================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------- FORM N-CSR ---------- CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-08727 SunAmerica Senior Floating Rate Fund, Inc. -------------------------------------------------- (Exact name of registrant as specified in charter) Harborside Financial Center, 3200 Plaza 5, Jersey City, NJ 07311 ---------------------------------------------------------------- (Address of principal executive offices) (Zip code) John T. Genoy Senior Vice President SunAmerica Asset Management, 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: June 30, 2016 ================================================================================ Item 1. Reports to Stockholders [GRAPHIC] SEMI-ANNUAL REPORT 2016 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 APPROVAL OF THE INVESTMENT ADVISORY AND SUBADVISORY AGREEMENTS.......................................... 31 JUNE 30, 2016 SEMI-ANNUAL REPORT SHAREHOLDERS' LETTER -- (unaudited) Dear Shareholders: We are pleased to present this semi-annual report for the SunAmerica Senior Floating Rate Fund, Inc. (the "Fund") for the six months ended June 30, 2016. The semi-annual period was a volatile one for the fixed income markets as it was for most other asset classes as well. Early in the first calendar quarter of 2016, falling oil prices, concerns about slowing economic growth in China and questions about the efficacy of central bank monetary policies sparked a broad sell-off in credit markets, while government bond prices benefited from their higher-quality ratings. Markets reversed course in mid-February 2016, as the major central banks around the world adopted more dovish stances in an effort to ease market risk (A dovish stance tends to suggest lower interest rates). Included in this dovish positioning was the U.S. Federal Reserve (the "Fed"), which refrained from raising interest rates at its March meeting and pared back its forecasts for interest rate increases in 2016 from four to two citing global uncertainties. A rebound in crude oil prices further supported the rally in global financial markets. For the first quarter of 2016 overall, global government bond yields fell sharply, while non-government bond sectors posted positive absolute returns, even though performance was mixed on a relative basis. Accommodative global monetary policy, constructive oil and commodity prices and near-term stabilization in China supported equity markets and spread sectors as the second quarter of 2016 began. Most developed market government bond yields ended the month of April higher, as the global rally across equities and commodities reduced demand for high quality government debt. The exception was in Japan, where yields fell. In May 2016, hawkish Fed minutes, record corporate issuance and an unexpected interest rate cut by the Reserve Bank of Australia were the major driving forces of fixed income market performance (Hawkish language tends to suggest higher interest rates; opposite of dovish). Most central banks left policy rates unchanged during the month. In turn, most developed market yields ended May 2016 lower, with the exception of the U.S., where yields increased. Having performed strongly in the previous two months, global credit markets took a breather in May, with spreads widening modestly. Despite hawkish Fed rhetoric in May, a weak U.S. payroll report in early June and growing uncertainty over Brexit started to unwind some of those expectations. The Fed chose to err on the side of caution by holding rates steady at its June meeting amid lingering uncertainty about the strength of the global economy as well as the reluctance to hike ahead of the EU referendum vote in the UK. In June 2016, Britain's decision to leave the European Union led to a spike in global financial market volatility and a shift toward assets considered to be less risky. Most global government bond yields declined and credit spreads widened. Against this backdrop, floating rate loans, as represented by the S&P/LSTA Leveraged Loan Index/*/, returned 4.51% during the six month period ended June 30, 2016, modestly underperforming the broad U.S. fixed income market. The Barclays U.S. Aggregate Bond Index/*/ returned 5.31% for the same time period. The first quarter of 2016 saw the leveraged loan sector's best quarterly return since the first quarter of 2015, attributable almost entirely to March 2016 performance, and the second quarter of 2016 saw even stronger returns. The pace of bank loan mutual fund outflows slowed over the semi-annual period, with outflows of US$8.1 billion during the first half of the year, compared to US$22.2 billion in calendar year 2015./**/ Over the first half of 2016, supply/demand trends were mixed. While below-average issuance reduced supply, the Fed's more gradual path to normalizing monetary policy along with lower issuance of collateralized loan obligations ("CLOs"), one of the main sources of demand for bank loans, during the semi-annual period curbed demand somewhat. Although CLO demand has picked up, it remained below 2015's pace.+ Overall, we believe the asset class has many long term potential benefits, including diversification and floating-rate coupons, that will eventually reassert themselves to enhance the relative appeal of bank loans for investors. On the following pages, you will find financial statements and portfolio information for the Fund for the semi-annual period ended June 30, 2016. 2 JUNE 30, 2016 SEMI-ANNUAL REPORT SHAREHOLDERS' LETTER -- (unaudited)(continued) As always, we remain diligent in the management of your assets. We value your ongoing confidence in us and look forward to serving your investment needs in the future. If you have any questions, or require additional information on this or other SunAmerica Funds, we invite you to visit www.safunds.com or call the Shareholder Services Department at 800-858-8850. Sincerely, THE SUNAMERICA SENIOR FLOATING RATE FUND PORTFOLIO MANAGER Jeffrey W. Heuer Wellington Management Company LLP -------- 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. 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. **Source: Lipper, Inc. +Source: S&P Leveraged Commentary & Data. 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 -- JUNE 30, 2016 -- (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 January 1, 2016 and held until June 30, 2016. ACTUAL EXPENSES The "Actual" section of the table provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the column under the heading entitled "Expenses Paid During the Six Months Ended June 30, 2016" to estimate the expenses you paid on your account during this period. The "Expenses Paid During the Six Months Ended June 30, 2016" 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 June 30, 2016" 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 June 30, 2016" 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 June 30, 2016" 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 June 30, 2016" 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 June 30, 2016" 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 -- JUNE 30, 2016 -- (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 JANUARY 1, 2016 JUNE 30, 2016 JUNE 30, 2016* AT JANUARY 1, 2016 JUNE 30, 2016 JUNE 30, 2016* ------------------ ------------- ---------------- ------------------ ----------------- ---------------- Senior Floating Rate Fund# Class A.......... $1,000.00 $1,047.77 $7.38 $1,000.00 $1,017.65 $7.27 Class C.......... $1,000.00 $1,046.26 $8.90 $1,000.00 $1,016.16 $8.77 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 182 days then divided by 366 days (to reflect the one-half year period). These ratios do not reflect transaction costs, including sales charges on purchase payments, contingent deferred sales charges, small account fees and administrative fees, if applicable to your account. Please refer to your Prospectus, your 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 June 30, 2016" and the "Annualized Expense Ratio" would have been higher. 5 SUNAMERICA SENIOR FLOATING RATE FUND, INC. STATEMENT OF ASSETS AND LIABILITIES -- JUNE 30, 2016 -- (UNAUDITED) ASSETS: Investments at value (unaffiliated)*............................................ $265,378,263 Repurchase agreements (cost approximates value)................................. 4,270,000 ------------ Total investments.............................................................. 269,648,263 ------------ Receivable for: Fund shares sold............................................................... 117,627 Dividends and interest......................................................... 2,066,545 Investments sold............................................................... 2,480,980 Prepaid expenses and other assets............................................... 4,943 Due from investment adviser for expense reimbursements/fee waivers.............. 82,914 ------------ Total assets................................................................... 274,401,272 ------------ LIABILITIES: Payable for: Fund shares redeemed........................................................... 445,254 Investments purchased.......................................................... 7,823,625 Investment advisory and management fees........................................ 185,953 Distribution and account maintenance fees...................................... 128,688 Administration fees............................................................ 43,754 Transfer agent fees and expenses............................................... 51,502 Directors' fees and expenses................................................... 729 Other accrued expenses......................................................... 203,599 Dividends payable............................................................... 156,313 Commitments (Note 10)........................................................... 548,767 Due to custodian for foreign cash*.............................................. 37 ------------ Total liabilities.............................................................. 9,588,221 ------------ Net Assets................................................................... $264,813,051 ============ NET ASSETS REPRESENTED BY: Common stock, $.01 par value.................................................... $ 339,316 Additional paid-in capital...................................................... 346,093,478 ------------ 346,432,794 Accumulated undistributed net investment income (loss).......................... (328,188) Accumulated undistributed net realized gain (loss) on investments and foreign exchange transactions.......................................................... (64,831,015) Unrealized appreciation (depreciation) on investments........................... (16,460,540) ------------ Net Assets................................................................... $264,813,051 ============ CLASS A: Net assets...................................................................... $106,771,782 Shares outstanding.............................................................. 13,675,790 Net asset value and redemption price per share.................................. $ 7.81 Maximum sales charge (3.75% of offering price).................................. 0.30 ------------ Maximum offering price to public................................................ 8.11 ============ CLASS C: Net assets...................................................................... $158,041,269 Shares outstanding.............................................................. 20,255,767 Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charges).................................. $ 7.80 ============ *COST Investment securities (unaffiliated)........................................... $281,838,803 ============ Foreign cash................................................................... $ (37) ============ See Notes to Financial Statements 6 SUNAMERICA SENIOR FLOATING RATE FUND, INC. STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS ENDED JUNE 30, 2016 -- (UNAUDITED) INVESTMENT INCOME: Interest (unaffiliated)........................................................... $ 7,221,925 Facility and other fee income (Note 2)............................................ 410,251 ----------- Total investment income........................................................ $ 7,632,176 ----------- EXPENSES: Investment advisory and management fees........................................... 1,147,803 Administration fees............................................................... 270,071 Distribution and account maintenance fees: Class A......................................................................... 188,611 Class C......................................................................... 608,601 Transfer agent fees and expenses: Class A......................................................................... 126,367 Class C......................................................................... 186,396 Registration fees: Class A......................................................................... 11,950 Class C......................................................................... 4,350 Accounting service fees........................................................... 10,358 Custodian and accounting fees..................................................... 36,175 Reports to shareholders........................................................... 22,933 Audit and tax fees................................................................ 51,865 Legal fees........................................................................ 13,846 Directors' fees and expenses...................................................... 28,121 Other expenses.................................................................... 11,922 ----------- Total expenses before fee waivers and expense reimbursements................... 2,719,369 Fees waived and expenses reimbursed by investment adviser (Note 5)............. (517,913) ----------- Net expenses................................................................... 2,201,456 ----------- Net investment income (loss)...................................................... 5,430,720 ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES: Net realized gain (loss) on investments (unaffiliated)............................ (2,638,900) Net realized foreign exchange gain (loss) on other assets and liabilities......... (3,936) ----------- Net realized gain (loss) on investments and foreign currencies.................... (2,642,836) ----------- Change in unrealized appreciation (depreciation) on investments (unaffiliated).... 9,412,425 Change in unrealized foreign exchange gain (loss) on other assets and liabilities. (3,428) ----------- Net unrealized gain (loss) on investments and foreign currencies.................. 9,408,997 ----------- Net realized and unrealized gain (loss) on investments and foreign currencies..... 6,766,161 ----------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $12,196,881 =========== See Notes to Financial Statements 7 SUNAMERICA SENIOR FLOATING RATE FUND, INC. STATEMENT OF CHANGES IN NET ASSETS FOR THE SIX MONTHS ENDED FOR THE YEAR JUNE 30, ENDED 2016 DECEMBER 31, (UNAUDITED) 2015 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS: OPERATIONS: Net investment income (loss)......................................... $ 5,430,720 $ 13,385,770 Net realized gain (loss) on investments and foreign currencies....... (2,642,836) (5,284,060) Net unrealized gain (loss) on investments and foreign currencies..... 9,408,997 (12,452,606) ------------ ------------ Net Increase (decrease) in net assets resulting from operations....... 12,196,881 (4,350,896) ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income (Class A)...................................... (2,255,384) (5,793,773) Net investment income (Class C)...................................... (3,154,599) (7,725,036) ------------ ------------ Total distributions to shareholders................................... (5,409,983) (13,518,809) ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS (NOTE 3)................................................ (28,584,775) (63,659,281) ------------ ------------ TOTAL INCREASE (DECREASE) IN NET ASSETS............................... (21,797,877) (81,528,986) NET ASSETS: Beginning of period................................................... 286,610,928 368,139,914 ------------ ------------ End of period+........................................................ $264,813,051 $286,610,928 ============ ============ +Includes accumulated undistributed net investment income (loss)...... $ (328,188) $ (348,925) ============ ============ 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 06/30/16(5) 7.61 0.16 0.20 0.36 (0.16) -- (0.16) 7.81 4.78 106,772 1.45(4) 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 06/30/16(5) 7.60 0.15 0.20 0.35 (0.15) -- (0.15) 7.80 4.63 158,041 1.75(4) 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 06/30/16(5) 4.20(4) 18 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 06/30/16(5) 3.90(4) 18 -------- (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load but does include expense reimbursements. (3)Net of the following expense 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 06/30/16(4)(5) -------- -------- -------- -------- -------- -------------- Class A............. 0.33% 0.35% 0.34% 0.32% 0.34% 0.34% Class C............. 0.44 0.44 0.43 0.41 0.44 0.41 (4)Annualized (5)Unaudited See Notes to Financial Statements 9 SUNAMERICA SENIOR FLOATING RATE FUND, INC. PORTFOLIO PROFILE -- JUNE 30, 2016 -- (UNAUDITED) INDUSTRY ALLOCATION* Media....................................................... 7.2% Commercial Services & Supplies.............................. 7.0 Hotels, Restaurants & Leisure............................... 6.7 Health Care Providers & Services............................ 6.4 IT Services................................................. 5.3 Software.................................................... 4.8 Oil, Gas & Consumable Fuels................................. 4.6 Food & Staples Retailing.................................... 4.1 Specialty Retail............................................ 3.9 Food Products............................................... 3.3 Containers & Packaging...................................... 3.0 Chemicals................................................... 2.8 Semiconductors & Semiconductor Equipment.................... 2.7 Pharmaceuticals............................................. 2.6 Diversified Telecommunication Services...................... 2.6 Machinery................................................... 2.4 Real Estate Management & Development........................ 2.3 Insurance................................................... 2.2 Health Care Equipment & Supplies............................ 1.8 Capital Markets............................................. 1.7 Repurchase Agreements....................................... 1.6 Energy Equipment & Services................................. 1.5 Diversified Financial Services.............................. 1.3 Registered Investment Companies............................. 1.3 Building Products........................................... 1.2 Road & Rail................................................. 1.2 Metals & Mining............................................. 1.2 Industrial Power Producers & Energy Traders................. 1.1 Multi Utilities............................................. 1.0 Industrial Conglomerates.................................... 1.0 Professional Services....................................... 1.0 Life Sciences Tools & Services.............................. 0.9 Construction Materials...................................... 0.9 Health Care Technology...................................... 0.8 Internet & Catalog Retail................................... 0.8 Paper & Forest Products..................................... 0.7 Real Estate Investment Trusts............................... 0.7 Consumer Finance............................................ 0.7 Aerospace & Defense......................................... 0.6 Electronic Equipment, Instruments & Components.............. 0.6 Tech Hardware, Storage & Peripheral......................... 0.5 Biotechnology............................................... 0.5 Wireless Telecommunication Services......................... 0.5 Leisure Equipment & Products................................ 0.4 Construction & Engineering.................................. 0.4 Air Freight & Logistics..................................... 0.3 Internet Software & Services................................ 0.3 Distributors................................................ 0.3 Banks....................................................... 0.3 Airlines.................................................... 0.2 Automobiles................................................. 0.2 Multiline Retail............................................ 0.2 Personal Products........................................... 0.2 ----- 101.8% ===== CREDIT QUALITY+# BBB......................................................... 1.7% BBB-........................................................ 5.2 BB+......................................................... 4.4 BB.......................................................... 17.0 BB-......................................................... 10.4 B+.......................................................... 19.3 B........................................................... 18.5 B-.......................................................... 10.5 CCC+........................................................ 7.0 CCC......................................................... 1.2 CCC-........................................................ 0.3 D........................................................... 1.2 Not Rated@ ................................................. 3.3 ----- 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 -- JUNE 30, 2016 -- (UNAUDITED) RATINGS/(1)/ (UNAUDITED) ------------ INTEREST MATURITY PRINCIPAL VALUE INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT (NOTE 2) --------------------------------------------------------------------------------------------------------------------------- LOANS(3)(4) -- 91.1% AEROSPACE & DEFENSE -- 0.6% TransDigm Group, Inc................................ Delayed Draw Ba2 B 3.75% 06/09/2023 $ 465,000 $ 457,733 TransDigm Group, Inc................................ BTL-F Ba2 B 3.75 06/09/2023 516,000 507,937 TransDigm Group, Inc................................ BTL-F Ba2 B 3.75 06/09/2023 862,281 847,729 ----------- 1,813,399 ----------- AIR FREIGHT & LOGISTICS -- 0.3% Air Medical Group Holdings LLC...................... BTL B2 B 4.25 04/28/2022 990,000 965,497 ----------- AIRLINES -- 0.2% American Airlines, Inc.............................. BTL-B Ba1 BB+ 3.50 04/28/2023 845,000 835,282 ----------- AUTOMOBILES -- 0.2% Chrysler Group LLC.................................. BTL-B Baa3 BBB- 3.50 05/24/2017 631,665 631,100 ----------- BIOTECHNOLOGY -- 0.5% Medpace, Inc........................................ BTL B2 B+ 4.75 04/01/2021 1,372,642 1,365,778 ----------- BUILDING PRODUCTS -- 1.1% Beacon Roofing Supply, Inc.......................... BTL-B B2 BB+ 4.00 10/01/2022 1,106,638 1,103,526 Nortek, Inc......................................... BTL Ba3 BB- 3.50 10/30/2020 1,000,101 985,724 Summit Materials LLC................................ BTL Ba3 BB 4.00 07/17/2022 940,500 937,561 ----------- 3,026,811 ----------- CAPITAL MARKETS -- 1.7% AlixPartners LLC.................................... BTL B2 B+ 4.50 07/28/2022 3,473,750 3,467,959 Russell Investments U.S. Institutional Holdco, Inc.. BTL Ba2 BB 6.75 06/01/2023 1,245,000 1,165,631 ----------- 4,633,590 ----------- CHEMICALS -- 2.8% Al Chem & Cy SCA.................................... BTL-B B1 B+ 4.50 10/03/2019 477,299 474,614 Al Chem & Cy SCA(5)................................. BTL-B1 B1 B+ 4.50 10/03/2019 247,647 246,254 Allnex (Lux) & Cy SCA(17)........................... BTL-B2 B1 B+ 5.25 05/31/2023 1,080,000 1,066,500 Chemours Co......................................... BTL-B Ba1 BB+ 3.75 05/12/2022 560,049 539,514 Gates Global, Inc................................... BTL B2 B+ 4.25 07/06/2021 1,374,236 1,303,378 Ineos U.S. Finance LLC.............................. BTL-B Ba3 BB- 3.75 05/04/2018 704,400 697,356 MacDermid, Inc.