================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM N-CSR
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-08727
SunAmerica Senior Floating Rate Fund, Inc.
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(Exact name of registrant as specified in charter)
Harborside Financial Center, 3200 Plaza 5, Jersey City, NJ 07311
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(Address of principal executive offices) (Zip code)
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: December 31
Date of reporting period: December 31, 2015
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Item 1. Reports to Stockholders
[GRAPHIC]
ANNUAL REPORT 2015
SUNAMERICA
Senior Floating Rate Fund
[LOGO]
TABLE OF CONTENTS
SHAREHOLDERS' LETTER........................................ 2
EXPENSE EXAMPLE............................................. 4
STATEMENT OF ASSETS AND LIABILITIES......................... 6
STATEMENT OF OPERATIONS..................................... 7
STATEMENT OF CHANGES IN NET ASSETS.......................... 8
FINANCIAL HIGHLIGHTS........................................ 9
PORTFOLIO OF INVESTMENTS.................................... 10
NOTES TO FINANCIAL STATEMENTS............................... 20
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM..... 31
DIRECTORS AND OFFICERS INFORMATION.......................... 32
SHAREHOLDER TAX INFORMATION................................. 35
COMPARISON: FUND VS. INDEX.................................. 36
DECEMBER 31, 2015 ANNUAL REPORT
SHAREHOLDERS' LETTER -- (unaudited)
Dear Shareholders:
We are pleased to present this annual report for the SunAmerica Senior Floating
Rate Fund, Inc. (the "Fund") for the 12 months ended December 31, 2015.
Overall, 2015 was a volatile year for risk assets. The S&P 500 Index/1/, a
measure of the broad U.S. equity market, ended the year with a 1.38% return,
while the Barclays U.S. Aggregate Bond Index/2/, a measure of the broad U.S.
fixed income market, returned 0.55% for the same period. In the first quarter
of 2015, many central banks eased monetary policy, with some resorting to
radical measures to counter falling inflation and stimulate economic growth.
Economic growth in the major developed markets stabilized during the second
calendar quarter, while emerging markets continued to languish, driven by a
slowdown in Asia. For example, in the Eurozone, the Greek debt crisis muddied
the outlook at the time. However, economic data in the region improved, and
European Central Bank (ECB) President Draghi stated the central bank would
continue to implement its stimulus measures. Though market concerns about
Greece receded in the third quarter of 2015 following a resolution with its
creditors, risk aversion across the global capital markets intensified in
August after the surprise change in China's foreign exchange policy. The
devaluation of the Chinese renminbi, along with softer oil prices, reignited
worries about global economic growth and disinflationary pressures, leading to
a significant rise in market volatility. Equities and commodities were hit the
hardest. Still, economic data on developed markets was generally positive.
Further, data released during the fourth calendar quarter indicated that the
U.S. economy was still on solid footing, with the domestic side of the economy
offsetting weakness from abroad. Consumer fundamentals firmed as real incomes
grew at a solid pace; the unemployment rate edged lower; and sentiment remained
positive. Housing market releases were mixed but still indicative of underlying
strength in the sector. Core inflation steadily inched higher, which gave the
Federal Reserve (the "Fed") confidence to raise its targeted federal funds rate
in December 2015. This widely anticipated rate hike marked an end to a
seven-year period of near-zero interest rates.
Amidst this backdrop, floating rate loans, as represented by the S&P/LSTA
Leveraged Loan Index (LLI),/3/ returned -0.69% during the annual period ended
December 31, 2015, underperforming the broad U.S. fixed income market.
Credit quality degraded slightly in 2015 with the entry of some lower quality
first-time issuers. However, the overall underlying credit fundamentals of bank
loan issuers remained stable. For example, the default rate for bank loans,
examined by principal amount, ended the annual period at 1.69%, down from 3.24%
at the end of 2014 and virtually on par with the 1.67% rate at the end of
2013./4/
The sector's technicals, or supply and demand factors, were generally favorable
during the annual period. Bank loan mutual funds experienced withdrawals
totaling net outflows of $22.2 billion in 2015./5/ It is worth noting that
bank-loan spreads, or yield differentials to U.S. Treasuries, were at
historically high levels at the end of 2015. Despite these retail mutual fund
outflows, issuance of collateralized loan obligations (CLOs), one of the main
sources of demand for bank loans, more than offset the weakness in retail
demand, with total issuance of $97.3 billion in 2015. In terms of quality, as
measured by the LLI, higher quality loans outperformed their lower quality
counterparts. For the annual period ended December 31, 2015, loans rated CCC
returned -8.43%, while loans rated BB returned 2.23%.
Industry performance within the LLI was mixed during the annual period.
Although the majority of industries posted positive returns, there were a few
that dragged LLI returns into negative territory. Oil and gas (-29.42%), metals
and minerals (-24.23%) and forest products (-21.57%) were the weakest
performing industries during the annual period. The strongest performing
industries were cosmetics/toiletries (5.74%), home furnishings (5.52%) and food
and drug (5.02%).
2
DECEMBER 31, 2015 ANNUAL REPORT
SHAREHOLDERS' LETTER -- (unaudited)(continued)
On the following pages, you will find detailed financial statements and
portfolio information for the Fund for the annual period ended December 31,
2015. You will also find a brief discussion regarding the Fund's annual results.
As always, we remain diligent in the management of your assets. If you have any
questions, or require additional information on this or other SunAmerica Funds,
you may contact your financial advisor or visit www.safunds.com. We value your
ongoing confidence in us and look forward to serving your investment needs in
the future.
Sincerely,
THE SUNAMERICA SENIOR FLOATING RATE FUND PORTFOLIO MANAGER
Jeffrey W. Heuer
Wellington Management Company LLP
--------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
/1/ The S&P 500 Index is Standard & Poor's 500 Composite Stock Price Index, a
widely recognized, unmanaged index of U.S. common stock prices.
/2/ The Barclays U.S. Aggregate Bond Index represents securities that are U.S.
domestic, taxable and dollar denominated. The index covers components for
government and corporate securities, mortgage pass-through securities and
asset-backed securities.
/3/ The S&P/LSTA Leveraged Loan Index (LLI) reflects the market-weighted
performance of U.S. dollar-denominated institutional leveraged loan portfolios.
The LLI is the only domestic leveraged loan index that utilizes real-time
market weightings, spreads and interest payments.
Indices are not managed and an investor cannot invest directly into an index.
/4/ Source: S&P Leveraged Commentary & Data.
/5/ Source: Lipper, Inc.
The Fund is not a money market fund and its net asset value may fluctuate.
Investments in loans involve certain risks including nonpayment of principal
and interest; collateral impairment; non-diversification and borrower industry
concentration; and lack of an active trading market, in certain cases, which
may impair the Fund's ability to obtain full value for loans sold. The Fund may
invest all or substantially all of its assets in loans or other securities
(e.g., unsecured loans or high yield securities) that are rated below
investment grade, or in comparable unrated securities. Credit risks include the
possibility of a default on the loan or bankruptcy of the borrower. The value
of these loans is subject to a greater degree of volatility in response to
interest rate fluctuations.
3
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
EXPENSE EXAMPLE -- DECEMBER 31, 2015 -- (UNAUDITED)
DISCLOSURE OF PORTFOLIO EXPENSES IN SHAREHOLDER REPORTS
As a shareholder of the SunAmerica Senior Floating Rate Fund, Inc. (the
"Fund"), you may incur two types of costs: (1) transaction costs, including
sales charges on purchase payments and contingent deferred sales charges and
(2) ongoing costs, including management fees, distribution and account
maintenance fees, and other Fund expenses. The example set forth below is
intended to help you understand your ongoing costs (in dollars) of investing in
the Fund and to compare these costs with the ongoing costs of investing in
other mutual funds. The Example is based on an investment of $1,000 invested at
July 1, 2015 and held until December 31, 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 December 31, 2015" to estimate the expenses you paid on your
account during this period. The "Expenses Paid During the Six Months Ended
December 31, 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 December 31, 2015" column and the "Annualized
Expense Ratio" column do not include administrative or other fees that may
apply to qualified retirement plan accounts and accounts held through financial
institutions. See the Fund's prospectus, your retirement plan documents and/or
materials from your financial adviser, for a full description of these fees.
Had these fees been included, the "Expenses Paid During the Six Months Ended
December 31, 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 the 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 this Fund 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 December 31, 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 December 31, 2015" column and the "Annualized Expense Ratio"
column do not include administrative or other fees that may apply to qualified
retirement plan accounts and accounts held through financial institutions. See
the Fund's prospectus, your retirement plan document and/or materials from your
financial adviser for full description of these fees. Had these fees been
included, the "Expenses Paid During the Six Months Ended December 31, 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 and
administrative fees, if applicable to your account. Please refer to the Fund's
prospectus, qualified retirement plan document and/or materials from your
financial adviser, for more information. Therefore, the "Hypothetical" example
is useful in comparing ongoing costs only and will not help you determine the
relative total costs of owning different funds. In addition, if these
transaction costs and other fees were included, your costs would have been
higher.
4
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
EXPENSE EXAMPLE -- DECEMBER 31, 2015 -- (UNAUDITED) (CONTINUED)
ACTUAL HYPOTHETICAL
---------------------------------------------------- ----------------------------------------------------
ENDING ENDING ACCOUNT
ACCOUNT VALUE EXPENSES PAID VALUE USING EXPENSES PAID
BEGINNING USING ACTUAL DURING THE BEGINNING A HYPOTHETICAL 5% DURING THE
ACCOUNT VALUE RETURNS AT SIX MONTHS ENDED ACCOUNT VALUE ANNUAL RETURN AT SIX MONTHS ENDED
AT JULY 1, 2015 DECEMBER 31, 2015 DECEMBER 31, 2015* AT JULY 1, 2015 DECEMBER 31, 2015 DECEMBER 31, 2015*
--------------- ----------------- ------------------ --------------- ----------------- ------------------
Senior Floating
Rate Fund#
Class A.......... $1,000.00 $958.49 $7.16 $1,000.00 $1,017.90 $7.38
Class C.......... $1,000.00 $956.95 $8.63 $1,000.00 $1,016.38 $8.89
ANNUALIZED
EXPENSE
RATIO*
----------
Senior Floating
Rate Fund#
Class A.......... 1.45%
Class C.......... 1.75%
--------
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 184 days then divided
by 365 days (to reflect the one-half year period). These ratios do not
reflect transaction costs, including sales charges on purchase payments,
contingent deferred sales charges, small account fees and administrative
fees, if applicable to your account. Please refer to your Prospectus, your
qualified retirement plan document and/or materials from your financial
advisor for more information.
# During the stated period, the investment adviser either waived a portion of
or all of the fees and assumed a portion of or all expenses for the Fund. As
a result, if these fees and expenses had not been waived or assumed, the
"Actual/Hypothetical Ending Account Value" would have been lower and the
"Actual/Hypothetical Expenses Paid During the Six Months Ended December 31,
2015" and the "Annualized Expense Ratio" would have been higher.
5
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES -- DECEMBER 31, 2015
ASSETS:
Investments at value (unaffiliated)*............................................ $ 279,617,762
Repurchase agreements (cost approximates value)................................. 4,920,000
-------------
Total investments.............................................................. 284,537,762
-------------
Cash............................................................................ 18,656
Receivable for:
Fund shares sold............................................................... 380,998
Dividends and interest......................................................... 2,267,366
Investments sold............................................................... 10,475,914
Prepaid expenses and other assets............................................... 3,766
Due from investment adviser for expense reimbursements/fee waivers.............. 93,817
Unrealized appreciation on forward foreign currency contracts................... 3,428
-------------
Total assets................................................................... 297,781,707
-------------
LIABILITIES:
Payable for:
Fund shares redeemed........................................................... 1,622,197
Investments purchased.......................................................... 8,424,250
Investment advisory and management fees........................................ 213,701
Distribution and account maintenance fees...................................... 147,540
Administration fees............................................................ 50,283
Transfer agent fees and expenses............................................... 60,203
Directors' fees and expenses................................................... 1,319
Other accrued expenses......................................................... 248,501
Dividends payable............................................................... 247,785
Commitments (Note 10)........................................................... 155,000
-------------
Total liabilities.............................................................. 11,170,779
-------------
Net Assets................................................................... $ 286,610,928
=============
NET ASSETS REPRESENTED BY:
Common stock, $.01 par value.................................................... $ 376,907
Additional paid-in capital...................................................... 374,640,662
-------------
375,017,569
Accumulated undistributed net investment income (loss).......................... (348,925)
Accumulated undistributed net realized gain (loss) on investments and foreign
exchange transactions.......................................................... (62,188,179)
Unrealized appreciation (depreciation) on investments........................... (25,872,965)
Unrealized foreign exchange gain (loss) on other assets and liabilities......... 3,428
-------------
Net Assets................................................................... $286,610,928..
=============
CLASS A:
Net assets...................................................................... $ 114,375,038
Shares outstanding.............................................................. 15,035,042
Net asset value and redemption price per share.................................. $ 7.61
Maximum sales charge (3.75% of offering price).................................. 0.30
-------------
Maximum offering price to public................................................ $ 7.91
=============
CLASS C:
Net assets...................................................................... $ 172,235,890
Shares outstanding.............................................................. 22,655,696
Net asset value, offering and redemption price per share (excluding any
applicable contingent deferred sales charges).................................. $ 7.60
=============
*COST
Investment securities (unaffiliated)........................................... $ 305,490,727
=============
See Notes to Financial Statements
6
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
STATEMENT OF OPERATIONS -- FOR THE YEAR ENDED DECEMBER 31, 2015
INVESTMENT INCOME:
Interest (unaffiliated)........................................................... $ 17,864,259
Dividends (unaffiliated).......................................................... 7,449
Facility and other fee income (Note 2)............................................ 1,012,249
------------
Total investment income........................................................ $ 18,883,957
------------
EXPENSES:
Investment advisory and management fees........................................... 2,872,701
Administration fees............................................................... 675,930
Distribution and account maintenance fees:
Class A......................................................................... 485,563
Class C......................................................................... 1,494,243
Transfer agent fees and expenses:
Class A......................................................................... 319,874
Class C......................................................................... 453,478
Registration fees:
Class A......................................................................... 26,458
Class C......................................................................... 41,790
Accounting service fees........................................................... 25,712
Custodian and accounting fees..................................................... 90,964
Reports to shareholders........................................................... 77,733
Audit and tax fees................................................................ 124,095
Legal fees........................................................................ 28,498
Directors' fees and expenses...................................................... 55,950
Interest expense.................................................................. 3,105
Other expenses.................................................................... 70,801
------------
Total expenses before fee waivers and expense reimbursements................... 6,846,895
Fees waived and expenses reimbursed by investment adviser (Note 5)............. (1,348,708)
------------
Net expenses................................................................... 5,498,187
------------
Net investment income (loss)...................................................... 13,385,770
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)............................ (5,296,791)
Net realized foreign exchange gain (loss) on other assets and liabilities......... 12,731
------------
Net realized gain (loss) on investments and foreign currencies.................... (5,284,060)
------------
Change in unrealized appreciation (depreciation) on investments (unaffiliated).... (12,456,034)
Change in unrealized foreign exchange gain (loss) on other assets and liabilities. 3,428
------------
Net unrealized gain (loss) on investments and foreign currencies.................. (12,452,606)
------------
Net realized and unrealized gain (loss) on investments and foreign currencies..... (17,736,666)
------------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $ (4,350,896)
============
See Notes to Financial Statements
7
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR FOR THE YEAR
ENDED ENDED
DECEMBER 31, DECEMBER 31,
2015 2014
------------ ------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income (loss)......................................... $ 13,385,770 $ 15,059,817
Net realized gain (loss) on investments and foreign currencies....... (5,284,060) (174,093)
Net unrealized gain (loss) on investments and foreign currencies..... (12,452,606) (14,110,473)
------------ ------------
Net Increase (decrease) in net assets resulting from operations....... (4,350,896) 775,251
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Class A)...................................... (5,793,773) (6,863,837)
Net investment income (Class C)...................................... (7,725,036) (8,185,035)
------------ ------------
Total distributions to shareholders................................... (13,518,809) (15,048,872)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS (NOTE 3)................................................ (63,659,281) (54,871,485)
------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS............................... (81,528,986) (69,145,106)
NET ASSETS:
Beginning of period................................................... 368,139,914 437,285,020
------------ ------------
End of period+........................................................ $286,610,928 $368,139,914
============ ============
+Includes accumulated undistributed net investment income (loss)...... $ (348,925) $ (228,577)
============ ============
See Notes to Financial Statements
8
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
FINANCIAL HIGHLIGHTS
NET GAIN
(LOSS) ON
NET INVESTMENTS DIVIDENDS NET NET RATIO OF
ASSET (BOTH DIVIDENDS FROM NET ASSET ASSETS, EXPENSES
VALUE, NET REALIZED TOTAL FROM FROM NET REALIZED TOTAL VALUE, END OF TO AVERAGE
PERIOD BEGINNING INVESTMENT AND INVESTMENT INVESTMENT GAINS ON DISTRI- END OF TOTAL PERIOD NET
ENDED OF PERIOD INCOME(1) UNREALIZED) OPERATIONS INCOME INVESTMENTS BUTIONS PERIOD RETURN(2) (000'S) ASSETS(3)
---------- --------- ---------- ----------- ---------- ---------- ----------- ------- ------ --------- -------- ----------
CLASS A
-------
12/31/11 $8.27 $0.36 $(0.33) $ 0.03 $(0.34) $ -- $(0.34) $7.96 0.36% $160,949 1.45%
12/31/12 7.96 0.36 0.31 0.67 (0.37) -- (0.37) 8.26 8.51 146,103 1.45
12/31/13 8.26 0.33 0.08 0.41 (0.33) -- (0.33) 8.34 5.08 195,309 1.45
12/31/14 8.34 0.31 (0.29) 0.02 (0.31) -- (0.31) 8.05 0.20 150,966 1.45
12/31/15 8.05 0.33 (0.44) (0.11) (0.33) -- (0.33) 7.61 (1.42) 114,375 1.45
CLASS C
-------
12/31/11 $8.26 $0.33 $(0.32) $ 0.01 $(0.32) $ -- $(0.32) $7.95 0.06% $198,778 1.75%
12/31/12 7.95 0.34 0.30 0.64 (0.34) -- (0.34) 8.25 8.20 197,480 1.75
12/31/13 8.25 0.30 0.10 0.40 (0.31) -- (0.31) 8.34 4.89 241,976 1.75
12/31/14 8.34 0.29 (0.30) (0.01) (0.28) -- (0.28) 8.05 (0.10) 217,174 1.75
12/31/15 8.05 0.31 (0.45) (0.14) (0.31) -- (0.31) 7.60 (1.85) 172,236 1.75
RATIO OF
NET
INVESTMENT
INCOME TO
PERIOD AVERAGE PORTFOLIO
ENDED NET ASSETS(3) TURNOVER
---------- ------------- ---------
12/31/11 4.27% 63%
12/31/12 4.41 61
12/31/13 3.98 84
12/31/14 3.73 65
12/31/15 4.14 48
12/31/11 4.02% 63%
12/31/12 4.12 61
12/31/13 3.68 84
12/31/14 3.44 65
12/31/15 3.84 48
--------
(1)Calculated based upon average shares outstanding.
