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 811-04708
---------------------------------------------
SunAmerica Income Funds
--------------------------------------------------------------------------------
(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: March 31
--------------------------
Date of reporting period: September 30, 2019
-------------------------
Item 1. Reports to Stockholders
SEMI-ANNUAL REPORT 2019
SUNAMERICA
Income Funds
[PHOTO]
Beginning on January 1, 2021, as permitted by regulations adopted by the
Securities and Exchange Commission, paper copies of each Fund's shareholder
reports will no longer be sent by mail, unless you specifically request paper
copies of the reports from the Fund or your financial intermediary. Instead,
the reports will be made available on a website, and you will be notified by
mail each time a report is posted and provided with a website link to access
the report.
If you already elected to receive shareholder reports electronically, you will
not be affected by this change and you need not take any action. At any time,
you may elect to receive reports and other communications from a Fund
electronically by calling 800-858-8850 or contacting your financial
intermediary directly.
You may elect to receive all future reports in paper free of charge. If your
account is held directly at the Fund, you can inform the Fund that you wish to
receive paper copies of reports by calling 800-858-8850. If your account is
held through a financial intermediary, please contact the financial
intermediary to make this election. Your election to receive paper will apply
to all AIG Funds in which you are invested and may apply to all funds held with
your financial intermediary.
[LOGO]
aig.com/funds
Table of Contents
SHAREHOLDER LETTER................... 2
EXPENSE EXAMPLE...................... 4
STATEMENTS OF ASSETS AND LIABILITIES. 6
STATEMENTS OF OPERATIONS............. 8
STATEMENTS OF CHANGES IN NET ASSETS.. 9
FINANCIAL HIGHLIGHTS................. 10
PORTFOLIO OF INVESTMENTS............. 13
NOTES TO FINANCIAL STATEMENTS........ 71
APPROVAL OF ADVISORY AGREEMENTS...... 87
SUPPLEMENT TO THE PROSPECTUS......... 91
Shareholder Letter -- (unaudited)
Dear Shareholders,
We are pleased to present this semi-annual update for the SunAmerica Income
Funds (the "Income Funds") for the six-month period ended September 30, 2019.
From a broad perspective, it was a period wherein fixed income market
performance was primarily influenced by a global economic slowdown, dovish+
pivots by most central banks, persistent trade tensions and geopolitics. For
the semi-annual period overall, the Bloomberg Barclays U.S. Aggregate Bond
Index,++ a broad measure of the U.S. fixed income market, returned 5.42%.
In the second quarter of 2019, when the semi-annual period began, global fixed
income sectors generated strong returns. Global government bond yields in most
developed and emerging markets countries declined and bond prices rose
following a turn to more dovish monetary policies by most central banks in
response to below-target inflation and slowing economic growth. The U.S.
Federal Reserve (the "Fed") left interest rates unchanged but set the stage for
potential rate cuts later in 2019, indicating it saw additional risks to its
outlook from trade policy and manufacturing, among other factors. The European
Central Bank (ECB) signaled the potential for a new round of quantitative
easing alongside rate cuts later in 2019. The Bank of Japan committed to low
rates at least through the spring of 2020. The People's Bank of China added
liquidity into its banking system through its lending facility and intervened
in foreign exchange markets to support its currency amid the trade war with the
U.S. Most non-government bond sectors also posted positive returns during the
second calendar quarter but lagged the especially strong performance of U.S.
Treasury securities and other sovereign bonds. The exceptions were investment
grade corporate bonds and emerging markets debt, which performed particularly
well as a combination of low global interest rates along with still strong
credit measures led investors to reach for yield.
Global government bond yields declined further across most markets following
the injection of monetary stimulus by the Fed, ECB and several other central
banks during the third quarter of 2019. The Fed cut interest rates in July and
September 2019 for the first time since 2008, in an effort to extend the U.S.
economic expansion amid a slowdown in economic growth and trade uncertainty.
The ECB unveiled a sweeping, long-term economic stimulus package to bolster the
Eurozone economy against slowing growth and trade frictions. At its October
meeting, the Bank of Japan opted to not change its interest rates but suggested
possible interest rate cuts in the future, reflecting its fears that global
risks could weigh on Japan's economic growth. The announcement came just hours
after the U.S. Fed cut its targeted federal funds rate for the third time in
less than four months. Key policymakers of the Bank of England indicated more
accommodative monetary policy may be necessary to counter Brexit+++
uncertainty. The People's Bank of China cut its reserve requirement ratio/*/ in
line with its strategy of targeted and modest easing. Overall, political
uncertainty remained heightened, although the fixed income markets appeared to
shrug off Brexit turmoil in the U.K. and a formal impeachment inquiry into the
U.S. President. Corporate bonds also continued to perform strongly on optimism
that monetary accommodation could offset the drag on global economic growth
from restrictive trade policies. Among other non-government bond sectors,
performance was mixed, as escalating U.S.-China trade tensions and political
developments in Argentina resulted in increased investor risk aversion.