(5).................................. BTL-B2 B2 BB- 5.50 06/07/2020 1,418,400 1,393,578 Minerals Technologies, Inc.......................... BTL-B Ba2 BB+ 3.75 05/09/2021 1,169,769 1,166,357 Univar, Inc......................................... BTL B2 BB- 4.25 07/01/2022 536,038 528,935 ----------- 7,416,486 ----------- COMMERCIAL SERVICES & SUPPLIES -- 6.4% ADS Waste Holdings, Inc............................. BTL B2 B+ 3.75 10/09/2019 952,669 936,394 Audio Visual Services Group, Inc.................... BTL-B B1 B+ 4.50 01/24/2021 2,824,037 2,788,737 Brand Energy and Infrastructure Services, Inc....... 1st Lien B2 B 4.75 11/26/2020 2,363,751 2,296,975 Brickman Group Holdings, Inc........................ 1st Lien B2 B 4.00 12/18/2020 1,429,628 1,403,537 Brickman Group Holdings, Inc........................ 2nd Lien Caa1 CCC+ 7.50 12/17/2021 1,340,000 1,308,594 Fly Funding II SARL................................. BTL Ba3 BBB- 3.50 08/06/2019 1,297,461 1,291,785 KAR Auction Services, Inc........................... BTL-B3 Ba3 BB- 4.25 03/09/2023 563,588 565,701 Peak 10, Inc.(5).................................... 2nd Lien Caa2 CCC+ 8.25 06/17/2022 845,000 726,700 Sedgwick CMS Holdings, Inc.......................... 2nd Lien Caa2 CCC+ 6.75 02/28/2022 1,465,000 1,406,400 ServiceMaster Co.................................... BTL-B Ba3 BB 4.25 07/01/2021 1,123,651 1,122,948 Vizient, Inc........................................ 1st Lien B1 B 6.25 02/13/2023 1,007,475 1,010,833 Waste Industries USA, Inc........................... BTL-B B1 BB- 4.25 02/27/2020 1,027,000 1,025,716 WCA Waste Systems, Inc.............................. BTL B1 B+ 4.00 03/23/2018 989,256 982,455 ----------- 16,866,775 ----------- CONSTRUCTION & ENGINEERING -- 0.4% Pike Corp........................................... 1st Lien B2 B+ 5.50 12/22/2021 979,355 974,458 ----------- 11 SUNAMERICA SENIOR FLOATING RATE FUND, INC. PORTFOLIO OF INVESTMENTS -- JUNE 30, 2016 -- (UNAUDITED) (CONTINUED) RATINGS/(1)/ (UNAUDITED) ------------ INTEREST MATURITY PRINCIPAL VALUE INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT (NOTE 2) ------------------------------------------------------------------------------------------------------------------------ CONSTRUCTION MATERIALS -- 0.9% Headwaters, Inc...................................... BTL-B Ba3 BB 4.50% 03/24/2022 $1,608,130 $ 1,606,120 Quikrete Companies, Inc.............................. 2nd Lien B1 BB- 4.00 09/28/2020 725,240 723,038 ----------- 2,329,158 ----------- CONSUMER FINANCE -- 0.4% Vantiv LLC........................................... BTL-B Ba2 BBB- 3.50 06/13/2021 1,014,887 1,015,141 ----------- CONTAINERS & PACKAGING -- 2.2% Ardagh Packaging Finance PLC......................... BTL Ba3 B+ 4.00 12/17/2019 612,193 611,236 Berry Plastics Holding Corp.......................... BTL-H Ba3 BB 3.75 10/01/2022 2,878,216 2,856,180 Mauser Holding GmbH.................................. 2nd Lien Caa2 CCC+ 8.75 07/31/2022 1,605,000 1,496,663 Owens-Illinois, Inc.................................. BTL-B Baa3 BBB- 3.50 09/01/2022 829,500 826,043 ----------- 5,790,122 ----------- DISTRIBUTORS -- 0.3% ABC Supply Co., Inc.................................. BTL-B B1 BBB- 3.50 04/16/2020 796,977 795,648 ----------- DIVERSIFIED FINANCIAL SERVICES -- 1.3% Media General, Inc................................... BTL-B Ba3 BB+ 4.00 07/31/2020 880,735 879,451 Opal Acquisition, Inc................................ BTL-B B2 B- 5.00 11/27/2020 600,615 522,535 Santander Asset Management........................... BTL Ba2 BB 4.25 12/17/2020 928,198 922,107 TransUnion LLC....................................... BTL B1 BB- 3.50 04/09/2021 1,069,836 1,057,801 ----------- 3,381,894 ----------- DIVERSIFIED TELECOMMUNICATION SERVICES -- 2.2% CSC Holdings, Inc.................................... BTL Ba1 BB- 5.00 10/09/2022 1,540,000 1,541,155 Level 3 Financing, Inc............................... BTL-B Ba1 BB+ 3.50 05/31/2022 1,300,000 1,293,500 Level 3 Financing, Inc............................... BTL-B2 Ba1 BB+ 4.00 08/01/2019 1,425,000 1,422,328 Telenet International Finance SARL................... BTL B1 B+ 4.25 06/30/2024 600,000 595,250 XO Communications, Inc............................... BTL B2 BB- 4.25 03/19/2021 858,169 854,736 ----------- 5,706,969 ----------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 0.6% Dell, Inc.(17)....................................... BTL-B Baa3 BBB- 4.25 05/24/2023 1,130,000 1,125,605 Ortho Clinical Diagnostics SA........................ BTL B1 B- 4.75 06/30/2021 471,398 443,507 ----------- 1,569,112 ----------- ENERGY EQUIPMENT & SERVICES -- 1.3% Drillships Financing Holding, Inc.(5)................ BTL-B Caa2 CCC+ 5.50 07/25/2021 986,440 585,287 Pacific Drilling SA.................................. BTL-B Caa2 B- 4.50 06/04/2018 809,950 247,035 Paragon Offshore, Ltd.(7)............................ BTL-B NR NR 5.25 07/18/2021 987,500 266,625 Pinnacle Holdco SARL................................. BTL B3 B 4.75 07/30/2019 1,014,829 735,751 Seadrill Partners Finco LLC.......................... BTL-B Caa2 B- 4.00 02/21/2021 2,151,622 953,438 Shelf Drilling Midco, Ltd.(5)........................ BTL B3 CCC+ 10.00 10/08/2018 1,240,000 589,000 ----------- 3,377,136 ----------- FOOD & STAPLES RETAILING -- 4.1% Albertson's Holdings LLC............................. BTL-B4 Ba2 BB 4.50 08/25/2021 3,727,752 3,719,014 Albertson's Holdings LLC............................. BTL-B5 Ba2 BB 4.75 12/21/2022 563,588 562,984 BJ's Wholesale Club, Inc............................. 1st Lien B3 B- 4.50 09/26/2019 1,043,119 1,032,687 Rite Aid Corp........................................ BTL B2 B+ 4.88 06/21/2021 2,230,000 2,228,606 Rite Aid Corp........................................ 2nd Lien B2 B+ 5.75 08/21/2020 1,055,000 1,054,121 U.S. Foods, Inc...................................... BTL NR B+ 4.50 06/20/2023 2,164,788 2,161,406 ----------- 10,758,818 ----------- 12 SUNAMERICA SENIOR FLOATING RATE FUND, INC. PORTFOLIO OF INVESTMENTS -- JUNE 30, 2016 -- (UNAUDITED) (CONTINUED) RATINGS/(1)/ (UNAUDITED) ------------ INTEREST MATURITY PRINCIPAL VALUE INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT (NOTE 2) --------------------------------------------------------------------------------------------------------------------- FOOD PRODUCTS -- 3.0% B&G Foods, Inc.................................... BTL-B Ba3 BB+ 3.75% 11/02/2022 $ 900,421 $ 901,266 Hearthside Food Solutions LLC..................... BTL B1 B 4.50 06/02/2021 1,710,100 1,684,449 Hostess Brands, Inc............................... BTL B1 B+ 4.50 08/03/2022 1,900,638 1,897,787 Hostess Brands, Inc............................... 2nd Lien Caa1 CCC+ 8.50 08/03/2023 1,640,000 1,618,134 Oak Tea, Inc...................................... BTL-B Ba3 BB 4.25 07/02/2022 1,054,413 1,054,413 Pinnacle Operating Corp.(5)....................... BTL-B2 B1 B 4.75 11/15/2018 737,681 693,420 ----------- 7,849,469 ----------- HEALTH CARE EQUIPMENT & SUPPLIES -- 1.6% Alere Inc......................................... BTL-B Ba3 B+ 4.25 06/18/2022 1,305,418 1,297,463 Immucor, Inc...................................... BTL-B2 B2 B- 5.00 08/17/2018 1,798,852 1,684,925 Sterigenics-Nordion Holdings LLC.................. BTL-B B1 B 4.25 05/15/2022 1,171,150 1,156,511 ----------- 4,138,899 ----------- HEALTH CARE PROVIDERS & SERVICES -- 5.7% Acadia Healthcare Company, Inc.................... BTL-B Ba2 BB- 4.50 02/16/2023 517,400 514,813 American Renal Holdings, Inc...................... 1st Lien B2 B 4.75 09/20/2019 1,123,689 1,118,540 CHS/Community Health Systems, Inc................. BTL-F Ba3 BB 3.92 12/31/2018 1,756,471 1,740,369 CHS/Community Health Systems, Inc................. BTL-H Ba3 BB 4.00 01/27/2021 1,116,752 1,086,599 Emergency Medical Services Corp................... BTL-B2 B1 BB- 4.50 10/28/2022 2,094,475 2,093,727 Healogics, Inc.................................... 1st Lien B2 B 5.25 07/01/2021 993,015 883,783 Inventiv Health, Inc.(5).......................... BTL-B4 B1 B 7.75 05/15/2018 1,100,000 1,099,313 MPH Acquisition Holdings LLC...................... BTL-B B1 B+ 5.00 06/07/2023 2,965,000 2,971,882 Surgery Center Holdings, Inc...................... 1st Lien B2 B 5.25 11/03/2020 1,211,550 1,210,036 U.S. Renal Care, Inc.............................. BTL-B B1 B 5.25 12/31/2022 2,278,550 2,274,752 ----------- 14,993,814 ----------- HEALTH CARE TECHNOLOGY -- 0.8% Emdeon, Inc....................................... BTL-2 Ba3 B+ 3.75 11/02/2018 1,196,353 1,195,605 IMS Health, Inc................................... BTL-B Ba2 BB- 3.50 03/17/2021 979,230 970,050 ----------- 2,165,655 ----------- HOTELS, RESTAURANTS & LEISURE -- 6.5% Affinity Gaming LLC............................... BTL B1 BB- 5.00 07/01/2023 640,000 638,800 Aristocrat Leisure, Ltd........................... BTL-B Ba2 BB 4.75 10/20/2021 1,146,608 1,146,608 Caesars Entertainment Operating Co., Inc.+(7)(10). BTL-B6 NR D 1.50 03/01/2017 2,023,792 2,018,733 Caesars Growth Properties Holdings LLC............ BTL B3 B+ 6.25 05/08/2021 1,075,913 1,005,978 California Pizza Kitchen, Inc..................... BTL B2 B- 5.25 03/29/2018 1,451,250 1,378,688 CityCenter Holdings LLC........................... BTL-B B1 BB 4.25 10/16/2020 913,243 912,673 Eldorado Resorts LLC.............................. BTL-B Ba3 BB- 4.25 07/23/2022 970,200 968,179 Four Seasons Holdings, Inc........................ 2nd Lien Caa1 B- 7.75 12/27/2020 835,000 835,696 Hilton Worldwide Finance LLC...................... BTL-B2 Ba1 BBB 3.50 10/26/2020 1,461,945 1,461,538 La Quinta Intermediate Holdings LLC............... BTL-B B1 BB 3.75 04/14/2021 1,139,657 1,109,741 Lindblad Expeditons, Inc.......................... BTL B2 BB 5.50 05/08/2021 226,283 225,718 Lindblad Expeditons, Inc.......................... CTL B2 BB 5.50 05/08/2021 1,753,717 1,749,332 Scientific Games International, Inc............... BTL-B2 Ba3 BB- 6.00 10/01/2021 568,825 559,937 Station Casinos, Inc.............................. BTL-B Ba3 BB 3.75 06/08/2023 1,130,000 1,123,173 Town Sports International Holdings, Inc........... BTL Caa2 CCC+ 4.50 11/15/2020 2,223,382 1,475,770 Yum! Brands, Inc.................................. 1st Lien Ba1 BBB- 3.23 06/16/2023 515,000 515,644 ----------- 17,126,208 ----------- INDUSTRIAL CONGLOMERATES -- 1.0% American Rock Salt Co. LLC........................ BTL-B B2 B 4.75 05/20/2021 1,744,400 1,626,653 American Rock Salt Co. LLC........................ 2nd Lien B2 B 4.75 05/20/2021 984,893 919,644 ----------- 2,546,297 ----------- INDUSTRIAL POWER PRODUCERS & ENERGY TRADERS -- 0.7% Calpine Corp...................................... BTL-B7 Ba2 NR 3.64 05/05/2023 1,780,000 1,757,750 ----------- 13 SUNAMERICA SENIOR FLOATING RATE FUND, INC. PORTFOLIO OF INVESTMENTS -- JUNE 30, 2016 -- (UNAUDITED) (CONTINUED) RATINGS/(1)/ (UNAUDITED) ------------ INTEREST MATURITY PRINCIPAL VALUE INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT (NOTE 2) ------------------------------------------------------------------------------------------------------------- INSURANCE -- 2.2% Asurion Corp............................. 1st Lien NR B 5.00% 05/24/2019 $1,779,623 $ 1,771,170 Asurion Corp............................. BTL-B4 Ba3 B 5.00 08/04/2022 998,045 982,659 Asurion Corp............................. 2nd Lien Caa1 CCC+ 8.50 03/03/2021 1,905,000 1,832,768 Compass Investments, Inc................. BTL B1 B 4.25 12/27/2019 1,219,513 1,206,098 ----------- 5,792,695 ----------- INTERNET & CATALOG RETAIL -- 0.8% Acosta, Inc.............................. BTL B1 B 4.25 09/26/2021 1,359,239 1,304,869 Lands' End, Inc.......................... BTL-B B1 B- 4.25 04/04/2021 938,433 719,465 ----------- 2,024,334 ----------- INTERNET SOFTWARE & SERVICES -- 0.3% Zayo Group LLC........................... BTL-B Ba2 BB- 3.75 05/06/2021 692,515 688,763 Zayo Group LLC........................... BTL-B2 Ba2 BB- 4.50 05/06/2021 193,790 193,851 ----------- 882,614 ----------- IT SERVICES -- 4.7% Ceridian Corp............................ BTL-B2 Ba3 B- 4.50 09/15/2020 762,066 735,394 First Data Corp.......................... BTL-1 B1 BB 4.20 07/08/2022 4,125,000 4,079,452 First Data Corp.......................... BTL-B B1 BB 4.45 03/24/2021 3,809,312 3,793,123 Global Payments, Inc..................... BTL-B Ba2 BBB- 3.96 04/22/2023 500,000 503,125 MoneyGram International, Inc............. BTL-B B1 B+ 4.25 03/27/2020 416,097 393,732 WEX, Inc................................. BTL-B Ba3 BB- 4.25 07/01/2023 2,895,000 2,880,525 ----------- 12,385,351 ----------- LEISURE EQUIPMENT & PRODUCTS -- 0.4% SRAM LLC(5).............................. BTL-B B2 B 4.00-5.50 04/10/2020 1,296,338 1,153,741 ----------- LIFE SCIENCES TOOLS & SERVICES -- 0.9% Pharmaceutical Product Development, Inc.. BTL-B B1 B 4.25 08/18/2022 2,353,168 2,331,990 ----------- MACHINERY -- 2.4% Gardner Denver, Inc...................... BTL B2 B 4.25 07/30/2020 1,620,155 1,483,454 Harbor Freight Tools USA, Inc............ BTL-B B1 BB- 4.75 07/26/2019 891,777 892,520 Husky International, Ltd................. 1st Lien B1 B 4.25 06/30/2021 454,499 450,333 Husky International, Ltd.(5)............. 2nd Lien Caa1 B- 7.25 06/30/2022 553,868 531,021 Paladin Brands Holding, Inc.(5).......... BTL B3 B+ 7.25 08/16/2019 1,696,554 1,459,037 Sensus USA, Inc.......................... BTL B2 B 6.50 03/16/2023 1,430,000 1,415,700 ----------- 6,232,065 ----------- MEDIA -- 6.9% Advantage Sales & Marketing LLC.......... 1st Lien B1 B 4.25 07/23/2021 2,477,820 2,413,811 Advantage Sales & Marketing LLC.......... 2nd Lien Caa1 CCC+ 7.50 07/25/2022 1,000,000 922,500 Charter Communications Operating LLC..... BTL-I Ba1 BBB 3.50 01/24/2023 1,077,300 1,076,338 Delta 2 (Lux) SARL....................... BTL-B3 B2 B 4.75 07/30/2021 3,944,124 3,800,163 Delta 2 (Lux) SARL....................... 2nd Lien Caa2 CCC+ 7.75 07/31/2022 1,495,000 1,410,283 Galleria Co.............................. BTL-B Ba1 BBB- 3.75 01/26/2023 995,000 992,513 Getty Images, Inc........................ BTL-B B3 CCC+ 4.75 10/18/2019 1,835,636 1,362,960 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 2,047,221 2,033,572 Numericable Finance & Co. SCA............ BTL-B B1 B+ 5.00 01/15/2024 425,000 423,274 Salem Communications Corp.(5)............ BTL-B B2 B- 4.50 03/16/2020 822,792 802,222 Univision Communications, Inc............ BTL-C4 B2 B+ 4.00 03/01/2020 2,942,490 2,920,948 ----------- 18,187,509 ----------- 14 SUNAMERICA SENIOR FLOATING RATE FUND, INC. PORTFOLIO OF INVESTMENTS -- JUNE 30, 2016 -- (UNAUDITED) (CONTINUED) RATINGS/(1)/ (UNAUDITED) ------------ INTEREST MATURITY PRINCIPAL VALUE INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT (NOTE 2) ----------------------------------------------------------------------------------------------------------------------- METALS & MINING -- 1.0% Ameriforge Group, Inc............................... BTL Caa2 CCC 5.00% 12/19/2019 $ 919,484 $ 519,508 Crosby Worldwide, Ltd............................... 1st Lien B2 B- 4.00 11/23/2020 1,029,521 829,622 Fortescue Metals Group, Ltd......................... BTL Ba2 BB+ 4.25 06/30/2019 391,161 373,395 Signode Industrial Group U.S., Inc.................. BTL-B B1 B+ 3.75 05/01/2021 1,060,944 1,050,998 ----------- 2,773,523 ----------- MULTI UTILITIES -- 1.0% Energy Future Intermediate Holding Co. LLC(7)....... DIP NR NR 4.25 12/19/2016 1,215,000 1,211,963 Texas Competitive Electric Holdings Co. LLC+(7)(10). BTL NR NR 4.93 10/10/2017 4,174,956 1,385,564 ----------- 2,597,527 ----------- MULTILINE RETAIL -- 0.2% Neiman Marcus Group, Inc............................ BTL-B B2 B- 4.25 10/25/2020 680,763 610,347 ----------- OIL, GAS & CONSUMABLE FUELS -- 4.2% American Energy Marcellus LLC....................... 1st Lien Ca CCC- 5.25 08/04/2020 1,565,000 807,931 Arch Coal, Inc.(7)(8)............................... DIP NR NR 5.00 01/31/2017 401,000 396,489 Arch Coal, Inc.(7).................................. BTL NR D 7.50 05/16/2018 1,714,504 784,386 Callon Petroleum Co................................. 2nd Lien NR NR 8.50 10/08/2021 1,620,000 1,620,000 Chief Exploration & Development LLC................. 2nd Lien NR NR 7.50 05/16/2021 1,785,000 1,603,153 Energy Transfer Equity LP........................... BTL Ba2 BB 4.00 12/02/2019 929,412 902,498 Philadelphia Energy Solutions LLC(5)................ BTL-B B1 BB- 6.25 04/04/2018 923,963 863,905 Power Buyer LLC..................................... BTL B2 B+ 4.25 05/06/2020 1,036,230 1,029,753 Power Buyer LLC(5).................................. 2nd Lien Caa2 CCC+ 8.25 11/06/2020 670,000 649,900 Templar Energy LLC(10)(18)(19)...................... 2nd Lien Ca D 8.50 11/25/2020 1,825,000 456,250 Western Refining LP................................. BTL-B B1 B+ 5.25 11/12/2020 2,120,600 2,053,447 ----------- 11,167,712 ----------- PAPER & FOREST PRODUCTS -- 0.4% Exopack LLC......................................... BTL B1 B 4.50 05/08/2019 1,106,200 1,094,447 ----------- PERSONAL PRODUCTS -- 0.2% Coty, Inc........................................... BTL-B Ba1 BBB- 3.75 10/27/2022 493,763 492,117 ----------- PHARMACEUTICALS -- 2.4% Catalent Pharma Solutions, Inc...................... BTL B1 BB 4.25 05/20/2021 1,628,798 1,626,508 Endo Luxembourg Finance Co.......................... BTL-B Ba2 BB 3.75 09/26/2022 2,184,025 2,147,364 PRA Holdings, Inc................................... 1st Lien B1 BB- 4.50 09/23/2020 985,073 984,662 Valeant Pharmaceuticals International, Inc.......... BTL-F1 Ba2 BB- 5.00 04/01/2022 1,705,227 1,654,782 ----------- 6,413,316 ----------- PROFESSIONAL SERVICES -- 1.0% Nexeo Solutions LLC................................. BTL-B B3 B 5.25 06/09/2023 1,635,000 1,626,825 On Assignment, Inc.................................. BTL Ba2 BB 3.75 06/03/2022 892,568 891,825 ----------- 2,518,650 ----------- REAL ESTATE INVESTMENT TRUSTS -- 0.7% Capital Automotive LP............................... 2nd Lien B1 B- 6.00 04/30/2020 1,405,000 1,405,000 Equinix, Inc........................................ BTL Ba2 BBB- 4.00 01/08/2023 478,800 477,304 ----------- 1,882,304 ----------- REAL ESTATE MANAGEMENT & DEVELOPMENT -- 2.3% DTZ US Borrower LLC................................. 1st Lien B1 B+ 4.25 11/04/2021 1,980,000 1,953,270 DTZ US Borrower LLC................................. 2nd Lien B3 B- 9.25 11/04/2022 1,085,000 1,079,575 MGM Growth Properties LLC........................... BTL B1 BB 4.00 04/25/2023 1,501,238 1,503,114 Realogy Corp........................................ BTL Ba2 BB+ 3.75 03/05/2020 1,545,003 1,542,300 ----------- 6,078,259 ----------- 15 SUNAMERICA SENIOR FLOATING RATE FUND, INC. PORTFOLIO OF INVESTMENTS -- JUNE 30, 2016 -- (UNAUDITED) (CONTINUED) RATINGS/(1)/ (UNAUDITED) ------------ INTEREST MATURITY PRINCIPAL VALUE INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT (NOTE 2) ------------------------------------------------------------------------------------------------------------------------------ ROAD & RAIL -- 1.2% Kenan Advantage Group, Inc.(8)................. Delayed Draw Ba3 BB 1.50% 01/31/2017 $ 147,767 $ 146,474 Kenan Advantage Group, Inc..................... BTL Ba3 BB 4.00 07/31/2022 1,116,563 1,106,793 Kenan Advantage Group, Inc..................... BTL-B Ba3 BB 4.00 07/31/2022 364,515 361,326 Neff Rental LLC(5)............................. 2nd Lien B3 B- 7.25 06/09/2021 1,770,294 1,681,779 ------------ 3,296,372 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 2.0% Avago Technologies, Ltd........................ BTL-B1 Ba1 BBB 4.25 02/01/2023 1,999,988 1,998,322 Lattice Semiconductor Corp..................... 1st Lien B2 B 5.25 03/10/2021 833,757 812,913 Micron Technology, Inc......................... BTL-B Baa2 BBB- 6.64 04/26/2022 680,000 683,116 NXP BV......................................... BTL-B Baa2 BBB- 3.75 12/07/2020 799,594 800,593 ON Semiconductor Corp.......................... BTL-B Ba1 BB 5.25 03/31/2023 930,000 933,986 ------------ 5,228,930 ------------ SOFTWARE -- 4.6% Epicore Software Co............................ 1st Lien B2 B 4.75 06/01/2022 2,039,400 1,994,364 Kronos, Inc.................................... BTL-C B1 B- 4.50 10/30/2019 3,044,073 3,033,290 Kronos, Inc.................................... 2nd Lien Caa2 CCC 9.75 04/30/2020 2,677,597 2,688,754 Lawson Software, Inc........................... BTL-B5 B1 B+ 3.75 06/03/2020 940,706 914,641 Magic Newco LLC................................ BTL B1 B+ 5.00 12/12/2018 2,061,327 2,059,396 SS& C Technologies, Inc........................ BTL-B1 Ba3 BB 4.00 07/08/2022 1,384,533 1,382,802 SS& C Technologies, Inc........................ BTL-B2 Ba3 BB 4.00 07/08/2022 189,303 189,066 ------------ 12,262,313 ------------ SPECIALTY RETAIL -- 3.7% At Home Holding III, Inc....................... BTL B2 B- 5.00 06/03/2022 4,942,544 4,893,118 J Crew Operating Corp.......................... BTL-B1 B2 B- 4.00 03/05/2021 741,308 505,016 Michaels Stores, Inc........................... BTL-B2 Ba2 BB 3.75 01/28/2020 985,937 982,239 Party City Holdings, Inc....................... BTL B1 B+ 4.25 08/19/2022 1,493,700 1,480,630 PetSmart, Inc.................................. BTL-B Ba3 BB- 4.25 03/11/2022 1,081,637 1,076,229 Serta Simmons Holdings LLC..................... BTL-B B1 BB- 4.25 10/01/2019 961,398 959,897 ------------ 9,897,129 ------------ TECH HARDWARE, STORAGE & PERIPHERAL -- 0.3% CDW Corp....................................... BTL Ba2 BBB- 3.25 04/29/2020 864,691 863,610 ------------ WIRELESS TELECOMMUNICATION SERVICES -- 0.5% LTS Buyer LLC.................................. BTL-B B1 B 4.00 04/13/2020 1,019,110 1,010,448 LTS Buyer LLC.................................. 2nd Lien NR CCC+ 8.00 04/12/2021 271,975 268,575 ------------ 1,279,023 ------------ TOTAL LOANS (cost $256,634,783)................ 241,277,144 ------------ U.S. CORPORATE BONDS & NOTES -- 4.8% BUILDING PRODUCTS -- 0.1% Standard Industries, Inc.*..................... Senior Notes Ba2 BBB- 5.13 02/15/2021 420,000 431,549 ------------ COMMERCIAL SERVICES & SUPPLIES -- 0.6% Reynolds Group Holdings, Ltd. FRS*............. Senior Sec. Notes B1 B+ 4.13 07/15/2021 1,245,000 1,248,112 Reynolds Group Holdings, Ltd.*................. Company Guar. Notes Caa2 CCC+ 7.00 07/15/2024 390,000 401,504 ------------ 1,649,616 ------------ CONTAINERS & PACKAGING -- 0.2% Ball Corp...................................... Company Guar. Notes Ba1 BB+ 4.38 12/15/2020 460,000 483,863 ------------ FOOD PRODUCTS -- 0.3% TreeHouse Foods, Inc.*......................... Senior Notes Ba3 BB 6.00 02/15/2024 700,000 742,000 ------------ HEALTH CARE EQUIPMENT & SUPPLIES -- 0.2% Hologic, Inc.*................................. Company Guar. Notes Ba3 BB 5.25 07/15/2022 570,000 595,650 ------------ 16 SUNAMERICA SENIOR FLOATING RATE FUND, INC. PORTFOLIO OF INVESTMENTS -- JUNE 30, 2016 -- (UNAUDITED) (CONTINUED) RATINGS/(1)/ (UNAUDITED) ------------ INTEREST MATURITY PRINCIPAL INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ AMOUNT ------------------------------------------------------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES -- 0.7% LifePoint Health, Inc................................. Company Guar. Notes Ba2 BB- 5.88% 12/01/2023 $ 545,000 MPH Acquisition Holdings LLC*......................... Senior Notes Caa1 B- 7.13 06/01/2024 265,000 Tenet Healthcare Corp................................. Senior Notes Caa1 CCC+ 8.13 04/01/2022 1,035,000 HOTELS, RESTAURANTS & LEISURE -- 0.2% Boyd Gaming Corp.*.................................... Company Guar. Notes B3 B- 6.38 04/01/2026 435,000 INDUSTRIAL POWER PRODUCERS & ENERGY TRADERS -- 0.4% Dynegy Finance, Inc................................... Senior Sec. Notes B3 B+ 6.75 11/01/2019 1,020,000 IT SERVICES -- 0.6% First Data Corp.*..................................... Company Guar. Notes Caa1 B 7.00 12/01/2023 1,500,000 MEDIA -- 0.3% Cequel Communications Holdings I LLC*................. Senior Notes Caa1 B- 5.13 12/15/2021 750,000 Gray Television, Inc.*................................ Senior Notes B3 B+ 5.88 07/15/2026 190,000 OIL, GAS & CONSUMABLE FUELS -- 0.1% WPX Energy, Inc....................................... Senior Notes B3 B 5.25 09/15/2024 315,000 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.5% Freescale Semiconductor, Inc.*........................ Senior Sec. Notes Baa2 BBB- 6.00 01/15/2022 565,000 Micron Technology, Inc.*.............................. Senior Sec. Notes Baa2 BBB- 7.50 09/15/2023 685,000 SOFTWARE -- 0.2% Infor Software Parent LLC*(16)........................ Company Guar. Notes Caa2 CCC+ 7.13 05/01/2021 480,000 SPECIALTY RETAIL -- 0.2% Party City Holdings, Inc.*............................ Company Guar. Notes B3 B- 6.13 08/15/2023 500,000 TECH HARDWARE, STORAGE & PERIPHERAL -- 0.2% CDW LLC/CDW Finance Corp.............................. Company Guar. Notes B1 BB- 6.00 08/15/2022 500,000 TOTAL U.S. CORPORATE BONDS & NOTES (cost $12,542,089). FOREIGN CORPORATE BONDS & NOTES -- 2.7% CONSUMER FINANCE -- 0.3% AerCap Ireland, Ltd................................... Company Guar. Notes Ba1 BBB- 4.63 10/30/2020 750,000 CONTAINERS & PACKAGING -- 0.6% Ardagh Packaging Finance PLC FRS*..................... Senior Sec. Notes Ba3 B+ 3.88 05/15/2021 1,000,000 Ardagh Packaging Finance PLC*......................... Company Guar. Notes B3 CCC+ 7.25 05/15/2024 685,000 DIVERSIFIED TELECOMMUNICATION SERVICES -- 0.4% Altice Financing SA*.................................. Senior Sec. Notes B1 BB- 6.50 01/15/2022 500,000 Numericable SFR SA*................................... Senior Sec. Notes B1 B+ 7.38 05/01/2026 680,000 ENERGY EQUIPMENT & SERVICES -- 0.2% Shelf Drilling Holdings, Ltd.