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 811-4708
---------------------------------------------
SunAmerica Income Funds
--------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Harborside Financial Center, 3200 Plaza 5 Jersey City, NJ 07311
--------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
John T. Genoy
Senior Vice President
SunAmerica Asset Management, LLC
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: March 31
--------------------------
Date of reporting period: September 30, 2015
-------------------------
Item 1. Reports to Stockholders
SEMI-ANNUAL REPORT 2015
SUNAMERICA
Income Funds
[PHOTO]
[LOGO]
TABLE OF CONTENTS
SHAREHOLDER LETTER.......................................... 2
EXPENSE EXAMPLE............................................. 4
STATEMENTS OF ASSETS AND LIABILITIES........................ 6
STATEMENTS OF OPERATIONS.................................... 8
STATEMENTS OF CHANGES IN NET ASSETS......................... 9
FINANCIAL HIGHLIGHTS........................................ 11
PORTFOLIO OF INVESTMENTS.................................... 14
NOTES TO FINANCIAL STATEMENTS............................... 66
SHAREHOLDER LETTER -- (unaudited)
Dear Shareholders,
We are pleased to present this semi-annual update for the SunAmerica Income
Funds for the six months ended September 30, 2015. It was a period wherein
fixed income market performance was primarily driven by shifting expectations
about global economic growth and the timing of a potential Federal Reserve (the
"Fed") interest rate hike, along with concerns surrounding geopolitical events
and falling commodity prices. For the semi-annual period overall, the Barclays
U.S. Aggregate Bond Index*, a broad measure of the U.S. fixed income market,
returned -0.47%.
As the semi-annual period began in April 2015, volatility surged across global
markets. Positive economic growth, especially in developed economies, and
accommodative central bank policies supported markets, while the risk of a
Greek exit from the Eurozone rose considerably. Government bond yields moved
sharply higher. Also, most yield curves steepened, amidst brightening economic
outlooks in the U.S. and the Eurozone, easing global deflation fears, and the
Fed appearing to be on track to raise interest rates later in 2015. Greece took
center stage at the end of the second quarter of 2015 after debt negotiations
broke down, and the country defaulted on its payment to the International
Monetary Fund, triggering a risk-off tone throughout global financial markets.
Most of the major fixed income sectors posted negative absolute returns during
the second quarter of 2015, as government bond yields rose, while performance
versus duration-equivalent government bonds was mixed. Emerging market debt,
U.S. high yield corporate bonds and asset-backed securities outpaced government
bond yields, but U.S. investment grade corporate bonds, commercial and
residential mortgage-backed securities, and European investment grade and high
yield corporate bonds underperformed.
Though market concerns about Greece receded following a resolution with its
creditors, risk aversion intensified in the third quarter of 2015, with
financial markets - both fixed income and equities - coming under significant
pressure amid fresh worries about the global economic outlook. The unexpected
devaluation in China's currency rattled global financial markets, deepening
fears about the Chinese economic slowdown and potential spillover effects.
Falling commodity prices and uncertainty regarding the timing of the first Fed
rate hike further muddied the waters. In contrast to negative news about China
and other emerging markets, data on developed markets was generally positive.
Still, the Fed chose to leave rates unchanged at its September meeting, citing
unfavorable global developments, modestly tighter financial conditions and low
inflation. Global government bond yields declined across most developed market
economies as China's weakness, Greece's ongoing bailout saga and uncertainty
about the timing of Fed tightening bolstered demand for safe-haven assets.
Emerging market sovereign bond yields diverged. Most spread, or non-government
bond, sectors posted positive absolute returns amid lower interest rates but
underperformed duration-equivalent government bonds. The major exception was
U.S. corporate bonds, especially high yield corporate bonds, which generated
negative absolute returns during the third quarter of 2015. Corporate spreads
widened on rising concerns that the deterioration in China's economic growth
outlook would have a meaningful impact on commodity prices and, more broadly,
on global economic growth.
For the semi-annual period overall, U.S. Treasury securities posted positive
returns, although the yield on the 10-year U.S. Treasury rose approximately 12
basis points+ to 2.04% by the end of September 2015. The U.S. Treasury yield
curve, or spectrum of maturities, steepened during the six months ended
September 30, 2015, as longer-term yields rose more than intermediate-term
yields, and shorter-term yields edged down. Non-U.S. Treasury sectors generated
mixed performance. Corporate bonds, both high yield and investment grade,
underperformed U.S. Treasuries, as did Treasury inflation protected securities
(TIPS) and emerging market debt, each sector posting negative absolute returns.
Asset-backed securities, commercial mortgage-backed securities and residential
mortgage-backed securities outperformed U.S. Treasuries, albeit modestly,
posting positive absolute returns. Sovereign international bonds performed
relatively in line with U.S. Treasuries during the semi-annual period.
On the following pages, you will find financial statements and portfolio
information for each of the SunAmerica Income Funds during the semi-annual
period ended September 30, 2015.
2
We thank you for being a part of the SunAmerica Income Funds. We value your
ongoing confidence in us and look forward to serving your investment needs in
the future. As always, if you have any questions regarding your investments,
please contact your financial adviser or get in touch us directly at
800-858-8850 or www.safunds.com.
Sincerely,
THE SUNAMERICA INCOME FUNDS INVESTMENT PROFESSIONALS
Timothy Campion Robert Vanden Assem David L. Albrycht
Andrew Doulos Anthony King Frank Ossino
Kara Murphy Dana Burns Jonathan Stanley
John Yovanovic
--------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
*The Barclays U.S. Aggregate Bond Index represents securities that are
SEC-registered, taxable and dollar denominated. The index covers the U.S.
investment-grade fixed-rate bond market, with index components for government
and corporate securities, mortgage pass-through securities and asset-backed
securities. Indices are not managed and an investor cannot invest directly in
an index.
+A basis point is 1/100/th/ of a percentage point.
3
SUNAMERICA INCOME FUNDS
EXPENSE EXAMPLE -- SEPTEMBER 30, 2015 -- (UNAUDITED)
DISCLOSURE OF PORTFOLIO EXPENSES IN SHAREHOLDER REPORTS
As a shareholder of a fund (each, a "Fund" and collectively the "Funds") in the
SunAmerica Income Funds (the "Trust"), you may incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchase payments,
contingent deferred sales charges and (2) ongoing costs, including management
fees, distribution and service fees and other Fund expenses. The example set
forth below is intended to help you understand your ongoing costs (in dollars)
of investing in the Funds and to compare these costs with the ongoing costs of
investing in other mutual funds. The Example is based on an investment of
$1,000 invested at April 1, 2015 and held until September 30, 2015.
ACTUAL EXPENSES
The "Actual" section of the table provides information about actual account
values and actual expenses. You may use the information in these columns,
together with the amount you invested, to estimate the expenses that you paid
over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number in the column under the heading entitled "Expenses Paid During the Six
Months Ended September 30, 2015" to estimate the expenses you paid on your
account during this period. The "Expenses Paid During the Six Months Ended
September 30, 2015" column and the "Annualized Expense Ratio" column do not
include small account fees that may be charged if your account balance is below
$500 ($250 for retirement plan accounts). In addition, the "Expenses Paid
During the Six Months Ended September 30, 2015" column and the "Annualized
Expense Ratio" column do not include administrative fees that may apply to
qualified retirement plan accounts. See the Funds' prospectuses, your
retirement plan document and/or materials from your financial adviser for a
full description of these fees. Had these fees been included, the "Expenses
Paid During the Six Months Ended September 30, 2015" column would have been
higher and the "Ending Account Value" column would have been lower.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The "Hypothetical" section of the table provides information about hypothetical
account values and hypothetical expenses based on each Fund's actual expense
ratio and an annual rate of return of 5% before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare the ongoing costs of investing
in the Funds and other funds. To do so, compare this 5% hypothetical example
with the 5% hypothetical examples that appear in the shareholder reports of
other funds. The "Expenses Paid During the Six Months Ended September 30, 2015"
column and the "Annualized Expense Ratio" column do not include small account
fees that may be charged if your account balance is below $500 ($250 for
retirement plan accounts). In addition, the "Expenses Paid During the Six
Months Ended September 30, 2015" column and the "Annualized Expense Ratio"
column do not include administrative fees that may apply to qualified
retirement plan accounts and accounts held through financial institutions. See
the Funds' prospectuses, your retirement plan document and/or materials from
your financial adviser for a full description of these fees. Had these fees
been included, the "Expenses Paid During the Six Months Ended September 30,
2015" column would have been higher and the "Ending Account Value" column would
have been lower.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transaction costs, including sales
charges on purchase payments, contingent deferred sales charges, small account
fees and administrative fees, if applicable to your account. Please refer to
the Funds' prospectus, your retirement plan document and/or material from your
financial adviser, for more information. Therefore, the "Hypothetical" example
is useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transaction costs and other fees were included, your costs would have been
higher.
4
SUNAMERICA INCOME FUNDS
EXPENSE EXAMPLE -- SEPTEMBER 30, 2015 -- (UNAUDITED) (CONTINUED)
ACTUAL HYPOTHETICAL
------------------------------------------ ------------------------------------------
ENDING ACCOUNT
ENDING ACCOUNT EXPENSES PAID VALUE USING EXPENSES PAID
VALUE USING DURING THE A HYPOTHETICAL DURING THE
BEGINNING ACTUAL SIX MONTHS BEGINNING 5% ANNUAL SIX MONTHS
ACCOUNT VALUE RETURN AT ENDED ACCOUNT VALUE RETURN AT ENDED ANNUALIZED
AT APRIL 1, SEPTEMBER 30, SEPTEMBER 30, AT APRIL 1, SEPTEMBER 30, SEPTEMBER 30, EXPENSE
FUND 2015 2015 2015* 2015 2015 2015* RATIO*
---- ------------- -------------- ------------- ------------- -------------- ------------- ----------
U.S. GOVERNMENT SECURITIES
Class A#................. $1,000.00 $992.17 $ 4.93 $1,000.00 $1,020.05 $ 5.00 0.99%
Class C# ................ $1,000.00 $989.97 $ 8.16 $1,000.00 $1,016.80 $ 8.27 1.64%
STRATEGIC BOND
Class A.................. $1,000.00 $963.96 $ 6.58 $1,000.00 $1,018.30 $ 6.76 1.34%
Class B.................. $1,000.00 $957.82 $ 9.89 $1,000.00 $1,014.90 $10.18 2.02%
Class C ................. $1,000.00 $961.02 $ 9.76 $1,000.00 $1,015.05 $10.02 1.99%
Class W.................. $1,000.00 $961.83 $ 5.79 $1,000.00 $1,019.10 $ 5.96 1.18%
FLEXIBLE CREDIT
Class A#................. $1,000.00 $981.69 $ 7.18 $1,000.00 $1,017.75 $ 7.31 1.45%
Class C# ................ $1,000.00 $978.72 $10.39 $1,000.00 $1,014.50 $10.58 2.10%
Class W#................. $1,000.00 $982.78 $ 6.20 $1,000.00 $1,018.75 $ 6.31 1.25%
--------
* Expenses are equal to each Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 183 days then divided
by 366 days (to reflect the one-half year period). These ratios do not
reflect transaction costs, including sales charges on purchase payments,
contingent deferred sales charges, small account fees and administrative
fees, if applicable to your account. Please refer to your Prospectus, your
retirement plan documents and/or materials from your financial adviser for
more information.
# During the stated period, the investment advisor either waived a portion of
or all of the fees and assumed a portion of or all expenses for the Funds.
As a result, if these fees and expenses had not been waived or assumed, the
"Actual/Hypothetical Ending Account Value" would have been lower and the
"Actual/Hypothetical Expenses Paid During the Six Months Ended September 30,
2015" and the "Annualized Expense Ratio" would have been higher.
5
SUNAMERICA INCOME FUNDS
STATEMENTS OF ASSETS AND LIABILITIES -- SEPTEMBER 30, 2015 --
(UNAUDITED)
U.S. GOVERNMENT STRATEGIC FLEXIBLE
SECURITIES BOND CREDIT
FUND FUND FUND
--------------- ------------ ------------
ASSETS:
Investments at value (unaffiliated)*........................ $190,001,717 $408,086,378 $238,395,189
Repurchase agreements (cost approximates value)............. 5,688,000 2,169,000 --
------------ ------------ ------------
Total investments.......................................... 195,689,717 410,255,378 238,395,189
------------ ------------ ------------
Cash........................................................ 582 -- 5,374,822
Foreign cash*............................................... -- 699,779 7,133
Receivable for:
Shares of beneficial interest sold......................... 422,819 706,525 3,814,912
Dividends and interest..................................... 747,176 6,026,677 2,551,428
Investments sold........................................... -- 5,803,448 1,528,669
Prepaid Expenses and other assets........................... 2,141 2,427 2,135
Due from investment adviser for expense reimbursements/fee
waivers.................................................... 68,954 -- 26,941
Unrealized appreciation on forward foreign currency
contracts.................................................. -- 838,981 --
------------ ------------ ------------
Total Assets................................................ 196,931,389 424,333,215 251,701,229
------------ ------------ ------------
LIABILITIES:
Payable for:
Shares of beneficial interest redeemed..................... 174,173 873,594 771,964
Investments purchased...................................... 3,040,313 7,079,748 5,804,680
Investment advisory and management fees.................... 102,727 226,073 146,952
Distribution and service maintenance fees.................. 69,604 225,130 93,253
Transfer agent fees and expenses........................... 42,655 89,243 51,311
Trustees' fees and expenses................................ 1,326 2,809 800
Other accrued expenses..................................... 69,418 146,097 79,446
Dividends payable........................................... 15,686 171,158 175,890
Due to custodian............................................ -- 828,714 --
Unrealized depreciation on forward foreign currency
contracts.................................................. -- 29,600 --
------------ ------------ ------------
Total Liabilities........................................... 3,515,902 9,672,166 7,124,296
------------ ------------ ------------
Net Assets.................................................. $193,415,487 $414,661,049 $244,576,933
============ ============ ============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $0.01........................ $ 202,075 $ 1,256,641 $ 732,478
Paid-in capital............................................. 198,714,634 500,580,959 313,809,979
------------ ------------ ------------
198,916,709 501,837,600 314,542,457
Accumulated undistributed net investment income (loss)...... (1,167,466) 686,687 485,372
Accumulated undistributed net realized gain (loss) on
investments, futures contracts, options contracts,
securities sold short and foreign exchange transactions.... (10,853,060) (62,537,845) (59,726,845)
Unrealized appreciation (depreciation) on investments....... 6,519,304 (26,119,101) (10,723,186)
Unrealized foreign exchange gain (loss) on other assets and
liabilities................................................ -- 793,708 (865)
------------ ------------ ------------
Net Assets.................................................. $193,415,487 $414,661,049 $244,576,933
============ ============ ============
*Cost
Investment securities (unaffiliated)....................... $183,482,413 $434,205,479 $249,118,375
============ ============ ============
Foreign cash............................................... $ -- $ 723,468 $ 7,998
============ ============ ============
See Notes to Financial Statements
6
SUNAMERICA INCOME FUNDS
STATEMENTS OF ASSETS AND LIABILITIES -- SEPTEMBER 30, 2015 --
(UNAUDITED) (CONTINUED)
U.S. GOVERNMENT STRATEGIC FLEXIBLE
SECURITIES BOND CREDIT
FUND FUND FUND
--------------- ------------ ------------
CLASS A (UNLIMITED SHARES AUTHORIZED):
Net assets............................................................ $165,958,936 $185,074,340 $114,999,084
Shares of beneficial interest issued and outstanding.................. 17,337,136 56,162,958 34,509,652
Net asset value and redemption price per share (excluding any
applicable contingent deferred sales charge)......................... $ 9.57 $ 3.30 $ 3.33
Maximum sales charge (4.75% of offering price)........................ 0.48 0.16 0.17
------------ ------------ ------------
Maximum offering price to public...................................... $ 10.05 $ 3.46 $ 3.50
============ ============ ============
CLASS B (UNLIMITED SHARES AUTHORIZED):
Net assets............................................................ $ -- $ 33,474,829 $ --
Shares of beneficial interest issued and outstanding.................. -- 10,162,084 --
Net asset value, offering and redemption price per share (excluding
any applicable contingent deferred sales charge)..................... $ -- $ 3.29 $ --
============ ============ ============
CLASS C (UNLIMITED SHARES AUTHORIZED):
Net assets............................................................ $ 27,456,551 $163,692,580 $ 64,588,668
Shares of beneficial interest issued and outstanding.................. 2,870,386 49,495,617 19,261,391
Net asset value, offering and redemption price per share (excluding
any applicable contingent deferred sales charge)..................... $ 9.57 $ 3.31 $ 3.35
============ ============ ============
CLASS W (UNLIMITED SHARES AUTHORIZED):
Net assets............................................................ $ -- $ 32,419,300 $ 64,989,181
Shares of beneficial interest issued and outstanding.................. -- 9,843,468 19,476,739
Net asset value, offering and redemption price per share.............. $ -- $ 3.29 $ 3.34
============ ============ ============
See Notes to Financial Statements
7
SUNAMERICA INCOME FUNDS
STATEMENTS OF OPERATIONS -- FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2015
-- (UNAUDITED)
U.S. GOVERNMENT STRATEGIC FLEXIBLE
SECURITIES BOND CREDIT
FUND FUND FUND
--------------- ------------ -----------
INCOME:
Dividends (unaffiliated)............................................................ $ -- $ 24,923 $ 47,227
Interest (unaffiliated)............................................................. 1,977,684 10,889,741 6,009,231
----------- ------------ -----------
Total investment income*........................................................... 1,977,684 10,914,664 6,056,458
----------- ------------ -----------
EXPENSES:
Investment advisory and management fees............................................. 632,032 1,450,104 834,472
Distribution and service maintenance fees:
Class A............................................................................ 299,481 369,512 206,852
Class B............................................................................ -- 183,927 --
Class C............................................................................ 117,224 880,517 280,840
Service fees -- Class W............................................................. -- 22,622 36,869
Transfer agent fees:
Class A............................................................................ 207,840 247,594 140,145
Class B............................................................................ -- 43,719 --
Class C............................................................................ 29,566 201,227 64,231
Class W............................................................................ -- 35,623 54,814
Registration fees:
Class A............................................................................ 13,610 18,834 20,040
Class B............................................................................ -- 6,856 --
Class C............................................................................ 7,846 14,482 13,040
Class W............................................................................ -- 7,213 9,327
Custodian and accounting fees....................................................... 10,833 62,220 29,879
Reports to shareholders............................................................. 36,419 76,690 33,460
Audit and tax fees.................................................................. 28,538 35,468 35,533
Legal fees.......................................................................... 12,304 21,273 3,275
Trustees' fees and expenses......................................................... 5,049 12,760 4,549
Interest expense.................................................................... -- -- 1,015
Other expenses...................................................................... 10,363 23,256 30,195
----------- ------------ -----------
Total expenses before fee waivers, expense reimbursements and expense recoupments.. 1,411,105 3,713,897 1,798,536
Net (fees waived and expenses reimbursed)/recouped by investment advisor (Note 4).. (371,755) -- (44,574)
----------- ------------ -----------
Net expenses....................................................................... 1,039,350 3,713,897 1,753,962
----------- ------------ -----------
Net investment income (loss)....................................................... 938,334 7,200,767 4,302,496
----------- ------------ -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)................................ 85,290 (6,064,622) (1,575,082)
Net realized foreign exchange gain (loss) on other assets and liabilities............. -- (1,229,865) --
----------- ------------ -----------
Net realized gain (loss) on investments and foreign currencies........................ 85,290 (7,294,487) (1,575,082)
----------- ------------ -----------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)........ (2,693,473) (16,648,776) (8,006,886)
Change in unrealized foreign exchange gain (loss) on other assets and liabilities..... -- (446,724) 269
----------- ------------ -----------
Net unrealized gain (loss) on investments and foreign currencies...................... (2,693,473) (17,095,500) (8,006,617)
----------- ------------ -----------
Net realized and unrealized gain (loss) on investments and foreign currencies......... (2,608,183) (24,389,987) (9,581,699)
----------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $(1,669,849) $(17,189,220) $(5,279,203)
=========== ============ ===========
* Net of foreign withholding taxes on interest and dividends of....................... $ -- $ 572 $ 626
=========== ============ ===========
See Notes to Financial Statements
8
SUNAMERICA INCOME FUNDS
STATEMENTS OF CHANGES IN NET ASSETS -- (UNAUDITED)
U.S. GOVERNMENT
SECURITIES FUND
--------------------------
FOR THE
SIX MONTHS
ENDED FOR YEAR
SEPTEMBER 30, ENDED
2015 MARCH 31,
(UNAUDITED) 2015
------------- ------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)......................................... $ 938,334 $ 1,800,638
Net realized gain (loss) on investments and foreign currencies....... 85,290 3,245,020
Net unrealized gain (loss) on investments and foreign currencies..... (2,693,473) 1,678,618
------------ ------------
Net increase (decrease) in net assets resulting from operations....... (1,669,849) 6,724,276
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Class A)...................................... (1,490,573) (2,308,336)
Net investment income (Class B)*..................................... -- (50,109)
Net investment income (Class C)...................................... (128,187) (157,120)
Net investment income (Class W)...................................... -- --
Net realized gain on securities (Class A)............................ -- --
Net realized gain on securities (Class B)*........................... -- --
Net realized gain on securities (Class C)............................ -- --
Net realized gain on securities (Class W)............................ -- --
------------ ------------
Total distributions to shareholders................................... (1,618,760) (2,515,565)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS (NOTE 7)................................................ (14,711,916) 89,657,072
------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS............................... (18,000,525) 93,865,783
NET ASSETS:
Beginning of period................................................... 211,416,012 117,550,229
------------ ------------
End of period+........................................................ $193,415,487 $211,416,012
============ ============
+ Includes accumulated undistributed net investment income (loss)..... $ (1,167,466) $ (117,198)
============ ============
* See Note 1
See Notes to Financial Statements
9
SUNAMERICA INCOME FUNDS
STATEMENTS OF CHANGES IN NET ASSETS -- (UNAUDITED) (CONTINUED)
STRATEGIC BOND FUND FLEXIBLE CREDIT FUND
-------------------------- --------------------------
FOR THE FOR THE
SIX MONTHS SIX MONTHS
ENDED FOR THE YEAR ENDED FOR THE YEAR
SEPTEMBER 30, ENDED SEPTEMBER 30, ENDED
2015 MARCH 31, 2015 MARCH 31,
(UNAUDITED) 2015 (UNAUDITED) 2015
------------- ------------ ------------- ------------
INCREASE (DECREASE)
IN NET ASSETS
OPERATIONS:
Net investment
income (loss)...... $ 7,200,767 $ 16,287,877 $ 4,302,496 $ 5,545,088
Net realized gain
(loss) on
investments and
foreign currencies. (7,294,487) 4,597,232 (1,575,082) (674,503)
Net unrealized gain
(loss) on
investments and
foreign currencies. (17,095,500) (9,615,191) (8,006,617) (2,672,730)
------------ ------------ ------------ ------------
Net increase
(decrease) in net
assets resulting
from operations...... (17,189,220) 11,269,918 (5,279,203) 2,197,855
------------ ------------ ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income (Class A)... (4,058,279) (9,771,036) (2,336,947) (3,932,700)
Net investment
income (Class B)*.. (583,489) (1,366,990) -- (363,833)
Net investment
income (Class C)... (2,819,660) (6,089,494) (927,966) (1,350,467)
Net investment
income (Class W)... (604,897) (27,319) (1,020,692) (173,730)
Net realized gain on
securities
(Class A).......... -- -- -- --
Net realized gain on
securities
(Class B)*......... -- -- -- --
Net realized gain on
securities
(Class C).......... -- -- -- --
Net realized gain on
securities
(Class W).......... -- -- -- --
------------ ------------ ------------ ------------
Total distributions
to shareholders...... (8,066,325) (17,254,839) (4,285,605) (5,820,730)
------------ ------------ ------------ ------------
NET INCREASE
(DECREASE) IN NET
ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS (NOTE 7) (34,855,794) (19,429,831) 67,590,133 75,727,824
------------ ------------ ------------ ------------
TOTAL INCREASE
(DECREASE) IN NET
ASSETS............... (60,111,339) (25,414,752) 58,025,325 72,104,949
NET ASSETS:
Beginning of period... 474,772,388 500,187,140 186,551,608 114,446,659
------------ ------------ ------------ ------------
End of period+........ $414,661,049 $474,772,388 $244,576,933 $186,551,608
============ ============ ============ ============
+ Includes
accumulated
undistributed net
investment income
(loss)............... $ 686,687 $ 1,552,245 $ 485,372 $ 468,481
============ ============ ============ ============
* See Note 1
See Notes to Financial Statements
10
SUNAMERICA INCOME FUNDS
FINANCIAL HIGHLIGHTS
U.S. GOVERNMENT SECURITIES FUND
-------------------------------
NET GAIN
(LOSS) ON
NET INVESTMENTS DISTRIBUTIONS NET NET
ASSET (BOTH DIVIDENDS FROM NET ASSET ASSETS,
VALUE, NET REALIZED TOTAL FROM FROM NET REALIZED TOTAL VALUE, END OF
BEGINNING INVESTMENT AND INVESTMENT INVESTMENT GAINS ON DISTRI- END OF TOTAL PERIOD
PERIOD ENDED OF PERIOD INCOME(1) UNREALIZED) OPERATIONS INCOME INVESTMENTS BUTIONS PERIOD RETURN(2) (000'S)
------------ --------- ---------- ----------- ---------- ---------- ------------- ------- ------ --------- --------
CLASS A
-------
03/31/11 $ 9.55 $0.17 $ 0.13 $ 0.30 $(0.18) $(0.16) $(0.34) $ 9.51 3.12% $143,978
03/31/12 9.51 0.17 0.62 0.79 (0.22) (0.02) (0.24) 10.06 8.34(4) 118,434
03/31/13 10.06 0.14 0.05 0.19 (0.21) (0.13) (0.34) 9.91 1.84 121,807
03/31/14 9.91 0.14 (0.45) (0.31) (0.17) -- (0.17) 9.43 (3.11) 106,747
03/31/15 9.43 0.12 0.34 0.46 (0.16) -- (0.16) 9.73 4.94 187,417
09/30/15+ 9.73 0.05 (0.13) (0.08) (0.08) -- (0.08) 9.57 (0.78) 165,959
CLASS C
-------
03/31/11 $ 9.55 $0.11 $ 0.11 $ 0.22 $(0.11) $(0.16) $(0.27) $ 9.50 2.35% $ 13,161
03/31/12 9.50 0.11 0.61 0.72 (0.15) (0.02) (0.17) 10.05 7.64(4) 14,673
03/31/13 10.05 0.08 0.05 0.13 (0.14) (0.13) (0.27) 9.91 1.28 12,226
03/31/14 9.91 0.08 (0.46) (0.38) (0.11) -- (0.11) 9.42 (3.84) 7,295
03/31/15 9.42 0.06 0.34 0.40 (0.10) -- (0.10) 9.72 4.27 23,999
09/30/15+ 9.72 0.02 (0.12) (0.10) (0.05) -- (0.05) 9.57 (1.00) 27,457
RATIO
OF NET
RATIO OF INVESTMENT
EXPENSES INCOME TO
TO AVERAGE AVERAGE PORTFOLIO
NET ASSETS(3) NET ASSETS(3) TURNOVER
------------- ------------- ---------
0.99% 1.77% 254%
0.99 1.73 152
0.99 1.40 89
0.99 1.42 122
0.99 1.24 57
0.99(6) 1.05(6) 10
1.64% 1.12% 254%
1.64 1.08 152
1.64 0.76 89
1.64 0.77 122
1.64 0.61 57
1.64(6) 0.37(6) 10
--------
+ Unaudited
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load, but does
include expense reimbursements.
(3)Net of the following expense reimbursements, if applicable (based on average
net assets):
03/31/11 03/31/12 03/31/13 03/31/14 03/31/15 09/30/15+(6)
-------- -------- -------- -------- -------- ------------
U.S. Government Securities Fund Class A. 0.37% 0.39% 0.40% 0.40% 0.38% 0.37%
U.S. Government Securities Fund Class C. 0.44 0.46 0.45 0.57 0.50 0.44
(4)The Fund's performance figure was increased by less than 0.01% from gains on
the disposal of investments in violation of investment restrictions.
(6)Annualized
See Notes to Financial Statements
11
SUNAMERICA INCOME FUNDS
FINANCIAL HIGHLIGHTS -- (CONTINUED)
STRATEGIC BOND FUND
-------------------
NET GAIN
(LOSS) ON
NET INVESTMENTS DISTRIBUTIONS NET NET
ASSET (BOTH DIVIDENDS FROM NET ASSET ASSETS,
VALUE, NET REALIZED TOTAL FROM FROM NET REALIZED TOTAL VALUE, END OF
BEGINNING INVESTMENT AND INVESTMENT INVESTMENT GAINS ON DISTRI- END OF TOTAL PERIOD
PERIOD ENDED OF PERIOD INCOME(1) UNREALIZED) OPERATIONS INCOME INVESTMENTS BUTIONS PERIOD RETURN(2) (000'S)
-------------------- --------- ---------- ----------- ---------- ---------- ------------- ------- ------ --------- --------
CLASS A
-------
03/31/11 $3.33 $0.19 $ 0.15 $ 0.34 $(0.21) $-- $(0.21) $3.46 10.45% $255,546
03/31/12 3.46 0.16 0.02 0.18 (0.19) -- (0.19) 3.45 5.30 299,325
03/31/13 3.45 0.13 0.16 0.29 (0.14) -- (0.14) 3.60 8.64 336,759
03/31/14 3.60 0.14 (0.06) 0.08 (0.15) -- (0.15) 3.53 2.34 255,821
03/31/15 3.53 0.13 (0.04) 0.09 (0.13) -- (0.13) 3.49 2.70 235,093
09/30/15+ 3.49 0.06 (0.18) (0.12) (0.07) -- (0.07) 3.30 (3.60) 185,074
CLASS B
-------
03/31/11 $3.32 $0.16 $ 0.17 $ 0.33 $(0.19) $-- $(0.19) $3.46 10.04% $ 52,171
03/31/12 3.46 0.14 0.01 0.15 (0.16) -- (0.16) 3.45 4.60 52,000
03/31/13 3.45 0.11 0.15 0.26 (0.12) -- (0.12) 3.59 7.62 56,776
03/31/14 3.59 0.12 (0.05) 0.07 (0.13) -- (0.13) 3.53 1.95 46,462
03/31/15 3.53 0.10 (0.03) 0.07 (0.11) -- (0.11) 3.49 2.01 39,733
09/30/15+ 3.49 0.05 (0.20) (0.15) (0.05) -- (0.05) 3.29 (4.22) 33,475
CLASS C
-------
03/31/11 $3.34 $0.17 $ 0.16 $ 0.33 $(0.19) $-- $(0.19) $3.48 10.04% $250,040
03/31/12 3.48 0.14 0.02 0.16 (0.17) -- (0.17) 3.47 4.63 251,425
03/31/13 3.47 0.11 0.15 0.26 (0.12) -- (0.12) 3.61 7.62 270,965
03/31/14 3.61 0.12 (0.06) 0.06 (0.13) -- (0.13) 3.54 1.69 197,904
03/31/15 3.54 0.11 (0.04) 0.07 (0.11) -- (0.11) 3.50 2.05 184,282
09/30/15+ 3.50 0.05 (0.18) (0.13) (0.06) -- (0.06) 3.31 (3.90) 163,693
CLASS W
-------
01/29/15(4)-03/31/15 $3.48 $0.01 $ 0.02 $ 0.03 $(0.02) $-- $(0.02) $3.49 0.99% 15,664
09/30/15+ 3.49 0.06 (0.19) (0.13) (0.07) -- (0.07) 3.29 (3.82) 32,419
RATIO
OF NET
RATIO OF INVESTMENT
EXPENSES INCOME TO
TO AVERAGE AVERAGE PORTFOLIO
NET ASSETS NET ASSETS TURNOVER
---------- ---------- ---------
1.31% 5.50% 152%
1.31 4.72 144
1.30 3.70 166
1.31 4.01 158
1.30 3.62 137
1.34(5) 3.47(5) 56
1.98% 4.83% 152%
1.98 4.07 144
1.97 3.02 166
1.97 3.35 158
1.97 2.95 137
2.02(5) 2.79(5) 56
1.96% 4.85% 152%
1.96 4.09 144
1.94 3.05 166
1.96 3.37 158
1.94 2.98 137
1.99(5) 2.82(5) 56
1.20%(3)(5) 2.73%(3)(5) 137%
1.18(5) 3.60%(5) 56
--------
+ Unaudited
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load, but does
include expense reimbursements.
(3)Net of the following expense reimbursements, if applicable (based on average
net assets):
03/31/15
-------- -
Strategic Bond Fund Class W............. 0.69%
(4)Inception date of class.
(5)Annualized
See Notes to Financial Statements
12
SUNAMERICA INCOME FUNDS
FINANCIAL HIGHLIGHTS -- (CONTINUED)
FLEXIBLE CREDIT FUND
--------------------
NET GAIN
(LOSS) ON
NET INVESTMENTS DISTRIBUTIONS NET
ASSET (BOTH DIVIDENDS FROM NET ASSET NET ASSETS,
VALUE, NET REALIZED TOTAL FROM FROM NET REALIZED TOTAL VALUE, END OF
BEGINNING INVESTMENT AND INVESTMENT INVESTMENT GAINS ON DISTRI- END OF TOTAL PERIOD
PERIOD ENDED OF PERIOD INCOME(1) UNREALIZED) OPERATIONS INCOME INVESTMENT BUTIONS PERIOD RETURN(2) (000'S)
-------------------- --------- ---------- ----------- ---------- ---------- ------------- ------- ------ --------- -----------
CLASS A
-------
03/31/11 $3.36 $0.25 $ 0.16 $ 0.41 $(0.27) $-- $(0.27) $3.50 12.76% $ 76,156
03/31/12 3.50 0.23 (0.08) 0.15 (0.25) -- (0.25) 3.40 4.52 81,477
03/31/13 3.40 0.20 0.18 0.38 (0.20) -- (0.20) 3.58 11.42 74,175
03/31/14 3.58 0.19 0.00 0.19 (0.18) -- (0.18) 3.59 5.60 70,713
03/31/15 3.59 0.15 (0.11) 0.04 (0.17) -- (0.17) 3.46 1.06 127,508
09/30/15+ 3.46 0.07 (0.13) (0.06) (0.07) -- (0.07) 3.33 (1.83) 114,999
CLASS C
-------
03/31/11 $3.38 $0.23 $ 0.17 $ 0.40 $(0.25) $-- $(0.25) $3.53 12.33% $ 39,301
03/31/12 3.53 0.21 (0.09) 0.12 (0.23) -- (0.23) 3.42 3.56 36,723
03/31/13 3.42 0.18 0.18 0.36 (0.18) -- (0.18) 3.60 10.67 33,918
03/31/14 3.60 0.17 0.00 0.17 (0.16) -- (0.16) 3.61 4.92 30,595
03/31/15 3.61 0.13 (0.11) 0.02 (0.15) -- (0.15) 3.48 0.43 45,411
09/30/15+ 3.48 0.05 (0.12) (0.07) (0.06) -- (0.06) 3.35 (2.13) 64,589
CLASS W
-------
10/01/14(4)-03/31/15 $3.50 $0.06 $(0.01) $ 0.05 $(0.08) $-- $(0.08) $3.47 1.57% 13,632
09/30/15+ 3.47 0.07 (0.13) (0.06) (0.07) -- (0.07) 3.34 (1.72) 64,989
RATIO
OF NET
RATIO OF INVESTMENT
EXPENSES INCOME TO
TO AVERAGE AVERAGE PORTFOLIO
NET ASSETS(3) NET ASSETS(3) TURNOVER
------------- ------------- ---------
1.36% 7.47% 48%
1.36 6.72 52
1.36 5.82 44
1.36 5.41 49
1.41 4.50 74
1.45(5) 3.97(5) 30
2.01% 6.83% 48%
2.01 6.11 52
2.01 5.18 44
2.01 4.76 49
2.06 3.88 74
2.10(5) 3.32(5) 30
1.25%(5) 4.25%(5) 74%
1.25(5) 4.19(5) 30
--------
+ Unaudited
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load, but does
include expense reimbursements.
(3)Net of the following expense reimbursements, if applicable (based on average
net assets):
03/31/11 03/31/12 03/31/13 03/31/14 03/31/15 09/30/15+(5)
-------- -------- -------- -------- -------- ------------
Flexible Credit Fund Class A............ 0.16% 0.18% 0.16% 0.17% 0.19% 0.04%
Flexible Credit Fund Class C............ 0.16 0.19 0.16 0.18 0.20 0.05
Flexible Credit Fund Class W............ -- -- -- -- 1.12 0.03
(4)Inception date of class.
(5)Annualized
See Notes to Financial Statements
13
SUNAMERICA U.S. GOVERNMENT SECURITIES FUND
PORTFOLIO PROFILE -- SEPTEMBER 30, 2015 -- (UNAUDITED)
INDUSTRY ALLOCATION*
Government National Mtg. Assoc... 46.8%
United States Treasury Notes..... 24.0
Federal Home Loan Mtg. Corp...... 8.9
United States Treasury Bonds..... 8.5
Federal National Mtg. Assoc...... 8.4
Repurchase Agreement............. 2.9
Federal Farm Credit Bank......... 1.1
Federal Home Loan Bank........... 0.5
Small Business Administration.... 0.1
-----
101.2%
=====
CREDIT QUALITY+#
Aaa.......... 99.9%
Not Rated@... 0.1
-----
100.0%
=====
--------
*Calculated as a percentage of net assets
+Source: Moody's
#Calculated as a percentage of total debt issues
@Represents debt issues that either have no rating, or the rating is
unavailable from the data source.