For the semi-annual period overall, the U.S. Treasury yield curve
flattened,/**/ as yields on intermediate- and longer-term maturities fell more
than those on shorter-term maturities. The yield on the bellwether 10-year U.S.
Treasury fell approximately 73 basis points/***/ to end the semi-annual period
at 1.68%. Notably, for much of the semi-annual period, the U.S. Treasury yield
curve experienced a partial inversion. More specifically, the differential
between the yields on three-month and 10-year U.S. Treasury securities had
inverted toward the end of March 2019 for the first time since mid-2007,
meaning three-month yields were higher than those of 10-year U.S. Treasury
securities, and remained that way through the end of the semi-annual period. An
inverted yield curve has historically preceded most economic recessions. Still,
many believed at the end of the semi-annual period that a recession was
unlikely, anticipating the Fed and other central banks would ease monetary
policy to reduce recessionary risks. Non-U.S. Treasury sector performance was
mixed for the semi-annual period overall. Investment grade corporate bonds
outperformed U.S. Treasuries most, followed by sovereign emerging markets debt.
Other non-government bond sectors posted solid positive returns but lagged U.S.
Treasury securities.
2
On the following pages, you will find financial statements and portfolio
information for each of the Income Funds during the semi-annual period ended
September 30, 2019.
Thank you for being a part of AIG 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 us directly at 800-858-8850 or via our
website, www.aig.com/funds.
Sincerely,
The SunAmerica Income Funds Investment Professionals
Tim Pettee Robert Vanden Assem David Albrycht
Timothy Campion Dana Burns Frank Ossino
Elizabeth Mauro Anders Faergemann Eric Hess
John Yovanovic William Eastwood
--------
Past performance is no guarantee of future results.
+ Dovish policy tends to suggest lower interest rates; opposite of hawkish.
++ 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. Indices are not managed and an investor cannot
invest directly in an index.
+++Brexit refers to the U.K.'s path out of the European Union.
* Reserve requirement ratio is the portion of reservable liabilities
commercial banks must hold onto rather than lend out or invest.
** A flattening yield curve is one wherein the differential in yields between
longer-term and shorter-term maturities narrows.
***A basis point is 1/100/th/ of a percentage point.
3
SunAmerica Income Funds
EXPENSE EXAMPLE -- September 30, 2019 -- (unaudited)
Disclosure of Portfolio Expenses in Shareholder Reports
As a shareholder of a fund (each, a "Fund" and collectively the "Funds") in the
SunAmerica Income Funds (the "Trust"), you may incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchase payments,
contingent deferred sales charges and (2) ongoing costs, including management
fees, distribution and service fees and other Fund expenses. The example set
forth below is intended to help you understand your ongoing costs (in dollars)
of investing in the Funds and to compare these costs with the ongoing costs of
investing in other mutual funds. The Example is based on an investment of
$1,000 invested at April 1, 2019 and held until September 30, 2019.
Actual Expenses
The "Actual" section of the table provides information about actual account
values and actual expenses. You may use the information in these columns,
together with the amount you invested, to estimate the expenses that you paid
over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number in the column under the heading entitled "Expenses Paid During the Six
Months Ended September 30, 2019" to estimate the expenses you paid on your
account during this period. The "Expenses Paid During the Six Months Ended
September 30, 2019" column and the "Annualized Expense Ratio" column do not
include small account fees that may be charged if your account balance is below
$500 ($250 for retirement plan accounts). In addition, the "Expenses Paid
During the Six Months Ended September 30, 2019" column and the "Annualized
Expense Ratio" column do not include administrative fees that may apply to
qualified retirement plan accounts. See the Funds' prospectuses, your
retirement plan document and/or materials from your financial adviser for a
full description of these fees. Had these fees been included, the "Expenses
Paid During the Six Months Ended September 30, 2019" column would have been
higher and the "Ending Account Value" column would have been lower.