*........................ Senior Sec. Notes B2 B 8.63 11/01/2018 695,000 METALS & MINING -- 0.2% Teck Resources, Ltd.*................................. Company Guar. Notes B1 BB- 8 06/01/2021 420,000 OIL, GAS & CONSUMABLE FUELS -- 0.3% 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 1,025,000 PHARMACEUTICALS -- 0.2% Endo International PLC*............................... Company Guar. Notes B3 B 6.00 07/15/2023 560,000 VALUE INDUSTRY DESCRIPTION (NOTE 2) -------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES -- 0.7% LifePoint Health, Inc................................. $ 566,800 MPH Acquisition Holdings LLC*......................... 278,250 Tenet Healthcare Corp................................. 1,060,668 ----------- 1,905,718 ----------- HOTELS, RESTAURANTS & LEISURE -- 0.2% Boyd Gaming Corp.*.................................... 454,575 ----------- INDUSTRIAL POWER PRODUCERS & ENERGY TRADERS -- 0.4% Dynegy Finance, Inc................................... 1,021,275 ----------- IT SERVICES -- 0.6% First Data Corp.*..................................... 1,518,750 ----------- MEDIA -- 0.3% Cequel Communications Holdings I LLC*................. 712,500 Gray Television, Inc.*................................ 190,475 ----------- 902,975 ----------- OIL, GAS & CONSUMABLE FUELS -- 0.1% WPX Energy, Inc....................................... 277,200 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.5% Freescale Semiconductor, Inc.*........................ 595,793 Micron Technology, Inc.*.............................. 727,813 ----------- 1,323,606 ----------- SOFTWARE -- 0.2% Infor Software Parent LLC*(16)........................ 424,800 ----------- SPECIALTY RETAIL -- 0.2% Party City Holdings, Inc.*............................ 517,500 ----------- TECH HARDWARE, STORAGE & PERIPHERAL -- 0.2% CDW LLC/CDW Finance Corp.............................. 522,500 ----------- TOTAL U.S. CORPORATE BONDS & NOTES (cost $12,542,089). 12,771,577 ----------- FOREIGN CORPORATE BONDS & NOTES -- 2.7% CONSUMER FINANCE -- 0.3% AerCap Ireland, Ltd................................... 777,563 ----------- CONTAINERS & PACKAGING -- 0.6% Ardagh Packaging Finance PLC FRS*..................... 1,003,750 Ardagh Packaging Finance PLC*......................... 699,128 ----------- 1,702,878 ----------- DIVERSIFIED TELECOMMUNICATION SERVICES -- 0.4% Altice Financing SA*.................................. 505,000 Numericable SFR SA*................................... 672,350 ----------- 1,177,350 ----------- ENERGY EQUIPMENT & SERVICES -- 0.2% Shelf Drilling Holdings, Ltd.*........................ 510,825 ----------- METALS & MINING -- 0.2% Teck Resources, Ltd.*................................. 432,600 ----------- OIL, GAS & CONSUMABLE FUELS -- 0.3% Tullow Oil PLC*....................................... 807,500 ----------- PAPER & FOREST PRODUCTS -- 0.3% Tembec Industries, Inc.*.............................. 794,375 ----------- PHARMACEUTICALS -- 0.2% Endo International PLC*............................... 490,000 ----------- 17 SUNAMERICA SENIOR FLOATING RATE FUND, INC. PORTFOLIO OF INVESTMENTS -- JUNE 30, 2016 -- (UNAUDITED) (CONTINUED) RATINGS/(1)/ (UNAUDITED) ----------- PRINCIPAL INTEREST MATURITY AMOUNT/ INDUSTRY DESCRIPTION TYPE MOODY'S S&P RATE DATE/(2)/ SHARES ----------------------------------------------------------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.2% NXP BV*................................................. Company Guar. Notes Ba2 BB+ 4.13% 06/01/2021 $ 500,000 TOTAL FOREIGN CORPORATE BONDS & NOTES (cost $7,810,126). COMMON STOCKS -- 0.0% MEDIA -- 0.0% Berry Co. LLC+(5)(6)(12) (cost $668,529)........................................ 1,136 PREFERRED SECURITIES/CAPITAL SECURITIES -- 0.3% BANKS -- 0.3% Banco Bilbao Vizcaya Argentaria SA VRS(5)(11)........... Jr. Sub. Notes NR NR 9.00 05/09/2018 400,000 Societe Generale SA VRS(11)............................. Jr. Sub. Notes Ba2 BB+ 8.25 11/29/2018 400,000 TOTAL PREFERRED SECURITIES/CAPITAL SECURITIES (cost $857,113)........................................ TOTAL LONG-TERM INVESTMENT SECURITIES (cost $278,512,640).................................... SHORT-TERM INVESTMENT SECURITIES -- 1.3% REGISTERED INVESTMENT COMPANIES -- 1.3% SSgA Money Market Fund, Class N 0.20%(13) (cost $3,326,163)...................................... 3,326,163 REPURCHASE AGREEMENTS -- 1.6% Bank of America Securities LLC Joint Repurchase Agreement(14).......................................... $ 920,000 Barclays Capital, Inc. Joint Repurchase Agreement(14)... 460,000 BNP Paribas SA Joint Repurchase Agreement(14)........... 920,000 Deutsche Bank AG Joint Repurchase Agreement(14)......... 850,000 RBS Securities, Inc. Joint Repurchase Agreement(14)..... 1,120,000 TOTAL REPURCHASE AGREEMENTS (cost $4,270,000)........... TOTAL INVESTMENTS (cost $286,108,803)(15)................................. 101.8% LIABILITIES IN EXCESS OF OTHER ASSETS..................... (1.8)% ---------- NET ASSETS................................................ 100.0% ========== VALUE INDUSTRY DESCRIPTION (NOTE 2) ------------------------------------------------------------------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.2% NXP BV*................................................. $ 507,500 ------------ TOTAL FOREIGN CORPORATE BONDS & NOTES (cost $7,810,126). 7,200,591 ------------ COMMON STOCKS -- 0.0% MEDIA -- 0.0% Berry Co. LLC+(5)(6)(12) (cost $668,529)........................................ 8,475 ------------ PREFERRED SECURITIES/CAPITAL SECURITIES -- 0.3% BANKS -- 0.3% Banco Bilbao Vizcaya Argentaria SA VRS(5)(11)........... 398,313 Societe Generale SA VRS(11)............................. 396,000 ------------ TOTAL PREFERRED SECURITIES/CAPITAL SECURITIES (cost $857,113)........................................ 794,313 ------------ TOTAL LONG-TERM INVESTMENT SECURITIES (cost $278,512,640).................................... 262,052,100 ------------ SHORT-TERM INVESTMENT SECURITIES -- 1.3% REGISTERED INVESTMENT COMPANIES -- 1.3% SSgA Money Market Fund, Class N 0.20%(13) (cost $3,326,163)...................................... 3,326,163 ------------ REPURCHASE AGREEMENTS -- 1.6% Bank of America Securities LLC Joint Repurchase Agreement(14).......................................... 920,000 Barclays Capital, Inc. Joint Repurchase Agreement(14)... 460,000 BNP Paribas SA Joint Repurchase Agreement(14)........... 920,000 Deutsche Bank AG Joint Repurchase Agreement(14)......... 850,000 RBS Securities, Inc. Joint Repurchase Agreement(14)..... 1,120,000 ------------ TOTAL REPURCHASE AGREEMENTS (cost $4,270,000)........... 4,270,000 ------------ TOTAL INVESTMENTS (cost $286,108,803)(15)................................. 269,648,263 LIABILITIES IN EXCESS OF OTHER ASSETS..................... (4,835,212) ------------ NET ASSETS................................................ $264,813,051 ============ -------- BTL Bank Term Loan CTL Cayman Term Loan DIP Debtor in Possession NR Security is not rated. FRS Floating Rate Security VRS Variable Rate Security The rates shown on FRS and VRS are the current interest rates as of June 30, 2016 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 June 30, 2016, the aggregate value of these securities was $15,262,299, representing 5.8% of net assets. Unless otherwise indicated, these securities are not considered to be illiquid. (1) Bank loans rated below Baa by Moody's Investor Service, Inc. or BBB by Standard & Poor's Group are considered below investment grade. Ratings provided are as of June 30, 2016. (2) Based on the stated maturity, the weighted average to maturity of the loans held in the portfolio is approximately 61 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 June 30, 2016, the aggregate value of these securities was $12,881,945, representing 4.9% of net assets. 18 SUNAMERICA SENIOR FLOATING RATE FUND, INC. PORTFOLIO OF INVESTMENTS -- JUNE 30, 2016 -- (UNAUDITED) (CONTINUED) (6) Fair valued security. Securities are classified as Level 3 based on the securities valuation inputs; see Note 2. (7) Company has filed for 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 June 30, 2016, 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 $8,475 $7.46 0.00% ====== ==== (13) The rate shown is the 7-day yield as of June 30, 2016. (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 securities or cash at the discretion of the issuer. The security is currently paying interest in cash at the coupon rate listed. (17) As of June 30, 2016, the loan has not settled and as a result, the interest rate is estimated based on information available. (18) Subsequent to June 30, 2016, the company entered into a forbearance agreement under which consenting lenders extended the date by which specified payments otherwise would be due and payable to a subsequent date, subject to certain conditions. (19) Subsequent to June 30, 2016, the company has filed for bankruptcy protection. The following is a summary of the inputs used to value the Fund's net assets as of June 30, 2016 (see Note 2): Level 1 -- Unadjusted Level 2 -- Other Level 3 -- Significant Quoted Prices Observable Inputs Unobservable Inputs Total --------------------- ----------------- ---------------------- ------------ ASSETS: Investments at Value:* Loans: Energy Equipment & Services........... $ -- $ 2,521,511 $855,625 $ 3,377,136 Media................................. -- 18,158,584 28,925 18,187,509 Other Industries...................... -- 219,712,499 -- 219,712,499 U.S. Corporate Bonds & Notes............ -- 12,771,577 -- 12,771,577 Foreign Corporate Bonds & Notes......... -- 7,200,591 -- 7,200,591 Common Stocks........................... -- -- 8,475 8,475 Preferred Securities/Capital Securities. -- 794,313 -- 794,313 Short-Term Investment Securities........ 3,326,163 -- -- 3,326,163 Repurchase Agreements................... -- 4,270,000 -- 4,270,000 ---------- ------------ -------- ------------ TOTAL INVESTMENTS AT VALUE.............. $3,326,163 $265,429,075 $893,025 $269,648,263 ========== ============ ======== ============ -------- * For a detailed presentation of investments, please refer to the Portfolio of Investments. The Fund's policy is to recognize transfers between Levels as of the end of the reporting period. There were no 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 -- JUNE 30, 2016 -- (UNAUDITED) 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 -- JUNE 30, 2016 -- (UNAUDITED) (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 June 30, 2016, 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 the 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 -- JUNE 30, 2016 -- (UNAUDITED) (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 -- JUNE 30, 2016 -- (UNAUDITED) (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. As of June 30, 2016, the repurchase agreements held by the Fund are subject to master netting provisions. See the Portfolio of Investments and the Notes to Financial Statements for more information about the Fund's holdings in repurchase agreements. The following tables represent the value of derivatives held as of June 30, 2016, 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 six months ended June 30, 2016. 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 June 30, 2016, 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) ------------------------------------- -------------------- $-- $-- === === 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 -- JUNE 30, 2016 -- (UNAUDITED) (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) ------------------------------------- ------------------- $(12,279) $(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 six months ended June 30, 2016: AVERAGE AMOUNT OUTSTANDING DURING THE PERIOD --------------------- FOREIGN FUND EXCHANGE CONTRACTS(1) ---- --------------------- Senior Floating Rate............... $308,028 ======== - (1) Amounts represent notional amounts in US dollars. 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 value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited. As of June 30, 2016, 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.......... 