14
SUNAMERICA U.S. GOVERNMENT SECURITIES FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
U.S. GOVERNMENT AGENCIES -- 65.8%
FEDERAL FARM CREDIT BANK -- 1.1%
0.75% due 05/30/2017.................. $ 2,000,000 $ 2,000,134
-----------
FEDERAL HOME LOAN BANK -- 0.5%
2.14% due 12/05/2022.................. 1,000,000 985,355
-----------
FEDERAL HOME LOAN MTG. CORP. -- 8.9%
1.00% due 05/14/2018.................. 2,000,000 2,002,014
1.10% due 10/05/2017.................. 10,000,000 10,001,040
3.50% due 08/01/2030.................. 4,979,362 5,267,857
-----------
17,270,911
-----------
FEDERAL NATIONAL MTG. ASSOC. -- 8.4%
1.25% due 09/28/2016.................. 10,000,000 10,080,070
2.25% due 10/17/2022.................. 1,000,000 999,061
2.50% due 11/01/2022.................. 5,073,775 5,220,664
-----------
16,299,795
-----------
GOVERNMENT NATIONAL MTG. ASSOC. -- 46.8%
2.50% due 08/20/2030.................. 3,000,000 3,079,022
3.50% due 11/15/2041.................. 756,982 792,982
3.50% due 03/15/2042.................. 543,160 570,835
3.50% due 06/15/2042.................. 3,461,714 3,637,120
3.50% due 07/15/2042.................. 1,187,027 1,247,304
3.50% due 02/20/2045.................. 1,834,102 1,924,759
4.00% due 03/15/2039.................. 328,690 350,712
4.00% due 04/15/2039.................. 191,517 204,468
4.00% due 06/15/2039.................. 810,246 864,180
4.00% due 12/15/2039.................. 391,186 417,262
4.00% due 08/15/2040.................. 384,249 409,865
4.00% due 09/15/2040.................. 676,109 722,573
4.00% due 11/15/2040.................. 601,728 643,368
4.00% due 12/15/2040.................. 965,197 1,033,902
4.00% due 02/15/2041.................. 505,844 539,936
4.00% due 03/15/2041.................. 326,413 348,903
4.00% due 07/15/2041.................. 615,836 657,745
4.00% due 08/15/2041.................. 1,247,999 1,333,967
4.00% due 09/15/2041.................. 2,469,525 2,636,726
4.00% due 10/15/2041.................. 1,102,927 1,179,108
4.00% due 11/15/2041.................. 3,436,932 3,672,314
4.00% due 12/15/2041.................. 1,338,744 1,430,653
4.00% due 01/15/2042.................. 2,628,343 2,813,871
4.00% due 02/15/2042.................. 1,622,654 1,734,169
4.00% due 03/15/2042.................. 415,090 443,732
4.00% due 06/15/2042.................. 689,440 735,394
4.50% due 05/15/2018.................. 166,146 171,686
4.50% due 08/15/2018.................. 171,411 177,348
4.50% due 09/15/2018.................. 512,548 533,662
4.50% due 10/15/2018.................. 655,330 679,755
4.50% due 09/15/2033.................. 572,004 625,396
4.50% due 03/15/2039.................. 174,135 188,792
4.50% due 04/15/2039.................. 171,829 186,416
4.50% due 05/15/2039.................. 716,383 778,906
4.50% due 06/15/2039.................. 2,392,538 2,602,033
4.50% due 07/15/2039.................. 1,168,270 1,270,139
4.50% due 09/15/2039.................. 349,815 380,154
4.50% due 10/15/2039.................. 279,754 303,601
4.50% due 11/15/2039.................. 321,809 349,625
4.50% due 12/15/2039.................. 951,329 1,033,357
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
GOVERNMENT NATIONAL MTG. ASSOC. (CONTINUED)
4.50% due 01/15/2040..................... $ 404,566 $ 439,957
4.50% due 02/15/2040..................... 1,966,606 2,139,206
4.50% due 03/15/2040..................... 1,059,116 1,152,401
4.50% due 04/15/2040..................... 1,112,406 1,208,643
4.50% due 05/15/2040..................... 409,840 444,335
4.50% due 06/15/2040..................... 533,360 579,175
4.50% due 07/15/2040..................... 748,734 811,755
4.50% due 08/15/2040..................... 220,003 239,377
4.50% due 09/15/2040..................... 183,561 199,909
4.50% due 11/15/2040..................... 276,080 300,609
4.50% due 01/15/2041..................... 330,948 359,959
4.50% due 02/15/2041..................... 366,861 398,311
4.50% due 03/15/2041..................... 2,320,401 2,522,517
4.50% due 04/15/2041..................... 1,346,249 1,461,256
4.50% due 05/15/2041..................... 393,223 426,673
4.50% due 06/15/2041..................... 935,026 1,023,476
4.50% due 07/15/2041..................... 168,148 182,315
4.50% due 08/15/2041..................... 808,838 878,606
4.50% due 04/20/2044..................... 1,303,031 1,402,634
5.00% due 04/15/2018..................... 628,539 654,412
5.00% due 05/15/2018..................... 139,074 143,782
5.00% due 08/15/2033..................... 593,635 657,955
5.00% due 10/15/2033..................... 1,029,091 1,140,275
5.00% due 05/15/2035..................... 319,584 357,543
5.00% due 08/15/2035..................... 555,589 621,677
5.00% due 03/15/2036..................... 251,596 280,419
5.00% due 05/15/2036..................... 134,226 150,477
5.00% due 09/15/2036..................... 302,529 337,138
5.00% due 10/15/2036..................... 181,487 201,002
5.00% due 01/15/2037..................... 464,147 515,591
5.00% due 02/15/2037..................... 562,354 625,669
5.00% due 03/15/2037..................... 122,031 134,162
5.00% due 04/15/2037..................... 1,056,071 1,172,810
5.00% due 04/15/2038..................... 752,891 829,658
5.00% due 05/15/2038..................... 385,604 425,858
5.00% due 08/15/2038..................... 1,031,886 1,143,592
5.00% due 01/15/2039..................... 325,665 360,922
5.00% due 02/15/2039..................... 184,667 203,947
5.00% due 03/15/2039..................... 267,495 297,480
5.00% due 04/15/2039..................... 254,421 280,985
5.00% due 07/20/2039..................... 1,818,282 2,021,722
5.00% due 08/15/2039..................... 549,864 610,611
5.00% due 10/15/2039..................... 1,259,439 1,400,460
5.00% due 11/15/2039..................... 1,035,191 1,148,984
5.00% due 12/15/2039..................... 879,032 971,736
5.00% due 04/15/2040..................... 1,020,454 1,124,194
5.00% due 05/15/2040..................... 1,844,629 2,034,600
5.00% due 07/20/2045..................... 978,754 1,094,166
5.50% due 06/15/2033..................... 1,079,421 1,234,804
5.50% due 07/15/2033..................... 181,323 204,854
5.50% due 10/15/2033..................... 243,887 276,744
5.50% due 01/15/2034..................... 795,757 911,220
5.50% due 02/15/2034..................... 337,903 384,647
5.50% due 04/20/2035..................... 690,287 779,275
5.50% due 09/15/2035..................... 574,170 663,575
5.50% due 10/15/2035..................... 505,219 571,637
5.50% due 02/15/2038..................... 232,849 261,525
15
SUNAMERICA U.S. GOVERNMENT SECURITIES FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
U.S. GOVERNMENT AGENCIES (CONTINUED)
GOVERNMENT NATIONAL MTG. ASSOC. (CONTINUED)
5.50% due 04/15/2038..................... $ 139,449 $ 156,027
5.50% due 05/15/2038..................... 140,197 157,189
5.50% due 09/15/2039..................... 123,019 138,004
5.50% due 03/15/2040..................... 230,488 258,553
5.50% due 08/15/2040..................... 166,970 186,819
6.00% due 04/15/2028..................... 242,204 279,658
6.00% due 08/15/2033..................... 375,815 432,715
6.00% due 12/15/2033..................... 156,897 181,295
6.00% due 07/15/2034..................... 177,719 199,674
6.00% due 12/15/2034..................... 133,237 153,511
6.00% due 09/20/2038..................... 1,854,547 2,078,174
6.50% due 10/15/2031..................... 134,407 155,009
Government National Mtg. Assoc. REMIC
Series 2010-104, Class NG
3.00% due 07/20/2038(1).................. 1,047,128 1,068,922
------------
90,552,512
------------
SMALL BUSINESS ADMINISTRATION -- 0.1%
6.30% due 06/01/2018..................... 128,956 137,015
------------
TOTAL U.S. GOVERNMENT AGENCIES
(cost $124,550,520)...................... 127,245,722
------------
U.S. GOVERNMENT TREASURIES -- 24.7%
UNITED STATES TREASURY BONDS -- 8.5%
2.50% due 02/15/2045..................... 1,000,000 920,599
4.25% due 11/15/2040..................... 8,000,000 10,085,832
4.75% due 02/15/2041..................... 4,000,000 5,424,792
------------
16,431,223
------------
UNITED STATES TREASURY NOTES -- 16.2%
0.88% due 11/15/2017..................... 2,000,000 2,007,084
1.25% due 10/31/2015..................... 2,000,000 2,001,562
1.50% due 07/31/2016..................... 16,000,000 16,152,496
2.00% due 02/15/2022..................... 5,000,000 5,100,455
2.00% due 02/15/2025..................... 5,000,000 4,980,470
3.13% due 05/15/2019..................... 1,000,000 1,070,990
------------
31,313,057
------------
TOTAL U.S. GOVERNMENT TREASURIES
(cost $43,807,975)....................... 47,744,280
------------
TOTAL LONG-TERM INVESTMENT SECURITIES
(cost $168,358,495)...................... 174,990,002
------------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
SHORT-TERM INVESTMENT SECURITIES -- 7.8%
U.S. GOVERNMENT TREASURIES -- 7.8%
United States Treasury Notes
1.25% due 10/31/2015
(cost $15,123,918).................... $15,000,000 $ 15,011,715
------------
REPURCHASE AGREEMENTS -- 2.9%
State Street Bank and Trust Co. Joint
Repurchase Agreement(2)
(cost $5,688,000)..................... 5,688,000 5,688,000
------------
TOTAL INVESTMENTS
(cost $189,170,413)(3)................ 101.2% 195,689,717
Liabilities in excess of other assets.... (1.2) (2,274,230)
----------- ------------
NET ASSETS 100.0% $193,415,487
=========== ============
--------
(1) Collateralized Mortgage Obligation
(2) See Note 3 for details of Joint Repurchase Agreements.
(3) See Note 6 for cost of investments on a tax basis.
REMIC --Real Estate Mortgage Investment Conduit
See Notes to Financial Statements
16
SUNAMERICA U.S. GOVERNMENT SECURITIES FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
The following is a summary of the inputs used to value the Fund's net assets as
of September 30, 2015 (see Note 3):
LEVEL 1 -- UNADJUSTED LEVEL 2 -- OTHER LEVEL 3 -- SIGNIFICANT
QUOTED PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS TOTAL
- --------------------- ----------------- ---------------------- ------------
ASSETS:
Investments at Value:*
U.S. Government Agencies......... $-- $127,245,722 $-- $127,245,722
U.S. Government Treasuries....... -- 47,744,280 -- 47,744,280
Short-Term Investment Securities. -- 15,011,715 -- 15,011,715
Repurchase Agreements............ -- 5,688,000 -- 5,688,000
--- ------------ --- ------------
TOTAL INVESTMENTS AT VALUE....... $-- $195,689,717 $-- $195,689,717
=== ============ === ============
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
The Fund's policy is to recognize transfers between Levels as of the end of the
reporting period. There were no transfers between Levels during the reporting
period.
See Notes to Financial Statements
17
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO PROFILE -- SEPTEMBER 30, 2015 -- (UNAUDITED)
INDUSTRY ALLOCATION*
Sovereign.............................. 9.3%
United States Treasury Notes........... 7.0
Diversified Banking Institutions....... 6.5
Banks-Commercial....................... 5.7
Oil Companies-Exploration & Production. 3.3
Telephone-Integrated................... 3.0
Electric-Integrated.................... 2.8
Federal National Mtg. Assoc............ 2.7
Pipelines.............................. 1.8
Time Deposits.......................... 1.7
Oil Companies-Integrated............... 1.6
Medical-Drugs.......................... 1.6
Federal Home Loan Mtg. Corp............ 1.4
Real Estate Investment Trusts.......... 1.4
United States Treasury Bonds........... 1.4
Cable/Satellite TV..................... 1.4
Medical-Hospitals...................... 1.1
Paper & Related Products............... 1.1
Cellular Telecom....................... 1.1
Airlines............................... 1.0
Casino Hotels.......................... 0.9
Diversified Financial Services......... 0.9
Commercial Services-Finance............ 0.8
Diversified Manufacturing Operations... 0.7
Auto-Cars/Light Trucks................. 0.7
Savings & Loans/Thrifts................ 0.7
Printing-Commercial.................... 0.7
Investment Management/Advisor Services. 0.6
Banks-Super Regional................... 0.6
Food-Retail............................ 0.6
Independent Power Producers............ 0.6
Publishing-Periodicals................. 0.6
Banks-Money Center..................... 0.6
Steel-Producers........................ 0.6
Food-Dairy Products.................... 0.6
Insurance-Multi-line................... 0.5
Finance-Consumer Loans................. 0.5
Telecom Services....................... 0.5
Containers-Metal/Glass................. 0.5
Repurchase Agreements.................. 0.5
Computers.............................. 0.5
Aerospace/Defense...................... 0.5
Insurance-Mutual....................... 0.5
Diversified Minerals................... 0.5
Finance-Auto Loans..................... 0.5
Retail-Restaurants..................... 0.5
Internet Connectivity Services......... 0.5
Disposable Medical Products............ 0.5
Real Estate Operations & Development... 0.4
Finance-Other Services................. 0.4
Multimedia............................. 0.4
Publishing-Newspapers.................. 0.4
Municipal Bonds & Notes................ 0.4
E-Commerce/Services.................... 0.4
Finance-Leasing Companies.............. 0.4
Chemicals-Specialty.................... 0.4
Gambling (Non-Hotel)................... 0.4
Machinery-Farming...................... 0.4
Satellite Telecom...................... 0.4
Chemicals-Diversified.................. 0.4
Airport Development/Maintenance.............. 0.3%
Auto-Heavy Duty Trucks....................... 0.3
Medical Labs & Testing Services.............. 0.3
Insurance-Life/Health........................ 0.3
Telecommunication Equipment.................. 0.3
Medical-Generic Drugs........................ 0.3
Oil Refining & Marketing..................... 0.3
Electronic Components-Semiconductors......... 0.3
Building-Residential/Commercial.............. 0.3
Aerospace/Defense-Equipment.................. 0.3
Beverages-Wine/Spirits....................... 0.3
Theaters..................................... 0.3
Wire & Cable Products........................ 0.3
SupraNational Banks.......................... 0.3
Containers-Paper/Plastic..................... 0.3
Computer Services............................ 0.3
Banks-Fiduciary.............................. 0.3
Auto/Truck Parts & Equipment-Original........ 0.3
Specified Purpose Acquisitions............... 0.3
Real Estate Management/Services.............. 0.3
Retail-Appliances............................ 0.3
Building Products-Cement..................... 0.3
Medical-Biomedical/Gene...................... 0.3
Enterprise Software/Service.................. 0.3
Finance-Credit Card.......................... 0.3
Oil-Field Services........................... 0.3
Agricultural Chemicals....................... 0.3
Coal......................................... 0.3
Oil & Gas Drilling........................... 0.3
Electric-Generation.......................... 0.3
Government National Mtg. Assoc............... 0.3
Food-Meat Products........................... 0.3
Distribution/Wholesale....................... 0.2
Metal-Iron................................... 0.2
Security Services............................ 0.2
Alternative Waste Technology................. 0.2
Banks-Special Purpose........................ 0.2
Finance-Commercial........................... 0.2
Rental Auto/Equipment........................ 0.2
Machinery-General Industrial................. 0.2
Retail-Discount.............................. 0.2
Retail-Drug Store............................ 0.2
Music........................................ 0.2
Food-Misc./Diversified....................... 0.2
Insurance-Reinsurance........................ 0.2
Batteries/Battery Systems.................... 0.2
Firearms & Ammunition........................ 0.2
Coatings/Paint............................... 0.2
Finance-Mortgage Loan/Banker................. 0.2
Electric-Distribution........................ 0.2
Semiconductor Components-Integrated Circuits. 0.2
Travel Services.............................. 0.2
Gold Mining.................................. 0.2
Financial Guarantee Insurance................ 0.2
Beverages-Non-alcoholic...................... 0.2
Publishing-Books............................. 0.2
Petrochemicals............................... 0.2
Cruise Lines................................. 0.2
Marine Services.............................. 0.2
Medical Products............................. 0.2
18
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO PROFILE -- SEPTEMBER 30, 2015 -- (UNAUDITED) (CONTINUED)
INDUSTRY ALLOCATION* (CONTINUED)
Mining Services........................ 0.2%
Tools-Hand Held........................ 0.2
Hotels/Motels.......................... 0.2
Transport-Rail......................... 0.2
Food-Wholesale/Distribution............ 0.2
Metal-Copper........................... 0.2
Television............................. 0.1
Broadcast Services/Program............. 0.1
Medical-HMO............................ 0.1
Retail-Regional Department Stores...... 0.1
Gas-Transportation..................... 0.1
Electronic Components-Misc............. 0.1
Energy-Alternate Sources............... 0.1
Steel Pipe & Tube...................... 0.1
Consumer Products-Misc................. 0.1
Diagnostic Equipment................... 0.1
Retail-Computer Equipment.............. 0.1
Industrial Gases....................... 0.1
Radio.................................. 0.1
Tennessee Valley Authority............. 0.1
Building-Heavy Construction............ 0.1
Finance-Investment Banker/Broker....... 0.1
Transport-Marine....................... 0.1
Food-Flour & Grain..................... 0.1
Building Products-Wood................. 0.1
Schools................................ 0.1
Networking Products.................... 0.1
Steel-Specialty........................ 0.1
Metal-Diversified...................... 0.1
Chemicals-Plastics..................... 0.1
Building & Construction-Misc........... 0.1
Cosmetics & Toiletries................. 0.1
Trucking/Leasing....................... 0.1
Advertising Services................... 0.1
Sugar.................................. 0.1
Electric-Transmission.................. 0.1
Retail-Major Department Stores......... 0.1
Brewery................................ 0.1
Building & Construction Products-Misc.. 0.1
Machinery-Construction & Mining........ 0.1
Building Societies..................... 0.1
E-Commerce/Products.................... 0.1
Advertising Agencies................... 0.1
Gas-Distribution....................... 0.1
Engineering/R&D Services............... 0.1
Decision Support Software.............. 0.1
Diversified Operations................. 0.1
----
98.9%
====
CREDIT QUALITY+#
Aaa........ 16.4%
Aa......... 3.9
A.......... 12.7
Baa........ 20.5
Ba......... 15.6
B.......... 18.9
Caa........ 7.5
Not Rated@. 4.5
-----
100.0%
=====
--------
*Calculated as a percentage of net assets
+Source: Moody's
#Calculated as a percentage of total debt issues, excluding short-term
securities.
@Represents debt issues that either have no rating, or the rating is
unavailable from the data source.
19
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
ASSET BACKED SECURITIES -- 0.6%
DIVERSIFIED FINANCIAL SERVICES -- 0.6%
Applebee's Funding LLC/IHOP Funding LLC
Series 2014-1, Class A2
4.28% due 09/05/2044*.......................... $ 58,000 $ 59,341
Asset Backed Securities Corp. Home Equity Loan
Trust FRS
Series 2004-HE7, Class M2
1.77% due 10/25/2034........................... 97,723 91,312
Avis Budget Rental Car Funding AESOP LLC
Series 2014-1A, Class A
2.46% due 07/20/2020*.......................... 67,000 67,982
B2R Mtg. Trust
Series 2015-1,Class A1
2.52% due 05/15/2048*.......................... 98,987 98,657
BA Credit Card Trust
Series 2015-A2,Class A
1.36% due 09/15/2020........................... 78,000 78,143
Chase Issuance Trust FRS
Series 2014-A5, Class A5
0.58% due 04/15/2021........................... 376,000 376,214
Citibank Credit Card Issuance Trust
Series 2014-A2, Class A2
1.02% due 02/22/2019........................... 126,000 126,129
Commercial Mtg. Trust
Series 2015-CR22, Class A2
2.86% due 03/10/2048(1)........................ 193,000 198,734
Core Industrial Trust
Series 2015-1, Class A
3.04% due 02/10/2034*(1)....................... 71,000 72,181
Countrywide Home Loan Mtg.
Pass Through Trust
Series 2005-6, Class 1A11
5.25% due 02/25/2026(2)........................ 107,828 108,821
DB Master Finance LLC
Series 2015-1A, Class A2II
3.98% due 02/20/2045*.......................... 106,465 107,382
Dell Equipment Finance Trust
Series 2015-1,Class A3
1.30% due 03/23/2020*.......................... 100,000 99,846
First Franklin Mtg. Loan Trust FRS
Series 2006-FF15, Class A5
0.35% due 11/25/2036........................... 106,372 92,925
Ford Credit Auto Owner Trust
Series 2014-C,Class B
1.97% due 04/15/2020........................... 76,000 76,767
Ford Credit Auto Owner Trust
Series 2015-2, Class A
2.44% due 01/15/2027*.......................... 50,000 50,811
Ford Credit Floorplan Master Owner Trust
Series 2014-4, Class A1
1.40% due 08/15/2019........................... 114,000 114,223
GS Mtg. Securities Trust
Series 2015-GC28, Class A2
2.90% due 02/10/2048(1)........................ 102,000 105,352
NRP Mtg. Trust VRS
Series 2013-1, Class A1
3.25% due 07/25/2043*(2)....................... 143,267 142,183
Santander Drive Auto Receivables Trust
Series 2014-5, Class C
2.46% due 06/15/2020........................... 76,000 76,365
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
DIVERSIFIED FINANCIAL SERVICES (CONTINUED)
Sierra Timeshare Receivables Funding LLC
Series 2014-2A, Class A
2.05% due 06/20/2031*.................... $ 52,138 $ 52,541
Synchrony Credit Card Master Note Trust
Series 2015-3, Class A
1.74% due 09/15/2021(3).................. 195,000 195,351
Wendys Funding LLC
Series 2015-1A, Class A2I
3.37% due 06/15/2045*.................... 79,000 79,388
Wendys Funding LLC
Series 2015-1A, Class A23
4.50% due 06/15/2045*.................... 79,000 79,185
----------
TOTAL ASSET BACKED SECURITIES
(cost $2,538,895)........................ 2,549,833
----------
U.S. CORPORATE BONDS & NOTES -- 44.7%
ADVERTISING AGENCIES -- 0.1%
Interpublic Group of Cos., Inc.
Senior Notes
4.20% due 04/15/2024..................... 248,000 249,048
----------
ADVERTISING SERVICES -- 0.1%
Visant Corp.
Company Guar. Notes
10.00% due 10/01/2017.................... 388,000 317,190
----------
AEROSPACE/DEFENSE -- 0.3%
BAE Systems Holdings, Inc.
Company Guar. Notes
3.80% due 10/07/2024*.................... 537,000 543,462
BAE Systems Holdings, Inc.
Company Guar. Notes
4.75% due 10/07/2044*.................... 105,000 104,148
Boeing Co.
Senior Notes
0.95% due 05/15/2018..................... 490,000 486,153
----------
1,133,763
----------
AEROSPACE/DEFENSE-EQUIPMENT -- 0.3%
Harris Corp.
Senior Notes
4.85% due 04/27/2035..................... 345,000 332,989
Harris Corp.
Senior Notes
5.05% due 04/27/2045..................... 327,000 315,617
Moog, Inc.
Company Guar. Notes
5.25% due 12/01/2022*.................... 578,000 578,000
----------
1,226,606
----------
AIRLINES -- 0.7%
Allegiant Travel Co.
Company Guar. Notes
5.50% due 07/15/2019..................... 882,000 883,654
American Airlines Pass Through Trust
Pass Through Certs.
Series 2015-A, Class A
4.00% due 03/22/2029..................... 232,000 230,840
20
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
U.S. CORPORATE BONDS & NOTES (CONTINUED)
AIRLINES (CONTINUED)
Atlas Air, Inc.
Pass Through Certs.
Series 1999-1, Class A-1
7.20% due 07/02/2020....................... $ 66,379 $ 67,209
Atlas Air, Inc.
Pass Through Certs.
Series 1999-1, Class B
7.63% due 07/02/2016(3).................... 29,568 29,863
Atlas Air, Inc.
Pass Through Certs.
Series 2000-1, Class B
9.06% due 07/02/2017....................... 232,838 246,808
United Airlines Pass Through Trust
Pass Through Certs.
Series 2014-2, Class B
4.63% due 03/03/2024....................... 750,000 746,250
United Airlines Pass Through Trust
Pass Through Certs.
Series 2013-1, Class B
5.38% due 02/15/2023....................... 500,301 512,809
----------
2,717,433
----------
ALTERNATIVE WASTE TECHNOLOGY -- 0.2%
ADS Waste Holdings, Inc.
Company Guar. Notes
8.25% due 10/01/2020....................... 997,000 994,508
----------
AUTO-CARS/LIGHT TRUCKS -- 0.4%
American Honda Finance Corp.
Senior Notes
1.20% due 07/14/2017....................... 619,000 618,582
Daimler Finance North America LLC
Company Guar. Notes
2.45% due 05/18/2020*...................... 577,000 564,043
Ford Motor Credit Co. LLC
Senior Notes
1.50% due 01/17/2017....................... 360,000 358,751
Toyota Motor Credit Corp.
Senior Notes
1.55% due 07/13/2018....................... 229,000 230,043
----------
1,771,419
----------
AUTO-HEAVY DUTY TRUCKS -- 0.3%
JB Poindexter & Co., Inc.
Senior Notes
9.00% due 04/01/2022*...................... 1,325,000 1,394,562
----------
AUTO/TRUCK PARTS & EQUIPMENT-ORIGINAL -- 0.2%
Affinia Group, Inc.
Company Guar. Notes
7.75% due 05/01/2021....................... 625,000 656,250
----------
BANKS-COMMERCIAL -- 0.7%
Discover Bank
Senior Notes
3.10% due 06/04/2020....................... 261,000 263,526
First Tennessee Bank NA
Senior Notes
2.95% due 12/01/2019....................... 445,000 449,789
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
BANKS-COMMERCIAL (CONTINUED)
KeyBank NA
Senior Notes
2.25% due 03/16/2020........................ $493,000 $ 491,426
PNC Bank NA
Senior Notes
1.13% due 01/27/2017........................ 529,000 529,289
Regions Financial Corp.
Sub. Notes
7.38% due 12/10/2037........................ 610,000 770,992
Woori Bank
Senior Note
4.75% due 04/30/2024........................ 350,000 361,453
----------
2,866,475
----------
BANKS-FIDUCIARY -- 0.2%
Citizens Financial Group, Inc.
Sub. Notes
4.15% due 09/28/2022*....................... 775,000 794,087
----------
BANKS-SUPER REGIONAL -- 0.3%
Bank of America NA
Senior Notes
1.65% due 03/26/2018........................ 300,000 299,763
Wells Fargo & Co.
Senior Notes
1.40% due 09/08/2017........................ 628,000 628,433
Wells Fargo & Co.
Sub. Notes
4.30% due 07/22/2027........................ 295,000 300,647
----------
1,228,843
----------
BATTERIES/BATTERY SYSTEMS -- 0.2%
EnerSys
Company Guar. Notes
5.00% due 04/30/2023*....................... 876,000 849,720
----------
BROADCAST SERVICES/PROGRAM -- 0.1%
Clear Channel Worldwide Holdings, Inc.
Company Guar. Notes
6.50% due 11/15/2022........................ 619,000 615,905
----------
BUILDING & CONSTRUCTION PRODUCTS-MISC. -- 0.1%
Building Materials Corp. of America
Senior Notes
6.00% due 10/15/2025*....................... 287,000 289,870
----------
BUILDING & CONSTRUCTION-MISC. -- 0.1%
Weekley Homes LLC/Weekley Finance Corp.
Senior Notes
6.00% due 02/01/2023........................ 384,000 356,160
----------
BUILDING PRODUCTS-CEMENT -- 0.2%
Cemex Finance LLC
Senior Sec. Notes
6.00% due 04/01/2024*....................... 527,000 479,570
Vulcan Materials Co.
Senior Notes
4.50% due 04/01/2025........................ 334,000 327,320
----------
806,890
----------
21
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
U.S. CORPORATE BONDS & NOTES (CONTINUED)
BUILDING PRODUCTS-WOOD -- 0.1%
Masco Corp.
Senior Notes
4.45% due 04/01/2025............................ $ 468,000 $ 473,850
----------
CABLE/SATELLITE TV -- 0.8%
Altice US Finance I Corp
Senior Sec. Notes
5.38% due 07/15/2023*........................... 900,000 864,000
Cable One, Inc.
Company Guar. Notes
5.75% due 06/15/2022*........................... 681,000 671,125
CCO Safari II LLC
Senior Sec. Notes
4.91% due 07/23/2025*........................... 542,000 539,400
CCO Safari II LLC
Senior Sec. Notes
6.38% due 10/23/2035*........................... 187,000 189,197
CCO Safari II LLC
Senior Sec. Notes
6.48% due 10/23/2045*........................... 182,000 183,611
DISH DBS Corp.
Company Guar. Notes
5.00% due 03/15/2023............................ 674,000 564,475
DISH DBS Corp.
Company Guar. Notes
5.88% due 11/15/2024............................ 286,000 242,921
----------
3,254,729
----------
CASINO HOTELS -- 0.9%
Caesars Entertainment Resort Properties LLC
Senior Sec. Notes
8.00% due 10/01/2020............................ 719,000 683,050
Caesars Entertainment Resort Properties LLC
Sec. Notes
11.00% due 10/01/2021........................... 1,189,000 1,079,017
Downstream Development Authority of the
Quapaw Tribe of Oklahoma
Senior Sec. Notes
10.50% due 07/01/2019*.......................... 629,000 655,733
Golden Nugget Escrow, Inc.
Senior Notes
8.50% due 12/01/2021*........................... 845,000 849,225
Seminole Hard Rock Entertainment, Inc./Seminole
Hard Rock International LLC
Company Guar. Notes
5.88% due 05/15/2021*........................... 575,000 566,375
----------
3,833,400
----------
CELLULAR TELECOM -- 0.9%
Sprint Corp.
Company Guar. Notes
7.13% due 06/15/2024............................ 969,000 745,742
Sprint Corp.
Company Guar. Notes
7.25% due 09/15/2021............................ 1,505,000 1,232,219
Sprint Corp.
Company Guar. Notes
7.63% due 02/15/2025............................ 1,325,000 1,026,047
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
CELLULAR TELECOM (CONTINUED)
T-Mobile USA, Inc.
Company Guar. Notes
6.50% due 01/15/2024.......................... $ 900,000 $ 872,438
----------
3,876,446
----------
CHEMICALS-DIVERSIFIED -- 0.2%
Eco Services Operations LLC/Eco Finance Corp.
Senior Notes
8.50% due 11/01/2022*......................... 857,000 762,730
----------
CHEMICALS-SPECIALTY -- 0.4%
Chemtura Corp.
Company Guar. Notes
5.75% due 07/15/2021.......................... 741,000 731,738
Lubrizol Corp.
Company Guar. Notes
6.50% due 10/01/2034.......................... 248,000 312,266
Tronox Finance LLC
Company Guar. Notes
7.50% due 03/15/2022*......................... 912,000 576,840
----------
1,620,844
----------
COAL -- 0.2%
SunCoke Energy Partners LP/SunCoke Energy
Partners Finance Corp.
Company Guar. Notes
7.38% due 02/01/2020*......................... 891,000 788,357
----------
COATINGS/PAINT -- 0.2%
RPM International, Inc.
Senior Notes
5.25% due 06/01/2045.......................... 573,000 545,388
Sherwin-Williams Co.
Senior Notes
4.55% due 08/01/2045.......................... 147,000 152,980
Valspar Corp.
Senior Notes
3.95% due 01/15/2026.......................... 144,000 147,028
----------
845,396
----------
COMMERCIAL SERVICES-FINANCE -- 0.7%
Automatic Data Processing, Inc.
Senior Notes
2.25% due 09/15/2020.......................... 174,000 175,066
Automatic Data Processing, Inc.
Senior Notes
3.38% due 09/15/2025.......................... 204,000 207,179
Global Cash Access, Inc.
Senior Notes
10.00% due 01/15/2022*........................ 826,000 768,180
Harland Clarke Holdings Corp.
Senior Sec. Notes
6.88% due 03/01/2020*......................... 540,000 486,000
Harland Clarke Holdings Corp.
Senior Notes
9.25% due 03/01/2021*......................... 1,375,000 1,142,969
----------
2,779,394
----------
22
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
U.S. CORPORATE BONDS & NOTES (CONTINUED)
COMPUTER SERVICES -- 0.3%
Hewlett Packard Enterprise Co.
Company Guar. Notes
4.90% due 10/15/2025*..................... $ 329,000 $ 328,095
Hewlett Packard Enterprise Co.
Company Guar. Notes
6.20% due 10/15/2035*..................... 384,000 383,777
Hewlett Packard Enterprise Co.
Company Guar. Notes
6.35% due 10/15/2045*..................... 349,000 346,627
Leidos, Inc.
Company Guar. Notes
7.13% due 07/01/2032...................... 102,000 107,428
----------
1,165,927
----------
COMPUTERS -- 0.5%
Apple, Inc.
Senior Notes
2.85% due 05/06/2021...................... 504,000 516,892
Apple, Inc.
Senior Notes
3.45% due 02/09/2045...................... 91,000 77,039
Dell, Inc.
Senior Notes
4.63% due 04/01/2021...................... 317,000 310,660
Dell, Inc.
Senior Notes
7.10% due 04/15/2028...................... 414,000 407,790
Hewlett-Packard Co.
Senior Notes
6.00% due 09/15/2041...................... 855,000 840,500
----------
2,152,881
----------
CONSUMER PRODUCTS-MISC. -- 0.0%
Kimberly-Clark Corp.
Senior Notes
1.85% due 03/01/2020...................... 137,000 136,855
----------
CONTAINERS-METAL/GLASS -- 0.5%
Ball Corp.
Company Guar. Notes
5.00% due 03/15/2022...................... 335,000 335,837
Crown Cork & Seal Co., Inc.
Company Guar. Notes
7.38% due 12/15/2026...................... 1,750,000 1,907,500
----------
2,243,337
----------
CONTAINERS-PAPER/PLASTIC -- 0.3%
Consolidated Container Co.
LLC/Consolidated Container Capital, Inc.
Company Guar. Notes
10.13% due 07/15/2020*.................... 805,000 676,200
Graphic Packaging International, Inc.
Company Guar. Notes
4.88% due 11/15/2022...................... 505,000 503,738
----------
1,179,938
----------
COSMETICS & TOILETRIES -- 0.1%
Colgate-Palmolive Co. FRS
Senior Notes
0.21% due 05/14/2019...................... EUR 300,000 334,745
----------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
DATA PROCESSING/MANAGEMENT -- 0.0%
First Data Corp.
Senior Sec. Notes
5.38% due 08/15/2023*................. $ 200,000 $ 198,000
----------
DECISION SUPPORT SOFTWARE -- 0.1%
MSCI, Inc.
Company Guar. Notes
5.75% due 08/15/2025*................. 213,000 214,598
----------
DIAGNOSTIC EQUIPMENT -- 0.1%
Danaher Corp.
Senior Notes
3.35% due 09/15/2025.................. 254,000 259,098
Danaher Corp.
Senior Notes
4.38% due 09/15/2045.................. 264,000 273,059
----------
532,157
----------
DISPOSABLE MEDICAL PRODUCTS -- 0.3%
Sterigenics-Nordion Holdings LLC
Senior Notes
6.50% due 05/15/2023*................. 1,088,000 1,079,840
----------
DISTRIBUTION/WHOLESALE -- 0.2%
H&E Equipment Services, Inc.
Company Guar. Notes
7.00% due 09/01/2022.................. 1,039,000 1,007,830
LKQ Corp.
Company Guar. Notes
4.75% due 05/15/2023.................. 22,000 21,175
----------
1,029,005
----------
DIVERSIFIED BANKING INSTITUTIONS -- 2.3%
Bank of America Corp.
Senior Notes
2.50% due 07/27/2020.................. EUR 245,000 289,983
Bank of America Corp.
Sub. Notes
3.95% due 04/21/2025.................. 354,000 344,384
Bank of America Corp.
Sub. Notes
4.25% due 10/22/2026.................. 504,000 498,262
Bank of America Corp.
Senior Notes
7.00% due 07/31/2028.................. GBP 100,000 204,224
Bank of America Corp.
Sub. Notes
7.25% due 10/15/2025.................. 117,000 144,558
Citigroup, Inc.
Sub. Notes
3.88% due 03/26/2025.................. 186,000 180,757
Citigroup, Inc.
Sub. Notes
4.40% due 06/10/2025.................. 950,000 955,448
Citigroup, Inc.
Senior Notes
5.15% due 05/21/2026.................. GBP 40,000 70,103
Citigroup, Inc.
Sub. Notes
6.00% due 10/31/2033.................. 199,000 227,282
23
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
U.S. CORPORATE BONDS & NOTES (CONTINUED)
DIVERSIFIED BANKING INSTITUTIONS (CONTINUED)
Goldman Sachs Group, Inc.
Senior Notes
2.55% due 10/23/2019...................... $ 411,000 $ 413,665
Goldman Sachs Group, Inc.
Senior Notes
3.63% due 01/22/2023...................... 412,000 417,370
Goldman Sachs Group, Inc.
Sub. Notes
5.15% due 05/22/2045...................... 244,000 239,500
Goldman Sachs Group, Inc.
Sub. Notes
6.13% due 05/14/2017...................... GBP 175,000 280,899
Goldman Sachs Group, Inc.
Senior Notes
6.13% due 02/15/2033...................... 518,000 619,511
Goldman Sachs Group, Inc.
Sub. Notes
6.75% due 10/01/2037...................... 643,000 767,046
JPMorgan Chase & Co.
Senior Notes
3.25% due 09/23/2022...................... 337,000 337,242
JPMorgan Chase & Co.
Sub. Notes
4.13% due 12/15/2026...................... 513,000 510,971
JPMorgan Chase & Co.
Sub. Notes
4.95% due 06/01/2045...................... 195,000 195,585
Morgan Stanley
Senior Notes
1.88% due 01/05/2018...................... 457,000 458,179
Morgan Stanley
Senior Notes
2.80% due 06/16/2020...................... 213,000 214,205
Morgan Stanley
Sub. Notes
4.10% due 05/22/2023...................... 771,000 780,339
Morgan Stanley
Senior Notes
4.75% due 03/22/2017...................... 700,000 733,305
Morgan Stanley
Sub. Notes
5.00% due 11/24/2025...................... 395,000 419,973
Morgan Stanley
Senior Notes
6.50% due 12/28/2018...................... EUR 300,000 396,483
----------
9,699,274
----------
DIVERSIFIED FINANCIAL SERVICES -- 0.3%
General Electric Capital Corp.
Company Guar. Notes
1.25% due 05/15/2017...................... 684,000 687,728
USAA Capital Corp.
Senior Notes
2.13% due 06/03/2019*..................... 420,000 422,836
----------
1,110,564
----------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
DIVERSIFIED MANUFACTURING OPERATIONS -- 0.6%
3M Co. FRS
Senior Notes
0.21% due 05/15/2020.................... EUR 600,000 $ 666,925
General Electric Co.
Senior Notes
2.70% due 10/09/2022.................... 432,000 433,090
Ingersoll-Rand Global Holding Co., Ltd.
Company Guar. Notes
5.75% due 06/15/2043.................... 567,000 622,989
Textron, Inc.
Senior Notes
4.63% due 09/21/2016.................... 595,000 612,201
Trinity Industries, Inc.
Company Guar. Notes
4.55% due 10/01/2024.................... 343,000 324,007
----------
2,659,212
----------
DIVERSIFIED OPERATIONS -- 0.1%
MUFG Americas Holdings Corp.
Senior Notes
1.63% due 02/09/2018.................... 208,000 207,469
----------
E-COMMERCE/SERVICES -- 0.2%
Netflix, Inc.
Senior Notes
5.88% due 02/15/2025*................... 981,000 1,007,978
----------
ELECTRIC-GENERATION -- 0.2%
NRG REMA LLC
Pass Through Certs.
9.24% due 07/02/2017.................... 155,247 159,128
Terraform Global Operating LLC
Company Guar. Notes
9.75% due 08/15/2022*................... 679,000 544,898
----------
704,026
----------
ELECTRIC-INTEGRATED -- 1.7%
AES Corp.
Senior Notes
5.50% due 03/15/2024.................... 1,020,000 904,230
Arizona Public Service Co.
Senior Notes
2.20% due 01/15/2020.................... 227,000 226,773
Dominion Resources, Inc.
Senior Notes
5.25% due 08/01/2033.................... 755,000 813,753
Entergy Arkansas, Inc.
1st Mtg. Bonds
4.95% due 12/15/2044.................... 359,000 361,774
Entergy Louisiana LLC
1st Mtg. Bonds
4.95% due 01/15/2045.................... 326,000 329,308
Exelon Corp.
Senior Notes
4.95% due 06/15/2035.................... 161,000 162,267
Exelon Corp.
Senior Notes
5.10% due 06/15/2045.................... 164,000 167,456
24
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
U.S. CORPORATE BONDS & NOTES (CONTINUED)
ELECTRIC-INTEGRATED (CONTINUED)
Exelon Generation Co. LLC
Senior Notes
2.95% due 01/15/2020....................... $ 307,000 $ 311,068
FirstEnergy Corp.
Senior Notes
7.38% due 11/15/2031....................... 456,000 550,339
Georgia Power Co.
Senior Notes
3.00% due 04/15/2016....................... 180,000 182,126
Louisville Gas & Electric Co.
1st Mtg. Notes
4.38% due 10/01/2045....................... 41,000 42,393
Mirant Mid Atlantic LLC Pass Through Trust
Pass Through Certs. Series B
9.13% due 06/30/2017....................... 194,836 201,655
Mirant Mid Atlantic LLC Pass Through Trust
Pass Through Certs. Series C
10.06% due 12/30/2028...................... 1,051,264 1,095,942
South Carolina Electric & Gas Co.
1st Mtg. Bonds
5.10% due 06/01/2065....................... 208,000 218,935
Southern California Edison Co.
1st Mtg. Bonds
1.13% due 05/01/2017....................... 628,000 627,503
Talen Energy Supply LLC
Senior Notes
6.50% due 06/01/2025*...................... 900,000 774,000
Trans-Allegheny Interstate Line Co.
Senior Notes
3.85% due 06/01/2025*...................... 255,000 256,157
----------
7,225,679
----------
ELECTRONIC COMPONENTS-MISC. -- 0.1%
Corning, Inc.