Hypothetical Example for Comparison Purposes
The "Hypothetical" section of the table provides information about hypothetical
account values and hypothetical expenses based on each Fund's actual expense
ratio and an annual rate of return of 5% before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare the ongoing costs of investing
in the Funds and other funds. To do so, compare this 5% hypothetical example
with the 5% hypothetical examples that appear in the shareholder reports of
other funds. The "Expenses Paid During the Six Months Ended September 30, 2019"
column and the "Annualized Expense Ratio" column do not include small account
fees that may be charged if your account balance is below $500 ($250 for
retirement plan accounts). In addition, the "Expenses Paid During the Six
Months Ended September 30, 2019" column and the "Annualized Expense Ratio"
column do not include administrative fees that may apply to qualified
retirement plan accounts and accounts held through financial institutions. See
the Funds' prospectuses, your retirement plan document and/or materials from
your financial adviser for a full description of these fees. Had these fees
been included, the "Expenses Paid During the Six Months Ended September 30,
2019" column would have been higher and the "Ending Account Value" column would
have been lower.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transaction costs, including sales
charges on purchase payments, contingent deferred sales charges, small account
fees and administrative fees, if applicable to your account. Please refer to
the Funds' prospectus, your retirement plan document and/or material from your
financial adviser, for more information. Therefore, the "Hypothetical" example
is useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transaction costs and other fees were included, your costs would have been
higher.
4
SunAmerica Income Funds
EXPENSE EXAMPLE -- September 30, 2019 -- (unaudited) (continued)
Actual Hypothetical
------------------------------------------ ------------------------------------------
Ending Account
Ending Account Expenses Paid Value using Expenses Paid
Value using During the a Hypothetical During the
Beginning Actual Six Months Beginning 5% Annual Six Months
Account Value Return at Ended Account Value Return at Ended Annualized
at April 1, September 30, September 30, at April 1, September 30, September 30, Expense
Fund 2019 2019 2019 2019 2019 2019 Ratio*
---- ------------- -------------- ------------- ------------- -------------- ------------- ----------
AIG U.S. Government Securities#
Class A....................... $1,000.00 $1,042.00 $5.05 $1,000.00 $1,020.05 $5.00 0.99%
Class C....................... $1,000.00 $1,038.64 $8.36 $1,000.00 $1,016.80 $8.27 1.64%
AIG Strategic Bond#
Class A....................... $1,000.00 $1,043.49 $5.67 $1,000.00 $1,019.45 $5.60 1.11%
Class B....................... $1,000.00 $1,039.70 $9.38 $1,000.00 $1,015.80 $9.27 1.84%
Class C....................... $1,000.00 $1,039.85 $9.13 $1,000.00 $1,016.05 $9.02 1.79%
Class W....................... $1,000.00 $1,041.52 $4.59 $1,000.00 $1,020.50 $4.55 0.90%
AIG Flexible Credit#
Class A....................... $1,000.00 $1,027.44 $5.27 $1,000.00 $1,019.80 $5.25 1.04%
Class C....................... $1,000.00 $1,024.11 $8.60 $1,000.00 $1,016.50 $8.57 1.70%
Class W....................... $1,000.00 $1,028.53 $4.26 $1,000.00 $1,020.80 $4.24 0.84%
--------
* Expenses are equal to each Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 183 days then divided
by 366 days (to reflect the one-half year period). These ratios do not
reflect transaction costs, including sales charges on purchase payments,
contingent deferred sales charges, small account fees and administrative
fees, if applicable to your account. Please refer to your Prospectus, your
retirement plan documents and/or materials from your financial adviser for
more information.
# During the stated period, the investment advisor either waived a portion of
or all of the fees and assumed a portion of or all expenses for the Funds.
As a result, if these fees and expenses had not been waived or assumed, the
"Actual/Hypothetical Ending Account Value" would have been lower and the
"Actual/Hypothetical Expenses Paid During the Six Months Ended September 30,
2019" and the "Annualized Expense Ratio" would have been higher.