1.84% $920,000 As of such date, the repurchase agreement in that joint account and the collateral thereof were as follows: Bank of America Securities LLC, dated June 30, 2016, bearing interest at a rate of 0.41% per annum, with a principal amount of $50,000,000, a repurchase price of $50,000,569, and a maturity date of July 1, 2016. The repurchase agreement is collateralized by the following: INTEREST MATURITY TYPE OF COLLATERAL RATE DATE PRINCIPAL AMOUNT VALUE ------------------ -------- ---------- ---------------- ----------- U.S. Treasury Notes................ 1.63% 12/31/2019 $49,700,300 $51,051,759 24 SUNAMERICA SENIOR FLOATING RATE FUND, INC. NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2016 -- (UNAUDITED) (CONTINUED) As of June 30, 2016, the Fund held an undivided interest in a joint repurchase agreement with Barclays Capital, Inc.: PERCENTAGE PRINCIPAL OWNERSHIP AMOUNT ---------- --------- Senior Floating Rate Fund.......... 1.84% $460,000 As of such date, the repurchase agreement in that joint account and the collateral thereof were as follows: Barclays Capital, Inc., dated June 30, 2016, bearing interest at a rate of 0.40% per annum, with a principal amount of $25,000,000, a repurchase price of $25,000,278, and a maturity date of July 1, 2016. The repurchase agreement is collateralized by the following: INTEREST MATURITY TYPE OF COLLATERAL RATE DATE PRINCIPAL AMOUNT VALUE ------------------ -------- ---------- ---------------- ----------- U.S. Treasury Notes................ 1.75% 02/28/2022 $24,549,000 $25,518,248 As of June 30, 2016, the Fund held an undivided interest in a joint repurchase agreement with BNP Paribas SA: PERCENTAGE PRINCIPAL OWNERSHIP AMOUNT ---------- --------- Senior Floating Rate Fund.......... 1.84% $920,000 As of such date, the repurchase agreement in that joint account and the collateral thereof were as follows: BNP Paribas SA, dated June 30, 2016, bearing interest at a rate of 0.38% per annum, with a principal amount of $50,000,000, a repurchase price of $50,000,528, and a maturity date of July 1, 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 $50,000,000 $51,206,000 As of June 30, 2016, the Fund held an undivided interest in a joint repurchase agreement with Deutsche Bank AG: PERCENTAGE PRINCIPAL OWNERSHIP AMOUNT ---------- --------- Senior Floating Rate Fund.......... 1.84% $850,000 As of such date, the repurchase agreement in that joint account and the collateral thereof were as follows: Deutsche Bank AG, dated June 30, 2016, bearing interest at a rate of 0.39% per annum, with a principal amount of $46,215,000, a repurchase price of $46,215,501, and a maturity date of July 1, 2016. The repurchase agreement is collateralized by the following: INTEREST MATURITY TYPE OF COLLATERAL RATE DATE PRINCIPAL AMOUNT VALUE ------------------ -------- ---------- ---------------- ----------- U.S. Treasury Notes................ 2.25% 11/15/2024 $44,067,000 $47,171,520 As of June 30, 2016, the Fund held an undivided interest in a joint repurchase agreement with RBS Securities, Inc.: PERCENTAGE PRINCIPAL OWNERSHIP AMOUNT ---------- ---------- Senior Floating Rate Fund.......... 1.87% $1,120,000 25 SUNAMERICA SENIOR FLOATING RATE FUND, INC. NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2016 -- (UNAUDITED) (CONTINUED) As of such date, the repurchase agreement in that joint account and the collateral thereof were as follows: RBS Securities, Inc., dated June 30, 2016, bearing interest at a rate of 0.39% per annum, with a principal amount of $60,000,000, a repurchase price of $60,000,650, and a maturity date of July 1, 2016. The repurchase agreement is collateralized by the following: INTEREST MATURITY TYPE OF COLLATERAL RATE DATE PRINCIPAL AMOUNT VALUE ------------------ -------- ---------- ---------------- ----------- U.S. Treasury Notes................ 2.75% 11/15/2023 $55,283,000 $61,178,226 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 $288,757 for the six months ended June 30, 2016, are accreted to income over the life of the Loans. Other income, including amendment fees, commitment fees, letter of credit fees, etc., which were $121,494 for the six months ended June 30, 2016, 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. 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. 26 SUNAMERICA SENIOR FLOATING RATE FUND, INC. NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2016 -- (UNAUDITED) (CONTINUED) Note 3. Capital Share Transactions Transactions in capital shares of each class of the Fund were as follows: FOR THE SIX MONTHS ENDED FOR THE JUNE 30, 2016 YEAR ENDED (UNAUDITED) DECEMBER 31, 2015 ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT CLASS A ---------- ------------ ---------- ------------ Shares sold................. 785,031 $ 6,044,364 3,655,429 $ 29,357,944 Reinvested distributions.... 230,845 1,770,061 543,438 4,341,805 Shares redeemed............. (2,375,128) (18,096,756) (7,912,117) (62,830,193) ---------- ------------ ---------- ------------ Net increase (decrease).. (1,359,252) $(10,282,331) (3,713,250) $(29,130,444) ========== ============ ========== ============ FOR THE SIX MONTHS ENDED FOR THE JUNE 30, 2016 YEAR ENDED (UNAUDITED) DECEMBER 31, 2015 ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT CLASS C ---------- ------------ ---------- ------------ Shares sold................. 394,036 $ 3,025,015 2,445,047 $ 19,547,765 Reinvested distributions.... 302,063 2,313,355 702,479 5,608,496 Shares redeemed............. (3,096,028) (23,640,814) (7,480,670) (59,685,098) ---------- ------------ ---------- ------------ Net increase (decrease).. (2,399,929) $(18,302,444) (4,333,144) $(34,528,837) ========== ============ ========== ============ Note 4. Purchases and Sales of Securities During the six months ended June 30, 2016, the Fund's cost of purchases and proceeds from sale of long-term investments, including loan principal paydowns, were $48,509,256 and $69,403,090, 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. 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 six months ended June 30, 2016, SunAmerica earned fees as reflected in the Statement of Operations based upon the aforementioned rate. 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 27 SUNAMERICA SENIOR FLOATING RATE FUND, INC. NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2016 -- (UNAUDITED) (CONTINUED) 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 six months ended June 30, 2016, ACS received fees (see Statement of Operations) based upon the aforementioned rates. For the six months ended June 30, 2016, ACS received sales charges on Class A shares of $33,070, of which $18,872 was reallowed to affiliated broker-dealers and $7,275 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 six months ended June 30, 2016, ACS received contingent deferred sales charges of $1,606. 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 six months ended June 30, 2016, 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 JUNE 30, 2016 -------- ------------- Class A............................ $118,556 $19,464 Class C............................ 178,523 28,666 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, (i.e., expenses that are unusual in nature and/or infrequent in occurrence, such as litigation), or acquired fund fees and expenses, brokerage commissions and other transactional expenses relating to the purchase and sale of portfolio securities, interest, taxes and governmental fees and other expenses not incurred in the ordinary course of 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 six months ended June 30, 2016, SunAmerica waived fees and/or reimbursed expenses as follows: Class A $181,308 and Class C $336,605. 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 28 SUNAMERICA SENIOR FLOATING RATE FUND, INC. NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2016 -- (UNAUDITED) (CONTINUED) 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 ---------------------------------------- ------------------------------------- LONG-TERM GAINS/ UNREALIZED LONG-TERM ORDINARY CAPITAL AND APPRECIATION/ ORDINARY CAPITAL INCOME OTHER LOSSES (DEPRECIATION) INCOME GAINS -------- ---------------- -------------- ------------ --------- $7,783 $(59,663,371) $(25,878,301) $13,518,809 $-- 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. Unrealized appreciation and depreciation in the value of investments at June 30, 2016 for federal income tax purposes were as follows: Cost (tax basis)................... $286,114,139 ============ Gross unrealized appreciation...... 929,716 Gross unrealized depreciation...... (17,395,592) ------------ Net unrealized depreciation........ $(16,465,876) ============ 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 six months ended June 30, 2016, the Fund did not utilize the line of credit. 29 SUNAMERICA SENIOR FLOATING RATE FUND, INC. NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2016 -- (UNAUDITED) (CONTINUED) 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 six months ended June 30, 2016, the Fund did not participate in this program. Note 9. Investment Concentration The Fund invests primarily in participations and assignments, or acts as a party to the primary lending syndicate of a variable rate senior loan interest to United States corporations, partnerships, and other entities. If the lead lender in a typical lending syndicate becomes insolvent, enters receivership or, if not FDIC insured, enters into bankruptcy, the Fund may incur certain costs and delays in receiving payment, or may suffer a loss of principal and/or interest. When the Fund purchases a participation of a senior loan interest, the Fund typically enters into a contractual agreement with the lender or other third party selling the participation but not with the borrower directly. As such, the Fund is subject to the credit risk of the borrower, selling participant, lender or other persons positioned between the Fund and the borrower. Note 10. Unfunded Loan Commitments At June 30, 2016, 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 -------- ------------ ------------- ---------------- -------- Arch Coal, Inc..................... DIP 01/31/2017 $401,000 $396,489 Kenan Advantage Group, Inc......... Delayed Draw 01/31/2017 147,767 146,474 30 SUNAMERICA SENIOR FLOATING RATE FUND, INC. APPROVAL OF THE INVESTMENT ADVISORY AND SUBADVISORY AGREEMENTS -- JUNE 30, 2016 -- (UNAUDITED) The Board of Directors (the "Board" the members of which are referred to as "Directors") of SunAmerica Senior Floating Rate Fund, Inc (the "Fund"), including the Directors who are not "interested persons," as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the "1940 Act") (the "Independent Directors"), of the Fund, SunAmerica Asset Management, LLC ("SunAmerica") or Wellington Management Company LLP ("Wellington"), approved the continuation of the Investment Advisory and Management Agreement between the Fund and SunAmerica (the "Advisory Agreement") for a one-year period ending June 30, 2017 at an in-person meeting held on June 7-8, 2016 (the "Meeting"). At the Meeting, the Board, including the Independent Directors, also approved the continuation of the Subadvisory Agreement between SunAmerica and Wellington with respect to the Fund for a one-year period ending June 30, 2017 (the "Subadvisory Agreement," and together with the Advisory Agreement, the "Agreements"). In accordance with Section 15(c) of the 1940 Act, the Board requested, and SunAmerica and Wellington provided materials relating to the Board's consideration of whether to approve the continuation of the Agreements. These materials included: (a) a summary of the services provided to the Fund by SunAmerica and its affiliates, and by Wellington; (b) information independently compiled and prepared by Broadridge Financial Solutions, Inc. ("Broadridge"), an independent third-party provider of mutual fund data on fees and expenses of the Fund, and the investment performance of the Fund as compared with a peer group of funds, along with fee and performance data with respect to the Fund and any other mutual funds or accounts advised or subadvised by SunAmerica or Wellington with similar investment objectives and/or strategies, as applicable; (c) information on the profitability of SunAmerica and its affiliates, and a discussion relating to indirect benefits; (d) information relating to economies of scale; (e) information about SunAmerica's general compliance policies and procedures and the services it provides in connection with its oversight of subadvisers; (f) information about SunAmerica's and Wellington's risk management processes; (g) information regarding brokerage and soft dollar practices; and (h) information about the key personnel