(2)Total return does not reflect sales load but does include expense
reimbursements.
(3)Net of the following expense waivers and/or reimbursements, if applicable
(based on average daily net assets) (See Note 5):
12/31/11 12/31/12 12/31/13 12/31/14 12/31/15
-------- -------- -------- -------- --------
Class A............. 0.33% 0.35% 0.34% 0.32% 0.34%
Class C............. 0.44 0.44 0.43 0.41 0.44
See Notes to Financial Statements
9
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO PROFILE -- DECEMBER 31, 2015 -- (UNAUDITED)
INDUSTRY ALLOCATION*
Media....................................................... 7.9%
Health Care Providers & Services............................ 6.6
Hotels, Restaurants & Leisure............................... 6.4
Commercial Services & Supplies.............................. 5.3
Specialty Retail............................................ 4.9
Software.................................................... 4.7
IT Services................................................. 4.1
Food & Staples Retailing.................................... 4.0
Oil, Gas & Consumable Fuels................................. 3.7
Insurance................................................... 3.5
Diversified Telecommunication Services...................... 3.3
Food Products............................................... 3.0
Semiconductors & Semiconductor Equipment.................... 2.9
Pharmaceuticals............................................. 2.8
Containers & Packaging...................................... 2.7
Chemicals................................................... 2.6
Machinery................................................... 1.7
Repurchase Agreements....................................... 1.7
Real Estate Management & Development........................ 1.6
Energy Equipment & Services................................. 1.5
Diversified Financial Services.............................. 1.4
Health Care Equipment & Supplies............................ 1.4
Registered Investment Companies............................. 1.3
Capital Markets............................................. 1.2
Consumer Finance............................................ 1.2
Road & Rail................................................. 1.1
Building Products........................................... 1.1
Internet & Catalog Retail................................... 1.0
Industrial Conglomerates.................................... 1.0
Metals & Mining............................................. 1.0
Construction Materials...................................... 0.9
Multi Utilities............................................. 0.9
Wireless Telecommunication Services......................... 0.8
Health Care Technology...................................... 0.7
Life Sciences Tools & Services.............................. 0.7
Paper & Forest Products..................................... 0.7
Tech Hardware, Storage & Peripheral......................... 0.7
Real Estate Investment Trusts............................... 0.7
Industrial Power Producers & Energy Traders................. 0.6
Banks....................................................... 0.6
Multiline Retail............................................ 0.6
Auto Components............................................. 0.5
Biotechnology............................................... 0.5
Professional Services....................................... 0.5
Construction & Engineering.................................. 0.4
Leisure Equipment & Products................................ 0.4
Automobiles................................................. 0.4
Air Freight & Logistics..................................... 0.3
Thrifts & Mortgage Finance.................................. 0.3
Distributors................................................ 0.3
Internet Software & Services................................ 0.3
Aerospace & Defense......................................... 0.2
Electronic Equipment, Instruments & Components.............. 0.2
Gas Utilities............................................... 0.2
Personal Products........................................... 0.2
Communications Equipment.................................... 0.1
----
99.3%
====
CREDIT QUALITY+#
BBB......................................................... 1.1%
BBB-........................................................ 5.5
BB+......................................................... 4.2
BB.......................................................... 13.2
BB-......................................................... 16.2
B+.......................................................... 18.4
B .......................................................... 19.8
B-.......................................................... 9.5
CCC+........................................................ 7.2
CCC......................................................... 2.0
CCC-........................................................ 0.2
D........................................................... 0.6
Not Rated@ ................................................. 2.1
-----
100.0%
=====
--------
* Calculated as a percentage of net assets.
@ Represents debt issues that either have no rating, or the rating is
unavailable from the data source.
+ Source: Standard and Poor's
# Calculated as a percentage of total debt issues, excluding short-term
securities.
10
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2015
RATINGS/(1)/
(UNAUDITED)
------------
INTEREST MATURITY PRINCIPAL VALUE
INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT** (NOTE 2)
-------------------------------------------------------------------------------------------------------------------
LOANS(3)(4) -- 90.3%
AEROSPACE & DEFENSE -- 0.2%
Transdigm Group, Inc........................... BTL-C Ba3 B 3.75% 02/28/2020 $ 864,509 $ 843,015
-----------
AIR FREIGHT & LOGISTICS -- 0.3%
Air Medical Group Holdings LLC................. BTL-B B2 B 4.50 04/28/2022 995,000 958,308
-----------
AUTO COMPONENTS -- 0.5%
Affinia Group.................................. BTL-B2 B2 B 4.75 04/27/2020 798,319 797,819
MPG Holdco I, Inc.............................. BTL-B Ba3 BB+ 3.75 10/20/2021 704,890 687,015
-----------
1,484,834
-----------
AUTOMOBILES -- 0.4%
Chrysler Group LLC............................. BTL-B Ba1 BB+ 3.50 05/24/2017 1,078,231 1,073,625
-----------
BIOTECHNOLOGY -- 0.5%
Medpace, Inc................................... BTL B2 B+ 4.75 04/01/2021 1,427,547 1,415,650
-----------
BUILDING PRODUCTS -- 1.1%
Beacon Roofing Supply, Inc..................... BTL-B B2 BB+ 4.00 10/01/2022 1,112,213 1,106,187
Nortek, Inc.................................... BTL Ba3 BB- 3.50 10/30/2020 1,005,181 985,077
Summit Materials LLC........................... BTL B1 BB 4.25 07/17/2022 945,250 932,843
-----------
3,024,107
-----------
CAPITAL MARKETS -- 1.2%
AlixPartners LLC............................... BTL B2 B+ 4.50 07/28/2022 3,491,250 3,456,337
-----------
CHEMICALS -- 2.6%
Al Chem & Cy SCA............................... BTL-B B1 B+ 4.50 10/03/2019 490,873 489,031
Al Chem & Cy SCA............................... BTL-B1 B1 B+ 4.50 10/03/2019 254,690 253,735
Chemours Co.................................... BTL-B Ba1 BBB- 3.75 05/12/2022 462,675 422,769
Gates Global, Inc.............................. BTL B2 B+ 4.25 07/05/2021 1,651,469 1,545,499
Ineos U.S. Finance LLC......................... BTL-B Ba3 BB- 3.75 05/04/2018 983,024 954,762
MacDermid, Inc................................. BTL-B2 B2 BB- 5.50 06/07/2020 1,425,600 1,374,177
Minerals Technologies, Inc..................... BTL-B Ba2 BB 3.75-5.00 05/09/2021 1,288,327 1,286,717
Univar, Inc.................................... BTL B2 BB- 4.25 07/01/2022 1,038,738 1,004,423
-----------
7,331,113
-----------
COMMERCIAL SERVICES & SUPPLIES -- 5.3%
ADS Waste Holdings, Inc........................ BTL B2 B+ 3.75 10/09/2019 952,669 925,756
Audio Visual Services Group, Inc............... BTL-B B1 B+ 4.50 01/24/2021 2,838,482 2,724,943
Brand Energy and Infrastructure Services, Inc.. BTL-B B1 B 4.75 11/26/2020 2,625,873 2,472,698
Brickman Group Holdings, Inc................... BTL B2 B 4.00 12/18/2020 1,436,941 1,390,016
Brickman Group Holdings, Inc................... 2nd Lien Caa1 CCC+ 7.50 12/17/2021 1,340,000 1,206,000
Fly Funding II SARL............................ BTL Ba3 BBB- 3.50 08/06/2019 1,334,531 1,320,352
Peak 10, Inc................................... 2nd Lien Caa2 CCC+ 8.25 06/17/2022 845,000 779,513
Sedgwick CMS Holdings, Inc..................... 2nd Lien Caa2 CCC+ 6.75 02/28/2022 1,465,000 1,338,644
ServiceMaster Co............................... BTL-B B1 BB- 4.25 07/01/2021 1,129,369 1,119,135
Waste Industries USA, Inc...................... BTL-B B1 BB- 4.25 02/27/2020 1,032,200 1,024,459
WCA Waste Systems, Inc......................... BTL B1 B+ 4.00 03/23/2018 994,422 979,505
-----------
15,281,021
-----------
CONSTRUCTION & ENGINEERING -- 0.4%
Pike Corp...................................... 1st Lien B2 B+ 5.50 12/22/2021 1,161,281 1,149,668
-----------
CONSTRUCTION MATERIALS -- 0.9%
Headwaters, Inc................................ BTL-B B1 BB- 4.50 03/24/2022 1,616,252 1,614,231
Quikrete Companies, Inc........................ 2nd Lien B1 BB- 4.00 09/28/2020 500,240 494,299
Quikrete Companies, Inc........................ 1st Lien B3 B 7.00 03/26/2021 565,895 564,834
-----------
2,673,364
-----------
11
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2015 -- (CONTINUED)
RATINGS/(1)/
(UNAUDITED)
------------
INTEREST MATURITY PRINCIPAL VALUE
INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT** (NOTE 2)
----------------------------------------------------------------------------------------------------------------
CONSUMER FINANCE -- 0.9%
TransFirst Holdings, Inc............... 1st Lien B2 B 4.75% 11/12/2021 $ 871,211 $ 863,152
TransFirst Holdings, Inc............... 2nd Lien Caa2 CCC+ 9.00 11/12/2022 700,000 680,750
Vantiv LLC............................. BTL-B Ba3 BBB- 3.75 06/13/2021 1,027,083 1,022,205
-----------
2,566,107
-----------
CONTAINERS & PACKAGING -- 2.5%
Ardagh Packaging Finance PLC........... BTL Ba3 B+ 4.00 12/17/2019 648,450 636,292
Berry Plastics Holding Corp............ BTL-F Ba3 BB- 4.00 10/01/2022 3,106,073 3,075,788
BWAY Holding Corp...................... BTL-B B2 B- 5.50 08/14/2020 1,184,307 1,137,921
Mauser Holding GmbH.................... 2nd Lien Caa2 CCC+ 8.75 07/31/2022 1,605,000 1,412,400
Owens-Illinois, Inc.................... BTL-B Baa3 BBB- 3.50 08/06/2022 837,900 833,920
-----------
7,096,321
-----------
DISTRIBUTORS -- 0.3%
ABC Supply Co., Inc.................... BTL-B B1 BB+ 3.50 04/16/2020 796,977 787,812
-----------
DIVERSIFIED FINANCIAL SERVICES -- 1.2%
Media General, Inc..................... BTL-B NR BB+ 4.00 07/31/2020 880,735 867,744
Opal Acquisition, Inc.................. BTL-B B1 B- 5.00 11/27/2020 860,555 699,201
Santander Asset Management (7)......... BTL Ba2 BB 4.25 12/17/2020 980,713 981,020
TransUnion LLC......................... BTL B1 B+ 3.50 04/09/2021 1,000,113 969,110
-----------
3,517,075
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES -- 3.1%
Altice Financing SA.................... BTL B1 BB- 5.25 02/04/2022 676,600 673,006
Altice Financing SA.................... BTL NR BB- 5.25 02/04/2022 EUR 333,325 360,042
Altice Financing SA.................... BTL B1 BB- 5.50 07/02/2019 2,706,209 2,688,732
CSC Holdings, Inc...................... BTL Ba1 BB- 5.00 10/09/2022 1,540,000 1,535,600
Level 3 Financing, Inc................. BTL-B Ba1 BB 3.50 05/31/2022 1,300,000 1,276,980
Level 3 Financing, Inc................. BTL-B2 Ba1 BB 4.00 08/01/2019 1,425,000 1,421,794
XO Communications, Inc................. BTL B2 BB- 4.25 03/19/2021 862,558 841,713
-----------
8,797,867
-----------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 0.2%
Ortho Clinical Diagnostics SA.......... BTL B1 B 4.75 06/30/2021 723,234 610,228
-----------
ENERGY EQUIPMENT & SERVICES -- 1.3%
Drillships Financing Holding, Inc...... BTL-B Caa2 B 5.50 07/25/2021 991,460 466,606
Pacific Drilling SA.................... BTL-B Caa2 B 4.50 06/04/2018 814,125 344,646
Paragon Offshore, Ltd.................. BTL-B Caa2 CCC 3.75 07/18/2021 987,500 276,500
Pinnacle Holdco SARL................... BTL B1 B+ 4.75 07/30/2019 1,017,860 855,003
Seadrill Partners Finco LLC............ BTL-B B2 B 4.00 02/21/2021 3,212,656 1,303,802
Shelf Drilling Midco, Ltd.............. BTL B2 B- 10.00 10/08/2018 1,240,000 620,000
-----------
3,866,557
-----------
FOOD & STAPLES RETAILING -- 4.0%
Albertson's Holdings LLC............... BTL-B4 Ba3 BB- 5.50 08/25/2021 4,595,275 4,551,877
Albertson's Holdings LLC............... BTL Ba3 BB 5.50 12/21/2022 565,000 560,409
BJ's Wholesale Club, Inc............... 1st Lien B3 B- 4.50 09/26/2019 1,072,349 1,022,753
Rite Aid Corp.......................... BTL B2 B+ 4.88 06/21/2021 2,230,000 2,222,335
Rite Aid Corp.......................... 2nd Lien B2 B+ 5.75 08/21/2020 1,055,000 1,058,077
U.S. Foodservice....................... BTL B2 B- 4.50 03/31/2019 2,170,353 2,146,388
-----------
11,561,839
-----------
FOOD PRODUCTS -- 3.0%
B&G Foods, Inc......................... BTL-B Ba3 BB+ 3.75 11/02/2022 1,055,000 1,052,693
Hearthside Food Solutions LLC.......... BTL B1 B 4.50 06/02/2021 1,718,825 1,694,447
Hostess Brands, Inc.................... BTL B1 B+ 4.50 08/03/2022 1,910,213 1,900,065
