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 811-21482
---------------------------------------
SunAmerica Specialty Series
--------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Harborside 5, 185 Hudson Street, Suite 3300, Jersey City, NJ 07311
--------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
John T. Genoy
Senior Vice President
SunAmerica Asset Management, LLC
Harborside 5,
185 Hudson Street, Suite 3300
Jersey City, NJ 07311
--------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (201) 324-6414
------------------------
Date of fiscal year end: October 31
------------------------
Date of reporting period: April 30, 2017
------------------------
Item 1. Reports to Stockholders
2017 SEMI-ANNUAL REPORT
SunAmerica Specialty Series
High Watermark Fund
2020 High Watermark Fund
SunAmerica
Alternative Strategies Fund
Global Trends Fund
Focused Alpha Growth Fund
Focused Alpha Large-Cap Fund
Income Explorer Fund
Small-Cap Fund
[GRAPHIC]
[LOGO]
Table of Contents
MESSAGE FROM THE PRESIDENT.................................. 2
EXPENSE EXAMPLE............................................. 5
STATEMENT OF ASSETS AND LIABILITIES......................... 7
STATEMENT OF OPERATIONS..................................... 9
STATEMENT OF CHANGES IN NET ASSETS.......................... 11
FINANCIAL HIGHLIGHTS........................................ 13
PORTFOLIO OF INVESTMENTS.................................... 21
NOTES TO FINANCIAL STATEMENTS............................... 70
A Message from the President -- (unaudited)
Dear Shareholders:
We are pleased to present this semi-annual report for the SunAmerica Specialty
Series (the "Specialty Series"), including 2020 High Watermark Fund, AIG
Commodity Strategy Fund, AIG Global Trends Fund, AIG Focused Multi-Cap Growth
Fund, AIG Focused Alpha Large-Cap Fund, AIG Income Explorer Fund, AIG Small-Cap
Fund and AIG ESG Dividend Fund (the "Funds"), for the six-month period ended
April 30, 2017. Please note that effective February 28, 2017, SunAmerica Mutual
Funds was rebranded as AIG Funds, and each Fund's name was changed accordingly.
Effective the same date, SunAmerica Focused Alpha Growth Fund was renamed AIG
Focused Multi-Cap Growth Fund. The 2020 High Watermark Fund did not change its
name. SunAmerica Asset Management, LLC, the investment adviser to each Fund,
continues to serve as investment adviser of the Funds and retains its current
name. In addition, there was no change in the Funds' investment goals or
strategies, portfolio managers or ticker symbols in connection with the
rebranding.
Overall, global equities rallied during the semi-annual period, while global
bonds and commodities lost ground. Investor sentiment was dominated during the
semi-annual period by global central bank monetary policy, geopolitical events
and uncertain policy prospects of the new U.S. Administration.
As the semi-annual period began, investors were focused largely on the November
2016 U.S. presidential elections and, soon after, on the unexpected outcome.
U.S. equity markets reacted positively following the surprise results, as the
potential for increased infrastructure spending, lower taxes and reduced
regulation heightened anticipation about economic growth and inflation.
Investors rotated out of the defensive, yield-oriented sectors that had driven
capital markets for much of the prior year and into more cyclical areas of the
market. Overseas, the U.K. officially began the process of leaving the European
Union, popularly known as Brexit. European equities performed well, having
rebounded from June 2016's sell-off, based in part on favorable corporate
earnings results. Further, investors responded positively to the European
Central Bank's tapering of its asset purchases, even as caution persisted given
political uncertainties surrounding the then-upcoming presidential election in
France. After the U.S. Administration was unsuccessful in its first attempt to
pass a health care bill in the spring of 2017, investors became concerned about
its ability to enact legislation. Global equities gave up some gains, with
cyclical stocks generally underperforming defensive stocks. Emerging markets
equities, which had struggled early in the semi-annual period due to concerns
about new U.S. policies that could have protectionist implications, then
rallied sharply to end the semi-annual period in solidly positive territory.
Global risk sentiment was buoyed by the results of the first round in the
French presidential election, which were widely interpreted by investors as
pro-market. Emerging markets equities were also impacted positively by a weak
U.S. dollar in April 2017.
The broad global fixed income market produced slightly negative returns during
the semi-annual period overall. In the U.S., the yield on the 10-year U.S.
Treasury note rose with the post-election U.S. Treasury sell-off, moderately
offset by a recovery in prices year-to-date through April 30, 2017. The U.S.
Treasury yield curve flattened slightly during the semi-annual period overall,
as yields on longer- and intermediate-term maturities rose less than yields on
shorter-term maturities. Despite the increase in U.S. Treasury yields, spread,
or non-government bond, sectors generally performed well, as economic recovery
improved and investors looked for new fiscal stimulus under the new
Administration. More specifically, high yield corporate bonds, investment grade
corporate bonds and sovereign emerging markets debt recorded solid gains,
outperforming U.S. Treasuries. In addition, agency securities, commercial
mortgage-backed securities, asset-backed securities and mortgage-backed
securities outperformed U.S. Treasuries, though more modestly. Meanwhile, the
Federal Reserve (the "Fed"), citing an improved U.S. labor market and
moderately expanding economic activity, raised the targeted federal funds rate
twice during the semi-annual period - in December 2016 and March 2017 - by
0.25% each time.
In commodities, oil prices rallied in November 2016 but then declined in the
early months of 2017 in part due to uncertainty around OPEC production limits.
Conversely, gold saw a sell-off following the U.S. elections but then gained
during the first few months of 2017 to end the semi-annual period with prices
only slightly below where they had started.
2
A Message from the President -- (unaudited) (continued)
Amid these conditions, the investment markets posted mixed results during the
semi-annual period. Despite some marked volatility, U.S. equities modestly
outpaced international equities, with the representative S&P 500 Index/*/
returning 13.32%. International equity markets, as represented by the MSCI ACWI
(Net),/*/ returned 11.76%. U.S. bonds, as represented by Bloomberg Barclays
U.S. Aggregate Bond Index,/*/ and global bonds, as represented by Bloomberg
Barclays Global Aggregate Bond Index,/*/ posted returns of -0.67% and -1.63%,
respectively, for the semi-annual period overall. The Citigroup 10-Year U.S.
Treasury Benchmark Index/*/ returned -3.11%, while international government
bonds, as represented by the Citigroup WGBI (USD, hedged),/*/ returned -0.81%.
Meanwhile, the Bloomberg Barclays U.S. Government 1-3 Year Index/*/ was
essentially flat, returning 0.04% for the same time period. Commodities, as
represented by the Bloomberg Commodity Index,/*/ returned -0.76% for the
semi-annual period.
On the following pages, you will find financial statements and portfolio
information for each of the Specialty Series Funds for the six-month period
ended April 30, 2017.
We thank you for being a part of the Specialty Series Funds. We value your
ongoing confidence in us and look forward to serving your investment needs in
the future. As always, if you have any questions regarding your investments,
please contact your financial advisor or get in touch with us directly at
800-858-8850 or via our new website, www.aig.com/funds.
Sincerely,
/s/ Peter A. Harbeck
Peter A. Harbeck
President & CEO
SunAmerica Asset Management, LLC
--------
Past performance is no guarantee of future results. Diversification and asset
allocation do not guarantee a profit nor protect against a loss.
* The S&P 500 Index is Standard & Poor's 500 Composite Stock Price Index, a
widely-recognized, unmanaged index of common stock prices. The MSCI ACWI (All
Country World Index) (Net) is a free float-adjusted market
capitalization-weighted index that is designed to measure the equity market
performance of developed and emerging markets. It consists of 46 country
indices comprising 23 developed and 23 emerging market country indices. Net
total return indices reinvest dividends after the deduction of withholding
taxes, using (for international indices) a tax rate applicable to non-resident
institutional investors who do not benefit from double taxation treaties. The
Bloomberg Barclays U.S. Aggregate Bond Index represents securities that are
SEC-registered, taxable and dollar denominated. The index covers the U.S.
investment-grade fixed-rate bond market, with index components for government
and corporate securities, mortgage pass-through securities and asset-backed
securities. The Bloomberg Barclays Global Aggregate Bond Index provides a
broad-based measure of the global investment grade fixed-rate debt markets. It
is comprised of the U.S. Aggregate, Pan-European Aggregate and Asian- Pacific
Aggregate Indexes. It also includes a wide range of standard and customized
sub-indices by liquidity constraint, sector, quality and maturity. The
Citigroup 10-Year U.S. Treasury Benchmark Index is an unmanaged index that
computes returns for the current Treasury Notes with a maturity of 10 years or
less. Treasury Notes are fixed income securities whose interest and principal
payments are backed by the full faith and credit of the U.S. government. The
Citigroup WGBI (World Government Bond Index) (USD, hedged) is a market
capitalization-weighted bond index consisting of the government bond markets of
over 20 countries. Country eligibility in the WGBI is determined by market
size, credit and barriers-to-entry requirement criteria. The index includes all
fixed-rate bonds with a remaining maturity of one year or longer and with
amounts outstanding of at least the equivalent of US$25 million. The Bloomberg
Barclays U.S. Government 1-3 Year Index consists of securities in the U.S.
Government Index with a maturity from 1 up to (but not including) 3 years. The
index includes publicly issued debt of U.S. Government agencies, quasi-federal
corporations, and corporate or foreign debt guaranteed by the U.S. Government.
The Bloomberg Commodity Index is a broadly diversified index made up of 22
exchange-traded futures on physical commodities weighted to account for
economic significance and market liquidity. Indices are not managed and an
investor cannot invest directly in an index.
The 2020 High Watermark Fund's subadviser employs a disciplined quantitative
approach through a proprietary, computer-assisted methodology to construct and
rebalance the Fund's portfolio. This construction and rebalancing process is
similar to asset allocation except that it controls not only
3
A Message from the President -- (unaudited) (continued)
portfolio assets such as U.S. government securities but also the portfolio's
exposures to equity markets via futures contracts and from time to time options
contracts. Under certain circumstances, the Fund may be required to invest 100%
of its assets in fixed income securities. In these circumstances, the Fund may
not participate meaningfully in any subsequent recovery in the equity markets.
Use of fixed income securities reduces the Fund's ability to participate as
fully in upward equity market movements, and therefore, represents some loss of
opportunity compared to portfolios that are fully invested in equities.
On the 2020 High Watermark Fund's Protected Maturity Date, the Fund is designed
to return to shareholders the highest net asset value (NAV) attained during the
life of the Fund, adjusted as a result of dividends, distribution and
extraordinary expenses. This NAV is the Fund's Protected High Watermark Value.
The 2020 High Watermark Fund's undertaking (the "Payment Undertaking") that
shareholders in the Fund will be entitled to redeem their shares on the
Protected Maturity Date for the Protected High Watermark Value is backed by a
master agreement ("Master Agreement") between SunAmerica Specialty Series, on
behalf of the 2020 High Watermark Fund, and Prudential Global Funding ("PGF"),
under which PGF will pay to the Fund any shortfall between the Protected High
Watermark Value and the actual NAV per share on the Fund's Protected Maturity
Date, provided certain conditions are met. PGF's obligations are guaranteed by
its parent company, Prudential Financial Inc., ("Prudential Financial"). The
Master Agreement is solely the obligation of PGF and Prudential Financial. The
Master Agreement is an obligation that runs solely to the 2020 High Watermark
Fund, not to the Fund's shareholders. PGF's obligations under the Master
Agreement are dependent on the financial condition of PGF and Prudential
Financial. A shareholder's payout will be reduced by any redemption of Fund
shares or dividends and distributions taken in cash, sales charges and
extraordinary fund expenses. Dividends and distributions from the Fund are
taxable whether or not you reinvest them in additional shares of the Fund. The
Payment Undertaking does not apply to shares redeemed prior to the Protected
Maturity Date and shareholders can lose money on shares redeemed early. If
certain obligations are not performed under the Master Agreement (Master
Agreement risk), shareholders will receive upon redemption the then-current net
asset value, which may be lower than the current high watermark value. Neither
the Fund nor SunAmerica Asset Management, LLC, the Fund's investment adviser,
is obligated to replace the Master Agreement provider or Prudential Financial
should they be unable to make payments under the Master Agreement. The Master
Agreement increases the Fund's expenses and could lower fund performance. If
the Master Agreement is terminated, the fee payable under a new agreement may
be higher.
The AIG Commodity Strategy Fund is not a complete investment program and should
not be an investor's sole investment because its performance is linked to the
performance of highly volatile commodities. Investors should consider buying
shares of the AIG Commodity Strategy Fund only as part of an overall portfolio
strategy that includes other asset classes, such as fixed income and equity
investments. Investors in the AIG Commodity Strategy Fund should be willing to
assume greater risks of potentially significant short-term share price
fluctuation because of the AIG Commodity Strategy Fund's investments in
commodity-linked derivative instruments.
The risks associated with the AIG Global Trends Fund's use of futures contracts
include the risk that:
(i) changes in the price of a futures contract may not always track the changes
in market value of the underlying reference asset; (ii) trading restrictions or
limitations may be imposed by an exchange, and government regulations may
restrict trading in futures contracts; and (iii) if the Fund has insufficient
cash to meet margin requirements, the Fund may need to sell other investments,
including at disadvantageous times. Forwards are not exchange-traded and
therefore no clearinghouse or exchange stands ready to meet the obligations of
the contracts. Thus, the Fund faces the risk that its counterparties may not
perform their obligations. Investments that provide exposure to foreign markets
involve special risks, such as currency fluctuations, differing financial
reporting and regulatory standards, and economic and political instability.
These risks are highlighted when the issuer is in an emerging market. Fixed
income securities and currency and fixed income futures are subject to changes
in their value when prevailing interest rates change. Adverse changes in
currency exchange rates (relative to the U.S. dollar) may erode or reverse any
potential gains from futures instruments that are tied to foreign instruments
or currencies. The Fund also has exposure to the commodities markets, which may
subject it to greater volatility than investments in traditional securities.
The AIG Global Trends Fund expects to invest a significant portion of its
assets in repurchase agreements collateralized by the U.S. government and its
agencies, and may also invest in other high-quality, short-term securities
("money market instruments"). The primary purpose of the repurchase agreements
and other money market instruments held by the Fund will be to serve as
collateral for the futures instruments. The Fund's investments in repurchase
agreements involve certain risks involving the default or insolvency of the
seller and counterparty risk (i.e., the risk that the counterparty will not
perform its obligations). The Fund's return is expected to be derived
principally from changes in the value of the assets underlying the futures
instruments held by the Fund. Active trading of the Fund's portfolio may result
in high portfolio turnover and correspondingly greater brokerage commissions
and other transaction costs, which will be borne directly by the Fund and which
will affect the Fund's performance. Active trading may also result in increased
tax liability for Fund shareholders. Investors should note that the ability of
the subadviser to successfully implement the Fund's strategies, including the
proprietary investment process used by the subadviser, will influence the
performance of the Fund significantly.
Focused funds are less diversified than typical mutual funds; therefore, the
performance of each holding in a focused fund has a greater impact upon the
overall portfolio, which increases risk. Stocks of small-cap and mid-cap
companies are generally more volatile than and not as readily marketable as
those of larger companies, and may have fewer resources and a greater risk of
business failure than do large companies.
4
SunAmerica Specialty Series
EXPENSE EXAMPLE -- April 30, 2017 -- (unaudited)
Disclosure of Fund Expenses in Shareholder Reports
As a shareholder of a Fund (each a "Fund" and collectively, the "Funds") in the
SunAmerica Specialty Series (the "Trust"), you may incur two types of costs:
(1) transaction costs, including applicable sales charges (loads) on purchase
payments and contingent deferred sales charges and (2) ongoing costs, including
management fees; distribution and account maintenance fees; and other Fund
expenses. This Example is intended to help you understand your ongoing costs
(in dollars) of investing in the Funds and to compare these costs with the
ongoing costs of investing in other mutual funds. The Example is based on an
investment of $1,000 invested at November 1, 2016 and held until April 30, 2017.
Actual Expenses
The "Actual" section of the table provides information about your 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 April 30, 2017" to estimate the expenses you paid
on your account during this period. For shareholder accounts in classes other
than Class I and Class W, the "Expenses Paid During the Six Months Ended April
30, 2017" 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 April 30, 2017" 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 Funds' prospectuses, your retirement plan document and/or materials from
your financial advisers for a full description of these fees. Had these fees
been included, the "Expenses Paid During the Six Months Ended April 30, 2017"
column would have been higher and the "Ending Account Value" column would have
been lower.
Hypothetical Example for Comparison Purposes
The "Hypothetical" section of the table provides information about hypothetical
account values and hypothetical expenses based on each Fund's actual expense
ratio and an annual rate of return of 5% before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare the ongoing costs of investing
in the Funds and other funds. To do so, compare this 5% hypothetical example
with the 5% hypothetical examples that appear in the shareholder reports of
other funds. For shareholder accounts in classes other than Class I and Class
W, the "Expenses Paid During the Six Months Ended April 30, 2017" 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 April
30, 2017" 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 Funds'
prospectuses, your retirement plan document and/or materials from your
financial advisers for a full description of these fees. Had these fees been
included, the "Expenses Paid During the Six Months Ended April 30, 2017" column
would have been higher and the "Ending Account Value" column would have been
lower.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transaction costs, including sales
charges on purchase payments, contingent deferred sales charges; small account
fees and administrative fees, if applicable, to your account. Please refer to
the Funds' prospectus, your retirement plan document and/or 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
transactional costs and other fees were included, your costs would have been
higher.
5
SunAmerica Specialty Series
EXPENSE EXAMPLE -- April 30, 2017 -- (unaudited) (continued)
Actual Hypothetical
------------------------------------------------ -----------------------------------------------
Ending Account
Ending Account Expenses Paid Value Using a Expenses Paid
Beginning Value Using During the Beginning Hypothetical 5% During the
Account Value Actual Return at Six Months Ended Account Value Annual Return Six Months Ended
at November 1, April 30, April 30, at November 1, at April 30, April 30,
2016 2017 2017* 2016 2017 2017*
-------------- ---------------- ---------------- -------------- --------------- ----------------
2020 High Watermark Fund
Class A#................ $1,000.00 $ 989.22 $ 5.67 $1,000.00 $1,019.09 $ 5.76
Class C#................ $1,000.00 $ 986.35 $ 8.87 $1,000.00 $1,015.87 $ 9.00
Class I#................ $1,000.00 $ 990.94 $ 3.36 $1,000.00 $1,021.42 $ 3.41
AIG Commodity Strategy
Fund@+
Class A#................ $1,000.00 $ 975.99 $ 8.43 $1,000.00 $1,016.27 $ 8.60
Class C#................ $1,000.00 $ 973.68 $11.60 $1,000.00 $1,013.04 $11.83
Class W#................ $1,000.00 $ 976.29 $ 7.45 $1,000.00 $1,017.26 $ 7.60
AIG ESG Dividend Fund++
Class A#................ $1,000.00 $1,028.00 $ 4.72 $1,000.00 $1,018.60 $ 6.26
Class C#................ $1,000.00 $1,025.33 $ 7.17 $1,000.00 $1,015.37 $ 9.49
Class W#................ $1,000.00 $1,028.67 $ 3.97 $1,000.00 $1,019.59 $ 5.26
AIG Focused Alpha
Large-Cap Fund+
Class A................. $1,000.00 $1,157.81 $ 8.83 $1,000.00 $1,016.61 $ 8.25
Class C................. $1,000.00 $1,154.28 $12.29 $1,000.00 $1,013.39 $11.48
Class W#................ $1,000.00 $1,158.80 $ 8.14 $1,000.00 $1,017.26 $ 7.60
AIG Focused Multi-Cap
Growth Fund+
Class A................. $1,000.00 $1,144.97 $ 8.88 $1,000.00 $1,016.51 $ 8.35
Class C................. $1,000.00 $1,141.64 $12.32 $1,000.00 $1,013.29 $11.58
Class W................. $1,000.00 $1,146.46 $ 7.77 $1,000.00 $1,017.55 $ 7.30
AIG Global Trends Fund@+
Class A#................ $1,000.00 $1,041.37 $ 9.46 $1,000.00 $1,015.52 $ 9.35
Class C#................ $1,000.00 $1,038.68 $12.74 $1,000.00 $1,012.30 $12.57
Class W#................ $1,000.00 $1,043.27 $ 8.46 $1,000.00 $1,016.51 $ 8.35
AIG Income Explorer Fund+
Class A#................ $1,000.00 $1,082.16 $ 8.88 $1,000.00 $1,016.27 $ 8.60
Class C#................ $1,000.00 $1,078.18 $12.21 $1,000.00 $1,013.04 $11.83
Class W#................ $1,000.00 $1,083.27 $ 7.85 $1,000.00 $1,017.26 $ 7.60
AIG Small-Cap Fund+
Class A#................ $1,000.00 $1,198.19 $ 9.37 $1,000.00 $1,016.27 $ 8.60
Class C#................ $1,000.00 $1,194.19 $12.89 $1,000.00 $1,013.04 $11.83
Class W#................ $1,000.00 $1,198.99 $ 8.29 $1,000.00 $1,017.26 $ 7.60
----------
Annualized
Expense
Ratio*
----------
2020 High Watermark Fund
Class A#................ 1.15%
Class C#................ 1.80%
Class I#................ 0.68%
AIG Commodity Strategy
Fund@+
Class A#................ 1.72%
Class C#................ 2.37%
Class W#................ 1.52%
AIG ESG Dividend Fund++
Class A#................ 1.25%
Class C#................ 1.90%
Class W#................ 1.05%
AIG Focused Alpha
Large-Cap Fund+
Class A................. 1.65%
Class C................. 2.30%
Class W#................ 1.52%
AIG Focused Multi-Cap
Growth Fund+
Class A................. 1.67%
Class C................. 2.32%
Class W................. 1.46%
AIG Global Trends Fund@+
Class A#................ 1.87%
Class C#................ 2.52%
Class W#................ 1.67%
AIG Income Explorer Fund+
Class A#................ 1.72%
Class C#................ 2.37%
Class W#................ 1.52%
AIG Small-Cap Fund+
Class A#................ 1.72%
Class C#................ 2.37%
Class W#................ 1.52%
--------
* Expenses are equal to each Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 181 days then divided
by 365 days (to reflect the one-half year period), except for the ESG
Dividend Fund "Actual Return" information which was multiplied by 136 days
then divided by 365 days.
These ratios do not reflect transaction costs, including sales charges on
purchase payments, contingent deferred sales charges, small account fees and
administrative fees, if applicable to your account. Please refer to your
Prospectus, your retirement plan document and/or materials from your
financial adviser, 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 Funds or
through recoupment provisions, recovered a portion of or all fees and
expenses waived or reimbursed in the previous two fiscal years. 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 April 30,
2017" and the "Annualized Expense Ratio" would have been higher. If these
fees and expenses had not been recouped, the "Actual/Hypothetical Ending
Account Value" would have been higher and the "Actual/Hypothetical Expenses
Paid During the Six Months Ended April 30, 2017" and the "Annualized Expense
Ratio" would have been lower.
@ Consolidated (see Note 2)
+ See Note 1
++ Commencement of operations on December 16, 2017.
6
SunAmerica Specialty Series
STATEMENT OF ASSETS AND LIABILITIES -- April 30, 2017 -- (unaudited)
AIG AIG
AIG AIG Focused Focused AIG
2020 High Commodity ESG Alpha Multi-Cap Global
Watermark Strategy Dividend Large-Cap Growth Trends
Fund Fund#+ Fund Fund+ Fund+ Fund#+
----------- ----------- ----------- ------------ ------------ -----------
ASSETS:
Investments at value (unaffiliated)*................ $24,300,242 $12,666,170 $21,039,926 $580,264,642 $509,617,280 $ --
Repurchase agreements (cost approximates
value)............................................. 1,118,000 22,770,000 -- -- -- 34,485,000
----------- ----------- ----------- ------------ ------------ -----------
Total investments................................. 25,418,242 35,436,170 21,039,926 580,264,642 509,617,280 34,485,000
----------- ----------- ----------- ------------ ------------ -----------
Cash................................................ 522 4,278 78,755 -- 1,154 6,067
Foreign Cash*....................................... -- -- -- -- -- --
Receivable for:
Shares of beneficial interest sold................ -- 11,329 6,000 147,866 300,562 6,929
Dividends and interest............................ 8 17,056 36,094 144,669 62,824 2,284
Investments sold.................................. -- -- -- -- -- --
Prepaid expenses and other assets................... 7,315 7,538 4 8,956 10,004 7,281
Due from broker..................................... -- 2,680,989 -- -- -- 1,909,084
Due from investment adviser for expense
reimbursements/fee waivers......................... 72,065 72,233 53,005 561 -- 48,070
Deferred offering costs............................. -- -- 96,308 -- -- --
Unrealized appreciation on forward foreign currency
contracts.......................................... -- -- -- -- -- 68,382
Variation margin on futures contracts............... -- 162,534 -- -- -- 25,324
Unrealized appreciation on swap contracts........... -- 1,139 -- -- -- --
----------- ----------- ----------- ------------ ------------ -----------
Total assets...................................... 25,498,152 38,393,266 21,310,092 580,566,694 509,991,824 36,558,421
----------- ----------- ----------- ------------ ------------ -----------
LIABILITIES:
Payable for:
Shares of beneficial interest redeemed............ 26,386 42,517 7,293 818,962 574,601 10,985
Investments purchased............................. -- 3,907 -- -- -- --
Investments purchased on an extended
settlement basis................................. -- -- -- -- -- --
Payments on swap contracts........................ -- 250,121 -- -- -- --
Investment advisory and management fees........... 13,839 25,776 13,039 466,323 408,249 27,598
Distribution and service maintenance fees......... 7,673 12,478 6,210 221,402 182,590 12,461
Transfer agent fees and expenses.................. 5,849 8,156 2,483 118,751 111,266 7,860
Trustees' fees and expenses....................... 225 247 2,223 3,610 3,805 270
Prudential Global Funding, Inc. (see Note 1)...... 7,452 -- -- -- -- --
Other accrued expenses............................ 42,127 80,455 67,918 259,817 240,316 78,023
Call and put options written, at value@........... -- 17,961 -- -- -- --
Unrealized depreciation on forward foreign currency
contracts.......................................... -- -- -- -- -- 50,804
Due to custodian.................................... -- 273,583 -- 45,550 -- --
Variation margin on futures contracts............... 280 56,521 -- -- -- 29,161
----------- ----------- ----------- ------------ ------------ -----------
Total liabilities................................. 103,831 771,722 99,166 1,934,415 1,520,827 217,162
----------- ----------- ----------- ------------ ------------ -----------
NET ASSETS.......................................... $25,394,321 $37,621,544 $21,210,926 $578,632,279 $508,470,997 $36,341,259
=========== =========== =========== ============ ============ ===========
AIG
Income AIG
Explorer Small-Cap
Fund+ Fund+
----------- -----------
ASSETS:
Investments at value (unaffiliated)*................ $31,308,055 $55,695,075
Repurchase agreements (cost approximates
value)............................................. 227,000 223,000
----------- -----------
Total investments................................. 31,535,055 55,918,075
----------- -----------
Cash................................................ 47,763 26,221
Foreign Cash*....................................... 17,355 --
Receivable for:
Shares of beneficial interest sold................ 104,446 390,615
Dividends and interest............................ 154,979 17,251
Investments sold.................................. -- 406,417
Prepaid expenses and other assets................... 7,294 7,641
Due from broker..................................... -- --
Due from investment adviser for expense
reimbursements/fee waivers......................... 27,900 36,925
Deferred offering costs............................. -- --
Unrealized appreciation on forward foreign currency
contracts.......................................... -- --
Variation margin on futures contracts............... -- --
Unrealized appreciation on swap contracts........... -- --
----------- -----------
Total assets...................................... 31,894,792 56,803,145
----------- -----------
LIABILITIES:
Payable for:
Shares of beneficial interest redeemed............ 8,692 19,339
Investments purchased............................. 6,514 561,145
Investments purchased on an extended
settlement basis................................. 45,929 --
Payments on swap contracts........................ -- --
Investment advisory and management fees........... 25,248 44,816
Distribution and service maintenance fees......... 10,761 15,745
Transfer agent fees and expenses.................. 6,196 10,886
Trustees' fees and expenses....................... 123 264
Prudential Global Funding, Inc. (see Note 1)...... -- --
Other accrued expenses............................ 35,107 46,364
Call and put options written, at value@........... -- --
Unrealized depreciation on forward foreign currency
contracts.......................................... -- --
Due to custodian.................................... -- --
Variation margin on futures contracts............... -- --
----------- -----------
Total liabilities................................. 138,570 698,559
----------- -----------
NET ASSETS.......................................... $31,756,222 $56,104,586
=========== ===========
--------
# Consolidated (see Note 2)
+ See Note 1
See Notes to Financial Statements
7
SunAmerica Specialty Series
STATEMENT OF ASSETS AND LIABILITIES -- April 30, 2017 -- (unaudited)
(continued)
AIG AIG
AIG AIG Focused Focused
2020 High Commodity ESG Alpha Multi-Cap
Watermark Strategy Dividend Large-Cap Growth
Fund Fund#+ Fund Fund+ Fund+
----------- ------------ ----------- ------------ ------------
NET ASSETS REPRESENTED BY:
Paid-in capital.................................... $24,433,050 $134,845,876 $20,341,280 $445,381,447 $335,547,811
Accumulated undistributed net investment income
(loss)............................................ 222,344 (12,174,987) 113,829 (3,712,335) (7,492,423)
Accumulated undistributed net realized gain (loss)
on investments, futures contracts, written
options contracts, swap contracts and foreign
exchange transactions............................. (1,077,540) (84,060,289) 98,802 5,955,606 17,342,048
Unrealized appreciation (depreciation) on
investments....................................... 1,816,057 (152,551) 657,015 131,007,561 163,074,268
Unrealized appreciation (depreciation) on futures
contracts, written options contracts and swap
contracts......................................... 410 (836,505) -- -- --
Unrealized foreign exchange gain (loss) on other
assets and liabilities............................ -- -- -- -- (707)
----------- ------------ ----------- ------------ ------------
Net Assets......................................... $25,394,321 $ 37,621,544 $21,210,926 $578,632,279 $508,470,997
=========== ============ =========== ============ ============
*Cost
Investments (unaffiliated)....................... $22,484,185 $ 12,818,721 $20,382,911 $449,257,081 $346,543,012
=========== ============ =========== ============ ============
Foreign cash..................................... $ -- $ -- $ -- $ -- $ --
=========== ============ =========== ============ ============
@Premiums received on options written.............. $ -- $ 23,523 $ -- $ -- $ --
=========== ============ =========== ============ ============
Class A (unlimited shares authorized):
Net assets......................................... $16,703,549 $ 32,898,159 $20,526,831 $452,731,756 $392,389,715
Shares of beneficial interest issued and
outstanding....................................... 1,903,485 4,760,100 1,331,161 16,498,585 14,661,806
Net asset value and redemption price per share
(excluding any applicable contingent deferred
sales charge)..................................... $ 8.78 $ 6.91 $ 15.42 $ 27.44 $ 26.76
Maximum sales charge (5.75% of offering
price)............................................ 0.54 0.42 0.95 1.68 1.63
----------- ------------ ----------- ------------ ------------
Maximum offering price to public................... $ 9.32 $ 7.33 $ 16.37 $ 29.11 $ 28.39
=========== ============ =========== ============ ============
Class C (unlimited shares authorized):
Net assets......................................... $ 1,475,073 $ 2,968,328 $ 341,506 $114,236,901 $ 85,310,473
Shares of beneficial interest issued and
outstanding....................................... 166,722 445,938 22,200 4,325,865 3,319,841
Net asset value, offering and redemption price per
share (excluding any applicable contingent
deferred sales charge)............................ $ 8.85 $ 6.66 $ 15.38 $ 26.41 $ 25.70
=========== ============ =========== ============ ============
Class I (unlimited shares authorized):
Net assets......................................... $ 7,215,699 $ -- $ -- $ -- $ --
Shares of beneficial interest issued and
outstanding....................................... 820,803 -- -- -- --
Net asset value, offering and redemption price per
share............................................. $ 8.79 $ -- $ -- $ -- $ --
=========== ============ =========== ============ ============
Class W (unlimited shares authorized):
Net assets......................................... $ -- $ 1,755,057 $ 342,589 $ 11,663,622 $ 30,770,809
Shares of beneficial interest issued and
outstanding....................................... -- 250,726 22,200 420,583 1,136,665
Net asset value, offering and redemption price per
share............................................. $ -- $ 7.00 $ 15.43 $ 27.73 $ 27.07
=========== ============ =========== ============ ============
AIG AIG
Global Income AIG
Trends Explorer Small-Cap
Fund#+ Fund+ Fund+
----------- ----------- -----------
NET ASSETS REPRESENTED BY:
Paid-in capital.................................... $40,472,980 $31,471,150 $45,793,610
Accumulated undistributed net investment income
(loss)............................................ (5,167,411) 84,995 (341,820)
Accumulated undistributed net realized gain (loss)
on investments, futures contracts, written
options contracts, swap contracts and foreign
exchange transactions............................. 857,772 (1,210,144) 1,976,386
Unrealized appreciation (depreciation) on
investments....................................... -- 1,409,983 8,676,410
Unrealized appreciation (depreciation) on futures
contracts, written options contracts and swap
contracts......................................... 179,910 -- --
Unrealized foreign exchange gain (loss) on other
assets and liabilities............................ (1,992) 238 --
----------- ----------- -----------
Net Assets......................................... $36,341,259 $31,756,222 $56,104,586
=========== =========== ===========
*Cost
Investments (unaffiliated)....................... $ -- $29,898,072 $47,018,665
=========== =========== ===========
Foreign cash..................................... $ -- $ 17,271 $ --
=========== =========== ===========
@Premiums received on options written.............. $ -- $ -- $ --
=========== =========== ===========
Class A (unlimited shares authorized):
Net assets......................................... $31,294,329 $26,398,589 $50,117,907
Shares of beneficial interest issued and
outstanding....................................... 2,390,062 1,716,277 2,734,910
Net asset value and redemption price per share
(excluding any applicable contingent deferred
sales charge)..................................... $ 13.09 $ 15.38 $ 18.33
Maximum sales charge (5.75% of offering
price)............................................ 0.80 0.94 1.12
----------- ----------- -----------
Maximum offering price to public................... $ 13.89 $ 16.32 $ 19.45
=========== =========== ===========
Class C (unlimited shares authorized):
Net assets......................................... $ 3,964,723 $ 4,049,966 $ 1,414,698
Shares of beneficial interest issued and
outstanding....................................... 314,199 263,772 79,004
Net asset value, offering and redemption price per
share (excluding any applicable contingent
deferred sales charge)............................ $ 12.62 $ 15.35 $ 17.91
=========== =========== ===========
Class I (unlimited shares authorized):
Net assets......................................... $ -- $ -- $ --
Shares of beneficial interest issued and
outstanding....................................... -- -- --
Net asset value, offering and redemption price per
share............................................. $ -- $ -- $ --
=========== =========== ===========
Class W (unlimited shares authorized):
Net assets......................................... $ 1,082,207 $ 1,307,667 $ 4,571,981
Shares of beneficial interest issued and
outstanding....................................... 81,637 85,026 247,850
Net asset value, offering and redemption price per
share............................................. $ 13.26 $ 15.38 $ 18.45
=========== =========== ===========
--------
# Consolidated (see Note 2)
+ See Note 1
See Notes to Financial Statements
8
SunAmerica Specialty Series
STATEMENT OF OPERATIONS -- For the period ended April 30, 2017 --
(unaudited)
AIG AIG
AIG AIG Focused Focused AIG
2020 High Commodity ESG Alpha Multi-Cap Global
Watermark Strategy Dividend Large-Cap Growth Trends
Fund Fund#+ Fund Fund+ Fund+ Fund#+
--------- --------- --------- ---------- ----------- ---------
INVESTMENT INCOME:
Dividends (unaffiliated)............................ $ -- $ -- $ 189,039 $4,023,155 $ 1,981,331 $ --
Interest (unaffiliated)............................. 476,560 108,316 56 2,706 5,845 93,885
--------- --------- --------- ---------- ----------- ---------
Total investment income*......................... 476,560 108,316 189,095 4,025,861 1,987,176 93,885
--------- --------- --------- ---------- ----------- ---------
EXPENSES:
Investment advisory and management fees........... 86,870 239,471 44,823 2,760,134 2,386,523 245,697
Distribution and service maintenance fees:
Class A.......................................... 31,229 61,016 20,042 757,257 646,469 55,446
Class C.......................................... 8,078 16,496 1,250 550,016 401,933 21,243
Service fees:
Class I.......................................... 9,086 -- -- -- -- --
Class W.......................................... -- 1,381 188 6,978 20,631 890
Transfer agent fees and expenses:
Class A.......................................... 21,698 40,607 14,175 522,159 460,559 37,320
Class C.......................................... 2,320 4,457 1,515 127,872 97,548 5,451
Class I.......................................... 8,407 -- -- -- -- --
Class W.......................................... -- 2,480 1,482 10,424 30,258 1,735
Registration fees:
Class A.......................................... 6,349 11,465 1,338 8,804 7,637 5,897
Class C.......................................... 3,996 5,886 1,065 3,513 4,750 3,864
Class I.......................................... 5,201 -- -- -- -- --
Class W.......................................... -- 5,755 1,133 4,205 4,006 3,755
Custodian and accounting fees..................... 12,358 65,708 10,578 29,182 25,774 37,470
Reports to shareholders........................... 8,102 8,519 10,512 77,518 65,997 7,889
Audit and tax fees................................ 22,421 30,883 18,631 19,836 19,052 27,243
Legal fees........................................ 21,133 25,692 4,795 14,119 12,317 18,099
Fees paid to Prudential Global Funding, Inc (see
Note 1).......................................... 46,776 -- -- -- -- --
Trustees' fees and expenses....................... 545 784 2,335 10,351 9,644 731
Deferred offering costs........................... -- -- 50,628 -- -- --
Interest expense.................................. 1 343 -- 28 4,886 3,348
Other expenses.................................... 14,969 14,942 9,123 12,100 11,865 14,525
--------- --------- --------- ---------- ----------- ---------
Total expenses before fee waivers, expense
reimbursements, expense recoupments and fees
paid indirectly................................. 309,539 535,885 193,613 4,914,496 4,209,849 490,603
Net fees waived and expenses (reimbursed)
recouped by investment advisor (see Note 4)..... (167,511) (182,600) (118,347) (200) -- (131,289)
Fees paid indirectly (see Note 9)................ -- -- -- (5,093) (10,344) --
--------- --------- --------- ---------- ----------- ---------
Net expenses..................................... 142,028 353,285 75,266 4,909,203 4,199,505 359,314
--------- --------- --------- ---------- ----------- ---------
Net investment income (loss)........................ 334,532 (244,969) 113,829 (883,342) (2,212,329) (265,429)
--------- --------- --------- ---------- ----------- ---------
AIG
Income AIG
Explorer Small-Cap
Fund+ Fund+
-------- ---------
INVESTMENT INCOME:
Dividends (unaffiliated)............................ $741,502 $ 287,637
Interest (unaffiliated)............................. 150,421 218
-------- ---------
Total investment income*......................... 891,923 287,855
-------- ---------
EXPENSES:
Investment advisory and management fees........... 136,859 250,132
Distribution and service maintenance fees:
Class A.......................................... 40,307 82,623
Class C.......................................... 17,897 5,529
Service fees:
Class I.......................................... -- --
Class W.......................................... 570 1,281
Transfer agent fees and expenses:
Class A.......................................... 26,413 53,981
Class C.......................................... 4,213 1,822
Class I.......................................... -- --
Class W.......................................... 1,237 2,305
Registration fees:
Class A.......................................... 8,395 7,692
Class C.......................................... 4,256 3,446
Class I.......................................... -- --
Class W.......................................... 3,488 3,095
Custodian and accounting fees..................... 12,776 41,577
Reports to shareholders........................... 6,086 5,105
Audit and tax fees................................ 25,715 20,991
Legal fees........................................ 6,829 7,511
Fees paid to Prudential Global Funding, Inc (see
Note 1).......................................... -- --
Trustees' fees and expenses....................... 484 934
Deferred offering costs........................... -- --
Interest expense.................................. -- 15
Other expenses.................................... 15,459 27,068
-------- ---------
Total expenses before fee waivers, expense
reimbursements, expense recoupments and fees
paid indirectly................................. 310,984 515,107
Net fees waived and expenses (reimbursed)
recouped by investment advisor (see Note 4)..... (64,714) (82,993)
Fees paid indirectly (see Note 9)................ -- --
-------- ---------
Net expenses..................................... 246,270 432,114
-------- ---------
Net investment income (loss)........................ 645,653 (144,259)
-------- ---------
--------
# Consolidated (see Note 2)
+ See Note 1
See Notes to Financial Statements
9
SunAmerica Specialty Series
STATEMENT OF OPERATIONS -- For the period ended April 30, 2017 --
(unaudited) (continued)
AIG AIG
AIG AIG Focused Focused AIG
2020 High Commodity ESG Alpha Multi-Cap Global
Watermark Strategy Dividend Large-Cap Growth Trends
Fund Fund#+ Fund Fund+ Fund+ Fund#+
--------- --------- -------- ----------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments
(unaffiliated)........................................ $ 241,825 $ (19,571) $ 98,802 $ 6,550,676 $17,519,474 $ --
Net realized gain (loss) on futures contracts, written
options contracts and swap contracts.................. 11,137 (271,255) -- -- -- 1,214,698
Net realized foreign exchange gain (loss) on other
assets and liabilities................................ -- -- -- (2,192) -- 143,227
--------- --------- -------- ----------- ----------- ----------
Net realized gain (loss) on investments and foreign
currencies............................................ 252,962 (290,826) 98,802 6,548,484 17,519,474 1,357,925
--------- --------- -------- ----------- ----------- ----------
Change in unrealized appreciation (depreciation) on
investments (unaffiliated)............................ (898,668) 7,080 657,015 75,202,053 50,152,226 --
Change in unrealized appreciation (depreciation) on
futures contracts, written options contracts and
swap contracts........................................ 3,010 (400,411) -- -- -- 362,877
Change in unrealized foreign exchange gain (loss)
on other assets and liabilities....................... -- -- -- -- (31) 78,915
--------- --------- -------- ----------- ----------- ----------
Net unrealized gain (loss) on investments and
foreign currencies.................................... (895,658) (393,331) 657,015 75,202,053 50,152,195 441,792
--------- --------- -------- ----------- ----------- ----------
Net realized and unrealized gain (loss) on
investments and foreign currencies.................... (642,696) (684,157) 755,817 81,750,537 67,671,669 1,799,717
--------- --------- -------- ----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............................. $(308,164) $(929,126) $869,646 $80,867,195 $65,459,340 $1,534,288
========= ========= ======== =========== =========== ==========
* Net of foreign withholding taxes on interest and
dividends of.......................................... $ -- $ -- $ -- $ 96,222 $ 4,796 $ --
========= ========= ======== =========== =========== ==========
AIG
Income AIG
Explorer Small-Cap
Fund+ Fund+
---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments
(unaffiliated)........................................ $ 111,244 $2,304,222
Net realized gain (loss) on futures contracts, written
options contracts and swap contracts.................. -- --
Net realized foreign exchange gain (loss) on other
assets and liabilities................................ (1,931) (164)
---------- ----------
Net realized gain (loss) on investments and foreign
currencies............................................ 109,313 2,304,058
---------- ----------
Change in unrealized appreciation (depreciation) on
investments (unaffiliated)............................ 1,428,437 6,619,729
Change in unrealized appreciation (depreciation) on
futures contracts, written options contracts and
swap contracts........................................ -- --
Change in unrealized foreign exchange gain (loss)
on other assets and liabilities....................... (273) --
---------- ----------
Net unrealized gain (loss) on investments and
foreign currencies.................................... 1,428,164 6,619,729
---------- ----------
Net realized and unrealized gain (loss) on
investments and foreign currencies.................... 1,537,477 8,923,787
---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............................. $2,183,130 $8,779,528
========== ==========
* Net of foreign withholding taxes on interest and
dividends of.......................................... $ 8,948 $ 1,750
========== ==========
--------
# Consolidated (see Note 2)
+ See Note 1
See Notes to Financial Statements
10
SunAmerica Specialty Series
STATEMENT OF CHANGES IN NET ASSETS
AIG Commodity AIG ESG
2020 High Watermark Fund Strategy Fund#++ Dividend Fund
------------------------ -------------------------- -------------
For the
period
For the For the December 16,
six months six months 2016@
ended For the ended For the through
April 30, year ended April 30, year ended April 30,
2017 October 31, 2017 October 31, 2017
(unaudited) 2016 (unaudited) 2016 (unaudited)
----------- ----------- ------------ ------------ -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)................... $ 334,532 $ 702,387 $ (244,969) $ (600,635) $ 113,829
Net realized gain (loss) on investments and
foreign currencies............................ 252,962 942,641 (290,826) (641,386) 98,802
Net unrealized gain (loss) on investments and
foreign currencies............................ (895,658) (1,042,408) (393,331) (633,390) 657,015
----------- ----------- ------------ ------------ -----------
Net increase (decrease) in net assets resulting
from operations................................. (308,164) 602,620 (929,126) (1,875,411) 869,646
----------- ----------- ------------ ------------ -----------
Distributions to shareholders from:
Net investment income (Class A)................ (454,059) (502,862) -- -- --
Net investment income (Class C)................ (21,330) (56,987) -- -- --
Net investment income (Class I)................ (217,503) (234,154) -- -- --
Net investment income (Class W)................ -- -- -- -- --
Net realized gain on securities (Class A)...... -- -- -- -- --
Net realized gain on securities (Class C)...... -- -- -- -- --
Net realized gain on securities (Class I)...... -- -- -- -- --
Net realized gain on securities (Class W)...... -- -- -- -- --
----------- ----------- ------------ ------------ -----------
Total distributions to shareholders.............. (692,892) (794,003) -- -- --
----------- ----------- ------------ ------------ -----------
Net increase (decrease) in net assets resulting
from capital share transactions (see
Note 7)......................................... (1,931,891) (5,007,699) (2,113,539) (1,182,824) 20,341,280
----------- ----------- ------------ ------------ -----------
Total increase (decrease) in net assets.......... (2,932,947) (5,199,082) (3,042,665) (3,058,235) 21,210,926
NET ASSETS:
Beginning of period.............................. 28,327,268 33,526,350 40,664,209 43,722,444 --
----------- ----------- ------------ ------------ -----------
End of period+................................... $25,394,321 $28,327,268 $ 37,621,544 $ 40,664,209 $21,210,926
=========== =========== ============ ============ ===========
+ Includes accumulated undistributed net
investment income (loss)........................ $ 222,344 $ 580,704 $(12,174,987) $(11,930,018) $ 113,829
=========== =========== ============ ============ ===========
AIG Focused Alpha
Large-Cap Fund++
---------------------------
For the
six months
ended For the
April 30, year ended
2017 October 31,
(unaudited) 2016
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)................... $ (883,342) $ (3,383,231)
Net realized gain (loss) on investments and
foreign currencies............................ 6,548,484 14,625,472
Net unrealized gain (loss) on investments and
foreign currencies............................ 75,202,053 (20,033,569)
------------ -------------
Net increase (decrease) in net assets resulting
from operations................................. 80,867,195 (8,791,328)
------------ -------------
Distributions to shareholders from:
Net investment income (Class A)................ -- --
Net investment income (Class C)................ -- --
Net investment income (Class I)................ -- --
Net investment income (Class W)................ -- --
Net realized gain on securities (Class A)...... -- (47,456,936)
Net realized gain on securities (Class C)...... -- (12,349,233)
Net realized gain on securities (Class I)...... -- --
Net realized gain on securities (Class W)...... -- (1,214,309)
------------ -------------
Total distributions to shareholders.............. -- (61,020,478)
------------ -------------
Net increase (decrease) in net assets resulting
from capital share transactions (see
Note 7)......................................... (30,011,865) (38,126,080)
------------ -------------
Total increase (decrease) in net assets.......... 50,855,330 (107,937,886)
NET ASSETS:
Beginning of period.............................. 527,776,949 635,714,835
------------ -------------
End of period+................................... $578,632,279 $ 527,776,949
============ =============
+ Includes accumulated undistributed net
investment income (loss)........................ $ (3,712,335) $ (2,828,993)
============ =============
# Consolidated (see Note 2)
@ Commencement of operations.
++ See Note 1
See Notes to Financial Statements
11
SunAmerica Specialty Series
STATEMENT OF CHANGES IN NET ASSETS -- (continued)
AIG Focused Multi-Cap AIG Global Trends AIG Income Explorer
Growth Fund++ Fund#++ Fund++
--------------------------- ------------------------ ------------------------
For the For the For the
six months six months six months
ended For the ended For the ended For the
April 30, year ended April 30, year ended April 30, year ended
2017 October 31, 2017 October 31, 2017 October 31,
(unaudited) 2016 (unaudited) 2016 (unaudited) 2016
------------ ------------- ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).................. $ (2,212,329) $ (6,100,223) $ (265,429) $ (680,984) $ 645,653 $ 1,134,520
Net realized gain (loss) on investments and
foreign currencies........................... 17,519,474 7,833,917 1,357,925 (540,453) 109,313 (453,831)
Net unrealized gain (loss) on investments
and foreign currencies....................... 50,152,195 (486,597) 441,792 (225,867) 1,428,164 1,606,841
------------ ------------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets resulting
from operations................................ 65,459,340 1,247,097 1,534,288 (1,447,304) 2,183,130 2,287,530
------------ ------------- ----------- ----------- ----------- -----------
Distributions to shareholders from:
Net investment income (Class A)............... -- -- -- -- (470,465) (1,051,823)
Net investment income (Class C)............... -- -- -- -- (61,420) (115,078)
Net investment income (Class I)............... -- -- -- -- -- --
Net investment income (Class W)............... -- -- -- -- (16,693) (18,459)
Net realized gain on securities (Class A)..... (5,975,560) (52,919,947) -- (1,255,530) -- --
Net realized gain on securities (Class C)..... (1,357,932) (12,328,178) -- (290,908) -- --
Net realized gain on securities (Class I)..... -- -- -- -- -- --
Net realized gain on securities (Class W)..... (426,999) (4,912,153) -- (98,364) -- --
------------ ------------- ----------- ----------- ----------- -----------
Total distributions to shareholders............. (7,760,491) (70,160,278) -- (1,644,802) (548,578) (1,185,360)
------------ ------------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from capital share transactions
(see Note 7)................................... (30,918,872) (47,100,356) (3,525,623) (780,879) 4,115,022 1,322,644
------------ ------------- ----------- ----------- ----------- -----------
Total increase (decrease) in net assets......... 26,779,977 (116,013,537) (1,991,335) (3,872,985) 5,749,574 2,424,814
NET ASSETS:
Beginning of period............................. 481,691,020 597,704,557 38,332,594 42,205,579 26,006,648 23,581,834
------------ ------------- ----------- ----------- ----------- -----------
End of period+.................................. $508,470,997 $ 481,691,020 $36,341,259 $38,332,594 $31,756,222 $26,006,648
============ ============= =========== =========== =========== ===========
+ Includes accumulated undistributed net
investment income (loss)....................... $ (7,492,423) $ (5,280,094) $(5,167,411) $(4,901,982) $ 84,995 $ (12,080)
============ ============= =========== =========== =========== ===========
AIG Small-Cap Fund++
------------------------
For the
six months
ended For the
April 30, year ended
2017 October 31,
(unaudited) 2016
----------- -----------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).................. $ (144,259) $ (316,182)
Net realized gain (loss) on investments and
foreign currencies........................... 2,304,058 1,329,510
Net unrealized gain (loss) on investments
and foreign currencies....................... 6,619,729 1,123,238
----------- -----------
Net increase (decrease) in net assets resulting
from operations................................ 8,779,528 2,136,566
----------- -----------
Distributions to shareholders from:
Net investment income (Class A)............... -- --
Net investment income (Class C)............... -- --
Net investment income (Class I)............... -- --
Net investment income (Class W)............... -- --
Net realized gain on securities (Class A)..... (1,389,064) (3,889,649)
Net realized gain on securities (Class C)..... (29,030) (47,092)
Net realized gain on securities (Class I)..... -- --
Net realized gain on securities (Class W)..... (13,932) (24,229)
----------- -----------
Total distributions to shareholders............. (1,432,026) (3,960,970)
----------- -----------
Net increase (decrease) in net assets
resulting from capital share transactions
(see Note 7)................................... 4,866,654 (6,725,322)
----------- -----------
Total increase (decrease) in net assets......... 12,214,156 (8,549,726)
NET ASSETS:
Beginning of period............................. 43,890,430 52,440,156
----------- -----------
End of period+.................................. $56,104,586 $43,890,430
=========== ===========
+ Includes accumulated undistributed net
investment income (loss)....................... $ (341,820) $ (197,561)
=========== ===========
# Consolidated (see Note 2)
@ Commencement of operations.
