================================================================================
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 811-08727
SunAmerica Senior Floating Rate Fund, Inc.
--------------------------------------------------
(Exact name of registrant as specified in charter)
Harborside Financial Center, 3200 Plaza 5, Jersey City, NJ 07311
----------------------------------------------------------------
(Address of principal executive offices) (Zip code)
John T. Genoy
Senior Vice President
SunAmerica Asset Management Corp.
Harborside Financial Center 3200 Plaza 5
Jersey City, NJ 07311
----------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (201) 324-6414
Date of fiscal year end: December 31
Date of reporting period: June 30, 2010
================================================================================
Item 1. Reports to Stockholders
[GRAPHIC]
SEMI-ANNUAL REPORT 2010
SUNAMERICA
Senior Floating Rate Fund
[LOGO]
TABLE OF CONTENTS
SHAREHOLDERS' LETTER................ 1
EXPENSE EXAMPLE..................... 2
STATEMENT OF ASSETS AND LIABILITIES. 4
STATEMENT OF OPERATIONS............. 5
STATEMENT OF CHANGES IN NET ASSETS.. 6
STATEMENT OF CASH FLOWS............. 7
FINANCIAL HIGHLIGHTS................ 8
PORTFOLIO OF INVESTMENTS............ 9
NOTES TO FINANCIAL STATEMENTS....... 21
JUNE 30, 2010 SEMI-ANNUAL REPORT
SHAREHOLDERS' LETTER -- (unaudited)
Dear Shareholders,
We are pleased to present you with the semi-annual shareholder report for the
SunAmerica Senior Floating Rate Fund for the six-month period ended June 30,
2010.
Even after the market rally of last year, we believe that the valuations of
bank loans remain very attractive, though the second quarter saw a decline in
returns in the bank loan market. The S&P/LSTA Leveraged Loan Index* posted a
3.34% gain for the six-month period, much of that coming from the
outperformance of the lower-quality segment of the market in the first quarter.
Technical factors continue to be extremely positive for the bank loan market.
New-issue activity continues to increase, as volume climbed to $67 billion in
the second quarter, compared with $75 billion for all of 2009. At the same
time, mutual fund flow data showed an increase in demand for this asset class
with $3.4 billion of inflows for 2009. After peaking in November 2009, the bank
loan default rate continued to decline. At the end of June 2010, the trailing
12-month default rate for bank loans by dollar amount was 4.02%, down from
9.61% at the end of 2009.
We value your support and thank you for your continued investment in the Fund.
Sincerely,
THE SUNAMERICA SENIOR FLOATING RATE FUND PORTFOLIO MANAGER
Wellington Management
Jeffrey W. Heuer
- --------
Past performance is no guarantee of future results.
* The S&P/LSTA Leveraged Loan Index is an unmanaged loan market index that
reflects the market-weighted performance of U.S. dollar-denominated
institutional leveraged loan portfolios. Indices are not managed and an
investor cannot invest directly into an index.
The Fund is not a money market fund and its net asset value may fluctuate.
Investments in loans involve certain risks including nonpayment of principal
and interest; collateral impairment; non-diversification and borrower industry
concentration; and lack of an active trading market, in certain cases, which
may impair the Fund's ability to obtain full value for loans sold. The Fund may
invest all or substantially all of its assets in loans or other securities that
are rated below investment grade or in comparable unrated securities. Credit
risks include the possibility of a default on the loan or bankruptcy of the
borrower. The value of these loans is subject to a greater degree of volatility
in response to interest rate fluctuations. 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.
1
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
EXPENSE EXAMPLE -- JUNE 30, 2010 -- (UNAUDITED)
DISCLOSURE OF PORTFOLIO EXPENSES IN SHAREHOLDER REPORTS
As a shareholder of the SunAmerica Senior Floating Rate Fund, Inc. (the
"Fund"), you may incur two types of costs: (1) transaction costs, including
sales charges on purchase payments and 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 Fund 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 January 1, 2010 and
held until June 30, 2010.
ACTUAL EXPENSES
The "Actual" section of the table provides information about actual account
values and actual expenses. You may use the information in these columns,
together with the amount you invested, to estimate the expenses that you paid
over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number in the column under the heading entitled "Expenses Paid During the Six
Months Ended June 30, 2010" to estimate the expenses you paid on your account
during this period. For shareholder accounts in Class A and Class C, the
"Expenses Paid During the Six Months Ended June 30, 2010" column does not
include small account fees that may be charged if your account balance is below
$500 ($250 for retirement plan accounts). In addition, the "Expenses Paid
During the Six Months Ended June 30, 2010" column does not include
administrative fees that may apply to qualified retirement plan accounts. See
the Fund's prospectus, your retirement plan documents 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 June 30, 2010"
column would have been higher and the "Ending Account Value" would have been
lower.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The "Hypothetical" section of the table provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is
not the Fund's actual return. The hypothetical account values and expenses may
not be used to estimate the actual ending account balance or expenses you paid
for the period. You may use this information to compare the ongoing costs of
investing in the Portfolios of other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of other funds. For shareholder accounts in Class A and
Class C, the "Expenses Paid During the Six Months Ended June 30, 2010" column
does not include small account fees that may be charged if your account balance
is below $500 ($250 for retirement plan accounts). In addition, the "Expenses
Paid During the Six Months Ended June 30, 2010" column does not include
administrative fees that may apply to qualified retirement plan accounts and
accounts held through financial institutions. See the Fund's prospectus, your
retirement plan document and/or materials from your financial adviser for full
description of these fees. Had these fees been included, the "Expenses Paid
During the Six Months Ended June 30, 2010" column would have been higher and
the "Ending Account Value" would have been lower.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transaction costs, including sales
charges on purchase payments, contingent deferred sales charges and
administrative fees, if applicable to your account. Please refer to the Fund's
prospectus, qualified retirement plan document and/or materials from your
financial adviser, for more information. Therefore, the "Hypothetical" example
is useful in comparing ongoing costs only and will not help you determine the
relative total costs of owning different funds. In addition, if these
transaction costs and other fees were included, your costs would have been
higher.
2
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
EXPENSE EXAMPLE -- JUNE 30, 2010 -- (UNAUDITED) (CONTINUED)
ACTUAL HYPOTHETICAL
------------------------------------------------- ------------------------------------
ENDING ENDING ACCOUNT
ACCOUNT VALUE EXPENSES PAID VALUE USING
BEGINNING USING ACTUAL DURING THE BEGINNING A HYPOTHETICAL 5%
ACCOUNT VALUE RETURNS AT SIX MONTHS ENDED ACCOUNT VALUE ASSUMED RETURN AT
AT JANUARY 1, 2010 JUNE 30, 2010 JUNE 30, 2010* AT JANUARY 1, 2010 JUNE 30, 2010
------------------ ------------- ---------------- ------------------ -----------------
Senior Floating Rate Fund#
Class A................. $1,000.00 $1,039.59 $7.33 $1,000.00 $1,017.60
Class C................. $1,000.00 $1,039.38 $8.85 $1,000.00 $1,016.12
-----------------
EXPENSE
EXPENSES PAID RATIO
DURING THE AS OF
SIX MONTHS ENDED JUNE 30,
JUNE 30, 2010* 2010*
---------------- --------
Senior Floating Rate Fund#
Class A................. $7.25 1.45%
Class C................. $8.75 1.75%
- --------
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 181 days divided by 365
days. These ratios do not reflect transaction costs, including sales charges
on purchase payments, contingent deferred sales charges and administrative
fees, if applicable to your account. Please refer to your Prospectus, your
qualified retirement plan document and/or materials from your financial
advisor for more information.
# During the stated period, the investment adviser and distributor either
waived a portion of or all of the fees and assumed a portion of or all
expenses for the Fund. As a result, if these fees and expenses had not been
waived, the "Actual/Hypothetical Ending Account Value" would have been lower
and the "Actual/Hypothetical Expenses Paid During the Six Months Ended June
30, 2010" and the "Expense Ratios" would have been higher.
3
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES -- JUNE 30, 2010 -- (UNAUDITED)
ASSETS:
Investments at value (unaffiliated)*............................... $337,905,507
Repurchase agreements (cost approximates value).................... 36,650,000
------------
Total investments................................................ 374,555,507
Receivable for:
Fund shares sold................................................. 1,852,498
Dividends and interest........................................... 1,632,740
Investments sold................................................. 5,159,836
Prepaid expenses and other assets.................................. 6,842
Due from investment adviser for expense reimbursements/fee waivers. 67,193
Due from distributor for fee waivers............................... 70,250
------------
Total assets..................................................... 383,344,866
------------
LIABILITIES:
Payable for:
Fund shares redeemed............................................. 620,792
Investments purchased............................................ 24,751,680
Investment advisory and management fees.......................... 248,865
Distribution and service maintenance fees........................ 157,025
Administration fees.............................................. 58,557
Transfer agent fees and expenses................................. 73,493
Directors' fees and expenses..................................... 246
Other accrued expenses........................................... 212,264
Dividends payable.................................................. 420,797
Due to custodian................................................... 228
Commitments (Note 10).............................................. --
------------
Total liabilities................................................ 26,543,947
------------
Net Assets...................................................... $356,800,919
============
NET ASSETS REPRESENTED BY:
Common stock, $.01 par value....................................... $ 447,095
Additional paid-in capital......................................... 436,670,836
------------
437,117,931
Accumulated undistributed net investment income (loss)............. (63,594)
Accumulated undistributed net realized gain (loss) on investments.. (59,726,138)
Unrealized appreciation (depreciation) on investments.............. (20,527,280)
------------
Net Assets...................................................... $356,800,919
============
CLASS A:
Net assets......................................................... $197,167,003
Shares outstanding................................................. 24,698,509
Net asset value and redemption price per share..................... $ 7.98
Maximum sales charge (3.75% of offering price)..................... 0.31
------------
Maximum offering price to public................................... $ 8.29
============
CLASS C:
Net assets......................................................... $159,633,916
Shares outstanding................................................. 20,010,988
Net asset value, offering and redemption price per share
(excluding any applicable contingent deferred sales charges)...... $ 7.98
============
*COST
Investment securities (unaffiliated)............................. $358,432,787
============
See Notes to Financial Statements
4
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS ENDED JUNE 30, 2010 --
(UNAUDITED)
INVESTMENT INCOME:
Interest (unaffiliated)................................................................ $6,485,641
Dividends (unaffiliated)............................................................... 31,664
Facility and other fee income (Note 2)................................................. 1,818,365
----------
Total investment income............................................................. 8,335,670
----------
EXPENSES:
Investment advisory and management fees................................................ 1,278,752
Administration fees.................................................................... 300,883
Distribution and service maintenance fees:
Class A.............................................................................. 272,428
Class C.............................................................................. 544,536
Transfer agent fees and expenses:
Class A.............................................................................. 178,528
Class C.............................................................................. 166,047
Registration fees:
Class A.............................................................................. 23,386
Class C.............................................................................. 18,365
Accounting service fees................................................................ 34,242
Custodian and accounting fees.......................................................... 60,255
Reports to shareholders................................................................ 49,014
Audit and tax fees..................................................................... 49,234
Legal fees............................................................................. 18,618
Directors' fees and expenses........................................................... 23,600
Interest expense....................................................................... 2,070
Other expenses......................................................................... 78,295
----------
Total expenses before fee waivers, expense reimbursements and custody credits....... 3,098,253
Fees waived and expenses reimbursed by investment adviser and distributor (Note 5).. (698,998)
Custody credits earned on cash balances............................................. (40)
----------
Net expenses........................................................................ 2,399,215
----------
Net investment income (loss)........................................................... 5,936,455
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments (unaffiliated)................................. (100,921)
Change in unrealized appreciation (depreciation) on investments (unaffiliated)......... 2,680,421
----------
Net realized and unrealized gain (loss) on investments................................. 2,579,500
----------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............................ $8,515,955
==========
See Notes to Financial Statements
5
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
JUNE 30, 2010 DECEMBER 31,
(UNAUDITED) 2009
------------- -------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income (loss)......................................... $ 5,936,455 $ 8,691,651
Net realized gain (loss) on investments (unaffiliated)............... (100,921) (20,970,390)
Net unrealized gain (loss) on investments (unaffiliated)............. 2,680,421 92,014,874
------------ -------------
Increase (decrease) in net assets resulting from operations........... 8,515,955 79,736,135
------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Class A)...................................... (3,085,053) (2,992,553)
Net investment income (Class B)*..................................... -- (193,048)
Net investment income (Class C)...................................... (2,685,913) (5,360,408)
Net investment income (Class D)*..................................... -- (132,560)
Net investment income (Class Q)*..................................... -- (181,742)
------------ -------------
Total distributions to shareholders................................... (5,770,966) (8,860,311)
------------ -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS (NOTE 3)................................................ 120,573,516 35,187,841
------------ -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS............................... 123,318,505 106,063,665
------------ -------------
NET ASSETS:
Beginning of period................................................... 233,482,414 127,418,749
------------ -------------
End of period+........................................................ $356,800,919 $ 233,482,414
============ =============
- --------
+Includes accumulated undistributed net investment income (loss)...... $ (63,594) $ (229,083)
============ =============
* See Note 1
See Notes to Financial Statements
6
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
STATEMENT OF CASH FLOWS -- FOR THE SIX MONTHS ENDED JUNE 30, 2010 --
(UNAUDITED)
INCREASE (DECREASE) IN CASH
CASH FLOWS FROM OPERATING ACTIVITIES:
Net increase in net assets from operations.................................................................... $ 8,515,955
ADJUSTMENTS TO RECONCILE NET INCREASE IN NET ASSETS FROM OPERATIONS TO NET CASH USED IN OPERATING ACTIVITIES:
Purchase of loans........................................................................................... (174,521,530)
Proceeds from loans sold.................................................................................... 39,891,077
Loan principal paydowns..................................................................................... 32,526,827
Net purchases of short-term securities...................................................................... (26,536,251)
Accretion of facility fee income............................................................................ (1,346,953)
Increase in receivable for dividends and interest........................................................... (277,513)
Decrease in receivable for investments sold................................................................. 1,880,756
Decrease in amount due from investment adviser for expense reimbursements/fee waivers....................... (37,036)
Increase in amount due from distributor for fee waivers..................................................... 3,246
Increase in prepaid expenses and other assets............................................................... (4,155)
Increase in payable for investments purchased............................................................... 6,755,525
Increase in payable for investment advisory and management fees............................................. 87,016
Increase in payable for distribution and service maintenance fees........................................... 47,002
Increase in payable for administration fees................................................................. 20,475
Increase in other accrued expenses.......................................................................... 45,865
Unrealized appreciation on investments...................................................................... (2,680,421)
Net realized loss from investments.......................................................................... 100,921
-------------
Net cash used in operating activities......................................................................... $(115,529,194)
-------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from shares sold..................................................................................... 171,952,898
Payment on shares redeemed.................................................................................... (54,411,391)
Cash dividends paid........................................................................................... (2,186,624)
-------------
Net cash provided by financing activities..................................................................... $ 115,354,883
-------------
Net decrease in cash.......................................................................................... (174,311)
Cash balance at beginning of period........................................................................... 174,083
-------------
Cash balance at end of period................................................................................. $ (228)
=============
Supplemental disclosure of cash flow information:
Noncash financing activities not included herein consist of reinvestment of
dividends and distributions of $3,479,556.