Hostess Brands, Inc.................... 2nd Lien Caa1 CCC+ 8.50 08/03/2023 1,290,000 1,276,025
Jacobs Douwe Egberts................... BTL-B Ba3 BB 4.25 07/02/2022 1,246,452 1,234,767
JBS USA................................ BTL-B Ba1 BB+ 4.00 10/30/2022 750,000 737,813
Pinnacle Operating Corp................ BTL-B2 B1 B 4.75 11/15/2018 741,493 704,419
-----------
8,600,229
-----------
12
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2015 -- (CONTINUED)
RATINGS/(1)/
(UNAUDITED)
------------
INTEREST MATURITY PRINCIPAL VALUE
INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT** (NOTE 2)
------------------------------------------------------------------------------------------------------------------
GAS UTILITIES -- 0.2%
NGPL PipeCo LLC............................... BTL-B Caa2 CCC- 6.75% 09/15/2017 $ 567,603 $ 533,547
-----------
HEALTH CARE EQUIPMENT & SUPPLIES -- 1.2%
Alere Inc..................................... BTL-B Ba3 B+ 4.25 06/18/2022 509,996 504,350
Immucor, Inc.................................. BTL-B2 B1 B+ 5.00 08/17/2018 1,808,172 1,715,504
Sterigenics-Nordion Holdings LLC.............. BTL-B B1 B 4.25 05/15/2022 1,177,050 1,141,739
-----------
3,361,593
-----------
HEALTH CARE PROVIDERS & SERVICES -- 6.0%
American Renal Holdings, Inc.................. 1st Lien Ba3 B 4.50 09/20/2019 1,129,663 1,107,070
American Renal Holdings, Inc.................. 2nd Lien Caa1 CCC+ 8.50 03/20/2020 1,879,617 1,842,025
Aspen Dental Management, Inc.................. BTL-B B1 B 5.50 04/30/2022 1,293,500 1,288,110
CHS/Community Health Systems, Inc............. BTL-F Ba2 BB 3.66 12/31/2018 1,985,000 1,952,388
CHS/Community Health Systems, Inc............. BTL-H Ba2 BB 4.00 01/27/2021 1,122,392 1,100,119
Emergency Medical Services Corp............... BTL-B2 B1 BB- 4.50 10/28/2022 2,105,000 2,092,503
Healogics, Inc................................ 1st Lien B2 B 5.25 07/01/2021 998,068 780,988
Inventiv Health, Inc.......................... BTL-B4 B1 B- 7.75 05/15/2018 1,100,000 1,078,000
MPH Acquisition Holdings LLC.................. BTL B1 B+ 3.75 03/31/2021 982,955 955,105
Surgery Center Holdings, Inc.................. 1st Lien B2 B 5.25 11/03/2020 1,217,700 1,208,059
Surgery Center Holdings, Inc.................. 2nd Lien Caa2 CCC+ 8.50 11/03/2021 1,509,184 1,403,541
U.S. Renal Care, Inc.......................... BTL-B B1 B 5.25 12/31/2022 2,290,000 2,269,963
-----------
17,077,871
-----------
HEALTH CARE TECHNOLOGY -- 0.7%
Emdeon, Inc................................... BTL-2 Ba3 B+ 3.75 11/02/2018 1,202,535 1,178,184
IMS Health, Inc............................... BTL-B Ba2 BB- 3.50 03/17/2021 984,239 954,301
-----------
2,132,485
-----------
HOTELS, RESTAURANTS & LEISURE -- 6.2%
1011778 B.C. ULC.............................. BTL-B Ba3 B+ 3.75 12/12/2021 1,525,415 1,514,928
Aristocrat Leisure, Ltd....................... BTL-B Ba2 BB 4.75 10/20/2021 1,396,608 1,388,656
Caesars Entertainment Operating Co., Inc.+(7). BTL-B6 NR D 1.50 03/01/2017 2,023,792 1,767,444
Caesars Growth Properties Holdings LLC........ BTL B2 B+ 6.25 05/08/2021 1,081,402 943,523
California Pizza Kitchen, Inc................. BTL B2 B- 5.25-6.75 03/29/2018 1,455,507 1,329,362
CityCenter Holdings LLC....................... BTL-B B2 BB- 4.25 10/16/2020 1,108,873 1,100,094
Eldorado Resorts LLC.......................... BTL-B Ba3 BB- 4.25 07/13/2022 975,100 970,225
Four Seasons Holdings, Inc.................... 2nd Lien Caa1 B- 6.25 12/27/2020 835,000 829,433
Hilton Worldwide Finance LLC.................. BTL-B2 Ba2 BBB- 3.50 10/26/2020 1,461,945 1,457,559
La Quinta Intermediate Holdings LLC........... BTL-B B1 BB 3.75 04/14/2021 1,145,413 1,114,868
Lindblad Expeditons, Inc. (Cayman Borrower)... BTL B2 BB+ 5.50 05/08/2021 227,426 225,152
Lindblad Expeditons, Inc...................... BTL B2 BB+ 5.50 05/08/2021 1,762,574 1,744,948
Scientific Games International, Inc........... BTL-B2 Ba3 BB- 6.00 10/01/2021 571,713 520,769
Station Casinos, Inc.......................... BTL-B B1 B+ 4.25 03/02/2020 2,074,848 2,031,623
Town Sports International Holdings, Inc....... BTL B3 B- 4.50 11/15/2020 2,234,784 849,218
-----------
17,787,802
-----------
INDUSTRIAL CONGLOMERATES -- 1.0%
American Rock Salt Co. LLC.................... BTL-B B2 B 4.75 05/20/2021 1,753,300 1,693,395
American Rock Salt Co. LLC.................... 2nd Lien B2 B 4.75 05/20/2021 1,240,554 1,182,409
-----------
2,875,804
-----------
INDUSTRIAL POWER PRODUCERS & ENERGY TRADERS -- 0.3%
Calpine Corp.................................. BTL Ba3 BB 4.00 10/09/2019 1,002,133 977,497
-----------
INSURANCE -- 3.5%
Asurion Corp.................................. 1st Lien Ba3 B 5.00 05/24/2019 1,788,584 1,682,387
Asurion Corp.................................. BTL-B4 Ba3 B 5.00 08/04/2022 2,267,154 2,083,893
Asurion Corp.................................. 2nd Lien Caa1 CCC+ 8.50 03/03/2021 3,355,000 2,848,606
Compass Investments, Inc...................... BTL B1 B 4.25 12/27/2019 1,225,783 1,179,050
Cooper, Gay, Swett & Crawford, Ltd............ 1st Lien B2 B- 5.00 04/16/2020 887,250 847,324
Cooper, Gay, Swett & Crawford, Ltd............ 2nd Lien Caa2 CCC 8.25 10/16/2020 1,430,000 1,329,900
-----------
9,971,160
-----------
13
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2015 -- (CONTINUED)
RATINGS/(1)/
(UNAUDITED)
------------
INTEREST MATURITY PRINCIPAL VALUE
INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT** (NOTE 2)
------------------------------------------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL -- 1.0%
Acosta, Inc......................................... BTL B1 B 4.25% 09/26/2021 $1,868,629 $ 1,778,000
Lands' End, Inc..................................... BTL-B B1 B+ 4.25 04/04/2021 1,443,233 1,226,748
-----------
3,004,748
-----------
INTERNET SOFTWARE & SERVICES -- 0.3%
Zayo Group LLC...................................... BTL-B Ba2 BB- 3.75 05/06/2021 768,322 755,289
-----------
IT SERVICES -- 3.5%
Ceridian Corp....................................... BTL-B2 Ba3 B- 4.50 09/15/2020 524,544 443,896
Evertec, Inc........................................ BTL-B B1 BB- 3.25 04/17/2020 594,750 571,703
First Data Corp..................................... BTL-B B1 BB 3.92 03/24/2018 4,718,681 4,649,585
First Data Corp..................................... BTL B1 BB 3.92 09/24/2018 2,170,000 2,139,620
First Data Corp..................................... BTL-1 B1 BB 4.17 07/08/2022 1,955,000 1,922,881
MoneyGram International, Inc........................ BTL-B B1 B+ 4.25 03/27/2020 418,247 380,953
-----------
10,108,638
-----------
LEISURE EQUIPMENT & PRODUCTS -- 0.4%
SRAM LLC............................................ BTL-B B1 B+ 4.00-5.25 04/10/2020 1,312,740 1,076,447
-----------
LIFE SCIENCES TOOLS & SERVICES -- 0.7%
Pharmaceutical Product Development, Inc............. BTL-B B1 B 4.25 08/18/2022 2,194,599 2,128,761
-----------
MACHINERY -- 1.7%
Gardner Denver, Inc................................. BTL B1 B 4.25 07/30/2020 1,628,485 1,461,565
Harbor Freight Tools USA, Inc....................... BTL-B B1 BB- 4.75 07/26/2019 938,170 938,639
Husky International, Ltd............................ 1st Lien B1 B 4.25 06/30/2021 456,812 439,825
Husky International, Ltd............................ 2nd Lien Caa1 B- 7.25 06/30/2022 553,868 533,790
Paladin Brands Holding, Inc......................... BTL B2 B+ 7.25-8.50 08/16/2019 1,745,929 1,623,714
-----------
4,997,533
-----------
MEDIA -- 7.6%
Advantage Sales & Marketing LLC..................... 1st Lien B1 B 4.25 07/23/2021 2,490,430 2,391,851
Advantage Sales & Marketing LLC..................... 2nd Lien Caa1 CCC+ 7.50 07/25/2022 1,000,000 883,333
Charter Communications Operating LLC................ BTL-I Ba1 BBB- 3.50 01/24/2023 1,580,000 1,574,075
Delta 2 (Lux) SARL.................................. BTL-B3 B2 B 4.75 07/31/2021 3,944,124 3,806,080
Delta 2 (Lux) SARL.................................. 2nd Lien Caa2 CCC+ 7.75 07/31/2022 1,995,000 1,839,141
Galleria Co......................................... BTL-B Ba1 BBB- 3.75 10/22/2022 995,000 985,050
Getty Images, Inc................................... BTL-B B3 CCC+ 4.75 10/18/2019 1,845,147 1,152,064
Hicks Sports Group+(7)(9)........................... BTL-B NR NR 6.75 12/22/2011 964,156 28,925
ION Media Networks, Inc............................. BTL-B B1 B+ 4.75 12/18/2020 2,120,481 2,075,421
Numericable Finance & Co. SCA....................... BTL-B1 B1 B+ 4.50 05/21/2020 1,236,746 1,190,059
Numericable Finance & Co. SCA....................... BTL-B2 B1 B+ 4.50 05/21/2020 1,069,954 1,029,563
Salem Communications Corp........................... BTL-B B2 B 4.50 03/16/2020 831,133 803,083
Truven Health Analytics, Inc........................ BTL-B B1 B 4.50 06/06/2019 1,099,722 1,050,234
Univision Communications, Inc....................... BTL-C4 B2 B+ 4.00 03/01/2020 2,958,155 2,892,212
-----------
21,701,091
-----------
METALS & MINING -- 1.0%
Ameriforge Group, Inc............................... BTL B3 B+ 5.00 12/19/2019 924,187 275,715
Crosby Worldwide, Ltd............................... 1st Lien B2 B- 4.00 11/23/2020 1,034,801 807,145
Fortescue Metals Group, Ltd......................... BTL Ba1 BB+ 4.25 06/30/2019 764,840 568,531
Signode Industrial Group U.S., Inc.................. BTL-B B1 B+ 3.75 05/01/2021 1,161,389 1,116,385
-----------
2,767,776
-----------
MULTI UTILITIES -- 0.9%
Energy Future Intermediate Holding Co. LLC(7)....... DIP NR NR 4.25 06/19/2016 1,215,000 1,209,684
Texas Competitive Electric Holdings Co. LLC+(7)(10). BTL NR NR 4.73 10/10/2017 4,174,956 1,266,840
-----------
2,476,524
-----------
MULTILINE RETAIL -- 0.6%
Dollar Tree, Inc.................................... BTL-B Ba1 BB+ 3.50 07/06/2022 1,021,680 1,017,301
Neiman Marcus Group, Inc............................ BTL-B B2 B 4.25 10/25/2020 684,245 603,953
-----------
1,621,254
-----------
14
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2015 -- (CONTINUED)
RATINGS/(1)/
(UNAUDITED)
------------
INTEREST MATURITY PRINCIPAL VALUE
INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT** (NOTE 2)
-------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS -- 3.3%
American Energy Marcellus LLC............... 1st Lien Caa1 CCC 5.25% 08/04/2020 $1,565,000 $ 397,119
American Energy Marcellus LLC............... 2nd Lien Caa3 CC 8.50 08/04/2021 835,000 8,350
Arch Coal, Inc.............................. BTL Caa1 CCC 6.25 05/16/2018 1,714,504 777,241
Callon Petroleum Co......................... 2nd Lien NR NR 8.50 10/08/2021 1,620,000 1,539,000
Chief Exploration & Development LLC......... 2nd Lien NR NR 7.50 05/12/2021 1,785,000 1,169,175
Energy Transfer Equity LP................... BTL Ba2 BB 4.00 12/02/2019 929,412 838,794
Philadelphia Energy Solutions LLC........... BTL-B B1 BB- 6.25 04/04/2018 928,738 886,944
Power Buyer LLC(16)......................... BTL B2 B+ 4.25 05/06/2020 1,041,296 1,010,925
Power Buyer LLC............................. 2nd Lien Caa2 CCC+ 8.25 11/06/2020 670,000 639,850
Templar Energy LLC.......................... 2nd Lien B3 CCC+ 8.50 11/25/2020 1,825,000 191,625
Western Refining LP......................... BTL-B B1 BB- 4.25 11/12/2020 2,131,475 2,051,545
----------
9,510,568
----------
PAPER & FOREST PRODUCTS -- 0.4%
Exopack LLC................................. BTL B1 B 4.50 05/08/2019 1,111,873 1,078,517
----------
PERSONAL PRODUCTS -- 0.2%
Coty, Inc................................... BTL-B Ba1 BBB- 3.75 10/27/2022 495,000 493,763
----------
PHARMACEUTICALS -- 2.6%
Catalent Pharma Solutions, Inc.............. BTL-B2 B1 BB 4.25 05/20/2021 1,637,107 1,619,713
Endo Luxembourg Finance Co.................. BTL-B Ba1 BB 3.75 09/26/2022 2,195,000 2,162,075
PRA Holdings, Inc........................... 1st Lien B1 BB- 4.50 09/23/2020 1,885,073 1,860,921
Valeant Pharmaceuticals International, Inc.. BTL-F1 Ba1 BB 4.00 04/01/2022 1,776,219 1,708,870
----------
7,351,579
----------
PROFESSIONAL SERVICES -- 0.5%
Nexeo Solutions LLC......................... BTL-B1 B3 B 5.00 09/08/2017 446,795 424,083
On Assignment, Inc.......................... BTL Ba2 BB 3.75 06/03/2022 944,765 937,679
----------
1,361,762
----------
REAL ESTATE INVESTMENT TRUSTS -- 0.7%
Capital Automotive LP....................... 2nd Lien B1 B- 6.00 04/30/2020 1,405,000 1,383,925
Equinix, Inc................................ BTL Ba2 BBB- 4.00 11/20/2022 480,000 481,200
----------
1,865,125
----------
REAL ESTATE MANAGEMENT & DEVELOPMENT -- 1.6%
DTZ US Borrower LLC......................... 1st Lien B1 B+ 4.25-5.75 11/04/2021 1,990,000 1,938,592
DTZ US Borrower LLC......................... 2nd Lien B3 B- 9.25 11/04/2022 1,085,000 1,066,013
Realogy Corp................................ CLTL NR BB 0.05 10/10/2016 85,875 84,587
Realogy Corp................................ BTL Ba2 BB 3.75 03/05/2020 1,552,927 1,540,632
----------
4,629,824
----------
ROAD & RAIL -- 1.1%
Kenan Advantage Group, Inc.(8).............. Delayed Draw Ba3 BB 1.50 01/23/2017 155,000 152,288
Kenan Advantage Group, Inc.................. BTL Ba3 BB 4.00 07/31/2022 1,122,188 1,102,549
Kenan Advantage Group, Inc.................. BTL-B Ba3 BB 4.00 07/31/2022 359,100 352,816
Neff Rental LLC............................. 2nd Lien Caa1 B- 7.25 06/09/2021 1,782,757 1,426,205
----------
3,033,858
----------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 2.6%
Avago Technologies, Ltd..................... BTL Ba1 BBB- 3.75 05/06/2021 1,242,243 1,239,914