++ See Note 1
See Notes to Financial Statements
12
SunAmerica Specialty Series
FINANCIAL HIGHLIGHTS
Net gain
(loss) on
Net investments Net Net
Asset (both Dividends Distributions Asset Assets Ratio of
Value Net realized Total from from net from Total Value end of expenses
beginning investment and investment investment net realized Distri- end of Total period to average
Period Ended of period income(1) unrealized) operations income gains butions period Return(2) (000's) net assets(3)
------------ --------- ---------- ----------- ---------- ---------- ------------- ------- ------ --------- ------- -------------
2020 HIGH WATERMARK FUND
------------------------
Class A
-------
10/31/12 $9.46 $0.19 $ 0.46 $ 0.65 $(0.19) $-- $(0.19) $9.92 6.96% $33,009 1.42%
10/31/13 9.92 0.20 (0.56) (0.36) (0.21) -- (0.21) 9.35 (3.70) 27,131 1.34
10/31/14 9.35 0.20 (0.14) 0.06 (0.21) -- (0.21) 9.20 0.78 24,155 1.36
10/31/15 9.20 0.20 (0.03) 0.17 (0.22) -- (0.22) 9.15 1.86 21,636 1.32
10/31/16 9.15 0.20 (0.03) 0.17 (0.22) -- (0.22) 9.10 1.93 18,792 1.21
04/30/17(5) 9.10 0.11 (0.21) (0.10) (0.22) -- (0.22) 8.78 (1.08) 16,704 1.15(4)
Class C
-------
10/31/12 $9.38 $0.12 $ 0.46 $ 0.58 $(0.13) $-- $(0.13) $9.83 6.22% $14,123 2.07%
10/31/13 9.83 0.13 (0.55) (0.42) (0.13) -- (0.13) 9.28 (4.29) 8,230 1.99
10/31/14 9.28 0.14 (0.13) 0.01 (0.13) -- (0.13) 9.16 0.13 5,001 2.01
10/31/15 9.16 0.14 (0.03) 0.11 (0.14) -- (0.14) 9.13 1.22 3,636 1.97
10/31/16 9.13 0.15 (0.04) 0.11 (0.15) -- (0.15) 9.09 1.21 1,922 1.87
04/30/17(5) 9.09 0.08 (0.20) (0.12) (0.12) -- (0.12) 8.85 (1.37) 1,475 1.80(4)
Class I
-------
10/31/12 $9.50 $0.23 $ 0.47 $ 0.70 $(0.23) $-- $(0.23) $9.97 7.47% $16,415 0.95%
10/31/13 9.97 0.24 (0.55) (0.31) (0.26) -- (0.26) 9.40 (3.22) 12,377 0.87
10/31/14 9.40 0.24 (0.13) 0.11 (0.26) -- (0.26) 9.25 1.31 10,090 0.89
10/31/15 9.25 0.24 (0.03) 0.21 (0.26) -- (0.26) 9.20 2.36 8,254 0.85
10/31/16 9.20 0.25 (0.05) 0.20 (0.26) -- (0.26) 9.14 2.33 7,614 0.74
04/30/17(5) 9.14 0.13 (0.21) (0.08) (0.27) -- (0.27) 8.79 (0.91) 7,216 0.68(4)
Ratio
of net
investment
income to
average Portfolio
net assets(3) Turnover
------------- ---------
1.91% 0%
2.04 0
2.17 0
2.18 0
2.22 0
2.41(4) 0
1.26% 0%
1.38 0
1.52 0
1.53 0
1.57 0
1.76(4) 0
2.38% 0%
2.51 0
2.64 0
2.65 0
2.70 0
2.89(4) 0
--------
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load, but does
include expense reimbursements and expense reductions.
(3)Net of following expense reimbursements, waivers and (recoupments), if
applicable (based on average net assets):
10/31/12 10/31/13 10/31/14 10/31/15 10/31/16 04/30/17(4)(5)
-------- -------- -------- -------- -------- --------------
2020 High Watermark Fund Class A........ 0.41% 0.56% 0.61% 0.78% 0.96% 1.11%
2020 High Watermark Fund Class C........ 0.45 0.61 0.75 1.01 1.42 1.57
2020 High Watermark Fund Class I........ 0.80 0.94 1.03 1.22 1.41 1.54
(4)Annualized
(5)Unaudited
See Notes to Financial Statements
13
SunAmerica Specialty Series
FINANCIAL HIGHLIGHTS -- (continued)
Net gain
(loss) on
Net investments Net Net
Asset (both Dividends Distributions Asset Assets
Value Net realized Total from from net from Total Value end of
beginning investment and investment investment net realized Distri- end of Total period
..Period Ended of period income(1) unrealized) operations income gains butions period Return(2) (000's)
------------ --------- ---------- ----------- ---------- ---------- ------------- ------- ------ --------- --------
AIG COMMODITY STRATEGY FUND#+
-----------------------------
Class A
-------
10/31/12 $10.75 $(0.09) $(1.47) $(1.56) $(0.10) $(0.37) $(0.47) $8.72 (15.28)% $181,487
10/31/13 8.72 (0.08) (0.75) (0.83) -- -- -- 7.89 (9.52) 65,418
10/31/14 7.89 (0.07) (0.08) (0.15) -- -- -- 7.74 (1.90)(6) 45,829
10/31/15 7.74 (0.09) (0.25) (0.34) -- -- -- 7.40 (4.39) 35,472
10/31/16 7.40 (0.10) (0.22) (0.32) -- -- -- 7.08 (4.32) 35,228
04/30/17(8) 7.08 (0.04) (0.13) (0.17) -- -- -- 6.91 (2.40) 32,898
Class C
-------
10/31/12 $10.65 $(0.15) $(1.47) $(1.62) $(0.03) $(0.37) $(0.40) $8.63 (15.90)% $ 44,446
10/31/13 8.63 (0.13) (0.73) (0.86) -- -- -- 7.77 (9.97)(5) 14,198
10/31/14 7.77 (0.13) (0.06) (0.19) -- -- -- 7.58 (2.45)(6) 9,153
10/31/15 7.58 (0.13) (0.25) (0.38) -- -- -- 7.20 (5.01) 5,272
10/31/16 7.20 (0.14) (0.22) (0.36) -- -- -- 6.84 (5.00) 3,478
04/30/17(8) 6.84 (0.06) (0.12) (0.18) -- -- -- 6.66 (2.63) 2,968
Class W
-------
10/31/12 $10.77 $(0.07) $(1.47) $(1.54) $(0.12) $(0.37) $(0.49) $8.74 (15.07)% $ 48,004
10/31/13 8.74 (0.06) (0.74) (0.80) -- -- -- 7.94 (9.15)(5) 9,066
10/31/14 7.94 (0.06) (0.08) (0.14) -- -- -- 7.80 (1.76)(6) 9,977
10/31/15 7.80 (0.07) (0.26) (0.33) -- -- -- 7.47 (4.23) 2,979
10/31/16 7.47 (0.09) (0.21) (0.30) -- -- -- 7.17 (4.02) 1,958
04/30/17(8) 7.17 (0.04) (0.13) (0.17) -- -- -- 7.00 (2.37) 1,755
Ratio
of net
Ratio of investment
expenses income to
to average average Portfolio
net assets(3) net assets(3) Turnover
------------- ------------- ---------
1.68% (0.94)% 95%
1.72 (0.94) 57
1.72 (0.91) 16
1.72 (1.12) 54
1.72 (1.40) 50
1.72(7) (1.18)(7) 0
2.37% (1.62)% 95%
2.30(4) (1.52) 57
2.37 (1.56) 16
2.37 (1.77) 54
2.37 (2.06) 50
2.37(7) (1.83)(7) 0
1.51% (0.75)% 95%
1.43(4) (0.63) 57
1.52 (0.73) 16
1.52 (0.91) 54
1.52 (1.21) 50
1.52(7) (0.98)(7) 0
--------
# Consolidated (see Note 2)
+ See Note 1
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load, but does
include expense reimbursements and expense reductions.
(3)Net of following expense reimbursements, waivers and (recoupments), if
applicable (based on average net assets):
10/31/12 10/31/13 10/31/14 10/31/15 10/31/16 04/30/17(7)(8)
-------- -------- -------- -------- -------- --------------
Commodity Strategy Fund Class A......... 0.22% 0.42% 0.49% 0.82% 0.85% 0.86%
Commodity Strategy Fund Class C......... 0.21 0.53 0.59 0.92 1.21 1.18
Commodity Strategy Fund Class W......... 0.21 0.56 0.65 0.84 1.48 1.46
(4)Includes a reimbursement of expenses from a prior year of 0.07% and 0.09%
for Class C and Class W, respectively.
(5)The Fund's performance figure was increased by 0.11% and 0.23% for Class C
and Class W, respectively, for a reimbursement of expenses from a prior year.
(6)The Fund's performance figure was increased by 0.69% for Class A, Class C
and Class W, from a reimbursement by an affiliate.
(7)Annualized
(8)Unaudited
See Notes to Financial Statements
14
SunAmerica Specialty Series
FINANCIAL HIGHLIGHTS -- (continued)
Net gain
(loss) on
Net investments Net Net
Asset (both Dividends Distributions Asset Assets Ratio of
Value Net realized Total from from net from Total Value end of expenses
beginning investment and investment investment net realized Distri- end of Total period to average
Period Ended of period income(1) unrealized) operations income gains butions period Return(2) (000's) net assets(4)
------------ --------- ---------- ----------- ---------- ---------- ------------- ------- ------ --------- ------- -------------
AIG ESG DIVIDEND FUND
---------------------
Class A
-------
12/16/16@-
4/30/17(5) $15.00 $0.10 $0.32 $0.42 $-- $-- $-- $15.42 2.80% $20,527 1.25%(3)
Class C
-------
12/16/16@-
4/30/17(5) $15.00 $0.06 $0.32 $0.38 $-- $-- $-- $15.38 2.53% $ 342 1.90%(3)
Class W
-------
12/16/16@-
4/30/17(5) $15.00 $0.11 $0.32 $0.43 $-- $-- $-- $15.43 2.87% $ 343 1.05%(3)
Ratio
of net
investment
income to
average Portfolio
net assets(4) Turnover
------------- ---------
1.92%(3) 7%
1.09%(3) 7%
1.94%(3) 7%
--------
@ Commencement of operations.
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load, but does
include expense reimbursements and expense reductions.
(3)Annualized.
(4)Net of following expense reimbursements, waivers and (recoupments), if
applicable (based on average net assets):
04/30/17(3)(5)
--------------
ESG Dividend Fund Class A............... 1.63%
ESG Dividend Fund Class C............... 9.98
ESG Dividend Fund Class W............... 10.00
(5)Unaudited
See Notes to Financial Statements
15
SunAmerica Specialty Series
FINANCIAL HIGHLIGHTS -- (continued)
Net gain
(loss) on
Net investments Net Net
Asset Net (both Distributions Distributions Asset Asset Market
Value investment realized Total from from net from net Total Value Value Value
beginning income and investment investment realized Distri- end of Total end of
Period Ended of period (loss)@ unrealized) operations income gains butions period Return period
------------- --------- ---------- ----------- ---------- ------------- ------------- ------- ------ ------ ------
AIG FOCUSED ALPHA LARGE-CAP FUND+#
---------------------------------
Class A
-------
12/31/11 $17.58 $(0.01) $(0.27) $(0.28) $(0.03) $(0.70) $(0.73) $16.57 (1.50)%(1) $16.22
01/01/12-
10/31/12 16.57 (0.07) 2.75(4)(10) 2.68 -- -- -- 19.25 16.17(8)(9) --
10/31/13 19.25 (0.08) 6.06(4) 5.98 -- (0.86) (0.86) 24.37 32.50(8) --
10/31/14 24.37 (0.12) 4.47 4.35 -- (1.27) (1.27) 27.45 18.66(8) --
10/31/15 27.45 (0.11) 0.86 0.75 -- (1.64) (1.64) 26.56 2.98(8) --
10/31/16 26.56 (0.11) (0.14) (0.25) -- (2.61) (2.61) 23.70 (0.91)(8) --
04/30/17(11) 23.70 (0.02) 3.76 3.74 -- -- -- 27.44 15.78(8) --
Class C
-------
01/24/12*-
10/31/12 $17.59 $(0.19) $ 1.77(4)(10) $ 1.58 $ -- $ -- $ -- $19.17 8.98%(8)(9) $ --
10/31/13 19.17 (0.19) 5.99(4) 5.80 -- (0.86) (0.86) 24.11 31.66(8) --
10/31/14 24.11 (0.28) 4.40 4.12 -- (1.27) (1.27) 26.96 17.87(8) --
10/31/15 26.96 (0.28) 0.85 0.57 -- (1.64) (1.64) 25.89 2.33(8) --
10/31/16 25.89 (0.26) (0.14) (0.40) -- (2.61) (2.61) 22.88 (1.58)(8) --
04/30/17(11) 22.88 (0.10) 3.63 3.53 -- -- -- 26.41 15.43(8) --
Class W
-------
01/24/12*-
10/31/12 $17.59 $(0.02) $ 1.72(4)(10) $ 1.70 $ -- $ -- $ -- $19.29 9.66%(8)(9) $ --
10/31/13 19.29 (0.07) 6.12(4) 6.05 -- (0.86) (0.86) 24.48 32.80(8) --
10/31/14 24.48 (0.08) 4.48 4.40 -- (1.27) (1.27) 27.61 18.78(8) --
10/31/15 27.61 (0.08) 0.88 0.80 -- (1.64) (1.64) 26.77 3.15(8) --
10/31/16 26.77 (0.08) (0.15) (0.23) -- (2.61) (2.61) 23.93 (0.82)(8) --
04/30/17(11) 23.93 (0.01) 3.81 3.80 -- -- -- 27.73 15.88(8) --
Ratio
of net
investment
Market Net Assets Ratio of income
Value end of expenses (loss) to
Total period to average average Portfolio
Period Ended Return (000's) net assets(3) net assets(3) Turnover
------------- ------ ---------- ------------- ------------- ---------
AIG FOCUSED ALPHA LARGE-CAP FUND+#
---------------------------------
Class A
-------
12/31/11 7.55%(2) $120,019 1.56% (0.08)% 115%
01/01/12-
10/31/12 -- 225,787 1.72(6)(7) (0.45)(6)(7) 154(5)
10/31/13 -- 521,938 1.72(6) (0.38)(6) 124(5)
10/31/14 -- 525,359 1.66(6) (0.46)(6) 57
10/31/15 -- 495,598 1.66 (0.43) 82
10/31/16 -- 413,090 1.67 (0.47) 38
04/30/17(11) -- 452,732 1.65(7) (0.19)(7) 29
Class C
-------
01/24/12*-
10/31/12 -- % $ 32,358 2.37%(6)(7) (1.32)%(6)(7) 154%(5)
10/31/13 -- 118,963 2.37(6) (1.04)(6) 124(5)
10/31/14 -- 126,687 2.32(6) (1.12)(6) 57
10/31/15 -- 123,641 2.31 (1.08) 82
10/31/16 -- 106,319 2.32 (1.12) 38
04/30/17(11) -- 114,237 2.30(7) (0.84)(7) 29
Class W
-------
01/24/12*-
10/31/12 -- % $ 353 1.52%(6)(7) (0.12)%(6)(7) 154%(5)
10/31/13 -- 2,490 1.52(6) (0.32)(6) 124(5)
10/31/14 -- 8,109 1.52(6) (0.31)(6) 57
10/31/15 -- 16,475 1.52(6) (0.29)(6) 82
10/31/16 -- 8,368 1.52(6) (0.31)(6) 38
04/30/17(11) -- 11,664 1.52(6)(7) (0.09)(6)(7) 29
--------
* Commencement of operations.
+ See Note 1 -- Due to the reorganization which effectively converted the fund
from closed-end to open-end, the period ended 12/31/11 has been presented
under the requirements of closed-end funds.
@ Calculated based upon average shares outstanding.
# See Note 1
(1)Based on net asset value per share. Dividends and distributions, if any, are
assumed for purposes of this calculation to be reinvested at NAV on the
ex-dividend date.
(2)Based on market value per share. Dividends and distributions, if any, are
assumed for purposes of this calculation to be reinvested at prices obtained
under the Fund's prior dividend reinvestment plan.
(3)Excludes expense reductions. If expense reductions had been applied, the
ratio of expenses to average net assets would have been lower and the ratio
of net investment income (loss) to average net assets would have been higher
by the following:
12/31/11 10/31/12(7) 10/31/13 10/31/14 10/31/15 10/31/16 04/30/17(7)(11)
-------- ----------- -------- -------- -------- -------- ---------------
Focused Alpha Large-Cap Fund Class A 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Focused Alpha Large-Cap Fund
Class C............................ N/A 0.01% 0.00 0.00 0.00 0.00 0.00
Focused Alpha Large-Cap Fund
Class W............................ N/A 0.00% 0.00 0.00 0.00 0.00 0.00
(4)Includes the effect of a merger.
(5)Excludes purchases/sales due to fund merger.
(6)Net of following expense reimbursements, waivers and (recoupments), if
applicable (based on average net assets):
10/31/12(7) 10/31/13 10/31/14 10/31/15 10/31/16 04/30/17(7)(11)
----------- -------- -------- -------- -------- ---------------
Focused Alpha Large-Cap Fund Class A.... 0.05% 0.00% (0.01)% -- % -- % -- %
Focused Alpha Large-Cap Fund Class C.... 0.26 0.03 (0.02) -- -- --
Focused Alpha Large-Cap Fund Class W.... 12.82 1.13 0.13 0.02 0.08 0.00
(7)Annualized.
(8)Total return is not annualized and does not reflect sales load, but does
include expense reimbursements and expense reductions.
(9)The Fund's performance figures were increased by the following amounts, from
redemption fees received:
10/31/12
--------
Focused Alpha Large-Cap Fund Class A.... 0.66%
Focused Alpha Large-Cap Fund Class C.... 0.63
Focused Alpha Large-Cap Fund Class W.... 0.63
(10)Includes redemption fees of $0.11 per share.
(11)Unaudited
See Notes to Financial Statements
16
SunAmerica Specialty Series
FINANCIAL HIGHLIGHTS -- (continued)
Net gain
(loss) on
Net investments Net Net
Asset Net (both Distributions Distributions Asset Asset Market
Value investment realized Total from from net from net Total Value Value Value
beginning income and investment investment realized Distri- end of Total end of
Period Ended of period (loss)@ unrealized) operations income gains butions period Return period
------------ --------- ---------- ----------- ---------- ------------- ------------- ------- ------ ------ ------
AIG FOCUSED MULTI-CAP GROWTH FUND+#
----------------------------------
Class A
-------
12/31/11 $19.55 $(0.10) $(0.30) $(0.40) $-- $(0.48) $(0.48) $18.67 (2.02)%(1) $18.28
01/01/12-
10/31/12 18.67 (0.01) 2.86(4)(10) 2.85 -- -- -- 21.52 15.27(8)(9) --
10/31/13 21.52 (0.19) 5.95(4) 5.76 -- (2.50) (2.50) 24.78 30.45(8) --
10/31/14 24.78 (0.28) 3.77 3.49 -- (1.05) (1.05) 27.22 14.70(8) --
10/31/15 27.22 (0.26) 0.73 0.47 -- (0.84) (0.84) 26.85 1.87(8) --
10/31/16 26.85 (0.25) 0.43 0.18 -- (3.27) (3.27) 23.76 0.75(8) --
04/30/17(11) 23.76 (0.10) 3.49 3.39 -- (0.39) (0.39) 26.76 14.50(8) --
Class C
-------
01/24/12*-
10/31/12 $19.69 $ 0.03 $ 1.70(4)(10) $ 1.73 $-- $ -- $ -- $21.42 8.79%(8)(9) $ --
10/31/13 21.42 (0.33) 5.91(4) 5.58 -- (2.50) (2.50) 24.50 29.66(8) --
10/31/14 24.50 (0.45) 3.71 3.26 -- (1.05) (1.05) 26.71 13.90(8) --
10/31/15 26.71 (0.43) 0.71 0.28 -- (0.84) (0.84) 26.15 1.17(8) --
10/31/16 26.15 (0.39) 0.41 0.02 -- (3.27) (3.27) 22.90 0.09(8) --
04/30/17(11) 22.90 (0.18) 3.37 3.19 -- (0.39) (0.39) 25.70 14.16(8) --
Class W
-------
01/24/12*-
10/31/12 $19.69 $ 0.10 $ 1.76(4)(10) $ 1.86 $-- $ -- $ -- $21.55 9.45%(8)(9) $ --
10/31/13 21.55 (0.18) 6.01(4) 5.83 -- (2.50) (2.50) 24.88 30.76(8) --
10/31/14 24.88 (0.24) 3.78 3.54 -- (1.05) (1.05) 27.37 14.85(8) --
10/31/15 27.37 (0.21) 0.73 0.52 -- (0.84) (0.84) 27.05 2.05(8) --
10/31/16 27.05 (0.21) 0.43 0.22 -- (3.27) (3.27) 24.00 0.91(8) --
04/30/17(11) 24.00 (0.08) 3.54 3.46 -- (0.39) (0.39) 27.07 14.65(8) --
Ratio
of net
Net investment
Market Assets Ratio of income
Value end of expenses (loss) to
Total period to average average Portfolio
Return (000's) net assets(3) net assets(3) Turnover
------ -------- ------------- ------------- ---------
6.88%(2) $266,016 1.32% (0.48)% 74%
-- 249,508 1.68(6)(7) (0.06)(6)(7) 87(5)
-- 418,071 1.71(6) (0.87)(6) 107(5)
-- 462,483 1.65 (1.10) 65
-- 441,345 1.67 (0.97) 103
-- 369,683 1.68 (1.07) 29
-- 392,390 1.67(7) (0.83)(7) 29
-- % $ 33,084 2.37%(6)(7) 0.20%(6)(7) 87%(5)
-- 72,132 2.37(6) (1.58)(6) 107(5)
-- 103,900 2.37(6) (1.82)(6) 65
-- 99,519 2.33(6) (1.64)(6) 103
-- 81,943 2.33 (1.72) 29
-- 85,310 2.32(7) (1.48)(7) 29
-- % $ 5,084 1.52%(6)(7) 0.62%(6)(7) 87%(5)
-- 30,710 1.52(6) (0.85)(6) 107(5)
-- 54,920 1.50(6) (0.98)(6) 65
-- 56,840 1.47 (0.78) 103
-- 30,065 1.51 (0.86) 29
-- 30,771 1.46(7) (0.61)(7) 29
--------
* Commencement of operations.
+ See Note 1 -- Due to the reorganization which effectively converted the fund
from closed-end to open-end, the period ended 12/31/11 has been presented
under the requirements of closed-end funds.
@ Calculated based upon average shares outstanding.
# See Note 1
(1)Based on net asset value per share. Dividends and distributions, if any, are
assumed for purposes of this calculation to be reinvested at NAV on the
ex-dividend date.
(2)Based on market value per share. Dividends and distributions, if any, are
assumed for purposes of this calculation to be reinvested at prices obtained
under the Fund's prior dividend reinvestment plan.
(3)Excludes expense reductions. If expense reductions had been applied, the
ratio of expenses to average net assets would have been lower and the ratio
of net investment income (loss) to average net assets would have been higher
by the following:
12/31/11 10/31/12(7) 10/31/13 10/31/14 10/31/15 10/31/16 04/30/17(7)(11)
-------- ----------- -------- -------- -------- -------- ---------------
Focused Alpha Growth Fund Class A. 0.00% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00%
Focused Alpha Growth Fund Class C. N/A 0.00 0.00 0.00 0.00 0.00 0.00
Focused Alpha Growth Fund Class W. N/A 0.00 0.00 0.00 0.00 0.00 0.00
(4)Includes the effect of a merger.
(5)Excludes purchases/sales due to fund merger.
(6)Net of following expense reimbursements, waivers and (recoupments), if
applicable (based on average net assets):
10/31/12(7) 10/31/13 10/31/14 10/31/15
----------- -------- -------- --------
Focused Alpha Growth Fund Class A....... 0.03% (0.01)% -- % -- %
Focused Alpha Growth Fund Class C....... 0.23 0.03 (0.03) (0.00)
Focused Alpha Growth Fund Class W....... 0.84 0.01 (0.05) --
(7)Annualized.
(8)Total return is not annualized and does not reflect sales load, but does
include expense reimbursements and expense reductions.
(9)The Fund's performance figures were increased by the following amounts, from
redemption fees received:
10/31/12
--------
Focused Alpha Growth Fund Class A....... 0.64%
Focused Alpha Growth Fund Class C....... 0.61
Focused Alpha Growth Fund Class W....... 0.61
(10)Includes redemption fees of $0.12 per share.
(11)Unaudited
See Notes to Financial Statements
17
SunAmerica Specialty Series
FINANCIAL HIGHLIGHTS -- (continued)
Net gain
(loss) on
Net investments Net Net
Asset (both Dividends Distributions Asset Assets
Value Net realized Total from from net from Total Value end of
beginning investment and investment investment net realized Distri- end of Total period
Period Ended of period income(1) unrealized) operations income gains butions period Return(2) (000's)
------------ --------- ---------- ----------- ---------- ---------- ------------- ------- ------ --------- --------
AIG GLOBAL TRENDS FUND#+
------------------------
Class A
-------
10/31/12 $15.45 $(0.26) $(0.44) $(0.70) $(0.15) $(0.13) $(0.28) $14.47 (4.58)% $188,865
10/31/13 14.47 (0.27) 1.03 0.76 -- -- -- 15.23 5.25(4)(6) 66,702
10/31/14 15.23 (0.26) 0.06 (0.20) -- (1.49) (1.49) 13.54 (1.39) 35,293
10/31/15 13.54 (0.25) 0.44 0.19 -- (0.20) (0.20) 13.53 1.42 31,504
10/31/16 13.53 (0.20) (0.26) (0.46) -- (0.50) (0.50) 12.57 (3.42) 32,309
04/30/17(8) 12.57 (0.09) 0.61 0.52 -- -- -- 13.09 4.14 31,294
Class C
-------
10/31/12 $15.39 $(0.34) $(0.44) $(0.78) $(0.09) $(0.13) $(0.22) $14.39 (5.08)% $ 57,065
10/31/13 14.39 (0.37) 1.03 0.66 -- -- -- 15.05 4.59(4) 23,535
10/31/14 15.05 (0.35) 0.07 (0.28) -- (1.49) (1.49) 13.28 (1.99) 11,428
10/31/15 13.28 (0.33) 0.43 0.10 -- (0.20) (0.20) 13.18 0.77 7,984
10/31/16 13.18 (0.29) (0.24) (0.53) -- (0.50) (0.50) 12.15 (4.06) 4,597
04/30/17(8) 12.15 (0.13) 0.60 0.47 -- -- -- 12.62 3.87 3,965
Class W
-------
10/31/12 $15.46 $(0.22) $(0.46) $(0.68) $(0.16) $(0.13) $(0.29) $14.49 (4.40)% $ 60,838
10/31/13 14.49 (0.24) 1.04 0.80 -- -- -- 15.29 5.52(4)(6) 10,668
10/31/14 15.29 (0.23) 0.07 (0.16) -- (1.49) (1.49) 13.64 (1.09) 6,755
10/31/15 13.64 (0.23) 0.44 0.21 -- (0.20) (0.20) 13.65 1.56 2,717
10/31/16 13.65 (0.18) (0.26) (0.44) -- (0.50) (0.50) 12.71 (3.24) 1,427
04/30/17(8) 12.71 (0.08) 0.63 0.55 -- -- -- 13.26 4.33 1,082
Ratio
of net
Ratio of investment
expenses income to
to average average Portfolio
net assets(3) net assets(3) Turnover
------------- ------------- ---------
1.84% (1.72)% 0%
1.85 (1.74) 0
1.86 (1.82) 0
1.86 (1.79) 0
1.86 (1.59) 0
1.87(7) (1.36)(7) 0
2.50% (2.37)% 0%
2.48(5) (2.38) 0
2.51 (2.47) 0
2.51 (2.44) 0
2.51 (2.25) 0
2.52(7) (2.02)(7) 0
1.65% (1.52)% 0%
1.60(5) (1.48) 0
1.66 (1.62) 0
1.66 (1.59) 0
1.66 (1.40) 0
1.67(7) (1.17)(7) 0
--------
# Consolidated (see Note 2)
+ See Note 1
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load, but does
include expense reimbursements and expense reductions.
(3)Net of following expense reimbursements, waivers and (recoupments), if
applicable (based on average net assets):
10/31/12 10/31/13 10/31/14 10/31/15 10/31/16 04/30/17(7)(8)
-------- -------- -------- -------- -------- --------------
Global Trends Fund Class A.............. 0.18% 0.28% 0.47% 0.58% 0.58% 0.67%
Global Trends Fund Class C.............. 0.16 0.25 0.43 0.66 0.79 0.83
Global Trends Fund Class W.............. 0.16 0.26 0.47 0.84 1.22 1.31
(4)The Fund's performance figure was increased by 0.35% for Class A, Class C
and Class W, from a reimbursement by an affiliate.
(5)Includes a reimbursement of expenses from a prior year of 0.01% and 0.02%
for Class C and Class W, respectively.
(6)The Fund's performance figure was increased by 0.07% for Class A and Class W
for a reimbursement of expenses from a prior year.
(7)Annualized
(8)Unaudited
See Notes to Financial Statements
18
SunAmerica Specialty Series
FINANCIAL HIGHLIGHTS -- (continued)
Net gain
(loss) on
Net investments Net Net
Asset (both Dividends Distributions Asset Assets Ratio of
Value Net realized Total from from net from Total Value end of expenses
beginning investment and investment investment net realized Distri- end of Total period to average
Period Ended of period income(1) unrealized) operations income gains butions period Return(2) (000's) net assets(4)
------------ --------- ---------- ----------- ---------- ---------- ------------- ------- ------ --------- ------- -------------
AIG INCOME EXPLORER FUND+
-------------------------
Class A
-------
07/02/13@-
10/31/13 $15.00 $0.20 $ 0.55 $ 0.75 $(0.19) $ -- $(0.19) $15.56 5.03% $21,475 1.72%(3)
10/31/14 15.56 0.72 0.39 1.11 (0.71) -- (0.71) 15.96 7.28 23,620 1.72
10/31/15 15.96 0.70 (1.39) (0.69) (0.71) (0.64) (1.35) 13.92 (4.38) 20,062 1.72
10/31/16 13.92 0.62 0.60 1.22 (0.64) -- (0.64) 14.50 9.10 22,195 1.72
04/30/17(5) 14.50 0.35 0.83 1.18 (0.30) -- (0.30) 15.38 8.22 26,399 1.72(3)
Class C
-------
07/02/13@-
10/31/13 $15.00 $0.17 $ 0.55 $ 0.72 $(0.16) $ -- $(0.16) $15.56 4.81% $ 190 2.37%(3)
10/31/14 15.56 0.52 0.49 1.01 (0.63) -- (0.63) 15.94 6.58 2,860 2.37
10/31/15 15.94 0.60 (1.38) (0.78) (0.62) (0.64) (1.26) 13.90 (5.00) 3,110 2.37
10/31/16 13.90 0.52 0.61 1.13 (0.55) -- (0.55) 14.48 8.42 3,307 2.37
04/30/17(5) 14.48 0.30 0.82 1.12 (0.25) -- (0.25) 15.35 7.82 4,050 2.37(3)
Class W
-------
07/02/13@-
10/31/13 $15.00 $0.22 $ 0.54 $ 0.76 $(0.20) $ -- $(0.20) $15.56 5.10% $ 105 1.52%(3)
10/31/14 15.56 0.65 0.49 1.14 (0.74) -- (0.74) 15.96 7.51 502 1.52
10/31/15 15.96 0.73 (1.40) (0.67) (0.74) (0.64) (1.38) 13.91 (4.26) 410 1.52
10/31/16 13.91 0.63 0.63 1.26 (0.67) -- (0.67) 14.50 9.38 505 1.52
04/30/17(5) 14.50 0.33 0.86 1.19 (0.31) -- (0.31) 15.38 8.33 1,308 1.52(3)
Ratio
of net
investment
income to
average Portfolio
net assets(4) Turnover
------------- ---------
4.22%(3) 13%
4.55 51
4.76 50
4.42 54
4.80(3) 14
3.39%(3) 13%
3.53 51
4.11 50
3.75 54
4.14(3) 14
4.36%(3) 13%
4.37 51
4.92 50
4.65 54
4.88(3) 14
--------
@ Commencement of operations.
+ See Note 1
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load, but does
include expense reimbursements and expense reductions.
(3)Annualized.
(4)Net of following expense reimbursements, waivers and (recoupments), if
applicable (based on average net assets):
10/31/13(3) 10/31/14 10/31/15 10/31/16 04/30/17(3)(5)
----------- -------- -------- -------- --------------
Income Explorer Fund Class A............ 3.80% 0.40% 0.42% 0.52% 0.42%
Income Explorer Fund Class C............ 44.66 0.82 0.75 0.97 0.59
Income Explorer Fund Class W............ 53.79 3.71 2.94 4.00 1.39
(5)Unaudited
See Notes to Financial Statements
19
SunAmerica Specialty Series
FINANCIAL HIGHLIGHTS -- (continued)
Net gain
(loss) on
Net investments Net Net
Asset (both Dividends Distributions Asset Assets Ratio of
Value Net realized Total from from net from Total Value end of expenses
beginning investment and investment investment net realized Distri- end of Total period to average
Period Ended of period income(1) unrealized) operations income gains butions period Return(2) (000's) net assets(4)
------------ --------- ---------- ----------- ---------- ---------- ------------- ------- ------ --------- ------- -------------
AIG SMALL-CAP FUND+
-------------------
Class A
-------
02/06/14@-
10/31/14 $15.00 $(0.08) $0.57 $0.49 $-- $ -- $ -- $15.49 3.27% $50,123 1.72%(3)
10/31/15 15.49 (0.13) 1.06 0.93 -- -- -- 16.42 6.00 51,789 1.72
10/31/16 16.42 (0.10) 0.75 0.65 -- (1.32) (1.32) 15.75 4.61 42,739 1.72
04/30/17(5) 15.75 (0.05) 3.15 3.10 -- (0.52) (0.52) 18.33 19.82 50,118 1.72(3)
Class C
-------
02/06/14@-
10/31/14 $15.00 $(0.15) $0.56 $0.41 $-- $ -- $ -- $15.41 2.73% $ 256 2.37%(3)
10/31/15 15.41 (0.23) 1.06 0.83 -- -- -- 16.24 5.39 541 2.37
10/31/16 16.24 (0.19) 0.72 0.53 -- (1.32) (1.32) 15.45 3.87 811 2.37
04/30/17(5) 15.45 (0.10) 3.08 2.98 -- (0.52) (0.52) 17.91 19.42 1,415 2.37(3)
Class W
-------
02/06/14@-
10/31/14 $15.00 $(0.06) $0.57 $0.51 $-- $ -- $ -- $15.51 3.40% $ 113 1.52%(3)
10/31/15 15.51 (0.10) 1.07 0.97 -- -- -- 16.48 6.25 110 1.52
10/31/16 16.48 (0.07) 0.75 0.68 -- (1.32) (1.32) 15.84 4.79 341 1.52
04/30/17(5) 15.84 (0.04) 3.17 3.13 -- (0.52) (0.52) 18.45 19.90 4,572 1.52(3)
Ratio
of net
investment
income to
average Portfolio
net assets(4) Turnover
------------- ---------
(0.76)%(3) 61%
(0.79) 88
(0.66) 67
(0.56)(3) 24
(1.46)%(3) 61%
(1.47) 88
(1.33) 67
(1.24)(3) 24
(0.57)%(3) 61%
(0.59) 88
(0.47) 67
(0.51)(3) 24
--------
@ Commencement of operations.
+ See Note 1
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load, but does
include expense reimbursements and expense reductions.
(3)Annualized.
(4)Net of following expense reimbursements, waivers and (recoupments), if
applicable (based on average net assets):
10/31/14(3) 10/31/15 10/31/16 04/30/17(3)(5)
----------- -------- -------- --------------
Small Cap Fund Class A.................. 0.26% 0.33% 0.26% 0.30%
Small Cap Fund Class C.................. 12.36 4.32 2.27 1.00
Small Cap Fund Class W.................. 18.46 13.86 5.01 0.72
(5)Unaudited
See Notes to Financial Statements
20
SunAmerica Specialty Series -- 2020 High Watermark Fund
PORTFOLIO PROFILE -- April 30, 2017 -- (unaudited)
Industry Allocation*
United States Treasury Bonds................................................ 64.6%
Resolution Funding Corp..................................................... 26.1
U.S. Government Treasuries.................................................. 5.0
Repurchase Agreements....................................................... 4.4
-----
Total Investments........................................................... 100.1
Liabilities in excess of other assets (including futures contracts) . . . .. (0.1)
-----
Net Assets.................................................................. 100.0%
=====
--------
* Calculated as a percentage of net assets
Credit Quality+#
Aaa. 100.0%
=====
--------
+ Source: Moody's
# Calculated as a percentage of total debt issues, excluding short-term
securities.
21
SunAmerica Specialty Series -- 2020 High Watermark Fund
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited)
Principal Value
Security Description Amount (Note 3)
--------------------------------------------------------------
U.S. GOVERNMENT AGENCIES -- 26.1%
Resolution Funding Corp. -- 26.1%
Resolution Funding Corp. STRIPS
zero coupon due 07/15/2020
(cost $6,147,950)................... $ 7,000,000 $ 6,622,987
-----------
U.S. GOVERNMENT TREASURIES -- 64.6%
United States Treasury Bonds -- 64.6%
United States Treasury Bonds STRIPS
zero coupon due 08/15/2020
(cost $15,067,754).................. 17,290,000 16,409,161
-----------
Total Long-Term Investment Securities
(cost $21,215,704).................. 23,032,148
-----------
SHORT-TERM INVESTMENT SECURITIES -- 5.0%
U.S. Government Treasuries -- 5.0%
United States Treasury Bills
0.59% due 07/13/17(1)
(cost $1,268,481)................... 1,270,000 1,268,094
-----------
Principal Value
Security Description Amount (Note 3)
-------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 4.4%
Agreement with Fixed Income Clearing Corp.,
bearing interest at 0.09%, dated 04/28/2017,
to be repurchased 05/01/2017 in the amount
of $1,118,008 and collateralized by
$1,120,000 of United States Treasury Bonds,
bearing interest at 3.00%, due 11/15/2044
and having an approximate value of
$1,142,801.
(cost $1,118,000)............................. $1,118,000 $ 1,118,000
-----------
TOTAL INVESTMENTS
(cost $23,602,185)(2)......................... 100.1% 25,418,242
Liabilities in excess of other assets............ (0.1) (23,921)
---------- -----------
NET ASSETS 100.0% $25,394,321
========== ===========
--------
(1)The security of a portion thereof was pledged as collateral to cover margin
requirements for open futures contracts.
(2)See Note 6 for cost of investments on a tax basis.
STRIPS -- SeparateTrading of Registered Interest and Principal of Securities
Futures Contracts
----------------------------------------------------------------------------------------------
Unrealized
Number of Value at Value as of Appreciation
Contracts Type Description Expiration Month Trade Date April 30, 2017 (Depreciation)
--------- ---- --------------------- ---------------- ---------- -------------- --------------
1 Long S&P 500 E-Mini Index June 2017 $118,615 $119,025 $410
====
The following is a summary of the inputs used to value the Fund's net assets as
of April 30, 2017 (see Note 3):
Level 1 -- Unadjusted Level 2 -- Other Level 3 -- Significant
Quoted Prices Observable Inputs Unobservable Inputs Total
--------------------- ----------------- ---------------------- -----------
ASSETS:
Investments at Value:*
U.S. Government Agencies......... $ -- $ 6,622,987 $-- $ 6,622,987
U.S. Government Treasuries....... -- 16,409,161 -- 16,409,161
Short-Term Investment Securities. -- 1,268,094 -- 1,268,094
Repurchase Agreements............ -- 1,118,000 -- 1,118,000
---- ----------- --- -----------
Total Investments at Value....... $ -- $25,418,242 $-- $25,418,242
==== =========== === ===========
Other Financial Instruments:+
Futures Contracts................ $410 $ -- $-- $ 410
==== =========== === ===========
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
+ Other financial instruments are derivative instruments not reflected in the
Portfolio of Investments, such as futures, forward, swap and written option
contracts, which are valued at the unrealized appreciation (depreciation) on
the instrument.
The Fund's policy is to recognize transfers between Levels as of the end of the
reporting period. There were no transfers between Levels during the reporting
period.
See Notes to Financial Statements
22
SunAmerica Specialty Series -- AIG Commodity Strategy Fund+
CONSOLIDATED PORTFOLIO PROFILE -- April 30, 2017@ -- (unaudited)
Industry Allocation*
Repurchase Agreements............................................... 60.5%
U.S. Government Agencies............................................ 18.8
United States Treasury Notes........................................ 9.4
U.S. Government Treasuries.......................................... 4.3
Investment Companies................................................ 1.1
Options Purchased................................................... 0.1
-----
Total investments................................................... 94.2
Other assets less liabilities (including futures, options and swaps
contracts)......................................................... 5.8
-----
Net Assets.......................................................... 100.0%
=====
--------
* Calculated as a percentage of net assets
+ See Note 1
Credit Quality+**
Aaa. 100.0%
=====
--------
* Calculated as a percentage of net assets.
@ Consolidated (see Note 2)
+ Source: Moody's
** Calculated as a percentage of total debt issues, excluding short-term
securities.
23
SunAmerica Specialty Series -- AIG Commodity Strategy Fund#
CONSOLIDATED PORTFOLIO OF INVESTMENTS -- April 30, 2017@ -- (unaudited)
Shares/
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------
U.S. GOVERNMENT TREASURIES -- 9.4%
United States Treasury Notes -- 9.4%
0.88% due 05/15/2017............... $ 350,000 $ 350,024
0.90% due 07/31/2017 FRS........... 1,000,000 1,000,236
0.99% due 10/31/2017 FRS........... 1,200,000 1,201,224
1.01% due 04/30/2018 FRS........... 1,000,000 1,001,784
----------
Total U.S. Government Treasuries
(cost $3,550,673).................. 3,553,268
----------
COMMON STOCKS -- 1.1%
Investment Companies -- 1.1%
Uranium Participation Corp.+(1)
(cost $554,503).................... 142,200 408,354
----------
OPTIONS -- PURCHASED -- 0.1%
Call Options Purchased(1)(4)........ 24 29,276
Put Options Purchased(1)(5)......... 4 3,400
----------
Total Options -- Purchased
(cost $40,877)..................... 32,676
----------
Total Long-Term Investment Securities
(cost $4,146,053).................. 3,994,298
----------
SHORT-TERM INVESTMENT SECURITIES -- 23.1%
U.S. Government Agencies -- 18.8%
Federal Home Loan Bank
0.55% due 05/12/2017............... 126,000 125,972
0.55% due 05/15/2017............... 474,000 473,863
0.56% due 05/24/2017............... 1,000,000 999,527
0.56% due 06/01/2017............... 1,000,000 999,320
0.68% due 05/31/2017............... 500,000 499,692
0.78% due 06/07/2017............... 650,000 649,472
0.78% due 06/16/2017............... 954,000 953,037
0.79% due 06/14/2017............... 346,000 345,666
0.88% due 05/24/2017............... 1,000,000 1,000,039
1.00% due 06/21/2017............... 1,000,000 1,000,282
----------
7,046,870
----------
U.S. Government Treasuries -- 4.3%
United States Treasury Bills
0.57% due 05/04/2017............... 133,300 133,293
0.60% due 05/04/2017............... 157,200 157,192
0.60% due 05/11/2017............... 313,200 313,142
0.61% due 05/18/2017............... 1,021,700 1,021,375
----------
1,625,002
----------
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------------
Total Short-Term Investment Securities
(cost $8,672,668)....................... $ 8,671,872
-----------
REPURCHASE AGREEMENTS -- 60.5%
Bank of America Securities LLC Joint
Repurchase Agreement(2)................. $2,980,000 2,980,000
Bank of America Securities LLC Joint
Repurchase Agreement(1)(2).............. 805,000 805,000
Barclays Capital, Inc. Joint Repurchase
Agreement(2)............................ 2,980,000 2,980,000
Barclays Capital, Inc. Joint Repurchase
Agreement(1)(2)......................... 805,000 805,000
BNP Paribas SA Joint Repurchase
Agreement(2)............................ 5,090,000 5,090,000
BNP Paribas SA Joint Repurchase
Agreement(1)(2)......................... 1,375,000 1,375,000
Deutsche Bank AG Joint Repurchase
Agreement(2)............................ 2,420,000 2,420,000
Deutsche Bank AG Joint Repurchase
Agreement(1)(2)......................... 650,000 650,000
RBS Securities, Inc. Joint Repurchase
Agreement(2)............................ 4,460,000 4,460,000
RBS Securities, Inc. Joint Repurchase
Agreement(1)(2)......................... 1,205,000 1,205,000
-----------
Total Repurchase Agreements
(cost $22,770,000)...................... 22,770,000
-----------
TOTAL INVESTMENTS
(cost $35,588,721)(3)................... 94.2% 35,436,170
Other assets less liabilities.............. 5.8 2,185,374
---------- -----------
NET ASSETS 100.0% $37,621,544
========== ===========
--------
# See Note 1.
@ Consolidated (see Note 2).
+ Non-income producing security
(1)The security is owned by the AIG Commodity Strategy Cayman Fund Ltd., which
is a wholly-owned subsidiary of the AIG Commodity Strategy Fund.
(2)See Note 3 for details of Joint Repurchase Agreements.
(3)See Note 6 for cost of investments on a tax basis.
(4)Call Options - Purchased
Exchange Traded Purchased Call Options(a)
-------------------------------------------------------------------------------
Value at Unrealized
Expiration Strike No. of Premiums April 30, Appreciation
Issue Month Price Contracts Paid 2017 (Depreciation)
----------------- ---------- ------ --------- -------- --------- --------------
Crude Oil Futures May-17 $50.00 5 $ 6,870 $ 3,950 $ (2,920)
Aluminum Futures Jun-17 18.00 6 9,112 17,369 8,256
Copper Futures Jun-17 60.00 3 17,625 4,075 (13,550)
Corn Futures Jun-17 3.80 7 2,438 2,450 12
Soybean Futures Jun-17 10.00 3 1,432 1,432 --
-- ------- ------- --------
24 $37,477 $29,276 $ (8,202)
== ======= ======= ========
24
SunAmerica Specialty Series -- AIG Commodity Strategy Fund#
CONSOLIDATED PORTFOLIO OF INVESTMENTS -- April 30, 2017@ -- (unaudited)
(continued)
(5)Put Options - Purchased
Exchange Traded Purchased Put Options(a)
--------------------------------------------------------------------------
Value at Unrealized
Expiration Strike No. of Premiums April 30, Appreciation
Issue Month Price Contracts Paid 2017 (Depreciation)
------------ ---------- ------ --------- -------- --------- --------------
Gold Futures May-17 $12.50 4 $3,400 $3,400 $--
= ====== ====== ===
FRS-- Floating Rate Security
The rates shown on FRS are the current interest rates at April 30, 2017 and
unless noted otherwise, the dates shown are the original maturity dates.