See Notes to Financial Statements
7
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
FINANCIAL HIGHLIGHTS
NET GAIN
(LOSS) ON RATIO OF
INVESTMENTS DIVIDENDS NET NET EXPENSES
NET ASSET (BOTH DIVIDENDS FROM NET ASSET ASSETS, TO
VALUE, NET REALIZED TOTAL FROM FROM NET REALIZED TOTAL VALUE, END OF AVERAGE
PERIOD BEGINNING INVESTMENT AND INVESTMENT INVESTMENT GAINS ON DISTRI- END OF TOTAL PERIOD NET
ENDED OF PERIOD INCOME(1) UNREALIZED) OPERATIONS INCOME INVESTMENTS BUTIONS PERIOD RETURN(2) (000'S) ASSETS(3)
- ----------- --------- ---------- ----------- ---------- ---------- ----------- ------- ------ --------- -------- ---------
CLASS A
- - - - - - - -------
10/04/06*-
12/31/06 $9.39 $0.38 $(0.22) $ 0.16 $(0.15) $ -- $(0.15) $9.40 1.75% $ 14,165 1.45%(4)
12/31/07 9.40 0.56 (0.48) 0.08 (0.60) -- (0.60) 8.88 0.84 89,077 1.45
12/31/08 8.88 0.49 (3.74) (3.25) (0.49) -- (0.49) 5.14 (38.20) 25,546 1.45
12/31/09 5.14 0.32 2.72 3.04 (0.35) -- (0.35) 7.83 60.63 103,932 1.45
06/30/10(5) 7.83 0.15 0.16 0.31 (0.16) -- (0.16) 7.98 3.96 197,167 1.45(4)
CLASS C
- - - - - - - -------
12/31/05 $9.41 $0.42 $(0.03) $ 0.39 $(0.41) $ -- $(0.41) $9.39 4.24% $154,584 1.75%
12/31/06 9.39 0.59 0.01 0.60 (0.59) -- (0.59) 9.40 6.54 176,743 1.75
12/31/07 9.40 0.57 (0.52) 0.05 (0.58) -- (0.58) 8.87 0.43 235,957 1.75
12/31/08 8.87 0.47 (3.74) (3.27) (0.46) -- (0.46) 5.14 (38.31) 86,126 1.75
12/31/09 5.14 0.32 2.69 3.01 (0.33) -- (0.33) 7.82 59.94 129,550 1.75
06/30/10(5) 7.82 0.15 0.16 0.31 (0.15) -- (0.15) 7.98 3.94 159,634 1.75(4)
RATIO OF
NET
INVESTMENT
INCOME TO
PERIOD AVERAGE PORTFOLIO
ENDED NET ASSETS(3) TURNOVER
- ----------- ------------- ---------
- -
10/04/06*-
12/31/06 6.78%(4) 61%
12/31/07 6.58 91
12/31/08 6.05 32
12/31/09 4.94 74
06/30/10(5) 4.06(4) 26
- -
12/31/05 4.36% 57%
12/31/06 6.26 61
12/31/07 6.24 91
12/31/08 5.89 32
12/31/09 4.88 74
06/30/10(5) 3.82(4) 26
- --------
* Inception date of class.
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load but does
include expense reimbursements.
(3)Net of the following expense reimbursements, if applicable (based on average
daily net assets) (See Note 5):
12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 06/30/10(4)(5)
-------- -------- -------- -------- -------- --------------
Class A. -- 1.81%(4) 0.59% 0.65% 0.55% 0.42%
Class C. 0.57 0.64 0.65 0.73 0.66 0.51
(4)Annualized
(5)Unaudited
See Notes to Financial Statements
8
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO PROFILE -- JUNE 30, 2010 -- (UNAUDITED)
INDUSTRY ALLOCATION*
Media....................................................... 16.6%
Repurchase Agreements....................................... 10.3
Hotels, Restaurants & Leisure............................... 5.7
Commercial Services & Supplies.............................. 4.9
Chemicals................................................... 4.8
IT Services................................................. 3.8
Software.................................................... 3.7
Diversified Financial Services.............................. 3.4
Insurance................................................... 3.0
Containers & Packaging...................................... 2.9
Auto Components............................................. 2.7
Health Care Providers & Services............................ 2.2
Specialty Retail............................................ 2.2
Industrial Conglomerates.................................... 2.1
Semiconductors & Semiconductor Equipment.................... 2.0
Household Products.......................................... 1.9
Diversified Telecommunication Services...................... 1.7
Energy Equipment & Services................................. 1.6
Food & Staples Retailing.................................... 1.6
Registered Investment Companies............................. 1.6
Capital Markets............................................. 1.5
Machinery................................................... 1.4
Oil, Gas & Consumable Fuels................................. 1.4
Road & Rail................................................. 1.4
Food Products............................................... 1.3
Multiline Retail............................................ 1.3
Airlines.................................................... 1.2
Distributors................................................ 1.1
Multi Utilities............................................. 1.1
Aerospace & Defense......................................... 1.0
Building Products........................................... 1.0
Communications Equipment.................................... 1.0
Internet & Catalog Retail................................... 1.0
Diversified Consumer Services............................... 0.9
Health Care Equipment & Supplies............................ 0.9
Industrial Power Producers & Energy Traders................. 0.9
Automobiles................................................. 0.8
Health Care Technology...................................... 0.8
Textiles, Apparel & Luxury Goods............................ 0.8
Wireless Telecommunication Services......................... 0.8
Real Estate Management & Development........................ 0.7
Leisure Equipment & Products................................ 0.5
Marine...................................................... 0.5
Pharmaceuticals............................................. 0.5
Electric Utilities.......................................... 0.4
Personal Products........................................... 0.4
Internet Software & Services................................ 0.3
Metals & Mining............................................. 0.3
Professional Services....................................... 0.3
Transportation Infrastructure............................... 0.3
Electrical Equipment........................................ 0.2
Electronic Equipment, Instruments & Components.............. 0.1
Gas Utilities............................................... 0.1
Paper & Forest Products..................................... 0.1
-----
105.0%
=====
CREDIT QUALITY+#
BBB......................................................... 0.8%
BBB-........................................................ 1.3
BB+......................................................... 3.2
BB.......................................................... 10.0
BB-......................................................... 20.1
B+.......................................................... 19.7
B........................................................... 11.1
B-.......................................................... 13.0
CCC+........................................................ 4.4
CCC......................................................... 1.3
CCC-........................................................ 1.6
CC.......................................................... 0.5
D........................................................... 1.2
Not Rated@.................................................. 11.8
-----
100.0%
=====
- --------
* Calculated as a percentage of net assets.
@ Represents debt issues that either have no rating, or the rating is
unavailable from the data source.
+ Source: Standard and Poor's
# Calculated as a percentage of total debt issues, excluding short-term
securities.
9
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2010 -- (UNAUDITED)
RATINGS/(1)/
(UNAUDITED)
------------
INTEREST MATURITY PRINCIPAL VALUE
INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------------------------------------
LOANS(3)(4) -- 91.6%
AEROSPACE & DEFENSE -- 1.0%
TASC, Inc............................ BTL-A Ba2 BB 5.50% 12/18/14 $ 364,167 $ 364,621
TASC, Inc............................ BTL-B Ba2 BB 5.75 12/18/14 762,833 764,739
Wesco International, Inc............. 2nd Lien B3 B- 6.10 03/29/14 800,000 761,333
Wyle Laboratories, Inc............... BTL-B Ba2 BB 6.00 03/15/16 1,197,000 1,199,992
------------
3,090,685
------------
AIRLINES -- 1.2%
Continental Airlines, Inc............ BTL-A1 NR NR 3.91 06/01/11 285,714 282,142
Continental Airlines, Inc............ BTL-A2 NR NR 3.91 06/01/11 714,286 700,669
Delta Air Lines, Inc................. 2nd Lien B2 B 3.55 04/30/14 970,000 869,362
United Airlines, Inc................. Tranche B B3 B+ 2.31-2.38 02/01/14 1,384,444 1,219,816
US Airways Group, Inc................ BTL B3 B+ 2.81 03/23/14 1,440,000 1,150,199
------------
4,222,188
------------
AUTO COMPONENTS -- 2.7%
Allison Transmission, Inc............ BTL-B B2 B 3.05-3.11 08/07/14 2,378,131 2,172,274
Federal Mogul Corp................... BTL-B Ba3 B+ 2.29 06/27/15 1,638,599 1,431,725
Federal Mogul Corp................... BTL-C Ba3 B+ 2.29 06/27/15 836,020 730,472
FleetPride Corp...................... BTL-B Ba3 BB- 3.03 06/28/13 226,563 201,640
Tenneco, Inc......................... BTL-B Ba2 BB- 5.09 06/03/16 1,000,000 998,750
United Components, Inc............... Tranche D B1 B+ 2.37 06/25/12 1,888,679 1,798,966
Veyance Technologies, Inc............ 1st Lien NR NR 2.85 07/31/14 2,552,812 2,152,021
Veyance Technologies, Inc............ Delayed Draw NR NR 2.85 07/31/14 365,625 308,222
------------
9,794,070
------------
AUTOMOBILES -- 0.8%
Ford Motor Co........................ BTL-B Ba1 B- 3.31-3.35 12/15/13 2,957,868 2,801,039
------------
BUILDING PRODUCTS -- 1.0%
Brand Services, Inc.................. BTL B1 B 2.56-2.81 02/07/14 1,834,081 1,639,210
Brand Services, Inc.................. BTL-B2 NR NR 3.56-3.81 02/07/14 921,763 853,783
Building Materials Holding Corp...... BTL Ba3 BBB- 3.13 02/22/14 965,563 931,527
PGT Industries, Inc.................. BTL-A2 NR NR 6.75 02/14/12 193,902 180,329
------------
3,604,849
------------
CAPITAL MARKETS -- 1.5%
McKechnie Aerospace.................. 2nd Lien NR NR 5.36 05/11/15 999,809 917,325
Nuveen Investments, Inc.............. BTL-B B3 B 3.33-3.53 11/13/14 3,000,000 2,527,968
Tensar Earth Technologies, Inc....... BTL-B B3 CCC+ 3.84 10/31/12 794,587 705,196
TPF Generation Holdings LLC.......... 2nd Lien B3 B+ 4.78 12/15/14 1,500,000 1,345,500
------------
5,495,989
------------
CHEMICALS -- 4.4%
AZ Chemicals, Inc.................... 1st Lien B1 BB- 2.54 02/28/13 839,536 799,658
Brenntag AG.......................... BTL NR B+ 4.07-4.14 01/18/14 28,962 28,673
Brenntag AG.......................... BTL-B2 NR B+ 4.07-4.08 01/18/14 166,444 164,780
Chemtura Corp........................ DIP NR NR 6.00 02/11/11 1,730,000 1,736,488
Cognis GmbH.......................... BTL-C B2 B 2.54 09/15/13 1,000,000 986,667
Cristal Inorganic Chemicals US, Inc.. 1st Lien B1 B 2.78 05/15/14 885,694 816,499
Ferro Corp........................... BTL NR NR 6.53 06/06/12 510,531 509,893
Hexion Specialty Chemicals, Inc...... BTL-C1 B1 CCC+ 4.06 05/05/15 487,981 443,453
Hexion Specialty Chemicals, Inc...... BTL-C2 NR NR 4.31 05/05/15 215,593 195,920
Huntsman International LLC........... BTL-B Ba2 B+ 2.08-2.18 04/21/14 2,434,163 2,262,902
Huntsman International LLC........... BTL-C Ba2 B+ 2.60-2.68 06/23/16 264,918 247,888