Senior Notes
1.50% due 05/08/2018....................... 229,000 229,197
Corning, Inc.
Senior Notes
2.90% due 05/15/2022....................... 229,000 229,533
----------
458,730
----------
ELECTRONIC COMPONENTS-SEMICONDUCTORS -- 0.3%
Intel Corp.
Senior Notes
1.35% due 12/15/2017....................... 496,000 495,113
Micron Technology, Inc.
Senior Notes
5.63% due 01/15/2026*...................... 900,000 810,000
----------
1,305,113
----------
ELECTRONICS-MILITARY -- 0.0%
L-3 Communications Corp.
Company Guar. Notes
3.95% due 05/28/2024....................... 100,000 95,865
----------
ENERGY-ALTERNATE SOURCES -- 0.1%
TerraForm Power Operating LLC
Company Guar. Notes
5.88% due 02/01/2023*...................... 636,000 561,270
----------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
ENTERPRISE SOFTWARE/SERVICE -- 0.3%
Infor US, Inc.
Senior Sec. Notes
5.75% due 08/15/2020*...................... $ 770,000 $ 766,150
Oracle Corp.
Senior Notes
3.90% due 05/15/2035....................... 345,000 327,331
----------
1,093,481
----------
FINANCE-AUTO LOANS -- 0.5%
Ally Financial, Inc.
Senior Notes
5.13% due 09/30/2024....................... 985,000 972,688
Credit Acceptance Corp.
Company Guar. Notes
7.38% due 03/15/2023*...................... 1,075,000 1,099,187
----------
2,071,875
----------
FINANCE-COMMERCIAL -- 0.2%
Jefferies Finance LLC/JFIN Co-Issuer Corp.
Senior Notes
6.88% due 04/15/2022*...................... 524,000 476,840
Jefferies Finance LLC/JFIN Co-Issuer Corp.
Senior Notes
7.38% due 04/01/2020*...................... 498,000 479,972
----------
956,812
----------
FINANCE-CONSUMER LOANS -- 0.5%
Enova International, Inc.
Company Guar. Notes
9.75% due 06/01/2021....................... 1,527,000 1,236,870
OneMain Financial Holdings, Inc.
Company Guar. Notes
6.75% due 12/15/2019*...................... 575,000 595,125
Synchrony Financial
Senior Notes
4.25% due 08/15/2024....................... 447,000 445,334
----------
2,277,329
----------
FINANCE-CREDIT CARD -- 0.3%
American Express Credit Corp.
Senior Notes
1.55% due 09/22/2017....................... 281,000 281,778
American Express Credit Corp.
Senior Notes
2.38% due 05/26/2020....................... 374,000 373,809
Discover Financial Services
Senior Notes
3.75% due 03/04/2025....................... 441,000 427,086
----------
1,082,673
----------
FINANCE-INVESTMENT BANKER/BROKER -- 0.1%
Lehman Brothers Holdings, Inc.
Escrow Notes
6.75% due 12/28/2017+(4)................... 280,000 28
Lehman Brothers Holdings, Inc.
Escrow Notes
7.50% due 05/11/2038+(4)................... 361,000 36
25
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
U.S. CORPORATE BONDS & NOTES (CONTINUED)
FINANCE-INVESTMENT BANKER/BROKER (CONTINUED)
TD Ameritrade Holding Corp.
Senior Notes
2.95% due 04/01/2022............................... $ 281,000 $ 282,977
----------
283,041
----------
FINANCE-MORTGAGE LOAN/BANKER -- 0.2%
Quicken Loans, Inc.
Company Guar. Notes
5.75% due 05/01/2025*.............................. 900,000 844,875
----------
FINANCE-OTHER SERVICES -- 0.3%
National Rural Utilities Cooperative Finance Corp.
Senior Notes
0.95% due 04/24/2017............................... 192,000 191,724
National Rural Utilities Cooperative Finance Corp.
Collateral Trust Bonds
1.10% due 01/27/2017............................... 850,000 852,412
National Rural Utilities Cooperative Finance Corp.
Collateral Trust Bonds
2.00% due 01/27/2020............................... 385,000 381,321
----------
1,425,457
----------
FIREARMS & AMMUNITION -- 0.2%
FGI Operating Co. LLC/FGI Finance, Inc.
Sec. Notes
7.88% due 05/01/2020............................... 1,115,000 847,400
----------
FOOD-DAIRY PRODUCTS -- 0.2%
Dean Foods Co.
Company Guar. Notes
6.50% due 03/15/2023*.............................. 800,000 812,000
----------
FOOD-FLOUR & GRAIN -- 0.1%
Post Holdings, Inc.
Company Guar. Notes
7.75% due 03/15/2024*.............................. 463,000 474,575
----------
FOOD-MEAT PRODUCTS -- 0.2%
JBS USA LLC/JBS USA Finance, Inc.
Senior Notes
5.88% due 07/15/2024*.............................. 733,000 687,188
----------
FOOD-MISC./DIVERSIFIED -- 0.2%
Darling Ingredients, Inc.
Company Guar. Notes
5.38% due 01/15/2022............................... 766,000 750,680
----------
FOOD-RETAIL -- 0.3%
SUPERVALU, Inc.
Senior Notes
7.75% due 11/15/2022............................... 1,058,000 1,058,000
----------
FOOD-WHOLESALE/DISTRIBUTION -- 0.2%
C&S Group Enterprises LLC
Senior Sec. Notes
5.38% due 07/15/2022*.............................. 681,000 619,710
----------
GAMBLING (NON-HOTEL) -- 0.3%
Scientific Games International, Inc.
Senior Sec. Notes
7.00% due 01/01/2022*.............................. 585,000 576,225
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
GAMBLING (NON-HOTEL) (CONTINUED)
Scientific Games International, Inc.
Company Guar. Notes
10.00% due 12/01/2022................... $ 572,000 $ 499,070
Waterford Gaming LLC/Waterford Gaming
Financial Corp.
Escrow Notes
8.63% due 09/15/2014*+(3)(4)............ 478,062 4,685
----------
1,079,980
----------
GAS-DISTRIBUTION -- 0.1%
Dominion Gas Holdings LLC
Senior Notes
4.80% due 11/01/2043.................... 252,000 247,712
----------
HOTELS/MOTELS -- 0.2%
Interval Acquisition Corp.
Company Guar. Notes
5.63% due 04/15/2023*................... 650,000 640,250
----------
INDEPENDENT POWER PRODUCERS -- 0.6%
Dynegy, Inc.
Company Guar. Notes
7.38% due 11/01/2022.................... 800,000 807,000
GenOn Energy, Inc.
Senior Notes
9.50% due 10/15/2018.................... 753,000 696,525
NRG Energy, Inc.
Company Guar. Notes
6.25% due 07/15/2022.................... 1,062,000 966,420
----------
2,469,945
----------
INDUSTRIAL GASES -- 0.0%
Airgas, Inc.
Senior Notes
3.05% due 08/01/2020.................... 114,000 115,757
----------
INSURANCE-LIFE/HEALTH -- 0.3%
CNO Financial Group, Inc.
Senior Notes
5.25% due 05/30/2025.................... 413,000 419,195
Pacific LifeCorp
Senior Notes
6.00% due 02/10/2020*................... 295,000 333,062
Pricoa Global Funding I
Senior Sec. Notes
1.35% due 08/18/2017*................... 494,000 492,600
----------
1,244,857
----------
INSURANCE-MULTI-LINE -- 0.2%
Assurant, Inc.
Senior Notes
6.75% due 02/15/2034.................... 831,000 998,481
----------
INSURANCE-MUTUAL -- 0.5%
Massachusetts Mutual Life Insurance Co.
Sub. Notes
4.50% due 04/15/2065*................... 242,000 222,631
MassMutual Global Funding II Senior
Sec. Notes
2.00% due 04/05/2017*................... 856,000 867,059
26
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
U.S. CORPORATE BONDS & NOTES (CONTINUED)
INSURANCE-MUTUAL (CONTINUED)
MassMutual Global Funding II
Senior Sec. Notes
2.50% due 10/17/2022*..................... $ 345,000 $ 335,789
New York Life Global Funding
Sec. Notes
1.65% due 05/15/2017*..................... 679,000 683,839
----------
2,109,318
----------
INTERNET CONNECTIVITY SERVICES -- 0.5%
Cogent Communications Group, Inc.
Senior Sec. Notes
5.38% due 03/01/2022*..................... 1,204,000 1,164,870
Zayo Group LLC/Zayo Capital, Inc.
Company Guar. Notes
6.00% due 04/01/2023*..................... 726,000 704,220
----------
1,869,090
----------
INVESTMENT MANAGEMENT/ADVISOR SERVICES -- 0.5%
Drawbridge Special Opportunities Fund LP/
Drawbridge Special Opportunities Finance
Senior Notes
5.00% due 08/01/2021*..................... 1,106,000 1,081,115
National Financial Partners Corp.
Senior Notes
9.00% due 07/15/2021*..................... 1,196,000 1,154,140
----------
2,235,255
----------
MACHINERY-FARMING -- 0.4%
John Deere Capital Corp.
Senior Notes
1.13% due 06/12/2017...................... 756,000 755,585
John Deere Capital Corp.
Senior Notes
1.55% due 12/15/2017...................... 766,000 770,113
----------
1,525,698
----------
MARINE SERVICES -- 0.2%
Great Lakes Dredge & Dock Corp.
Company Guar. Notes
7.38% due 02/01/2019...................... 699,000 700,748
----------
MEDICAL LABS & TESTING SERVICES -- 0.3%
Laboratory Corp. of America Holdings
Senior Notes
3.20% due 02/01/2022...................... 119,000 118,446
Laboratory Corp. of America Holdings
Senior Notes
3.60% due 02/01/2025...................... 386,000 373,673
Laboratory Corp. of America Holdings
Senior Notes
4.70% due 02/01/2045...................... 198,000 180,919
Roche Holdings, Inc.
Company Guar. Notes
1.35% due 09/29/2017*..................... 700,000 703,339
----------
1,376,377
----------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
MEDICAL PRODUCTS -- 0.2%
Universal Hospital Services, Inc.
Sec. Notes
7.63% due 08/15/2020.............. $ 744,000 $ 697,500
----------
MEDICAL-BIOMEDICAL/GENE -- 0.3%
Biogen, Inc.
Senior Notes
4.05% due 09/15/2025.............. 286,000 288,912
Biogen, Inc.
Senior Notes
5.20% due 09/15/2045.............. 280,000 282,534
Celgene Corp.
Senior Notes
5.00% due 08/15/2045.............. 281,000 278,723
Gilead Sciences, Inc.
Senior Notes
3.65% due 03/01/2026.............. 57,000 57,265
Gilead Sciences, Inc.
Senior Notes
4.75% due 03/01/2046.............. 196,000 196,904
----------
1,104,338
----------
MEDICAL-DRUGS -- 0.8%
Baxalta, Inc.
Senior Notes
3.60% due 06/23/2022*............. 301,000 303,896
Baxalta, Inc.
Senior Notes
4.00% due 06/23/2025*............. 164,000 164,254
Endo Finance LLC
Company Guar. Notes
5.75% due 01/15/2022*............. 703,000 695,970
Forest Laboratories LLC
Company Guar. Notes
4.88% due 02/15/2021*............. 486,000 524,899
Merck & Co., Inc.
Senior Notes
1.88% due 10/15/2026.............. EUR 550,000 624,992
Quintiles Transnational Corp.
Company Guar. Notes
4.88% due 05/15/2023*............. 900,000 891,000
----------
3,205,011
----------
MEDICAL-GENERIC DRUGS -- 0.0%
Mylan, Inc.
Company Guar. Notes
5.40% due 11/29/2043.............. 180,000 177,961
----------
MEDICAL-HMO -- 0.1%
UnitedHealth Group, Inc.
Senior Notes
1.40% due 12/15/2017.............. 395,000 394,594
UnitedHealth Group, Inc.
Senior Notes
3.35% due 07/15/2022.............. 212,000 218,805
----------
613,399
----------
27
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
U.S. CORPORATE BONDS & NOTES (CONTINUED)
MEDICAL-HOSPITALS -- 1.1%
HCA, Inc.
Company Guar. Notes
7.50% due 11/15/2095..................... $1,823,000 $1,804,770
IASIS Healthcare LLC/IASIS Capital Corp.
Company Guar. Notes
8.38% due 05/15/2019..................... 625,000 642,969
Tenet Healthcare Corp.
Senior Sec. Notes
4.75% due 06/01/2020..................... 1,249,000 1,261,490
Tenet Healthcare Corp.
Senior Notes
6.75% due 06/15/2023..................... 405,000 401,962
Tenet Healthcare Corp.
Senior Notes
6.88% due 11/15/2031..................... 565,000 508,500
----------
4,619,691
----------
METAL-COPPER -- 0.1%
Freeport-McMoRan, Inc.
Company Guar. Notes
2.30% due 11/14/2017..................... 258,000 232,845
----------
MULTIMEDIA -- 0.4%
21st Century Fox America, Inc.
Company Guar. Notes
4.75% due 09/15/2044..................... 213,000 209,674
Time Warner, Inc.
Company Guar. Notes
3.60% due 07/15/2025..................... 736,000 720,691
Viacom, Inc.
Senior Notes
3.88% due 04/01/2024..................... 114,000 106,873
Viacom, Inc.
Senior Notes
4.85% due 12/15/2034..................... 169,000 146,005
Viacom, Inc.
Senior Notes
5.25% due 04/01/2044..................... 338,000 295,074
Walt Disney Co.
Senior Notes
1.50% due 09/17/2018..................... 298,000 299,021
----------
1,777,338
----------
MUSIC -- 0.2%
Gibson Brands, Inc.
Senior Sec. Notes
8.88% due 08/01/2018*.................... 31,000 27,358
WMG Acquisition Corp.
Senior Sec. Notes
6.00% due 01/15/2021*.................... 439,000 439,000
WMG Acquisition Corp.
Company Guar. Notes
6.75% due 04/15/2022*.................... 481,000 452,140
----------
918,498
----------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
NETWORKING PRODUCTS -- 0.1%
Cisco Systems, Inc.
Senior Notes
2.13% due 03/01/2019............................. $ 453,000 $458,681
--------
OIL & GAS DRILLING -- 0.1%
Summit Midstream Holdings LLC/Summit
Midstream Finance Corp.
Company Guar. Notes
5.50% due 08/15/2022............................. 416,000 357,760
--------
OIL COMPANIES-EXPLORATION & PRODUCTION -- 2.5%
Anadarko Petroleum Corp.
Senior Notes
6.45% due 09/15/2036............................. 885,000 973,626
Atlas Energy Holdings Operating Co. LLC/Atlas
Resource Finance Corp.
Company Guar. Notes
7.75% due 01/15/2021............................. 1,139,000 478,380
Carrizo Oil & Gas, Inc.
Company Guar. Notes
6.25% due 04/15/2023............................. 600,000 522,420
Chaparral Energy, Inc.
Company Guar. Notes
8.25% due 09/01/2021............................. 635,000 193,294
EP Energy LLC/Everest Acquisition Finance, Inc.
Company Guar. Notes
7.75% due 09/01/2022............................. 499,000 399,200
EV Energy Partners LP/EV Energy Finance Corp.
Company Guar. Notes
8.00% due 04/15/2019............................. 1,105,000 751,400
Halcon Resources Corp.
Sec. Notes
8.63% due 02/01/2020*............................ 537,000 446,381
Halcon Resources Corp.
Company Guar. Notes
9.75% due 07/15/2020............................. 550,000 187,000
Hess Corp.
Senior Notes
5.60% due 02/15/2041............................. 208,000 193,834
Hess Corp.
Senior Notes
7.88% due 10/01/2029............................. 235,000 277,431
Hilcorp Energy I LP/Hilcorp Finance Co.
Senior Notes
5.00% due 12/01/2024*............................ 685,000 582,250
Legacy Reserves LP/Legacy Reserves Finance Corp.
Company Guar. Notes
6.63% due 12/01/2021............................. 652,000 443,360
Memorial Production Partners LP/Memorial
Production Finance Corp.
Company Guar. Notes
7.63% due 05/01/2021............................. 740,000 499,500
Newfield Exploration Co.
Senior Notes
5.38% due 01/01/2026............................. 559,000 511,485
28
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
U.S. CORPORATE BONDS & NOTES (CONTINUED)
OIL COMPANIES-EXPLORATION & PRODUCTION (CONTINUED)
Noble Energy, Inc.
Senior Notes
3.90% due 11/15/2024.................. $ 290,000 $ 269,703
Noble Energy, Inc.
Senior Notes
5.05% due 11/15/2044.................. 245,000 212,166
Northern Oil and Gas, Inc.
Senior Notes
8.00% due 06/01/2020.................. 1,264,000 940,100
Oasis Petroleum, Inc.
Company Guar. Notes
6.88% due 03/15/2022.................. 500,000 396,150
Occidental Petroleum Corp.
Senior Notes
3.50% due 06/15/2025.................. 152,000 151,573
Penn Virginia Corp.
Company Guar. Notes
7.25% due 04/15/2019.................. 579,000 130,275
Rex Energy Corp.
Company Guar. Notes
6.25% due 08/01/2022.................. 642,000 256,800
Sanchez Energy Corp.
Company Guar. Notes
6.13% due 01/15/2023.................. 789,000 528,630
SM Energy Co.
Senior Notes
5.63% due 06/01/2025.................. 506,000 435,160
Southwestern Energy Co.
Senior Notes
3.30% due 01/23/2018.................. 119,000 116,929
Southwestern Energy Co.
Senior Notes
4.95% due 01/23/2025.................. 553,000 494,240
-----------
10,391,287
-----------
OIL COMPANIES-INTEGRATED -- 0.4%
Chevron Corp.
Senior Notes
1.37% due 03/02/2018.................. 456,000 456,413
Chevron Corp.
Senior Notes
1.96% due 03/03/2020.................. 251,000 249,952
ConocoPhillips Co.
Company Guar. Notes
1.50% due 05/15/2018.................. 160,000 159,852
Exxon Mobil Corp.
Senior Notes
1.31% due 03/06/2018.................. 464,000 465,095
Marathon Oil Corp.
Senior Notes
6.60% due 10/01/2037.................. 324,000 324,664
-----------
1,655,976
-----------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
OIL REFINING & MARKETING -- 0.3%
Calumet Specialty Products Partner LP/Calumet
Finance Corp.
Company Guar. Notes
6.50% due 04/15/2021.......................... $646,000 $ 581,400
Murphy Oil USA, Inc.
Company Guar. Notes
6.00% due 08/15/2023.......................... 57,000 58,283
Reliance Holdings USA, Inc.
Company Guar. Notes
5.40% due 02/14/2022.......................... 450,000 491,031
----------
1,130,714
----------
OIL-FIELD SERVICES -- 0.3%
Bristow Group, Inc.
Company Guar. Notes
6.25% due 10/15/2022.......................... 675,000 580,500
Freeport-McMoran Oil & Gas LLC/FCX Oil &
Gas, Inc.
Company Guar. Notes
6.63% due 05/01/2021.......................... 196,000 172,480
Freeport-McMoran Oil & Gas LLC/FCX Oil &
Gas, Inc.
Company Guar. Notes
6.88% due 02/15/2023.......................... 338,000 299,046
----------
1,052,026
----------
PAPER & RELATED PRODUCTS -- 0.7%
Domtar Corp.
Company Guar. Notes
6.75% due 02/15/2044.......................... 312,000 312,513
Georgia-Pacific LLC
Senior Notes
3.60% due 03/01/2025*......................... 692,000 691,393
Georgia-Pacific LLC
Senior Notes
3.73% due 07/15/2023*......................... 946,000 964,597
Georgia-Pacific LLC
Company Guar. Notes
5.40% due 11/01/2020*......................... 387,000 433,656
PH Glatfelter Co.
Company Guar. Notes
5.38% due 10/15/2020.......................... 620,000 627,750
----------
3,029,909
----------
PIPELINES -- 1.8%
Columbia Pipeline Group, Inc.
Company Guar. Notes
2.45% due 06/01/2018*......................... 83,000 83,160
Columbia Pipeline Group, Inc.
Company Guar. Notes
4.50% due 06/01/2025*......................... 401,000 389,255
Energy Transfer Equity LP
Senior Sec. Notes
7.50% due 10/15/2020.......................... 700,000 696,500
Energy Transfer Partners LP
Senior Notes
4.90% due 03/15/2035.......................... 401,000 323,915
29
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
U.S. CORPORATE BONDS & NOTES (CONTINUED)
PIPELINES (CONTINUED)
Energy Transfer Partners LP
Senior Notes
5.15% due 03/15/2045........................... $ 153,000 $ 119,352
Energy Transfer Partners LP
Senior Notes
6.63% due 10/15/2036........................... 736,000 700,237
EnLink Midstream Partners LP
Senior Notes
5.05% due 04/01/2045........................... 219,000 185,548
Genesis Energy LP/Genesis Energy Finance Corp.
Company Guar. Notes
5.63% due 06/15/2024........................... 715,000 614,900
Genesis Energy LP/Genesis Energy Finance Corp.
Company Guar. Notes
6.00% due 05/15/2023........................... 532,000 468,160
Kinder Morgan Energy Partners LP
Company Guar. Notes
4.70% due 11/01/2042........................... 224,000 168,748
Kinder Morgan Energy Partners LP
Company Guar. Notes
6.50% due 04/01/2020........................... 688,000 761,666
Kinder Morgan, Inc.
Company Guar. Notes
5.00% due 02/15/2021*.......................... 589,000 601,866
Rose Rock Midstream LP/Rose Rock
Finance Corp.
Company Guar. Notes
5.63% due 07/15/2022........................... 461,000 405,680
Sabine Pass Liquefaction LLC
Senior Sec. Notes
5.63% due 04/15/2023(8)........................ 575,000 510,313
Sabine Pass Liquefaction LLC
Senior Sec. Notes
6.25% due 03/15/2022........................... 511,000 475,230
Tesoro Logistics LP/Tesoro Logistics
Finance Corp.
Company Guar. Notes
6.13% due 10/15/2021........................... 926,000 909,795
Williams Partners LP
Senior Notes
4.00% due 09/15/2025........................... 146,000 126,454
----------
7,540,779
----------
PRINTING-COMMERCIAL -- 0.5%
Multi-Color Corp.
Company Guar. Notes
6.13% due 12/01/2022*.......................... 887,000 906,957
Quad/Graphics, Inc.
Company Guar. Notes
7.00% due 05/01/2022........................... 1,175,000 1,051,625
----------
1,958,582
----------
PUBLISHING-NEWSPAPERS -- 0.4%
Lee Enterprises, Inc.
Senior Sec. Notes
9.50% due 03/15/2022*.......................... 884,000 806,650
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
PUBLISHING-NEWSPAPERS (CONTINUED)
McClatchy Co.
Senior Sec. Notes
9.00% due 12/15/2022....................... $ 979,000 $ 881,100
----------
1,687,750
----------
PUBLISHING-PERIODICALS -- 0.6%
Expo Event Transco, Inc.
Senior Notes
9.00% due 06/15/2021*...................... 1,693,000 1,693,000
Time, Inc.
Company Guar. Notes
5.75% due 04/15/2022*...................... 810,000 757,350
----------
2,450,350
----------
RADIO -- 0.1%
Sirius XM Radio, Inc.
Company Guar. Notes
5.38% due 04/15/2025*...................... 525,000 501,375
----------
REAL ESTATE INVESTMENT TRUSTS -- 1.4%
Communications Sales & Leasing, Inc. / CSL
Capital LLC
Company Guar. Notes
8.25% due 10/15/2023....................... 381,000 325,755
Communications Sales & Leasing, Inc./CSL
Capital LLC
Senior Sec. Notes
6.00% due 04/15/2023*...................... 471,000 419,190
CTR Partnership LP/CareTrust Capital Corp.
Company Guar. Notes
5.88% due 06/01/2021....................... 781,000 796,620
DuPont Fabros Technology LP
Company Guar. Notes
5.63% due 06/15/2023....................... 800,000 804,000
ESH Hospitality, Inc.
Company Guar. Notes
5.25% due 05/01/2025*...................... 935,000 918,637
Omega Healthcare Investors, Inc.
Company Guar. Notes
4.50% due 04/01/2027*...................... 480,000 456,820
Omega Healthcare Investors, Inc.
Company Guar. Notes
4.95% due 04/01/2024....................... 474,000 479,155
Omega Healthcare Investors, Inc.
Company Guar. Notes
5.25% due 01/15/2026*...................... 1,043,000 1,060,241
RHP Hotel Properties LP/RHP Finance Corp.
Company Guar. Notes
5.00% due 04/15/2023....................... 484,000 481,580
----------
5,741,998
----------
REAL ESTATE MANAGEMENT/SERVICES -- 0.3%
American Campus Communities Operating
Partnership LP
Company Guar. Notes
3.35% due 10/01/2020....................... 90,000 91,074
30
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
U.S. CORPORATE BONDS & NOTES (CONTINUED)
REAL ESTATE MANAGEMENT/SERVICES (CONTINUED)
American Campus Communities Operating
Partnership LP
Company Guar. Notes
4.13% due 07/01/2024...................... $ 302,000 $ 303,600
Kennedy-Wilson, Inc.
Company Guar. Notes
5.88% due 04/01/2024...................... 775,000 757,562
----------
1,152,236
----------
REAL ESTATE OPERATIONS & DEVELOPMENT -- 0.2%
Greystar Real Estate Partners LLC
Senior Sec. Notes
8.25% due 12/01/2022*..................... 941,000 983,345
----------
RENTAL AUTO/EQUIPMENT -- 0.2%
United Rentals North America, Inc.
Senior Sec. Notes
4.63% due 07/15/2023...................... 450,000 435,938
United Rentals North America, Inc.
Company Guar. Notes
5.50% due 07/15/2025...................... 550,000 514,250
----------
950,188
----------
RETAIL-APPLIANCES -- 0.3%
Conn's, Inc.
Company Guar. Notes
7.25% due 07/15/2022...................... 1,185,000 1,137,600
----------
RETAIL-AUTOMOBILE -- 0.0%
AutoNation, Inc.
Company Guar. Notes
4.50% due 10/01/2025...................... 200,000 203,843
----------
RETAIL-BUILDING PRODUCTS -- 0.0%
Lowe's Cos., Inc.
Senior Notes
4.38% due 09/15/2045...................... 150,000 151,732
----------
RETAIL-COMPUTER EQUIPMENT -- 0.1%
GameStop Corp.
Company Guar. Notes
5.50% due 10/01/2019*..................... 500,000 515,150
----------
RETAIL-DISCOUNT -- 0.2%
Costco Wholesale Corp.
Senior Notes
2.25% due 02/15/2022...................... 484,000 479,465
Dollar General Corp.
Company Guar. Notes
4.13% due 07/15/2017...................... 440,000 453,690
----------
933,155
----------
RETAIL-DRUG STORE -- 0.2%
CVS Pass-Through Trust
Pass Through Certs.
4.70% due 01/10/2036*..................... 271,223 282,899
CVS Pass-Through Trust
Pass Through Certs.
5.77% due 01/10/2033*..................... 220,652 242,946
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
RETAIL-DRUG STORE (CONTINUED)
CVS Pass-Through Trust
Pass Through Certs.
5.93% due 01/10/2034*.................... $ 349,174 $ 400,772
----------
926,617
----------
RETAIL-REGIONAL DEPARTMENT STORES -- 0.1%
Bon-Ton Department Stores, Inc.
Sec. Notes
8.00% due 06/15/2021..................... 684,000 403,560
Kohl's Corp.
Senior Notes
5.55% due 07/17/2045..................... 211,000 206,704
----------
610,264
----------
RETAIL-RESTAURANTS -- 0.5%
Landry's, Inc.
Company Guar. Notes
9.38% due 05/01/2020*.................... 863,000 921,252
PF Chang's China Bistro, Inc.
Company Guar. Notes
10.25% due 06/30/2020*................... 1,022,000 993,895
----------
1,915,147
----------
RUBBER/PLASTIC PRODUCTS -- 0.0%
Venture Holdings Co. LLC
Company Guar. Notes
11.00% due 06/01/2007+(3)(4)(5)(15)...... 100,000 0
----------
SATELLITE TELECOM -- 0.1%
Hughes Satellite Systems Corp.
Company Guar. Notes
7.63% due 06/15/2021..................... 407,000 435,999
----------
SAVINGS & LOANS/THRIFTS -- 0.7%
Astoria Financial Corp.
Senior Notes
5.00% due 06/19/2017..................... 718,000 752,060
First Niagara Financial Group, Inc.
Senior Notes
6.75% due 03/19/2020..................... 1,145,000 1,291,557
First Niagara Financial Group, Inc.
Sub. Notes
7.25% due 12/15/2021..................... 714,000 802,707
----------
2,846,324
----------
SCHOOLS -- 0.1%
President and Fellows of Harvard College
Notes
3.62% due 10/01/2037..................... 191,000 186,935
University of Pennsylvania
Senior Notes
4.67% due 09/01/2112..................... 292,000 281,261
----------
468,196
----------
SEMICONDUCTOR EQUIPMENT -- 0.0%
Applied Materials, Inc.
Senior Notes
3.90% due 10/01/2025..................... 172,000 171,419
----------
31
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
U.S. CORPORATE BONDS & NOTES (CONTINUED)
SPECIFIED PURPOSE ACQUISITIONS -- 0.3%
Opal Acquisition, Inc.
Senior Notes
8.88% due 12/15/2021*................. $1,227,000 $1,154,914
----------
STEEL PIPE & TUBE -- 0.1%
Valmont Industries, Inc.
Company Guar. Notes
5.25% due 10/01/2054.................. 619,000 544,809
----------
STEEL-PRODUCERS -- 0.4%
AK Steel Corp.
Company Guar. Notes
8.38% due 04/01/2022.................. 698,000 352,296
AK Steel Corp.
Senior Sec. Notes
8.75% due 12/01/2018.................. 575,000 559,274
Steel Dynamics, Inc.
Company Guar. Notes
5.13% due 10/01/2021.................. 704,000 667,040
----------
1,578,610
----------
STEEL-SPECIALTY -- 0.1%
Allegheny Technologies, Inc.
Senior Notes
5.95% due 01/15/2021.................. 331,000 297,900
----------
TELECOMMUNICATION EQUIPMENT -- 0.3%
CommScope Technologies Finance LLC
Senior Sec. Notes
6.00% due 06/15/2025*................. 800,000 767,504
Plantronics, Inc.
Company Guar. Notes
5.50% due 05/31/2023*................. 600,000 601,500
----------
1,369,004
----------
TELEPHONE-INTEGRATED -- 2.1%
AT&T, Inc.
Senior Notes
3.00% due 06/30/2022.................. 748,000 729,752
AT&T, Inc.
Senior Notes
3.40% due 05/15/2025.................. 211,000 201,399
AT&T, Inc.
Senior Notes
4.35% due 06/15/2045.................. 423,000 363,074
AT&T, Inc.
Senior Notes
4.50% due 05/15/2035.................. 518,000 473,875
AT&T, Inc.
Senior Notes
4.75% due 05/15/2046.................. 193,000 176,845
AT&T, Inc.
Senior Notes
5.80% due 02/15/2019.................. 182,000 202,375
Century Telephone Enterprise, Inc.
Senior Notes
6.88% due 01/15/2028.................. 311,000 256,575
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
TELEPHONE-INTEGRATED (CONTINUED)
CenturyLink, Inc.
Senior Notes
5.63% due 04/01/2025*............. $ 513,000 $ 407,835
CenturyLink, Inc.
Senior Notes
5.80% due 03/15/2022.............. 431,000 368,505
Consolidated Communications, Inc.
Company Guar. Notes
6.50% due 10/01/2022*............. 632,000 565,640
Frontier Communications Corp.
Senior Notes
8.13% due 10/01/2018.............. 250,000 256,250
Frontier Communications Corp.
Senior Notes
9.25% due 07/01/2021.............. 549,000 528,692
Frontier Communications Corp.
Senior Notes
11.00% due 09/15/2025*............ 1,350,000 1,306,125
Verizon Communications, Inc.
Senior Notes
3.00% due 11/01/2021.............. 569,000 567,438
Verizon Communications, Inc.
Senior Notes
4.40% due 11/01/2034.............. 208,000 193,535
Verizon Communications, Inc.
Senior Notes
4.50% due 09/15/2020.............. 63,000 68,247
Verizon Communications, Inc.
Senior Notes
4.67% due 03/15/2055.............. 563,000 484,799
Verizon Communications, Inc.
Senior Notes
4.75% due 02/17/2034.............. GBP 325,000 518,300
Verizon Communications, Inc.
Senior Notes
4.86% due 08/21/2046.............. 887,000 831,751
Verizon Communications, Inc.
Senior Notes
6.40% due 09/15/2033.............. 16,000 18,330
----------
8,519,342
----------
THEATERS -- 0.3%
Carmike Cinemas, Inc.
Sec. Notes
6.00% due 06/15/2023*............. 500,000 505,000
National CineMedia LLC
Senior Sec. Notes
6.00% due 04/15/2022.............. 690,000 696,900
----------
1,201,900
----------
TRAVEL SERVICES -- 0.2%
Sabre GLBL, Inc.
Senior Sec. Notes
5.38% due 04/15/2023*............. 835,000 822,475
----------
32
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
U.S. CORPORATE BONDS & NOTES (CONTINUED)
TRUCKING/LEASING -- 0.1%
Penske Truck Leasing Co. LP/PTL
Finance Corp.
Senior Notes
3.05% due 01/09/2020*........... $ 158,000 $ 159,395
Penske Truck Leasing Co. LP/PTL
Finance Corp.
Senior Notes
3.38% due 02/01/2022*........... 175,000 171,035
------------
330,430
------------
WIRE & CABLE PRODUCTS -- 0.3%
Belden, Inc.*
Company Guar. Notes
5.25% due 07/15/2024*........... 330,000 305,250
General Cable Corp.
Company Guar. Notes
5.75% due 10/01/2022............ 1,050,000 892,500
------------
1,197,750
------------
TOTAL U.S. CORPORATE BONDS & NOTES
(cost $196,995,052)............. 185,427,019
------------
FOREIGN CORPORATE BONDS & NOTES -- 22.9%
AEROSPACE/DEFENSE -- 0.1%
BAE Systems PLC
Senior Notes
4.13% due 06/08/2022............ GBP 300,000 481,113
------------
AGRICULTURAL CHEMICALS -- 0.3%
Consolidated Energy Finance SA
Company Guar. Notes
6.75% due 10/15/2019*........... 1,100,000 1,039,500
------------
AIRLINES -- 0.3%
Air Canada
Senior Sec. Notes
6.75% due 10/01/2019*........... 940,000 984,744
Latam Airlines Group SA
Senior Notes
7.25% due 06/09/2020*........... 375,000 331,875
------------
1,316,619
------------
AIRPORT DEVELOPMENT/MAINTENANCE -- 0.3%
Heathrow Funding, Ltd.
Senior Sec. Notes
1.88% due 05/23/2024............ EUR 900,000 1,038,657
Heathrow Funding, Ltd.
Senior Sec. Notes
6.75% due 12/03/2028............ GBP 200,000 395,774
------------
1,434,431
------------
AUTO-CARS/LIGHT TRUCKS -- 0.3%
BMW Finance NV
Company Guar. Notes
3.38% due 12/14/2018............ GBP 150,000 232,715
Daimler AG
Senior Notes
2.75% due 12/04/2020............ GBP 60,000 90,297
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
AUTO-CARS/LIGHT TRUCKS (CONTINUED)
Hyundai Capital Services, Inc.
Senior Notes
4.38% due 07/27/2016*................ $ 595,000 $ 609,909
Volkswagen International Finance NV
Company Guar. Notes
2.38% due 03/22/2017*................ 254,000 250,292
----------
1,183,213
----------
AUTO/TRUCK PARTS & EQUIPMENT-ORIGINAL -- 0.1%
Tenedora Nemak SA de CV
Senior Notes
5.50% due 02/28/2023*................ 250,000 245,000
Tupy Overseas SA
Company Guar. Notes
6.63% due 07/17/2024................. 290,000 255,200
----------
500,200
----------
BANKS-COMMERCIAL -- 4.7%
Abbey National Treasury Services PLC
Company Guar. Notes
1.13% due 01/14/2022................. EUR 625,000 675,775
Abbey National Treasury Services PLC
Company Guar. Notes
1.38% due 03/13/2017................. 129,000 128,995
Abbey National Treasury Services PLC
Company Guar. Notes
3.88% due 10/15/2029................. GBP 100,000 157,267
Banco ABC Brasil SA
Senior Notes
8.50% due 03/28/2016*(4)............. BRL 3,100,000 732,681
Banco de Bogota SA
Sub. Notes
5.38% due 02/19/2023................. 310,000 301,475
Banco de Credito del Peru/Panama
Senior Notes
5.38% due 09/16/2020................. 200,000 214,440
Bank of Ireland
Senior Notes
2.75% due 06/05/2016................. EUR 475,000 538,036
Bank of Tokyo-Mitsubishi UFJ, Ltd.
Senior Notes
1.45% due 09/08/2017*................ 629,000 624,773
Barclays Bank PLC
Senior Notes
2.13% due 02/24/2021................. EUR 200,000 234,580
Barclays Bank PLC
Senior Notes
2.25% due 06/10/2024................. EUR 350,000 408,044
BPCE SA
Senior Notes
1.38% due 05/22/2019................. EUR 400,000 456,974
BPCE SA
Sub. Notes
4.50% due 03/15/2025*................ 443,000 426,317
33
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
FOREIGN CORPORATE BONDS & NOTES (CONTINUED)
BANKS-COMMERCIAL (CONTINUED)
Cooperatieve Centrale Raiffeisen-
Boerenleenbank BA
Senior Notes
5.25% due 05/23/2041....................... GBP 130,000 $ 237,321
Cooperatieve Centrale Raiffeisen-
Boerenleenbank BA/Netherlands
Senior Notes
4.55% due 08/30/2029....................... GBP 110,000 188,900
Credit Suisse
Senior Notes
1.70% due 04/27/2018....................... 384,000 382,489
Credit Suisse AG FRS
Sub. Notes
5.75% due 09/18/2025....................... EUR 500,000 618,444
Credit Suisse Group Funding Guernsey, Ltd.
Company Guar. Notes
4.88% due 05/15/2045*...................... 322,000 315,543
Credit Suisse New York
Sub. Notes
5.40% due 01/14/2020....................... 944,000 1,046,442
DBS Group Holdings, Ltd.
Senior Notes
2.25% due 07/16/2019*...................... 691,000 695,140
Hana Bank
Sub. Notes
4.38% due 09/30/2024*...................... 200,000 205,558
HBOS PLC
Sub. Notes
4.50% due 03/18/2030....................... EUR 300,000 370,212
ICICI Bank, Ltd.
Senior Notes
5.75% due 11/16/2020....................... 200,000 222,775
ING Bank NV
Senior Notes
4.00% due 03/15/2016*...................... 489,000 495,670
ING Bank NV
Senior Notes
5.38% due 04/15/2021....................... GBP 200,000 347,541
Intesa Sanpaolo SpA
Senior Notes
2.00% due 06/18/2021....................... EUR 250,000 280,433
Intesa Sanpaolo SpA
Senior Notes
3.50% due 01/17/2022....................... EUR 825,000 1,002,015
Intesa Sanpaolo SpA
Sub. Notes
5.02% due 06/26/2024*...................... 554,000 546,686
Kookmin Bank
Senior Notes
1.63% due 07/14/2017*...................... 855,000 854,227
Malayan Banking Bhd VRS
Sub. Notes
3.25% due 09/20/2022....................... 500,000 500,383
National Australia Bank, Ltd.
Senior Notes
2.75% due 03/09/2017....................... 473,000 484,291
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
BANKS-COMMERCIAL (CONTINUED)
National Australia Bank, Ltd.