Exchange Traded Written Call Options(a)
----------------------------------------------------------------------------
Value at Unrealized
Expiration Strike No. of Premiums April 30, Appreciation
Issue Month Price Contracts Received 2017 (Depreciation)
-------------- ---------- ------ --------- -------- --------- --------------
Copper Futures Jun-17 $64.00 3 $8,723 $681 $8,042
= ====== ==== ======
Exchange Traded Written Put Options(a)
---------------------------------------------------------------------------------
Value at Unrealized
Expiration Strike No. of Premiums April 30, Appreciation
Issue Month Price Contracts Received 2017 (Depreciation)
------------------- ---------- ------ --------- -------- --------- --------------
Brent Crude Futures Oct-17 $70.00 1 $14,800* $17,280 $(2,480)
= ======= ======= =======
Futures Contracts(a)
-------------------------------------------------------------------------------------------
Value as of Unrealized
Number of Value at April 30, Appreciation
Contracts Type Description Expiration Month Trade Date 2017 (Depreciation)
--------- ---- -------------------- ---------------- ---------- ----------- --------------
19 Long Aluminum Futures June 2017 $ 897,970 $ 905,944 $ 7,974
8 Short Aluminum Futures June 2017 385,556 381,450 4,106
3 Short Aluminum Futures December 2017 135,219 144,431 (9,212)
44 Long Brent Crude Futures July 2017 2,427,358 2,290,200 (137,158)
14 Long Brent Crude Futures August 17 734,610 733,180 (1,430)
11 Short Brent Crude Futures December 2018 544,668 579,370 (34,702)
4 Long Cocoa Futures July 2017 83,950 73,640 (10,310)
7 Long Coffee Futures July 2017 366,450 350,175 (16,275)
17 Long Copper Futures June 2017 2,518,931 2,434,825 (84,106)
1 Short Copper Futures June 2017 147,464 143,225 4,239
94 Long Corn Futures July 2017 1,764,125 1,722,550 (41,575)
30 Short Corn Futures December 2017 577,212 577,500 (288)
2 Long Gasoil Futures June 2017 94,950 91,100 (3,850)
22 Long Gasoline Futures June 2017 1,596,368 1,430,444 (165,924)
4 Short Gasoline Futures December 2017 262,920 235,166 27,754
11 Long Gold Futures June 2017 1,350,900 1,395,130 44,230
23 Long Heating Oil Futures June 2017 1,562,038 1,455,955 (106,083)
12 Long Lean Hogs Futures June 2017 342,710 355,200 12,490
18 Long Natural Gas Futures June 2017 615,600 589,680 (25,920)
15 Long Natural Gas Futures August 2017 469,350 507,000 37,650
15 Long Natural Gas Futures January 2018 508,050 544,500 36,450
9 Long Nickel Futures June 2017 593,115 509,085 (84,030)
10 Long Silver Futures July 2017 923,300 863,100 (60,200)
18 Long Soybean Futures July 2017 864,159 860,625 (3,534)
11 Long Soybean Futures November 2017 559,838 524,288 (35,550)
34 Long Soybean Meal Futures July 2017 1,069,360 1,073,720 4,360
2 Short Soybean Meal Futures December 2017 67,030 63,400 3,630
33 Long Soybean Oil July 2017 713,046 627,858 (85,188)
67 Long Sugar Futures July 2017 1,254,993 1,210,395 (44,598)
14 Short Sugar Futures October 2017 284,772 255,898 28,874
41 Long Wheat Futures July 2017 886,959 896,363 9,404
32 Long Wheat Futures July 2017 698,563 691,600 (6,963)
13 Long WTI Crude Futures June 2017 679,577 641,290 (38,287)
10 Long WTI Crude Futures November 2017 506,510 504,600 (1,910)
--------
# See Note 1
* Represents value at trade date
25
SunAmerica Specialty Series -- AIG Commodity Strategy Fund#
CONSOLIDATED PORTFOLIO OF INVESTMENTS -- April 30, 2017@ -- (unaudited)
(continued)
Futures Contracts(a)
----------------------------------------------------------------------------------------
Value as of Unrealized
Number of Value at April 30, Appreciation
Contracts Type Description Expiration Month Trade Date 2017 (Depreciation)
--------- ---- ----------------- ---------------- ---------- ----------- --------------
12 Long WTI Crude Futures December 2017 $ 627,240 $ 607,080 $ (20,160)
8 Short WTI Crude Futures December 2018 435,017 402,880 32,137
16 Long Zinc Futures June 2017 1,127,351 1,048,100 (79,251)
---------
$(843,206)
=========
Over the Counter Total Return Swap Contracts(a)+
----------------------------------------------------------------------------------------------------------------------------------
Notional Fixed Payments
Amount Termination Received (Paid) by the Total Return Received or Paid by
Swap Counterparty (000's) Date Portfolio Portfolio
---------------------------------- -------- ----------- ---------------------- ----------------------------------
Chase Bank NA $12,237 09/29/2017 (0.090)% Bloomberg Commodity Index
Chase Bank NA 396 09/29/2017 (0.090)% Bloomberg Commodity Index
Chase Bank NA 654 09/29/2017 (0.200)% S&P GSCI Grains Index
Goldman Sachs International 198 09/29/2017 (0.150)% S&P GSCI Industrial Metals Index
Barclays 593 10/31/2017 (0.160)% Bloomberg Silver Subindex
Goldman Sachs International 244 11/29/2017 $(17.11) per oz. LBMA Silver Price
Barclays 256 02/15/2018 (0.300)% Bloomberg Soybean Meal Subindex
Over the Counter Total Return Swap Contracts(a)+
----------------------------------------------------------------------------------------------------------------------------------
Gross Unrealized
Total Return Received or Paid by Appreciation/
Swap Counterparty Portfolio (Depreciation)
---------------------------------- ---------------------------------- ----------------
Chase Bank NA Bloomberg Commodity Index $ --
Chase Bank NA Bloomberg Commodity Index --
Chase Bank NA S&P GSCI Grains Index --
Goldman Sachs International S&P GSCI Industrial Metals Index --
Barclays Bloomberg Silver Subindex --
Goldman Sachs International LBMA Silver Price 1,139
Barclays Bloomberg Soybean Meal Subindex --
------
$1,139
======
--------
(a)The security is owned by the AIG Commodity Strategy Cayman Fund Ltd. which
is a wholly-owned subsidiary of the AIG Commodity Strategy Fund.
+ Illiquid security. At April 30, 2017, the aggregate value of these
securities was $1,139, representing 0.0% of net assets.
# See Note 1
LMBA-- London Bullion Market Association
The following is a summary of the inputs used to value the Fund's net assets as
of April 30, 2017 (see Note 3):
Level 1 -- Unadjusted Level 2 -- Other Level 3 -- Significant
Quoted Prices Observable Inputs Unobservable Inputs Total
--------------------- ----------------- ---------------------- -----------
ASSETS:
Investments at Value:*
U.S. Government Treasuries................... $ -- $ 3,553,268 $-- $ 3,553,268
Common Stocks................................ 408,354 -- -- 408,354
Options-Purchased............................ 32,676 -- -- 32,676
Short-Term Investment Securities............. -- 8,671,872 -- 8,671,872
Repurchase Agreements........................ -- 22,770,000 -- 22,770,000
---------- ----------- --- -----------
Total Investments at Value................... $ 441,030 $34,995,140 $-- $35,436,170
========== =========== === ===========
Other Financial Instruments:+
Exchange Traded Written Call Options......... $ 8,042 $ -- $-- $ 8,042
Futures Contracts............................ 253,298 -- -- 253,298
Over the Counter Total Return Swap Contracts. -- 1,139 -- 1,139
---------- ----------- --- -----------
$ 261,340 $ 1,139 $-- $ 262,479
========== =========== === ===========
LIABILITIES:
Other Financial Instruments:+
Exchange Traded Written Put Options.......... $ 2,480 $ -- $-- $ 2,480
Futures Contracts............................ 1,096,504 -- -- 1,096,504
---------- ----------- --- -----------
$1,098,984 $ -- $-- $ 1,098,984
========== =========== === ===========
--------
@ Consolidated (see Note 2).
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
+ Other financial instruments are derivative instruments not reflected in the
Consolidated Portfolio of Investments, such as futures, forward, written
options and swaps contracts, which are valued at the unrealized appreciation
(depreciation) on the instrument.
The Fund's policy is to recognize transfers between Levels as of the end of the
reporting period. There were no transfers between Levels during the reporting
period.
See Notes to Financial Statements
26
SunAmerica Specialty Series -- AIG ESG Dividend Fund
PORTFOLIO PROFILE -- April 30, 2017 -- (unaudited)
Industry Allocation*
Consumer Products-Misc................. 5.5%
Investment Management/Advisor Services. 5.2
Cosmetics & Toiletries................. 5.2
Beverages-Non-alcoholic................ 5.1
Electronic Components-Semiconductors... 5.1
Retail-Restaurants..................... 4.7
Transport-Services..................... 4.6
Office Automation & Equipment.......... 4.5
Computers.............................. 3.0
Toys................................... 2.9
Insurance-Property/Casualty............ 2.9
Networking Products.................... 2.7
Theaters............................... 2.7
Dental Supplies & Equipment............ 2.7
Engines-Internal Combustion............ 2.6
Retail-Consumer Electronics............ 2.6
Telephone-Integrated................... 2.6
Medical-Drugs.......................... 2.6
Apparel Manufacturers.................. 2.5
Auction Houses/Art Dealers............. 2.5
Enterprise Software/Service............ 2.4
Medical-Wholesale Drug Distribution.... 2.4
Retail-Mail Order...................... 2.4
Electric-Integrated.................... 2.3
Finance-Other Services................. 2.3
Publishing-Books....................... 2.3
Commercial Services-Finance............ 2.3
Food-Misc./Diversified................. 2.2
Medical-Biomedical/Gene................ 2.2
Retail-Computer Equipment.............. 2.2
Retail-Major Department Stores......... 2.1
Printing-Commercial.................... 1.9
-----
Total Investments...................... 99.2
Other Assets Less Liabilities.......... 0.8
-----
Net Assets 100.0%
=====
--------
* Calculated as a percentage of net assets
27
SunAmerica Specialty Series -- AIG ESG Dividend Fund
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited)
Value
Security Description Shares (Note 3)
---------------------------------------------------
COMMON STOCKS -- 99.2%
Apparel Manufacturers -- 2.5%
VF Corp........................ 9,577 $ 523,191
----------
Auction Houses/Art Dealers -- 2.5%
KAR Auction Services, Inc...... 11,966 521,957
----------
Beverages-Non-alcoholic -- 5.1%
Dr Pepper Snapple Group, Inc... 5,718 524,055
PepsiCo, Inc................... 4,915 556,771
----------
1,080,826
----------
Commercial Services-Finance -- 2.3%
Western Union Co............... 24,231 481,228
----------
Computers -- 3.0%
HP, Inc........................ 33,348 627,609
----------
Consumer Products-Misc. -- 5.5%
Clorox Co...................... 4,387 586,498
Kimberly-Clark Corp............ 4,479 581,150
----------
1,167,648
----------
Cosmetics & Toiletries -- 5.2%
Colgate-Palmolive Co........... 7,832 564,217
Procter & Gamble Co............ 6,109 533,499
----------
1,097,716
----------
Dental Supplies & Equipment -- 2.7%
Patterson Cos., Inc............ 12,816 570,184
----------
Electric-Integrated -- 2.3%
AES Corp....................... 43,821 495,616
----------
Electronic Components-Semiconductors -- 5.1%
Intel Corp..................... 14,263 515,608
Texas Instruments, Inc......... 7,051 558,298
----------
1,073,906
----------
Engines-Internal Combustion -- 2.6%
Cummins, Inc................... 3,721 561,648
----------
Enterprise Software/Service -- 2.4%
CA, Inc........................ 15,801 518,747
----------
Finance-Other Services -- 2.3%
CME Group, Inc................. 4,226 491,019
----------
Food-Misc./Diversified -- 2.2%
General Mills, Inc............. 8,245 474,170
----------
Insurance-Property/Casualty -- 2.9%
First American Financial Corp.. 14,056 610,171
----------
Investment Management/Advisor Services -- 5.2%
Legg Mason, Inc................ 16,674 623,274
T. Rowe Price Group, Inc....... 6,821 483,541
----------
1,106,815
----------
Medical-Biomedical/Gene -- 2.2%
Gilead Sciences, Inc........... 6,868 470,801
----------
Value
Security Description Shares (Note 3)
-----------------------------------------------------------
Medical-Drugs -- 2.6%
AbbVie, Inc.......................... 8,337 $ 549,742
-----------
Medical-Wholesale Drug Distribution -- 2.4%
Cardinal Health, Inc................. 7,097 515,171
-----------
Networking Products -- 2.7%
Cisco Systems, Inc................... 16,880 575,102
-----------
Office Automation & Equipment -- 4.5%
Pitney Bowes, Inc.................... 33,302 442,583
Xerox Corp........................... 72,046 518,011
-----------
960,594
-----------
Printing-Commercial -- 1.9%
RR Donnelley & Sons Co............... 31,327 393,780
-----------
Publishing-Books -- 2.3%
John Wiley & Sons, Inc., Class A..... 9,233 486,579
-----------
Retail-Computer Equipment -- 2.2%
GameStop Corp., Class A.............. 20,417 463,262
-----------
Retail-Consumer Electronics -- 2.6%
Best Buy Co., Inc.................... 10,748 556,854
-----------
Retail-Mail Order -- 2.4%
Williams-Sonoma, Inc................. 9,233 499,044
-----------
Retail-Major Department Stores -- 2.1%
Nordstrom, Inc....................... 9,371 452,338
-----------
Retail-Restaurants -- 4.7%
Brinker International, Inc........... 10,106 446,584
Dunkin' Brands Group, Inc............ 9,669 540,110
-----------
986,694
-----------
Telephone-Integrated -- 2.6%
CenturyLink, Inc..................... 21,589 554,190
-----------
Theaters -- 2.7%
Cinemark Holdings, Inc............... 13,298 574,474
-----------
Toys -- 2.9%
Hasbro, Inc.......................... 6,247 619,140
-----------
Transport-Services -- 4.6%
C.H. Robinson Worldwide, Inc......... 6,959 505,919
United Parcel Service, Inc., Class B. 4,409 473,791
-----------
979,710
-----------
Total Long-Term Investment Securities
(cost $20,382,911).................. 21,039,926
-----------
TOTAL INVESTMENTS
(cost $20,382,911)(1)............... 99.2% 21,039,926
Other assets less liabilities.......... 0.8 171,000
------ -----------
NET ASSETS 100.0% $21,210,926
====== ===========
--------
(1)See Note 6 for cost of investments on a tax basis.
28
SunAmerica Specialty Series -- AIG ESG Dividend Fund
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
The following is a summary of the inputs used to value the Fund's net assets as
of April 30, 2017 (see Note 3):
Level 1 -- Unadjusted Level 2 -- Other Level 3 -- Significant
Quoted Prices Observable Inputs Unobservable Inputs Total
--------------------- ----------------- ---------------------- -----------
ASSETS:
Investments at Value:*
Common Stocks........................... $21,039,926 $-- $-- $21,039,926
----------- --- --- -----------
Total Investments at Value.............. $21,039,926 $-- $-- $21,039,926
=========== === === ===========
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
The Fund's policy is to recognize transfers between Levels as of the end of the
reporting period. There were no transfers between Levels during the reporting
period.
See Notes to Financial Statements
29
SunAmerica Specialty Series -- AIG Focused Alpha Large-Cap Fund+
PORTFOLIO PROFILE -- April 30, 2017 -- (unaudited)
Industry Allocation*
E-Commerce/Products..................... 10.8%
Medical-HMO............................. 10.8
Medical-Biomedical/Gene................. 9.6
Banks-Super Regional.................... 8.1
Diversified Banking Institutions........ 7.0
Cable/Satellite TV...................... 6.3
Internet Content-Entertainment.......... 6.3
Cruise Lines............................ 6.2
Retail-Building Products................ 5.6
E-Services/Consulting................... 5.5
Oil Companies-Integrated................ 5.4
Multimedia.............................. 5.0
Aerospace/Defense....................... 4.8
Finance-Credit Card..................... 4.7
Transport-Rail.......................... 4.0
Time Deposits........................... 0.2
-----
Total Investments....................... 100.3
Liabilities in excess of other assets... (0.3)
-----
Net Assets 100.0%
=====
--------
* Calculated as a percentage of net assets
+ See Note 1
30
SunAmerica Specialty Series -- AIG Focused Alpha Large-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited)
Value
Security Description Shares (Note 3)
-----------------------------------------
COMMON STOCKS -- 100.1%
Aerospace/Defense -- 4.8%
Lockheed Martin Corp................... 103,095 $27,778,948
-----------
Banks-Super Regional -- 8.1%
US Bancorp............................. 674,782 34,602,821
Wells Fargo & Co....................... 224,429 12,083,257
-----------
46,686,078
-----------
Cable/Satellite TV -- 6.3%
Comcast Corp., Class A................. 927,435 36,346,178
-----------
Cruise Lines -- 6.2%
Carnival Corp.......................... 578,734 35,748,399
-----------
Diversified Banking Institutions -- 7.0%
Bank of America Corp................... 665,891 15,541,896
JPMorgan Chase & Co.................... 289,323 25,171,101
-----------
40,712,997
-----------
E-Commerce/Products -- 10.8%
Alibaba Group Holding, Ltd. ADR+....... 283,734 32,771,277
Amazon.com, Inc.+...................... 32,317 29,892,902
-----------
62,664,179
-----------
E-Services/Consulting -- 5.5%
CDW Corp............................... 534,991 31,612,618
-----------
Finance-Credit Card -- 4.7%
Visa, Inc., Class A.................... 300,936 27,451,382
-----------
Internet Content-Entertainment -- 6.3%
Facebook, Inc., Class A+............... 241,236 36,245,709
-----------
Medical-Biomedical/Gene -- 9.6%
Celgene Corp.+......................... 218,288 27,078,626
Gilead Sciences, Inc................... 414,701 28,427,754
-----------
55,506,380
-----------
Shares/
Principal Value
Security Description Amount (Note 3)
-------------------------------------------------------------------------
Medical-HMO -- 10.8%
Humana, Inc................................... 154,474 $ 34,290,138
UnitedHealth Group, Inc....................... 162,008 28,331,959
------------
62,622,097
------------
Multimedia -- 5.0%
Walt Disney Co................................ 249,763 28,872,603
------------
Oil Companies-Integrated -- 5.4%
Suncor Energy, Inc............................ 1,004,431 31,498,956
------------
Retail-Building Products -- 5.6%
Home Depot, Inc............................... 205,715 32,112,111
------------
Transport-Rail -- 4.0%
Norfolk Southern Corp......................... 198,834 23,361,007
------------
Total Long-Term Investment Securities
(cost $448,212,081).......................... 579,219,642
------------
SHORT-TERM INVESTMENT SECURITIES -- 0.2%
Time Deposits -- 0.2%
Euro Time Deposit with State Street Bank and
Trust Co.
0.09% due 05/01/2017
(cost $1,045,000)............................ $1,045,000 1,045,000
------------
TOTAL INVESTMENTS
(cost $449,257,081)(1)....................... 100.3% 580,264,642
Liabilities in excess of other assets........... (0.3) (1,632,363)
---------- ------------
NET ASSETS 100.0% $578,632,279
========== ============
--------
+ Non-income producing security
(1)See Note 6 for cost of investments on a tax basis.
ADR--AmericanDepositary Receipt
++ See Note 1
The following is a summary of the inputs used to value the Fund's net assets as
of April 30, 2017 (see Note 3):
Level 1 -- Unadjusted Level 2 -- Other Level 3 -- Significant
Quoted Prices Observable Inputs Unobservable Inputs Total
--------------------- ----------------- ---------------------- ------------
ASSETS:
Investments at Value:*
Common Stocks.................... $579,219,642 $ -- $-- $579,219,642
Short-Term Investment Securities. -- 1,045,000 -- 1,045,000
------------ ---------- --- ------------
Total Investments at Value....... $579,219,642 $1,045,000 $-- $580,264,642
============ ========== === ============
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
The Fund's policy is to recognize transfers between Levels as of the end of the
reporting period. There were no transfers between Levels during the reporting
period.
See Notes to Financial Statements
31
SunAmerica Specialty Series -- AIG Focused Multi-Cap Growth Fund+
PORTFOLIO PROFILE -- April 30, 2017 -- (unaudited)
Industry Allocation*
E-Commerce/Products..................... 15.5%
Multimedia.............................. 9.1
Internet Content-Entertainment.......... 8.8
Resorts/Theme Parks..................... 7.1
Medical-HMO............................. 7.0
Aerospace/Defense....................... 6.8
Finance-Credit Card..................... 6.7
Medical-Biomedical/Gene................. 6.7
Retail-Building Products................ 5.3
Auto-Cars/Light Trucks.................. 4.7
Hotels/Motels........................... 3.8
Banks-Super Regional.................... 3.0
Insurance-Property/Casualty............. 2.9
Diagnostic Kits......................... 2.3
Professional Sports..................... 2.1
Commercial Services..................... 2.0
Finance-Investment Banker/Broker........ 1.7
Time Deposits........................... 1.6
Food-Canned............................. 1.1
Apparel Manufacturers................... 0.7
Enterprise Software/Service............. 0.7
Consulting Services..................... 0.6
-----
Total Investments....................... 100.2
Liabilities in excess of other assets... (0.2)
-----
Net Assets.............................. 100.0%
=====
--------
* Calculated as a percentage of net assets
+ See Note 1
32
SunAmerica Specialty Series -- AIG Focused Multi-Cap Growth Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited)
Value
Security Description Shares (Note 3)
-------------------------------------------------------------
COMMON STOCKS -- 98.6%
Aerospace/Defense -- 6.8%
Lockheed Martin Corp................... 128,322 $34,576,363
-----------
Apparel Manufacturers -- 0.7%
Under Armour, Inc., Class A+........... 178,000 3,825,220
-----------
Auto-Cars/Light Trucks -- 4.7%
Tesla, Inc.+........................... 75,664 23,763,792
-----------
Banks-Super Regional -- 3.0%
Wells Fargo & Co....................... 281,230 15,141,423
-----------
Commercial Services -- 2.0%
CoStar Group, Inc.+.................... 42,461 10,228,430
-----------
Consulting Services -- 0.6%
Verisk Analytics, Inc.+................ 38,959 3,226,195
-----------
Diagnostic Kits -- 2.3%
IDEXX Laboratories, Inc.+.............. 70,000 11,741,100
-----------
E-Commerce/Products -- 15.5%
Alibaba Group Holding, Ltd. ADR+....... 354,882 40,988,871
Amazon.com, Inc.+...................... 40,748 37,691,493
-----------
78,680,364
-----------
Enterprise Software/Service -- 0.7%
Benefitfocus, Inc.+.................... 110,066 3,467,079
-----------
Finance-Credit Card -- 6.7%
Visa, Inc., Class A.................... 374,612 34,172,107
-----------
Finance-Investment Banker/Broker -- 1.7%
Charles Schwab Corp.................... 229,000 8,896,650
-----------
Food-Canned -- 1.1%
TreeHouse Foods, Inc.+................. 64,000 5,606,400
-----------
Hotels/Motels -- 3.8%
Hyatt Hotels Corp., Class A+........... 350,000 19,425,000
-----------
Insurance-Property/Casualty -- 2.9%
Arch Capital Group, Ltd.+.............. 154,000 14,933,380
-----------
Shares/
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------------------
Internet Content-Entertainment -- 8.8%
Facebook, Inc., Class A+...................... 296,542 $ 44,555,435
------------
Medical-Biomedical/Gene -- 6.7%
Celgene Corp.+................................ 273,953 33,983,870
------------
Medical-HMO -- 7.0%
UnitedHealth Group, Inc....................... 202,634 35,436,634
------------
Multimedia -- 9.1%
FactSet Research Systems, Inc................. 68,000 11,101,680
Walt Disney Co................................ 302,705 34,992,698
------------
46,094,378
------------
Professional Sports -- 2.1%
Manchester United PLC, Class A................ 635,023 10,477,879
------------
Resort/Theme Parks -- 7.1%
Vail Resorts, Inc............................. 182,000 35,974,120
------------
Retail-Building Products -- 5.3%
Home Depot, Inc............................... 172,969 27,000,461
------------
Total Long-Term Investment Securities
(cost $338,132,012).......................... 501,206,280
------------
SHORT-TERM INVESTMENT SECURITIES -- 1.6%
Time Deposits -- 1.6%
Euro Time Deposit with State Street Bank and
Trust Co.
0.09% due 05/01/2017
(cost $8,411,000)............................ 8,411,000 8,411,000
------------
TOTAL INVESTMENTS
(cost $346,543,012)(1)....................... 100.2% 509,617,280
Liabilities in excess of other assets........... (0.2) (1,146,283)
--------- ------------
NET ASSETS 100.0% $508,470,997
========= ============
--------
+ Non-income producing security
(1)See Note 6 for cost of investments on a tax basis.
ADR -- America Depositary Receipt
++ See Note 1
The following is a summary of the inputs used to value the Fund's net assets as
of April 30, 2017 (see Note 3):
Level 1 -- Unadjusted Level 2 -- Other Level 3 -- Significant
Quoted Prices Observable Inputs Unobservable Inputs Total
--------------------- ----------------- ---------------------- ------------
ASSETS:
Investments at Value:*
Common Stocks.................... $501,206,280 $ -- $-- $501,206,280
Short-Term Investment Securities. -- 8,411,000 -- 8,411,000
------------ ---------- --- ------------
Total Investments at Value....... $501,206,280 $8,411,000 $-- $509,617,280
============ ========== === ============
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
The Fund's policy is to recognize transfers between Levels as of the end of the
reporting period. There were no transfers between Levels during the reporting
period.
See Notes to Financial Statements
33
SunAmerica Specialty Series -- AIG Global Trends Fund+
CONSOLIDATED PORTFOLIO PROFILE -- April 30, 2017@ -- (unaudited)
Industry Allocation*
Repurchase Agreements................................................ 94.9%
Other assets less liabilities (including futures and forward foreign
currency contracts) ................................................ 5.1
----
Net Assets........................................................... 100%
====
--------
* Calculated as a percentage of net assets
@ Consolidated (see Note 2).
+ See Note 1
34
SunAmerica Specialty Series -- AIG Global Trends Fund+
CONSOLIDATED PORTFOLIO OF INVESTMENTS -- April 30, 2017@ -- (unaudited)
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 94.9%
Bank of America Securities LLC Joint Repurchase
Agreement(1).................................... $4,555,000 $4,555,000
Bank of America Securities LLC Joint Repurchase
Agreement(1)(2)................................. 1,180,000 1,180,000
Barclays Capital, Inc. Joint Repurchase
Agreement(1).................................... 4,555,000 4,555,000
Barclays Capital, Inc. Joint Repurchase
Agreement(1)(2)................................. 1,180,000 1,180,000
BNP Paribas SA Joint Repurchase
Agreement(1).................................... 7,750,000 7,750,000
BNP Paribas SA Joint Repurchase
Agreement(1)(2)................................. 2,020,000 2,020,000
Deutsche Bank AG Joint Repurchase
Agreement(1).................................... 3,700,000 3,700,000
Deutsche Bank AG Joint Repurchase
Agreement(1)(2)................................. 960,000 960,000
Principal Value
Security Description Amount (Note 3)
----------------------------------------------------------------
REPURCHASE AGREEMENTS (continued)
RBS Securities, Inc. Joint Repurchase
Agreement(1).......................... $6,815,000 $ 6,815,000
RBS Securities, Inc. Joint Repurchase
Agreement(1)(2)....................... 1,770,000 1,770,000
-----------
Total Repurchase Agreements
(cost $ 34,485,000)................... 34,485,000
-----------
TOTAL INVESTMENTS
(cost $ 34,485,000)(3)................ 94.9% 34,485,000
Other assets less liabilities............ 5.1 1,856,259
---------- -----------
NET ASSETS 100.0% $36,341,259
========== ===========
--------
@ Consolidated (see Note 2).
+ See Note 1
(1)See Note 3 for details of Joint Repurchase Agreements.
(2)The security is owned by the AIG Global Trends Cayman Fund Ltd. which is a
wholly-owned subsidiary of the SunAmerica Global Trends Fund.
(3)See Note 6 for cost of investments on a tax basis.
Futures Contracts
-------------------------------------------------------------------------------------------------
Value as Unrealized
Number of Value at of April 30, Appreciation
Contracts Type Description Expiration Month Trade Date 2017 (Depreciation)
--------- ---- ----------------------- ---------------- ---------- ------------ --------------
37 Long Copper Future(a) July 2017 $2,364,175 $2,411,938 $ 47,763
13 Long DAX Index June 2017 4,413,175 4,413,774 599
44 Long FTSE 100 Index June 2017 4,082,902 4,083,245 343
19 Long HANG SENG Index May 2017 2,986,687 2,999,730 13,043
45 Long KOSPI 200 Index June 2017 2,802,081 2,846,362 44,281
33 Long Nikkei 225 Index June 2017 5,614,174 5,683,786 69,612
49 Long Russell 2000 Mini Index June 2017 3,426,155 3,426,080 (75)
31 Long S&P 500 E-Mini Index June 2017 3,694,525 3,689,775 (4,750)
14 Long US Treasury 10 years Notes June 2017 1,755,188 1,760,063 4,875
11 Long US Treasury Long Bonds June 2017 1,678,437 1,682,656 4,219
--------
$179,910
========
--------
(a)The security is owned by the AIG Global Trends Cayman Fund Ltd., which is a
wholly-owned subsidiary of the AIG Global Trends Fund.
Forward Foreign Currency Contracts
--------------------------------------------------------------------------------------------------------------------
Delivery Unrealized Unrealized
Counterparty Contract to Deliver In Exchange For Date Appreciation Depreciation
------------------------------------------- ------------------- --------------- ---------- ------------ ------------
Morgan Stanley & Co. International PLC USD 2,428,868 BRL 7,606,000 05/03/2017 $ -- $(32,560)
BRL 7,606,000 USD 2,378,064 05/03/2017 -- (18,244)
------- --------
-- 50,804
------- --------
State Street Bank and Trust Co. BRL 7,606,000 USD 2,446,446 05/03/2017 50,138 --
USD 2,378,064 BRL 7,606,000 05/03/2017 18,244 --
------- --------
68,382 --
------- --------
Net Unrealized Appreciation/(Depreciation) $68,382 $(50,804)
======= ========
BRL -- Brazillian Real
USD -- United States Dollar
35
SunAmerica Specialty Series -- AIG Global Trends Fund+
CONSOLIDATED PORTFOLIO OF INVESTMENTS -- April 30, 2017@ -- (unaudited)
(continued)
The following is a summary of the inputs used to value the Fund's net assets as
of April 30, 2017 (see Note 3):
Level 1 -- Unadjusted Level 2 -- Other Level 3 -- Significant
Quoted Prices Observable Inputs Unobservable Inputs Total
--------------------- ----------------- ---------------------- -----------
ASSETS:
Investments at Value:*
Repurchase Agreements.............. $ -- $34,485,000 $-- $34,485,000
-------- ----------- --- -----------
Total Investments at Value......... $ -- $34,485,000 $-- $34,485,000
======== =========== === ===========
Other Financial Instruments:+
Futures Contracts.................. $184,735 $ -- $-- $ 184,735
Forward Foreign Currency Contracts. -- 68,382 -- 68,382
-------- ----------- --- -----------
Total Other Financial Instruments.. $184,735 $ 68,382 $-- $ 253,117
======== =========== === ===========
LIABILITIES:
Other Financial Instruments:+
Futures Contracts.................. $ 4,825 $ -- $ 4,825
Forward Foreign Currency Contracts. -- 50,804 $-- 50,804
-------- ----------- --- -----------
Total Other Financial Instruments.. $ 4,825 $ 50,804 $-- $ 55,629
======== =========== === ===========
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
+ Other financial instruments are derivative instruments not reflected in the
Portfolio of Investments, such as futures, forward, swap and written option
contracts, which are valued at the unrealized appreciation (depreciation) on
the instrument.
@ Consolidated (see Note 2).
+ See Note 1
The Fund's policy is to recognize transfers between Levels as of the end of the
reporting period. There were no transfers between Levels during the reporting
period.
See Notes to Financial Statements
36
SunAmerica Specialty Series -- AIG Income Explorer Fund+
PORTFOLIO PROFILE -- April 30, 2017 -- (unaudited)
Industry Allocation*
Domestic Fixed Income Investment
Companies.............................. 22.5%
International Fixed Income Investment
Companies.............................. 7.7
Domestic Equity Investment Companies.... 7.4
Diversified Banking Institutions........ 7.1
Banks-Commercial........................ 3.3
Time Deposits........................... 3.0
Insurance-Multi-line.................... 2.8
Real Estate Investment Trusts........... 2.5
Insurance-Life/Health................... 2.5
Electric-Integrated..................... 2.4
Banks-Super Regional.................... 2.3
Food-Retail............................. 2.0
Human Resources......................... 1.9
Domestic Mixed Allocation Investment
Companies.............................. 1.6
Chemicals-Diversified................... 1.5
Building-Residential/Commercial......... 1.3
Electronic Components-Misc.............. 1.2
Computers............................... 1.1
Retail-Apparel/Shoe..................... 1.1
Insurance-Property/Casualty............. 1.1
Finance-Other Services.................. 1.1
Metal-Diversified....................... 1.0
Oil Refining & Marketing................ 1.0
Banks-Money Center...................... 1.0
Pipelines............................... 1.0
Cellular Telecom........................ 0.9
Computers-Memory Devices................ 0.8
Sovereign Agency........................ 0.8
Diversified Manufacturing Operations.... 0.7
Repurchase Agreements................... 0.7
Diversified Minerals.................... 0.7
Investment Management/Advisor Services.. 0.7
Multimedia.............................. 0.7
Explosives.............................. 0.6
Telecom Services........................ 0.6
Circuit Boards.......................... 0.6
Metal Processors & Fabrication.......... 0.5
Food-Wholesale/Distribution............. 0.5
Real Estate Operations & Development.... 0.5
Agricultural Chemicals.................. 0.5
Insurance-Reinsurance................... 0.5
Aerospace/Defense....................... 0.5
Oil Companies-Integrated................ 0.5
Electric-Generation..................... 0.5
Retail-Office Supplies.................. 0.5
Airlines................................ 0.5
Auto-Cars/Light Trucks.................. 0.5
Miscellaneous Manufacturing............. 0.5
Diversified Financial Services.......... 0.5
Semiconductor Components-Integrated
Circuits............................... 0.4
Telephone-Integrated.................... 0.4
Retail-Regional Department Stores....... 0.4
Networking Products..................... 0.4
Food-Dairy Products..................... 0.4
Private Equity.......................... 0.3
Agricultural Operations................. 0.3
Insurance-Mutual........................ 0.3
Savings & Loans/Thrifts................. 0.3
Banks-Fiduciary......................... 0.2
E-Commerce/Products..................... 0.1
Banks-Special Purpose................... 0.1
-----
Total Investments....................... 99.3
Other assets less liabilities........... 0.7
-----
Net Assets.............................. 100.0%
=====
--------
* Calculated as a percentage of net assets
+ See Note1
37
SunAmerica Specialty Series -- AIG Income Explorer Fund+
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited)
Value
Security Description Shares (Note 3)
---------------------------------------------------------
COMMON STOCKS -- 26.1%
Aerospace/Defense -- 0.5%
BAE Systems PLC....................... 19,469 $158,106
--------
Agricultural Chemicals -- 0.5%
Yara International ASA................ 4,345 161,533
--------
Airlines -- 0.5%
easyJet PLC........................... 9,827 148,662
--------
Auto-Cars/Light Trucks -- 0.5%
Subaru Corp........................... 3,900 147,359
--------
Building-Residential/Commercial -- 1.3%
Berkeley Group Holdings PLC........... 4,459 188,159
Persimmon PLC......................... 7,790 235,088
--------
423,247
--------
Cellular Telecom -- 0.9%
Advanced Info Service PCL............. 30,000 151,778
MTN Group, Ltd........................ 13,987 132,400
--------
284,178
--------
Chemicals-Diversified -- 1.5%
Evonik Industries AG.................. 4,650 155,275
K+S AG................................ 6,774 161,635
LyondellBasell Industries NV, Class A. 1,878 159,179
--------
476,089
--------
Circuit Boards -- 0.6%
Zhen Ding Technology Holding, Ltd..... 75,000 175,500
--------
Computers -- 1.1%
HP, Inc............................... 10,990 206,832
Lenovo Group, Ltd..................... 248,000 158,779
--------
365,611
--------
Computers-Memory Devices -- 0.8%
Western Digital Corp.................. 2,982 265,607
--------
Diversified Financial Services -- 0.5%
China Galaxy Securities Co., Ltd...... 160,000 146,046
--------
Electric-Generation -- 0.5%
Huaneng Power International, Inc...... 222,000 153,264
--------
Electronic Components-Misc. -- 1.2%
Hon Hai Precision Industry Co., Ltd... 56,420 184,757
Pegatron Corp......................... 63,000 185,632
--------
370,389
--------
Explosives -- 0.6%
Orica, Ltd............................ 14,375 199,457
--------
Finance-Other Services -- 1.0%
ASX, Ltd.............................. 3,921 148,916
Japan Exchange Group, Inc............. 11,500 161,036
--------
309,952
--------
Food-Retail -- 2.0%
Casino Guichard Perrachon SA.......... 2,510 151,198
METRO AG.............................. 4,540 149,401
Wesfarmers, Ltd....................... 4,561 146,857
Woolworths, Ltd....................... 8,790 176,923
--------
624,379
--------
+ See Note 1
Value
Security Description Shares (Note 3)
------------------------------------------------------------------
Food-Wholesale/Distribution -- 0.5%
Bidvest Group, Ltd........................... 13,851 $ 165,326
----------
Human Resources -- 1.9%
Adecco Group AG.............................. 2,825 209,817
Capita PLC................................... 26,325 189,574
Randstad Holding NV.......................... 3,650 217,524
----------
616,915
----------
Insurance-Multi-line -- 1.2%
BB Seguridade Participacoes SA............... 16,574 156,077
Mapfre SA.................................... 63,953 223,204
----------
379,281
----------
Investment Management/Advisor Services -- 0.4%
Aberdeen Asset Management PLC................ 37,791 136,562
----------
Metal Processors & Fabrication -- 0.5%
Catcher Technology Co., Ltd.................. 17,000 174,671
----------
Metal-Diversified -- 1.0%
MMC Norilsk Nickel PJSC ADR.................. 9,790 150,619
Rio Tinto, Ltd............................... 3,797 171,843
----------
322,462
----------
Miscellaneous Manufacturing -- 0.5%
CRRC Corp., Ltd.............................. 150,900 147,246
----------
Multimedia -- 0.5%
Vivendi SA................................... 7,237 143,594
----------
Networking Products -- 0.4%
Telefonaktiebolaget LM Ericsson, Class B..... 18,200 117,329
----------
Oil Companies-Integrated -- 0.5%
Lukoil PJSC ADR.............................. 3,153 156,594
----------
Oil Refining & Marketing -- 1.0%
HollyFrontier Corp........................... 5,855 164,760
Tupras Turkiye Petrol Rafinerileri AS........ 6,200 156,224
----------
320,984
----------
Real Estate Operations & Development -- 0.5%
China Vanke Co., Ltd......................... 63,800 161,912
----------
Retail-Apparel/Shoe -- 1.1%
Gap, Inc..................................... 6,408 167,889
HUGO BOSS AG................................. 2,582 196,402
----------
364,291
----------
Retail-Office Supplies -- 0.5%
Staples, Inc................................. 15,559 152,011
----------
Retail-Regional Department Stores -- 0.4%
Macy's, Inc.................................. 4,087 119,422
----------
Semiconductor Components-Integrated Circuits -- 0.4%
Novatek Microelectronics Corp................ 36,000 138,411
----------
Telecom Services -- 0.4%
Telenor ASA.................................. 8,274 133,756
----------
Telephone-Integrated -- 0.4%
CenturyLink, Inc............................. 4,677 120,058
----------
Total Common Stocks
(cost $7,341,897)........................... 8,280,204
----------
38
SunAmerica Specialty Series -- AIG Income Explorer Fund+
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
---------------------------------------------------------
PREFERRED SECURITIES -- 10.5%
Agricultural Operations -- 0.3%
CHS, Inc.
Series 4
7.50%................................. 3,456 $ 99,879
--------
Banks-Commercial -- 0.4%
Barclays Bank PLC
Series 5
8.13%................................. 1,150 30,049
CoBank ACB FRS
Series F
6.25%................................. 500 52,375
Regions Financial Corp. FRS
Series B
6.38%................................. 1,391 39,157
--------
121,581
--------
Banks-Money Center -- 0.2%
National Westminster Bank PLC
Series C
7.76%................................. 1,924 50,505
--------
Banks-Special Purpose -- 0.1%
AgriBank FCB FRS
6.88%................................. 250 27,781
--------
Banks-Super Regional -- 0.7%
Capital One Financial Corp.
Series G
5.20%................................. 2,000 46,980
Huntington Bancshares, Inc.
Series D
6.25%................................. 1,393 37,750
Wells Fargo & Co.
Series Y
5.63%................................. 2,000 49,980
Wells Fargo & Co.
Series W
5.70%................................. 1,544 39,279
Wells Fargo & Co. FRS
5.85%................................. 1,975 53,523
--------
227,512
--------
Diversified Banking Institutions -- 1.8%
Bank of America Corp.
Series EE
6.00%................................. 1,563 40,435
Bank of America Corp.
Series CC
6.20%................................. 2,000 52,000
Bank of America Corp.
Series Y
6.50%................................. 911 24,506
Citigroup, Inc.
Series S
6.30%................................. 1,583 42,329
Citigroup, Inc. FRS
Series J
7.13%................................. 2,395 70,198
GMAC Capital Trust I VRS
Series 2
6.82%................................. 5,000 127,300
+ See Note 1
Value
Security Description Shares (Note 3)
-------------------------------------------------------------
Diversified Banking Institutions (continued)
JPMorgan Chase & Co.
Series Y
6.13%..................................... 1,326 $ 35,563
Morgan Stanley FRS
Series K
5.85%..................................... 2,825 74,524
Morgan Stanley FRS
Series I
6.38%..................................... 2,372 65,870
Morgan Stanley FRS
Series F
6.88%..................................... 1,594 46,226
--------
578,951
--------
E-Commerce/Products -- 0.1%
eBay, Inc.
6.00%..................................... 1,699 45,041
--------
Electric-Integrated -- 0.9%
Dominion Resources, Inc.
Series A
5.25%..................................... 1,094 26,891
DTE Energy Co
Series B
5.38%..................................... 999 24,845
Integrys Holding, Inc. FRS
6.00%..................................... 3,928 102,128
NextEra Energy Capital Holdings, Inc.
Series K
5.25%..................................... 1,200 29,508
SCE Trust IV FRS
Series J
5.38%..................................... 1,000 27,730
Southern Co.
6.25%..................................... 2,794 74,013
--------
285,115
--------
Food-Dairy Products -- 0.2%
Dairy Farmers of America, Inc.
7.88%*.................................... 500 53,500
--------
Insurance-Multi-line -- 0.3%
Aegon NV
6.50%..................................... 2,610 67,938
American Financial Group, Inc.
6.25%..................................... 1,053 28,115
--------
96,053
--------
Insurance-Property/Casualty -- 0.4%
Arch Capital Group, Ltd.
Series E
5.25%..................................... 2,925 67,567
Hanover Insurance Group, Inc.
6.35%..................................... 1,022 25,857
WR Berkley Corp.
5.75%..................................... 1,875 47,325
--------
140,749
--------
Insurance-Reinsurance -- 0.5%
Aspen Insurance Holdings, Ltd.
5.63%..................................... 850 20,740
39
SunAmerica Specialty Series -- AIG Income Explorer Fund+
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
---------------------------------------------------------------
PREFERRED SECURITIES (continued)
Insurance-Reinsurance (continued)
Axis Capital Holdings, Ltd.
Series E
5.50%....................................... 2,800 $ 67,816
Reinsurance Group of America, Inc. FRS
5.75%....................................... 1,100 30,635
Validus Holdings, Ltd.
Series A
5.88........................................ 1,700 42,330
--------
161,521
--------
Investment Management/Advisor Services -- 0.3%
Ares Management LP
Series A
7.00%....................................... 3,300 86,460
--------
Pipelines -- 0.2%
NuStar Energy LP FRS
Series B
7.63%....................................... 1,900 48,165
--------
Private Equity -- 0.3%
KKR & Co. LP
Series B
6.50%....................................... 4,000 104,200
--------
Real Estate Investment Trusts -- 2.5%
American Homes 4 Rent
Series C
5.50%(1).................................... 1,040 29,224
American Homes 4 Rent
Series E
6.35%....................................... 2,500 64,625
Chesapeake Lodging Trust
Series A
7.75%....................................... 1,000 25,450
Colony NorthStar, Inc.
Series E
8.75%....................................... 2,572 68,364
CoreSite Realty Corp.
Series A
7.25%....................................... 1,400 35,966
DDR Corp.
Series J
6.50%....................................... 1,000 25,150
Monmouth Real Estate Investment Corp.
Series C
6.13%....................................... 2,000 50,320
National Retail Properties, Inc.
Series F
5.20%....................................... 1,975 47,696
Pennsylvania Real Estate Investment Trust
Series A
8.25%....................................... 1,750 44,537
Retail Properties of America, Inc.
Series A
7.00%....................................... 1,000 26,250
Rexford Industrial Realty, Inc.
Series A
5.88%....................................... 1,000 25,001
+ See Note 1
Shares/
Principal Value
Security Description Amount (Note 3)
---------------------------------------------------------------
Real Estate Investment Trusts (continued)
Sabra Health Care REIT, Inc.
Series A
7.13%.................................. 2,500 $ 64,775
Saul Centers, Inc.
Series C
6.88%.................................. 820 20,869
Summit Hotel Properties, Inc.
Series B
7.88%.................................. 1,300 33,540
Taubman Centers, Inc.
Series K
6.25%.................................. 2,160 54,821
Urstadt Biddle Properties, Inc.
Series F
7.13%.................................. 1,600 40,704
Ventas Realty LP/Ventas Capital Corp.
5.45%.................................. 1,665 41,492
VEREIT, Inc.
Series F
6.70%.................................. 3,929 101,093
----------
799,877
----------
Savings & Loans/Thrifts -- 0.3%
New York Community Bancorp, Inc. FRS
Series A
6.38%.................................. 3,425 93,845
----------
Sovereign Agency -- 0.8%
Farm Credit Bank of Texas FRS
6.75%.................................. 1,200 130,125
Farm Credit Bank of Texas
10.00%................................. 100 122,750
----------
252,875
----------
Telecom Services -- 0.2%
Qwest Corp.
6.75%.................................. 1,850 46,102
----------
Total Preferred Securities
(cost $3,124,665)...................... 3,319,712
----------
PREFERRED SECURITIES/CAPITAL SECURITIES -- 19.6%
Banks-Commercial -- 2.9%
CoBank ACB FRS
Series I
6.25% due 10/01/2026(2)................ $106,000 115,546
DNB Bank ASA VRS
6.50% due 03/26/2022(2)................ 200,000 213,008
Macquarie Bank, Ltd. VRS
6.13% due 03/08/2027*(2)............... 200,000 203,600
Rabobank Nederland FRS
11.00% due 06/30/2019*(2).............. 150,000 175,125
Swedbank AB VRS
6.00% due 03/17/2022(2)................ 200,000 208,500
----------
915,779
----------
Banks-Fiduciary -- 0.2%
State Street Corp. FRS
Series F
5.25% due 09/15/2020(2)................ 50,000 52,500
----------
40
SunAmerica Specialty Series -- AIG Income Explorer Fund+
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------
PREFERRED SECURITIES/CAPITAL SECURITIES (continued)
Banks-Money Center -- 0.8%
Dresdner Funding Trust I
8.15% due 06/30/2031*.................. $100,000 $118,750
HSBC Capital Funding Dollar 1 LP FRS
10.18% due 06/30/2030*(2).............. 95,000 145,825
--------
264,575
--------
Banks-Super Regional -- 1.6%
PNC Financial Services Group, Inc. FRS
6.75% due 08/01/2021(2)................ 175,000 197,531
US Bancorp FRS
5.13% due 01/15/2021(2)................ 30,000 31,688
Wells Fargo & Co. FRS
Series U
5.88% due 06/15/2025(2)................ 85,000 92,225
Wells Fargo & Co. FRS
Series K
7.98% due 03/15/2018(2)................ 110,000 115,087
Wells Fargo Capital X
5.95% due 12/01/2086................... 60,000 64,800
--------
501,331
--------
Diversified Banking Institutions -- 5.3%
Bank of America Corp. FRS
Series X
6.25% due 09/05/2024(2)................ 46,000 49,340
Bank of America Corp. FRS
6.30% due 03/10/2026(2)................ 35,000 38,544
Bank of America Corp. FRS
Series Z
6.50% due 10/23/2024(2)................ 95,000 105,569
Citigroup, Inc. FRS
6.13% due 11/15/2020(2)................ 45,000 47,950
Citigroup, Inc. FRS
Series T
6.25% due 08/15/2026(2)................ 56,000 60,970
Credit Agricole SA VRS
8.13% due 12/23/2025*(2)............... 200,000 220,724
Goldman Sachs Capital I
6.35% due 02/15/2034................... 21,000 25,128
Goldman Sachs Group, Inc. FRS
Series L
5.70% due 05/10/2019(2)................ 95,000 98,087
HSBC Holdings PLC VRS
6.88% due 06/01/2021(2)................ 200,000 216,600
JPMorgan Chase & Co. FRS
Series Z
5.30% due 05/01/2020(2)................ 25,000 26,064
JPMorgan Chase & Co. FRS
Series S
6.75% due 02/01/2024(2)................ 150,000 169,200
JPMorgan Chase & Co. FRS
Series 1
7.90% due 04/30/2018(2)................ 155,000 161,975
Royal Bank of Scotland Group PLC FRS
7.65% due 09/30/2031(2)................ 35,000 41,475
Royal Bank of Scotland Group PLC VRS
8.63% due 08/15/2021(2)................ 200,000 215,900
+ See Note 1
Principal Value
Security Description Amount (Note 3)
------------------------------------------------------------------------------
Diversified Banking Institutions (continued)
UBS Group AG VRS
7.13% due 02/19/2020(2)................................ $200,000 $ 212,250
----------
1,689,776
----------
Diversified Manufacturing Operations -- 0.7%
General Electric Co. FRS
Series D
5.00% due 01/21/2021(2)................................ 221,000 233,100
----------
Diversified Minerals -- 0.7%
BHP Billiton Finance USA, Ltd. VRS
6.75% due 10/19/2075*.................................. 200,000 226,500
----------
Electric-Integrated -- 1.5%
Emera, Inc. FRS
6.75% due 06/15/2076................................... 203,000 223,554
Enel SpA VRS
8.75% due 09/24/2073*.................................. 200,000 234,000
----------
457,554
----------
Finance-Other Services -- 0.1%
National Rural Utilities Cooperative Finance Corp. FRS
5.25% due 04/20/2046................................... 36,000 37,503
----------
Insurance-Life/Health -- 2.5%
Dai-ichi Life Insurance Co., Ltd. FRS
7.25% due 07/25/2021*(2)............................... 100,000 114,500
Fukoku Mutual Life Insurance Co. FRS
5.00% due 07/28/2025(2)................................ 200,000 205,174
Nippon Life Insurance Co. VRS
4.70% due 01/20/2046*.................................. 200,000 207,500
Prudential Financial, Inc. FRS
5.20% due 03/15/2044................................... 50,000 52,000
Prudential Financial, Inc. FRS
5.63% due 06/15/2043................................... 167,000 182,239
Prudential Financial, Inc. FRS
8.88% due 06/15/2068................................... 35,000 37,350
----------
798,763
----------
Insurance-Multi-line -- 1.3%
MetLife Capital Trust IV
7.88% due 12/15/2067*.................................. 100,000 127,550
MetLife, Inc. FRS
5.25% due 06/15/2020(2)................................ 57,000 59,194
MetLife, Inc.
9.25% due 04/08/2038*.................................. 100,000 143,875
MetLife, Inc.
10.75% due 08/01/2069.................................. 18,000 28,800
Voya Financial, Inc. FRS
5.65% due 05/15/2053................................... 50,000 51,625
----------
411,044
----------
Insurance-Mutual -- 0.3%
Liberty Mutual Group, Inc.
