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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: March 31, 2021
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Item 1. Reports to Stockholders
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ANNUAL REPORT 2021
SUNAMERICA
Income Funds
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 annual report finds you and yours safe and well during these persistently 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 annual update for the SunAmerica Income Funds (the “Income Funds”) for the 12-month period ended March 31, 2021. From a broad perspective, it was a period wherein fixed income market performance was primarily driven by economic growth expectations, monetary and fiscal stimulus measures, and geopolitical events, including efforts to stem the COVID-19 pandemic. For the annual period overall, the Bloomberg Barclays U.S. Aggregate Bond Index*, a broad measure of the U.S. fixed income market, returned 0.71%.
In the second quarter of 2020, when the 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 included 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.
Global government bond yields ended the fourth quarter of 2020 mixed. Yield curves in the dollar-bloc economies, including the U.S., Australia, Canada and New Zealand, steepened, while yields in the U.K. and Germany drifted lower. Global central banks maintained highly accommodative policy stances, with the Fed providing assurance it would continue to acquire assets for the foreseeable future, and the ECB extending its Pandemic Emergency Purchase Programme through at least March 2022. Credit spreads remained mostly
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range-bound in October but then rallied sharply in November and December, as positive news flow on COVID-19 vaccine development and distribution, a positive supply/demand backdrop and the passage of additional U.S. fiscal stimulus provided confidence around a stronger economic recovery in 2021.
In the first quarter of 2021, government bond yields moved sharply higher. U.S. Treasuries registered their worst quarterly return since 1980, driven by vaccine rollout progress, unprecedented fiscal stimulus and the Fed’s commitment to not preemptively hike rates in response to any transitory rise in inflation during the economic rebound. In turn, the U.S. Treasury yield curve steepened rapidly, which spilled over to other major markets, including the dollar-bloc economies. Chinese sovereign bonds represented the lone market among the 20 largest global debt markets to see yields decrease during the quarter. Most non-government bond sectors continued to outperform government bonds, with vaccine distribution gathering pace across developed markets and major central banks committing to maintain accommodative policies.
For the annual period overall, the U.S. Treasury yield curve steepened, as yields on shorter-term maturities fell and yields on intermediate- and longer-term maturities rose. The yield on the bellwether 10-year U.S. Treasury rose approximately 104 basis points† to end the annual period at 1.74%. Amongst non-U.S. Treasury sectors, high yield corporate bonds and sovereign emerging markets debt outperformed U.S. Treasuries most for the annual period as a whole, followed by investment grade corporate bonds. To a lesser extent, commercial mortgage-backed securities, asset-backed securities, mortgage-backed securities and agency securities also outpaced U.S. Treasuries.
On the following pages, you will find financial statements and portfolio information for each of the Income Funds during the annual period ended March 31, 2021.
We thank you for being a part of AIG Funds. We value your ongoing 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 at 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 — March 31, 2021 — (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 October 1, 2020 and held until March 31, 2021.
Actual Expenses
The “Actual” section of the table provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the column under the heading entitled “Expenses Paid During the Six Months Ended March 31, 2021” to estimate the expenses you paid on your account during this period. The “Expenses Paid During the Six Months Ended March 31, 2021” 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 March 31, 2021” 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 March 31, 2021” 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 March 31, 2021” 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 March 31, 2021” 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 March 31, 2021” 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 — March 31, 2021 — (unaudited) (continued)
Actual | Hypothetical | |||||||||||||||||||||||||||
Fund | Beginning Account Value at October 1, 2020 | Ending Account Value using Actual Return at March 31, 2021 | Expenses Paid During the Six Months Ended March 31, 2021 | Beginning Account Value at October 1, 2020 | Ending Account Value using a Hypothetical 5% Annual Return at March 31, 2021 | Expenses Paid During the Six Months Ended March 31, 2021 | Annualized Expense Ratio* | |||||||||||||||||||||
AIG U.S. Government Securities# | ||||||||||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 952.38 | $ | 4.82 | $ | 1,000.00 | $ | 1,020.00 | $ | 4.99 | 0.99 | % | ||||||||||||||
Class C | $ | 1,000.00 | $ | 948.21 | $ | 7.97 | $ | 1,000.00 | $ | 1,016.75 | $ | 8.25 | 1.64 | % | ||||||||||||||
AIG Strategic Bond# | ||||||||||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,028.09 | $ | 5.56 | $ | 1,000.00 | $ | 1,019.45 | $ | 5.54 | 1.10 | % | ||||||||||||||
Class B | $ | 1,000.00 | $ | 1,021.52 | $ | 9.27 | $ | 1,000.00 | $ | 1,015.76 | $ | 9.25 | 1.84 | % | ||||||||||||||
Class C | $ | 1,000.00 | $ | 1,025.07 | $ | 8.78 | $ | 1,000.00 | $ | 1,016.26 | $ | 8.75 | 1.74 | % | ||||||||||||||
Class W | $ | 1,000.00 | $ | 1,029.10 | $ | 4.55 | $ | 1,000.00 | $ | 1,020.44 | $ | 4.53 | 0.90 | % | ||||||||||||||
AIG Flexible Credit# | ||||||||||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,079.66 | $ | 5.60 | $ | 1,000.00 | $ | 1,019.55 | $ | 5.44 | 1.08 | % | ||||||||||||||
Class C | $ | 1,000.00 | $ | 1,075.60 | $ | 9.11 | $ | 1,000.00 | $ | 1,016.16 | $ | 8.85 | 1.76 | % | ||||||||||||||
Class W | $ | 1,000.00 | $ | 1,080.73 | $ | 4.46 | $ | 1,000.00 | $ | 1,020.64 | $ | 4.33 | 0.86 | % |
* | Expenses are equal to each Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 182 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 March 31, 2021” and the “Annualized Expense Ratio” would have been higher. |
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SunAmerica Income Funds
STATEMENTS OF ASSETS AND LIABILITIES — March 31, 2021
AIG U.S. Government Securities Fund | AIG Strategic Bond Fund | AIG Flexible Credit Fund | ||||||||||
ASSETS: | ||||||||||||
Investments at value (unaffiliated)* | $ | 115,975,841 | $ | 374,787,909 | $ | 234,262,679 | ||||||
Repurchase agreements (cost approximates value) | 134,000 | — | — | |||||||||
Cash | 250 | 15,401 | — | |||||||||
Foreign cash* | — | 11,442 | — | |||||||||
Receivable for: | ||||||||||||
Shares of beneficial interest sold | 1,876 | 595,218 | 498,060 | |||||||||
Dividends and interest | 470,804 | 3,695,340 | 2,224,603 | |||||||||
Investments sold | — | 1,212,491 | 148,290 | |||||||||
Investments sold on an extended settlement basis | — | 105,453 | 2,205,902 | |||||||||
Prepaid expenses and other assets | 5,509 | 7,370 | 7,156 | |||||||||
Due from investment adviser for expense reimbursements/fee waivers | 36,920 | 85,124 | 79,572 | |||||||||
Unrealized appreciation on forward foreign currency contracts | — | 597,934 | — | |||||||||
Total assets | 116,625,200 | 381,113,682 | 239,426,262 | |||||||||
LIABILITIES: | ||||||||||||
Payable for: | ||||||||||||
Shares of beneficial interest redeemed | 218,372 | 1,716,301 | 571,944 | |||||||||
Investments purchased | — | 569,707 | 4,110 | |||||||||
Investments purchased on an extended settlement basis | — | 10,944,391 | 8,107,645 | |||||||||
Investment advisory and management fees | 65,678 | 204,027 | 145,439 | |||||||||
Distribution and service maintenance fees | 39,691 | 115,896 | 71,141 | |||||||||
Transfer agent fees and expenses | 29,534 | 80,421 | 51,494 | |||||||||
Trustees’ fees and expenses | 843 | 3,738 | 1,824 | |||||||||
Other accrued expenses | 97,985 | 173,718 | 150,636 | |||||||||
Distributions Payable | 8,765 | 126,455 | 335,340 | |||||||||
Due to custodian | — | — | 169 | |||||||||
Commitments | — | 37,293 | 598,133 | |||||||||
Unrealized depreciation on forward foreign currency contracts | — | 33,150 | — | |||||||||
Total liabilities | 460,868 | 14,005,097 | 10,037,875 | |||||||||
Net assets | $ | 116,164,332 | $ | 367,108,585 | $ | 229,388,387 | ||||||
NET ASSETS REPRESENTED BY: | ||||||||||||
Shares of beneficial interest, $0.01 | $ | 126,004 | $ | 1,058,664 | $ | 679,292 | ||||||
Paid-in capital | 129,883,257 | 387,896,725 | 253,518,798 | |||||||||
Total accumulated earnings (loss) | (13,844,929 | ) | (21,846,804 | ) | (24,809,703 | ) | ||||||
Net assets | $ | 116,164,332 | $ | 367,108,585 | $ | 229,388,387 | ||||||
*Cost | ||||||||||||
Investments (unaffiliated) | $ | 111,107,895 | $ | 372,374,467 | $ | 234,288,344 | ||||||
Foreign cash | $ | — | $ | 11,479 | $ | — | ||||||
See Notes to Financial Statements
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SunAmerica Income Funds
STATEMENTS OF ASSETS AND LIABILITIES — March 31, 2021 — (continued)
AIG U.S. Government Securities Fund | AIG Strategic Bond Fund | AIG Flexible Credit Fund | ||||||||||
Class A (unlimited shares authorized): | ||||||||||||
Net assets | $ | 108,748,252 | $ | 173,599,936 | $ | 89,352,386 | ||||||
Shares of beneficial interest issued and outstanding | 11,794,452 | 50,032,841 | 26,502,547 | |||||||||
Net asset value and redemption price per share (excluding any applicable contingent deferred sales charge) | $ | 9.22 | $ | 3.47 | $ | 3.37 | ||||||
Maximum sales charge (3.75% of offering price) | 0.36 | 0.14 | 0.13 | |||||||||
Maximum offering price to public | $ | 9.58 | $ | 3.61 | $ | 3.50 | ||||||
Class B (unlimited shares authorized): | ||||||||||||
Net assets | $ | — | $ | 14,059,716 | $ | — | ||||||
Shares of beneficial interest issued and outstanding | — | 4,059,383 | — | |||||||||
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge) | $ | — | $ | 3.46 | $ | — | ||||||
Class C (unlimited shares authorized): | ||||||||||||
Net assets | $ | 7,416,080 | $ | 39,402,189 | $ | 36,523,265 | ||||||
Shares of beneficial interest issued and outstanding | 805,961 | 11,328,063 | 10,768,643 | |||||||||
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge) | $ | 9.20 | $ | 3.48 | $ | 3.39 | ||||||
Class W (unlimited shares authorized): | ||||||||||||
Net assets | $ | — | $ | 140,046,744 | $ | 103,512,736 | ||||||
Shares of beneficial interest issued and outstanding | — | 40,446,104 | 30,658,039 | |||||||||
Net asset value, offering and redemption price per share | $ | — | $ | 3.46 | $ | 3.38 | ||||||
See Notes to Financial Statements
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SunAmerica Income Funds
STATEMENTS OF OPERATIONS — For the Year Ended March 31, 2021
AIG U.S. Government Securities Fund | AIG Strategic Bond Fund | AIG Flexible Credit Fund | ||||||||||
INVESTMENT INCOME: | ||||||||||||
Dividends (unaffiliated) | $ | — | $ | 5,508 | $ | 685 | ||||||
Interest (unaffiliated) | 2,310,365 | 13,805,393 | 13,645,276 | |||||||||
Total investment income* | 2,310,365 | 13,810,901 | 13,645,961 | |||||||||
EXPENSES: | ||||||||||||
Investment advisory and management fees | 867,700 | 2,237,830 | 1,866,552 | |||||||||
Distribution and Service maintenance fees: | ||||||||||||
Class A | 398,608 | 567,642 | 296,803 | |||||||||
Class B | — | 147,452 | — | |||||||||
Class C | 111,753 | 464,212 | 430,218 | |||||||||
Service fee — Class W | — | 180,734 | 182,312 | |||||||||
Transfer agent fees: | ||||||||||||
Class A | 296,550 | 388,898 | 208,048 | |||||||||
Class B | — | 35,677 | — | |||||||||
Class C | 26,901 | 108,993 | 100,244 | |||||||||
Class W | — | 269,629 | 271,236 | |||||||||
Registration fees: | ||||||||||||
Class A | 26,936 | 29,042 | 22,584 | |||||||||
Class B | — | 14,166 | — | |||||||||
Class C | 16,762 | 20,830 | 18,235 | |||||||||
Class W | — | 29,738 | 27,699 | |||||||||
Custodian and accounting fees | 23,792 | 127,748 | 62,471 | |||||||||
Reports to shareholders | 24,790 | 49,468 | 47,784 | |||||||||
Audit and tax fees | 64,655 | 79,706 | 80,762 | |||||||||
Legal fees | 50,179 | 63,074 | 60,010 | |||||||||
Trustees’ fees and expenses | 14,880 | 39,333 | 29,444 | |||||||||
Interest expense | 330 | 91 | 13,994 | |||||||||
Other expenses | 42,587 | 55,280 | 49,124 | |||||||||
Total expenses before fee waivers, expense reimbursements and expense recoupments | 1,966,423 | 4,909,543 | 3,767,520 | |||||||||
Net (fees waived and expenses reimbursed)/recouped by investment advisor (Note 3) | (572,183 | ) | (931,880 | ) | (1,013,458 | ) | ||||||
Net expenses | 1,394,240 | 3,977,663 | 2,754,062 | |||||||||
Net investment income (loss) | 916,125 | 9,833,238 | 10,891,899 | |||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES: | ||||||||||||
Net realized gain (loss) on: | ||||||||||||
Investments (unaffiliated) | 1,401,137 | 10,573,385 | (2,522,972 | ) | ||||||||
Forward contracts | — | (1,568,282 | ) | — | ||||||||
Net realized foreign exchange gain (loss) on other assets and liabilities | — | 5,050 | — | |||||||||
Net realized gain (loss) on investments and foreign currencies | 1,401,137 | 9,010,153 | (2,522,972 | ) | ||||||||
Change in unrealized appreciation (depreciation) on: | ||||||||||||
Investments (unaffiliated) | (8,404,023 | ) | 21,406,436 | 49,859,546 | ||||||||
Forward contracts | — | 373,925 | — | |||||||||
Change in unrealized foreign exchange gain (loss) on other assets and liabilities | — | (183 | ) | — | ||||||||
Net unrealized gain (loss) on investments and foreign currencies | (8,404,023 | ) | 21,780,178 | 49,859,546 | ||||||||
Net realized and unrealized gain (loss) on investments and foreign currencies | (7,002,886 | ) | 30,790,331 | 47,336,574 | ||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | (6,086,761 | ) | 40,623,569 | 58,228,473 | ||||||||
* Net of foreign withholding taxes on interest and dividends of | $ | — | $ | 203 | $ | — | ||||||
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 year ended March 31, 2021 | For the year ended March 31, 2020 | For the year ended March 31, 2021 | For the year ended March 31, 2020 | For the year ended March 31, 2021 | For the year ended March 31, 2020 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 916,125 | $ | 1,739,735 | $ | 9,833,238 | $ | 9,321,061 | $ | 10,891,899 | $ | 17,039,311 | ||||||||||||
Net realized gain (loss) on investments and foreign currencies | 1,401,137 | 1,926,705 | 9,010,153 | 2,219,656 | (2,522,972 | ) | (10,508,043 | ) | ||||||||||||||||
Net unrealized gain (loss) on investments and foreign currencies | (8,404,023 | ) | 9,530,897 | 21,780,178 | (16,562,110 | ) | 49,859,546 | (39,945,114 | ) | |||||||||||||||
Net increase (decrease) in net assets resulting from operations | (6,086,761 | ) | 13,197,337 | 40,623,569 | (5,021,393 | ) | 58,228,473 | (33,413,846 | ) | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||
Distributable earnings (Class A) | (1,859,353 | ) | (2,097,203 | ) | (5,433,173 | ) | (5,590,623 | ) | (3,987,394 | ) | (5,350,478 | ) | ||||||||||||
Distributable earnings (Class B) | — | — | (385,245 | ) | (449,803 | ) | — | — | ||||||||||||||||
Distributable earnings (Class C) | (95,466 | ) | (75,838 | ) | (1,251,979 | ) | (1,472,631 | ) | (1,718,396 | ) | (2,528,440 | ) | ||||||||||||
Distributable earnings (Class W) | — | — | (4,228,308 | ) | (3,163,220 | ) | (5,920,680 | ) | (9,579,290 | ) | ||||||||||||||
Total distributions to shareholders | (1,954,819 | ) | (2,173,041 | ) | (11,298,705 | ) | (10,676,277 | ) | (11,626,470 | ) | (17,458,208 | ) | ||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions (Note 6) | (14,215,387 | ) | (6,229,168 | ) | 41,008,916 | 37,021,203 | (71,967,524 | ) | (6,163,477 | ) | ||||||||||||||
Total increase (decrease) in net assets | (22,256,967 | ) | 4,795,128 | 70,333,780 | 21,323,533 | (25,365,521 | ) | (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 | $ | 116,164,332 | $ | 138,421,299 | $ | 367,108,585 | $ | 296,774,805 | 229,388,387 | $ | 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
03/31/17 | $ | 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 | |||||||||||||||||||||||||||||||||||||
03/31/21 | 9.82 | 0.07 | (0.52 | ) | (0.45 | ) | (0.15 | ) | — | (0.15 | ) | 9.22 | (4.66 | ) | 108,748 | 0.99 | 0.74 | 15 | ||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
03/31/21 | 9.81 | 0.01 | (0.54 | ) | (0.53 | ) | (0.08 | ) | — | (0.08 | ) | 9.20 | (5.39 | ) | 7,416 | 1.64 | 0.09 | 15 |
(1) | Calculated based upon average shares outstanding. |
(2) | Total return does not reflect sales load, but does include expense reimbursements. |
(3) | Net of the following expense reimbursements, if applicable (based on average net assets): |
03/31/17 | 03/31/18 | 03/31/19 | 03/31/20 | 03/31/21 | ||||||||||||||||
AIG U.S. Government Securities Fund Class A | 0.35 | % | 0.37 | % | 0.37 | % | 0.40 | % | 0.42 | % | ||||||||||
AIG U.S. Government Securities Fund Class C | 0.40 | 0.46 | 0.59 | 0.67 | 0.56 |
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
03/31/17 | $ | 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 | ||||||||||||||||||||||||||||||||
03/31/21 | 3.15 | 0.10 | 0.33 | 0.43 | (0.11 | ) | — | (0.11 | ) | 3.47 | 13.87 | 173,600 | 1.10 | (3) | 2.91 | (3) | 111 | |||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
03/31/21 | 3.15 | 0.07 | 0.33 | 0.40 | (0.09 | ) | — | (0.09 | ) | 3.46 | 12.74 | 14,060 | 1.84 | (3) | 2.18 | (3) | 111 | |||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
03/31/21 | 3.16 | 0.08 | 0.33 | 0.41 | (0.09 | ) | — | (0.09 | ) | 3.48 | 13.11 | 39,402 | 1.78 | (3) | 2.26 | (3) | 111 | |||||||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
03/31/21 | 3.15 | 0.10 | 0.33 | 0.43 | (0.12 | ) | — | (0.12 | ) | 3.46 | 13.77 | 140,047 | 0.90 | (3) | 3.08 | (3) | 111 |
(1) | Calculated based upon average shares outstanding. |
(2) | Total return 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): |
03/31/17 | 03/31/18 | 03/31/19 | 03/31/20 | 03/31/21 | ||||||||||||||||
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 |
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
03/31/17 | $ | 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 | ||||||||||||||||||||||||||||||||
03/31/21 | 2.82 | 0.14 | 0.56 | 0.70 | (0.15 | ) | — | (0.15 | ) | 3.37 | 25.13 | 89,352 | 1.09 | (3) | 4.33 | (3) | 72 | |||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
03/31/21 | 2.83 | 0.12 | 0.57 | 0.69 | (0.13 | ) | — | (0.13 | ) | 3.39 | 24.61 | 36,523 | 1.75 | (3) | 3.70 | (3) | 72 | |||||||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
03/31/21 | 2.82 | 0.15 | 0.57 | 0.72 | (0.16 | ) | — | (0.16 | ) | 3.38 | 25.79 | 103,513 | 0.87 | (3) | 4.58 | (3) | 72 |
(1) | Calculated based upon average shares outstanding. |
(2) | Total return 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): |
03/31/17 | 03/31/18 | 03/31/19 | 03/31/20 | 03/31/21 | ||||||||||||||||
AIG Flexible Credit Fund Class A | — | % | 0.11 | % | 0.39 | % | 0.40 | % | 0.40 | % | ||||||||||
AIG Flexible Credit Fund Class C | — | 0.11 | 0.39 | 0.40 | 0.40 | |||||||||||||||
AIG Flexible Credit Fund Class W | — | 0.11 | 0.39 | 0.40 | 0.40 |
See Notes to Financial Statements
12 |
Table of Contents
AIG U.S. Government Securities Fund
PORTFOLIO PROFILE — March 31, 2021 — (unaudited)
Industry Allocation*
United States Treasury Notes | 57.3 | % | ||
United States Treasury Bonds | 22.4 | |||
Government National Mtg. Assoc. | 14.3 | |||
Federal Home Loan Mtg. Corp. | 4.5 | |||
Federal National Mtg. Assoc. | 1.4 | |||
Repurchase Agreements | 0.1 | |||
100.0 | % | |||
Credit Quality†#
Aaa | 99.3 | % | ||
Not Rated@ | 0.7 | |||
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. |
13 |
Table of Contents
AIG U.S. Government Securities Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021
Security Description | Principal Amount | Value (Note 2) | ||||||
U.S. GOVERNMENT AGENCIES — 20.2% |
| |||||||
Federal Home Loan Mtg. Corp. — 4.5% |
| |||||||
3.50% due 08/01/2030 | $ | 1,327,436 | $ | 1,432,311 | ||||
3.50% due 12/01/2044 | 2,035,071 | 2,198,700 | ||||||
4.00% due 04/01/2034 | 705,253 | 763,588 | ||||||
Federal Home Loan Mtg. Corp. REMIC | 783,304 | 847,063 | ||||||
5,241,662 | ||||||||
Federal National Mtg. Assoc. — 1.4% |
| |||||||
2.50% due 11/01/2027 | 1,498,010 | 1,566,766 | ||||||
Government National Mtg. Assoc. — 14.3% |
| |||||||
3.50% due 03/15/2042 | 152,947 | 164,728 | ||||||
3.50% due 06/15/2042 | 748,450 | 805,998 | ||||||
3.50% due 07/15/2042 | 134,973 | 144,303 | ||||||
3.50% due 02/20/2045 | 371,230 | 400,675 | ||||||
4.00% due 03/15/2039 | 84,045 | 92,288 | ||||||
4.00% due 06/15/2039 | 217,382 | 238,618 | ||||||
4.00% due 12/15/2039 | 125,183 | 137,278 | ||||||
4.00% due 08/15/2040 | 62,642 | 68,420 | ||||||
4.00% due 11/15/2040 | 189,448 | 209,779 | ||||||
4.00% due 09/15/2041 | 501,811 | 555,255 | ||||||
4.00% due 10/15/2041 | 22,916 | 24,532 | ||||||
4.00% due 11/15/2041 | 103,264 | 110,684 | ||||||
4.00% due 12/15/2041 | 180,005 | 194,136 | ||||||
4.00% due 01/15/2042 | 865,911 | 956,930 | ||||||
4.00% due 02/15/2042 | 200,075 | 221,315 | ||||||
4.00% due 03/15/2042 | 68,514 | 75,000 | ||||||
4.50% due 09/15/2033 | 132,851 | 148,474 | ||||||
4.50% due 04/15/2039 | 32,907 | 37,151 | ||||||
4.50% due 05/15/2039 | 51,423 | 58,055 | ||||||
4.50% due 06/15/2039 | 557,002 | 627,950 | ||||||
4.50% due 07/15/2039 | 155,441 | 174,461 | ||||||
4.50% due 09/15/2039 | 82,586 | 93,266 | ||||||
4.50% due 11/15/2039 | 72,702 | 82,041 | ||||||
4.50% due 12/15/2039 | 141,797 | 160,086 | ||||||
4.50% due 02/15/2040 | 358,603 | 404,319 | ||||||
4.50% due 03/15/2040 | 132,461 | 149,086 | ||||||
4.50% due 04/15/2040 | 68,311 | 77,153 | ||||||
4.50% due 07/15/2040 | 130,047 | 146,409 | ||||||
4.50% due 03/15/2041 | 588,438 | 664,339 | ||||||
4.50% due 04/15/2041 | 108,630 | 120,552 | ||||||
4.50% due 06/15/2041 | 110,926 | 123,249 | ||||||
4.50% due 08/15/2041 | 128,495 | 142,777 | ||||||
4.50% due 04/20/2044 | 326,271 | 365,839 | ||||||
5.00% due 08/15/2033 | 154,221 | 177,244 | ||||||
5.00% due 10/15/2033 | 267,264 | 305,970 | ||||||
5.00% due 05/15/2035 | 68,941 | 77,759 | ||||||
5.00% due 08/15/2035 | 171,924 | 198,852 | ||||||
5.00% due 05/15/2036 | 49,887 | 58,118 | ||||||
5.00% due 09/15/2036 | 68,201 | 79,443 | ||||||
5.00% due 01/15/2037 | 119,321 | 138,564 | ||||||
5.00% due 03/15/2037 | 25,039 | 28,728 | ||||||
5.00% due 04/15/2037 | 76,096 | 85,786 | ||||||
5.00% due 04/15/2038 | 176,076 | 204,748 | ||||||
5.00% due 05/15/2038 | 91,007 | 105,604 | ||||||
5.00% due 08/15/2038 | 312,000 | 363,443 | ||||||
5.00% due 02/15/2039 | 42,688 | 49,537 | ||||||
5.00% due 03/15/2039 | 30,333 | 34,204 | ||||||
Government National Mtg. Assoc. (continued) |
| |||||||
5.00% due 04/15/2039 | $ | 56,535 | $ | 65,813 | ||||
5.00% due 07/20/2039 | 450,628 | 509,534 | ||||||
5.00% due 08/15/2039 | 160,587 | 187,112 | ||||||
5.00% due 09/20/2039 | 1,432,352 | 1,646,405 | ||||||
5.00% due 10/15/2039 | 268,310 | 310,789 | ||||||
5.00% due 11/15/2039 | 227,834 | 265,365 | ||||||
5.00% due 12/15/2039 | 203,477 | 236,900 | ||||||
5.00% due 04/15/2040 | 241,619 | 281,285 | ||||||
5.00% due 05/15/2040 | 330,183 | 382,144 | ||||||
5.00% due 07/20/2045 | 172,794 | 198,629 | ||||||
5.50% due 06/15/2033 | 263,897 | 305,319 | ||||||
5.50% due 07/15/2033 | 50,704 | 58,709 | ||||||
5.50% due 10/15/2033 | 81,797 | 94,777 | ||||||
5.50% due 01/15/2034 | 305,758 | 349,897 | ||||||
5.50% due 02/15/2034 | 173,152 | 194,676 | ||||||
5.50% due 04/20/2035 | 236,974 | 270,925 | ||||||
5.50% due 09/15/2035 | 224,749 | 263,860 | ||||||
5.50% due 10/15/2035 | 99,908 | 117,495 | ||||||
5.50% due 02/15/2038 | 55,968 | 65,346 | ||||||
5.50% due 04/15/2038 | 33,284 | 38,974 | ||||||
5.50% due 09/15/2039 | 22,243 | 25,878 | ||||||
5.50% due 03/15/2040 | 146 | 171 | ||||||
6.00% due 04/15/2028 | 64,099 | 73,509 | ||||||
6.00% due 08/15/2033 | 123,036 | 147,568 | ||||||
6.00% due 12/15/2033 | 54,063 | 61,818 | ||||||
6.00% due 09/20/2038 | 485,953 | 557,500 | ||||||
6.50% due 10/15/2031 | 13,652 | 15,245 | ||||||
16,608,789 | ||||||||
Total U.S. Government Agencies | ||||||||
(cost $22,140,455) | 23,417,217 | |||||||
U.S. GOVERNMENT TREASURIES — 79.7% |
| |||||||
United States Treasury Bonds — 22.4% |
| |||||||
2.00% due 02/15/2050 | 1,400,000 | 1,276,406 | ||||||
2.25% due 08/15/2049 | 700,000 | 674,762 | ||||||
2.50% due 02/15/2045 | 1,000,000 | 1,018,398 | ||||||
2.75% due 08/15/2042 | 1,100,000 | 1,177,516 | ||||||
2.75% due 11/15/2042 | 2,000,000 | 2,138,906 | ||||||
3.00% due 05/15/2042 | 2,000,000 | 2,228,516 | ||||||
3.00% due 02/15/2049 | 1,000,000 | 1,120,274 | ||||||
3.13% due 11/15/2041 | 1,500,000 | 1,704,492 | ||||||
3.13% due 02/15/2042 | 1,100,000 | 1,250,863 | ||||||
3.38% due 11/15/2048 | 1,000,000 | 1,197,461 | ||||||
3.50% due 02/15/2039 | 2,000,000 | 2,393,203 | ||||||
4.25% due 11/15/2040 | 3,300,000 | 4,357,160 | ||||||
4.50% due 02/15/2036 | 1,500,000 | 1,981,875 | ||||||
4.75% due 02/15/2041 | 2,500,000 | 3,512,402 | ||||||
26,032,234 | ||||||||
United States Treasury Notes — 57.3% |
| |||||||
0.13% due 04/30/2022 | 1,000,000 | 1,000,352 | ||||||
0.13% due 05/31/2022 | 1,000,000 | 1,000,234 | ||||||
0.13% due 06/30/2022 | 1,000,000 | 1,000,156 | ||||||
0.13% due 05/15/2023 | 1,000,000 | 998,633 | ||||||
0.13% due 07/15/2023 | 650,000 | 648,654 | ||||||
0.13% due 08/15/2023 | 650,000 | 648,400 | ||||||
0.25% due 04/15/2023 | 1,000,000 | 1,001,406 | ||||||
0.25% due 06/15/2023 | 600,000 | 600,633 |
14 |
Table of Contents
AIG U.S. Government Securities Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount | Value (Note 2) | ||||||
U.S. GOVERNMENT TREASURIES (continued) |
| |||||||
United States Treasury Notes (continued) |
| |||||||
0.25% due 05/31/2025 | $ | 300,000 | $ | 294,234 | ||||
0.38% due 03/31/2022 | 800,000 | 802,313 | ||||||
0.50% due 03/15/2023 | 1,000,000 | 1,006,445 | ||||||
0.50% due 03/31/2025 | 800,000 | 794,563 | ||||||
0.50% due 04/30/2027 | 400,000 | 382,875 | ||||||
0.50% due 05/31/2027 | 1,000,000 | 955,234 | ||||||
0.63% due 05/15/2030 | 1,000,000 | 909,336 | ||||||
0.63% due 08/15/2030 | 1,000,000 | 905,469 | ||||||
1.25% due 07/31/2023 | 1,000,000 | 1,023,984 | ||||||
1.25% due 08/31/2024 | 500,000 | 512,871 | ||||||
1.38% due 02/15/2023 | 750,000 | 767,051 | ||||||
1.50% due 08/15/2022 | 1,000,000 | 1,018,984 | ||||||
1.50% due 09/15/2022 | 500,000 | 509,941 | ||||||
1.50% due 01/15/2023 | 800,000 | 819,188 | ||||||
1.50% due 02/28/2023 | 2,000,000 | 2,050,859 | ||||||
1.50% due 03/31/2023 | 750,000 | 769,863 | ||||||
1.50% due 09/30/2024 | 800,000 | 827,313 | ||||||
1.50% due 08/15/2026 | 2,000,000 | 2,047,422 | ||||||
1.50% due 02/15/2030 | 400,000 | 394,813 | ||||||
1.63% due 08/15/2022 | 1,000,000 | 1,020,430 | ||||||
1.63% due 11/15/2022 | 1,000,000 | 1,023,984 | ||||||
1.63% due 05/15/2026 | 1,000,000 | 1,032,344 | ||||||
1.63% due 08/15/2029 | 500,000 | 501,426 | ||||||
1.75% due 05/15/2022 | 1,875,000 | 1,909,351 | ||||||
1.75% due 05/15/2023 | 1,000,000 | 1,032,852 | ||||||
1.75% due 11/15/2029 | 1,000,000 | 1,011,094 | ||||||
1.88% due 03/31/2022 | 2,500,000 | 2,544,238 | ||||||
2.00% due 11/30/2022 | 1,000,000 | 1,030,781 | ||||||
2.00% due 02/15/2023 | 1,000,000 | 1,034,141 | ||||||
2.00% due 05/31/2024 | 1,000,000 | 1,049,922 | ||||||
2.00% due 02/15/2025 | 5,000,000 | 5,264,062 | ||||||
2.00% due 08/15/2025 | 3,000,000 | 3,159,727 | ||||||
2.00% due 11/15/2026 | 2,700,000 | 2,831,625 | ||||||
2.13% due 12/31/2022 | 1,000,000 | 1,034,297 | ||||||
2.13% due 03/31/2024 | 2,000,000 | 2,104,844 | ||||||
2.25% due 11/15/2024 | 1,000,000 | 1,060,859 | ||||||
Security Description | Principal Amount | Value (Note 2) | ||||||
United States Treasury Notes (continued) |
