange controls, limitations or restrictions on repatriation of currency, and manipulations or exchange restrictions imposed by governments.
Forward foreign currency contracts outstanding at the end of the period, if any, are reported on a schedule at the end of each Fund’s Portfolio of Investments.
Master Agreements: Certain Funds that hold derivative instruments and other financial instruments may be a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements or similar agreements (“Master Agreements”) with certain counterparties that govern certain instruments. Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. Collateral can be in the form of cash or securities as agreed to by the Fund and applicable counterparty. Collateral requirements are generally determined based on a Fund’s net position with each counterparty. Master Agreements may also include certain provisions that require a Fund to post additional collateral upon the occurrence of certain events, such as when a Fund’s net assets fall below a specified level. In addition, Master Agreements typically specify certain standard termination events, such as failure of a party to pay or deliver, credit support defaults and other events of default. Termination events applicable to a Fund may also occur upon a decline in the Fund’s net assets below a specified level over a certain period of time. Additional termination events applicable to counterparties may occur upon a decline in a counterparty’s long-term and short-term credit ratings below a specified level, or upon a decline in the ratings of a counterparty’s credit support provider. Upon the occurrence of a termination event, the other party may elect to terminate early and cause settlement of all instruments outstanding pursuant to a particular Master Agreement, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of a Fund’s counterparties to elect early termination could cause a Fund to accelerate the payment of liabilities, which settlement amounts could be in excess of the amount of assets that are already posted as collateral. Typically, the Master Agreement will permit a single net payment in the event of default. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events. As a result, the early termination with respect to derivative instruments subject to Master Agreements that are in a net liability position could be material to a Fund’s financial statements. The Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Asset and Liabilities.
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SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS — September 30, 2020 — (unaudited) (continued)
The following tables represent the value of derivatives held as of September 30, 2020, by their primary underlying risk exposure. The derivative contracts held during the period are not accounted for as hedging instruments under GAAP. For a detailed presentation of derivatives held as of September 30, 2020, please refer to the schedule at the end of each Fund’s Portfolio of Investments.
Asset Derivatives | Liability Derivatives | |||||||
Foreign Forward Exchange Contracts | Foreign Forward Exchange Contracts | |||||||
Fund | Foreign Exchange Contracts(1) | Foreign Exchange Contracts(2) | ||||||
Strategic Bond | $ | 26,495 | $ | 280,732 | ||||
Statement of Assets and Liabilities Location:
(1) | Unrealized appreciation on forward foreign currency contracts |
(2) | Unrealized depreciation on forward foreign currency contracts |
Realized Gain (Loss) on Derivatives Recognized in Statement of Operations | Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Statement of Operations | |||||||
Foreign Forward Exchange Contracts | Foreign Forward Exchange Contracts | |||||||
Fund | Foreign Exchange Contracts(1) | Foreign Exchange Contracts(2) | ||||||
Strategic Bond | $ | (535,571 | ) | $ | (445,096 | ) | ||
Statement of Operations Location:
(1) | Net realized gain (loss) on forward contracts |
(2) | Change in unrealized appreciation (depreciation) on forward contracts |
The following table represents the average monthly balances of derivatives held during the six months ended September 30, 2020:
Average Amount Outstanding During the Year | ||||
Fund | Foreign Exchange Contracts(1) | |||
Strategic Bond | $ | 23,204,563 | ||
(1) | Amounts represent notional amounts in US dollars. |
The following tables set forth the Funds’ derivative assets and liabilities by counterparty, net of amounts available for offset under Master Agreements and net of the related collateral pledged/(received) as of September 30, 2020. The repurchase agreements held by the Funds as of September 30, 2020, are also subject to Master Agreements but are not included in the following tables. See the Portfolio of Investments of each Fund and the Notes to the Financial Statements for more information about the Funds’ holdings in repurchase agreements.
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SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS — September 30, 2020 — (unaudited) (continued)
Strategic Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||
Derivative Assets(1) | Derivative Liabilities(1) | |||||||||||||||||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | OTC Swaps | Options Purchased | Total | Forward Foreign Currency Contracts | OTC Swaps | Options Written | Total | Net Derivative Assets (Liabilities) | Collateral Pledged/ (Received)(2) | Net Amount(3) | |||||||||||||||||||||||||||||||||
JPMorgan Chase Bank N.A | $ | 26,495 | $ | — | $ | — | $ | 26,495 | $ | 280,732 | $ | — | $ | — | $ | 280,732 | $ | (254,237 | ) | $ | — | $ | (254,237 | ) | ||||||||||||||||||||
(1) | Gross amounts of recognized assets and liabilities not offset in the Statement of Assets and Liabilities. |
(2) | For each respective counterparty, collateral pledged or (received) is limited to an amount not to exceed 100% of the derivative asset/liability in the table above. |
(3) | Net amount represents the net amount due (to)/from counterparty in the event of a default based on the contractual set-off rights under the agreement. |
Mortgage-Backed Dollar Rolls: Certain Funds may enter into dollar rolls using “to be announced” (“TBA”) mortgage-backed securities (“TBA Rolls”). TBA Roll transactions involve the sale of mortgage or other asset backed securities with the commitment to purchase substantially similar securities on a specified future date. The Funds’ 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. TBA Roll transactions involve the risk that the market value of the securities held by a 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 TBA Roll transaction files bankruptcy or becomes insolvent, a 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. Mortgage-Backed Dollar Rolls outstanding at the end of the period, if any, are included in investments purchased/sold on an extended settlement basis in the Statement of Assets and Liabilities.
When-Issued Securities and Forward Commitments: Certain Funds may purchase or sell when-issued securities (including TBA securities) that have been authorized, but not yet issued in the market. In addition, a Fund may purchase or sell securities on a forward commitment basis. A forward commitment involves entering into a contract to purchase or sell securities, typically on an extended settlement basis, for a fixed price at a future date. The Funds may engage in when-issued or forward commitment transactions in order to secure what is considered to be an advantageous price and yield at the time of entering into the obligation. The purchase of securities on a when-issued or forward commitment basis involves a risk of loss if the value of the security to be purchased declines before the settlement date. Conversely, the sale of securities on a when-issued or forward commitment basis involves the risk that the value of the securities sold may increase before the settlement date. Securities purchased or sold on a when-issued or forward commitment basis outstanding at the end of the period, if any, are included in investments purchased/sold on an extended settlement basis in the Statement of Assets and Liabilities.
Loans: The Fund invests in senior loans which generally consist of direct debt obligations of companies (collectively, “Borrowers”), primarily U.S. companies and their affiliates, undertaken to finance the growth of the Borrower’s business internally and externally, or to finance a capital restructuring. Transactions in senior loans may settle on a delayed basis. Unsettled loans at the end of the period, if any, are included in investments purchased/sold on an extended settlement basis in the Statement of Assets and Liabilities.
Stripped Mortgage-Backed Securities: Stripped Mortgage-Backed Securities (“SMBS”) are multiple-class mortgage-backed securities. SMBS are often structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. SMBS have greater market volatility than other types of U.S. government securities in which a Fund invests. A common type of SMBS has one class receiving some of the interest and all or most of the principal (the “principal only” class) from the mortgage pool, while the other class will receive all or most of the interest (the “interest only” class). The yield to maturity on an interest only class is extremely sensitive not only to changes in prevailing interest rates, but also to the rate of principal payments, including principal prepayments, on the underlying pool of mortgage assets, and a rapid rate of principal payment may have a material adverse effect on a Fund’s yield.
Inflation-Indexed Bonds: Certain Funds may purchase inflation-indexed bonds. Inflation-indexed bonds are fixed income securities whose principal value is adjusted periodically according to the rate of inflation. Two structures are common. The U.S. Treasury and certain other issuers use a structure that reflects inflation in the principal value of the bond. Other issuers pay out any inflation related accruals as part of a semiannual coupon. The value of inflation-indexed bonds is expected to change in
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SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS — September 30, 2020 — (unaudited) (continued)
response to changes in real interest rates. Real interest rates, in turn, are tied to the relationship between nominal interest rates (i.e., stated interest rates) and the rate of inflation. Therefore, if the rate of inflation rises at a faster rate than nominal interest rates, real interest rates (i.e., nominal interest rates minus inflation) might decline, leading to an increase in value of inflation-indexed bonds. In contrast, if nominal interest rates increase at a faster rate than inflation, real interest rates might rise, leading to a decrease in value of inflation-indexed bonds. There can be no assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in nominal interest rates, and short-term increases in inflation may lead to a decline in their value. Coupon payments received from inflation-indexed bonds are recorded in the Statements of Operations as interest income. In addition, any increase or decrease in the principal amount of an inflation-indexed bond will be recorded in the Statements of Operations as an increase or decrease to interest income, even though principal is not paid until maturity.