7.80% due 03/07/2087*.................................. 85,000 98,387
----------
Insurance-Property/Casualty -- 0.7%
QBE Insurance Group, Ltd. VRS
6.75% due 12/02/2044................................... 200,000 220,192
----------
41
SunAmerica Specialty Series -- AIG Income Explorer Fund+
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Shares/
Principal Value
Security Description Amount (Note 3)
-----------------------------------------------------------------------
PREFERRED SECURITIES/CAPITAL SECURITIES (continued)
Multimedia -- 0.2%
Viacom, Inc. FRS
5.88% due 02/28/2057............................ $ 60,000 $ 61,950
----------
Pipelines -- 0.8%
TransCanada Trust FRS
5.30% due 03/15/2077............................ 45,000 45,394
TransCanada Trust FRS
5.63% due 05/20/2075............................ 50,000 52,250
TransCanada Trust FRS
5.88% due 08/15/2076............................ 153,000 164,475
----------
262,119
----------
Total Preferred Securities/Capital Securities
(cost $5,954,886)............................... 6,231,073
----------
REGISTERED INVESTMENT COMPANIES -- 39.2%
Domestic Equity Investment Companies -- 7.4%
Eaton Vance Tax-Advantaged Dividend Income
Fund............................................ 24,907 542,972
Eaton Vance Tax-Managed Diversified Equity
Income Fund..................................... 44,974 507,307
First Trust Energy Income and Growth Fund........ 2,856 77,769
Gabelli Dividend & Income Trust.................. 20,460 439,481
Gabelli Equity Trust, Inc........................ 35,883 220,680
John Hancock Tax-Advantaged Dividend Income
Fund............................................ 19,607 511,939
Tortoise Energy Infrastructure Corp.............. 1,725 60,358
----------
2,360,506
----------
Domestic Fixed Income Investment Companies -- 22.5%
AllianzGI Convertible & Income Fund.............. 43,499 302,753
AllianzGI Convertible & Income Fund II........... 58,828 360,027
BlackRock Corporate High Yield Fund, Inc......... 18,335 206,636
BlackRock Floating Rate Income Strategies Fund,
Inc............................................. 2,380 34,391
BlackRock Limited Duration Income Trust.......... 7,420 116,568
BlackRock MuniHoldings Investment Quality
Fund............................................ 738 10,738
BlackRock Taxable Municipal Bond Trust........... 4,710 106,729
Calamos Convertible and High Income Fund......... 27,790 323,754
DoubleLine Income Solutions Fund................. 21,540 443,293
Eaton Vance Limited Duration Income Fund......... 14,921 210,685
Eaton Vance Senior Floating-Rate Trust........... 5,787 86,342
Eaton Vance Senior Income Trust.................. 9,353 64,255
Flaherty & Crumrine Preferred Securities Income
Fund, Inc....................................... 8,298 173,096
Flaherty & Crumrine Total Return Fund, Inc....... 7,799 167,211
Franklin Limited Duration Income Trust........... 7,899 94,472
Guggenheim Taxable Municipal Managed Duration
Trust........................................... 4,487 102,887
Invesco Dynamic Credit Opportunities Fund........ 9,044 111,151
John Hancock Preferred Income Fund............... 10,020 220,640
MFS Multimarket Income Trust..................... 21,714 134,410
New America High Income Fund, Inc................ 27,010 257,135
Nuveen AMT-Free Quality Municipal Income
Fund............................................ 777 10,521
Nuveen Credit Strategies Income Fund............. 54,417 482,135
Nuveen Floating Rate Income Fund................. 7,183 83,897
Nuveen Floating Rate Income Opportunity Fund..... 10,848 129,417
+ See Note 1
Shares/
Principal Value
Security Description Amount (Note 3)
-----------------------------------------------------------------------
Domestic Fixed Income Investment Companies (continued)
Nuveen Mortgage Opportunity Term Fund........... 1,521 $ 37,949
Nuveen Municipal Credit Income Fund............. 724 10,650
Nuveen Preferred Income Opportunities Fund...... 41,709 423,346
Nuveen Short Duration Credit Opportunities
Fund........................................... 11,835 214,805
PIMCO Corporate & Income Opportunity Fund....... 18,930 303,827
PIMCO Dynamic Credit and Mortgage Income
Fund........................................... 24,196 529,892
PIMCO Income Strategy Fund II................... 49,335 511,604
PIMCO Municipal Income Fund II.................. 842 10,811
Pioneer Floating Rate Trust..................... 14,589 180,028
Pioneer High Income Trust....................... 17,541 175,059
Wells Fargo Income Opportunities Fund........... 22,011 190,175
Western Asset Global Corporate Defined
Opportunity Fund, Inc.......................... 9,009 160,360
Western Asset High Yield Defined Opportunity
Fund, Inc...................................... 9,928 154,380
-----------
7,136,029
-----------
Domestic Mixed Allocation Investment Companies -- 1.6%
Clough Global Opportunities Fund................ 4,442 47,307
Flaherty & Crumrine Dynamic Preferred and
Income Fund, Inc............................... 18,173 461,049
-----------
508,356
-----------
International Fixed Income Investment Companies -- 7.7%
AllianceBernstein Global High Income Fund,
Inc............................................ 14,615 187,803
First Trust Aberdeen Global Opportunity Income
Fund........................................... 13,782 162,352
Legg Mason BW Global Income Opportunities
Fund, Inc...................................... 22,807 296,947
Nuveen Preferred & Income Term Fund............. 13,865 346,486
PIMCO Dynamic Income Fund....................... 17,123 500,334
PIMCO Income Opportunity Fund................... 19,766 509,568
Stone Harbor Emerging Markets Income Fund....... 3,534 58,028
Wells Fargo Multi-Sector Income Fund............ 17,489 238,025
Western Asset Global High Income Fund, Inc...... 15,580 160,007
-----------
2,459,550
-----------
Total Registered Investment Companies
(cost $12,464,624)............................. 12,464,441
-----------
U.S. CORPORATE BONDS & NOTES -- 0.2%
Food-Dairy Products -- 0.2%
Land O' Lakes, Inc.
Junior Sub. Notes
7.25% due 04/04/2027*(2)
(cost $50,000)................................. $ 50,000 50,625
-----------
Total Long-Term Investment Securities
(cost $28,936,072)............................. 30,346,055
-----------
SHORT-TERM INVESTMENT SECURITIES -- 3.0%
Time Deposits -- 3.0%
Euro Time Deposit with State Street Bank and
Trust Co.
0.09% due 05/01/2017
(cost $962,000)................................ 962,000 962,000
-----------
42
SunAmerica Specialty Series -- AIG Income Explorer Fund+
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 3)
-------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 0.7%
Agreement with Fixed Income Clearing Corp.,
bearing interest at 0.09%, dated 04/28/2017, to
be repurchased 05/01/2017 in the amount of
$227,002 and collateralized by $230,000 of
United States Treasury Bonds, bearing interest
at 3.00%, due 11/15/2044 and having an
approximate value of $234,682
(cost $227,000).................................. $227,000 $ 227,000
-----------
TOTAL INVESTMENTS
(cost $30,125,072)(3)............................ 99.3% 31,535,055
Other assets less liabilities....................... 0.7 221,167
-------- -----------
NET ASSETS 100.0% $31,756,222
======== ===========
--------
* Securities exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be sold in transactions exempt from registration,
normally to qualified institutional buyers. The Fund has no right to demand
registration of these securities. At April 30, 2017, the aggregate value of
these securities was $2,120,461 representing 6.7% of net assets. Unless
otherwise indicated, these securities are not considered to be illiquid.
+ See Note 1
(1)"Step-up" security where the rate increases ("steps-up") at a predetermined
rate. The rate reflected is as of April 30, 2017.
(2)Perpetual maturity -- maturity date reflects the next call date.
(3)See Note 6 for cost of investments on a tax basis.
ADR-- American Depositary Receipt
FRS-- Floating Rate Security
VRS-- Variable Rate Security
The rates shown on FRS and VRS are the current interest rates at April 30, 2017
and unless noted otherwise, the dates shown are the original maturity dates.
The following is a summary of the inputs used to value the Fund's net assets as
of April 30, 2017 (see Note 3):
Level 1 -- Unadjusted Level 2 -- Other Level 3 -- Significant
Quoted Prices Observable Inputs Unobservable Inputs Total
--------------------- ----------------- ---------------------- -----------
ASSETS:
Investments at Value:*
Common Stocks........................... $ 8,280,204 $ -- $-- $ 8,280,204
Preferred Securities:
Banks-Commercial...................... 69,206 52,375 -- 121,581
Banks-Special Purpose................. -- 27,781 -- 27,781
Electric-Integrated................... 182,987 102,128 -- 285,115
Food-Dairy Products................... -- 53,500 -- 53,500
Sovereign Agency...................... -- 252,875 -- 252,875
Other industries...................... 2,578,860 -- -- 2,578,860
Preferred Securities/Capital Securities. -- 6,231,073 -- 6,231,073
Registered Investment Companies......... 12,464,441 -- -- 12,464,441
U.S. Corporate Bonds & Notes............ -- 50,625 -- 50,625
Short-Term Investment Securities........ -- 962,000 -- 962,000
Repurchase Agreements................... -- 227,000 -- 227,000
----------- ---------- --- -----------
Total Investments at Value.............. $23,575,698 $7,959,357 $-- $31,535,055
=========== ========== === ===========
--------
* 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.
See Notes to Financial Statements
43
SunAmerica Specialty Series -- AIG Small-Cap Fund+
PORTFOLIO PROFILE -- April 30, 2017 -- (unaudited)
Industry Allocation*
Banks-Commercial............................. 6.5%
Real Estate Investment Trusts................ 4.3
Medical-Drugs................................ 3.2
Medical-Biomedical/Gene...................... 2.7
Retail-Restaurants........................... 2.2
Exchange-Traded Funds........................ 2.1
Auto/Truck Parts & Equipment-Replacement..... 1.9
Networking Products.......................... 1.9
Savings & Loans/Thrifts...................... 1.7
Insurance-Property/Casualty.................. 1.7
Metal Processors & Fabrication............... 1.7
Commercial Services.......................... 1.6
Human Resources.............................. 1.6
Electronic Components-Semiconductors......... 1.5
Building-Mobile Home/Manufactured Housing.... 1.4
Computer Software............................ 1.3
Internet Telephone........................... 1.3
Web Portals/ISP.............................. 1.3
Computer Services............................ 1.3
Investment Management/Advisor Services....... 1.3
Consulting Services.......................... 1.2
Building & Construction Products-Misc........ 1.2
Diversified Manufacturing Operations......... 1.1
Telecom Services............................. 1.1
Diagnostic Equipment......................... 1.1
Chemicals-Specialty.......................... 1.1
Hazardous Waste Disposal..................... 1.1
Paper & Related Products..................... 1.1
Time Deposits................................ 1.1
Electronic Components-Misc................... 1.0
Wireless Equipment........................... 1.0
Semiconductor Equipment...................... 1.0
Commercial Services-Finance.................. 0.9
Oil Companies-Exploration & Production....... 0.9
Enterprise Software/Service.................. 0.9
Medical Products............................. 0.8
Therapeutics................................. 0.8
Building-Residential/Commercial.............. 0.8
Machinery-General Industrial................. 0.8
Diagnostic Kits.............................. 0.8
Insurance-Life/Health........................ 0.8
Veterinary Diagnostics....................... 0.8
Applications Software........................ 0.8
Power Converter/Supply Equipment............. 0.8
Food-Wholesale/Distribution.................. 0.8
Retail-Home Furnishings...................... 0.7
Medical-Outpatient/Home Medical.............. 0.7
Engineering/R&D Services..................... 0.7
Wire & Cable Products........................ 0.7
Electric-Integrated.......................... 0.7
Insurance-Reinsurance........................ 0.7
Computers-Periphery Equipment................ 0.7
Respiratory Products......................... 0.7
Transport-Truck.............................. 0.7
Beverages-Wine/Spirits....................... 0.6
Transport-Services........................... 0.6
Internet Connectivity Services............... 0.6
Auto-Heavy Duty Trucks....................... 0.6
Funeral Services & Related Items............. 0.6
Metal Products-Distribution.................. 0.6
+ See Note1
Telecom Equipment-Fiber Optics................ 0.6%
Protection/Safety............................. 0.6
Gas-Distribution.............................. 0.5
Computer Aided Design......................... 0.5
Electronic Security Devices................... 0.5
MRI/Medical Diagnostic Imaging................ 0.5
Computers-Integrated Systems.................. 0.5
Chemicals-Diversified......................... 0.5
Medical Imaging Systems....................... 0.5
Insurance Brokers............................. 0.4
Repurchase Agreements......................... 0.4
Retail-Apparel/Shoe........................... 0.4
Medical Instruments........................... 0.4
Athletic Equipment............................ 0.4
Auto/Truck Parts & Equipment-Original......... 0.4
E-Commerce/Products........................... 0.3
Aerospace/Defense-Equipment................... 0.3
Medical-Generic Drugs......................... 0.3
Food-Misc./Diversified........................ 0.3
Finance-Investment Banker/Broker.............. 0.3
Communications Software....................... 0.3
Food-Dairy Products........................... 0.3
Distribution/Wholesale........................ 0.3
Schools....................................... 0.3
Oil-Field Services............................ 0.3
Data Processing/Management.................... 0.3
Semiconductor Components-Integrated Circuits.. 0.3
Building-Heavy Construction................... 0.2
Aerospace/Defense............................. 0.2
Physical Therapy/Rehabilitation Centers....... 0.2
Transport-Marine.............................. 0.2
Financial Guarantee Insurance................. 0.2
Office Furnishings-Original................... 0.2
E-Commerce/Services........................... 0.2
Lasers-System/Components...................... 0.2
Footwear & Related Apparel.................... 0.2
Drug Delivery Systems......................... 0.2
Multimedia.................................... 0.2
Television.................................... 0.2
Retail-Automobile............................. 0.2
Retail-Misc./Diversified...................... 0.2
Printing-Commercial........................... 0.2
Patient Monitoring Equipment.................. 0.2
Finance-Mortgage Loan/Banker.................. 0.2
Steel-Producers............................... 0.2
Airlines...................................... 0.2
Energy-Alternate Sources...................... 0.2
Electronic Parts Distribution................. 0.2
Insurance-Multi-line.......................... 0.1
Water......................................... 0.1
Entertainment Software........................ 0.1
Finance-Consumer Loans........................ 0.1
Building Products-Doors & Windows............. 0.1
Independent Power Producers................... 0.1
Consumer Products-Misc........................ 0.1
Home Furnishings.............................. 0.1
Electronic Measurement Instruments............ 0.1
Oil Refining & Marketing...................... 0.1
Instruments-Controls.......................... 0.1
Hotels/Motels................................. 0.1
Research & Development........................ 0.1
Internet Security............................. 0.1
44
SunAmerica Specialty Series -- AIG Small-Cap Fund+
PORTFOLIO PROFILE -- April 30, 2017 -- (unaudited) (continued)
Industry Allocation* (continued)
Miscellaneous Manufacturing............. 0.1%
Medical Information Systems............. 0.1
Medical-HMO............................. 0.1
Computers-Other......................... 0.1
Finance-Other Services.................. 0.1
Retail-Discount......................... 0.1
Building & Construction-Misc............ 0.1
Racetracks.............................. 0.1
Real Estate Operations & Development.... 0.1
Broadcast Services/Program.............. 0.1
Telephone-Integrated.................... 0.1
Rental Auto/Equipment................... 0.1
Chemicals-Plastics...................... 0.1
Electric Products-Misc.................. 0.1
Transactional Software.................. 0.1
Satellite Telecom....................... 0.1
Telecommunication Equipment............. 0.1
Tobacco................................. 0.1
Disposable Medical Products............. 0.1
Diversified Minerals.................... 0.1
Web Hosting/Design...................... 0.1
Transport-Equipment & Leasing........... 0.1
Lighting Products & Systems............. 0.1
Machine Tools & Related Products........ 0.1
Firearms & Ammunition................... 0.1
Internet Content-Information/News....... 0.1
Resorts/Theme Parks..................... 0.1
Steel Pipe & Tube....................... 0.1
Batteries/Battery Systems............... 0.1
Oil Field Machinery & Equipment......... 0.1
Rubber/Plastic Products................. 0.1
Building Products-Cement................ 0.1
Containers-Paper/Plastic................ 0.1
Gambling (Non-Hotel).................... 0.1
Publishing-Newspapers................... 0.1
Cosmetics & Toiletries.................. 0.1
Recreational Vehicles................... 0.1
Retail-Building Products................ 0.1
Security Services....................... 0.1
Building Products-Wood.................. 0.1
Casino Hotels........................... 0.1
Medical-Hospitals....................... 0.1
Environmental Consulting & Engineering.. 0.1
Apparel Manufacturers................... 0.1
Food-Retail............................. 0.1
Publishing-Books........................ 0.1
Theaters................................ 0.1
Medical-Nursing Homes................... 0.1
Real Estate Management/Services......... 0.1
Internet Application Software........... 0.1
Retail-Office Supplies.................. 0.1
Machinery-Pumps......................... 0.1
Auction Houses/Art Dealers.............. 0.1
Environmental Monitoring & Detection.... 0.1
Building-Maintenance & Services......... 0.1
Health Care Cost Containment............ 0.1
Diversified Operations.................. 0.1
Poultry................................. 0.1
Transport-Air Freight................... 0.1
Machinery-Electrical.................... 0.1
Beverages-Non-alcoholic................. 0.1
Finance-Credit Card..................... 0.1%
Pipelines............................... 0.1
Platinum................................ 0.1
Metal-Aluminum.......................... 0.1
Appliances.............................. 0.1
Medical-Wholesale Drug Distribution..... 0.1
Educational Software.................... 0.1
Linen Supply & Related Items............ 0.1
Rubber-Tires............................ 0.1
Motion Pictures & Services.............. 0.1
Silver Mining........................... 0.1
-----
Total Investments....................... 99.7
Other assets less liabilities........... 0.3
-----
100.0%
=====
--------
* Calculated as a percentage of net assets
+ See Note 1
45
SunAmerica Specialty Series -- AIG Small-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited)
Value
Security Description Shares (Note 3)
-------------------------------------------------------
COMMON STOCKS -- 96.1%
Advertising Agencies -- 0.0%
MDC Partners, Inc., Class A............ 661 $ 5,916
--------
Advertising Services -- 0.0%
Marchex, Inc., Class B+................ 430 1,165
--------
Aerospace/Defense -- 0.2%
Aerovironment, Inc.+................... 263 7,514
Cubic Corp............................. 316 16,401
Esterline Technologies Corp.+.......... 374 34,202
Kratos Defense & Security Solutions,
Inc.+................................ 850 6,477
National Presto Industries, Inc........ 63 6,574
Teledyne Technologies, Inc.+........... 433 58,381
--------
129,549
--------
Aerospace/Defense-Equipment -- 0.3%
AAR Corp............................... 426 15,332
Aerojet Rocketdyne Holdings, Inc.+..... 768 17,211
Astronics Corp.+....................... 249 8,095
Curtiss-Wright Corp.................... 559 52,244
Ducommun, Inc.+........................ 132 3,880
Kaman Corp............................. 345 16,563
KLX, Inc.+............................. 669 31,644
Moog, Inc., Class A+................... 402 27,597
Triumph Group, Inc..................... 635 16,637
--------
189,203
--------
Agricultural Operations -- 0.0%
Alico, Inc............................. 44 1,318
Andersons, Inc......................... 345 12,886
Limoneira Co........................... 150 3,102
Tejon Ranch Co.+....................... 178 4,076
--------
21,382
--------
Airlines -- 0.2%
Allegiant Travel Co.................... 166 24,136
Hawaiian Holdings, Inc.+............... 666 36,164
SkyWest, Inc........................... 635 23,622
--------
83,922
--------
Apparel Manufacturers -- 0.1%
Columbia Sportswear Co................. 341 19,307
Delta Apparel, Inc.+................... 90 1,578
Oxford Industries, Inc................. 194 11,248
Sequential Brands Group, Inc.+......... 505 1,702
Superior Uniform Group, Inc............ 103 1,879
Vince Holding Corp.+................... 278 278
--------
35,992
--------
Appliances -- 0.1%
iRobot Corp.+.......................... 345 27,510
--------
Applications Software -- 0.8%
Appfolio, Inc., Class A+............... 97 2,575
Bazaarvoice, Inc.+..................... 1,058 4,973
Brightcove, Inc.+...................... 385 3,350
Callidus Software, Inc.+............... 770 16,209
Ebix, Inc.............................. 323 19,929
Five9, Inc.+........................... 426 7,772
HubSpot, Inc.+......................... 371 24,876
Jive Software, Inc.+................... 745 3,762
MINDBODY, Inc., Class A+............... 184 5,216
Value
Security Description Shares (Note 3)
-------------------------------------------------------------------
Applications Software (continued)
New Relic, Inc.+............................... 282 $ 11,274
Park City Group, Inc.+......................... 166 2,100
PDF Solutions, Inc.+........................... 13,560 257,911
Progress Software Corp......................... 646 19,199
RealPage, Inc.+................................ 683 25,305
Verint Systems, Inc.+.......................... 785 30,851
----------
435,302
----------
Athletic Equipment -- 0.4%
Nautilus, Inc.+................................ 11,461 208,590
----------
Auction Houses/Art Dealers -- 0.1%
B. Riley Financial, Inc........................ 118 1,776
Sotheby's+..................................... 621 29,410
----------
31,186
----------
Audio/Video Products -- 0.0%
Daktronics, Inc................................ 473 4,475
Universal Electronics, Inc.+................... 181 12,543
----------
17,018
----------
Auto Repair Centers -- 0.0%
Monro Muffler Brake, Inc....................... 396 20,533
----------
Auto-Cars/Light Trucks -- 0.0%
REV Group, Inc................................. 149 4,202
----------
Auto-Heavy Duty Trucks -- 0.6%
Blue Bird Corp.+............................... 17,257 320,980
Navistar International Corp.+.................. 638 17,169
Workhorse Group, Inc.+......................... 146 298
----------
338,447
----------
Auto-Truck Trailers -- 0.0%
Wabash National Corp........................... 753 17,153
----------
Auto/Truck Parts & Equipment-Original -- 0.4%
American Axle & Manufacturing Holdings, Inc.+.. 1,067 18,769
Cooper-Standard Holding, Inc.+................. 186 21,031
Dana, Inc...................................... 1,886 36,626
Gentherm, Inc.+................................ 459 17,052
Horizon Global Corp.+.......................... 276 3,889
Meritor, Inc.+................................. 1,043 18,576
Miller Industries, Inc......................... 141 3,581
Modine Manufacturing Co.+...................... 606 7,333
Spartan Motors, Inc............................ 428 3,531
Strattec Security Corp......................... 44 1,415
Superior Industries International, Inc......... 323 7,025
Supreme Industries, Inc., Class A.............. 166 3,327
Tenneco, Inc................................... 676 42,608
Titan International, Inc....................... 571 6,115
Tower International, Inc....................... 265 7,181
Unique Fabricating, Inc........................ 84 975
----------
199,034
----------
Auto/Truck Parts & Equipment-Replacement -- 1.9%
Commercial Vehicle Group, Inc.+................ 39,866 354,409
Dorman Products, Inc.+......................... 333 27,689
Douglas Dynamics, Inc.......................... 8,654 276,063
Motorcar Parts of America, Inc.+............... 12,792 387,853
Standard Motor Products, Inc................... 270 13,724
----------
1,059,738
----------
46
SunAmerica Specialty Series -- AIG Small-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
-------------------------------------------------------
COMMON STOCKS (continued)
B2B/E-Commerce -- 0.0%
ePlus, Inc.+........................... 160 $ 11,400
Global Sources, Ltd.+.................. 105 966
TechTarget, Inc.+...................... 201 1,859
--------
14,225
--------
Banks-Commercial -- 6.5%
1st Source Corp........................ 201 9,710
Access National Corp................... 182 5,156
ACNB Corp.............................. 76 2,352
Allegiance Bancshares, Inc.+........... 140 5,467
American National Bankshares, Inc...... 105 4,032
Ameris Bancorp......................... 458 21,572
Ames National Corp..................... 108 3,337
Arrow Financial Corp................... 144 4,932
Atlantic Capital Bancshares, Inc.+..... 222 4,351
BancFirst Corp......................... 100 9,605
Bancorp, Inc.+......................... 635 4,096
BancorpSouth, Inc...................... 1,088 33,130
Bank of Marin Bancorp.................. 76 4,799
Bank of N.T. Butterfield & Son, Ltd.... 155 5,154
Bank of the Ozarks, Inc................ 1,119 53,119
Bankwell Financial Group, Inc.......... 73 2,638
Banner Corp............................ 380 20,976
Bar Harbor Bankshares.................. 186 5,727
Blue Hills Bancorp, Inc................ 317 5,738
BNC Bancorp............................ 512 17,126
Bridge Bancorp, Inc.................... 226 8,192
Bryn Mawr Bank Corp.................... 8,747 375,246
C&F Financial Corp..................... 41 2,050
Camden National Corp................... 193 8,251
Capital Bank Financial Corp., Class A.. 308 12,782
Capital City Bank Group, Inc........... 141 2,906
Capstar Financial Holdings, Inc.+...... 34 600
Carolina Financial Corp................ 155 4,783
Cascade Bancorp+....................... 404 3,022
Cass Information Systems, Inc.......... 140 9,306
Cathay General Bancorp, Class B........ 934 35,539
CenterState Banks, Inc................. 616 15,542
Central Pacific Financial Corp......... 390 12,199
Central Valley Community Bancorp....... 111 2,521
Century Bancorp, Inc., Class A......... 36 2,270
Chemical Financial Corp................ 834 39,573
Chemung Financial Corp................. 39 1,482
Citizens & Northern Corp............... 150 3,488
City Holding Co........................ 187 13,294
CNB Financial Corp..................... 177 4,229
CoBiz Financial, Inc................... 478 7,854
Codorus Valley Bancorp, Inc............ 103 2,986
Columbia Banking System, Inc........... 736 29,079
Community Bank System, Inc............. 545 30,493
Community Trust Bancorp, Inc........... 195 8,765
ConnectOne Bancorp, Inc................ 367 8,147
County Bancorp, Inc.................... 60 1,647
CU Bancorp+............................ 208 7,753
Customers Bancorp, Inc.+............... 346 10,702
CVB Financial Corp..................... 1,281 27,593
Eagle Bancorp, Inc.+................... 386 23,121
Enterprise Bancorp, Inc................ 107 3,746
Enterprise Financial Services Corp..... 274 11,576
Value
Security Description Shares (Note 3)
------------------------------------------------------------
Banks-Commercial (continued)
Equity Bancshares, Inc., Class A+........... 87 $ 2,747
Farmers Capital Bank Corp................... 94 3,901
Farmers National Banc Corp.................. 320 4,576
FB Financial Corp.+......................... 81 2,935
FCB Financial Holdings, Inc., Class A+...... 385 18,191
Fidelity Southern Corp...................... 267 6,013
Financial Institutions, Inc................. 178 5,963
First BanCorp+.............................. 1,534 9,020
First Bancorp............................... 292 8,772
First Bancorp, Inc.......................... 129 3,479
First Busey Corp............................ 398 11,920
First Business Financial Services, Inc...... 103 2,737
First Citizens BancShares, Inc., Class A.... 97 33,762
First Commonwealth Financial Corp........... 1,144 14,769
First Community Bancshares, Inc............. 201 5,318
First Community Financial Partners, Inc.+... 175 2,284
First Connecticut Bancorp, Inc.............. 179 4,779
First Financial Bancorp..................... 771 21,318
First Financial Bankshares, Inc............. 807 32,240
First Financial Corp........................ 128 6,246
First Foundation, Inc.+..................... 24,360 382,452
First Internet Bancorp...................... 65 1,921
First Interstate BancSystem, Inc., Class A.. 253 9,551
First Merchants Corp........................ 511 21,145
First Mid-Illinois Bancshares, Inc.......... 94 3,065
First Midwest Bancorp, Inc.................. 1,127 25,594
First NBC Bank Holding Co.+................. 201 533
First Northwest Bancorp+.................... 142 2,337
First of Long Island Corp................... 273 7,426
FNB Corp.................................... 3,979 56,661
Franklin Financial Network, Inc.+........... 143 5,799
Fulton Financial Corp....................... 2,183 40,276
German American Bancorp, Inc................ 273 8,976
Glacier Bancorp, Inc........................ 958 32,361
Great Southern Bancorp, Inc................. 136 6,820
Great Western Bancorp, Inc.................. 748 30,818
Green Bancorp, Inc.+........................ 266 4,788
Guaranty Bancorp............................ 217 5,458
Hancock Holding Co.......................... 1,059 49,455
Hanmi Financial Corp........................ 393 11,417
HarborOne Bancorp, Inc.+.................... 183 3,810
Heartland Financial USA, Inc................ 292 14,016
Heritage Commerce Corp...................... 336 4,798
Heritage Financial Corp..................... 380 10,032
Hilltop Holdings, Inc....................... 951 26,447
Home BancShares, Inc........................ 1,528 38,888
Hope Bancorp, Inc........................... 1,624 29,735
Horizon Bancorp............................. 244 6,586
IBERIABANK Corp............................. 639 50,705
Independent Bank Corp....................... 262 5,843
Independent Bank Corp./Rockland Trust Co.... 332 21,016
International Bancshares Corp............... 688 25,731
Kearny Financial Corp....................... 1,085 15,841
Lakeland Bancorp, Inc....................... 500 9,725
Lakeland Financial Corp..................... 309 14,109
LCNB Corp................................... 111 2,459
LegacyTexas Financial Group, Inc............ 560 21,174
Live Oak Bancshares, Inc.................... 251 6,062
Macatawa Bank Corp.......................... 341 3,263
MainSource Financial Group, Inc............. 297 10,157
47
SunAmerica Specialty Series -- AIG Small-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
--------------------------------------------------------------
COMMON STOCKS (continued)
Banks-Commercial (continued)
MB Financial, Inc........................... 955 $ 40,597
MBT Financial Corp.......................... 229 2,565
Mercantile Bank Corp........................ 205 6,894
Merchants Bancshares, Inc................... 73 3,635
Midland States Bancorp, Inc................. 46 1,587
MidWestOne Financial Group, Inc............. 105 3,643
National Bankshares, Inc.................... 86 3,616
National Commerce Corp.+.................... 107 4,141
NBT Bancorp, Inc............................ 546 20,846
Nicolet Bankshares, Inc.+................... 97 4,782
Northrim BanCorp, Inc....................... 85 2,720
OFG Bancorp................................. 558 6,529
Old Line Bancshares, Inc.................... 107 2,970
Old National Bancorp........................ 1,683 28,274
Old Second Bancorp, Inc..................... 370 4,440
Opus Bank................................... 220 4,961
Orrstown Financial Services, Inc............ 95 2,038
Pacific Continental Corp.................... 262 6,550
Pacific Mercantile Bancorp+................. 196 1,519
Paragon Commercial Corp.+................... 11 605
Park National Corp.......................... 170 17,923
Park Sterling Corp.......................... 664 8,167
Peapack Gladstone Financial Corp............ 202 6,476
Penns Woods Bancorp, Inc.................... 58 2,419
People's Utah Bancorp....................... 167 4,409
Peoples Bancorp, Inc........................ 206 6,897
Peoples Financial Services Corp............. 87 3,910
Pinnacle Financial Partners, Inc............ 592 37,888
Preferred Bank.............................. 6,576 348,462
Premier Financial Bancorp, Inc.............. 117 2,507
PrivateBancorp, Inc......................... 992 57,308
Prosperity Bancshares, Inc.................. 848 56,986
Provident Bancorp, Inc.+.................... 59 1,257
QCR Holdings, Inc........................... 152 6,931
Renasant Corp............................... 536 22,726
Republic Bancorp, Inc., Class A............. 124 4,462
Republic First Bancorp, Inc.+............... 638 5,487
S&T Bancorp, Inc............................ 441 15,858
Sandy Spring Bancorp, Inc................... 301 13,018
Seacoast Banking Corp. of Florida+.......... 381 9,220
ServisFirst Bancshares, Inc................. 582 22,000
Shore Bancshares, Inc....................... 161 2,671
Sierra Bancorp.............................. 150 3,760
Simmons First National Corp., Class A....... 371 20,275
South State Corp............................ 327 28,825
Southern First Bancshares, Inc.+............ 73 2,460
Southern National Bancorp of Virginia, Inc.. 143 2,604
Southside Bancshares, Inc................... 330 11,458
Southwest Bancorp, Inc...................... 232 6,020
State Bank Financial Corp................... 451 12,114
Stock Yards Bancorp, Inc.................... 273 11,193
Stonegate Bank.............................. 146 6,701
Summit Financial Group, Inc................. 106 2,318
Sun Bancorp, Inc./NJ........................ 136 3,393
Texas Capital Bancshares, Inc.+............. 629 47,867
Tompkins Financial Corp..................... 186 15,377
Towne Bank.................................. 708 22,975
TriCo Bancshares............................ 259 9,184
TriState Capital Holdings, Inc.+............ 281 6,997
Value
Security Description Shares (Note 3)
-------------------------------------------------------------------
Banks-Commercial (continued)
Triumph Bancorp, Inc.+........................... 198 $ 4,435
TrustCo Bank Corp. NY............................ 1,178 9,365
Trustmark Corp................................... 857 28,470
UMB Financial Corp............................... 564 40,884
Umpqua Holdings Corp............................. 2,800 49,476
Union Bankshares Corp............................ 541 18,524
United Bankshares, Inc........................... 1,160 46,278
United Community Banks, Inc...................... 885 24,205
Univest Corp. of Pennsylvania.................... 312 9,454
Valley National Bancorp.......................... 3,148 37,020
Veritex Holdings, Inc.+.......................... 146 3,933
Washington Trust Bancorp, Inc.................... 191 9,397
WashingtonFirst Bankshares, Inc.................. 107 3,010
Webster Financial Corp........................... 1,158 58,838
WesBanco, Inc.................................... 517 20,582
West Bancorporation, Inc......................... 205 4,776
Westamerica Bancorporation....................... 318 17,496
Western New England Bancorp, Inc................. 286 3,003
Wintrust Financial Corp.......................... 645 45,705
Xenith Bankshares, Inc.+......................... 95 2,567
----------
3,642,807
----------
Banks-Fiduciary -- 0.0%
Boston Private Financial Holdings, Inc........... 1,026 16,006
Union Bankshares, Inc............................ 49 2,060
----------
18,066
----------
Banks-Mortgage -- 0.0%
Walker & Dunlop, Inc.+........................... 353 15,832
----------
Banks-Super Regional -- 0.0%
Independent Bank Group, Inc...................... 142 8,541
National Bank Holdings Corp., Class A............ 296 9,345
----------
17,886
----------
Batteries/Battery Systems -- 0.1%
EnerSys.......................................... 553 45,960
----------
Beverages-Non-alcoholic -- 0.1%
Coca-Cola Bottling Co. Consolidated.............. 59 12,500
National Beverage Corp........................... 150 13,288
Primo Water Corp.+............................... 271 3,244
----------
29,032
----------
Beverages-Wine/Spirits -- 0.6%
MGP Ingredients, Inc............................. 6,735 352,645
----------
Bicycle Manufacturing -- 0.0%
Fox Factory Holding Corp.+....................... 287 8,624
----------
Brewery -- 0.0%
Boston Beer Co., Inc., Class A+.................. 111 16,023
Craft Brew Alliance, Inc.+....................... 161 2,189
----------
18,212
----------
Broadcast Services/Program -- 0.1%
Hemisphere Media Group, Inc.+.................... 83 967
MSG Networks, Inc., Class A+..................... 768 19,162
TiVo Corp........................................ 1,478 29,190
World Wrestling Entertainment, Inc., Class A..... 465 9,965
----------
59,284
----------
48
SunAmerica Specialty Series -- AIG Small-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
---------------------------------------------------------------
COMMON STOCKS (continued)
Building & Construction Products-Misc. -- 1.2%
Armstrong Flooring, Inc.+.................... 301 $ 5,776
Builders FirstSource, Inc.+.................. 1,082 17,323
Caesarstone, Ltd.+........................... 306 12,148
Forterra, Inc.+.............................. 231 4,444
Gibraltar Industries, Inc.+.................. 406 15,936
Louisiana-Pacific Corp.+..................... 1,823 46,924
NCI Building Systems, Inc.+.................. 350 6,125
Patrick Industries, Inc.+.................... 6,286 446,620
Ply Gem Holdings, Inc.+...................... 282 5,429
Quanex Building Products Corp................ 442 9,017
Simpson Manufacturing Co., Inc............... 526 21,939
Summit Materials, Inc., Class A+............. 1,353 34,718
Trex Co., Inc.+.............................. 373 27,300
--------
653,699
--------
Building & Construction-Misc. -- 0.1%
Aegion Corp.+................................ 450 10,269
Comfort Systems USA, Inc..................... 477 17,506
Hill International, Inc.+.................... 416 1,685
IES Holdings, Inc.+.......................... 100 2,000
MYR Group, Inc.+............................. 187 7,903
TopBuild Corp.+.............................. 486 24,878
--------
64,241
--------
Building Products-Air & Heating -- 0.0%
AAON, Inc.................................... 519 19,021
--------
Building Products-Cement -- 0.1%
Continental Building Products, Inc.+......... 454 11,055
Headwaters, Inc.+............................ 918 21,812
US Concrete, Inc.+........................... 183 11,346
--------
44,213
--------
Building Products-Doors & Windows -- 0.1%
Apogee Enterprises, Inc...................... 358 19,511
Griffon Corp................................. 388 9,312
JELD-WEN Holding, Inc.+...................... 321 10,603
Masonite International Corp.+................ 391 32,531
PGT Innovations , Inc.+...................... 617 6,725
--------
78,682
--------
Building Products-Light Fixtures -- 0.0%
LSI Industries, Inc.......................... 306 2,775
--------
Building Products-Wood -- 0.1%
Boise Cascade Co.+........................... 502 15,311
Universal Forest Products, Inc............... 250 23,822
--------
39,133
--------
Building-Heavy Construction -- 0.2%
Dycom Industries, Inc.+...................... 386 40,785
Granite Construction, Inc.................... 499 26,302
Layne Christensen Co.+....................... 234 1,865
MasTec, Inc.+................................ 836 36,909
Orion Group Holdings, Inc.+.................. 346 2,612
Primoris Services Corp....................... 518 11,899
Tutor Perini Corp.+.......................... 486 14,993
--------
135,365
--------
Building-Maintenance & Services -- 0.1%
ABM Industries, Inc.......................... 708 30,578
--------
Value
Security Description Shares (Note 3)
------------------------------------------------------------------
Building-Mobile Home/Manufactured Housing -- 1.4%
Cavco Industries, Inc.+......................... 3,939 $467,756
Winnebago Industries, Inc....................... 11,540 331,198
--------
798,954
--------
Building-Residential/Commercial -- 0.8%
AV Homes, Inc.+................................. 156 2,738
Beazer Homes USA, Inc.+......................... 405 5,026
Century Communities, Inc.+...................... 194 5,296
Green Brick Partners, Inc.+..................... 298 3,069
Hovnanian Enterprises, Inc., Class A+........... 1,573 3,681
Installed Building Products, Inc.+.............. 5,851 312,151
KB Home......................................... 1,076 22,166
LGI Homes, Inc.+................................ 197 6,271
M/I Homes, Inc.+................................ 303 8,230
MDC Holdings, Inc............................... 522 16,187
Meritage Homes Corp.+........................... 481 18,735
New Home Co., Inc.+............................. 162 1,889
PICO Holdings, Inc.+............................ 281 4,524
Taylor Morrison Home Corp., Class A+............ 502 11,596
TRI Pointe Group, Inc.+......................... 1,892 23,555
UCP, Inc., Class A+............................. 103 1,179
William Lyon Homes, Class A+.................... 308 6,776
--------
453,069
--------
Cable/Satellite TV -- 0.0%
Global Eagle Entertainment, Inc.+............... 604 1,872
--------
Casino Hotels -- 0.1%
Boyd Gaming Corp.+.............................. 1,044 23,678
Caesars Entertainment Corp.+.................... 727 8,070
Century Casinos, Inc.+.......................... 274 2,255
Monarch Casino & Resort, Inc.+.................. 135 3,978
--------
37,981
--------
Casino Services -- 0.0%
Eldorado Resorts, Inc.+......................... 368 7,038
Scientific Games Corp., Class A+................ 669 15,889
--------
22,927
--------
Cellular Telecom -- 0.0%
ATN International, Inc.......................... 134 9,272
NII Holdings, Inc.+............................. 691 596
--------
9,868
--------
Chemicals-Diversified -- 0.5%
Aceto Corp...................................... 10,292 163,128
Codexis, Inc.+.................................. 431 1,897
Innophos Holdings, Inc.......................... 249 11,937
Innospec, Inc................................... 302 19,932
Koppers Holdings, Inc.+......................... 262 11,122
Olin Corp....................................... 2,093 67,248
--------
275,264
--------
Chemicals-Fibers -- 0.0%
Rayonier Advanced Materials, Inc................ 556 7,367
--------
Chemicals-Other -- 0.0%
American Vanguard Corp.......................... 363 6,080
--------
Chemicals-Plastics -- 0.1%
A. Schulman, Inc................................ 370 11,710
Landec Corp.+................................... 345 4,744
49
SunAmerica Specialty Series -- AIG Small-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
-------------------------------------------------------
COMMON STOCKS (continued)
Chemicals-Plastics (continued)
PolyOne Corp........................... 1,061 $ 41,602
--------
58,056
--------
Chemicals-Specialty -- 1.1%
AgroFresh Solutions, Inc.+............. 282 1,582
Balchem Corp........................... 397 32,221
Calgon Carbon Corp..................... 648 9,428
Chemours Co............................ 2,317 93,352
CSW Industrials, Inc.+................. 184 6,514
Ferro Corp.+........................... 1,073 19,228
GCP Applied Technologies, Inc.+........ 897 29,511
H.B. Fuller Co......................... 632 33,389
Hawkins, Inc........................... 123 6,285
Ingevity Corp.+........................ 538 34,018
KMG Chemicals, Inc..................... 3,258 171,208
Kraton Corp.+.......................... 381 12,462
Minerals Technologies, Inc............. 441 34,707
Oil-Dri Corp. of America............... 63 2,563
OMNOVA Solutions, Inc.+................ 548 5,206
Quaker Chemical Corp................... 166 24,004
Sensient Technologies Corp............. 566 46,299
Stepan Co.............................. 247 20,946
Tronox, Ltd., Class A.................. 832 13,736
Univar, Inc.+.......................... 555 16,567
Valhi, Inc............................. 323 1,072
--------
614,298
--------
Circuit Boards -- 0.0%
Park Electrochemical Corp.............. 249 4,313
TTM Technologies, Inc.+................ 914 15,291
--------
19,604
--------
Coal -- 0.0%
Ramaco Resources, Inc.+................ 75 582
SunCoke Energy, Inc.+.................. 832 7,629
Westmoreland Coal Co.+................. 236 2,516
--------
10,727
--------
Coatings/Paint -- 0.0%
Kronos Worldwide, Inc.................. 282 4,941
--------
Coffee -- 0.0%
Farmer Bros. Co.+...................... 103 3,656
--------
Commercial Services -- 1.6%
Care.com, Inc.+........................ 205 2,429
Collectors Universe, Inc............... 96 2,622
Healthcare Services Group, Inc......... 892 40,952
HMS Holdings Corp.+.................... 1,066 21,821
Medifast, Inc.......................... 7,039 326,046
National Research Corp., Class A....... 107 2,654
Nutrisystem, Inc....................... 9,151 489,121
PFSweb, Inc.+.......................... 190 1,391
RPX Corp.+............................. 639 8,205
ServiceSource International, Inc.+..... 788 2,963
SP Plus Corp.+......................... 221 7,613
Team, Inc.+............................ 372 10,007
Weight Watchers International, Inc.+... 356 7,433
--------
923,257
--------
Value
Security Description Shares (Note 3)
-----------------------------------------------------------
Commercial Services-Finance -- 0.9%
Cardtronics PLC, Class A+................ 568 $ 23,617
CBIZ, Inc.+.............................. 636 10,017
CPI Card Group, Inc...................... 270 972
EVERTEC, Inc............................. 821 13,013
Green Dot Corp., Class A+................ 550 18,860
LendingTree, Inc.+....................... 81 11,413
Liberty Tax, Inc......................... 86 1,208
MoneyGram International, Inc.+........... 381 6,786
PRGX Global, Inc.+....................... 60,770 398,043
Travelport Worldwide, Ltd................ 1,462 19,255
--------
503,184
--------
Communications Software -- 0.3%
BroadSoft, Inc.+......................... 4,345 166,848
Digi International, Inc.+................ 332 4,117
pdvWireless, Inc.+....................... 125 3,206
--------
174,171
--------
Computer Aided Design -- 0.5%
Aspen Technology, Inc.+.................. 985 60,568
Exa Corp.+............................... 17,511 240,951
--------
301,519
--------
Computer Data Security -- 0.0%
Qualys, Inc.+............................ 350 13,440
Varonis Systems, Inc.+................... 136 4,270
--------
17,710
--------
Computer Graphics -- 0.0%
Monotype Imaging Holdings, Inc........... 523 10,643
--------
Computer Services -- 1.3%
ALJ Regional Holdings, Inc.+............. 237 794
Barracuda Networks, Inc.+................ 282 5,733
CACI International, Inc., Class A+....... 306 36,108
Carbonite, Inc.+......................... 17,950 387,720
Cogint, Inc.+............................ 194 1,028
Convergys Corp........................... 1,127 25,369
DMC Global, Inc.......................... 179 2,739
Engility Holdings, Inc.+................. 232 6,577
EPAM Systems, Inc.+...................... 609 46,893
ExlService Holdings, Inc.+............... 410 19,561
Globant SA+.............................. 330 12,504
Insight Enterprises, Inc.+............... 462 19,450
KEYW Holding Corp.+...................... 561 5,324
MAXIMUS, Inc............................. 809 49,341
NeuStar, Inc., Class A+.................. 683 22,675
Science Applications International Corp.. 535 39,050
SecureWorks Corp., Class A+.............. 77 666
Sykes Enterprises, Inc.+................. 499 14,875
Syntel, Inc.............................. 416 7,326
TeleTech Holdings, Inc................... 210 6,562
Unisys Corp.+............................ 647 7,311
Virtusa Corp.+........................... 355 10,998
--------
728,604
--------
Computer Software -- 1.3%
Avid Technology, Inc.+................... 412 2,309
Blackbaud, Inc........................... 595 47,844
Box, Inc., Class A+...................... 630 10,861
Cornerstone OnDemand, Inc.+.............. 637 25,021
50
SunAmerica Specialty Series -- AIG Small-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
------------------------------------------------------
COMMON STOCKS (continued)
Computer Software (continued)
Envestnet, Inc.+.................... 533 $ 18,548
Guidance Software, Inc.+............ 292 1,767
j2 Global, Inc...................... 595 53,693
Planet Payment, Inc.+............... 57,687 240,555
Simulations Plus, Inc............... 28,338 331,555
Workiva, Inc.+...................... 282 4,738
--------
736,891
--------
Computers-Integrated Systems -- 0.5%
Agilysys, Inc.+..................... 193 1,911
Cray, Inc.+......................... 518 9,272
Diebold Nixdorf, Inc................ 863 24,337
Maxwell Technologies, Inc.+......... 405 2,470
Mercury Systems, Inc.+.............. 592 22,129
MTS Systems Corp.................... 210 9,754
NCI, Inc., Class A+................. 77 1,143
NetScout Systems, Inc.+............. 1,135 42,733
Radisys Corp.+...................... 37,433 150,106
Silver Spring Networks, Inc.+....... 487 5,557
Super Micro Computer, Inc.+......... 499 12,176
USA Technologies, Inc.+............. 460 2,254
--------
283,842
--------
Computers-Memory Devices -- 0.0%
Pure Storage, Inc., Class A+........ 859 9,114
--------
Computers-Other -- 0.1%
3D Systems Corp.+................... 1,357 21,481
ExOne Co.+.......................... 140 1,413
Lumentum Holdings, Inc.+............ 639 27,317
Stratasys, Ltd.+.................... 632 15,648
--------
65,859
--------
Computers-Periphery Equipment -- 0.7%
Electronics For Imaging, Inc.+...... 594 27,193
Immersion Corp.+.................... 372 3,263
Mitek Systems, Inc.+................ 39,715 347,506
--------
377,962
--------
Computers-Voice Recognition -- 0.0%
Vocera Communications, Inc.+........ 319 8,090
--------
Consulting Services -- 1.2%
Advisory Board Co.+................. 519 26,521
CRA International, Inc.............. 7,822 296,767
Forrester Research, Inc............. 127 5,150
Franklin Covey Co.+................. 131 2,784
FTI Consulting, Inc.+............... 523 18,090