Ineos US Finance LLC................. BTL-B2 B2 B 7.50 12/16/13 1,414,437 1,357,860
Ineos US Finance LLC................. BTL-C2 B2 B 8.00 12/16/14 1,606,497 1,544,245
LyondellBasell Industries............ BTL Ba3 BB 5.50 04/08/16 2,085,000 2,097,360
Momentive Performance................ BTL-B1 B1 CCC+ 2.63 12/04/13 1,987,160 1,778,508
Solutia, Inc......................... BTL-B Ba2 BB- 4.75 03/17/17 832,913 833,301
------------
15,804,095
------------
10
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2010 -- (UNAUDITED) (CONTINUED)
RATINGS/(1)/
(UNAUDITED)
------------
INTEREST MATURITY PRINCIPAL VALUE
INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT (NOTE 2)
- -------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 4.9%
ATI Schools.................................. BTL-B Ba3 B 8.25% 12/31/14 $ 995,000 $ 972,613
Audio Visual Services Group, Inc............. 2nd Lien NR NR 6.04 08/28/14 1,077,040 395,812
AWAS......................................... BTL-B Ba2 BBB- 7.75 05/12/16 2,540,000 2,519,363
Entegra Power Group LLC...................... 2nd Lien B3 B 2.75 04/19/14 437,444 402,886
KAR Holding, Inc............................. BTL-B Ba3 B+ 3.10 10/19/13 1,000,000 944,375
Key Safety Systems, Inc...................... 1st Lien NR BB 2.60 03/08/14 1,450,924 1,246,586
New Customer Services Cos., Inc.............. BTL B3 B- 9.50-9.75 03/23/17 1,750,000 1,725,938
New Customer Services Cos., Inc.............. BTL-B Ba3 B+ 6.00 03/23/16 2,978,571 2,972,367
Reynolds Group Holdings, Inc................. BTL-B B1 BB- 6.25 05/05/16 1,202,438 1,197,027
Reynolds Group Holdings, Inc................. BTL B1 BB- 5.75 04/20/16 3,345,000 3,328,275
ValleyCrest Cos.............................. 1st Lien NR NR 2.30 10/04/13 950,237 890,847
World Color (USA) Corp....................... BTL Ba3 B+ 9.00 07/21/12 994,583 1,003,286
------------
17,599,375
------------
COMMUNICATIONS EQUIPMENT -- 1.0%
Aeroflex, Inc................................ BTL-B1 Ba3 BB- 3.69 08/15/14 1,975,336 1,851,877
Sorenson Communications, Inc................. BTL-C NR NR 6.00 08/16/13 1,994,224 1,779,845
------------
3,631,722
------------
CONTAINERS & PACKAGING -- 2.9%
Anchor Glass Container Corp.................. 1st Lien B1 BB- 6.00 02/03/16 1,722,447 1,711,682
Anchor Glass Container Corp.................. 2nd Lien B3 B- 10.00 09/02/16 560,000 552,650
Berry Plastics Corp.......................... BTL-C B1 B 2.35 04/03/15 1,989,770 1,763,434
BWAY Corp.................................... BTL-B Ba3 B+ 5.50 03/28/17 2,742,857 2,742,857
BWAY Corp.................................... BTL-C Ba3 B+ 5.50 03/28/17 257,143 257,143
Consolidated Container Co.................... 2nd Lien Caa1 CCC 5.88 09/28/14 1,250,000 1,084,375
Graham Packaging Co. LP...................... BTL-B B1 B+ 2.69-2.81 10/07/11 78,102 77,467
Graham Packaging Co. LP...................... BTL-C B1 B+ 6.75 04/05/14 738,042 742,079
Smurfit-Stone Container Corp................. BTL B2 BB+ 6.75 02/22/16 1,475,000 1,475,000
------------
10,406,687
------------
DISTRIBUTORS -- 1.1%
CDW Corp..................................... BTL-B B2 B- 4.35 10/12/14 4,324,413 3,794,672
------------
DIVERSIFIED CONSUMER SERVICES -- 0.9%
Vertrue, Inc................................. BTL Ba3 B 3.54 08/18/14 2,445,907 2,054,562
Vertrue, Inc................................. 2nd Lien Caa1 CCC+ 7.54 08/14/15 1,490,000 1,229,250
------------
3,283,812
------------
DIVERSIFIED FINANCIAL SERVICES -- 3.4%
BLB Management Services, Inc.(5)............. 1st Lien NR B+ 4.75 08/23/12 244,571 176,091
BLB Management Services, Inc.+(5)(7)......... 2nd Lien NR B- 6.50 08/23/12 250,000 10,000
Bridge Information Systems, Inc.+@#(5)(6).... BTL-B NR NR 6.25 05/29/05 356,779 0
BRSP LLC..................................... BTL B2 NR 7.50 06/17/14 1,959,587 1,949,789
CIT Group, Inc............................... BTL-A B1 BB 9.50 01/20/12 2,977,111 3,048,934
Fox Acquisition LLC.......................... BTL-B B2 B 7.50 07/14/15 971,541 928,623
LPL Holdings, Inc............................ Tranche D Ba3 B+ 2.10-2.28 06/28/13 468,903 447,802
LPL Holdings, Inc............................ BTL Ba3 B+ 4.25 06/25/15 1,475,972 1,424,313
National Processing Co. LLC.................. 1st Lien B2 B+ 7.00 09/29/12 1,193,706 1,169,832
National Processing Co. LLC.................. 2nd Lien Caa2 CCC+ 10.75 09/29/14 500,000 452,917
Pinnacle Foods Group, Inc.................... BTL-B B2 B 2.85 04/02/14 958,955 900,903
Securus Technologies, Inc.................... BTL-B B1 B 8.00 10/31/15 907,725 914,533
Universal City Apartment Holding............. BTL-B Ba2 B+ 5.50 10/20/14 865,650 867,814
------------
12,291,551
------------
DIVERSIFIED TELECOMMUNICATION SERVICES -- 1.7%
Cincinnati Bell, Inc......................... BTL Ba3 BB 6.50 06/11/17 2,314,200 2,252,006
Telcordia Technologies, Inc.................. BTL-B B1 B+ 6.75 04/13/16 1,125,000 1,107,422
U.S. TelePacific Corp........................ BTL B2 CCC+ 9.25 08/17/15 997,500 998,436
West Corp.................................... BTL-B2 B1 BB- 2.68-2.81 10/24/13 1,976,917 1,841,004
------------
6,198,868
------------
11
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2010 -- (UNAUDITED) (CONTINUED)
RATINGS/(1)/
(UNAUDITED)
------------
INTEREST MATURITY PRINCIPAL VALUE
INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT (NOTE 2)
- ------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 0.4%
KGen Power Corp...................................... LOC B1 BB- 0.40% 02/08/14 $ 375,000 $ 348,750
KGen Power Corp...................................... BTL B1 BB- 2.13 02/08/14 603,125 560,906
La Paloma Generating Co.............................. Delayed Draw B3 CCC+ 2.04 08/16/12 14,384 12,505
La Paloma Generating Co.............................. LOC B3 CCC+ 2.10 08/16/12 32,787 28,504
La Paloma Generating Co.............................. 1st Lien B3 CCC+ 2.04 08/16/12 180,609 157,017
La Paloma Generating Co.............................. 2nd Lien Caa2 CC 3.79 08/16/13 250,000 194,688
Mach Gen LLC......................................... LOC Ba3 BB- 2.54 02/22/13 88,760 81,955
------------
1,384,325
------------
ELECTRICAL EQUIPMENT -- 0.2%
NSG Holdings II LLC.................................. LOC Ba2 BB 2.04 06/15/14 102,041 97,959
NSG Holdings II LLC.................................. BTL Ba2 BB 2.04 06/15/14 474,308 455,336
------------
553,295
------------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 0.1%
X-Rite, Inc.......................................... 1st Lien B2 B+ 6.75-7.50 10/24/12 523,974 504,325
------------
ENERGY EQUIPMENT & SERVICES -- 1.6%
Aquilex Holdings LLC................................. BTL-B Ba2 BB- 5.50 04/01/16 798,000 793,013
Big West Oil LLC(5).................................. Delayed Draw NR D 4.50 05/15/14 1,092,342 1,082,784
Big West Oil LLC(5).................................. BTL-B NR NR 4.50 05/15/14 868,908 861,305
Big West Oil LLC(5).................................. BTL B2 NR 12.00 04/30/15 635,000 638,440
MEG Energy Corp...................................... BTL-D B2 BB+ 6.00 04/03/16 2,238,112 2,184,259
------------
5,559,801
------------
FOOD & STAPLES RETAILING -- 1.6%
Rite Aid Corp........................................ BTL-B2 B3 B+ 2.10-2.11 06/04/14 2,981,910 2,814,178
Rite Aid Corp........................................ BTL-4 B3 B+ 9.50 06/10/15 996,502 1,014,252
Smart & Final, Inc................................... Delayed Draw NR B 3.35-3.51 05/31/14 402,010 381,910
Smart & Final, Inc................................... 1st Lien B3 B 3.34-3.51 05/31/14 567,915 539,519
Smart & Final, Inc................................... 2nd Lien Caa2 CCC 7.28 11/30/14 1,082,061 984,675
------------
5,734,534
------------
FOOD PRODUCTS -- 1.3%
Dole Food Co., Inc................................... BTL-B Ba2 BB- 5.00-5.50 03/03/17 326,711 326,768
Dole Food Co., Inc................................... BTL-C Ba2 BB- 5.00-5.50 03/03/17 811,467 811,609
Fresh Start Bakeries, Inc............................ 2nd Lien NR NR 8.00 03/29/14 250,000 228,750
Michael Foods, Inc................................... BTL-B B1 BB- 6.25 06/29/16 1,970,000 1,975,232
Pierre Foods, Inc.................................... BTL-B B2 BB- 7.00 03/02/16 1,283,750 1,286,414
------------
4,628,773
------------
GAS UTILITIES -- 0.1%
Targa Resources, Inc................................. BTL-B B1 B+ 5.75 07/06/16 322,486 322,486
------------
HEALTH CARE EQUIPMENT & SUPPLIES -- 0.9%
Butler Animal Health Supply LLC...................... BTL-B B1 BB- 5.50 12/31/15 686,550 684,834
Gambro AB............................................ BTL-B NR NR 2.96 06/05/14 430,973 387,157
Gambro AB............................................ BTL-C NR NR 3.46 06/05/15 430,973 387,157
PTS Pharmaceuticals.................................. BTL-B Ba3 BB- 2.60 04/10/14 1,940,000 1,749,638
------------
3,208,786
------------
HEALTH CARE PROVIDERS & SERVICES -- 2.2%
Alliance HealthCare Services, Inc.................... BTL-B Ba3 BB- 5.50 06/01/16 333,325 328,186
Broadlane, Inc....................................... BTL B2 BB- 6.00 02/04/15 1,496,250 1,473,806
Community Health Systems, Inc........................ Delayed Draw Ba3 BB 2.79 07/25/14 126,254 118,064
Community Health Systems, Inc........................ BTL Ba3 BB 2.79 07/25/14 2,460,818 2,301,173
HCA, Inc............................................. BTL-B Ba3 BB 2.78 11/17/13 1,000,000 957,734
Multiplan, Inc....................................... BTL B1 NR 6.00 03/09/13 1,001,111 999,026
Prime Healthcare Services, Inc....................... BTL-B B1 NR 7.50 04/28/15 997,500 967,575
RehabCare Group, Inc................................. BTL-B Ba3 BB 6.00 11/24/15 481,525 479,870
Team Health, Inc..................................... BTL-B B1 BB 2.48-2.54 11/23/12 238,750 226,514
------------
7,851,948
------------
12
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2010 -- (UNAUDITED) (CONTINUED)
RATINGS/(1)/
(UNAUDITED)
------------
INTEREST MATURITY PRINCIPAL VALUE
INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT (NOTE 2)
- -----------------------------------------------------------------------------------------------------------------------------
HEALTH CARE TECHNOLOGY -- 0.8%
IMS Health, Inc................................... BTL-B Ba3 BB 5.25% 02/26/16 $ 2,698,404 $ 2,684,631
------------
HOTELS, RESTAURANTS & LEISURE -- 5.7%
24 Hour Fitness Worldwide, Inc.................... BTL-B Ba2 B+ 6.75 04/22/16 2,750,000 2,554,063
CCM Merger, Inc................................... BTL-B B3 BB- 8.50 07/21/12 2,736,882 2,694,688
Fairmont Hotels and Resorts, Inc.................. BTL-B NR NR 6.50 05/11/11 306,739 279,132
Gateway Casinos & Entertainment, Inc.+(7)......... Delayed Draw Caa3 D 2.79 09/30/14 497,500 471,796
Gateway Casinos & Entertainment, Inc.+(7)......... 1st Lien Caa3 D 2.79 09/30/14 2,456,250 2,329,343
Golden Nugget, Inc................................ 1st Lien Caa3 CC 3.35 06/30/14 1,264,631 1,020,795