5
SunAmerica Income Funds
STATEMENTS OF ASSETS AND LIABILITIES -- September 30, 2019 --
(unaudited)
AIG U.S. Government AIG Strategic AIG Flexible
Securities Bond Credit
Fund Fund Fund
------------------- ------------- ------------
ASSETS:
Investments at value (unaffiliated)*............................... $132,597,131 $312,034,305 $357,249,538
Repurchase agreements (cost approximates value).................... 854,000 -- --
Cash............................................................... 553 -- --
Foreign cash*...................................................... -- 4,199 --
Receivable for:
Shares of beneficial interest sold............................... 15,243 910,645 1,550,226
Dividends and interest........................................... 568,172 2,667,912 3,530,833
Investments sold................................................. -- 708,030 2,583,186
Investments sold on an extended settlement basis................. -- 420,737 1,934,208
Prepaid expenses and other assets.................................. 6,046 7,425 7,079
Due from investment adviser for expense reimbursements/fee waivers. 63,482 69,055 112,310
Unrealized appreciation on forward foreign currency contracts...... -- 405,644 --
------------ ------------ ------------
Total assets....................................................... 134,104,627 317,227,952 366,967,380
------------ ------------ ------------
LIABILITIES:
Payable for:
Shares of beneficial interest redeemed........................... 132,949 634,047 502,758
Investments purchased............................................ -- 497,037 3,317,566
Investments purchased on an extended settlement basis............ -- 2,097,944 14,478,896
Investment advisory and management fees.......................... 71,466 166,243 208,397
Distribution and service maintenance fees........................ 42,378 111,039 96,943
Transfer agent fees and expenses................................. 28,783 62,048 73,968
Trustees' fees and expenses...................................... 578 2,406 1,674
Other accrued expenses........................................... 79,698 148,534 136,218
Dividends Payable.................................................. 2,934 109,939 416,016
Commitments (Note 10).............................................. -- 12,333 --
Unrealized depreciation on forward foreign currency contracts...... -- 30,858 --
------------ ------------ ------------
Total liabilities.................................................. 358,786 3,872,428 19,232,436
------------ ------------ ------------
Net assets......................................................... $133,745,841 $313,355,524 $347,734,944
============ ============ ============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $0.01............................... $ 143,186 $ 924,906 $ 1,048,401
Paid-in capital.................................................... 146,151,986 341,270,573 367,546,157
Total accumulated earnings (loss).................................. (12,549,331) (28,839,955) (20,859,614)
------------ ------------ ------------
Net assets......................................................... $133,745,841 $313,355,524 $347,734,944
============ ============ ============
*Cost
Investments (unaffiliated)....................................... $126,166,882 $309,961,884 $366,580,862
============ ============ ============
Foreign cash..................................................... $ -- $ 4,263 $ --
============ ============ ============
See Notes to Financial Statements
6
SunAmerica Income Funds
STATEMENTS OF ASSETS AND LIABILITIES -- September 30, 2019 --
(unaudited) (continued)
AIG U.S. Government
Securities
Fund
-------------------
Class A (unlimited shares authorized):
Net assets................................................................................................... $126,554,745
Shares of beneficial interest issued and outstanding......................................................... 13,548,394
Net asset value and redemption price per share (excluding any applicable contingent deferred sales charge)... $ 9.34
Maximum sales charge (4.75% of offering price)............................................................... $ 0.47
------------
Maximum offering price to public............................................................................. $ 9.81
============
Class B (unlimited shares authorized):
Net assets................................................................................................... $ --
Shares of beneficial interest issued and outstanding......................................................... --
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales
charge)..................................................................................................... $ --
============
Class C (unlimited shares authorized):
Net assets................................................................................................... $ 7,191,096
Shares of beneficial interest issued and outstanding......................................................... 770,215
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales
charge)..................................................................................................... $ 9.34
============
Class W (unlimited shares authorized):
Net assets................................................................................................... $ --
Shares of beneficial interest issued and outstanding......................................................... --
Net asset value, offering and redemption price per share..................................................... $ --
============
AIG Strategic
Bond
Fund
-------------
Class A (unlimited shares authorized):
Net assets................................................................................................... $157,491,661
Shares of beneficial interest issued and outstanding......................................................... 46,474,933
Net asset value and redemption price per share (excluding any applicable contingent deferred sales charge)... $ 3.39
Maximum sales charge (4.75% of offering price)............................................................... $ 0.17
------------
Maximum offering price to public............................................................................. $ 3.56
============
Class B (unlimited shares authorized):
Net assets................................................................................................... $ 16,619,138
Shares of beneficial interest issued and outstanding......................................................... 4,909,113
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales
charge)..................................................................................................... $ 3.39
============
Class C (unlimited shares authorized):