Hackett Group, Inc.................. 14,963 296,716
Huron Consulting Group, Inc.+....... 278 12,371
ICF International, Inc.+............ 232 10,243
Information Services Group, Inc.+... 400 1,260
Navigant Consulting, Inc.+.......... 613 14,693
Vectrus, Inc.+...................... 136 3,460
--------
688,055
--------
Consumer Products-Misc. -- 0.1%
Central Garden & Pet Co.+........... 129 4,876
Central Garden & Pet Co., Class A+.. 430 15,149
CSS Industries, Inc................. 108 2,847
Helen of Troy, Ltd.+................ 352 33,088
Value
Security Description Shares (Note 3)
-------------------------------------------------------
Consumer Products-Misc. (continued)
WD-40 Co............................... 180 $ 18,873
--------
74,833
--------
Containers-Metal/Glass -- 0.0%
Greif, Inc., Class A................... 328 19,227
Greif, Inc., Class B................... 73 4,917
--------
24,144
--------
Containers-Paper/Plastic -- 0.1%
KapStone Paper and Packaging Corp...... 1,091 23,009
Multi Packaging Solutions
International, Ltd.+................. 272 4,882
Multi-Color Corp....................... 175 13,440
UFP Technologies, Inc.+................ 81 2,163
--------
43,494
--------
Cosmetics & Toiletries -- 0.1%
Avon Products, Inc.+................... 5,564 26,985
elf Beauty, Inc.+...................... 117 3,188
Inter Parfums, Inc..................... 224 8,501
Revlon, Inc., Class A+................. 150 3,893
--------
42,567
--------
Cruise Lines -- 0.0%
Lindblad Expeditions Holdings, Inc.+... 190 1,805
--------
Data Processing/Management -- 0.3%
Acxiom Corp.+.......................... 981 28,351
Amber Road, Inc.+...................... 228 1,867
CommVault Systems, Inc.+............... 491 24,771
CSG Systems International, Inc......... 411 15,416
Fair Isaac Corp........................ 393 53,244
Pegasystems, Inc....................... 463 21,090
--------
144,739
--------
Decision Support Software -- 0.0%
Castlight Health, Inc., Class B+....... 519 1,998
QAD, Inc., Class A..................... 121 3,654
--------
5,652
--------
Diagnostic Equipment -- 1.1%
Accelerate Diagnostics, Inc.+.......... 296 8,081
BioTelemetry, Inc.+.................... 17,450 574,105
GenMark Diagnostics, Inc.+............. 552 7,077
Genomic Health, Inc.+.................. 240 7,886
Oxford Immunotec Global PLC+........... 285 4,386
Repligen Corp.+........................ 433 15,930
--------
617,465
--------
Diagnostic Kits -- 0.8%
Meridian Bioscience, Inc............... 537 7,947
OraSure Technologies, Inc.+............ 32,906 431,398
Quidel Corp.+.......................... 345 8,339
--------
447,684
--------
Dialysis Centers -- 0.0%
American Renal Associates Holdings,
Inc.+................................ 110 1,893
--------
Disposable Medical Products -- 0.1%
ICU Medical, Inc.+..................... 186 28,607
Merit Medical Systems, Inc.+........... 555 18,704
Utah Medical Products, Inc............. 44 2,754
--------
50,065
--------
51
SunAmerica Specialty Series -- AIG Small-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
-------------------------------------------------------------------
COMMON STOCKS (continued)
Distribution/Wholesale -- 0.3%
Anixter International, Inc.+..................... 367 $ 29,929
Beacon Roofing Supply, Inc.+..................... 754 37,376
Core-Mark Holding Co., Inc....................... 576 20,172
Essendant, Inc................................... 479 7,999
Fossil Group, Inc.+.............................. 541 9,332
G-III Apparel Group, Ltd.+....................... 555 13,153
H&E Equipment Services, Inc...................... 406 8,575
ScanSource, Inc.+................................ 323 12,758
SiteOne Landscape Supply, Inc.+.................. 150 7,172
Systemax, Inc.................................... 148 1,960
Titan Machinery, Inc.+........................... 228 3,614
Triton International, Ltd........................ 507 15,519
Veritiv Corp.+................................... 105 5,423
--------
172,982
--------
Diversified Financial Services -- 0.0%
On Deck Capital, Inc.+........................... 618 2,935
--------
Diversified Manufacturing Operations -- 1.1%
Actuant Corp., Class A........................... 738 20,147
AZZ, Inc......................................... 332 19,605
Barnes Group, Inc................................ 637 35,016
Chase Corp....................................... 89 9,122
EnPro Industries, Inc............................ 272 19,217
Fabrinet+........................................ 442 15,324
Federal Signal Corp.............................. 775 12,098
GP Strategies Corp.+............................. 16,276 441,079
Handy & Harman, Ltd.+............................ 36 981
Harsco Corp.+.................................... 1,040 13,572
LSB Industries, Inc.+............................ 265 2,920
Lydall, Inc.+.................................... 214 11,214
NL Industries, Inc.+............................. 106 859
Raven Industries, Inc............................ 469 14,539
Standex International Corp....................... 162 15,220
Tredegar Corp.................................... 326 5,591
--------
636,504
--------
Diversified Minerals -- 0.1%
Fairmount Santrol Holdings, Inc.+................ 1,150 5,934
Smart Sand, Inc.+................................ 150 1,827
United States Lime & Minerals, Inc............... 22 1,741
US Silica Holdings, Inc.......................... 942 39,093
--------
48,595
--------
Diversified Operations -- 0.1%
HRG Group, Inc.+................................. 1,499 29,995
--------
Diversified Operations/Commercial Services -- 0.0%
Viad Corp........................................ 258 11,662
--------
Drug Delivery Systems -- 0.2%
Catalent, Inc.+.................................. 1,261 36,922
Depomed, Inc.+................................... 788 9,448
Heron Therapeutics, Inc.+........................ 530 8,136
Nektar Therapeutics+............................. 1,799 34,127
Revance Therapeutics, Inc.+...................... 263 5,720
--------
94,353
--------
E-Commerce/Products -- 0.3%
1-800-flowers.com, Inc., Class A+................ 336 3,612
Chegg, Inc.+..................................... 1,038 9,352
Value
Security Description Shares (Note 3)
---------------------------------------------------
E-Commerce/Products (continued)
Etsy, Inc.+...................... 1,355 $ 14,580
FTD Cos., Inc.+.................. 223 4,460
Lands' End, Inc.+................ 192 4,531
Overstock.com, Inc.+............. 169 2,932
Shutterfly, Inc.+................ 445 23,095
US Auto Parts Network, Inc.+..... 31,293 113,594
Wayfair, Inc., Class A+.......... 398 18,193
--------
194,349
--------
E-Commerce/Services -- 0.2%
Angie's List, Inc.+.............. 512 3,011
Bankrate, Inc.+.................. 610 6,466
ChannelAdvisor Corp.+............ 298 3,516
GrubHub, Inc.+................... 1,023 43,969
Quotient Technology, Inc.+....... 826 9,003
RetailMeNot, Inc.+............... 497 5,765
Stamps.com, Inc.+................ 207 21,973
Trade Desk, Inc., Class A+....... 115 4,295
TrueCar, Inc.+................... 701 12,282
--------
110,280
--------
E-Marketing/Info -- 0.0%
Liquidity Services, Inc.+........ 322 2,512
New Media Investment Group, Inc.. 571 7,514
QuinStreet, Inc.+................ 472 2,115
Rubicon Project, Inc.+........... 479 2,735
--------
14,876
--------
E-Services/Consulting -- 0.0%
Perficient, Inc.+................ 454 7,909
--------
Educational Software -- 0.1%
2U, Inc.+........................ 473 21,474
Instructure, Inc.+............... 133 3,179
Rosetta Stone, Inc.+............. 248 2,790
--------
27,443
--------
Electric Products-Misc. -- 0.1%
Graham Corp...................... 123 2,715
Littelfuse, Inc.................. 279 43,008
Novanta, Inc.+................... 408 11,444
--------
57,167
--------
Electric-Distribution -- 0.0%
EnerNOC, Inc.+................... 345 1,949
Genie Energy, Ltd., Class B...... 165 1,312
Spark Energy, Inc., Class A...... 61 2,190
--------
5,451
--------
Electric-Generation -- 0.0%
Atlantic Power Corp.+............ 1,574 3,935
--------
Electric-Integrated -- 0.7%
ALLETE, Inc...................... 626 43,764
Ameresco, Inc., Class A+......... 273 1,761
Avista Corp...................... 802 32,353
Black Hills Corp................. 651 44,281
El Paso Electric Co.............. 511 26,368
IDACORP, Inc..................... 636 53,755
MGE Energy, Inc.................. 438 28,163
NorthWestern Corp................ 611 36,525
Otter Tail Corp.................. 472 18,644
52
SunAmerica Specialty Series -- AIG Small-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
-------------------------------------------------------
COMMON STOCKS (continued)
Electric-Integrated (continued)
PNM Resources, Inc..................... 1,015 $ 37,809
Portland General Electric Co........... 1,140 51,687
Unitil Corp............................ 178 8,620
--------
383,730
--------
Electronic Components-Misc. -- 1.0%
AVX Corp............................... 600 10,146
Bel Fuse, Inc., Class B................ 118 2,856
Benchmark Electronics, Inc.+........... 624 19,781
CTS Corp............................... 403 8,906
Kimball Electronics, Inc.+............. 361 6,227
Knowles Corp.+......................... 1,118 19,822
Methode Electronics, Inc............... 459 20,449
NVE Corp............................... 4,341 353,401
OSI Systems, Inc.+..................... 224 17,338
Plexus Corp.+.......................... 421 21,888
Rogers Corp.+.......................... 231 23,779
Sanmina Corp.+......................... 929 34,605
Sparton Corp.+......................... 119 2,650
Stoneridge, Inc.+...................... 345 6,765
Vishay Intertechnology, Inc............ 1,717 28,073
Vishay Precision Group, Inc.+.......... 154 2,649
ZAGG, Inc.+............................ 354 2,513
--------
581,848
--------
Electronic Components-Semiconductors -- 1.5%
Advanced Micro Devices, Inc.+.......... 9,510 126,483
Alpha & Omega Semiconductor, Ltd.+..... 234 3,873
Ambarella, Inc.+....................... 404 22,713
Amkor Technology, Inc.+................ 1,293 15,232
Cavium, Inc.+.......................... 815 56,113
CEVA, Inc.+............................ 8,273 297,828
Diodes, Inc.+.......................... 491 11,484
DSP Group, Inc.+....................... 278 3,461
EMCORE Corp............................ 337 3,033
Impinj, Inc.+.......................... 78 2,923
Inphi Corp.+........................... 508 21,041
InvenSense, Inc.+...................... 1,056 13,580
IXYS Corp.............................. 323 4,506
Kopin Corp.+........................... 795 3,244
Lattice Semiconductor Corp.+........... 1,549 10,626
MACOM Technology Solutions Holdings,
Inc.+................................ 405 19,796
Microsemi Corp.+....................... 1,439 67,547
Monolithic Power Systems, Inc.......... 491 44,926
Rambus, Inc.+.......................... 1,373 17,190
Semtech Corp.+......................... 817 27,901
Silicon Laboratories, Inc.+............ 523 37,211
Synaptics, Inc.+....................... 443 24,263
Xperi Corp............................. 621 20,866
--------
855,840
--------
Electronic Measurement Instruments -- 0.1%
Badger Meter, Inc...................... 362 14,390
ESCO Technologies, Inc................. 326 19,185
FARO Technologies, Inc.+............... 214 7,843
Itron, Inc.+........................... 424 27,496
Mesa Laboratories, Inc................. 38 5,313
--------
74,227
--------
Value
Security Description Shares (Note 3)
-------------------------------------------------------
Electronic Parts Distribution -- 0.2%
SYNNEX Corp............................ 370 $ 40,119
Tech Data Corp.+....................... 442 42,277
--------
82,396
--------
Electronic Security Devices -- 0.5%
Napco Security Technologies, Inc.+..... 28,271 299,673
--------
Energy-Alternate Sources -- 0.2%
Clean Energy Fuels Corp.+.............. 1,131 2,760
FuelCell Energy, Inc.+................. 320 368
FutureFuel Corp........................ 322 4,978
Green Plains, Inc...................... 468 10,764
Pacific Ethanol, Inc.+................. 369 2,509
Pattern Energy Group, Inc.............. 837 18,431
Plug Power, Inc.+...................... 2,332 5,224
Renewable Energy Group, Inc.+.......... 486 5,079
REX American Resources Corp.+.......... 73 6,912
Sunrun, Inc.+.......................... 815 4,311
TerraForm Global, Inc., Class A+....... 1,178 5,595
TerraForm Power, Inc., Class A+........ 1,128 14,201
TPI Composites, Inc.+.................. 75 1,474
Vivint Solar, Inc.+.................... 293 879
--------
83,485
--------
Engineering/R&D Services -- 0.7%
Argan, Inc............................. 171 11,431
EMCOR Group, Inc....................... 767 50,423
Exponent, Inc.......................... 320 19,568
Mistras Group, Inc.+................... 220 4,950
NV5 Global, Inc.+...................... 7,767 300,583
VSE Corp............................... 108 4,606
--------
391,561
--------
Engines-Internal Combustion -- 0.0%
Briggs & Stratton Corp................. 548 13,694
--------
Enterprise Software/Service -- 0.9%
Actua Corp.+........................... 462 6,468
American Software, Inc., Class A....... 24,386 267,514
Apptio, Inc., Class A+................. 86 1,122
Benefitfocus, Inc.+.................... 165 5,198
Blackline, Inc.+....................... 121 3,977
Coupa Software, Inc.+.................. 108 2,997
Everbridge, Inc.+...................... 112 2,600
Evolent Health, Inc., Class A+......... 194 4,511
Hortonworks, Inc.+..................... 519 5,403
LivePerson, Inc.+...................... 688 4,850
Majesco+............................... 74 408
ManTech International Corp., Class A... 318 11,289
MicroStrategy, Inc., Class A+.......... 119 22,630
MobileIron, Inc.+...................... 600 2,730
Model N, Inc.+......................... 285 3,050
Omnicell, Inc.+........................ 457 18,920
Paycom Software, Inc.+................. 557 33,559
PROS Holdings, Inc.+................... 323 7,962
Sapiens International Corp. NV......... 5,743 68,112
SPS Commerce, Inc.+.................... 212 11,715
Xactly Corp.+.......................... 294 3,410
--------
488,425
--------
53
SunAmerica Specialty Series -- AIG Small-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
-----------------------------------------------------------------------
COMMON STOCKS (continued)
Entertainment Software -- 0.1%
Glu Mobile, Inc.+..................................... 1,329 $ 3,070
Take-Two Interactive Software, Inc.+.................. 1,234 77,557
--------
80,627
--------
Environmental Consulting & Engineering -- 0.1%
Tetra Tech, Inc....................................... 733 32,215
TRC Cos., Inc.+....................................... 238 4,165
--------
36,380
--------
Environmental Monitoring & Detection -- 0.1%
MSA Safety, Inc....................................... 394 30,673
--------
Finance-Commercial -- 0.0%
Hannon Armstrong Sustainable Infrastructure Capital,
Inc.................................................. 609 13,349
NewStar Financial, Inc................................ 316 3,394
--------
16,743
--------
Finance-Consumer Loans -- 0.1%
Encore Capital Group, Inc.+........................... 306 10,205
Enova International, Inc.+............................ 342 4,856
LendingClub Corp.+.................................... 4,161 24,342
Nelnet, Inc., Class A................................. 259 11,658
Ocwen Financial Corp.+................................ 1,299 2,975
PRA Group, Inc.+...................................... 583 18,773
Regional Management Corp.+............................ 134 2,657
World Acceptance Corp.+............................... 77 4,073
--------
79,539
--------
Finance-Credit Card -- 0.1%
Blackhawk Network Holdings, Inc.+..................... 694 28,072
--------
Finance-Investment Banker/Broker -- 0.3%
Cowen Group, Inc., Class A+........................... 329 5,231
Diamond Hill Investment Group, Inc.................... 38 7,682
Evercore Partners, Inc., Class A...................... 495 36,506
FBR & Co.............................................. 79 1,430
GAIN Capital Holdings, Inc............................ 481 3,410
Greenhill & Co., Inc.................................. 357 9,032
Houlihan Lokey, Inc................................... 268 8,989
INTL. FCStone, Inc.+.................................. 193 7,209
Investment Technology Group, Inc...................... 425 8,462
KCG Holdings, Inc., Class A+.......................... 508 10,109
Ladenburg Thalmann Financial Services, Inc.+.......... 1,305 3,628
Moelis & Co., Class A................................. 299 10,973
Oppenheimer Holdings, Inc., Class A................... 127 2,197
Piper Jaffray Cos..................................... 183 11,456
PJT Partners, Inc., Class A........................... 228 7,902
Stifel Financial Corp.+............................... 810 39,585
Virtu Financial, Inc., Class A........................ 323 4,974
--------
178,775
--------
Finance-Leasing Companies -- 0.0%
Aircastle, Ltd........................................ 616 14,550
California First National Bancorp..................... 29 478
Marlin Business Services Corp......................... 106 2,698
--------
17,726
--------
Finance-Mortgage Loan/Banker -- 0.2%
Arlington Asset Investment Corp., Class A............. 290 4,222
Ellie Mae, Inc.+...................................... 413 42,027
Value
Security Description Shares (Note 3)
--------------------------------------------------------
Finance-Mortgage Loan/Banker (continued)
Federal Agricultural Mtg. Corp.,
Class C.............................. 108 $ 6,161
FNFV Group+............................ 849 11,631
Impac Mortgage Holdings, Inc.+......... 102 1,459
Nationstar Mtg. Holdings, Inc.+........ 410 6,605
PennyMac Financial Services, Inc.,
Class A+............................. 175 2,888
PHH Corp.+............................. 683 8,811
Walter Investment Management Corp.+.... 238 255
--------
84,059
--------
Finance-Other Services -- 0.1%
BGC Partners, Inc., Class A............ 2,744 31,227
WageWorks, Inc.+....................... 460 33,948
--------
65,175
--------
Financial Guarantee Insurance -- 0.2%
MBIA, Inc.+............................ 1,664 13,978
MGIC Investment Corp.+................. 4,314 45,469
NMI Holdings, Inc., Class A+........... 636 7,378
Radian Group, Inc...................... 2,724 45,981
--------
112,806
--------
Firearms & Ammunition -- 0.1%
American Outdoor Brands Corp.+......... 706 15,638
Axon Enterprise, Inc.+................. 673 16,542
Sturm Ruger & Co., Inc................. 237 14,327
--------
46,507
--------
Food-Canned -- 0.0%
Seneca Foods Corp., Class A+........... 83 3,088
--------
Food-Catering -- 0.0%
AdvancePierre Foods Holdings, Inc...... 269 10,927
--------
Food-Confectionery -- 0.0%
Amplify Snack Brands, Inc.+............ 376 3,384
Tootsie Roll Industries, Inc........... 226 8,455
--------
11,839
--------
Food-Dairy Products -- 0.3%
Dean Foods Co.......................... 1,157 22,839
Lifeway Foods, Inc.+................... 15,658 150,317
--------
173,156
--------
Food-Flour & Grain -- 0.0%
Seaboard Corp.......................... 4 16,936
--------
Food-Misc./Diversified -- 0.3%
B&G Foods, Inc......................... 830 34,860
Cal-Maine Foods, Inc................... 398 15,025
Darling Ingredients, Inc.+............. 2,079 31,455
Inventure Foods, Inc.+................. 243 899
J&J Snack Foods Corp................... 190 25,570
John B. Sanfilippo & Son, Inc.......... 108 7,938
Lancaster Colony Corp.................. 235 29,587
Snyder's-Lance, Inc.................... 1,020 35,965
TerraVia Holdings, Inc.+............... 1,014 478
--------
181,777
--------
Food-Retail -- 0.1%
Ingles Markets, Inc., Class A.......... 179 8,359
Smart & Final Stores, Inc.+............ 297 3,505
SUPERVALU, Inc.+....................... 3,436 14,087
Village Super Market, Inc., Class A.... 92 2,428
54
SunAmerica Specialty Series -- AIG Small-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
---------------------------------------------------------
COMMON STOCKS (continued)
Food-Retail (continued)
Weis Markets, Inc...................... 123 $ 7,111
--------
35,490
--------
Food-Wholesale/Distribution -- 0.8%
Calavo Growers, Inc.................... 5,136 336,921
Chefs' Warehouse, Inc.+................ 249 3,399
Fresh Del Monte Produce, Inc........... 409 25,072
Performance Food Group Co.+............ 483 12,027
SpartanNash Co......................... 475 17,480
United Natural Foods, Inc.+............ 626 25,998
--------
420,897
--------
Footwear & Related Apparel -- 0.2%
Crocs, Inc.+........................... 951 5,925
Deckers Outdoor Corp.+................. 408 24,313
Iconix Brand Group, Inc.+.............. 552 3,864
Steven Madden, Ltd.+................... 777 29,565
Weyco Group, Inc....................... 83 2,320
Wolverine World Wide, Inc.............. 1,223 29,486
--------
95,473
--------
Forestry -- 0.0%
Deltic Timber Corp..................... 135 10,445
--------
Funeral Services & Related Items -- 0.6%
Carriage Services, Inc................. 10,931 298,963
Matthews International Corp., Class A.. 404 27,694
--------
326,657
--------
Gambling (Non-Hotel) -- 0.1%
Caesars Acquisition Co., Class A+...... 614 10,714
Golden Entertainment, Inc.............. 132 1,853
Isle of Capri Casinos, Inc.+........... 323 7,449
Pinnacle Entertainment, Inc.+.......... 686 14,111
Red Rock Resorts, Inc., Class A........ 386 9,025
--------
43,152
--------
Gas-Distribution -- 0.5%
Chesapeake Utilities Corp.............. 194 14,220
Delta Natural Gas Co., Inc............. 86 2,606
New Jersey Resources Corp.............. 1,080 43,578
Northwest Natural Gas Co............... 350 20,860
ONE Gas, Inc........................... 660 45,428
South Jersey Industries, Inc........... 1,010 37,895
Southwest Gas Corp..................... 599 50,172
Spire, Inc............................. 563 38,594
WGL Holdings, Inc...................... 638 52,609
--------
305,962
--------
Gold Mining -- 0.0%
Gold Resource Corp..................... 646 2,132
--------
Golf -- 0.0%
Acushnet Holdings Corp................. 275 5,022
Callaway Golf Co....................... 1,217 14,421
--------
19,443
--------
Hazardous Waste Disposal -- 1.1%
Heritage-Crystal Clean, Inc.+.......... 25,598 385,250
Sharps Compliance Corp.+............... 49,596 213,263
US Ecology, Inc........................ 279 13,155
--------
611,668
--------
Value
Security Description Shares (Note 3)
-----------------------------------------------------------
Health Care Cost Containment -- 0.1%
CorVel Corp.+............................ 127 $ 5,651
HealthEquity, Inc.+...................... 546 24,854
--------
30,505
--------
Healthcare Safety Devices -- 0.0%
Tandem Diabetes Care, Inc.+.............. 238 227
--------
Home Furnishings -- 0.1%
American Woodmark Corp.+................. 177 16,266
Bassett Furniture Industries, Inc........ 132 3,967
Ethan Allen Interiors, Inc............... 318 9,476
Flexsteel Industries, Inc................ 82 4,356
Hooker Furniture Corp.................... 146 6,344
La-Z-Boy, Inc............................ 619 17,270
Select Comfort Corp.+.................... 546 16,871
--------
74,550
--------
Hotels/Motels -- 0.1%
Belmond, Ltd., Class A+.................. 1,079 13,380
ILG, Inc................................. 1,430 34,477
La Quinta Holdings, Inc.+................ 1,070 15,098
Marcus Corp.............................. 238 8,044
Red Lion Hotels Corp.+................... 182 1,183
--------
72,182
--------
Housewares -- 0.0%
Libbey, Inc.............................. 282 2,961
Lifetime Brands, Inc..................... 141 2,707
NACCO Industries, Inc., Class A.......... 49 4,148
--------
9,816
--------
Human Resources -- 1.6%
AMN Healthcare Services, Inc.+........... 599 24,469
Barrett Business Services, Inc........... 89 5,132
Cross Country Healthcare, Inc.+.......... 25,358 354,251
GEE Group, Inc........................... 15,077 87,447
Heidrick & Struggles International, Inc.. 235 5,053
Insperity, Inc........................... 201 18,361
Kelly Services, Inc., Class A............ 377 8,415
Kforce, Inc.............................. 316 7,173
Korn/Ferry International................. 722 23,393
On Assignment, Inc.+..................... 643 33,288
Patriot National, Inc.+.................. 139 402
Paylocity Holding Corp.+................. 278 10,964
Resources Connection, Inc................ 356 4,948
TriNet Group, Inc.+...................... 543 15,964
TrueBlue, Inc.+.......................... 543 14,851
Willdan Group, Inc.+..................... 9,880 280,296
--------
894,407
--------
Identification Systems -- 0.0%
Brady Corp., Class A..................... 577 22,474
--------
Independent Power Producers -- 0.1%
Atlantica Yield PLC...................... 743 15,484
Dynegy, Inc.+............................ 1,510 9,694
NRG Yield, Inc., Class A................. 450 7,803
NRG Yield, Inc., Class C................. 820 14,514
Ormat Technologies, Inc.................. 491 28,999
--------
76,494
--------
55
SunAmerica Specialty Series -- AIG Small-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
-------------------------------------------------------------
COMMON STOCKS (continued)
Industrial Audio & Video Products -- 0.0%
GoPro, Inc., Class A+....................... 1,304 $ 10,758
--------
Industrial Automated/Robotic -- 0.0%
Hurco Cos., Inc............................. 80 2,320
Ichor Holdings, Ltd.+....................... 86 1,668
--------
3,988
--------
Instruments-Controls -- 0.1%
Allied Motion Technologies, Inc............. 78 1,766
Control4 Corp.+............................. 258 4,360
Watts Water Technologies, Inc., Class A..... 357 22,205
Woodward, Inc............................... 667 45,136
--------
73,467
--------
Instruments-Scientific -- 0.0%
Fluidigm Corp.+............................. 374 1,848
--------
Insurance Brokers -- 0.4%
Crawford & Co., Class B..................... 21,599 235,645
eHealth, Inc.+.............................. 232 3,290
--------
238,935
--------
Insurance-Life/Health -- 0.8%
American Equity Investment Life Holding Co.. 1,080 25,618
CNO Financial Group, Inc.................... 2,260 47,618
FBL Financial Group, Inc., Class A.......... 126 8,379
Fidelity & Guaranty Life.................... 152 4,324
Health Insurance Innovations, Inc., Class A+ 17,450 292,288
Independence Holding Co..................... 90 1,706
National Western Life Group, Inc., Class A.. 27 8,268
Primerica, Inc.............................. 594 49,777
Trupanion, Inc.+............................ 184 2,924
--------
440,902
--------
Insurance-Multi-line -- 0.1%
Citizens, Inc.+............................. 599 4,223
Genworth Financial, Inc., Class A+.......... 6,359 25,691
Horace Mann Educators Corp.................. 522 20,175
Kemper Corp................................. 500 19,675
United Fire Group, Inc...................... 278 12,232
--------
81,996
--------
Insurance-Property/Casualty -- 1.7%
Ambac Financial Group, Inc.+................ 581 11,289
AMERISAFE, Inc.............................. 243 13,985
Atlas Financial Holdings, Inc.+............. 135 1,748
Baldwin & Lyons, Inc., Class B.............. 115 2,818
Donegal Group, Inc., Class A................ 106 1,766
EMC Insurance Group, Inc.................... 106 3,040
Employers Holdings, Inc..................... 411 16,440
Enstar Group, Ltd.+......................... 144 28,051
Federated National Holding Co............... 161 2,589
Global Indemnity, Ltd.+..................... 107 4,339
Hallmark Financial Services, Inc.+.......... 178 1,871
HCI Group, Inc.............................. 109 5,198
Heritage Insurance Holdings, Inc............ 343 4,150
Infinity Property & Casualty Corp........... 137 13,597
Investors Title Co.......................... 18 3,208
James River Group Holdings, Ltd............. 183 7,972
Kingstone Cos., Inc......................... 20,224 302,349
Kinsale Capital Group, Inc.................. 9,720 351,475
Value
Security Description Shares (Note 3)
------------------------------------------------------------
Insurance-Property/Casualty (continued)
National General Holdings Corp.............. 624 $ 14,190
Navigators Group, Inc....................... 286 15,458
OneBeacon Insurance Group, Ltd., Class A.... 257 4,099
RLI Corp.................................... 482 27,580
Safety Insurance Group, Inc................. 184 13,322
Selective Insurance Group, Inc.............. 718 37,911
State Auto Financial Corp................... 197 5,293
Stewart Information Services Corp........... 294 13,947
Third Point Reinsurance, Ltd.+.............. 852 10,309
United Insurance Holdings Corp.............. 220 3,357
Universal Insurance Holdings, Inc........... 421 10,967
--------
932,318
--------
Insurance-Reinsurance -- 0.7%
Argo Group International Holdings, Ltd...... 365 24,072
Blue Capital Reinsurance Holdings, Ltd...... 75 1,418
Essent Group, Ltd.+......................... 943 34,900
Greenlight Capital Re, Ltd., Class A+....... 379 8,168
Maiden Holdings, Ltd........................ 864 10,670
State National Cos., Inc.................... 20,184 296,099
WMIH Corp.+................................. 2,620 3,930
--------
379,257
--------
Internet Application Software -- 0.1%
RealNetworks, Inc.+......................... 301 1,376
VirnetX Holding Corp.+...................... 623 2,056
Zendesk, Inc.+.............................. 1,026 29,497
--------
32,929
--------
Internet Connectivity Services -- 0.6%
Boingo Wireless, Inc.+...................... 458 6,545
Cogent Communications Holdings, Inc......... 7,615 342,675
--------
349,220
--------
Internet Content-Entertainment -- 0.0%
Limelight Networks, Inc.+................... 914 2,870
Shutterstock, Inc.+......................... 243 10,505
--------
13,375
--------
Internet Content-Information/News -- 0.1%
Autobytel, Inc.+............................ 110 1,442
DHI Group, Inc.+............................ 647 2,491
HealthStream, Inc.+......................... 330 9,171
Reis, Inc................................... 110 2,068
WebMD Health Corp.+......................... 472 25,597
XO Group, Inc.+............................. 326 5,721
--------
46,490
--------
Internet Security -- 0.1%
Corindus Vascular Robotics, Inc.+........... 709 893
Imperva, Inc.+.............................. 369 16,402
Proofpoint, Inc.+........................... 517 38,966
Rapid7, Inc.+............................... 256 4,339
VASCO Data Security International, Inc.+.... 388 5,238
Zix Corp.+.................................. 687 3,731
--------
69,569
--------
Internet Telephone -- 1.3%
8x8, Inc.+.................................. 20,994 305,463
RingCentral, Inc., Class A+................. 13,416 428,641
--------
734,104
--------
56
SunAmerica Specialty Series -- AIG Small-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
----------------------------------------------------------------------
COMMON STOCKS (continued)
Investment Companies -- 0.0%
Acacia Research Corp.+................................ 645 $ 3,515
Real Industry, Inc.+.................................. 338 879
Tiptree Financial, Inc................................ 283 1,995
--------
6,389
--------
Investment Management/Advisor Services -- 1.3%
Altisource Portfolio Solutions SA+.................... 149 3,291
Associated Capital Group, Inc., Class A............... 56 1,884
Cohen & Steers, Inc................................... 268 10,693
Financial Engines, Inc................................ 676 28,730
GAMCO Investors, Inc., Class A........................ 55 1,578
Hennessy Advisors, Inc................................ 59 1,004
Janus Capital Group, Inc.............................. 1,818 24,834
Manning & Napier, Inc................................. 192 1,114
Medley Management, Inc., Class A...................... 73 562
OM Asset Management PLC............................... 517 8,045
Pzena Investment Management, Inc., Class A............ 21,820 224,528
Silvercrest Asset Management Group, Inc., Class A..... 26,014 355,091
Virtus Investment Partners, Inc....................... 64 6,810
Waddell & Reed Financial, Inc., Class A............... 1,000 17,990
Westwood Holdings Group, Inc.......................... 102 5,692
WisdomTree Investments, Inc........................... 1,484 12,391
--------
704,237
--------
Lasers-System/Components -- 0.2%
Applied Optoelectronics, Inc.+........................ 229 11,310
Coherent, Inc.+....................................... 306 65,974
Electro Scientific Industries, Inc.+.................. 353 2,464
II-VI, Inc.+.......................................... 754 24,995
--------
104,743
--------
Leisure Games -- 0.0%
Intrawest Resorts Holdings, Inc.+..................... 206 4,857
--------
Leisure Products -- 0.0%
Escalade, Inc......................................... 134 1,789
Johnson Outdoors, Inc., Class A....................... 61 2,215
Marine Products Corp.................................. 137 1,639
--------
5,643
--------
Lighting Products & Systems -- 0.1%
Universal Display Corp................................ 524 46,819
--------
Linen Supply & Related Items -- 0.1%
UniFirst Corp......................................... 193 26,866
--------
Machine Tools & Related Products -- 0.1%
Hardinge, Inc......................................... 150 1,575
Kennametal, Inc....................................... 999 41,538
Milacron Holdings Corp.+.............................. 186 3,501
--------
46,614
--------
Machinery-Construction & Mining -- 0.0%
Astec Industries, Inc................................. 244 15,458
Hyster-Yale Materials Handling, Inc................... 121 7,273
--------
22,731
--------
Machinery-Electrical -- 0.1%
Babcock & Wilcox Enterprises, Inc.+................... 588 5,510
Franklin Electric Co., Inc............................ 580 23,838
--------
29,348
--------
Value
Security Description Shares (Note 3)
--------------------------------------------------------
Machinery-Farming -- 0.0%
Alamo Group, Inc...................... 121 $ 9,566
Lindsay Corp.......................... 135 11,726
--------
21,292
--------
Machinery-General Industrial -- 0.8%
Albany International Corp., Class A... 359 17,501
Altra Industrial Motion Corp.......... 323 14,260
Applied Industrial Technologies, Inc.. 458 29,312
Chart Industries, Inc.+............... 395 14,422
DXP Enterprises, Inc.+................ 197 7,187
Gencor Industries, Inc.+.............. 99 1,643
Kadant, Inc........................... 5,516 342,819
Manitowoc Co., Inc.+.................. 1,641 9,797
Tennant Co............................ 219 16,042
--------
452,983
--------
Machinery-Material Handling -- 0.0%
Columbus McKinnon Corp................ 249 6,506
--------
Machinery-Pumps -- 0.1%
Gorman-Rupp Co........................ 225 6,439
NN, Inc............................... 338 9,329
SPX FLOW, Inc.+....................... 455 16,444
--------
32,212
--------
Marine Services -- 0.0%
Great Lakes Dredge & Dock Corp.+...... 762 3,467
--------
Medical Imaging Systems -- 0.5%
Analogic Corp......................... 160 11,496
Digirad Corp.......................... 53,297 250,496
iRadimed Corp.+....................... 51 438
--------
262,430
--------
Medical Information Systems -- 0.1%
Computer Programs & Systems, Inc...... 143 3,926
Cotiviti Holdings, Inc.+.............. 161 6,728
Medidata Solutions, Inc.+............. 696 45,539
NantHealth, Inc.+..................... 85 265
Quality Systems, Inc.+................ 659 9,397
Tabula Rasa HealthCare, Inc.+......... 63 849
--------
66,704
--------
Medical Instruments -- 0.4%
Abaxis, Inc........................... 281 12,653
AngioDynamics, Inc.+.................. 347 5,385
AtriCure, Inc.+....................... 404 8,282
Avinger, Inc.+........................ 140 79
Cardiovascular Systems, Inc.+......... 410 12,247
CONMED Corp........................... 354 17,403
CryoLife, Inc.+....................... 405 7,351
Endologix, Inc.+...................... 1,045 7,827
Entellus Medical, Inc.+............... 96 1,365
Halyard Health, Inc.+................. 593 23,423
Integra LifeSciences Holdings Corp.+.. 767 35,259
iRhythm Technologies, Inc.+........... 90 3,176
Natus Medical, Inc.+.................. 419 14,665
NuVasive, Inc.+....................... 626 45,391
Obalon Therapeutics, Inc.+............ 63 669
Spectranetics Corp.+.................. 551 15,759
TransEnterix, Inc.+................... 898 584
--------
211,518
--------
57
SunAmerica Specialty Series -- AIG Small-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
--------------------------------------------------------
COMMON STOCKS (continued)
Medical Labs & Testing Services -- 0.0%
Fulgent Genetics, Inc.+............... 49 $ 499
Invitae Corp.+........................ 358 3,949
Medpace Holdings, Inc.+............... 101 3,203
Natera, Inc.+......................... 336 3,041
Teladoc, Inc.+........................ 303 7,514
--------
18,206
--------
Medical Laser Systems -- 0.0%
Cutera, Inc.+......................... 150 2,933
IRIDEX Corp.+......................... 96 1,094
--------
4,027
--------
Medical Products -- 0.8%
Accuray, Inc.+........................ 1,029 4,682
Atrion Corp........................... 17 8,791
AxoGen, Inc.+......................... 310 3,782
Cantel Medical Corp................... 452 33,633
Cerus Corp.+.......................... 1,307 5,685
ConforMIS, Inc.+...................... 459 2,580
Exactech, Inc.+....................... 133 3,943
Glaukos Corp.+........................ 215 10,219
Globus Medical, Inc., Class A+........ 883 26,781
Haemonetics Corp.+.................... 645 27,013
Integer Holdings Corp.+............... 395 14,516
Intersect ENT, Inc.+.................. 327 6,213
Invacare Corp......................... 409 6,012
InVivo Therapeutics Holdings Corp.+... 413 1,569
K2M Group Holdings, Inc.+............. 330 7,310
LeMaitre Vascular, Inc................ 172 5,117
Luminex Corp.......................... 512 9,641
MiMedx Group, Inc.+................... 1,319 16,738
NanoString Technologies, Inc.+........ 191 3,339
Nevro Corp.+.......................... 304 28,643
Novan, Inc.+.......................... 61 332
Novocure, Ltd.+....................... 652 7,368
NxStage Medical, Inc.+................ 804 24,032
Orthofix International NV+............ 224 8,859
Penumbra, Inc.+....................... 352 30,078
Rockwell Medical, Inc.+............... 617 5,306
Surmodics, Inc.+...................... 5,688 129,971
T2 Biosystems, Inc.+.................. 187 900
Tactile Systems Technology, Inc.+..... 52 980
Wright Medical Group NV+.............. 1,303 39,598
--------
473,631
--------
Medical-Biomedical/Gene -- 2.7%
Acceleron Pharma, Inc.+............... 352 11,623
Achillion Pharmaceuticals, Inc.+...... 1,512 5,156
Acorda Therapeutics, Inc.+............ 555 8,963
Aduro Biotech, Inc.+.................. 456 4,400
Advaxis, Inc.+........................ 430 3,681
Adverum Biotechnologies, Inc.+........ 296 844
Aevi Genomic Medicine, Inc.+.......... 313 501
Agenus, Inc.+......................... 942 3,382
Alder Biopharmaceuticals, Inc.+....... 604 12,110
AMAG Pharmaceuticals, Inc.+........... 449 10,956
AnaptysBio, Inc.+..................... 65 1,734
Anavex Life Sciences Corp.+........... 420 2,365
ANI Pharmaceuticals, Inc.+............ 1,757 95,089
Value
Security Description Shares (Note 3)
-------------------------------------------------------
Medical-Biomedical/Gene (continued)
Applied Genetic Technologies Corp.+.... 162 $ 907
Aptevo Therapeutics, Inc.+............. 208 416
Aratana Therapeutics, Inc.+............ 36,167 224,235
Ardelyx, Inc.+......................... 396 5,306
Arena Pharmaceuticals, Inc.+........... 3,166 4,242
Argos Therapeutics, Inc.+.............. 135 58
Arrowhead Pharmaceuticals, Inc.+....... 779 1,207
Asterias Biotherapeutics, Inc.+........ 273 1,010
Atara Biotherapeutics, Inc.+........... 299 5,113
Athersys, Inc.+........................ 983 1,455
Audentes Therapeutics, Inc.+........... 72 1,073
Axovant Sciences, Ltd.+................ 315 7,636
Bellicum Pharmaceuticals, Inc.+........ 269 3,597
BioCryst Pharmaceuticals, Inc.+........ 947 6,004
BioTime, Inc.+......................... 824 2,802
Bluebird Bio, Inc.+.................... 515 45,809
Blueprint Medicines Corp.+............. 308 14,347
Cambrex Corp.+......................... 403 23,918
Celldex Therapeutics, Inc.+............ 1,233 4,106
Cellular Biomedicine Group, Inc.+...... 155 1,674
ChemoCentryx, Inc.+.................... 274 1,984
ChromaDex Corp.+....................... 368 1,144
Clearside Biomedical, Inc.+............ 126 1,003
Corvus Pharmaceuticals, Inc.+.......... 43 427
Curis, Inc.+........................... 1,440 3,485
Cytokinetics, Inc.+.................... 435 7,134
CytomX Therapeutics, Inc.+............. 263 4,132
CytRx Corp.+........................... 862 439
Dermira, Inc.+......................... 367 12,500
Dimension Therapeutics, Inc.+.......... 156 242
Dynavax Technologies Corp.+............ 500 2,775
Edge Therapeutics, Inc.+............... 208 2,159
Editas Medicine, Inc.+................. 87 1,640
Eiger BioPharmaceuticals, Inc.+........ 44 348
Emergent BioSolutions, Inc.+........... 418 12,502
Endocyte, Inc.+........................ 488 1,122
Enzo Biochem, Inc.+.................... 512 4,506
Epizyme, Inc.+......................... 517 9,332
Esperion Therapeutics, Inc.+........... 183 6,542
Exact Sciences Corp.+.................. 1,337 40,123
Exelixis, Inc.+........................ 2,873 64,355
FibroGen, Inc.+........................ 675 18,900
Five Prime Therapeutics, Inc.+......... 347 12,096
Flex Pharma, Inc.+..................... 135 464
Fortress Biotech, Inc.+................ 438 1,594
Foundation Medicine, Inc.+............. 172 6,106
Galena Biopharma, Inc.+................ 118 70
Geron Corp.+........................... 1,949 4,989
GlycoMimetics, Inc.+................... 131 563
Halozyme Therapeutics, Inc.+........... 1,378 19,209
Idera Pharmaceuticals, Inc.+........... 1,148 2,698
ImmunoGen, Inc.+....................... 1,087 4,718
Immunomedics, Inc.+.................... 1,233 7,065
Infinity Pharmaceuticals, Inc.+........ 633 1,361
Innoviva, Inc.+........................ 1,043 12,292
Inovio Pharmaceuticals, Inc.+.......... 855 5,378
Insmed, Inc.+.......................... 799 14,742
Intellia Therapeutics, Inc.+........... 87 1,268
Karyopharm Therapeutics, Inc.+......... 343 3,505
Kite Pharma, Inc.+..................... 552 45,308
58
SunAmerica Specialty Series -- AIG Small-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
-------------------------------------------------------------
COMMON STOCKS (continued)
Medical-Biomedical/Gene (continued)
Lexicon Pharmaceuticals, Inc.+........... 544 $ 8,492
Ligand Pharmaceuticals, Inc.+............ 244 27,125
Lion Biotechnologies, Inc.+.............. 713 4,884
Loxo Oncology, Inc.+..................... 204 9,396
MacroGenics, Inc.+....................... 410 8,860
Medicines Co.+........................... 853 42,070
Merrimack Pharmaceuticals, Inc.+......... 1,575 5,245
Momenta Pharmaceuticals, Inc.+........... 837 12,011
Myriad Genetics, Inc.+................... 871 16,018
NeoGenomics, Inc.+....................... 39,117 295,333
NewLink Genetics Corp.+.................. 278 5,196
Novavax, Inc.+........................... 3,486 2,845
Omeros Corp.+............................ 511 8,340
OncoMed Pharmaceuticals, Inc.+........... 268 1,056
Organovo Holdings, Inc.+................. 1,111 3,222
Otonomy, Inc.+........................... 309 4,125
OvaScience, Inc.+........................ 404 610
Pacific Biosciences of California, Inc.+. 983 3,873
Paratek Pharmaceuticals, Inc.+........... 233 4,998
PDL BioPharma, Inc....................... 2,133 4,799
Pfenex, Inc.+............................ 235 1,130
PharmAthene, Inc......................... 804 584
Prothena Corp. PLC+...................... 437 23,655
PTC Therapeutics, Inc.+.................. 428 5,200
Puma Biotechnology, Inc.+................ 354 14,372
REGENXBIO, Inc.+......................... 259 5,413
Retrophin, Inc.+......................... 468 9,168
Rigel Pharmaceuticals, Inc.+............. 1,566 4,682
RTI Surgical, Inc.+...................... 740 2,997
Sage Therapeutics, Inc.+................. 381 27,051
Sangamo BioSciences, Inc.+............... 897 4,306
Second Sight Medical Products, Inc.+..... 182 211
Selecta Biosciences, Inc.+............... 66 796
Senseonics Holdings, Inc.+............... 357 603
Seres Therapeutics, Inc.+................ 229 2,251
Spark Therapeutics, Inc.+................ 242 14,029
Spectrum Pharmaceuticals, Inc.+.......... 975 7,420
Stemline Therapeutics, Inc.+............. 216 1,922
Syndax Pharmaceuticals, Inc.+............ 59 560
Synthetic Biologics, Inc.+............... 976 556
Theravance Biopharma, Inc.+.............. 506 20,407
Tobira Therapeutics, Inc. CVR+(1)(2)..... 104 1,429
Tokai Pharmaceuticals, Inc.+............. 127 78
Trovagene, Inc.+......................... 362 337
Ultragenyx Pharmaceutical, Inc.+......... 487 31,358
Veracyte, Inc.+.......................... 179 1,516
Versartis, Inc.+......................... 396 7,286
WaVe Life Sciences, Ltd.+................ 95 2,005
XBiotech, Inc.+.......................... 224 2,437
ZIOPHARM Oncology, Inc.+................. 1,570 11,053
----------
1,529,249
----------
Medical-Drugs -- 3.2%
AcelRx Pharmaceuticals, Inc.+............ 455 1,183
Aclaris Therapeutics, Inc.+.............. 143 4,020
Adamas Pharmaceuticals, Inc.+............ 215 3,522
Aerie Pharmaceuticals, Inc.+............. 365 16,078
Agile Therapeutics, Inc.+................ 170 610
Aimmune Therapeutics, Inc.+.............. 338 6,571
Value
Security Description Shares (Note 3)
----------------------------------------------------------
Medical-Drugs (continued)
Amicus Therapeutics, Inc.+.............. 1,800 $ 13,824
Ampio Pharmaceuticals, Inc.+............ 566 316
Anthera Pharmaceuticals, Inc.+.......... 506 167
Array BioPharma, Inc.+.................. 2,114 18,328
BioSpecifics Technologies Corp.+........ 7,291 413,618
Cempra, Inc.+........................... 533 2,292
Chimerix, Inc.+......................... 550 3,289
Cidara Therapeutics, Inc.+.............. 136 1,054
Clovis Oncology, Inc.+.................. 463 26,803
Coherus Biosciences, Inc.+.............. 428 8,218
Collegium Pharmaceutical, Inc.+......... 209 2,050
Corcept Therapeutics, Inc.+............. 20,383 194,454
Durata Therapeutics , Inc.+(1)(2)....... 228 0
Durect Corp.+........................... 1,629 1,429
Eagle Pharmaceuticals, Inc.+............ 112 10,146
Enanta Pharmaceuticals, Inc.+........... 199 6,318
Global Blood Therapeutics, Inc.+........ 254 7,353
Horizon Pharma PLC+..................... 2,038 31,344
Ignyta, Inc.+........................... 380 3,363
Immune Design Corp.+.................... 143 937
Inotek Pharmaceuticals Corp.+........... 223 446
Insys Therapeutics, Inc.+............... 301 3,386
Intra-Cellular Therapies, Inc.+......... 442 6,108
Ironwood Pharmaceuticals, Inc.+......... 1,634 26,667
Jounce Therapeutics, Inc.+.............. 83 2,351
Kadmon Holdings, Inc.+.................. 105 289
Keryx Biopharmaceuticals, Inc.+......... 1,018 6,027
Lannett Co., Inc.+...................... 356 9,256
Lipocine, Inc.+......................... 212 899
MediciNova, Inc.+....................... 382 2,196
Minerva Neurosciences, Inc.+............ 241 1,832
MyoKardia, Inc.+........................ 144 1,879
Myovant Sciences, Ltd.+................. 128 1,663
NantKwest, Inc.+........................ 215 677
Neos Therapeutics, Inc.+................ 176 1,250
Ocular Therapeutix, Inc.+............... 230 2,291
Ophthotech Corp.+....................... 394 1,170
Pacira Pharmaceuticals, Inc.+........... 460 22,333
PharMerica Corp.+....................... 381 8,992
PRA Health Sciences, Inc.+.............. 311 19,892
Prestige Brands Holdings, Inc.+......... 671 38,522
Progenics Pharmaceuticals, Inc.+........ 50,511 400,047
Protagonist Therapeutics, Inc.+......... 98 992
Ra Pharmaceuticals, Inc.+............... 97 2,289
Radius Health, Inc.+.................... 406 15,862
Reata Pharmaceuticals, Inc., Class A+... 73 1,514
Regulus Therapeutics, Inc.+............. 500 775
SciClone Pharmaceuticals, Inc.+......... 646 6,234
Sorrento Therapeutics, Inc.+............ 369 719
Sucampo Pharmaceuticals, Inc., Class A+. 301 3,055
Supernus Pharmaceuticals, Inc.+......... 10,611 345,919
Synergy Pharmaceuticals, Inc.+.......... 2,560 10,547
Syros Pharmaceuticals, Inc.+............ 58 881
TESARO, Inc.+........................... 362 53,428
Tetraphase Pharmaceuticals, Inc.+....... 470 3,727
TG Therapeutics, Inc.+.................. 475 5,249
TherapeuticsMD, Inc.+................... 1,938 9,884
Titan Pharmaceuticals, Inc.+............ 241 711
Trevena, Inc.+.......................... 577 1,887
Vanda Pharmaceuticals, Inc.+............ 472 7,198
59
SunAmerica Specialty Series -- AIG Small-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
--------------------------------------------------------------
COMMON STOCKS (continued)
Medical-Drugs (continued)
Voyager Therapeutics, Inc.+............... 150 $ 1,566
vTv Therapeutics, Inc., Class A+.......... 98 540
Zogenix, Inc.+............................ 319 3,509
----------
1,811,946
----------
Medical-Generic Drugs -- 0.3%
Amphastar Pharmaceuticals, Inc.+.......... 10,559 159,441
AveXis, Inc.+............................. 74 5,957
Impax Laboratories, Inc.+................. 944 13,263
Teligent, Inc.+........................... 533 4,205
----------
182,866
----------
Medical-HMO -- 0.1%
Magellan Health, Inc.+.................... 294 20,227
Molina Healthcare, Inc.+.................. 546 27,186
Tivity Health, Inc.+...................... 410 13,776
Triple-S Management Corp., Class B+....... 300 5,430
----------
66,619
----------
Medical-Hospitals -- 0.1%
Community Health Systems, Inc.+........... 1,425 12,269
Nobilis Health Corp.+..................... 715 894
Quorum Health Corp.+...................... 381 1,627
Select Medical Holdings Corp.+............ 1,351 18,576
Surgery Partners, Inc.+................... 238 4,094
----------
37,460
----------
Medical-Nursing Homes -- 0.1%
Ensign Group, Inc......................... 616 11,057
Genesis Healthcare, Inc.+................. 482 1,167
Kindred Healthcare, Inc................... 1,087 10,435
National HealthCare Corp.................. 143 10,642
----------
33,301
----------
Medical-Outpatient/Home Medical -- 0.7%
Addus HomeCare Corp.+..................... 94 3,191
Almost Family, Inc.+...................... 137 6,802
Amedisys, Inc.+........................... 359 19,458
Chemed Corp............................... 204 41,082
Civitas Solutions, Inc.+.................. 193 3,435
LHC Group, Inc.+.......................... 5,862 317,134
Providence Service Corp.+................. 148 6,512
----------
397,614
----------
Medical-Wholesale Drug Distribution -- 0.1%
Owens & Minor, Inc........................ 793 27,477
----------
Metal Processors & Fabrication -- 1.7%
Ampco-Pittsburgh Corp..................... 108 1,571
CIRCOR International, Inc................. 211 14,076
Ferroglobe PLC+(1)(2)..................... 777 0
Global Brass & Copper Holdings, Inc....... 12,196 434,787