Avago Technologies, Ltd..................... BTL-B Ba1 BBB 4.25 11/06/2022 3,005,000 2,965,352
Lattice Semiconductor Corp.................. 1st Lien B2 B+ 5.25 03/10/2021 842,008 783,068
NXP BV...................................... BTL Baa3 BBB- 3.75 12/07/2020 2,435,000 2,419,781
----------
7,408,115
----------
15
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2015 -- (CONTINUED)
RATINGS/(1)/
(UNAUDITED)
------------
INTEREST MATURITY PRINCIPAL VALUE
INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT** (NOTE 2)
----------------------------------------------------------------------------------------------------------------------
SOFTWARE -- 4.5%
Epicore Software Co................... 1st Lien B2 B 4.75% 06/01/2022 $2,049,700 $ 1,996,750
Kronos, Inc........................... BTL-C B1 B- 4.50 10/30/2019 3,088,292 3,032,317
Kronos, Inc........................... 2nd Lien Caa2 CCC 9.75 04/30/2020 2,678,362 2,653,810
Lawson Software, Inc.................. BTL-B5 B1 B+ 3.75 06/03/2020 945,619 888,291
Magic Newco LLC....................... BTL B1 B+ 5.00 12/12/2018 2,072,022 2,065,288
M.A.FinanceCo LLC..................... BTL B1 BB- 5.25 11/19/2021 623,077 614,822
SS& C Technologies, Inc............... BTL-B1 Ba3 BB 4.00-4.08 07/08/2022 1,484,198 1,471,741
SS& C Technologies, Inc............... BTL-B2 Ba3 BB 4.00-4.08 07/08/2022 218,252 216,420
------------
12,939,439
------------
SPECIALTY RETAIL -- 4.7%
At Home Holding III, Inc.............. BTL B2 B- 5.00 06/03/2022 4,967,506 4,871,261
J Crew Operating Corp................. BTL-B1 B2 B- 4.00 03/05/2021 745,090 480,738
Michaels Stores, Inc.................. BTL-B2 Ba2 BB- 3.75 01/28/2020 991,019 979,374
Party City Holdings, Inc.............. BTL B1 B 4.25 08/19/2022 2,653,620 2,573,184
PetSmart, Inc......................... BTL-B Ba3 BB- 4.25 03/11/2022 3,763,828 3,661,501
Serta Simmons Holdings LLC............ BTL-B B1 BB- 4.25 10/01/2019 961,398 955,499
------------
13,521,557
------------
TECH HARDWARE, STORAGE & PERIPHERAL -- 0.3%
CDW Corp.............................. BTL Ba2 BBB- 3.25 04/29/2020 869,158 845,981
------------
THRIFTS & MORTGAGE FINANCE -- 0.3%
Walter Investment Management Co....... Tranche B B2 BB- 4.75 12/19/2020 962,734 826,747
------------
WIRELESS TELECOMMUNICATION SERVICES -- 0.8%
LTS Buyer LLC......................... BTL-B B1 B 4.00 04/13/2020 1,024,363 996,449
LTS Buyer LLC......................... 2nd Lien Caa1 CCC+ 8.00 04/12/2021 271,975 263,306
T Mobile USA, Inc..................... BTL-B Baa3 BBB- 3.50 11/09/2022 1,130,000 1,128,588
------------
2,388,343
------------
TOTAL LOANS (cost $282,329,281)....... 258,706,075
------------
U.S. CORPORATE BONDS & NOTES -- 3.8%
COMMUNICATIONS EQUIPMENT -- 0.1%
Alcatel-Lucent USA, Inc.*............. Company Guar. Notes B2 B+ 6.75 11/15/2020 292,000 307,695
------------
CONTAINERS & PACKAGING -- 0.2%
Ball Corp............................. Company Guar. Notes Ba1 BB+ 4.38 12/15/2020 460,000 467,188
------------
DIVERSIFIED FINANCIAL SERVICES -- 0.2%
ZF NA Capital*........................ Company Guar. Notes Ba2 BB 4.00 04/29/2020 506,000 510,175
------------
HEALTH CARE EQUIPMENT & SUPPLIES -- 0.2%
Hologic, Inc.*........................ Company Guar. Notes B1 BB 5.25 07/15/2022 570,000 581,400
------------
HEALTH CARE PROVIDERS & SERVICES -- 0.6%
LifePoint Health, Inc................. Company Guar. Notes Ba2 BB- 5.88 12/01/2023 545,000 553,175
Tenet Healthcare Corp................. Senior Notes B3 CCC+ 8.13 04/01/2022 1,035,000 1,032,413
------------
1,585,588
------------
INDUSTRIAL POWER PRODUCERS & ENERGY TRADERS -- 0.3%
Dynegy Finance, Inc................... Senior Sec. Notes B3 B+ 6.75 11/01/2019 1,020,000 958,800
------------
IT SERVICES -- 0.6%
First Data Corp.*..................... Company Guar. Notes Caa1 B 7.00 12/01/2023 1,750,000 1,750,000
------------
MEDIA -- 0.3%
Cequel Communications Holdings I LLC*. Senior Notes Caa1 B- 5.13 12/15/2021 750,000 675,000
LIN Television Corp................... Company Guar. Notes B3 NR 5.88 11/15/2022 215,000 213,925
------------
888,925
------------
OIL, GAS & CONSUMABLE FUELS -- 0.2%
EP Energy LLC......................... Company Guar. Notes B1 B 9.38 05/01/2020 758,000 483,225
WPX Energy, Inc....................... Senior Notes Ba1 BB 5.25 09/15/2024 315,000 207,900
------------
691,125
------------
16
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2015 -- (CONTINUED)
RATINGS/(1)/
(UNAUDITED)
------------
PRINCIPAL
INTEREST MATURITY AMOUNT**/
INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ SHARES
----------------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.3%
Freescale Semiconductor, Inc.*................................ Senior Sec. Notes Baa3 BBB- 6.00% 01/15/2022 $ 815,000
SOFTWARE -- 0.2%
Infor Software Parent LLC*.................................... Company Guar. Notes Caa2 CCC+ 7.13 05/01/2021 895,000
SPECIALTY RETAIL -- 0.2%
Party City Holdings, Inc.*.................................... Company Guar. Notes B3 CCC+ 6.13 08/15/2023 500,000
TECH HARDWARE, STORAGE & PERIPHERAL -- 0.4%
CDW LLC/CDW Finance Corp...................................... Company Guar. Notes B1 BB- 6.00 08/15/2022 1,000,000
TOTAL U.S. CORPORATE BONDS & NOTES (cost $11,405,727).........
FOREIGN CORPORATE BONDS & NOTES -- 2.2%
BANKS -- 0.6%
Banco Bilbao Vizcaya Argentaria SA VRS(11).................... Jr. Sub. Notes NR NR 9.00 05/09/2018 400,000
Royal Bank of Scotland Group PLC VRS(11)...................... Jr. Sub. Notes B1 B 7.50 08/10/2020 995,000
Societe Generale SA VRS(11)................................... Jr. Sub. Notes Ba2 BB+ 8.25 11/29/2018 400,000
CONSUMER FINANCE -- 0.3%
AerCap Ireland, Ltd........................................... Company Guar. Notes Ba2 BB+ 4.63 10/30/2020 750,000
DIVERSIFIED TELECOMMUNICATION SERVICES -- 0.2%
Altice Financing SA*.......................................... Senior Sec. Notes B1 BB- 6.50 01/15/2022 500,000
ENERGY EQUIPMENT & SERVICES -- 0.2%
Shelf Drilling Holdings, Ltd.*................................ Senior Sec. Notes B1 B+ 8.63 11/01/2018 695,000
HOTELS, RESTAURANTS & LEISURE -- 0.2%
NCL Corp., Ltd.*.............................................. Senior Notes B2 BB- 4.63 11/15/2020 500,000
OIL, GAS & CONSUMABLE FUELS -- 0.2%
Tullow Oil PLC*............................................... Company Guar. Notes Caa1 B 6.00 11/01/2020 1,000,000
PAPER & FOREST PRODUCTS -- 0.3%
Tembec Industries, Inc.*...................................... Senior Sec. Notes B3 B- 9.00 12/15/2019 1,495,000
PHARMACEUTICALS -- 0.2%
Endo International PLC*....................................... Company Guar. Notes B1 B 6.00 07/15/2023 560,000
TOTAL FOREIGN CORPORATE BONDS & NOTES (cost $7,352,972).......
COMMON STOCKS -- 0.0%
MEDIA -- 0.0%
Berry Co. LLC+(5)(6)(12)
(cost $668,529).............................................. 1,136
TOTAL LONG-TERM INVESTMENT SECURITIES (cost $301,756,509).....
SHORT-TERM INVESTMENT SECURITIES -- 1.3%
REGISTERED INVESTMENT COMPANIES -- 1.3%
SSgA Money Market Fund, Class N
0.01%(13)
(cost $3,734,218)............................................ 3,734,218
REPURCHASE AGREEMENTS -- 1.7%
Bank of America Securities LLC Joint Repurchase Agreement(14). $ 815,000
Barclays Capital, Inc. Joint Repurchase Agreement(14)......... 1,195,000
BNP Paribas SA Joint Repurchase Agreement(14)................. 1,190,000
Deutsche Bank AG Joint Repurchase Agreement(14)............... 530,000
RBS Securities, Inc. Joint Repurchase Agreement(14)........... 1,190,000
TOTAL REPURCHASE AGREEMENTS (cost $4,920,000).................
TOTAL INVESTMENTS
(cost $310,410,727)(15)....................................... 99.3%
OTHER ASSETS LESS LIABILITIES................................... 0.7%
----------
NET ASSETS...................................................... 100.0%
==========
VALUE
INDUSTRY DESCRIPTION (NOTE 2)
-----------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.3%
Freescale Semiconductor, Inc.*................................ $ 853,713
------------
SOFTWARE -- 0.2%
Infor Software Parent LLC*.................................... 646,638
------------
SPECIALTY RETAIL -- 0.2%
Party City Holdings, Inc.*.................................... 485,000
------------
TECH HARDWARE, STORAGE & PERIPHERAL -- 0.4%
CDW LLC/CDW Finance Corp...................................... 1,055,000
------------
TOTAL U.S. CORPORATE BONDS & NOTES (cost $11,405,727)......... 10,781,247
------------
FOREIGN CORPORATE BONDS & NOTES -- 2.2%
BANKS -- 0.6%
Banco Bilbao Vizcaya Argentaria SA VRS(11).................... 428,257
Royal Bank of Scotland Group PLC VRS(11)...................... 1,036,044
Societe Generale SA VRS(11)................................... 424,000
------------
1,888,301
------------
CONSUMER FINANCE -- 0.3%
AerCap Ireland, Ltd........................................... 767,813
------------
DIVERSIFIED TELECOMMUNICATION SERVICES -- 0.2%
Altice Financing SA*.......................................... 495,000
------------
ENERGY EQUIPMENT & SERVICES -- 0.2%
Shelf Drilling Holdings, Ltd.*................................ 503,875
------------
HOTELS, RESTAURANTS & LEISURE -- 0.2%
NCL Corp., Ltd.*.............................................. 489,610
------------
OIL, GAS & CONSUMABLE FUELS -- 0.2%
Tullow Oil PLC*............................................... 695,000
------------
PAPER & FOREST PRODUCTS -- 0.3%
Tembec Industries, Inc.*...................................... 971,750
------------
PHARMACEUTICALS -- 0.2%
Endo International PLC*....................................... 557,200
------------
TOTAL FOREIGN CORPORATE BONDS & NOTES (cost $7,352,972)....... 6,368,549
------------
COMMON STOCKS -- 0.0%
MEDIA -- 0.0%
Berry Co. LLC+(5)(6)(12)
(cost $668,529).............................................. 27,673
------------
TOTAL LONG-TERM INVESTMENT SECURITIES (cost $301,756,509)..... 275,883,544
------------
SHORT-TERM INVESTMENT SECURITIES -- 1.3%
REGISTERED INVESTMENT COMPANIES -- 1.3%
SSgA Money Market Fund, Class N
0.01%(13)
(cost $3,734,218)............................................ 3,734,218
------------
REPURCHASE AGREEMENTS -- 1.7%
Bank of America Securities LLC Joint Repurchase Agreement(14). 815,000
Barclays Capital, Inc. Joint Repurchase Agreement(14)......... 1,195,000
BNP Paribas SA Joint Repurchase Agreement(14)................. 1,190,000
Deutsche Bank AG Joint Repurchase Agreement(14)............... 530,000
RBS Securities, Inc. Joint Repurchase Agreement(14)........... 1,190,000
------------
TOTAL REPURCHASE AGREEMENTS (cost $4,920,000)................. 4,920,000
------------
TOTAL INVESTMENTS
(cost $310,410,727)(15)....................................... 284,537,762
OTHER ASSETS LESS LIABILITIES................................... 2,073,166
------------
NET ASSETS...................................................... $286,610,928
============
17
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2015 -- (CONTINUED)
--------
BTL Bank Term Loan
CLTLCredit Linked Term Loan
EUR Euro Dollar
DIP Debtor in Possession
NR Security is not rated.
VRS--VariableRate Security
The rates shown on VRS are the current interest rates as of December 31, 2015
and unless noted otherwise, the dates shown are the original maturity dates.
+ Non-income producing security
* 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
rights to demand registration of these securities. At December 31, 2015,
the aggregate value of these securities was $9,522,056, representing 3.3%
of net assets. Unless otherwise indicated, these securities are not
considered to be illiquid.
** Denominated in United States Dollars unless otherwise noted.
(1) Bank loans rated below Baa by Moody's Investor Service, Inc. or BBB by
Standard & Poor's Group are considered below investment grade. Ratings
provided are as of December 31, 2015.
(2) Based on the stated maturity, the weighted average to maturity of the loans
held in the portfolio is approximately 63 months. Loans in the Fund's
portfolio are generally subject to mandatory and/or optional prepayment.
Because of these mandatory prepayment conditions and because there may be
significant economic incentives for a Borrower to prepay, prepayments may
occur. As a result, the actual remaining maturity may be substantially less
than the stated maturities shown.
(3) The Fund invests in senior loans which generally pay interest at rates
which are periodically re-determined by reference to a base lending rate
plus a premium. These base lending rates are generally either the lending
rate offered by one or more major European banks, such as the London
Inter-Bank Offer Rate ("LIBOR") or the prime rate offered by one or more
major United States banks, or the certificate of deposit rate. Senior loans
are generally considered to be restrictive in that the Fund is ordinarily
contractually obligated to receive approval from the Agent Bank and/or
borrower prior to the disposition of a senior loan.
(4) All loans in the portfolio were purchased through assignment agreements
unless otherwise indicated.
(5) Illiquid security. At December 31, 2015, the aggregate value of these
securities was $27,673, representing 0.0% of net assets.
(6) Fair valued security. Securities are classified as Level 3 based on the
securities valuation inputs; see Note 2.
(7) Company has filed for Chapter 11 bankruptcy protection.
(8) All or a portion of this holding is subject to unfunded loan commitments.