| |||||||
2.25% due 11/15/2025 | $ | 1,000,000 | $ | 1,064,414 | ||||
2.25% due 08/15/2027 | 900,000 | 953,367 | ||||||
2.25% due 11/15/2027 | 2,000,000 | 2,115,781 | ||||||
2.38% due 08/15/2024 | 1,000,000 | 1,063,984 | ||||||
2.50% due 08/15/2023 | 1,000,000 | 1,054,063 | ||||||
2.50% due 05/15/2024 | 1,000,000 | 1,065,547 | ||||||
2.63% due 02/28/2023 | 3,000,000 | 3,140,625 | ||||||
2.75% due 11/15/2023 | 2,500,000 | 2,662,109 | ||||||
2.75% due 02/15/2024 | 1,000,000 | 1,069,297 | ||||||
66,526,390 | ||||||||
Total U.S. Government Treasuries | ||||||||
(cost $88,967,440) | 92,558,624 | |||||||
Total Long-Term Investment Securities | ||||||||
(cost $111,107,895) | 115,975,841 | |||||||
REPURCHASE AGREEMENTS — 0.1% |
| |||||||
Agreement with Fixed Income Clearing Corp., bearing interest at 0.00% dated 03/31/2021, to be repurchased 04/01/2021 in the amount of $134,000 and collateralized by $137,300 of United States Treasury Notes, bearing interest at 0.13% due 01/15/2024 and having an approximate value of $136,692 | 134,000 | 134,000 | ||||||
TOTAL INVESTMENTS | ||||||||
(cost $111,241,895)(2) | 100.0 | % | 116,109,841 | |||||
Other assets less liabilities | 0.0 | 54,491 | ||||||
NET ASSETS | 100.0 | % | $ | 116,164,332 | ||||
(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 March 31, 2021 (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 | $ | — | $ | 23,417,217 | $ | — | $ | 23,417,217 | ||||||||
U.S. Government Treasuries | — | 92,558,624 | — | 92,558,624 | ||||||||||||
Repurchase Agreements | — | 134,000 | — | 134,000 | ||||||||||||
Total Investments at Value | $ | — | $ | 116,109,841 | $ | — | $ | 116,109,841 | ||||||||
* | 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 — March 31, 2021 — (unaudited)
Industry Allocation*
Sovereign | 17.8 | % | ||
Federal National Mtg. Assoc. | 6.6 | |||
Registered Investment Companies | 6.1 | |||
Federal Home Loan Mtg. Corp. | 4.0 | |||
Pipelines | 3.1 | |||
Diversified Banking Institutions | 2.7 | |||
Oil Companies-Exploration & Production | 2.6 | |||
Real Estate Investment Trusts | 2.5 | |||
Uniform Mtg. Backed Securities | 2.4 | |||
Oil Companies-Integrated | 2.0 | |||
Government National Mtg. Assoc. | 1.9 | |||
Banks-Commercial | 1.8 | |||
Cable/Satellite TV | 1.5 | |||
Medical-Hospitals | 1.5 | |||
Diversified Financial Services | 1.4 | |||
Telephone-Integrated | 1.4 | |||
Electric-Integrated | 1.3 | |||
Auto-Cars/Light Trucks | 1.2 | |||
Cruise Lines | 1.1 | |||
United States Treasury Notes | 1.1 | |||
Airlines | 1.0 | |||
Electric-Generation | 0.8 | |||
Satellite Telecom | 0.8 | |||
Finance-Consumer Loans | 0.8 | |||
Steel-Producers | 0.8 | |||
Independent Power Producers | 0.7 | |||
Food-Misc./Diversified | 0.7 | |||
Paper & Related Products | 0.7 | |||
Containers-Paper/Plastic | 0.7 | |||
Medical-Drugs | 0.6 | |||
Finance-Mortgage Loan/Banker | 0.6 | |||
Casino Hotels | 0.6 | |||
Human Resources | 0.6 | |||
Enterprise Software/Service | 0.6 | |||
Metal-Copper | 0.6 | |||
Distribution/Wholesale | 0.6 | |||
Oil-Field Services | 0.5 | |||
Electric-Distribution | 0.5 | |||
Hotels/Motels | 0.5 | |||
Broadcast Services/Program | 0.5 | |||
Cellular Telecom | 0.5 | |||
Food-Wholesale/Distribution | 0.5 | |||
Chemicals-Specialty | 0.5 | |||
Aerospace/Defense-Equipment | 0.5 | |||
E-Commerce/Services | 0.5 | |||
Rental Auto/Equipment | 0.4 | |||
Cosmetics & Toiletries | 0.4 | |||
Retail-Restaurants | 0.4 | |||
Security Services | 0.4 | |||
Chemicals-Diversified | 0.4 | |||
Retail-Petroleum Products | 0.4 | |||
Commercial Services-Finance | 0.4 | |||
Television | 0.4 | |||
Containers-Metal/Glass | 0.4 | |||
Computers-Integrated Systems | 0.4 | |||
Investment Companies | 0.4 | |||
Resorts/Theme Parks | 0.4 | |||
Vitamins & Nutrition Products | 0.4 | |||
Theaters | 0.4 | |||
Real Estate Operations & Development | 0.3 | |||
Insurance-Life/Health | 0.3 |
Finance-Credit Card | 0.3 | % | ||
Protection/Safety | 0.3 | |||
Auto-Heavy Duty Trucks | 0.3 | |||
Computer Software | 0.3 | |||
Building & Construction-Misc. | 0.3 | |||
Diversified Minerals | 0.3 | |||
Agricultural Chemicals | 0.3 | |||
Federal Home Loan Bank | 0.3 | |||
Transport-Air Freight | 0.3 | |||
Food-Retail | 0.3 | |||
Dialysis Centers | 0.3 | |||
Direct Marketing | 0.3 | |||
Investment Management/Advisor Services | 0.3 | |||
Transport-Services | 0.3 | |||
Applications Software | 0.3 | |||
Real Estate Management/Services | 0.2 | |||
Building Products-Doors & Windows | 0.2 | |||
Poultry | 0.2 | |||
Metal-Aluminum | 0.2 | |||
Computers | 0.2 | |||
Telecom Services | 0.2 | |||
Finance-Auto Loans | 0.2 | |||
Motion Pictures & Services | 0.2 | |||
Transport-Equipment & Leasing | 0.2 | |||
Energy-Alternate Sources | 0.2 | |||
Multimedia | 0.2 | |||
Coal | 0.2 | |||
Auction Houses/Art Dealers | 0.2 | |||
Food-Meat Products | 0.2 | |||
Casino Services | 0.2 | |||
Medical-Generic Drugs | 0.2 | |||
Electronic Components-Semiconductors | 0.2 | |||
Computer Services | 0.2 | |||
Pharmacy Services | 0.2 | |||
Insurance-Property/Casualty | 0.2 | |||
Finance-Investment Banker/Broker | 0.2 | |||
Non-Hazardous Waste Disposal | 0.2 | |||
Metal-Iron | 0.2 | |||
Recycling | 0.2 | |||
Retail-Pawn Shops | 0.2 | |||
Internet Content-Entertainment | 0.2 | |||
SupraNational Banks | 0.2 | |||
Oil Refining & Marketing | 0.2 | |||
Building & Construction Products-Misc. | 0.2 | |||
Building-Residential/Commercial | 0.2 | |||
Finance-Leasing Companies | 0.2 | |||
Machinery-Construction & Mining | 0.2 | |||
Medical Labs & Testing Services | 0.2 | |||
Auto/Truck Parts & Equipment-Original | 0.2 | |||
Research & Development | 0.1 | |||
Insurance-Multi-line | 0.1 | |||
Savings & Loans/Thrifts | 0.1 | |||
Banks-Super Regional | 0.1 | |||
Banks-Special Purpose | 0.1 | |||
Batteries/Battery Systems | 0.1 | |||
Internet Telephone | 0.1 | |||
Food-Dairy Products | 0.1 | |||
Retail-Appliances | 0.1 | |||
Regional Authority | 0.1 | |||
Commercial Services | 0.1 | |||
Electric-Transmission | 0.1 |
16 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO PROFILE — March 31, 2021 — (unaudited) (continued)
Industry Allocation* (continued)
Warehousing & Harbor Transportation Services | 0.1 | % | ||
Financial Guarantee Insurance | 0.1 | |||
Sovereign Agency | 0.1 | |||
Consumer Products-Misc. | 0.1 | |||
Insurance Brokers | 0.1 | |||
Brewery | 0.1 | |||
Retail-Automobile | 0.1 | |||
Airport Development/Maintenance | 0.1 | |||
Medical Products | 0.1 | |||
Metal-Diversified | 0.1 | |||
Industrial Gases | 0.1 | |||
Machinery-Farming | 0.1 | |||
Regional Agencies | 0.1 | |||
Circuit Boards | 0.1 | |||
Retail-Regional Department Stores | 0.1 | |||
Petrochemicals | 0.1 | |||
Electronic Parts Distribution | 0.1 | |||
Oil Field Machinery & Equipment | 0.1 | |||
Finance-Commercial | 0.1 | |||
Insurance-Mutual | 0.1 | |||
Medical Information Systems | 0.1 | |||
Medical-Biomedical/Gene | 0.1 | |||
Drug Delivery Systems | 0.1 | |||
Insurance-Reinsurance | 0.1 | |||
Auto Repair Centers | 0.1 | |||
Trucking/Leasing | 0.1 | |||
Chemicals-Other | 0.1 | |||
Telecom Equipment-Fiber Optics | 0.1 | |||
Aerospace/Defense | 0.1 | |||
Gold Mining | 0.1 | |||
Banks-Money Center | 0.1 | |||
Semiconductor Components-Integrated Circuits | 0.1 | |||
Electronic Measurement Instruments | 0.1 | |||
Machinery-Electrical | 0.1 | |||
Internet Financial Services | 0.1 | |||
Quarrying | 0.1 | |||
Computer Graphics | 0.1 | |||
102.1% | ||||
Credit Quality†#
Aaa | 17.4 | % | ||
Aa | 3.1 | |||
A | 5.6 | |||
Baa | 14.9 | |||
Ba | 22.1 | |||
B | 24.3 | |||
Caa | 4.8 | |||
Ca | 0.2 | |||
Not Rated@ | 7.6 | |||
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 — March 31, 2021
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
ASSET BACKED SECURITIES — 1.0% |
| |||||||
Diversified Financial Services — 1.0% |
| |||||||
AmeriCredit Automobile Receivables Trust | $ | 132,800 | $ | 134,184 | ||||
BA Credit Card Trust | 200,000 | 204,019 | ||||||
BA Credit Card Trust | 209,000 | 209,213 | ||||||
BANK | 239,000 | 254,833 | ||||||
Benchmark Mtg. Trust | 300,000 | 335,318 | ||||||
BX Commercial Mtg. Trust FRS | 400,000 | 398,477 | ||||||
Capital One Prime Auto Receivables Trust | 100,000 | 101,412 | ||||||
CarMax Auto Owner Trust | 62,136 | 63,278 | ||||||
CarMax Auto Owner Trust | 138,249 | 140,875 | ||||||
Chase Mtg. Finance Corp. VRS | 178,801 | 185,321 | ||||||
COMM Mtg. Trust VRS | 132,000 | 142,349 | ||||||
GM Financial Consumer Automobile Receivables Trust | 46,206 | 46,802 | ||||||
Honda Auto Receivables Owner Trust | 160,000 | 159,902 | ||||||
Honda Auto Receivables Owner Trust | 100,000 | 101,331 | ||||||
Honda Auto Receivables Owner Trust | 51,737 | 52,523 | ||||||
JPMorgan Mtg. Trust VRS | 42,701 | 42,727 | ||||||
JPMorgan Mtg. Trust VRS | 28,600 | 28,608 | ||||||
Morgan Stanley Capital Barclays Bank Trust | 185,000 | 185,111 |
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
Diversified Financial Services (continued) |
| |||||||
MTRO Commercial Mtg. Trust FRS | $ | 350,000 | $ | 350,334 | ||||
One Bryant Park Trust | 390,000 | 393,397 | ||||||
Shellpoint Co-Originator Trust VRS | 45,947 | 46,696 | ||||||
Toyota Auto Loan Extended Note Trust | 100,000 | 105,684 | ||||||
Toyota Auto Receivables Owner Trust | 125,000 | 128,808 | ||||||
Total Asset Backed Securities | ||||||||
(cost $3,739,087) | 3,811,202 | |||||||
U.S. CONVERTIBLE BONDS & NOTES — 0.1% |
| |||||||
Oil Field Machinery & Equipment — 0.1% |
| |||||||
Hi-Crush, Inc. | 260,000 | 260,000 | ||||||
U.S. CORPORATE BONDS & NOTES — 37.8% |
| |||||||
Aerospace/Defense — 0.1% |
| |||||||
BAE Systems Holdings, Inc. | 129,000 | 141,947 | ||||||
Teledyne Technologies, Inc. | 73,000 | 72,678 | ||||||
214,625 | ||||||||
Aerospace/Defense-Equipment — 0.4% |
| |||||||
Moog, Inc. | 670,000 | 683,400 | ||||||
Spirit AeroSystems, Inc. | 607,000 | 652,525 | ||||||
1,335,925 | ||||||||
Airlines — 0.7% |
| |||||||
American Airlines, Inc. | 1,265,000 | 1,563,856 | ||||||
Delta Air Lines, Inc. | 723,000 | 832,576 | ||||||
United Airlines Holdings, Inc. | 325,000 | 331,055 | ||||||
2,727,487 | ||||||||
18 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Applications Software — 0.2% |
| |||||||
SS&C Technologies, Inc. | $ | 570,000 | $ | 606,480 | ||||
Auction Houses/Art Dealers — 0.2% |
| |||||||
Sotheby’s | 630,000 | 681,257 | ||||||
Auto-Cars/Light Trucks — 1.1% |
| |||||||
BMW US Capital LLC | 104,000 | 104,042 | ||||||
Daimler Finance North America LLC | 228,000 | 228,944 | ||||||
Ford Motor Co. | 1,344,000 | 1,353,946 | ||||||
Ford Motor Co. | 865,000 | 991,627 | ||||||
Ford Motor Co. | 526,000 | 663,197 | ||||||
Ford Motor Credit Co. LLC | 200,000 | 198,398 | ||||||
General Motors Financial Co., Inc. | EUR | 225,000 | 267,164 | |||||
General Motors Financial Co., Inc. | 91,000 | 94,959 | ||||||
Hyundai Capital America | 61,000 | 65,046 | ||||||
3,967,323 | ||||||||
Auto-Heavy Duty Trucks — 0.3% |
| |||||||
Allison Transmission, Inc. | 650,000 | 629,687 | ||||||
JB Poindexter & Co., Inc. | 495,000 | 522,844 | ||||||
PACCAR Financial Corp. | 85,000 | 85,799 | ||||||
1,238,330 | ||||||||
Auto/Truck Parts & Equipment-Original — 0.1% |
| |||||||
Dana, Inc. | 327,000 | 343,350 | ||||||
Banks-Commercial — 0.5% |
| |||||||
BankUnited, Inc. | 176,000 | 198,105 | ||||||
Banks-Commercial (continued) | ||||||||
BankUnited, Inc. | $ | 228,000 | $ | 256,891 | ||||
Citizens Financial Group, Inc. | 107,000 | 101,955 | ||||||
First Horizon Bank | 250,000 | 300,473 | ||||||
Regions Financial Corp. | 219,000 | 316,359 | ||||||
Santander Holdings USA, Inc. | 47,000 | 49,574 | ||||||
Signature Bank | 243,000 | 250,551 | ||||||
Zions Bancorp NA | 250,000 | 252,733 | ||||||
1,726,641 | ||||||||
Banks-Super Regional — 0.1% |
| |||||||
Wells Fargo & Co. | 30,000 | 30,734 | ||||||
Wells Fargo & Co. | 212,000 | 207,314 | ||||||
Wells Fargo & Co. | 46,000 | 51,974 | ||||||
Wells Fargo & Co. | 197,000 | 226,262 | ||||||
516,284 | ||||||||
Batteries/Battery Systems — 0.1% |
| |||||||
Energizer Holdings, Inc. | 495,000 | 496,732 | ||||||
Beverages-Non-alcoholic — 0.0% |
| |||||||
Coca-Cola Co. | EUR | 130,000 | 148,883 | |||||
Brewery — 0.1% |
| |||||||
Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc. | 127,000 | 150,422 | ||||||
Anheuser-Busch InBev Worldwide, Inc. | 201,000 | 229,859 | ||||||
380,281 | ||||||||
19 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Broadcast Services/Program — 0.5% |
| |||||||
Discovery Communications LLC | EUR | 150,000 | $ | 188,818 | ||||
Discovery Communications LLC | 87,000 | 103,816 | ||||||
Univision Communications, Inc. | 67,000 | 67,670 | ||||||
Univision Communications, Inc. | 1,214,000 | 1,296,461 | ||||||
1,656,765 | ||||||||
Building & Construction Products-Misc. — 0.2% |
| |||||||
Owens Corning | 34,000 | 36,696 | ||||||
Standard Industries, Inc. | 415,000 | 393,212 | ||||||
Standard Industries, Inc. | 135,000 | 140,738 | ||||||
570,646 | ||||||||
Building & Construction-Misc. — 0.1% |
| |||||||
VM Consolidated, Inc. | 471,000 | 482,036 | ||||||
Building Products-Air & Heating — 0.0% |
| |||||||
Carrier Global Corp. | 127,000 | 125,709 | ||||||
Building Products-Doors & Windows — 0.2% |
| |||||||
Griffon Corp. | 730,000 | 777,997 | ||||||
Building Products-Wood — 0.0% |
| |||||||
Masco Corp. | 68,000 | 63,647 | ||||||
Cable/Satellite TV — 1.1% |
| |||||||
Block Communications, Inc. | 697,000 | 709,901 | ||||||
CCO Holdings LLC/CCO Holdings Capital Corp. | 557,000 | 567,694 | ||||||
CCO Holdings LLC/CCO Holdings Capital Corp. | 203,000 | 214,703 | ||||||
CCO Holdings LLC/CCO Holdings Capital Corp. | 565,000 | 605,963 | ||||||
Cable/Satellite TV (continued) |
| |||||||
Charter Communications Operating LLC/Charter Communications Operating Capital | $ | 33,000 | $ | 31,301 | ||||
Charter Communications Operating LLC/Charter Communications Operating Capital | 134,000 | 120,935 | ||||||
Charter Communications Operating LLC/Charter Communications Operating Capital | 64,000 | 68,464 | ||||||
Charter Communications Operating LLC/Charter Communications Operating Capital | 17,000 | 20,087 | ||||||
Charter Communications Operating LLC/Charter Communications Operating Capital | 46,000 | 59,784 | ||||||
Comcast Corp. | 90,000 | 98,147 | ||||||
Comcast Corp. | 37,000 | 41,486 | ||||||
Comcast Corp. | 70,000 | 84,315 | ||||||
CSC Holdings LLC | 425,000 | 458,469 | ||||||
CSC Holdings LLC | 689,000 | 723,691 | ||||||
Time Warner Cable LLC | 99,000 | 128,802 | ||||||
3,933,742 | ||||||||
Casino Hotels — 0.1% |
| |||||||
Genting New York LLC/GENNY Capital, Inc. | 537,000 | 535,842 | ||||||
Casino Services — 0.2% |
| |||||||
Caesars Entertainment, Inc. | 630,000 | 670,194 | ||||||
Cellular Telecom — 0.1% |
| |||||||
T-Mobile USA, Inc. | 157,000 | 146,994 | ||||||
T-Mobile USA, Inc. | 59,000 | 56,185 | ||||||
203,179 | ||||||||
20 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Chemicals-Diversified — 0.1% |
| |||||||
LYB International Finance III LLC | $ | 53,000 | $ | 51,555 | ||||
Westlake Chemical Corp. | EUR | 160,000 | 195,158 | |||||
246,713 | ||||||||
Chemicals-Specialty — 0.2% |
| |||||||
Ecolab, Inc. | 102,000 | 104,606 | ||||||
Huntsman International LLC | 16,000 | 17,704 | ||||||
Minerals Technologies, Inc. | 495,000 | 510,469 | ||||||
632,779 | ||||||||
Circuit Boards — 0.1% |
| |||||||
TTM Technologies, Inc. | 284,000 | 280,095 | ||||||
Coal — 0.2% |
| |||||||
SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp. | 745,000 | 773,869 | ||||||
Commercial Services — 0.1% |
| |||||||
Nielsen Finance LLC/Nielsen Finance Co. | 161,000 | 169,251 | ||||||
Nielsen Finance LLC/Nielsen Finance Co. | 255,000 | 275,400 | ||||||
444,651 | ||||||||
Commercial Services-Finance — 0.3% |
| |||||||
MPH Acquisition Holdings LLC | 1,035,000 | 1,014,921 | ||||||
Computer Services — 0.2% |
| |||||||
Banff Merger Sub, Inc. | 490,000 | 522,133 | ||||||
Leidos, Inc. | 55,000 | 59,675 | ||||||
581,808 | ||||||||
Computer Software — 0.1% |
| |||||||
Rackspace Technology Global, Inc. | 480,000 | 461,352 | ||||||
Computers — 0.2% |
| |||||||
Apple, Inc. | EUR | 120,000 | $ | 154,528 | ||||
Apple, Inc. | 75,000 | 77,490 | ||||||
Dell International LLC/EMC Corp. | 105,000 | 153,700 | ||||||
Hewlett Packard Enterprise Co. | 221,000 | 220,919 | ||||||
Hewlett Packard Enterprise Co. | 94,000 | 122,845 | ||||||
729,482 | ||||||||
Computers-Integrated Systems — 0.4% |
| |||||||
Diebold Nixdorf, Inc. | 420,000 | 429,030 | ||||||
Diebold Nixdorf, Inc. | 279,000 | 310,736 | ||||||
NCR Corp. | 582,000 | 588,594 | ||||||
1,328,360 | ||||||||
Consumer Products-Misc. — 0.1% |
| |||||||
Central Garden & Pet Co. | 375,000 | 395,625 | ||||||
Containers-Metal/Glass — 0.1% |
| |||||||
Silgan Holdings, Inc. | 501,000 | 509,266 | ||||||
Containers-Paper/Plastic — 0.1% |
| |||||||
Graphic Packaging International LLC | 71,000 | 70,474 | ||||||
Sonoco Products Co | 121,000 | 124,864 | ||||||
195,338 | ||||||||
Cosmetics & Toiletries — 0.4% |
| |||||||
Coty, Inc. | 1,027,000 | 1,034,980 | ||||||
Edgewell Personal Care Co. | 600,000 | 596,520 | ||||||
1,631,500 | ||||||||
21 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Data Processing/Management — 0.0% |
| |||||||
Fiserv, Inc. | EUR | 120,000 | $ | 151,397 | ||||
Dialysis Centers — 0.3% |
| |||||||
DaVita, Inc. | 1,050,000 | 1,068,007 | ||||||
Direct Marketing — 0.2% |
| |||||||
Terrier Media Buyer, Inc. | 675,000 | 726,334 | ||||||
Distribution/Wholesale — 0.5% |
| |||||||
H&E Equipment Services, Inc. | 680,000 | 661,300 | ||||||
KAR Auction Services, Inc. | 563,000 | 569,474 | ||||||
Performance Food Group, Inc. | 588,000 | 614,907 | ||||||
1,845,681 | ||||||||
Diversified Banking Institutions — 1.0% |
| |||||||
Bank of America Corp. | 174,000 | 182,415 | ||||||
Bank of America Corp. | 45,000 | 45,706 | ||||||
Bank of America Corp. | EUR | 220,000 | 313,077 | |||||
Bank of America Corp. | 22,000 | 24,519 | ||||||
Bank of America Corp. | 535,000 | 594,666 | ||||||
Citigroup, Inc. | 45,000 | 49,186 | ||||||
Citigroup, Inc. | 130,000 | 146,400 | ||||||
Citigroup, Inc. | 52,000 | 61,784 | ||||||
Citigroup, Inc. | 104,000 | 131,687 | ||||||
Citigroup, Inc. | 107,000 | 138,172 | ||||||
Goldman Sachs Group, Inc. | 192,000 | 208,014 | ||||||
Diversified Banking Institutions (continued) | ||||||||
Goldman Sachs Group, Inc. | $ | 195,000 | $ | 274,311 | ||||
Goldman Sachs Group., Inc. | EUR | 240,000 | 300,225 | |||||
JPMorgan Chase & Co. | 128,000 | 128,243 | ||||||
JPMorgan Chase & Co. | EUR | 120,000 | 151,282 | |||||
JPMorgan Chase & Co. | 284,000 | 291,945 | ||||||
JPMorgan Chase & Co. | 239,000 | 217,314 | ||||||
Morgan Stanley | 62,000 | 67,236 | ||||||
Morgan Stanley | 226,000 | 247,853 | ||||||
Morgan Stanley | 19,000 | 21,830 | ||||||
3,595,865 | ||||||||
Diversified Manufacturing Operations — 0.0% |
| |||||||
General Electric Co. | 33,000 | 36,492 | ||||||
Illinois Tool Works, Inc. | 69,000 | 74,597 | ||||||
111,089 | ||||||||
Drug Delivery Systems — 0.1% |
| |||||||
Becton Dickinson & Co. | EUR | 190,000 | 242,792 | |||||
E-Commerce/Services — 0.4% |
| |||||||
Booking Holdings, Inc. | EUR | 130,000 | 165,688 | |||||
Expedia Group, Inc. | EUR | 155,000 | 185,554 | |||||
Expedia Group, Inc. | 108,000 | 106,418 | ||||||
GrubHub Holdings, Inc. | 849,000 | 882,960 | ||||||
1,340,620 | ||||||||
22 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Electric Products-Misc. — 0.0% |
| |||||||
Emerson Electric Co. | $ | 86,000 | $ | 83,332 | ||||
Electric-Distribution — 0.1% |
| |||||||
National Rural Utilities Cooperative Finance Corp. | 84,000 | 88,815 | ||||||
NextEra Energy Operating Partners LP | 425,000 | 447,312 | ||||||
536,127 | ||||||||
Electric-Generation — 0.3% |
| |||||||
Emera US Finance LP | 87,000 | 96,729 | ||||||
Liberty Utilities Finance GP | 56,000 | 52,428 | ||||||
Pattern Energy Operations LP/Pattern Energy Operations, Inc. | 500,000 | 508,125 | ||||||
Vistra Operations Co. LLC | 539,000 | 555,871 | ||||||
1,213,153 | ||||||||
Electric-Integrated — 0.9% |
| |||||||
AES Corp. | 143,000 | 136,615 | ||||||
Appalachian Power Co. | 84,000 | 84,744 | ||||||
Avangrid, Inc. | 207,000 | 221,545 | ||||||
Consolidated Edison Co. of New York, Inc. | 19,000 | 20,460 | ||||||
Dominion Resources, Inc. | 159,000 | 191,688 | ||||||
DTE Electric Co. | 154,000 | 171,615 | ||||||
Entergy Mississippi LLC | 36,000 | 36,447 | ||||||
Entergy Texas, Inc. | 157,000 | 176,882 | ||||||
Exelon Corp. | 62,000 | 74,047 | ||||||
Exelon Generation Co. LLC | 3,000 | 3,202 | ||||||
Electric-Integrated (continued) |
| |||||||
FirstEnergy Corp. | $ | 134,000 | $ | 179,186 | ||||
FirstEnergy Transmission LLC | 98,000 | 99,107 | ||||||
Georgia Power Co. | 165,000 | 157,024 | ||||||
Interstate Power & Light Co. | 91,000 | 89,311 | ||||||
Pacific Gas & Electric Co. | 82,000 | 79,409 | ||||||
Public Service Co. of Colorado | 159,000 | 144,446 | ||||||
Public Service Co. of Colorado | 129,000 | 142,310 | ||||||
Public Service Co. of Colorado | 89,000 | 100,492 | ||||||
South Carolina Electric & Gas Co. | 201,000 | 265,510 | ||||||
Southern California Edison Co. | 205,000 | 204,981 | ||||||
Talen Energy Supply LLC | 529,000 | 528,439 | ||||||
3,107,460 | ||||||||
Electronic Components-Semiconductors — 0.2% |
| |||||||
Broadcom, Inc. | 56,000 | 53,309 | ||||||
Broadcom, Inc. | 90,000 | 97,245 | ||||||
ON Semiconductor Corp. | 410,000 | 421,747 | ||||||
572,301 | ||||||||
Electronic Measurement Instruments — 0.1% |
| |||||||
Trimble, Inc. | 7,000 | 7,833 | ||||||
Vontier Corp. | 188,000 | 183,413 | ||||||
191,246 | ||||||||
Electronic Parts Distribution — 0.0% |
| |||||||
Arrow Electronics, Inc. | 42,000 | 45,305 | ||||||
23 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Enterprise Software/Service — 0.3% |
| |||||||
Donnelley Financial Solutions, Inc. | $ | 604,000 | $ | 629,670 | ||||
Oracle Corp. | 229,000 | 231,544 | ||||||
Oracle Corp. | 84,000 | 84,789 | ||||||
Oracle Corp. | 80,000 | 82,246 | ||||||
1,028,249 | ||||||||
Finance-Auto Loans — 0.2% |
| |||||||
Credit Acceptance Corp. | 80,000 | 81,600 | ||||||
Credit Acceptance Corp. | 757,000 | 796,742 | ||||||
878,342 | ||||||||
Finance-Commercial — 0.1% |
| |||||||
Burford Capital Global Finance LLC | 252,000 | 258,300 | ||||||
Finance-Consumer Loans — 0.7% |
| |||||||
Enova International, Inc. | 935,000 | 958,375 | ||||||
Enova International, Inc. | 72,000 | 74,722 | ||||||
Springleaf Finance Corp. | 440,000 | 468,050 | ||||||
Springleaf Finance Corp. | 425,000 | 483,406 | ||||||
Synchrony Financial | 360,000 | 398,523 | ||||||
2,383,076 | ||||||||
Finance-Credit Card — 0.3% |
| |||||||
Alliance Data Systems Corp. | 998,000 | 1,024,197 | ||||||
American Express Co. | 42,000 | 45,179 | ||||||
American Express Co. | 57,000 | 64,431 | ||||||
Mastercard, Inc. | 48,000 | 47,143 | ||||||
Finance-Credit Card (continued) |
| |||||||
Visa, Inc. | $ | 35,000 | $ | 33,582 | ||||
1,214,532 | ||||||||
Finance-Investment Banker/Broker — 0.2% |
| |||||||
LPL Holdings, Inc. | 433,000 | 436,247 | ||||||
LPL Holdings, Inc. | 105,000 | 108,938 | ||||||
545,185 | ||||||||
Finance-Mortgage Loan/Banker — 0.6% |
| |||||||
Genworth Mtg. Holdings, Inc. | 954,000 | 1,030,916 | ||||||
LD Holdings Group LLC | 436,000 | 456,841 | ||||||
Quicken Loans LLC/Quicken Loans Co-Issuer, Inc. | 624,000 | 603,720 | ||||||
Quicken Loans, Inc. | 143,000 | 150,508 | ||||||
2,241,985 | ||||||||
Financial Guarantee Insurance — 0.1% |
| |||||||
NMI Holdings, Inc. | 354,000 | 408,435 | ||||||
Food-Meat Products — 0.0% |
| |||||||
Smithfield Foods, Inc. | 59,000 | 64,987 | ||||||
Smithfield Foods, Inc. | 81,000 | 92,884 | ||||||
157,871 | ||||||||
Food-Misc./Diversified — 0.6% |
| |||||||
Conagra Brands, Inc. | 84,000 | 108,579 | ||||||
Dole Food Co., Inc. | 705,000 | 723,580 | ||||||
Kraft Heinz Foods Co. | 382,000 | 427,269 | ||||||
Mars, Inc. | 53,000 | 48,478 | ||||||
Nestle Holdings, Inc. | 152,000 | 166,761 |
24 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Food-Misc./Diversified (continued) |
| |||||||
Post Holdings, Inc. | $ | 695,000 | $ | 687,355 | ||||
2,162,022 | ||||||||
Food-Retail — 0.3% |
| |||||||
Albertsons Cos, Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC | 532,000 | 551,389 | ||||||
Albertsons Cos, Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC | 63,000 | 65,060 | ||||||
Albertsons Cos, Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC | 308,000 | 327,496 | ||||||
943,945 | ||||||||
Food-Wholesale/Distribution — 0.5% |
| |||||||
C&S Group Enterprises LLC | 680,000 | 661,300 | ||||||
Sysco Corp. | 144,000 | 162,173 | ||||||
Sysco Corp. | 86,000 | 96,383 | ||||||
Sysco Corp. | 30,000 | 37,505 | ||||||
Sysco Corp. | 83,000 | �� | 115,547 | |||||
Sysco Corp. | 34,000 | 48,978 | ||||||
US Foods, Inc. | 518,000 | 555,296 | ||||||
1,677,182 | ||||||||
Gas-Distribution — 0.0% |
| |||||||
National Fuel Gas Co. | 56,000 | 53,885 | ||||||
Hotels/Motels — 0.5% |
| |||||||
Hilton Grand Vacations Borrower LLC/Hilton Grand Vacations Borrower, Inc. | 755,000 | 785,359 | ||||||
Marriott International, Inc. | 113,000 | 111,042 | ||||||
Marriott International, Inc. | 137,000 | 153,160 | ||||||
Hotels/Motels (continued) |
| |||||||
Wyndham Destinations, Inc. | $ | 180,000 | $ | 204,363 | ||||
Wyndham Worldwide Corp. | 596,000 | 657,984 | ||||||
1,911,908 | ||||||||
Human Resources — 0.5% |
| |||||||
Korn Ferry International | 727,000 | 740,631 | ||||||
Team Health Holdings, Inc. | 600,000 | 528,708 | ||||||
TriNet Group, Inc. | 700,000 | 684,740 | ||||||
1,954,079 | ||||||||
Independent Power Producers — 0.7% |
| |||||||
Calpine Corp. | 810,000 | 772,011 | ||||||
Clearway Energy Operating LLC | 585,000 | 608,628 | ||||||
NRG Energy, Inc. | 228,000 | 222,585 | ||||||
NRG Energy, Inc. | 655,000 | 638,625 | ||||||
NRG Yield Operating LLC | 375,000 | 387,413 | ||||||
2,629,262 | ||||||||
Instruments-Controls — 0.0% |
| |||||||
Honeywell International, Inc. | 64,000 | 64,059 | ||||||
Insurance Brokers — 0.0% |
| |||||||
AmFam Holdings, Inc. | 90,000 | 91,184 | ||||||
Willis North America, Inc. | 28,000 | 29,565 | ||||||
120,749 | ||||||||
Insurance-Life/Health — 0.2% |
| |||||||
Athene Global Funding | EUR | 200,000 | 231,749 | |||||
Athene Global Funding | GBP | 100,000 | 137,540 |
25 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Insurance-Life/Health (continued) |
| |||||||
Brighthouse Financial, Inc. | $ | 91,000 | $ | 106,373 | ||||
Ohio National Financial Services, Inc. | 200,000 | 217,611 | ||||||
Principal Life Global Funding II | 86,000 | 85,787 | ||||||
Unum Group | 34,000 | 37,986 | ||||||
817,046 | ||||||||
Insurance-Multi-line — 0.0% |
| |||||||
Metropolitan Life Global Funding I | GBP | 100,000 | 131,662 | |||||
Insurance-Property/Casualty — 0.1% |
| |||||||
Chubb INA Holdings, Inc. | EUR | 145,000 | 182,400 | |||||
Internet Content-Entertainment — 0.2% |
| |||||||
Netflix, Inc. | 550,000 | 633,347 | ||||||
Internet Telephone — 0.1% |
| |||||||
Cablevision Lightpath LLC | 430,000 | 425,700 | ||||||
Investment Management/Advisor Services — 0.2% |
| |||||||
AG Issuer LLC | 668,000 | 698,895 | ||||||
Ameriprise Financial, Inc. | 83,000 | 85,169 | ||||||
784,064 | ||||||||
Machinery-Construction & Mining — 0.2% |
| |||||||
Caterpillar Financial Services Corp. | 135,000 | 135,662 | ||||||
Caterpillar Financial Services Corp. | 102,000 | 98,222 | ||||||
Terex Corp. | 300,000 | 310,560 | ||||||
544,444 | ||||||||
Machinery-Farming — 0.1% |
| |||||||
CNH Industrial Capital LLC | 150,000 | 163,499 | ||||||
John Deere Capital Corp. | 144,000 | 140,141 | ||||||
303,640 | ||||||||
Medical Labs & Testing Services — 0.1% |
| |||||||
Catalent Pharma Solutions, Inc. | $ | 93,000 | $ | 89,280 | ||||
Catalent Pharma Solutions, Inc. | 216,000 | 226,260 | ||||||
315,540 | ||||||||
Medical Products — 0.1% |
| |||||||
Stryker Corp. | EUR | 195,000 | 232,789 | |||||
Medical-Biomedical/Gene — 0.1% |
| |||||||
Amgen, Inc. | 81,000 | 80,486 | ||||||
Regeneron Pharmaceuticals, Inc. | 101,000 | 93,335 | ||||||
Regeneron Pharmaceuticals, Inc. | 82,000 | 70,830 | ||||||
244,651 | ||||||||
Medical-Drugs — 0.1% |
| |||||||
AbbVie, Inc. | EUR | 125,000 | 150,671 | |||||
AbbVie, Inc. | 79,000 | 88,192 | ||||||
AbbVie, Inc. | 93,000 | 104,775 | ||||||
Bristol-Myers Squibb Co. | 116,000 | 114,227 | ||||||
Bristol-Myers Squibb Co. | 6,000 | 7,286 | ||||||