Haynes International, Inc................. 9,028 381,794
Mueller Industries, Inc................... 721 23,101
Park-Ohio Holdings Corp................... 107 4,211
RBC Bearings, Inc.+....................... 286 28,686
Rexnord Corp.+............................ 1,052 25,669
Sun Hydraulics Corp....................... 299 11,613
----------
925,508
----------
Value
Security Description Shares (Note 3)
---------------------------------------------------------
Metal Products-Distribution -- 0.6%
Lawson Products, Inc.+................. 12,881 $ 293,043
Olympic Steel, Inc..................... 117 2,638
Worthington Industries, Inc............ 567 24,665
----------
320,346
----------
Metal Products-Fasteners -- 0.0%
TriMas Corp.+.......................... 581 13,334
----------
Metal-Aluminum -- 0.1%
Century Aluminum Co.+.................. 644 8,784
Kaiser Aluminum Corp................... 222 18,739
----------
27,523
----------
Metal-Diversified -- 0.0%
Ferroglobe PLC......................... 843 8,135
----------
Metal-Iron -- 0.0%
Cliffs Natural Resources, Inc.+........ 3,571 23,997
----------
Miscellaneous Manufacturing -- 0.1%
American Railcar Industries, Inc....... 99 4,153
FreightCar America, Inc................ 154 2,011
Hillenbrand, Inc....................... 747 27,565
John Bean Technologies Corp............ 397 35,194
----------
68,923
----------
Motion Pictures & Services -- 0.1%
Eros International PLC+................ 381 3,791
IMAX Corp.+............................ 747 22,783
----------
26,574
----------
MRI/Medical Diagnostic Imaging -- 0.5%
RadNet, Inc.+.......................... 46,983 284,247
----------
Multimedia -- 0.2%
E.W. Scripps Co., Class A+............. 768 17,111
Entravision Communications Corp.,
Class A.............................. 838 5,196
Liberty Media Corp.-Liberty Braves,
Series A+............................ 117 2,905
Liberty Media Corp.-Liberty Braves,
Series C+............................ 405 9,931
Liberty Media Corp.-Liberty Formula
One, Series A+....................... 294 9,969
Liberty Media Corp.-Liberty Formula
One, Series C+....................... 595 20,837
Media General, Inc. CVR+(1)(2)......... 1,299 403
Meredith Corp.......................... 475 27,811
----------
94,163
----------
Networking Products -- 1.9%
A10 Networks, Inc.+.................... 567 4,592
Black Box Corp......................... 193 1,911
Calix, Inc.+........................... 531 3,558
Extreme Networks, Inc.+................ 56,250 439,594
Gigamon, Inc.+......................... 419 13,282
Infinera Corp.+........................ 1,778 17,638
LogMeIn, Inc........................... 659 74,467
NeoPhotonics Corp.+.................... 397 3,081
NETGEAR, Inc.+......................... 407 19,190
Silicom, Ltd........................... 8,833 479,013
----------
1,056,326
----------
Non-Ferrous Metals -- 0.0%
Materion Corp.......................... 256 9,741
----------
60
SunAmerica Specialty Series -- AIG Small-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
----------------------------------------------------------------
COMMON STOCKS (continued)
Non-Hazardous Waste Disposal -- 0.0%
Advanced Disposal Services, Inc.+............ 265 $ 6,302
Casella Waste Systems, Inc., Class A+........ 499 7,510
--------
13,812
--------
Office Automation & Equipment -- 0.0%
Eastman Kodak Co.+........................... 219 2,409
--------
Office Furnishings-Original -- 0.2%
CompX International, Inc..................... 20 298
Herman Miller, Inc........................... 756 25,024
HNI Corp..................................... 572 26,747
Interface, Inc............................... 835 16,616
Kimball International, Inc., Class B......... 475 8,441
Knoll, Inc................................... 619 14,831
Steelcase, Inc., Class A..................... 1,111 18,942
--------
110,899
--------
Office Supplies & Forms -- 0.0%
ACCO Brands Corp.+........................... 1,372 19,551
--------
Oil & Gas Drilling -- 0.0%
Atwood Oceanics, Inc.+....................... 959 7,509
Parker Drilling Co.+......................... 1,558 2,571
Seadrill, Ltd.+.............................. 4,883 3,368
--------
13,448
--------
Oil Companies-Exploration & Production -- 0.9%
Abraxas Petroleum Corp.+..................... 107,244 200,546
Bill Barrett Corp.+.......................... 780 2,995
California Resources Corp.+.................. 409 4,785
Callon Petroleum Co.+........................ 2,352 27,848
Carrizo Oil & Gas, Inc.+..................... 781 19,642
Cobalt International Energy, Inc.+........... 5,271 2,062
Contango Oil & Gas Co.+...................... 282 2,019
Denbury Resources, Inc.+..................... 4,543 10,085
Earthstone Energy, Inc.+..................... 19 256
Eclipse Resources Corp.+..................... 629 1,264
EP Energy Corp., Class A+.................... 499 2,256
Erin Energy Corp.+........................... 185 379
Evolution Petroleum Corp..................... 313 2,504
EXCO Resources, Inc.+........................ 1,808 886
Isramco, Inc.+............................... 7 799
Jagged Peak Energy, Inc.+.................... 392 4,367
Jones Energy, Inc., Class A+................. 782 1,564
Matador Resources Co.+....................... 1,120 24,282
Noble Energy, Inc............................ 283 6,218
Northern Oil and Gas, Inc.+.................. 603 1,357
Oasis Petroleum, Inc.+....................... 2,946 35,175
Panhandle Oil and Gas, Inc., Class A......... 196 3,714
PDC Energy, Inc.+............................ 708 39,103
Ring Energy, Inc.+........................... 523 6,276
RSP Permian, Inc.+........................... 1,242 47,258
Sanchez Energy Corp.+........................ 854 6,610
SRC Energy, Inc.+............................ 2,352 17,734
Unit Corp.+.................................. 651 13,990
W&T Offshore, Inc.+.......................... 457 932
WildHorse Resource Development Corp.+........ 250 2,728
--------
489,634
--------
Oil Field Machinery & Equipment -- 0.1%
Exterran Corp.+.............................. 408 11,167
Value
Security Description Shares (Note 3)
------------------------------------------------------------
Oil Field Machinery & Equipment (continued)
Flotek Industries, Inc.+.................. 671 $ 8,058
Forum Energy Technologies, Inc.+.......... 802 13,554
Natural Gas Services Group, Inc.+......... 157 4,302
Thermon Group Holdings, Inc.+............. 410 8,405
--------
45,486
--------
Oil Refining & Marketing -- 0.1%
Adams Resources & Energy, Inc............. 23 934
Alon USA Energy, Inc...................... 406 4,908
CVR Energy, Inc........................... 204 4,466
Delek US Holdings, Inc.................... 795 19,136
Par Pacific Holdings, Inc.+............... 386 6,319
Trecora Resources+........................ 255 2,818
Western Refining, Inc..................... 1,019 35,145
--------
73,726
--------
Oil-Field Services -- 0.3%
Archrock, Inc............................. 898 10,596
Bristow Group, Inc........................ 431 5,763
CARBO Ceramics, Inc.+..................... 282 1,937
Era Group, Inc.+.......................... 251 3,190
Helix Energy Solutions Group, Inc.+....... 1,750 10,710
Independence Contract Drilling, Inc.+..... 385 1,775
Keane Group, Inc.+........................ 396 5,473
Mammoth Energy Services, Inc.+............ 98 1,891
Matrix Service Co.+....................... 343 4,030
McDermott International, Inc.+............ 3,055 19,980
MRC Global, Inc.+......................... 1,184 21,584
Newpark Resources, Inc.+.................. 1,071 8,193
NOW, Inc.+................................ 1,351 22,981
Oil States International, Inc.+........... 648 19,278
PHI, Inc.+................................ 150 1,760
Pioneer Energy Services Corp.+............ 940 2,867
SEACOR Holdings, Inc.+.................... 205 13,460
Tesco Corp.+.............................. 586 3,838
TETRA Technologies, Inc.+................. 1,434 4,775
Willbros Group, Inc.+..................... 558 1,535
--------
165,616
--------
Optical Recognition Equipment -- 0.0%
Digimarc Corp.+........................... 107 3,087
--------
Optical Supplies -- 0.0%
STAAR Surgical Co.+....................... 516 5,366
--------
Paper & Related Products -- 1.1%
Clearwater Paper Corp.+................... 217 10,546
Neenah Paper, Inc......................... 3,960 310,266
Orchids Paper Products Co................. 10,142 246,958
P.H. Glatfelter Co........................ 560 12,046
Schweitzer-Mauduit International, Inc..... 390 16,789
--------
596,605
--------
Patient Monitoring Equipment -- 0.2%
Insulet Corp.+............................ 728 31,602
Masimo Corp.+............................. 517 53,117
--------
84,719
--------
Pharmacy Services -- 0.0%
BioScrip, Inc.+........................... 1,412 2,146
Diplomat Pharmacy, Inc.+.................. 588 9,173
--------
11,319
--------
61
SunAmerica Specialty Series -- AIG Small-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
----------------------------------------------------------------
COMMON STOCKS (continued)
Physical Therapy/Rehabilitation Centers -- 0.2%
AAC Holdings, Inc.+........................... 127 $ 909
HealthSouth Corp.............................. 1,121 52,575
U.S. Physical Therapy, Inc.................... 987 64,747
--------
118,231
--------
Pipelines -- 0.1%
SemGroup Corp., Class A....................... 836 27,839
--------
Platinum -- 0.1%
Stillwater Mining Co.+........................ 1,548 27,833
--------
Pollution Control -- 0.0%
CECO Environmental Corp....................... 376 4,245
--------
Poultry -- 0.1%
Sanderson Farms, Inc.......................... 257 29,755
--------
Power Converter/Supply Equipment -- 0.8%
Advanced Energy Industries, Inc.+............. 500 36,900
Energous Corp.+............................... 191 2,410
Generac Holdings, Inc.+....................... 781 27,468
Powell Industries, Inc........................ 110 3,794
SPX Corp.+.................................... 535 12,872
Vicor Corp.+.................................. 18,807 338,526
--------
421,970
--------
Precious Metals -- 0.0%
Coeur Mining, Inc.+........................... 2,276 20,621
--------
Printing-Commercial -- 0.2%
ARC Document Solutions, Inc.+................. 529 1,947
Cimpress NV+.................................. 317 26,019
Deluxe Corp................................... 616 44,296
Ennis, Inc.................................... 328 5,773
Quad/Graphics, Inc............................ 373 9,795
--------
87,830
--------
Private Equity -- 0.0%
Fifth Street Asset Management, Inc............ 64 301
Kennedy-Wilson Holdings, Inc.................. 1,045 21,318
--------
21,619
--------
Protection/Safety -- 0.6%
Landauer, Inc................................. 5,971 314,075
--------
Publishing-Books -- 0.1%
Houghton Mifflin Harcourt Co.+................ 1,601 18,411
Scholastic Corp............................... 347 15,001
--------
33,412
--------
Publishing-Newspapers -- 0.1%
Daily Journal Corp.+.......................... 13 2,717
Gannett Co., Inc.............................. 1,517 12,682
New York Times Co., Class A................... 1,572 22,716
tronc, Inc.+.................................. 344 4,933
--------
43,048
--------
Publishing-Periodicals -- 0.0%
Time, Inc..................................... 1,298 19,730
Value Line, Inc............................... 13 227
--------
19,957
--------
Racetracks -- 0.1%
Churchill Downs, Inc.......................... 172 28,690
Value
Security Description Shares (Note 3)
--------------------------------------------------------------
Racetracks (continued)
Empire Resorts, Inc.+....................... 43 $ 1,075
International Speedway Corp., Class A....... 328 12,169
Penn National Gaming, Inc.+................. 1,052 19,441
Speedway Motorsports, Inc................... 150 2,707
-------
64,082
-------
Radio -- 0.0%
Entercom Communications Corp., Class A...... 333 4,212
Radio One, Inc., Class D+................... 318 954
Saga Communications, Inc., Class A.......... 46 2,357
Salem Media Group, Inc...................... 141 1,079
Townsquare Media, Inc., Class A+............ 109 1,319
-------
9,921
-------
Real Estate Investment Trusts -- 4.3%
Acadia Realty Trust......................... 1,000 29,080
AG Mtg. Investment Trust, Inc............... 362 6,860
Agree Realty Corp........................... 313 15,174
Alexander's, Inc............................ 27 11,740
Altisource Residential Corp................. 675 9,707
American Assets Trust, Inc.................. 503 21,543
Anworth Mtg. Asset Corp..................... 1,234 7,231
Apollo Commercial Real Estate Finance, Inc.. 999 19,271
Ares Commercial Real Estate Corp............ 345 4,771
Armada Hoffler Properties, Inc.............. 400 5,704
ARMOUR Residential REIT, Inc................ 474 11,409
Ashford Hospitality Prime, Inc.............. 364 3,855
Ashford Hospitality Trust, Inc.............. 1,009 6,306
Bluerock Residential Growth REIT, Inc....... 283 3,526
Capstead Mtg. Corp.......................... 1,232 13,724
CareTrust REIT, Inc......................... 807 13,735
CatchMark Timber Trust, Inc., Class A....... 500 5,855
CBL & Associates Properties, Inc............ 2,132 19,721
Cedar Realty Trust, Inc..................... 1,065 5,730
Chatham Lodging Trust....................... 484 9,370
Chesapeake Lodging Trust.................... 767 17,879
City Office REIT, Inc....................... 323 4,054
Clipper Realty, Inc......................... 22 242
Colony Starwood Homes....................... 917 31,701
Community Healthcare Trust, Inc............. 161 3,980
CorEnergy Infrastructure Trust, Inc......... 153 5,581
CoreSite Realty Corp........................ 422 41,293
Cousins Properties, Inc..................... 4,562 38,731
CYS Investments, Inc........................ 1,899 16,198
DiamondRock Hospitality Co.................. 2,548 28,053
DuPont Fabros Technology, Inc............... 944 48,663
Dynex Capital, Inc.......................... 578 4,000
Easterly Government Properties, Inc......... 399 8,028
EastGroup Properties, Inc................... 406 31,769
Education Realty Trust, Inc................. 925 35,862
Farmland Partners, Inc...................... 322 3,510
FelCor Lodging Trust, Inc................... 1,760 13,640
First Industrial Realty Trust, Inc.......... 1,460 41,084
First Potomac Realty Trust.................. 749 8,239
Four Corners Property Trust, Inc............ 779 18,174
Franklin Street Properties Corp............. 1,306 15,842
GEO Group, Inc.............................. 1,544 51,429
Getty Realty Corp........................... 338 8,653
Gladstone Commercial Corp................... 287 6,400
Global Medical REIT, Inc.................... 193 1,789
62
SunAmerica Specialty Series -- AIG Small-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
-------------------------------------------------------
COMMON STOCKS (continued)
Real Estate Investment Trusts
(continued)
Global Net Lease, Inc.................. 843 $19,920
Government Properties Income Trust..... 905 19,295
Gramercy Property Trust................ 1,781 49,494
Great Ajax Corp........................ 166 2,258
Healthcare Realty Trust, Inc........... 1,432 46,970
Hersha Hospitality Trust............... 533 9,829
Hudson Pacific Properties, Inc......... 1,550 53,258
Independence Realty Trust, Inc......... 708 6,514
InfraREIT, Inc.+....................... 513 9,798
Invesco Mtg. Capital, Inc.............. 1,422 23,193
Investors Real Estate Trust............ 1,564 9,243
iStar, Inc.+........................... 873 10,677
Kite Realty Group Trust................ 1,047 21,317
Ladder Capital Corp.................... 543 7,944
LaSalle Hotel Properties............... 1,351 38,585
Lexington Realty Trust................. 2,908 29,574
LTC Properties, Inc.................... 485 23,202
Mack-Cali Realty Corp.................. 1,136 30,729
MedEquities Realty Trust, Inc.......... 198 2,340
Medical Properties Trust, Inc.......... 3,711 48,503
Monmouth Real Estate Investment Corp... 812 12,180
Monogram Residential Trust, Inc........ 2,176 22,152
MTGE Investment Corp................... 593 10,674
National Health Investors, Inc......... 472 34,536
National Storage Affiliates Trust...... 531 13,010
New Residential Investment Corp........ 3,785 63,096
New Senior Investment Group, Inc....... 985 10,264
New York Mortgage Trust, Inc........... 1,421 9,109
NexPoint Residential Trust, Inc........ 231 5,546
NorthStar Realty Europe Corp........... 693 8,060
One Liberty Properties, Inc............ 169 4,103
Orchid Island Capital, Inc............. 388 4,113
Owens Realty Mortgage, Inc............. 129 2,343
Parkway, Inc........................... 544 10,962
Pebblebrook Hotel Trust................ 907 26,992
Pennsylvania Real Estate Investment
Trust................................ 859 11,897
PennyMac Mortgage Investment Trust..... 880 15,734
Physicians Realty Trust................ 1,947 38,239
Potlatch Corp.......................... 523 23,561
Preferred Apartment Communities, Inc.,
Class A.............................. 293 4,146
PS Business Parks, Inc................. 253 30,750
QTS Realty Trust, Inc., Class A........ 594 31,743
RAIT Financial Trust................... 1,185 3,638
Ramco-Gershenson Properties Trust...... 1,015 13,530
Redwood Trust, Inc..................... 984 16,797
Resource Capital Corp.................. 390 3,647
Retail Opportunity Investments Corp.... 1,346 27,728
Rexford Industrial Realty, Inc......... 847 21,124
RLJ Lodging Trust...................... 1,547 33,245
Ryman Hospitality Properties, Inc...... 551 35,143
Sabra Health Care REIT, Inc............ 811 22,051
Saul Centers, Inc...................... 123 7,386
Select Income REIT..................... 805 20,173
Seritage Growth Properties, Class A.... 322 13,363
Silver Bay Realty Trust Corp........... 428 9,172
STAG Industrial, Inc................... 1,043 27,493
Summit Hotel Properties, Inc........... 1,174 19,406
Sunstone Hotel Investors, Inc.......... 2,741 40,813
Value
Security Description Shares (Note 3)
---------------------------------------------------------------
Real Estate Investment Trusts (continued)
Terreno Realty Corp........................ 550 $ 16,984
Tier REIT, Inc............................. 617 10,680
UMH Properties, Inc........................ 23,676 379,290
Universal Health Realty Income Trust....... 158 11,021
Urban Edge Properties...................... 1,139 29,045
Urstadt Biddle Properties, Inc., Class A... 337 6,625
Washington Prime Group, Inc................ 2,354 20,715
Washington Real Estate Investment Trust.... 932 29,516
Western Asset Mortgage Capital Corp........ 528 5,560
Whitestone REIT............................ 337 4,226
Xenia Hotels & Resorts, Inc................ 1,308 22,838
----------
2,416,168
----------
Real Estate Management/Services -- 0.1%
Griffin Industrial Realty, Inc............. 7 212
HFF, Inc., Class A......................... 461 14,475
Marcus & Millichap, Inc.+.................. 186 4,799
RE/MAX Holdings, Inc., Class A............. 228 13,486
----------
32,972
----------
Real Estate Operations & Development -- 0.1%
Alexander & Baldwin, Inc................... 587 27,008
Consolidated-Tomoka Land Co................ 51 2,766
Forestar Group, Inc.+...................... 533 7,542
FRP Holdings, Inc.+........................ 80 3,416
RMR Group, Inc., Class A................... 87 4,589
St. Joe Co.+............................... 650 11,375
Stratus Properties, Inc.................... 79 2,358
Trinity Place Holdings, Inc.+.............. 270 1,925
----------
60,979
----------
Recreational Centers -- 0.0%
ClubCorp Holdings, Inc..................... 829 11,150
Planet Fitness, Inc., Class A.............. 329 6,843
----------
17,993
----------
Recreational Vehicles -- 0.1%
Camping World Holdings, Inc., Class A...... 152 4,700
LCI Industries............................. 300 30,345
Malibu Boats, Inc., Class A+............... 232 5,345
MCBC Holdings, Inc......................... 98 1,642
----------
42,032
----------
Recycling -- 0.0%
Aqua Metals, Inc.+......................... 136 2,244
----------
Rental Auto/Equipment -- 0.1%
Aaron's, Inc............................... 829 29,794
CAI International, Inc.+................... 201 4,145
McGrath RentCorp........................... 301 10,478
Neff Corp., Class A+....................... 122 2,147
Rent-A-Center, Inc......................... 669 7,152
Textainer Group Holdings, Ltd.............. 293 4,380
----------
58,096
----------
Research & Development -- 0.1%
Albany Molecular Research, Inc.+........... 333 5,332
INC Research Holdings, Inc., Class A+...... 524 23,580
PAREXEL International Corp.+............... 663 42,319
----------
71,231
----------
63
SunAmerica Specialty Series -- AIG Small-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
-------------------------------------------------------
COMMON STOCKS (continued)
Resorts/Theme Parks -- 0.1%
Marriott Vacations Worldwide Corp...... 283 $ 31,181
SeaWorld Entertainment, Inc............ 863 15,128
--------
46,309
--------
Respiratory Products -- 0.7%
Inogen, Inc.+.......................... 4,530 375,492
--------
Retail-Apparel/Shoe -- 0.4%
Abercrombie & Fitch Co., Class A....... 879 10,539
American Eagle Outfitters, Inc......... 2,103 29,631
Ascena Retail Group, Inc.+............. 2,235 8,739
Boot Barn Holdings, Inc.+.............. 171 1,814
Buckle, Inc............................ 368 6,882
Caleres, Inc........................... 552 15,909
Cato Corp., Class A.................... 328 7,400
Chico's FAS, Inc....................... 1,653 22,844
Children's Place, Inc.................. 240 27,552
Destination XL Group, Inc.+............ 469 1,196
DSW, Inc., Class A..................... 847 17,465
Duluth Holdings, Inc., Class B+........ 123 2,724
Express, Inc.+......................... 959 8,276
Finish Line, Inc., Class A............. 538 8,506
Francesca's Holdings Corp.+............ 481 7,590
Genesco, Inc.+......................... 265 14,125
Guess?, Inc............................ 789 8,805
Shoe Carnival, Inc..................... 169 4,288
Stein Mart, Inc........................ 401 990
Tailored Brands, Inc................... 631 7,780
Tilly's, Inc., Class A................. 150 1,434
Vera Bradley, Inc.+.................... 260 2,379
Winmark Corp........................... 27 3,486
--------
220,354
--------
Retail-Appliances -- 0.0%
Conn's, Inc.+.......................... 260 4,576
--------
Retail-Automobile -- 0.2%
America's Car-Mart, Inc.+.............. 102 3,805
Asbury Automotive Group, Inc.+......... 251 15,361
Group 1 Automotive, Inc................ 267 18,410
Lithia Motors, Inc., Class A........... 299 28,569
Rush Enterprises, Inc., Class A+....... 380 14,345
Rush Enterprises, Inc., Class B+....... 83 2,875
Sonic Automotive, Inc., Class A........ 359 7,036
--------
90,401
--------
Retail-Bookstores -- 0.0%
Barnes & Noble Education, Inc.+........ 516 5,372
Barnes & Noble, Inc.................... 815 6,968
--------
12,340
--------
Retail-Building Products -- 0.1%
At Home Group, Inc.+................... 106 1,856
BMC Stock Holdings, Inc.+.............. 711 16,566
Foundation Building Materials, Inc.+... 134 2,170
GMS, Inc.+............................. 90 3,254
Lumber Liquidators Holdings, Inc.+..... 338 8,298
Tile Shop Holdings, Inc................ 420 8,967
--------
41,111
--------
Value
Security Description Shares (Note 3)
------------------------------------------------------------
Retail-Computer Equipment -- 0.0%
PC Connection, Inc.......................... 146 $ 4,196
--------
Retail-Discount -- 0.1%
Big Lots, Inc............................... 563 28,426
Citi Trends, Inc............................ 184 3,457
Fred's, Inc., Class A....................... 455 6,697
HSN, Inc.................................... 393 14,502
Ollie's Bargain Outlet Holdings, Inc.+...... 259 9,920
Tuesday Morning Corp.+...................... 579 1,882
--------
64,884
--------
Retail-Hair Salons -- 0.0%
Regis Corp.+................................ 478 5,215
--------
Retail-Home Furnishings -- 0.7%
Haverty Furniture Cos., Inc................. 252 6,212
Kirkland's, Inc.+........................... 191 2,246
Pier 1 Imports, Inc......................... 56,749 382,488
RH+......................................... 499 23,937
--------
414,883
--------
Retail-Jewelry -- 0.0%
Movado Group, Inc........................... 197 4,610
--------
Retail-Leisure Products -- 0.0%
MarineMax, Inc.+............................ 318 6,471
Party City Holdco, Inc.+.................... 346 5,536
West Marine, Inc.+.......................... 236 2,587
--------
14,594
--------
Retail-Major Department Stores -- 0.0%
Sears Holdings Corp.+....................... 144 1,472
Sears Hometown and Outlet Stores, Inc.+..... 144 482
--------
1,954
--------
Retail-Misc./Diversified -- 0.2%
Container Store Group, Inc.+................ 205 845
FirstCash, Inc.............................. 602 31,274
Five Below, Inc.+........................... 676 33,205
Gaia, Inc.+................................. 89 975
PriceSmart, Inc............................. 252 21,911
--------
88,210
--------
Retail-Office Supplies -- 0.1%
Office Depot, Inc........................... 6,559 32,598
--------
Retail-Pawn Shops -- 0.0%
EZCORP, Inc., Class A+...................... 651 5,892
--------
Retail-Pet Food & Supplies -- 0.0%
Freshpet, Inc.+............................. 286 3,361
PetMed Express, Inc......................... 255 5,890
--------
9,251
--------
Retail-Regional Department Stores -- 0.0%
Stage Stores, Inc........................... 329 948
--------
Retail-Restaurants -- 2.2%
Biglari Holdings, Inc.+..................... 11 4,693
BJ's Restaurants, Inc.+..................... 266 11,997
Bloomin' Brands, Inc........................ 1,313 28,479
Bob Evans Farms, Inc........................ 248 16,551
Bojangles', Inc.+........................... 126 2,766
Buffalo Wild Wings, Inc.+................... 221 34,818
64
SunAmerica Specialty Series -- AIG Small-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
------------------------------------------------------------------
COMMON STOCKS (continued)
Retail-Restaurants (continued)
Carrols Restaurant Group, Inc.+............... 443 $ 6,202
Cheesecake Factory, Inc....................... 577 37,020
Chuy's Holdings, Inc.+........................ 210 6,258
Cracker Barrel Old Country Store, Inc......... 243 38,926
Dave & Buster's Entertainment, Inc.+.......... 480 30,725
Del Frisco's Restaurant Group, Inc.+.......... 303 5,212
Del Taco Restaurants, Inc.+................... 297 3,905
Denny's Corp.+................................ 35,854 455,346
DineEquity, Inc............................... 224 12,665
El Pollo Loco Holdings, Inc.+................. 260 3,263
Fiesta Restaurant Group, Inc.+................ 343 8,352
Fogo De Chao, Inc.+........................... 63 1,068
Habit Restaurants, Inc., Class A+............. 172 3,251
J Alexander's Holdings, Inc.+................. 171 1,881
Jack in the Box, Inc.......................... 411 41,910
Jamba, Inc.+.................................. 162 1,380
Kona Grill, Inc.+............................. 106 604
Luby's, Inc.+................................. 249 732
Nathan's Famous, Inc.+........................ 38 2,592
Noodles & Co.+................................ 141 825
Papa John's International, Inc................ 345 27,276
Potbelly Corp.+............................... 306 4,269
Red Robin Gourmet Burgers, Inc.+.............. 162 9,517
Ruby Tuesday, Inc.+........................... 765 1,951
Ruth's Hospitality Group, Inc................. 17,194 342,160
Shake Shack, Inc., Class A+................... 201 6,822
Sonic Corp.................................... 559 15,026
Texas Roadhouse, Inc.......................... 838 39,285
Wingstop, Inc................................. 202 5,945
Zoe's Kitchen, Inc.+.......................... 245 4,422
----------
1,218,094
----------
Retail-Sporting Goods -- 0.0%
Big 5 Sporting Goods Corp..................... 228 3,511
Hibbett Sports, Inc.+......................... 294 7,644
Sportsman's Warehouse Holdings, Inc.+......... 331 1,354
Zumiez, Inc.+................................. 232 4,164
----------
16,673
----------
Retail-Toy Stores -- 0.0%
Build-A-Bear Workshop, Inc.+.................. 175 1,820
----------
Retail-Vitamins & Nutrition Supplements -- 0.0%
GNC Holdings, Inc., Class A................... 884 6,878
Vitamin Shoppe, Inc.+......................... 310 5,983
----------
12,861
----------
Retirement/Aged Care -- 0.0%
Capital Senior Living Corp.+.................. 362 5,057
----------
Rubber-Tires -- 0.1%
Cooper Tire & Rubber Co....................... 701 26,848
----------
Rubber/Plastic Products -- 0.1%
Myers Industries, Inc......................... 278 4,531
Proto Labs, Inc.+............................. 311 18,038
Trinseo SA.................................... 344 22,842
----------
45,411
----------
Satellite Telecom -- 0.1%
DigitalGlobe, Inc.+........................... 800 25,760
Value
Security Description Shares (Note 3)
------------------------------------------------------------
Satellite Telecom (continued)
Globalstar, Inc.+........................... 4,819 $ 9,204
Intelsat SA+................................ 375 1,106
Iridium Communications, Inc.+............... 1,063 11,268
Loral Space & Communications, Inc.+......... 165 6,328
--------
53,666
--------
Savings & Loans/Thrifts -- 1.7%
Astoria Financial Corp...................... 1,187 24,203
Banc of California, Inc..................... 630 13,671
Bank Mutual Corp............................ 527 4,848
BankFinancial Corp.......................... 194 2,867
Bear State Financial, Inc................... 231 2,167
Beneficial Bancorp, Inc..................... 907 14,512
Berkshire Hills Bancorp, Inc................ 397 14,888
BofI Holding, Inc.+......................... 757 18,085
Brookline Bancorp, Inc...................... 893 12,993
BSB Bancorp, Inc.+.......................... 103 3,002
Capitol Federal Financial, Inc.............. 1,612 23,584
Charter Financial Corp...................... 175 3,211
Clifton Bancorp, Inc........................ 281 4,693
Dime Community Bancshares, Inc.............. 376 7,313
ESSA Bancorp, Inc........................... 104 1,574
EverBank Financial Corp..................... 1,302 25,389
First Defiance Financial Corp............... 111 5,954
First Financial Northwest, Inc.............. 94 1,474
Flagstar Bancorp, Inc.+..................... 269 7,866
Flushing Financial Corp..................... 357 10,524
Greene County Bancorp, Inc.................. 38 941
Hingham Institution for Savings............. 15 2,692
Home Bancorp, Inc........................... 73 2,711
HomeStreet, Inc.+........................... 303 7,878
HomeTrust Bancshares, Inc.+................. 212 5,300
Investors Bancorp, Inc...................... 3,765 52,145
Meridian Bancorp, Inc....................... 10,376 182,099
Meta Financial Group, Inc................... 3,445 292,480
MutualFirst Financial, Inc.................. 69 2,274
Northfield Bancorp, Inc..................... 543 9,980
Northwest Bancshares, Inc................... 1,239 19,997
OceanFirst Financial Corp................... 323 8,931
Oritani Financial Corp...................... 498 8,441
Pacific Premier Bancorp, Inc.+.............. 456 16,667
Provident Financial Holdings, Inc........... 84 1,615
Provident Financial Services, Inc........... 788 20,244
SI Financial Group, Inc..................... 142 2,123
Southern Missouri Bancorp, Inc.............. 74 2,464
Sterling Bancorp............................ 1,608 37,386
Territorial Bancorp, Inc.................... 80 2,476
United Community Financial Corp............. 600 5,124
United Financial Bancorp, Inc............... 646 11,156
Washington Federal, Inc..................... 1,148 38,688
Waterstone Financial, Inc................... 326 6,194
WSFS Financial Corp......................... 368 17,370
--------
960,194
--------
Schools -- 0.3%
American Public Education, Inc.+............ 198 4,376
Bridgepoint Education, Inc.+................ 229 2,794
Bright Horizons Family Solutions, Inc.+..... 556 42,323
Cambium Learning Group, Inc.+............... 172 837
Capella Education Co........................ 146 13,914
65
SunAmerica Specialty Series -- AIG Small-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
---------------------------------------------------------------------
COMMON STOCKS (continued)
Schools (continued)
Career Education Corp.+............................ 862 $ 8,749
DeVry Education Group, Inc......................... 792 29,977
Grand Canyon Education, Inc.+...................... 568 42,691
K12, Inc.+......................................... 434 8,181
Laureate Education, Inc.+.......................... 422 5,828
Strayer Education, Inc............................. 134 11,619
--------
171,289
--------
Security Services -- 0.1%
Alarm.com Holdings, Inc.+.......................... 132 4,305
Ascent Capital Group, Inc., Class A+............... 131 1,678
Brink's Co......................................... 568 34,875
--------
40,858
--------
Seismic Data Collection -- 0.0%
Dawson Geophysical Co.+............................ 258 1,298
Geospace Technologies Corp.+....................... 167 2,762
--------
4,060
--------
Semiconductor Components-Integrated Circuits -- 0.3%
Cirrus Logic, Inc.+................................ 794 51,094
Exar Corp.+........................................ 527 6,856
Integrated Device Technology, Inc.+................ 1,704 40,879
MaxLinear, Inc.+................................... 705 19,620
Power Integrations, Inc............................ 346 22,819
Sigma Designs, Inc.+............................... 461 2,858
--------
144,126
--------
Semiconductor Equipment -- 1.0%
Axcelis Technologies, Inc.+........................ 374 7,200
Brooks Automation, Inc............................. 859 21,698
Cabot Microelectronics Corp........................ 302 23,662
Cohu, Inc.......................................... 340 6,368
Entegris, Inc.+.................................... 1,786 44,293
FormFactor, Inc.+.................................. 27,760 308,136
MKS Instruments, Inc............................... 674 52,740
Nanometrics, Inc.+................................. 303 9,561
Photronics, Inc.+.................................. 842 9,683
Rudolph Technologies, Inc.+........................ 385 9,432
Ultra Clean Holdings, Inc.+........................ 412 7,927
Ultratech, Inc.+................................... 278 8,485
Veeco Instruments, Inc.+........................... 513 16,929
Xcerra Corp.+...................................... 682 6,684
--------
532,798
--------
Silver Mining -- 0.1%
Hecla Mining Co.................................... 4,822 26,280
--------
Specified Purpose Acquisitions -- 0.0%
Wins Finance Holdings, Inc.+....................... 15 688
--------
Steel Pipe & Tube -- 0.1%
Advanced Drainage Systems, Inc..................... 448 10,326
Atkore International Group, Inc.+.................. 153 4,018
Mueller Water Products, Inc., Class A.............. 1,965 22,106
Omega Flex, Inc.................................... 36 2,022
TimkenSteel Corp.+................................. 507 7,646
--------
46,118
--------
Steel-Producers -- 0.2%
AK Steel Holding Corp.+............................ 3,942 24,992
Value
Security Description Shares (Note 3)
-----------------------------------------------------------------
Steel-Producers (continued)
Carpenter Technology Corp....................... 585 $ 23,751
Commercial Metals Co............................ 1,450 27,028
Ryerson Holding Corp.+.......................... 139 1,904
Schnitzer Steel Industries, Inc., Class A....... 337 6,370
--------
84,045
--------
Steel-Specialty -- 0.0%
Allegheny Technologies, Inc..................... 1,374 25,213
--------
Storage/Warehousing -- 0.0%
Mobile Mini, Inc................................ 560 16,072
Wesco Aircraft Holdings, Inc.+.................. 718 8,724
--------
24,796
--------
Superconductor Product & Systems -- 0.0%
American Superconductor Corp.+.................. 150 781
--------
SupraNational Banks -- 0.0%
Banco Latinoamericano de Comercio Exterior SA,
Class E........................................ 390 11,185
--------
Telecom Equipment-Fiber Optics -- 0.6%
Acacia Communications, Inc.+.................... 66 3,025
Ciena Corp.+.................................... 1,735 39,749
Clearfield, Inc.+............................... 146 2,066
Finisar Corp.+.................................. 1,360 31,062
Harmonic, Inc.+................................. 986 5,719
KVH Industries, Inc.+........................... 193 1,544
MRV Communications, Inc.+....................... 20,263 192,499
Oclaro, Inc.+................................... 1,414 11,326
Viavi Solutions, Inc.+.......................... 2,965 29,650
--------
316,640
--------
Telecom Services -- 1.1%
Consolidated Communications Holdings, Inc....... 625 14,794
FairPoint Communications, Inc.+................. 273 4,655
GTT Communications, Inc.+....................... 13,354 367,235
Hawaiian Telcom Holdco, Inc.+................... 76 1,934
HC2 Holdings, Inc.+............................. 430 2,511
Lumos Networks Corp.+........................... 243 4,352
ORBCOMM, Inc.+.................................. 834 8,040
RigNet, Inc.+................................... 161 3,155
Spok Holdings, Inc.............................. 263 4,721
Straight Path Communications, Inc., Class B+.... 123 15,850
Vonage Holdings Corp.+.......................... 26,352 176,822
West Corp....................................... 558 14,893
--------
618,962
--------
Telecommunication Equipment -- 0.1%
ADTRAN, Inc..................................... 633 12,660
Comtech Telecommunications Corp................. 283 3,965
Numerex Corp., Class A+......................... 177 796
Plantronics, Inc................................ 418 22,823
Preformed Line Products Co...................... 29 1,535
ShoreTel, Inc.+................................. 868 5,685
Sonus Networks, Inc.+........................... 616 4,731
--------
52,195
--------
Telephone-Integrated -- 0.1%
Cincinnati Bell, Inc.+.......................... 542 10,217
General Communication, Inc., Class A+........... 338 12,655
IDT Corp., Class B.............................. 222 3,372
66
SunAmerica Specialty Series -- AIG Small-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
--------------------------------------------------------
COMMON STOCKS (continued)
Telephone-Integrated (continued)
Shenandoah Telecommunications Co....... 596 $ 19,072
Windstream Holdings, Inc............... 2,348 12,961
--------
58,277
--------
Television -- 0.2%
Central European Media Enterprises,
Ltd., Class A+....................... 986 4,042
Gray Television, Inc.+................. 826 12,101
Nexstar Broadcasting Group, Inc........ 551 38,019
Sinclair Broadcast Group, Inc., Class A 931 36,728
--------
90,890
--------
Textile-Apparel -- 0.0%
Perry Ellis International, Inc.+....... 161 3,304
Unifi, Inc.+........................... 201 5,642
--------
8,946
--------
Textile-Products -- 0.0%
Culp, Inc.............................. 137 4,398
--------
Theaters -- 0.1%
AMC Entertainment Holdings, Inc.,
Class A.............................. 678 20,543
National CineMedia, Inc................ 794 9,425
Reading International, Inc., Class A+.. 216 3,398
--------
33,366
--------
Therapeutics -- 0.8%
Akebia Therapeutics, Inc.+............. 462 6,089
Anika Therapeutics, Inc.+.............. 180 8,303
Axsome Therapeutics, Inc.+............. 142 582
Bio-Path Holdings, Inc.+............... 1,072 676
Cara Therapeutics, Inc.+............... 270 4,290
Concert Pharmaceuticals, Inc.+......... 211 3,349
Dyax Corp. CVR+(1)(2).................. 1,907 4,672
Egalet Corp.+.......................... 284 1,085
Flexion Therapeutics, Inc.+............ 338 6,899
La Jolla Pharmaceutical Co.+........... 178 5,162
MannKind Corp.+........................ 837 731
Mirati Therapeutics, Inc.+............. 162 737
Portola Pharmaceuticals, Inc.+......... 622 24,874
Proteostasis Therapeutics, Inc.+....... 80 484
Recro Pharma, Inc.+.................... 25,403 202,716
Sarepta Therapeutics, Inc.+............ 634 22,989
Vital Therapies, Inc.+................. 303 1,212
Xencor, Inc.+.......................... 6,451 165,597
Zafgen, Inc.+.......................... 294 1,435
--------
461,882
--------
Tobacco -- 0.1%
Alliance One International, Inc.+...... 106 1,458
Turning Point Brands, Inc.+............ 76 1,202
Universal Corp......................... 312 22,916
Vector Group, Ltd...................... 1,177 25,564
--------
51,140
--------
Toys -- 0.0%
JAKKS Pacific, Inc.+................... 196 960
--------
Transactional Software -- 0.1%
ACI Worldwide, Inc.+................... 1,454 31,247
Bottomline Technologies de, Inc.+...... 517 12,046
InnerWorkings, Inc.+................... 497 5,263
Value
Security Description Shares (Note 3)
-------------------------------------------------------
Transactional Software (continued)
Synchronoss Technologies, Inc.+........ 522 $ 8,352
--------
56,908
--------
Transport-Air Freight -- 0.1%
Air Transport Services Group, Inc.+.... 610 11,218
Atlas Air Worldwide Holdings, Inc.+.... 316 18,328
--------
29,546
--------
Transport-Equipment & Leasing -- 0.1%
GATX Corp.............................. 517 30,968
Greenbrier Cos., Inc................... 348 15,121
Willis Lease Finance Corp.+............ 53 1,204
--------
47,293
--------
Transport-Marine -- 0.2%
Ardmore Shipping Corp.................. 349 2,705
Costamare, Inc......................... 341 2,298
DHT Holdings, Inc...................... 1,185 5,676
Dorian LPG, Ltd.+...................... 311 2,827
Frontline, Ltd......................... 837 5,566
GasLog, Ltd............................ 528 7,392
Gener8 Maritime, Inc.+................. 505 2,712
Golar LNG, Ltd......................... 1,212 30,918
Hornbeck Offshore Services, Inc.+...... 419 1,429
International Seaways, Inc.+........... 203 3,924
Navios Maritime Acquisition Corp....... 1,040 1,758
Nordic American Tankers, Ltd........... 1,248 10,358
Overseas Shipholding Group, Inc.,
Class A+............................. 465 1,693
Scorpio Bulkers, Inc.+................. 706 5,260
Scorpio Tankers, Inc................... 2,110 9,284
Ship Finance International, Ltd........ 750 10,537
Teekay Corp............................ 620 5,381
Teekay Tankers, Ltd., Class A.......... 1,504 3,083
Tidewater, Inc.+....................... 609 534
--------
113,335
--------
Transport-Services -- 0.6%
Echo Global Logistics, Inc.+........... 370 6,937
Hub Group, Inc., Class A+.............. 431 16,874
Matson, Inc............................ 549 17,403
Radiant Logistics, Inc.+............... 51,456 308,736
--------
349,950
--------
Transport-Truck -- 0.7%
ArcBest Corp........................... 317 8,385
Celadon Group, Inc..................... 351 1,386
Covenant Transportation Group, Inc.,
Class A+............................. 151 2,828
Forward Air Corp....................... 374 19,886
Heartland Express, Inc................. 576 11,589
Knight Transportation, Inc............. 848 29,086
Marten Transport, Ltd.................. 296 7,341
P.A.M. Transportation Services, Inc.+.. 29 544
Roadrunner Transportation Systems,
Inc.+................................ 395 2,654
Saia, Inc.+............................ 323 15,553
Swift Transportation Co.+.............. 944 23,204
Universal Logistics Holdings, Inc...... 106 1,479
USA Truck, Inc.+....................... 114 765
Werner Enterprises, Inc................ 576 15,725
XPO Logistics, Inc.+................... 1,237 61,095
YRC Worldwide, Inc.+................... 15,788 168,300
--------
369,820
--------
67
SunAmerica Specialty Series -- AIG Small-Cap Fund++
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
-------------------------------------------------------
COMMON STOCKS (continued)
Travel Services -- 0.0%
Liberty TripAdvisor Holdings, Inc.,
Class A+............................. 936 $ 13,759
--------
Venture Capital -- 0.0%
Safeguard Scientifics, Inc.+........... 258 3,277
--------
Veterinary Diagnostics -- 0.8%
Heska Corp.+........................... 3,701 400,633
Neogen Corp.+.......................... 459 28,610
Phibro Animal Health Corp., Class A.... 240 7,140
--------
436,383
--------
Vitamins & Nutrition Products -- 0.0%
Lifevantage Corp.+..................... 176 873
Natural Grocers by Vitamin Cottage,
Inc.+................................ 117 1,280
Natural Health Trends Corp............. 95 2,725
Nature's Sunshine Products, Inc........ 108 1,091
Nutraceutical International Corp....... 105 3,328
Omega Protein Corp..................... 281 5,662
Synutra International, Inc.+........... 271 1,633
USANA Health Sciences, Inc.+........... 130 7,390
--------
23,982
--------
Water -- 0.1%
American States Water Co............... 471 20,969
Artesian Resources Corp., Class A...... 99 3,803
California Water Service Group......... 619 22,098
Connecticut Water Service, Inc......... 139 7,460
Consolidated Water Co., Ltd............ 186 2,195
Global Water Resources, Inc............ 105 960
Middlesex Water Co..................... 205 7,815
SJW Corp............................... 209 10,207
York Water Co.......................... 165 6,187
--------
81,694
--------
Water Treatment Systems -- 0.0%
AquaVenture Holdings, Ltd.+............ 89 1,635
Energy Recovery, Inc.+................. 444 3,747
--------
5,382
--------
Web Hosting/Design -- 0.1%
Endurance International Group
Holdings, Inc.+...................... 775 5,890
NIC, Inc............................... 802 17,123
Q2 Holdings, Inc.+..................... 328 12,513
Rightside Group, Ltd.+................. 149 1,496
Web.com Group, Inc.+................... 548 10,576
--------
47,598
--------
Web Portals/ISP -- 1.3%
Blucora, Inc.+......................... 17,851 329,351
Meet Group, Inc.+...................... 67,293 401,066
--------
730,417
--------
Wire & Cable Products -- 0.7%
Belden, Inc............................ 531 37,010
Encore Wire Corp....................... 259 11,448
General Cable Corp..................... 625 11,250
Insteel Industries, Inc................ 9,348 325,404
--------
385,112
--------
Shares/
Principal Value
Security Description Amount (Note 3)
-------------------------------------------------------------------------
Wireless Equipment -- 1.0%
Aerohive Networks, Inc.+.......................... 308 $ 1,192
CalAmp Corp.+..................................... 23,612 423,599
Gogo, Inc.+....................................... 725 9,142
InterDigital, Inc................................. 437 39,286
Quantenna Communications, Inc.+................... 87 1,601
Telenav, Inc.+.................................... 420 3,654
Ubiquiti Networks, Inc.+.......................... 333 17,156
ViaSat, Inc.+..................................... 652 41,748
-----------
537,378
-----------
X-Ray Equipment -- 0.0%
ViewRay, Inc.+.................................... 84 580
-----------
Total Common Stocks
(cost $45,302,869)............................... 53,932,429
-----------
EXCHANGE-TRADED FUNDS -- 2.1%
iShares Russell 2000 Index Fund
(cost $1,122,780)................................ 8,411 1,169,634
-----------
WARRANTS -- 0.0%
Medical-Biomedical/Gene -- 0.0%
Asterias Biotherapeutics, Inc.
Expires 09/29/17 (strike price $5.00)
(cost $16)....................................... 27 12
-----------
Total Long-Term Investment Securities
(cost $46,425,665)............................... 55,102,075
-----------
SHORT-TERM INVESTMENT SECURITIES -- 1.1%
Time Deposits -- 1.1%
Euro Time Deposit with State Street Bank and
Trust Co.
0.09% due 05/01/2017
(cost $593,000).................................. $593,000 593,000
-----------
REPURCHASE AGREEMENTS -- 0.4%
Agreement with Fixed Income Clearing Corp.,
bearing interest at 0.09%, dated 04/28/2017, to
be repurchased 05/01/2017 in the amount
$223,001 collateralized by $225,000 of United
States Treasury Bonds, bearing interest at
3.00% due 11/15/2044 and having an
approximate value of $229,581
(cost $ 223,000)................................. 223,000 223,000
-----------
TOTAL INVESTMENTS
(cost $47,241,665)(3)............................ 99.7% 55,918,075
Other assets less liabilities....................... 0.3 186,511
-------- -----------
NET ASSETS 100.0% $56,104,586
======== ===========
--------
+ Non-income producing security
++ See Note 1
(1)Fair valued security. Securities are classified as Level 3 based on the
securities valuation inputs (see Note 3).
(2)Illiquid security. At April 30, 2017, the aggregate value of these
securities was $6,504 representing 0.0% of net assets.
(3)See Note 6 for cost of investments on a tax basis.
CVR-- Contigent Value Rights
68
SunAmerica Specialty Series -- AIG Small-Cap Fund+
PORTFOLIO OF INVESTMENTS -- April 30, 2017 -- (unaudited) (continued)
The following is a summary of the inputs used to value the Fund's net assets as
of April 30, 2017 (see Note 3):
Level 1 -- Unadjusted Level 2 -- Other Level 3 -- Significant
Quoted Prices Observable Inputs Unobservable Inputs Total
--------------------- ----------------- ---------------------- -----------
ASSETS:
Investments at Value:*
Common Stocks:
Medical-Biomedical/Gene........ $ 1,527,820 $ -- $1,429 $ 1,529,249
Medical-Drugs.................. 1,811,946 -- 0 1,811,946
Metal Processors & Fabrication. 925,508 -- 0 925,508
Multimedia..................... 93,760 -- 403 94,163
Therapeutics................... 457,210 -- 4,672 461,882
Other Industries............... 49,109,681 -- -- 49,109,681
Exchange-Traded Funds............ 1,169,634 -- -- 1,169,634
Warrants......................... 12 -- -- 12
Short-Term Investment Securities. -- 593,000 -- 593,000
Repurchase Agreements............ -- 223,000 -- 223,000
----------- -------- ------ -----------
Total Investments at Value....... $55,095,571 $816,000 $6,504 $55,918,075
=========== ======== ====== ===========
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
+ See Note 1
The Fund's policy is to recognize transfers between Levels as of the end of the
reporting period. There were no transfers between Levels during the reporting
period.
At the beginning and end of the reporting period, Level 3 investments in
securities were not considered a material portion of the Fund.
See Notes to Financial Statements
69
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
Note 1. Organization
SunAmerica Specialty Series (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end management
investment company and is organized as a Delaware Statutory Trust. The Trust
consists of eight different investment funds (each a "Fund" and
collectively, the "Funds") as of April 30, 2017. Each Fund is managed by
SunAmerica Asset Management, LLC (the "Adviser" or "SunAmerica"). An
investor may invest in one or more of the following Funds: AIG Commodity
Strategy Fund (the "Commodity Strategy Fund"), AIG ESG Dividend Fund (the
"ESG Dividend Fund"), AIG Focused Alpha Large-Cap Fund (the "Focused Alpha
Large-Cap Fund"), AIG Focused Multi-Cap Growth Fund (the "Focused Multi-Cap
Growth Fund"), AIG Global Trends Fund (the "Global Trends Fund"), AIG Income
Explorer Fund (the "Income Explorer Fund") and AIG Small-Cap Fund ("the
Small-Cap Fund").