See Note 10.
(9) Loan is in default of interest and did not pay principal at maturity.
(10)Loan is in default of interest.
(11)Perpetual maturity--maturity date reflects the next call date.
(12)Denotes a restricted security that: (a) cannot be offered for public sale
without first being registered, or being able to take advantage of an
exemption from registration, under the Securities Act of 1933, as amended
(the "1933 Act"); (b) is subject to a contractual restriction on public
sales; or (c) is otherwise subject to a restriction on sales by operation
of applicable law. Restricted securities are valued pursuant to Note 2.
Certain restricted securities held by the Fund may not be sold except in
exempt transactions or in a public offering registered under the 1933 Act.
The Fund has no right to demand registration of these securities. The risk
of investing in certain restricted securities is greater than the risk of
investing in the securities of widely held, publicly traded companies. To
the extent applicable, lack of a secondary market and resale restrictions
may result in the inability of a Fund to sell a security at a fair price
and may substantially delay the sale of the security. In addition, certain
restricted securities may exhibit greater price volatility than securities
for which secondary markets exist. As of December 31, 2015, the Fund held
the following restricted securities:
ACQUISITION ACQUISITION VALUE PER % OF NET
DESCRIPTION DATE SHARES COST VALUE SHARE ASSETS
----------- ----------- ------ ----------- ------- --------- --------
COMMON STOCKS
Berry Co. LLC. 04/24/2008 1,136 $668,529 $27,673 $24.36 0.00%
======= ====
(13)The rate shown is the 7-day yield as of December 31, 2015.
(14)See Note 2 for details of the Joint Repurchase Agreement.
(15)See Note 6 for cost of investments on a tax basis.
(16)"Payment-in-Kind" (PIK) security. Income may be paid in additional loans or
cash at the discretion of the issuer. The security is currently paying
interest in the form of additional loans at the coupon rate listed.
FORWARD FOREIGN CURRENCY CONTRACTS
--------------------------------------------------------------------------------
CONTRACT TO IN EXCHANGE DELIVERY UNREALIZED UNREALIZED
COUNTERPARTY DELIVER FOR DATE APPRECIATION DEPRECIATION
--------------------- ----------- ----------- ---------- ------------ ------------
Bank of America N.A.. EUR 333,000 USD 365,531 01/29/2016 $3,428 $--
====== ===
See Notes to Financial Statements
18
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2015 -- (CONTINUED)
The following is a summary of the inputs used to value the Fund's net assets as
of December 31, 2015 (see Note 2):
LEVEL 1 -- UNADJUSTED LEVEL 2 -- OTHER LEVEL 3 -- SIGNIFICANT
QUOTED PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS TOTAL
--------------------- ----------------- ---------------------- ------------
ASSETS:
Investments at Value:*
Loans:
Media............................ $ -- $ 21,672,166 $28,925 $ 21,701,091
Oil, Gas & Consumable Fuels...... -- 9,502,218 8,350 9,510,568
Other Industries................. -- 227,494,416 -- 227,494,416
U.S. Corporate Bonds & Notes....... -- 10,781,247 -- 10,781,247
Foreign Corporate Bonds & Notes.... -- 6,368,549 -- 6,368,549
Common Stocks...................... -- -- 27,673 27,673
Short-Term Investment Securities... 3,734,218 -- -- 3,734,218
Repurchase Agreements.............. -- 4,920,000 -- 4,920,000
---------- ------------ ------- ------------
TOTAL INVESTMENTS AT VALUE......... $3,734,218 $280,738,596 $64,948 $284,537,762
========== ============ ======= ============
Other Financial Instruments:@
Forward Foreign Currency Contracts. $ -- $ 3,428 $ -- $ 3,428
========== ============ ======= ============
--------
* 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 material transfers between Levels during the
reporting period.
At the beginning and end of the reporting period, Level 3 investments in
securities were not considered a material portion of the Fund.
See Notes to Financial Statements
19
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2015
Note 1. Organization of the Fund
SunAmerica Senior Floating Rate Fund, Inc. (the "Fund") is an open-end,
diversified management investment company. The Fund was organized as a
Maryland corporation in 1998 and is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"). The Fund is managed by SunAmerica
Asset Management, LLC (the "Adviser" or "SunAmerica"), an indirect
wholly-owned subsidiary of American International Group, Inc. ("AIG"). The
Fund's investment goal and principal investment techniques are to provide as
high a level of current income as is consistent with the preservation of
capital by investing, under normal market conditions, at least 80% of its
net assets, plus any borrowings for investment purposes, in senior secured
floating rate loans and other institutionally traded secured floating rate
debt obligations ("Loans"). The Fund may also purchase both investment grade
and high yield fixed income securities and money market instruments,
although the Fund may not invest more than 10% of its total assets in high
yield fixed income securities. The Fund may invest in foreign securities,
including up to 10% of its total assets in non-U.S. dollar denominated Loans
and high yield fixed income securities and up to 25% of its total assets in
U.S. dollar denominated Loans issued by non-U.S. companies.
The Fund offers two classes of shares. Class A shares are offered at net
asset value per share plus an initial sales charge. Additionally, purchases
of Class A shares in excess of $1,000,000 will be purchased at net asset
value but will be subject to a contingent deferred sales charge ("CDSC") on
redemptions made within two years of purchase. Class C shares are offered
for sale at net asset value without a front-end sales charge, although a
CDSC may be imposed on redemptions made within 12 months of purchase. The
share classes differ in their respective distribution and account
maintenance fees. All classes have equal rights to assets and voting
privileges except as may otherwise be provided in the Fund's registration
statement.
INDEMNIFICATIONS: The Fund's organizational documents provide current and
former officers and directors with a limited indemnification against
liabilities arising out of the performance of their duties to the Fund. In
addition, pursuant to Indemnification Agreements between the Fund and each
of the current directors who is not an "interested person," as defined in
Section 2(a)(19) of the 1940 Act, of the Fund (collectively, the
"Disinterested Directors"), the Fund provides the Disinterested Directors
with a limited indemnification against liabilities arising out of the
performance of their duties to the Fund, whether such liabilities are
asserted during or after their service as directors. In addition, in the
normal course of business, the Fund enters into contracts that contain the
obligation to indemnify others. The Fund's maximum exposure under these
arrangements is unknown. Currently, however, the Fund expects the risk of
loss to be remote.
Note 2. Significant Accounting Policies
The preparation of financial statements in accordance with U.S. generally
accepted accounting principles ("GAAP") requires management to make
estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results could differ from these
estimates and those differences could be significant. The following is a
summary of significant accounting policies consistently followed by the Fund
in the preparation of its financial statements:
SECURITY VALUATION: In accordance with the authoritative guidance on fair
value measurements and disclosures under GAAP, the Fund discloses the fair
value of its 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 Fund 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
20
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2015 -- (CONTINUED)
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 Directors (the "Board"), etc.)
Level 3 -- Significant unobservable inputs (includes inputs that reflect the
Fund's 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 the Fund's assets and liabilities classified in the fair
value hierarchy as of December 31, 2015, is reported on a schedule following
the Portfolio of Investments.
Stocks are generally valued based upon closing sales prices reported on
recognized securities exchanges on which the securities are principally
traded and are generally categorized as Level 1. Stocks listed on the NASDAQ
are valued using the NASDAQ Official Closing Price ("NOCP"). Generally, the
NOCP will be the last sale price unless the reported trade for the stock is
outside the range of the bid/ask price. In such cases, the NOCP will be
normalized to the nearer of the bid or ask price. For listed securities
having no sales reported and for unlisted securities, such securities will
be valued based upon the last reported bid price.
As of the close of regular trading on the New York Stock Exchange ("NYSE"),
securities traded primarily on security exchanges outside the United States
are valued at the last sale price on such exchanges on the day of valuation,
or if there is no sale on the day of valuation, at the last-reported bid
price. If a security's price is available from more than one exchange, the
Fund uses 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 the 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 the Fund determines that
closing prices do not reflect the fair value of the securities, the Fund
will adjust the previous closing prices in accordance with pricing
procedures approved by the Board to reflect what it believes to be the fair
value of the securities as of the close of regular trading on the NYSE. The
Fund may also fair value securities in other situations, for example, when a
particular foreign market is closed but the Fund is open. For foreign equity
securities and foreign equity futures contracts, the Fund uses 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.
21
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2015 -- (CONTINUED)
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 secured 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 pm Eastern time forward rate and are generally categorized as 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 Fund, 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 Fund'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 Fund used forward
contracts to protect against uncertainty in the level of future exchange
rates.
A forward contract is an agreement between two parties to buy or sell
currency at a set price on a future date. The market value of the contract
will fluctuate with changes in currency exchange rates. The contract is
marked-to-market daily using the forward rate and the cumulative change in
market value is recorded by the Fund as unrealized appreciation or
depreciation. On the settlement date, the 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 Fund 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, the
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 Statement 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.
22
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2015 -- (CONTINUED)
Forward foreign currency contracts outstanding at the end of the period, if
any, are reported on a schedule following the Fund's Portfolio of
Investments.
MASTER AGREEMENTS: The Fund holds derivative instruments and other financial
instruments whereby the Fund may be a party to ISDA (International Swaps and
Derivatives Association, Inc.) Master Agreements or similar agreements
("Master Agreements") with certain counterparties that govern such
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 the Fund's net position with each counterparty. Master Agreements
may also include certain provisions that require the 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 the 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 the Fund's counterparties to elect early termination could
cause the 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 the Fund's financial statements. The Fund does
not offset derivative assets and derivative liabilities that are subject to
netting arrangements in the Statement of Assets and Liabilities.
The following tables represent the value of derivatives held as of December
31, 2015, by their primary underlying risk exposure and respective location
on the Statement of Assets and Liabilities and the effect of derivatives on
the Statement of Operations for the year ended December 31, 2015. The Fund's
derivative contracts held during the period are not accounted for as hedging
instruments under GAAP. For a detailed presentation of derivatives held as
of December 31, 2015, please refer to a schedule following the Fund's
Portfolio of Investments.
ASSET DERIVATIVES LIABILITY DERIVATIVES
----------------- --------------------
FOREIGN
FOREIGN EXCHANGE CONTRACTS EXCHANGE CONTRACTS
-------------------------- -----------------
FORWARD FOREIGN
FORWARD FOREIGN CURRENCY CONTRACTS(1) CURRENCY CONTRACTS(2)
------------------------------------- --------------------
$3,428 $--
====== ===
STATEMENT OF ASSETS AND LIABILITIES LOCATION:
(1) Unrealized appreciation on forward foreign currency contracts
(2) Unrealized depreciation on forward foreign currency contracts
23
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2015 -- (CONTINUED)
CHANGE IN UNREALIZED
REALIZED GAIN (LOSS) APPRECIATION (DEPRECIATION)
ON DERIVATIVES RECOGNIZED ON DERIVATIVES RECOGNIZED
IN STATEMENT OF OPERATIONS IN STATEMENT OF OPERATIONS
-------------------------- -------------------------
FOREIGN
FOREIGN EXCHANGE CONTRACTS EXCHANGE CONTRACTS
-------------------------- ----------------
FORWARD FOREIGN
FORWARD FOREIGN CURRENCY CONTRACTS(1) CURRENCY CONTRACTS(2)
------------------------------------- -------------------
$17,575 $3,428
======= ======
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 balance of derivatives
held during the year ended December 31, 2015:
AVERAGE AMOUNT
OUTSTANDING
DURING THE PERIOD
---------------------
FOREIGN
FUND EXCHANGE CONTRACTS(1)
---- ---------------------
Senior Floating Rate.......... $369,198
========
-
(1) Amounts represent notional amounts in US dollars.
The following table sets forth the Fund's derivative assets and liabilities
by counterparty, net of amounts available for offset under Master Agreements
and net of the related collateral pledged/(received) as of December 31,
2015. The repurchase agreements held by the Fund as of December 31, 2015,
are also subject to Master Agreements but are not included in the following
tables. See the Portfolio of Investments and the Notes to the Financial
Statements for more information about the Fund's holdings in repurchase
agreements.
SENIOR FLOATING RATE FUND
----------------------------------------------------------------
DERIVATIVE ASSETS(1) DERIVATIVE LIABILITIES(1)
-------------------------------- -------------------------------
FORWARD FORWARD NET
FOREIGN FOREIGN DERIVATIVE COLLATERAL
CURRENCY OTC OPTIONS CURRENCY OTC OPTIONS ASSETS PLEDGED/
COUNTERPARTY CONTRACTS SWAPS PURCHASED TOTAL CONTRACTS SWAPS PURCHASED TOTAL (LIABILITIES) (RECEIVED)(2)
------------ --------- ----- --------- ------ --------- ----- --------- ----- ------------- -------------
Bank of America N.A........... $3,428 $-- $-- $3,428 $-- $-- $-- $-- $3,428 $--
====== === === ====== === === === === ====== ===
NET
COUNTERPARTY AMOUNTS(3)
------------ ----------
Bank of America N.A........... $3,428
======
-
(1)Gross amounts of recognized assets and liabilities not offset in the
Statement of Assets and Liabilities.
(2)For each respective counterparty, collateral pledged or (received) is
limited to an amount not to exceed 100% of the net amount of the
derivative asset/liability in the above table.
(3)Net amount represents the net amount due (to)/from counterparty in
the event of a default based on the contractual set-off rights under
the agreement.
REPURCHASE AGREEMENTS: The Fund, along with other affiliated registered
investment companies, pursuant to procedures adopted by the Board and
applicable guidance from the Securities and Exchange Commission ("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 Fund'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, the Fund has the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. If the seller defaults and the
24
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2015 -- (CONTINUED)
value of the collateral declines or if bankruptcy proceedings are commenced
with respect to the seller of the security, realization of the collateral by
the Fund may be delayed or limited.