Senior Notes
2.75% due 08/08/2022.................... EUR 450,000 $ 543,960
Nordea Bank AB
Senior Notes
2.13% due 11/13/2019.................... GBP 100,000 151,956
Oversea-Chinese Banking Corp., Ltd. VRS
Sub. Notes
4.00% due 10/15/2024*................... 200,000 204,778
PKO Bank Polski SA
Senior Notes
4.63% due 09/26/2022*................... 400,000 412,520
Sberbank of Russia Via SB Capital SA
Senior Notes
6.13% due 02/07/2022.................... 400,000 406,432
Siam Commercial Bank PCL
Senior Notes
3.50% due 04/07/2019*................... 200,000 204,919
Skandinaviska Enskilda Banken AB
Senior Notes
1.88% due 11/14/2019.................... EUR 400,000 466,303
Standard Chartered Bank
Sub. Notes
5.88% due 09/26/2017.................... EUR 500,000 589,339
Standard Chartered PLC
Senior Notes
1.63% due 06/13/2021.................... EUR 300,000 327,742
Standard Chartered PLC
Senior Notes
2.25% due 04/17/2020*................... 615,000 610,912
Standard Chartered PLC
Sub. Notes
3.63% due 11/23/2022.................... EUR 500,000 537,605
Svenska Handelsbanken AB FRS
Sub. Notes
2.66% due 01/15/2024.................... EUR 600,000 687,686
Svenska Handelsbanken AB
Senior Notes
3.00% due 11/20/2020.................... GBP 225,000 352,306
Turkiye Is Bankasi
Senior Notes
5.00% due 04/30/2020*................... 200,000 193,750
Zenith Bank PLC
Senior Notes
6.25% due 04/22/2019*................... 300,000 270,000
-----------
19,653,635
-----------
BANKS-MONEY CENTER -- 0.6%
ABN AMRO Bank NV
Senior Notes
2.50% due 11/29/2023.................... EUR 265,000 318,193
ABN AMRO Bank NV
Senior Notes
4.13% due 03/28/2022.................... EUR 350,000 457,284
34
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
FOREIGN CORPORATE BONDS & NOTES (CONTINUED)
BANKS-MONEY CENTER (CONTINUED)
Bank of Scotland PLC
Sub. Notes
6.38% due 08/16/2019*..................... GBP 190,000 $ 322,272
Lloyds Bank PLC
Senior Notes
6.50% due 09/17/2040...................... GBP 150,000 313,058
Lloyds Bank PLC VRS
Sub. Notes
11.88% due 12/16/2021..................... EUR 600,000 751,729
Mizuho Bank, Ltd.
Company Guar. Notes
2.45% due 04/16/2019*..................... 275,000 276,868
----------
2,439,404
----------
BANKS-SPECIAL PURPOSE -- 0.2%
Bank Nederlandse Gemeenten NV
Senior Notes
1.88% due 12/07/2018...................... GBP 100,000 153,703
Bank Nederlandse Gemeenten NV
Senior Notes
2.63% due 09/01/2020...................... EUR 500,000 623,866
Burgan Finance No. 1 Jersey, Ltd.
Company Guar. Notes
7.88% due 09/29/2020...................... 200,000 203,500
----------
981,069
----------
BEVERAGES-NON-ALCOHOLIC -- 0.2%
Coca-Cola Femsa SAB de CV
Company Guar. Notes
2.38% due 11/26/2018...................... 742,000 747,491
----------
BEVERAGES-WINE/SPIRITS -- 0.3%
Diageo Capital PLC
Company Guar. Notes
5.75% due 10/23/2017...................... 487,000 529,040
Pernod Ricard SA
Senior Notes
2.00% due 06/22/2020...................... EUR 600,000 689,058
----------
1,218,098
----------
BREWERY -- 0.1%
Anadolu Efes Biracilik Ve Malt Sanayii AS
Senior Notes
3.38% due 11/01/2022...................... 350,000 290,063
----------
BUILDING PRODUCTS-CEMENT -- 0.1%
West China Cement, Ltd.
Company Guar. Notes
6.50% due 09/11/2019...................... 320,000 311,997
----------
BUILDING-HEAVY CONSTRUCTION -- 0.1%
Alam Synergy Pte, Ltd.
Company Guar. Notes
6.95% due 03/27/2020...................... 290,000 230,550
Empresas ICA SAB de CV
Company Guar. Notes
8.88% due 05/29/2024*..................... 225,000 98,438
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
BUILDING-HEAVY CONSTRUCTION (CONTINUED)
Odebrecht Finance, Ltd.
Company Guar. Notes
4.38% due 04/25/2025...................... $ 290,000 $ 166,750
----------
495,738
----------
BUILDING-RESIDENTIAL/COMMERCIAL -- 0.3%
Mattamy Group Corp.
Senior Notes
6.50% due 11/15/2020*..................... 1,325,000 1,285,250
----------
CABLE/SATELLITE TV -- 0.6%
Altice SA
Company Guar. Notes
7.75% due 05/15/2022*..................... 885,000 805,350
Numericable Group SA
Senior Sec. Notes
6.00% due 05/15/2022*..................... 1,020,000 983,025
Unitymedia Hessen GmbH & Co KG /
Unitymedia NRW GmbH
Senior Sec. Notes
5.00% due 01/15/2025*..................... 525,000 493,500
----------
2,281,875
----------
CELLULAR TELECOM -- 0.2%
Empresa Nacional de Telecomunicaciones SA
Senior Notes
4.88% due 10/30/2024...................... 450,000 447,607
Mobile Telesystems OJSC via MTS
International Funding, Ltd.
Senior Notes
5.00% due 05/30/2023...................... 250,000 224,375
----------
671,982
----------
CHEMICALS-DIVERSIFIED -- 0.2%
NOVA Chemicals Corp.
Senior Notes
5.00% due 05/01/2025*..................... 800,000 752,000
----------
CHEMICALS-PLASTICS -- 0.1%
Mexichem SAB de CV
Company Guar. Notes
5.88% due 09/17/2044*..................... 440,000 371,800
----------
COAL -- 0.1%
Indo Energy Finance BV
Senior Sec. Notes
7.00% due 05/07/2018...................... 450,000 213,750
----------
COMMERCIAL SERVICES-FINANCE -- 0.1%
Experian Finance PLC
Company Guar. Notes
4.75% due 11/23/2018...................... GBP 125,000 204,917
----------
CONSUMER PRODUCTS-MISC. -- 0.1%
Kimberly-Clark de Mexico SAB de CV
Senior Notes
3.25% due 03/12/2025*..................... 413,000 399,160
----------
35
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
FOREIGN CORPORATE BONDS & NOTES (CONTINUED)
CRUISE LINES -- 0.2%
Royal Caribbean Cruises, Ltd.
Senior Notes
7.50% due 10/15/2027.................. $ 37,000 $ 42,920
Viking Cruises, Ltd.
Senior Notes
6.25% due 05/15/2025*................. 700,000 684,250
----------
727,170
----------
DIAMONDS/PRECIOUS STONES -- 0.0%
Petra Diamonds US Treasury PLC
Sec. Notes
8.25% due 05/31/2020*................. 200,000 187,000
----------
DISPOSABLE MEDICAL PRODUCTS -- 0.2%
ConvaTec Finance International SA
Senior Notes
8.25% due 01/15/2019*................. 800,000 786,000
----------
DIVERSIFIED BANKING INSTITUTIONS -- 2.1%
BNP Paribas SA
Senior Notes
2.88% due 09/26/2023.................. EUR 400,000 488,068
Credit Agricole SA
Senior Notes
3.13% due 02/05/2026.................. EUR 500,000 617,704
Credit Agricole SA
Sub. Notes
4.38% due 03/17/2025*................. 439,000 423,912
Credit Agricole SA
Senior Notes
5.50% due 12/17/2021.................. GBP 250,000 438,645
Deutsche Bank AG
Senior Notes
1.88% due 02/13/2018.................. 1,278,000 1,274,473
Deutsche Bank AG
Sub. Notes
4.50% due 04/01/2025.................. 547,000 529,973
HSBC Holdings PLC
Sub. Notes
4.25% due 08/18/2025.................. 393,000 387,261
HSBC Holdings PLC
Senior Notes
6.50% due 05/20/2024.................. GBP 150,000 280,250
Royal Bank of Scotland Group PLC
Senior Notes
1.63% due 06/25/2019.................. EUR 700,000 780,143
Royal Bank of Scotland PLC
Senior Notes
6.88% due 05/17/2025.................. GBP 75,000 144,050
Royal Bank of Scotland PLC VRS
Sub. Notes
10.50% due 03/16/2022................. EUR 700,000 876,487
Societe Generale SA
Senior Notes
5.00% due 12/20/2018.................. GBP 240,000 396,968
UBS AG
Senior Notes
1.80% due 03/26/2018.................. 745,000 744,622
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
DIVERSIFIED BANKING INSTITUTIONS (CONTINUED)
UBS AG VRS
Sub. Notes
4.75% due 02/12/2026...................... EUR 600,000 $ 704,363
UBS AG VRS
Sub. Notes
5.25% due 06/21/2021...................... GBP 120,000 184,911
UBS AG
Sub. Notes
7.63% due 08/17/2022...................... 294,000 338,243
----------
8,610,073
----------
DIVERSIFIED MANUFACTURING OPERATIONS -- 0.1%
Ingersoll-Rand Luxembourg Finance SA
Company Guar. Notes
4.65% due 11/01/2044...................... 194,000 184,086
Siemens Financieringsmaatschappij NV
Company Guar. Notes
4.40% due 05/27/2045*..................... 287,000 293,744
----------
477,830
----------
DIVERSIFIED MINERALS -- 0.5%
Anglo American Capital PLC
Company Guar. Notes
2.88% due 11/20/2020...................... EUR 400,000 379,623
Anglo American Capital PLC
Company Guar. Notes
4.13% due 04/15/2021*..................... 401,000 341,683
Anglo American Capital PLC
Company Guar. Notes
4.88% due 05/14/2025*..................... 169,000 135,333
FMG Resources August 2006 Pty, Ltd.
Company Guar. Notes
6.88% due 04/01/2022*..................... 717,000 462,465
FMG Resources August 2006 Pty, Ltd.
Senior Sec. Notes
9.75% due 03/01/2022*..................... 332,000 309,175
Teck Resources, Ltd.
Company Guar. Notes
2.50% due 02/01/2018...................... 284,000 229,862
Volcan Cia Minera SAA
Company Guar. Notes
5.38% due 02/02/2022*..................... 300,000 248,250
----------
2,106,391
----------
E-COMMERCE/PRODUCTS -- 0.1%
Alibaba Group Holding, Ltd.
Company Guar. Notes
3.60% due 11/28/2024...................... 280,000 261,565
----------
ELECTRIC-DISTRIBUTION -- 0.1%
State Grid Overseas Investment 2014, Ltd.
Company Guar. Notes
4.13% due 05/07/2024*..................... 200,000 210,627
Vattenfall AB
Senior Notes
6.88% due 04/15/2039...................... GBP 50,000 100,788
----------
311,415
----------
36
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
FOREIGN CORPORATE BONDS & NOTES (CONTINUED)
ELECTRIC-GENERATION -- 0.1%
Electricite de France SA
Senior Notes
6.00% due 01/22/2114*...................... $ 236,000 $ 248,855
----------
ELECTRIC-INTEGRATED -- 0.8%
Colbun SA
Senior Notes
4.50% due 07/10/2024....................... 525,000 520,924
Empresas Publicas de Medellin ESP
Senior Notes
8.38% due 02/01/2021....................... COP 266,000,000 86,278
Enel Finance International NV
Company Guar. Notes
5.00% due 09/14/2022....................... EUR 825,000 1,134,067
Enel Finance International NV
Company Guar. Notes
5.63% due 08/14/2024....................... GBP 100,000 175,101
GDF Suez
Senior Notes
2.38% due 05/19/2026....................... EUR 700,000 835,204
Scottish Power UK PLC
Senior Notes
8.38% due 02/20/2017....................... GBP 300,000 494,358
SSE PLC
Senior Notes
5.00% due 10/01/2018....................... GBP 90,000 147,310
----------
3,393,242
----------
ELECTRIC-TRANSMISSION -- 0.1%
National Grid Electricity Transmission PLC
Senior Notes
6.50% due 07/27/2028....................... GBP 150,000 304,523
----------
ELECTRONIC COMPONENTS-MISC. -- 0.0%
Flextronics International, Ltd.
Company Guar. Notes
4.75% due 06/15/2025*...................... 111,000 107,528
----------
ENGINEERING/R&D SERVICES -- 0.1%
ABB Finance BV
Company Guar. Notes
2.63% due 03/26/2019....................... EUR 200,000 238,499
----------
FINANCE-INVESTMENT BANKER/BROKER -- 0.0%
UBS Group Funding Co.
4.13% due 09/24/2025*...................... 202,000 201,029
----------
FINANCE-LEASING COMPANIES -- 0.4%
Aircastle, Ltd.
Senior Notes
5.50% due 02/15/2022....................... 385,000 388,850
Fly Leasing, Ltd.
Senior Notes
6.75% due 12/15/2020....................... 1,225,000 1,255,625
----------
1,644,475
----------
FOOD-MEAT PRODUCTS -- 0.1%
BRF SA
Senior Notes
7.75% due 05/22/2018*(4)................... BRL 1,000,000 205,574
----------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
FOOD-MISC./DIVERSIFIED -- 0.0%
Nestle Finance International, Ltd.
Company Guar. Notes
2.25% due 11/30/2023................. GBP 95,000 $ 143,928
----------
FOOD-RETAIL -- 0.3%
Carrefour SA
Senior Notes
4.00% due 04/09/2020................. EUR 415,000 524,809
Cencosud SA
Company Guar. Notes
5.15% due 02/12/2025................. 375,000 366,047
Tesco PLC
Senior Notes
5.88% due 09/12/2016................. EUR 450,000 526,395
----------
1,417,251
----------
GAMBLING (NON-HOTEL) -- 0.1%
International Game Technology PLC
Senior Sec. Notes
6.50% due 02/15/2025*................ 575,000 517,500
----------
GAS-TRANSPORTATION -- 0.1%
National Grid Gas PLC
Senior Notes
6.00% due 06/07/2017................. GBP 300,000 487,956
National Grid Gas PLC
Senior Notes
6.00% due 05/13/2038................. GBP 60,000 121,649
----------
609,605
----------
GOLD MINING -- 0.2%
Gold Fields Orogen Holding BVI, Ltd.
Company Guar. Notes
4.88% due 10/07/2020................. 450,000 362,250
Goldcorp, Inc.
Senior Notes
5.45% due 06/09/2044................. 337,000 311,934
Kinross Gold Corp.
Company Guar. Notes
5.95% due 03/15/2024................. 175,000 142,212
----------
816,396
----------
INDUSTRIAL GASES -- 0.0%
Linde Finance BV
Company Guar. Notes
5.88% due 04/24/2023................. GBP 85,000 158,440
----------
INSURANCE-MULTI-LINE -- 0.1%
XLIT, Ltd.
Company Guar. Notes
4.45% due 03/31/2025................. 194,000 194,140
XLIT, Ltd.
Company Guar. Notes
5.50% due 03/31/2045................. 439,000 413,190
----------
607,330
----------
INVESTMENT MANAGEMENT/ADVISOR SERVICES -- 0.1%
China Cinda Finance 2015 I, Ltd.
Company Guar. Notes
4.25% due 04/23/2025*................ 380,000 351,363
----------
37
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
FOREIGN CORPORATE BONDS & NOTES (CONTINUED)
MACHINERY-CONSTRUCTION & MINING -- 0.1%
Ferreycorp SAA
Company Guar. Notes
4.88% due 04/26/2020........................ $ 300,000 $ 277,500
----------
MACHINERY-GENERAL INDUSTRIAL -- 0.2%
Alstom SA
Senior Notes
3.00% due 07/08/2019........................ EUR 400,000 475,695
ATS Automation Tooling Systems, Inc.
Senior Notes
6.50% due 06/15/2023*....................... 470,000 471,175
----------
946,870
----------
MEDICAL-DRUGS -- 0.8%
Grifols Worldwide Operations, Ltd.
Company Guar. Notes
5.25% due 04/01/2022........................ 1,275,000 1,261,459
Roche Finance Europe BV
Company Guar. Notes
5.38% due 08/29/2023........................ GBP 150,000 277,594
Valeant Pharmaceuticals International, Inc.
Company Guar. Notes
5.63% due 12/01/2021*....................... 340,000 323,000
Valeant Pharmaceuticals International, Inc.
Company Guar. Notes
5.88% due 05/15/2023*....................... 1,518,000 1,450,639
----------
3,312,692
----------
MEDICAL-GENERIC DRUGS -- 0.3%
Actavis Funding SCS
Company Guar. Notes
3.00% due 03/12/2020........................ 385,000 385,337
Actavis Funding SCS
Company Guar. Notes
3.85% due 06/15/2024........................ 338,000 331,085
Perrigo Finance PLC
Company Guar. Notes
3.50% due 12/15/2021........................ 444,000 438,365
----------
1,154,787
----------
METAL-COPPER -- 0.1%
First Quantum Minerals, Ltd.
Company Guar. Notes
7.25% due 05/15/2022*....................... 537,000 332,940
----------
METAL-DIVERSIFIED -- 0.1%
Glencore Finance Europe SA
Company Guar. Notes
6.50% due 02/27/2019........................ GBP 300,000 414,616
----------
METAL-IRON -- 0.2%
OJSC Novolipetsk Steel via Steel
Funding, Ltd.
Senior Notes
4.45% due 02/19/2018........................ 250,000 245,600
OJSC Novolipetsk Steel via Steel Funding,
Ltd.
Senior Notes
4.95% due 09/26/2019........................ 300,000 290,925
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
METAL-IRON (CONTINUED)
Samarco Mineracao SA
Senior Notes
4.13% due 11/01/2022*................. $ 200,000 $ 159,000
Vale SA
Senior Notes
4.38% due 03/24/2018.................. EUR 300,000 320,330
----------
1,015,855
----------
MINING SERVICES -- 0.2%
Consolidated Minerals, Ltd.
Senior Sec. Notes
8.00% due 05/15/2020*................. 974,000 681,800
----------
OIL & GAS DRILLING -- 0.2%
Pacific Drilling SA
Senior Sec. Notes
5.38% due 06/01/2020*................. 1,050,000 619,500
----------
OIL COMPANIES-EXPLORATION & PRODUCTION -- 0.8%
Anadarko Finance Co.
Company Guar. Notes
7.50% due 05/01/2031.................. 165,000 201,325
Baytex Energy Corp.
Company Guar. Notes
5.13% due 06/01/2021*................. 761,000 604,995
KazMunayGas National Co. JSC
Senior Notes
6.38% due 04/09/2021.................. 450,000 440,437
MEG Energy Corp.
Company Guar. Notes
6.38% due 01/30/2023*................. 744,000 582,180
MIE Holdings Corp.
Company Guar. Notes
7.50% due 04/25/2019*................. 420,000 193,200
Novatek OAO via Novatek Finance, Ltd.
Senior Notes
6.60% due 02/03/2021.................. 200,000 200,000
Pertamina Persero PT
Senior Notes
4.88% due 05/03/2022*................. 500,000 474,984
Sinopec Group Overseas Development
2014, Ltd.
Company Guar. Notes
4.38% due 04/10/2024*................. 300,000 312,118
Talisman Energy, Inc.
Senior Notes
5.50% due 05/15/2042.................. 645,000 498,270
----------
3,507,509
----------
OIL COMPANIES-INTEGRATED -- 1.1%
BP Capital Markets PLC
Company Guar. Notes
1.38% due 11/06/2017.................. 425,000 424,362
BP Capital Markets PLC
Company Guar. Notes
2.97% due 02/27/2026.................. EUR 450,000 544,801
38
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
FOREIGN CORPORATE BONDS & NOTES (CONTINUED)
OIL COMPANIES-INTEGRATED (CONTINUED)
BP Capital Markets PLC
Company Guar. Notes
3.54% due 11/04/2024.............. $ 316,000 $ 313,544
BP Capital Markets PLC
Company Guar. Notes
4.33% due 12/10/2018.............. GBP 100,000 162,466
BP Capital Markets PLC
Company Guar. Notes
4.74% due 03/11/2021.............. 243,000 268,828
Ecopetrol SA
Senior Notes
4.13% due 01/16/2025.............. 400,000 337,000
ENI Finance International SA
Company Guar. Notes
5.00% due 01/27/2019.............. GBP 50,000 82,491
Pacific Rubiales Energy Corp.
Company Guar. Notes
5.13% due 03/28/2023.............. 500,000 172,500
Petrobras Global Finance BV
Company Guar. Notes
5.38% due 01/27/2021.............. 400,000 291,000
Petroleos de Venezuela SA
Company Guar. Notes
5.38% due 04/12/2027.............. 350,000 111,825
Petroleos de Venezuela SA
Company Guar. Notes
8.50% due 11/02/2017.............. 900,000 600,750
Petroleos Mexicanos
Company Guar. Notes
5.50% due 06/27/2044.............. 221,000 177,352
Petronas Capital, Ltd.
Company Guar. Notes
3.50% due 03/18/2025.............. 275,000 261,842
Shell International Finance BV
Company Guar. Notes
2.13% due 05/11/2020.............. 309,000 309,320
Total Capital International SA
Company Guar. Notes
2.13% due 11/19/2021.............. EUR 300,000 354,311
Total Capital International SA
Company Guar. Notes
2.25% due 12/17/2020.............. GBP 95,000 144,243
----------
4,556,635
----------
OIL REFINING & MARKETING -- 0.0%
Thai Oil PCL
Senior Notes
3.63% due 01/23/2023*............. 200,000 197,368
----------
PAPER & RELATED PRODUCTS -- 0.4%
Cascades, Inc.
Senior Notes
5.75% due 07/15/2023*............. 900,000 859,500
Fibria Overseas Finance, Ltd.
Company Guar. Notes
5.25% due 05/12/2024.............. 250,000 240,625
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
PAPER & RELATED PRODUCTS (CONTINUED)
Inversiones CMPC SA
Company Guar. Notes
4.50% due 04/25/2022...................... $ 250,000 $ 247,967
Klabin Finance SA
Company Guar. Notes
5.25% due 07/16/2024*..................... 200,000 177,000
----------
1,525,092
----------
PETROCHEMICALS -- 0.2%
Alpek SAB de CV
Company Guar. Notes
5.38% due 08/08/2023*..................... 400,000 412,000
Braskem Finance, Ltd.
Company Guar. Notes
5.75% due 04/15/2021...................... 400,000 328,000
----------
740,000
----------
PRINTING-COMMERCIAL -- 0.2%
Cimpress NV
Company Guar. Notes
7.00% due 04/01/2022*..................... 890,000 858,850
----------
REAL ESTATE OPERATIONS & DEVELOPMENT -- 0.2%
China Overseas Finance Cayman VI, Ltd.
Company Guar. Notes
4.25% due 05/08/2019...................... 300,000 310,528
Country Garden Holdings Co., Ltd.
Company Guar. Notes
7.50% due 01/10/2023*..................... 200,000 197,992
Shimao Property Holdings, Ltd.
Company Guar. Notes
6.63% due 01/14/2020...................... 200,000 201,515
Yuzhou Properties Co., Ltd.
Company Guar. Notes
8.63% due 01/24/2019...................... 280,000 275,054
----------
985,089
----------
RETAIL-MAJOR DEPARTMENT STORES -- 0.1%
LS Finance 2022, Ltd.
Company Guar. Notes
4.25% due 10/16/2022...................... 300,000 296,689
----------
SATELLITE TELECOM -- 0.3%
Intelsat Jackson Holdings SA
Company Guar. Notes
7.50% due 04/01/2021...................... 810,000 747,225
Intelsat Luxembourg SA
Company Guar. Notes
7.75% due 06/01/2021...................... 505,000 333,300
----------
1,080,525
----------
SECURITY SERVICES -- 0.2%
Garda World Security Corp.
Company Guar. Notes
7.25% due 11/15/2021*..................... 1,111,000 1,013,788
----------
39
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
FOREIGN CORPORATE BONDS & NOTES (CONTINUED)
SOVEREIGN AGENCY -- 0.0%
Japan Bank for International Cooperation
Government Guar. Notes
2.63% due 12/15/2020....................... GBP 100,000 $ 156,790
----------
SPECIAL PURPOSE ENTITY -- 0.0%
Hellas Telecommunications Luxembourg II
SCA FRS
Sub. Notes
6.26% due
01/15/2015*+(3)(4)(5)(11).................. 1,330,000 0
----------
STEEL-PRODUCERS -- 0.2%
ArcelorMittal
Senior Notes
7.00% due 02/25/2022....................... 943,000 858,130
----------
STEEL-SPECIALTY -- 0.0%
GTL Trade Finance, Inc.
Company Guar. Notes
7.25% due 04/16/2044*...................... 200,000 151,000
----------
SUGAR -- 0.1%
Cosan Luxembourg SA
Company Guar. Notes
9.50% due 03/14/2018*(4)................... BRL 1,590,000 313,548
----------
SUPRANATIONAL BANKS -- 0.3%
European Investment Bank
Senior Notes
2.63% due 03/15/2035....................... EUR 400,000 532,747
European Investment Bank
Senior Notes
4.63% due 10/12/2054....................... GBP 30,000 65,850
North American Development Bank
Senior Notes
2.30% due 10/10/2018....................... 584,000 597,179
----------
1,195,776
----------
TELECOM SERVICES -- 0.4%
Altice Financing SA
Senior Sec. Notes
6.50% due 01/15/2022*...................... 918,000 886,338
Bharti Airtel International Netherlands BV
Company
Guar. Notes
5.35% due 05/20/2024....................... 330,000 353,276
Virgin Media Secured Finance PLC
Senior Sec. Notes
5.25% due 01/15/2026*...................... 500,000 460,000
----------
1,699,614
----------
TELEPHONE-INTEGRATED -- 0.7%
British Telecom PLC
Senior Notes
6.63% due 06/23/2017....................... GBP 150,000 245,234
Empresa de Telecomunicaciones de Bogota
Senior Notes
7.00% due 01/17/2023*...................... COP 640,000,000 180,312
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
TELEPHONE-INTEGRATED (CONTINUED)
Koninklijke KPN NV
Senior Notes
5.75% due 09/17/2029............... GBP 135,000 $ 231,957
Oi SA
Senior Notes
9.75% due 09/15/2016*(4)........... BRL 575,000 97,581
Orange SA
Senior Notes
7.25% due 11/10/2020............... GBP 50,000 92,752
Orange SA
Senior Notes
8.00% due 12/20/2017............... GBP 135,000 231,485
Telecom Italia Capital SA Company
Guar. Notes
7.72% due 06/04/2038............... 738,000 800,730
Telecom Italia SpA
Senior Notes
3.25% due 01/16/2023............... EUR 400,000 434,307
Telefonica Emisiones SAU Company
Guar. Notes
4.69% due 11/11/2019............... EUR 200,000 254,679
Telefonica Emisiones SAU Company
Guar. Notes
4.75% due 02/07/2017............... EUR 300,000 354,512
-----------
2,923,549
-----------
TELEVISION -- 0.0%
Myriad International Holdings BV
Company Guar. Notes
5.50% due 07/21/2025............... 200,000 196,088
-----------
TRANSPORT-MARINE -- 0.1%
PT Pelabuhan Indonesia II
Senior Notes
4.25% due 05/05/2025*.............. 550,000 480,524
-----------
TRANSPORT-RAIL -- 0.2%
Canadian Pacific Railway Co.
Senior Notes
6.13% due 09/15/2115............... 312,000 327,702
Kazakhstan Temir Zholy Finance BV
Company Guar. Notes
6.95% due 07/10/2042............... 400,000 312,480
-----------
640,182
-----------
TOTAL FOREIGN CORPORATE BONDS & NOTES
(cost $106,449,453)................ 94,839,593
-----------
FOREIGN GOVERNMENT OBLIGATIONS -- 9.4%
ELECTRIC-DISTRIBUTION -- 0.1%
Hydro-Quebec
Government Guar. Notes
1.38% due 06/19/2017............... 527,000 531,485
-----------
SOVEREIGN -- 9.3%
Commonwealth of Jamaica
Senior Notes
8.00% due 06/24/2019............... 160,000 175,200
40
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
FOREIGN GOVERNMENT OBLIGATIONS (CONTINUED)
SOVEREIGN (CONTINUED)
Commonwealth of Jamaica
Senior Notes
8.00% due 03/15/2039......... $ 250,000 $ 274,000
Dominican Republic
Senior Notes
5.50% due 01/27/2025*........ 415,000 400,475
Dominican Republic
Senior Notes
5.88% due 04/18/2024*........ 370,000 364,450
Dominican Republic
Senior Bonds
5.88% due 04/18/2024......... 380,000 374,300
Dominican Republic
Senior Notes
6.60% due 01/28/2024*........ 260,000 269,100
Dominican Republic
Senior Bonds
7.45% due 04/30/2044......... 350,000 357,875
Dominican Republic
Senior Notes
8.63% due 04/20/2027......... 350,000 405,125
Federal Republic of Germany
Bonds
0.25% due 10/11/2019......... EUR 900,000 1,020,872
Federal Republic of Germany
Bonds
0.50% due 02/15/2025......... EUR 1,425,000 1,587,854
Federal Republic of Germany
Bonds
1.75% due 02/15/2024......... EUR 750,000 933,543
Federal Republic of Germany
Bonds
2.25% due 09/04/2021......... EUR 225,000 283,688
Federal Republic of Germany
Bonds
2.50% due 08/15/2046......... EUR 100,000 144,637
Federal Republic of Germany
Bonds
6.25% due 01/04/2030......... EUR 775,000 1,489,981
Government of Canada
Senior Notes
0.88% due 02/14/2017......... 527,000 528,939
Government of Romania
Senior Notes
4.38% due 08/22/2023......... 800,000 833,600
Government of Romania
Senior Notes
4.88% due 01/22/2024......... 700,000 755,125
Instituto de Credito Oficial
Government Guar. Notes
4.88% due 02/01/2018......... EUR 425,000 523,372
Islamic Republic of Pakistan
Senior Notes
8.25% due 09/30/2025*........ 500,000 513,750
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
SOVEREIGN (CONTINUED)
Lebanese Republic
Senior Notes
4.00% due 12/31/2017......... $ 266,250 $ 262,634
Lebanese Republic
Senior Notes
6.60% due 11/27/2026......... 700,000 698,306
Oriental Republic of Uruguay
Senior Notes
5.10% due 06/18/2050......... 760,000 666,900
Oriental Republic of Uruguay
Senior Notes
7.88% due 01/15/2033......... 500,000 625,000
Republic of Armenia
Senior Notes
6.00% due 09/30/2020......... 750,000 709,875
Republic of Armenia
Notes
7.15% due 03/26/2025......... 700,000 660,254
Republic of Colombia
Senior Notes
4.50% due 01/28/2026......... 645,000 627,262
Republic of Costa Rica
Senior Notes
7.16% due 03/12/2045*........ 280,000 247,800
Republic of Croatia
Senior Notes
5.50% due 04/04/2023*........ 426,000 436,650
Republic of Croatia
Senior Bonds
6.00% due 01/26/2024......... 950,000 1,001,062
Republic of Croatia
Senior Notes
6.75% due 11/05/2019......... 600,000 652,200
Republic of El Salvador
Senior Notes
7.63% due 02/01/2041......... 740,000 653,975
Republic of Hungary
Senior Notes
4.00% due 03/25/2019......... 350,000 363,125
Republic of Hungary
Senior Notes
5.75% due 11/22/2023......... 670,000 745,375
Republic of Hungary
Senior Notes
7.63% due 03/29/2041......... 170,000 225,675
Republic of Indonesia
Senior Notes
5.88% due 01/15/2024*........ 430,000 455,244
Republic of Indonesia
Senior Notes
6.63% due 02/17/2037......... 117,000 123,038
Republic of Italy
Senior Notes
5.25% due 12/07/2034......... GBP 155,000 265,099
41
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
FOREIGN GOVERNMENT OBLIGATIONS (CONTINUED)
SOVEREIGN (CONTINUED)
Republic of Italy
Senior Notes
6.00% due 08/04/2028....... GBP 95,000 $176,546
Republic of Ivory Coast
Senior Notes
5.38% due 07/23/2024....... 400,000 348,464
Republic of Ivory Coast
Senior Notes
6.38% due 03/03/2028....... 200,000 177,432
Republic of Kazakhstan
Senior Notes
4.88% due 10/14/2044....... 850,000 673,625
Republic of Kazakhstan
Notes
5.13% due 07/21/2025*...... 440,000 423,588
Republic of Kazakhstan
6.50% due 07/21/2045*...... 275,000 258,266
Republic of Kenya
Senior Notes
6.88% due 06/24/2024*...... 860,000 779,160
Republic of Lithuania
Senior Notes
5.13% due 09/14/2017....... 200,000 215,003
Republic of Lithuania
Senior Notes
7.38% due 02/11/2020....... 500,000 600,000
Republic of Mozambique
Government Guar. Notes
6.31% due 09/11/2020....... 819,000 700,245
Republic of Panama
Senior Notes
3.75% due 03/16/2025....... 600,000 580,500
Republic of Panama
Senior Notes
6.70% due 01/26/2036....... 670,000 797,300
Republic of Paraguay
Notes
6.10% due 08/11/2044....... 750,000 733,125
Republic of Peru
Senior Notes
4.13% due 08/25/2027....... 189,000 185,220
Republic of Peru
Senior Notes
6.55% due 03/14/2037....... 500,000 573,750
Republic of Poland
Senior Notes
4.00% due 01/22/2024....... 770,000 814,275
Republic of Poland
Senior Notes
5.13% due 04/21/2021....... 50,000 56,303
Republic of Serbia
Senior Notes
7.25% due 09/28/2021....... 550,000 616,000
Republic of South Africa
Senior Notes
5.38% due 07/24/2044....... 330,000 307,312
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
SOVEREIGN (CONTINUED)
Republic of South Africa
Senior Notes
6.25% due 03/08/2041......... $ 600,000 $ 632,250
Republic of the Philippines
Senior Notes
4.00% due 01/15/2021......... 330,000 354,741
Republic of the Philippines
4.20% due 01/21/2024......... 650,000 712,528
Republic of the Philippines
Senior Notes
8.38% due 06/17/2019......... 100,000 122,999
Republic of the Philippines
Senior Notes
10.63% due 03/16/2025........ 341,000 540,414
Republic of Turkey
Senior Notes
3.25% due 03/23/2023......... 1,040,000 925,361
Republic of Turkey
Senior Notes
4.88% due 04/16/2043......... 330,000 274,725
Republic of Venezuela
Senior Notes
7.00% due 12/01/2018......... 450,000 164,250
Republic of Venezuela
Senior Notes
9.00% due 05/07/2023......... 370,000 126,725
Republic of Venezuela
Senior Notes
9.38% due 01/13/2034......... 278,000 95,910
Republic of Venezuela
Senior Bonds
11.75% due 10/21/2026........ 560,000 217,000
Republic of Venezuela
Senior Bonds
11.95% due 08/05/2031........ 555,000 217,838
Republic of Venezuela
Senior Bonds
12.75% due 08/23/2022........ 790,000 337,725
Republic of Zambia
Notes
5.38% due 09/20/2022......... 410,000 290,485
Republic of Zambia
Senior Notes
8.50% due 04/14/2024......... 750,000 600,000
United Kingdom Gilt Treasury
Bonds
4.50% due 09/07/2034......... GBP 250,000 504,404
United Mexican States
Senior Notes
3.60% due 01/30/2025......... 1,147,000 1,122,626
United Mexican States
Senior Notes
4.75% due 03/08/2044......... 770,000 702,625
42
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
FOREIGN GOVERNMENT OBLIGATIONS (CONTINUED)
SOVEREIGN (CONTINUED)
United Mexican States
Senior Notes
6.05% due 01/11/2040.................... $ 900,000 $ 985,500
-----------
38,599,580
-----------
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(cost $42,341,383)...................... 39,131,065
-----------
U.S. GOVERNMENT AGENCIES -- 4.5%
FEDERAL HOME LOAN MTG. CORP. -- 1.4%
1.89% due 02/01/2037 FRS................ 31,824 33,495
2.50% due 01/01/2028.................... 343,863 354,013
2.50% due 04/01/2028.................... 113,631 116,988
2.54% due 11/01/2037 FRS................ 195,200 208,295
3.00% due 08/01/2043.................... 1,163,350 1,178,372
3.50% due 03/01/2042.................... 438,465 458,196
3.50% due 04/01/2042.................... 455,340 475,745
3.50% due 09/01/2043.................... 532,942 557,842
3.50% due 03/01/2045.................... 551,987 575,017
3.50% due 08/01/2045.................... 184,534 192,606
4.00% due 09/01/2040.................... 409,439 437,300
4.50% due 02/01/2020.................... 11,314 11,742
4.50% due 08/01/2020.................... 33,271 34,479
4.50% due 01/01/2039.................... 31,545 34,172
4.50% due 12/01/2039.................... 19,930 22,000
5.00% due 02/01/2034.................... 40,418 45,051
5.00% due 05/01/2034.................... 57,298 63,709
5.00% due 11/01/2043.................... 374,999 413,172
5.50% due 05/01/2037.................... 102,397 113,325
6.00% due 03/01/2040.................... 82,009 92,687
6.50% due 02/01/2035.................... 26,532 31,092
Federal Home Loan Mtg. Corp. REMIC FRS
Series 3572, Class JS
6.59% due 09/15/2039(2)(10)............. 889,223 132,389
Series 3964, Class MD
2.00% due 01/15/2041(2)................. 15,238 15,394
Series 1103, Class N IO
11.57% due 06/15/2021(2)(10)............ 778 121
Federal Home Loan Mtg. Corp. Structured
Agency Credit Risk
Series 2014-HQ1, Class M1
1.84% due 08/25/2024 FRS(2)............. 133,198 133,646
Series 2014-DN1, Class M2
2.39% due 02/25/2024 FRS(2)............. 84,000 84,604
-----------
5,815,452
-----------
FEDERAL NATIONAL MTG. ASSOC. -- 2.7%
1.97% due 09/01/2035 FRS................ 142,320 149,176
2.21% due 05/01/2037 FRS................ 53,081 55,974
2.32% due 05/01/2040 FRS................ 169,402 180,523
2.34% due 07/01/2039 FRS................ 124,513 131,326
2.41% due 10/01/2035 FRS................ 132,854 141,419
2.50% due 11/01/2036 FRS................ 88,064 94,094
2.58% due 08/01/2035 FRS................ 112,685 120,387
2.94% due 10/01/2040 FRS................ 54,297 57,649
3.00% due 10/01/2027.................... 415,317 434,503
3.00% due 11/01/2027.................... 453,621 474,532
3.00% due 03/01/2042.................... 181,600 184,820
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
FEDERAL NATIONAL MTG. ASSOC. (CONTINUED)
3.00% due 12/01/2042..................... $ 189,633 $ 192,877
3.00% due 05/01/2043..................... 1,009,076 1,025,807
3.00% due October TBA.................... 388,000 393,214
3.20% due 10/01/2040 FRS................. 95,295 101,363
3.50% due 08/01/2026..................... 166,201 175,851
3.50% due 08/01/2027..................... 173,834 183,759
3.50% due 10/01/2028..................... 59,115 62,891
3.50% due 08/01/2042..................... 178,935 187,101
3.50% due 02/01/2043..................... 164,595 173,652
3.50% due October TBA.................... 1,061,000 1,106,789
4.00% due 11/01/2025..................... 254,565 271,079
4.00% due 04/01/2039..................... 212,422 226,735
4.00% due 06/01/2039..................... 473,413 513,806
4.00% due 09/01/2040..................... 391,208 418,104
4.00% due 10/01/2040..................... 463,022 494,936
4.00% due 11/01/2041..................... 369,125 394,487
4.00% due 12/01/2043..................... 13,548 14,664
4.00% due 10/01/2044..................... 168,073 179,398
4.00% due October TBA.................... 480,000 512,006
4.50% due 06/01/2019..................... 31,892 33,125
4.50% due 11/01/2022..................... 74,914 78,296
4.50% due 06/01/2023..................... 35,449 37,490
4.50% due 01/01/2039..................... 433,882 471,044
4.50% due 07/01/2041..................... 58,825 63,981
4.50% due October TBA.................... 960,000 1,040,655
5.00% due 06/01/2019..................... 24,980 26,147
5.00% due 01/01/2023..................... 17,912 19,376
5.00% due 03/01/2034..................... 32,279 35,734
5.00% due 05/01/2035..................... 20,088 22,145
5.00% due 05/01/2040..................... 151,683 167,781
5.00% due 07/01/2040..................... 161,965 178,689
5.50% due 06/01/2038..................... 53,270 59,924
6.00% due 02/01/2032..................... 5,359 6,044
6.00% due 05/01/2034..................... 3,007 3,424
6.00% due 10/01/2034..................... 22,006 24,806
6.00% due 10/01/2037..................... 15,803 17,798
7.50% due 01/01/2030..................... 1,417 1,465
8.00% due 11/01/2028..................... 5,274 6,203
Fannie Mae Connecticut Avenue Securities
Series 2014-C01, Class M1
1.79% due 01/25/2024FRS(2)............... 175,560 176,178
Federal National Mtg. Assoc., REMIC
Series 2011-117, Class MA
2.00% due 08/25/2040(2).................. 136,160 136,158
Series 1989-2, Class D
8.80% due 01/25/2019(2).................. 5,321 5,718
-----------
11,265,103
-----------
GOVERNMENT NATIONAL MTG. ASSOC. -- 0.3%
3.00% due 02/20/2045..................... 218,491 223,288
3.00% due 05/20/2045..................... 137,135 140,145
3.50% due 03/20/2045..................... 175,364 184,032
3.50% due 04/20/2045..................... 234,731 246,333
3.50% due 10/21/2045..................... 146,000 152,975
-----------
946,773
-----------
43
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
U.S. GOVERNMENT AGENCIES (CONTINUED)
TENNESSEE VALLEY AUTHORITY -- 0.1%
1.75% due 10/15/2018.................... $ 335,000 $ 341,537
4.25% due 09/15/2065.................... 156,000 156,776
-----------
498,313
-----------
TOTAL U.S. GOVERNMENT AGENCIES
(cost $18,091,509)...................... 18,525,641
-----------
U.S. GOVERNMENT TREASURIES -- 8.4%
UNITED STATES TREASURY BONDS -- 1.4%
3.00% due 05/15/2045.................... 5,585,000 5,715,460
-----------
UNITED STATES TREASURY NOTES -- 7.0%
0.13% due 04/15/2018 TIPS(12)........... 1,326,660 1,325,122
0.50% due 11/30/2016.................... 1,000,000 1,000,729
0.50% due 01/31/2017.................... 6,000,000 6,002,346
0.50% due 07/31/2017.................... 10,000,000 9,981,510
0.63% due 11/30/2017.................... 10,000,000 9,981,770
0.75% due 01/15/2017.................... 400 402
2.00% due 08/15/2025.................... 559,000 556,045
2.13% due 05/15/2025.................... 431,000 433,593
-----------
29,281,517
-----------
TOTAL U.S. GOVERNMENT TREASURIES
(cost $34,978,199)...................... 34,996,977
-----------
LOANS(6)(7) -- 0.7%
AEROSPACE/DEFENSE -- 0.1%
Vencore Inc FRS
BTL-1st Lien
5.75% due 11/23/2019.................... 520,517 519,379
-----------
E-COMMERCE/SERVICES -- 0.2%
Rentpath, Inc. FRS
BTL-2nd Lien
10.00% due 12/17/2022................... 693,906 655,741
-----------
OIL COMPANIES-EXPLORATION & PRODUCTION -- 0.0%
American Energy-Marcellus LLC FRS
BTL-2nd Lien
8.50% due 08/04/2021.................... 199,129 21,241
-----------
PUBLISHING-BOOKS -- 0.2%
Cengage Learning Acquisitions, Inc. FRS
BTL-1st Lien
7.00% due 03/31/2020.................... 748,111 743,248
-----------
SEMICONDUCTOR COMPONENTS-INTEGRATED CIRCUITS -- 0.2%
SunEdison Semiconductor, Ltd. FRS
BTL-1st Lien
6.50% due 05/27/2019.................... 825,784 826,816
-----------
TOTAL LOANS
(cost $2,948,474)....................... 2,766,425
-----------
MUNICIPAL BONDS & NOTES -- 0.4%
Ohio State University
Revenue Bonds
Series A
4.80% due 06/01/2111.................... 616,000 602,041
Port Authority of New York & New Jersey
Revenue Bonds
Series 174
4.46% due 10/01/2062.................... 725,000 701,525
SHARES/
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
MUNICIPAL BONDS & NOTES (CONTINUED)
Port Authority of New York & New Jersey
Revenue Bonds
Series 168
4.93% due 10/01/2051.................... $ 353,000 $ 379,764
----------
TOTAL MUNICIPAL BONDS & NOTES
(cost $1,687,992)....................... 1,683,330
----------
COMMON STOCKS -- 0.1%
POWER CONVERTER/SUPPLY EQUIPMENT -- 0.0%
TPT Acquisition, Inc.+(3)(4)............. 10,910 0
----------
TELEVISION -- 0.1%
ION Media Networks, Inc.+(3)(4).......... 655 423,746
----------
TOTAL COMMON STOCKS
(cost $163,656)......................... 423,746
----------
PREFERRED SECURITIES -- 0.2%
ELECTRIC-INTEGRATED -- 0.1%
Entergy Louisiana LLC
4.70%................................... 12,025 284,872
----------
SOVEREIGN AGENCY -- 0.0%
Federal Home Loan Mtg. Corp. FRS+
Series Z
8.38%................................... 11,300 55,370
----------
TELECOM SERVICES -- 0.1%
Qwest Corp.