Net assets................................................................................................... $ 48,806,914
Shares of beneficial interest issued and outstanding......................................................... 14,357,736
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales
charge)..................................................................................................... $ 3.40
============
Class W (unlimited shares authorized):
Net assets................................................................................................... $ 90,437,811
Shares of beneficial interest issued and outstanding......................................................... 26,748,789
Net asset value, offering and redemption price per share..................................................... $ 3.38
============
AIG Flexible
Credit
Fund
------------
Class A (unlimited shares authorized):
Net assets................................................................................................... $ 93,729,851
Shares of beneficial interest issued and outstanding......................................................... 28,305,805
Net asset value and redemption price per share (excluding any applicable contingent deferred sales charge)... $ 3.31
Maximum sales charge (4.75% of offering price)............................................................... $ 0.17
------------
Maximum offering price to public............................................................................. $ 3.48
============
Class B (unlimited shares authorized):
Net assets................................................................................................... $ --
Shares of beneficial interest issued and outstanding......................................................... --
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales
charge)..................................................................................................... $ --
============
Class C (unlimited shares authorized):
Net assets................................................................................................... $ 56,405,095
Shares of beneficial interest issued and outstanding......................................................... 16,935,016
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales
charge)..................................................................................................... $ 3.33
============
Class W (unlimited shares authorized):
Net assets................................................................................................... $197,599,998
Shares of beneficial interest issued and outstanding......................................................... 59,599,235
Net asset value, offering and redemption price per share..................................................... $ 3.32
============
See Notes to Financial Statements
7
SunAmerica Income Funds
STATEMENTS OF OPERATIONS -- For the Six Months Ended September 30, 2019
-- (unaudited)
AIG U.S. Government AIG Strategic AIG Flexible
Securities Bond Credit
Fund Fund Fund
------------------- ------------- ------------
INVESTMENT INCOME:
Dividends (unaffiliated)........................................................ $ -- $ 220,829 $ 395,842
Interest (unaffiliated)......................................................... 1,620,886 6,581,466 10,347,588
---------- ----------- -----------
Total investment income*...................................................... 1,620,886 6,802,295 10,743,430
---------- ----------- -----------
EXPENSES:
Investment advisory and management fees......................................... 432,046 956,219 1,226,374
Distribution and Service maintenance fees:
Class A....................................................................... 205,162 269,293 192,342
Class B....................................................................... -- 83,007 --
Class C....................................................................... 37,271 261,391 282,470
Service fee -- Class W.......................................................... -- 52,801 123,168
Transfer agent fees:
Class A....................................................................... 154,641 185,429 134,375
Class B....................................................................... -- 21,153 --
Class C....................................................................... 10,948 63,732 65,613
Class W....................................................................... -- 78,208 181,998
Registration fees:
Class A....................................................................... 13,926 15,062 15,128
Class B....................................................................... -- 7,389 --
Class C....................................................................... 12,170 13,286 10,444
Class W....................................................................... -- 8,863 29,893
Custodian and accounting fees................................................... 17,226 54,985 38,053
Reports to shareholders......................................................... 17,222 40,137 32,870
Audit and tax fees.............................................................. 28,401 37,578 35,465
Legal fees...................................................................... 12,093 17,491 17,491
Trustees' fees and expenses..................................................... 4,040 9,502 10,452
Interest expense................................................................ 1,290 -- --
Other expenses.................................................................. 10,869 15,416 15,190
---------- ----------- -----------
Total expenses before fee waivers, expense reimbursements and expense
recoupments.................................................................. 957,305 2,190,942 2,411,326
---------- ----------- -----------
Net (fees waived and expenses reimbursed)/recouped by investment advisor
(Note 3)..................................................................... (275,001) (397,199) (661,420)
---------- ----------- -----------
Net expenses.................................................................. 682,304 1,793,743 1,749,906
---------- ----------- -----------
Net investment income (loss)..................................................... 938,582 5,008,552 8,993,524
---------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on:
Investments (unaffiliated)...................................................... 1,761,162 1,652,500 (845,473)
Forward contracts............................................................... -- 605,328 --
Net realized foreign exchange gain (loss) on other assets and liabilities........ -- (4,257) --
---------- ----------- -----------
Net realized gain (loss) on investments and foreign currencies................... 1,761,162 2,253,571 (845,473)
---------- ----------- -----------
Change in unrealized appreciation (depreciation) on:
Investments (unaffiliated)...................................................... 2,689,177 4,485,830 608,773
Forward contracts............................................................... -- 200,692 --
Change in unrealized foreign exchange gain (loss) on other assets and
liabilities..................................................................... -- (1,448) --
---------- ----------- -----------
Net unrealized gain (loss) on investments and foreign currencies................. 2,689,177 4,685,074 608,773
---------- ----------- -----------
Net realized and unrealized gain (loss) on investments and foreign currencies.... 4,450,339 6,938,645 (236,700)
---------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................. 5,388,921 11,947,197 8,756,824
========== =========== ===========
*Net of foreign withholding taxes on interest and dividends of................... $ -- $ 206 $ 687
========== =========== ===========
See Notes to Financial Statements
8
SunAmerica Income Funds
STATEMENTS OF CHANGES IN NET ASSETS
AIG U.S. Government
Securities Fund AIG Strategic Bond Fund
-------------------------- --------------------------
For the For the
six months six months
ended For the year ended For the year
September 30, ended September 30, ended
2019 March 31, 2019 March 31,
(unaudited) 2019 (unaudited) 2019
------------- ------------ ------------- ------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)............................... $ 938,582 $ 2,017,207 $ 5,008,552 $ 11,222,805
Net realized gain (loss) on investments and foreign
currencies................................................ 1,761,162 (208,411) 2,253,571 (7,805,709)
Net unrealized gain (loss) on investments and foreign
currencies................................................ 2,689,177 1,808,397 4,685,074 4,066,200
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting from
operations.................................................. 5,388,921 3,617,193 11,947,197 7,483,296
------------ ------------ ------------ ------------
Distributions to shareholders from:
Distributable earnings (Class A)........................... (1,071,132) (2,199,690) (2,908,471) (8,027,157)
Distributable earnings (Class B)........................... -- -- (251,190) (733,209)
Distributable earnings (Class C)........................... (39,475) (74,757) (803,485) (2,446,003)
Distributable earnings (Class W)........................... -- -- (1,385,597) (2,727,614)
------------ ------------ ------------ ------------
Total distributions to shareholders.......................... (1,110,607) (2,274,447) (5,348,743) (13,933,983)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting from capital
share transactions (Note 6)................................. (4,158,644) (13,952,704) 31,305,798 (78,026,418)
------------ ------------ ------------ ------------
Total increase (decrease) in net assets...................... 119,670 (12,609,958) 37,904,252 (84,477,105)
NET ASSETS:
Beginning of period.......................................... 133,626,171 146,236,129 275,451,272 359,928,377
------------ ------------ ------------ ------------
End of period................................................ $133,745,841 $133,626,171 $313,355,524 $275,451,272
============ ============ ============ ============
AIG Flexible Credit Fund
--------------------------
For the
six months
ended For the year
September 30, ended
2019 March 31,
(unaudited) 2019
------------- ------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)............................... $ 8,993,524 $ 17,265,863
Net realized gain (loss) on investments and foreign
currencies................................................ (845,473) (3,698,348)
Net unrealized gain (loss) on investments and foreign
currencies................................................ 608,773 (5,841,750)
------------ ------------
Net increase (decrease) in net assets resulting from
operations.................................................. 8,756,824 7,725,765
------------ ------------
Distributions to shareholders from:
Distributable earnings (Class A)........................... (3,039,027) (6,972,042)
Distributable earnings (Class B)........................... -- --
Distributable earnings (Class C)........................... (1,348,081) (2,643,846)
Distributable earnings (Class W)........................... (4,604,393) (7,914,239)
------------ ------------
Total distributions to shareholders.......................... (8,991,501) (17,530,127)
------------ ------------
Net increase (decrease) in net assets resulting from capital
share transactions (Note 6)................................. 36,180,182 (1,830,641)
------------ ------------
Total increase (decrease) in net assets...................... 35,945,505 (11,635,003)
NET ASSETS:
Beginning of period.......................................... 311,789,439 323,424,442
------------ ------------
End of period................................................ $347,734,944 $311,789,439
============ ============
See Notes to Financial Statements
9
SunAmerica Income Funds
FINANCIAL HIGHLIGHTS
AIG U.S. GOVERNMENT SECURITIES FUND
-----------------------------------
Net gain
(loss) on
Net investments Distributions Net Net
Asset (both Dividends from net Asset Assets, Ratio of
Value, Net realized Total from from net realized Total Value, end of expenses
beginning investment and investment investment gains on Distri- end of Total period to average
Period Ended of period income(1) unrealized) operations income investments butions period Return(2) (000's) net assets(3)
------------ --------- ---------- ----------- ---------- ---------- ------------- ------- ------ --------- -------- -------------
Class A
-------
03/31/15 $9.43 $0.12 $ 0.34 $ 0.46 $(0.16) $-- $(0.16) $9.73 4.94% $187,417 0.99%
03/31/16 9.73 0.08 (0.05) 0.03 (0.17) -- (0.17) 9.59 0.33 156,468 0.99
03/31/17 9.59 0.09 (0.37) (0.28) (0.16) -- (0.16) 9.15 (2.93) 148,382 0.99
03/31/18 9.15 0.09 (0.13) (0.04) (0.16) -- (0.16) 8.95 (0.46) 138,599 0.99
03/31/19 8.95 0.13 0.11 0.24 (0.15) -- (0.15) 9.04 2.71 126,119 0.99
09/30/19# 9.04 0.07 0.31 0.38 (0.08) -- (0.08) 9.34 4.20 126,555 0.99(4)
Class C
-------
03/31/15 $9.42 $0.06 $ 0.34 $ 0.40 $(0.10) $-- $(0.10) $9.72 4.27% $ 23,999 1.64%
03/31/16 9.72 0.01 (0.03) (0.02) (0.11) -- (0.11) 9.59 (0.22) 31,665 1.64
03/31/17 9.59 0.02 (0.37) (0.35) (0.10) -- (0.10) 9.14 (3.66) 19,592 1.64
03/31/18 9.14 0.04 (0.13) (0.09) (0.10) -- (0.10) 8.95 (1.00) 7,637 1.64
03/31/19 8.95 0.08 0.10 0.18 (0.09) -- (0.09) 9.04 2.05 7,507 1.64
09/30/19# 9.04 0.04 0.31 0.35 (0.05) -- (0.05) 9.34 3.86 7,191 1.64(4)
Ratio
of net
investment
income to
average Portfolio
net assets(3) Turnover
------------- ---------
1.24% 57%
0.81 36
0.91 95
1.03 29
1.49 18
1.45(4) 29
0.61% 57%
0.16 36
0.26 95
0.38 29
0.84 18
0.80(4) 29
--------
# Unaudited
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load, but does
include expense reimbursements.