GlaxoSmithKline Capital, Inc. | 62,000 | 65,872 | ||||||
531,023 | ||||||||
Medical-Generic Drugs — 0.2% |
| |||||||
Par Pharmaceutical, Inc. | 456,000 | 484,819 | ||||||
Upjohn, Inc. | 64,000 | 65,257 | ||||||
Viatris, Inc. | 175,000 | 177,816 | ||||||
727,892 | ||||||||
26 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Medical-Hospitals — 1.4% |
| |||||||
Acadia Healthcare Co., Inc. | $ | 120,000 | $ | 124,526 | ||||
Acadia Healthcare Co., Inc. | 548,000 | 576,907 | ||||||
CHS/Community Health Systems, Inc. | 625,000 | 657,375 | ||||||
CHS/Community Health Systems, Inc. | 332,000 | 347,023 | ||||||
HCA, Inc. | 1,285,000 | 1,299,835 | ||||||
LifePoint Health, Inc. | 459,000 | 449,820 | ||||||
Tenet Healthcare Corp. | 700,000 | 711,725 | ||||||
Tenet Healthcare Corp. | 849,000 | 884,234 | ||||||
5,051,445 | ||||||||
Medical-Wholesale Drug Distribution — 0.0% |
| |||||||
Cardinal Health, Inc. | 139,000 | 151,931 | ||||||
Metal-Copper — 0.4% |
| |||||||
Freeport-McMoRan, Inc. | 380,000 | 399,456 | ||||||
Freeport-McMoRan, Inc. | 343,000 | 365,295 | ||||||
Freeport-McMoRan, Inc. | 416,000 | 441,272 | ||||||
Freeport-McMoRan, Inc. | 251,000 | 273,144 | ||||||
1,479,167 | ||||||||
Multimedia — 0.1% |
| |||||||
Viacom, Inc. | 272,000 | 292,614 | ||||||
Walt Disney Co. | 120,000 | 109,500 | ||||||
402,114 | ||||||||
Non-Hazardous Waste Disposal — 0.2% |
| |||||||
Covanta Holding Corp. | 591,000 | 596,910 | ||||||
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
Non-Profit Charity — 0.0% |
| |||||||
Ford Foundation | $ | 75,000 | $ | 67,217 | ||||
Oil Companies-Exploration & Production — 2.0% |
| |||||||
Antero Resources Corp. | 417,000 | 444,105 | ||||||
Apache Corp. | 450,000 | 448,650 | ||||||
Apache Corp. | 403,000 | 373,783 | ||||||
Apache Corp. | 29,000 | 29,725 | ||||||
California Resources Corp. | 650,000 | 661,511 | ||||||
Callon Petroleum Co. | 518,000 | 409,220 | ||||||
Continental Resources, Inc. | 151,000 | 159,464 | ||||||
Continental Resources, Inc. | 371,000 | 419,178 | ||||||
Diamondback Energy, Inc. | 104,000 | 107,866 | ||||||
Diamondback Energy, Inc. | 73,000 | 74,388 | ||||||
Endeavor Energy Resources LP/EER Finance, Inc. | 325,000 | 343,304 | ||||||
EOG Resources, Inc. | 34,000 | 41,356 | ||||||
Hess Corp. | 132,000 | 157,568 | ||||||
Hilcorp Energy I LP/Hilcorp Finance Co. | 293,000 | 295,564 | ||||||
Hilcorp Energy I LP/Hilcorp Finance Co. | 600,000 | 609,000 | ||||||
Indigo Natural Resources LLC | 624,000 | 614,771 | ||||||
Marathon Oil Corp. | 112,000 | 139,211 | ||||||
Marathon Oil Corp. | 62,000 | 77,209 |
27 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Oil Companies-Exploration & Production (continued) |
| |||||||
Occidental Petroleum Corp. | $ | 382,000 | $ | 407,308 | ||||
Occidental Petroleum Corp. | 324,000 | 357,761 | ||||||
Occidental Petroleum Corp. | 589,000 | 646,489 | ||||||
Occidental Petroleum Corp. | 35,000 | 40,705 | ||||||
Range Resources Corp. | 378,000 | 404,460 | ||||||
7,262,596 | ||||||||
Oil Companies-Integrated — 0.4% |
| |||||||
BP Capital Markets America, Inc. | 135,000 | 117,694 | ||||||
BP Capital Markets America, Inc. | 97,000 | 89,574 | ||||||
BP Capital Markets America, Inc. | 232,000 | 253,800 | ||||||
Chevron Corp. | 162,000 | 165,242 | ||||||
Chevron USA, Inc. | 59,000 | 56,740 | ||||||
Chevron USA, Inc. | 50,000 | 56,771 | ||||||
Chevron USA, Inc. | 91,000 | 117,432 | ||||||
Exxon Mobil Corp. | EUR | 125,000 | 144,960 | |||||
Murphy Oil Corp. | 586,000 | 586,733 | ||||||
1,588,946 | ||||||||
Oil Refining & Marketing — 0.2% |
| |||||||
PBF Holding Co. LLC/PBF Finance Corp. | 728,000 | 537,810 | ||||||
Valero Energy Corp. | 62,000 | 60,714 | ||||||
598,524 | ||||||||
Oil-Field Services — 0.5% |
| |||||||
Archrock Partners LP/Archrock Partners Finance Corp. | $ | 616,000 | $ | 642,180 | ||||
ChampionX Corp | 495,000 | 518,512 | ||||||
Halliburton Co. | 40,000 | 39,937 | ||||||
Halliburton Co. | 47,000 | 49,817 | ||||||
Schlumberger Holdings Corp. | 86,000 | 95,100 | ||||||
USA Compression Partners LP/USA Compression Finance Corp. | 592,000 | 607,170 | ||||||
1,952,716 | ||||||||
Paper & Related Products — 0.4% |
| |||||||
Clearwater Paper Corp. | 675,000 | 680,063 | ||||||
Domtar Corp. | 305,000 | 384,774 | ||||||
Georgia-Pacific LLC | 320,000 | 309,706 | ||||||
1,374,543 | ||||||||
Petrochemicals — 0.0% |
| |||||||
Chevron Phillips Chemical Co. LLC/Chevron Phillips Chemical Co. LP | 55,000 | 57,875 | ||||||
Pharmacy Services — 0.1% |
| |||||||
Cigna Corp. | 100,000 | 98,158 | ||||||
CVS Health Corp. | 35,000 | 32,149 | ||||||
CVS Health Corp. | 42,000 | 47,004 | ||||||
CVS Health Corp. | 142,000 | 167,623 | ||||||
CVS Health Corp. | 44,000 | 53,847 | ||||||
398,781 | ||||||||
28 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Pipelines — 2.7% |
| |||||||
Antero Midstream Partners LP/Antero Midstream Finance Corp. | $ | 675,000 | $ | 674,156 | ||||
Buckeye Partners LP | 248,000 | 253,032 | ||||||
Buckeye Partners LP | 563,000 | 564,407 | ||||||
Cheniere Corpus Christi Holdings LLC | 85,000 | 89,530 | ||||||
Cheniere Energy Partners LP | 392,000 | 407,680 | ||||||
Cheniere Energy, Inc. | 432,000 | 449,353 | ||||||
Colorado Interstate Gas Co. LLC/Colorado Interstate Issuing Corp. | 49,000 | 54,629 | ||||||
DCP Midstream Operating LP | 165,000 | 165,000 | ||||||
DCP Midstream Operating LP | 294,000 | 319,187 | ||||||
DCP Midstream Operating LP | 130,000 | 145,113 | ||||||
Enable Midstream Partners LP | 59,000 | 65,006 | ||||||
Energy Transfer Operating LP | 125,000 | 131,607 | ||||||
Energy Transfer Operating LP | 110,000 | 125,600 | ||||||
EnLink Midstream Partners LP | 15,000 | 11,603 | ||||||
Enterprise Products Operating LLC | 89,000 | 87,348 | ||||||
Enterprise Products Operating LLC | 65,000 | 68,864 | ||||||
Genesis Energy LP/Genesis Energy Finance Corp. | 848,000 | 828,920 | ||||||
Genesis Energy LP/Genesis Energy Finance Corp. | 250,000 | 245,062 | ||||||
Genesis Energy LP/Genesis Energy Finance Corp. | 395,000 | 399,945 | ||||||
Pipelines (continued) |
| |||||||
Gray Oak Pipeline LLC | $ | 128,000 | $ | 130,283 | ||||
Gray Oak Pipeline LLC | 75,000 | 77,364 | ||||||
Harvest Midstream I LP | 823,000 | 884,478 | ||||||
Holly Energy Partners LP/Holly Energy Finance Corp. | 815,000 | 825,432 | ||||||
Kinder Morgan, Inc. | 78,000 | 87,731 | ||||||
MPLX LP | 25,000 | 24,481 | ||||||
NGL Energy Operating LLC/NGL Energy Finance Corp. | 800,000 | 820,852 | ||||||
NuStar Logistics LP | 252,000 | 269,771 | ||||||
NuStar Logistics LP | 379,000 | 409,320 | ||||||
ONEOK Partners LP | 163,000 | 204,649 | ||||||
Plains All American Pipeline LP/PAA Finance Corp. | 39,000 | 35,708 | ||||||
Sunoco Logistics Partners Operations LP | 14,000 | 14,652 | ||||||
Targa Resources Partners LP/Targa Resources Partners Finance Corp. | 499,000 | 505,612 | ||||||
Valero Energy Partners LP | 116,000 | 129,980 | ||||||
Williams Cos., Inc. | 176,000 | 215,398 | ||||||
9,721,753 | ||||||||
Poultry — 0.2% |
| |||||||
Pilgrim’s Pride Corp. | 406,000 | 435,110 | ||||||
Simmons Foods, Inc. | 457,000 | 461,008 | ||||||
896,118 | ||||||||
29 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) | ||||||||
Protection/Safety — 0.3% |
| |||||||
Prime Security Services Borrower LLC/Prime Finance, Inc. | $ | 480,000 | $ | 465,600 | ||||
Prime Security Services Borrower LLC/Prime Finance, Inc. | 458,000 | 488,594 | ||||||
Prime Security Services Borrower LLC/Prime Finance, Inc. | 230,000 | 248,222 | ||||||
1,202,416 | ||||||||
Real Estate Investment Trusts — 2.3% |
| |||||||
American Tower Corp. | EUR | 125,000 | 152,993 | |||||
American Tower Corp. | 78,000 | 71,471 | ||||||
Boston Properties LP | 80,000 | 76,629 | ||||||
Brixmor Operating Partnership LP | 41,000 | 40,199 | ||||||
Columbia Property Trust Operating Partnership LP | 90,000 | 94,721 | ||||||
CTR Partnership LP/CareTrust Capital Corp. | 575,000 | 589,450 | ||||||
ESH Hospitality, Inc. | 340,000 | 359,598 | ||||||
ESH Hospitality, Inc. | 270,000 | 275,400 | ||||||
Federal Realty Investment Trust | 111,000 | 109,554 | ||||||
HAT Holdings I LLC/HAT Holdings II LLC | 522,000 | 538,965 | ||||||
HAT Holdings I LLC/HAT Holdings II LLC | 296,000 | 312,280 | ||||||
Hospitality Properties Trust | 489,000 | 449,244 | ||||||
Host Hotels & Resorts LP | 174,000 | 174,094 | ||||||
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp. | 873,000 | 859,905 | ||||||
Real Estate Investment Trusts (continued) |
| |||||||
MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc. | $ | 515,000 | $ | 567,754 | ||||
MPT Operating Partnership LP/MPT Finance Corp. | 285,000 | 279,489 | ||||||
MPT Operating Partnership LP/MPT Finance Corp. | 576,000 | 605,955 | ||||||
National Health Investors, Inc. | 73,000 | 68,182 | ||||||
Omega Healthcare Investors, Inc. | 147,000 | 141,123 | ||||||
Omega Healthcare Investors, Inc. | 71,000 | 70,371 | ||||||
Park Intermediate Holdings LLC/PK Domestic Property LLC/PK Finance Co-Issuer | 625,000 | 662,656 | ||||||
Piedmont Operating Partnership LP | 31,000 | 30,155 | ||||||
Public Storage | EUR | 160,000 | 187,554 | |||||
Service Properties Trust | 125,000 | 121,875 | ||||||
Service Properties Trust | 80,000 | 76,200 | ||||||
Service Properties Trust | 127,000 | 127,317 | ||||||
Service Properties Trust | 59,000 | 62,374 | ||||||
Spirit Realty LP | 57,000 | 54,111 | ||||||
Starwood Property Trust, Inc. | 790,000 | 820,241 | ||||||
Starwood Property Trust, Inc. | 129,000 | 134,805 | ||||||
VEREIT Operating Partnership LP | 46,000 | 44,510 | ||||||
Welltower, Inc. | 4,000 | 3,975 | ||||||
Welltower, Inc. | 172,000 | 170,822 | ||||||
8,333,972 | ||||||||
30 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Real Estate Management/Services — 0.2% | ||||||||
Cushman & Wakefield US Borrower LLC | $ | 511,000 | $ | 552,519 | ||||
Newmark Group, Inc. | 290,000 | 318,312 | ||||||
870,831 | ||||||||
Real Estate Operations & Development — 0.1% | ||||||||
Kennedy-Wilson, Inc. | 483,000 | 489,038 | ||||||
Recycling — 0.2% | ||||||||
Harsco Corp. | 638,000 | 653,152 | ||||||
Rental Auto/Equipment — 0.4% | ||||||||
Ahern Rentals, Inc. | 725,000 | 652,500 | ||||||
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. | 168,000 | 173,783 | ||||||
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. | 508,000 | 529,362 | ||||||
NESCO Holdings II, Inc. | 226,000 | 231,763 | ||||||
1,587,408 | ||||||||
Research & Development — 0.1% | ||||||||
Jaguar Holding Co. II/PPD Development LP | 92,000 | 95,680 | ||||||
Jaguar Holding Co. II/PPD Development LP | 375,000 | 390,563 | ||||||
486,243 | ||||||||
Resorts/Theme Parks — 0.3% | ||||||||
SeaWorld Parks & Entertainment, Inc. | 415,000 | 449,237 | ||||||
Six Flags Entertainment Corp. | 540,000 | 559,575 | ||||||
Six Flags Theme Parks, Inc. | 48,000 | 51,947 | ||||||
1,060,759 | ||||||||
Retail-Apparel/Shoe — 0.0% | ||||||||
Ross Stores, Inc. | 109,000 | 102,091 | ||||||
Retail-Appliances — 0.1% | ||||||||
Conn’s, Inc. | $ | 464,000 | $ | 464,580 | ||||
Retail-Auto Parts — 0.0% | ||||||||
Advance Auto Parts, Inc. | 64,000 | 62,832 | ||||||
Retail-Automobile — 0.1% | ||||||||
Carvana Co. | 362,000 | 363,901 | ||||||
Retail-Convenience Store — 0.0% |
| |||||||
7-Eleven, Inc. | 109,000 | 101,710 | ||||||
Retail-Major Department Stores — 0.0% |
| |||||||
Nordstrom, Inc. | 36,000 | 36,057 | ||||||
Nordstrom, Inc. | 30,000 | 29,975 | ||||||
66,032 | ||||||||
Retail-Pawn Shops — 0.2% |
| |||||||
FirstCash, Inc. | 627,000 | 642,361 | ||||||
Retail-Petroleum Products — 0.2% |
| |||||||
Murphy Oil USA, Inc. | 55,000 | 54,061 | ||||||
Murphy Oil USA, Inc. | 569,000 | 597,450 | ||||||
651,511 | ||||||||
Retail-Regional Department Stores — 0.1% |
| |||||||
Kohl’s Corp. | 54,000 | 54,044 | ||||||
Kohl’s Corp. | 154,000 | 174,052 | ||||||
Kohl’s Corp. | 39,000 | 50,551 | ||||||
278,647 | ||||||||
Retail-Restaurants — 0.3% |
| |||||||
Brinker International, Inc. | 344,000 | 359,050 | ||||||
Dave & Buster’s, Inc. | 655,000 | 700,031 |
31 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Retail-Restaurants (continued) |
| |||||||
McDonald’s Corp. | $ | 50,000 | $ | 51,815 | ||||
McDonald’s Corp. | 48,000 | 54,352 | ||||||
1,165,248 | ||||||||
Satellite Telecom — 0.2% |
| |||||||
Hughes Satellite Systems Corp. | 805,000 | 892,020 | ||||||
Savings & Loans/Thrifts — 0.1% |
| |||||||
First Niagara Financial Group, Inc. | 393,000 | 411,265 | ||||||
New York Community Bancorp, Inc. | 110,000 | 119,092 | ||||||
530,357 | ||||||||
Security Services — 0.2% |
| |||||||
Brink’s Co. | 711,000 | 728,544 | ||||||
Brink’s Co. | 68,000 | 71,825 | ||||||
800,369 | ||||||||
Steel-Producers — 0.7% |
| |||||||
Cleveland-Cliffs, Inc. | 344,000 | 343,415 | ||||||
Cleveland-Cliffs, Inc. | 106,000 | 104,177 | ||||||
Cleveland-Cliffs, Inc. | 392,000 | 404,231 | ||||||
Cleveland-Cliffs, Inc. | 676,000 | 735,150 | ||||||
Commercial Metals Co. | 668,000 | 655,615 | ||||||
Periama Holdings LLC | 300,000 | 315,900 | ||||||
Reliance Steel & Aluminum Co. | 132,000 | 126,576 | ||||||
2,685,064 | ||||||||
Telecom Equipment-Fiber Optics — 0.1% |
| |||||||
Corning, Inc. | 176,000 | 218,102 | ||||||
Telephone-Integrated — 1.2% |
| |||||||
AT&T, Inc. | $ | 39,000 | $ | 35,614 | ||||
AT&T, Inc. | 460,000 | 518,338 | ||||||
AT&T, Inc. | 37,000 | 42,288 | ||||||
AT&T, Inc. | 42,000 | 48,560 | ||||||
AT&T, Inc. | 47,000 | 55,547 | ||||||
CenturyLink, Inc. | 484,000 | 509,836 | ||||||
CenturyLink, Inc. | 525,000 | 588,446 | ||||||
Frontier Communications Corp. | 645,000 | 656,287 | ||||||
Verizon Communications, Inc. | EUR | 255,000 | 298,210 | |||||
Verizon Communications, Inc. | EUR | 127,000 | 147,425 | |||||
Verizon Communications, Inc. | 154,000 | 141,250 | ||||||
Verizon Communications, Inc. | GBP | 100,000 | 143,965 | |||||
Verizon Communications, Inc. | 156,000 | 137,209 | ||||||
Verizon Communications, Inc. | 98,000 | 97,566 | ||||||
Verizon Communications, Inc. | 124,000 | 121,871 | ||||||
Verizon Communications, Inc. | 50,000 | 56,458 | ||||||
Verizon Communications, Inc. | 98,000 | 111,922 | ||||||
Zayo Group Holdings, Inc. | 646,000 | 664,379 | ||||||
4,375,171 | ||||||||
Television — 0.4% |
| |||||||
Belo Corp. | 373,000 | 434,545 |
32 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) | ||||||||
Television (continued) | ||||||||
Belo Corp. | $ | 416,000 | $ | 484,640 | ||||
Gray Television, Inc. | 480,000 | 475,800 | ||||||
1,394,985 | ||||||||
Theaters — 0.2% |
| |||||||
Live Nation Entertainment, Inc. | 120,000 | 118,350 | ||||||
Live Nation Entertainment, Inc. | 522,000 | 525,915 | ||||||
644,265 | ||||||||
Tools-Hand Held — 0.0% |
| |||||||
Stanley Black & Decker, Inc. | 55,000 | 60,319 | ||||||
Transport-Air Freight — 0.3% |
| |||||||
Cargo Aircraft Management, Inc. | 1,073,000 | 1,106,531 | ||||||
Transport-Equipment & Leasing — 0.0% |
| |||||||
GATX Corp. | 109,000 | 119,346 | ||||||
Transport-Marine — 0.0% |
| |||||||
Kirby Corp. | 89,000 | 96,944 | ||||||
Transport-Rail — 0.0% |
| |||||||
Kansas City Southern | 70,000 | 71,515 | ||||||
Kansas City Southern | 37,000 | 43,397 | ||||||
114,912 | ||||||||
Transport-Services — 0.1% |
| |||||||
FedEx Corp. Pass Through Trust | 109,979 | 106,434 | ||||||
United Parcel Service, Inc. | 66,000 | 73,018 | ||||||
179,452 | ||||||||
Trucking/Leasing — 0.1% |
| |||||||
Penske Truck Leasing Co. LP/PTL Finance Corp. | 144,000 | 155,590 | ||||||
Trucking/Leasing (continued) |
| |||||||
Penske Truck Leasing Co. LP/PTL Finance Corp. | $ | 61,000 | $ | 68,234 | ||||
223,824 | ||||||||
Vitamins & Nutrition Products — 0.3% |
| |||||||
HLF Financing SARL LLC/Herbalife International, Inc. | 956,000 | 1,001,410 | ||||||
Water — 0.0% |
| |||||||
Essential Utilities, Inc. | 58,000 | 55,891 | ||||||
Total U.S. Corporate Bonds & Notes | ||||||||
(cost $133,840,365) | 138,649,417 | |||||||
FOREIGN CORPORATE BONDS & NOTES — 16.8% |
| |||||||
Agricultural Chemicals — 0.3% |
| |||||||
Consolidated Energy Finance SA | 520,000 | 529,750 | ||||||
OCI NV | 588,000 | 611,520 | ||||||
1,141,270 | ||||||||
Airlines — 0.2% |
| |||||||
American Airlines, Inc./AAdvantage Loyalty IP, Ltd. | 193,499 | 201,722 | ||||||
American Airlines, Inc./AAdvantage Loyalty IP, Ltd. | 155,000 | 165,199 | ||||||
Hawaiian Brand Intellectual Property, Ltd./HawaiianMiles Loyalty, Ltd. | 453,436 | 481,912 | ||||||
848,833 | ||||||||
Airport Development/Maintenance — 0.1% |
| |||||||
Heathrow Funding, Ltd. | EUR | 170,000 | 208,168 | |||||
Heathrow Funding, Ltd. | GBP | 80,000 | 139,029 | |||||
347,197 | ||||||||
Appliances — 0.0% |
| |||||||
Whirlpool EMEA Finance SARL | EUR | 110,000 | 127,450 | |||||
Auto-Cars/Light Trucks — 0.1% |
| |||||||
RCI Banque SA | EUR | 120,000 | 148,478 |
33 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
| |||||||
Auto-Cars/Light Trucks (continued) | ||||||||
Volkswagen International Finance NV | EUR | 100,000 | $ | 160,203 | ||||
308,681 | ||||||||
Banks-Commercial — 1.3% |
| |||||||
Akbank TAS | 400,000 | 398,432 | ||||||
Banco de Credito del Peru | 300,000 | 300,000 | ||||||
Banco de Credito e Inversiones SA | 490,000 | 523,791 | ||||||
Banco de Sabadell SA | EUR | 100,000 | 120,367 | |||||
CaixaBank SA | EUR | 200,000 | 244,138 | |||||
Canadian Imperial Bank of Commerce | 80,000 | 79,682 | ||||||
Canadian Imperial Bank of Commerce | 59,000 | 57,838 | ||||||
Canadian Imperial Bank of Commerce | 155,000 | 160,681 | ||||||
Cooperatieve Rabobank UA | 261,000 | 255,944 | ||||||
Danske Bank A/S | EUR | 145,000 | 172,745 | |||||
Danske Bank A/S | GBP | 100,000 | 140,922 | |||||
Danske Bank A/S | 200,000 | 214,107 | ||||||
Grupo Aval, Ltd. | 450,000 | 453,937 | ||||||
ING Groep NV | 249,000 | 247,617 | ||||||
National Bank of Canada | 250,000 | 249,352 | ||||||
Philippine National Bank | 600,000 | 629,967 | ||||||
Standard Chartered PLC | EUR | 150,000 | 180,915 | |||||
Standard Chartered PLC | 200,000 | 194,192 | ||||||
Banks-Commercial (continued) |
| |||||||
Sumitomo Mitsui Trust Bank, Ltd. | $ | 235,000 | $ | 234,921 | ||||
4,859,548 | ||||||||
Beverages-Non-alcoholic — 0.0% |
| |||||||
Coca-Cola Femsa SAB de CV | 152,000 | 138,913 | ||||||
Building Products-Cement — 0.0% |
| |||||||
Holcim Finance Luxembourg SA | EUR | 125,000 | 141,926 | |||||
Building-Residential/Commercial — 0.2% |
| |||||||
Mattamy Group Corp. | 215,000 | 213,555 | ||||||
Mattamy Group Corp. | 339,000 | 354,679 | ||||||
568,234 | ||||||||
Cable/Satellite TV — 0.3% |
| |||||||
Altice Financing SA | 1,065,000 | 1,053,083 | ||||||
Casino Hotels — 0.3% |
| |||||||
Melco Resorts Finance, Ltd. | 422,000 | 448,286 | ||||||
Wynn Macau, Ltd. | 665,000 | 681,625 | ||||||
1,129,911 | ||||||||
Cellular Telecom — 0.3% |
| |||||||
Colombia Telecomunicaciones SA ESP | 210,000 | 221,025 | ||||||
Numericable-SFR SA | 800,000 | 832,000 | ||||||
Vodafone Group PLC | 49,000 | 58,093 | ||||||
Vodafone Group PLC | 71,000 | 88,497 | ||||||
1,199,615 | ||||||||
Chemicals-Diversified — 0.3% |
| |||||||
Braskem Netherlands Finance BV | 202,000 | 202,944 | ||||||
Braskem Netherlands Finance BV | 400,000 | 401,868 |
34 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
| |||||||
Chemicals-Diversified (continued) |
| |||||||
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc. | $ | 429,000 | $ | 442,406 | ||||
1,047,218 | ||||||||
Chemicals-Other — 0.1% |
| |||||||
MEGlobal Canada ULC | 200,000 | 222,250 | ||||||
Chemicals-Specialty — 0.2% |
| |||||||
Albemarle New Holding GmbH | EUR | 125,000 | 155,652 | |||||
Methanex Corp. | 432,000 | 441,720 | ||||||
597,372 | ||||||||
Computer Software — 0.1% |
| |||||||
Camelot Finance SA | 415,000 | 429,077 | ||||||
Computers — 0.0% |
| |||||||
Dell Bank International DAC | EUR | 125,000 | 152,891 | |||||
Containers-Metal/Glass — 0.2% |
| |||||||
Trivium Packaging Finance BV | 650,000 | 705,380 | ||||||
Containers-Paper/Plastic — 0.4% |
| |||||||
Cascades, Inc./Cascades USA, Inc. | 559,000 | 586,950 | ||||||
Intertape Polymer Group, Inc. | 674,000 | 708,964 | ||||||
1,295,914 | ||||||||
Cruise Lines — 1.1% |
| |||||||
Carnival Corp. | 825,000 | 848,067 | ||||||
Carnival Corp. | 133,000 | 142,882 | ||||||
NCL Corp., Ltd. | 920,000 | 868,250 | ||||||
NCL Corp., Ltd. | 236,000 | 239,160 | ||||||
Royal Caribbean Cruises, Ltd. | 151,000 | 151,868 | ||||||
Silversea Cruise Finance, Ltd. | 765,000 | 791,775 | ||||||
Cruise Lines (continued) |
| |||||||
Viking Ocean Cruises Ship VII, Ltd. | $ | 113,000 | $ | 114,164 | ||||
VOC Escrow, Ltd. | 899,000 | 888,095 | ||||||
4,044,261 | ||||||||
Diversified Banking Institutions — 1.7% |
| |||||||
Banco Santander SA | EUR | 200,000 | 245,640 | |||||
Banco Santander SA | 200,000 | 211,014 | ||||||
Barclays PLC | EUR | 100,000 | 118,989 | |||||
Barclays PLC | GBP | 100,000 | 147,061 | |||||
Barclays PLC | 200,000 | 200,288 | ||||||
BNP Paribas SA | EUR | 200,000 | 233,578 | |||||
BNP Paribas SA | 212,000 | 207,242 | ||||||
BNP Paribas SA | GBP | 100,000 | 150,773 | |||||
Credit Agricole SA | EUR | 200,000 | 230,225 | |||||
Credit Agricole SA | 250,000 | 225,546 | ||||||
Credit Suisse Group AG | EUR | 100,000 | 129,860 | |||||
Deutsche Bank AG | EUR | 200,000 | 238,018 | |||||
Deutsche Bank AG | EUR | 100,000 | 121,338 | |||||
Deutsche Bank AG | 150,000 | 153,963 | ||||||
HSBC Holdings PLC | 200,000 | 196,719 | ||||||
HSBC Holdings PLC | EUR | 200,000 | 259,670 | |||||
HSBC Holdings PLC | GBP | 120,000 | 177,513 |
35 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
| |||||||
Diversified Banking Institutions (continued) |
| |||||||
HSBC Holdings PLC | $ | 200,000 | $ | 221,096 | ||||
Mitsubishi UFJ Financial Group, Inc. | 207,000 | 213,443 | ||||||
Mizuho Financial Group, Inc. | 474,000 | 495,733 | ||||||
Natwest Group PLC | EUR | 275,000 | 340,262 | |||||
Natwest Group PLC | 400,000 | 381,632 | ||||||
Royal Bank of Scotland Group PLC | 222,000 | 229,034 | ||||||
UBS Group AG | EUR | 200,000 | 231,256 | |||||
UniCredit SpA | EUR | 235,000 | 284,000 | |||||
UniCredit SpA | 498,000 | 527,509 | ||||||
6,171,402 | ||||||||
Diversified Financial Services — 0.4% |
| |||||||
Fairstone Financial, Inc. | 582,000 | 611,100 | ||||||
GE Capital European Funding | EUR | 145,000 | 274,566 | |||||
GE Capital International Funding Co. ULC | 473,000 | 542,113 | ||||||
1,427,779 | ||||||||
Diversified Minerals — 0.3% |
| |||||||
FMG Resources August 2006 Pty., Ltd. | 339,000 | 345,356 | ||||||
FMG Resources August 2006 Pty., Ltd. | 636,000 | 679,528 | ||||||
Teck Resources, Ltd. | 160,000 | 196,509 | ||||||
1,221,393 | ||||||||
Electric-Distribution — 0.3% |
| |||||||
Energuate Trust | 500,000 | 528,400 | ||||||
Electric-Distribution (continued) |
| |||||||
Infraestructura Energetica Nova SAB de CV | $ | 250,000 | $ | 248,437 | ||||
National Grid PLC | EUR | 200,000 | 230,166 | |||||
OmGrid Funding, Ltd. | 200,000 | 205,500 | ||||||
1,212,503 | ||||||||
Electric-Generation — 0.5% |
| |||||||
ACEA SpA | EUR | 130,000 | 163,553 | |||||
Electricite de France SA | GBP | 100,000 | 197,199 | |||||
LLPL Capital Pte, Ltd. | 364,800 | 425,174 | ||||||
Minejesa Capital BV | 300,000 | 313,875 | ||||||
Mong Duong Finance Holdings BV | 550,000 | 552,750 | ||||||
Orsted AS | GBP | 100,000 | 146,813 | |||||
SPIC Luxembourg Latin America Renewable Energy Investment Co. SARL | 200,000 | 216,208 | ||||||
2,015,572 | ||||||||
Electric-Integrated — 0.3% |
| |||||||
E.ON International Finance BV | GBP | 100,000 | 185,972 | |||||
Empresas Publicas de Medellin ESP | 400,000 | 405,000 | ||||||
Empresas Publicas de Medellin ESP | 320,000 | 320,960 | ||||||
Fortum Oyj | EUR | 190,000 | 237,963 | |||||
1,149,895 | ||||||||
Electric-Transmission — 0.1% |
| |||||||
Transelec SA | 400,000 | 436,000 | ||||||
Energy-Alternate Sources — 0.2% |
| |||||||
Greenko Solar Mauritius, Ltd. | 400,000 | 427,600 |
36 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
| |||||||
Energy-Alternate Sources (continued) |
| |||||||
ReNew Power Synthetic | $ | 200,000 | $ | 209,800 | ||||
ReNew Power, Ltd. | 200,000 | 207,260 | ||||||
844,660 | ||||||||
Finance-Consumer Loans — 0.1% |
| |||||||
goeasy, Ltd. | 533,000 | 552,321 | ||||||
Finance-Leasing Companies — 0.2% |
| |||||||
BOC Aviation, Ltd. | 580,000 | 557,818 | ||||||
Food-Meat Products — 0.2% |
| |||||||
BRF SA | 200,000 | 204,000 | ||||||
Minerva Luxembourg SA | 400,000 | 391,000 | ||||||
595,000 | ||||||||
Food-Retail — 0.0% |
| |||||||
Auchan Holding SA | EUR | 100,000 | 135,850 | |||||
Gold Mining — 0.1% |
| |||||||
AngloGold Ashanti Holdings PLC | 208,000 | 210,151 | ||||||
Industrial Gases — 0.1% |
| |||||||
Yingde Gases Investment, Ltd. | 300,000 | 310,229 | ||||||
Insurance-Life/Health — 0.0% |
| |||||||
Athene Holding, Ltd. | 44,000 | 45,185 | ||||||
Manulife Financial Corp. | 71,000 | 77,966 | ||||||
123,151 | ||||||||
Insurance-Property/Casualty — 0.0% |
| |||||||
Enstar Group, Ltd. | 163,000 | 182,079 | ||||||
Insurance-Reinsurance — 0.1% |
| |||||||
Fairfax Financial Holdings, Ltd. | EUR | 160,000 | 202,890 | |||||
Fairfax Financial Holdings, Ltd. | 40,000 | 39,820 | ||||||
242,710 | ||||||||
Investment Companies — 0.4% |
| |||||||
Huarong Finance II Co., Ltd. | $ | 230,000 | $ | 241,644 | ||||
Huarong Finance II Co., Ltd. | 400,000 | 432,540 | ||||||
JAB Holdings BV | EUR | 200,000 | 265,944 | |||||
MDGH — GMTN BV | 400,000 | 408,500 | ||||||
1,348,628 | ||||||||
Medical Products — 0.0% |
| |||||||
STERIS PLC | 105,000 | 104,911 | ||||||
Medical-Drugs — 0.4% |
| |||||||
Bayer AG | EUR | 100,000 | 120,121 | |||||
Endo Dac/Endo Finance LLC/Endo Finco, Inc. | 400,000 | 402,000 | ||||||
Endo Dac/Endo Finance LLC/Endo Finco, Inc. | 285,000 | 230,850 | ||||||
Shire Acquisitions Investments Ireland DAC | 171,000 | 184,142 | ||||||
Takeda Pharmaceutical Co., Ltd. | EUR | 205,000 | 250,842 | |||||
Takeda Pharmaceutical Co., Ltd. | 204,000 | 193,291 | ||||||
Upjohn Finance BV | EUR | 100,000 | 125,751 | |||||
1,506,997 | ||||||||
Metal-Aluminum — 0.1% |
| |||||||
Indonesia Asahan Aluminium Persero PT | 400,000 | 481,500 | ||||||
Metal-Copper — 0.2% |
| |||||||
First Quantum Minerals, Ltd. | 200,000 | 203,000 | ||||||
First Quantum Minerals, Ltd. | 401,000 | 415,035 | ||||||
618,035 | ||||||||
37 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
| |||||||
Metal-Diversified — 0.0% |
| |||||||
Glencore Capital Finance DAC | EUR | 100,000 | $ | 119,220 | ||||
Metal-Iron — 0.2% |
| |||||||
Mineral Resources, Ltd. | 600,000 | 663,306 | ||||||
Motion Pictures & Services — 0.2% |
| |||||||
Banijay Entertainment SASU | 847,000 | 874,527 | ||||||
Multimedia — 0.1% |
| |||||||
Globo Comunicacao e Participacoes SA | 400,000 | 403,000 | ||||||
Oil Companies-Exploration & Production — 0.6% |
| |||||||
Canadian Natural Resources, Ltd. | 64,000 | 63,790 | ||||||
MEG Energy Corp. | 988,000 | 1,020,555 | ||||||
MEG Energy Corp. | 391,000 | 409,572 | ||||||
Oil India, Ltd. | 400,000 | 443,906 | ||||||
Saka Energi Indonesia PT | 425,000 | 375,062 | ||||||
2,312,885 | ||||||||
Oil Companies-Integrated — 1.5% |
| |||||||
BP Capital Markets PLC | EUR | 125,000 | 151,353 | |||||
BP Capital Markets PLC | GBP | 100,000 | 145,346 | |||||
Ecopetrol SA | 270,000 | 288,090 | ||||||
Ecopetrol SA | 300,000 | 365,220 | ||||||
Lukoil Securities BV | 400,000 | 412,520 | ||||||
Pertamina Persero PT | 200,000 | 247,951 | ||||||
Petro-Canada | 37,000 | 46,207 | ||||||
Oil Companies-Integrated (continued) |
| |||||||
Petrobras Global Finance BV | $ | 400,000 | $ | 421,520 | ||||
Petroleos Mexicanos | 320,000 | 311,168 | ||||||
Petroleos Mexicanos | 350,000 | 290,500 | ||||||
Petroleos Mexicanos | 350,000 | 365,715 | ||||||
Petroleos Mexicanos | 220,000 | 229,900 | ||||||
Petroleos Mexicanos | 350,000 | 332,500 | ||||||
Petroleos Mexicanos | 400,000 | 380,000 | ||||||
Petroleos Mexicanos | 560,000 | 480,278 | ||||||
Petroleos Mexicanos | 800,000 | 811,920 | ||||||
Shell International Finance BV | EUR | 140,000 | 178,568 | |||||
Total Capital International SA | 46,000 | 45,985 | ||||||
5,504,741 | ||||||||
Paper & Related Products — 0.3% |
| |||||||
Inversiones CMPC SA | 200,000 | 198,546 | ||||||
Suzano Austria GmbH | 700,000 | 723,625 | ||||||
922,171 | ||||||||
Petrochemicals — 0.1% |
| |||||||
Equate Petrochemical BV | 200,000 | 217,330 | ||||||
Pipelines — 0.2% |
| |||||||
AI Candelaria Spain SLU | 400,000 | 451,000 | ||||||
Galaxy Pipeline Assets Bidco, Ltd. | 300,000 | 286,860 | ||||||