of SunAmerica and its affiliates, and Wellington, that are involved in the investment management, administration, compliance and risk management activities with respect to the Fund, as well as current and projected staffing levels and compensation practices. In determining whether to approve the continuation of the Agreements, the Board, including Independent Directors, considered at the Meeting, and from time to time as appropriate, factors it deemed relevant, including the following information: NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED BY SUNAMERICA AND WELLINGTON The Board, including the Independent Directors, considered the nature, extent and quality of services provided by SunAmerica. The Board noted that the services include acting as investment manager and adviser to the Fund, managing the daily business affairs of the Fund, and obtaining and evaluating economic, statistical and financial information to formulate and implement the Fund's investment policies. Additionally, the Board observed that SunAmerica provides office space, bookkeeping, accounting, clerical, secretarial and certain administrative services (excusive of, and in addition to, any such service provided by any other party retained by the Fund) and has authorized its officers and employees, if elected, to serve as officers or directors of the Fund without compensation. The Board also noted that SunAmerica is responsible for monitoring and reviewing the activities of affiliated and unaffiliated third-party service providers, including Wellington. In addition to the quality of the advisory services provided by SunAmerica, the Board considered the quality of the administrative and other services provided by SunAmerica to the Fund pursuant to the Advisory Agreement. Additionally, the Board observed that SunAmerica performs or supervises the performance by others of other administrative services in connection with the operation of the Fund pursuant to the Administrative Services Agreement between SunAmerica and the Fund (the "Administrative Services Agreement"). In connection with the services provided by SunAmerica, the Board analyzed the structure and duties of SunAmerica's fund administration, accounting, operations, legal and compliance departments and concluded that they were adequate to meet the needs of the Fund. The Board also reviewed the personnel responsible for providing advisory services to the Fund and other key personnel of SunAmerica in addition to current and projected staffing levels and compensation practices. The Board concluded, based on its experience and interaction with SunAmerica, that: (i) SunAmerica would continue to be able to retain quality investment and other personnel; (ii) SunAmerica has exhibited a high level of diligence and attention to detail in carrying out its advisory and other responsibilities under the Advisory Agreement; 31 SUNAMERICA SENIOR FLOATING RATE FUND, INC. APPROVAL OF THE INVESTMENT ADVISORY AND SUBADVISORY AGREEMENTS -- JUNE 30, 2016 -- (UNAUDITED) (CONTINUED) (iii) SunAmerica has been responsive to requests of the Board; and (iv) SunAmerica has kept the Board apprised of developments relating to the Fund and the industry in general. The Board concluded that the nature and extent of services provided under the Advisory Agreement were reasonable and appropriate in relation to the management fees and that the quality of services continues to be high. The Board also noted the high quality of services under the Administrative Services Agreement. The Board also considered SunAmerica's reputation and relationship with the Fund and considered the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of types of mutual funds and shareholder services. The Board considered SunAmerica's experience in providing management and investment advisory and administrative services to advisory clients and noted that as of March 31, 2016, SunAmerica managed, advised and/or administered approximately $79.5 billion in assets. In addition, the Board considered SunAmerica's code of ethics and its commitment to compliance generally and with respect to its management and administration of the Fund. The Board also considered SunAmerica's risk management processes. The Board further observed that SunAmerica has developed internal procedures for monitoring compliance with the investment objectives, policies and restrictions of the Fund as set forth in the Fund's prospectus. The Board also reviewed SunAmerica's compliance and regulatory history and noted that there were no material legal, regulatory or compliance issues that would potentially impact SunAmerica from effectively serving as the investment adviser to the Fund. The Board also considered the nature, extent and quality of services to be provided by Wellington. The Board observed that Wellington is responsible for providing day-to-day investment management services, including investment research, advice and supervision, and determining which securities will be purchased or sold by the Fund, or portion thereof, that Wellington manages, subject to the oversight and review of SunAmerica. The Board reviewed Wellington's history, structure, size, visibility and resources, which are needed to attract and retain highly qualified investment professionals. The Board reviewed the personnel that are responsible for providing subadvisory services to the Fund, in addition to current and projected staffing levels and compensation practices, and concluded, based on its experience with Wellington, that Wellington: (i) has been able to retain high quality portfolio managers and other investment personnel; (ii) has exhibited a high level of diligence and attention to detail in carrying out its responsibilities under the Subadvisory Agreement; and (iii) has been responsive to requests of the Board and of SunAmerica. In addition, the Board considered Wellington's code of ethics and risk management process. The Board further observed that Wellington has developed internal policies and procedures for monitoring compliance with the investment objectives, policies and restrictions of the Fund as set forth in the Fund's prospectus. The Board also reviewed Wellington's compliance and regulatory history and noted that there were no material legal, regulatory or compliance issues that would potentially impact Wellington from effectively serving as a subadviser to the Fund. The Board concluded that the nature and extent of services provided by Wellington under the Subadvisory Agreement were reasonable and appropriate in relation to the subadvisory fees and that the quality of services continues to be high. INVESTMENT PERFORMANCE The Board, including the Independent Directors, also considered the investment performance of SunAmerica and Wellington with respect to the Fund. In connection with its review, the Board received and reviewed information regarding the investment performance of the Fund as compared to the Fund's peer group ("Peer Group") and peer universe ("Peer Universe") as independently determined by Broadridge and to an appropriate index or combination of indices, including the Fund's benchmarks. The Board was provided with a description of the methodology used by Broadridge to select the funds in the Peer Group and Peer Universe. The Board noted that performance information was for the periods ended March 31, 2016. The Board also noted that it regularly reviews the performance of the Fund throughout the year. The Board further noted that, while it monitors performance of the Fund closely, it generally attaches more importance to performance over relatively long periods of time, typically three to five years. The Board considered that the Fund's performance was below the median of its Peer Group and Peer Universe for the one-, three- and five-year periods. The Board further considered that the Fund underperformed its Broadridge Index for the one-, 32 SUNAMERICA SENIOR FLOATING RATE FUND, INC. APPROVAL OF THE INVESTMENT ADVISORY AND SUBADVISORY AGREEMENTS -- JUNE 30, 2016 -- (UNAUDITED) (CONTINUED) three- and five-year periods. The Board noted management's discussion of the Fund's performance and the current market conditions affecting the Fund's performance. The Board concluded that the Fund's performance was being addressed. CONSIDERATION OF THE MANAGEMENT FEES AND THE COST OF THE SERVICES AND PROFITS TO BE REALIZED BY SUNAMERICA, WELLINGTON AND THEIR AFFILIATES FROM THE RELATIONSHIP WITH THE FUND. The Board, including the Independent Directors, received and reviewed information regarding the fees to be paid by the Fund to SunAmerica pursuant to the Advisory Agreement and the fees paid by SunAmerica to Wellington pursuant to the Subadvisory Agreement. The Board examined this information in order to determine the reasonableness of the fees in light of the nature and quality of services to be provided and any potential additional benefits to be received by SunAmerica, Wellington or their affiliates in connection with providing such services to the Fund. To assist in analyzing the reasonableness of the management fees for the Fund, the Board received reports independently prepared by Broadridge. The reports showed comparative fee information for the Fund's Peer Group and Peer Universe as determined by Broadridge, including rankings within each category. In considering the reasonableness of the management fees to be paid by the Fund to SunAmerica, the Board reviewed a number of expense comparisons, including: (i) contractual and actual management fees; and (ii) actual total operating expenses. In considering the Fund's total operating expenses, the Board analyzed the level of fee waivers and expense reimbursements and the net expense caps contractually agreed upon by SunAmerica. The Board further considered that, unlike the funds in the Peer Group and Peer Universe, the fee waivers and/or reimbursements being made by SunAmerica with respect to the Funds are only reflected in the total expenses category of the Broadridge reports, rather than also being reflected as specific management fee waivers in the actual management fees category of the Broadridge reports. As a result, the Board took into account that the actual management fees presented by Broadridge for the funds in the Peer Group and Peer Universe may appear lower on a relative basis. The Board also considered the various expense components of the Fund and compared the Fund's net expense ratio to those of other funds within its Peer Group and Peer Universe as a guide to help assess the reasonableness of the management fee for the Fund. The Board acknowledged that it was difficult to make precise comparisons with other funds in the Peer Group and Peer Universe since the exact nature of services provided under the various fund agreements is often not apparent. The Board noted, however, that the comparative fee information provided by Broadridge as a whole was useful in assessing whether SunAmerica was providing services at a cost that was competitive with other, similar funds. The Board further considered services and management fees received by SunAmerica with respect to other mutual funds with similar investment strategies to the Fund. The Board then noted the management fee paid by the Fund was reasonable as compared to the fees SunAmerica was receiving from other mutual funds for which it serves as adviser. The Board also received and reviewed information regarding the fees paid by SunAmerica to Wellington pursuant to the Subadvisory Agreement. To assist in analyzing the reasonableness of the subadvisory fee, the Board received a report independently prepared by Broadridge. The report showed comparative fee information of the Fund's Peer Group and/or Peer Universe that the Directors used as a guide to help assess the reasonableness of the subadvisory fee. The Directors noted that the Peer Group/Universe information as a whole was useful in assessing whether Wellington was providing services at a cost that was competitive with other, similar funds. The Directors also considered that the subadvisory fee is paid by SunAmerica out of its management fees and not by the Fund, and that subadvisory fees may vary widely within a Peer Group for various reasons, including market pricing demands, existing relationships, experience and success, and individual client needs. The Board further considered the amount of subadvisory fee paid out by SunAmerica and the amount of the management fees which it retained and determined that these amounts were