Golden Nugget, Inc................................ Delayed Draw Caa3 CC 3.35-3.40 06/30/14 719,768 580,988
Green Valley Ranch Gaming LLC+(7)................. 2nd Lien Ca NR 3.51 08/06/14 1,000,000 55,000
Harrah's Operating Co., Inc....................... BTL-B2 Caa1 B 3.32 01/28/15 2,000,000 1,667,812
Isle of Capri Casinos, Inc........................ BTL B1 B+ 5.00 11/25/13 1,094,745 1,028,513
Isle of Capri Casinos, Inc........................ Delayed Draw A B1 B+ 5.00 11/25/13 330,122 310,150
Isle of Capri Casinos, Inc........................ Delayed Draw B B1 B+ 5.00 11/25/13 437,898 411,405
Las Vegas Sands, Inc.............................. BTL B3 B- 2.10 05/23/14 2,910,000 2,579,796
NPC International, Inc............................ BTL Ba3 B+ 2.09-2.29 09/29/13 1,295,962 1,242,504
Quizno's LLC...................................... 1st Lien NR NR 5.13 05/05/13 2,012,778 1,693,249
Travelport, Inc................................... Delayed Draw Ba3 B 2.79 08/23/13 260,236 244,256
Wendy's/Arby's Restaurants LLC.................... BTL-B Ba2 BB 5.00 05/24/17 1,000,000 1,000,000
------------
20,163,490
------------
HOUSEHOLD PRODUCTS -- 1.9%
American Achievement Corp......................... BTL-B B1 B+ 6.25-6.50 03/25/11 151,858 144,265
Diversey, Inc..................................... BTL-B Ba2 BB- 5.50 11/24/15 1,144,250 1,138,529
Huish Detergents, Inc............................. 1st Lien Ba2 BB 2.10 04/26/14 1,940,000 1,854,640
KIK Custom Products............................... CND TL NR NR 2.57 05/31/14 352,542 293,932
KIK Custom Products............................... BTL B3 CCC+ 2.57 05/24/14 2,056,494 1,714,602
Scotsman Industries, Inc.......................... BTL-B B1 B+ 5.75 04/30/15 1,500,000 1,492,500
------------
6,638,468
------------
INDUSTRIAL CONGLOMERATES -- 2.1%
Dresser, Inc...................................... 2nd Lien B3 B- 6.20 05/04/15 3,000,000 2,793,000
GenTek, Inc....................................... BTL B1 B+ 7.00 10/29/14 1,046,034 1,047,864
Harland Clarke Holdings Corp...................... BTL-B B1 B+ 2.85-3.03 06/30/14 2,977,021 2,572,643
Sequa Corp........................................ BTL-B B2 B- 3.55-3.79 12/03/14 1,000,000 908,125
------------
7,321,632
------------
INDUSTRIAL POWER PRODUCERS & ENERGY TRADERS -- 0.9%
Calpine Corp...................................... BTL B1 B+ 3.42 03/29/14 524,014 480,710
New Development Holdings LLC...................... BTL-B Ba3 BB- 7.00 06/15/17 2,700,000 2,676,858
------------
3,157,568
------------
INSURANCE -- 3.0%
Alliant Holdings, Inc............................. BTL-B B2 B 3.29 10/23/14 956,400 875,106
Amwins Group, Inc................................. 1st Lien B2 B- 3.04 06/08/13 1,898,650 1,758,625
Asurion Corp...................................... BTL-B B1 B- 3.35-3.42 07/07/14 4,962,500 4,710,832
Hub International Holdings, Inc................... BTL B2 B 3.03 06/13/14 2,377,451 2,127,819
Hub International Holdings, Inc................... Delayed Draw B2 B 3.03 06/13/14 534,402 478,290
USI Holdings Corp................................. BTL-B B2 B- 3.29 05/04/14 972,431 885,520
------------
10,836,192
------------
INTERNET & CATALOG RETAIL -- 1.0%
Affinion Group, Inc............................... BTL-B Ba2 BB- 5.00 10/09/16 1,700,738 1,619,422
SkillSoft Corp.................................... BTL Ba3 BB 6.50 05/26/17 2,000,000 1,996,876
------------
3,616,298
------------
INTERNET SOFTWARE & SERVICES -- 0.3%
Skype Technologies SA............................. BTL B1 B+ 7.00 02/23/15 1,234,375 1,244,147
------------
13
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2010 -- (UNAUDITED) (CONTINUED)
RATINGS/(1)/
(UNAUDITED)
------------
INTEREST MATURITY PRINCIPAL VALUE
INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------------------------------------
IT SERVICES -- 3.8%
DynCorp International, Inc........... BTL-B Ba1 BB 6.25% 04/11/16 $ 2,000,000 $ 1,960,018
First Data Corp...................... BTL-B1 B1 B+ 3.10 09/24/14 2,596,662 2,190,211
First Data Corp...................... BTL-B2 B1 B+ 3.10 09/24/14 2,488,527 2,102,183
First Data Corp...................... BTL-B3 B1 B+ 3.10 09/24/14 972,500 819,602
iPayment, Inc........................ BTL-B B1 B- 2.35-2.53 05/10/13 1,715,730 1,576,327
Sabre Holdings Corp.................. BTL-B B1 B 2.34-2.35 09/30/14 1,430,468 1,274,706
Sungard Data Systems, Inc............ BTL-B Ba3 BB 4.00-4.06 02/28/16 953,457 912,595
TransFirst Holdings, Inc............. BTL-B B2 B 3.10 06/15/14 2,914,862 2,678,030
------------
13,513,672
------------
LEISURE EQUIPMENT & PRODUCTS -- 0.5%
SRAM LLC............................. BTL-B Ba3 BB- 5.00-5.75 04/30/15 1,965,517 1,955,690
------------
MACHINERY -- 1.4%
Accuride Corp........................ BTL-B NR NR 9.25 06/30/13 1,071,364 1,072,033
Bucyrus International, Inc........... BTL-C Ba2 BB 4.50 02/19/16 1,481,350 1,480,732
Gleason Corp......................... BTL-B NR NR 2.06-2.31 06/23/13 974,912 901,794
Manitowoc Co., Inc................... BTL-B B1 BB 7.50 11/07/14 694,309 693,923
NACCO Materials Handling Group, Inc.. BTL NR NR 2.10-2.37 03/21/13 964,824 839,397
------------
4,987,879
------------
MARINE -- 0.5%
Dockwise Transport BV................ BTL-B NR NR 2.28 04/01/15 229,538 210,601
Dockwise Transport BV................ BTL-B2 NR NR 2.28 04/01/15 469,635 430,890
Dockwise Transport BV................ BTL-C NR NR 2.92 04/01/16 192,401 176,528
Dockwise Transport BV................ BTL-C2 NR NR 3.16 04/01/16 469,635 430,890
Dockwise Transport BV................ BTL-D NR NR 5.03 07/12/16 241,913 211,270
Dockwise Transport BV................ BTL-D2 NR NR 4.79 07/12/16 483,825 422,540
------------
1,882,719
------------
MEDIA -- 15.5%
Advanstar Communications, Inc........ 1st Lien Caa2 CCC+ 2.78 05/31/14 1,942,431 1,442,255
Caribe Information Investment, Inc... BTL-B B2 CCC+ 2.62-2.79 03/31/13 1,610,481 1,223,966
Carmike Cinemas, Inc................. BTL B1 B- 5.50 01/27/16 1,489,636 1,482,454
Century -- TCI California LP+@#(5)... Revolver NR NR 6.50 12/31/07 10,000 0
Cequel Communications LLC............ BTL Ba3 BB- 2.29 11/05/13 1,656,224 1,579,365
Charter Communications Operating LLC. BTL Ba2 B+ 2.35 04/25/13 3,949,380 3,670,171
Cinram International, Inc............ BTL-B B3 CCC+ 2.35 05/06/11 792,837 657,394
Citadel Broadcasting Co.............. BTL-B NR NR 11.00 06/03/15 2,196,882 2,300,135
Cumulus Media, Inc................... BTL Caa1 B- 4.35 06/11/14 1,641,868 1,453,053
Fender Musical Instruments Corp...... Delayed Draw B2 B 2.61 01/07/14 289,134 257,089
Fender Musical Instruments Corp...... BTL-B B2 B 2.79 06/07/14 570,716 507,462
Formula One Holdings................. BTL-B1 NR NR 2.47 12/31/13 1,120,285 998,221
Formula One Holdings................. BTL-B2 NR NR 2.47 12/31/13 756,721 674,270
Formula One Holdings................. BTL-D2 NR NR 3.85 06/30/14 1,500,000 1,305,834
GateHouse Media Operating, Inc....... Delayed Draw Ca CCC- 2.35 08/28/14 813,503 336,790
GateHouse Media Operating, Inc....... BTL-B Ca CCC- 2.35 08/28/14 3,178,085 1,315,727
GateHouse Media Operating, Inc....... BTL-C Ca CCC- 2.60 08/28/14 997,895 413,128
Gray Television, Inc................. BTL-B B2 B 3.80-5.75 01/05/14 1,525,590 1,429,764
Hicks Sports Group+(7)............... BTL-B NR NR 6.75 12/15/10 3,000,000 2,636,250
HIT Entertainment, Ltd............... BTL B1 CCC+ 5.60 06/01/12 896,357 836,973
HIT Entertainment, Ltd............... 2nd Lien Caa2 CCC- 5.85 02/05/13 1,000,000 662,500
Idearc, Inc.......................... BTL-B B3 B- 11.00 12/31/15 721,844 621,173
Lamar Media Corp..................... BTL-B Baa3 BB 4.25 12/31/16 1,995,000 1,993,338
Live Nation Entertainment, Inc....... BTL-B Ba2 BB- 4.50 11/07/16 1,995,000 1,981,699
Local Insight Regatta Holdings, Inc.. BTL B2 B- 6.25 04/23/15 696,017 591,614
Mediacom Broadband LLC............... BTL-F Ba3 BB- 4.50 10/23/17 2,755,000 2,631,714
Mediacom LLC......................... BTL-D Ba3 BB- 5.50 03/31/17 957,763 885,787
Mediacom LLC......................... BTL-E Ba3 BB- 4.50 10/23/17 2,755,000 2,635,618
14
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2010 -- (UNAUDITED) (CONTINUED)
RATINGS/(1)/
(UNAUDITED)
------------
INTEREST MATURITY PRINCIPAL VALUE
INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT (NOTE 2)
- ---------------------------------------------------------------------------------------------------------------------
MEDIA -- (CONTINUED)
Metro-Goldwyn-Mayer Studios, Inc.+(7)(8).... BTL-B NR NR 20.50% 07/01/12 $ 2,887,500 $ 1,317,422
NextMedia Operating, Inc.................... BTL-B B3 B+ 8.25 05/21/16 2,937,638 2,937,638
Nextstar Broadcasting, Inc.................. BTL-B Ba3 B+ 5.00-6.25 09/30/16 1,000,000 985,938
Nielsen Finance LLC......................... BTL Ba3 B+ 2.35 08/09/13 1,279,000 1,204,925
Sinclair Television Group, Inc.............. BTL-B Ba2 BB- 6.75 10/16/15 1,635,909 1,645,451
Spanish Broadcasting Systems, Inc........... 1st Lien Caa3 CCC+ 2.29 06/10/12 947,500 848,013
Tribune Co.+(5)(7).......................... BTL-B NR NR 6.50 06/04/14 3,925,075 2,359,952
TWCC Holding Corp........................... BTL-B Ba2 BB 5.00 09/14/15 1,171,313 1,169,117
Univision Communications, Inc............... BTL-B B2 B- 2.60 09/29/14 3,974,765 3,345,981
WideOpenWest Finance LLC.................... BTL B1 B- 2.79-2.87 06/08/14 977,547 895,189
WideOpenWest Finance LLC.................... BTL-B B1 B- 6.81-6.98 06/08/14 1,481,320 1,467,741
Yell Group, Ltd............................. BTL-B NR NR 4.10 10/27/12 845,147 552,726
------------
55,253,837
------------
METALS & MINING -- 0.3%
Aleris International, Inc.+@#............... BTL-C1 NR NR 4.25 12/19/13 175,092 0
Novelis, Inc................................ CND TL Ba3 BB- 2.54 07/06/14 738,898 699,952
Novelis, Inc................................ BTL Ba3 BB- 2.35 07/06/14 250,927 237,701
------------
937,653
------------
MULTI UTILITIES -- 1.1%
Texas Competitive Electric Holdings Co. LLC. BTL-B1 B1 B+ 3.85-4.03 10/10/14 1,974,619 1,464,921
Texas Competitive Electric Holdings Co. LLC. BTL-B2 B1 B+ 3.85-4.07 10/10/14 3,516,729 2,608,974
------------
4,073,895
------------
MULTILINE RETAIL -- 1.3%
Neiman Marcus Group, Inc.................... BTL-B B2 BB- 2.35-2.54 04/06/13 2,254,116 2,116,365
RGIS LLC.................................... Delayed Draw B1 B- 3.03 04/30/14 42,432 38,967
RGIS LLC.................................... BTL-B B1 B- 3.03 04/30/14 848,650 779,344
Savers, Inc................................. BTL-B Ba3 B+ 5.75-6.00 02/17/16 1,675,800 1,684,179
------------
4,618,855
------------
OIL, GAS & CONSUMABLE FUELS -- 1.4%
Alon USA, Inc. (Edgington Facility)......... BTL B1 BB- 2.60 06/22/13 26,666 20,400
Alon USA, Inc. (Paramount Facility)......... BTL B1 BB- 2.60-3.01 06/22/13 213,333 163,200
Great Point Power LLC....................... BTL Ba1 BB+ 5.75 06/04/17 1,675,800 1,673,705
NE Energy, Inc.............................. 2nd Lien B3 CCC+ 5.06 05/01/14 250,000 224,688