737,860 | ||||||||
38 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
| |||||||
Real Estate Investment Trusts — 0.2% |
| |||||||
Digital Dutch Finco BV | EUR | 125,000 | $ | 149,475 | ||||
Scentre Group Trust 1/Scentre Group Trust 2 | EUR | 135,000 | 166,895 | |||||
Unibail-Rodamco-Westfield SE | EUR | 200,000 | 241,952 | |||||
558,322 | ||||||||
Real Estate Operations & Development — 0.2% |
| |||||||
Aroundtown SA | EUR | 100,000 | 118,940 | |||||
Aroundtown SA | EUR | 200,000 | 244,414 | |||||
Aroundtown SA | GBP | 100,000 | 147,755 | |||||
Logicor Financing Sarl | EUR | 165,000 | 196,791 | |||||
Samhallsbyggnadsbolaget i Norden AB | EUR | 120,000 | 147,200 | |||||
855,100 | ||||||||
Retail-Petroleum Products — 0.2% |
| |||||||
eG Global Finance PLC | 633,000 | 647,242 | ||||||
Satellite Telecom — 0.5% |
| |||||||
Connect Finco SARL/Connect US Finco LLC | 939,000 | 999,791 | ||||||
Telesat Canada/Telesat LLC | 214,000 | 214,000 | ||||||
Telesat Canada/Telesat LLC | 767,000 | 768,319 | ||||||
1,982,110 | ||||||||
Security Services — 0.2% |
| |||||||
Garda World Security Corp. | 655,000 | 655,000 | ||||||
Semiconductor Components-Integrated Circuits — 0.1% |
| |||||||
TSMC Global, Ltd. | 200,000 | 195,178 | ||||||
Steel-Producers — 0.1% |
| |||||||
Shandong Iron & Steel Xinheng International Co., Ltd. | 200,000 | 202,097 | ||||||
SupraNational Banks — 0.2% |
| |||||||
European Bank for Reconstruction & Development | $ | 165,000 | $ | 169,975 | ||||
International Bank for Reconstruction & Development | 164,000 | 156,893 | ||||||
International Bank for Reconstruction & Development | 88,000 | 96,667 | ||||||
International Finance Corp. | 186,000 | 186,604 | ||||||
610,139 | ||||||||
Telecom Services — 0.2% |
| |||||||
Altice France Holding SA | 630,000 | 620,733 | ||||||
NTT Finance Corp. | EUR | 125,000 | 146,262 | |||||
766,995 | ||||||||
Telephone-Integrated — 0.1% |
| |||||||
Telefonica Emisiones SAU | 230,000 | 268,953 | ||||||
Transport-Rail — 0.0% |
| |||||||
Canadian Pacific Railway Co. | 61,000 | 88,349 | ||||||
Transport-Services — 0.2% |
| |||||||
Rumo Luxembourg SARL | 290,000 | 304,854 | ||||||
Yunda Holding Investment, Ltd. | 440,000 | 435,032 | ||||||
739,886 | ||||||||
Vitamins & Nutrition Products — 0.1% |
| |||||||
Herbalife Nutrition, Ltd./HLF Financing, Inc. | 190,000 | 206,625 | ||||||
Warehousing & Harbor Transportation Services — 0.1% |
| |||||||
DP World PLC | 400,000 | 416,732 | ||||||
Total Foreign Corporate Bonds & Notes | ||||||||
(cost $60,864,545) | 61,755,376 | |||||||
FOREIGN GOVERNMENT OBLIGATIONS — 18.2% |
| |||||||
Banks-Special Purpose — 0.1% |
| |||||||
Industrial Bank of Korea | 312,000 | 308,877 |
39 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
FOREIGN GOVERNMENT OBLIGATIONS (continued) |
| |||||||
Banks-Special Purpose (continued) | ||||||||
Korea Development Bank | $ | 200,000 | $ | 199,984 | ||||
508,861 | ||||||||
Regional Agencies — 0.1% |
| |||||||
Kommunekredit | EUR | 260,000 | 303,088 | |||||
Regional Authority — 0.1% |
| |||||||
Province of Quebec, Canada | EUR | 385,000 | 447,670 | |||||
Sovereign — 17.8% |
| |||||||
Arab Republic of Egypt | 550,000 | 576,609 | ||||||
Arab Republic of Egypt | 370,000 | 364,704 | ||||||
Arab Republic of Egypt | 1,000,000 | 1,063,620 | ||||||
Arab Republic of Egypt | 1,000,000 | 993,800 | ||||||
Dominican Republic | 1,250,000 | 1,275,000 | ||||||
Dominican Republic | 400,000 | 382,600 | ||||||
Emirate of Abu Dhabi | 460,000 | 484,950 | ||||||
Emirate of Abu Dhabi | 700,000 | 737,968 | ||||||
Emirate of Abu Dhabi | 1,070,000 | 1,161,014 | ||||||
Emirate of Abu Dhabi | 880,000 | 838,094 | ||||||
Emirate of Abu Dhabi | 200,000 | 217,120 | ||||||
Federal Republic of Ethiopia | 1,070,000 | 983,416 | ||||||
Federal Republic of Nigeria | 950,000 | 967,983 | ||||||
Federal Republic of Nigeria | 500,000 | 548,750 | ||||||
Sovereign (continued) |
| |||||||
Federative Republic Of Brazil | $ | 750,000 | $ | 757,177 | ||||
Federative Republic of Brazil | 600,000 | 581,550 | ||||||
Federative Republic of Brazil | 580,000 | 524,639 | ||||||
Federative Republic of Brazil | 500,000 | 518,255 | ||||||
Government of Romania | 460,000 | 459,519 | ||||||
Government of Romania | 500,000 | 482,950 | ||||||
Government of Ukraine | 200,000 | 198,960 | ||||||
Government of Ukraine | 1,020,000 | 1,014,696 | ||||||
Government of Ukraine | 400,000 | 421,305 | ||||||
Government of Ukraine | 250,000 | 269,993 | ||||||
Government of Ukraine | 800,000 | 931,406 | ||||||
Islamic Republic of Pakistan | 655,000 | 682,837 | ||||||
Islamic Republic of Pakistan | 810,000 | 886,950 | ||||||
Kingdom of Bahrain | 590,000 | 585,521 | ||||||
Kingdom of Bahrain | 540,000 | 512,968 | ||||||
Kingdom of Bahrain | 200,000 | 186,500 | ||||||
Kingdom of Bahrain | 340,000 | 377,434 | ||||||
Kingdom of Bahrain | 1,070,000 | 1,187,807 | ||||||
Kingdom of Saudi Arabia | 1,085,000 | 1,141,897 |
40 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
FOREIGN GOVERNMENT OBLIGATIONS (continued) |
| |||||||
Sovereign (continued) |
| |||||||
Kingdom of Saudi Arabia | $ | 1,350,000 | $ | 1,420,794 | ||||
Kingdom of Saudi Arabia | 1,040,000 | 1,129,700 | ||||||
Kingdom of Saudi Arabia | 300,000 | 334,890 | ||||||
Kingdom of Saudi Arabia | 800,000 | 895,938 | ||||||
Kingdom of Saudi Arabia | 280,000 | 331,027 | ||||||
Oriental Republic of Uruguay | 187,500 | 217,035 | ||||||
People’s Republic of China | 670,000 | 582,726 | ||||||
Republic of the Philippines | 530,000 | 769,978 | ||||||
Republic of Angola Senior Notes | 700,000 | 670,530 | ||||||
Republic of Angola | 550,000 | 574,750 | ||||||
Republic of Cameroon | 550,000 | 596,403 | ||||||
Republic of Chile | 600,000 | 601,512 | ||||||
Republic of Colombia | 1,295,000 | 1,266,627 | ||||||
Republic of Colombia | 500,000 | 545,250 | ||||||
Republic of Colombia | 230,000 | 244,525 | ||||||
Republic of Colombia | 400,000 | 528,000 | ||||||
Republic of Colombia | 320,000 | 483,011 | ||||||
Republic of El Salvador | 570,000 | 569,145 | ||||||
Republic of El Salvador | 560,000 | 553,840 | ||||||
Sovereign (continued) |
| |||||||
Republic of El Salvador | $ | 85,000 | $ | 90,440 | ||||
Republic of Ghana | 560,000 | 517,597 | ||||||
Republic of Ghana | 253,000 | 234,364 | ||||||
Republic of Ghana | 500,000 | 622,250 | ||||||
Republic of Guatemala | 700,000 | 766,507 | ||||||
Republic of Indonesia | 1,250,000 | 1,199,224 | ||||||
Republic of Indonesia | 500,000 | 549,000 | ||||||
Republic of Indonesia | 1,100,000 | 1,204,779 | ||||||
Republic of Ireland | EUR | 120,000 | 167,981 | |||||
Republic of Ivory Coast | 1,570,000 | 1,603,629 | ||||||
Republic of Ivory Coast | 350,000 | 379,330 | ||||||
Republic of Kazakhstan | 480,000 | 556,800 | ||||||
Republic of Kazakhstan | 350,000 | 495,958 | ||||||
Republic of Kenya | 570,000 | 626,145 | ||||||
Republic of Kenya | 200,000 | 212,150 | ||||||
Republic of Panama | 200,000 | 218,198 | ||||||
Republic of Panama | 200,000 | 269,002 | ||||||
Republic of Paraguay | 450,000 | 508,505 | ||||||
Republic of Paraquay | 700,000 | 791,007 |
41 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
FOREIGN GOVERNMENT OBLIGATIONS (continued) |
| |||||||
Sovereign (continued) |
| |||||||
Republic of South Africa | $ | 580,000 | $ | 570,604 | ||||
Republic of Sri Lanka | 820,000 | 555,443 | ||||||
Republic of Sri Lanka | 400,000 | 242,800 | ||||||
Republic of Sri Lanka | 300,000 | 187,035 | ||||||
Republic of Sri Lanka | 1,050,000 | 638,820 | ||||||
Republic of Sri Lanka | 800,000 | 486,720 | ||||||
Republic of the Philippines | 405,000 | 378,443 | ||||||
Republic of the Philippines | 200,000 | 221,685 | ||||||
Republic of Turkey | 600,000 | 557,160 | ||||||
Republic of Turkey | 1,800,000 | 1,624,104 | ||||||
Republic of Turkey | 360,000 | 352,145 | ||||||
Republic of Turkey | 450,000 | 364,568 | ||||||
Republic of Turkey | 460,000 | 472,512 | ||||||
Russian Federation | 2,000,000 | 2,185,000 | ||||||
State of Qatar | 330,000 | 358,463 | ||||||
State of Qatar | 320,000 | 357,600 | ||||||
State of Qatar | 660,000 | 737,550 | ||||||
State of Qatar | 335,000 | 388,600 | ||||||
Sovereign (continued) |
| |||||||
State of Qatar | $ | 1,120,000 | $ | 1,299,200 | ||||
State of Qatar | 1,140,000 | 1,395,178 | ||||||
State of Qatar | 400,000 | 505,520 | ||||||
Sultanate of Oman | 600,000 | 620,280 | ||||||
Sultanate of Oman | 1,175,000 | 1,296,025 | ||||||
Sultanate of Oman | 550,000 | 606,650 | ||||||
Sultanate of Oman | 900,000 | 997,875 | ||||||
United Mexican States | 600,000 | 565,404 | ||||||
United Mexican States | 320,000 | 322,806 | ||||||
United Mexican States | 160,000 | 168,026 | ||||||
United Mexican States | 1,150,000 | 1,241,057 | ||||||
65,343,812 | ||||||||
Sovereign Agency — 0.1% |
| |||||||
Kommunalbanken AS | EUR 315,000 | 369,627 | ||||||
Total Foreign Government Obligations | ||||||||
(cost $68,491,160) | 66,973,058 | |||||||
U.S. GOVERNMENT AGENCIES — 15.2% |
| |||||||
Federal Home Loan Bank — 0.3% |
| |||||||
3.25% due 11/16/2028 | 1,000,000 | 1,124,871 | ||||||
Federal Home Loan Mtg. Corp. — 4.0% |
| |||||||
2.00% due 03/01/2051 | 2,493,971 | 2,488,339 | ||||||
2.50% due 01/01/2028 | 108,578 | 113,759 | ||||||
2.50% due 04/01/2028 | 35,013 | 36,685 | ||||||
2.50% due 03/01/2031 | 60,824 | 63,312 | ||||||
2.50% due 11/01/2032 | 484,246 | 509,741 | ||||||
3.00% due 07/01/2045 | 1,028,251 | 1,083,541 | ||||||
3.00% due 10/01/2045 | 339,211 | 357,094 | ||||||
3.50% due 03/01/2042 | 173,082 | 188,169 | ||||||
3.50% due 04/01/2042 | 176,314 | 191,167 | ||||||
3.50% due 09/01/2043 | 147,435 | 159,971 | ||||||
3.50% due 07/01/2045 | 1,610,842 | 1,734,105 |
42 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
U.S. GOVERNMENT AGENCIES (continued) |
| |||||||
Federal Home Loan Mtg. Corp. (continued) | ||||||||
3.50% due 03/01/2046 | $ | 489,139 | $ | 524,612 | ||||
3.50% due 11/01/2047 | 675,240 | 716,993 | ||||||
3.50% due 01/01/2048 | 631,085 | 674,396 | ||||||
3.50% due 03/01/2048 | 2,185,405 | 2,349,058 | ||||||
3.50% due 04/01/2050 | 642,736 | 678,271 | ||||||
4.00% due 01/01/2046 | 174,183 | 192,184 | ||||||
4.00% due 07/01/2049 | 273,832 | 297,377 | ||||||
4.00% due 01/01/2050 | 297,581 | 318,895 | ||||||
4.50% due 03/01/2039 | 769,778 | 868,312 | ||||||
4.50% due 12/01/2039 | 4,617 | 5,154 | ||||||
4.50% due 07/01/2045 | 808,656 | 879,737 | ||||||
5.00% due 02/01/2034 | 11,388 | 13,174 | ||||||
5.00% due 05/01/2034 | 11,419 | 12,841 | ||||||
5.00% due 11/01/2043 | 126,031 | 146,610 | ||||||
5.50% due 05/01/2037 | 28,192 | 33,123 | ||||||
6.00% due 03/01/2040 | 22,868 | 27,331 | ||||||
6.50% due 02/01/2035 | 4,796 | 5,454 | ||||||
Federal Home Loan Mtg. Corp. FRS | 3,674 | 3,817 | ||||||
3.03% (12 ML+1.88%) | 44,098 | 46,942 | ||||||
Federal Home Loan Mtg. Corp. REMIC | 112,556 | 116,225 | ||||||
Federal Home Loan Mtg. Corp. REMIC FRS | 168,221 | 25,679 | ||||||
14,862,068 | ||||||||
Federal National Mtg. Assoc. — 6.6% |
| |||||||
2.00% due 07/01/2035 | 660,062 | 677,785 | ||||||
2.00% due 11/01/2035 | 582,143 | 600,291 | ||||||
2.00% due 12/01/2050 | 983,757 | 983,553 | ||||||
2.50% due 12/01/2026 | 221,260 | 231,073 | ||||||
2.50% due 08/01/2031 | 1,043,870 | 1,086,044 | ||||||
2.50% due 02/01/2032 | 453,802 | 475,859 | ||||||
2.50% due 05/01/2050 | 360,787 | 371,539 | ||||||
2.50% due 06/01/2050 | 781,991 | 802,735 | ||||||
2.50% due 07/01/2050 | 709,835 | 732,426 | ||||||
2.50% due 10/01/2050 | 476,434 | 489,368 | ||||||
3.00% due 10/01/2027 | 101,493 | 107,179 | ||||||
3.00% due 03/01/2030 | 691,556 | 735,755 | ||||||
3.00% due 10/01/2030 | 92,978 | 98,249 | ||||||
3.00% due 02/01/2033 | 859,800 | 908,328 | ||||||
3.00% due 07/01/2034 | 435,960 | 459,741 | ||||||
3.00% due 11/01/2039 | 361,989 | 377,259 | ||||||
3.00% due 12/01/2042 | 67,899 | 72,195 | ||||||
3.00% due 04/01/2047 | 1,163,506 | 1,224,914 | ||||||
3.00% due 09/01/2048 | 1,067,947 | 1,121,016 | ||||||
3.00% due 11/01/2048 | 839,992 | 880,547 | ||||||
3.00% due 06/01/2049 | 592,969 | 625,930 | ||||||
3.00% due 03/01/2050 | 750,507 | 787,193 | ||||||
3.50% due 08/01/2026 | 35,694 | 38,085 | ||||||
3.50% due 08/01/2027 | 25,214 | 26,876 | ||||||
3.50% due 10/01/2028 | 15,903 | 17,249 | ||||||
3.50% due 02/01/2043 | 80,874 | 88,389 | ||||||
Federal National Mtg. Assoc. (continued) |
| |||||||
3.50% due 10/01/2045 | $ | 154,330 | $ | 166,106 | ||||
3.50% due 11/01/2045 | 75,703 | 80,943 | ||||||
3.50% due 03/01/2046 | 1,050,883 | 1,123,592 | ||||||
3.50% due 07/01/2046 | 79,497 | 85,537 | ||||||
3.50% due 04/01/2048 | 837,786 | 897,942 | ||||||
4.00% due 11/01/2025 | 48,486 | 51,633 | ||||||
4.00% due 03/01/2039 | 557,834 | 601,818 | ||||||
4.00% due 02/01/2045 | 876,289 | 970,208 | ||||||
4.00% due 05/01/2047 | 216,305 | 233,969 | ||||||
4.00% due 07/01/2047 | 931,875 | 1,006,964 | ||||||
4.00% due 06/01/2048 | 421,479 | 457,599 | ||||||
4.00% due 09/01/2048 | 407,010 | 437,143 | ||||||
4.00% due 01/01/2049 | 624,425 | 670,107 | ||||||
4.00% due 03/01/2050 | 548,496 | 588,152 | ||||||
4.50% due 11/01/2022 | 991 | 1,039 | ||||||
4.50% due 06/01/2023 | 3,056 | 3,208 | ||||||
4.50% due 08/01/2045 | 1,047,478 | 1,178,610 | ||||||
4.50% due 10/01/2048 | 31,130 | 33,878 | ||||||
4.50% due 11/01/2048 | 629,492 | 686,935 | ||||||
5.00% due 01/01/2023 | 1,266 | 1,328 | ||||||
5.00% due 03/01/2034 | 10,531 | 12,224 | ||||||
5.00% due 05/01/2035 | 5,966 | 6,938 | ||||||
5.00% due 05/01/2040 | 47,051 | 54,715 | ||||||
5.50% due 06/01/2038 | 14,291 | 16,802 | ||||||
6.00% due 02/01/2032 | 3,815 | 4,288 | ||||||
6.00% due 05/01/2034 | 1,005 | 1,201 | ||||||
6.00% due 10/01/2034 | 14,878 | 16,735 | ||||||
7.50% due 01/01/2030 | 722 | 731 | ||||||
8.00% due 11/01/2028 | 1,352 | 1,479 | ||||||
Federal National Mtg. Assoc. FRS | 33,696 | 35,024 | ||||||
2.29% (12 ML+1.77%) | 34,117 | 35,927 | ||||||
2.33% (12 ML+1.83%) | 13,590 | 14,351 | ||||||
2.33% (12 ML+1.82%) | 9,698 | 10,233 | ||||||
2.36% (12 ML+1.57%) | 7,381 | 7,764 | ||||||
2.59% (1 Yr USTYCR+2.22%) | 25,956 | 27,261 | ||||||
2.74% (12 ML+1.67%) | 30,675 | 32,008 | ||||||
2.87% (12 ML+1.91%) | 26,759 | 28,324 | ||||||
3.00% (1 Yr USTYCR+2.27%) | 16,223 | 17,262 | ||||||
Federal National Mtg. Assoc. REMIC |
| |||||||
Series 2018-27, Class EA | 256,837 | 273,881 | ||||||
Series 2018-35, Class CD | 238,524 | 252,304 | ||||||
24,145,741 | ||||||||
Government National Mtg. Assoc. — 1.9% |
| |||||||
2.00% due 11/20/2050 | 986,903 | 996,799 | ||||||
2.50% due 05/20/2050 | 462,632 | 477,244 |
43 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
U.S. GOVERNMENT AGENCIES (continued) |
| |||||||
Government National Mtg. Assoc. (continued) | ||||||||
2.50% due 12/20/2050 | $ | 1,980,704 | $ | 2,044,032 | ||||
3.00% due 05/20/2046 | 1,027,989 | 1,088,581 | ||||||
3.00% due 05/20/2050 | 1,149,546 | 1,197,921 | ||||||
4.50% due 10/20/2045 | 768,496 | 860,067 | ||||||
4.50% due 04/20/2047 | 386,140 | 425,255 | ||||||
7,089,899 | ||||||||
Uniform Mtg. Backed Securities — 2.4% |
| |||||||
1.50% due April 15 TBA | 500,000 | 502,109 | ||||||
1.50% due April 30 TBA | 600,000 | 579,668 | ||||||
2.00% due April 30 TBA | 2,750,000 | 2,741,890 | ||||||
2.50% due April 30 TBA | 2,700,000 | 2,768,713 | ||||||
3.00% due April 30 TBA | 2,000,000 | 2,083,164 | ||||||
8,675,544 | ||||||||
Total U.S. Government Agencies | ||||||||
(cost $54,947,310) | 55,898,123 | |||||||
U.S. GOVERNMENT TREASURIES — 1.1% |
| |||||||
United States Treasury Notes — 1.1% |
| |||||||
0.13% due 11/30/2022 | 1,038,000 | 1,037,716 | ||||||
0.13% due 12/15/2023 | 200,000 | 199,086 | ||||||
1.50% due 02/15/2030 | 1,090,000 | 1,075,864 | ||||||
1.63% due 08/15/2029 | 1,000,000 | 1,002,851 | ||||||
2.00% due 05/31/2021 | 277,000 | 277,881 | ||||||
2.50% due 01/31/2024 | 250,000 | 265,342 | ||||||
Total U.S. Government Treasuries | ||||||||
(cost $3,917,901) | 3,858,740 | |||||||
LOANS(9)(10)(11) — 4.4% |
| |||||||
Aerospace/Defense-Equipment — 0.1% |
| |||||||
Spirit Aerosystems, Inc. FRS | 111,113 | 111,390 | ||||||
WP CPP Holdings LLC FRS | 122,499 | 119,069 | ||||||
230,459 | ||||||||
Airlines — 0.1% |
| |||||||
American Airlines, Inc. FRS | 125,000 | 110,045 | ||||||
WestJet Airlines, Ltd. FRS | 178,629 | 173,010 | ||||||
283,055 | ||||||||
Apparel Manufacturers — 0.0% |
| |||||||
Samsonite IP Holdings Sarl FRS | 123,070 | 123,839 | ||||||
Applications Software — 0.1% |
| |||||||
Project Boost Purchaser LLC FRS | $ | 165,177 | $ | 163,071 | ||||
Realpage, Inc. FRS | 55,137 | 54,838 | ||||||
VS Buyer LLC FRS | 86,628 | 86,249 | ||||||
304,158 | ||||||||
Athletic Equipment — 0.0% |
| |||||||
Varsity Brands Holding Co., Inc. FRS | 143,409 | 138,539 | ||||||
Auction Houses/Art Dealers — 0.0% |
| |||||||
Sotheby’s FRS | 89,507 | 90,010 | ||||||
Auto Repair Centers — 0.1% |
| |||||||
Mavis Tire Express Services Corp. FRS | 138,924 | 138,403 | ||||||
Wand NewCo. 3, Inc. FRS | 101,239 | 99,868 | ||||||
238,271 | ||||||||
Auto/Truck Parts & Equipment-Original — 0.1% |
| |||||||
TI Group Automotive Systems LLC FRS | 145,640 | 145,033 | ||||||
Broadcast Services/Program — 0.0% |
| |||||||
NEP Group, Inc. FRS | 136,850 | 132,545 | ||||||
Building & Construction-Misc. — 0.0% |
| |||||||
Verra Mobility Corp. FRS | 96,990 | 96,525 | ||||||
Building Products-Air & Heating — 0.0% |
| |||||||
API Heat Transfer ThermaSys Corp. FRS | 179,888 | 76,452 | ||||||
44 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
LOANS(9)(10)(11) (continued) |
| |||||||
Building Products-Doors & Windows — 0.0% |
| |||||||
CHI Doors Holdings Corp. FRS | $ | 135,706 | $ | 135,451 | ||||
Building-Heavy Construction — 0.0% |
| |||||||
USIC Holdings, Inc. FRS | 105,143 | 104,617 | ||||||
Cable/Satellite TV — 0.1% |
| |||||||
CSC Holdings LLC FRS | 37,045 | 36,461 | ||||||
CSC Holdings LLC FRS | 150,549 | 148,614 | ||||||
UPC Broadband Holdings BV FRS | 50,884 | 50,703 | ||||||
UPC Broadband Holdings BV FRS | 50,884 | 50,703 | ||||||
Virgin Media Bristol LLC FRS | 66,000 | 65,823 | ||||||
352,304 | ||||||||
Casino Hotels — 0.2% |
| |||||||
Caesars Resort Collection LLC FRS | 202,964 | 199,564 | ||||||
CityCenter Holdings LLC FRS | 137,779 | 135,923 | ||||||
Golden Nugget, Inc. FRS | 125,931 | 123,885 | ||||||
Station Casinos LLC FRS | 87,691 | 86,195 | ||||||
545,567 | ||||||||
Casino Services — 0.0% |
| |||||||
Stars Group Holdings FRS | 71,364 | 71,453 | ||||||
Cellular Telecom — 0.1% |
| |||||||
Altice France SA FRS | $ | 37,420 | $ | 37,018 | ||||
Altice France SA FRS | 171,063 | 170,079 | ||||||
CCI Buyer, Inc. FRS | 142,381 | 142,499 | ||||||
349,596 | ||||||||
Chemicals-Diversified — 0.0% |
| |||||||
Hexion, Inc. FRS | 138,532 | 138,445 | ||||||
Chemicals-Specialty — 0.1% |
| |||||||
Diamond BC BV FRS | 137,477 | 136,660 | ||||||
PQ Corp. FRS | 51,618 | 51,580 | ||||||
Starfruit US HoldCo. LLC FRS | 183,482 | 180,500 | ||||||
368,740 | ||||||||
Commercial Services-Finance — 0.1% |
| |||||||
MoneyGram International, Inc. FRS | 108,947 | 108,648 | ||||||
MPH Acquisition Holdings LLC FRS | 95,910 | 95,343 | ||||||
Travelport Finance Luxembourg SARL FRS | 97,324 | 99,125 | ||||||
Travelport Finance Luxembourg SARL FRS | 117,298 | 95,121 | ||||||
398,237 | ||||||||
Computer Data Security — 0.0% |
| |||||||
McAfee LLC FRS | 118,868 | 118,852 | ||||||
45 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
LOANS(9)(10)(11) (continued) | ||||||||
Computer Graphics — 0.1% |
| |||||||
Corel, Inc. FRS | $ | 143,058 | $ | 141,628 | ||||
Computer Services — 0.0% |
| |||||||
Tempo Acquisition LLC FRS | 118,735 | 118,617 | ||||||
Computer Software — 0.1% |
| |||||||
Camelot Finance SA FRS | 100,872 | 100,074 | ||||||
Cornerstone OnDemand, Inc. FRS | 99,607 | 99,607 | ||||||
Rackspace Hosting, Inc. FRS | 143,182 | 141,893 | ||||||
341,574 | ||||||||
Computers-Integrated Systems — 0.0% |
| |||||||
Everi Payments, Inc. FRS | 60,653 | 63,382 | ||||||
Containers-Metal/Glass — 0.1% |
| |||||||
Mauser Packaging Solutions Holding, Co. FRS | 187,138 | 182,760 | ||||||
Containers-Paper/Plastic — 0.2% |
| |||||||
Charter NEX US, Inc. FRS | 93,896 | 93,984 | ||||||
Graham Packaging Co., Inc. FRS | 119,224 | 118,429 | ||||||
Patriot Container Corp. FRS | 107,692 | 106,346 | ||||||
Reynolds Group Holdings, Inc. FRS | 103,754 | 102,522 | ||||||
Trident TPI Holdings, Inc. FRS | 86,324 | 85,380 | ||||||
506,661 | ||||||||
Cruise Lines — 0.0% |
| |||||||
Hornblower Sub LLC FRS | $ | 114,947 | $ | 105,176 | ||||
Data Processing/Management — 0.0% |
| |||||||
CCC Information Services, Inc. FRS | 135,825 | 135,598 | ||||||
Direct Marketing — 0.1% |
| |||||||
Terrier Media Buyer, Inc. FRS | 214,371 | 212,260 | ||||||
Distribution/Wholesale — 0.1% |
| |||||||
Fastlane Parent Co., Inc. FRS | 105,123 | 104,794 | ||||||
Univar USA, Inc. FRS | 122,290 | 121,710 | ||||||
226,504 | ||||||||
E-Commerce/Products — 0.0% |
| |||||||
CNT Holdings I Corp. FRS | 86,098 | 85,807 | ||||||
CNT Holdings I Corp. FRS | 25,955 | 26,215 | ||||||
112,022 | ||||||||
E-Commerce/Services — 0.1% |
| |||||||
RentPath LLC FRS | 1,062,906 | 159,436 | ||||||
Electronic Components-Misc. — 0.0% |
| |||||||
AI Ladder Luxembourg Subco SARL FRS | 131,546 | 131,546 | ||||||
Electronic Components-Semiconductors — 0.0% |
| |||||||
Bright Bidco BV FRS | 176,985 | 134,635 | ||||||
Electronic Parts Distribution — 0.1% |
| |||||||
Tech Data Corp. FRS | 105,961 | 106,193 |
46 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
LOANS(9)(10)(11) (continued) | ||||||||
Electronic Parts Distribution (continued) | ||||||||
Tech Data Corp. FRS | $ | 121,570 | $ | 121,671 | ||||
227,864 | ||||||||
Enterprise Software/Service — 0.3% |
| |||||||
Applied Systems, Inc. FRS | 132,303 | 131,766 | ||||||
Banff Merger Sub, Inc. FRS | 113,839 | 113,256 | ||||||
Dcert Buyer, Inc. FRS | 152,348 | 151,967 | ||||||
Epicor Software Corp. FRS | 104,475 | 104,116 | ||||||
Epicor Software Corp. FRS | 13,411 | 13,836 | ||||||
Finastra USA, Inc. FRS | 141,524 | 138,502 | ||||||
Greeneden US Holdings II LLC FRS | 127,826 | 127,730 | ||||||
Sophia L.P. FRS | 161,166 | 160,879 | ||||||
Ultimate Software Group, Inc. FRS | 101,959 | 101,747 | ||||||
Ultimate Software Group, Inc. FRS | 20,759 | 20,733 | ||||||
Ultimate Software Group, Inc. FRS | 35,449 | 36,290 | ||||||
1,100,822 | ||||||||
Finance-Credit Card — 0.0% |
| |||||||
Pi US Mergerco, Inc. FRS | 97,582 | 97,414 | ||||||
Finance-Investment Banker/Broker — 0.0% |
| |||||||
Deerfield Dakota Holding LLC FRS | $ | 68,550 | $ | 68,550 | ||||
Motion Finco SARL FRS | 8,006 | 7,724 | ||||||
Motion Finco SARL FRS | 60,914 | 58,769 | ||||||
135,043 | ||||||||
Food-Misc./Diversified — 0.1% |
| |||||||
Dole Food Co., Inc. FRS | 80,067 | 79,967 | ||||||
Dole Food Co., Inc. FRS | 270 | 270 | ||||||
Froneri US, Inc. FRS | 120,680 | 118,889 | ||||||
199,126 | ||||||||
Gambling (Non-Hotel) — 0.0% |
| |||||||
Scientific Games International, Inc. FRS | 140,461 | 137,564 | ||||||
Human Resources — 0.1% |
| |||||||
Creative Artists Agency LLC FRS | 104,888 | 103,708 | ||||||
Team Health Holdings, Inc. FRS | 152,292 | 141,306 | ||||||
245,014 | ||||||||
Insurance Brokers — 0.1% |
| |||||||
Alliant Holdings Intermediate LLC FRS | 136,834 | 134,934 | ||||||
HUB International, Ltd. FRS | 137,760 | 135,706 | ||||||
270,640 | ||||||||
Insurance-Property/Casualty — 0.1% |
| |||||||
Asurion LLC FRS | 93,565 | 93,258 |
47 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
LOANS(9)(10)(11) (continued) |
| |||||||
Insurance-Property/Casualty (continued) |
| |||||||
Asurion LLC FRS | $ | 46,635 | $ | 46,305 | ||||
Sedgwick Claims Management Services, Inc. FRS | 182,173 | 179,412 | ||||||
318,975 | ||||||||
Internet Financial Services — 0.1% |
| |||||||
Acuris Finance US, Inc. FRS | 41,404 | 41,327 | ||||||
ION Trading Finance, Ltd. FRS | 140,878 | 140,724 | ||||||
182,051 | ||||||||
Internet Gambling — 0.0% |
| |||||||
Golden Nugget, Inc. FRS | 14,602 | 16,573 | ||||||
Internet Telephone — 0.0% |
| |||||||
Cablevision Lightpath LLC FRS | 69,855 | 69,681 | ||||||
Investment Companies — 0.0% |
| |||||||
Nexus Buyer LLC FRS | 42,761 | 42,526 | ||||||
Investment Management/Advisor Services — 0.1% |
| |||||||
Advisor Group Holdings, Inc. FRS | 144,175 | 143,943 | ||||||
Machinery-Electrical — 0.1% |
| |||||||
Alliance Laundry Systems LLC FRS | 86,043 | 85,774 | ||||||
Brookfield WEC Holdings, Inc. FRS | 100,688 | 99,735 | ||||||
185,509 | ||||||||
Machinery-General Industrial — 0.0% |
| |||||||
Vertical US Newco, Inc. FRS | 138,656 | 138,830 | ||||||
Machinery-Pumps — 0.0% |
| |||||||
STS Operating, Inc. FRS | $ | 135,663 | $ | 131,791 | ||||
Medical Information Systems — 0.1% |
| |||||||
Athenahealth, Inc. FRS | 135,895 | 136,008 | ||||||
Navicure, Inc. FRS | 112,276 | 112,065 | ||||||
248,073 | ||||||||
Medical Labs & Testing Services — 0.1% |
| |||||||
Envision Healthcare Corp. FRS | 259,679 | 223,144 | ||||||
Medical-Drugs — 0.1% |
| |||||||
Akorn Operating Co. LLC FRS | 49,517 | 50,508 | ||||||
Alphabet Holding Co., Inc. FRS | 143,766 | 142,662 | ||||||
Bausch Health Americas, Inc. FRS | 77,811 | 77,340 | ||||||
270,510 | ||||||||
Medical-Hospitals — 0.1% |
| |||||||
Cano Health LLC FRS | 25,481 | 25,449 | ||||||
Cano Health LLC FRS | 69,717 | 69,630 | ||||||
RegionalCare Hospital Partners Holdings, Inc. FRS | 95,393 | 95,105 | ||||||
190,184 | ||||||||
Miscellaneous Manufacturing — 0.0% |
| |||||||
Excelitas Technologies Corp. FRS | 105,000 | 105,000 | ||||||
48 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
LOANS(9)(10)(11) (continued) |
| |||||||
Non-Hazardous Waste Disposal — 0.0% |
| |||||||
GFL Environmental, Inc. FRS | $ | 71,351 | $ | 71,326 | ||||
Oil-Field Services — 0.0% |
| |||||||
Apergy Corp. FRS | 118,755 | 120,833 | ||||||
Pharmacy Services — 0.1% |
| |||||||
Change Healthcare Holdings LLC FRS | 92,789 | 92,627 | ||||||
HC Group Holdings II, Inc. FRS | 139,014 | 138,406 | ||||||
231,033 | ||||||||
Physical Therapy/Rehabilitation Centers — 0.0% |
| |||||||
Upstream Newco, Inc. FRS | 138,934 | 138,500 | ||||||
Pipelines — 0.2% |
| |||||||
Blackstone CQP Holdco LP FRS | 191,780 | 191,540 | ||||||
Buckeye Partners LP FRS | 187,821 | 186,569 | ||||||
Medallion Midland Acquisition LLC FRS | 145,154 | 142,341 | ||||||
520,450 | ||||||||
Protection/Safety — 0.0% |
| |||||||
Prime Security Services Borrower LLC FRS | 108,062 | 107,444 | ||||||
Publishing-Periodicals — 0.0% |
| |||||||
Nielsen Finance LLC FRS | 99,849 | 99,587 | ||||||
Quarrying — 0.1% |
| |||||||
US Silica Co. FRS | 148,872 | 143,103 | ||||||
Real Estate Investment Trusts — 0.0% |
| |||||||
Claros Mtg. Trust, Inc. FRS | $ | 87,335 | $ | 87,117 | ||||
Real Estate Management/Services — 0.0% |
| |||||||
Cushman & Wakefield FRS | 136,107 | 133,181 | ||||||
Rental Auto/Equipment — 0.0% |
| |||||||
Rent-A-Center, Inc. FRS | 50,228 | 50,395 | ||||||
Research & Development — 0.0% |
| |||||||
PAREXEL International Corp. FRS | 125,205 | 123,640 | ||||||
Resort/Theme Parks — 0.1% |
| |||||||
SeaWorld Parks & Entertainment, Inc. FRS | 207,821 | 204,011 | ||||||
Retail-Auto Parts — 0.0% |
| |||||||
LS Group OpCo Acquistion LLC FRS | 85,924 | 85,852 | ||||||
Retail-Building Products — 0.0% |
| |||||||
LBM Acquisition LLC FRS | 11,812 | 11,750 | ||||||
LBM Acquisition LLC FRS | 53,156 | 52,873 | ||||||
64,623 | ||||||||
Retail-Petroleum Products — 0.0% |
| |||||||
EG America LLC FRS | 135,128 | 132,797 | ||||||
Retail-Restaurants — 0.1% |
| |||||||
IRB Holding Corp. FRS | 136,826 | 135,604 | ||||||
Whatabrands LLC FRS | 120,608 | 119,873 |
49 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
LOANS(9)(10)(11) (continued) |
| |||||||
Retail-Restaurants (continued) |
| |||||||
Wok Holdings, Inc. FRS | $ | 108,755 | $ | 103,589 | ||||
Zaxby’s Operating Co. LP FRS | 62,788 | 62,690 | ||||||
421,756 | ||||||||
Rubber/Plastic Products — 0.0% |
| |||||||
Gates Global LLC FRS | 84,692 | 84,428 | ||||||
Satellite Telecom — 0.1% |
| |||||||
Connect Finco SARL FRS | 115,830 | 115,280 | ||||||
Intelsat Jackson Holdings SA FRS | 38,018 | 38,493 | ||||||
Intelsat Jackson Holdings SA FRS | 184,000 | 186,683 | ||||||
Iridium Satellite LLC FRS | 118,303 | 118,515 | ||||||
458,971 | ||||||||
Telecom Services — 0.0% |
| |||||||
West Corp. FRS | 116,368 | 111,589 | ||||||
Telecommunication Equipment — 0.0% |
| |||||||
CommScope, Inc. FRS | 103,981 | 103,201 | ||||||