6.13%................................... 23,325 559,800
----------
TOTAL PREFERRED SECURITIES
(cost $1,058,158)....................... 900,042
----------
PREFERRED SECURITIES/CAPITAL SECURITIES -- 4.8%
BANKS-COMMERCIAL -- 0.3%
Danske Bank A/S FRS
5.56% due 03/16/2017(13)................ GBP 50,000 76,583
Danske Bank A/S VRS
5.75% due 04/06/2020(13)................ EUR 150,000 165,481
HSBC Bank Capital Funding LP FRS
5.84% due 11/05/2031(13)................ GBP 200,000 326,754
Standard Chartered Bank VRS
8.10% due 05/11/2016(13)................ GBP 190,000 291,734
Standard Chartered PLC VRS
6.50% due 04/02/2020*(13)............... 437,000 406,516
----------
1,267,068
----------
BANKS-FIDUCIARY -- 0.1%
Bank of New York Mellon Corp. FRS
Series E
4.95% due 06/20/2020(13)................ 369,000 363,465
----------
BANKS-SUPER REGIONAL -- 0.3%
Capital One Financial Corp. FRS
Series E
5.55% due 06/01/2020(13)................ 196,000 193,550
Fifth Third Bancorp FRS
Series J
4.90% due 09/30/2019(13)................ 558,000 523,125
Wells Fargo & Co. FRS
Series U
5.88% due 06/15/2025(13)................ 386,000 395,167
44
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
PREFERRED SECURITIES/CAPITAL SECURITIES (CONTINUED)
BANKS-SUPER REGIONAL (CONTINUED)
Wells Fargo Capital X
5.95% due 12/01/2086....................... $ 223,000 $ 223,558
----------
1,335,400
----------
BUILDING SOCIETIES -- 0.1%
Nationwide Building Society FRS
6.88% due 06/20/2019(13)................... GBP 185,000 273,884
----------
DIVERSIFIED BANKING INSTITUTIONS -- 2.1%
BAC Capital Trust XIII FRS
Series F
4.00% due 10/23/2015(13)................... 1,070,000 815,875
Bank of America Corp. FRS
Series AA
6.10% due 03/17/2025(13)................... 620,000 604,500
BNP Paribas SA VRS
7.38% due 08/19/2025*(13).................. 545,000 548,406
Citigroup, Inc. FRS
Series N
5.80% due 11/15/2019(13)................... 648,000 637,794
Citigroup, Inc. FRS
5.95% due 05/15/2025(13)................... 762,000 718,185
Credit Agricole SA VRS
6.63% due 09/23/2019*(13).................. 524,000 503,695
Credit Suisse Group AG VRS
6.25% due 12/18/2024*(13).................. 570,000 534,375
Credit Suisse Group AG VRS
7.50% due 12/11/2023*(13).................. 505,000 525,831
Deutsche Bank AG VRS
7.50% due 04/30/2025(13)................... 1,200,000 1,143,000
Goldman Sachs Group, Inc. FRS
Series M
5.38% due 05/10/2020(13)................... 209,000 204,167
HSBC Holdings PLC FRS
6.38% due 03/30/2025(13)................... 219,000 208,871
JPMorgan Chase & Co. FRS
Series U
6.13% due 04/30/2024(13)................... 1,393,000 1,391,259
Societe Generale SA VRS
6.00% due 01/27/2020*(13).................. 715,000 659,588
Societe Generale SA FRS
7.00% due 12/19/2017(13)................... EUR 300,000 367,066
----------
8,862,612
----------
ELECTRIC-INTEGRATED -- 0.2%
Dominion Resources, Inc. FRS
5.75% due 10/01/2054....................... 315,000 323,269
Engie SA VRS
3.88% due 07/10/2018....................... EUR 300,000 341,266
----------
664,535
----------
FINANCE-INVESTMENT BANKER/BROKER -- 0.0%
Lehman Brothers Holdings Capital Trust VII
Escrow Security
5.86% due 11/30/2056+(4)................... 222,000 22
----------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
FINANCE-OTHER SERVICES -- 0.1%
National Rural Utilities Cooperative Finance
Corp. FRS
4.75% due 04/30/2043......................... $ 547,000 $ 542,350
------------
FINANCIAL GUARANTEE INSURANCE -- 0.2%
Assured Guaranty Municipal Holdings, Inc.
FRS
6.40% due 12/15/2066*........................ 1,046,000 766,195
------------
FOOD-DAIRY PRODUCTS -- 0.4%
Land O'Lakes Capital Trust I
7.45% due 03/15/2028*........................ 1,450,000 1,522,500
------------
INDUSTRIAL GASES -- 0.1%
Linde Finance BV FRS
8.13% due 07/14/2066......................... GBP 150,000 235,989
------------
INSURANCE-LIFE/HEALTH -- 0.0%
Prudential Financial, Inc. FRS
5.38% due 05/15/2045......................... 131,000 130,017
------------
INSURANCE-MULTI-LINE -- 0.2%
MetLife Capital Trust IV
7.88% due 12/15/2067*........................ 197,000 241,325
MetLife, Inc.
6.40% due 12/15/2066......................... 533,000 580,970
------------
822,295
------------
INSURANCE-REINSURANCE -- 0.2%
Muenchener Rueckversicherungs-
Gesellschaft AG FRS
5.77% due 06/12/2017(13)..................... EUR 400,000 473,666
Muenchener Rueckversicherungs-
Gesellschaft AG VRS
7.63% due 06/21/2028......................... GBP 225,000 381,745
------------
855,411
------------
OIL COMPANIES-INTEGRATED -- 0.1%
TOTAL SA VRS
2.25% due 02/26/2021(13)..................... EUR 375,000 386,341
------------
PIPELINES -- 0.0%
TransCanada Trust FRS
5.63% due 05/20/2075......................... 166,000 158,945
------------
TELEPHONE-INTEGRATED -- 0.2%
Orange SA VRS
4.25% due 02/07/2020(13)..................... EUR 400,000 450,312
Telefonica Europe BV VRS
4.20% due 12/04/2019(13)..................... EUR 300,000 327,678
Telefonica Europe BV VRS
6.75% due 11/26/2020(13)..................... GBP 100,000 154,149
------------
932,139
------------
TOOLS-HAND HELD -- 0.2%
Stanley Black & Decker, Inc. FRS
5.75% due 12/15/2053......................... 629,000 664,539
------------
TOTAL PREFERRED SECURITIES/CAPITAL SECURITIES
(cost $19,893,708)........................... 19,783,707
------------
TOTAL LONG-TERM INVESTMENT SECURITIES
(cost $427,146,479).......................... 401,027,378
------------
45
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT** (NOTE 3)
SHORT-TERM INVESTMENT SECURITIES -- 1.7%
TIME DEPOSITS -- 1.7%
Euro Time Deposit with State Street Bank and
Trust Co.
0.01 due 10/01/2015
(cost $7,059,000)............................ $7,059,000 $ 7,059,000
------------
REPURCHASE AGREEMENTS -- 0.5%
State Street Bank and Trust Co. Joint
Repurchase Agreement(14)
(cost $2,169,000)............................ 2,169,000 2,169,000
------------
TOTAL INVESTMENTS
(cost $436,374,479)(9)....................... 98.9% 410,255,378
Other assets less liabilities................... 1.1 4,405,671
---------- ------------
NET ASSETS 100.0% $414,661,049
========== ============
--------
* Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be sold in transactions exempt from
registration, normally to qualified institutional buyers. The Fund has no
right to demand registration of these securities. At September 30, 2015,
the aggregate value of these securities was $109,271,457 representing
26.4% of net assets. Unless otherwise indicated, these securities are not
considered to be illiquid.
** Denominated in United States Dollars unless otherwise indicated.
+ Non-income producing security
(1) Commercial Mortgage Backed Security
(2) Collateralized Mortgage Obligation
(3) Fair valued security. Securities are classified as Level 3 based on the
securities valuation inputs; see Note 3.
(4) Illiquid security. At September 30, 2015, the aggregate value of these
securities was $1,777,901 representing 0.4% of net assets.
(5) Security in default of interest and principal at maturity.
(6) Senior loans in the Fund are generally subject to mandatory and/or
optional prepayment. Because of these mandatory prepayment conditions and
because there may be significant economic incentives for a borrower to
prepay, prepayments may occur. As a result, the actual remaining maturity
may be substantially less than the stated maturities shown.
(7) 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.
(8) "Step-up" security where the rate increases ("steps-up") at a
predetermined rate. Rate shown reflects the increased rate.
(9) See Note 6 for cost of investments on a tax basis.
(10) Interest Only
(11) Company has filed for bankruptcy protection in country of issuance.
(12) Principal Amount of security is adjusted for inflation.
(13) Perpetual maturity -- maturity date reflects the next call date.
(14) See Note 3 for details of Joint Repurchase Agreements.
(15) Company has filed for Chapter 7 bankruptcy
BTL --Bank Term Loan
REMIC --Real Estate Mortgage Investment Conduit
TBA --Securities purchased on a forward commitment basis with an approximate
principal amount and no definite maturity date. The actual principal
amount and maturity date will be determined upon settlement date.
TIPS --Treasury Inflation Protected Security
FRS --Floating Rate Security
VRS --Variable Rate Security
The rates shown on FRS and VRS are the current rates at September 30, 2015 and
unless noted otherwise, the dates shown are the original maturity dates.
BRL --Brazilian Real
COP --Columbian Peso
EUR --Euro
GBP --British Pound
FORWARD FOREIGN CURRENCY CONTRACTS
CONTRACT IN EXCHANGE DELIVERY UNREALIZED UNREALIZED
COUNTERPARTY TO DELIVER FOR DATE APPRECIATION DEPRECIATION
------------------------------------------------------------------------------------------
JPMorgan Chase Bank N.A EUR 14,925,000 USD 16,996,441 10/02/2015 $319,252 $ --
EUR 16,430,000 USD 18,568,678 10/15/2015 206,312 --
EUR 13,450,000 USD 15,018,485 11/03/2015 -- (17,780)
GBP 8,901,396 USD 13,775,000 10/02/2015 309,417 --
GBP 8,850,000 USD 13,381,731 11/03/2015 -- (4,081)
USD 789,919 EUR 700,000 10/02/2015 -- (7,739)
USD 13,459,470 GBP 8,900,000 10/02/2015 4,000 --
-------- --------
Net Unrealized Appreciation/(Depreciation).... $838,981 $(29,600)
======== ========
EUR --Euro Dollar
GBP --British Pound
USD --United States Dollar
See Notes to Financial Statements
46
SUNAMERICA STRATEGIC BOND FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
The following is a summary of the inputs used to value the Fund's net assets as
of September 30, 2015 (see Note 3):
LEVEL 1 -- UNADJUSTED LEVEL 2 --OTHER LEVEL 3 --SIGNIFICANT
QUOTED PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS TOTAL
- --------------------- ----------------- --------------------- ------------
ASSETS:
Investments at Value:*
Asset Backed Securities................. $ -- $ 2,354,482 $195,351 $ 2,549,833
U.S. Corporate Bonds & Notes:
Airlines.............................. -- 2,687,570 29,863 2,717,433
Gambling (Non-Hotel).................. -- 1,075,295 4,685 1,079,980
Rubber/Plastic Products............... -- -- 0 0
Other Industries...................... -- 181,629,606 -- 181,629,606
Foreign Corporate Bonds & Notes:
Special Purpose Entity................ -- -- 0 0
Other Industries...................... -- 94,839,593 -- 94,839,593
Foreign Government Obligation........... -- 39,131,065 -- 39,131,065
U.S. Government Agencies................ -- 18,525,641 -- 18,525,641
U.S. Government Treasuries.............. -- 34,996,977 -- 34,996,977
Loans................................... -- 2,766,425 -- 2,766,425
Municipal Bonds & Notes................. -- 1,683,330 -- 1,683,330
Common Stocks........................... -- -- 423,746 423,746
Preferred Securities.................... 900,042 -- -- 900,042
Preferred Securities/Capital Securities. -- 19,783,707 -- 19,783,707
Short-Term Investment Securities........ -- 7,059,000 -- 7,059,000
Repurchase Agreements................... -- 2,169,000 -- 2,169,000
-------- ------------ -------- ------------
TOTAL INVESTMENTS AT VALUE.............. $900,042 $408,701,691 $653,645 $410,255,378
======== ============ ======== ============
Other Financial Instruments:+
Forward Foreign Currency Contracts...... $ -- $ 838,981 $ -- $ 838,981
======== ============ ======== ============
LIABILITIES:
Other Financial Instruments:+
Forward Foreign Currency Contracts...... $ -- $ 29,600 $ -- $ 29,600
======== ============ ======== ============
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
+ Other financial instruments are derivative instruments, not reflected in the
Portfolio of Investments, such as futures, forward, swap and written option
contracts, which are valued at the unrealized appreciation (depreciation) on
the instrument.
The Fund's policy is to recognize transfers between Levels as of the end of the
reporting period. There were no transfers between Levels during the reporting
period.
At the beginning and end of the reporting period, Level 3 investments were not
considered a material portion of the Fund.
See Notes to Financial Statements
47
SUNAMERICA FLEXIBLE CREDIT FUND
PORTFOLIO PROFILE -- SEPTEMBER 30, 2015 -- (UNAUDITED)
INDUSTRY ALLOCATION*
Medical-Hospitals...................... 3.8%
Cable/Satellite TV..................... 3.1
Casino Hotels.......................... 2.9
Medical-Drugs.......................... 2.6
Television............................. 2.5
Oil Companies-Exploration & Production. 2.3
Applications Software.................. 2.3
Telephone-Integrated................... 2.3
Broadcast Services/Program............. 2.2
Data Processing/Management............. 2.1
Telecom Services....................... 2.0
Independent Power Producers............ 1.8
Auto/Truck Parts & Equipment-Original.. 1.8
Distribution/Wholesale................. 1.7
Airlines............................... 1.7
Food-Misc./Diversified................. 1.6
Real Estate Management/Services........ 1.6
Medical Products....................... 1.6
Cellular Telecom....................... 1.4
Aerospace/Defense-Equipment............ 1.4
Building Products-Cement............... 1.3
Computers-Integrated Systems........... 1.3
Gambling (Non-Hotel)................... 1.2
Auto-Cars/Light Trucks................. 1.2
Building & Construction Products-Misc.. 1.2
Containers-Metal/Glass................. 1.2
Building-Residential/Commercial........ 1.1
Real Estate Investment Trusts.......... 1.1
Commercial Services-Finance............ 1.1
Pipelines.............................. 1.1
Commercial Services.................... 1.0
Enterprise Software/Service............ 1.0
Finance-Leasing Companies.............. 0.9
Dialysis Centers....................... 0.9
Oil Refining & Marketing............... 0.9
Chemicals-Diversified.................. 0.9
Electronic Components-Semiconductors... 0.9
Medical-Outpatient/Home Medical........ 0.9
Rental Auto/Equipment.................. 0.9
Containers-Paper/Plastic............... 0.9
Security Services...................... 0.9
Computers-Periphery Equipment.......... 0.9
Finance-Auto Loans..................... 0.8
Diversified Financial Services......... 0.8
Food-Catering.......................... 0.8
Medical Labs & Testing Services........ 0.8
Investment Management/Advisor Services. 0.7
Electric-Integrated.................... 0.7
Computer Services...................... 0.7
Multimedia............................. 0.7
Human Resources........................ 0.7
Extended Service Contracts............. 0.7
Finance-Consumer Loans................. 0.7
Specified Purpose Acquisitions......... 0.7
Energy-Alternate Sources............... 0.6
Investment Companies................... 0.6
Insurance-Multi-line................... 0.6
Consumer Products-Misc................. 0.6
Retail-Arts & Crafts................... 0.6
Satellite Telecom...................... 0.6
Diversified Banking Institutions....... 0.5
Racetracks............................. 0.5
Paper & Related Products............... 0.5
Banks-Mortgage......................... 0.5
Diversified Minerals................... 0.5
Medical-Biomedical/Gene................ 0.4
Diagnostic Kits........................ 0.4
Advertising Services..................... 0.4
Professional Sports...................... 0.4
Oil & Gas Drilling....................... 0.4
Steel-Producers.......................... 0.4
Machinery-General Industrial............. 0.4
Research & Development................... 0.4
Disposable Medical Products.............. 0.4
Physical Therapy/Rehabilitation Centers.. 0.4
Medical-HMO.............................. 0.4
Hotels/Motels............................ 0.4
Internet Security........................ 0.4
Communications Software.................. 0.4
Schools.................................. 0.4
Internet Financial Services.............. 0.4
Retail-Drug Store........................ 0.4
Gas-Distribution......................... 0.3
Leisure Products......................... 0.3
Telecommunication Equipment.............. 0.3
Insurance-Property/Casualty.............. 0.3
Recreational Centers..................... 0.3
Leisure Games............................ 0.3
Retail-Restaurants....................... 0.3
Retail-Major Department Stores........... 0.3
MRI/Medical Diagnostic Imaging........... 0.3
Medical-Generic Drugs.................... 0.3
Bicycle Manufacturing.................... 0.3
Soap & Cleaning Preparation.............. 0.3
Diversified Manufacturing Operations..... 0.3
Retail-Hypermarkets...................... 0.3
Non-Hazardous Waste Disposal............. 0.3
Alternative Waste Technology............. 0.3
Chemicals-Specialty...................... 0.3
Food-Baking.............................. 0.3
Direct Marketing......................... 0.3
Oil-Field Services....................... 0.2
Casino Services.......................... 0.2
Retail-Office Supplies................... 0.2
Semiconductor Equipment.................. 0.2
Retail-Pet Food & Supplies............... 0.2
Finance-Mortgage Loan/Banker............. 0.2
Diagnostic Equipment..................... 0.2
Physicians Practice Management........... 0.2
Theaters................................. 0.2
Banks-Commercial......................... 0.2
Office Automation & Equipment............ 0.2
Filtration/Separation Products........... 0.2
Educational Software..................... 0.2
Resorts/Theme Parks...................... 0.2
Home Furnishings......................... 0.2
Special Purpose Entities................. 0.2
Retail-Pawn Shops........................ 0.1
Consulting Services...................... 0.1
Food-Retail.............................. 0.1
Finance-Other Services................... 0.1
Rubber/Plastic Products.................. 0.1
Athletic Equipment....................... 0.1
Building & Construction-Misc............. 0.1
Hospital Beds/Equipment.................. 0.1
Coal..................................... 0.1
Retail-Misc./Diversified................. 0.1
Retail-Propane Distribution.............. 0.1
Auto/Truck Parts & Equipment-Replacement. 0.1
Auto-Heavy Duty Trucks................... 0.1
Banks-Super Regional..................... 0.1
----
97.5%
====
--------
*Calculated as a percentage of net assets
48
SUNAMERICA FLEXIBLE CREDIT FUND
PORTFOLIO PROFILE -- SEPTEMBER 30, 2015 -- (UNAUDITED) (CONTINUED)
CREDIT QUALITY+#
A............ 0.1%
Baa.......... 1.4
Ba........... 33.0
B............ 50.6
Caa.......... 10.5
Ca........... 0.1
Not Rated@... 4.3
-----
100.0%
=====
--------
+Source: Moody's
#Calculated as a percentage of total debt issues, excluding short-term
securities.
@Represents debt issues that either have no rating, or the rating is
unavailable from the data source.
49
SUNAMERICA FLEXIBLE CREDIT FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
ASSET BACKED SECURITIES -- 0.8%
DIVERSIFIED FINANCIAL SERVICES -- 0.8%
GLS Auto Receivables Trust
9.79% due 10/15/2025(1)............ $ 340,000 $ 339,490
Home Equity Loan Trust VRS
Series 2007-HSA3, Class AI4
6.11% due 06/25/2037............... 1,105,738 1,119,496
Leaf Receivables Funding 10 LLC
Series 2015-1, Class E2
6.00% due 06/15/2023*.............. 590,000 569,541
----------
TOTAL ASSET BACKED SECURITIES
(cost $2,006,336).................. 2,028,527
----------
CONVERTIBLE BONDS & NOTES -- 0.0%
MEDICAL-DRUGS -- 0.0%
Savient Pharmaceuticals, Inc.
Escrow Notes
4.75% due 02/01/2018+(1)(2)
(cost $387,640).................... 745,000 0
----------
U.S. CORPORATE BONDS & NOTES -- 37.8%
AEROSPACE/DEFENSE-EQUIPMENT -- 0.6%
TransDigm, Inc.
Senior Sub. Notes
6.50% due 05/15/2025*.............. 1,530,000 1,438,200
----------
AIRLINES -- 0.3%
American Airlines Group, Inc.
Company Guar. Notes
4.63% due 03/01/2020*.............. 245,000 238,875
US Airways Pass Through Trust
Series 2012-2 Class C
5.45% due 06/03/2018............... 500,000 505,000
----------
743,875
----------
ALTERNATIVE WASTE TECHNOLOGY -- 0.3%
ADS Waste Holdings, Inc.
Company Guar. Notes
8.25% due 10/01/2020............... 620,000 618,450
----------
APPLICATIONS SOFTWARE -- 0.6%
Emdeon, Inc.
Company Guar. Notes
6.00% due 02/15/2021*.............. 1,115,000 1,077,369
Emdeon, Inc.
Company Guar. Notes
11.00% due 12/31/2019.............. 420,000 447,300
----------
1,524,669
----------
AUTO-CARS/LIGHT TRUCKS -- 0.4%
General Motors Co.
Senior Notes
4.88% due 10/02/2023............... 665,000 674,434
General Motors Financial Co., Inc.
Company Guar. Notes
3.45% due 04/10/2022............... 205,000 197,187
----------
871,621
----------
AUTO/TRUCK PARTS & EQUIPMENT-ORIGINAL -- 0.9%
Dana Holding Corp.
Senior Notes
5.50% due 12/15/2024............... 155,000 149,187
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
AUTO/TRUCK PARTS & EQUIPMENT-ORIGINAL (CONTINUED)
Meritor, Inc.
Company Guar. Notes
6.75% due 06/15/2021................... $ 735,000 $ 738,675
MPG Holdco I, Inc.
Company Guar. Notes
7.38% due 10/15/2022................... 340,000 353,600
Omega US Sub LLC
Senior Notes
8.75% due 07/15/2023*.................. 1,110,000 979,575
----------
2,221,037
----------
BANKS-COMMERCIAL -- 0.2%
CIT Group, Inc.
Senior Notes
5.50% due 02/15/2019*.................. 430,000 446,125
----------
BANKS-MORTGAGE -- 0.5%
Provident Funding Associates LP/PFG
Finance Corp.
Company Guar. Notes
6.75% due 06/15/2021*.................. 1,205,000 1,141,737
----------
BROADCAST SERVICES/PROGRAM -- 1.3%
Clear Channel Worldwide Holdings, Inc.
Company Guar. Notes
7.63% due 03/15/2020................... 1,340,000 1,343,350
iHeartCommunications, Inc.
Senior Sec. Notes
9.00% due 12/15/2019................... 500,000 430,000
iHeartCommunications, Inc.
Senior Sec. Notes
9.00% due 03/01/2021................... 515,000 432,729
iHeartCommunications, Inc.
Senior Notes
10.00% due 01/15/2018.................. 260,000 137,800
Univision Communications, Inc.
Senior Sec. Notes
5.13% due 05/15/2023*.................. 765,000 726,750
----------
3,070,629
----------
BUILDING & CONSTRUCTION PRODUCTS-MISC. -- 0.9%
Builders FirstSource, Inc.
Senior Sec. Notes
7.63% due 06/01/2021*.................. 815,000 847,600
Building Materials Corp. of America
Senior Notes
5.38% due 11/15/2024*.................. 745,000 735,687
NCI Building Systems, Inc.
Company Guar. Notes
8.25% due 01/15/2023*.................. 585,000 612,788
----------
2,196,075
----------
BUILDING PRODUCTS-CEMENT -- 0.2%
Cemex Finance LLC
Senior Sec. Notes
6.00% due 04/01/2024*.................. 490,000 445,900
----------
BUILDING-RESIDENTIAL/COMMERCIAL -- 1.1%
Calatlantic Group, Inc.
Company Guar. Notes
6.25% due 12/15/2021................... 610,000 651,175
50
SUNAMERICA FLEXIBLE CREDIT FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
U.S. CORPORATE BONDS & NOTES (CONTINUED)
BUILDING-RESIDENTIAL/COMMERCIAL (CONTINUED)
Lennar Corp.
Company Guar. Notes
4.50% due 11/15/2019............. $ 355,000 $ 358,017
MDC Holdings, Inc.
Company Guar. Notes
5.50% due 01/15/2024............. 755,000 762,550
TRI Pointe Holdings, Inc.
Senior Notes
4.38% due 06/15/2019............. 230,000 225,400
TRI Pointe Holdings, Inc.
Company Guar. Notes
5.88% due 06/15/2024............. 835,000 818,300
----------
2,815,442
----------
CABLE/SATELLITE TV -- 2.1%
Altice US Finance II Corp.
Senior Sec. Notes
7.75% due 07/15/2025*............ 500,000 442,500
CCO Holdings LLC/CCO Holdings
Capital Corp.
Company Guar. Notes
5.13% due 02/15/2023............. 25,000 23,063
CCO Holdings LLC/CCO Holdings
Capital Corp.
Company Guar. Notes
5.25% due 09/30/2022............. 185,000 173,437
CCO Holdings LLC/CCO Holdings
Capital Corp.
Company Guar. Notes
5.75% due 09/01/2023............. 125,000 119,844
CCO Holdings LLC/CCO Holdings
Capital Corp.
Company Guar. Notes
6.63% due 01/31/2022............. 580,000 584,350
CCO Holdings LLC/CCO Holdings
Capital Corp.
Company Guar. Notes
7.38% due 06/01/2020............. 365,000 379,144
CCO Safari II LLC
Senior Sec. Notes
4.91% due 07/23/2025*............ 300,000 298,561
Cequel Communications Holdings I
LLC/Cequel Capital Corp.
Senior Notes
5.13% due 12/15/2021*............ 570,000 501,956
CSC Holdings LLC
Senior Notes
5.25% due 06/01/2024............. 775,000 611,281
DISH DBS Corp.
Company Guar. Notes
6.75% due 06/01/2021............. 1,320,000 1,271,318
RCN Telecom Services LLC/RCN
Capital Corp.
Senior Notes
8.50% due 08/15/2020*............ 810,000 836,325
----------
5,241,779
----------
CASINO HOTELS -- 1.1%
Boyd Gaming Corp.
Company Guar. Notes
6.88% due 05/15/2023............. 520,000 527,800
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
CASINO HOTELS -- (CONTINUED)
Boyd Gaming Corp.
Company Guar. Notes
9.00% due 07/01/2020........................ $ 600,000 $ 637,620
Caesars Entertainment Resort Properties LLC
Senior Sec. Notes
8.00% due 10/01/2020........................ 485,000 460,750
MGM Resorts International
Company Guar. Notes
6.75% due 10/01/2020........................ 1,000,000 1,032,500
----------
2,658,670
----------
CELLULAR TELECOM -- 1.3%
Sprint Corp.
Company Guar. Notes
7.25% due 09/15/2021........................ 615,000 503,531
Sprint Corp.
Company Guar. Notes
7.88% due 09/15/2023........................ 1,050,000 849,844
T-Mobile USA, Inc.
Company Guar. Notes
6.50% due 01/15/2024........................ 125,000 121,172
T-Mobile USA, Inc.
Company Guar. Notes
6.63% due 11/15/2020........................ 645,000 655,481
T-Mobile USA, Inc.
Company Guar. Notes
6.73% due 04/28/2022........................ 955,000 952,613
----------
3,082,641
----------
CHEMICALS-DIVERSIFIED -- 0.1%
Hexion, Inc.
Senior Sec. Notes
6.63% due 04/15/2020........................ 230,000 195,500
----------
COMMERCIAL SERVICES-FINANCE -- 0.5%
Harland Clarke Holdings Corp.
Senior Sec. Notes
6.88% due 03/01/2020*....................... 350,000 315,000
Harland Clarke Holdings Corp.
Senior Notes
9.25% due 03/01/2021*....................... 400,000 332,500
Interactive Data Corp.
Company Guar. Notes
5.88% due 04/15/2019*....................... 640,000 640,000
----------
1,287,500
----------
COMPUTERS-INTEGRATED SYSTEMS -- 0.2%
Project Homestake Merger Corp.
Company Guar. Notes
8.88% due 03/01/2023*....................... 440,000 400,400
----------
CONSULTING SERVICES -- 0.1%
CEB, Inc.
Company Guar. Notes
5.63% due 06/15/2023*....................... 360,000 359,100
----------
CONTAINERS-METAL/GLASS -- 0.0%
Owens-Brockway Glass Container, Inc.
Company Guar. Notes
5.88% due 08/15/2023*....................... 70,000 70,438
----------
51
SUNAMERICA FLEXIBLE CREDIT FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
U.S. CORPORATE BONDS & NOTES (CONTINUED)
CONTAINERS-PAPER/PLASTIC -- 0.4%
Berry Plastics Corp.
Sec. Notes
5.13% due 07/15/2023................ $ 990,000 $ 933,075
----------
DATA PROCESSING/MANAGEMENT -- 0.7%
First Data Corp.
Sec. Notes
8.25% due 01/15/2021*............... 1,189,000 1,233,587
First Data Corp.
Company Guar. Notes
11.75% due 08/15/2021............... 330,000 366,300
----------
1,599,887
----------
DIAGNOSTIC KITS -- 0.2%
Alere, Inc.
Company Guar. Notes
6.50% due 06/15/2020................ 600,000 609,000
----------
DIALYSIS CENTERS -- 0.1%
DaVita HealthCare Partners, Inc.
Company Guar. Notes
5.00% due 05/01/2025................ 335,000 321,600
----------
DISPOSABLE MEDICAL PRODUCTS -- 0.3%
Sterigenics-Nordion Holdings LLC
Senior Notes
6.50% due 05/15/2023*............... 720,000 714,600
----------
DISTRIBUTION/WHOLESALE -- 0.3%
HD Supply, Inc.
Senior Sec. Notes
5.25% due 12/15/2021*............... 705,000 708,525
----------
ELECTRIC-INTEGRATED -- 0.0%
Texas Competitive Electric Holdings
Co. LLC/TCEH Finance, Inc.
Senior Sec. Notes
11.50% due 10/01/2020*+(3)(4)....... 295,000 114,313
----------
ELECTRONIC COMPONENTS-SEMICONDUCTORS -- 0.5%
Freescale Semiconductor, Inc.
Senior Sec. Notes
6.00% due 01/15/2022*............... 1,065,000 1,112,925
----------
ENERGY-ALTERNATE SOURCES -- 0.3%
TerraForm Power Operating LLC
Company Guar. Notes
5.88% due 02/01/2023*............... 760,000 670,700
----------
FINANCE-AUTO LOANS -- 0.8%
Ally Financial, Inc.
Senior Notes
3.25% due 02/13/2018................ 185,000 182,225
Ally Financial, Inc.
Senior Notes
4.13% due 03/30/2020................ 1,910,000 1,888,512
----------
2,070,737
----------
FINANCE-CONSUMER LOANS -- 0.7%
Springleaf Finance Corp.
Senior Notes
5.25% due 12/15/2019................ 1,210,000 1,182,775
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
FINANCE-CONSUMER LOANS (CONTINUED)
TMX Finance LLC/TitleMax Finance Corp.
Senior Sec. Notes
8.50% due 09/15/2018*.................. $ 600,000 $ 472,500
----------
1,655,275
----------
FINANCE-OTHER SERVICES -- 0.1%
Nationstar Mtg. LLC/Nationstar
Capital Corp.
Company Guar. Notes
6.50% due 07/01/2021................... 415,000 344,450
----------
FOOD-CATERING -- 0.4%
Aramark Services, Inc.
Company Guar. Notes
5.75% due 03/15/2020................... 985,000 1,023,784
----------
FOOD-MISC./DIVERSIFIED -- 0.2%
Dole Food Co, Inc.
Senior Sec. Notes
7.25% due 05/01/2019*.................. 450,000 448,875
----------
GAMBLING (NON-HOTEL) -- 0.5%
Isle of Capri Casinos, Inc.
Company Guar. Notes
5.88% due 03/15/2021................... 145,000 149,350
Mohegan Tribal Gaming Authority
Company Guar. Notes
9.75% due 09/01/2021*.................. 210,000 213,675
Scientific Games International, Inc.
Senior Sec. Notes
7.00% due 01/01/2022*.................. 905,000 891,425
----------
1,254,450
----------
GAS-DISTRIBUTION -- 0.3%
NGL Energy Partners LP/NGL Energy
Finance Corp
Company Guar. Notes
5.13% due 07/15/2019................... 935,000 850,850
----------
HOME FURNISHINGS -- 0.2%
Tempur Sealy International, Inc.
Company Guar. Notes
5.63% due 10/15/2023*.................. 385,000 386,444
----------
INDEPENDENT POWER PRODUCERS -- 0.5%
Calpine Corp.
Senior Notes
5.38% due 01/15/2023................... 727,000 677,927
NRG Yield Operating LLC
Company Guar. Notes
5.38% due 08/15/2024................... 665,000 583,538
----------
1,261,465
----------
INSURANCE-MULTI-LINE -- 0.3%
Genworth Holdings, Inc.
Company Guar. Notes
4.90% due 08/15/2023................... 1,005,000 783,900
----------
INTERNET CONNECTIVITY SERVICES -- 0.0%
Zayo Group LLC/Zayo Capital, Inc.
Company Guar. Notes
10.13% due 07/01/2020.................. 62,000 67,270
----------
52
SUNAMERICA FLEXIBLE CREDIT FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
U.S. CORPORATE BONDS & NOTES (CONTINUED)
INTERNET SECURITY -- 0.1%
Blue Coat Holdings, Inc.
Senior Notes
8.38% due 06/01/2023*................. $ 305,000 $ 304,238
----------
MEDICAL LABS & TESTING SERVICES -- 0.1%
inVentiv Health, Inc.
Senior Sec. Notes
9.00% due 01/15/2018*................. 165,000 170,363
----------
MEDICAL PRODUCTS -- 0.8%
DJO Finco, Inc./DJO Finance
LLC/DJO Finance Corp.
Sec. Notes
8.13% due 06/15/2021*................. 390,000 380,250
Fredenius US Finance II, Inc.
Company Guar. Notes
4.50% due 01/15/2023*................. 190,000 189,525
Hill-Rom Holdings, Inc.
Senior Notes
5.75% due 09/01/2023*................. 1,285,000 1,288,212
----------
1,857,987
----------
MEDICAL-DRUGS -- 0.9%
Endo Finance LLC/Endo Finco, Inc.
Company Guar. Notes
5.38% due 01/15/2023*................. 460,000 442,175
PRA Holdings, Inc.
Senior Notes
9.50% due 10/01/2023*................. 421,000 464,153
Quintiles Transnational Corp.
Company Guar. Notes
4.88% due 05/15/2023*................. 510,000 504,900
Valeant Pharmaceuticals International
Company Guar. Notes
7.25% due 07/15/2022*................. 725,000 738,231
----------
2,149,459
----------
MEDICAL-HOSPITALS -- 3.2%
Acadia Healthcare Co., Inc.
Company Guar. Notes
5.63% due 02/15/2023*................. 165,000 165,825
CHS/Community Health Systems, Inc.
Senior Sec. Notes
5.13% due 08/15/2018.................. 405,000 414,113
CHS/Community Health Systems, Inc.
Company Guar. Notes
6.88% due 02/01/2022.................. 1,025,000 1,046,740
HCA, Inc.