Pilot Travel Centers LLC.................... BTL-B Ba2 BBB- 5.25 06/30/16 965,000 963,963
Venoco, Inc................................. 2nd Lien B3 BB- 4.38-6.25 05/08/14 2,351,094 2,100,703
------------
5,146,659
------------
PAPER & FOREST PRODUCTS -- 0.1%
MMGS Packaging Acquisition.................. 2nd Lien NR NR 6.04 03/07/15 500,000 340,000
------------
PERSONAL PRODUCTS -- 0.4%
Revlon, Inc................................. BTL-B Ba3 B+ 4.53-6.00 03/11/15 1,496,250 1,460,714
------------
PHARMACEUTICALS -- 0.5%
Harvard Drug Group LLC...................... BTL-B B1 B+ 6.50 04/05/16 750,934 718,081
Harvard Drug Group LLC...................... Delayed Draw B1 B+ 6.50 04/05/16 103,253 98,736
Warner Chilcott PLC......................... Tranche B1 B1 BB+ 5.75 04/30/15 198,777 198,551
Warner Chilcott PLC......................... Tranche B2 B1 BB+ 5.75 04/30/15 331,000 330,624
Warner Chilcott PLC......................... BTL-A B1 BB+ 5.50 10/30/14 421,864 421,653
------------
1,767,645
------------
PROFESSIONAL SERVICES -- 0.3%
Bankruptcy Management Solutions, Inc........ 2nd Lien Caa3 B+ 6.60 07/31/13 240,625 52,336
CHG Cos., Inc............................... 2nd Lien NR NR 6.35 01/08/14 1,000,000 970,000
------------
1,022,336
------------
15
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2010 -- (UNAUDITED) (CONTINUED)
RATINGS/(1)/
(UNAUDITED)
------------
INTEREST MATURITY PRINCIPAL VALUE
INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT (NOTE 2)
- ------------------------------------------------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT -- 0.7%
Realogy Corp................................... CLTL Caa1 CCC- 3.38% 10/10/13 $ 618,391 $ 527,179
Realogy Corp................................... BTL Caa1 CCC- 3.29 10/10/13 2,296,881 1,958,091
------------
2,485,270
------------
ROAD & RAIL -- 1.4%
Cardinal Logistics Management, Inc.#@.......... 2nd Lien NR NR 15.50 03/23/14 1,032,968 51,648
Greatwide Logistics Services, Inc.+#@(5)(7).... 2nd Lien NR B 9.31 06/05/14 1,000,000 0
Neff Corp.+(5)(7).............................. 2nd Lien NR NR 5.75 11/30/14 500,000 115,000
NES Rentals Holdings........................... 2nd Lien Caa2 CCC+ 10.00 07/20/13 798,142 714,337
NES Tanks...................................... 2nd Lien Caa2 B 4.12 04/07/14 500,000 350,000
Rental Service Corp............................ 2nd Lien Caa1 B- 3.80 11/30/13 1,638,949 1,501,687
Swift Transportation Co., Inc.................. BTL-B B3 B- 8.25 05/10/14 2,613,179 2,425,357
------------
5,158,029
------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 2.0%
Intersil Corp.................................. BTL-B Ba2 BB+ 4.75 04/27/16 4,000,000 3,996,980
Freescale Semiconductor, Inc................... BTL NR B- 4.60 12/01/16 3,398,583 2,991,817
------------
6,988,797
------------
SOFTWARE -- 3.7%
Infor Global Solutions......................... Delayed Draw B1 B+ 4.00 07/28/15 330,000 308,138
Infor Global Solutions......................... BTL NR NR 4.00 07/28/15 632,500 590,992
Intergraph Corp................................ BTL-B1 B1 BB- 6.00 05/29/14 1,400,000 1,404,084
IPC Systems, Inc............................... 2nd Lien Caa2 CCC 5.54 05/31/15 1,000,000 840,000
Open Solutions, Inc............................ BTL-B B1 BB- 2.45 01/23/14 2,594,173 2,300,707
Reynolds & Reynolds Co......................... BTL-B Ba3 BB- 5.25 04/01/17 2,354,643 2,334,529
Sensata Technologies BV........................ BTL-B B1 BB- 2.08 04/27/13 2,673,834 2,503,377
Verint Systems, Inc............................ BTL B1 BB- 2.60 05/25/14 3,051,363 2,877,817
------------
13,159,644
------------
SPECIALTY RETAIL -- 2.2%
Bass Pro Group, LLC............................ BTL-B B1 BB- 5.00-5.75 04/09/15 1,476,300 1,472,592
Michaels Stores, Inc........................... BTL-B B2 B 2.63-2.81 10/31/13 2,178,856 2,028,038
Michaels Stores, Inc........................... BTL-B2 B2 B 4.88-5.06 07/31/16 1,586,474 1,511,117
National Bedding Co............................ 1st Lien NR BB 2.31-4.25 02/28/13 1,399,748 1,340,259
National Bedding Co............................ 2nd Lien NR CCC+ 5.31 02/28/14 1,000,000 922,500
Petco Animal Supplies, Inc..................... BTL-B B1 B+ 2.60-2.78 10/26/13 482,500 461,893
------------
7,736,399
------------
TEXTILES, APPAREL & LUXURY GOODS -- 0.8%
Hanesbrands, Inc............................... BTL-B Ba1 BB+ 5.25 12/10/15 368,500 370,573
Phillips-Van Heusen Corp....................... BTL-B Ba2 BBB 4.75 05/06/16 2,505,000 2,509,697
------------
2,880,270
------------
TRANSPORTATION INFRASTRUCTURE -- 0.3%
Central Parking Corp........................... LOC Ba3 CCC 2.54 05/22/14 379,310 330,000
Central Parking Corp........................... 1st Lien Ba3 CCC 2.81 05/22/14 1,041,805 906,370
------------
1,236,370
------------
WIRELESS TELECOMMUNICATION SERVICES -- 0.8%
MetroPCS Wireless, Inc......................... BTL Ba1 BB- 2.63 11/03/13 2,823,792 2,707,853
------------
TOTAL LOANS (cost $345,878,250)........................................................................ 326,744,487
------------
CONVERTIBLE BONDS & NOTES -- 0.0%
CHEMICALS -- 0.0%
Wellman, Inc.@#(12)(cost $885,178)............. Bond NR NR 5.00 01/29/19 95,812 0
------------
16
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2010 -- (UNAUDITED) (CONTINUED)
SHARES/ VALUE
INDUSTRY DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- ---------------------------------------------------------------------------------------------------
COMMON STOCK -- 0.4%
CHEMICALS -- 0.4%
LyondellBasell Industries, Class A+............................. 41,713 $ 673,665
LyondellBasell Industries, Class B+............................. 38,231 617,431
------------
TOTAL COMMON STOCK (cost $1,811,766)............................ 1,291,096
------------
MEMBERSHIP INTEREST -- 0.1%
MEDIA -- 0.1%
Advanstar Communications, Inc.+@(9)............................. 12,608 140,264
NextMedia Operating, Inc.+#@(9)................................. 7,916 117,807
------------
258,071
------------
OIL, GAS & CONSUMABLE FUELS -- 0.0%
Vitruvian Exploration LLC+...................................... 23,875 286,500
------------
TOTAL MEMBERSHIP INTEREST (cost $2,506,365)..................... 544,571
------------
WARRANTS -- 1.0%
MEDIA -- 1.0%
Citadel Broadcasting Corp.
Expires 06/03/30
(Strike Price $0.001)+#@....................................... 128,107 3,490,916
Cumulus Media, Inc.
Expires 06/29/19
(Strike Price $1.17)+.......................................... 3,045 4,568
------------
TOTAL WARRANTS (cost $1,521,359)................................ 3,495,484
------------
TOTAL LONG-TERM INVESTMENT SECURITIES (cost $352,602,918)....... 332,075,638
------------
SHORT-TERM INVESTMENT SECURITIES -- 1.6%
REGISTERED INVESTMENT COMPANIES -- 1.6%
SSgA Money Market Fund
(cost $5,829,869).............................................. 5,829,869 5,829,869
------------
REPURCHASE AGREEMENTS -- 10.3%
Bank of America Securities Joint Repurchase Agreement(10)....... $19,790,000 19,790,000
UBS Securities LLC Joint Repurchase Agreement(10)............... 16,860,000 16,860,000
------------
TOTAL REPURCHASE AGREEMENTS (cost $36,650,000).................. 36,650,000
------------
TOTAL INVESTMENTS --
(cost $395,082,787)(11)......................................... 105.0% 374,555,507
LIABILITIES IN EXCESS OF OTHER ASSETS............................... (5.0)% (17,754,588)
----------- ------------
NET ASSETS.......................................................... 100.0% $356,800,919
=========== ============
- --------
BTL Bank Term Loan
CLTL Credit Linked Term Loan
CND TL Canadian Term Loan
DIP Debtor in Possession
LOC Letter of Credit
NR Security is not rated.
+ Non-income producing security
@ Illiquid security. At June 30, 2010, the aggregate value of these
securities was $3,800,635, representing 1.1% of net assets.
# Fair valued security. Securities are classified as Level 3 based on the
securities valuation inputs; see Note 2
(1) Bank loans rated below Baa by Moody's Investor Service, Inc. or BBB by
Standard & Poor's Group are considered below investment grade. Ratings
provided are as of June 30, 2010.
(2) Based on the stated maturity, the weighted average to maturity of the
loans held in the portfolio will be approximately 49 months. Loans in
the Fund's portfolio 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.
(3) 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 Offer 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.
17
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2010 -- (UNAUDITED) (CONTINUED)
(4) All loans in the portfolio were purchased through assignment agreements
unless otherwise indicated.
(5) Company has filed for Chapter 11 bankruptcy protection.
(6) Loan is in default and did not pay principal at maturity. Final outcome
of Chapter 11 bankruptcy still to be determined.
(7) Loan is in default.
(8) Company entered into a forbearance agreement under which consenting
lenders extended the date by which specified payments otherwise would
be due and payable to a subsequent date, subject to certain conditions.
(9) Denotes a restricted security that: (a) cannot be offered for public
sale without first being registered, or being able to take advantage of
an exemption from registration, under the Securities Act of 1933, as
amended (the "1933 Act"); (b) is subject to a contractual restriction
on public sales; or (c) is otherwise subject to a restriction on sales
by operation of applicable law. Restricted securities are valued
pursuant to Note 2. Certain restricted securities held by the Fund may
not be sold except in exempt transactions or in a public offering
registered under the 1933 Act. The Fund has no right to demand
registration of these securities. The risk of investing in certain
restricted securities is greater than the risk of investing in the
securities of widely held, publicly traded companies. To the extent
applicable, lack of a secondary market and resale restrictions may
result in the inability of a Fund to sell a security at a fair price
and may substantially delay the sale of the security. In addition,
certain restricted securities may exhibit greater price volatility than
securities for which secondary markets exist. As of June 30, 2010, the
Fund held the following restricted securities:
VALUE AS
A % OF
ACQUISITION ACQUISITION VALUE PER NET
NAME DATE SHARES COST VALUE SHARE ASSETS
- ---- ----------- ------ ----------- -------- --------- --------
Advanstar Communications, Inc. 11/24/09 12,608 $1,000,000 $140,264 $11.13 0.04%
NextMedia Operating, Inc...... 06/16/10 7,916 506,366 117,807 14.88 0.03
-------- ----
$258,071 0.07%
======== ====
(10) See Note 2 for details of the Joint Repurchase Agreement.
(11) See Note 6 for cost of investments on a tax basis.
(12) PIK ("Payment-in-Kind") security. Bond or preferred stock that pays
interest/dividends in the form of additional bonds or preferred stock.