Telephone-Integrated — 0.1% |
| |||||||
CenturyLink, Inc. FRS | 93,955 | 92,825 | ||||||
Zayo Group Holdings, Inc. FRS | 156,641 | 155,243 | ||||||
248,068 | ||||||||
Theaters — 0.2% |
| |||||||
William Morris Endeavor Entertainment LLC FRS | $ | 562,550 | $ | 529,676 | ||||
Transactional Software — 0.0% |
| |||||||
Solera LLC FRS | 122,390 | 121,612 | ||||||
Total Loans | ||||||||
(cost $17,040,705) | 16,087,417 | |||||||
COMMON STOCKS — 0.0% |
| |||||||
Building Products-Air & Heating — 0.0% |
| |||||||
API Heat Transfer, Inc.†(4)(5) | 171,230 | 0 | ||||||
Oil Field Machinery & Equipment — 0.0% |
| |||||||
Hi-Crush, Inc.(4) | 14,240 | 2,421 | ||||||
Pharmacy Services — 0.0% |
| |||||||
Akorn Operating Co. LLC | 4,216 | 64,821 | ||||||
Total Common Stocks | ||||||||
(cost $140,109) | 67,242 | |||||||
PREFERRED SECURITIES — 0.0% |
| |||||||
Building Products-Air & Heating — 0.0% |
| |||||||
API Heat Transfer, Inc. | 37 | 0 | ||||||
Sovereign Agency — 0.0% |
| |||||||
Federal Home Loan Mtg. Corp. | 5,875 | 29,610 | ||||||
Total Preferred Securities | ||||||||
(cost $127,205) | 29,610 | |||||||
PREFERRED SECURITIES/CAPITAL SECURITIES — 1.4% |
| |||||||
Banks-Money Center — 0.1% |
| |||||||
BBVA Bancomer SA | 201,000 | 206,781 | ||||||
Building & Construction-Misc. — 0.2% |
| |||||||
China Minmetals Corp. | 635,000 | 647,700 | ||||||
Diversified Banking Institutions — 0.0% |
| |||||||
JPMorgan Chase & Co. | 134,000 | 143,606 | ||||||
Electric-Distribution — 0.1% |
| |||||||
National Rural Utilities Cooperative Finance Corp. | 201,000 | 206,306 | ||||||
Electric-Generation — 0.0% |
| |||||||
Electricite de France SA | EUR 100,000 | 126,798 | ||||||
50 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount(19) | Value (Note 2) | ||||||
PREFERRED SECURITIES/CAPITAL SECURITIES (continued) |
| |||||||
Electric-Integrated — 0.1% |
| |||||||
CMS Energy Corp. | $ | 44,000 | $ | 43,560 | ||||
CMS Energy Corp. | 63,000 | 68,040 | ||||||
Dominion Resources, Inc. | 64,000 | 69,312 | ||||||
180,912 | ||||||||
Food-Dairy Products — 0.1% |
| |||||||
Land O’Lakes Capital Trust I | 414,000 | 480,240 | ||||||
Insurance-Life/Health — 0.1% |
| |||||||
M&G PLC | GBP | 100,000 | 158,099 | |||||
Prudential Financial, Inc. | 122,000 | 139,330 | ||||||
Voya Financial, Inc. | 77,000 | 78,540 | ||||||
375,969 | ||||||||
Insurance-Multi-line — 0.1% |
| |||||||
Aegon NV | EUR | 145,000 | 185,618 | |||||
Allianz SE | EUR | 200,000 | 260,984 | |||||
446,602 | ||||||||
Insurance-Mutual — 0.1% |
| |||||||
Liberty Mutual Group, Inc. | 285,000 | 256,140 | ||||||
Medical-Drugs — 0.0% |
| |||||||
Merck KGaA | EUR | 100,000 | 119,627 | |||||
Metal-Aluminum — 0.1% |
| |||||||
Chalco Hong Kong Investment Co., Ltd. | 400,000 | 403,000 | ||||||
Metal-Diversified — 0.1% |
| |||||||
Chinalco Capital Holdings, Ltd. | 200,000 | 208,100 | ||||||
Oil Companies-Integrated — 0.1% |
| |||||||
BP Capital Markets PLC | 112,000 | 119,980 | ||||||
TOTAL SE | EUR | 125,000 | 149,519 | |||||
269,499 | ||||||||
Pipelines — 0.0% |
| |||||||
EnLink Midstream Partners LP | 45,000 | 27,900 | ||||||
Enterprise Products Operating LLC | 45,000 | 44,853 | ||||||
72,753 | ||||||||
Tools-Hand Held — 0.0% |
| |||||||
Stanley Black & Decker, Inc. | $ | 134,000 | $ | 141,859 | ||||
Transport-Equipment & Leasing — 0.2% |
| |||||||
AerCap Global Aviation Trust | 715,000 | 745,388 | ||||||
Total Preferred Securities/Capital Securities | ||||||||
(cost $4,861,625) | 5,031,280 | |||||||
ESCROWS AND LITIGATION TRUSTS — 0.0% |
| |||||||
Hellas Telecommunications Luxembourg II SCA | 1,330,000 | 0 | ||||||
ION Media Networks, Inc.†(4) | 655 | 7,877 | ||||||
Waterford Gaming LLC/Waterford Gaming Financial Corp. | 459,551 | 2,895 | ||||||
Total Escrows and Litigation Trusts | ||||||||
(cost $1,813,126) | 10,772 | |||||||
Total Long-Term Investment Securities | ||||||||
(cost $350,018,795 ) | 352,432,237 | |||||||
SHORT-TERM INVESTMENT SECURITIES — 6.1% |
| |||||||
Registered Investment Companies — 6.1% |
| |||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 22,355,672 | 22,355,672 | ||||||
TOTAL INVESTMENTS | ||||||||
(cost $372,374,467)(16) | 102.1 | % | 374,787,909 | |||||
Liabilities in excess of other assets | (2.1 | ) | (7,679,324 | ) | ||||
NET ASSETS | 100.0 | % | $ | 367,108,585 | ||||
* | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. The Fund has no right to demand registration of these securities. At March 31, 2021, the aggregate value of these securities was $123,477,635 representing 33.6% 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) | Securities classified as Level 3 (see Note 2). |
(5) | 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 |
51 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
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 March 31, 2021, the Fund held the following restricted securities: |
Description | Acquisition Date | Principal Amount/ Shares | Acquisition Cost | Value | Value per Principal amount/ Share | % of Net Assets | ||||||||||||||||||
Convertible Bond | ||||||||||||||||||||||||
Hi-Crush, Inc. | 10/08/2020 | $ | 260,000 | $ | 235,657 | $ | 260,000 | $ | 100.00 | 0.07 | % | |||||||||||||
Loans | ||||||||||||||||||||||||
API Heat Transfer ThermaSys Corp. 0.00% due 12/29/2023 | 12/31/2018 | 179,888 | 179,888 | 76,452 | 42.50 | 0.02 | ||||||||||||||||||
RentPath LLC 1.61% due 12/17/2022 | 05/14/2015 | 493,906 | 487,467 | |||||||||||||||||||||
06/09/2015 | 200,000 | 197,908 | ||||||||||||||||||||||
01/18/2017 | 4,000 | 3,711 | ||||||||||||||||||||||
06/21/2017 | 365,000 | 363,063 | ||||||||||||||||||||||
1,062,906 | 1,052,149 | 159,436 | 15.00 | 0.04 | ||||||||||||||||||||
Common Stocks | ||||||||||||||||||||||||
API Heat Transfer, Inc. | 12/31/2018 | 171,230 | 56,506 | 0 | 0.00 | 0.00 | ||||||||||||||||||
Hi-Crush, Inc. | 01/29/2021 | 14,240 | 18,782 | 2,421 | 0.17 | 0.00 | ||||||||||||||||||
Preferred Securities |
| |||||||||||||||||||||||
API Heat Transfer, Inc. Class A | 12/31/2018 | 37 | 36,495 | 0 | 0.00 | 0.00 | ||||||||||||||||||
$ | 498,309 | 0.13 | % | |||||||||||||||||||||
(6) | 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 cash at the coupon rate listed. |
(7) | Interest Only |
(8) | 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 March 31, 2021. |
(9) | 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. |
(10) | 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. |
(11) | All loans in the Fund were purchased through assignment agreements unless otherwise indicated. |
(12) | Company has filed for bankruptcy protection. |
(13) | Perpetual maturity—maturity date reflects the next call date. |
(14) | Security in default of interest and principal at maturity. |
(15) | 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 cash at 0.25%. The security is also currently paying interest in the form of additional loans at 12.00%. |
(16) | See Note 5 for cost of investments on a tax basis. |
(17) | Traded in Units. 1 unit equals 1,000 shares. |
(18) | The rate shown is the 7-day yield as of March 31, 2021. |
(19) | Denominated in United States dollars unless otherwise indicated. |
(20) | All or a portion of this holding is subject to unfunded loan commitments. |
(21) | Security in default of interest. |
(22) | 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 cash at 2.50%. The security is also currently paying interest in the form of additional loans at 6.50%. |
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 and maturity 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 March 31, 2021 and unless noted otherwise, the dates are the original maturity dates.
Currency Legend
EUR – Euro Currency
GBP – British Pound
Index Legend
1 | ML — 1 Month USD LIBOR |
2 | ML — 2 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 | 4,667,000 | USD | 5,686,331 | 04/15/2021 | $ | 212,319 | $ | — | |||||||||||||||||
EUR | 8,695,000 | USD | 10,557,113 | 06/10/2021 | 346,586 | — | ||||||||||||||||||||
GBP | 1,711,000 | USD | 2,397,880 | 04/15/2021 | 39,029 | — | ||||||||||||||||||||
USD | 1,145,447 | EUR | 950,000 | 04/15/2021 | — | (31,175 | ) | |||||||||||||||||||
USD | 163,276 | GBP | 117,000 | 04/15/2021 | — | (1,975 | ) | |||||||||||||||||||
Unrealized Appreciation(Depreciation) |
| $ | 597,934 | $ | (33,150 | ) | ||||||||||||||||||||
EUR — | Euro Currency |
GBP — | British Pound |
USD — | United Stated Dollar |
52 |
Table of Contents
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
The following is a summary of the inputs used to value the Fund’s net assets as of March 31, 2021 (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 | $ | — | $ | 3,811,202 | $ | — | $ | 3,811,202 | ||||||||
U.S. Convertible Bonds & Notes | — | — | 260,000 | 260,000 | ||||||||||||
U.S. Corporate Bonds & Notes | — | 138,649,417 | — | 138,649,417 | ||||||||||||
Foreign Corporate Bonds & Notes | — | 61,755,376 | — | 61,755,376 | ||||||||||||
Foreign Government Obligations | — | 66,973,058 | — | 66,973,058 | ||||||||||||
U.S. Government Agencies | — | 55,898,123 | — | 55,898,123 | ||||||||||||
U.S. Government Treasuries | — | 3,858,740 | — | 3,858,740 | ||||||||||||
Loans: | ||||||||||||||||
Building Products-Air & Heating | — | — | 76,452 | 76,452 | ||||||||||||
E-Commerce/Services | — | — | 159,436 | 159,436 | ||||||||||||
Other Industries | — | 15,851,529 | — | 15,851,529 | ||||||||||||
Common Stocks: | ||||||||||||||||
Pharmacy Services | — | 64,821 | — | 64,821 | ||||||||||||
Other Industries | — | — | 2,421 | 2,421 | ||||||||||||
Preferred Securities: | ||||||||||||||||
Building Products-Air & Heating | — | — | 0 | 0 | ||||||||||||
Sovereign Agency | 29,610 | — | — | 29,610 | ||||||||||||
Preferred Securities/Capital Securities | — | 5,031,280 | — | 5,031,280 | ||||||||||||
Escrows and Litigation Trusts | — | — | 10,772 | 10,772 | ||||||||||||
Short-Term Investment Securities | 22,355,672 | — | — | 22,355,672 | ||||||||||||
Total Investments at Value | $ | 22,385,282 | $ | 351,893,546 | $ | 509,081 | $ | 374,787,909 | ||||||||
Other Financial Instruments:+ | ||||||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | 597,934 | $ | — | $ | 597,934 | ||||||||
LIABILITIES: | ||||||||||||||||
Other Financial Instruments:+ | ||||||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | 33,150 | $ | — | $ | 33,150 | ||||||||
* | 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
53 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO PROFILE — March 31, 2021 — (unaudited)
Industry Allocation*
Medical-Hospitals | 3.8 | % | ||
Oil Companies-Exploration & Production | 3.8 | |||
Auto/Truck Parts & Equipment-Original | 3.3 | |||
Enterprise Software/Service | 2.9 | |||
Cable/Satellite TV | 2.7 | |||
Airlines | 2.5 | |||
Broadcast Services/Program | 2.4 | |||
Registered Investment Companies | 2.2 | |||
Food-Misc./Diversified | 1.9 | |||
Real Estate Investment Trusts | 1.9 | |||
Telephone-Integrated | 1.7 | |||
Containers-Metal/Glass | 1.7 | |||
Containers-Paper/Plastic | 1.7 | |||
Pipelines | 1.6 | |||
Applications Software | 1.6 | |||
Machinery-Pumps | 1.5 | |||
E-Commerce/Services | 1.5 | |||
Machinery-Electrical | 1.5 | |||
Chemicals-Specialty | 1.5 | |||
Casino Hotels | 1.3 | |||
Medical Labs & Testing Services | 1.2 | |||
Computer Services | 1.2 | |||
Gambling (Non-Hotel) | 1.2 | |||
Chemicals-Diversified | 1.2 | |||
Satellite Telecom | 1.2 | |||
Medical-Drugs | 1.2 | |||
Steel-Producers | 1.2 | |||
Casino Services | 1.1 | |||
Paper & Related Products | 1.0 | |||
Aerospace/Defense-Equipment | 1.0 | |||
Oil-Field Services | 1.0 | |||
Building & Construction Products-Misc. | 0.9 | |||
Computers-Integrated Systems | 0.9 | |||
Rubber/Plastic Products | 0.9 | |||
Cruise Lines | 0.9 | |||
Auto-Cars/Light Trucks | 0.9 | |||
Distribution/Wholesale | 0.9 | |||
Oil Refining & Marketing | 0.8 | |||
Medical Information Systems | 0.8 | |||
Medical Products | 0.8 | |||
Medical-HMO | 0.8 | |||
Food-Dairy Products | 0.8 | |||
Investment Companies | 0.8 | |||
Retail-Sporting Goods | 0.7 | |||
Electric-Integrated | 0.7 | |||
Food-Catering | 0.7 | |||
Telecom Services | 0.7 | |||
Insurance-Multi-line | 0.7 | |||
Theaters | 0.7 | |||
Human Resources | 0.7 | |||
Food-Confectionery | 0.7 | |||
Cellular Telecom | 0.7 | |||
Transport-Equipment & Leasing | 0.7 | |||
Medical-Wholesale Drug Distribution | 0.7 | |||
Hotels/Motels | 0.7 | |||
Diversified Minerals | 0.6 | |||
Insurance-Property/Casualty | 0.6 | |||
Commercial Services | 0.6 | |||
E-Commerce/Products | 0.5 | |||
Pollution Control | 0.5 |
Finance-Credit Card | 0.5 | % | ||
Publishing-Books | 0.5 | |||
Security Services | 0.5 | |||
Data Processing/Management | 0.5 | |||
Food-Retail | 0.5 | |||
Cosmetics & Toiletries | 0.5 | |||
Auto-Heavy Duty Trucks | 0.5 | |||
Finance-Investment Banker/Broker | 0.5 | |||
Electric-Generation | 0.5 | |||
Food-Wholesale/Distribution | 0.5 | |||
Professional Sports | 0.5 | |||
Retail-Pet Food & Supplies | 0.5 | |||
Technology Services | 0.5 | |||
Oil & Gas Drilling | 0.5 | |||
Retail-Building Products | 0.4 | |||
Precious Metals | 0.4 | |||
Retail-Restaurants | 0.4 | |||
Miscellaneous Manufacturing | 0.4 | |||
Vitamins & Nutrition Products | 0.4 | |||
Coal | 0.4 | |||
Tobacco | 0.4 | |||
Aerospace/Defense | 0.4 | |||
Internet Connectivity Services | 0.4 | |||
Retail-Propane Distribution | 0.4 | |||
Internet Content-Information/News | 0.4 | |||
Building-Residential/Commercial | 0.4 | |||
Telecommunication Equipment | 0.4 | |||
Finance-Consumer Loans | 0.4 | |||
Electronics-Military | 0.4 | |||
Metal-Copper | 0.3 | |||
Office Automation & Equipment | 0.3 | |||
Schools | 0.3 | |||
MRI/Medical Diagnostic Imaging | 0.3 | |||
Housewares | 0.3 | |||
Research & Development | 0.3 | |||
Retail-Arts & Crafts | 0.3 | |||
Veterinary Diagnostics | 0.3 | |||
Retail-Automobile | 0.3 | |||
Soap & Cleaning Preparation | 0.3 | |||
Athletic Equipment | 0.3 | |||
Advertising Sales | 0.3 | |||
Computers-Memory Devices | 0.3 | |||
Retail-Pawn Shops | 0.3 | |||
Computer Software | 0.3 | |||
Medical-Generic Drugs | 0.3 | |||
Energy-Alternate Sources | 0.3 | |||
Wireless Equipment | 0.3 | |||
Commercial Services-Finance | 0.3 | |||
Machinery-Thermal Process | 0.3 | |||
Retail-Bedding | 0.3 | |||
Building Products-Wood | 0.3 | |||
Building & Construction-Misc. | 0.3 | |||
Food-Flour & Grain | 0.3 | |||
Non-Hazardous Waste Disposal | 0.2 | |||
Pharmacy Services | 0.2 | |||
Entertainment Software | 0.2 | |||
Dialysis Centers | 0.2 | |||
Footwear & Related Apparel | 0.2 | |||
Internet Infrastructure Software | 0.2 | |||
Diagnostic Equipment | 0.2 | |||
Engineering/R&D Services | 0.2 |
54 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO PROFILE — March 31, 2021 — (unaudited) (continued)
Industry Allocation* (continued)
Beverages-Non-alcholic | 0.2 | % | ||
Finance-Leasing Companies | 0.2 | |||
Medical-Outpatient/Home Medical | 0.2 | |||
Retail-Regional Department Stores | 0.2 | |||
Radio | 0.2 | |||
Diagnostic Kits | 0.2 | |||
Beverages-Wine/Spirits | 0.2 | |||
Financial Guarantee Insurance | 0.2 | |||
Metal Processors & Fabrication | 0.2 | |||
Semiconductor Equipment | 0.2 | |||
Consulting Services | 0.2 | |||
Storage/Warehousing | 0.2 | |||
Mining Services | 0.1 | |||
Building-Heavy Construction | 0.1 | |||
Advanced Materials | 0.1 | |||
Machinery-General Industrial | 0.1 | |||
Leisure Products | 0.1 | |||
Leisure Games | 0.1 | |||
Internet Financial Services | 0.1 | |||
Medical-Biomedical/Gene | 0.1 | |||
Home & Office Products | 0.1 | |||
Brewery | 0.1 | |||
102.1 | % | |||
Credit Quality†#
Baa | 2.6 | % | ||
Ba | 17.5 | |||
B | 53.0 | |||
Caa | 17.3 | |||
Ca | 0.4 | |||
Not Rated@ | 9.2 | |||
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. |
55 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021
Security Description | Principal Amount | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES — 42.2% | ||||||||
Advertising Sales — 0.0% | ||||||||
Clear Channel Outdoor Holdings, Inc. | $ | 10,000 | $ | 9,913 | ||||
Aerospace/Defense — 0.4% |
| |||||||
Boeing Co. | 709,000 | 906,966 | ||||||
Aerospace/Defense-Equipment — 1.0% |
| |||||||
Spirit AeroSystems, Inc. | 435,000 | 430,650 | ||||||
Spirit AeroSystems, Inc. | 745,000 | 787,837 | ||||||
TransDigm, Inc. | 1,060,000 | 1,095,775 | ||||||
2,314,262 | ||||||||
Airlines — 1.2% | ||||||||
American Airlines Group, Inc. | 385,000 | 378,263 | ||||||
American Airlines, Inc. | 1,475,000 | 1,823,469 | ||||||
Delta Air Lines, Inc. | 630,000 | 613,874 | ||||||
2,815,606 | ||||||||
Applications Software — 0.5% | ||||||||
SS&C Technologies, Inc. | 1,030,000 | 1,095,920 | ||||||
Athletic Equipment — 0.3% |
| |||||||
Vista Outdoor, Inc. | 690,000 | 682,724 | ||||||
Auto-Cars/Light Trucks — 0.7% |
| |||||||
Ford Motor Co. | 274,000 | 331,846 | ||||||
Ford Motor Co. | 181,000 | 252,593 | ||||||
Ford Motor Credit Co. LLC | 660,000 | 681,450 | ||||||
Ford Motor Credit Co. LLC | 235,000 | 253,560 | ||||||
1,519,449 | ||||||||
Auto/Truck Parts & Equipment-Original — 0.8% | ||||||||
American Axle & Manufacturing, Inc. | 900,000 | 933,750 | ||||||
Auto/Truck Parts & Equipment-Original (continued) | ||||||||
Tenneco, Inc. | $ | 515,000 | $ | 507,764 | ||||
Tenneco, Inc. | 370,000 | 370,925 | ||||||
1,812,439 | ||||||||
Beverages-Non-alcoholic — 0.1% | ||||||||
Triton Water Holdings, Inc. | 240,000 | 244,800 | ||||||
Broadcast Services/Program — 1.0% |
| |||||||
Clear Channel Worldwide Holdings, Inc. | 440,000 | 442,882 | ||||||
Clear Channel Worldwide Holdings, Inc. | 196,000 | 203,899 | ||||||
Diamond Sports Group LLC/Diamond Sports Finance Co. | 960,000 | 504,000 | ||||||
iHeartCommunications, Inc. | 809,966 | 869,701 | ||||||
Univision Communications, Inc. | 165,000 | 180,675 | ||||||
2,201,157 | ||||||||
Building & Construction Products-Misc. — 0.6% | ||||||||
CP Atlas Buyer, Inc. | 590,000 | 620,119 | ||||||
Louisiana-Pacific Corp. | 870,000 | 846,075 | ||||||
1,466,194 | ||||||||
Building & Construction-Misc. — 0.3% | ||||||||
Weekley Homes LLC/Weekley Finance Corp. | 570,000 | 584,250 | ||||||
Building-Heavy Construction — 0.1% |
| |||||||
Dycom Industries, Inc. | 290,000 | 290,447 | ||||||
Building-Residential/Commercial — 0.4% |
| |||||||
M/I Homes, Inc. | 635,000 | 657,622 | ||||||
PulteGroup, Inc. | 160,000 | 225,109 | ||||||
882,731 | ||||||||
56 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) | ||||||||
Cable/Satellite TV — 2.1% | ||||||||
CCO Holdings LLC/CCO Holdings Capital Corp. | $ | 500,000 | $ | 518,125 | ||||
CCO Holdings LLC/CCO Holdings Capital Corp. | 825,000 | 872,285 | ||||||
CSC Holdings LLC | 1,255,000 | 1,321,822 | ||||||
DISH DBS Corp. | 155,000 | 161,704 | ||||||
DISH DBS Corp. | 630,000 | 693,945 | ||||||
Radiate Holdco LLC/Radiate Finance, Inc. | 295,000 | 298,319 | ||||||
Radiate Holdco LLC/Radiate Finance, Inc. | 1,005,000 | 1,061,230 | ||||||
4,927,430 | ||||||||
Casino Hotels — 0.3% | ||||||||
Station Casinos LLC | 635,000 | 631,825 | ||||||
Casino Services — 0.3% |
| |||||||
Caesars Entertainment, Inc. | 390,000 | 414,882 | ||||||
Caesars Entertainment, Inc. | 305,000 | 336,476 | ||||||
751,358 | ||||||||
Cellular Telecom — 0.4% | ||||||||
T-Mobile USA, Inc. | 125,000 | 127,188 | ||||||
T-Mobile USA, Inc. | 170,000 | 171,751 | ||||||
T-Mobile USA, Inc. | 610,000 | 615,520 | ||||||
914,459 | ||||||||
Chemicals-Specialty — 0.3% | ||||||||
Chemours Co. | 640,000 | 673,866 | ||||||
Coal — 0.4% |
| |||||||
Alliance Resource Operating Partners LP/Alliance Resource Finance Corp. | 985,000 | 916,897 | ||||||
Commercial Services — 0.3% |
| |||||||
Legends Hospitality Holding Co. LLC/Legends Hospitality Co-Issuer, Inc. | $ | 595,000 | $ | 605,413 | ||||
Computer Services — 0.7% |
| |||||||
Banff Merger Sub, Inc. | 530,000 | 564,756 | ||||||
Science Applications International Corp. | 1,105,000 | 1,142,294 | ||||||
1,707,050 | ||||||||
Computer Software — 0.3% | ||||||||
J2 Global, Inc. | 645,000 | 653,646 | ||||||
Computers-Integrated Systems — 0.2% |
| |||||||
NCR Corp. | 575,000 | 581,515 | ||||||
Containers-Metal/Glass — 0.3% |
| |||||||
BWAY Holding Co. | 651,000 | 651,000 | ||||||
Containers-Paper/Plastic — 0.6% |
| |||||||
Trident TPI Holdings, Inc. | 790,000 | 803,825 | ||||||
Trident TPI Holdings, Inc. | 490,000 | 519,400 | ||||||
1,323,225 | ||||||||
Diagnostic Equipment — 0.2% | ||||||||
Ortho-Clinical Diagnostics, Inc./Ortho-Clinical Diagnostics SA | 234,000 | 256,385 | ||||||
Ortho-Clinical Diagnostics, Inc./Ortho-Clinical Diagnostics SA | 252,000 | 270,925 | ||||||
527,310 | ||||||||
Dialysis Centers — 0.2% | ||||||||
DaVita, Inc. | 555,000 | 564,518 | ||||||
E-Commerce/Services — 0.9% |
| |||||||
Cars.com, Inc. | 700,000 | 728,875 | ||||||
TripAdvisor, Inc | 550,000 | 594,825 |
57 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) | ||||||||
E-Commerce/Services (continued) | ||||||||
Uber Technologies, Inc. | $ | 730,000 | $ | 787,794 | ||||
2,111,494 | ||||||||
Electric-Integrated — 0.6% | ||||||||
PG&E Corp. | 615,000 | 652,853 | ||||||
Talen Energy Supply LLC | 750,000 | 749,205 | ||||||
1,402,058 | ||||||||
Energy-Alternate Sources — 0.3% | ||||||||
TerraForm Power Operating LLC | 590,000 | 636,639 | ||||||
Enterprise Software/Service — 0.5% |
| |||||||
Rocket Software, Inc. | 455,000 | 459,095 | ||||||
Veritas US, Inc./Veritas Bermuda, Ltd. | 595,000 | 618,800 | ||||||
1,077,895 | ||||||||
Entertainment Software — 0.2% | ||||||||
Playtika Holding Corp. | 575,000 | 566,490 | ||||||
Finance-Consumer Loans — 0.4% |
| |||||||
Navient Corp. | 370,000 | 388,540 | ||||||
Springleaf Finance Corp. | 390,000 | 443,596 | ||||||
832,136 | ||||||||
Financial Guarantee Insurance — 0.2% | ||||||||
NMI Holdings, Inc. | 340,000 | 392,282 | ||||||
Food-Catering — 0.3% |
| |||||||
Aramark Services, Inc. | 670,000 | 710,200 | ||||||
Food-Dairy Products — 0.5% |
| |||||||
Chobani LLC/Chobani Finance Corp., Inc. | 1,095,000 | 1,139,490 | ||||||
Food-Misc./Diversified — 0.6% |
| |||||||
Dole Food Co., Inc. | 670,000 | 687,658 | ||||||
Post Holdings, Inc. | 720,000 | 712,080 | ||||||
1,399,738 | ||||||||
Food-Retail — 0.5% | ||||||||
Albertsons Cos, Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC | $ | 1,135,000 | $ | 1,176,365 | ||||
Food-Wholesale/Distribution — 0.5% |
| |||||||
Matterhorn Merger Sub LLC/Matterhorn Finance Sub, Inc. | 1,045,000 | 1,068,512 | ||||||
Footwear & Related Apparel — 0.2% |
| |||||||
Crocs, Inc. | 555,000 | 542,796 | ||||||
Gambling (Non-Hotel) — 0.7% |
| |||||||
Downstream Development Authority of the Quapaw Tribe of Oklahoma | 610,000 | 631,350 | ||||||
Mohegan Gaming & Entertainment | 575,000 | 580,106 | ||||||
Scientific Games International, Inc. | 380,000 | 407,550 | ||||||
1,619,006 | ||||||||
Hotels/Motels — 0.3% | ||||||||
Marriott Ownership Resorts, Inc. | 610,000 | 616,100 | ||||||
Human Resources — 0.1% |
| |||||||
Team Health Holdings, Inc. | 290,000 | 255,542 | ||||||
Insurance-Multi-line — 0.4% |
| |||||||
Acrisure LLC/Acrisure Finance, Inc. | 205,000 | 201,607 | ||||||
Acrisure LLC/Acrisure Finance, Inc. | 710,000 | 733,075 | ||||||
934,682 | ||||||||
Internet Connectivity Services — 0.4% |
| |||||||
Northwest Fiber LLC/Northwest Fiber Finance Sub, Inc. | 795,000 | 898,111 | ||||||
Investment Companies — 0.8% |
| |||||||
Icahn Enterprises LP/Icahn Enterprises Finance Corp. | 880,000 | 921,800 | ||||||
Prospect Capital Corp. | 825,000 | 814,589 | ||||||
1,736,389 | ||||||||
58 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) | ||||||||
Machinery-Electrical — 0.2% |
| |||||||
BWX Technologies, Inc. | $ | 390,000 | $ | 395,405 | ||||
Machinery-Thermal Process — 0.3% |
| |||||||
Cleaver-Brooks, Inc. | 630,000 | 617,400 | ||||||
Medical Labs & Testing Services — 0.1% |
| |||||||
Charles River Laboratories International, Inc. | 165,000 | 165,261 | ||||||
Charles River Laboratories International, Inc. | 140,000 | 142,317 | ||||||
307,578 | ||||||||
Medical-Generic Drugs — 0.3% | ||||||||
Par Pharmaceutical, Inc. | 603,000 | 641,110 | ||||||
Medical-Hospitals — 2.4% |
| |||||||
CHS/Community Health Systems, Inc. | 315,000 | 307,724 | ||||||
CHS/Community Health Systems, Inc. | 805,000 | 849,782 | ||||||
CHS/Community Health Systems, Inc. | 50,000 | 52,263 | ||||||
LifePoint Health, Inc. | 835,000 | 818,300 | ||||||
LifePoint Health, Inc. | 170,000 | 167,450 | ||||||
LifePoint Health, Inc. | 10,000 | 10,625 | ||||||
Select Medical Corp. | 940,000 | 998,994 | ||||||
Surgery Center Holdings, Inc. | 420,000 | 429,324 | ||||||
Surgery Center Holdings, Inc. | 425,000 | 468,563 | ||||||
Tenet Healthcare Corp. | 630,000 | 654,797 | ||||||
Tenet Healthcare Corp. | 292,000 | 305,344 | ||||||
Tenet Healthcare Corp. | 345,000 | 364,273 | ||||||
5,427,439 | ||||||||
Metal-Copper — 0.2% | ||||||||
Freeport-McMoRan, Inc. | $ | 460,000 | $ | 552,294 | ||||
Office Automation & Equipment — 0.3% |
| |||||||
Xerox Holdings Corp. | 750,000 | 776,486 | ||||||
Oil & Gas Drilling — 0.3% |
| |||||||
Patterson-UTI Energy, Inc. | 610,000 | 605,983 | ||||||
Oil Companies-Exploration & Production — 3.1% |
| |||||||
Antero Resources Corp. | 210,000 | 223,650 | ||||||
Antero Resources Corp. | 320,000 | 352,800 | ||||||
Ascent Resources Utica Holdings LLC/ARU Finance Corp. | 455,000 | 473,200 | ||||||
Callon Petroleum Co. | 451,345 | 383,643 | ||||||
Chesapeake Energy Corp. | 595,000 | 619,333 | ||||||
Chesapeake Energy Corp. | 60,000 | 63,600 | ||||||
CrownRock LP/CrownRock Finance, Inc. | 1,015,000 | 1,035,523 | ||||||
Hilcorp Energy I LP/Hilcorp Finance Co. | 415,000 | 421,225 | ||||||
Indigo Natural Resources LLC | 600,000 | 591,126 | ||||||
Kosmos Energy, Ltd. | 575,000 | 544,525 | ||||||
Magnolia Oil & Gas Operating LLC / Magnolia Oil & Gas Finance Corp. | 495,000 | 511,706 | ||||||
Occidental Petroleum Corp. | 525,000 | 492,188 | ||||||
Occidental Petroleum Corp. | 145,000 | 153,046 | ||||||
Occidental Petroleum Corp. | 255,000 | 271,894 |
59 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) | ||||||||
Oil Companies-Exploration & Production (continued) |
| |||||||
Occidental Petroleum Corp. | $ | 215,000 | $ | 237,403 | ||||
Occidental Petroleum Corp. | 385,000 | 432,663 | ||||||
WPX Energy, Inc. | 393,000 | 423,178 | ||||||
7,230,703 | ||||||||
Oil Refining & Marketing — 0.4% | ||||||||
Sunoco LP/Sunoco Finance Corp. | 1,025,000 | 1,021,156 | ||||||
Oil-Field Services — 1.0% |
| |||||||
CSI Compressco LP/CSI Compressco Finance, Inc. | 1,145,000 | 1,086,605 | ||||||
CSI Compressco LP/CSI Compressco Finance, Inc. | 665,000 | 674,975 | ||||||
USA Compression Partners LP/USA Compression Finance Corp. | 440,000 | 451,275 | ||||||
2,212,855 | ||||||||
Paper & Related Products — 0.2% |
| |||||||
Resolute Forest Products, Inc. | 490,000 | 491,225 | ||||||
Pipelines — 1.0% |
| |||||||
Antero Midstream Partners LP/Antero Midstream Finance Corp. | 750,000 | 749,062 | ||||||
Cheniere Energy, Inc. | 475,000 | 494,081 | ||||||
EQM Midstream Partners LP | 140,000 | 136,424 | ||||||
EQM Midstream Partners LP | 135,000 | 130,950 | ||||||
EQM Midstream Partners LP | 220,000 | 236,775 | ||||||
EQM Midstream Partners LP | 250,000 | 271,813 | ||||||
Targa Resources Partners LP/Targa Resources Partners Finance Corp. | 310,000 | 314,108 | ||||||
2,333,213 | ||||||||
Precious Metals — 0.4% | ||||||||
Hecla Mining Co. | $ | 910,000 | $ | 975,975 | ||||
Publishing-Books — 0.2% |
| |||||||
McGraw-Hill Global Education Holdings LLC/McGraw-Hill Global Education Finance | 500,000 | 492,500 | ||||||
Real Estate Investment Trusts — 1.9% |
| |||||||
ESH Hospitality, Inc. | 810,000 | 856,688 | ||||||
iStar, Inc. | 855,000 | 860,900 | ||||||
MPT Operating Partnership LP/MPT Finance Corp. Company Guar. Notes | 780,000 | 764,916 | ||||||
Service Properties Trust | 335,000 | 354,155 | ||||||
Service Properties Trust | 505,000 | 573,691 | ||||||
Uniti Group, Inc./CSL Capital LLC | 880,000 | 905,300 | ||||||
4,315,650 | ||||||||
Retail-Automobile — 0.3% | ||||||||
Carvana Co. | 360,000 | 369,306 | ||||||
Carvana Co. | 340,000 | 348,500 | ||||||
717,806 | ||||||||
Retail-Building Products — 0.4% | ||||||||
BCPE Ulysses Intermediate, Inc. | 630,000 | 653,625 | ||||||
LBM Acquisition LLC | 325,000 | 334,750 | ||||||
988,375 | ||||||||
Retail-Pawn Shops — 0.3% | ||||||||
FirstCash, Inc. | 645,000 | 660,802 | ||||||
Retail-Pet Food & Supplies — 0.2% |
| |||||||