Company Guar. Notes
5.38% due 02/01/2025.................. 1,255,000 1,242,450
HCA, Inc.
Senior Sec. Notes
6.50% due 02/15/2020.................. 2,030,000 2,212,700
Tenet Healthcare Corp. FRS
Senior Sec. Notes
3.84% due 06/15/2020*................. 315,000 312,834
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
MEDICAL-HOSPITALS (CONTINUED)
Tenet Healthcare Corp.
Senior Notes
5.00% due 03/01/2019......................... $760,000 $ 735,300
Tenet Healthcare Corp.
Senior Sec. Notes
6.00% due 10/01/2020......................... 750,000 791,250
Tenet Healthcare Corp.
Senior Notes
8.13% due 04/01/2022......................... 775,000 823,748
----------
7,744,960
----------
MEDICAL-OUTPATIENT/HOME MEDICAL -- 0.3%
Amsurg Corp.
Company Guar. Notes
5.63% due 07/15/2022......................... 695,000 694,131
----------
MRI/MEDICAL DIAGNOSTIC IMAGING -- 0.3%
Surgical Care Affiliates, Inc.
Company Guar. Notes
6.00% due 04/01/2023*........................ 734,000 726,660
----------
OFFICE AUTOMATION & EQUIPMENT -- 0.2%
CDW LLC/CDW Finance Corp.
Company Guar. Notes
6.00% due 08/15/2022......................... 410,000 428,553
----------
OIL & GAS DRILLING -- 0.1%
Helmerich & Payne International Drilling Co.
Company Guar. Notes
4.65% due 03/15/2025......................... 375,000 373,309
----------
OIL COMPANIES-EXPLORATION & PRODUCTION -- 2.1%
Antero Resources Corp.
Company Guar. Notes
5.38% due 11/01/2021......................... 130,000 114,400
Antero Resources Corp.
Company Guar. Notes
5.63% due 06/01/2023*........................ 190,000 166,725
Antero Resources Corp.
Company Guar. Notes
6.00% due 12/01/2020......................... 350,000 323,750
Blue Racer Midstream LLC/Blue
Racer Finance Corp.
Company Guar. Notes
6.13% due 11/15/2022*........................ 875,000 831,250
Bonanza Creek Energy, Inc.
Company Guar. Notes
6.75% due 04/15/2021......................... 425,000 296,438
Diamondback Energy, Inc.
Company Guar. Notes
7.63% due 10/01/2021......................... 570,000 598,500
EP Energy LLC/Everest Acquisition
Finance, Inc.
Company Guar. Notes
6.38% due 06/15/2023......................... 650,000 479,778
EP Energy LLC/Everest Acquisition
Finance, Inc.
Company Guar. Notes
9.38% due 05/01/2020......................... 964,000 829,040
53
SUNAMERICA FLEXIBLE CREDIT FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
U.S. CORPORATE BONDS & NOTES (CONTINUED)
OIL COMPANIES-EXPLORATION & PRODUCTION (CONTINUED)
Gulfport Energy Corp.
Company Guar. Notes
7.75% due 11/01/2020.................. $ 345,000 $ 338,962
Halcon Resources Corp.
Sec. Notes
8.63% due 02/01/2020*................. 315,000 261,844
Newfield Exploration Co.
Senior Notes
5.38% due 01/01/2026.................. 635,000 581,025
SM Energy Co
Senior Notes
6.13% due 11/15/2022.................. 405,000 375,030
----------
5,196,742
----------
OIL REFINING & MARKETING -- 0.7%
Sunoco LP/Sunoco Finance Corp.
Company Guar. Notes
5.50% due 08/01/2020*................. 600,000 591,000
Sunoco LP/Sunoco Finance Corp.
Company Guar. Notes
6.38% due 04/01/2023*................. 1,120,000 1,092,000
----------
1,683,000
----------
OIL-FIELD SERVICES -- 0.1%
FTS International, Inc. FRS
Senior Sec. Notes
7.84% due 06/15/2020*................. 475,000 351,640
----------
PHYSICAL THERAPY/REHABILITATION CENTERS -- 0.4%
HealthSouth Corp.
Company Guar. Notes
5.75% due 11/01/2024*................. 130,000 128,375
HealthSouth Corp.
Company Guar. Notes
5.75% due 09/15/2025*................. 900,000 873,000
----------
1,001,375
----------
PHYSICIANS PRACTICE MANAGEMENT -- 0.2%
Envision Healthcare Corp.
Company Guar. Notes
5.13% due 07/01/2022*................. 480,000 478,800
----------
PIPELINES -- 1.1%
Crestwood Midstream Partners
LP/Crestwood Midstream Finance Corp.
Company Guar. Notes
6.25% due 04/01/2023*................. 600,000 510,000
Energy Transfer Equity LP
Senior Sec. Notes
7.50% due 10/15/2020.................. 571,000 568,145
MarkWest Energy Partners
LP/MarkWest Energy Finance Corp.
Company Guar. Notes
4.88% due 12/01/2024.................. 830,000 759,450
Sabine Pass Liquefaction LLC
Senior Sec. Notes
5.63% due 02/01/2021.................. 700,000 649,250
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
PIPELINES (CONTINUED)
Sabine Pass Liquefaction LLC
Senior Sec. Notes
6.25% due 03/15/2022.................. $ 200,000 $ 186,000
----------
2,672,845
----------
RACETRACKS -- 0.5%
GLP Capital LP/GLP Financing II, Inc.
Company Guar. Notes
4.88% due 11/01/2020.................. 610,000 617,625
Penn National Gaming, Inc.
Senior Notes
5.88% due 11/01/2021.................. 660,000 665,775
----------
1,283,400
----------
REAL ESTATE INVESTMENT TRUSTS -- 1.1%
Corrections Corp. of America
Company Guar. Notes
5.00% due 10/15/2022.................. 880,000 882,200
DuPont Fabros Technology LP
Company Guar. Notes
5.88% due 09/15/2021.................. 450,000 461,250
ESH Hospitality, Inc.
Company Guar. Notes
5.25% due 05/01/2025*................. 500,000 491,250
iStar Financial, Inc.
Senior Notes
5.00% due 07/01/2019.................. 1,000,000 950,000
----------
2,784,700
----------
RENTAL AUTO/EQUIPMENT -- 0.9%
Ahern Rentals, Inc.
Sec. Notes
7.38% due 05/15/2023*................. 580,000 504,600
Hertz Corp.
Company Guar. Notes
6.25% due 10/15/2022.................. 445,000 446,112
United Rentals North America, Inc.
Company Guar. Notes
5.50% due 07/15/2025.................. 1,275,000 1,192,125
----------
2,142,837
----------
RESEARCH & DEVELOPMENT -- 0.3%
Jaguar Holding Co II / Pharmaceutical
Product Development LLC
Company Guar. Notes
6.38% due 08/01/2023*................. 745,000 724,513
----------
RETAIL-DRUG STORE -- 0.4%
Rite Aid Corp.
Company Guar. Notes
6.13% due 04/01/2023*................. 130,000 129,025
Rite Aid Corp.
Company Guar. Notes
6.75% due 06/15/2021.................. 730,000 748,250
----------
877,275
----------
54
SUNAMERICA FLEXIBLE CREDIT FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
U.S. CORPORATE BONDS & NOTES (CONTINUED)
RETAIL-HYPERMARKETS -- 0.3%
Tops Holding LLC / Tops Markets II Corp
Senior Sec. Notes
8.00% due 06/15/2022*....................... $ 670,000 $ 670,000
----------
RETAIL-LEISURE PRODUCTS -- 0.0%
Party City Holdings, Inc.
Company Guar. Notes
6.13% due 08/15/2023*....................... 105,000 105,788
----------
RETAIL-PAWN SHOPS -- 0.1%
First Cash Financial Services, Inc.
Company Guar. Notes
6.75% due 04/01/2021........................ 365,000 365,000
----------
RETAIL-PROPANE DISTRIBUTION -- 0.1%
AmeriGas Finance LLC/AmeriGas Finance Corp.
Company Guar. Notes
6.75% due 05/20/2020........................ 60,000 60,750
AmeriGas Finance LLC/AmeriGas Finance Corp.
Company Guar. Notes
7.00% due 05/20/2022........................ 145,000 148,625
----------
209,375
----------
RETAIL-RESTAURANTS -- 0.3%
Landry's, Inc.
Company Guar. Notes
9.38% due 05/01/2020*....................... 700,000 747,250
----------
RUBBER/PLASTIC PRODUCTS -- 0.0%
Venture Holdings Co. LLC
Company Guar. Notes
11.00% due 06/01/2007+(1)(2)(5)(6).......... 550,000 0
----------
SATELLITE TELECOM -- 0.2%
DigitalGlobe, Inc.
Company Guar. Notes
5.25% due 02/01/2021*....................... 490,000 464,275
----------
SECURITY SERVICES -- 0.6%
ADT Corp.
Senior Notes
6.25% due 10/15/2021........................ 1,395,000 1,438,594
----------
SEMICONDUCTOR EQUIPMENT -- 0.2%
Entegris, Inc.
Company Guar. Notes
6.00% due 04/01/2022*....................... 580,000 588,700
----------
SPECIFIED PURPOSE ACQUISITIONS -- 0.5%
Argos Merger Sub, Inc.
Senior Notes
7.13% due 03/15/2023*....................... 1,135,000 1,147,769
----------
STEEL-PRODUCERS -- 0.3%
AK Steel Corp.
Company Guar. Notes
7.63% due 05/15/2020........................ 725,000 377,906
United States Steel Corp.
Senior Notes
7.38% due 04/01/2020........................ 371,000 294,945
----------
672,851
----------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
TELECOM SERVICES -- 0.7%
CyrusOne LP/CyrusOne Finance Corp.
Company Guar. Notes
6.38% due 11/15/2022*.............. $890,000 $ 905,575
Neptune Finco Corp.
Company Guar. Notes
6.63% due 10/15/2025*.............. 540,000 542,700
Neptune Finco Corp.
Senior Notes
10.13% due 01/15/2023*............. 350,000 353,937
-----------
1,802,212
-----------
TELEPHONE-INTEGRATED -- 1.2%
Frontier Communications Corp.
Senior Notes
6.25% due 09/15/2021............... 945,000 786,712
Frontier Communications Corp.
Senior Notes
8.88% due 09/15/2020*.............. 105,000 102,900
Frontier Communications Corp.
Senior Notes
10.50% due 09/15/2022*............. 110,000 107,250
Level 3 Financing, Inc.
Company Guar. Notes
7.00% due 06/01/2020............... 149,000 154,215
Level 3 Financing, Inc.
Company Guar. Notes
8.63% due 07/15/2020............... 945,000 987,525
Windstream Services LLC
Company Guar. Notes
7.75% due 10/15/2020............... 805,000 684,250
-----------
2,822,852
-----------
X-RAY EQUIPMENT -- 0.0%
Hologic, Inc.
Company Guar. Notes
5.25% due 07/15/2022*.............. 85,000 85,850
-----------
TOTAL U.S. CORPORATE BONDS & NOTES
(cost $98,017,577)................. 92,529,216
-----------
FOREIGN CORPORATE BONDS & NOTES -- 6.9%
AUTO-CARS/LIGHT TRUCKS -- 0.2%
Fiat Chrysler Automobiles NV
Senior Notes
5.25% due 04/15/2023............... 600,000 559,500
-----------
BUILDING PRODUCTS-CEMENT -- 0.2%
Cemex SAB de CV
Senior Sec. Notes
5.70% due 01/11/2025*.............. 510,000 456,450
-----------
CABLE/SATELLITE TV -- 0.2%
Numericable Group SA
Senior Sec. Notes
6.00% due 05/15/2022*.............. 625,000 602,344
-----------
CELLULAR TELECOM -- 0.1%
Digicel Group, Ltd.
Senior Notes
8.25% due 09/30/2020*.............. 380,000 351,500
-----------
55
SUNAMERICA FLEXIBLE CREDIT FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
FOREIGN CORPORATE BONDS & NOTES (CONTINUED)
CHEMICALS-DIVERSIFIED -- 0.7%
INEOS Group Holdings SA
Sec. Notes
5.88% due 02/15/2019*............... $ 450,000 $ 418,500
INEOS Group Holdings SA
Sec. Notes
6.13% due 08/15/2018*............... 1,305,000 1,229,962
----------
1,648,462
----------
CONTAINERS-METAL/GLASS -- 0.3%
Ardagh Finance Holdings SA
Senior Notes
8.63% due 06/15/2019*(7)............ 304,880 310,978
Ardagh Packaging Finance
PLC/Ardagh Holdings USA, Inc.
Company Guar. Notes
6.00% due 06/30/2021*............... 365,000 348,575
Ardagh Packaging Finance
PLC/Ardagh MP Holdings USA, Inc.
Senior Notes
7.00% due 11/15/2020*............... 51,176 51,176
----------
710,729
----------
DIVERSIFIED MANUFACTURING OPERATIONS -- 0.3%
Bombardier, Inc.
Senior Notes
4.75% due 04/15/2019*............... 585,000 470,925
Bombardier, Inc.
Senior Notes
6.13% due 01/15/2023*............... 305,000 224,175
----------
695,100
----------
DIVERSIFIED MINERALS -- 0.3%
FMG Resources August 2006 Pty, Ltd.
Senior Sec. Notes
9.75% due 03/01/2022*............... 770,000 717,063
----------
FINANCE-LEASING COMPANIES -- 0.4%
AerCap Ireland Capital, Ltd./AerCap
Global Aviation Trust Company
Guar. Notes
4.25% due 07/01/2020................ 170,000 169,787
Aircastle, Ltd.
Senior Notes
5.13% due 03/15/2021................ 840,000 842,100
----------
1,011,887
----------
GAMBLING (NON-HOTEL) -- 0.1%
International Game Technology PLC
Senior Sec. Notes
6.25% due 02/15/2022*............... 205,000 190,650
----------
INDEPENDENT POWER PRODUCERS -- 0.1%
Abengoa Yield PLC
Company Guar. Notes
7.00% due 11/15/2019*............... 295,000 258,125
----------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
MEDICAL PRODUCTS -- 0.6%
Mallinckrodt International Finance
SA/Mallinckrodt CB LLC
Company Guar. Notes
4.88% due 04/15/2020*....................... $ 15,000 $ 14,325
Mallinckrodt International Finance
SA/Mallinckrodt CB LLC
Company Guar. Notes
5.50% due 04/15/2025*....................... 35,000 31,194
Mallinckrodt International Finance SA/
Mallinckrodt CB LLC
Company Guar. Notes
5.63% due 10/15/2023*....................... 1,455,000 $1,324,050
----------
1,369,569
----------
MEDICAL-BIOMEDICAL/GENE -- 0.3%
Concordia Healthcare Corp.
Company Guar. Notes
7.00% due 04/15/2023*....................... 945,000 826,875
----------
MEDICAL-DRUGS -- 0.7%
JLL/Delta Dutch Pledgeco BV
Senior Notes
8.75% due 05/01/2020*(8).................... 395,000 398,950
Valeant Pharmaceuticals International, Inc.
Company Guar. Notes
5.38% due 03/15/2020*....................... 715,000 694,891
Valeant Pharmaceuticals International, Inc.
Company Guar. Notes
5.50% due 03/01/2023*....................... 235,000 223,250
Valeant Pharmaceuticals International, Inc.
Company Guar. Notes
5.88% due 05/15/2023*....................... 440,000 420,475
----------
1,737,566
----------
OIL & GAS DRILLING -- 0.0%
Ensco PLC
Senior Notes
5.20% due 03/15/2025........................ 83,000 63,169
----------
OIL COMPANIES-EXPLORATION & PRODUCTION -- 0.2%
Harvest Operations Corp.
Company Guar. Notes
6.88% due 10/01/2017........................ 520,000 447,200
----------
PAPER & RELATED PRODUCTS -- 0.5%
Cascades, Inc.
Company Guar. Notes
5.50% due 07/15/2022*....................... 675,000 641,250
Cascades, Inc.
Senior Notes
5.75% due 07/15/2023*....................... 530,000 506,150
----------
1,147,400
----------
SATELLITE TELECOM -- 0.4%
Intelsat Jackson Holdings SA
Company Guar. Notes
5.50% due 08/01/2023........................ 240,000 198,000
56
SUNAMERICA FLEXIBLE CREDIT FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
FOREIGN CORPORATE BONDS & NOTES (CONTINUED)
SATELLITE TELECOM (CONTINUED)
Intelsat Jackson Holdings SA
Company Guar. Notes
7.25% due 04/01/2019.................. $ 695,000 $ 651,563
-----------
849,563
-----------
SPECIAL PURPOSE ENTITY -- 0.0%
Hellas Telecommunications
Luxembourg II SCA FRS
Sub. Notes
8.46% due 01/15/2015+*(1)(2)(6)(9).... 1,025,000 0
-----------
STEEL-PRODUCERS -- 0.1%
ArcelorMittal
Senior Notes
6.13% due 06/01/2025.................. 445,000 360,450
-----------
TELECOM SERVICES -- 1.0%
Altice Financing SA
Senior Sec. Notes
6.63% due 02/15/2023*................. 400,000 384,750
Altice Financing SA
Senior Sec. Notes
7.88% due 12/15/2019*................. 350,000 362,250
Altice Finco SA
Senior Sec. Notes
9.88% due 12/15/2020*................. 455,000 486,850
Altice SA Company
Guar. Notes
7.63% due 02/15/2025*................. 660,000 582,862
Digicel, Ltd. Company
Guar. Notes
6.75% due 03/01/2023*................. 250,000 225,000
UPCB Finance VI, Ltd.
Senior Sec. Notes
6.88% due 01/15/2022*................. 360,000 379,350
-----------
2,421,062
-----------
TELEPHONE-INTEGRATED -- 0.2%
SoftBank Group Corp.
Company Guar. Notes
4.50% due 04/15/2020*................. 545,000 527,778
-----------
TOTAL FOREIGN CORPORATE BONDS & NOTES
(cost $19,263,987).................... 16,952,442
-----------
LOANS(10)(11)(12) -- 50.8%
ADVERTISING SERVICES -- 0.4%
Advantage Sales & Marketing, Inc. FRS
1st Lien
4.25% due 07/23/2021.................. 583,404 575,382
Advantage Sales & Marketing, Inc. FRS
2nd Lien
7.50% due 07/25/2022.................. 515,000 492,469
-----------
1,067,851
-----------
AEROSPACE/DEFENSE-EQUIPMENT -- 0.8%
TransDigm, Inc. FRS
BTL-C
3.75% due 02/28/2020.................. 478,769 473,563
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
AEROSPACE/DEFENSE-EQUIPMENT (CONTINUED)
TransDigm, Inc. FRS
BTL-D
3.75% due 06/04/2021............. $1,484,962 $1,468,256
----------
1,941,819
----------
AIRLINES -- 1.4%
American Airlines, Inc. FRS
BTL
3.25% due 06/26/2020............. 1,325,630 1,314,030
American Airlines, Inc. FRS
BTL-B
3.50% due 10/10/2021............. 484,000 481,096
LM US Member LLC FRS
1st Lien
4.75% due 10/25/2019............. 620,436 616,170
LM US Member LLC FRS
BTL
4.75% due 10/25/2019............. 24,624 24,455
LM US Member LLC FRS
2nd Lien
8.25% due 01/25/2021............. 250,000 248,125
United Airlines, Inc. FRS
BTL-B1
3.50% due 09/15/2021............. 643,500 642,294
----------
3,326,170
----------
APPLICATIONS SOFTWARE -- 1.7%
Applied Systems, Inc. FRS
2nd Lien
7.50% due 01/24/2022............. 867,550 859,597
Deltek, Inc. FRS
1st Lien
5.00% due 06/25/2022............. 55,994 55,854
Deltek, Inc. FRS
BTL-2nd Lien
9.50% due 06/17/2023............. 247,000 246,794
Emdeon, Inc. FRS
BTL-B2 BTL
3.75% due 11/02/2018............. 843,836 840,320
Mitchell International, Inc. FRS
BTL
4.50% due 10/12/2020............. 880,949 877,095
Mitchell International, Inc. FRS
2nd Lien
8.50% due 10/11/2021............. 320,000 317,440
SS&C European Holdings SARL FRS
BTL-B2
4.00% due 07/08/2022............. 137,991 138,139
SS&C Technologies, Inc. FRS
BTL-B1
4.00% due 07/08/2022............. 872,300 873,235
----------
4,208,474
----------
ATHLETIC EQUIPMENT -- 0.1%
Jarden Corp. FRS
BTL-B1
2.94% due 09/30/2020............. 37,903 37,939
57
SUNAMERICA FLEXIBLE CREDIT FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
LOANS (CONTINUED)
ATHLETIC EQUIPMENT (CONTINUED)
Jarden Corp. FRS
BTL-B2
2.94% due 07/30/2022................. $ 269,000 $ 268,664
----------
306,603
----------
AUTO-CARS/LIGHT TRUCKS -- 0.6%
FCA US LLC FRS
BTL-B
3.25% due 12/31/2018................. 1,587,909 1,572,824
----------
AUTO-HEAVY DUTY TRUCKS -- 0.1%
Navistar, Inc. FRS
BTL-B
6.50% due 08/17/2017................. 155,139 151,067
----------
AUTO/TRUCK PARTS & EQUIPMENT-ORIGINAL -- 0.9%
Cooper-Standard Automotive, Inc. FRS
BTL
4.00% due 04/04/2021................. 793,970 788,015
Federal-Mogul Holdings Corp. FRS
BTL-C
4.75% due 04/15/2021................. 545,865 517,889
MPG Holdco I, Inc. FRS
BTL-B
3.75% due 10/20/2021................. 699,153 696,407
TI Group Automotive Systems LLC FRS
BTL
4.50% due 06/30/2022................. 84,000 82,180
----------
2,084,491
----------
AUTO/TRUCK PARTS & EQUIPMENT-REPLACEMENT -- 0.1%
Allison Transmission, Inc. FRS
BTL-B3
3.50% due 08/23/2019................. 154,215 154,157
----------
BICYCLE MANUFACTURING -- 0.3%
SRAM LLC FRS
1st Lien
4.00% due 04/10/2020................. 728,779 706,915
----------
BLOODSTOCK SERVICES -- 0.0%
NVA Holdings, Inc. FRS
1st Lien
4.75% due 08/14/2021................. 27,790 27,744
----------
BROADCAST SERVICES/PROGRAM -- 0.9%
iHeartCommunications, Inc. FRS
BTL-D
6.94% due 01/30/2019................. 2,760,000 2,282,175
----------
BUILDING & CONSTRUCTION PRODUCTS-MISC. -- 0.3%
CPG International, Inc. FRS
BTL
4.75% due 09/30/2020................. 733,130 724,576
----------
BUILDING & CONSTRUCTION-MISC. -- 0.1%
Brock Holdings III, Inc. FRS
1st Lien
6.00% due 03/16/2017................. 311,543 301,677
----------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
BUILDING PRODUCTS-CEMENT -- 0.9%
Headwaters, Inc. FRS
BTL-B
4.50% due 03/24/2022................. $ 588,525 $ 589,628
Quikrete Holdings, Inc. FRS
1st Lien
4.00% due 09/30/2020................. 600,000 597,300
Summit Materials LLC FRS
BTL-B
4.25% due 07/17/2022................. 1,050,368 1,045,991
----------
2,232,919
----------
BUILDING-RESIDENTIAL/COMMERCIAL -- 0.0%
TOUSA, Inc. FRS
Escrow Loans
12.25% due 08/15/2013+(1)(2)......... 2,037,810 0
----------
CABLE/SATELLITE TV -- 0.8%
CCO Safari III LLC FRS
BTL
3.50% due 01/24/2023................. 287,000 285,027
Charter Communications Operating LLC
BTL-H
3.25% due 08/24/2021................. 356,000 354,269
CSC Holdings, Inc.
BTL
5.00% due 09/21/2022................. 990,000 982,398
Ziggo BV FRS
BTL-B1
3.50% due 01/15/2022................. 147,915 145,388
Ziggo NV FRS
BTL-B2
3.50% due 01/15/2022................. 95,319 93,691
Ziggo NV FRS
BTL-B3
3.50% due 01/15/2022................. 156,766 154,088
----------
2,014,861
----------
CASINO HOTELS -- 1.8%
Boyd Gaming Corp. FRS
BTL-B
4.00% due 08/14/2020................. 583,541 582,650
CityCenter Holdings LLC FRS
BTL-B
4.25% due 10/16/2020................. 650,000 648,607
Golden Nugget, Inc. FRS
Delayed Draw
5.50% due 11/21/2019................. 135,659 135,930
Golden Nugget, Inc. FRS
BTL
5.50% due 11/21/2019................. 316,538 317,171
MGM Resorts International FRS
BTL-B
3.50% due 12/20/2019................. 1,371,881 1,359,449
Peppermill Casinos, Inc. FRS
BTL-B
7.25% due 11/09/2018................. 788,845 790,817
58
SUNAMERICA FLEXIBLE CREDIT FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
LOANS (CONTINUED)
CASINO HOTELS (CONTINUED)
Station Casinos LLC FRS
BTL-B
4.25% due 03/02/2020.................... $ 600,163 $ 598,555
----------
4,433,179
----------
CASINO SERVICES -- 0.1%
Eldorado Resorts, Inc.
BTL-B
4.25% due 07/13/2022.................... 333,165 333,998
----------
CHEMICALS-DIVERSIFIED -- 0.1%
Ineos US Finance LLC FRS
BTL
4.25% due 03/31/2022.................... 363,174 352,279
----------
CHEMICALS-SPECIALTY -- 0.3%
Royal Holdings, Inc. FRS
BTL-1st Lien
4.50% due 06/19/2022.................... 621,443 618,025
----------
COAL -- 0.1%
Arch Coal, Inc. FRS
BTL-B
6.25% due 05/16/2018.................... 517,639 288,152
----------
COMMERCIAL SERVICES -- 1.0%
Brickman Group, Ltd. FRS
1st Lien
4.00% due 12/18/2020.................... 767,822 755,984
Brickman Group, Ltd. FRS
2nd Lien
7.50% due 12/17/2021.................... 515,000 498,263
ServiceMaster Co. LLC FRS
BTL-B
4.25% due 07/01/2021.................... 1,243,413 1,243,191
----------
2,497,438
----------
COMMERCIAL SERVICES-FINANCE -- 0.6%
Harland Clarke Holdings Corp. FRS
BTL-B-4
6.00% due 08/04/2019.................... 311,847 310,093
TransUnion LLC FRS
BTL-B2
3.50% due 04/09/2021.................... 1,189,561 1,177,665
----------
1,487,758
----------
COMMUNICATIONS SOFTWARE -- 0.4%
Securus Technologies Holdings, Inc. FRS
BTL-B2
5.25% due 04/30/2020.................... 1,000,000 974,167
----------
COMPUTER SERVICES -- 0.7%
DynCorp International, Inc. FRS
BTL
6.25% due 07/07/2016.................... 560,000 545,066
Presidio, Inc. FRS
BTL
5.25% due 02/02/2022.................... 420,288 420,078
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
COMPUTER SERVICES (CONTINUED)
Science Applications Int. Corp. FRS
BTL-B
3.75% due 05/04/2022................ $ 778,050 $ 778,050
----------
1,743,194
----------
COMPUTERS-INTEGRATED SYSTEMS -- 1.1%
Kronos, Inc. FRS
1st Lien
4.50% due 10/30/2019................ 1,363,331 1,359,071
Kronos, Inc. FRS
2nd Lien
9.75% due 04/30/2020................ 564,557 576,378
Riverbed Technology, Inc. FRS
BTL-B
6.00% due 04/24/2022................ 504,465 504,735
SS&C Technologies, Inc. FRS
BTL-A1
2.94% due 07/08/2020................ 49,392 49,227
SS&C Technologies, Inc. FRS
BTL-A2
2.95% due 07/08/2020................ 76,608 76,353
----------
2,565,764
----------
COMPUTERS-PERIPHERY EQUIPMENT -- 0.9%
CDW LLC FRS
BTL -B
3.25% due 04/29/2020................ 2,087,536 2,070,431
----------
CONSUMER PRODUCTS-MISC. -- 0.6%
Reynolds Group Holdings, Inc. FRS
BTL
4.50% due 12/01/2018................ 1,166,660 1,166,497
Spectrum Brands, Inc. FRS
BTL
3.75% due 06/23/2022................ 215,770 216,377
----------
1,382,874
----------
CONTAINERS-METAL/GLASS -- 0.9%
Anchor Glass Container Corp. FRS
1st Lien
4.50% due 07/01/2022................ 1,377,720 1,377,362
Berlin Packaging LLC FRS
1st Lien
4.50% due 10/01/2021................ 545,865 543,954
Owens-Illinois, Inc.
BTL-B
3.50% due 08/06/2022................ 184,538 184,959
----------
2,106,275
----------
CONTAINERS-PAPER/PLASTIC -- 0.5%
Berry Plastics Group, Inc. FRS
BTL-D
3.50% due 02/08/2020................ 1,202,665 1,191,640
----------
DATA PROCESSING/MANAGEMENT -- 1.4%
CCC Information Services, Inc. FRS
BTL-B
4.00% due 12/20/2019................ 1,188,982 1,183,780
59
SUNAMERICA FLEXIBLE CREDIT FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
LOANS (CONTINUED)
DATA PROCESSING/MANAGEMENT (CONTINUED)
First Data Corp. FRS
BTL
3.70% due 03/24/2018.................... $2,185,000 $2,164,857
First Data Corp. FRS
BTL
3.95% due 07/08/2022.................... 174,000 172,782
----------
3,521,419
----------
DIAGNOSTIC EQUIPMENT -- 0.2%
Ortho-Clinical Diagnostics, Inc. FRS
BTL-B
4.75% due 06/30/2021.................... 544,486 536,319
----------
DIAGNOSTIC KITS -- 0.2%
Alere, Inc. FRS
BTL-B
4.25% due 06/18/2022.................... 490,770 490,429
----------
DIALYSIS CENTERS -- 0.8%
DaVita HealthCare Partners, Inc. FRS
BTL-B
3.50% due 06/24/2021.................... 1,484,962 1,482,576
US Renal Care, Inc. FRS
BTL-B-2
4.25% due 07/03/2019.................... 494,949 493,712
----------
1,976,288
----------
DIRECT MARKETING -- 0.3%
Acosta, Inc. FRS
BTL
4.25% due 09/26/2021.................... 613,463 606,408
----------
DISPOSABLE MEDICAL PRODUCTS -- 0.1%
Sterigenics-Nordion Holdings LLC FRS
BTL-B
4.25% due 05/15/2022.................... 294,000 292,530
----------
DISTRIBUTION/WHOLESALE -- 1.4%
American Builders & Contractors
Supply Co., Inc. FRS
BTL-B
3.50% due 04/16/2020.................... 1,100,191 1,092,399
Beacon Roofing Supply, Inc.
BTL-B
4.00% due 10/01/2022.................... 141,000 140,647
HD Supply, Inc.
BTL-B
3.75% due 08/13/2021.................... 655,000 651,561
Spin Holdco, Inc. FRS
1st Lien
4.25% due 11/14/2019.................... 493,756 485,733
Univar, Inc. FRS
BTL
4.25% due 07/01/2022.................... 1,046,000 1,028,349
----------
3,398,689
----------
DIVERSIFIED MINERALS -- 0.2%
FMG Resources August 2006 Pty, Ltd. FRS
BTL-B
3.75% due 06/30/2019.................... 446,657 365,365
----------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
EDUCATIONAL SOFTWARE -- 0.2%
Evergreen Skills Lux Sarl FRS
1st Lien
5.75% due 04/28/2021............................ $ 446,617 $ 399,722
----------
ELECTRIC-INTEGRATED -- 0.7%
Energy Future Intermediate Holding Co. LLC FRS
DIP
4.25% due 06/19/2016............................ 1,150,000 1,145,688
Texas Competitive Electric Holdings Co. LLC FRS
BTL
4.68% due 10/10/2017+(3)(4)..................... 1,372,835 528,541
----------
1,674,229
----------
ELECTRONIC COMPONENTS-SEMICONDUCTORS -- 0.4%
Avago Technologies Cayman, Ltd. FRS
BTL-B
3.75% due 05/06/2021............................ 647,123 646,314
Freescale Semiconductor Inc FRS
BTL-B5
5.00% due 01/15/2021............................ 426,300 426,182
----------
1,072,496
----------
ENERGY-ALTERNATE SOURCES -- 0.3%
Granite Acquisition, Inc. FRS
BTL-B
5.00% due 12/19/2021............................ 738,671 722,666
Granite Acquisition, Inc. FRS
BTL-C
5.00% due 12/19/2021............................ 32,747 32,038
----------
754,704
----------
ENTERPRISE SOFTWARE/SERVICE -- 1.0%
Epicor Software Co. FRS
1st Lien
4.75% due 06/01/2022............................ 396,008 393,391
Infor US, Inc. FRS
BTL-B5
3.75% due 06/03/2020............................ 1,114,226 1,079,008
Sophia LP
BTL-B
4.00% due 09/30/2022............................ 850,000 847,344
----------
2,319,743
----------
EXTENDED SERVICE CONTRACTS -- 0.7%
Sedgwick Claims Management Services, Inc. FRS
1st Lien
3.75% due 03/01/2021............................ 1,149,564 1,129,446
Sedgwick Claims Management Services, Inc. FRS
2nd Lien
6.75% due 02/28/2022............................ 595,000 556,325
----------
1,685,771
----------
FILTRATION/SEPARATION PRODUCTS -- 0.2%
Filtration Group, Inc. FRS
1st Lien
4.25% due 11/21/2020............................ 412,000 411,614
----------
60
SUNAMERICA FLEXIBLE CREDIT FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
LOANS (CONTINUED)
FINANCE-LEASING COMPANIES -- 0.5%
Delos Finance SARL FRS
BTL
3.50% due 03/06/2021..................... $1,330,000 $1,326,675
----------
FINANCE-MORTGAGE LOAN/BANKER -- 0.2%
Walter Investment Management Corp. FRS
BTL-B
4.75% due 12/19/2020..................... 616,839 571,090
----------
FOOD-BAKING -- 0.3%
Hostess Brands LLC FRS
2nd Lien
8.50% due 08/03/2023..................... 610,000 609,619
----------
FOOD-CATERING -- 0.4%
Aramark Services, Inc. FRS
BTL-F
3.25% due 02/24/2021..................... 918,010 914,797
----------
FOOD-MISC./DIVERSIFIED -- 1.4%
Dole Food Co., Inc. FRS
BTL-B
4.50% due 11/01/2018..................... 536,256 534,245
Hostess Brands LLC
BTL
4.50% due 08/03/2022..................... 830,000 830,249
Pinnacle Foods Finance LLC FRS
BTL-H
3.00% due 04/29/2020..................... 2,084,193 2,077,680
----------
3,442,174
----------
FOOD-RETAIL -- 0.1%
Albertsons LLC FRS
BTL-B4
5.50% due 08/25/2021..................... 354,386 354,426
----------
GAMBLING (NON-HOTEL) -- 0.6%
Mohegan Tribal Gaming Authority FRS
BTL-B
5.50% due 06/15/2018..................... 853,987 848,383
Scientific Games International, Inc. FRS
BTL-B2
6.00% due 10/01/2021..................... 728,166 718,427
----------
1,566,810
----------
HOSPITAL BEDS/EQUIPMENT -- 0.1%
National Surgical Hospitals, Inc. FRS
1st Lien
4.50% due 06/01/2022..................... 293,265 292,898
----------
HOTELS/MOTELS -- 0.4%
Hilton Worldwide Finance LLC FRS
BTL
3.50% due 10/26/2020..................... 987,129 985,621
----------
HUMAN RESOURCES -- 0.7%
Ceridian HCM Holding, Inc. FRS
BTL
4.50% due 09/15/2020..................... 744,375 704,055
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
HUMAN RESOURCES (CONTINUED)
CHG Buyer Corp. FRS
BTL
4.25% due 11/19/2019................... $ 999,782 $ 996,033
----------
1,700,088
----------
INDEPENDENT POWER PRODUCERS -- 1.2%
Calpine Corp. FRS
BTL-B5
3.50% due 05/27/2022................... 1,630,913 1,603,828
Calpine Corp. FRS
Delayed Draw
4.00% due 10/30/2020................... 1,266,287 1,262,442
----------
2,866,270
----------
INSURANCE-PROPERTY/CASUALTY -- 0.3%
Asurion LLC FRS
BTL-B2
4.25% due 07/08/2020................... 414,402 388,917
Asurion LLC FRS
BTL-B-1
5.00% due 05/24/2019................... 87,024 82,755
Asurion LLC FRS
BTL-B4
5.00% due 08/04/2022................... 359,100 339,686
----------
811,358
----------
INTERNET FINANCIAL SERVICES -- 0.4%
US LLC 2 FRS
BTL
4.00% due 08/06/2021................... 889,807 880,076
----------
INTERNET SECURITY -- 0.3%
Blue Coat Systems, Inc. FRS
BTL
4.50% due 05/20/2022................... 685,000 679,434
----------
INVESTMENT COMPANIES -- 0.6%
Concentra, Inc. FRS
1st Lien
5.25% due 06/01/2022................... 674,884 672,916
RPI Finance Trust FRS
BTL-B4
3.50% due 11/09/2020................... 751,216 748,586
----------
1,421,502
----------
INVESTMENT MANAGEMENT/ADVISOR SERVICES -- 0.7%
AlixPartners LLP FRS
BTL-B
4.50% due 07/28/2022................... 1,336,000 1,332,243
National Financial Partners Corp. FRS
BTL
4.50% due 07/01/2020................... 497,489 489,250
----------
1,821,493
----------
LEISURE GAMES -- 0.3%
Aristocrat International Pty, Ltd. FRS
BTL-B
4.75% due 10/20/2021................... 781,538 781,538
----------
61
SUNAMERICA FLEXIBLE CREDIT FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
LOANS (CONTINUED)
LEISURE PRODUCTS -- 0.3%
Leslie's Poolmart, Inc. FRS
Tranche B
4.25% due 10/16/2019............................ $ 857,061 $ 837,241
----------
MACHINERY-GENERAL INDUSTRIAL -- 0.4%
RBS Global, Inc. FRS
1st Lien
4.00% due 08/21/2020............................ 1,032,163 1,022,763
----------
MEDICAL LABS & TESTING SERVICES -- 0.7%
American Renal Holdings, Inc. FRS
2nd Lien
8.50% due 03/20/2020............................ 290,000 288,732
FHC Health Systems, Inc. FRS
BTL
4.75% due 12/23/2021............................ 656,700 647,342
inVentiv Health, Inc. FRS
BTL-B4
7.75% due 05/15/2018............................ 590,000 588,279
Surgical Care Affiliates LLC FRS
BTL
4.25% due 03/17/2022............................ 108,455 108,387
----------
1,632,740
----------
MEDICAL PRODUCTS -- 0.2%
ConvaTec, Inc. FRS
BTL-B
4.25% due 06/15/2020............................ 28,928 28,843
DJO Finance LLC FRS
BTL
4.25% due 06/08/2020............................ 378,000 375,992
Hill-Rom Holdings, Inc.
BTL-B
3.50% due 09/08/2022............................ 47,000 47,059
----------
451,894
----------
MEDICAL-BIOMEDICAL/GENE -- 0.1%
Amag Pharmaceuticals, Inc.
1st Lien
4.75% due 08/13/2021............................ 283,000 280,170
----------
MEDICAL-DRUGS -- 1.0%
Endo Luxembourg Finance Co. FRS
BTL-B
3.75% due 09/26/2022............................ 652,000 649,555
Horizon Pharma, Inc. FRS
BTL-B
4.50% due 05/07/2021............................ 309,225 306,906
Quintiles Transnational Corp.
BTL-B
3.25% due 05/12/2022............................ 149,625 149,625
Valeant Pharmaceuticals International, Inc.