18
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2010 -- (UNAUDITED) (CONTINUED)
The following is a summary of the inputs used to value the Fund's net assets as
of June 30, 2010 (see Note 2):
LEVEL 1--UNADJUSTED LEVEL 2--OTHER LEVEL 3--SIGNIFICANT
QUOTED PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS TOTAL
------------------- ----------------- -------------------- ------------
Long-Term Investment Securities:
Loans:
Aerospace & Defense............................. $ -- $ 1,890,693 $ 1,199,992 $ 3,090,685
Airlines........................................ -- 4,222,188 -- 4,222,188
Auto Components................................. -- 6,794,714 2,999,356 9,794,070
Automobiles..................................... -- 2,801,039 -- 2,801,039
Building Products............................... -- 931,527 2,673,322 3,604,849
Capital Markets................................. -- 3,873,468 1,622,521 5,495,989
Chemicals....................................... -- 12,435,123 3,368,972 15,804,095
Commercial Services & Supplies.................. -- 15,340,103 2,259,272 17,599,375
Communications Equipment........................ -- 1,779,845 1,851,877 3,631,722
Containers & Packaging.......................... -- 8,769,662 1,637,025 10,406,687
Distributors.................................... -- 3,794,672 -- 3,794,672
Diversified Consumer Services................... -- -- 3,283,812 3,283,812
Diversified Financial Services.................. -- 9,427,229 2,864,322 12,291,551
Diversified Telecommunication Services.......... -- 5,091,446 1,107,422 6,198,868
Electric Utilities.............................. -- 474,669 909,656 1,384,325
Electrical Equipment............................ -- -- 553,295 553,295
Electronic Equipment, Instruments & Components.. -- 504,325 -- 504,325
Energy Equipment & Services..................... -- 5,559,801 -- 5,559,801
Food & Staples Retailing........................ -- 3,828,430 1,906,104 5,734,534
Food Products................................... -- 4,400,023 228,750 4,628,773
Gas Utilities................................... -- 322,486 -- 322,486
Health Care Equipment & Supplies................ -- 2,523,952 684,834 3,208,786
Health Care Providers & Services................ -- 5,184,053 2,667,895 7,851,948
Health Care Technology.......................... -- 2,684,631 -- 2,684,631
Hotels, Restaurants & Leisure................... -- 18,641,854 1,521,636 20,163,490
Household Products.............................. -- 3,863,174 2,775,294 6,638,468
Industrial Conglomerates........................ -- 7,321,632 -- 7,321,632
Industrial Power Producers & Energy Traders..... -- 3,157,568 -- 3,157,568
Insurance....................................... -- 5,596,352 5,239,840 10,836,192
Internet & Catalog Retail....................... -- 1,619,422 1,996,876 3,616,298
Internet Software & Services.................... -- 1,244,147 -- 1,244,147
IT Services..................................... -- 9,259,315 4,254,357 13,513,672
Leisure Equipment & Products.................... -- -- 1,955,690 1,955,690
Machinery....................................... -- 3,246,688 1,741,191 4,987,879
Marine.......................................... -- 1,882,719 -- 1,882,719
Media........................................... -- 45,732,683 9,521,154 55,253,837
Metals & Mining................................. -- 937,653 0 937,653
Multi Utilities................................. -- 4,073,895 -- 4,073,895
Multiline Retail................................ -- 2,934,676 1,684,179 4,618,855
Oil, Gas & Consumable Fuels..................... -- 3,064,666 2,081,993 5,146,659
Paper & Forest Products......................... -- -- 340,000 340,000
Personal Products............................... -- 1,460,714 -- 1,460,714
Pharmaceuticals................................. -- 950,828 816,817 1,767,645
Professional Services........................... -- -- 1,022,336 1,022,336
Real Estate Management & Development............ -- 2,485,270 -- 2,485,270
Road & Rail..................................... -- 3,927,044 1,230,985 5,158,029
Semiconductors & Semiconductor Equipment........ -- 6,988,797 -- 6,988,797
Software........................................ -- 9,441,827 3,717,817 13,159,644
Specialty Retail................................ -- 4,001,048 3,735,351 7,736,399
Textiles, Apparel & Luxury Goods................ -- 2,880,270 -- 2,880,270
Transportation Infrastructure................... -- -- 1,236,370 1,236,370
Wireless Telecommunication Services............. -- 2,707,853 -- 2,707,853
Convertible Bonds & Notes........................ -- -- 0 0
Common Stock..................................... 1,291,096 -- -- 1,291,096
Membership Interest.............................. -- -- 544,571 544,571
Warrants......................................... 3,490,916 4,568 -- 3,495,484
Short-Term Investments:
Registered Investment Companies.................. -- 5,829,869 -- 5,829,869
Repurchase Agreements.............................. -- 36,650,000 -- 36,650,000
---------- ------------ ----------- ------------
TOTAL.............................................. $4,782,012 $292,538,611 $77,234,884 $374,555,507
========== ============ =========== ============
19
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2010 -- (UNAUDITED) (CONTINUED)
The following is a reconciliation of Level 3 assets for which significant
unobservable inputs were used to determine fair value:
CONVERTIBLE COMMON MEMBERSHIP
LOANS BONDS & NOTES STOCK INTEREST
------------ ------------- --------- ----------
Balance as of 12/31/2009.......................... $ 59,572,240 $ 1,869 $ 125,195 $ 301,991
Accrued discounts/premiums........................ 237,492 (45,589) -- --
Realized gain/(loss).............................. (159,795) -- (120,132) --
Change in unrealized appreciation (depreciation)*. 2,874,164 41,372 123,940 (263,785)
Purchases......................................... 30,943,301 2,348 -- 506,365
(Sales)........................................... (11,021,570) -- (129,003) --
Transfers into Level 3............................ 12,616,306# -- -- --
Transfers (out) of Level 3........................ (18,371,825)#+ -- -- --
------------ -------- --------- ---------
Balance as of 6/30/2010........................... $ 76,690,313 $ 0 $ -- $ 544,571
============ ======== ========= =========
- --------
# The Fund's policy is to recognize transfers in and transfers out as of the
end of the reporting period.
+ Transferred from Level 3 to Level 2 due to an increase in market activity
and observable market data for these securities.
* The total change in unrealized appreciation (depreciation) included in the
statement of operations attributable to level 3 investments still held at
June 30, 2010 includes:
CONVERTIBLE COMMON MEMBERSHIP
LOANS BONDS & NOTES STOCK INTEREST
----------- ------------- ------ ----------
$ 1,627,336 $ 41,372 $ -- $(263,785)
=========== ======== ===== =========
See Notes to Financial Statements
20
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2010 -- (UNAUDITED)
Note 1. Organization of the Fund
SunAmerica Senior Floating Rate Fund, Inc. (the "Fund") is an open-end,
non-diversified management investment company. The Fund was organized as a
Maryland corporation in 1998 and is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"). The Fund is managed by SunAmerica
Asset Management Corp. (the "Adviser" or "SunAmerica"), an indirect
wholly-owned subsidiary of American International Group, Inc. ("AIG"). The
Fund's investment goal and principal investment techniques are to provide a
high level of current income as is consistent with the preservation of
capital by investing, under normal market conditions, at least 80% of its
net assets, plus any borrowings for investment purposes, in senior secured
floating rate loans and other institutionally traded secured floating rate
debt obligations. The Fund may also purchase investment grade fixed income
debt securities and money market instruments.
Prior to October 4, 2006, the Fund operated as a closed-end investment
management company. On October 4, 2006, the Fund converted from a closed-end
investment management company into an open-end investment management
company. Concurrently with the conversion, the Class A shares were
redesignated as Class Q shares and a new class of shares designated as
Class A commenced offering.
The Fund offers two classes of shares. Class A shares are offered at net
asset value per share plus an initial sales charge. Additionally, purchases
of Class A shares in excess of $1,000,000 will be purchased at net asset
value but will be subject to a contingent deferred sales charge ("CDSC") on
redemptions made within two years of purchase. Class C shares are offered
for sale at net asset value without a front-end sales charge, although a
CDSC may be imposed on redemptions made within 12 months of purchase. The
share classes differ in their respective distribution and service
maintenance fees. All classes have equal rights to assets and voting
privileges except as may otherwise be provided in the Fund's registration
statement.
Effective as of the close of business on June 26, 2009 (the "Liquidation
Date"), the Fund liquidated its Class B, Class D and Class Q shares, as well
as those Class C shares purchased before August 18, 1999 ("Old Class C
Shares"), including those shares purchased through the reinvestment of
dividends and distributions paid on Old Class C Shares and held in a
separate sub-account, as described in the Fund's Prospectus, that were
eligible for conversion to Class Q shares. Any shares outstanding as of the
Liquidation Date were automatically redeemed by the Fund on that date and
shareholders received proceeds equal to the net asset value of their shares.
INDEMNIFICATIONS: The Fund's organizational documents provide current and
former officers and directors with a limited indemnification against
liabilities arising out of the performance of their duties to the Fund. In
addition, pursuant to Indemnification Agreements between the Fund and each
of the current directors who is not an "interested person," as defined in
Section 2(a)(19) of the 1940 Act, of the Fund (collectively, the
"Disinterested Directors"), the Fund provides the Disinterested Directors
with a limited indemnification against liabilities arising out of the
performance of their duties to the Fund, whether such liabilities are
asserted during or after their service as directors. In addition, in the
normal course of business the Fund enters into contracts that contain the
obligation to indemnify others. The Fund's maximum exposure under these
arrangements is unknown. Currently, however, the Fund expects the risk of
loss to be remote.
Note 2. Significant Accounting Policies
The preparation of financial statements in accordance with U.S. generally
accepted accounting principles (GAAP) requires management to make estimates
and assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from these estimates and
those differences could be significant. The following is a summary of the
significant accounting policies followed by the Fund in the preparation of
its financial statements:
SECURITY VALUATION: The investments by the Fund in loan interests ("Loans")
are valued in accordance with guidelines established by the Board of
Directors (the "Board"). Under the Fund's current guidelines, Loans for
which an active secondary market exists to a reliable degree will be valued
at the mean of the last available bid and asked prices in the market for
such Loans, as provided by a Board-approved loan pricing service. Loans for
which an active secondary
21
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2010 -- (UNAUDITED)
(CONTINUED)
market does not exist to a reliable degree will be valued at fair value,
which is intended to approximate market value. In valuing a Loan at fair
value, the following factors will be considered, (a) the creditworthiness of
the borrower and any intermediate participants, (b) the terms of the Loan,
(c) recent prices in the market for similar Loans, if any, and (d) recent
prices in the market for instruments of similar quality, rate, and period
until the next interest rate reset and maturity.
Stocks are generally valued based upon closing sales prices reported on
recognized securities exchanges for which the securities are principally
traded. Stocks listed on the NASDAQ are valued using the NASDAQ Official
Closing Price ("NOCP"). Generally, the NOCP will be the last sale price
unless the reported trade for the stock is outside the range of the bid/ask
price. In such cases, the NOCP will be normalized to the nearer of the bid
or ask price. For listed securities having no sales reported and for
unlisted securities, such securities will be valued based upon the last
reported bid price.
Non-convertible bonds and debentures, other long-term debt securities, and
short-term debt securities with maturities in excess of 60 days, are valued
at bid prices obtained for the day of valuation from a bond pricing service,
when such prices are available. The pricing services may use valuation
models or matrix pricing which considers information with respect to
comparable bond and note transactions, quotations from bond dealers, or by
reference to other securities that are considered comparable in such
characteristics as rating, interest rate, and maturity date, option adjusted
spreads models, prepayments projections, interest rate spreads, and yield
curves to determine current value. If a vendor quote is unavailable the
securities may be priced at the mean of two independent quotes obtained from
brokers.
Short-term securities with 60 days or less to maturity are amortized to
maturity based on their cost to the Fund if acquired within 60 days of
maturity or, if already held by the Fund on the 60 day, are amortized to
maturity based on the value determined on the 61 day.
Securities for which market quotations are not readily available or if a
development/significant event occurs that may significantly impact the value
of the security, then these securities are fair valued, as determined
pursuant to procedures adopted in good faith by the Board. There is no
single standard for making fair value determinations, which may result in
prices that vary from those of other funds.
The Loans in which the Fund primarily invests are generally not listed on
any exchange and the secondary market for the Loans is comparatively
illiquid relative to markets for other fixed income securities.
Consequently, obtaining valuations for the Loans may be more difficult than
obtaining valuations for more actively traded securities. Thus, the value
upon disposition on any given Loan may differ from its current valuation.
The various inputs that may be used to determine the value of the Fund's
investments are summarized into three broad levels listed below:
Level 1 -- Unadjusted quoted prices in active markets for identical
securities
Level 2 -- Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
referenced indicies, 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, etc.)
Level 3 -- Significant unobservable inputs (includes inputs that reflect the
Funds' own assumptions about the assumptions market participants would use
in pricing the security, developed based on the best information available
under the circumstances)
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities.
The summary of the inputs used to value the Fund's net assets as of June 30,
2010 are reported on a schedule following the Portfolio of Investments.
22
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2010 -- (UNAUDITED)
(CONTINUED)
REPURCHASE AGREEMENTS: The Fund, along with other affiliated registered
investment companies, pursuant to procedures adopted by the Board and
applicable guidance from the Securities and Exchange Commission, may
transfer uninvested cash balances into a single joint account, the daily
aggregate balance of which is invested in one or more repurchase agreements
collateralized by U.S. Treasury or federal agency obligations. For
repurchase agreements and joint repurchase agreements, the Fund's custodian
takes possession of the collateral pledged for investments in such
repurchase agreements. The underlying collateral is valued daily on a
mark-to-market basis, plus accrued interest, to ensure that the value, at
the time the agreement is entered into, is equal to at least 102% of the
repurchase price, including accrued interest. In the event of default of the
obligation to repurchase, a Fund has the right to liquidate the collateral
and apply the proceeds in satisfaction of the obligation. If the seller
defaults and the value of the collateral declines or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Fund may be delayed or limited.