As of December 31, 2015, the Fund held an undivided interest in a joint
repurchase agreement with Bank of America Securities LLC:
PERCENTAGE PRINCIPAL
OWNERSHIP AMOUNT
---------- ---------
Senior Floating Rate Fund......................... 1.48% $815,000
As of such date, the repurchase agreement in that joint account and the
collateral thereof were as follows:
Bank of America Securities LLC, dated December 31, 2015, bearing interest at
a rate of 0.27% per annum, with a principal amount of $55,000,000, a
repurchase price of $55,001,650, and a maturity date of January 4, 2016. The
repurchase agreement is collateralized by the following:
INTEREST MATURITY
TYPE OF COLLATERAL RATE DATE PRINCIPAL AMOUNT VALUE
------------------ -------- ---------- ---------------- -----------
U.S. Treasury Notes........... 1.38% 02/29/2022 $ 5,140,600 $ 5,099,826
U.S. Treasury Notes........... 2.13 12/31/2022 51,084,300 51,015,448
As of December 31, 2015, the Fund held an undivided interest in a joint
repurchase agreement with Barclays Capital, Inc.:
PERCENTAGE PRINCIPAL
OWNERSHIP AMOUNT
---------- ----------
Senior Floating Rate Fund......................... 1.49% $1,195,000
As of such date, the repurchase agreement in that joint account and the
collateral thereof were as follows:
Barclays Capital, Inc., dated December 31, 2015, bearing interest at a rate
of 0.32% per annum, with a principal amount of $80,000,000, a repurchase
price of $80,002,844, and a maturity date of January 4, 2016. The repurchase
agreement is collateralized by the following:
INTEREST MATURITY
TYPE OF COLLATERAL RATE DATE PRINCIPAL AMOUNT VALUE
------------------ -------- ---------- ---------------- -----------
U.S. Treasury Bonds........... 3.63% 08/15/2043 $71,737,000 $81,366,975
As of December 31, 2015, the Fund held an undivided interest in a joint
repurchase agreement with BNP Paribas SA:
PERCENTAGE PRINCIPAL
OWNERSHIP AMOUNT
---------- ----------
Senior Floating Rate Fund......................... 1.49% $1,190,000
As of such date, the repurchase agreement in that joint account and the
collateral thereof were as follows:
BNP Paribas SA, dated December 31, 2015, bearing interest at a rate of 0.28%
per annum, with a principal amount of $80,000,000, a repurchase price of
$80,002,489, and a maturity date of January 4, 2016. The repurchase
agreement is collateralized by the following:
INTEREST MATURITY
TYPE OF COLLATERAL RATE DATE PRINCIPAL AMOUNT VALUE
------------------ -------- ---------- ---------------- -----------
U.S. Treasury Notes........... 1.00% 09/30/2019 $83,265,400 $81,645,888
25
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2015 -- (CONTINUED)
As of December 31, 2015, the Fund held an undivided interest in a joint
repurchase agreement with Deutsche Bank AG:
PERCENTAGE PRINCIPAL
OWNERSHIP AMOUNT
---------- ---------
Senior Floating Rate Fund......................... 1.48% $530,000
As of such date, the repurchase agreement in that joint account and the
collateral thereof were as follows:
Deutsche Bank AG, dated December 31, 2015, bearing interest at a rate of
0.33% per annum, with a principal amount of $35,745,000, a repurchase price
of $35,746,311, and a maturity date of January 4, 2016. The repurchase
agreement is collateralized by the following:
INTEREST MATURITY
TYPE OF COLLATERAL RATE DATE PRINCIPAL AMOUNT VALUE
------------------ -------- ---------- ---------------- -----------
U.S. Treasury Notes........... 1.50% 11/30/2019 $36,595,000 $36,465,727
As of December 31, 2015, the Fund held an undivided interest in a joint
repurchase agreement with RBS Securities, Inc.:
PERCENTAGE PRINCIPAL
OWNERSHIP AMOUNT
---------- ----------
Senior Floating Rate Fund......................... 1.49% $1,190,000
As of such date, the repurchase agreement in that joint account and the
collateral thereof were as follows:
RBS Securities, Inc., dated December 31, 2015, bearing interest at a rate of
0.29% per annum, with a principal amount of $80,000,000, a repurchase price
of $80,002,578, and a maturity date of January 4, 2016. The repurchase
agreement is collateralized by the following:
INTEREST MATURITY
TYPE OF COLLATERAL RATE DATE PRINCIPAL AMOUNT VALUE
------------------ -------- ---------- ---------------- -----------
U.S. Treasury Notes........... 0.63% 05/31/2017 $81,941,000 $81,601,637
SECURITIES TRANSACTIONS, INVESTMENT INCOME, EXPENSES, DIVIDENDS AND
DISTRIBUTIONS TO SHAREHOLDERS: Security transactions are recorded on a trade
date basis. Realized gains and losses on sales of investments are calculated
on the identified cost basis. Interest income is accrued daily from
settlement date except when collection is not expected. Dividend income is
recorded on the ex-dividend date. For financial statement purposes, the Fund
amortizes all premiums and accretes all discounts. Facility fees received,
which were $710,881 for the year ended December 31, 2015, are accreted to
income over the life of the Loans. Other income, including amendment fees,
commitment fees, letter of credit fees, etc., which were $301,368 for the
year ended December 31, 2015, are recorded as income when received or
contractually due to the Fund.
Net investment income, other than class specific expenses, and realized and
unrealized gains and losses are allocated daily to each class of shares
based upon the relative net asset value of outstanding shares (or the value
of dividend-eligible shares, as appropriate) of each class of shares at the
beginning of the day (after adjusting for the current capital share activity
of the respective class).
Dividends from net investment income are normally declared daily and paid
monthly. Capital gain distributions, if any, are paid annually. The Fund
records dividends and distributions to the shareholders on the ex-dividend
date. The amount of dividends and distributions from net investment income
and net realized capital gains are determined in accordance with federal
income tax regulations, which may differ from 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 the reclassifications.
26
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2015 -- (CONTINUED)
The 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. The Fund also intends to distribute sufficient net investment
income and net capital gains, if any, so that the Fund will not be subject
to excise tax on undistributed income and gains. Therefore, no federal
income tax or excise tax provision is required.
The Fund recognizes the tax benefits of uncertain tax positions only when
the position is more likely than not to be sustained, assuming examination
by tax authorities. Management has analyzed the 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
2012-2014 or expected to be taken in the Fund's 2015 tax return. The Fund is
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 Fund files U.S. federal and certain state income tax
returns. With few exceptions, the Fund is no longer subject to U.S. federal
and state tax examinations by tax authorities for tax returns ending before
2012.
Note 3. Capital Share Transactions
Transactions in capital shares of each class of the Fund were as follows:
FOR THE FOR THE
YEAR ENDED YEAR ENDED
DECEMBER 31, 2015 DECEMBER 31, 2014
------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT
CLASS A ---------- ------------ ----------- -------------
Shares sold................. 3,655,429 $ 29,357,944 7,402,040 $ 61,531,989
Reinvested distributions.... 543,438 4,341,805 609,379 5,045,586
Shares redeemed............. (7,912,117) (62,830,193) (12,678,846) (104,799,731)
---------- ------------ ----------- -------------
Net increase (decrease).. (3,713,250) $(29,130,444) (4,667,427) $ (38,222,156)
========== ============ =========== =============
FOR THE FOR THE
YEAR ENDED YEAR ENDED
DECEMBER 31, 2015 DECEMBER 31, 2014
------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT
CLASS C ---------- ------------ ----------- -------------
Shares sold................. 2,445,047 $ 19,547,765 5,241,629 $ 43,534,663
Reinvested distributions.... 702,479 5,608,496 696,794 5,762,846
Shares redeemed............. (7,480,670) (59,685,098) (7,980,892) (65,946,838)
---------- ------------ ----------- -------------
Net increase (decrease).. (4,333,144) $(34,528,837) (2,042,469) $ (16,649,329)
========== ============ =========== =============
Note 4. Purchases and Sales of Securities
During the year ended December 31, 2015, the Fund's cost of purchases and
proceeds from sale of long-term investments, including loan principal
paydowns, were $159,969,787 and $226,756,699, respectively.
Note 5. Investment Advisory Agreement and Other Transactions with Affiliates
The Fund has entered into an Investment Advisory and Management Agreement
(the "Advisory Agreement") with SunAmerica. Pursuant to the Advisory
Agreement, SunAmerica provides continuous supervision of the Fund and
administers its corporate affairs, subject to the general review and
oversight of the Board. In connection therewith, SunAmerica furnishes the
Fund with office facilities, maintains certain of the Fund's books and
records and pays the salaries and expenses of all personnel, including
officers of the Fund who are employees of SunAmerica and its affiliates.
SunAmerica also selects, contracts with and compensates the subadviser to
manage the Fund's assets. The Fund will pay SunAmerica a monthly management
fee at the following annual rates, based on the average daily net assets of
the Fund: 0.85% on the first $1 billion; 0.80% on the next $1 billion; and
0.75% in excess of $2 billion.
27
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2015 -- (CONTINUED)
Wellington Management Company LLP ("Wellington") acts as subadviser to the
Fund pursuant to a Subadvisory Agreement with SunAmerica. Under the
Subadvisory Agreement, Wellington manages the investment and reinvestment of
the Fund's assets. For compensation for its services as subadviser,
Wellington is entitled to receive from SunAmerica a monthly fee payable at
the following annual rates: 0.30% of average daily net assets on the first
$500 million and 0.25% thereafter. The fee paid to the subadviser is paid by
SunAmerica and not the Fund.
Pursuant to the Administrative Services Agreement (the "Administrative
Agreement"), SunAmerica acts as the Fund's administrator and is responsible
for providing and supervising the performance by others, of administrative
services in connection with the operations of the Fund, subject to
supervision by the Fund's Board. For its services, SunAmerica receives an
annual fee equal to 0.20% of average daily net assets of the Fund. For the
year ended December 31, 2015, the Fund incurred administration fees in the
amount of $675,930.
The Fund has entered into a Distribution Agreement with AIG Capital
Services, Inc. ("ACS" or the "Distributor"), an affiliate of the Adviser.
The Fund has adopted a Distribution Plan on behalf of each class of shares
(each a "Plan" and collectively, the "Plans") in accordance with the
provisions of Rule 12b-1 under the 1940 Act, hereinafter referred to as the
"Class A Plan" and "Class C Plan". In adopting the Plans, the Board
determined that there was a reasonable likelihood that each such Plan would
benefit the Fund and the shareholders of the respective class. The sales
charge and distribution fees of a particular class will not be used to
subsidize the sale of shares of any other class.
Under the Class A Plan and Class C Plan, the Distributor receives payments
from the Fund at an annual rate of 0.10% and 0.50%, respectively, of the
average daily net assets of the Fund's Class A and Class C shares to
compensate the Distributor and certain securities firms for providing sales
and promotional activities for distributing that class of shares. The
distribution costs for which the Distributor may be compensated include fees
paid to broker-dealers that have sold Fund shares, commissions and other
expenses such as those incurred for sales literature, prospectus printing
and distribution and compensation to wholesalers. It is possible that in any
given year, the amount paid to the Distributor under each Class' Plan may
exceed the Distributor's distribution costs as described above. The Plans
provide that the Class A and Class C shares of the Fund will pay the
Distributor an account maintenance fee up to an annual rate of 0.25% of the
aggregate average daily net assets of such class of shares for payments to
compensate the Distributor and certain securities firms for account
maintenance activities. For the year ended December 31, 2015, ACS received
fees (see Statement of Operations) based upon the aforementioned rates. For
the year ended December 31, 2015, ACS received sales charges on Class A
shares of $158,714, of which $79,662 was reallowed to affiliated
broker-dealers and $48,956 to non-affiliated broker-dealers. In addition,
ACS receives the proceeds of contingent deferred sales charges paid by
investors in connection with certain redemptions of Class A and Class C
shares. For the year ended December 31, 2015, ACS received contingent
deferred sales charges of $15,479.
The Fund 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 Fund's
transfer agent in connection with the services that it offers to the
shareholders of the Fund. The Service Agreement, which permits the Fund to
compensate SAFS for services rendered based upon an annual rate of 0.22% of
average daily net assets, is approved annually by the Board. For the year
ended December 31, 2015, the Fund incurred the following expenses, which are
included in the transfer agent fees and expenses payable in the Statement of
Assets and Liabilities and in transfer agent fees and expenses in the
Statement of Operations to compensate SAFS pursuant to the terms of the
Service Agreement.
PAYABLE AT
EXPENSE DECEMBER 31, 2015
-------- -----------------
Class A....................... $304,928 $22,561
Class C....................... 438,029 32,750
28
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2015 -- (CONTINUED)
At December 31, 2015, 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 Fund:
HOLDER PERCENTAGE
------ ----------
Pershing LLC.................. 10%
SunAmerica has contractually agreed to waive fees and/or reimburse expenses
to the extent necessary to cap the Fund's annual operating expenses at 1.45%
for Class A and 1.75% for Class C, of average daily net assets. For purposes
of waived fees and/or reimbursed expense calculations, annual Fund operating
expenses shall not include extraordinary expenses, as determined under GAAP,
such as litigation, or acquired fund fees and expenses, brokerage
commissions and other transactional expenses relating to the purchase and
sale of portfolio securities, interest, taxes and governmental fees and
other expenses not incurred in the ordinary course of the Fund's business.
The expense reimbursements and fee waivers will continue indefinitely,
unless terminated by the Board, including a majority of the Disinterested
Directors. For the year ended December 31, 2015, SunAmerica waived fees
and/or reimbursed expenses as follows: Class A $472,707 and Class C $876,001.
Note 6. Federal Income Taxes
The following details the tax basis distributions as well as the components
of distributable earnings. The tax basis components of distributable
earnings differ from the amounts reflected in the Statement of Assets and
Liabilities by temporary book/tax differences primarily arising from
dividends payable, post October losses, and treatment of defaulted
securities.
DISTRIBUTABLE EARNINGS TAX DISTRIBUTIONS
---------------------------------------- ---------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 2015 FOR THE YEAR ENDED DECEMBER 31, 2015 FOR THE YEAR ENDED DECEMBER 31, 2014
---------------------------------------- ------------------------------------- -------------------------------------
LONG-TERM GAINS/ UNREALIZED LONG-TERM LONG-TERM
ORDINARY CAPITAL AND APPRECIATION/ ORDINARY CAPITAL ORDINARY CAPITAL
INCOME OTHER LOSSES (DEPRECIATION) INCOME GAINS INCOME GAINS
-------- ---------------- -------------- ------------ --------- ------------ ---------
$7,783 $(59,663,371) $(25,878,301) $13,518,809 $-- $15,048,872 $--
CAPITAL LOSS CARRYFORWARDS: At December 31, 2015 for Federal income tax
purposes, the Fund has capital loss carryforwards available to offset future
capital gains of $43,306,204 with $16,003,027 expiring in 2016 and
$27,303,177 expiring in 2017. Additionally, the Fund generated $453,563 and
$15,903,604 of unlimited short-term and long-term capital losses
respectively.+
--------
+ On December 22, 2010, the Regulated Investment Company Modernization Act of
2010 (the "Act") was enacted which changed various technical rules governing
the tax treatment of regulated investment companies. The changes are
generally effective for 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
specified ordinary losses may be deferred and treated as occurring on the
first day of the following year. For the year ended December 31, 2015, the
fund elected to defer $279,903 of Post-October short-term capital losses and
$2,239,568 of Post-October long-term capital losses.
For the year ended December 31, 2015, reclassifications were made to
decrease accumulated net realized gain/(loss) by $12,691 with an offsetting
adjustment to undistributed net investment income of $12,691. The
reclassifications arising from book/tax differences were due primarily to
foreign currency gains and losses.
29
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2015 -- (CONTINUED)
Unrealized appreciation and depreciation in the value of investments at
December 31, 2015 for federal income tax purposes were as follows:
Cost (tax basis).............. $310,416,063
=============
Gross unrealized appreciation. $ 432,846
Gross unrealized depreciation. (26,311,147)
-------------
Net unrealized depreciation... ($ 25,878,301)
=============
Note 7. Line of Credit
The Fund, 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 Fund'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 Fund's cash shortfall exceeds
$100,000.
For the year ended December 31, 2015, the Fund had borrowings outstanding
for 48 days under the line of credit and incurred $3,105 in interest charges
related to these borrowings. The Fund's average amount of debt under the
line of credit for the days utilized was $1,654,948 at a weighted average
interest rate of 1.40%. At December 31, 2015, there were no borrowings
outstanding.
Note 8. Interfund Lending
Pursuant to the exemptive relief granted by the SEC, the Fund is permitted
to participate in an interfund lending program among investment companies
advised by SunAmerica or an affiliate. The interfund lending program allows
the participating funds to borrow money from and lend money to each other
for temporary or emergency purposes. An interfund loan will be made under
this facility only if the participating funds receive a more favorable
interest rate than would otherwise be available from a typical bank for a
comparable transaction. For the year ended December 31, 2015, the Fund did
not participate in this program.
Note 9. Investment Concentration
The Fund invests primarily in participations and assignments, or acts as a
party to the primary lending syndicate of a variable rate senior loan
interest to United States corporations, partnerships, and other entities. If
the lead lender in a typical lending syndicate becomes insolvent, enters
receivership or, if not FDIC insured, enters into bankruptcy, the Fund may
incur certain costs and delays in receiving payment, or may suffer a loss of
principal and/or interest. When the Fund purchases a participation of a
senior loan interest, the Fund typically enters into a contractual agreement
with the lender or other third party selling the participation but not with
the borrower directly. As such, the Fund is subject to the credit risk of
the borrower, selling participant, lender or other persons positioned
between the Fund and the borrower.
Note 10. Unfunded Loan Commitments
At December 31, 2015, the Fund had the following unfunded loan commitments
which could be extended at the option of the Borrower:
BORROWER TYPE MATURITY DATE PRINCIPAL AMOUNT VALUE
-------- ------------ ------------- ---------------- --------
Kenan Advantage Group, Inc.... Delayed Draw 01/23/2017 $155,000 $152,288
30
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of SunAmerica Senior Floating Rate
Fund, Inc:
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of SunAmerica Senior Floating Rate
Fund, Inc. (the "Fund") at December 31, 2015, the results of its operations for
the year then ended, the changes in its net assets for the two years then ended
and the financial highlights for each of the five years then ended, in
conformity with accounting principles generally accepted in the United States
of America. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with the standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan and
perform the audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation of
securities at December 31, 2015 by correspondence with the custodian, brokers
and selling or agent banks, and the application of alternative auditing
procedures where securities purchased had not been received, provide a
reasonable basis for our opinion expressed above.