Repurchase Agreements: The Funds, along with other affiliated registered investment companies, pursuant to procedures adopted by the Board and applicable guidance from 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. In a repurchase agreement, the seller of a security agrees to repurchase the security at a mutually agreed-upon time and price, which reflects the effective rate of return for the term of the agreement. For repurchase agreements and joint repurchase agreements, the Trust’s custodian takes possession of the collateral pledged for investments in such repurchase agreements (“repo” or collectively “repos”). The underlying collateral is valued daily on a mark to market basis, plus accrued interest to ensure that the value, at the time the agreement is entered into, is equal to at least 102% of the repurchase price, including accrued interest. In the event of default of the obligation to repurchase, a Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by a Fund may be delayed or limited.
Securities Transactions, Investment Income, Expenses, Dividends and Distributions to Shareholders: Security transactions are recorded on a trade date basis. Interest income is accrued daily from settlement date 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 Trust is informed after the ex-dividend date. Paydown gains and losses on mortgage and asset-backed securities are recorded as components of interest income on the Statements of Operations. For financial statement purposes, the Funds amortize all premiums and accrete all discounts on fixed income securities.
Realized gains and losses on the sale of investments are calculated on the identified cost basis. 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 from the sale of foreign securities at various rates.
Income and expenses, other than class specific expenses, are allocated daily to each class of shares based upon the relative value of dividend-eligible shares after adjusting for the current capital share activity of the respective class. Realized and unrealized gains and losses are allocated daily to each class of shares based upon the relative value of outstanding shares after adjusting for the current capital share activity of the respective class.
Expenses common to all Funds are allocated among the Funds based upon relative net assets or other appropriate allocation methods. In all other respects, expenses are charged to each Fund as incurred on a specific identification basis.
Dividends from net investment income are accrued daily and paid monthly. Capital gain distributions, if any, are paid annually. The Funds record dividends and distributions to their shareholders on the ex-dividend date. The Funds reserve the right to declare and pay dividends less frequently than disclosed above, provided that the net realized capital gains and net investment income, if any, are paid at least annually.
The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from GAAP. 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 assets are not affected by these reclassifications.
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SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS — September 30, 2020 — (unaudited) (continued)
Each Fund is considered a separate entity for tax purposes and 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 capital gains on investments, to its shareholders. Each Fund also intends to distribute sufficient net investment income and net capital gains, if any, so that it will not be subject to excise tax on undistributed income and gains. Therefore, no federal income tax or excise tax provision is required.
Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained, assuming examination by tax authorities. Management has analyzed each Fund’s tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. The Funds are not aware of any tax provisions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months. The Funds file U.S. federal and certain state income tax returns. The Funds federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.
Foreign Currency Translation: The books and records of the Funds are maintained in U.S. dollars. Assets and liabilities denominated in foreign currencies and commitments under forward foreign currency contracts are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation.
The Funds do not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in the market prices of securities held at 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 located in the Statements of Operations include realized foreign exchange gains and losses from currency gains or losses between the trade and the 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 the other assets and liabilities arising as a result of changes in the exchange rates.
LIBOR Risk: A fund’s investments, payment obligations and financing terms may be based on floating rates, such as London Interbank Offer Rate (“LIBOR”), Euro Interbank Offered Rate and other similar types of reference rates (each, a “Reference Rate”). On July 27, 2017, the Chief Executive of the UK Financial Conduct Authority (“FCA”), which regulates LIBOR, announced that the FCA will no longer persuade nor require banks to submit rates for the calculation of LIBOR and certain other Reference Rates after 2021. Such announcement indicates that the continuation of LIBOR and other Reference Rates on the current basis cannot and will not be guaranteed after 2021. This announcement and any additional regulatory or market changes may have an adverse impact on a fund or its investments.
In advance of 2021, regulators and market participants are expected to work together to identify or develop successor Reference Rates. Additionally, prior to 2021, it is expected that market participants will focus on the transition mechanisms by which the Reference Rates in existing contracts or instruments may be amended, whether through market wide protocols, fallback contractual provisions, bespoke negotiations or amendments or otherwise. Nonetheless, the termination of certain Reference Rates presents risks to a fund. At this time, it is not possible to completely identify or predict the effect of any such changes, any establishment of alternative Reference Rates or any other reforms to Reference Rates that may be enacted in the UK or elsewhere. The elimination of a Reference Rate or any other changes or reforms to the determination or supervision of Reference Rates could have an adverse impact on the market for or value of any securities or payments linked to those Reference Rates and other financial obligations held by a fund or on its overall financial condition or results of operations. In addition, any substitute Reference Rate and any pricing adjustments imposed by a regulator or by counterparties or otherwise may adversely affect a fund’s performance and/or NAV.
New Accounting Pronouncements: In August 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-13 “Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement”. The ASU eliminates, modifies, and adds disclosure requirements for fair value measurements and is effective for fiscal years, and interim periods
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within those fiscal years, beginning after December 15, 2019. Adoption of the ASU had no material impact on the Funds.
Effective April 1, 2019, the Funds are subject to ASU 2017-08, “Premium Amortization on Purchased Callable Debt Securities”, which requires the premiums on certain purchased debt securities with non-contingent call features to be amortized to the earliest call date. The amortization period for callable debt securities purchased at a discount will not be impacted. Adoption of the ASU had no material impact on the Funds.
Note 3. Investment Advisory and Management Agreement, Distribution Agreement and Service Agreement
The Trust, on behalf of each Fund, has an Investment Advisory and Management Agreement (the “Agreement”) with SunAmerica. Under the Agreement, SunAmerica provides continuous supervision of a Fund’s portfolio and administers its corporate affairs, subject to general review by the Trustees. In connection therewith, SunAmerica furnishes the Funds with office facilities, maintains certain of the Funds’ books and records, and pays the salaries and expenses of all personnel, including officers of the Funds, who are employees of SunAmerica and its affiliates.
The Funds pay SunAmerica a monthly investment advisory and management fee calculated daily at the following annual percentages of each Fund’s average daily net assets:
Fund | Assets | Management Fees | ||||
U.S. Government Securities | $0 - $200 million | 0.650 | % | |||
> $200 million | 0.620 | |||||
> $400 million | 0.550 | |||||
Strategic Bond(1) | $0 - $350 million | 0.650 | ||||
> $350 million | 0.600 | |||||
Flexible Credit(2) | $0 - $200 million | 0.750 | ||||
> $200 million | 0.720 | |||||
> $400 million | 0.550 |
(1) | The Advisor contractually agreed to waive its advisory fee with respect to the AIG Strategic Bond Fund through July 31, 2021, and from year to year thereafter provided such continuance is agreed to by the Advisor and approved by a majority of the Disinterested Trustees, so that the advisory fee payable by the Fund to the Advisor under the agreement equals 0.38% on the first $350 million and 0.33% above $350 million of average daily net assets. |
(2) | The Advisor contractually agreed to waive its advisory fee with respect to the AIG Flexible Credit Fund through July 31, 2021, and from year to year thereafter provided such continuance is agreed to by the Advisor and approved by a majority of the Disinterested Trustees, so that the advisory fee payable by the Fund to the Advisor under the agreement equals 0.34% of average daily net assets. |
For the six months ended September 30, 2020 the amount of investment advisory fees waived for Strategic Bond Fund and Flexible Credit Fund were $430,696 and $526,676, respectively. These amounts are reflected in the Statement of Operations.
The organizations described below act as subadvisers to the Trust and certain of its Funds pursuant to Subadvisory Agreements with SAAMCo. Under the Subadvisory Agreements, the subadvisers manage the investment and reinvestment of the assets of the respective Funds for which they are responsible.
Each of the subadvisers is independent of SAAMCo and discharges its responsibilities subject to the policies of the Trust’s Trustees and the oversight and supervision of SAAMCo, which pays the subadvisers’ fees.
Subadviser | Fund | |||
PineBridge Investments, LLC | Strategic Bond | |||
Newfleet Asset Management, LLC | Flexible Credit |
SunAmerica has contractually agreed to waive fees and/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. For the purposes of waived fees and/or reimbursed expense calculations, annual Fund operating expenses shall not include extraordinary expenses (i.e., expenses that are unusual in nature and infrequent in occurrence, such as litigation), or acquired Fund fees and expenses, brokerage commissions and other transactional expenses relating to the purchase and sale of portfolio securities, interest, taxes and governmental fees, and other
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expenses not incurred in the ordinary course of a Fund’s business. The contractual fee waivers and expense reimbursements will continue indefinitely, subject to termination by the Trustees, including a majority of the Disinterested Trustees.
Fund | Percentage | |||
U.S. Government Securities Class A | 0.99 | % | ||
U.S. Government Securities Class C | 1.64 | |||
Strategic Bond Class A | 1.40 | |||
Strategic Bond Class B | 2.05 | |||
Strategic Bond Class C | 2.05 | |||
Strategic Bond Class W | 1.20 | |||
Flexible Credit Class A | 1.45 | |||
Flexible Credit Class C | 2.10 | |||
Flexible Credit Class W | 1.25 |
For the U.S. Government Securities Fund, any contractual waivers and/or reimbursements made by SunAmerica are subject to recoupment from the Fund within two years after the occurrence of the waivers and/or reimbursements, provided that the Fund is able to effect such payment to SunAmerica and remain in compliance with the expense limitations in effect at the time the waivers and/or reimbursements were made.