As of June 30, 2010, the following funds held an undivided interest in the
joint repurchase agreement with Bank of America Securities, LLC:
PERCENTAGE PRINCIPAL
OWNERSHIP AMOUNT
- ---------- -----------
Senior Floating Rate Fund..... 12.77% $19,790,000
As of such date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
Bank of America Securities, LLC., dated June 30, 2010, bearing interest at a
rate of 0.01% per annum, with a principal amount of $155,000,000, a
repurchase price of $155,000,043, and maturity date of July 1, 2010. The
repurchase agreement is collateralized by the following:
INTEREST MATURITY PRINCIPAL MARKET
TYPE OF COLLATERAL RATE DATE AMOUNT VALUE
------------------ -------- -------- ------------ ------------
U.S. Treasury Note............ 1.00% 12/11/11 $156,924,000 $158,119,761
As of June 30, 2010, the following funds held an undivided interest in the
joint repurchase agreement with UBS Securities, LLC:
PERCENTAGE PRINCIPAL
OWNERSHIP AMOUNT
- ---------- -----------
Senior Floating Rate Fund..... 12.70% $16,860,000
As of such date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
UBS Securities, LLC, dated June 30, 2010, bearing interest at a rate of
0.02% per annum, with a principal amount of $132,785,000, a repurchase price
of $132,785,074 and maturity date of July 1, 2010. The repurchase agreement
is collateralized by the following:
INTEREST MATURITY PRINCIPAL MARKET
TYPE OF COLLATERAL RATE DATE AMOUNT VALUE
------------------ -------- -------- ------------ ------------
U.S. Treasury Notes........... 0.88% 02/28/11 $134,929,400 $135,462,371
SECURITIES TRANSACTIONS, INVESTMENT INCOME, EXPENSES, DIVIDENDS AND
DISTRIBUTIONS TO SHAREHOLDERS: Security transactions are recorded on a trade
date basis. Realized gains and losses on sales of investments are calculated
on the identified cost basis. Interest income is accrued daily from
settlement date except when collection is not expected. Dividend income is
recorded on the ex-dividend date. For financial statement purposes, the Fund
amortizes all premiums and accretes all discounts. Facility fees received,
which were $1,346,953 for the six months ended June 30, 2010, are accreted
to income over the life of the Loans. Other income, including amendment
fees, commitment fees, letter of credit fees, etc., which were $471,412 for
the six months ended June 30, 2010, are recorded as income when received or
contractually due to the Fund.
23
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2010 -- (UNAUDITED)
(CONTINUED)
Net investment income, other than class specific expenses, and realized and
unrealized gains and losses, are allocated daily to each class of shares
based upon the relative net asset value of outstanding shares (or the value
of dividend-eligible shares, as appropriate) of each class of shares at the
beginning of the day (after adjusting for the current capital share activity
of the respective class). Interest earned on cash balances held at the
custodian are shown as custody credits on the Statement of Operations.
Dividends from net investment income are normally declared daily and paid
monthly. Capital gain distributions, if any, are paid annually. The Fund
records dividends and distributions to the shareholders on the ex-dividend
date. 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 U.S. generally accepted
accounting principles. These "book/tax" differences are either considered
temporary or permanent in nature. To the extent these differences are
permanent in nature, such amounts are reclassified within the capital
accounts at fiscal year end based on their federal tax-basis treatment;
temporary differences do not require reclassification. Net investment
income/loss, net realized gain/loss, and net assets are not affected by the
reclassifications.
The Fund intends to comply with the requirements of the Internal Revenue
Code, as amended, applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal tax provision is
required. The Fund files U.S. Federal and certain state income tax returns.
With few exceptions, the Fund is no longer subject to U.S. federal and state
tax examinations by tax authorities for tax years ending before 2006.
STATEMENT OF CASH FLOWS: Information on financial transactions which have
been settled through the receipt or disbursement of cash is presented in the
Statement of Cash Flows. The cash amount shown in the Statement of Cash
Flows is the amount included in the Fund's Statement of Assets and
Liabilities and represents cash on hand at its custodian bank account and
does not include any short-term investments at June 30, 2010.
Note 3. Capital Share Transactions
The Fund has 1,000,000,000 of $.01 par value shares authorized that may be
issued in two different classes. Transactions in shares of each class were
as follows:
FOR THE
SIX MONTHS ENDED FOR THE
JUNE 30, 2010 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2009
------------------------ ---------------------------
SHARES AMOUNT SHARES AMOUNT
CLASS A ---------- ------------ ---------- ------------
Shares sold................. 15,632,262 $126,693,829 11,873,563 $ 80,693,876
Reinvested distributions.... 244,080 1,970,329 253,297 1,718,873
Shares redeemed............. (4,459,875) (36,070,627) (3,810,598) (26,274,981)
---------- ------------ ---------- ------------
Net increase (decrease).. 11,416,467 $ 92,593,531 8,316,262 $ 56,137,768
========== ============ ========== ============
FOR THE
SIX MONTHS ENDED FOR THE PERIOD
JUNE 30, 2010 JANUARY 1, 2009 THROUGH
(UNAUDITED) JUNE 26, 2009
------------------------ ---------------------------
SHARES AMOUNT SHARES AMOUNT
CLASS B(3) ---------- ------------ ---------- ------------
Shares sold................. -- $ -- 20,514 $ 135,436
Reinvested distributions.... -- -- 21,530 120,991
Shares redeemed............. -- -- (1,368,996)(1) (8,881,065)(1)
---------- ------------ ---------- ------------
Net increase (decrease).. -- $ -- (1,326,952) $ (8,624,638)
========== ============ ========== ============
24
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2010 -- (UNAUDITED)
(CONTINUED)
FOR THE
SIX MONTHS ENDED FOR THE
JUNE 30, 2010 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2009
------------------------ -----------------------------
SHARES AMOUNT SHARES AMOUNT
CLASS C ---------- ------------ ---------- ------------
Shares sold................. 5,562,376 $ 45,085,863 4,470,581 $ 29,899,027
Reinvested distributions.... 187,072 1,509,227 486,422 3,166,433
Shares redeemed............. (2,306,736) (18,615,105) (5,154,834)(2) (33,536,109)(2)
---------- ------------ ---------- ------------
Net increase (decrease).. 3,442,712 $ 27,979,985 (197,831) $ (470,649)
========== ============ ========== ============
FOR THE
SIX MONTHS ENDED FOR THE PERIOD
JUNE 30, 2010 JANUARY 1, 2009 THROUGH
(UNAUDITED) JUNE 26, 2009
------------------------ -----------------------------
SHARES AMOUNT SHARES AMOUNT
CLASSD(3) ---------- ------------ ---------- ------------
Shares sold................. -- $ -- 200 $ 1,100
Reinvested distributions.... -- -- 15,585 87,561
Shares redeemed............. -- -- (856,987) (5,526,585)
---------- ------------ ---------- ------------
Net increase (decrease).. -- $ -- (841,202) $ (5,437,924)
========== ============ ========== ============
FOR THE
SIX MONTHS ENDED FOR THE PERIOD
JUNE 30, 2010 JANUARY 1, 2009 THROUGH
(UNAUDITED) JUNE 26, 2009
------------------------ -----------------------------
SHARES AMOUNT SHARES AMOUNT
CLASS Q(3) ---------- ------------ ---------- ------------
Shares sold................. -- $ -- 517,522(1)(2) $ 2,979,493(1)(2)
Reinvested distributions.... -- -- 19,882 112,620
Shares redeemed............. -- -- (1,436,032) (9,508,829)
---------- ------------ ---------- ------------
Net increase (decrease).. -- $ -- (898,628) $ (6,416,716)
========== ============ ========== ============
- --------
(1)Includes automatic conversion of 125,792 shares of Class B shares in the
amount of $715,294 to 126,150 shares of Class Q shares in the amount of
$715,294.
(2)Includes automatic conversion of 379,334 shares of Class C shares in the
amount of $2,191,418 to 379,497 shares of Class Q shares in the amount of
$2,191,418.
(3)See Note 1.
Note 4. Purchases and Sales of Securities
During the six months ended June 30, 2010, the Fund's cost of purchases and
proceeds from sale of long-term investments, including loan principal
paydowns were $174,521,530 and $72,417,904, respectively.
Note 5. Investment Advisory Agreement and Other Transactions with Affiliates
The Fund has entered into an Investment Advisory and Management Agreement
(the "Advisory Agreement") with SunAmerica. Pursuant to the Advisory
Agreement, SunAmerica provides continuous supervision of the Fund and
administers its corporate affairs, subject to the general review and
oversight of the Board. In connection therewith, SunAmerica furnishes the
Fund with office facilities, maintains certain of the Fund's books and
records and pays the salaries and expenses of all personnel, including
officers of the Fund who are employees of SunAmerica and its affiliates.
SunAmerica also selects, contracts with and compensates the subadviser to
manage the Fund's assets. The Fund will pay SunAmerica a monthly advisory
fee at the following annual rates, based on the average daily net assets of
the Fund: 0.85% on the first $1 billion; 0.80% on the next $1 billion; and
0.75% thereafter.
Wellington Management Company, LLP ("Wellington") acts as subadviser to the
Fund pursuant to a Subadvisory Agreement with SunAmerica. Under the
Subadvisory Agreement, Wellington manages the investment and reinvestment of
the Fund's assets. For compensation for its services as subadviser,
Wellington is entitled to receive from SunAmerica a monthly fee payable at
the following annual rates: 0.30% of average daily net assets on the first
$500 million and 0.25% thereafter. The fee paid to the subadviser is paid by
SunAmerica and not the Fund.
25
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2010 -- (UNAUDITED)
(CONTINUED)
Pursuant to the Administrative Services Agreement (the "Administrative
Agreement") SunAmerica acts as the Fund's administrator and is responsible
for providing and supervising the performance by others, of administrative
services in connection with the operations of the Fund, subject to
supervision by the Fund's Board. For its services, SunAmerica receives an
annual fee equal to 0.20% of average daily net assets of the Fund. For the
six months ended June 30, 2010, the Fund incurred administration fees in the
amount of $300,883.
The Fund has entered into a Distribution Agreement with SunAmerica Capital
Services, Inc. ("SACS" or the "Distributor"), an affiliate of the Adviser.
The Fund has adopted a Distribution Plan on behalf of each class of shares
(each a "Plan" and collectively, the "Plans") in accordance with the
provisions of Rule 12b-1 under the 1940 Act, hereinafter referred to as the
"Class A Plan" and "Class C Plan". In adopting the Plans, the Board
determined that there was a reasonable likelihood that each such Plan would
benefit the Fund and the shareholders of the respective class. The sales
charge and distribution fees of a particular class will not be used to
subsidize the sale of shares of any other class.
Under the Class A Plan and Class C Plan, the Distributor receives payments
from the Fund at an annual rate of 0.10% and 0.50%, respectively, of the
average daily net assets of the Fund's Class A and Class C shares to
compensate the Distributor and certain securities firms for providing sales
and promotional activities for distributing that class of shares. The
distribution costs for which the Distributor may be compensated include fees
paid to broker- dealers that have sold Fund shares, commissions and other
expenses such as those incurred for sales literature, prospectus printing
and distribution and compensation to wholesalers. It is possible that in any
given year the amount paid to the Distributor under each Class' Plan may
exceed the Distributor's distribution costs as described above. The Plans
provide that the Class A and Class C shares of the Fund will pay the
Distributor an account maintenance fee up to an annual rate of 0.25% of the
aggregate average daily net assets of such class of shares for payments to
compensate the Distributor and certain securities firms for account
maintenance activities. Accordingly, for the six months ended June 30, 2010,
SACS received fees (see Statement of Operations) based upon the
aforementioned rates. For the six months ended June 30, 2010 SACS received
sales charges on Class A shares of $220,046, of which $36,452 was reallowed
to affiliated broker-dealers and $142,539 to non-affiliated broker-dealers.
In addition, SACS receives the proceeds of early withdrawal charges paid by
investors in connection with certain redemptions of Class A and Class C
shares. For the six months ended June 30, 2010, SACS received early
withdrawal charges of $21,226. For the six months ended June 30, 2010 SACS
voluntarily waived fees for the following classes: Class A $123,226 and
Class C $189,447. The fee waiver and expense reimbursement will continue
indefinitely but may be terminated at any time at the option of SACS.
The Fund has entered into a Service Agreement with SunAmerica Fund Services,
Inc. ("SAFS") an affiliate of SunAmerica. Under the Service Agreement, SAFS
performs certain shareholder account functions by assisting the Fund's
transfer agent in connection with the services that it offers to the
shareholders of the Fund. The Service Agreement, which permits the Fund to
compensate SAFS for services rendered based upon an annual rate of 0.22% of
average daily net assets, is approved annually by the Board of Directors.
For the six months ended June 30, 2010, the Fund incurred the following
expenses, which are included in the transfer agent fees and expenses payable
on the Statement of Assets and Liabilities and in transfer agent fees and
expenses in the Statement of Operations to compensate SAFS pursuant to the
terms of the Service Agreement.