PetSmart, Inc./PetSmart Finance Corp. | 350,000 | 358,684 | ||||||
60 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount | Value (Note 2) | ||||||
U.S. CORPORATE BONDS & NOTES (continued) | ||||||||
Retail-Propane Distribution — 0.4% |
| |||||||
Ferrellgas Escrow LLC/FG Operating Finance Escrow Corp. | $ | 230,000 | $ | 228,459 | ||||
Ferrellgas Escrow LLC/FG Operating Finance Escrow Corp. | 250,000 | 246,625 | ||||||
Ferrellgas Partners LP/Ferrellgas Partners Finance Corp. | 570,000 | 416,100 | ||||||
891,184 | ||||||||
Retail-Regional Department Stores — 0.1% | ||||||||
NMG Holding Co., Inc./Neiman Marcus Group LLC | 260,000 | 265,200 | ||||||
Retail-Restaurants — 0.4% |
| |||||||
Golden Nugget, Inc. | 920,000 | 970,600 | ||||||
Schools — 0.3% |
| |||||||
Adtalem Global Education, Inc. | 785,000 | 775,038 | ||||||
Security Services — 0.5% |
| |||||||
Allied Universal Holdco LLC/Allied Universal Finance Corp. | 1,120,000 | 1,187,738 | ||||||
Steel-Producers — 1.2% |
| |||||||
Cleveland-Cliffs, Inc. | 415,000 | 451,313 | ||||||
Cleveland-Cliffs, Inc. | 585,000 | 587,925 | ||||||
Commercial Metals Co. | 575,000 | 564,339 | ||||||
United States Steel Corp. | 715,000 | 725,725 | ||||||
United States Steel Corp. | 240,000 | 246,000 | ||||||
2,575,302 | ||||||||
Telecommunication Equipment — 0.1% | ||||||||
Plantronics, Inc. | 190,000 | 186,675 | ||||||
Telephone-Integrated — 1.2% |
| |||||||
Cincinnati Bell, Inc. | $ | 605,000 | $ | 623,906 | ||||
Consolidated Communications, Inc. | 545,000 | 588,671 | ||||||
Frontier Communications Corp. | 895,000 | 943,956 | ||||||
Level 3 Financing, Inc. | 590,000 | 571,563 | ||||||
2,728,096 | ||||||||
Theaters — 0.7% | ||||||||
Cinemark USA, Inc. | 575,000 | 588,765 | ||||||
Live Nation Entertainment, Inc. | 310,000 | 312,325 | ||||||
Live Nation Entertainment, Inc. | 685,000 | 711,441 | ||||||
1,612,531 | ||||||||
Tobacco — 0.4% | ||||||||
Turning Point Brands, Inc. | 595,000 | 617,313 | ||||||
Vector Group, Ltd. | 285,000 | 293,906 | ||||||
911,219 | ||||||||
Transport-Equipment & Leasing — 0.7% | ||||||||
Fortress Transportation & Infrastructure Investors LLC | 995,000 | 1,039,775 | ||||||
Fortress Transportation & Infrastructure Investors LLC | 343,000 | 343,429 | ||||||
Fortress Transportation & Infrastructure Investors LLC | 110,000 | 125,262 | ||||||
1,508,466 | ||||||||
Wireless Equipment — 0.3% | ||||||||
ViaSat, Inc. | 625,000 | 635,288 | ||||||
Total U.S. Corporate Bonds & Notes | ||||||||
(cost $93,425,062) | 96,742,271 | |||||||
61 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount | Value (Note 2) | ||||||
FOREIGN CORPORATE BONDS & NOTES — 7.0% | ||||||||
Airlines — 0.1% | ||||||||
American Airlines, Inc./AAdvantage Loyalty IP, Ltd. | $ | 145,000 | $ | 151,163 | ||||
American Airlines, Inc./AAdvantage Loyalty IP, Ltd. | 55,000 | 58,619 | ||||||
209,782 | ||||||||
Auto-Cars/Light Trucks — 0.2% | ||||||||
Aston Martin Capital Holdings, Ltd. | 445,000 | 491,469 | ||||||
Auto/Truck Parts & Equipment-Original — 0.3% |
| |||||||
Clarios Global LP/Clarios US Finance Co. | 695,000 | 748,348 | ||||||
Cable/Satellite TV — 0.1% |
| |||||||
Virgin Media Finance PLC | 275,000 | 274,656 | ||||||
Casino Services — 0.3% |
| |||||||
Gateway Casinos & Entertainment, Ltd. | 800,000 | 762,000 | ||||||
Chemicals-Diversified — 0.1% |
| |||||||
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc. | 250,000 | 257,812 | ||||||
Computers-Memory Devices — 0.3% |
| |||||||
Seagate Technology PLC | 695,000 | 668,208 | ||||||
Cruise Lines — 0.9% |
| |||||||
Carnival Corp. | 90,000 | 96,687 | ||||||
Carnival Corp. | 445,000 | 510,081 | ||||||
NCL Corp., Ltd. | 395,000 | 400,289 | ||||||
NCL Finance, Ltd. | 170,000 | 173,188 | ||||||
Royal Caribbean Cruises, Ltd. | 30,000 | 30,173 | ||||||
Royal Caribbean Cruises, Ltd. | 680,000 | 749,312 | ||||||
1,959,730 | ||||||||
Diversified Minerals — 0.4% | ||||||||
Teck Resources, Ltd. | 780,000 | 955,357 | ||||||
Gambling (Non-Hotel) — 0.1% |
| |||||||
International Game Technology PLC | $ | 200,000 | $ | 205,516 | ||||
Machinery-Pumps — 0.3% |
| |||||||
Titan Acquisition, Ltd./Titan Co-Borrower LLC | 740,000 | 769,452 | ||||||
Medical-Biomedical/Gene — 0.1% |
| |||||||
Concordia International Corp. | 142,000 | 145,536 | ||||||
Medical-Drugs — 1.3% |
| |||||||
Bausch Health Cos., Inc. | 585,000 | 629,606 | ||||||
Bausch Health Cos., Inc. | 745,000 | 808,735 | ||||||
Cheplapharm Arzneimittel GmbH | 850,000 | 882,954 | ||||||
Endo Dac/Endo Finance LLC/Endo Finco, Inc. | 70,000 | 76,038 | ||||||
Teva Pharmaceutical Finance Netherlands III BV | 235,000 | 224,719 | ||||||
Teva Pharmaceutical Finance Netherlands III BV | 380,000 | 419,786 | ||||||
3,041,838 | ||||||||
Metal-Copper — 0.1% | ||||||||
Taseko Mines, Ltd. | 320,000 | 325,760 | ||||||
Miscellaneous Manufacturing — 0.4% |
| |||||||
Bombardier, Inc. | 675,000 | 674,156 | ||||||
Bombardier, Inc. | 280,000 | 293,768 | ||||||
967,924 | ||||||||
MRI/Medical Diagnostic Imaging — 0.3% | ||||||||
Akumin, Inc. | 710,000 | 755,262 | ||||||
Oil & Gas Drilling — 0.2% |
| |||||||
Transocean, Inc. | 398,000 | 341,373 | ||||||
Oil Companies-Exploration & Production — 0.5% |
| |||||||
Geopark, Ltd. | 995,000 | 1,028,591 | ||||||
62 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount | Value (Note 2) | ||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
| |||||||
Pipelines — 0.2% |
| |||||||
Northriver Midstream Finance LP | $ | 445,000 | $ | 462,577 | ||||
Satellite Telecom — 0.6% |
| |||||||
Telesat Canada/Telesat LLC | 1,270,000 | 1,272,184 | ||||||
Telecom Services — 0.2% |
| |||||||
Altice France Holding SA | 500,000 | 492,645 | ||||||
Total Foreign Corporate Bonds & Notes | ||||||||
(cost $16,010,618) | 16,136,020 | |||||||
LOANS(3)(4)(5) — 49.9% | ||||||||
Advanced Materials — 0.1% | ||||||||
Gemini HDPE LLC FRS | 285,000 | 283,931 | ||||||
Advertising Sales — 0.2% |
| |||||||
Clear Channel Outdoor Holdings, Inc. FRS | 591,000 | 567,571 | ||||||
Airlines — 1.2% |
| |||||||
Aadvantage Loyalty LP, Ltd. FRS | 185,000 | 189,063 | ||||||
Mileage Plus Holdings LLC FRS | 1,615,000 | 1,714,592 | ||||||
WestJet Airlines, Ltd. FRS | 857,030 | 830,070 | ||||||
2,733,725 | ||||||||
Applications Software — 1.1% | ||||||||
Grab Holdings, Inc. FRS | 1,490,000 | 1,512,350 | ||||||
Realpage, Inc. FRS | 470,000 | 467,454 | ||||||
Weld North Education LLC FRS | 458,850 | 457,703 | ||||||
2,437,507 | ||||||||
Auto-Heavy Duty Trucks — 0.5% | ||||||||
Navistar, Inc. FRS | $ | 1,153,122 | $ | 1,152,257 | ||||
Auto/Truck Parts & Equipment-Original — 2.2% |
| |||||||
Accuride Corp. FRS | 867,107 | 818,116 | ||||||
Clarios Global LP FRS | 880,169 | 875,035 | ||||||
Cooper-Standard Automotive, Inc. FRS | 893,596 | 866,789 | ||||||
DexKo Global, Inc. FRS | 682,745 | 680,867 | ||||||
KPAE Finance Sub, Inc. FRS | 95,000 | 95,238 | ||||||
Tenneco, Inc. FRS | 1,320,419 | 1,284,107 | ||||||
Truck Hero, Inc. FRS | 365,000 | 364,283 | ||||||
4,984,435 | ||||||||
Beverages-Non-alcoholic — 0.1% |
| |||||||
Triton Water Holdings, Inc. FRS | 275,000 | 273,772 | ||||||
Beverages-Wine/Spirits — 0.2% | ||||||||
Arterra Wines Canada, Inc. FRS | 418,950 | 418,775 | ||||||
Brewery — 0.1% |
| |||||||
City Brewing Company LLC FRS | 130,000 | 129,675 | ||||||
Broadcast Services/Program — 1.4% |
| |||||||
Diamond Sports Group LLC FRS | 985,000 | 688,680 | ||||||
iHeartCommunications, Inc. FRS | 1,520,069 | 1,500,796 |
63 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount | Value (Note 2) | ||||||
LOANS(3)(4)(5) (continued) |
| |||||||
Broadcast Services/Program (continued) |
| |||||||
Univision Communications, Inc. FRS | $ | 1,031,156 | $ | 1,022,455 | ||||
3,211,931 | ||||||||
Building & Construction Products-Misc. — 0.3% | ||||||||
AZEK Co. LLC FRS | 490,267 | 489,531 | ||||||
CP Atlas Buyer, Inc. FRS | 205,000 | 203,495 | ||||||
693,026 | ||||||||
Building Products-Wood — 0.3% | ||||||||
84 Lumber Co. FRS | 139,650 | 139,301 | ||||||
LEB Holdings USA, Inc. FRS | 453,863 | 454,430 | ||||||
593,731 | ||||||||
Cable/Satellite TV — 0.5% |
| |||||||
Radiate Holdco LLC FRS | 238,164 | 237,812 | ||||||
UPC Broadband Holdings BV FRS | 505,000 | 503,197 | ||||||
UPC Broadband Holdings BV FRS | 505,000 | 503,197 | ||||||
1,244,206 | ||||||||
Casino Hotels — 1.0% | ||||||||
Caesars Resort Collection LLC FRS | 522,375 | 522,767 | ||||||
CityCenter Holdings LLC FRS | 947,023 | 934,264 | ||||||
Golden Nugget, Inc. FRS | 733,840 | 721,915 | ||||||
2,178,946 | ||||||||
Casino Services — 0.5% | ||||||||
Aristocrat Leisure, Ltd. FRS | $ | 267,975 | $ | 268,645 | ||||
CCM Merger, Inc. FRS | 274,000 | 273,486 | ||||||
Gateway Casinos & Entertainment, Ltd. FRS | 550,684 | 541,185 | ||||||
1,083,316 | ||||||||
Cellular Telecom — 0.3% | ||||||||
Altice France SA FRS | 635,375 | 631,722 | ||||||
Chemicals-Diversified — 1.1% |
| |||||||
Ascend Performance Materials Operations LLC FRS | 408,788 | 413,813 | ||||||
Hexion, Inc. FRS | 625,356 | 624,965 | ||||||
INEOS Styrolution Group GmbH FRS | 410,000 | 408,155 | ||||||
Innophos Holdings, Inc. FRS | 826,650 | 824,067 | ||||||
NIC Acquisition Corp. FRS | 180,000 | 178,987 | ||||||
2,449,987 | ||||||||
Chemicals-Specialty — 1.2% | ||||||||
Aruba Investments Holdings LLC FRS | 340,000 | 340,000 | ||||||
Diamond BC BV FRS | 1,666,989 | 1,657,091 | ||||||
Zep, Inc. FRS | 738,225 | 730,228 | ||||||
2,727,319 | ||||||||
64 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount | Value (Note 2) | ||||||
LOANS(3)(4)(5) (continued) |
| |||||||
Commercial Services — 0.3% | ||||||||
Amentum Government Services Holdings LLC FRS | $ | 610,000 | $ | 609,238 | ||||
Commercial Services-Finance — 0.3% |
| |||||||
NAB Holdings LLC FRS | 621,795 | 618,686 | ||||||
Computer Services — 0.5% |
| |||||||
Tempo Acquisition LLC FRS | 894,606 | 893,711 | ||||||
Virtusa Corp. FRS | 180,000 | 180,113 | ||||||
1,073,824 | ||||||||
Computers-Integrated Systems — 0.7% | ||||||||
Everi Payments, Inc. FRS | 975,151 | 968,296 | ||||||
Everi Payments, Inc. FRS | 54,588 | 57,044 | ||||||
NCR Corp. FRS | 525,590 | 521,648 | ||||||
1,546,988 | ||||||||
Consulting Services — 0.2% | ||||||||
Thoughtworks, Inc. FRS | 350,000 | 349,125 | ||||||
Containers-Metal/Glass — 1.4% |
| |||||||
Anchor Glass Container Corp. FRS | 1,045,733 | 920,681 | ||||||
Anchor Glass Container Corp. FRS | 381,125 | 338,248 | ||||||
Anchor Glass Container Corp. FRS | 265,333 | 132,667 | ||||||
Containers-Metal/Glass (continued) |
| |||||||
Berlin Packaging LLC FRS | $ | 713,718 | $ | 700,157 | ||||
Mauser Packaging Solutions Holding, Co. FRS | 1,222,375 | 1,193,780 | ||||||
3,285,533 | ||||||||
Containers-Paper/Plastic — 1.1% | ||||||||
Fort Dearborn Holding Co., Inc. FRS | 11,783 | 11,744 | ||||||
Fort Dearborn Holding Co., Inc. FRS | 1,091,873 | 1,088,233 | ||||||
Patriot Container Corp. FRS | 827,598 | 817,253 | ||||||
Trident TPI Holdings, Inc. FRS | 605,354 | 598,733 | ||||||
2,515,963 | ||||||||
Cosmetics & Toiletries — 0.5% | ||||||||
Parfums Holding Co., Inc. FRS | 1,184,688 | 1,171,360 | ||||||
Cruise Lines — 0.0% |
| |||||||
Carnival Corp. FRS | 104,213 | 107,339 | ||||||
Data Processing/Management — 0.5% |
| |||||||
Dun & Bradstreet Corp. FRS | 1,189,542 | 1,182,293 | ||||||
Diagnostic Kits — 0.2% |
| |||||||
Ortho-Clinical Diagnostics SA FRS | 427,617 | 426,681 | ||||||
Distribution/Wholesale — 0.9% |
| |||||||
Infinite Bidco LLC FRS | 610,000 | 605,425 | ||||||
Infinite Bidco LLC FRS | 655,000 | 656,637 |
65 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount | Value (Note 2) | ||||||
LOANS(3)(4)(5) (continued) |
| |||||||
Distribution/Wholesale (continued) |
| |||||||
Protective Industrial Products, Inc. FRS | $ | 510,000 | $ | 508,088 | ||||
Resideo Funding, Inc. FRS | 190,000 | 189,525 | ||||||
1,959,675 | ||||||||
Diversified Minerals — 0.2% | ||||||||
Covia Holdings Corp. FRS | 398,569 | 385,117 | ||||||
E-Commerce/Products — 0.4% |
| |||||||
CNT Holdings I Corp. FRS | 315,000 | 313,937 | ||||||
Rodan & Fields LLC FRS | 780,114 | 657,246 | ||||||
971,183 | ||||||||
E-Commerce/Services — 0.6% |
| |||||||
Hoya Midco LLC FRS | 834,869 | 817,128 | ||||||
Uber Technologies, Inc. FRS | 644,935 | 641,595 | ||||||
1,458,723 | ||||||||
Electric-Generation — 0.5% | ||||||||
Astoria Energy LLC FRS | 358,044 | 357,821 | ||||||
Hamilton Projects Acquiror LLC FRS | 718,191 | 719,268 | ||||||
1,077,089 | ||||||||
Electric-Integrated — 0.1% | ||||||||
PG&E Corp. FRS | 267,975 | 267,473 | ||||||
Electronics-Military — 0.4% |
| |||||||
AI Convoy Luxembourg SARL FRS | 806,850 | 805,211 | ||||||
Engineering/R&D Services — 0.2% |
| |||||||
TRC Cos, Inc. FRS | $ | 525,975 | $ | 525,318 | ||||
Enterprise Software/Service — 2.5% |
| |||||||
Applied Systems, Inc. FRS | 585,000 | 582,624 | ||||||
Applied Systems, Inc. FRS | 295,000 | 295,492 | ||||||
Aston US Finco LLC FRS | 460,350 | 456,609 | ||||||
Boxer Parent Co., Inc. FRS | 861,304 | 856,899 | ||||||
Epicor Software Corp. FRS | 567,150 | 565,200 | ||||||
Greeneden US Holdings II LLC FRS | 460,000 | 459,655 | ||||||
Hyland Software, Inc. FRS | 646,684 | 645,516 | ||||||
Hyland Software, Inc. FRS | 100,000 | 99,819 | ||||||
Hyland Software, Inc. FRS | 95,000 | 95,000 | ||||||
Sophia L.P. FRS | 623,438 | 622,324 | ||||||
UKG, Inc. FRS | 905,618 | 904,486 | ||||||
Ultimate Software Group, Inc. FRS | 105,000 | 107,494 | ||||||
5,691,118 | ||||||||
Finance-Credit Card — 0.5% | ||||||||
Blackhawk Network Holdings, Inc. FRS | 499,616 | 491,587 | ||||||
Pi US Mergerco, Inc. FRS | 750,060 | 748,770 | ||||||
1,240,357 | ||||||||
66 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount | Value (Note 2) | ||||||
LOANS(3)(4)(5) (continued) |
| |||||||
Finance-Investment Banker/Broker — 0.5% | ||||||||
Deerfield Dakota Holding LLC FRS | $ | 1,147,009 | $ | 1,147,009 | ||||
Food-Catering — 0.4% |
| |||||||
TKC Holdings, Inc. FRS | 978,593 | 954,536 | ||||||
Food-Confectionery — 0.7% |
| |||||||
Shearer’s Foods LLC FRS | 1,570,493 | 1,567,222 | ||||||
Food-Dairy Products — 0.3% |
| |||||||
Chobani LLC FRS | 671,625 | 670,618 | ||||||
Food-Flour & Grain — 0.3% |
| |||||||
CHG PPC Parent LLC FRS | 584,091 | 575,330 | ||||||
Food-Misc./Diversified — 1.3% |
| |||||||
Froneri US, Inc. FRS | 838,663 | 826,214 | ||||||
H-Food Holdings LLC FRS | 953,050 | 943,122 | ||||||
Sigma Bidco BV FRS | 1,199,564 | 1,184,869 | ||||||
2,954,205 | ||||||||
Gambling (Non-Hotel) — 0.4% | ||||||||
Scientific Games International, Inc. FRS | 906,950 | 888,244 | ||||||
Home & Office Products — 0.1% |
| |||||||
Ozark Holdings LLC FRS | 136,500 | 136,500 | ||||||
Hotels/Motels — 0.4% |
| |||||||
Playa Resorts Holding BV FRS | 859,381 | 823,096 | ||||||
Housewares — 0.3% |
| |||||||
Carlisle FoodService Products, Inc. FRS | 746,471 | 711,325 | ||||||
Human Resources — 0.6% |
| |||||||
CHG Healthcare Services, Inc. FRS | $ | 865,893 | $ | 862,917 | ||||
Team Health Holdings, Inc. FRS | 259,325 | 240,616 | ||||||
TTF Holdings LLC FRS | 240,000 | 238,800 | ||||||
1,342,333 | ||||||||
Insurance-Multi-line — 0.3% |
| |||||||
Acrisure LLC FRS | 693,249 | 684,008 | ||||||
Insurance-Property/Casualty — 0.6% |
| |||||||
Sedgwick Claims Management Services, Inc. FRS | 1,293,691 | 1,274,084 | ||||||
Internet Content-Information/News — 0.4% |
| |||||||
Pug LLC FRS | 922,174 | 888,745 | ||||||
Internet Financial Services — 0.1% |
| |||||||
Acuris Finance US, Inc. FRS | 165,000 | 164,691 | ||||||
Internet Gambling — 0.0% |
| |||||||
Golden Nugget, Inc. FRS | 55,000 | 62,425 | ||||||
Internet Infrastructure Software — 0.2% |
| |||||||
Barracuda Networks, Inc. FRS | 532,315 | 530,984 | ||||||
Leisure Games — 0.1% |
| |||||||
ECL Entertainment LLC FRS | 185,000 | 183,150 | ||||||
Leisure Products — 0.1% |
| |||||||
Enterprise Development Authority FRS | 215,000 | 215,538 | ||||||
Machinery-Electrical — 1.3% |
| |||||||
Alliance Laundry Systems LLC FRS | 623,438 | 621,489 |
67 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount | Value (Note 2) | ||||||
LOANS(3)(4)(5) (continued) |
| |||||||
Machinery-Electrical (continued) | ||||||||
Brookfield WEC Holdings, Inc. FRS | $ | 1,590,164 | $ | 1,575,115 | ||||
Vertiv Group Corp. FRS | 851,416 | 844,765 | ||||||
3,041,369 | ||||||||
Machinery-General Industry — 0.1% |
| |||||||
DXP Enterprises, Inc. FRS | 274,313 | 273,627 | ||||||
Machinery-Pumps — 1.2% | ||||||||
CIRCOR International, Inc. FRS | 880,000 | 869,367 | ||||||
Star US Bidco LLC FRS | 923,025 | 913,218 | ||||||
Titan Acquisition, Ltd. FRS | 1,104,425 | 1,081,186 | ||||||
2,863,771 | ||||||||
Medical Information Systems — 0.8% | ||||||||
Athenahealth, Inc. FRS | 315,000 | 315,262 | ||||||
Azalea Topco, Inc. FRS | 164,588 | 164,656 | ||||||
Emerald TopCo, Inc. FRS | 522,050 | 517,972 | ||||||
Navicure, Inc. FRS | 723,348 | 722,444 | ||||||
Project Ruby Ultimate Parent Corp. FRS | 205,000 | 203,975 | ||||||
1,924,309 | ||||||||
Medical Labs & Testing Services — 1.1% | ||||||||
Envision Healthcare Corp. FRS | 819,312 | 704,040 | ||||||
eResearchTechnology, Inc. FRS | 833,700 | 833,570 | ||||||
Medical Labs & Testing Services (continued) | ||||||||
eResearchTechnology, Inc. FRS | $ | 75,000 | $ | 74,988 | ||||
Phoenix Guarantor, Inc. FRS | 730,000 | 724,753 | ||||||
Phoenix Guarantor, Inc. FRS | 229,425 | 227,776 | ||||||
2,565,127 | ||||||||
Medical Products — 0.8% | ||||||||
CPI Holdco LLC FRS | 460,649 | 460,764 | ||||||
Viant Medical Holdings, Inc. FRS | 1,492,710 | 1,442,331 | ||||||
1,903,095 | ||||||||
Medical-HMO — 0.8% | ||||||||
One Call Corp. FRS | 1,867,040 | 1,855,371 | ||||||
Medical-Hospitals — 1.4% |
| |||||||
Accelerated Health Systems LLC FRS | 865,088 | 859,681 | ||||||
AHP Health Partners, Inc. FRS | 971,392 | 971,797 | ||||||
Pluto Acquisition I, Inc. FRS | 299,250 | 298,502 | ||||||
RegionalCare Hospital Partners Holdings, Inc. FRS | 728,120 | 725,921 | ||||||
Surgery Center Holdings, Inc. FRS | 267,231 | 264,415 | ||||||
Surgery Center Holdings, Inc. FRS | 198,000 | 199,980 | ||||||
3,320,296 | ||||||||
Medical-Outpatient/Home Medical — 0.2% | ||||||||
Gentiva Health Services, Inc. FRS | 457,245 | 454,006 | ||||||
68 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount | Value (Note 2) | ||||||
LOANS(3)(4)(5) (continued) |
| |||||||
Medical-Wholesale Drug Distribution — 0.7% |
| |||||||
Milano Acquisition Corp. FRS | $ | 205,000 | $ | 203,890 | ||||
Milano Acquisition Corp. FRS | 872,813 | 868,084 | ||||||
Packaging Coordinators Midco, Inc. FRS | 425,000 | 424,469 | ||||||
1,496,443 | ||||||||
Metal Processors & Fabrication — 0.2% | ||||||||
ASP Navigate Acquisition Corp. FRS | 364,088 | 363,177 | ||||||
Non-Hazardous Waste Disposal — 0.2% |
| |||||||
GFL Environmental, Inc. FRS | 571,382 | 571,178 | ||||||
Oil Companies-Exploration & Production — 0.2% |
| |||||||
Fieldwood Energy LLC FRS | 1,085,382 | 412,445 | ||||||
Oil Refining & Marketing — 0.4% |
| |||||||
CITGO Holding, Inc. FRS | 261,025 | 250,258 | ||||||
CITGO Petroleum Corp. FRS | 655,218 | 656,036 | ||||||
906,294 | ||||||||
Paper & Related Products — 0.8% | ||||||||
Klockner Pentaplast of America, Inc. FRS | 955,000 | 950,822 | ||||||
Schweitzer-Mauduit International, Inc. FRS | 925,000 | 920,375 | ||||||
1,871,197 | ||||||||
Pharmacy Services — 0.2% | ||||||||
Sunshine Luxembourg VII SARL FRS | 570,000 | 569,185 | ||||||
Pipelines — 0.4% |
| |||||||
Medallion Midland Acquisition LLC FRS | $ | 703,285 | $ | 689,658 | ||||
Traverse Midstream Partners LLC FRS | 332,935 | 330,438 | ||||||
1,020,096 | ||||||||
Pollution Control — 0.5% | ||||||||
Filtration Group Corp. FRS | 926,613 | 912,907 | ||||||
Filtration Group Corp. FRS | 333,325 | 332,742 | ||||||
1,245,649 | ||||||||
Professional Sports — 0.5% | ||||||||
UFC Holdings LLC FRS | 1,045,745 | 1,040,952 | ||||||
Publishing-Books — 0.3% |
| |||||||
McGraw Hill LLC FRS | 708,652 | 706,627 | ||||||
Research & Development — 0.3% |
| |||||||
Parexel International Corp. FRS | 750,000 | 744,375 | ||||||
Retail-Arts & Crafts — 0.3% |
| |||||||
Michaels Stores, Inc. FRS | 728,004 | 726,184 | ||||||
Retail-Bedding — 0.3% |
| |||||||
Serta Simmons Bedding LLC FRS | 940,800 | 607,286 | ||||||
Retail-Pet Food & Supplies — 0.3% |
| |||||||
Petco Animal Supplies, Inc. FRS | 480,000 | 477,771 | ||||||
PetSmart, Inc. FRS | 150,000 | 149,750 | ||||||
627,521 | ||||||||
69 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Principal Amount | Value (Note 2) | ||||||
LOANS(3)(4)(5) (continued) |
| |||||||
Retail-Sporting Goods — 0.7% |
| |||||||
Great Outdoors Group LLC FRS | $ | 1,690,763 | $ | 1,687,944 | ||||
Rubber/Plastic Products — 0.9% |
| |||||||
Gates Global LLC FRS | 994,621 | 991,513 | ||||||
KPEX Holdings, Inc. FRS | 653,316 | 620,447 | ||||||
US Farathane LLC FRS | 331,830 | 329,755 | ||||||
US Farathane LLC FRS | 184,526 | 183,373 | ||||||
2,125,088 | ||||||||
Satellite Telecom — 0.6% | ||||||||
Intelsat Jackson Holdings SA FRS | 840,000 | 852,250 | ||||||
Intelsat Jackson Holdings SA FRS | 541,000 | 550,017 | ||||||
1,402,267 | ||||||||
Semiconductor Equipment — 0.2% | ||||||||
Ultra Clean Holdings, Inc. FRS | 347,813 | 347,813 | ||||||
Soap & Cleaning Preparation — 0.3% |
| |||||||
Kronos Acquisition Holdings, Inc. FRS | 698,250 | 687,340 | ||||||
Storage/Warehousing — 0.2% |
| |||||||
Pods, LLC | 345,000 | 343,131 | ||||||
Technology Services — 0.5% |
| |||||||
Ion Trading Finance Ltd. FRS | 235,000 | 234,706 | ||||||
Peraton Corp. FRS | 339,867 | 339,300 | ||||||
Technology Services (continued) |
| |||||||
Peraton Corp. FRS | $ | 598,133 | $ | 597,137 | ||||
1,171,143 | ||||||||
Telecom Services — 0.5% | ||||||||
Securus Technologies Holdings LLC FRS | 533,621 | 491,932 | ||||||
West Corp. FRS | 668,525 | 645,753 | ||||||
1,137,685 | ||||||||
Telecommunication Equipment — 0.3% | ||||||||
Plantronics, Inc. FRS | 673,066 | 663,331 | ||||||
Telephone-Integrated — 0.5% |
| |||||||
Consolidated Communications, Inc. FRS | 406,983 | 406,779 | ||||||
Zayo Group Holdings, Inc. FRS | 854,816 | 847,183 | ||||||
1,253,962 | ||||||||
Veterinary Diagnostics — 0.3% | ||||||||
PetVet Care Centers LLC FRS | 724,406 | 721,464 | ||||||
Vitamins & Nutrition Products — 0.4% |
| |||||||
Milk Specialties Co. FRS | 947,352 | 945,772 | ||||||
Total Loans | ||||||||
(cost $116,032,833) | 114,434,689 | |||||||
COMMON STOCKS — 0.6% | ||||||||
Advertising Sales — 0.1% | ||||||||
Clear Channel Outdoor Holdings, Inc.† | 56,198 | 101,156 | ||||||
Auto/Truck Parts & Equipment-Original — 0.0% |
| |||||||
Lear Corp. | 54 | 9,788 | ||||||
E-Commerce/Products — 0.1% |
| |||||||
MYT Holding LLC, Class B†(8) | 57,605 | 299,546 | ||||||
70 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
Security Description | Shares/ Principal Amount | Value (Note 2) | ||||||
COMMON STOCKS (continued) |
| |||||||
Housewares — 0.0% |
| |||||||
Libbey Glass LLC†(8) | 26,762 | $ | 39,474 | |||||
Mining Services — 0.1% |
| |||||||
Covia Holdings Corp.(8) | 39,560 | 311,535 | ||||||
Radio — 0.2% |
| |||||||
iHeartMedia, Inc., Class A† | 23,870 | 433,241 | ||||||
iHeartMedia, Inc., Class B†(8) | 29 | 526 | ||||||
433,767 | ||||||||
Retail-Regional Department Stores — 0.1% | ||||||||
NMG Parent LLC†(8) | 2,559 | 179,130 | ||||||
Total Common Stocks | ||||||||
(cost $1,692,045) | 1,374,396 | |||||||
PREFERRED SECURITIES/CAPITAL SECURITIES — 0.2% |
| |||||||
Finance-Leasing Companies — 0.2% | ||||||||
Capital Farm Credit ACA | $ | 465,000 | 475,463 | |||||
ESCROWS AND LITIGATION TRUSTS — 0.0% |
| |||||||
Venture Holdings Co. LLC | 550,000 | 0 | ||||||
Paragon Offshore Finance Co. FRS | 1,745 | 0 | ||||||
Texas Competitive Electric Holdings Co. LLC/TCEH Finance, Inc. | 1,667,835 | 1,335 | ||||||
Mesquite Energy, Inc. | 405,000 | 506 | ||||||
Hellas Telecommunications Luxembourg II SCA | 1,025,000 | 0 | ||||||
ION Media Networks, Inc.†(9) | 660 | 7,937 | ||||||
Vistra Energy Corp. CVR†(8) | 27,942 | 30,652 | ||||||
Total Escrows And Litigation Trusts | ||||||||
(cost $1,603,376) | 40,430 | |||||||
Total Long-Term Investment Securities | ||||||||
(cost $229,228,934) | 229,203,269 | |||||||
SHORT-TERM INVESTMENT SECURITIES — 2.2% |
| |||||||
Registered Investment Companies — 2.2% | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 5,059,410 | $ | 5,059,410 | |||||
TOTAL INVESTMENTS | ||||||||
(cost $234,288,344) | 102.1 | % | 234,262,679 | |||||
Liabilities in excess of other assets | (2.1 | ) | (4,874,292 | ) | ||||
NET ASSETS | 100.0 | % | $ | 229,388,387 | ||||
| ||||
* | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. The Fund has no right to demand registration of these securities. At March 31, 2021, the aggregate value of these securities was $87,602,918 representing 38.2% of net assets. |
† | Non-income producing security |
(1) | 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 cash at the coupon rate listed. |
(2) | Security in default of interest and principal at maturity. |
(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. |
(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) | Company has filed for bankruptcy protection. |
(7) | Loan is in default of interest payment. |
(8) | 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 |
71 |
Table of Contents
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS — March 31, 2021 — (continued)
than securities for which secondary markets exist. As of March 31, 2021, the Fund held the following restricted securities: |
Description | Acquisition Date | Shares | Acquisition Cost | Value | Value Per Share | % of Net Assets | ||||||||||||||||||
Common Stocks |
| |||||||||||||||||||||||
Covia Holdings Corp. | 02/21/2018 | 39,560 | $ | 343,328 | $ | 311,535 | $ | 7.88 | 0.14 | % | ||||||||||||||
iHeartMedia, Inc., Class B | 05/07/2019 | 29 | 522 | 526 | 18.15 | 0.00 | ||||||||||||||||||
Libbey Glass LLC | 12/11/2020 | 26,762 | 104,657 | 39,474 | 1.48 | 0.02 | ||||||||||||||||||
MYT Holding LLC | 11/20/2017 | 10,532 | 0 | |||||||||||||||||||||
02/14/2018 | 35,731 | 0 | ||||||||||||||||||||||
09/17/2018 | 11,129 | 0 | ||||||||||||||||||||||
10/19/2020 | 213 | 0 | ||||||||||||||||||||||
57,605 | 0 | 299,546 | 5.20 | 0.13 | ||||||||||||||||||||
NMG Parent LLC | 11/20/2017 | 37 | 68,915 | |||||||||||||||||||||
02/14/2018 | 127 | 239,200 | ||||||||||||||||||||||
09/17/2018 | 39 | 81,283 | ||||||||||||||||||||||
12/11/2020 | 2,356 | 180,333 | ||||||||||||||||||||||
2,559 | 569,731 | 179,130 | 70.00 | 0.08 | ||||||||||||||||||||
Escrows and Litigation Trusts |
| |||||||||||||||||||||||
Vistra Energy Corp. CVR | 10/06/2016 | 27,942 | 0 | 30,652 | 1.10 | 0.01 | ||||||||||||||||||
$ | 860,863 | 0.38 | % | |||||||||||||||||||||
(9) | Securities classified as Level 3 (see Note 2). |
(10) | The rate shown is the 7-day yield as of March 31, 2021. |
(11) | See Note 5 for cost of investments on a tax basis. |
(12) | 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 cash at 4.50%. The security is also currently paying interest in the form of additional loans at 3.00%. |
(13) | All or a portion of this holding is subject to unfunded loan commitments. |
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 March 31, 2021 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 |
The following is a summary of the inputs used to value the Fund’s net assets as of March 31, 2021 (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 | $ | — | $ | 96,742,271 | $ | — | $ | 96,742,271 | ||||||||
Foreign Corporate Bonds & Notes | — | 16,136,020 | — | 16,136,020 | ||||||||||||
Loans | — | 114,434,689 | — | 114,434,689 | ||||||||||||
Common Stocks: | ||||||||||||||||
Radio | 433,241 | 526 | — | 433,767 | ||||||||||||
Other Industries | 110,944 | 829,685 | — | 940,629 | ||||||||||||
Preferred Securities/Capital Securities | — | 475,463 | — | 475,463 | ||||||||||||
Escrows and Litigation Trusts | — | 31,158 | 9,272 | 40,430 | ||||||||||||
Short-Term Investment Securities | 5,059,410 | — | — | 5,059,410 | ||||||||||||
Total Investments at Value | $ | 5,603,595 | $ | 228,649,812 | $ | 9,272 | $ | 234,262,679 | ||||||||
* | 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
72 |
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SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS — March 31, 2021