reasonable in light of the services performed by SunAmerica and the Subadviser, respectively. The Board also considered fees received by Wellington with respect to other mutual funds and accounts with similar investment strategies to the Fund, to the extent applicable. The Board noted in particular that the similar accounts identified by Wellington were institutional separate accounts, and Wellington highlighted certain differences between these separate accounts and the Fund, including that these separate accounts are subject to different investment limitations and restrictions and do not experience daily cash flows in a manner similar to the Fund. The Board then noted that the 33 SUNAMERICA SENIOR FLOATING RATE FUND, INC. APPROVAL OF THE INVESTMENT ADVISORY AND SUBADVISORY AGREEMENTS -- JUNE 30, 2016 -- (UNAUDITED) (CONTINUED) subadvisory fee paid by SunAmerica to Wellington was reasonable as compared to fees Wellington receives for other comparable accounts for which they serve as adviser or subadviser. The Board considered that the Fund's actual management fees were above the median of its Peer Group and Peer Universe. The Board also considered that the Fund's total expenses were above the median of its Peer Group and Peer Universe. The Board noted that the Fund's advisory fee contains breakpoints and further noted management's discussions regarding the Fund's expenses. PROFITABILITY The Board also considered SunAmerica's profitability and the benefits SunAmerica and its affiliates received from their relationship with the Fund. The Board received and reviewed financial statements relating to SunAmerica's financial condition and profitability with respect to the services it provided the Fund and considered how profit margins could affect SunAmerica's ability to attract and retain high quality investment professionals and other key personnel. The Board was also provided with a profitability analysis that detailed the revenues earned and the expenses incurred by SunAmerica and its affiliates that provide services to the Fund. In particular, the Board considered the contractual fee waivers and/or expense reimbursements agreed to by SunAmerica. The Board considered the profitability of SunAmerica under the Advisory Agreement, including the amount of management fees retained after payment to the Subadviser, as well as the profitability of SunAmerica under the Administrative Services Agreement, and considered the profitability of SunAmerica's affiliates under the Service Agreement and Rule 12b-1 Plans. Additionally, the Board considered whether SunAmerica, Wellington and their affiliates received any indirect benefits from the relationship with the Fund. Specifically, the Board observed that AIG Federal Savings Bank, an affiliate of SunAmerica, serves as custodian with respect to certain shareholder retirement accounts that are administered by SunAmerica and receives a fee payable by the qualifying shareholders. The Board further considered whether there were any collateral or "fall-out" benefits that SunAmerica and its affiliates may derive as a result of their relationship with the Fund. The Board noted that SunAmerica believes that any such benefits are de minimis and do not impact the reasonableness of the management fees. The Board also reviewed financial statements and/or other reports from the Wellington and considered whether Wellington had the financial resources necessary to attract and retain high quality investment management personnel and to provide a high quality of services. The Board concluded that SunAmerica and Wellington had the financial resources necessary to perform its obligations under the Agreements and to continue to provide the Fund with the high quality services that they had provided in the past. The Board further concluded that the management fees were reasonable in light of the factors discussed above. ECONOMIES OF SCALE The Board, including the Independent Directors, considered whether the shareholders would benefit from economies of scale and whether there was potential for future realization of economies with respect to the Fund. The Board considered that as a result of being part of the SunAmerica fund complex, the Fund shares common resources and may share certain expenses, and if the size of the complex increases, the Fund could incur lower expenses than it otherwise would achieve as a stand-alone entity. The Board also took into account that the Fund had a management fee arrangement that included breakpoints that will adjust the fee downward as the size of the Fund increases, thereby allowing the shareholders to potentially participate in any economies of scale. The Board further noted that SunAmerica has agreed to contractually cap the total annual operating expenses of the Fund at certain levels. The Board observed that those expense caps benefited shareholders by limiting total fees even in the absence of breakpoints or economies of scale. The Board concluded that the Fund's management fee structure was reasonable and that it would continue to review fees in connection with the renewal of the Advisory Agreement, including whether the implementation of additional breakpoints would be appropriate in the future due to an increase in asset size or otherwise. 34 SUNAMERICA SENIOR FLOATING RATE FUND, INC. APPROVAL OF THE INVESTMENT ADVISORY AND SUBADVISORY AGREEMENTS -- JUNE 30, 2016 -- (UNAUDITED) (CONTINUED) The Board noted that the Subadvisory Agreement included breakpoints, but did not review specific information regarding whether there have been economies of scale with respect to Wellington's management of the Fund because it regards that information as less relevant at the subadviser level. Rather, the Board considered information regarding economies of scale in the context of the renewal of the Advisory Agreement. OTHER FACTORS In consideration of the Agreements, the Board also received information regarding SunAmerica's and Wellington's brokerage and soft dollar practices. The Board considered that Wellington is responsible for decisions to buy and sell securities for the Fund, selection of broker-dealers and negotiation of commission rates, as applicable. The Board also considered that the Fund invests primarily in senior secured floating rate loans and, therefore, the Fund generally does not incur significant brokerage commissions. CONCLUSION After a full and complete discussion, the Board approved the Agreements, each for a one-year period ending June 30, 2017. Based upon its evaluation of all these factors in their totality, the Board, including the Independent Directors, was satisfied that the terms of the Agreements were fair and reasonable and in the best interests of the Fund and the Fund's shareholders. In arriving at a decision to approve the Agreements, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and each Independent Director may have attributed different weights to different factors. The Independent Directors were also assisted by the advice of independent legal counsel in making this determination. 35 [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 St. 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 Matthew Hackenthal, Fund's portfolio, which website at Acting Chief is available in the http://www.sec.gov. You Compliance Officer Fund's Statement of can also review and Gregory N. Bressler, Additional Information obtain copies of the Secretary may be ob-tained without Forms N-Q at the U.S. Gregory R. Kingston, charge upon request, by Securities and Exchange Treasurer calling (800) 858-8850. Commission's Public Kathleen Fuentes, Chief This in-formation is also Refer-ence Room in Legal Officer and available from the EDGAR Washington, DC Assistant Secretary database on the U.S. (information on the Matthew J. Hackethal, Secu-rities and Exchange operation of the Public Anti-Money Laundering Commission's website at Reference Room may be Compliance Officer http://www.sec.gov. ob-tained by calling Donna McManus, Vice DELIVERY OF SHAREHOLDER 1-800-SEC-0330). President and DOCUMENTS PROXY VOTING RECORD ON Assistant Treasurer The Fund has adopted a FUND PORTFOLIO SECURITIES Shawn Parry, Vice policy that allows it to Information regarding how President and send only one copy of the the Fund voted proxies Assistant Treasurer Fund's prospectus, proxy relating to securities INVESTMENT ADVISER material, annual report held in the Fund's SunAmerica Asset and semi-annual report portfolio during the most Management, LLC (the "shareholder recent twelve month Harborside Financial documents") to period ended June 30 is Center shareholders with available, once filed 3200 Plaza 5 multiple accounts with the U.S. Securities Jersey City, NJ residing at the same and Exchange Commis-sion, 07311-4992 "household." This without charge, upon DISTRIBUTOR practice is called request, by calling AIG Capital Services, householding and reduces (800) 858-8850 or on the Inc. Fund expenses, which U.S. Securities and Harborside Financial benefits you and other Exchange Commission's Center shareholders. Unless the website at 3200 Plaza 5 Fund receives http://www.sec.gov. Jersey City, NJ instructions to the This report is submitted 07311-4992 con-trary, you will only solely for the general SHAREHOLDER SERVICING receive one copy of the information of AGENT shareholder documents. shareholders of the Fund. SunAmerica Fund The Fund will continue to Distribution of this Services, Inc. household the report to persons other Harborside Financial share-holder documents than shareholders of the Center indefinitely, until we Fund is authorized only 3200 Plaza 5 are instructed otherwise. in connection with a Jersey City, NJ If you do not wish to currently effective 07311-4992 participate in prospectus, setting forth TRANSFER AGENT householding, please details of the Fund, State Street Bank and contact Shareholder which must precede or Trust Company Services at (800) accompany this report. P.O. Box 219373 858-8850 ext. 6010 or The accompanying report Kansas City, MO 64141 send a written request has not been audited by with your name, the name independent accountants of your fund(s) and your and accordingly no account number(s) to opinion has been SunAmerica Mutual Funds expressed thereon. 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 SFSAN - 6/16 [LOGO] Sun America Mutual Funds Item 2. Code of Ethics Not applicable. Item 3. Audit Committee Financial Expert. Not applicable. Item 4. Principal Accountant Fees and Services. Not applicable. Item 5. Audit Committee of Listed Registrants. Not applicable. Item 6. Investments. Included in Item 1 to the Form. Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable. Item 8. Portfolio Managers of Closed-End Management Investment Companies. Not applicable. Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. Not applicable. Item 10. Submission of Matters to a Vote of Security Holders. There were no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board of Directors that were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item 10. Item 11. Controls and Procedures. (a) An evaluation was performed within 90 days of the filing of this report, under the supervision and with the participation of the registrant's management, including the President and Treasurer, of the effectiveness of the design and operation of the registrant's disclosure controls and procedures (as defined under Rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c))). Based on that evaluation, the registrant's management, including the President and Treasurer, concluded that the registrant's disclosure controls and procedures are effective. (b) There was no change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d))) that occurred during the registrant's last fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal contro1 over financial reporting. Item 12. Exhibits. (a) (1) Not Applicable. (2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT. (3) Not applicable. (b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) and Section 906 of the Sarbanes- Oxley Act of 2002 attached hereto as Exhibit 99.906.CERT. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SunAmerica Senior Floating Rate Fund, Inc. By: /s/ John T. Genoy ------------------------------------ John T. Genoy President Date: September 7, 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: September 7, 2016 By: /s/ Gregory R. Kingston ------------------------------------ Gregory R. Kingston Treasurer Date: September 7, 2016