For the six months ended September 30, 2020, pursuant to the contractual expense limitations in the above tables SunAmerica
has waived and/or reimbursed expenses as follows:
Fund | Other Expenses Reimbursed | |||
U.S. Government Securities | $ | 122,761 | ||
Fund | Class Specific Expenses | |||
U.S. Government Securities Class A | $ | 147,416 | ||
U.S. Government Securities Class C | 29,144 |
At September 30, 2020, expenses previously waived or reimbursed by SunAmerica that are subject to recoupment and expire
during the time period indicated are as follows:
Other Expenses Reimbursed | ||||||||||||
Fund | March 31, 2021 | March 31, 2022 | September 30, 2022 | |||||||||
U.S. Government Securities | $ | 83,969 | $ | 213,542 | $ | 122,761 | ||||||
Class Specific Expenses Reimbursed | ||||||||||||
Fund | March 31, 2021 | March 31, 2022 | September 30, 2022 | |||||||||
U.S. Government Securities Class A | $ | 147,259 | $ | 295,607 | $ | 147,416 | ||||||
U.S. Government Securities Class C | 15,815 | 37,873 | 29,144 |
The Trust, on behalf of each Fund, has entered into a Distribution Agreement with AIG Capital Services, Inc. (“ACS” or “Distributor”), an affiliate of the Adviser. Each Fund has adopted a Distribution Plan on behalf of each Class (other than Class W shares of the Strategic Bond and Flexible Credit Funds), in accordance with the provisions of Rule 12b-1 under the 1940 Act (each, a “Plan,” and collectively, the “Plans”), hereinafter referred to as the “Class A Plan,” the “Class B Plan” and the “Class C Plan.” In adopting the Class A Plan, the Class B Plan and the Class C Plan, the Trustees determined that there was a reasonable likelihood that each such Plan would benefit the Trust 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.
The Class A, Class B and Class C Plans provide that the Trust, on behalf of the respective classes, shall pay the Distributor a distribution fee at an annual rate of up to 0.10%, 0.75% and 0.75%, of average daily net assets of such Fund’s Class A, Class B and Class C shares, respectively, 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
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NOTES TO FINANCIAL STATEMENTS — September 30, 2020 — (unaudited) (continued)
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 the Class A Plan, Class B Plan or Class C Plan may exceed the Distributor’s distribution costs as described above. Except for Class W shares of the Strategic Bond and Flexible Credit Funds, the Plans also provide that each class of shares of the Trust will also pay the Distributor an account maintenance fee at the annual rate of up to 0.25% of the aggregate average daily net assets of such class of shares to compensate the Distributor and securities firms for account maintenance activities. The Distributor does not receive or retain any distribution and/or account maintenance fees for any shares when the shareholder does not have a broker of record. For the six months ended September 30, 2020, ACS received fees as reflected in the Statements of Operations based on the aforementioned rates.
The Trust, on behalf of the Strategic Bond and Flexible Credit Funds, has entered into an Administrative and Shareholder Services Agreement with ACS, pursuant to which ACS is paid an annual fee of 0.15% of average daily net assets of Class W shares as compensation for providing additional shareholder services to Class W shareholders. The Distributor does not receive or retain any distribution and/or account maintenance fees for any shares when the shareholder does not have a broker of record. For the six months ended September 30, 2020, ACS earned fees as reflected in the Statements of Operations based on the aforementioned rate.
ACS receives sales charges on each Fund’s Class A shares, portions of which are reallowed to affiliated broker-dealers and non-affiliated broker-dealers. ACS also receives the proceeds of contingent deferred sales charges paid by investors in connection with certain redemptions of Class A, Class B and Class C shares. ACS has advised the Funds that for the six months ended September 30, 2020, the proceeds received from Class A sales (and paid out to affiliated and non-affiliated broker-dealers) and Class A, Class B and Class C redemptions were as follows:
Class A | Class B | Class C | ||||||||||||||||||||||
Fund | Sales Charges | Affiliated Broker-dealers | Non-affiliated Broker-dealers | Contingent Deferred Sales Charges | Contingent Deferred Sales Charges | Contingent Deferred Sales Charges | ||||||||||||||||||
U.S. Government Securities | $ | 19,145 | $ | 5,212 | $ | 10,770 | $ | — | $ | — | $ | 2,181 | ||||||||||||
Strategic Bond | 90,779 | 29,040 | 47,634 | — | 42,125 | 4,373 | ||||||||||||||||||
Flexible Credit | 81,586 | 2,101 | 65,348 | — | — | 2,212 |
The Trust has entered into a Service Agreement with AIG Fund Services, Inc. (“AFS”), an affiliate of the Adviser. Under the Service Agreement, AFS performs certain shareholder account functions by assisting the Funds’ transfer agent, DST Asset Manager Solutions, Inc. (“DST”) in connection with the services that it offers to the shareholders of the Funds. The Service Agreement permits the Funds to compensate AFS for services rendered, based upon an annual rate of 0.22% of average daily net assets, which is approved annually by the Trustees. For the six months ended September 30, 2020, the Funds incurred the following expenses which are included in transfer agent fees and expenses in the Statements of Operations to compensate AFS pursuant to the terms of the Service Agreement:
Fund | Expenses | Payable at September 30, 2020 | ||||||
U.S. Government Securities Class A | $ | 138,345 | $ | 22,620 | ||||
U.S. Government Securities Class C | 14,089 | 2,169 | ||||||
Strategic Bond Class A | 171,306 | 29,467 | ||||||
Strategic Bond Class B | 16,233 | 2,858 | ||||||
Strategic Bond Class C | 54,994 | 8,724 | ||||||
Strategic Bond Class W | 108,410 | 22,365 | ||||||
Flexible Credit Class A | 91,460 | 15,688 | ||||||
Flexible Credit Class C | 51,864 | 8,166 | ||||||
Flexible Credit Class W | 144,177 | 21,864 |
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NOTES TO FINANCIAL STATEMENTS — September 30, 2020 — (unaudited) (continued)
At September 30, 2020, AIG Active Allocation Fund and AIG Multi-Asset Allocation Fund, each a series of SunAmerica Series, Inc., owned a percentage of the outstanding shares of the following Funds:
Holder | ||||||||
Fund | AIG Active Allocation Fund | AIG Multi-Asset Allocation Fund | ||||||
U.S. Government Securities | 19.33 | % | 14.10 | % | ||||
Strategic Bond | 1.98 | 2.61 | ||||||
Flexible Credit | 2.77 | 3.20 |
Note 4. 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 September 30, 2020 were as follows:
Fund | Purchases of Investment Securities (Excluding U.S. Government Securities) | Sales of Investment Securities (Excluding U.S. Government Securities) | Purchase of U.S. Government Securities | Sales of U.S. Government Securities | ||||||||||||
U.S. Government Securities | $ | — | $ | — | $ | 15,128,625 | $ | 16,039,406 | ||||||||
Strategic Bond | 188,354,214 | 133,488,617 | 22,043,230 | 60,712,125 | ||||||||||||
Flexible Credit | 88,182,509 | 118,874,111 | — | — |
Note 5. Federal Income Taxes
The following details the tax basis of distributions as well as the components of distributable earnings. The tax basis components of distributable earnings differ from the amounts reflected in the Statements of Assets and Liabilities by temporary book/tax differences primarily arising from wash sales, post October capital losses, late year ordinary losses, distributions payable, straddle loss deferrals, amortization of premium/discount and treatment of defaulted securities.