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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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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The summary of each Fund’s asset and liabilities classified in the fair value hierarchy as of March 31, 2021 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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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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NOTES TO FINANCIAL STATEMENTS — March 31, 2021 — (continued)
The following tables represent the value of derivatives held as of March 31, 2021, 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 March 31, 2021, 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 | $ | 597,934 | $ | 33,150 | ||||
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 | $ | (1,568,282 | ) | $ | 373,925 | |||
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 year ended March 31, 2021:
Average Amount Outstanding During the Year | ||||
Fund | Foreign Exchange Contracts(1) | |||
Strategic Bond | $ | 22,869,997 | ||
(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 March 31, 2021. The repurchase agreements held by the Funds as of March 31, 2021, 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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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 | $ | 597,934 | $ | — | $ | — | $ | 597,934 | $ | 33,150 | $ | — | $ | — | $ | 33,150 | $ | 564,784 | $ | — | $ | 564,784 | ||||||||||||||||||||||
(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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NOTES TO FINANCIAL STATEMENTS — March 31, 2021 — (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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NOTES TO FINANCIAL STATEMENTS — March 31, 2021 — (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 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. On March 5, 2021, the FCA and LIBOR’s administrator announced that most LIBOR settings will no longer be published after June 30, 2023. Such announcements indicate that the continuation of LIBOR and other Reference Rates on the current basis cannot and will not be guaranteed. These announcements and any additional regulatory or market changes may have an adverse impact on a fund or its investments.
Regulators and market participants are working together to identify or develop successor Reference Rates. 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, and these changes 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 net asset value.
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 within those fiscal years, beginning after December 15, 2019. Adoption of the ASU had no material impact on the Funds.
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NOTES TO FINANCIAL STATEMENTS — March 31, 2021 — (continued)
In March 2020, the FASB issued ASU No. 2020-04 “Facilitation of the Effects of Reference Rate Reform on Financial Reporting”, which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of LIBOR and other interbank offered based reference rates at of the end of 2021. The temporary relief provided by ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management is evaluating the potential impact of ASU 2020-04 on the financial statements.
On December 3, 2020, the SEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the “Rule”). The Rule, in part, provides (i) a framework for determining fair value in good faith and (ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation related activities to a fund’s investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. The Rule became effective on March 8, 2021 and has a compliance date of September 8, 2022 (eighteen months following the effective date). Management is currently evaluating the Rule and its impact to the Fund.
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 year ended March 31, 2021 the amount of investment advisory fees waived for Strategic Bond Fund and Flexible Credit Fund were $931,880 and $1,013,458, 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 |
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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 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 year ended March 31, 2021, 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 | $ | 233,500 | ||
Fund | Class Specific Expenses | |||
U.S. Government Securities Class A | $ | 295,801 | ||
U.S. Government Securities Class C | 42,882 |
At March 31, 2021, 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, 2022 | March 31, 2023 | ||||||
U.S. Government Securities | $ | 213,543 | $ | 233,500 | ||||
Class Specific Expenses Reimbursed | ||||||||
Fund | March 31, 2022 | March 31, 2023 | ||||||
U.S. Government Securities Class A | $ | 295,607 | $ | 295,801 | ||||
U.S. Government Securities Class C | 37,873 | 42,882 |
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
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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 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 year ended March 31, 2021, 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 year ended March 31, 2021, 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 year ended March 31, 2021, 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 | $ | 21,629 | $ | 5,212 | $ | 10,770 | $ | — | $ | — | $ | 2,917 | ||||||||||||
Strategic Bond | 101,078 | 29,040 | 47,634 | 11 | 78,301 | 6,514 | ||||||||||||||||||
Flexible Credit | 88,139 | 2,101 | 65,348 | — | — | 2,575 |
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 year ended March 31, 2021, the Funds incurred the following
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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 March 31, 2021 | ||||||
U.S. Government Securities Class A | $ | 269,088 | $ | 20,766 | ||||
U.S. Government Securities Class C | 24,595 | 1,464 | ||||||
Strategic Bond Class A | 359,579 | 32,445 | ||||||
Strategic Bond Class B | 32,459 | 2,692 | ||||||
Strategic Bond Class C | 102,199 | 7,476 | ||||||
Strategic Bond Class W | 265,077 | 26,938 | ||||||
Flexible Credit Class A | 189,960 | 16,618 | ||||||
Flexible Credit Class C | 94,651 | 6,935 | ||||||
Flexible Credit Class W | 267,391 | 19,329 |
At March 31, 2021, 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 | 19.07 | % | 17.32 | % | ||||
Strategic Bond | 2.67 | 2.62 | ||||||
Flexible Credit | 3.11 | 3.00 |
Note 4. Purchases and Sales of Investment Securities
The cost of purchases and proceeds from sales and maturities of long-term investments during the year ended March 31, 2021 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 | $ | — | $ | — | $ | 19,091,566 | $ | 31,872,435 | ||||||||
Strategic Bond | 341,570,994 | 266,856,790 | 53,386,130 | 93,684,494 | ||||||||||||
Flexible Credit | 176,279,513 | 237,250,442 | — | — |
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, 2021 | Tax Distributions For the year ended March 31, 2021 | |||||||||||||||||||
Fund | Ordinary Income | Long-term Gains/ Capital Loss Carryover | Unrealized Appreciation (Depreciation)* | Ordinary Income | Long-Term Capital Gains | |||||||||||||||
U.S. Government Securities | $ | 767,201 | $ | (19,212,042 | ) | $ | 4,608,676 | $ | 1,954,819 | $ | — | |||||||||
Strategic Bond | 559,976 | (23,749,539 | ) | 1,469,214 | 11,298,705 | — | ||||||||||||||
Flexible Credit | 1,020,154 | (23,474,025 | ) | (377,317 | ) | 11,626,470 | — |
* | Unrealized appreciation (depreciation) includes amounts for derivatives and other assets and liabilities denominated in foreign currency. |
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NOTES TO FINANCIAL STATEMENTS — March 31, 2021 — (continued)
Tax Distributions For the year ended March 31, 2020 | ||||||||
Fund | Ordinary Income | Long-Term Capital Gains | ||||||
U.S. Government Securities | $ | 2,173,041 | $ | — | ||||
Strategic Bond | 10,676,277 | — | ||||||
Flexible Credit | 17,458,208 | — |
As of March 31, 2021, 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 | $ | 13,829,314 | $ | 5,382,728 | ||||
Strategic Bond | — | 23,749,539 | ||||||
Flexible Credit | — | 23,474,025 |
The Funds indicated below, utilized capital loss carryforwards, which offset net realized taxable gains in the year ended March 31, 2021:
Fund | Capital Loss Carryforward Utilized | |||
U.S. Government Securities | $ | 530,295 | ||
Strategic Bond | 7,440,940 | |||
Flexible Credit | 554,788 |
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, 2021, 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 | $ | — | $ | — | $ | — | ||||||
Strategic Bond | — | — | — | |||||||||
Flexible Credit | — | — | 1,561,350 |
For the period ended March 31, 2021, the reclassifications arising from book/tax differences resulted in increases (decreases) that were primarily due to net paydown adjustments, amortization of discount/premium, treatment of litigation payments and treatment of foreign currency to the components of net assets as follows:
Fund | Accumulated Undistributed Net Investment Income (Loss) | Accumulated Undistributed Net Realized Gain (Loss) | Capital Paid-in | |||||||||
U.S. Government Securities | $ | 819,948 | $ | (819,948 | ) | $ | — | |||||
Strategic Bond | 1,083,986 | (1,119,575 | ) | 35,589 | ||||||||
Flexible Credit | 677,118 | (591,833 | ) | (85,285 | ) |
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 | $ | 6,220,739 | $ | (1,612,063 | ) | $ | 4,608,676 | $ | 111,501,165 | |||||||
Strategic Bond | 10,919,372 | (9,448,031 | ) | 1,471,341 | 373,316,567 | |||||||||||
Flexible Credit Bond | 6,372,755 | (6,750,072 | ) | (377,317 | ) | 234,639,996 |
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NOTES TO FINANCIAL STATEMENTS — March 31, 2021 — (continued)
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 year ended March 31, 2021 | For the year ended March 31, 2020 | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||
Shares sold | 2,236,518 | $ | 21,764,624 | 2,586,535 | $ | 24,100,485 | ||||||||||||||||||||||||||
Reinvested dividends | 179,482 | 1,731,327 | 207,531 | 1,934,929 | ||||||||||||||||||||||||||||
Shares redeemed | (3,626,977 | ) | (34,987,221 | ) | (3,842,653 | ) | (35,899,452 | ) | ||||||||||||||||||||||||
Net increase (decrease) in shares outstanding before automatic conversion | (1,210,977 | ) | (11,491,270 | ) | (1,048,587 | ) | (9,864,038 | ) | ||||||||||||||||||||||||
Shares issued/(reacquired) upon automatic conversion | 94,688 | 914,469 | 15,094 | 139,280 | ||||||||||||||||||||||||||||
Net increase (decrease) | (1,116,289 | ) | $ | (10,576,801 | ) | (1,033,493 | ) | $ | (9,724,758 | ) | ||||||||||||||||||||||
U.S. Government Securities | ||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
For the year ended March 31, 2021 | For the year ended March 31, 2020 | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||
Shares sold | 483,806 | $ | 4,727,925 | 917,819 | $ | 8,709,707 | ||||||||||||||||||||||||||
Reinvested dividends | 9,602 | 92,642 | 7,718 | 71,973 | ||||||||||||||||||||||||||||
Shares redeemed | (780,254 | ) | (7,544,684 | ) | (553,203 | ) | (5,146,810 | ) | ||||||||||||||||||||||||
Net increase (decrease) in shares outstanding before automatic conversion | (286,846 | ) | (2,724,117 | ) | 372,334 | 3,634,870 | ||||||||||||||||||||||||||
Shares issued/(reacquired) upon automatic conversion | (94,806 | ) | (914,469 | ) | (15,104 | ) | (139,280 | ) | ||||||||||||||||||||||||
Net increase (decrease) | (381,652 | ) | $ | (3,638,586 | ) | 357,230 | $ | 3,495,590 | ||||||||||||||||||||||||
Strategic Bond | ||||||||||||||||||||||||||||||||
Class A | Class B | |||||||||||||||||||||||||||||||
For the year ended March 31, 2021 | For the year ended March 31, 2020 | For the year ended March 31, 2021 | For the year ended March 31, 2020 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 11,723,775 | $ | 40,489,625 | 10,309,167 | $ | 34,743,163 | 2,206,559 | $ | 7,531,595 | 3,336,380 | $ | 11,118,974 | ||||||||||||||||||||
Reinvested dividends | 1,375,200 | 4,733,156 | 1,493,539 | 5,029,334 | 99,176 | 340,859 | 113,560 | 381,983 | ||||||||||||||||||||||||
Shares redeemed | (10,140,821 | ) | (35,002,379 | ) | (13,182,469 | ) | (43,973,643 | ) | (2,218,556 | ) | (7,622,904 | ) | (3,778,634 | ) | (12,555,019 | ) | ||||||||||||||||
Net increase (decrease) in shares outstanding before automatic conversion | 2,958,154 | 10,220,402 | (1,379,763 | ) | (4,201,146 | ) | 87,179 | 249,550 | (328,694 | ) | (1,054,062 | ) | ||||||||||||||||||||
Shares issued/(reacquired) upon automatic conversion | 1,474,886 | 5,083,563 | 493,231 | 1,649,276 | ( 287,296 | ) | (976,210 | ) | (250,694 | ) | (832,069 | ) | ||||||||||||||||||||
Net increase (decrease) | 4,433,040 | $ | 15,303,965 | (886,532 | ) | $ | (2,551,870 | ) | ( 200,117 | ) | $ | (726,660 | ) | (579,388 | ) | $ | (1,886,131 | ) | ||||||||||||||
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Strategic Bond | ||||||||||||||||||||||||||||||||
Class C | Class W | |||||||||||||||||||||||||||||||
For the year ended March 31, 2021 | For the year ended March 31, 2020 | For the year ended March 31, 2021 | For the year ended March 31, 2020 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 3,688,032 | $ | 12,667,482 | 5,669,612 | $ | 19,212,709 | 34,392,953 | $ | 118,154,325 | 32,817,775 | $ | 109,353,277 | ||||||||||||||||||||
Reinvested dividends | 278,824 | 960,806 | 341,323 | 1,153,321 | 939,055 | 3,234,705 | 601,837 | 2,022,543 | ||||||||||||||||||||||||
Shares redeemed | (7,168,100 | ) | (24,718,370 | ) | (5,938,367 | ) | (20,000,269 | ) | (23,435,348 | ) | (79,759,984 | ) | (20,806,887 | ) | (69,465,170 | ) | ||||||||||||||||
Net increase (decrease) in shares outstanding before automatic conversion | (3,201,244 | ) | (11,090,082 | ) | 72,568 | 365,761 | 11,896,660 | 41,629,046 | 12,612,725 | 41,910,650 | ||||||||||||||||||||||
Shares issued/(reacquired) upon automatic conversion | (1,184,165 | ) | (4,107,353 | ) | (242,044 | ) | (817,207 | ) | — | — | — | — | ||||||||||||||||||||
Net increase (decrease) | (4,385,409 | ) | $ | (15,197,435 | ) | (169,476 | ) | $ | (451,446 | ) | 11,896,660 | $ | 41,629,046 | 12,612,725 | $ | 41,910,650 | ||||||||||||||||
Flexible Credit | ||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
For the year ended March 31, 2021 | For the year ended March 31, 2020 | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||
Shares sold | 4,208,735 | $ | 13,456,439 | 7,500,006 | $ | 24,765,601 | ||||||||||||||||||||||||||
Reinvested dividends | 1,060,848 | 3,401,156 | 1,437,578 | 4,721,251 | ||||||||||||||||||||||||||||
Shares redeemed | (6,444,142 | ) | (20,843,973 | ) | (18,575,282 | ) | (61,064,646 | ) | ||||||||||||||||||||||||
Net increase (decrease) in shares outstanding before automatic conversion | (1,174,559 | ) | (3,986,378 | ) | (9,637,698 | ) | (31,577,794 | ) | ||||||||||||||||||||||||
Shares issued/(reacquired) upon automatic conversion | 847,739 | 2,724,533 | 248,642 | 804,010 | ||||||||||||||||||||||||||||
Net increase (decrease) | ( 326,820 | ) | $ | (1,261,845 | ) | (9,389,056 | ) | $ | (30,773,784 | ) | ||||||||||||||||||||||
Flexible Credit | ||||||||||||||||||||||||||||||||
Class C | Class W | |||||||||||||||||||||||||||||||
For the year ended March 31, 2021 | For the year ended March 31, 2020 | For the year ended March 31, 2021 | For the year ended March 31, 2020 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 818,814 | $ | 2,616,747 | 4,361,074 | $ | 14,483,436 | 13,061,860 | $ | 40,519,660 | 43,533,148 | $ | 144,105,349 | ||||||||||||||||||||
Reinvested dividends | 378,791 | 1,214,495 | 539,719 | 1,779,382 | 1,032,857 | 3,297,842 | 1,595,488 | 5,232,529 | ||||||||||||||||||||||||
Shares redeemed | (5,958,379 | ) | (19,153,011 | ) | (4,946,574 | ) | (16,081,944 | ) | (30,521,354 | ) | (96,476,879 | ) | (39,178,335 | ) | (124,104,435 | ) | ||||||||||||||||
Net increase (decrease) in shares outstanding before automatic conversion | (4,760,774 | ) | (15,321,769 | ) | (45,781 | ) | 180,874 | (16,426,637 | ) | (52,659,377 | ) | 5,950,301 | 25,233,443 | |||||||||||||||||||
Shares issued/(reacquired) upon automatic conversion | ( 842,491 | ) | (2,724,533 | ) | (247,238 | ) | (804,010 | ) | — | — | — | — | ||||||||||||||||||||
Net increase (decrease) | (5,603,265 | ) | $ | (18,046,302 | ) | (293,019 | ) | $ | (623,136 | ) | (16,426,637 | ) | $ | (52,659,377 | ) | 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,
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NOTES TO FINANCIAL STATEMENTS — March 31, 2021 — (continued)
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 $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 year ended March 31, 2021, the following Funds had borrowings:
Portfolio | Days Outstanding | Interest Charges | Average Debt Utilized | Weighted Average Interest | ||||||||||||
U.S. Government Securities………………………………………… | 5 | $ | 330 | $ | 1,680,000 | 1.44 | % | |||||||||
Strategic Bond ……………………………………………………. | 4 | 91 | 575,000 | 1.42 | ||||||||||||
Flexible Credit…………………………………………………. | 59 | 13,994 | 5,890,254 | 1.44 |
At March 31, 2021, 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 year ended March 31, 2021, 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.
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NOTES TO FINANCIAL STATEMENTS — March 31, 2021 — (continued)
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.
Note 10. Other Matters
The coronavirus pandemic and the related governmental and public responses have had and may continue to have an impact on the Fund’s investments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market. Preventative or protective actions that governments may take in respect of pandemic or epidemic diseases may result in periods of business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which the Fund invests. Government intervention in markets may impact interest rates, market volatility and security pricing. The occurrence, reoccurrence and pendency of such diseases could adversely affect the economies (including through changes in business activity and increased unemployment) and financial markets either in specific countries or worldwide.
SunAmerica and Touchstone Advisors, Inc. (“Touchstone”) announced that they have entered into a definitive agreement for Touchstone to acquire certain assets related to SunAmerica’s retail mutual fund management business (the “AIG Funds”). Under the terms of the agreement, subject to shareholder approval, twelve of the AIG Funds, including the three SunAmerica Income Series Funds, are expected to be reorganized into either existing or newly created series of trusts in the Touchstone fund complex (the “Reorganizations”), and subsequently will be advised by Touchstone under its sub-advised mutual fund approach. On February 8, 2021, the Boards of Directors/Trustees of the AIG Funds unanimously approved each of the proposed Reorganizations.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of SunAmerica Income Funds and Shareholders of AIG Flexible Credit Fund, AIG Strategic Bond Fund, AIG U.S. Government Securities Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of AIG Flexible Credit Fund, AIG Strategic Bond Fund, and AIG U.S. Government Securities Fund (each a “Fund” constituting SunAmerica Income Funds, hereafter collectively referred to as the “Funds”) as of March 31, 2021, the related statements of operations for the year then ended, the statement of changes in net assets for each of the two years in the period ended March 31, 2021, including the related notes, and the financial highlights for each of the five years in the period ended March 31, 2021 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of the date listed in the table below, the results of each of their operations, the changes in each of their net assets and each of the financial highlights for each of the periods listed in the table below in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2021 by correspondence with the custodian, transfer agents, brokers and selling or agent banks; when replies were not received, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
Houston, Texas
May 27, 2021
We have served as the auditor of one or more investment companies in the AIG Funds family of funds since 1984.
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TRUSTEE AND OFFICER INFORMATION — March 31, 2021 — (unaudited)
The following table contains basic information regarding the Trustees and Officers that oversee operations of the Funds and other investment companies within the Fund complex. Unless otherwise noted, the address of each Director and executive officer is Harborside 5, 185 Hudson Street, Suite 3300, Jersey City, NJ 07311.
Name and Age | Position(s) | Length of | Principal Occupation(s) | Number of Funds in Fund Complex Overseen by Trustee(2) | Other Directorship(s) | |||||
Disinterested Trustees | ||||||||||
Dr. Judith L. Craven Age: 75 | Trustee | 2001-present | Retired. | 72 | Director A.G. Belo Corp. (media company) (1992 to 2014); Director, Sysco Corp. (food marketing and distribution company) (1996 to 2017); Director, Luby’s, Inc. (1998 to 2019). | |||||
Richard W. Grant Age: 75 | Trustee Chairman of the Board | 2011-present | Retired. | 23 | None | |||||
Stephen J. Gutman Age: 77 | Trustee | 1986-present | Senior Vice President and Associate Broker, The Corcoran Group (real estate) (2002 to present); President, SJG Marketing, Inc. (2009 to present). | 23 | None | |||||
Eileen A. Kamerick Age: 62 | Trustee | 2018-present | National Association of Corporate Directors Board Leadership Fellow and financial expert; Adjunct Professor of Law, University of Chicago, Washington University in St. Louis and University of Iowa law schools (2007 to Present); formerly, Senior Advisor to the Chief Executive Officer and Executive Vice President and Chief Financial Officer of ConnectWise, Inc. (software and services company) (2015 to 2016); Chief Financial Officer, Press Ganey Associates (health care informatics company) (2012 to 2014). | 23 | Hochschild Mining plc (precious metals company) (2016 to Present); Associated Banc-Corp (financial services company) (2007 to Present); Legg Mason Closed End Funds (registered investment companies) (2013 to Present); Westell Technologies, Inc. (technology company) (2003 to 2016). |
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TRUSTEE AND OFFICER INFORMATION — March 31, 2021 — (unaudited) (continued)
Name and Age | Position(s) | Length of | Principal Occupation(s) | Number of Funds in Fund Complex Overseen by Trustee(2) | Other Directorship(s) | |||||
Interested Trustee | ||||||||||
Peter A. Harbeck(4) Age: 67 | Trustee | 1995-present | Retired June 2019; formerly President, CEO (1997 to 2019), and Director (1992 to 2019), SunAmerica; Director, AIG Capital Services, Inc. (“ACS”) (1993 to 2019); Chairman, President and CEO, Advisor Group, Inc. (2004 to 2016). | 72 | None |
(1) | Trustees serve until their successors are duly elected and qualified. |
(2) | The term “Fund Complex” means two or more registered investment companies that hold themselves out to investors as related companies for purposes of investment services or have a common investment adviser or any investment adviser that is an affiliate of the Adviser. The “Fund Complex” includes the Trust (3 funds), SunAmerica Money Market Funds Inc. (“SAMMF”) (1 fund), SunAmerica Equity Funds (“SAEF”) (2 funds), SunAmerica Senior Floating Rate Fund, Inc. (“SASFRF”) (1 fund), SunAmerica Series, Inc. (“SA Series”) (6 funds), Anchor Series Trust (“AST”) (4 portfolios), SunAmerica Specialty Series (6 funds), SunAmerica Series Trust (“SAST”) (61 portfolios), VALIC Company I (“VALIC I”) (45 funds), VALIC Company II (“VALIC II”) (15 funds), Seasons Series Trust (“SST”) (19 portfolios). |
(3) | Directorships of companies required to report to the SEC under the Securities Exchange Act of 1934 (i.e., “public companies”) or other investment companies registered under the 1940 Act. |
(4) | Mr. Harbeck is considered to be an Interested Trustee because he owns shares of American International Group, Inc., the ultimate parent of the Adviser. |
Additional information concerning the Trustees is contained in the Statement of Additional Information which is available, without charge, by calling (800) 858-8850.
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TRUSTEE AND OFFICER INFORMATION — March 31, 2021 — (unaudited) (continued)
Name and Age | Position(s) | Length of | Principal Occupation(s) | |||
Officers | ||||||
John T. Genoy Age: 52 | President | 2007-present | Chief Financial Officer, SunAmerica (2002 to present); Senior Vice President, SunAmerica (2004 to present); Chief Operating Officer, SunAmerica (2006 to present). | |||
Sharon French Age: 56 | Executive Vice President | 2019- present | President and CEO of SunAmerica (since 2019); Vice President of AIG (since 2019); Executive Vice President and Head of Beta Solutions, OppenheimerFunds (2016-2019); President, F-Squared Capital, LLC (financial services) (2013-2015). | |||
Gregory R. Kingston Age: 55 2919 Allen Parkway Houston, Texas 77019 | Treasurer | 2014-present | Vice President, SunAmerica (2001 to present); Head of Mutual Fund Administration, SunAmerica (2014 to present). | |||
James Nichols Age: 54 | Vice President | 2006-present | Director, President and CEO, ACS (2006 to present); Senior Vice President, SunAmerica (2002 to present). | |||
Gregory N. Bressler Age: 54 | Secretary | 2005-present | Senior Vice President and General Counsel, SunAmerica (2005 to present). | |||
Kathleen D. Fuentes Age: 52 | Chief Legal Officer and Assistant Secretary | 2013-present | Vice President and Deputy General Counsel, SunAmerica (2006 to present). | |||
Timothy P. Pettee Age: 62 | Vice President | 2018 to Present | Chief Investment Officer, SunAmerica (2018 to Present); Lead Portfolio Manager-Rules Based Funds (2013 to Present); Chief Investment Officer (2003 to 2013) | |||
Shawn Parry Age: 48 2919 Allen Parkway Houston, Texas 77019 | Vice President and Assistant Treasurer | 2014-present | Assistant Vice President, SunAmerica (2005 to 2014); Vice President, SunAmerica (2014 to present). | |||
Donna M. McManus Age: 60 | Vice President and Assistant Treasurer | 2014-present | Managing Director, BNY Mellon (2009-2014); Vice President, SunAmerica, (2014 to present). | |||
Christopher C. Joe Age: 51 2919 Allen Parkway Houston, Texas 77019 | Chief Compliance Officer | 2017 to Present | Chief Compliance Officer, AIG Funds, Anchor Series Trust, Seasons Series Trust, SunAmerica Series Trust, VALIC Company I and VALIC Company II (2017-Present); Chief Compliance Officer, VALIC Retirement Services Company (2017-Present); Chief Compliance Officer, The Variable Annuity Life Insurance Company (2017 to Present); Chief Compliance Officer, Invesco PowerShares (2012-2017); Chief Compliance Officer, Invesco Investment Advisers, LLC (2010-2013); U.S. Compliance Director, Invesco Ltd. (2006-2014); Deputy Chief Compliance Officer, Invesco Advisers, LLC (2014-2015). | |||
Matthew J. Hackethal Age: 49 | Anti-Money Laundering (“AML”) Compliance Officer | 2006-present | Acting Chief Compliance Officer, AIG Funds, Anchor Series Trust, Seasons Series Trust, SunAmerica Series Trust, VALIC Company I and VALIC Company II (2016 to 2017); Chief Compliance Officer, SunAmerica (2006 to Present); Chief Compliance Officer, The Variable Annuity Life Insurance Company (2016 to 2017); AML Compliance Officer, AIG Funds, Anchor Series Trust, Seasons Series Trust, SunAmerica Series Trust, VALIC Company I and VALIC Company II (2006 to Present); and Vice President, SunAmerica (2011 to Present). |
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SHAREHOLDER TAX INFORMATION — March 31, 2021 — (unaudited)
Certain tax information regarding the Fund is required to be provided to shareholders based upon each Fund’s income and distributions for the taxable year ended March 31, 2021. The information and distributions reported herein may differ from the information and distributions taxable to the shareholders for the calendar year ending December 31, 2021. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to shareholders in early 2022.