PAYABLE AT
EXPENSE JUNE 30, 2010
-------- -------------
Class A....................... $171,241 $35,574
Class C....................... 159,730 28,838
SunAmerica has contractually agreed to waive fees and/or reimburse expenses
to the extent necessary to cap the Fund's annual operating expenses at 1.45%
for Class A and 1.75% for Class C, of average daily net assets. Annual Fund
operating expenses do not include extraordinary expenses, as determined
under generally accepted accounting principles or acquired fees and
expenses. The expense reimbursements and fee waivers will continue in effect
indefinitely, unless terminated by the Board, including a majority of the
directors that are not deemed to be
26
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2010 -- (UNAUDITED)
(CONTINUED)
"interested persons" of the Fund, as defined by Section 2(a)(19) of the 1940
Act ("Disinterested Directors"). For the six months ended June 30, 2010,
SunAmerica waived fees and reimbursed expenses as follows: Class A $201,914
and Class C $184,411.
On March 4, 2009, AIG, the ultimate parent of SunAmerica, SACS and SAFS,
issued and sold to the AIG Credit Facility Trust, a trust established for
the sole benefit of the United States Treasury (the "Trust"), 100,000 shares
of AIG's Series C Perpetual, Convertible, Participating Preferred Stock (the
"Stock") for an aggregate purchase price of $500,000, with an understanding
that additional and independently sufficient consideration was also
furnished to AIG by the Federal Reserve Bank of New York (the "FRBNY") in
the form of its lending commitment (the "Credit Facility") under the Credit
Agreement, dated as of September 22, 2008, between AIG and the FRBNY. The
Stock has preferential liquidation rights over AIG common stock, and, to the
extent permitted by law, votes with AIG's common stock on all matters
submitted to AIG's shareholders. As of June 30, 2010, the Trust had
approximately 79.7% of the aggregate voting power of AIG's common stock and
is entitled to approximately 79.7% of all dividends paid on AIG's common
stock, in each case treating the Stock as if converted. The Stock will
remain outstanding even if the Credit Facility is repaid in full or
otherwise terminates.
Note 6. Federal Income Taxes
The following details the tax basis distributions as well as the components
of distributable earnings. The tax basis components of distributable
earnings differ from the amounts reflected in the Statement of Assets and
Liabilities by temporary book/tax differences primarily arising from wash
sales, post October losses, and treatment of defaulted securities.
DISTRIBUTABLE EARNINGS TAX DISTRIBUTIONS
----------------------------------------- -------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 2009 FOR THE YEAR ENDED DECEMBER 31, 2009
----------------------------------------- -------------------------------------
LONG-TERM GAINS/ UNREALIZED LONG-TERM
ORDINARY CAPITAL AND APPRECIATION/ ORDINARY CAPITAL
INCOME OTHER LOSSES (DEPRECIATION) INCOME GAINS
--------- ---------------- -------------- ----------- ---------
$449,694 $(59,497,524) $(23,068,956) $8,860,311 $ --
CAPITAL LOSS CARRYFORWARDS. At December 31, 2009 capital loss carryforward
available to offset future recognized gains were $59,497,524 with $7,736,363
expiring in 2010, $4,956,144 expiring in 2011, $3,498,813 expiring in 2012,
$16,003,027 expiring in 2016, and $27,303,177 expiring in 2017.
Unrealized appreciation and depreciation in the value of investments at
June 30, 2010 for federal income tax purposes were as follows:
Cost (tax basis).............. $394,944,042
============
Gross unrealized appreciation. $ 6,979,073
Gross unrealized depreciation. (27,367,606)
------------
Net unrealized depreciation... $(20,388,533)
============
Note 7. Line of Credit
The SunAmerica family of mutual funds has established a $75 million
committed and $50 million uncommitted line of credit with State Street
Bank and Trust Company, the Fund's custodian. Interest is currently payable
at the higher the Federal Funds Rate or London Interbank Offered Rate plus
125 points on the committed line and State Street Bank and Trust Company's
discretionary bid rate on the uncommitted line of credit. There is also a
commitment fee of 15 basis points per annum on the daily unused portion of
the committed line of credit which is included in the other expenses line on
the Statement of Operations. Borrowings under the line of credit will
commence when the respective Fund's cash shortfall exceeds $100,000. For the
six months ended June 30, 2010, the Fund had borrowings outstanding for 44
days under the line of credit and incurred $2,070 in interest charges
related to these
27
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2010 -- (UNAUDITED)
(CONTINUED)
borrowings. The Fund's average amount of debt under the line of credit for
the days utilized was $1,140,227 at a weighted average interest rate of
1.48%. At June 30, 2010, there were no borrowings outstanding.
Note 8. Interfund Lending
Pursuant to the exemptive relief granted by the Securities and Exchange
Commission (the "Commission"), the Fund is permitted to participate in an
interfund lending program among investment companies advised by SunAmerica
or an affiliate. The interfund lending program allows the participating
funds to borrow money from and lend money to each other for temporary or
emergency purposes. An interfund loan will be made under this facility only
if the participating funds receive a more favorable interest rate than would
otherwise be available from a typical bank for a comparable transaction. For
the six months ended June 30, 2010, the Fund did not participate in this
program.
Note 9. Investment Concentration
The Fund invests primarily in participations and assignments, or acts 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, the Fund may
incur certain costs and delays in receiving payment, or may suffer a loss of
principal and/or interest. When the 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, the Fund is subject to the credit risk of
the borrower, selling participant, lender or other persons positioned
between the Fund and the borrower.
Note 10. Unfunded Loan Commitments
At June 30, 2010, the Fund had the following unfunded loan commitment which
could be extended at the option of the Borrower:
MATURITY PRINCIPAL
NAME TYPE DATE AMOUNT
---- --------- -------- ----------
Quad/Graphics, Inc...................... Term Loan 04/23/16 $2,030,000
28
[LOGO] AIG Sun America
Mutual Funds
HARBORSIDE FINANCIAL CENTER
3200 PLAZA 5
JERSEY CITY, NJ 07311-4992
DIRECTORS CUSTODIAN DISCLOSURE OF QUARTERLY
Dr. Judith L. Craven State Street Bank and PORTFOLIO HOLDINGS
William F. Devin Trust Company The Fund is required to
Samuel M. Eisenstat P.O. Box 5607 file its com-plete
Stephen J. Gutman Boston, MA 02110 schedule of portfolio
Peter A. Harbeck holdings with the U.S.
William J. Shea VOTING PROXIES ON FUND Securities and Exchange
PORTFOLIO SECURITIES Commission for its first
OFFICERS A description of the and third fiscal quarters
John T. Genoy, President policies and proce-dures on Form N-Q. The Fund's
and Chief Executive that the Fund uses to Forms N-Q are available
Officer determine how to vote on the U.S. Securities
Donna M. Handel, proxies related to and Exchange Commission's
Treasurer securities held in the website at
James Nichols, Vice Fund's portfolio, which http://www.sec.gov. You
President is available in the can also review and
Cynthia A. Fund's Statement of obtain copies of the
Gibbons-Skrehot, Vice Additional Information Forms N-Q at the U.S.
President and Chief may be ob-tained without Securities and Exchange
Compliance Officer charge upon request, by Commission's Public
Gregory N. Bressler, calling (800) 858-8850. Refer-ence Room in
Chief Legal This in-formation is also Washington, DC
Officer and Secretary available from the EDGAR (information on the
Gregory R. Kingston, database on the U.S. operation of the Public
Vice President and Secu-rities and Exchange Reference Room may be
Assistant Treasurer Commission's website at ob-tained by calling
Nori L. Gabert, Vice http://www.sec.gov. 1-800-SEC-0330).
President and
Assistant Secretary DELIVERY OF SHAREHOLDER PROXY VOTING RECORD ON
John E. McLean, DOCUMENTS FUND PORTFOLIO SECURITIES
Assistant Secretary The Fund has adopted a Information regarding how
Kathleen Fuentes, policy that allows it to the Fund voted proxies
Assistant Secretary send only one copy of the relating to securities
Diedre L. Shepherd, Fund's prospectus, proxy held in the Fund's
Assistant Treasurer material, annual report portfolio during the most
Matthew J. Hackethal, and semi-annual report recent twelve month
Anti-Money Laundering (the "shareholder period ended June 30 is
Compliance Officer documents") to available, once filed
shareholders with with the U.S. Securities
INVESTMENT ADVISER multiple accounts and Exchange Commis-sion,
SunAmerica Asset residing at the same without charge, upon
Management Corp. "household." This request, by calling
Harborside Financial practice is called (800) 858-8850 or on the
Center householding and reduces U.S. Securities and
3200 Plaza 5 Fund expenses, which Exchange Commission's
Jersey City, NJ benefits you and other website at
07311-4992 shareholders. Unless the http://www.sec.gov.
Fund receives
DISTRIBUTOR instructions to the This report is submitted
SunAmerica Capital con-trary, you will only solely for the general
Services, Inc. receive one copy of the information of
Harborside Financial shareholder documents. shareholders of the Fund.
Center The Fund will continue to Distribution of this
3200 Plaza 5 household the report to persons other
Jersey City, NJ share-holder documents than shareholders of the
07311-4992 indefinitely, until we Fund is authorized only
are instructed otherwise. in connection with a
SHAREHOLDER SERVICING If you do not wish to currently effective
AGENT participate in prospectus, setting forth
SunAmerica Fund householding, please details of the Fund,
Services, Inc. contact Shareholder which must precede or
Harborside Financial Services at (800) accompany this report.
Center 858-8850 ext. 6010 or
3200 Plaza 5 send a written request The accompanying report
Jersey City, NJ with your name, the name has not been audited by
07311-4992 of your fund(s) and your independent accountants
account number(s) to and accordingly no
TRANSFER AGENT SunAmerica Mutual Funds opinion has been
State Street Bank and c/o BFDS, P.O. Box expressed thereon.
Trust Company 219186, Kansas City MO,
P.O. Box 219373 64121-9186. We will
Kansas City, MO 64141 resume individual
mailings for your account
within thirty (30) days
of receipt of your
request.
29
[GRAPHIC]
GO PAPERLESS!!
DID YOU KNOW THAT YOU HAVE THE OPTION TO
RECEIVE YOUR SHAREHOLDER REPORTS ONLINE?
By choosing this convenient service, you will no longer receive paper copies of
Fund documents such as annual reports, semi-annual reports, prospectuses and
proxy statements in the mail. Instead, you are provided with quick and easy
access to this information via the Internet.
Why Choose Electronic Delivery?
IT'S QUICK -- Fund documents will be received faster than via traditional mail.
IT'S CONVENIENT -- Elimination of bulky documents from personal files.
IT'S COST EFFECTIVE -- Reduction of your Fund's printing and mailing costs.
TO SIGN UP FOR ELECTRONIC DELIVERY, FOLLOW
THESE SIMPLE STEPS:
1 GO TO
WWW.SUNAMERICAFUNDS.COM
2
CLICK ON THE LINK TO "GO PAPERLESS!!"
The email address you provide will be kept strictly confidential. Once your
enrollment has been processed, you will begin receiving email notifications
when anything you receive electronically is available online.
You can return to www.sunamericafunds.com at any time to change your email
address, edit your preferences or to cancel this service if you choose to
resume physical delivery of your Fund documents.
Please note - this option is only available to accounts opened through the
Funds.
FOR INFORMATION ON RECEIVING THIS REPORT ONLINE, SEE INSIDE BACK COVER.
DISTRIBUTED BY:
SUNAMERICA CAPITAL SERVICES, INC.
Investors should carefully consider a Fund's investment objectives, risks,
charges and expenses before investing. The prospectus, containing this and
other important information, can be obtained from your financial adviser, the
SunAmerica Sales Desk at 800-858-8850, ext. 6003, or at
www.sunamericafunds.com. Read the prospectus carefully before investing.
WWW.SUNAMERICAFUNDS.COM
SFSAN - 6/10
[LOGO]
Sun America
Mutual Funds
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
Included in Item 1 to the Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board of Directors that were
implemented after the registrant last provided disclosure in response to
the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407)
(as required by 22(b)(15)) of Schedule 14A (17 CFR 240.14a- 101), or this
Item 10.
Item 11. Controls and Procedures.
(a) An evaluation was performed within 90 days of the filing of this
report, under the supervision and with the participation of the
registrant's management, including the President and Treasurer, of the
effectiveness of the design and operation of the registrant's
disclosure controls and procedures (as defined under Rule 30a-3(c)
under the Investment Company Act of 1940 (17 CFR 270.30a-3(c))). Based
on that evaluation, the registrant's management, including the
President and Treasurer, concluded that the registrant's disclosure
controls and procedures are effective.
(b) There was no change in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940 (17 CFR 270.30a-3(d))) that occurred during the
registrant's last fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially
affect, the registrant's internal contro1 over financial reporting.
Item 12. Exhibits.
(a) (1) Not applicable.
(2) Certifications pursuant to Rule 30a-2(a) under the Investment
Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit
99.CERT.
(3) Not applicable.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(a)) and Section 906 of the Sarbanes-
Oxley Act of 2002 attached hereto as Exhibit 99.906.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
SunAmerica Senior Floating Rate Fund, Inc.
By: /s/ John T. Genoy
------------------------------------
John T. Genoy
President
Date: September 03, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ John T. Genoy
------------------------------------
John T. Genoy
President
Date: September 03, 2010
By: /s/ Donna M. Handel
------------------------------------
Donna M. Handel
Treasurer
Date: September 03, 2010