Distributable Earnings For the year ended March 31, 2020 | Tax Distributions For the year ended March 31, 2020 | |||||||||||||||||||
Fund | Ordinary Income | Long-term Gains/Capital Loss Carryover | Unrealized Appreciation (Depreciation)* | Ordinary Income | Long-Term Capital Gains | |||||||||||||||
U.S. Government Securities | $ | 921,054 | $ | (19,742,337 | ) | $ | 13,055,374 | $ | 2,173,041 | $ | — | |||||||||
Strategic Bond | 486,947 | (31,190,479 | ) | (19,920,501 | ) | 10,676,277 | — | |||||||||||||
Flexible Credit | 1,218,253 | (13,499,858 | ) | (50,548,105 | ) | 17,458,208 | — |
* | Unrealized appreciation (depreciation) includes amounts for derivatives and other assets and liabilities denominated in foreign currency. |
As of March 31, 2020, for Federal income tax purposes, the Funds indicated below have capital loss carryforwards which are available to offset future capital gains, if any:
Unlimited | ||||||||
Fund | ST | LT | ||||||
U.S. Government Securities | $ | 13,850,838 | $ | 5,891,499 | ||||
Strategic Bond | 6,042,111 | 25,148,368 | ||||||
Flexible Credit | 554,788 | 12,945,070 |
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NOTES TO FINANCIAL STATEMENTS — September 30, 2020 — (unaudited) (continued)
Under the current law, capital losses realized after October 31 and late year ordinary losses may be deferred and treated as occurring on the first day of the following year. For the fiscal year ended March 31, 2020, the Funds elected to defer late year ordinary losses and post October capital losses as follows:
Fund | Deferred Late Year Ordinary Loss | Deferred Post-October Short-Term Capital Loss (Gain) | Deferred Post-October Long-Term Capital Loss (Gain) | |||||||||
U.S. Government Securities | $ | — | $ | — | $ | 37,441 | ||||||
Strategic Bond | — | (339,443 | ) | 851,487 | ||||||||
Flexible Credit | — | 927,533 | 7,483,900 |
At September 30, 2020, the amounts of aggregate unrealized gain (loss) and the cost of investment securities for federal tax purposes, including short-term securities and repurchase agreements, were as follows:
Fund | Aggregate Unrealized Gain | Aggregate Unrealized Loss | Unrealized Gain/(Loss) Net | Cost of Investments | ||||||||||||
U.S. Government Securities | $ | 12,411,936 | $ | (336,562 | ) | $ | 12,075,374 | $ | 124,509,805 | |||||||
Strategic Bond | 11,890,196 | (10,004,332 | ) | 1,885,864 | 351,208,158 | |||||||||||
Flexible Credit Bond | 5,211,168 | (19,243,404 | ) | (14,032,236 | ) | 265,939,857 |
Note 6. Capital Share Transactions
Transactions in capital shares of each class of each Fund were as follows:
U.S. Government Securities | ||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
For the six months ended September 30, 2020 (unaudited) | For the year ended March 31, 2020 | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||
Shares sold | 1,326,497 | $ | 13,024,532 | 2,586,535 | $ | 24,100,485 | ||||||||||||||||||||||||||
Reinvested dividends | 83,981 | 824,033 | 207,531 | 1,934,929 | ||||||||||||||||||||||||||||
Shares redeemed | (1,510,532 | ) | (14,824,053 | ) | (3,842,653 | ) | (35,899,452 | ) | ||||||||||||||||||||||||
Net increase (decrease) in shares outstanding before automatic conversion | (100,054 | ) | (975,488 | ) | (1,048,587 | ) | (9,864,038 | ) | ||||||||||||||||||||||||
Shares issued/(reaquired) upon automatic conversion | 13,467 | 132,282 | 15,094 | 139,280 | ||||||||||||||||||||||||||||
Net increase (decrease) | (86,587 | ) | $ | (843,206 | ) | (1,033,493 | ) | $ | (9,724,758 | ) | ||||||||||||||||||||||
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U.S. Government Securities | ||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
For the six months ended September 30, 2020 (unaudited) | For the year ended March 31, 2020 | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||
Shares sold | 383,833 | $ | 3,765,130 | 917,819 | $ | 8,709,707 | ||||||||||||||||||||||||||
Reinvested dividends | 4,880 | 47,840 | 7,718 | 71,973 | ||||||||||||||||||||||||||||
Shares redeemed | (356,150 | ) | (3,489,046 | ) | (553,203 | ) | (5,146,810 | ) | ||||||||||||||||||||||||
Net increase (decrease) in shares outstanding before automatic conversion | 32,563 | 323,924 | 372,334 | 3,634,870 | ||||||||||||||||||||||||||||
Shares issued/(reaquired) upon automatic conversion | (13,481 | ) | (132,282 | ) | (15,104 | ) | (139,280 | ) | ||||||||||||||||||||||||
Net increase (decrease) | 19,082 | $ | 191,642 | 357,230 | $ | 3,495,590 | ||||||||||||||||||||||||||
Strategic Bond | ||||||||||||||||||||||||||||||||
Class A | Class B | |||||||||||||||||||||||||||||||
For the six months ended September 30, 2020 (unaudited) | For the year ended March 31, 2020 | For the six months ended September 30, 2020 (unaudited) | For the year ended March 31, 2020 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 4,746,717 | $ | 16,097,750 | 10,309,167 | $ | 34,743,163 | 1,568,422 | $ | 5,298,550 | 3,336,380 | $ | 11,118,974 | ||||||||||||||||||||
Reinvested dividends | 693,739 | 2,349,929 | 1,493,539 | 5,029,334 | 51,995 | 176,095 | 113,560 | 381,983 | ||||||||||||||||||||||||
Shares redeemed | (4,128,058 | ) | (13,867,605 | ) | (13,182,469 | ) | (43,973,643 | ) | (1,303,967 | ) | (4,413,867 | ) | (3,778,634 | ) | (12,555,019 | ) | ||||||||||||||||
Net increase (decrease) in shares outstanding before automatic conversion | 1,312,398 | 4,580,074 | (1,379,763 | ) | (4,201,146 | ) | 316,450 | 1,060,778 | (328,694 | ) | (1,054,062 | ) | ||||||||||||||||||||
Shares issued/(reaquired) upon automatic conversion | 326,952 | 1,094,639 | 493,231 | 1,649,276 | (171,007 | ) | (568,141 | ) | (250,694 | ) | (832,069 | ) | ||||||||||||||||||||
Net increase (decrease) | 1,639,350 | $ | 5,674,713 | (886,532 | ) | $ | (2,551,870 | ) | 145,443 | $ | 492,637 | (579,388 | ) | $ | (1,886,131 | ) | ||||||||||||||||
Strategic Bond | ||||||||||||||||||||||||||||||||
Class C | Class W | |||||||||||||||||||||||||||||||
For the six months ended September 30, 2020 (unaudited) | For the year ended March 31, 2020 | For the six months ended September 30, 2020 (unaudited) | For the year ended March 31, 2020 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 2,305,066 | $ | 7,829,912 | 5,669,612 | $ | 19,212,709 | 18,771,576 | $ | 63,675,019 | 32,817,775 | $ | 109,353,277 | ||||||||||||||||||||
Reinvested dividends | 151,904 | 515,910 | 341,323 | 1,153,321 | 397,026 | 1,343,813 | 601,837 | 2,022,543 | ||||||||||||||||||||||||
Shares redeemed | (4,086,001 | ) | (13,904,962 | ) | (5,938,367 | ) | (20,000,269 | ) | (10,955,335 | ) | (36,135,302 | ) | (20,806,887 | ) | (69,465,170 | ) | ||||||||||||||||
Net increase (decrease) in shares outstanding before automatic conversion | (1,629,031 | ) | (5,559,140 | ) | 72,568 | 365,761 | 8,213,267 | 28,883,530 | 12,612,725 | 41,910,650 | ||||||||||||||||||||||
Shares issued/(reaquired) upon automatic conversion | (155,885 | ) | (526,498 | ) | (242,044 | ) | (817,207 | ) | — | — | — | — | ||||||||||||||||||||
Net increase (decrease) | (1,784,916 | ) | $ | (6,085,638 | ) | (169,476 | ) | $ | (451,446 | ) | 8,213,267 | $ | 28,883,530 | 12,612,725 | $ | 41,910,650 | ||||||||||||||||
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Flexible Credit | ||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
For the six months ended September 30, 2020 (unaudited) | For the year ended March 31, 2020 | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||
Shares sold | 2,077,098 | $ | 6,396,848 | 7,500,006 | $ | 24,765,601 | ||||||||||||||||||||||||||
Reinvested dividends | 562,006 | 1,746,501 | 1,437,578 | 4,721,251 | ||||||||||||||||||||||||||||
Shares redeemed | (2,762,211 | ) | (8,510,455 | ) | (18,575,282 | ) | (61,064,646 | ) | ||||||||||||||||||||||||
Net increase (decrease) in shares outstanding before automatic conversion | (123,107 | ) | (367,106 | ) | (9,637,698 | ) | (31,577,794 | ) | ||||||||||||||||||||||||
Shares issued/(reaquired) upon automatic conversion | 171,354 | 528,270 | 248,642 | 804,010 | ||||||||||||||||||||||||||||
Net increase (decrease) | 48,247 | $ | 161,164 | (9,389,056 | ) | $ | (30,773,784 | ) | ||||||||||||||||||||||||
Flexible Credit | ||||||||||||||||||||||||||||||||
Class C | Class W | |||||||||||||||||||||||||||||||
For the six months ended September 30, 2020 (unaudited) | For the year ended March 31, 2020 | For the six months ended September 30, 2020 (unaudited) | For the year ended March 31, 2020 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 488,626 | $ | 1,505,499 | 4,361,074 | $ | 14,483,436 | 8,863,513 | $ | 26,524,110 | 43,533,148 | $ | 144,105,349 | ||||||||||||||||||||
Reinvested dividends | 227,401 | 709,998 | 539,719 | 1,779,382 | 607,293 | 1,883,542 | 1,595,488 | 5,232,529 | ||||||||||||||||||||||||
Shares redeemed | (3,179,225 | ) | (9,928,281 | ) | (4,946,574 | ) | (16,081,944 | ) | (19,502,666 | ) | (59,710,345 | ) | (39,178,335 | ) | (124,104,435 | ) | ||||||||||||||||
Net increase (decrease) in shares outstanding before automatic conversion | (2,463,198 | ) | (7,712,784 | ) | (45,781 | ) | 180,874 | (10,031,860 | ) | (31,302,693 | ) | 5,950,301 | 25,233,443 | |||||||||||||||||||
Shares issued/(reaquired) upon automatic conversion | (170,249 | ) | (528,270 | ) | (247,238 | ) | (804,010 | ) | — | — | — | — | ||||||||||||||||||||
Net increase (decrease) | (2,633,447 | ) | $ | (8,241,054 | ) | (293,019 | ) | $ | (623,136 | ) | (10,031,860 | ) | $ | (31,302,693 | ) | 5,950,301 | $ | 25,233,443 | ||||||||||||||