For the year ended March 31, 2021, the Funds paid the following long-term capital gains dividends along with percentage of ordinary income dividends that qualified for the dividends received deduction for corporations:
Net Long-Term Capital Gains | Qualifying % for the Dividends Received Deduction | |||||||
U.S. Government Securities Fund Class A | $ | — | — | % | ||||
U.S. Government Securities Fund Class C | — | — | ||||||
Strategic Bond Fund Class A | — | — | ||||||
Strategic Bond Fund Class B | — | 0.09 | ||||||
Strategic Bond Fund Class C | — | 0.09 | ||||||
Strategic Bond Fund Class W | — | 0.09 | ||||||
Flexible Credit Fund Class A | — | 0.16 | ||||||
Flexible Credit Fund Class C | — | 0.16 | ||||||
Flexible Credit Fund Class W | — | 0.16 |
For the year ended March 31, 2021, certain dividends paid by the Strategic Bond Fund and Flexible Credit Fund may be subject to a maximum tax rate of 15%, as provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Of the distributions paid during the fiscal year, the following represents the maximum amount that may be considered qualified dividend income:
Amount | ||||
Strategic Bond Fund | $ | — | ||
Flexible Credit Fund | 27 |
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COMPARISONS: PORTFOLIOS vs. INDICES — (unaudited)
As required by the Securities and Exchange Commission, the graphs on the following pages compare the performance of a $10,000 investment in the SunAmerica Income Funds’ portfolios to a similar investment in an index. Please note that “inception,” as used herein, reflects the date on which a specific class of shares commenced operations. It is important to note that the SunAmerica Income Funds are professionally managed mutual funds, while the indices are not available for investment and are unmanaged. The comparison is shown for illustrative purposes only. The graphs present the performance of Class A shares of each Fund. The performance of the other classes will vary based upon the difference in sales charges and fees assessed to shareholders of that class.
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AIG U.S. Government Securities Fund
The AIG U.S. Government Securities Fund Class A shares returned -4.66% (before maximum sales charge) for the 12-month period ended March 31, 2021. Though posting negative absolute returns, the Fund outperformed its benchmark, the ICE BofAML U.S. Treasury Index*, which returned -5.11% during the same period.
During the early months of the annual period, U.S. Treasury yields were near multi-year lows, flattening‡ the yield curve, due to COVID-19-induced economic pressures. However, as the annual period progressed, the U.S. Treasury yield curve steepened significantly. Short-term yields remained rather range-bound near historical lows, anchored by strong demand for U.S. Treasuries as a “safe haven” and by the U.S. Federal Reserve (the “Fed”) not only keeping the targeted federal funds rate near zero but also indicating it would maintain these low rates for the foreseeable future. Intermediate- and long-term yields rose as economic conditions improved on additional U.S. fiscal stimulus and COVID-19 vaccine rollouts. Interpretation of the Fed’s policy shift as being more tolerant of higher inflation also caused a sell-off in intermediate- and longer-dated securities. (Remember, there is an inverse relationship between bond prices and yield movements, so that bond prices rise when yields decrease and vice versa.)
For the annual period overall, the yield on the three-month U.S. Treasury fell approximately eight basis points† to end the annual period at 0.03%, and the yield on the two-year U.S. Treasury declined approximately seven basis points to end the annual period at 0.16%. The yield on the bellwether 10-year U.S. Treasury rose approximately 104 basis points to end the annual period at 1.74%, while yields on the 30-year U.S. Treasury increased approximately 106 basis points to end the annual period at 2.41%. Meanwhile, mortgage-backed securities generated a rather flat return for the annual period but outperformed U.S. Treasuries.
Amid this backdrop, the Fund’s underweight to U.S. Treasuries compared to the ICE BofAML U.S. Treasury Index (the “benchmark index”) and its out-of-benchmark exposure to mortgage-backed securities contributed positively to its relative results. Issue selection within the Fund’s U.S. Treasury allocation added value as well. More specifically, the Fund’s holdings in each maturity segment, except two, boosted relative results due mainly to being underweight those segments versus the benchmark index. The Fund’s underweight positioning in the 0-1 year segment and in the seven-year to 10-year maturity segments detracted from its relative performance.
The Fund’s shorter duration in U.S. Treasuries compared to the benchmark index helped, given that interest rates generally rose during the annual period. The Fund’s yield curve positioning had a rather neutral effect on relative results during the annual period, as we maintained a slightly underweight but close-to-benchmark positioning across the maturity spectrum.
During the annual period, we made no significant changes to the Fund’s allocation in terms of either holdings and maturity weights, and market conditions did not prompt any notable buys or sells. At the end of the annual period, the Fund had approximately 79.9% of its total net assets invested in U.S. Treasuries, 19.9% in mortgage-backed securities and the remainder in cash and cash equivalents. As of March 31, 2021, the Fund had a slightly shorter duration than that of the benchmark index.
Past performance is no guarantee of future results.
U.S. Government guarantee applies only to the underlying securities of the Fund’s portfolio and not to the Fund shares. Interest rates and bond prices typically move inversely to each other; therefore, as with any bond fund, the value of your investment in this Fund may go up or down in response to changes in interest rates.
* | The ICE BofAML U.S. Treasury Index tracks the performance of U.S. dollar denominated sovereign debt publicly issued by the U.S. government in its domestic market. Indices are not managed and an investor cannot invest directly into an index. |
† | A basis point is 1/100th of a percentage point. |
‡ | A flattening yield curve is one wherein the differential in yields between shorter-term and longer-term maturities narrows; opposite of a steepening yield curve. |
Securities listed may or may not be a part of current Fund construction.
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COMPARISONS: PORTFOLIOS vs. INDICES — (unaudited) (continued)
Over the past ten years, $10,000 invested in AIG U.S. Government Securities Fund Class A shares would have increased to $11,207. The same amount invested in securities mirroring the performance of the ICE BofA US Treasury Index would be valued at $13,385.
AIG U.S. Government Securities Fund
Class A@ | Class C | |||||||||||||||
Average Annual Return | Cumulative Return† | Average Annual Return | Cumulative Return† | |||||||||||||
1 Year Return | -9.20% | -4.66% | -6.33% | -5.39% | ||||||||||||
5 Year Return | -0.10% | 4.51% | 0.19% | 0.96% | ||||||||||||
10 Year Return | 1.15% | 17.61% | 0.97% | 10.11% | ||||||||||||
Since Inception* | 3.68% | 183.20% | 2.80% | 82.57% |
† | Cumulative returns do not include sales load. If sales load had been included, the return would be lower. |
* | Inception Date - Class A: 10/1/93; Class C: 06/1/99. |
# | For the purposes of the graph, it has been assumed that the maximum sales charge of 4.75% of offering price was deducted from the initial $10,000 investment in the Fund. For purposes of the table, it has been assumed that the maximum sales charge with respect to the Class A shares, was deducted from the initial investment in the Fund and that the CDSCs with respect to the Class C shares has been deducted, as applicable. Effective September 30, 2020, the maximum sales charge with respect to Class A Shares was lowered to 3.75%. |
@ | As of the close of business on December 2, 2014, Class B shares of the Fund were no longer offered to new or existing shareholders, except that dividends and/or capital gain distributions received by a shareholder from the Fund continued to be automatically reinvested in additional Class B shares of the Fund, at the net asset value per share in effect on the payable date, unless the shareholder had elected to receive them in cash or automatically reinvest them in any retail fund distributed by AIG Capital Services, Inc. As of the close of business on January 27, 2015, all outstanding Class B shares of the Funds were converted to Class A shares. |
For the 12-month period ended March 31, 2021, the AIG U.S. Government Securities Fund Class A returned -9.20%, compared to -5.11% for the ICE BofA US Treasury Index. (The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.)
Performance data quoted represents past performance and is no guarantee of future results. Maximum Sales Charge: Class A: 3.75%, Class C: 1.00% CDSC. The fund’s daily net asset values are not guaranteed and shares are not insured by the FDIC, the Federal Reserve Board or any other agency. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be higher or lower than the original cost. Current performance may be higher or lower than that shown. Performance as of the most recent month end is available at www.aig.com/funds.
** | The ICE BofA U.S. Treasury Index tracks the performance of U.S. dollar denominated sovereign debt publicly issued by the U.S. government in its domestic market. Indices are not managed and an investor cannot invest directly into an index. |
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AIG Strategic Bond Fund
The AIG Strategic Bond Fund Class A shares returned 13.87% (before maximum sales charge) for the 12-month period ended March 31, 2021. The Fund outperformed its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index*, which returned 0.71% during the same annual period. The Fund also outperformed the LIBOR 3-Month Index*, a widely-recognized benchmark of interest rate performance, which returned 0.32% for the same annual period.
The Fund’s outperformance relative to its benchmark can be attributed to a combination of sector allocation, country selection and issue selection. Specifically, allocation positioning within the high yield corporate bond and emerging markets debt sectors helped relative results most, as these sectors significantly outperformed the Bloomberg Barclays U.S. Aggregate Bond Index during the annual period. Having an overweight allocation to and security selection among sovereign debt securities also contributed positively. In addition, having an underweight allocation to U.S. Treasuries, which underperformed the benchmark during the annual period, added value. From an industry perspective, an overweight allocation to communications and security selection within consumer cyclical and energy were the largest positive contributors. Security selection within the investment grade corporate bond, high yield corporate bond and emerging markets debt sectors also boosted the Fund’s relative results. While the Fund remained U.S.-centric, portions of the Fund were allocated to non-U.S. dollar denominated sovereign and emerging market bonds. Holdings in Angola and Egypt contributed most positively to relative results.
Only partially offsetting these positive contributors was the detracting effects of underweight allocations to investment grade corporate bonds and local authority bonds and having a position in cash, albeit a modest one, during an annual period when segments of the fixed income market posted double-digit percentage gains. Security selection among conventional 30-year mortgage-backed securities dampened results as well. From a country selection perspective, holdings in Mexico and Uruguay hurt the Fund’s relative results during the annual period.
Duration positioning contributed positively to the Fund’s performance during the annual period. The Fund maintained a shorter duration profile than that of the Bloomberg Barclays U.S. Aggregate Bond Index, which helped as U.S. Treasury yields across the intermediate and longer-maturity segments of the spectrum rose during the annual period. Importantly, though, the Fund’s duration stance was based more on decisions related to sector allocation than to an outright bet on the path or direction of interest rates. We maintained a preference within the Fund for leveraged finance sectors, such as high yield bonds and floating rate bank loans, as we felt their valuations were attractive. Both high yield bonds and bank loans carry a shorter duration when compared to the Bloomberg Barclays U.S. Aggregate Bond Index, so the weighted average duration of the Fund was comparably lower.
Among individual securities, positions in the sovereign debt issues of Angola and in the issues of energy company Hilcorp Energy I LP/Hilcorp Finance Co. contributed most positively to the Fund’s relative performance during the annual period. Positions in the issues of energy companies PBF Holding Co. LLC/PBF Finance Corp. and Hi-Crush, Inc. and communications company CSC Holdings LLC detracted most from the Fund’s relative results.
The Fund began the annual period with target allocations of 20% to investment grade corporate bonds, 30% to securitized products, 35% to high yield bonds and 15% to emerging markets debt. As market conditions, including macroeconomic, political, geopolitical and monetary policy factors, shifted, we adjusted target allocations accordingly throughout the annual period. For example, in May 2020, we reduced the Fund’s securitized products allocation and increased its allocation to emerging markets debt. Gains in investor confidence drove credit spreads tighter for most fixed income sectors during the first few weeks of May, though at a slower pace than in the prior month. Fueling the optimism was consistent monetary and fiscal support and anticipation of an imminent re-opening of economies as most developed market countries appeared to move past peak COVID-19 infections. In June 2020, we further reduced the Fund’s allocation to securitized products and increased its allocation to high yield bonds. Rising from notably low levels, improving economic data that suggested an imminent start of a recovery drove a sustained rebound in most fixed income sectors, even as markets remained highly dependent on the ongoing support of the U.S. Federal Reserve. In January 2021, we took profits in what we saw as some fully-valued investment grade corporate bonds and moved into shorter-term high quality government securities. Credit markets got off to a strong start in the month but ended on a more tentative note, with credit spreads trading roughly flat overall as investors weighed opposing market dynamics. The allocation shift, in our view, would enable us to take advantage of attractive new opportunities we felt were likely to crop up amid the increased volatility we were starting to see in the credit markets. In March 2021, we reduced the Fund’s investment grade corporate bond allocation and increased its allocation to emerging markets debt on
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COMPARISONS: PORTFOLIOS vs. INDICES — (unaudited) (continued)
expectations that U.S. Treasury yields would continue to move higher. As of March 31, 2021, the Fund had target allocations of 15% to investment grade corporate bonds, 20% to securitized products, 40% to high yield bonds and 25% to emerging markets debt.
Past performance is no guarantee of future results.
Interest rates and bond prices typically move inversely to each other; therefore, as with any bond fund, the value of an investment in this Fund may go up or down in response to changes in interest rates. High-yield bonds tend to have lower interest rate risk than higher-quality bonds of similar maturity but carry greater credit and default risk. Investing internationally involves special risks, such as currency fluctuations and economic and political instability.
* | 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. The LIBOR 3-Month Index is a benchmark interest rate that some of the world’s leading banks charge each other for short-term loans. It serves as the first step to calculating interest rates on various loans throughout the world and is published each day in five currencies: the Swiss franc, the euro, the pound sterling, the Japanese yen, and the U.S. dollar. |
Securities listed may or may not be a part of current Fund construction.
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SunAmerica Income Funds
COMPARISONS: PORTFOLIOS vs. INDICES — (unaudited) (continued)
Over the past ten years, $10,000 invested in AIG Strategic Bond Fund Class A shares would have increased to $14,182. The same amount invested in securities mirroring the performance of the Bloomberg Barclays U.S. Aggregate Bond Index and the LIBOR 3-Month Index would be valued at $14,025 and $10,918, respectively.
AIG Strategic Bond Fund
Class A | Class B | Class C | Class W | |||||||||||||||||||||||||||||
Average Annual Return | Cumulative Return† | Average Annual Return | Cumulative Return† | Average Annual Return | Cumulative Return† | Average Annual Return | Cumulative Return† | |||||||||||||||||||||||||
1 Year Return | 8.37% | 13.87% | 8.74% | 12.74% | 12.11% | 13.11% | 13.77% | 13.77% | ||||||||||||||||||||||||
5 Year Return | 3.84% | 26.65% | 3.76% | 22.25% | 4.15% | 22.52% | 5.06% | 27.99% | ||||||||||||||||||||||||
10 Year Return | 3.56% | 48.76% | 3.49% | 40.94% | 3.38% | 39.40% | N/A | N/A | ||||||||||||||||||||||||
Since Inception* | 5.79% | 391.05% | 6.04% | 387.36% | 5.58% | 332.65% | 3.88% | 26.49% |
† | Cumulative returns do not include sales load. If sales load had been included, the return would be lower. |
* | Inception Date - Class A: 11/1/93; Class B: 04/1/94; Class C: 04/1/94; Class W: 01/29/15. |
# | For the purposes of the graph, it has been assumed that the maximum sales charge of 4.75% of offering price was deducted from the initial $10,000 investment in the Fund. For purposes of the table, it has been assumed that the maximum sales charge with respect to the Class A shares, was deducted from the initial investment in the Fund and that the CDSCs with respect to the Class B and Class C shares have been deducted, as applicable. Effective September 30, 2020, the maximum sales charge with respect to Class A Shares was lowered to 3.75%. |
For the 12-month period ended March 31, 2021, the AIG Strategic Bond Fund Class A returned 8.37%, compared to 0.71% for the Bloomberg Barclays U.S. Aggregate Bond Index and 0.32% for the LIBOR 3-Month Index. (The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.)
Performance data quoted represents past performance and is no guarantee of future results. Maximum Sales Charge: Class A: 3.75%, Class B: 4.00% Contingent Deferred Sales Charge (CDSC), Class C: 1.00% CDSC. Class B shares of the Fund convert automatically to Class A shares approximately eight years after purchase. The fund’s daily net asset values are not guaranteed and shares are not insured by the FDIC, the Federal Reserve Board or any other agency. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be higher or lower than the original cost. Current performance may be higher or lower than that shown. Performance as of the most recent month end is available at www.aig.com/funds.
** | 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. |
*** | The LIBOR 3-Month Index is a benchmark interest rate that some of the world’s leading banks charge each other for short-term loans. It serves as the first step to calculating interest rates on various loans throughout the world and is published each day in five currencies: the Swiss franc, the euro, the pound sterling, the Japanese yen, and the U.S. dollar. |
Indices are not managed and an investor cannot invest directly into an index.
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SunAmerica Income Funds
COMPARISONS: PORTFOLIOS vs. INDICES — (unaudited) (continued)
AIG Flexible Credit Fund
The AIG Flexible Credit Fund Class A shares returned 25.13% (before maximum sales charge) for the 12-month period ended March 31, 2021. The Fund outperformed its benchmark, the Flexible Credit Blended Benchmark, comprised 50% of the Bloomberg Barclays U.S. High Yield 2% Issuer Capped Index and 50% of the S&P/LSTA Leveraged Loan Index*, which returned 22.19% during the same annual period. The Fund also outperformed the ICE BofAML USD 3-Month Dep OR CM Index*, a broad measure of market performance, which returned 0.64% for the same annual period.
The Fund actively invests in high yield bonds and floating rate loans and has the flexibility to allocate 0% to 100% of its portfolio to either sector of the leveraged finance market. During the annual period, most of the Fund’s outperformance of the Flexible Credit Blended Benchmark can be attributed to strong security selection across both high yield bonds and floating rate loans. The Fund particularly benefited from positions in issues that had been hard hit by the ripple effects of the COVID-19 pandemic early in the annual period. Prudently, we had sought to take advantage of attractive valuations in the second quarter of 2020 by aggressively buying issues that we believed were positioned to benefit from a re-opening of the economy as COVID-19 pandemic restrictions eased. Sector selection slightly detracted from performance, as the Fund’s exposure, albeit modest, to investment grade corporate bonds and cash, which are not components of the Flexible Credit Blended Benchmark, underperformed high yield bonds and floating rate loans during the annual period.
Security selection across most industries added value. Within the Fund’s floating rate loan allocation, issue selection in the transportation-automotive, consumer non-durables and forest product/containers industries contributed most positively to relative performance. Strong performance within the Fund’s high yield bond allocation was led by effective issue selection in the consumer cyclicals and transportation industries. Conversely, issue selection within the retail and food/tobacco industries detracted modestly within the floating rate loans sector. There were no significant detractors from an issue selection perspective within the high yield bond sector during the annual period.
Based on allocation positioning, having underweights to the financials and media/telecom-cable wireless video industries and an overweight to the consumer non-durables industry within the floating rate loan allocation helped most. However, these positive contributors were more than offset by the detracting effect of underweighted allocations in both the floating rate loan and high yield bond sectors to the energy industry. While we added to the Fund’s energy exposures throughout the annual period and eventually reached a neutral weighting, the purchases were made too slowly to keep up with the strong performance of the industry as oil prices rebounded.
Among individual securities, positions in the loans of commercial vehicle components manufacturer and supplier Accuride Corp. and rigid plastic and films manufacturer and distributor Klockner Pentaplast of America, Inc. and the bonds of hotel property real estate investment trust ESH Hospitality, Inc. contributed most positively to the Fund’s relative performance during the annual period. Positions in the loans of houseware products provider Libbey Glass LLC and the bonds of mining company Freeport-McMoRan, Inc. and sports marketing company Diamond Sports Group LLC detracted most from the Fund’s relative results.
The Fund began the annual period with approximately a 48% allocation to loans, approximately a 47% allocation to high yield bonds and approximately a 2% allocation to investment grade corporate bonds, with the remainder in cash and other sectors, such as structured securities, largely for liquidity purposes. We soon shifted to an approximately 57/43 allocation between high yield bonds and floating rate loans, mostly based on the interest rate environment. The significant drop in LIBOR* and our expectations for continued low interest rates favored high yield bonds, in our view, during the second quarter of 2020. The Fund maintained its overweight to high yield bonds through the third quarter of 2020 given the benign interest rate environment and what we saw as their attractive relative value. By the end of 2020, the Fund had an approximately 53/43 allocation between high yield bonds and floating rate loans, with the remainder in investment grade corporate bonds and cash. Based on relative valuations and rising interest rates, we
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SunAmerica Income Funds
COMPARISONS: PORTFOLIOS vs. INDICES — (unaudited) (continued)
began migrating the Fund’s allocation more toward floating rate loans in the first quarter of 2021. As of March 31, 2021, the Fund had approximately a 48% allocation to high yield bonds, approximately a 50% allocation to floating rate loans and the remainder in investment grade corporate bonds and cash.
Past performance is no guarantee of future results.
Interest rates and bond prices typically move inversely to each other; therefore, as with any bond fund, the value of an investment in this Fund may go up or down in response to changes in interest rates. High-yield bonds tend to have lower interest-rate risk but may be subject to greater market fluctuations and risk of default or loss of income and principal than securities in higher rating categories. High-yield debt instruments carry a greater default risk, may be more volatile, less liquid, more difficult to value and more susceptible to adverse economic conditions or investor perceptions than other debt instruments. Investments in floating rate loans involve certain risks, including, among others risks of nonpayment of principal and interest; collateral impairment; non-diversification and borrower industry concentration; and lack of full liquidity.
* | The Bloomberg Barclays U.S. High Yield 2% Issuer Capped Index is a component of the U.S. Corporate High-Yield Bond Index, which covers the universe of fixed-rate, non-investment grade corporate debt of issuers in non-emerging market countries. It is not market capitalization-weighted and each issuer is capped at 2% of the index. The S&P/LSTA Leveraged Loan Index (LLI) reflects the market-weighted performance of U.S. dollar-denominated institutional leveraged loan portfolios. The LLI is the only domestic leveraged loan index that utilizes real-time market weightings spreads and interest payments. The ICE BofAML US Dollar 3-Month Deposit Offered Rate Constant Maturity (USD 3-Mo Dep OR CM) Index tracks the performance of a synthetic asset paying LIBOR to a stated maturity. Indices are not managed and an investor cannot invest directly into an index. |
Securities listed may or may not be a part of current Fund construction.
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SunAmerica Income Funds
COMPARISONS: PORTFOLIOS vs. INDICES — (unaudited) (continued)
Over the past ten years, $10,000 invested in AIG Flexible Credit Fund Class A shares would have increased to $15,240. The same amount invested in securities mirroring the performance of the Blended Benchmark (50% Bloomberg Barclays U.S. High-Yield 2% Issuer Capped Index/50% S&P/LSTA Leveraged Loan Index), the Bloomberg Barclays U.S. High-Yield 2% Issuer Capped Index, the S&P/LSTA Leveraged Loan Index and the ICE BofA USD 3-Mo Dep OR CM Index would be valued at $16,881, $18,724, $15,167, and $10,939, respectively.
AIG Flexible Credit Fund
Class A## | Class C | Class W | ||||||||||||||||||||||
Average Annual Return | Cumulative Return† | Average Annual Return | Cumulative Return† | Average Annual Return | Cumulative Return† | |||||||||||||||||||
1 Year Return | 19.22% | 25.13% | 23.61% | 24.61% | 25.79% | 25.79% | ||||||||||||||||||
5 Year Return | 4.47% | 30.50% | 4.77% | 26.21% | 5.74% | 32.22% | ||||||||||||||||||
10 Year Return | 4.30% | 60.22% | 4.14% | 50.07% | N/A | N/A | ||||||||||||||||||
Since Inception* | 4.78% | 199.16% | 4.50% | 147.91% | 4.48% | 32.93% |
† | Cumulative returns do not include sales load. If sales load had been included, the return would be lower. |
* | Inception Date - Class A: 11/2/98; Class C: 08/21/00; Class W: 10/01/14. |
# | For the purposes of the graph, it has been assumed that the maximum sales charge of 4.75% of offering price was deducted from the initial $10,000 investment in the Fund. For purposes of the table, it has been assumed that the maximum sales charge with respect to the Class A shares, was deducted from the initial investment in the Fund and that the CDSCs with respect to the Class C shares has been deducted, as applicable. Effective September 30, 2020, the maximum sales charge with respect to Class A Shares was lowered to 3.75%. |
## | As of the close of business on December 2, 2014, Class B shares of the Fund were no longer offered to new or existing shareholders, except that dividends and/or capital gain distributions received by a shareholder from the Fund continued to be automatically reinvested in additional Class B shares of the Fund, at the net asset value per share in effect on the payable date, unless the shareholder had elected to receive them in cash or automatically reinvest them in any retail fund distributed by AIG Capital Services, Inc. As of the close of business on January 27, 2015, all outstanding Class B shares of the Funds were converted to Class A shares. |
For the 12 month period ended March 31, 2021, the AIG Flexible Credit Fund Class A returned 19.22%, compared to 22.19% for the Blended Benchmark (50% Bloomberg Barclays U.S. High-Yield 2% Issuer Capped Index/50% S&P/LSTA Leveraged Loan Index), 23.65% for the Bloomberg Barclays U.S. High-Yield 2% Issuer Capped Index, 20.71% for the S&P/LSTA Leveraged Loan Index and 0.64% for the ICE BofA USD 3-Mo Dep OR CM Index. (The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.)
Performance data quoted represents past performance and is no guarantee of future results. Maximum Sales Charge: Class A: 3.75%, Class C: 1.00% CDSC. The fund’s daily net asset values are not guaranteed and shares are not insured by the FDIC, the Federal Reserve Board or any other agency. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be higher or lower than the original cost. Current performance may be higher or lower than that shown. Performance as of the most recent month end is available at www.aig.com/funds.
@ | The Bloomberg Barclays U.S. High-Yield 2% Issuer Capped Index is a component of the U.S. Corporate High Yield Bond Index, which covers the universe of fixed-rate, non-investment grade corporate debt of issuers in non-emerging market countries. It is not market capitalization-weighted and each issuer is capped at 2% of the index. |
†† | The S&P/LSTA Leveraged Loan Index (LLI) reflects the market-weighted performance of U.S. dollar-denominated institutional leveraged loan portfolios. The LLI is the only domestic leveraged loan index that utilizes real-time market weightings spreads and interest payments. |
*** | The ICE BofA US Dollar 3-Month Deposit Offered Rate Constant Maturity (USD 3-Mo Dep OR CM) Index tracks the performance of a synthetic asset paying LIBOR to a stated maturity. |
Indices are not managed and an investor cannot invest directly into an index.
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SUPPLEMENT TO THE PROSPECTUS
THE SUPPLEMENT IS NOT PART OF ANNUAL REPORT
SunAmerica Equity Funds
AIG International Dividend Strategy Fund
SunAmerica Income Funds
AIG Flexible Credit Fund
AIG Strategic Bond Fund
AIG U.S. Government Securities Fund
SunAmerica Senior Floating Rate Fund, Inc.
AIG Senior Floating Rate Fund
SunAmerica Series, Inc.
AIG Active Allocation Fund
AIG Focused Dividend Strategy Fund
AIG Multi-Asset Allocation Fund
AIG Select Dividend Growth Fund
AIG Strategic Value Fund
SunAmerica Specialty Series
AIG Focused Alpha Large-Cap Fund
AIG Focused Growth Fund
(each, a “Fund” and collectively, the “Funds”)
Supplement dated February 8, 2021
to the Summary Prospectus, Prospectus and
Statement of Additional Information of each Fund
SunAmerica Asset Management, LLC (“SunAmerica”), the Funds’ investment adviser, and Touchstone Advisors, Inc. (“Touchstone”) announced that they have entered into a definitive agreement for Touchstone to acquire certain assets related to SunAmerica’s retail mutual fund management business (the “transaction”).
Under the terms of the agreement, subject to Fund shareholder approval, twelve of the Funds are expected to be reorganized into either existing series or newly created series of Touchstone Strategic Trust or Touchstone Funds Group Trust (collectively, the “Touchstone Funds”) (the “Reorganizations”), and subsequently will be advised by Touchstone under its sub-advised mutual fund approach. On February 8, 2021, the Boards of Directors/Trustees of the Funds unanimously approved each of the proposed Reorganizations. The proposed Reorganizations are listed below.
AIG Fund | Acquiring Touchstone Fund | |
SunAmerica Equity Funds | ||
AIG International Dividend Strategy Fund | Touchstone International Equity Fund, a series of Touchstone Strategic Trust | |
SunAmerica Income Funds | ||
AIG U.S. Government Securities Fund | Touchstone Active Bond Fund, a series of Touchstone Funds Group Trust | |
AIG Flexible Credit Fund AIG Strategic Bond Fund | Touchstone Strategic Income Opportunities Fund, a series of Touchstone Strategic Trust | |
SunAmerica Senior Floating Rate Fund, Inc. | ||
AIG Senior Floating Rate Fund | Touchstone Credit Opportunities Fund, a series of Touchstone Funds Group Trust |
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SunAmerica Income Funds
SUPPLEMENT TO THE PROSPECTUS — (continued)
AIG Fund | Acquiring Touchstone Fund | |
SunAmerica Series, Inc. | ||
AIG Active Allocation Fund AIG Multi-Asset Allocation Fund | Touchstone Balanced Fund, a series of Touchstone Strategic Trust | |
AIG Strategic Value Fund | Touchstone Value Fund, a series of Touchstone Strategic Trust | |
AIG Focused Dividend Strategy Fund AIG Select Dividend Growth Fund | Touchstone Dividend Equity Fund, a series of Touchstone Funds Group Trust | |
SunAmerica Specialty Series | ||
AIG Focused Alpha Large-Cap Fund | Touchstone Large Cap Focused Fund, a series of Touchstone Strategic Trust | |
AIG Focused Growth Fund | Touchstone Sands Capital Select Growth Fund, a series of Touchstone Funds Group Trust |
The Reorganizations are subject to the completion of certain conditions, including approval by the shareholders of the applicable Fund. If all conditions are satisfied and approvals obtained, the transaction and proposed Reorganizations are expected to close in the third quarter of 2021.
The foregoing disclosure is not intended to solicit a proxy from any Fund shareholder. The solicitation of proxies to effect each Reorganization will only be made by a final, effective Registration Statement on Form N-14, which includes a definitive Proxy Statement/Prospectus, after that Registration Statement is declared effective by the Securities and Exchange Commission (the “SEC”). The Registration Statement on Form N-14 has yet to be filed with the SEC. After the Registration Statement on Form N-14 is filed with the SEC, it may be amended or withdrawn and the Proxy Statement/Prospectus will not be distributed to Fund shareholders unless and until the Registration Statement on Form N-14 is declared effective by the SEC.
Fund shareholders are urged to read the Proxy Statement/Prospectus and other documents filed with the SEC carefully and in their entirety when they become available because these documents will contain important information about the proposed Reorganizations. The Proxy Statement/Prospectus will contain information with respect to the investment objectives, risks, charges and expenses of the Touchstone Funds and other important information that Fund shareholders should carefully consider.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
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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 with the U.S. Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-PORT. The Trust’s 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. |
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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.
Table of Contents
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
INANN - 3/21
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Item 2. | Code of Ethics. |
The SunAmerica Income Funds (the “registrant”) has adopted a Code of Ethics applicable to its Principal Executive and Principal Accounting Officers pursuant to Section 406 of the Sarbanes-Oxley Act of 2002 (the “Code”). During the fiscal year ended March 31, 2021, there were no reportable waivers or implicit waivers to a provision of the Code that applies to the registrant’s Principal Executive and Principal Accounting Officers (the “Covered Officers”).
Item 3. | Audit Committee Financial Expert. |
The registrant’s Board of Trustees has determined that Eileen A. Kamerick, a Trustee of the registrant, qualifies as an audit committee financial expert, as defined in Item 3(b) of Form N-CSR. Ms. Kamerick is considered to be “independent” for purposes of Item 3(a)(2) of Form N-CSR.
Item 4. | Principal Accountant Fees and Services. |
(a)—(d) Aggregate fees billed to the registrant for the last two fiscal years for professional services rendered by the registrant’s principal accountant were as follows:
2020 | 2021 | |||||||
(a) Audit Fees | $ | 168,431 | $ | 170,116 | ||||
(b) Audit-Related Fees | $ | 0 | $ | 0 | ||||
(c) Tax Fees | $ | 54,850 | $ | 56,640 | ||||
(d) All Other Fees | $ | 0 | $ | 0 |
Audit Fees include amounts related to the audit of the registrant’s annual financial statements and services normally provided by the principal accountant in connection with statutory and regulatory filings. Tax Fees principally include tax compliance, tax advice, tax planning and preparation of tax returns. Aggregate fees billed to the investment adviser and Adviser Affiliates (as defined below in Item 4(e)) that are required to be pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X for the last two fiscal years for services rendered by the registrant’s principal accountant were as follows:
2020 | 2021 | |||||||
(b) Audit-Related Fees | $ | 0 | $ | 0 | ||||
(c) Tax Fees | $ | 0 | $ | 0 | ||||
(d) All Other Fees | $ | 0 | $ | 162,195 |
(e) | (1) The registrant’s audit committee pre-approves all audit services provided by the registrant’s principal accountant for the registrant and all non-audit services provided by the registrant’s principal accountant for the registrant, its investment adviser and any entity controlling, controlled by, or under common control with the investment adviser (“Adviser Affiliates”) that provides ongoing services to the registrant, if the engagement by the investment adviser or Adviser Affiliates relates directly to the operations and financial reporting of the registrant. The audit committee has not presently established any pre-approval policies and procedures that permit the pre-approval of the above services other than by the full audit committee. Certain de minimis exceptions are allowed for non-audit services in accordance with Rule 2-01(c)(7)(i)(C) of Regulation S-X as set forth in the registrant’s audit committee charter. |
(2) No services included in (b)-(d) above in connection with fees billed to the registrant or the investment adviser or Adviser Affiliates were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. |
(f) | Not applicable. |
(g) | The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant’s principal accountant for non-audit services rendered to the registrant, its investment adviser, and Adviser Affiliates that provides ongoing services to the registrant for 2020 and 2021 were $54,850 and $471,835 respectively. |
(h) | Non-audit services rendered to the registrant’s investment adviser and any Adviser Affiliates that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X were considered by the registrant’s audit committee as to whether they were compatible with maintaining the principal accountant’s independence. |
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 registrant’s most recent fiscal half year that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not applicable.
Item 13. | Exhibits. |
(a) |
(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: June 8, 2021
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ John T. Genoy | |
John T. Genoy | ||
President |
Date: June 8, 2021
By: | /s/ Gregory R. Kingston | |
Gregory R. Kingston | ||
Treasurer |
Date: June 8, 2021