BTL-BE
3.75% due 08/05/2020............................ 700,000 688,917
Valeant Pharmaceuticals International, Inc. FRS
BTL-B
4.00% due 04/01/2022............................ 646,750 639,150
----------
2,434,153
----------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
MEDICAL-GENERIC DRUGS -- 0.3%
Amneal Pharmaceuticals LLC FRS
BTL-B
4.50% due 11/01/2019....................... $ 726,350 $ 726,350
----------
MEDICAL-HMO -- 0.4%
MPH Acquisition Holdings LLC FRS
BTL-B
3.75% due 03/31/2021....................... 1,011,789 998,130
----------
MEDICAL-HOSPITALS -- 0.6%
CHS/Community Health Systems, Inc. FRS
BTL-F
3.58% due 12/31/2018....................... 285,701 285,242
Onex Schumacher Finance LP FRS
1st Lien
4.50% due 07/31/2022....................... 623,000 619,885
RegionalCare Hospital Partners, Inc. FRS
BTL-B2
5.25% due 04/23/2019....................... 648,434 642,760
----------
1,547,887
----------
MEDICAL-OUTPATIENT/HOME MEDICAL -- 0.6%
21st Century Oncology, Inc. FRS
BTL
6.50% due 04/30/2022....................... 518,700 494,062
Amsurg Corp. FRS
BTL
3.50% due 07/16/2021....................... 845,797 845,093
National Mentor Holdings, Inc. FRS
Tranche B
4.25% due 01/27/2021....................... 140,927 140,310
----------
1,479,465
----------
MULTIMEDIA -- 0.7%
TWCC Holding Corp. FRS
BTL-B
5.75% due 02/11/2020....................... 576,932 571,163
TWCC Holding Corp. FRS
2nd Lien
7.00% due 06/26/2020....................... 226,000 211,592
Virgin Media Investment Holdings, Ltd. FRS
BTL-F
3.50% due 06/30/2023....................... 974,991 960,018
----------
1,742,773
----------
NON-HAZARDOUS WASTE DISPOSAL -- 0.3%
Infiltrator Systems Integrated LLC FRS
BTL
5.25% due 05/27/2022....................... 195,510 194,899
Waste Industries USA, Inc. FRS
BTL-B
4.25% due 02/27/2020....................... 443,770 445,242
----------
640,141
----------
OIL & GAS DRILLING -- 0.3%
Drillships Financing Holding, Inc. FRS
Tranche B-1
6.00% due 03/31/2021....................... 322,532 187,606
62
SUNAMERICA FLEXIBLE CREDIT FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
LOANS (CONTINUED)
OIL & GAS DRILLING (CONTINUED)
Jonah Energy LLC FRS
2nd Lien
7.50% due 05/12/2021....................... $ 400,000 $ 320,000
Paragon Offshore Finance Co. FRS
BTL-B
3.75% due 07/18/2021....................... 264,323 98,680
----------
606,286
----------
OIL COMPANIES-EXPLORATION & PRODUCTION -- 0.0%
Fieldwood Energy LLC FRS
2nd Lien
8.38% due 09/30/2020....................... 340,000 95,200
----------
95,200
----------
OIL REFINING & MARKETING -- 0.2%
Chelsea Petroleum Products I LLC
BTL-B
4.25% due 07/07/2022....................... 529,000 520,183
----------
OIL-FIELD SERVICES -- 0.1%
McJunkin Red Man Corp. FRS
BTL-B
4.75% due 11/08/2019....................... 347,659 338,446
----------
PROFESSIONAL SPORTS -- 0.4%
Delta 2 Lux Sarl FRS
BTL-B3
4.75% due 07/31/2021....................... 1,080,000 1,064,764
----------
REAL ESTATE MANAGEMENT/SERVICES -- 1.6%
Capital Automotive LP FRS
2nd Lien
6.00% due 04/30/2020....................... 305,000 306,525
DTZ U.S. Borrower LLC
1st Lien
4.25% due 11/04/2021....................... 1,496,250 1,480,352
Realogy Group LLC FRS
BTL-B
3.75% due 03/05/2020....................... 2,016,309 2,012,276
----------
3,799,153
----------
RECREATIONAL CENTERS -- 0.3%
Life Time Fitness, Inc. FRS
BTL-B
4.25% due 06/10/2022....................... 792,015 789,045
----------
RESEARCH & DEVELOPMENT -- 0.1%
Pharmaceutical Product Development LLC FRS
BTL-B
4.25% due 08/18/2022....................... 291,270 288,661
----------
RESORT/THEME PARKS -- 0.2%
Six Flags Theme Parks, Inc. FRS
BTL-B
3.50% due 06/30/2022....................... 393,015 393,138
----------
RETAIL-ARTS & CRAFTS -- 0.6%
Michaels Stores, Inc. FRS
BTL-B
3.75% due 01/28/2020....................... 1,346,556 1,342,348
----------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
RETAIL-MAJOR DEPARTMENT STORES -- 0.3%
Hudson's Bay Co.
BTL-B
4.75% due 09/30/2022.................. $ 740,000 $ 741,379
----------
RETAIL-MISC./DIVERSIFIED -- 0.1%
Party City Holdings, Inc.
BTL-B
4.25% due 08/19/2022.................. 227,000 226,527
----------
RETAIL-OFFICE SUPPLIES -- 0.2%
Staples, Inc. FRS
BTL-B
2.75% due 04/07/2021.................. 600,000 597,225
----------
RETAIL-PET FOOD & SUPPLIES -- 0.2%
PetSmart, Inc. FRS
BTL-B
4.25% due 03/11/2022.................. 587,528 586,243
----------
RUBBER/PLASTIC PRODUCTS -- 0.1%
US Farathane LLC FRS
BTL
6.75% due 12/23/2021.................. 323,400 323,998
----------
SCHOOLS -- 0.4%
Laureate Education, Inc. FRS
BTL-B
5.00% due 06/15/2018.................. 994,837 880,430
----------
SECURITY SERVICES -- 0.3%
Builders FirstSource, Inc.
BTL-B
6.00% due 07/31/2022.................. 682,000 676,459
----------
SOAP & CLEANING PREPARATION -- 0.3%
Kik Custom Products, Inc.
BTL-B
6.00% due 08/14/2022.................. 722,000 704,853
----------
SPECIAL PURPOSE ENTITY -- 0.2%
Graton Economic Development Authority
BTL-B
4.75% due 07/28/2022.................. 378,000 377,764
----------
SPECIFIED PURPOSE ACQUISITIONS -- 0.2%
Ardent Legacy Acquisitions, Inc.
BTL-B
6.50% due 07/21/2021.................. 505,000 505,000
----------
TELECOM SERVICES -- 0.3%
West Corp. FRS
BTL-B10
3.25% due 06/30/2018.................. 700,000 691,578
----------
TELECOMMUNICATION EQUIPMENT -- 0.3%
SBA Senior Finance II LLC FRS
BTL-B
3.25% due 06/10/2022.................. 836,903 825,395
----------
TELEPHONE-INTEGRATED -- 0.9%
Level 3 Financing, Inc. FRS
BTL-B2
3.50% due 05/31/2022.................. 1,681,000 1,668,043
63
SUNAMERICA FLEXIBLE CREDIT FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
LOANS (CONTINUED)
TELEPHONE-INTEGRATED (CONTINUED)
XO Communications LLC FRS
BTL
4.25% due 03/19/2021.................. $ 544,472 $ 540,681
------------
2,208,724
------------
TELEVISION -- 2.3%
Sinclair Television Group, Inc. FRS
BTL-B1
3.50% due 07/30/2021.................. 842,888 836,566
Tribune Media Co. FRS
BTL
3.75% due 12/27/2020.................. 887,381 882,390
Univision Communications, Inc. FRS
BTL
4.00% due 03/01/2020.................. 3,871,550 3,838,278
------------
5,557,234
------------
THEATERS -- 0.2%
CDS US Intermediate Holdings Inc. FRS
1st Lein
5.00% due 07/08/2022.................. 471,000 471,673
------------
TRANSPORT-AIR FREIGHT -- 0.0%
Air Medical Group Holdings, Inc. FRS
BTL-B
4.50% due 04/28/2022.................. 45,885 45,225
------------
TOTAL LOANS
(cost $126,967,831)................... 124,131,730
------------
COMMON STOCKS+(1)(2) -- 0.0%
FOOD-MISC./DIVERSIFIED -- 0.0%
Wornick Co............................. 7,270 35,012
------------
MULTIMEDIA -- 0.0%
Haights Cross Communication, Inc....... 19,388 0
------------
TOTAL COMMON STOCKS
(cost $204,047)........................ 35,012
------------
MEMBERSHIP INTEREST CERTIFICATES -- 0.1%
CASINO SERVICES -- 0.1%
Herbst Gaming, Inc.+(13)
(cost $232,720)....................... 23,439 281,268
------------
PREFERRED SECURITIES -- 0.5%
DIVERSIFIED BANKING INSTITUTIONS -- 0.5%
GMAC Capital Trust I VRS
Series 2
8.13% (cost $1,191,987)............... 46,500 1,187,145
------------
PREFERRED SECURITIES/CAPITAL SECURITIES -- 0.4%
BANKS-SUPER REGIONAL -- 0.1%
SunTrust Banks, Inc. FRS
5.63% due 12/15/2019(14).............. 110,000 110,000
DIVERSIFIED BANKING INSTITUTIONS -- 0.0%
JPMorgan Chase & Co. FRS
5.30% due 05/01/2020(14).............. 110,000 108,075
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
INSURANCE-MULTI-LINE -- 0.3%
Voya Financial, Inc. FRS
Company Guar. Notes
5.65% due 05/15/2053....................... $600,000 $ 604,800
------------
TOTAL PREFERRED SECURITIES/CAPITAL SECURITIES
(cost $846,250)............................ 822,875
------------
WARRANTS -- 0.2%
TELEVISION -- 0.2%
ION Media Networks, Inc.
Expires 12/18/2016
(strike price $0.01)+(1)(2)(13)............ 328 212,193
ION Media Networks, Inc.
Expires 12/18/2016
(strike price $0.01)+(1)(2)(13)............ 332 214,781
------------
TOTAL WARRANTS
(cost $0).................................. 426,974
------------
TOTAL LONG-TERM INVESTMENT SECURITIES
(cost $249,118,375)........................ 238,395,189
------------
TOTAL INVESTMENTS
(cost $249,118,375)(15).................... 97.5% 238,395,189
Other assets less liabilities............... 2.5 6,181,744
-------- ------------
NET ASSETS 100.0% $244,576,933
======== ============
--------
* Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be sold in transactions exempt from
registration, normally to qualified institutional buyers. The Fund has no
right to demand registration of these securities. At September 30, 2015,
the aggregate value of these securities was $52,728,551 representing 21.6%
of net assets. Unless otherwise indicated, these securities are not
considered to be illiquid.
+ Non-income producing security
(1) Fair valued security. Securities are classified as Level 3 based on the
securities valuation inputs; see Note 3.
(2) Illiquid security. At September 30, 2015, the aggregate value of these
securities was $461,986 representing 0.2% of net assets.
(3) Security in default
(4) Company has filed for Chapter 11 bankruptcy protection.
(5) Company has filed for Chapter 7 bankruptcy.
(6) Security in default of principal and interest at maturity.
(7) PIK ("Payment-in-Kind") security -- Income may be paid in additional
securities or cash at the discretion of the issuer. The security is
currently paying interest in cash at the coupon rate listed.
(8) PIK ("Payment-in-Kind") security -- Income may be paid in additional
securities or cash at the discretion of the issuer. The security is
currently paying interest the form of additional securities at the coupon
rate listed.
(9) Company has filed for bankruptcy protection in the country of issuance.
(10) Senior loans in the Fund are generally subject to mandatory and/or
optional prepayment. Because of these mandatory prepayment conditions and
because there may be significant economic incentives for a borrower to
prepay, prepayments may occur. As a result, the actual remaining maturity
may be substantially less than the stated maturities shown.
(11) 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
64
SUNAMERICA FLEXIBLE CREDIT FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
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.
(12) All loans in the portfolio were purchased through assignment agreements
unless otherwise indicated.
(13) 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
3. Certain restricted securities held by the Fund may not be sold except
in exempt transactions or in a public offering registered under the 1933
Act. The Fund has no right to demand registration of these securities. The
risk of investing in certain restricted securities is greater than the
risk of investing in the securities of widely held, publicly traded
companies. To the extent applicable, lack of a secondary market and resale
restrictions may result in the inability of a Fund to sell a security at a
fair price and may substantially delay the sale of the security. In
addition, certain restricted securities may exhibit greater price
volatility than securities for which secondary markets exist. As of
September 30, 2015, the Fund held the following restricted securities:
SHARES/ VALUE % OF
ACQUISITION PRINCIPAL ACQUISITION PER NET
DESCRIPTION DATE AMOUNT COST VALUE SHARE ASSETS
----------- ----------- --------- ----------- -------- ------ ------
MEMBERSHIP INTEREST CERTIFICATES
Herbst Gaming,
Inc................ 03/26/2008 23,439 $232,720 $281,268 12.00 0.11
WARRANTS
ION Media Networks,
Inc. Expires
12/18/2016 (strike
price $0.01)....... 03/01/2011 332 0 214,781 646.93 0.09
ION Media Networks,
Inc. Expires
12/18/2016 (strike
price $0.01)....... 11/11/2010 327 0
03/01/2011 1 0
------ --------
328 0 212,193 646.93 0.09
-------- ----
$708,242 0.29%
======== ====
(14) Perpetual maturity--maturity date reflects the next call date.
(15) See Note 6 for cost of investments on a tax basis.
BTL --Bank Term Loan
DIP --Debtor in Possession
FRS --Floating Rate Security
VRS --Variable Rate Security
The rates shown on FRS and VRS are the current interest rates at September 30,
2015 and unless noted otherwise, the dates shown are the original maturity
dates.
The following is a summary of the inputs used to value the Fund's net assets as
of September 30, 2015 (see Note 3):
LEVEL 1 -- UNADJUSTED LEVEL 2 -- OTHER LEVEL 3 -- SIGNIFICANT
QUOTED PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS TOTAL
- --------------------- ----------------- ---------------------- ------------
ASSETS:
Investments at Value:*
Asset Backed Securities:
Diversified Financial Services........... $ -- $ 1,689,037 $339,490 $ 2,028,527
Convertible Bonds & Notes................. -- -- 0 0
U.S. Corporate Bonds & Notes:
Rubber/Plastic Products.................. -- -- 0 0
Other Industries......................... -- 92,529,216 -- 92,529,216
Foreign Corporate Bonds & Notes:
Special Purpose Entity................... -- -- 0 0
Other Industries......................... -- 16,952,442 -- 16,952,442
Loans:
Building-Residential/Commercial.......... -- -- 0 0
Other Industries......................... -- 124,131,730 -- 124,131,730
Common Stocks............................. -- -- 35,012 35,012
Membership Interest Certificates.......... -- 281,268 -- 281,268
Preferred Securities...................... 1,187,145 -- -- 1,187,145
Preferred Securities/Capital Securities... -- 822,875 -- 822,875
Warrants.................................. -- -- 426,974 426,974
---------- ------------ -------- ------------
TOTAL INVESTMENTS AT VALUE................ $1,187,145 $236,406,568 $801,476 $238,395,189
========== ============ ======== ============
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
The Fund's policy is to recognize transfers between Levels as of the end of the
reporting period. There were no transfers between Levels during the reporting
period.
At the beginning and end of the reporting period, Level 3 investments were not
considered a material portion of the Fund.
See Notes to Financial Statements
65
SUNAMERICA INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
Note 1. Organization
The SunAmerica Income Funds (the "Trust") is a diversified open-end
management investment company organized as a Massachusetts business trust.
The Trust currently consists of three different series (each, a "Fund" and
collectively, the "Funds"). Each Fund is a separate series of the Trust with
distinct investment objectives and/or strategies. Each Fund is managed by
SunAmerica Asset Management, LLC (the "Adviser" or "SunAmerica"), an
indirect wholly-owned subsidiary of American International Group, Inc.
("AIG"). An investor may invest in one or more of the following Funds:
SunAmerica U.S. Government Securities Fund ("U.S. Government Securities
Fund"), SunAmerica Strategic Bond Fund ("Strategic Bond Fund"), and
SunAmerica Flexible Credit Fund ("Flexible Credit Fund"). The Funds are
considered to be separate entities for financial and tax reporting purposes.
The investment goals and principal investment techniques for each of the
Funds are as follows:
U.S. GOVERNMENT SECURITIES FUND seeks high current income consistent with
relative safety of capital by the active trading of U.S. Government
securities, without regard to the maturities of such securities. Under
normal market conditions, at least 80% of the Fund's net assets plus any
borrowing for investment purposes will be invested in such securities.
STRATEGIC BOND FUND seeks a high level of total return by the active trading
of a broad range of bonds, including both investment grade and
non-investment grade U.S. and foreign bonds (which may include "junk
bonds"), U.S. and foreign government and agency obligations, and
mortgage-backed securities, without regard to the maturities of such
securities. Under normal market conditions, at least 80% of the Fund's net
assets plus any borrowing for investment purposes will be invested in bonds.
FLEXIBLE CREDIT FUND seeks a high level of total return by the active
trading in credit instruments. Under normal circumstances, at least 80% of
the Fund's net assets, plus any borrowings for investment purposes, will be
invested in credit instruments and derivative instruments and
exchange-traded funds ("ETFs") that are linked to, or provide investment
exposure to, credit instruments. The Fund considers a credit instrument to
be any debt instrument or instrument with debt-like characteristics,
including but not limited to, corporate and sovereign bonds, secured
floating rate loans and other institutionally traded secured floating rate
debt obligations ("Loans"), and securitized instruments, which are
securities backed by pools of assets such as mortgages, loans, or other
receivables. The credit instruments in which the Fund intends to primarily
invest are U.S. and non-U.S. below investment grade, high yield bonds
(commonly referred to as "junk bonds") and Loans.
Each Fund offers multiple classes of shares. The classes within each Fund
are presented in the Statements of Assets and Liabilities. The cost
structure for each class is as follows:
Class A shares are offered at net asset value per share plus an initial
sales charge. Additionally, purchases of Class A shares in amounts of
$1,000,000 or more will be purchased at net asset value but will be subject
to a contingent deferred sales charge on redemptions made within two years
of purchase.
Class B shares are offered without an initial sales charge, although a
declining contingent deferred sales charge may be imposed on redemptions
made within six years of purchase. Class B shares convert automatically to
Class A shares on the first business day of the month following the eighth
anniversary of the issuance of such Class B shares and at such time will be
subject to the lower distribution fee applicable to Class A shares. The U.S.
Government Fund and the Flexible Credit Fund stopped offering Class B shares
for sale as of the close of business December 2, 2014. As of the close of
business January 27, 2015, Class B shares of each of the U.S. Government
Securities Fund and the Flexible Credit Fund converted to Class A shares of
each respective Fund.
Class C shares are offered at net asset value per share without an initial
sales charge and may be subject to a contingent deferred sales charge on
redemptions made within 12 months of purchase.
Class W shares are offered at net asset value per share. The class is
offered exclusively through advisory fee-based programs sponsored by certain
financial intermediaries and other programs. Class W shares of the Flexible
Credit Fund and the Strategic Bond Fund commenced operations effective
October 1, 2014 and January 29, 2015, respectively.
66
SUNAMERICA INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
Each class of shares bears the same voting, dividend, liquidation and other
rights and conditions except as may otherwise be provided in the Trust's
registration statement. Class A, Class B and Class C shares each makes
distribution and account maintenance and service fee payments under the
distribution plan pursuant to Rule 12b-1 under the Investment Company Act of
1940, as amended (the "1940 Act"), except that Class B and Class C shares
are subject to higher distribution fees.
INDEMNIFICATIONS: The Trust's organizational documents provide current and
former officers and trustees with a limited indemnification against
liabilities arising out of the performance of their duties to the Trust. In
addition, pursuant to Indemnification Agreements between the Trust and each
of the current trustees who is not an "interested person," as defined in
Section 2(a)(19) of the 1940 Act, of the Trust (collectively, the
"Disinterested Trustees"), the Trust provides the Disinterested Trustees
with a limited indemnification against liabilities arising out of the
performance of their duties to the Trust, whether such liabilities are
asserted during or after their service as trustees. In addition, in the
normal course of business, the Trust enters into contracts that contain the
obligation to indemnify others. The Trust's maximum exposure under these
arrangements is unknown. Currently, however, the Trust expects the risk of
loss to be remote.
Note 2. Fund Merger
Pursuant to an Agreement and Plan of Reorganization, all of the assets and
liabilities of the SunAmerica GNMA Fund, a series of the Trust, were
transferred in a tax-free exchange to the U.S. Government Securities Fund,
in exchange for shares of the U.S. Government Securities Fund. The
reorganization was consummated on November 10, 2014. The acquiring fund
acquired all of the assets and liabilities of the target fund as shown in
the table below. Class A, Class B, and Class C shares of the SunAmerica GNMA
Fund were exchanged tax-free for Class A, Class B, and Class C shares of the
U.S. Government Securities Fund at an exchange ratio of 1.11 to 1, 1.11 to
1, and 1.11 to 1, respectively. Shares of the U.S. Government Securities
Fund issued in connection with the acquisition of the SunAmerica GNMA Fund
were 12,979,447 with a value of $125,333,608. The assets in the investment
portfolio of the SunAmerica GNMA Fund with a value of $125,119,235 and
identified cost of $122,854,034 as of the date of the reorganization, were
the principal assets acquired by the acquiring fund. For financial statement
purposes, assets received and shares issued by the acquiring fund were
recorded at value; however, the cost basis of the investments received from
the target fund were carried forward to align ongoing reporting of the
acquiring fund's realized and unrealized gains and losses with amounts
distributable to shareholders for tax purposes.
The following is a summary of the shares outstanding, net assets, net asset
value per share and net unrealized appreciation (depreciation) immediately
before and after the reorganization:
NET ASSET NET UNREALIZED
SHARES VALUE APPRECIATION
OUTSTANDING NET ASSETS PER SHARE (DEPRECIATION)
----------- ------------ --------- --------------
Target Fund
SunAmerica GNMA Fund....................... $2,265,201
Class A.................................... 9,096,890 $ 97,317,280 $10.70
Class B.................................... 851,684 9,136,498 10.73
Class C.................................... 1,757,477 18,879,830 10.74
Acquiring Fund
SunAmerica U.S. Government Securities Fund. $5,835,409
Class A.................................... 9,875,105 $ 95,366,623 $ 9.66
Class B.................................... 294,560 2,845,301 9.66
Class C.................................... 853,892 8,239,955 9.65
Post Reorganization
SunAmerica U.S. Government Securities Fund. $8,100,610
Class A.................................... 19,952,209 $192,683,902 $ 9.66
Class B.................................... 1,240,419 11,981,799 9.66
Class C.................................... 2,810,376 27,119,786 9.65
Assuming the reorganization had been completed on April 1, 2014, the
beginning of the annual reporting period for the acquiring fund, the pro
forma results of operations for the period ended March 31, 2015, are as
follows:
Net investment income (loss)................... $2,770,789
Net realized/unrealized gains (losses)......... 6,356,714
----------
Change in net assets resulting from operations. $9,127,503
==========
67
SUNAMERICA INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
Because the combined investment portfolios have been managed as a single
integrated portfolio since the reorganization was completed, it is not
practicable to separate the amounts of revenue and earnings of the target
fund that have been included in the Statement of Operations since November
10, 2014.
Note 3. Significant Accounting Policies
The preparation of financial statements in accordance with U.S. generally
accepted accounting principles ("GAAP") requires management to make
estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results could differ from those
estimates and those differences could be significant. The following is a
summary of significant accounting policies consistently followed by the
Trust in the preparation of its financial statements:
SECURITY VALUATION: In accordance with the authoritative guidance on fair
value measurements and disclosures under GAAP, the Funds disclose the fair
value of their investments in a hierarchy that prioritizes the inputs to
valuation techniques used to measure the fair value. In accordance with
GAAP, fair value is defined as the price that the Funds would receive upon
selling an asset or transferring a liability in a timely transaction to an
independent third party in the principal or most advantageous market. GAAP
establishes a three-tier hierarchy to provide more transparency around the
inputs used to measure fair value and to establish classification of fair
value measurements for disclosure purposes. Inputs refer broadly to the
assumptions that market participants would use in pricing the asset or
liability, including assumptions about risk. Inputs may be observable or
unobservable. Observable inputs are inputs that reflect the assumptions
market participants would use in pricing the asset or liability developed
based on market data obtained from sources independent of the reporting
entity. Unobservable inputs are inputs that reflect the reporting entity's
own assumptions about the assumptions market participants would use in
pricing the asset or liability developed based on the best information
available in the circumstances. The three-tiers are as follows:
Level 1 -- Unadjusted quoted prices in active markets for identical
securities
Level 2 -- Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
referenced indices, quoted prices in inactive markets, adjusted quoted
prices in active markets, adjusted quoted prices on foreign equity
securities that were adjusted in accordance with pricing procedures approved
by the Board of Trustees ("the Board"), etc.)
Level 3 -- Significant unobservable inputs (includes inputs that reflect the
Funds' own assumptions about the assumptions market participants would use
in pricing the security, developed based on the best information available
under the circumstances)
Changes in valuation techniques may result in transfers in or out of an
investment's assigned Level within the hierarchy. The methodology used for
valuing investments is not necessarily an indication of the risk associated
with investing in those investments and the determination of the
significance of a particular input to the fair value measurement in its
entirety requires judgment and consideration of factors specific to each
security.
The availability of observable inputs can vary from security to security and
is affected by a wide variety of factors, including, for example, the type
of security, whether the security is recently issued and not yet established
in the marketplace, the liquidity of markets, and other characteristics
particular to the security. To the extent that valuation is based on models
or inputs that are less observable or unobservable in the market, the
determination of fair value requires more judgment. Accordingly, the degree
of judgment exercised in determining fair value is greatest for instruments
categorized in Level 3.
The summary of each Fund's asset and liabilities classified in the fair
value hierarchy as of September 30, 2015 is reported on a schedule following
each Fund's Portfolio of Investments.
Stocks are generally valued based upon closing sales prices reported on
recognized securities exchanges on which the securities are principally
traded and are generally categorized as Level 1. Stocks listed on the NASDAQ
are valued using the NASDAQ Official Closing Price ("NOCP"). Generally, the
NOCP will be the last sale price unless the reported trade for the stock is
outside the range of the bid/ask price. In such cases, the NOCP will be
normalized to the nearer of the bid or ask price. For listed securities
having no sales reported and for unlisted securities, such securities will
be valued based upon the last reported bid price.
68
SUNAMERICA INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
As of the close of regular trading on the New York Stock Exchange ("NYSE"),
securities traded primarily on security exchanges outside the United States
are valued at the last sale price on such exchanges on the day of valuation,
or if there is no sale on the day of valuation, at the last-reported bid
price. If a security's price is available from more than one exchange, the
Funds use the exchange that is the primary market for the security. Such
securities are generally categorized as Level 1. However, depending on the
foreign market, closing prices may be up to 15 hours old when they are used
to price a Fund's shares, and a Fund may determine that certain closing
prices do not reflect the fair value of the security. This determination
will be based on review of a number of factors, including developments in
foreign markets, the performance of U.S. securities markets, and the
performance of instruments trading in U.S. markets that represent foreign
securities and baskets of foreign securities. If a Fund determines that
closing prices do not reflect the fair value of the securities, the Fund
will adjust the previous closing prices in accordance with pricing
procedures approved by the Board to reflect what it believes to be the fair
value of the securities as of the close of regular trading on the NYSE. The
Funds may also fair value securities in other situations, for example, when
a particular foreign market is closed but a Fund is open. For foreign equity
securities and foreign equity futures contracts, the Funds use an outside
pricing service to provide it with closing market prices and information
used for adjusting those prices and when so adjusted, such securities and
futures are generally categorized as Level 2.
Bonds, debentures and other debt securities are valued at evaluated bid
prices obtained for the day of valuation from a Board-approved pricing
service, and are generally categorized as Level 2. The pricing service may
use valuation models or matrix pricing which considers information with
respect to comparable bond and note transactions, quotations from bond
dealers, or by reference to other securities that are considered comparable
in such characteristics as rating, interest rate, and maturity date, option
adjusted spread models, prepayments projections, interest rate spreads, and
yield curves to determine current value. If a price is unavailable from a
Board-approved pricing service, the securities may be priced at the mean of
two independent quotes obtained from brokers.
Senior floating rate loans ("Loans") are valued at the average of available
bids in the market for such Loans, as provided by a Board-approved loan
pricing service, and are generally categorized as Level 2.
Investments in registered investment companies that do not trade on an
exchange are valued at the end of day net asset value per share. Investments
in registered investment companies that trade on an exchange are valued at
the last sales price or official closing price as of the close of the
customary trading session on the exchange where the security is principally
traded. Registered investment companies are generally categorized as Level 1.
Forward foreign currency contracts ("forward contracts") are valued at the
4:00 p.m. Eastern Time forward rate and are generally categorized as Level 2.
Other securities are valued on the basis of last sale or bid price (if a
last sale price is not available) which is, in the opinion of the Adviser,
the broadest and most representative market, that may be either a securities
exchange or over-the-counter market and are generally categorized as Level 1
or Level 2.
The Board is responsible for the share valuation process and has adopted
policies and procedures (the "PRC Procedures") for valuing the securities
and other assets held by the Funds, including procedures for the fair
valuation of securities and other assets for which market quotations are not
readily available or are unreliable. The PRC Procedures provide for the
establishment of a pricing review committee, which is responsible for, among
other things, making certain determinations in connection with the Trust's
fair valuation procedures. Securities for which market quotations are not
readily available or the values of which may be significantly impacted by
the occurrence of developments or significant events are generally
categorized as Level 3. There is no single standard for making fair value
determinations, which may result in prices that vary from those of other
funds.
DERIVATIVE INSTRUMENTS:
Forward Foreign Currency Contracts: During the period, the Strategic Bond
Fund used forward contracts to attempt to protect securities and related
receivables and payables against changes in future foreign exchange rates.
69
SUNAMERICA INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
A forward contract is an agreement between two parties to buy or sell
currency at a set price on a future date. The market value of the contract
will fluctuate with changes in currency exchange rates. The contract is
marked-to-market daily using the forward rate and the cumulative change in
market value is recorded by a Fund as unrealized appreciation or
depreciation. On the settlement date, a Fund records either realized gains
or losses equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed.
Risks to the Funds of entering into forward contracts include counterparty
risk, market risk and illiquidity risk. Counterparty risk arises upon
entering into these contracts from the potential inability of counterparties
to meet the terms of their contracts. If the counterparty defaults, a Fund's
loss will generally consist of the net amount of contractual payments that
the Fund has not yet received though the Fund's maximum exposure due to
counterparty risk could extend to the notional amount of the contract.
Market risk is the risk that the value of the forward contract will
depreciate due to unfavorable changes in the exchange rates. These contracts
may involve market risk in excess of the unrealized appreciation or
depreciation reported on the Statements of Assets and Liabilities.
Illiquidity risk arises because the secondary market for forwards may have
less liquidity relative to markets for other securities. Currency
transactions are also subject to risks different from those of other
portfolio transactions. Because currency control is of great importance to
the issuing governments and influences economic planning and policy,
purchases and sales of currency and related instruments can be adversely
affected by government exchange controls, limitations or restrictions on
repatriation of currency, and manipulations or exchange restrictions imposed
by governments.
Forward foreign currency contracts outstanding at the end of the period, if
any, are reported on a schedule following each Fund's Portfolio of
Investments.
Master Agreements: Certain Funds that hold derivative instruments and other
financial instruments may be a party to ISDA (International Swaps and
Derivatives Association, Inc.) Master Agreements or similar agreements
("Master Agreements") with certain counterparties that govern certain
instruments. Master Agreements may contain provisions regarding, among other
things, the parties' general obligations, representations, agreements,
collateral requirements, events of default and early termination. Collateral
can be in the form of cash or securities as agreed to by the Fund and
applicable counterparty. Collateral requirements are generally determined
based on a Fund's net position with each counterparty. Master Agreements may
also include certain provisions that require a Fund to post additional
collateral upon the occurrence of certain events, such as when a Fund's net
assets fall below a specified level. In addition, Master Agreements
typically specify certain standard termination events, such as failure of a
party to pay or deliver, credit support defaults and other events of
default. Termination events applicable to a Fund may also occur upon a
decline in the Fund's net assets below a specified level over a certain
period of time. Additional termination events applicable to counterparties
may occur upon a decline in a counterparty's long-term and short-term credit
ratings below a specified level, or upon a decline in the ratings of a
counterparty's credit support provider. Upon the occurrence of a termination
event, the other party may elect to terminate early and cause settlement of
all instruments outstanding pursuant to a particular Master Agreement,
including the payment of any losses and costs resulting from such early
termination, as reasonably determined by the terminating party. Any decision
by one or more of a Fund's counterparties to elect early termination could
cause a Fund to accelerate the payment of liabilities, which settlement
amounts could be in excess of the amount of assets that are already posted
as collateral. Typically, the Master Agreement will permit a single net
payment in the event of default. Note, however, that bankruptcy or
insolvency laws of a particular jurisdiction may impose restrictions on or
prohibitions against the right of offset in bankruptcy, insolvency or other
events. As a result, the early termination with respect to derivative
instruments subject to Master Agreements that are in a net liability
position could be material to a Fund's financial statements. The Funds do
not offset derivative assets and derivative liabilities that are subject to
netting arrangements in the Statements of Asset and Liabilities.
The following tables represent the value of derivatives held as of
September 30, 2015, by their primary underlying risk exposure and respective
location on the Statements of Assets and Liabilities and the effect of
derivatives on the Statements of Operations for the period ended
September 30, 2015. The derivative contracts held during the period are not
accounted for as hedging
70
SUNAMERICA INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
instruments under GAAP. For a detailed presentation of derivatives held as
of September 30, 2015, please refer to each Fund's Portfolio of Investments.
LIABILITY
ASSET DERIVATIVES DERIVATIVES
----------------- ---------------
FOREIGN FOREIGN
EXCHANGE EXCHANGE
CONTRACTS CONTRACTS
----------------- ---------------
FOREIGN FORWARD FOREIGN FORWARD
EXCHANGE EXCHANGE
FUND CONTRACTS(1) CONTRACTS(2)
---- ----------------- ---------------
Strategic Bond. $838,981 $29,600
======== =======
--------
STATEMENT OF ASSETS AND LIABILITIES LOCATION:
(1)Unrealized appreciation on forward foreign currency contracts
(2)Unrealized depreciation on forward foreign currency contracts
CHANGE IN
UNREALIZED
REALIZED GAIN APPRECIATION
(LOSS) ON (DEPRECIATION) ON
DERIVATIVES DERIVATIVES
RECOGNIZED IN RECOGNIZED IN
STATEMENT OF STATEMENT OF
OPERATIONS OPERATIONS
--------------- -----------------
FOREIGN FOREIGN
EXCHANGE EXCHANGE
CONTRACTS CONTRACTS
--------------- -----------------
FOREIGN FORWARD FOREIGN FORWARD
EXCHANGE EXCHANGE
FUND CONTRACTS(1) CONTRACTS(2)
---- --------------- -----------------
Strategic Bond. $(1,041,487) $(499,596)
=========== =========
--------
STATEMENT OF OPERATIONS LOCATION:
(1)Net realized foreign exchange gain (loss) on other assets and liabilities
(2)Change in unrealized foreign exchange gain (loss) on other assets and
liabilities
The following table represents the average monthly balances of derivatives
held during the six months ended September 30, 2015:
AVERAGE AMOUNT
OUTSTANDING
DURING THE YEAR
---------------
FOREIGN FORWARD
EXCHANGE
FUND CONTRACTS(1)
---- ---------------
Strategic Bond. $72,902,852
===========
--------
(1)Amounts represent notional amounts in US dollars.
There were no derivative assets and liabilities subject to Master Agreements
outstanding at September 30, 2015. The repurchase agreements held by the
Funds as of September 30, 2015, are subject to Master Agreements. See the
Portfolio of Investments and the Notes to the Financial Statements for more
information about the Funds' holdings in repurchase agreements.
MORTGAGE-BACKED DOLLAR ROLLS: During the year ended September 30, 2015, the
Strategic Bond Fund entered into dollar rolls using "to be announced"
("TBA") mortgage-backed securities ("TBA Rolls"). TBA Roll transactions
involve the sale of mortgage or other asset backed securities with the
commitment to purchase substantially similar securities on a specified
future date. The Funds' policy is to record the components of TBA Rolls as
purchase/sale transactions. Any difference between the purchase and sale
price is recorded as a realized gain or loss on the date the transaction is
entered into. The Strategic Bond Fund
71
SUNAMERICA INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
had TBA Rolls outstanding at period end, which are included in receivable
for investments sold and payable for investments purchased in the Statements
of Assets and Liabilities. TBA Roll transactions involve the risk that the
market value of the securities held by a Fund may decline below the price of
the securities that the Fund has sold but is obligated to repurchase under
the agreement. In the event that the buyer of securities in a TBA Roll
transaction files bankruptcy or becomes insolvent, a Fund's use of the
proceeds from the sale of the securities may be restricted pending a
determination by the other party, or its trustee or receiver, whether to
enforce the Fund's obligation to repurchase the securities. The return
earned by a Fund with the proceeds of the TBA Roll transaction may not
exceed the transaction costs.
WHEN-ISSUED SECURITIES AND FORWARD COMMITMENTS: Certain Funds may purchase
or sell when-issued securities, including TBA securities that have been
authorized, but not yet issued in the market. In addition, a Fund may
purchase or sell securities on a forward commitment basis. A forward
commitment involves entering into a contract to purchase or sell securities,
typically on an extended settlement basis, for a fixed price at a future
date. The Funds may engage in when-issued or forward commitment transactions
in order to secure what is considered to be an advantageous price and yield
at the time of entering into the obligation. The purchase of securities on a
when-issued or forward commitment basis involves a risk of loss if the value
of the security to be purchased declines before the settlement date.
Conversely, the sale of securities on a when-issued or forward commitment
basis involves the risk that the value of the securities sold may increase
before the settlement date. For the period ended September 30, 2015, the
Strategic Bond Fund purchased and/or sold when-issued securities.
STRIPPED MORTGAGE-BACKED SECURITIES: Stripped Mortgage-Backed Securities
("SMBS") are multiple-class mortgage-backed securities. SMBS are often
structured with two classes that receive different proportions of the
interest and principal distributions on a pool of mortgage assets. SMBS have
greater market volatility than other types of U.S. government securities in
which a Fund invests. A common type of SMBS has one class receiving some of
the interest and all or most of the principal (the "principal only" class)
from the mortgage pool, while the other class will receive all or most of
the interest (the "interest only" class). The yield to maturity on an
interest only class is extremely sensitive not only to changes in prevailing
interest rates, but also to the rate of principal payments, including
principal prepayments, on the underlying pool of mortgage assets, and a
rapid rate of principal payment may have a material adverse effect on a
Fund's yield.
INFLATION-INDEXED BONDS: Certain Funds may purchase inflation-indexed bonds.
Inflation-indexed bonds are fixed income securities whose principal value is
adjusted periodically according to the rate of inflation. Two structures are
common. The U.S. Treasury and certain other issuers use a structure that
reflects inflation in the principal value of the bond. Other issuers pay out
any inflation related accruals as part of a semiannual coupon. The value of
inflation-indexed bonds is expected to change in response to changes in real
interest rates. Real interest rates, in turn, are tied to the relationship
between nominal interest rates (i.e., stated interest rates) and the rate of
inflation. Therefore, if the rate of inflation rises at a faster rate than
nominal interest rates, real interest rates (i.e., nominal interest rates
minus inflation) might decline, leading to an increase in value of
inflation-indexed bonds. In contrast, if nominal interest rates increase at
a faster rate than inflation, real interest rates might rise, leading to a
decrease in value of inflation-indexed bonds. There can be no assurance,
however, that the value of inflation-indexed bonds will be directly
correlated to changes in nominal interest rates, and short-term increases in
inflation may lead to a decline in their value. Coupon payments received
from inflation-indexed bonds are recorded in the Statements of Operations as
interest income. In addition, any increase or decrease in the principal
amount of an inflation-indexed bond will be recorded in the Statements of
Operations as an increase or decrease to interest income, even though
principal is not paid until maturity.