On June 18, 2012, the Class A and Class C shares of the 2020 High Watermark
Fund were closed to new investments as a result of an Early Closure
Condition, as defined in the prospectus, which was caused by certain low
interest rate conditions. The Class I shares of the Fund closed to new
investments effective August 31, 2012 as a result of the same Early Closure
Condition. This Early Closure Condition does not require the Fund to
irrevocably allocate its assets to its fixed income portfolio.
In reorganizations that occurred on January 23, 2012 (the
"Reorganizations"), the Focused Alpha Large-Cap Fund and Focused Alpha
Growth Fund (now named the Focused Multi-Cap Growth Fund) acquired the
assets and assumed the liabilities of the Focused Alpha Large-Cap Fund, Inc.
and the Focused Alpha Growth Fund, Inc., respectively (each a "Predecessor
Fund" and together, the "Predecessor Funds"), both closed-end registered
investment companies, in exchange for Class A shares of Focused Alpha
Large-Cap Fund and Focused Alpha Growth Fund, respectively. These
transactions were structured to qualify as tax-free reorganizations under
the Internal Revenue Code. As a result of the Reorganizations, each of the
Focused Alpha Large-Cap Fund and Focused Alpha Growth Fund carried forward
the performance and accounting history of the corresponding Predecessor
Fund, as each Predecessor Fund is the accounting survivor of the respective
Reorganization. The most recent fiscal year end of the Predecessor Funds was
December 31, 2011.
Effective February 28, 2017, the names of the SunAmerica Commodity Strategy
Fund, SunAmerica Focused Alpha Large-Cap Fund, SunAmerica Focused Alpha
Growth Fund, SunAmerica Global Trends Fund, SunAmerica Income Explorer Fund
and SunAmerica Small-Cap Fund changed to AIG Commodity Strategy Fund, AIG
Focused Alpha Large-Cap Fund, AIG Focused Multi-Cap Growth Fund, AIG Global
Trends Fund, AIG Income Explorer Fund and AIG Small-Cap Fund, respectively.
The Funds are considered to be separate entities for financial and tax
reporting purposes. The investment objective and principal investment
techniques for each Fund are as follows:
The 2020 High Watermark Fund seeks capital appreciation to the extent
consistent with the preservation of capital investment gains in order to
have a net asset value ("NAV") on August 31, 2020, its Protected Maturity
Date, at least equal to the protected high watermark value ("Protected High
Watermark Value"). The Fund seeks high total return as a secondary
objective. The Protected High Watermark Value for the Fund is the highest
NAV per share attained, (i) reduced by an amount that is proportionate to
the sum of all dividends and distributions paid by the Fund subsequent to
the time that the highest NAV was achieved, (ii) reduced by extraordinary
expenses, if any, and (iii) increased by appreciation in share value to the
extent such appreciation exceeds this adjusted share value subsequent to the
last paid dividend or distribution. The Fund's undertaking (the "Payment
Undertaking") that shareholders in the Fund will be entitled to redeem their
shares on the Protected Maturity Date for the Protected High Watermark Value
is backed by a master agreement between the Trust, on behalf of the Fund,
and Prudential Global Funding, LLC ("PGF"), under which PGF will pay to the
Fund any shortfall between its Protected High Watermark Value and the actual
NAV per share on the Fund's Protected Maturity Date, provided certain
conditions are met. Pursuant to the Master Agreement between the Trust and
PGF, the Fund pays PGF a fee at an annual rate of 0.35% of the average daily
net assets of the Fund.
If the NAV of the 2020 High Watermark Fund at its Protected Maturity Date is
insufficient to satisfy the Payment Undertaking, a shareholder's ability to
receive the Protected High Watermark Value will depend on the Fund's ability
to collect the difference under the Master Agreement with PGF. A
shareholder's ability to rely on the Master Agreement is subject to certain
conditions and restrictions that may reduce, or eliminate, the Fund's
ability to meet the Payment Undertaking.
70
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
The 2020 High Watermark Fund is subject to conditions of the Master
Agreement that require Trajectory Asset Management LLC ("Trajectory"), the
Fund's subadviser, to provide certain information to PGF on a daily basis
and to follow certain parameters and proprietary mathematical formulae in
making investment allocation decisions. These limitations are designed to
reduce, but do not eliminate, the risk that the Fund's assets will be
insufficient to allow the Fund to redeem shares at not less than the
Protected High Watermark Value on its Protected Maturity Date.
While Trajectory intends to meet all obligations under the Master Agreement,
a failure to meet the commercially negotiated terms could permit PGF to
cancel the Master Agreement and thus terminate its obligations to make any
payment to the 2020 High Watermark Fund if a shortfall exists to the Payment
Undertaking on the Protected Maturity Date. In this event, shareholders will
not receive the Protected High Watermark Value but instead will receive the
Fund's then-current net asset value when they redeem their shares, which may
be lower than the Protected High Watermark Value and lower than the
shareholder's initial investment.
As described under Note 4, SunAmerica has contractually agreed to reduce its
fees in the event that the 2020 High Watermark Fund becomes completely
invested in fixed income securities. However, if this reduction in fees is
not sufficient to reduce total annual operating expenses to an extent that
they are covered by the current yield on the Fund's fixed income securities,
and the Fund is within three years of its Protected Maturity Date, that date
will be accelerated and the Trust's Board of Trustees will consider
appropriate action under all of the circumstances as described below. PGF
may, however, permit the Fund to hold a higher proportion of its assets in
obligations of U.S. government agencies and instrumentalities (which
generally pay higher rates of interest than direct obligations of the U.S.
Treasury) in order to avoid this circumstance.
Under the Master Agreement, if certain low interest rate conditions occur
and the 2020 High Watermark Fund is within three years of its initial
Protected Maturity Date, the Fund can terminate early. If the Fund
terminates early under these circumstances ("Early Fund Termination"), the
2020 High Watermark Fund's Protected High Watermark Value will be
accelerated and shareholders will receive the benefit of the Protected High
Watermark Value. Thereafter, the Trust's Board of Trustees will consider
appropriate action under all of the circumstances. These actions could
include liquidating the Fund or continuing to operate the Fund and pursuing
a strategy other than the High Watermark Strategy. Shareholders will receive
30 days' written notice of any shareholder distribution of liquidation
proceeds or other action following a Protected Maturity Date or Early Fund
Termination.
Please refer to the 2020 High Watermark Fund's prospectus for additional
details concerning the calculation of the Protected High Watermark Value,
the Payment Undertaking, the Master Agreement, an Early Closure Condition
and an Early Fund Termination.
The Commodity Strategy Fund seeks to provide long-term total return through
a strategy that is designed to provide diversified exposure to the
commodities markets. The Fund seeks to achieve its investment goal by
investing its assets in a combination of commodity-linked derivative
instruments and fixed income securities.
The ESG Dividend Fund seeks to provide total return including capital
appreciation and current income, employing a "buy and hold" strategy with up
to forty dividend yielding equity securities selected annually from the
Russell 1000(R) Index that meet the Fund's ESG standards.
The Focused Alpha Large-Cap Fund seeks to provide growth of capital through
active trading of equity securities to achieve a blend of growth companies,
value companies and companies that have elements of growth and value, issued
by large-cap companies. Under normal market conditions, the Fund will invest
at least 80% of its net assets, plus any borrowing for investment purposes,
in large-cap companies.
The Focused Multi-Cap Growth Fund seeks to provide growth of capital through
active trading of equity securities of large, small and mid-cap companies.
The Global Trends Fund seeks to provide capital appreciation by utilizing an
actively managed rules based investment process to allocate assets across a
diversified, broad-based spectrum of asset classes, including the global
equity and fixed income markets, currencies and commodities.
71
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
The Income Explorer Fund seeks to provide high current income with a
secondary objective of capital appreciation primarily by strategically
allocating its assets among a preferred securities strategy, closed-end fund
strategy and global dividend equity strategy. Through this combination of
investments, the Fund expects to gain exposure to a broad range of
income-producing investments, including both fixed income and equity
securities.
The Small-Cap Fund seeks to provide long-term growth of capital by
strategically allocating its assets between a small-cap index strategy and a
micro-cap growth strategy.
Each Fund, except for the Focused Alpha Large-Cap Fund and Focused Multi-Cap
Growth Fund, is a "diversified" Fund within the meaning of the 1940 Act.
Each Fund offers multiple classes of shares of beneficial interest. The
classes within each Fund are presented in the Statement of Assets and
Liabilities. The cost structure for each class is as follows:
Class A shares are offered at net asset value per share plus an initial
sales charge. Additionally, any 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 on redemptions made within two years of
purchase.
Class C shares are offered at net asset value and may be subject to a
contingent deferred sales charge on redemptions made within 12 months of
purchase. Class C shares of the 2020 High Watermark Fund will convert
automatically to Class A shares approximately eight years after purchase and
at such time will be subject to the lower distribution fee applicable to
Class A shares.
Class I shares are offered at net asset value per share. The class is
offered exclusively to participants in certain employee retirement plans and
other programs.
Class W shares are offered at net asset value per share. The class is
offered exclusively through advisory fee-based programs sponsored by certain
financial intermediaries and other programs.
Each class of shares bears the same voting, dividend, liquidation and other
rights and conditions, except as may otherwise be provided in the Funds'
registration statement. Class A and Class C shares make distribution and
account maintenance fee payments under a distribution plan pursuant to Rule
12b-1 under the 1940 Act except that Class C shares are subject to higher
distribution fee rates. Class I shares and Class W shares have not adopted
12b-1 Plans and make no payments thereunder, however, Class I shares and
Class W shares pay a service fee to the Funds' distributor for
administrative and shareholder services (see Note 4).
Class A shares acquired in connection with the Reorganizations were subject
to a redemption fee of 1.00% of the total redemption amount (calculated at
net asset value) on fund shares redeemed or exchanged on or before April 20,
2012. The redemption fee is recorded as an increase in shareholder capital
and is allocated among the share classes based on the relative daily net
assets of each class.
Indemnifications: The Trust's organizational documents provide current and
former officers and trustees with a limited indemnification against
liabilities arising out of the performance of their duties to the Trust. In
addition, pursuant to Indemnification Agreements between the Trust and each
of the current trustees who is not an "interested person," as defined in
Section 2(a)(19) of the 1940 Act, of the Trust (collectively, the
"Disinterested Trustees"), the Trust provides the Disinterested Trustees
with a limited indemnification against liabilities arising out of the
performance of their duties to the Trust, whether such liabilities are
asserted during or after their service as trustees. In addition, in the
normal course of business the Trust enters into contracts that contain the
obligation to indemnify others. The Trust's maximum exposure under these
arrangements is unknown. Currently, however, the Trust expects the risk of
loss to be remote.
72
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
Note 2. Basis for consolidation for the SunAmerica Commodity Strategy Cayman
Fund Ltd. and SunAmerica Global Trends Cayman Fund Ltd.
The AIG Commodity Strategy Cayman Fund Ltd. (the "Commodity Strategy
Subsidiary"), a Cayman Islands exempted company, was incorporated on
October 20, 2008, and is a wholly-owned subsidiary of the Commodity Strategy
Fund. The Commodity Strategy Subsidiary commenced operations on May 22, 2009
and was organized as a wholly-owned subsidiary of the Commodity Strategy
Fund in order to effect certain investments on behalf of the Commodity
Strategy Fund consistent with the investment objectives and policies in the
Commodity Strategy Fund's prospectus and statement of additional
information. With respect to its investments, the Commodity Strategy
Subsidiary will generally be subject to the same fundamental,
non-fundamental and certain other investment restrictions as the Commodity
Strategy Fund; however, the Commodity Strategy Subsidiary (unlike the
Commodity Strategy Fund) may invest without limitation in commodity-linked
swap agreements and other commodity-linked derivative instruments that may
otherwise be limited if purchased by the Commodity Strategy Fund due to
federal tax requirements relating to qualifying income. The Commodity
Strategy Fund and Commodity Strategy Subsidiary may test for compliance with
certain investment restrictions on a consolidated basis, except that with
respect to its investment in certain securities that may involve leverage,
the Commodity Strategy Subsidiary will comply with asset segregation or
"earmarking" requirements to the same extent as the Commodity Strategy Fund.
The Commodity Strategy Fund may invest up to 25% of its assets in the
Commodity Strategy Subsidiary. As of April 30, 2017, net assets of the
Commodity Strategy Fund were $37,621,544, of which approximately $7,496,539,
or approximately 19.9%, represented the Commodity Strategy Fund's ownership
of all issued shares and voting rights of the Commodity Strategy Subsidiary.
The AIG Global Trends Cayman Fund Ltd. (the "Global Trends Subsidiary"), a
Cayman Islands exempted company, was incorporated on March 17, 2011, and is
a wholly-owned subsidiary of the Global Trends Fund. The Global Trends
Subsidiary commenced operations on June 17, 2011 and was organized as a
wholly-owned subsidiary of the Global Trends Fund in order to effect certain
investments on behalf of the Global Trends Fund consistent with the
investment objectives and policies in the Global Trends Fund's prospectus
and statement of additional information. With respect to its investments,
the Global Trends Subsidiary will generally be subject to the same
fundamental, non-fundamental and certain other investment restrictions as
the Global Trends Fund; however, the Global Trends Subsidiary (unlike the
Global Trends Fund) may invest without limitation in commodity-linked
instruments that may otherwise be limited if purchased by the Global Trends
Fund due to federal tax requirements relating to qualifying income. The
Global Trends Fund and Global Trends Subsidiary may test for compliance with
certain investment restrictions on a consolidated basis, except that with
respect to its investment in certain securities that may involve leverage,
the Global Trends Subsidiary will comply with asset segregation or
"earmarking" requirements to the same extent as the Global Trends Fund. The
Global Trends Fund may invest up to 25% of its assets in the Global Trends
Subsidiary. As of April 30, 2017, net assets of the Global Trends Fund were
$36,341,259, of which approximately $7,414,270, or approximately 20.4%,
represented the Global Trends Fund's ownership of all issued shares and
voting rights of the Global Trends Subsidiary.
Note 3. Significant Accounting Policies
The preparation of financial statements in accordance with U.S. generally
accepted accounting principles ("GAAP") requires management to make
estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results could differ from those
estimates and those differences could be significant. The following is a
summary of significant accounting policies consistently followed by the
Trust in the preparation of its financial statements:
Security Valuation: In accordance with the authoritative guidance on fair
value measurements and disclosures under GAAP, the Funds disclose the fair
value of their investments in a hierarchy that prioritizes the inputs to
valuation techniques used to measure the fair value. In accordance with
GAAP, fair value is defined as the price that the Funds would receive upon
selling an asset or transferring a liability in a timely transaction to an
independent third party in the principal or most advantageous market. GAAP
establishes a three-tier hierarchy to provide more transparency around the
inputs used to measure fair value and to establish classification of fair
value measurements for disclosure purposes. Inputs refer broadly to the
assumptions that market participants would use in pricing the asset or
liability, including assumptions about risk. Inputs may be observable or
unobservable. Observable inputs are inputs that reflect the assumptions
market participants would use in pricing the asset or liability developed
based on market data obtained from sources independent of the reporting
entity. Unobservable inputs are inputs that reflect the
73
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
reporting entity's own assumptions about the assumptions market participants
would use in pricing the asset or liability developed based on the best
information available in the circumstances. The three-tiers are as follows:
Level 1 -- Unadjusted quoted prices in active markets for identical
securities
Level 2 -- Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
referenced indices, quoted prices in inactive markets, adjusted quoted
prices in active markets, adjusted quoted prices
on foreign equity securities that were adjusted in accordance with pricing
procedures approved by the Board of Trustees (the "Board") , etc.)
Level 3 -- Significant unobservable inputs (includes inputs that reflect the
Funds' own assumptions about the assumptions market participants would use
in pricing the security, developed based on the best information available
under the circumstances)
Changes in valuation techniques may result in transfers in or out of an
investment's assigned Level within the hierarchy. The methodology used for
valuing investments is not necessarily an indication of the risk associated
with investing in those investments and the determination of the
significance of a particular input to the fair value measurement in its
entirety requires judgment and consideration of factors specific to each
security.
The availability of observable inputs can vary from security to security and
is affected by a wide variety of factors, including, for example, the type
of security, whether the security is recently issued and not yet established
in the marketplace, the liquidity of markets, and other characteristics
particular to the security. To the extent that valuation is based on models
or inputs that are less observable or unobservable in the market, the
determination of fair value requires more judgment. Accordingly, the degree
of judgment exercised in determining fair value is greatest for instruments
categorized in Level 3.
The summary of the Funds' assets and liabilities classified in the fair
value hierarchy as of April 30, 2017 is reported on a schedule following
each Fund's Portfolio of Investments.
Stocks are generally valued based upon closing sales prices reported on
recognized securities exchanges on which the securities are principally
traded and are generally categorized as Level 1. Stocks listed on the NASDAQ
are valued using the NASDAQ Official Closing Price ("NOCP"). Generally, the
NOCP will be the last sale price unless the reported trade for the stock is
outside the range of the bid/ask price. In such cases, the NOCP will be
normalized to the nearer of the bid or ask price. For listed securities
having no sales reported and for unlisted securities, such securities will
be valued based upon the last reported bid price.
As of the close of regular trading on the New York Stock Exchange ("NYSE"),
securities traded primarily on security exchanges outside the United States
are valued at the last sale price on such exchanges on the day of valuation,
or if there is no sale on the day of valuation, at the last-reported bid
price. If a security's price is available from more than one exchange, the
Funds use the exchange that is the primary market for the security. Such
securities are generally categorized as Level 1. However, depending on the
foreign market, closing prices may be up to 15 hours old when they are used
to price a Fund's shares, and a Fund may determine that certain closing
prices do not reflect the fair value of the security. This determination
will be based on 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 a Fund determines that
closing prices do not reflect the fair value of the securities, the Fund
will adjust the previous closing prices in accordance with pricing
procedures approved by the Board to reflect what it believes to be the fair
value of the securities as of the close of regular trading on the NYSE. The
Funds may also fair value securities in other situations, for example, when
a particular foreign market is closed but a Fund is open. For foreign equity
securities and foreign equity futures contracts, the Funds use an outside
pricing service to provide it with closing market prices and information
used for adjusting those prices, and when so adjusted, such securities and
futures are generally categorized as Level 2.
Bonds, debentures and other debt securities are valued at evaluated bid
prices obtained for the day of valuation from a Board-approved pricing
service and are generally categorized as Level 2. The pricing services may
use valuation models or matrix pricing which considers information with
respect to comparable bond and note transactions, quotations from bond
dealers, or by reference to other securities that are considered comparable
in such characteristics as rating, interest rate, maturity date, option
adjusted spread models, prepayments projections, interest rate spreads, and
yield curves to determine current value. If a price is
74
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
unavailable from a Board-approved pricing service, the securities may be
priced at the mean of two independent quotes obtained from brokers.
Investments in registered investment companies that do not trade on an
exchange are valued at the end of day net asset value per share. Investments
in registered investment companies that trade on an exchange are valued at
the last sales price or official closing price as of the close of the
customary trading session on the exchange where the security is principally
traded. Investments in registered investment companies are generally
categorized as Level 1.
Futures contracts traded on national securities exchanges are valued at the
quoted daily settlement price established by the exchange on which they
trade reported by a Board-approved pricing service, and are generally
categorized as Level 1. Option contracts traded on national securities
exchanges are valued at the mean of the last bid and ask price reported by a
Board-approved pricing service as of the close of the exchange on which they
are traded, and are generally categorized as Level 1.
Option contracts traded in the over-the-counter ("OTC") market are valued
based at the mid valuation provided by a Board-approved pricing service, and
are generally categorized as Level 2. Swap contracts traded on national
securities exchanges are valued at the closing price of the exchange on
which they are traded or if a closing price of the exchange is not
available, the swap will be valued using a mid valuation provided by a
Board-approved pricing service, and are generally categorized as Level 2.
Swap contracts traded over the counter are valued at a mid valuation
provided by a Board-approved pricing service, and are generally categorized
as Level 2. Forward foreign currency contracts ("forward contracts") are
valued at the 4:00 p.m. Eastern Time forward rate and are generally
categorized as Level 2.
Other securities are valued on the basis of last sale or bid price (if a
last sale price is not available) which is, in the opinion of the Adviser,
the broadest and most representative market, that may be either a securities
exchange or OTC market, and are generally categorized as Level 1 or Level 2.
The Board is responsible for the share valuation process and has adopted
policies and procedures (the "PRC Procedures") for valuing the securities
and other assets held by the Funds, including procedures for the fair
valuation of securities and other assets for which market quotations are not
readily available or are unreliable. The PRC Procedures provide for the
establishment of a pricing review committee, which is responsible for, among
other things, making certain determinations in connection with the Trust's
fair valuation procedures. Securities for which market quotations are not
readily available or the values of which may be significantly impacted by
the occurrence of developments or significant events are generally
categorized as Level 3. There is no single standard for making fair value
determinations, which may result in prices that vary from those of other
funds.
Derivative Instruments:
Futures: During the period, the 2020 High Watermark Fund invested in
exchange traded S&P 500 Index futures to generate equity market exposure.
The Commodity Strategy Fund entered into futures transactions for investment
purposes in order to provide exposure to commodities. The Global Trends Fund
entered into futures transactions for investment purposes in order to
provide exposure to U.S. and non-U.S. equity markets, U.S. and non-U.S.
fixed income and commodities.
A futures contract is an agreement between two parties to buy and sell a
financial instrument at a set price on a future date. Upon entering into a
futures transaction, a Fund will be required to segregate an initial margin
payment of cash or other liquid securities with the futures commission
merchant (the "broker"). Subsequent payments are made or received by a Fund
as a result of changes in the value of the contract and/or changes in the
value of the initial margin requirement. Such receipts or payments are
recorded in the Statements of Assets and Liabilities as variation margin for
changes in the value of the contract and as due to/from broker for the
changes in the value of the initial margin requirement. When a contract is
closed, a Fund records a realized gain or loss 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.
The primary risk to a Fund of entering into futures contracts is market
risk. Market risk is the risk that there will be an unfavorable change in
the interest rate, value or currency rate of the underlying security or
securities. Futures contracts involve, to varying degrees, risk of loss in
excess of the variation margin. There may also be trading restrictions or
limitations imposed by
75
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
an exchange, and government regulations may restrict trading in futures
contracts. While a Fund will generally only purchase exchange-traded
futures, due to market conditions, there may not always be a liquid
secondary market for a futures contract and, as a result, the Fund may be
unable to close out its futures contracts at a time which is advantageous.
In addition, if a Fund has insufficient cash to meet margin requirements,
the Fund may need to sell other investments, including at disadvantageous
times. There is generally minimal counterparty credit risk to a Fund since
exchange-traded futures contracts are centrally cleared.
Futures contracts outstanding at the end of the period, if any, are reported
on a schedule following each Fund's Portfolio of Investments.
Forward Foreign Currency Contracts: During the period, the Global Trends
Fund used forward contracts for investment purposes in order to gain
currency exposure.
A forward contract is an agreement between two parties to buy or sell
currency at a set price on a future date. The market value of the contract
will fluctuate with changes in currency exchange rates. The contract is
marked-to-market daily using the forward rate and the cumulative change in
market value is recorded by a Fund as unrealized appreciation or
depreciation. On the settlement date, a Fund records either realized gains
or losses equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed.
For federal income tax purposes, the Income Explorer Fund has made an
election to treat gains and losses from forward foreign currency contracts
as capital gains and losses.
Risks to a 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, a Fund's
loss will generally consist of the net amount of contractual payments that
the Fund has not yet received though the Fund's maximum exposure due to
counterparty risk could extend to the notional amount of the contract.
Market risk is the risk that the value of the forward contract will
depreciate due to unfavorable changes in the exchange rates. These contracts
may involve market risk in excess of the unrealized appreciation or
depreciation reported on the 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.
Forward foreign currency contracts outstanding at the end of the period, if
any, are reported on a schedule following each Fund's Portfolio of
Investments.
Options: During the period, the Commodity Strategy Fund used options
contracts to provide exposure to commodities.
An option is a contract conveying a right to buy or sell a financial
instrument at a specified price during a stipulated period. When a Fund
writes a call or a put option, it receives a premium which is equal to the
current market value of the option written. The premiums on written options
are recorded as a liability on the Statement of Assets and Liabilities. If a
Fund purchases a call or a put option, it pays a premium which reflects the
current market value of the option and which is included on the Fund's
Statement of Assets and Liabilities as an investment. The option position is
marked to market daily and its value fluctuates based upon the value of the
underlying financial instrument, time to expiration, cost of borrowing
funds, and volatility of the value of the underlying financial instrument.
If an option which a Fund has written either expires on its stipulated
expiration date, or if the Fund enters into a closing purchase transaction,
the Fund realizes a gain (or loss if the cost of a closing purchase
transaction exceeds the premium received when the option was written)
without regard to any unrealized gain or loss on the underlying security,
and the liability related to such options is extinguished. If a call option
which a Fund has written is exercised, the Fund realizes a gain or loss from
the sale of the underlying security and the proceeds from such sale are
increased by the premium originally received. If a put option which a Fund
has written is exercised, the amount of the premium originally received
reduces the cost of the security which the Fund purchased upon exercise of
the option. Options may be traded on a national securities exchange or in
the OTC market.
76
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
Risks to the Funds of entering into option contracts include counterparty
risk, market risk and, with respect to OTC options, illiquidity risk.
Counterparty risk arises from the potential inability of counterparties to
meet the terms of their contracts. If the counterparty defaults, the Fund's
loss will consist of the net amount of contractual payments that the Fund
has not yet received. Market risk is the risk that there will be an
unfavorable change in the value of the underlying securities. There is also
the risk a Fund may not be able to enter into a closing transaction because
of an illiquid market. In addition, unlisted options are not traded on an
exchange and may not be as actively traded as listed options, making the
valuation of such securities more difficult. An unlisted option also entails
a greater risk that the party on the other side of the option transaction
may default, which would make it impossible to close out an unlisted option
position in some cases, and profits related to the transaction lost thereby.
Option contracts outstanding at the end of the period, if any, are reported
on a schedule following each Fund's Portfolio of Investments.
Transactions in options written during the year ended April 30, 2017 are
summarized as follows:
Written Options
Future Contracts
------------------
Commodity
Strategy Fund#
------------------
Number of Premiums
Contracts Received
--------- --------
Options outstanding as of October 31, 2016... 15 $46,986
Options written.............................. 19 25,473
Options terminated in closing purchase
transactions................................ 30 48,936
Options exercised............................ -- --
Options expired.............................. -- --
-- -------
Options outstanding as of April 30, 2017..... 4 $23,523
== =======
--------
# Consolidated (see Note 2)
Swap Contracts: Certain Funds may enter into credit default, interest rate
and/or total return swap contracts. Swap contracts are privately negotiated
in the OTC market and may be entered into as a bilateral contract or a
centrally cleared contract ("centrally cleared swaps"). In a centrally
cleared swap, immediately following execution of the swap contract, the swap
contract is novated to a central counterparty (the "CCP") and a Fund faces
the CCP through a broker. Upon entering into a centrally cleared swap, a
Fund is required to deposit initial margin with the broker in the form of
cash or securities in an amount that varies depending on the size and risk
profile of the particular swap. Securities deposited as initial margin are
designated on the Portfolio of Investments and cash deposited is recorded on
the Statement of Assets and Liabilities as due from broker. Unlike a
bilateral swap contract, for centrally cleared swaps, a Fund has no credit
exposure to the counterparty as the CCP stands between the Fund and the
counterparty. Swaps are marked-to-market daily and the changes in value are
recorded as an unrealized gain (loss). The daily change in valuation of swap
contracts, if any, is recorded as unrealized appreciation (depreciation) on
swap contracts. When the swap is terminated, a Fund will record a realized
gain or loss equal to the difference between the proceeds from (or cost of)
the closing transaction and the Fund's basis in the contract, if any.
Generally, the basis of the contracts is the premium received or paid.
Upfront payments and receipts on swap contracts are amortized on a daily
basis. Net periodic payments made or received by a Fund are included as part
of realized gain (loss).
Total Return Swaps: During the period, the Commodity Strategy Fund used
total return swaps, including swaps on futures, for investment purposes in
order to provide exposure to commodities.
Total return swaps give a Fund the right to receive the appreciation in the
value of a specified security, index or other instrument in return for a fee
paid to the counterparty, which will typically be an agreed upon interest
rate. If the underlying asset in a total return swap declines in value over
the term of the swap, a Fund may also be required to pay the dollar value of
that decline to the counterparty.
77
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
The Fund will generally enter into total return swaps only on a net basis,
which means that the two payment streams are netted against each other, with
the Fund receiving or paying, as the case may be, only the net amount of the
two payments. Payments may be made at the conclusion of a total return swap
contract or periodically during its term. Total return swaps normally do not
involve the delivery of securities or other underlying assets.
Accordingly, the risk of loss with respect to total return swaps is normally
limited to the net amount of payments that the Fund is contractually
obligated to make. If the counterparty to a total return swap defaults, the
Fund's risk of loss consists of the net discounted amount of payments that
the Fund is contractually entitled to receive, if any.
Total return swap contracts outstanding at the end of the period, if any,
are reported on a schedule following the Fund's Portfolio of Investments.
Risks of Entering into Swap Agreements: Risks to a Fund of entering into
credit default swaps, total return swaps and interest rate swaps, include
credit risk, market risk, counterparty risk, liquidity risk and
documentation risk. By entering into swap agreements, a Fund may be exposed
to risk of potential loss due to unfavorable changes in interest rates, the
price of the underlying security or index, or the underlying referenced
asset's perceived or actual credit, that the counterparty may default on its
obligation to perform or the possibility that there is no liquid market for
these agreements. There is also the risk that the parties may disagree as to
the meaning of contractual terms in the swap agreement. In addition, to the
extent that a subadviser does not accurately analyze and predict the
underlying economic factors influencing the value of the swap, a Fund may
suffer a loss.
Risks of Commodity-Linked Derivatives: Commodity-linked derivatives are
derivative instruments, the value of which is primarily linked to the price
movement of a commodity, commodity index or commodity futures or option
contract. The commodity-linked derivative instruments in which certain of
the Funds invest have substantial risks, including risk of loss of a
significant portion of their principal value. Commodity-linked derivative
instruments may be more volatile and less liquid than the underlying
instruments and their value will be affected by the performance of the
commodity markets, as well as economic and other regulatory or political
developments, overall market movements and other factors. Typically, the
return of the commodity-linked swaps will be based on some multiple of the
performance of an index. The multiple (or leverage) will magnify the
positive and negative return the Fund earns from these swaps as compared to
the index.
Master Agreements: Certain Funds that hold derivative instruments and other
financial instruments may be a party to ISDA (International Swap 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 a Fund and
applicable counterparty. Collateral requirements are generally determined
based on a Fund's net position with each counterparty. Master Agreements may
also include certain provisions that require a Fund to post additional
collateral upon the occurrence of certain events, such as when a Fund's net
assets fall below a specified level. In addition, Master Agreements
typically specify certain standard termination events, such as failure of a
party to pay or deliver, credit support defaults and other events of
default. Termination events applicable to a Fund may also occur upon a
decline in a Fund's net assets below a specified level over a certain period
of time. Additional termination events applicable to counterparties may
occur upon a decline in a counterparty's long-term and short-term credit
ratings below a specified level, or upon a decline in the ratings of a
counterparty's credit support provider. Upon the occurrence of a termination
event, the other party may elect to terminate early and cause settlement of
all instruments outstanding pursuant to a particular Master Agreement,
including the payment of any losses and costs resulting from such early
termination, as reasonably determined by the terminating party. Any decision
by one or more of a Fund's counterparties to elect early termination could
cause a Fund to accelerate the payment of liabilities, which settlement
amounts could be in excess of the amount of assets that are already posted
as collateral. Typically, the Master Agreement will permit a single net
payment in the event of default. Note, however, that bankruptcy or
insolvency laws of a particular jurisdiction may impose restrictions on or
prohibitions against the right of offset in bankruptcy, insolvency or other
events. As a result, the early termination with respect to derivative
instruments subject to Master Agreements that are in a net liability
position could be material to a Fund's financial statements. The Funds do
not offset derivative assets and derivative liabilities that are subject to
netting arrangements in the Statement of Assets and Liabilities.
78
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
The following tables represent the value of derivatives held as of April 30,
2017, by their primary underlying risk exposure and the respective location
on the Statement of Assets and Liabilities and the effect of derivatives on
the Statement of Operations for the six months ended April 30, 2017. The
derivative contracts held during the period are not accounted for as hedging
instruments under GAAP. For a detailed presentation of derivatives held as
of April 30, 2017, please refer to a schedule following each Fund's
Portfolio of Investments.
The following tables represent the value of derivatives held as of April 30,
2017, by their primary underlying risk exposure and the respective location
on the Statement of Assets and Liabilities and the effect of derivatives on
the Statement of Operations for the six months ended April 30, 2017. For a
detailed presentation of derivatives held as of April 30, 2017, please refer
to the Portfolio of Investments.
Asset Derivatives
-----------------------------------------------------------------------------------------------
Interest Foreign
Rate Equity Exchange
Contracts Contracts Commodity Contracts Contracts
--------------- --------------- ----------------------------------------- ------------
Foreign
Futures Futures Futures Options Swap Exchange
Fund Contracts(1)(8) Contracts(1)(8) Contracts(1)(8) Purchased(2) Contracts(6) Contracts(3) Total
---- --------------- --------------- --------------- ------------ ------------ ------------ --------
2020 High Watermark. $ -- $ -- $ -- $ -- $ -- $ -- $ --
Commodity Strategy#. -- -- 162,534 32,676 1,139 -- 196,349
Global Trends#...... 1,719 10,193 13,412 -- -- 68,382 93,706
Liability Derivatives
-----------------------------------------------------------------------------------------------
Interest Foreign
Rate Equity Exchange
Contracts Contracts Commodity Contracts Contracts
--------------- --------------- ----------------------------------------- ------------
Foreign
Futures Futures Futures Options Swap Exchange
Fund Contracts(1)(8) Contracts(1)(8) Contracts(1)(8) Written(4) Contracts(7) Contracts(5) Total
---- --------------- --------------- --------------- ------------ ------------ ------------ --------
2020 High Watermark. $ -- $ 280 $ -- $ -- $ -- $ -- $ 280
Commodity Strategy#. -- -- 56,521 17,961 -- -- 74,482
Global Trends#...... -- 29,161 -- -- -- 50,804 79,965
--------
Statement of Assets and Liabilities Location:
(1)Variation margin on futures contracts
(2)Investments, at value
(3)Unrealized appreciation on forward foreign currency contracts
(4)Call and put options written, at value
(5)Unrealized depreciation on forward foreign currency contracts
(6)Unrealized appreciation on swap contracts
(7)Unrealized depreciation on swap contracts
(8)The variation margin on futures contracts is included in the cumulative
appreciation (depreciation) as reported on each Fund's Portfolio of
Investments in the following amounts:
Cumulative
Appreciation
Fund (Depreciation)
---- --------------
2020 High Watermark Fund. $ 410
Commodity Strategy....... (843,206)
Global Trends............ 179,910
--------
# Consolidated (see Note 2)
79
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
Realized Gain (Loss) on Derivatives Recognized in Statement of Operations
----------------------------------------------------------------------------------------------------
Interest Foreign
Rate Equity Exchange
Contracts Contracts Commodity Contracts Contracts
------------ ------------ --------------------------------------- ------------
Foreign
Futures Futures Futures Swap Exchange
Fund Contracts(1) Contracts(1) Contracts(1) Options* Contracts(1) Contracts(2) Total
---- ------------ ------------ ------------ -------- ------------ ------------ ----------
2020 High Watermark. $ -- $ 11,137 $ -- $ -- $ -- $ -- $ 11,137
Commodity Strategy#. -- -- (106,389) 5,710 (170,177) -- (270,856)
Global Trends#...... (133,268) 1,870,516 (522,550) -- -- 168,381 1,383,079
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Statement of Operations
----------------------------------------------------------------------------------------------------
Interest Foreign
Rate Equity Exchange
Contracts Contracts Commodity Contracts Contracts
------------ ------------ --------------------------------------- ------------
Foreign
Futures Futures Futures Swap Exchange
Fund Contracts(3) Contracts(3) Contracts(3) Options* Contracts(3) Contracts(4) Total
---- ------------ ------------ ------------ -------- ------------ ------------ ----------
2020 High Watermark. $ -- $ 3,010 $ -- $ -- $ -- $ -- $ 3,010
Commodity Strategy#. -- -- (418,362) 20,240 1,139 -- (396,983)
Global Trends#...... 1,717 131,329 229,831 -- -- 54,130 417,007
--------
* Includes amounts relating to purchased and written options as follows:
Change in Unrealized
Realized Gain (Loss) on Appreciation (Depreciation) on
Derivatives Recognized in Derivatives Recognized in
Statement of Operations Statement of Operations
------------------------- ------------------------------
Commodity Contracts Commodity Contracts
------------------------- ------------------------------
Options Options Options Options
Purchased(6) Written(1) Purchased(5) Written(3)
------------ ---------- ------------ ----------
Commodity Strategy. $399 $5,311 $3,428 $16,812
--------
Statement of Operations Location:
(1)Net realized gain (loss) on futures contracts, written options contracts and
swap contracts
(2)Net realized foreign exchange gain (loss) on other assets and liabilities
(3)Change in unrealized appreciation (depreciation) on futures contracts,
written options contracts and swap contracts
(4)Change in unrealized foreign exchange gain (loss) on other assets and
liabilities
(5)Change in unrealized appreciation (depreciation) on investments
(unaffiliated)
(6)Net realized gain (loss) on investments (unaffiliated)
# Consolidated (see Notes 2)
The following table represents the average monthly balances of derivatives
held during the six months ended April 30, 2017.
Average Amount Outstanding During the Period
--------------------------------------------------------------------------------------------------
Foreign Purchased Call Purchased Put Written Call Written Put
Futures Exchange Options Options Total Return Option Option
Fund Contracts(1) Contracts(2) Contracts(1) Contracts(1) Swap Contracts(1) Contracts(1) Contracts(1)
---- ------------ ------------ -------------- ------------- ----------------- ------------ ------------
2020 High Watermark. $ 115,100 $ -- $ -- $ -- $ -- $ -- $ --
Commodity Strategy#. 34,329,140 -- 53,366 5,455 15,202,282 10,302 31,191
Global Trends#...... 31,171,398 20,934,104 -- -- -- -- --
--------
(1)Amounts represent values in US dollars.
(2)Amounts represent notional amounts in US dollars.
# Consolidated (see Note 2)
80
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
The following tables set forth the Funds' derivative assets and liabilities
by counterparty, net of amount available for offset under Master Agreements
and net of related collateral pledged/(received) as of April 30, 2017. The
repurchase agreements held by the Funds as of April 30, 2017 are subject to
Master Agreements but are not included in the following tables. See the
Portfolio of Investments and Notes to the Financial Statements for more
information about the Funds' holdings in repurchase agreements.
Commodity Strategy#
-------------------------------------------------------------------------
Derivative Assets(1) Derivative Liabilities(1)
------------------------------------- -----------------------------------
Forward Forward Net
Foreign Foreign Derivative Collateral
Currency Options Currency Options Assets Pledged/
Counterparty Contracts OTC Swaps Purchased Total Contracts OTC Swaps Written Total (Liabilities) (Received)(2)
---------------------- --------- --------- --------- ------- --------- --------- ------- ------- ------------- -------------
Goldman Sachs
International........ $ -- $1,139 $-- $ 1,139 $ -- $-- $-- $ -- $ 1,139 $--
========= ========= ========= ======= ========= ========= ======= ======= ============= =============
Global Trends#
-------------------------------------------------------------------------
Derivative Assets(1) Derivative Liabilities(1)
------------------------------------- -----------------------------------
Forward Forward Net
Foreign Foreign Derivative Collateral
Currency Options Currency Options Assets Pledged/
Counterparty Contracts OTC Swaps Purchased Total Contracts OTC Swaps Written Total (Liabilities) (Received)(2)
---------------------- --------- --------- --------- ------- --------- --------- ------- ------- ------------- -------------
Morgan Stanley & Co.
International PLC.... $ -- $ -- $-- $ -- $50,804 $-- $-- $50,804 $(50,804) $--
State Street Bank and
Trust Co............. 68,382 -- -- 68,382 -- -- -- -- 68,382 --
--------- --------- --------- ------- --------- --------- ------- ------- ------------- -------------
Total................. $68,382 $ -- $-- $68,382 $50,804 $-- $-- $50,804 $ 17,578 $--
========= ========= ========= ======= ========= ========= ======= ======= ============= =============
Net
Counterparty Amount(3)
---------------------- ---------
Goldman Sachs
International........ $ 1,139
=========
Net
Counterparty Amount(3)
---------------------- ---------
Morgan Stanley & Co.
International PLC.... $(50,804)
State Street Bank and
Trust Co............. 68,382
---------
Total................. $ 17,578
=========
--------
(1)Gross amounts of recognized assets and liabilities not offset in the
Statement of Assets and Liabilities.
(2)For each respective counterparty, collateral pledged or (received) is
limited to an amount not to exceed 100% of the derivative asset/liability in
the table above.
(3)Net amount represents the net amount due (to)/from counterparty in the event
of a default based on the contractual set-off rights under the agreement.
# Consolidated (see Note 2)
Repurchase Agreements: The Funds, along with other affiliated registered
investment companies, pursuant to procedures adopted by the Board and
applicable guidance from the Securities and Exchange Commission ("SEC"), may
transfer uninvested cash balances into a single joint account, the daily
aggregate balance of which is invested in one or more repurchase agreements
collateralized by U.S. Treasury or federal agency obligations. In a
repurchase agreement, the seller of a security agrees to repurchase the
security at a mutually agreed-upon time and price, which reflects the
effective rate of return for the term of the agreement. For repurchase
agreements and joint repurchase agreements, the Funds' custodian takes
possession of the collateral pledged for investments in such repurchase
agreements ("repo" or collectively "repos"). The underlying collateral is
valued daily on a mark to market basis, plus accrued interest to ensure that
the value, at the time the agreement is entered into, is equal to at least
102% of the repurchase price, including accrued interest. In the event of
default of the obligation to repurchase, a Fund has the right to liquidate
the collateral and apply the proceeds in satisfaction of the obligation. If
the seller defaults and the value of the collateral declines or if
bankruptcy proceedings are commenced with respect to the seller of the
security, realization of the collateral by a Fund may be delayed or limited.
As of April 30, 2017, the following portfolios held an undivided interest in
the joint repurchase agreement with Bank of America Securities LLC:
Percentage Principal
Fund Ownership Amount
---- ---------- ----------
Commodity Strategy............ 5.96% $2,980,000
Commodity Strategy Subsidiary. 1.61 805,000
Global Trends................. 9.11 4,555,000
Global Trends Subsidiary...... 2.36 1,180,000
81
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
As of such date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
Bank of America Securities LLC, dated April 28, 2017, bearing interest at a
rate of 0.77% per annum, with a principal amount of $50,000,000, a
repurchase price of $50,001,069, and a maturity date of May 1, 2017. The
repurchase agreement is collateralized by the following:
Interest Maturity Principal
Type of Collateral Rate Date Amount Value
------------------ -------- ---------- ----------- -----------
U.S. Treasury Notes. 2.25% 11/15/2025 $51,046,000 $51,549,544
As of April 30, 2017, the following portfolios held an undivided interest in
the joint repurchase agreement with Barclays Capital, Inc:
Percentage Principal
Fund Ownership Amount
---- ---------- ----------
Commodity Strategy............ 5.96% $2,980,000
Commodity Strategy Subsidiary. 1.61 805,000
Global Trends................. 9.11 4,555,000
Global Trends Subsidiary...... 2.36 1,180,000
As of such date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
Barclays Capital, Inc., dated April 28, 2017, bearing interest at a rate of
0.80% per annum, with a principal amount of $50,000,000, a repurchase price
of $50,001,111, and a maturity date of May 1, 2017. The repurchase agreement
is collateralized by the following:
Interest Maturity Principal
Type of Collateral Rate Date Amount Value
------------------ -------- --------- ----------- -----------
U.S. Treasury Bonds. 2.88% 8/15/2045 $52,108,000 $51,404,576
As of April 30, 2017, the following portfolios held an undivided interest in
the joint repurchase agreement with BNP Paribas SA:
Percentage Principal
Fund Ownership Amount
---- ---------- ----------
Commodity Strategy............ 5.99% $5,090,000
Commodity Strategy Subsidiary. 1.62 1,375,000
Global Trends................. 9.12 7,750,000
Global Trends Subsidiary...... 2.38 2,020,000
As of such date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
BNP Paribas SA, dated April 28, 2017, bearing interest at a rate of
0.82% per annum, with a principal amount of $85,000,000, a repurchase price
of $85,001,936, and a maturity date of May 1, 2017. The repurchase agreement
is collateralized by the following:
Interest Maturity Principal
Type of Collateral Rate Date Amount Value
------------------ -------- --------- ----------- -----------
U.S. Treasury Notes. 2.13% 9/30/2021 $85,347,800 $86,804,687
As of April 30, 2017, the following portfolios held an undivided interest in
the joint repurchase agreement with Deutsche Bank AG:
Percentage Principal
Fund Ownership Amount
---- ---------- ----------
Commodity Strategy............ 5.96% $2,420,000
Commodity Strategy Subsidiary. 1.60 650,000
Global Trends................. 9.11 3,700,000
Global Trends Subsidiary...... 2.36 960,000
82
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
As of such date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
Deutsche Bank AG, dated April 28, 2017, bearing interest at a rate of
0.83% per annum, with a principal amount of $40,625,000, a repurchase price
of $40,625,937, and a maturity date of May 1, 2017. The repurchase agreement
is collateralized by the following:
Interest Maturity Principal
Type of Collateral Rate Date Amount Value
------------------ -------- --------- ----------- -----------
U.S. Treasury Notes. 3.63% 2/15/2020 $38,814,000 $41,458,398
As of April 30, 2017, the following portfolios held an undivided interest in
the joint repurchase agreement with RBS Securities, Inc.:
Percentage Principal
Fund Ownership Amount
---- ---------- ----------
Commodity Strategy............ 5.96% $4,460,000
Commodity Strategy Subsidiary. 1.61 1,205,000
Global Trends................. 9.11 6,815,000
Global Trends Subsidiary...... 2.37 1,770,000
As of such date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
RBS Securities, Inc., dated April 28, 2017, bearing interest at a rate of
0.76% per annum, with a principal amount of $74,800,000, a repurchase price
of $74,801,579, and a maturity date of May 1, 2017. The repurchase agreement
is collateralized by the following:
Interest Maturity Principal
Type of Collateral Rate Date Amount Value
------------------ -------- --------- ----------- -----------
U.S. Treasury Notes. 1.63% 2/15/2026 $80,134,000 $76,283,476
Securities Transactions, Investment Income, Expenses, Dividends and
Distributions to Shareholders: Securities 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. For financial statement purposes, the Funds amortize all
premiums and accrete all discounts on fixed income securities. Dividend
income is recorded on the ex-dividend date except for certain dividends from
foreign securities, which are recorded as soon as the Trust is informed
after the ex-dividend date.
Securities purchased or sold on a when-issued or forward commitment basis
are included in investments purchased/sold on an extended settlement basis
in the Statement of Assets and Liabilities.
Distributions received from Real Estate Investment Trusts ("REIT")
investments are recharacterized based on information provided by the REIT
into the following categories: ordinary income, long-term and short-term
capital gains and return of capital. If information is not available on a
timely basis from the REIT, the recharacterization will be based on
available information which may include the previous year's allocation. If
new or additional information becomes available from the REIT at a later
date, a recharacterization will be made in the following year. The amount
recharacterized as ordinary income is recorded as dividend income and the
amount recharacterized as capital gain is recorded as realized gain in the
Statement of Operations. The amount recharacterized as return of capital is
recorded as a reduction to the cost of investments in the Statement of
Assets and Liabilities. These recharacterizations are reflected in the
accompanying financial statements.
Expenses common to all Funds are allocated among the Funds based on relative
net assets or other appropriate methods. In all other respects, expenses are
charged to each Fund as incurred on a specific identification basis.
83
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
Net investment income, other than class specific expenses, and realized and
unrealized gains and losses are allocated daily to each class of shares
based upon the relative net asset value of outstanding shares (or the value
of dividend-eligible shares, as appropriate) of each class of shares at the
beginning of the day (after adjusting for the current capital share activity
of the respective class).
Dividends from net investment income, if any, are normally paid monthly for
the Income Explorer Fund. All other Funds pay annually. Each of the Funds
reserves the right to declare and pay dividends less frequently than
disclosed above, provided that the net realized capital gains and the net
investment income, if any, are paid at least annually. The Funds record
dividends and distributions to their 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 these reclassifications.
Each Fund is considered a separate entity for tax purposes and intends to
comply with the requirements of the Internal Revenue Code, as amended,
applicable to regulated investment companies and distribute all of its
taxable income, including any net capital gains on investments, to its
shareholders. Each Fund also intends to distribute sufficient net investment
income and net capital gains, if any, so that each Fund will not be subject
to excise tax on undistributed income and gains. Therefore, no federal
income tax or excise tax provision is required.
Each Fund recognizes the tax benefits of uncertain tax positions only when
the position is more likely than not to be sustained, assuming examination
by tax authorities. Management has analyzed each Fund's tax positions and
concluded that no liability for unrecognized tax benefits should be recorded
related to uncertain tax positions taken on returns filed for open tax years
2013 -2015 or expected to be taken in each Funds' 2016 tax return. The Funds
are not aware of any tax provisions for which it is reasonably possible that
the total amounts of unrecognized tax benefits will change materially in the
next twelve months. The Funds file U.S. federal and certain state income tax
returns. With few exceptions, the Funds are no longer subject to U.S.
federal and state tax examinations by tax authorities for tax returns ending
before 2013.
Foreign Currency Translation: The books and records of the Funds are
maintained in U.S. dollars. Assets and liabilities denominated in foreign
currencies and commitments under forward foreign currency contracts are
translated into U.S. dollars based on the exchange rate of such currencies
against U.S. dollars on the date of valuation.
The Funds do not isolate that portion of the results of operations arising
as a result of changes in the foreign exchange rates from the changes in the
market prices of securities held at the end of the Period. Similarly, the
Funds do not isolate the effect of changes in foreign exchange rates from
the changes in the market prices of portfolio securities sold during the
period.
Realized foreign exchange gains and losses on other assets and liabilities
and change in unrealized foreign exchange gains and losses on other assets
and liabilities located in the Statements of Operations include realized
foreign exchange gains and losses from currency gains or losses between the
trade and the settlement dates of securities transactions, the difference
between the amounts of interest, dividends and foreign withholding taxes
recorded on the Funds' books and the U.S. dollar equivalent amounts actually
received or paid and changes in the unrealized foreign exchange gains and
losses relating to the other assets and liabilities arising as a result of
changes in the exchange rates and realized gains and losses on forward
foreign currency contracts.
Organization and Offering Costs: Organization costs incurred in connection
with the commencement of the AIG ESG Dividend Fund are expensed, while
offering costs are reflected as "Deferred offering costs" in the Statement
of Assets and Liabilities of the Fund, and amortized over a 12-month period.