Note 7. Line of Credit
The Trust, along with certain other funds managed by the Adviser, has access to a $75 million committed unsecured line of credit and a $50 million uncommitted unsecured line of credit. The committed and uncommitted lines of credit are renewable on an annual basis with State Street Bank and Trust Company (“State Street”), the Trust’s custodian. Prior to September 4, 2020, interest is payable on the committed line of credit at the higher of the Federal Funds Rate (but not less than zero) plus 125 basis points or the One-Month London Interbank Offered Rate (but not less than zero) plus 125 basis points and State Street’s discretionary bid rate on the uncommitted line of credit. The Trust, on behalf of each of the Funds, has paid State Street for its own account, such Fund’s ratable portion of an upfront fee in an amount equal to $25,000 in the aggregate for the uncommitted line of credit made available by State Street to certain other funds managed by the Adviser, which are also party to the uncommitted line of credit. There is also a commitment fee of 25 basis points per annum on the daily unused portion of the committed line of credit. Effective September 4, 2020, interest on each of the committed and uncommitted lines of credit is payable at a variable rate per annum equal to the Applicable Rate plus one and one quarter of one percent (1.25%). The Applicable Rate per annum shall be equal to the higher of (a) the Federal Funds Effective Rate on such date and (b) the Overnight Bank Funding Rate on such date, plus, in each case, 10 basis points. Notwithstanding anything to the contrary, if the Federal Funds Effective Rate or the Overnight Bank Funding Rate shall be less than zero, then the Federal Funds Effective Rate or the Overnight Bank Funding Rate, shall be deemed to be zero for the purposes of determining the rate. The Trust, on behalf of each of the Funds, has paid State Street for its own account, such Fund’s ratable portion of an upfront fee in an amount equal to
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NOTES TO FINANCIAL STATEMENTS — September 30, 2020 — (unaudited) (continued)
$40,000 in the aggregate for the uncommitted line of credit made available by State Street to certain other funds managed by the Adviser, which are also party to the uncommitted line of credit. There is also a commitment fee of 30 basis points per annum on the daily unused portion of the committed line of credit.
Borrowings under the line of credit will commence when the respective Fund’s cash shortfall exceeds $100,000.
For the six months ended September 30, 2020, the following Funds had borrowings:
Fund | Days Outstanding | Interest Charges | Average Debt Utilized | Weighted Average Interest | ||||||||||||
U.S. Government Securities | 4 | $ | 191 | $ | 1,200,000 | 1.43 | % | |||||||||
Strategic Bond | 4 | 91 | 575,000 | 1.42 | ||||||||||||
Flexible Credit | 58 | 13,757 | 5,973,276 | 1.44 |
At September 30, 2020, there were no borrowings outstanding.
Note 8. Interfund Lending Agreement
Pursuant to the exemptive relief granted by the Securities and Exchange Commission, the Funds are permitted to participate in an interfund lending program among investment companies advised by SunAmerica or an affiliate. The interfund lending program allows the participating Funds to borrow money from and lend 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 September 30, 2020, none of the Funds participated in this program.
Note 9. Investment Concentration
The Flexible Credit Fund’s investment in high yield securities, whether rated or unrated, may be considered speculative and subject to greater market fluctuations and risk of loss of income and principal than lower-yielding, higher-rated, fixed-income securities. The risk of loss due to default by the issuer may be significantly greater for the holders of high yield securities, because such securities are generally unsecured and are often subordinated to other creditors of the issuer.
The Flexible Credit Fund and Strategic Bond Fund invest in participations and assignments, or act as a party to the primary lending syndicate of a variable rate senior loan interest to United States corporations, partnerships, and other entities. If the lead lender in a typical lending syndicate becomes insolvent, enters receivership or, if not FDIC insured, enters into bankruptcy, a Fund may incur certain costs and delays in receiving payment, or may suffer a loss of principal and/or interest. When a Fund purchases a participation of a senior loan interest, the Fund typically enters into a contractual agreement with the lender or other third party selling the participation but not with the borrower directly. As such, a Fund is subject to the credit risk of the borrower, selling participant, lender or other persons positioned between the Funds and the borrower.
Each Fund may invest in obligations issued by agencies and instrumentalities of the U.S. Government that may vary in the level of support they receive from the government. The government may choose not to provide financial support to government sponsored agencies or instrumentalities if it is not legally obligated to do so, and if the issuer defaulted, a fund holding securities of such issuer might not be able to recover its investment from the U.S. Government. As a result of the U.S. Government Fund’s concentration in such investments, it may be subject to risks associated with U.S. Government agencies or instrumentalities.
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NOTES TO FINANCIAL STATEMENTS — September 30, 2020 — (unaudited) (continued)
Note 10. Unfunded Loan Commitments
At September 30, 2020, AIG Strategic Bond Fund had the following unfunded loan commitments which could be extended at the option of the Borrower:
Borrower | Type | Maturity Date | Principal Amount | Value | ||||||||||||
Hi-Crush, Inc. | DIP Delayed Draw | 01/14/2021 | $ | 108,671 | $ | 108,671 | ||||||||||
Intelsat Jackson Holdings S.A. | DIP | 09/30/2020 | 19,009 | 19,278 |
Note 11. Other Matters
An outbreak of respiratory disease caused by a novel coronavirus was first detected in China and subsequently spread internationally. This coronavirus has resulted in closing borders, enhanced health screenings, healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this coronavirus may last for an extended period of time including through the issue date of these financial statements and has resulted in substantial market volatility and may result in a significant economic downturn.
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STATEMENT REGARDING LIQUIDITY RISK MANAGEMENT PROGRAM — (unaudited)
Pursuant to Rule 22e-4 under the 1940 Act, the Funds have adopted a liquidity risk management program. SunAmerica Asset Management, LLC (the “Adviser” or “SunAmerica”), the investment adviser to the Trust, has been designated by the Board to administer the Funds’ liquidity risk management program (the “Program”). The Adviser has appointed a Liquidity Risk Management Committee (the “Committee”) comprised of certain officers as well as certain personnel of the Adviser. The Committee is subject to the oversight of the Adviser. The Adviser and the Committee are referred to collectively herein as the “Program Administrator.” The Program is designed to assess, manage and periodically review each Fund’s liquidity risk, based on factors specific to the circumstances of each Fund. “Liquidity risk” means the risk that a Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interests in the Fund. During the period, the Program Administrator provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation.
During the period covered by the liquidity Program report to the Board, the Program supported each Fund’s ability to honor redemption requests timely and the Adviser’s management of each Fund’s liquidity profile, including during periods of market volatility and net redemptions. The Program Administrator reported that it has reviewed the Program and believes that the Program is reasonably designed to assess and manage the liquidity risk of each Fund, that the Program has been effectively implemented to monitor and respond to liquidity developments (where necessary) and is operating effectively, and that the Program addresses potential liquidity risks in connection with the management of the Funds. Furthermore, the Program Administrator reported that each Fund, except for the AIG Flexible Credit Fund, operated as a “Primarily Highly Liquid Fund” during the review period, and therefore, did not have to comply with the Highly Liquid Investment Minimum (“HLIM”) requirements. The AIG Flexible Credit Fund, due to the nature of the Fund’s investment strategies and the related market, trading, and investment-specific factors such as holdings in bank loans, was required to comply with the HLIM requirements, which the Program Administrator determined to be 4% of net assets. Finally, the Program Administrator reported that each Fund had no breaches of the limit on illiquid investments, and the AIG Flexible Credit Fund had no breaches of its HLIM where the percentage of the Fund’s net assets invested in highly liquid investments is less than the Fund’s HLIM and therefore, no Board notification or regulatory filings were required.
There can be no assurance that the Program will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.