(3)Net of the following expense reimbursements, if applicable (based on average
net assets):
03/31/15 03/31/16 03/31/17 03/31/18 03/31/19 09/30/19#(4)
-------- -------- -------- -------- -------- ------------
AIG U.S. Government Securities Fund Class A 0.38% 0.37% 0.35% 0.37% 0.37% 0.39%
AIG U.S. Government Securities Fund
Class C................................... 0.50 0.39 0.40 0.46 0.59 0.76
(4)Annualized
See Notes to Financial Statements
10
SunAmerica Income Funds
FINANCIAL HIGHLIGHTS -- (continued)
AIG STRATEGIC BOND FUND
-----------------------
Net gain
(loss) on
Net investments Distributions Net Net
Asset (both Dividends from net Asset Assets,
Value, Net realized Total from from net realized Total Value, end of
beginning investment and investment investment gains on Distri- end of Total period
Period Ended of period income(1) unrealized) operations income investments butions period Return(2) (000's)
-------------------- --------- ---------- ----------- ---------- ---------- ------------- ------- ------ --------- --------
Class A
-------
03/31/15 $3.53 $0.13 $(0.04) $ 0.09 $(0.13) $-- $(0.13) $3.49 2.70% $235,093
03/31/16 3.49 0.12 (0.20) (0.08) (0.14) -- (0.14) 3.27 (2.32) 175,386
03/31/17 3.27 0.10 0.14 0.24 (0.11) -- (0.11) 3.40 7.38 163,163
03/31/18 3.40 0.11 (0.03) 0.08 (0.10) -- (0.10) 3.38 2.41 196,712
03/31/19 3.38 0.13 (0.04) 0.09 (0.16) -- (0.16) 3.31 2.86 153,979
09/30/19# 3.31 0.06 0.08 0.14 (0.06) -- (0.06) 3.39 4.35 157,492
Class B
-------
03/31/15 $3.53 $0.10 $(0.03) $ 0.07 $(0.11) $-- $(0.11) $3.49 2.01% $ 39,733
03/31/16 3.49 0.10 (0.20) (0.10) (0.12) -- (0.12) 3.27 (2.97) 31,038
03/31/17 3.27 0.08 0.14 0.22 (0.09) -- (0.09) 3.40 6.66 29,762
03/31/18 3.40 0.09 (0.04) 0.05 (0.08) -- (0.08) 3.37 1.41 21,875
03/31/19 3.37 0.11 (0.03) 0.08 (0.14) -- (0.14) 3.31 2.43 16,015
09/30/19# 3.31 0.05 0.08 0.13 (0.05) -- (0.05) 3.39 3.97 16,619
Class C
-------
03/31/15 $3.54 $0.11 $(0.04) $ 0.07 $(0.11) $-- $(0.11) $3.50 2.05% $184,282
03/31/16 3.50 0.10 (0.19) (0.09) (0.12) -- (0.12) 3.29 (2.63) 151,197
03/31/17 3.29 0.08 0.13 0.21 (0.09) -- (0.09) 3.41 6.35 128,332
03/31/18 3.41 0.09 (0.03) 0.06 (0.08) -- (0.08) 3.39 1.75 71,103
03/31/19 3.39 0.11 (0.04) 0.07 (0.14) -- (0.14) 3.32 2.18 52,782
09/30/19# 3.32 0.05 0.08 0.13 (0.05) -- (0.05) 3.40 3.98 48,807
Class W
-------
01/29/15(4)-03/31/15 $3.48 $0.01 $ 0.02 $ 0.03 $(0.02) $-- $(0.02) $3.49 0.99% $ 15,664
03/31/16 3.49 0.12 (0.20) (0.08) (0.14) -- (0.14) 3.27 (2.14) 30,065
03/31/17 3.27 0.11 0.13 0.24 (0.12) -- (0.12) 3.39 7.26 40,412
03/31/18 3.39 0.11 (0.02) 0.09 (0.11) -- (0.11) 3.37 2.65 70,239
03/31/19 3.37 0.14 (0.03) 0.11 (0.17) -- (0.17) 3.31 3.38 52,676
09/30/19# 3.31 0.06 0.08 0.14 (0.07) -- (0.07) 3.38 4.15 90,438
Ratio
of net
Ratio of investment
expenses income to
to average average Portfolio
net assets net assets Turnover
---------- ---------- ---------
1.30% 3.62% 137%
1.34 3.54 108
1.32 3.00 109
1.33 3.15 149
1.14(3) 3.89(3) 123
1.11(3)(5) 3.52(3)(5) 51
1.97% 2.95% 137%
2.01 2.87 108
1.99 2.33 109
2.02 2.46 149
1.86(3) 3.17(3) 123
1.84(3)(5) 2.79(3)(5) 51
1.94% 2.98% 137%
1.98 2.90 108
1.97 2.35 109
1.98 2.50 149
1.81(3) 3.22(3) 123
1.79(3)(5) 2.83(3)(5) 51
1.20%(3)(5) 2.73%(3)(5) 137%
1.15 3.71 108
1.14 3.20 109
1.14 3.34 149
0.94(3) 4.06(3) 123
0.90(3)(5) 3.72(3)(5) 51
--------
# Unaudited
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load, but does
include expense reimbursements.