Note 4. Investment Advisory and Management Agreements, Distribution and Service
Agreements
The Trust, on behalf of each Fund, has entered into Investment Advisory and
Management Agreements (the "Agreements") with SunAmerica. Under the
Agreements, SunAmerica provides continuous supervision of each Fund's
portfolio and administrative
84
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
affairs, subject to general review by the Board. In connection therewith,
SunAmerica furnishes the Funds with office facilities, maintains certain of
the Funds' books and records, pays the salaries and expenses of all
personnel, including officers of the Funds who are employees of SunAmerica
and its affiliates and oversees the performance of services provided to the
Funds by third parties. Pursuant to the Agreements, the Funds pay SunAmerica
a management fee at an annual rate based on average daily net assets, which
is computed daily and payable monthly, as follows:
Fund Percentage
---- ----------
2020 High Watermark(1)... 0.65%
Commodity Strategy....... 1.00
ESG Dividend............. 0.75
Focused Alpha Large-Cap.. 1.00
Focused Multi-Cap Growth. 1.00
Global Trends............ 1.10
Income Explorer.......... 1.00
Small-Cap................ 1.00
--------
(1)If the 2020 High Watermark Fund's portfolio becomes completely and
irreversibly invested in fixed income securities, the management fees for
the Fund will be reduced to 0.40%, for the remainder of the period.
The Commodity Strategy Subsidiary has entered into a separate contract with
SunAmerica whereby SunAmerica provides investment advisory and other
services to the Commodity Strategy Subsidiary. In consideration of these
services, the Commodity Strategy Subsidiary pays SunAmerica a management fee
at the annual rate of 1.00% of average daily net assets of the Commodity
Strategy Subsidiary. SunAmerica has contractually agreed to waive the
management fee it receives from the Commodity Strategy Fund in an amount
equal to the management fee paid by the Commodity Strategy Subsidiary to
SunAmerica (the "Commodity Strategy Subsidiary management fee waiver"). This
waiver may not be terminated by SunAmerica, and will remain in effect for as
long as SunAmerica's contract with the Commodity Strategy Subsidiary is in
place. For the six months ended April 30, 2017, the amount of advisory fees
waived was $39,439.
The Global Trends Subsidiary has entered into a separate contract with
SunAmerica whereby SunAmerica provides investment advisory and other
services to the Global Trends Subsidiary. In consideration of these
services, the Global Trends Subsidiary pays SunAmerica a management fee at
the annual rate of 1.10% of average daily net assets of the Global Trends
Subsidiary. SunAmerica has contractually agreed to waive the management fee
it receives from the Global Trends Fund in an amount equal to the management
fee paid by the Global Trends Subsidiary to SunAmerica (the "Global Trends
Subsidiary management fee waiver"). This waiver may not be terminated by
SunAmerica, and will remain in effect for as long as SunAmerica's contract
with the Global Trends Subsidiary is in place. For the six months ended
April 30, 2017, the amount of advisory fees waived was $41,549.
Pursuant to the Subadvisory Agreement between SunAmerica, Trajectory and the
Trust (the "High Watermark Subadvisory Agreement"), SunAmerica has delegated
portfolio management responsibilities to Trajectory. Trajectory's fee will
be 43% of the net management fee. The term "net management fee" means the
gross management fee less any fund waivers and/or reimbursement made by
SunAmerica. SunAmerica has agreed to pay Trajectory a minimum annual fee
equal to 0.20% of the 2020 High Watermark Fund's average daily net assets,
accrued daily and payable monthly (the "Minimum Fee"). Effective October 1,
2014, the High Watermark Subadvisory Agreement was amended with respect to
the Minimum Fee (the "Minimum Fee Agreement"). In particular, effective as
of October 1, 2016 until October 31, 2017, the Minimum Fee is equal to the
greater of 0.20% of the Fund's average daily net assets, accrued daily and
payable monthly, or $38,500 per month. The Minimum Fee will continue in
effect for successive annual periods ending October 31, upon mutual
agreement of SunAmerica and Trajectory, and subject to approval by the
Board, including a majority of Trustees who are not parties to the High
Watermark Subadvisory Agreement or interested persons of any such party.
Payments to Trajectory for its services are made by SunAmerica, not by the
Funds. Notwithstanding the Minimum Fee Agreement, the continuation of the
Minimum Fee was most recently approved at the June 7, 2016 board meeting to
continue in effect until October 31, 2017.
Pursuant to the Subadvisory Agreement between SunAmerica and Wellington
Management Company LLP ("Wellington") (the "Commodity Strategy Subadvisory
Agreement"), SunAmerica has delegated portfolio management responsibilities
of the
85
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
Commodity Strategy Fund to Wellington and pays Wellington a subadvisory fee
at an annual rate of 0.40% of the average daily net assets of the Fund.
Pursuant to a Subadvisory Agreement between SunAmerica and Wellington with
respect to the Commodity Strategy Subsidiary, SunAmerica has delegated
portfolio management responsibilities of the Commodity Strategy Subsidiary
to Wellington and pays Wellington a subadvisory fee at an annual rate of
0.40% of average daily net assets of the
Commodity Strategy Subsidiary. Payments to Wellington for its services are
made by SunAmerica, not by the Fund. Wellington has contractually agreed to
waive the subadvisory fee it receives with respect to the Commodity Strategy
Fund in an amount equal to the subadvisory fee paid by SunAmerica to
Wellington with respect to the Commodity Strategy Subsidiary. This waiver
may not be terminated by Wellington and will remain in effect for as long as
the contract with the Commodity Strategy Subsidiary is in place.
Pursuant to the Subadvisory Agreement between SunAmerica and Marisco and the
Subadvisory Agreement between SunAmerica and Blackrock Investment
Management, LLC ("Blackrock"), SunAmerica has delegated portfolio management
responsibilities of the Focused Alpha Large-Cap Fund to Marisco and
Blackrock. SunAmerica pays Marisco and Blackrock a fee equal to a percentage
of the average daily total assets of the Fund allocated to each Subadviser.
For the year ended October 31, 2016, SunAmerica paid Marisco and Blackrock
at an aggregate annual rate of 0.40% of the Fund's average daily total net
assets. Marsico is responsible for managing the large-cap growth portion of
the Fund and Blackrock is responsible for managing the large-cap value
portion of the Fund. Each Subadviser is paid by SunAmerica and not the Fund.
Pursuant to the Subadvisory Agreement between SunAmerica and Marisco Capital
Management, LLC ("Marisco"), and the Subadvisory Agreement between
SunAmerica and BAMCO, Inc. ("BAMCO"), SunAmerica has delegated portfolio
management responsibilities of the Focused Multi-Cap Growth Fund to Marisco
and BAMCO. SunAmerica pays Marisco and BAMCO a fee equal to a percentage of
the average daily total assets of the Fund allocated to each Subadviser. For
the year ended October 31, 2016, SunAmerica paid Marisco and BAMCO at an
aggregate annual rate of 0.47% of the Fund's average daily total net assets.
Marsico is responsible for managing the large-cap portion of the Fund and
BAMCO is responsible for managing the small- and mid-cap portion of the
Fund. Each subadviser is paid by SunAmerica and not the Fund.
Pursuant to the Subadvisory Agreement between SunAmerica and Wellington (the
"Global Trends Subadvisory Agreement"), SunAmerica has delegated portfolio
management responsibilities of Global Trends Fund to Wellington and pays
Wellington a subadvisory fee at an annual rate of 0.45% of the average daily
net assets of the Fund on the first $1 billion and 0.40% thereafter.
Pursuant to a Subadvisory Agreement between SunAmerica and Wellington with
respect to the Global Trends Subsidiary, SunAmerica has delegated portfolio
management responsibilities of the Global Trends Subsidiary to Wellington
and pays Wellington a subadvisory fee at an annual rate of 0.45% of average
daily net assets of the Global Trends Subsidiary on the first $1 billion and
0.40% thereafter. Payments to Wellington for its services are made by
SunAmerica, not by the Fund. Wellington has contractually agreed to waive
the subadvisory fee it receives with respect to the Global Trends Fund in an
amount equal to the subadvisory fee paid by SunAmerica to Wellington with
respect to the Global Trends Subsidiary. This waiver may not be terminated
by Wellington and will remain in effect for as long as Wellington's contract
with the Global Trends Subsidiary is in place.
Pursuant to the subadvisory agreement between SunAmerica and Cohen & Steers
Capital Management, Inc. ("Cohen & Steers"), SunAmerica has delegated a
portion of portfolio management responsibilities of the Income Explorer Fund
to Cohen & Steers. For its services under the Subadvisory Agreement, Cohen &
Steers will receive a subadvisory fee at an annual rate of 0.40% of the
average daily net assets on the first $200 million, 0.35% on the next $200
million and 0.30% thereafter of the portion of the Fund that it manages.
Cohen and Steers is paid by SunAmerica and not by the Fund.
Pursuant to the Subadvisory Agreement between SunAmerica and Cadence Capital
Management, LLC ("Cadence"), SunAmerica has delegated a portion of portfolio
management responsibilities of the Small-Cap Fund to Cadence. Cadence is
responsible for managing the micro-cap growth portion of the Fund. For its
services under the Subadvisory Agreement, Cadence will receive a subadvisory
fee at an annual rate of 0.50% of the average daily net assets of the
portion of the Fund that it manages. Cadence is paid by SunAmerica and not
by the Fund.
SunAmerica has contractually agreed to waive fees and/or reimburse expenses
to the extent necessary to cap the Funds' annual Fund operating expense at
the following percentages of each Class's average daily net assets. For the
purposes of waived fee and/or reimbursed expense calculations, annual Fund
operating expenses shall not include extraordinary expenses (i.e., expenses
that
86
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
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 a Fund's business. The contractual
expense fee
waivers and expense reimbursements will continue in effect indefinitely,
unless terminated by the Trustees, including a majority of the Disinterested
Trustees.
Fund Percentage
---- ----------
2020 High Watermark Class A...... 1.65%
2020 High Watermark Class C...... 2.30
2020 High Watermark Class I...... 1.18
Commodity Strategy Class A#...... 1.72
Commodity Strategy Class C#...... 2.37
Commodity Strategy Class W#...... 1.52
ESG Dividend Class A............. 1.25
ESG Dividend Class C............. 1.90
ESG Dividend Class W............. 1.05
Focused Alpha Large-Cap Class A.. 1.72
Focused Alpha Large-Cap Class C.. 2.37
Focused Alpha Large-Cap Class W.. 1.52
Focused Multi-Cap Growth Class A. 1.72
Focused Multi-Cap Growth Class C. 2.37
Focused Multi-Cap Growth Class W. 1.52
Global Trends Class A#........... 1.85
Global Trends Class C#........... 2.50
Global Trends Class W#........... 1.65
Income Explorer Class A.......... 1.72
Income Explorer Class C.......... 2.37
Income Explorer Class W.......... 1.52
Small-Cap Class A................ 1.72
Small-Cap Class C................ 2.37
Small-Cap Class W................ 1.52
Any contractual waivers and/or reimbursements made by SunAmerica with
respect to a Fund, with the exception of the Subsidiary management fee
waivers, are subject to recoupment from the Funds within two years after the
occurrence of any such waivers and/or reimbursements, provided that the
Funds are able to effect such payment to SunAmerica and remain in compliance
with the expense limitations in effect at the time the waivers and/or
reimbursements were made.
SunAmerica may also voluntarily waive fees and/or reimburse expenses,
including to increase the investment return to the Funds' investors or, with
respect to the 2020 High Watermark Fund, to prevent an Early Closure
Condition from occurring, however, it is under no obligation to do so and
may discontinue such voluntary waivers at any time. The exact amount of such
waivers and/or reimbursements may change on a day-to-day basis. For the six
months ended April 30, 2017, SunAmerica voluntarily waived and/or reimbursed
expenses in the amount of $66,658 for 2020 High Watermark Fund.
For the six months ended April 30, 2017, pursuant to the contractual expense
limitations referred above, SunAmerica has waived or reimbursed expenses as
follows:
Other
Expenses
Fund Reimbursed
---- ----------
2020 High Watermark...... $55,596
Commodity Strategy#...... 72,533
ESG Dividend............. 97,846
Focused Alpha Large-Cap.. --
Focused Multi-Cap Growth. --
Global Trends#........... 31,734
Income Explorer.......... 16,733
Small-Cap................ 11,729
--------
# Consolidated (see Note 2)
87
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
Class
Specific
Expenses
Fund Reimbursed
---- ----------
2020 High Watermark Class A...... $17,224
2020 High Watermark Class C...... 5,339
2020 High Watermark Class I...... 22,694
Commodity Strategy Class A#...... 52,061
Commodity Strategy Class C#...... 10,335
Commodity Strategy Class W#...... 8,232
ESG Dividend Class A............. 15,313
ESG Dividend Class C............. 2,576
ESG Dividend Class W............. 2,612
Focused Alpha Large-Cap Class A.. --
Focused Alpha Large-Cap Class C.. --
Focused Alpha Large-Cap Class W.. 675
Focused Multi-Cap Growth Class A. --
Focused Multi-Cap Growth Class C. --
Focused Multi-Cap Growth Class W. --
Global Trends Class A#........... 43,204
Global Trends Class C#........... 9,313
Global Trends Class W#........... 5,489
Income Explorer Class A.......... 34,786
Income Explorer Class C.......... 8,469
Income Explorer Class W.......... 4,726
Small-Cap Class A................ 60,642
Small-Cap Class C................ 5,244
Small-Cap Class W................ 5,378
For the six months ended April 30, 2017, the amounts recouped by SunAmerica
are as follows:
Other
Expenses
Fund Recouped
---- --------
2020 High Watermark...... $--
Commodity Strategy#...... --
ESG Dividend............. --
Focused Alpha Large-Cap.. --
Focused Multi-Cap Growth. --
Global Trends#........... --
Income Explorer.......... --
Small-Cap................ --
Class Specific
Expenses
Fund Recouped
---- --------------
2020 High Watermark Class A...... $ --
2020 High Watermark Class C...... --
2020 High Watermark Class I...... --
Commodity Strategy Class A#...... --
Commodity Strategy Class C#...... --
Commodity Strategy Class W#...... --
ESG Dividend Class A............. --
ESG Dividend Class C............. --
ESG Dividend Class W............. --
Focused Alpha Large-Cap Class A.. --
Focused Alpha Large-Cap Class C.. --
Focused Alpha Large-Cap Class W.. 475
Focused Multi-Cap Growth Class A. --
--------
# Consolidated (see Note 2)
88
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
Class Specific
Expenses
Fund Recouped
---- --------------
Focused Multi-Cap Growth Class C. $--
Focused Multi-Cap Growth Class W. --
Global Trends Class A#........... --
Global Trends Class C#........... --
Global Trends Class W#........... --
Income Explorer Class A.......... --
Income Explorer Class C.......... --
Income Explorer Class W.......... --
Small-Cap Class A................ --
Small-Cap Class C................ --
Small-Cap Class W................ --
At April 30, 2017, expenses previously waived and/or reimbursed by
SunAmerica that are subject to recoupment and expire during the time periods
indicated are as follows:
Other expenses Reimbursed
---------------------------------
October 31, October 31, April 30,
Fund 2017 2018 2019
---- ----------- ----------- ---------
2020 High Watermark...... $ 51,002 $ 87,641 $55,597
Commodity Strategy#...... 149,041 149,957 72,534
ESG Dividend............. -- -- 97,846
Focused Alpha Large-Cap.. -- -- --
Focused Multi-Cap Growth. -- -- --
Global Trends#........... 23,149 22,366 31,735
Income Explorer.......... 20,564 56,703 16,734
Small-Cap................ 49,649 12,417 11,730
Class Specific Expenses Reimbursed
---------------------------------
October 31, October 31, April 30,
Fund 2017 2018 2019
---- ----------- ----------- ---------
2020 High Watermark Class A...... $24,413 $ 47,892 $17,225
2020 High Watermark Class C...... 9,700 18,496 5,339
2020 High Watermark Class I...... 29,795 53,940 22,694
Commodity Strategy Class A#...... 54,091 102,005 52,061
Commodity Strategy Class C#...... 13,279 24,496 10,335
Commodity Strategy Class W#...... 10,945 19,379 8,232
ESG Dividend Class A............. -- -- 15,313
ESG Dividend Class C............. -- -- 2,576
ESG Dividend Class W............. -- -- 2,612
Focused Alpha Large-Cap Class A.. -- -- --
Focused Alpha Large-Cap Class C.. -- -- --
Focused Alpha Large-Cap Class W.. 3,197 12,013 675
Focused Multi-Cap Growth Class A. -- -- --
Focused Multi-Cap Growth Class C. -- -- --
Focused Multi-Cap Growth Class W. -- -- --
Global Trends Class A#........... 49,838 91,951 43,205
Global Trends Class C#........... 18,172 30,337 9,313
Global Trends Class W#........... 9,637 18,580 5,489
Income Explorer Class A.......... 33,519 69,616 34,786
Income Explorer Class C.......... 10,902 21,422 8,469
Income Explorer Class W.......... 6,608 14,961 4,726
Small-Cap Class A................ 46,636 108,535 60,643
Small-Cap Class C................ 5,911 15,918 5,244
Small-Cap Class W................ 4,981 14,648 5,378
--------
# Consolidated (see Note 2)
89
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
The Trust, on behalf of each Fund, has a Distribution Agreement with AIG
Capital Services, Inc. ("ACS" or the "Distributor"), an affiliate of the
Adviser. Each Fund has adopted a Distribution Plan on behalf of its Class A
shares and Class C shares (each a "Plan" and collectively, the "Plans") in
accordance with the provisions of Rule 12b-1 under the 1940 Act, hereinafter
referred to as the "Class A Plan" and the "Class C Plan." In adopting the
Plans, the Trustees 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 a Fund at an annual rate of 0.10% and 0.75%, respectively, of average
daily net assets of such Fund's Class 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 Plan may exceed the Distributor's distribution costs
as described above. The Plans further provide that the Class A and Class C
shares of each Fund shall pay the Distributor an account maintenance fee up
to an annual rate of 0.25% of the average daily net assets of such class of
shares for payments to broker-dealers for providing account maintenance
activities. For the six months ended April 30, 2017, ACS received fees based
upon the aforementioned rates (see Statement of Operations).
The Trust, on behalf of the 2020 High Watermark Fund, has entered into an
Administrative and Shareholder Services Agreement with ACS, pursuant to
which ACS is paid an annual fee of 0.25% of average daily net assets of
Class I shares as compensation for providing administrative and shareholder
services to Class I shareholders. For the six months ended April 30, 2017,
ACS earned fees based upon the aforementioned rates (see Statement of
Operations). The Trust, on behalf of the Commodity Strategy, ESG Dividend,
Focused Alpha Large-Cap, Focused Multi-Cap Growth, Global Trends, Income
Explorer and Small-Cap Funds, has entered into an Administrative and
Shareholder Services Agreement with ACS, pursuant to which ACS is paid an
annual fee of 0.15% of average daily net assets of Class W shares as
compensation for providing administrative and shareholder services to Class
W shareholders. For the six months ended April 30, 2017, ACS earned fees
based upon the aforementioned rates (see Statement of Operations).
ACS receives sales charges on each Fund's Class A shares, portions of which
are reallocated to affiliated broker-dealers and nonaffiliated
broker-dealers. ACS also receives the proceeds of contingent deferred sales
charges paid by investors in connection with certain redemptions of each
Fund's Class A and Class C shares. ACS has advised the Funds that for the
six months ended April 30, 2017, the proceeds received from sales (and paid
out to affiliated and non-affiliated broker-dealers) and redemptions are as
follows:
Class A Class A Class C
-------------------------------------- ------------- -------------
Contingent Contingent
Sales Affiliated Non-affiliated Deferred Deferred
Fund Charges Broker-dealers Broker-dealers Sales Charges Sales Charges
---- -------- -------------- -------------- ------------- -------------
2020 High Watermark...... $ -- $ -- $ -- $ -- $ --
Commodity Strategy....... 7,070 1,065 4,824 -- 59
ESG Dividend............. -- -- -- -- --
Focused Alpha Large-Cap.. 149,177 23,649 91,804 260 742
Focused Multi-Cap Growth. 269,561 75,925 135,487 11,101 1,666
Global Trends............ 5,459 708 3,801 -- 16
Income Explorer.......... 43,624 3,430 31,449 -- 9
Small-Cap................ 18,145 3,079 11,965 -- 17
The Trust has entered into a Service Agreement with AIG Fund Services, Inc.
("AFS"), an affiliate of the Adviser. Under the Service Agreement, AFS
performs certain shareholder account functions by assisting the Funds'
transfer agent, State Street Bank and Trust Company in connection with the
services that it offers to the shareholders of the Funds. Pursuant to the
Service Agreement, the Funds pay a fee to AFS for services rendered based
upon an annual rate of 0.22% of daily net assets. For the six months ended
April 30, 2017, the Funds incurred the following expenses which are included
in transfer agent fees payable in the Statement of Assets and Liabilities
and in transfer agent fees and expenses in the Statement of Operations to
compensate AFS pursuant to the terms of the Service Agreement.
90
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
Payable at
Fund Expenses April 30, 2017
---- -------- --------------
2020 High Watermark Class A...... $ 19,629 $ 3,103
2020 High Watermark Class C...... 1,777 276
2020 High Watermark Class I...... 7,995 1,305
Commodity Strategy Class A....... 38,353 6,100
Commodity Strategy Class C....... 3,629 561
Commodity Strategy Class W....... 2,025 326
ESG Dividend Class A............. 12,597 3,702
ESG Dividend Class C............. 275 61
ESG Dividend Class W............. 276 62
Focused Alpha Large-Cap Class A.. 475,989 80,242
Focused Alpha Large-Cap Class C.. 121,004 20,319
Focused Alpha Large-Cap Class W.. 10,235 2,029
Focused Multi-Cap Growth Class A. 406,352 69,375
Focused Multi-Cap Growth Class C. 88,425 15,085
Focused Multi-Cap Growth Class W. 30,258 5,353
Global Trends Class A............ 34,852 5,690
Global Trends Class C............ 4,674 720
Global Trends Class W............ 1,305 197
Income Explorer Class A.......... 25,346 4,624
Income Explorer Class C.......... 3,937 715
Income Explorer Class W.......... 836 213
Small-Cap Class A................ 51,934 8,882
Small-Cap Class C................ 1,216 245
Small-Cap Class W................ 1,879 732
At April 30, 2017, SunAmerica Series, Inc. AIG Active Allocation Fund and
AIG Multi-Asset Allocation Fund ("Strategy Funds") and VALIC, an affiliate
of the Adviser through their insurance company separate accounts, owned 5%
or more of the outstanding shares of the following Funds:
Holder
--------------------------------------
AIG Active AIG Multi-Asset
Fund Allocation Fund Allocation Fund VALIC
---- --------------- --------------- -------
2020 High Watermark. -- % -- % 28.35%
Commodity Strategy.. 7.25 63.22 --
Global Trends....... 27.17 36.39 --
Income Explorer..... 9.73 42.19 --
Small-Cap........... 19.39 54.29 --
The Strategy Portfolios do not invest in the underlying funds for the
purpose of exercising management or control; however, investments by these
Portfolios within the set limits across their asset allocations may
represent a significant portion of net assets of the underlying funds.
Note 5. Purchases and Sales of Investment Securities
The cost of purchases and proceeds from sales and maturities of long-term
investments during the six months ended April 30, 2017 were as follows:
Purchases Sales
of portfolio of portfolio
securities securities Purchases Sales
(excluding U.S. (excluding U.S. of U.S. of U.S.
government government government government
Fund securities securities securities securities
---- --------------- --------------- ---------- ----------
2020 High Watermark. $ -- $ -- $-- $2,551,591
Commodity Strategy#. -- 157,183 -- --
ESG Dividend........ 21,431,906 1,147,797 -- --
--------
# Consolidated (See Note 2)
91
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
Purchases Sales
of portfolio of portfolio
securities securities Purchases Sales
(excluding U.S. (excluding U.S. of U.S. of U.S.
government government government government
Fund securities securities securities securities
---- --------------- --------------- ---------- ----------
Focused Alpha Large-Cap.. 155,190,869 160,940,245 -- --
Focused Multi-Cap Growth. 134,706,907 148,266,381 -- --
Global Trends#........... -- -- -- --
Income Explorer.......... 7,444,782 3,666,878 -- --
Small-Cap................ 15,498,026 11,772,942 -- --
--------
# Consolidated (see Note 2)
Note 6. Federal Income Taxes
The following details the tax basis distributions as well as the components
of distributable earnings. The tax basis components of distributable
earnings differ from the amounts reflected in the Statement of Assets and
Liabilities by temporary book/tax differences primarily due to taxable
income from a wholly-owned foreign subsidiary, amortization of
organizational costs, late year ordinary loss deferral, partnership
investments, investments in passive foreign investment companies, wash sales
and derivative transactions.
Distributable Earnings Tax Distributions
-------------------------------------- ------------------------
For the year ended October 31, 2016
----------------------------------------------------------------
Long-term Unrealized
Ordinary Gains/Capital Appreciation Ordinary Long-Term
Fund Income Loss Carryover (Depreciation)* Income Capital Gains
---- -------- -------------- --------------- ---------- -------------
2020 High Watermark...... $580,704 $ (1,314,425) $ 2,696,047 $ 794,004 $ --
Commodity Strategy#...... -- (83,767,439) (10,613,977) -- --
Focused Alpha Large-Cap.. -- -- 55,212,629 76 61,020,402
Focused Multi-Cap Growth. -- 7,760,355 112,744,077 -- 70,160,278
Global Trends#........... -- (520,791) (16,877,075) 900,316 744,486
Income Explorer.......... 1,627 (1,319,457) (31,645) 1,185,360 --
Small-Cap................ -- 1,432,018 1,727,659 1,750,124 2,210,846
--------
* Unrealized appreciation (depreciation) includes amounts for derivatives and
other assets and liabilities denominated in foreign currency.
# Consolidated (see Note 2)
As of October 31, 2016, for Federal income tax purposes, the Funds indicated
below have capital loss carryforwards, which expire in the year indicated,
which are available to offset future capital gains, if any:
Capital Loss
Carryforward+ Unlimited+
------------- -----------------------
Fund 2017 ST LT
---- ------------- ----------- -----------
2020 High Watermark...... $1,314,425 $ -- $ --
Commodity Strategy#...... -- 51,867,975 31,899,464
Focused Alpha Large-Cap.. -- -- --
Focused Multi-cap Growth. -- -- --
Global Trends#........... -- 328,100 192,691
Income Explorer.......... -- 1,186,379 133,078
Small-Cap................ -- -- --
--------
+ 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 effective for taxable years beginning after the date of enactment. Under
the Act, a Fund will be permitted to carry forward capital losses incurred
in taxable years beginning after the date of enactment without expiration.
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.
92
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
Under the current tax law, late year ordinary losses may be deferred and
treated as occurring on the first day of the following year. For the fiscal
year ended October 31, 2016 the Funds elected to defer late year ordinary
losses as follows:
Deferred Late Year
Fund Ordinary Loss
---- ------------------
2020 High Watermark...... $ --
Commodity Strategy#...... 353,372
Focused Alpha Large-Cap.. 2,828,995
Focused Multi-Cap Growth. 5,280,096
Global Trends#........... 449,634
Income Explorer.......... --
Small-Cap................ 196,200
--------
# Consolidated (see Note 2)
At April 30, 2017, the amounts of aggregate unrealized gain (loss) and the
cost of investment securities for federal tax purposes, including short-term
securities and repurchase agreements, were as follows:
Aggregate Aggregate Net
Unrealized Unrealized Unrealized Cost of
Fund Gain Loss Gain/(Loss) Investments
---- ------------ ------------ ------------ ------------
2020 High Watermark...... $ 1,816,444 $ (19,065) $ 1,797,379 $ 23,620,863
Commodity Strategy#...... 2,623 (10,609,520) (10,606,897) 48,395,539
ESG Dividend............. 1,133,077 (476,062) 657,015 20,382,911
Focused Alpha Large-Cap.. 135,459,038 (5,044,356) 130,414,682 449,849,960
Focused Multi-Cap Growth. 164,120,596 (1,223,617) 162,896,979 346,720,301
Global Trends#........... -- (16,670,392) (16,670,392) 51,457,487
Income Explorer.......... 1,413,042 (16,761) 1,396,281 30,138,774
Small-Cap................ 11,690,337 (3,342,949) 8,347,388 47,570,687
--------
# Consolidated (see Note 2)
Note 7. Capital Share Transactions
Transactions in capital shares of each class of each Fund were as follows:
2020 High Watermark Fund
---------------------------------------------------------------------------------------
Class A Class A Class C Class C
--------------------- --------------------- ------------------ ---------------------
For the For the
six months ended For the six months ended For the
April 30, 2017 year ended April 30, 2017 year ended
(unaudited) October 31, 2016 (unaudited) October 31, 2016
--------------------- --------------------- ------------------ ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ----------- ------- --------- -------- -----------
Shares sold(1)(2)........ 41,172 365,565 146,886 1,326,432 -- $ -- 2,565 $ 23,300
Reinvested shares........ 51,197 446,433 55,864 495,515 2,421 21,330 6,367 56,789
Shares redeemed(1)(2).... (254,340) (2,234,835) (500,855) (4,548,201) (47,072) (418,591) (195,699) (1,773,314)
-------- ----------- -------- ----------- ------- --------- -------- -----------
Net increase (decrease).. (161,971) $(1,422,837) (298,105) $(2,726,254) (44,651) $(397,261) (186,767) $(1,693,225)
======== =========== ======== =========== ======= ========= ======== ===========
2020 High Watermark Fund
--------------------------------------------
Class I Class I
--------------------- ---------------------
For the
six months ended For the
April 30, 2017 year ended
(unaudited) October 31, 2016
--------------------- ---------------------
Shares Amount Shares Amount
-------- ----------- -------- -----------
Shares sold.............. -- $ -- -- $ --
Reinvested shares........ 24,943 217,502 26,398 234,154
Shares redeemed.......... (37,289) (329,295) (90,580) (822,374)
-------- ----------- -------- -----------
Net increase (decrease).. (12,346) $ (111,793) (64,182) $ (588,220)
======== =========== ======== ===========
--------
(1)For the six months ended April 30, 2017, includes automatic conversion of
7,354 shares of Class C shares in the amount of $65,081 to 7,401 shares of
Class A shares in the amount of $65,081.
(2)For the year ended October 31, 2016, includes automatic conversion of 40,729
shares of Class C shares in the amount of $369,413 to 40,819 shares of
Class A shares in the amount of $369,413.
93
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
Commodity Strategy Fund#
------------------------------------------------------------------------------------------------
Class A Class A Class C Class C
--------------------- ----------------------- ------------------------- ---------------------
For the
six months ended For the For the For the
April 30, 2017 year ended six months ended year ended
(unaudited) October 31, 2016 April 30, 2017 (unaudited) October 31, 2016
--------------------- ----------------------- ------------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- ---------- ----------- ------- --------- -------- -----------
Shares sold.............. 252,273 $ 1,851,268 1,263,406 $ 8,608,279 16,676 $ 116,072 34,645 $ 234,345
Reinvested shares........ -- -- -- -- -- -- -- --
Shares redeemed.......... (467,057) (3,370,620) (1,082,731) (7,486,184) (79,076) (547,877) (258,933) (1,694,699)
-------- ----------- ---------- ----------- ------- --------- -------- -----------
Net increase (decrease).. (214,784) $(1,519,352) 180,675 $ 1,122,095 (62,400) $(431,805) (224,288) $(1,460,354)
======== =========== ========== =========== ======= ========= ======== ===========
Commodity Strategy Fund#
----------------------------------------------
Class W Class W
--------------------- -----------------------
For the
six months ended For the
April 30, 2017 year ended
(unaudited) October 31, 2016
--------------------- -----------------------
Shares Amount Shares Amount
-------- ----------- ---------- -----------
Shares sold.............. 39,982 $ 292,591 23,153 $ 163,640
Reinvested shares........ -- -- -- --
Shares redeemed.......... (62,480) (454,973) (148,641) (1,008,205)
-------- ----------- ---------- -----------
Net increase (decrease).. (22,498) $ (162,382) (125,488) $ (844,565)
======== =========== ========== ===========
ESG Dividend Fund
-------------------------------------------------------------------------
Class A Class C Class W
------------------------ ------------------------ ---------------------
For the period For the period For the period
December 16, 2016* December 16, 2016* December 16, 2016*
through April 30, 2017 through April 30, 2017 through April 30, 2017
(unaudited) (unaudited) (unaudited)
------------------------ ------------------------ ---------------------
Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- -----------
Shares sold.............. 1,376,740 $ 20,367,653 22,200 $ 333,000 22,200 $ 333,000
Reinvested shares........ -- -- -- -- -- --
Shares redeemed.......... (45,579) (692,373) -- -- -- --
---------- ------------ ---------- ------------ -------- -----------
Net increase (decrease).. 1,331,161 $ 19,675,280 22,200 $ 333,000 22,200 $ 333,000
========== ============ ========== ============ ======== ===========
Focused Alpha Large-Cap Fund
---------------------------------------------------------------------------------------------------
Class A Class A Class C Class C
------------------------ ------------------------ --------------------- ------------------------
For the For the
six months ended For the six months ended For the
April 30, 2017 year ended April 30, 2017 year ended
(unaudited) October 31, 2016 (unaudited) October 31, 2016
------------------------ ------------------------ --------------------- ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Shares sold.............. 198,303 $ 5,135,596 486,699 $ 11,404,218 81,262 $ 2,021,175 506,858 $ 11,619,901
Reinvested shares........ -- -- 1,903,274 45,031,465 -- -- 489,357 11,245,418
Shares redeemed.......... (1,131,862) (29,172,360) (3,614,768) (85,487,107) (402,617) (9,936,546) (1,124,710) (25,357,353)
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Net increase (decrease).. (933,559) $(24,036,764) (1,224,795) $(29,051,424) (321,355) $(7,915,371) (128,495) $ (2,492,034)
========== ============ ========== ============ ======== =========== ========== ============
--------
# Consolidated (see Note 2)
* Commencement of operations
94
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
Focused Alpha Large-Cap Fund
--------------------------------------------------
Class W Class W
------------------------ ------------------------
For the
six months ended For the
April 30, 2017 year ended
(unaudited) October 31, 2016
------------------------ ------------------------
Shares Amount Shares Amount
---------- ------------ ---------- ------------
Shares sold....... 173,143 $ 4,587,963 159,265 $ 3,833,852
Reinvested shares. -- -- 29,899 713,684
Shares redeemed... (102,201) (2,647,693) (455,051) (11,130,158)
---------- ------------ ---------- ------------
Net increase
(decrease)....... 70,942 $ 1,940,270 (265,887) $ (6,582,622)
========== ============ ========== ============
Focused Multi-Cap Growth Fund
----------------------------------------------------------------------------------------------------
Class A Class A Class C Class C
------------------------ ------------------------ ---------------------- ------------------------
For the For the
six months ended For the six months ended For the
April 30, 2017 year ended April 30, 2017 year ended
(unaudited) October 31, 2016 (unaudited) October 31, 2016
------------------------ ------------------------ ---------------------- ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ --------- ------------ ---------- ------------
Shares sold....... 426,521 $ 10,542,615 1,232,427 $ 29,290,493 175,861 $ 4,207,380 516,440 $ 11,840,485
Reinvested shares. 235,190 5,564,598 2,086,686 49,266,736 53,273 1,213,029 475,574 10,885,887
Shares redeemed... (1,561,246) (38,350,654) (4,195,361) (99,022,490) (487,779) (11,482,810) (1,219,293) (27,678,703)
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Net increase
(decrease)....... (899,535) $(22,243,441) (876,248) $(20,465,261) (258,645) $ (6,062,401) (227,279) $ (4,952,331)
========== ============ ========== ============ ======== ============ ========== ============
Focused Multi-Cap Growth Fund
--------------------------------------------------
Class W Class W
------------------------ ------------------------
For the
six months ended For the
April 30, 2017 year ended
(unaudited) October 31, 2016
------------------------ ------------------------
Shares Amount Shares Amount
---------- ------------ ---------- ------------
Shares sold....... 287,358 $ 7,281,737 525,775 $ 12,630,675
Reinvested shares. 13,417 320,814 152,156 3,624,366
Shares redeemed... (416,746) (10,215,581) (1,526,634) (37,937,805)
---------- ------------ ---------- ------------
Net increase
(decrease)....... (115,971) $ (2,613,030) (848,703) $(21,682,764)
========== ============ ========== ============
Global Trends Fund#
----------------------------------------------------------------------------------------------------
Class A Class A Class C Class C
------------------------ ------------------------ ---------------------- ------------------------
For the For the
six months ended For the six months ended For the
April 30, 2017 year ended April 30, 2017 year ended
(unaudited) October 31, 2016 (unaudited) October 31, 2016
------------------------ ------------------------ ---------------------- ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ --------- ------------ ---------- ------------
Shares sold....... 37,521 $ 485,933 770,048 $ 9,942,473 3,043 $ 38,006 15,127 $ 188,968
Reinvested shares. -- -- 95,097 1,208,678 -- -- 16,873 208,378
Shares redeemed... (217,747) (2,815,841) (622,590) (7,990,020) (67,125) (836,645) (259,284) (3,220,524)
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Net increase
(decrease)....... (180,226) $ (2,329,908) 242,555 $ 3,161,131 (64,082) $ (798,639) (227,284) $ (2,823,178)
========== ============ ========== ============ ======== ============ ========== ============
--------
# Consolidated (see Note 2)
95
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
Global Trends Fund#
-----------------------------------------
Class W Class W
------------------ ---------------------
For the
six months ended For the
April 30, 2017 year ended
(unaudited) October 31, 2016
------------------ ---------------------
Shares Amount Shares Amount
------- --------- -------- -----------
Shares sold....... 1,276 $ 16,544 15,149 $ 199,420
Reinvested shares. -- -- 4,075 52,287
Shares redeemed... (31,863) (413,620) (106,010) (1,370,539)
------- --------- -------- -----------
Net increase
(decrease)....... (30,587) $(397,076) (86,786) $(1,118,832)
======= ========= ======== ===========
Income Explorer Fund
--------------------------------------------------------------------------------------------
Class A Class A Class C Class C
--------------------- ------------------------ ------------------ -----------------------
For the For the
six months ended For the six months ended For the
April 30, 2017 year ended April 30, 2017 year ended
(unaudited) October 31, 2016 (unaudited) October 31, 2016
--------------------- ------------------------ ------------------ -----------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- ---------- ------------ ------- --------- ---------- -----------
Shares sold....... 443,406 $ 6,612,493 503,527 $ 7,054,246 56,241 $ 833,592 67,108 $ 945,878
Reinvested shares. 31,152 461,691 74,157 1,027,579 3,974 58,753 7,725 107,087
Shares redeemed... (288,682) (4,235,731) (488,980) (6,940,453) (24,862) (367,716) (70,253) (954,105)
-------- ----------- ---------- ------------ ------- --------- ---------- -----------
Net increase
(decrease)....... 185,876 $ 2,838,453 88,704 $ 1,141,372 35,353 $ 524,629 4,580 $ 98,860
======== =========== ========== ============ ======= ========= ========== ===========
Income Explorer Fund
-----------------------------------------------
Class W Class W
--------------------- ------------------------
For the
six months ended For the
April 30, 2017 year ended
(unaudited) October 31, 2016
--------------------- ------------------------
Shares Amount Shares Amount
-------- ----------- ---------- ------------
Shares sold....... 49,902 $ 747,404 31,020 $ 439,514
Reinvested shares. 1,052 15,687 1,330 18,290
Shares redeemed... (743) (11,151) (27,001) (375,392)
-------- ----------- ---------- ------------
Net increase
(decrease)....... 50,211 $ 751,940 5,349 $ 82,412
======== =========== ========== ============
Small-Cap Fund
--------------------------------------------------------------------------------------------
Class A Class A Class C Class C
--------------------- ------------------------ ------------------ -----------------------
For the For the
six months ended For the six months ended For the
April 30, 2017 year ended April 30, 2017 year ended
(unaudited) October 31, 2016 (unaudited) October 31, 2016
--------------------- ------------------------ ------------------ -----------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- ---------- ------------ ------- --------- ---------- -----------
Shares sold....... 169,364 $ 2,967,553 485,067 $ 7,249,490 27,436 $ 473,958 21,542 $ 314,461
Reinvested shares. 78,873 1,384,213 265,839 3,878,586 1,666 28,657 3,219 46,350
Shares redeemed... (226,506) (3,965,871) (1,191,408) (18,372,908) (2,591) (44,728) (5,601) (82,323)
-------- ----------- ---------- ------------ ------- --------- ---------- -----------
Net increase
(decrease)....... 21,731 $ 385,895 (440,502) $ (7,244,832) 26,511 $ 457,887 19,160 $ 278,488
======== =========== ========== ============ ======= ========= ========== ===========
--------
# Consolidated (see Note 2)
96
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
Small-Cap Fund
---------------------------------------
Class W Class W
------------------- ------------------
For the
six months ended For the
April 30, 2017 year ended
(unaudited) October 31, 2016
------------------- ------------------
Shares Amount Shares Amount
------- ---------- -------- ---------
Shares sold............. 235,981 $4,195,995 13,180 $ 216,560
Reinvested shares....... 789 13,932 1,654 24,229
Shares redeemed......... (10,421) (187,055) -- 233
------- ---------- -------- ---------
Net increase (decrease). 226,349 $4,022,872 14,834 $ 241,022
======= ========== ======== =========
Note 8. Line of Credit
The Trust, along with certain other funds managed by the Adviser and
exclusive of the 2020 High Watermark Fund, Commodity Strategy Fund and
Global Trends Fund, has access to a $75 million committed unsecured line of
credit and a $50 million uncommitted unsecured line of credit. The Commodity
Strategy Fund and Global Trends Fund have access to a $10 million committed
secured line of credit. The committed and uncommitted lines of credit are
renewable on an annual basis with State Street Bank and Trust Company
("State Street"), the Trust's custodian. 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's discretionary bid rate on the uncommitted line of credit. The
Trust, on behalf of each of the Funds, has paid State Street for its own
account, such Fund's ratable portion of an upfront fee in an amount equal to
$100,000 in the aggregate for the committed and uncommitted lines of credit
and the committed line of credit made available by State Street to certain
other funds managed by the Adviser, which are also party to the uncommitted
line of credit. The $100,000 upfront fee is inclusive of a closing fee of 5
basis points on the uncommitted line of credit. There is also a commitment
fee of 25 basis points per annum on the daily unused portion of the
committed line of credit. Borrowings under the line of credit will commence
when the respective Fund's cash shortfall exceeds $100,000. For the six
months ended April 30, 2017, the following Funds had borrowings:
Average Weighted
Days Interest Debt Average
Fund Outstanding Charges Utilized Interest
---- ----------- -------- -------- --------
Focused Alpha Large-Cap.. 4 $ 28 $125,702 2.01%
Focused Multi-Cap Growth. 111 4,886 803,917 1.98
Small Cap................ 8 15 32,324 2.16
At April 30, 2017, none of the Funds had outstanding borrowings.
Note 9. Expense Reductions
Through expense offset arrangements resulting from broker commission
recapture, a portion of the expenses of certain Funds have been reduced. For
the six months ended April 30, 2017, the amount of expense reductions
received by each Fund used to offset non-affiliated expenses are reflected
as Fees paid indirectly in the Statement of Operations.
Note 10. Interfund Lending Agreement
Pursuant to the exemptive relief granted by the SEC, the Funds are permitted
to participate in an interfund lending program among investment companies
advised by SunAmerica or an affiliate. The interfund lending program allows
the participating Funds to borrow money from and lend money to each other
for temporary or emergency purposes. An interfund loan will be made under
this facility only if the participating Funds receive a more favorable
interest rate than would otherwise be available from a typical bank for a
comparable transaction.
For the six months ended April 30, 2017, none of the Funds participated in
this program.
97
SunAmerica Specialty Series
NOTES TO FINANCIAL STATEMENTS -- April 30, 2017 -- (unaudited)
(continued)
Note 11. Investment Concentration
Each Fund may invest in obligations issued by agencies and instrumentalities
of the U.S. Government that may vary in the level of support they receive
from the government. The government may choose not to provide financial
support to government sponsored agencies or instrumentalities if it is not
legally obligated to do so, and if the issuer defaults, a fund holding
securities of such issuer might not be able to recover its investment from
the U.S. Government. As a result of the 2020 High Watermark and the
Commodity Strategy Funds' concentration in such investments, these funds may
be subject to risks associated with U.S. Government agencies or
instrumentalities.
The Commodity Strategy Fund's exposure to the commodities markets may
subject the Fund to greater volatility than investments in traditional
securities. The value of commodity-linked derivative instruments may be
affected by changes in overall market movements, commodity index volatility,
changes in interest rates, or sectors affecting a particular industry or
commodity, such as drought, floods, weather, livestock disease, embargoes,
tariffs and international economic, political and regulatory developments.
Note 12. Security Transactions with Affiliated Portfolios
The Funds are permitted to transfer securities by purchasing from and/or
selling to other affiliated funds under certain conditions approved by the
Board of Trustees. The affiliated funds involved in such transactions must
have a common investment adviser or investment advisers which are affiliated
persons of each other, common Trustees, and/or common officers in compliance
with Rule 17a-7 of the 1940 Act. Pursuant to the Act, such a transaction
must be either a purchase or a sale, for no consideration other than cash
payment against prompt delivery of the security at the current market price.
No brokerage commission or fee (except for customary transfer fees), or
other remuneration is paid in connection with such transactions. For the six
months ended April 30, 2017, no Funds engaged in security transactions with
affiliated Funds.
98
[LOGO]
Harborside 5
185 Hudson Street, Suite 3300
Jersey City, NJ 07311
Directors/Trustees VOTING PROXIES ON FUND PORTFOLIO DELIVERY OF SHAREHOLDER DOCUMENTS
Richard W. Grant SECURITIES The Funds have adopted a policy that
Peter A. Harbeck A description of the policies and proce- allows them to send only one copy of a
Dr. Judith L. Craven dures that the Trust uses to determine Fund's prospectus, proxy material,
William F. Devin how to vote proxies related to securities annual report and semi-annual report
Stephen J. Gutman held in a Fund's portfolio, which is (the "shareholder documents") to
Officers available in the Trust's Statement of shareholders with multiple accounts
John T. Genoy, President and Chief Additional Information, may be ob- residing at the same "household." This
Executive Officer tained without charge upon request, by practice is called householding and
Kara Murphy, Vice President calling (800) 858-8850. The in- reduces Fund expenses, which benefits
James Nichols, Vice President formation is also available from the you and other shareholders. Unless the
Gregory N. Bressler, Secretary EDGAR database on the U.S. Secu- Funds receive instructions to the con-
Gregory R. Kingston, Treasurer rities and Exchange Commission's trary, you will only receive one copy of
Shawn Parry, Vice President and website at http://www.sec.gov. the shareholder documents. The Funds
Assistant Treasurer PROXY VOTING RECORD ON FUND will continue to household the share-
Donna McManus, Vice President and PORTFOLIO SECURITIES holder documents indefinitely, until we
Assistant Treasurer Information regarding how the Trust are instructed otherwise. If you do not
Kathleen Fuentes, Chief Legal Officer voted proxies related to securities held wish to participate in householding
and Assistant Secretary in the Funds during the most recent please contact Shareholder Services at
Christopher C. Joe, Chief Compliance twelve month period ended June 30 is (800) 858-8850 ext. 6010 or send a
Officer available, once filed with the U.S. written request with your name, the
Matthew J. Hackethal, Anti-Money Securities and Exchange Commission, name of your fund(s) and your account
Laundering Compliance Officer without charge, upon request, by call- number(s) to AIG Funds c/o BFDS,
Investment Adviser ing (800) 858-8850 or on the U.S. P.O. Box 219186, Kansas City MO,
SunAmerica Asset Management, LLC Securities and Exchange Commission 64121-9186. We will resume in-
Harborside 5 website at http://www.sec.gov. dividual mailings for your account
185 Hudson Street, Suite 3300 DISCLOSURE OF QUARTERLY PORTFOLIO within thirty (30) days of receipt of
Jersey City, NJ 07311 HOLDINGS your request.
Distributor The Trust is required to file its com- This report is submitted solely for the
AIG Capital Services, Inc. plete schedule of portfolio holdings general information of shareholders of
Harborside 5 with the U.S. Securities and Exchange the Funds. Distribution of this report
185 Hudson Street, Suite 3300 Commission for its first and third fiscal to persons other than shareholders of
Jersey City, NJ 07311 quarters on Form N-Q. The Trust's the Funds is authorized only in con-
Shareholder Servicing Agent Forms N-Q are available on the U.S. nection with a currently effective pro-
AIG Fund Services, Inc. Securities and Exchange Commission spectus, setting forth details of the
Harborside 5 website at http://www.sec.gov. You can Funds, which must precede or accom-
185 Hudson Street, Suite 3300 also review and obtain copies of the pany this report.
Jersey City, NJ 07311 Forms N-Q at the U.S. Securities and The accompanying report has not been
Custodian and Transfer Agent Exchange Commission Public Refer- audited by independent accountants
State Street Bank and Trust Company ence Room in Washington DC and accordingly no opinion has been
One Lincoln Street (information on the operation of the expressed thereon.
Boston, MA 02111 Public Reference Room may be ob-
tained by calling 1-800-SEC-0330).
[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.aig.com/funds
2 Click on the link to "Go Paperless!!"
The email address you provide will be kept strictly confidential. Once your
enrollment has been processed, you will begin receiving email notifications
when anything you receive electronically is available online.
You can return to www.aig.com/funds at any time to change your email
address, edit your preferences or to cancel this service if you choose to
resume physical delivery of your Fund documents.
Please note - this option is only available to accounts opened through the
Funds.
[GRAPHIC]
For information on receiving this report online, see inside back cover.
AIG Funds are advised by SunAmerica Asset Management, LLC (SAAMCo) and
distributed by AIG Capital Services, Inc. (ACS), Member FINRA. Harborside 5,
185 Hudson Street, Suite 3300, Jersey City, NJ 07311, 800-858-8850. SAAMCo and
ACS are members of American International Group, Inc. (AIG).
Investors should carefully consider a Fund's investment objectives, risks,
charges and expenses before investing. The prospectus, containing this and
other important information, can be obtained from your financial adviser, the
AIG Funds Sales Desk at 800-858-8850, ext. 6003, or at aig.com/funds. Read the
prospectus carefully before investing.
HWSAN-4/17
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
Included in Item 1 to the Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders
may recommend nominees to the registrant's Board of Trustees that were
implemented after the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR
229.407) (as required by Item 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 control 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 Specialty Series
By: /s/ John T. Genoy
--------------------------
John T. Genoy
President
Date: July 6, 2017
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: July 6, 2017
By: /s/ Gregory R. Kingston
--------------------------
Gregory R. Kingston
Treasurer
Date: July 6, 2017