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APPROVAL OF ADVISORY AGREEMENTS — September 30, 2020 — (unaudited)
Approval of the Investment Advisory and Management Agreement and Subadvisory Agreements
The Board of Trustees (the “Board” the members of which are referred to as “Trustees”) of SunAmerica Income Funds (the “Trust”), including the Trustees who are not “interested persons,” as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Trustees”), of the Trust or its separate series (each, a “Fund,” and collectively, the “Funds”), SunAmerica Asset Management, LLC (“SunAmerica”), PineBridge Investments LLC (“PineBridge”) or Newfleet Asset Management, LLC (“Newfleet,” and together with PineBridge, the “Subadvisers”), approved the continuation of the Investment Advisory and Management Agreement between the Trust, on behalf of the Funds, and SunAmerica (the “Advisory Agreement”) for a one-year period ending June 30, 2021 at a meeting held on June 2-3, 2020 (the “Meeting”).1 The Trust currently consists of the following three separate Funds: AIG Flexible Credit Fund (“Flexible Credit Fund”), AIG Strategic Bond Fund (“Strategic Bond Fund”) and AIG U.S. Government Securities Fund (“U.S. Government Securities Fund”).
At the Meeting, the Board, including the Independent Trustees, also approved the continuation of the Subadvisory Agreement between SunAmerica and PineBridge with respect to the Strategic Bond Fund and the Subadvisory Agreement between SunAmerica and Newfleet with respect to the Flexible Credit Fund (the “Subadvisory Agreements” and together with the Advisory Agreement, the “Agreements”), each for a one-year period ending June 30, 2021.
In accordance with Section 15(c) of the 1940 Act, the Board requested, and SunAmerica and the Subadvisers provided, materials relating to the Board’s consideration of whether to approve the continuation of the Agreements. These materials included, as applicable: (a) a summary of the services provided or to be provided, as applicable, by SunAmerica and its affiliates to the Funds and by the Subadvisers; (b) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent third-party provider of mutual fund data, on fees and expenses of the Funds, and the investment performance of the Funds as compared with a peer group of funds, along with fee and performance data with respect to the Funds and any other mutual funds or other accounts advised or subadvised by SunAmerica or the Subadvisers with similar investment objectives and/or strategies, as applicable; (c) information on the profitability of SunAmerica and its affiliates, and a discussion relating to indirect benefits; (d) information relating to economies of scale; (e) information about SunAmerica’s general compliance policies and procedures and the services it provides in connection with its oversight of subadvisers; (f) information about SunAmerica’s and the Subadvisers’ risk management processes; (g) information regarding brokerage and soft dollar practices; and (h) information about the key personnel of SunAmerica and its affiliates, and the Subadvisers, who are involved in the investment management, administration, compliance and risk management activities with respect to the Funds, as well as current and projected staffing levels and compensation practices.
In determining whether to approve the continuation of the Agreements, the Board, including the Independent Trustees, considered at the Meeting, and from time to time as appropriate, factors it deemed relevant, including the following information:
Nature, Extent and Quality of Services Provided by SunAmerica and the Subadvisers. The Board, including the Independent Trustees, considered the nature, extent and quality of services provided by SunAmerica. The Board noted that the services include acting as investment manager and adviser to the Funds, managing the daily business affairs of the Funds, and obtaining and evaluating economic, statistical and financial information to formulate and implement investment policies. Additionally, the Board observed that SunAmerica provides office space, bookkeeping, accounting, legal, and compliance, clerical and administrative services and has authorized its officers and employees, if elected, to serve as officers or trustees of the Trust without compensation. The Board also noted that SunAmerica is responsible for monitoring and reviewing the activities of affiliated and unaffiliated third-party service providers, including the Subadvisers. In addition to the quality of the advisory services provided by SunAmerica, the Board considered the quality of the administrative and other services provided by SunAmerica to the Funds pursuant to the Advisory Agreement. The Board further considered the significant risks assumed by SunAmerica in connection with the services provided to the Funds including entrepreneurial risk in sponsoring new funds and ongoing risks such as operational, reputational, liquidity, litigation, regulatory and compliance risks with respect to all Funds.
1 | On March 25, 2020, as a result of health and safety measures put in place to combat the global COVID-19 pandemic, the Securities and Exchange Commission issued an exemptive order (the “Order”) pursuant to Sections 6(c) and 38(a) of the 1940 Act, that temporarily exempts registered investment management companies from the in-person voting requirements under the 1940 Act, subject to certain requirements, including that votes taken pursuant to the Order are ratified at the next in-person meeting. The Board determined that reliance on the Order was necessary or appropriate due to the circumstances related to current or potential effects of COVID-19 and therefore, the June meeting was held telephonically in reliance on the Order. |
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APPROVAL OF ADVISORY AGREEMENTS — September 30, 2020 — (unaudited) (continued)
In connection with the services provided by SunAmerica, the Board analyzed the structure and duties of SunAmerica’s fund administration, accounting, operations, legal and compliance departments and concluded that they were adequate to meet the needs of the Funds. The Board also reviewed the personnel responsible for providing advisory services to the Funds and other key personnel of SunAmerica, in addition to current and projected staffing levels and compensation practices. The Board concluded, based on its experience and interaction with SunAmerica, that: (i) SunAmerica would continue to be able to retain quality investment and other personnel; (ii) SunAmerica has exhibited a high level of diligence and attention to detail in carrying out its advisory and other responsibilities under the Advisory Agreement; (iii) SunAmerica has been responsive to requests of the Board; and (iv) SunAmerica has kept the Board apprised of developments relating to the Funds and the industry in general. The Board concluded that the nature and extent of services provided under the Advisory Agreement were reasonable and appropriate in relation to the management fee and that the quality of services continues to be high.
The Board also considered SunAmerica’s reputation and long-standing relationship with the Funds and considered the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of types of mutual funds and shareholder services. The Board considered SunAmerica’s experience in providing management and investment advisory and administrative services to advisory clients and noted that as of March 31, 2020, SunAmerica managed, advised and/or administered approximately $71.8 billion in assets. In addition, the Board considered SunAmerica’s code of ethics and its commitment to compliance generally and with respect to its management and administration of the Funds. The Board also considered SunAmerica’s risk management processes. The Board also considered the performance of certain portions of the business continuity plan which have been invoked in response to the COVID-19 pandemic. The Board further observed that SunAmerica has developed internal procedures for monitoring compliance with the investment objectives, policies and restrictions of the Funds as set forth in the Funds’ prospectuses. The Board also reviewed SunAmerica’s compliance and regulatory history and noted that there were no material legal, regulatory or compliance issues that would potentially impact SunAmerica in effectively serving as the investment adviser to the Funds.
The Board also considered the nature, extent and quality of services provided by each Subadviser to the applicable Funds. The Board observed that the Subadvisers are responsible for providing day-to-day investment management services, including investment research, advice and supervision, and determining which securities will be purchased or sold by the Fund that each Subadviser manages, subject to the oversight and review of SunAmerica. The Board reviewed each Subadviser’s history, structure, size, visibility and resources, which are needed to attract and retain highly qualified investment professionals. The Board reviewed the personnel who are responsible for providing subadvisory services to the Funds, and other key personnel of each Subadviser, in addition to current and projected staffing levels and compensation practices, and concluded, based on its experience with the Subadvisers, that each Subadviser: (i) has been able to retain high quality portfolio managers and other investment personnel; (ii) has exhibited a high level of diligence and attention to detail in carrying out its responsibilities under the applicable Subadvisory Agreement; and (iii) has been responsive to requests of the Board and of SunAmerica. In addition, the Board considered each Subadviser’s code of ethics and risk management processes. The Board further observed that each Subadviser has developed internal policies and procedures for monitoring compliance with the investment objectives, policies and restrictions of the Funds as set forth in the Funds’ prospectuses. The Board also reviewed each Subadviser’s compliance and regulatory history and noted that there were no material legal, regulatory or compliance issues that would potentially impact the Subadvisers from effectively serving as Subadvisers to the Funds. The Board concluded that the nature and extent of services provided by each Subadviser under the respective Subadvisory Agreement were reasonable and appropriate in relation to the subadvisory fee and that the quality of services continues to be high.
Investment Performance. The Board, including the Independent Trustees, also considered the investment performance of SunAmerica and the Subadvisers with respect to the Funds, as applicable. In connection with its review, the Board received and reviewed information regarding the investment performance of the Funds as compared to each Fund’s peer group (“Peer Group”) and/or peer universe (“Peer Universe”) as independently determined by Broadridge and to an appropriate index or combination of indices, including the Funds’ benchmarks. The Board was provided with a description of the methodology used by Broadridge to select the funds in each Peer Group and Peer Universe.
The Board noted that performance information was for the periods ended March 31, 2020. The Board also noted that it regularly reviews the performance of the Funds throughout the year. The Board further noted that, while it monitors performance of the Funds closely, it generally attaches more importance to performance over relatively long periods of time, typically three to five years. The Board noted that while it found the data provided by Broadridge generally useful, it recognized its limitations, including in particular that the data may vary depending on the end date selected and that the results of performance comparisons may vary depending on the selection of the peer group.