REPURCHASE AGREEMENTS: The Funds, along with other affiliated registered
investment companies, pursuant to procedures adopted by the Board and
applicable guidance from the Securities and Exchange Commission ("SEC"), may
transfer uninvested cash balances into a single joint account, the daily
aggregate balance of which is invested in one or more repurchase agreements
collateralized by U.S. Treasury or federal agency obligations. In a
repurchase agreement, the seller of a security agrees to repurchase the
security at a mutually agreed-upon time and price, which reflects the
effective rate of return for the term of the agreement. For repurchase
agreements and joint repurchase agreements, the Trust's custodian takes
possession of the collateral pledged for investments in such repurchase
agreements ("repo" or collectively "repos"). The underlying collateral is
valued daily on a mark to market basis, plus accrued interest to ensure that
the value, at the time the agreement is entered into, is equal to at least
102% of the repurchase price, including accrued interest. In the event of
default of the obligation to repurchase, a Fund has the right to liquidate
the collateral and apply the proceeds in satisfaction of the obligation. If
the seller defaults and the value of the collateral declines or if
bankruptcy proceedings are commenced with respect to the seller of the
security, realization of the collateral by a Fund may be delayed or limited.
72
SUNAMERICA INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
As of September 30, 2015, the following funds held an undivided interest in
a joint repurchase agreement with State Street Bank and Trust Co.:
PERCENTAGE PRINCIPAL
FUND OWNERSHIP AMOUNT
---- ---------- ----------
U.S. Government Securities. 1.58% $5,688,000
Strategic Bond............. 0.60 2,169,000
As of such date, the repurchase agreement in that joint account and the
collateral thereof were as follows:
State Street Bank and Trust Co., dated September 30, 2015, bearing interest
at a rate of 0.00% per annum, with a principal amount of $359,908,000, a
repurchase price of $359,908,000, and a maturity date of October 1, 2015.
The repurchase agreement is collateralized by the following:
INTEREST PRINCIPAL
TYPE OF COLLATERAL RATE MATURITY DATE AMOUNT VALUE
------------------ -------- ------------- ------------ ------------
U.S. Treasury Notes. 1.63% 12/31/2019 $100,000,000 $101,625,000
U.S. Treasury Notes. 1.75 5/15/2023 92,165,000 91,819,381
U.S. Treasury Notes. 2.63 8/15/2020 112,160,000 118,749,400
U.S. Treasury Notes. 3.38 11/15/2019 50,000,000 54,914,050
SECURITIES TRANSACTIONS, INVESTMENT INCOME, EXPENSES, DIVIDENDS AND
DISTRIBUTIONS TO SHAREHOLDERS: Security transactions are recorded on a trade
date basis. Interest income is accrued daily from settlement date except
when collection is not expected. Dividend income is recorded on the
ex-dividend date except for certain dividends from foreign securities, which
are recorded as soon as the Trust is informed after the ex-dividend date.
Paydown gains and losses on mortgage and asset-backed securities are
recorded as components of interest income on the Statements of Operations.
For financial statement purposes, the Funds amortize all premiums and
accrete all discounts on fixed income securities.
Realized gains and losses on the sale of investments are calculated on the
identified cost basis. Funds which earn foreign income and capital gains may
be subject to foreign withholding taxes and capital gains taxes at various
rates. Under applicable foreign law, a withholding of tax may be imposed on
interest, dividends, and capital gains from the sale of foreign securities
at various rates.
Net investment income, expenses other than class specific expenses, and
realized and unrealized gains and losses are allocated daily to each class
of shares based upon the relative net asset value of outstanding shares of
each class of shares at the beginning of the day (after adjusting for
current capital shares activity of the respective class).
Expenses common to all Funds are allocated among the Funds based upon
relative net assets or other appropriate allocation methods. In all other
respects, expenses are charged to each Fund as incurred on a specific
identification basis.
Dividends from net investment income are accrued daily and paid monthly.
Capital gain distributions, if any, are paid annually. The Funds record
dividends and distributions to their shareholders on the ex-dividend date.
The Funds reserve the right to declare and pay dividends less frequently
than disclosed above, provided that the net realized capital gains and net
investment income, if any, are paid at least annually. The amount of
dividends and distributions from net investment income and net realized
capital gains are determined in accordance with federal income tax
regulations, which may differ from GAAP. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within
the capital accounts at fiscal year end based on their federal tax-basis
treatment; temporary differences do not require reclassification. Net assets
are not affected by these reclassifications.
Each Fund is considered a separate entity for tax purposes and intends to
comply with the requirements of the Internal Revenue Code, as amended,
applicable to regulated investment companies and distribute all of its
taxable income, including any net capital gains on investments, to its
shareholders. Each Fund also intends to distribute sufficient net investment
income and net capital gains, if any, so that it will not be subject to
excise tax on undistributed income and gains. Therefore, no federal income
tax or excise tax provision is required.
73
SUNAMERICA INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
The Funds recognize the tax benefits of uncertain tax positions only when
the position is more likely than not to be sustained, assuming examination
by tax authorities. Management has analyzed each Fund's tax positions and
concluded that no liability for unrecognized tax benefits should be recorded
related to uncertain tax positions taken on returns filed for open tax years
2011 -- 2013 or expected to be taken in each Fund's 2014 tax return. The
Funds are not aware of any tax provisions for which it is reasonably
possible that the total amounts of unrecognized tax benefits will change
materially in the next twelve months. The Funds file U.S. federal and
certain state income tax returns. With few exceptions, the Funds are no
longer subject to U.S. federal and state tax examinations by tax authorities
for tax returns ending before 2011.
FOREIGN CURRENCY TRANSLATION: The books and records of the Funds are
maintained in U.S. dollars. Assets and liabilities denominated in foreign
currencies and commitments under forward foreign currency contracts are
translated into U.S. dollars based on the exchange rate of such currencies
against U.S. dollars on the date of valuation.
The Funds do not isolate that portion of the results of operations arising
as a result of changes in the foreign exchange rates from the changes in the
market prices of securities held at the end of the period. Similarly, the
Funds do not isolate the effect of changes in foreign exchange rates from
the changes in the market prices of portfolio securities sold during the
period.
Realized foreign exchange gains and losses on other assets and liabilities
and change in unrealized foreign exchange gains and losses on other assets
and liabilities located in the Statements of Operations include realized
foreign exchange gains and losses from currency gains or losses between the
trade and the settlement dates of securities transactions, the difference
between the amounts of interest, dividends and foreign withholding taxes
recorded on the Funds' books and the U.S. dollar equivalent amounts actually
received or paid and changes in the unrealized foreign exchange gains and
losses relating to the other assets and liabilities arising as a result of
changes in the exchange rates and realized gains and losses on forward
foreign currency contracts.
Note 4. Investment Advisory and Management Agreement, Distribution Agreement
and Service Agreement
The Trust, on behalf of each Fund, has an Investment Advisory and Management
Agreement (the "Agreement") with SunAmerica. Under the Agreement, SunAmerica
provides continuous supervision of a Fund's portfolio and administers its
corporate affairs, subject to general review by the Trustees. In connection
therewith, SunAmerica furnishes the Funds with office facilities, maintains
certain of the Funds' books and records, and pays the salaries and expenses
of all personnel, including officers of the Funds, who are employees of
SunAmerica and its affiliates.
The Funds pay SunAmerica a monthly investment advisory and management fee
calculated daily at the following annual percentages of each Fund's average
daily net assets:
MANAGEMENT
FUND ASSETS FEES
---- ---------------------------- ----------
U.S. Government Securities........................ $0 - $200 million 0.650%
(greater than) $200 million 0.620
(greater than) $400 million 0.550
Strategic Bond.................................... $0 - $350 million 0.650
(greater than) $350 million 0.600
Flexible Credit................................... $0 - $200 million 0.750
(greater than) $200 million 0.720
(greater than) $400 million 0.550
The Strategic Bond Fund is subadvised by PineBridge Investments, LLC
("PineBridge"). The Flexible Credit Fund is subadvised by Newfleet Asset
Management, LLC ("Newfleet"). Under the Subadvisory Agreements, PineBridge
and Newfleet manage the investment and reinvestment of the assets of the
Strategic Bond Fund and the Flexible Credit Fund, respectively.
74
SUNAMERICA INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
SunAmerica pays PineBridge and Newfleet fees out of the investment advisory
fees it receives from the respective Funds. The portion of the investment
advisory fees received by SunAmerica that are paid to PineBridge and
Newfleet Asset Management, LLC with respect to the Strategic Bond Fund and
Flexible Credit Fund are as follows:
SUBADVISORY
FUND ASSETS FEES
---- ---------------------------- -----------
Strategic Bond.................................... $0 - $200 million 0.350%
(greater than) $200 million 0.250
(greater than) $500 million 0.200
Flexible Credit................................... $0 - $200 million 0.300
(greater than) $200 million 0.250
(greater than) $400 million 0.150
SunAmerica has contractually agreed to waive fees and/or reimburse expenses,
to the extent necessary to cap the Funds' annual fund operating expenses at
the following percentages of each Fund's average net assets. For the
purposes of waived fees and/or reimbursed expense calculations, annual Fund
operating expenses shall not include extraordinary expenses as determined
under generally accepted accounting principles, litigation, or acquired Fund
fees and expenses, brokerage commissions and other transactional expenses
relating to the purchase and sale of portfolio securities, interest, taxes
and governmental fees, and other expenses not incurred in the ordinary
course of a Fund's business. The contractual fee waivers and expense
reimbursements will continue indefinitely, subject to termination by the
Trustees, including a majority of the Disinterested Trustees.
FUND PERCENTAGE
---- ----------
U.S. Government Securities Class A..... 0.99%
U.S. Government Securities Class C..... 1.64
Strategic Bond Class A................. 1.40
Strategic Bond Class B................. 2.05
Strategic Bond Class C................. 2.05
Strategic Bond Class W................. 1.20
Flexible Credit Class A................ 1.45
Flexible Credit Class C................ 2.10
Flexible Credit Class W................ 1.25
For the U.S. Government Securities Fund, any contractual waivers and/or
reimbursements made by SunAmerica are subject to recoupment from the Fund
within two years after the occurrence of the waivers and/or reimbursements,
provided that the Fund is able to effect such payment to SunAmerica and
remain in compliance with the expense limitations in effect at the time the
waivers and/or reimbursements were made.
For the period ended September 30, 2015, pursuant to the contractual expense
limitations in the above tables SunAmerica has waived and/or reimbursed
expenses as follows:
OTHER EXPENSES
FUND REIMBURSED
---- --------------
U.S. Government Securities. $137,472
CLASS SPECIFIC
FUND EXPENSES
---- --------------
U.S. Government Securities Class A.......................... $196,871
U.S. Government Securities Class C.......................... 37,412
Flexible Credit Fund Class A................................ 23,788
Flexible Credit Fund Class C................................ 12,899
Flexible Credit Fund Class W................................ 7,887
75
SUNAMERICA INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
At September 30, 2015, expenses previously waived or reimbursed by
SunAmerica that are subject to recoupment and expire during the time period
indicated are as follows:
OTHER EXPENSES REIMBURSED
------------------------------------------------
FUND MARCH 31, 2016 MARCH 31, 2017 SEPTEMBER 30, 2017
---- -------------- -------------- ------------------
U.S. Government Securities.............. $ 80,410 $195,553 $137,472
CLASS SPECIFIC EXPENSES REIMBURSED
------------------------------------------------
FUND MARCH 31, 2016 MARCH 31, 2017 SEPTEMBER 30, 2017
---- -------------- -------------- ------------------
U.S. Government Securities Class A...... $134,434 $340,654 $196,871
U.S. Government Securities Class C...... 14,610 53,973 37,412
The Trust, on behalf of each Fund, has entered into a Distribution Agreement
with AIG Capital Services, Inc. ("ACS" or "Distributor"), an affiliate of
the Adviser. Each Fund has adopted a Distribution Plan on behalf of each
Class (other than Class W shares of the Strategic Bond and Flexible Credit
Funds), in accordance with the provisions of Rule 12b-1 under the 1940 Act
(each, a "Plan," and collectively, the "Plans"), hereinafter referred to as
the "Class A Plan," the "Class B Plan" and the "Class C Plan." In adopting
the Class A Plan, the Class B Plan and the Class C Plan, the Trustees
determined that there was a reasonable likelihood that each such Plan would
benefit the Trust and the shareholders of the respective class. The sales
charge and distribution fees of a particular class will not be used to
subsidize the sale of shares of any other class.
The Class A, Class B and Class C Plans, provide that the Trust, on behalf of
the respective classes, shall pay the Distributor a distribution fee at an
annual rate of up to 0.10%, 0.75% and 0.75%, of average daily net assets of
such Fund's Class A, Class B and Class C shares, respectively, to compensate
the Distributor and certain securities firms for providing sales and
promotional activities for distributing that class of shares. The
distribution costs for which the Distributor may be compensated for include
fees paid to broker-dealers that have sold Fund shares, commissions, and
other expenses such as those incurred for sales literature, prospectus
printing and distribution and compensation to wholesalers. It is possible
that in any given year, the amount paid to the Distributor under the Class A
Plan, Class B Plan or Class C Plan may exceed the Distributor's distribution
costs as described above. Except for Class W shares of the Strategic Bond
and Flexible Credit Funds, the Plans also provide that each class of shares
of the Trust will also pay the Distributor an account maintenance fee at the
annual rate of up to 0.25% of the aggregate average daily net assets of such
class of shares to compensate the Distributor and securities firms for
account maintenance activities. For the period ended September 30, 2015, ACS
received fees as reflected in the Statements of Operations based on the
aforementioned rates.
The Trust, on behalf of the Strategic Bond and Flexible Credit Funds, has
entered into an Administrative and Shareholder Services Agreement with ACS,
pursuant to which ACS is paid an annual fee of 0.15% of average daily net
assets of Class W shares as compensation for providing additional
shareholder services to Class W shareholders. For the period ended
September 30, 2015, ACS earned fees as reflected in the Statements of
Operations based on the aforementioned rate.
ACS receives sales charges on each Fund's Class A shares, portions of which
are reallowed to affiliated broker-dealers and non-affiliated
broker-dealers. ACS also receives the proceeds of contingent deferred sales
charges paid by investors in connection with certain redemptions of Class A,
Class B and Class C shares. ACS has advised the Funds that For the period
ended September 30, 2015, the proceeds received from Class A sales (and paid
out to affiliated and non-affiliated broker-dealers) and Class A, Class B
and Class C redemptions were as follows:
CLASS A CLASS B CLASS C
---------------------------------------------------- ------------- -------------
CONTINGENT CONTINGENT CONTINGENT
SALES AFFILIATED NON-AFFILIATED DEFERRED DEFERRED DEFERRED
FUND CHARGES BROKER-DEALERS BROKER-DEALERS SALES CHARGES SALES CHARGES SALES CHARGES
---- -------- -------------- -------------- ------------- ------------- -------------
Flexible Credit............ $270,101 $ 60,335 $182,636 $3,481 $ -- $6,664
Strategic Bond............. 132,314 110,719 21,595 3,753 44,014 6,563
U.S. Government Securities. 28,963 10,364 13,825 4,171 -- 261
76
SUNAMERICA INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
The Trust has entered into a Service Agreement with SunAmerica Fund
Services, Inc. ("SAFS"), an affiliate of the Adviser. Under the Service
Agreement, SAFS performs certain shareholder account functions by assisting
the Funds' transfer agent in connection with the services that it offers to
the shareholders of the Funds. The Service Agreement permits the Funds to
compensate SAFS for services rendered, based upon an annual rate of 0.22% of
average daily net assets, which is approved annually by the Trustees. For
the period ended September 30, 2015, the Funds incurred the following
expenses which are included in transfer agent fees and expenses in the
Statements of Operations to compensate SAFS pursuant to the terms of the
Service Agreement:
PAYABLE AT
FUND EXPENSES SEPTEMBER 30, 2015
---- -------- ------------------
US Government Securities Class A. $187,121 $28,808
US Government Securities Class C. 25,789 4,837
Strategic Bond Class A........... 231,531 34,800
Strategic Bond Class B........... 40,464 6,143
Strategic Bond Class C........... 193,498 29,849
Strategic Bond Class W........... 33,180 5,894
Flexible Credit Class A.......... 129,239 19,505
Flexible Credit Class C.......... 61,748 11,667
Flexible Credit Class W.......... 54,074 11,408
At September 30, 2015, Focused Balanced Strategy Portfolio and Focused
Multi-Asset Strategy Portfolio, each a series of SunAmerica Series, Inc.,
and shares held through Pershing LLC, in a brokerage account sweep vehicle
for customers of the broker-dealers within Advisor Group, Inc., an affiliate
of the Adviser, owned a percentage of the outstanding shares of the
following Funds:
FUND HOLDER PERCENTAGE
--------------------------- --------------------------------------- ----------
U.S. Government Securities Focused Balanced Strategy Portfolio 6%
Focused Multi-Asset Strategy Portfolio 7
Pershing LLC 21
Strategic Bond Pershing LLC 14
Flexible Credit Pershing LLC 9
Note 5. Purchases and Sales of Investment Securities
The cost of purchases and proceeds from sales and maturities of long-term
investments during the year ended September 30, 2015 were as follows:
U.S. GOVERNMENT STRATEGIC FLEXIBLE
SECURITIES BOND CREDIT
FUND FUND FUND
- --------------- ------------ ------------
Purchases (excluding U.S. government securities). $ -- $169,407,732 $134,239,036
Sales (excluding U.S. government securities)..... -- 233,235,908 66,484,435
Purchases of U.S. government securities.......... 26,608,275 74,277,530 --
Sales of U.S. government securities.............. 16,917,304 43,815,867 --
77
SUNAMERICA INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
Note 6. Federal Income Taxes
The following details the tax basis of distributions as well as the
components of distributable earnings. The tax basis components of
distributable earnings differ from the amounts reflected in the Statements
of Assets and Liabilities by temporary book/tax differences primarily
arising from wash sales, post October capital losses, distributions payable,
deferred compensation plans, amortization of premium/discount and treatment
of defaulted securities.
DISTRIBUTABLE EARNINGS TAX DISTRIBUTIONS
FOR THE YEAR ENDED MARCH 31, 2015 FOR THE YEAR ENDED MARCH 31, 2015
---------------------------------------- ---------------------------------
LONG-TERM UNREALIZED
ORDINARY GAINS/CAPITAL APPRECIATION ORDINARY LONG-TERM
FUND INCOME LOSS CARRYOVER (DEPRECIATION)* INCOME CAPITAL GAINS
---- ---------- -------------- --------------- ----------- -------------
U.S. Government Securities.... $ 373,084 $(10,814,287) $ 8,230,993 $ 2,515,565 $--
Strategic Bond................ 4,680,328 (49,688,392) (11,120,757) 17,254,839 --
Flexible Credit............... 1,074,645 (55,582,920) (3,175,773) 5,820,730 --
--------
* Unrealized appreciation (depreciation) includes amounts for derivatives and
other assets and liabilities denominated in foreign currency.
As of March 31, 2015, for Federal income tax purposes, the Funds indicated
below have capital loss carryforwards, which expire in the year indicated,
which are available to offset future capital gains, if any:
CAPITAL LOSS CARRYFORWARD+ UNLIMITED+
--------------------------------- ---------------------
FUND 2016 2017 2018 ST LT
---- ---------- ---------- ----------- ---------- ----------
U.S. Government Securities............. $ -- $ -- $ -- $8,664,573 $2,149,714
Strategic Bond......................... -- -- 49,688,392 -- --
Flexible Credit........................ 1,874,057 9,384,737 41,322,811 84,473 2,916,842
--------
+ On December 22, 2010, the Regulated Investment Company Modernization Act of
2010 (the "Act") was enacted which changes various technical rules governing
the tax treatment of regulated investment companies. The changes are
generally effective taxable years beginning after the date of enactment.
Under the Act, the fund will be permitted to carry forward capital losses
incurred in taxable years beginning after the date of enactment for an
unlimited period. However, any losses incurred during those future taxable
years will be required to be utilized prior to the losses incurred in
pre-enactment taxable years, which carry an expiration date. As a result of
this ordering rule, pre-enactment capital loss carryforwards may be more
likely to expire unused. Additionally, post-enactment capital losses that
are carried forward will retain their character as either short-term or
long-term losses rather than being considered all short-term as under
previous law.
Under the current law, capital losses realized after October 31 and late
year ordinary losses may be deferred and treated as occurring on the first
day of the following year. For the fiscal year ended March 31, 2015, the
Funds elected to defer late year ordinary losses and post October capital
losses as follows:
DEFERRED DEFERRED
DEFERRED POST-OCTOBER POST-OCTOBER
LATE YEAR SHORT-TERM LONG-TERM
FUND ORDINARY LOSS CAPITAL LOSS CAPITAL LOSS
---- ------------- ------------ ------------
U.S. Government Securities............. $-- $ -- $ --
Strategic Bond......................... -- (8,796) 5,466,959
Flexible Credit........................ -- 375,551 2,021,242
The amounts of aggregate unrealized gain (loss) and the cost of investment
securities for federal tax purposes, including short-term securities and
repurchase agreements, were as follows:
AGGREGATE AGGREGATE
UNREALIZED UNREALIZED GAIN/(LOSS) COST OF
GAIN LOSS NET INVESTMENTS
---------- ------------ ------------ ------------
U.S. Government Securities Fund.. $6,954,431 $ (1,416,911) $ 5,537,520 $189,782,355
Strategic Bond Fund.............. 3,654,100 (31,331,615) (27,677,515) 437,956,367
Flexible Credit Bond Fund........ 1,100,753 (12,282,278) (11,181,525) 249,576,714
78
SUNAMERICA INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
Note 7. Capital Share Transactions
Transactions in capital shares of each class of each Fund were as follows:
U.S. GOVERNMENT SECURITIES FUND
----------------------------------------------------------------------------
CLASS A CLASS B
-------------------------------------------------- ------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
SEPTEMBER 30, 2015 YEAR ENDED PERIOD ENDED
(UNAUDITED) MARCH 31, 2015 JANUARY 27, 2015+
------------------------ ------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------ ---------- ------------
Shares
sold(1)(2).... 1,058,592 $ 10,144,944 3,831,245 $ 36,906,014 63,229 $ 605,716
Shares
issued
in
merger#....... -- -- 10,077,104 97,317,280 945,859 9,136,498
Reinvested
dividends..... 139,706 1,340,910 213,308 2,057,492 3,369 32,429
Shares
redeemed(1)(2) (3,124,145) (30,026,426) (6,175,600) (59,297,986) (1,384,324) (13,444,429)
---------- ------------ ---------- ------------ ---------- ------------ - -
Net
increase
(decrease).... (1,925,847) $(18,540,572) 7,946,057 $ 76,982,800 (371,867) $ (3,669,786)
========== ============ ========== ============ ========== ============ = =
U.S. GOVERNMENT SECURITIES FUND
---------------------------------------------
CLASS C
---------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
SEPTEMBER 30, 2015 YEAR ENDED
(UNAUDITED) MARCH 31, 2015
--------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- --------- -----------
Shares sold................ 700,043 $ 6,693,102 352,307 $ 3,393,240
Shares issued in merger#... -- -- 1,956,484 18,879,830
Reinvested dividends....... 11,352 108,909 13,622 131,560
Shares redeemed............ (309,456) (2,973,355) (627,961) (6,060,572)
-------- ----------- --------- -----------
Net increase (decrease).... 401,939 $ 3,828,656 1,694,452 $16,344,058
======== =========== ========= ===========
STRATEGIC BOND
-------------------------------------------------------------------------------------------------------
CLASS A CLASS B
---------------------------------------------------- -------------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE
SEPTEMBER 30, 2015 YEAR ENDED SEPTEMBER 30, 2015 YEAR ENDED
(UNAUDITED) MARCH 31, 2015 (UNAUDITED) MARCH 31, 2015
------------------------- ------------------------- ----------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- ------------ ---------- ----------- ---------- ------------
Shares sold(3)(4)... 7,399,433 $ 25,110,397 19,143,787 $ 67,456,885 372,428 $ 1,268,881 1,352,463 $ 4,771,995
Reinvested dividends 1,033,426 3,525,147 2,285,858 8,067,498 134,468 458,347 301,291 1,063,953
Shares
redeemed(3)(4)..... (19,664,503) (67,183,848) (26,532,888) (92,825,598) (1,738,366) (5,954,096) (3,429,949) (12,094,118)
----------- ------------ ----------- ------------ ---------- ----------- ---------- ------------
Net increase
(decrease)......... (11,231,644) $(38,548,304) (5,103,243) $(17,301,215) (1,231,470) $(4,226,868) (1,776,195) $ (6,258,170)
=========== ============ =========== ============ ========== =========== ========== ============
STRATEGIC BOND
-------------------------------------------------------------------------------------------------------
CLASS C CLASS W
---------------------------------------------------- -------------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE PERIOD
SEPTEMBER 30, 2015 YEAR ENDED SEPTEMBER 30, 2015 JANUARY 29, 2015@
(UNAUDITED) MARCH 31, 2015 (UNAUDITED) THROUGH MARCH 31, 2015
------------------------- ------------------------- ----------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- ------------ ---------- ----------- ---------- ------------
Shares sold......... 1,676,605 $ 5,765,659 7,003,618 $ 24,755,006 7,490,636 $25,944,590 4,495,707 $ 15,562,006
Reinvested dividends 559,892 1,917,142 1,129,436 4,000,084 117,604 399,675 7,382 25,765
Shares redeemed..... (5,371,277) (18,439,343) (11,371,270) (40,177,422) (2,257,557) (7,668,345) (10,304) (35,885)
----------- ------------ ----------- ------------ ---------- ----------- ---------- ------------
Net increase
(decrease)......... (3,134,780) $(10,756,542) (3,238,216) $(11,422,332) 5,350,683 $18,675,920 4,492,785 $ 15,551,886
=========== ============ =========== ============ ========== =========== ========== ============
--------
(1)For the year ended March 31, 2015, includes automatic conversion of 21,005
shares of Class B shares in the amount of $201,042 to 21,009 shares of Class
A shares in the amount of $201,042.
(2)For the year ended March 31, 2015, includes the conversion of 593,059 shares
of Class B shares in the amount of $5,776,391 to 593,668 shares of Class A
shares in the amount of $5,776,391 relating to the conversion of Class B
shares on January 27, 2015.
(3)For the six months ended September 30, 2015, includes automatic conversion
of 141,069 shares of Class B shares in the amount of $479,908 to 141,069
shares of Class A shares in the amount of $479,908.
(4)For the year ended March 31, 2015, includes automatic conversion of 371,070
shares of Class B shares in the amount of $1,309,413 to 371,070 shares of
Class A shares in the amount of $1,309,413
+ See Note 1
# See Note 2
@ Commencement of operations.
79
SUNAMERICA INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
FLEXIBLE CREDIT FUND
------------------------------------------------------------------------------
CLASS A CLASS B
---------------------------------------------------- ------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
SEPTEMBER 30, 2015 YEAR ENDED PERIOD ENDED
(UNAUDITED) MARCH 31, 2015 JANUARY 27, 2015+
------------------------- ------------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- ------------ ---------- ------------
Shares
sold(1)(2).... 12,875,295 $ 44,340,499 28,174,315 $ 97,646,255 410,799 $ 1,457,988
Reinvested
dividends..... 574,240 1,969,106 831,116 2,923,018 71,262 253,385
Shares
redeemed(1)(2) (15,750,172) (54,415,655) (11,868,733) (41,693,769) (4,132,646) (14,417,561)
----------- ------------ ----------- ------------ ---------- ------------
Net
increase
(decrease).... (2,300,637) $ (8,106,050) 17,136,698 $ 58,875,504 (3,650,585) $(12,706,188)
=========== ============ =========== ============ ========== ============
FLEXIBLE CREDIT FUND
-------------------------------------------------------------------------------------------------------
CLASS C CLASS W
---------------------------------------------------- -------------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE PERIOD
SEPTEMBER 30, 2015 YEAR ENDED SEPTEMBER 30, 2015 OCTOBER 1, 2014@
(UNAUDITED) MARCH 31, 2015 (UNAUDITED) THROUGH MARCH 31, 2015
------------------------- ------------------------- ------------------------ -----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- ------------ ---------- ------------ ---------- -----------
Shares
sold.......... 7,439,060 $ 25,772,987 6,133,326 $ 21,431,596 19,549,521 $ 67,747,919 5,079,276 $17,617,248
Reinvested
dividends..... 201,462 693,927 274,366 971,877 135,081 462,568 48,605 168,265
Shares
redeemed...... (1,410,597) (4,846,972) (1,839,787) (6,483,464) (4,139,909) (14,134,246) (1,195,835) (4,147,014)
----------- ------------ ----------- ------------ ---------- ------------ ---------- -----------
Net
increase
(decrease).... 6,229,925 $ 21,619,942 4,567,905 $ 15,920,009 15,544,693 $ 54,076,241 3,932,046 $13,638,499
=========== ============ =========== ============ ========== ============ ========== ===========
--------
(1)For the year ended March 31, 2015, includes automatic conversion of 162,884
shares of Class B shares in the amount of $574,439 to 163,300 shares of
Class A shares in the amount of $574,439.
(2)For the year ended March 31, 2015, includes the conversion of 469,743 shares
of Class B shares in the amount of $1,611,218 to 471,116 shares of Class A
shares in the amount of $1,611,218 relating to the conversion of Class B
shares on January 27, 2015.
@ Commencement of Operations.
+ See Note 1
Note 8. Line of Credit
The Trust, along with certain other funds managed by the Adviser, has access
to a $75 million committed unsecured line of credit and a $50 million
uncommitted unsecured line of credit. The committed and uncommitted lines of
credit are renewable on an annual basis with State Street Bank and Trust
Company, the Trust's custodian. Interest is currently payable on the
committed line of credit at the higher of the Federal Funds Rate (but not
less than zero) plus 125 basis points or the One-Month London Interbank
Offered Rate (but not less than zero) plus 125 basis points and State Street
Bank and Trust Company's discretionary bid rate on the uncommitted line of
credit. There is also a commitment fee of 20 basis points per annum on the
daily unused portion of the committed line of credit and a one-time closing
fee of 5 basis points on the uncommitted line of credit. Borrowings under
the line of credit will commence when the respective Fund's cash shortfall
exceeds $100,000.
For the six months ended September 30, 2015, the following Fund had
borrowings:
AVERAGE WEIGHTED
DAYS INTEREST DEBT AVERAGE
FUND OUTSTANDING CHARGES UTILIZED INTEREST
---- ----------- -------- --------- --------
Flexible Credit. 17 $1,015 1,537,562 1.40%
At September 30, 2015, there were no borrowings outstanding.
Note 9. Interfund Lending Agreement
Pursuant to the exemptive relief granted by the Securities and Exchange
Commission, the Funds are permitted to participate in an interfund lending
program among investment companies advised by SunAmerica or an affiliate.
The interfund lending program allows the participating Funds to borrow money
from and lend money to each other for temporary or emergency purposes. An
interfund loan will be made under this facility only if the participating
Funds receive a more favorable interest rate than would otherwise be
available from a typical bank for a comparable transaction. For the period
ended September 30, 2015, none of the Funds participated in this program.
80
SUNAMERICA INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS -- SEPTEMBER 30, 2015 -- (UNAUDITED)
(CONTINUED)
Note 10. Trustees' Retirement Plan
The Board has adopted the SunAmerica Disinterested Trustees' and Directors'
Retirement Plan (the "Retirement Plan") effective January 1, 1993, as
amended, for the Disinterested Trustees. The Retirement Plan provides
generally that a Disinterested Trustees may become a participant
("Participant") in the Retirement Plan if he or she has at least 10 years of
consecutive service as a Disinterested Trustee of any of the adopting
SunAmerica mutual funds (the "Adopting Funds") or has attained the age of 60
while a Trustee and completed five (5) consecutive years of service as a
Trustee of any Adopting Fund (an "Eligible Trustee/Director"). Pursuant to
the Retirement Plan, an Eligible Trustee may receive benefits upon (i) his
or her death or disability while a Trustee or (ii) the termination of his or
her tenure as a Trustee, other than removal for cause from each of the
Adopting Funds with respect to which he or she is an Eligible Trustee.
As of each of the first 10 birthdays after becoming a Participant and on
which he or she is both a Trustee and Participant, each Eligible Trustee
will be credited with an amount equal to 50% of his or her regular fees
(excluding committee fees) for services as a Disinterested Trustee of each
Adopting Fund for the calendar year in which such birthday occurs. In
addition, an amount equal to 8.50% of any amounts credited under the
preceding statement during prior years is added to each Eligible Trustee's
account. The rights of any Participant to benefits under the Retirement Plan
shall be an unsecured claim against the assets of the Adopting Funds. An
Eligible Trustee may receive any benefits payable under the Retirement Plan,
at his or her election, either in one lump sum or in up to 15 annual
installments. Any undistributed amounts shall continue to accrue interest at
8.50%.
Effective December 3, 2008, the Retirement Plan was amended to, among other
things, (1) freeze the Retirement Plan as to future accruals for active
Participants as of December 31, 2008, (2) prohibit Disinterested Trustees
from first becoming participants in the Retirement Plan after December 31,
2008 and (3) permit active Participants to elect to receive a distribution
of their entire Retirement Plan account balance in 2009. The freeze on
future accruals does not apply to Participants that have commenced receiving
benefits under the Retirement Plan on or before December 31, 2008.
The following amounts for the Retirement Plan Liabilities are included in
the Trustees' fees and expenses payable line on the Statements of Assets and
Liabilities and the amounts for the Retirement Plan Expenses are included in
the Trustees' fees and expenses line on the Statements of Operations.
AS OF SEPTEMBER 30, 2015
- -----------------------------------------------
RETIREMENT PLAN RETIREMENT PLAN RETIREMENT PLAN
FUND LIABILITY EXPENSE PAYMENTS
---- --------------- --------------- ---------------
U.S. Government Securities............. $-- $-- $110
Strategic Bond......................... -- -- 51
Flexible Credit........................ -- -- 31
Note 11. Investment Concentration Note
The Flexible Credit Fund's investment in high yield securities, whether
rated or unrated, may be considered speculative and subject to greater
market fluctuations and risk of loss of income and principal than
lower-yielding, higher-rated, fixed-income securities. The risk of loss due
to default by the issuer may be significantly greater for the holders of
high yield securities, because such securities are generally unsecured and
are often subordinated to other creditors of the issuer.
The Flexible Credit Fund and Strategic Bond Fund invest in participations
and assignments, or act as a party to the primary lending syndicate of a
variable rate senior loan interest to United States corporations,
partnerships, and other entities. If the lead lender in a typical lending
syndicate becomes insolvent, enters receivership or, if not FDIC insured,
enters into bankruptcy, a Fund may incur certain costs and delays in
receiving payment, or may suffer a loss of principal and/or interest. When a
Fund purchases a participation of a senior loan interest, the Fund typically
enters into a contractual agreement with the lender or other third party
selling the participation but not with the borrower directly. As such, a
Fund is subject to the credit risk of the borrower, selling participant,
lender or other persons positioned between the Funds and the borrower.
Each Fund may invest in obligations issued by agencies and instrumentalities
of the U.S. Government that may vary in the level of support they receive
from the government. The government may choose not to provide financial
support to government sponsored agencies or instrumentalities if it is not
legally obligated to do so, and if the issuer defaulted, a fund holding
securities of such issuer might not be able to recover its investment from
the U.S. Government. As a result of the U.S. Government Fund's concentration
in such investments, it may be subject to risks associated with U.S.
Government agencies or instrumentalities.
81
[LOGO]
HARBORSIDE FINANCIAL CENTER
3200 PLAZA 5
JERSEY CITY, NJ 07311-4992
TRUSTEES VOTING PROXIES ON DISCLOSURE OF
Richard W. Grant TRUST PORTFOLIO QUARTERLY PORTFOLIO
Peter A. Harbeck SECURITIES HOLDINGS
Dr. Judith L. Craven A description of the The Trust is required
William F. Devin policies and to file its com-plete
Stephen J. Gutman proce-dures that the schedule of portfolio
William J. Shea Trust uses to holdings with the U.S.
OFFICERS determine how to vote Securities and
John T. Genoy, President proxies relating to Exchange Commission
James Nichols, Vice secu-rities held in a for its first and
President Fund's portfolio, third fiscal quarters
Katherine Stoner, Vice which is available in on Form N-Q. The
President and Chief the Trust's Statement Trust's Forms N-Q are
Compliance Officer of Additional available on the
Gregory N. Bressler, Information, may be U.S. Securities and
Secretary ob-tained without Exchange Commis-sion
Kathleen Fuentes, Vice charge upon request, website at
President, Chief Legal by calling (800) www.sec.gov. You can
Officer and Secretary 858-8850. The also review and obtain
Gregory R. Kingston, in-formation is also copies of the Forms
Treasurer available from the N-Q at the U.S.
Donna McManus, Vice EDGAR database on the Securities and
President and U.S. Secu-rities and Exchange Commission
Assistant Treasurer Exchange Commission's Public Refer-ence Room
Shawn Parry, Vice website at in Washington DC
President and http://www.sec.gov. (information on the
Assistant Treasurer DELIVERY OF operation of the
Matthew J. Hackethal, SHAREHOLDER DOCUMENTS Public Reference Room
Anti-Money Laundering The Funds have adopted may be ob-tained by
Compliance Officer a policy that allows calling
INVESTMENT ADVISER them to send only one 1-800-SEC-0330).
SunAmerica Asset copy of a Fund's PROXY VOTING RECORD ON
Management, LLC prospectus, proxy SUNAMERICA INCOME FUNDS
Harborside Financial material, annual Information regarding
Center report and semi-annual how the Funds voted
3200 Plaza 5 report (the proxies relating to
Jersey City, NJ "shareholder securities held in the
07311-4992 documents") to Funds during the most
DISTRIBUTOR shareholders with recent twelve month
AIG Capital Services, multiple accounts period ended June 30
Inc. residing at the same is available, once
Harborside Financial "household." This filed with the U.S.
Center practice is called Securities and
3200 Plaza 5 householding and Exchange Commission,
Jersey City, NJ reduces Fund expenses, without charge, upon
07311-4992 which benefits you and request, by call-ing
SHAREHOLDER SERVICING other shareholders. (800) 858-8850 or on
AGENT Unless the Funds the U.S. Securities
SunAmerica Fund receive instructions and Exchange
Services, Inc. to the con-trary, you Commission's website
Harborside Financial will only receive one at http://www.sec.gov.
Center copy of the This report is
3200 Plaza 5 shareholder documents. submitted solely for
Jersey City, NJ The Funds will the general
07311-4992 continue to household information of
CUSTODIAN AND TRANSFER the share-holder shareholders of the
AGENT documents Funds. Distribution of
State Street Bank and indefinitely, until we this report to persons
Trust Company are instructed other than
P.O. Box 5607 otherwise. If you do shareholders of the
Boston, MA 02110 not wish to Funds is authorized
participate in only in con-nection
householding please with a currently
contact Shareholder effective pro-spectus,
Services at (800) setting forth details
858-8850 ext. 6010 or of the Funds, which
send a written request must precede or
with your name, the accom-pany this report.
name of your fund(s) The accompanying
and your account report has not been
number(s) to audited by independent
SunAmerica Mutual accountants and
Funds c/o BFDS, P.O. accordingly no
Box 219186, Kansas opinions have been
City MO, 64121-9186. expressed thereon.
We will resume
individual mailings
for your account
within thirty (30)
days of receipt of
your request.
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.SAFUNDS.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.safunds.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:
AIG CAPITAL SERVICES, INC.
This fund report must be preceded by or accompanied by a prospectus.
Investors should carefully consider a Fund's investment objectives, risks,
charges and expenses before investing. The prospectus, containing this and
other important information, can be obtained from your financial adviser, the
SunAmerica Sales Desk at 800-858-8850, ext. 6003, or at www.safunds.com. Read
the prospectus carefully before investing.
WWW.SAFUNDS.COM
INSAN - 9/15
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AIG
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 Trustees that were
implemented after the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR
229.407) (as required by 22(b)(15)) of Schedule 14A (17 CFR 240.14a-
101), or this Item 10.
Item 11. Controls and Procedures.
(a) An evaluation was performed within 90 days of the filing of this
report, under the supervision and with the participation of the
registrant's management, including the President and Treasurer, of the
effectiveness of the design and operation of the registrant's
disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940 (17 CFR 270.30a-3(c))). Based
on that evaluation, the registrant's management, including the
President and Treasurer, concluded that the registrant's disclosure
controls and procedures are effective.
(b) There was no change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act
of 1940 (17 CFR 270.30a-3(d))) that occurred during the registrant's
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 Income Funds
By: /s/ John T. Genoy
-----------------------
John T. Genoy
President
Date: December 8, 2015
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ John T. Genoy
-----------------------
John T. Genoy
President
Date: December 8, 2015
By: /s/ Gregory R. Kingston
-----------------------
Gregory R. Kingston
Treasurer
Date: December 8, 2015