PricewaterhouseCoopers LLP
Houston, Texas
February 26, 2016
31
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
DIRECTORS AND OFFICERS INFORMATION -- DECEMBER 31, 2015 -- (UNAUDITED)
The following table contains basic information regarding the Trustees and
Officers that oversee operations of the Funds and other investment companies
within the Fund complex.
NUMBER OF
POSITION TERM OF PORTFOLIOS IN
NAME, HELD WITH OFFICE AND FUND COMPLEX
ADDRESS AND SUNAMERICA LENGTH OF PRINCIPAL OCCUPATIONS OVERSEEN BY
AGE* COMPLEX TIME SERVED(4) DURING PAST 5 YEARS TRUSTEE(1)
----------------------- ------------ -------------- --------------------------------- -------------
DISINTERESTED TRUSTEES
Dr. Judith L. Craven Trustee 2000- Retired. 77
Age: 70 present
William F. Devin Trustee 1998- Retired. 77
Age: 77 present
Richard W. Grant Trustee 2011- Retired. Prior to that, attorney 28
Age: 70 Chairman present and partner at Morgan Lewis
of the & Bockius LLP (1989 to
Board 2011).
Stephen J. Gutman Trustee 2001- Senior Vice President and 28
Age: 72 present Associate Broker, The
Corcoran Group (real estate)
(2002 to present);
President, SJG Marketing,
Inc. (2009 to present).
INTERESTED TRUSTEES
Peter A. Harbeck(3) Trustee 2001- President, CEO and Director, 140
Age: 62 present SunAmerica. (1995 to
present); Director, AIG
Capital Services, Inc. ("ACS")
(1993 to present); Chairman,
Advisor Group, Inc. (2004 to
present).
William J. Shea(5) Trustee 2004- Executive Chairman, Caliber, 28
Age: 68 present Inc. (formerly Lucid, Inc.),
(medical devices) (2007 to
present).
OFFICERS
John T. Genoy President 2007- Chief Financial Officer, N/A
Age: 47 present SunAmerica (2002 to
present); Senior Vice
President, SunAmerica (2003
to present); Chief Operating
Officer, SunAmerica (2006
to present).
Gregory N. Bressler Secretary 2005- Senior Vice President and N/A
Age: 49 present General Counsel,
SunAmerica (2005 to
present).
Kathleen Fuentes Chief Legal 2013- Vice President and Deputy N/A
Age: 46 Officer and present General Counsel,
Assistant SunAmerica (2006 to
Secretary present).
James Nichols Vice 2006- Director, President and CEO, N/A
Age: 49 President present ACS (2006 to present);
Senior Vice President,
SunAmerica (2002 to
present).
NAME,
ADDRESS AND OTHER DIRECTORSHIPS
AGE* HELD BY TRUSTEE(2)
----------------------- -------------------------------
DISINTERESTED TRUSTEES
Dr. Judith L. Craven Director, Sysco Corp. (1996
Age: 70 to present); Director, Luby's,
Inc. (1998 to present).
William F. Devin None
Age: 77
Richard W. Grant None
Age: 70
Stephen J. Gutman None
Age: 72
INTERESTED TRUSTEES
Peter A. Harbeck(3) None
Age: 62
William J. Shea(5) Director, Boston Private
Age: 68 Financial Holdings (2004 to
present); Chairman,
Demoulas Supermarkets
(1999 to present).
OFFICERS
John T. Genoy N/A
Age: 47
Gregory N. Bressler N/A
Age: 49
Kathleen Fuentes N/A
Age: 46
James Nichols N/A
Age: 49
32
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
DIRECTORS AND OFFICERS INFORMATION -- DECEMBER 31, 2015 -- (UNAUDITED)
(CONTINUED)
NUMBER OF
POSITION TERM OF PORTFOLIOS IN
NAME, HELD WITH OFFICE AND FUND COMPLEX
ADDRESS AND SUNAMERICA LENGTH OF PRINCIPAL OCCUPATIONS OVERSEEN BY OTHER DIRECTORSHIPS
AGE* COMPLEX TIME SERVED(4) DURING PAST 5 YEARS TRUSTEE(1) HELD BY TRUSTEE(2)
--------------------- ----------- -------------- ------------------------------- ------------- -------------------
OFFICERS
Katherine Stoner Vice 2011- Vice President, SunAmerica N/A N/A
Age: 59 President present (2011 to present); Vice
and President, The Variable
Chief Annuity Life Insurance
Compliance Company ("VALIC"), and
Officer Western National Life
("CCO") Insurance Company ("WNL")
and American General
Distributors, Inc. (2006 to
present); Deputy General
Counsel and Secretary,
VALIC and WNL (2007 to
2011); Vice President, VALIC
Financial Advisors, Inc. (2010
to 2011); and VALIC
Retirement Services
Company (2010 to present).
Kara Murphy Vice 2014- Chief Investment Officer, N/A N/A
Age: 43 President present SunAmerica (2013 to
present); Director of
Research, SunAmerica (2007
to 2013).
Gregory R. Kingston Treasurer 2014- Vice President, SunAmerica N/A N/A
Age: 50 present (2001 to present); Head of
Mutual Fund Administration,
SunAmerica (2014 to
present).
Shawn Parry Vice 2014- Vice President, SunAmerica N/A N/A
Age: 43 President present (2014 to present); Assistant
and Vice President, SunAmerica
Assistant (2005 to 2014).
Treasurer
Donna McManus Vice 2014- Vice President, (2014 to N/A N/A
Age: 55 President present present); Managing Director,
and BNY Mellon (2009-2014).
Assistant
Treasurer
Matthew J. Hackethal Anti-Money 2006- Chief Compliance Officer, N/A N/A
Age: 44 Laundering present SunAmerica (2006 to
Compliance present).
Officer
--------
* The business address for each Trustee is the Harborside Financial Center,
3200 Plaza 5, Jersey City, NJ 07311-4992.
(1) The "Fund Complex" means two or more registered investment companies that
hold themselves out to investors as related companies for purposes of
investment services or have a common investment adviser or an investment
adviser that is an affiliated person of the Adviser. The "Fund Complex"
includes the Fund (1 fund), SunAmerica Money Market Funds Inc. (1 fund),
SunAmerica Equity Funds (2 funds), SunAmerica Income Funds (3 funds),
SunAmerica Series, Inc. (6 portfolios), Anchor Series Trust (8 portfolios),
SunAmerica Specialty Series (7 funds), SunAmerica Series Trust
(43 portfolios), VALIC Company I (34 portfolios), VALIC Company II (15
funds), Seasons Series Trust (20 portfolios).
(2) Directorships of companies required to report to the SEC under the
Securities Exchange Act of 1934 (i.e., "public companies") or other
investment companies registered under the 1940 Act.
(3) Interested Trustee, as defined within the 1940 Act, because he is an
officer and a director of the Adviser and a director of the principal
underwriter of the Fund.
33
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
DIRECTORS AND OFFICERS INFORMATION -- DECEMBER 31, 2015 -- (UNAUDITED)
(CONTINUED)
(4) Trustees serve until their successors are duly elected and qualified. Each
officer will hold office for an indefinite term, until the date he or she
resigns or retires or until his/her successor is duly elected and qualifies.
(5) Interested Trustee, as defined within the 1940 Act, because of a family
member affiliation with Wellington.
Additional information concerning the Trustees is contained in the Statement of
Additional Information which is available, without charge, by calling (800)
858-8850.
34
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
SHAREHOLDER TAX INFORMATION -- (UNAUDITED)
Certain tax information regarding the Fund is required to be provided to
shareholders based upon the Fund's income and distributions for the taxable
year ended December 31, 2015. The information necessary to complete your income
tax returns is included with your Form 1099-DIV, which will be mailed to
shareholders in early 2016.
During the year ended December 31, 2015, the Fund paid the following dividends
along with the percentage of ordinary income dividends that qualified for the
70% dividends received deductions for corporations:
NET QUALIFYING % FOR
LONG-TERM THE 70% DIVIDENDS
CAPITAL GAINS RECEIVED DEDUCTION
- ------------- ------------------
Class A............................ $ -- 0.06%
Class C............................ -- 0.06
For the year ended December 31, 2015, certain dividends paid by the Fund may be
subject to a maximum tax rate of 15%, as provided by the Jobs and Growth Tax
Relief Reconciliation Act of 2003. Of the distributions paid during the fiscal
year, $7,449 represents the maximum amount that may be considered qualified
dividend income.
35
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
COMPARISON: FUND VS. INDEX -- (UNAUDITED)
As required by the Securities and Exchange Commission, the graph on the
following pages compares the performance of a $10,000 investment in the Fund to
a similar investment in the index. Please note that the term "inception," as
used herein, reflects the date on which a specific class of shares commenced
operations. It is important to note that the Fund is a professionally managed
mutual fund while the index is not available for investment and is unmanaged.
The comparison is shown for illustrative purposes only. The graph presents the
performance of Class C shares of the Fund. The performance of the other class
will vary based upon the difference in sales charges and fees assessed to
shareholders of that class. Past performance does not predict future results.
36
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
COMPARISON: FUND VS. INDEX -- (UNAUDITED) (CONTINUED)
The Senior Floating Rate Fund (Class C) returned -1.85%, underperforming its
benchmark, the S&P/LSTA Leveraged Loan Index (LLI)*, which returned -0.69% for
the annual period ended December 31, 2015.
In aggregate, quality allocation detracted from relative performance.
Compared to the LLI, an underweight position in single-B rated loans and an
overweight position in loans rated CCC and lower detracted from relative
performance. Industry allocation overall also hurt the Fund's relative results,
driven primarily by an overweight position in the energy industry, which was
the weakest performer in the LLI during the annual period. Selection within the
energy and leisure industries detracted as well. Among individual loans,
significant detractors from the Fund's absolute returns included independent
oil and gas acquisition and production company American Energy-Marcellus,
retail electric provider Energy Future Holdings (formerly TXU), offshore
drilling rig operator Seadrill Partners and oil and gas exploration and
production companies Templar Energy and Samson Investment.
On the positive side, contributing to the Fund's relative performance,
albeit modestly, was its individual issue selection among BB-rated and CCC and
lower-rated loans. Underweighted allocations to the utilities and metals and
mining industries also boosted the Fund's relative results. Individual security
selection overall added value, especially in the utilities, technology,
financial institutions, health care and retailers industries. Among the
individual loans that contributed most positively to the Fund's absolute
returns were those of global payment technology solutions company First Data,
Luxembourg-based fixed and mobile telecommunication services provider Altice
Finco, patient care services provider Surgery Center Holdings, workforce
management software and services company Kron AD Beograd, and U.K.-based global
wholesale and reinsurance broker Cooper Gay Swett & Crawford.
--------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
* The S&P/LSTA Leveraged Loan Index (LLI) reflects the market-weighted
performance of U.S. dollar-denominated institutional leveraged loan portfolios.
The LLI is the only domestic leveraged loan index that utilizes real-time
market weightings, spreads and interest payments. Indices are not managed and
an investor cannot invest directly into an index.
Securities listed may or may not be a part of current portfolio construction.
The Fund is not a money market fund and its net asset value may fluctuate.
Investments in loans involve certain risks including nonpayment of principal
and interest; collateral impairment; non-diversification and borrower industry
concentration; and lack of an active trading market, in certain cases, which
may impair the Fund's ability to obtain full value for loans sold. The Fund may
invest all or substantially all of its assets in loans or other securities
(e.g., unsecured loans or high yield securities) that are rated below
investment grade, or in comparable unrated securities. Credit risks include the
possibility of a default on the loan or bankruptcy of the borrower. The value
of these loans is subject to a greater degree of volatility in response to
interest rate fluctuations.
37
SUNAMERICA SENIOR FLOATING RATE FUND, INC.
COMPARISON: FUND VS. INDEX -- (UNAUDITED) (CONTINUED)
Over the past ten years, $10,000 invested in Senior Floating Rate Fund Class C
shares would have increased to $12,933. The same amount invested in securities
mirroring the performance of the S&P/LSTA Leveraged Loan Index++ would be
valued at $15,251, while the Barclays U.S. Aggregate Bond Index** would be
valued at $15,552.