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APPROVAL OF ADVISORY AGREEMENTS — September 30, 2020 — (unaudited) (continued)
Flexible Credit Fund. The Board considered that the Fund’s performance was below the median of its Peer Group for the one- and three-year periods and above the median of its Peer Group for the five-year period. The Board also considered that the Fund’s performance was below the median of its Peer Universe for the one-, three- and five-year periods. The Board further considered that the Fund underperformed its Broadridge Index for the one- and three-year periods and outperformed its Broadridge Index for the five-year period. The Board took into account management’s discussion of the Fund’s performance, including the impact of market conditions on the Fund’s performance, and concluded that the Fund’s performance was being appropriately monitored.
Strategic Bond Fund. The Board considered that the Fund’s performance was above the median of its Peer Group for the one- and three-year periods and below the median of its Peer Group for the five-year period. The Board also noted that the Fund’s performance was above the median of its Peer Universe for the one-, three- and five-year periods. The Board further noted that the Fund outperformed its Broadridge Index for the one- and three-year periods and equaled its Broadridge Index for the five-year period. The Board noted management’s discussion of the Fund’s performance and concluded that the Fund’s overall performance was satisfactory.
U.S. Government Securities Fund. The Board considered that the Fund’s performance was above the median of its Peer Group for the one- and three-year periods and below the median of its Peer Group for the five-year period. The Board also considered that the Fund’s performance was above the median of its Peer Universe for the one-year period and below the median of its Peer Universe for the three- and five-year periods. The Board further considered that the Fund underperformed its Broadridge Index for the one-, three- and five-year periods. The Board noted management’s discussion of the Fund’s performance and concluded that the Fund’s overall performance was satisfactory.
Consideration of the Management Fees and Subadvisory Fee and the Cost of the Services and Profits to be Realized by SunAmerica, the Subadvisers and their Affiliates from the Relationship with the Funds. The Board, including the Independent Trustees, received and reviewed information regarding the fees paid by the Funds to SunAmerica pursuant to the Advisory Agreement and the fees to be paid by SunAmerica to the Subadvisers pursuant to the Subadvisory Agreements. The Board examined this information in order to determine the reasonableness of the fees in light of the nature and quality of services to be provided and any potential additional benefits to be received by SunAmerica, the Subadvisers or their affiliates in connection with providing such services to the Funds.
To assist in analyzing the reasonableness of the management fee for each of the Funds, the Board received reports independently prepared by Broadridge. The reports showed comparative fee information for each Fund’s Peer Group and/or Peer Universe as determined by Broadridge, including rankings within each category. In considering the reasonableness of the management fee to be paid by each Fund to SunAmerica, the Board reviewed a number of expense comparisons, including: (i) contractual and actual management fees; and (ii) actual total operating expenses. In considering each Fund’s total operating expenses, the Board analyzed the level of fee waivers and expense reimbursements and the net expense caps contractually agreed upon by SunAmerica with respect to each Fund. The Board further considered that, unlike the funds in each Peer Group and Peer Universe, the fee waivers and/or reimbursements being made by SunAmerica with respect to the Funds are only reflected in the total expenses category of the Broadridge reports, rather than also being reflected as specific management fee waivers in the actual management fee category of the Broadridge reports. As a result, the Board took into account that the actual management fees presented by Broadridge for the funds in each Peer Group and Peer Universe may appear lower on a relative basis. The Board also considered the various expense components of the Funds and compared each Fund’s net expense ratio (taking into account the contractual fee caps and waivers) to those of other funds within its Peer Group and/or Peer Universe as a guide to help assess the reasonableness of the management fee for the Funds. The Board acknowledged that it was difficult to make precise comparisons with other funds in the Peer Groups and Peer Universes since the exact nature of services provided under the various fund agreements is often not apparent. The Board noted, however, that the comparative fee information provided by Broadridge as a whole was useful in assessing whether SunAmerica was providing services at a cost that was competitive with other, similar funds.
The Board also considered the management fees received by SunAmerica with respect to other mutual funds and accounts with similar investment strategies to the Funds, to the extent applicable. The Board noted, however, that the mutual funds identified as similar to the Funds are sold only in the variable annuity market and, accordingly, are in different Broadridge classifications, with peer groups consisting of funds underlying variable insurance products. The Board then noted the management fees paid by the Funds were reasonable as compared to the fees SunAmerica was receiving from other mutual funds and accounts for which it serves as adviser or subadviser.
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APPROVAL OF ADVISORY AGREEMENTS — September 30, 2020 — (unaudited) (continued)
The Board also received and reviewed information regarding the fees paid by SunAmerica to the Subadvisers pursuant to the Subadvisory Agreements. To assist in analyzing the reasonableness of the subadvisory fees, the Board received a report independently prepared by Broadridge. The report showed comparative fee information of the Funds’ Peer Groups and/or Peer Universes that the Board used as a guide to help assess the reasonableness of the subadvisory fees. The Board noted that Peer Group information as a whole was useful in assessing whether the Subadvisers were providing services at a cost that was competitive with other similar funds. The Board also considered that the subadvisory fees are paid by SunAmerica out of its management fee and not by the Funds, and that subadvisory fees may vary widely within a Peer Group for various reasons, including market pricing demands, existing relationships, experience and success, and individual client needs. The Board further considered the amount of subadvisory fees paid out by SunAmerica and the amount of the management fees which it retained and determined that these amounts were reasonable in light of the services performed by SunAmerica and the Subadvisers, respectively.
The Board also considered fees received by the Subadvisers with respect to other mutual funds and accounts with similar investment strategies to the Funds for which they serve as adviser or subadviser, to the extent applicable. The Board then noted that the subadvisory fee paid by SunAmerica to the Subadvisers were reasonable as compared to fees the Subadvisers receive for other mutual funds and accounts for which it serves as adviser or subadviser.
Flexible Credit Fund. The Board considered that the Fund’s actual management fees were below the medians of its Peer Group and Peer Universe. The Board also considered that the Fund’s total expenses were below the medians of its Peer Group and Peer Universe. The Board noted that the Fund’s advisory fee contains breakpoints and further noted management’s discussion regarding the Fund’s expenses. The Board also took into account previous actions to reduce Fund expenses through fee waivers.
Strategic Bond Fund. The Board considered that the Fund’s actual management fees were below the medians of its Peer Group and Peer Universe. The Board also considered that the Fund’s total expenses were above the medians of its Peer Group and Peer Universe. The Board noted that the Fund’s advisory fee contains breakpoints and further noted management’s discussion regarding the Fund’s expenses. The Board also took into account previous actions to reduce Fund expenses through fee waivers.
U.S. Government Securities Fund. The Board considered that the Fund’s actual management fees were above the medians of its Peer Group and Peer Universe. The Board also considered that the Fund’s total expenses were equal to the median of its Peer Group and above the median of its Peer Universe. The Board noted that the Fund’s advisory fee contains breakpoints and further noted management’s discussion regarding the Fund’s expenses.
Profitability. The Board also considered SunAmerica’s profitability and the benefits SunAmerica and its affiliates received from its relationship with the Funds. The Board received and reviewed financial statements relating to SunAmerica’s financial condition and profitability with respect to the services it provided the Funds and considered how profit margins could affect SunAmerica’s ability to attract and retain high quality investment professionals and other key personnel. The Board was also provided with a profitability analysis that detailed the revenues earned and the expenses incurred by SunAmerica and its affiliates that provide services to the Funds on a Fund by Fund basis, as well as an Investment Management Profitability Analysis prepared by an independent information service, Broadridge. The Board also considered the contractual fee waivers and/or expense reimbursements agreed to by SunAmerica.
The Board considered the profitability of SunAmerica under the Advisory Agreement, including the amount of management fees it retained after payment to the Subadvisers, and considered the profitability of SunAmerica’s affiliates under the Rule 12b-1 Plans, Service Agreements, and Administrative and Shareholder Services Agreements. Additionally, the Board considered whether SunAmerica, the Subadvisers and their affiliates received any indirect benefits from the relationship with the Funds. Specifically, the Board observed that AIG Federal Savings Bank, an affiliate of SunAmerica serves as custodian with respect to certain shareholder retirement accounts that are administered by SunAmerica and receives a fee payable by the qualifying shareholders. The Board further considered whether there were any collateral or “fall-out” benefits that SunAmerica and its affiliates may derive as a result of their relationship with the Funds. The Board noted that SunAmerica believes that any such benefits are de minimis and do not impact the reasonableness of the management fees.
The Board also reviewed the Subadvisers’ financial statements and/or other information and considered whether the Subadvisers had the financial resources necessary to attract and retain high quality investment management personnel and to provide a high quality of services.
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APPROVAL OF ADVISORY AGREEMENTS — September 30, 2020 — (unaudited) (continued)
The Board concluded that SunAmerica and the Subadvisers had the financial resources necessary to perform their obligations under the Agreements and to continue to provide the Funds with the high quality services that they had provided in the past. The Board also concluded that the management fee and subadvisory fee were reasonable in light of the factors discussed above.
Economies of Scale. The Board, including the Independent Trustees, considered whether the shareholders would benefit from economies of scale and whether there was potential for future realization of economies with respect to the Funds. The Board considered that as a result of being part of the AIG fund complex, the Funds share common resources and may share certain expenses, and if the size of the complex increases, each Fund could incur lower expenses than they otherwise would achieve as stand-alone entities. The Board also took into account that each of the Funds had management fee arrangements that included breakpoints that will adjust the fee downward as the size of the Fund increases, thereby allowing the shareholders to participate in any economies of scale. The Board further noted that SunAmerica has agreed to contractually cap the total annual operating expenses of each class of the Funds, at certain levels. The Board observed that those expense caps benefited shareholders by limiting total fees even in the absence of breakpoints. The Board concluded that the Funds’ management fee structure was reasonable and that it would continue to review fees in connection with the renewal of the Advisory Agreement, including whether the implementation of additional breakpoints would be appropriate in the future due to an increase in asset size or otherwise.
The Board noted that the Subadvisory Agreements included breakpoints, but did not review specific information regarding whether there have been economies of scale with respect to the Subadvisers’ management of the Funds because it regards that information as less relevant at the subadviser level since SunAmerica, and not the Funds, is responsible for paying the subadvisory fees. Rather, the Board considered information regarding economies of scale in the context of the renewal of the Advisory Agreement.
Other Factors. In consideration of the Agreements, the Board also received information regarding SunAmerica’s and the Subadvisers’ brokerage and soft dollar practices. The Board considered that SunAmerica and the Subadvisers are responsible for decisions to buy and sell securities for the applicable Funds, selection of broker-dealers and negotiation of commission rates. The Board noted that it receives reports from SunAmerica and from an independent third party which include information on brokerage commissions and execution throughout the year. The Board also considered the benefits SunAmerica and the Subadvisers derive from their soft dollar arrangements, including arrangements under which brokers provide brokerage and/or research services to SunAmerica and/or the Subadvisers in return for allocating brokerage; however, the Board noted that the securities in which the Funds invest are traded primarily in the over-the-counter market on a “net” basis with dealers acting as principal for their own accounts without a stated commission (although the price of the security usually includes a profit to the dealer) and, therefore, the Funds generally do not incur brokerage commissions. Accordingly, the Board observed that SunAmerica and the Subadvisers typically would not receive soft dollar benefits in return for allocating the Funds’ brokerage transactions. The Board further observed that when making purchases of new issues with fixed underwriting fees, SunAmerica or the Subadvisers may designate the use of broker-dealers who have agreed to provide certain statistical, research and other information.
Conclusion. After a full and complete discussion, the Board approved the Agreements, each for a one-year period ending June 30, 2021. Based upon their evaluation of all these factors in their totality, the Board, including the Independent Trustees, was satisfied that the terms of the Agreements were fair and reasonable and in the best interests of the Funds and the Funds’ shareholders. In arriving at a decision to approve the Agreements, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and each Independent Trustee may have attributed different weights to different factors. The Independent Trustees were also assisted by the advice of independent legal counsel in making this determination.
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Harborside 5
185 Hudson Street, Suite 3300
Jersey City, NJ 07311
Trustees Richard W. Grant Peter A. Harbeck Dr. Judith L. Craven Stephen J. Gutman Eileen A. Kamerick
Officers John T. Genoy, President Sharon French, Executive Vice President James Nichols, Vice President Christopher C. Joe, Chief Compliance Officer Gregory N. Bressler, Secretary Kathleen Fuentes, Chief Legal Officer and Assistant Secretary Gregory R. Kingston, Treasurer Donna McManus, Vice President and Assistant Treasurer Shawn Parry, Vice President and Assistant Treasurer Matthew J. Hackethal, Anti-Money Laundering Compliance Officer
Investment Adviser SunAmerica Asset Management, LLC Harborside 5 185 Hudson Street, Suite 3300 Jersey City, NJ 07311
Distributor AIG Capital Services, Inc. Harborside 5 185 Hudson Street, Suite 3300 Jersey City, NJ 07311
Shareholder Servicing Agent AIG Fund Services, Inc. Harborside 5 185 Hudson Street, Suite 3300 Jersey City, NJ 07311
Custodian State Street Bank and Trust Company One Lincoln Street Boston, MA 02111
Transfer Agent DST Asset Manager Solutions, Inc. 303 W 11th Street Kansas City, MO 64105 | VOTING PROXIES ON TRUST PORTFOLIO SECURITIES A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in a Fund’s portfolio, which is available in the Trust’s Statement of Additional Information, may be obtained without charge upon request, by calling (800) 858-8850. The information is also available from the EDGAR database on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov.
DELIVERY OF SHAREHOLDER DOCUMENTS The Funds have adopted a policy that allows them to send only one copy of a Fund’s prospectus, proxy material, annual report and semi-annual report (the “shareholder documents”) to shareholders with multiple accounts residing at the same “household.” This practice is called householding and reduces Fund expenses, which benefits you and other shareholders. Unless the Funds receive instructions to the contrary, you will only receive one copy of the shareholder documents. The Funds will continue to household the shareholder documents indefinitely, until we are instructed otherwise. If you do not wish to participate in householding please contact Shareholder Services at (800) 858-8850 ext. 6010 or send a written request with your name, the name of your fund(s) and your account number(s) to AIG Funds, P.O. Box 219186, Kansas City MO, 64121-9186. We will resume individual mailings for your account within thirty (30) days of receipt of your request. | DISCLOSURE OF QUARTERLY PORTFOLIO HOLDINGS The Trust is required to file its complete schedule of portfolio holdings quarterly with the U.S. Securities and Exchange Commission on Form N-PORT. The Trusts’ Forms N-PORT are available on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov.
PROXY VOTING RECORD ON SUNAMERICA INCOME FUNDS Information regarding how the Funds voted proxies relating to securities held in the Funds 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 Funds is authorized only in connection with a currently effective prospectus, setting forth details of the Funds, 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. |
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Go Paperless!!
Did you know that you have the option to
receive your shareholder reports online?
By choosing this convenient service, you will no longer receive paper copies of Fund documents such as annual reports, semi-annual reports, prospectuses and proxy statements in the mail. Instead, you are provided with quick and easy access to this information via the Internet.
Why Choose Electronic Delivery?
It’s Quick — Fund documents will be received faster than via traditional mail.
It’s Convenient — Elimination of bulky documents from personal files.
It’s Cost Effective — Reduction of your Fund’s printing and mailing costs.
To sign up for electronic delivery, follow
these simple steps:
1 | Go to www.aig.com/funds | |
2 | Click on the link to “Go Paperless!!” |
The email address you provide will be kept strictly confidential. Once your enrollment has been processed, you will begin receiving email notifications when anything you receive electronically is available online.
You can return to www.aig.com/funds at any time to change your email address, edit your preferences or to cancel this service if you choose to resume physical delivery of your Fund documents.
Please note - this option is only available to accounts opened through the Funds.
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For information on receiving this report online, see inside back cover.
AIG Funds are advised by SunAmerica Asset Management, LLC (SAAMCo) and distributed by AIG Capital Services, Inc. (ACS), Member FINRA. Harborside 5, 185 Hudson Street, Suite 3300, Jersey City, NJ 07311, 800-858-8850. SAAMCo and ACS are members of American International Group, Inc. (AIG).
This fund report must be preceded by or accompanied by a prospectus.
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 Funds Sales Desk at 800-858-8850, ext. 6003, or at aig.com/funds. Read the prospectus carefully before investing.
aig.com/funds
INSAN - 9/19
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Item 2. Code | of Ethics. |
Not applicable.
Item 3. Audit | Committee Financial Expert. |
Not applicable.
Item 4. Principal | Accountant Fees and Services. |
Not applicable.
Item 5. Audit | Committee of Listed Registrants. |
Not applicable.
Item 6. Investments. |
Included in Item 1 to the Form.
Item 7. Disclosure | of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
Item 8. Portfolio | Managers of Closed-End Management Investment Companies. |
Not applicable.
Item 9. Purchases | of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10. Submission | of Matters to a Vote of Security Holders. |
There were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees that were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 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 in 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 most recent fiscal half year that has materially affected, or is reasonably likely to materially affect, the registrant’s internal contro1 over financial reporting. |
Item 12. Disclosure | of Securities Lending Activities for Closed-End Management Investment Companies. |
Not applicable.
Item 13. Exhibits. |
(a) | (1) Not applicable. |
(3) Not applicable. |
(4) Not applicable. |
(b) |
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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 Income Funds | ||
By: | /s/ John T. Genoy | |
John T. Genoy | ||
President |
Date: December 8, 2020
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: December 8, 2020
By: | /s/ Gregory R. Kingston | |
Gregory R. Kingston | ||
Treasurer |
Date: December 8, 2020