[CHART]
Senior Floating S&P/LSTA Leveraged Barclays US Aggregate
Rate Class C Loan Index++ Bond Index**
--------------- ------------------- ----------------------
12/31/2005 $10,000.00 $10,000.00 $10,000.00
1/31/2006 10,068.00 10,069.20 10,000.61
2/28/2006 10,134.00 10,132.94 10,033.77
3/31/2006 10,205.00 10,194.24 9,935.33
4/30/2006 10,257.00 10,243.99 9,917.35
5/31/2006 10,267.00 10,269.70 9,906.73
6/30/2006 10,299.00 10,298.56 9,927.75
7/31/2006 10,347.00 10,356.95 10,061.96
8/31/2006 10,416.00 10,420.75 10,216.02
9/30/2006 10,471.00 10,476.71 10,305.76
10/31/2006 10,551.00 10,546.17 10,373.94
11/30/2006 10,585.00 10,602.07 10,494.31
12/31/2006 10,654.00 10,677.34 10,433.38
1/31/2007 10,744.00 10,770.57 10,429.08
2/28/2007 10,817.00 10,844.61 10,589.90
3/31/2007 10,850.00 10,887.95 10,590.24
4/30/2007 10,916.00 10,952.63 10,647.36
5/31/2007 10,971.00 11,019.31 10,566.62
6/30/2007 10,990.00 11,043.87 10,535.38
7/31/2007 10,637.00 10,674.16 10,623.27
8/31/2007 10,649.00 10,698.98 10,753.48
9/30/2007 10,812.00 10,908.03 10,835.03
10/31/2007 10,882.00 11,012.17 10,932.38
11/30/2007 10,701.00 10,859.32 11,128.96
12/31/2007 10,700.00 10,893.26 11,160.23
1/31/2008 10,313.00 10,541.40 11,347.75
2/29/2008 10,040.00 10,277.01 11,363.45
3/31/2008 9,986.00 10,267.76 11,402.21
4/30/2008 10,319.00 10,648.14 11,378.41
5/31/2008 10,449.00 10,748.25 11,294.96
6/30/2008 10,488.00 10,775.10 11,285.90
7/31/2008 10,331.00 10,692.72 11,276.68
8/31/2008 10,309.00 10,678.76 11,383.66
9/30/2008 9,639.00 10,022.01 11,230.78
10/31/2008 8,064.00 8,697.38 10,965.69
11/30/2008 7,122.00 7,957.67 11,322.61
12/31/2008 6,588.00 7,723.29 11,745.08
1/31/2009 6,977.00 8,294.98 11,641.42
2/28/2009 6,920.00 8,359.63 11,597.46
3/31/2009 6,904.00 8,480.21 11,758.68
4/30/2009 7,751.00 9,217.62 11,814.96
5/31/2009 8,387.00 9,779.98 11,900.63
6/30/2009 8,932.00 10,208.70 11,968.28
7/31/2009 9,390.00 10,692.27 12,161.36
8/31/2009 9,664.00 10,934.40 12,287.28
9/30/2009 10,039.00 11,284.11 12,416.38
10/31/2009 10,224.00 11,346.59 12,477.70
11/30/2009 10,277.00 11,375.78 12,639.22
12/31/2009 10,558.00 11,710.20 12,441.61
1/31/2010 10,851.00 11,949.21 12,631.69
2/28/2010 10,858.00 11,983.53 12,678.84
3/31/2010 11,110.00 12,253.38 12,663.30
4/30/2010 11,277.00 12,433.50 12,795.13
5/31/2010 11,037.00 12,153.46 12,902.75
6/30/2010 10,960.00 12,096.70 13,105.09
7/31/2010 11,107.00 12,282.70 13,244.97
8/31/2010 11,157.00 12,324.32 13,415.37
9/30/2010 11,295.00 12,497.42 13,429.68
10/31/2010 11,448.00 12,693.11 13,477.46
11/30/2010 11,489.00 12,738.06 13,399.99
12/31/2010 11,615.00 12,896.21 13,255.50
1/31/2011 11,791.00 13,150.34 13,270.89
2/28/2011 11,881.00 13,211.23 13,304.10
3/31/2011 11,878.00 13,209.38 13,311.45
4/30/2011 11,930.00 13,293.57 13,480.46
5/31/2011 11,927.00 13,281.58 13,656.40
6/30/2011 11,880.00 13,232.44 13,616.40
7/31/2011 11,889.00 13,251.83 13,832.48
8/31/2011 11,310.00 12,668.12 14,034.59
9/30/2011 11,350.00 12,722.40 14,136.65
10/31/2011 11,626.00 13,090.23 14,151.86
11/30/2011 11,578.00 13,025.91 14,139.56
12/31/2011 11,622.00 13,092.31 14,294.97
1/31/2012 11,824.00 13,378.12 14,420.42
2/29/2012 11,905.00 13,481.29 14,417.13
3/31/2012 11,993.00 13,584.84 14,338.14
4/30/2012 12,064.00 13,685.15 14,497.14
5/31/2012 11,990.00 13,592.70 14,628.29
6/30/2012 12,061.00 13,686.55 14,634.03
7/31/2012 12,176.00 13,844.97 14,835.89
8/31/2012 12,295.00 14,000.58 14,845.61
9/30/2012 12,427.00 14,155.78 14,865.98
10/31/2012 12,442.00 14,200.54 14,895.22
11/30/2012 12,484.00 14,244.65 14,918.73
12/31/2012 12,575.00 14,356.64 14,897.48
1/31/2013 12,723.00 14,509.40 14,793.29
2/28/2013 12,732.00 14,539.81 14,867.48
3/31/2013 12,819.00 14,659.64 14,879.34
4/30/2013 12,934.00 14,747.11 15,029.93
5/31/2013 12,928.00 14,774.99 14,761.65
6/30/2013 12,844.00 14,687.73 14,533.35
7/31/2013 12,962.00 14,832.72 14,553.21
8/31/2013 12,956.00 14,827.16 14,478.78
9/30/2013 12,964.00 14,863.33 14,615.85
10/31/2013 13,067.00 14,971.59 14,734.01
11/30/2013 13,122.00 15,045.63 14,678.90
12/31/2013 13,174.00 15,115.85 14,595.95
1/31/2014 13,258.00 15,214.78 14,811.62
2/28/2014 13,277.00 15,241.59 14,890.35
3/31/2014 13,316.00 15,296.60 14,864.99
4/30/2014 13,304.00 15,313.88 14,990.46
5/31/2014 13,341.00 15,419.74 15,161.09
6/30/2014 13,409.00 15,508.41 15,168.92
7/31/2014 13,383.00 15,503.98 15,130.86
8/31/2014 13,406.00 15,527.97 15,297.91
9/30/2014 13,314.00 15,435.31 15,194.08
10/31/2014 13,337.00 15,475.28 15,343.41
11/30/2014 13,378.00 15,552.15 15,452.26
12/31/2014 13,176.00 15,356.99 15,466.70
1/31/2015 13,186.00 15,407.95 15,791.03
2/28/2015 13,391.00 15,625.32 15,642.56
3/31/2015 13,434.00 15,683.37 15,715.20
4/30/2015 13,558.00 15,827.65 15,658.82
5/31/2015 13,587.00 15,857.36 15,621.11
6/30/2015 13,514.00 15,791.03 15,450.78
7/31/2015 13,489.00 15,790.05 15,558.18
8/31/2015 13,367.00 15,679.60 15,535.83
9/30/2015 13,255.00 15,577.77 15,640.92
10/31/2015 13,249.00 15,549.34 15,643.51
11/30/2015 13,089.00 15,413.13 15,602.18
12/31/2015 12,933.00 15,251.29 15,551.76
Class A Class C
Senior -------------------------------------
Floating Average Average
Rate Annual Cumulative Annual Cumulative
Fund# Return Return+ Return Return+
- -------------------------------------
1 Year Return (5.08)% (1.42)% (2.79)% (1.85)%
-------------------------------------------------------
5 Year Return 1.70% 13.02% 2.17% 11.35%
-------------------------------------------------------
10 Year Return N/A N/A 2.61% 29.33%
-------------------------------------------------------
Since Inception* 2.19% 27.02% 3.42% 79.21%
-------------------------------------------------------
# For the purposes of the table, it has been assumed that
the maximum sales charge of 3.75% with respect to Class
A shares was deducted from the initial investment in
the Fund and that the CDSCs with respect to the Class C
shares have been deducted, as applicable.
+ Cumulative returns do not include sales load. If sales
load had been included, the return would have been
lower.
* Inception date: Class A: 10/04/2006; Class C:
08/31/1998.
++ The S&P/LSTA Leveraged Loan Index (LLI) reflects the
market-weighted performance of U.S. dollar-denominated
institutional leveraged loan portfolios. The LLI is the
only domestic leveraged loan index that utilizes
real-time market weightings, spreads and interest
payments.
** The Barclays U.S. Aggregate Bond Index represents
securities that are U.S. domestic, taxable and dollar
denominated. The index covers components for government
and corporate securities, mortgage pass-through
securities and asset-backed securities.
Indices are not managed and an investor cannot invest
directly into an index.
The Fund operated as a closed-end investment company with
monthly repurchase offers until October 4, 2006, whereupon
it converted to an open-end investment company.
Information in the graph and table reflects performance of
the Fund as a closed-end investment company through
October 3, 2006, and the Fund may have performed
differently if it were an open-end investment company
prior to that date.
For the 12 month period ended December 31, 2015, the
SunAmerica Senior Floating Rate Class C returned (2.79)%
compared to (0.69)% for the S&P/LSTA Leveraged Loan Index
and 0.55% for the Barclays U.S. Aggregate Bond Index. (The
performance data and graph do not reflect the deduction of
taxes that a shareholder would pay on fund distributions
or the redemption of fund shares.)
--------
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND IS NO GUARANTEE OF
FUTURE RESULTS. Maximum Sales Charge: Class A: 3.75%; Contingent Deferred Sales
Charge (CDSC): Class C: 1.00% CDSC. The fund's daily net asset values are not
guaranteed and shares are not insured by the FDIC, the Federal Reserve Board or
any other agency. The investment return and principal value of an investment
will fluctuate so that an investor's shares, when redeemed, may be higher or
lower than the original cost. Current performance may be higher or lower than
that shown. Performance as of the most recent month end is available at
www.safunds.com
38
[LOGO] AIG Sun America
Mutual Funds
HARBORSIDE FINANCIAL CENTER
3200 PLAZA 5
JERSEY CITY, NJ 07311-4992
DIRECTORS CUSTODIAN DISCLOSURE OF QUARTERLY
Dr. Judith L. Craven State Street Bank and PORTFOLIO HOLDINGS
William F. Devin Trust Company The Fund is required to
Richard W. Grant One Lincoln Street file its com-plete
Stephen J. Gutman Boston, MA 02111 schedule of portfolio
Peter A. Harbeck VOTING PROXIES ON FUND holdings with the U.S.
William J. Shea PORTFOLIO SECURITIES Securities and Exchange
OFFICERS A description of the Commission for its first
John T. Genoy, President policies and proce-dures and third fiscal quarters
and Chief Executive that the Fund uses to on Form N-Q. The Fund's
Officer determine how to vote Forms N-Q are available
James Nichols, Vice proxies related to on the U.S. Securities
President securities held in the and Exchange Commission's
Katherine Stoner, Vice Fund's portfolio, which website at
President and is available in the http://www.sec.gov. You
Chief Compliance Fund's Statement of can also review and
Officer Additional Information obtain copies of the
Gregory N. Bressler, may be ob-tained without Forms N-Q at the U.S.
Secretary charge upon request, by Securities and Exchange
Gregory R. Kingston, calling (800) 858-8850. Commission's Public
Treasurer This in-formation is also Refer-ence Room in
Kathleen Fuentes, Chief available from the EDGAR Washington, DC
Legal Officer and database on the U.S. (information on the
Assistant Secretary Secu-rities and Exchange operation of the Public
Matthew J. Hackethal, Commission's website at Reference Room may be
Anti-Money Laundering http://www.sec.gov. ob-tained by calling
Compliance Officer DELIVERY OF SHAREHOLDER 1-800-SEC-0330).
Donna McManus, Vice DOCUMENTS PROXY VOTING RECORD ON
President and The Fund has adopted a FUND PORTFOLIO SECURITIES
Assistant Treasurer policy that allows it to Information regarding how
Shawn Parry, Vice send only one copy of the the Fund voted proxies
President and Fund's prospectus, proxy relating to securities
Assistant Treasurer material, annual report held in the Fund's
INVESTMENT ADVISER and semi-annual report portfolio during the most
SunAmerica Asset (the "shareholder recent twelve month
Management, LLC documents") to period ended June 30 is
Harborside Financial shareholders with available, once filed
Center multiple accounts with the U.S. Securities
3200 Plaza 5 residing at the same and Exchange Commis-sion,
Jersey City, NJ "household." This without charge, upon
07311-4992 practice is called request, by calling
DISTRIBUTOR householding and reduces (800) 858-8850 or on the
AIG Capital Services, Fund expenses, which U.S. Securities and
Inc. benefits you and other Exchange Commission's
Harborside Financial shareholders. Unless the website at
Center Fund receives http://www.sec.gov.
3200 Plaza 5 instructions to the This report is submitted
Jersey City, NJ con-trary, you will only solely for the general
07311-4992 receive one copy of the information of
SHAREHOLDER SERVICING shareholder documents. shareholders of the Fund.
AGENT The Fund will continue to Distribution of this
SunAmerica Fund household the report to persons other
Services, Inc. share-holder documents than shareholders of the
Harborside Financial indefinitely, until we Fund is authorized only
Center are instructed otherwise. in connection with a
3200 Plaza 5 If you do not wish to currently effective
Jersey City, NJ participate in prospectus, setting forth
07311-4992 householding, please details of the Fund,
TRANSFER AGENT contact Shareholder which must precede or
State Street Bank and Services at (800) accompany this report.
Trust Company 858-8850 ext. 6010 or
P.O. Box 219373 send a written request
Kansas City, MO 64141 with your name, the name
of your fund(s) and your
account number(s) to
SunAmerica Mutual Funds
c/o BFDS, P.O. Box
219186, Kansas City MO,
64121-9186. We will
resume individual
mailings for your account
within thirty (30) days
of receipt of your
request.
[GRAPHIC]
GO PAPERLESS!!
DID YOU KNOW THAT YOU HAVE THE OPTION TO
RECEIVE YOUR SHAREHOLDER REPORTS ONLINE?
By choosing this convenient service, you will no longer receive paper copies of
Fund documents such as annual reports, semi-annual reports, prospectuses and
proxy statements in the mail. Instead, you are provided with quick and easy
access to this information via the Internet.
Why Choose Electronic Delivery?
IT'S QUICK -- Fund documents will be received faster than via traditional mail.
IT'S CONVENIENT -- Elimination of bulky documents from personal files.
IT'S COST EFFECTIVE -- Reduction of your Fund's printing and mailing costs.
TO SIGN UP FOR ELECTRONIC DELIVERY, FOLLOW
THESE SIMPLE STEPS:
1 GO TO WWW.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
SFANN - 12/15
[LOGO]
Sun America
Mutual Funds
Item 2. Code of Ethics
The SunAmerica Senior Floating Rate Fund, Inc. (the "registrant") has
adopted a Code of Ethics applicable to its Principal Executive and
Principal Accounting Officers pursuant to Section 406 of the Sarbanes-Oxley
Act of 2002. During the fiscal year ended 2015, there were no reportable
amendments, waivers or implicit waivers to a provision of the Code of
Ethics that applies to the registrant's Principal Executive and Principal
Accounting Officers.
Item 3. Audit Committee Financial Expert.
Currently, the registrant does not have an Audit Committee member who
possesses all of the attributes required to be an "audit committee
financial expert," as defined in instruction 2(b) of Item 3 of Form N-CSR.
However, the Board of Directors believes that the members of the Audit
Committee have substantial experience relating to the review of financial
statements and the operations of audit committees. Accordingly, the Board
believes that the members are qualified to evaluate the registrant's
financial statements, supervise the registrant's preparation of its
financial statements, and oversee the work of the registrant's independent
auditors.
Item 4. Principal Accountant Fees and Services.
(a)--(d) Aggregate fees billed to the registrant for the last two fiscal
years for professional services rendered by the registrant's principal
accountant were as follows:
2014 2015
------- --------
(a) Audit Fees $97,016 $101,531
(b) Audit-Related Fees $ 0 $ 0
(c) Tax Fees $14,960 $ 15,409
(d) All Other Fees $ 0 $ 0
Audit Fees include amounts related to the audit of the registrant's annual
financial statements and services normally provided by the principal
accountant in connection with statutory and regulatory filings. Tax Fees
principally include tax compliance, tax advice, tax planning and
preparation of tax returns.
Aggregate fees billed to the investment adviser and Adviser Affiliates (as
defined below in Item 4(e)) that are required to be pre-approved pursuant
to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X for the last two
fiscal years for services rendered by the registrant's principal accountant
were as follows:
2014 2015
---- -------
(b) Audit-Related Fees $ 0 $ 0
(c) Tax Fees $ 0 $ 0
(d) All Other Fees $ 0 $17,640
(e) (1) The registrant's audit committee pre-approves all audit services
provided by the registrant's principal accountant for the registrant
and all non-audit services provided by the registrant's principal
accountant for the registrant, its investment adviser and any entity
controlling, controlled by, or under common control with the
investment adviser ("Adviser Affiliates") that provides ongoing
services to the registrant, if the engagement by the investment
adviser or Adviser Affiliate relates directly to the operations and
financial reporting of the registrant. The audit committee has not
presently established any pre-approval policies and procedures that
permit the pre-approval of the above services other than by the full
audit committee. Certain de minimis exceptions are allowed for non-
audit services in accordance with Rule 2-01(c)(7)(i)(C) of Regulation
S-X as set forth in the registrant's audit committee charter.
(2) No services included in (b)-(d) above in connection with fees
billed to the registrant or the investment adviser or Adviser
Affiliates were approved pursuant to paragraph (c)(7)(i)(C) of Rule
2-01 of Regulation S-X.
(f) Not applicable.
(g) The aggregate fees billed for the most recent fiscal year and the
preceding fiscal year by the registrant's principal accountant for
non-audit services rendered to the registrant, its investment adviser,
and Adviser Affiliates that provides ongoing services to the
registrant for 2014 and 2015 were $14,960 and $52,074, respectively.
(h) Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
Included in Item 1 to the Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board of Directors that were
implemented after the registrant last provided disclosure in response to
the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407)
(as required by 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this
Item 10.
Item 11. Controls and Procedures.
(a) An evaluation was performed within 90 days of the filing of this
report, under the supervision and with the participation of the
registrant's management, including the President and Treasurer, of the
effectiveness of the design and operation of the registrant's
disclosure controls and procedures (as defined under Rule 30a-3(c)
under the Investment Company Act of 1940 (17 CFR 270.30a-3(c))). Based
on that evaluation, the registrant's management, including the
President and Treasurer, concluded that the registrant's disclosure
controls and procedures are effective.
(b) There was no change in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940 (17 CFR 270.30a-3(d))) that occurred during the
registrant's last fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially
affect, the registrant's internal contro1 over financial reporting.
Item 12. Exhibits.
(a) (1) Code of Ethics applicable to its Principal Executive and Principle
Accounting Officers pursuant to Section 406 of the Sarbanes-Oxley Act
of 2002 attached hereto as Exhibit 99.406. Code of Ethics.
(2) Certifications pursuant to Rule 30a-2(a) under the Investment
Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit
99.CERT.
(3) Not applicable.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(a)) and Section 906 of the Sarbanes-
Oxley Act of 2002 attached hereto as Exhibit 99.906.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
SunAmerica Senior Floating Rate Fund, Inc.
By: /s/ John T. Genoy
------------------------------------
John T. Genoy
President
Date: March 9, 2016
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: March 9, 2016
By: /s/ Gregory R. Kingston
------------------------------------
Gregory R. Kingston
Treasurer
Date: March 9, 2016