(3)Net of the following expense reimbursements and waivers, if applicable
(based on average net assets):
03/31/15 03/31/16 03/31/17 03/31/18 03/31/19 09/30/19#(5)
-------- -------- -------- -------- -------- ------------
AIG Strategic Bond Fund Class A......... -- -- -- -- 0.23% 0.27%
AIG Strategic Bond Fund Class B......... -- -- -- -- 0.23 0.27
AIG Strategic Bond Fund Class C......... -- -- -- -- 0.23 0.27
AIG Strategic Bond Fund Class W......... 0.69%(5) -- -- -- 0.23 0.27
(4)Inception date of class.
(5)Annualized.
See Notes to Financial Statements
11
SunAmerica Income Funds
FINANCIAL HIGHLIGHTS -- (continued)
AIG FLEXIBLE CREDIT FUND
------------------------
Net gain
(loss) on
Net investments Distributions Net
Asset (both Dividends from net Asset Net Assets,
Value, Net realized Total from from net realized Total Value, end of
beginning investment and investment investment gains on Distri- end of Total period
Period Ended of period income(1) unrealized) operations income investment butions period Return(2) (000's)
-------------------- --------- ---------- ----------- ---------- ---------- ------------- ------- ------ --------- -----------
Class A
-------
03/31/15 $3.59 $0.15 $(0.11) $ 0.04 $(0.17) $-- $(0.17) $3.46 1.06% $127,508
03/31/16 3.46 0.13 (0.16) (0.03) (0.14) -- (0.14) 3.29 (0.93) 125,775
03/31/17 3.29 0.14 0.16 0.30 (0.15) -- (0.15) 3.44 9.11 144,880
03/31/18 3.44 0.16 (0.04) 0.12 (0.16) -- (0.16) 3.40 3.54 133,268
03/31/19 3.40 0.18 (0.09) 0.09 (0.18) -- (0.18) 3.31 2.75 119,903
09/30/19# 3.31 0.09 (0.00) 0.09 (0.09) -- (0.09) 3.31 2.74 93,730
Class C
-------
03/31/15 $3.61 $0.13 $(0.11) $ 0.02 $(0.15) $-- $(0.15) $3.48 0.43% $ 45,411
03/31/16 3.48 0.11 (0.16) (0.05) (0.12) -- (0.12) 3.31 (1.54) 61,891
03/31/17 3.31 0.12 0.15 0.27 (0.12) -- (0.12) 3.46 8.38 74,241
03/31/18 3.46 0.14 (0.04) 0.10 (0.14) -- (0.14) 3.42 2.88 58,994
03/31/19 3.42 0.16 (0.09) 0.07 (0.16) -- (0.16) 3.33 2.09 55,505
09/30/19# 3.33 0.08 (0.00) 0.08 (0.08) -- (0.08) 3.33 2.41 56,405
Class W
-------
10/01/14(4)-03/31/15 $3.50 $0.06 $(0.01) $ 0.05 $(0.08) $-- $(0.08) $3.47 1.57% $ 13,632
03/31/16 3.47 0.13 (0.17) (0.04) (0.14) -- (0.14) 3.29 (1.02) 90,441
03/31/17 3.29 0.15 0.15 0.30 (0.15) -- (0.15) 3.44 9.34 157,377
03/31/18 3.44 0.17 (0.04) 0.13 (0.17) -- (0.17) 3.40 3.76 131,163
03/31/19 3.40 0.18 (0.07) 0.11 (0.19) -- (0.19) 3.32 3.26 136,382
09/30/19# 3.32 0.09 (0.00) 0.09 (0.09) -- (0.09) 3.32 2.85 197,600
Ratio
of net
Ratio of investment
expenses income to
to average average Portfolio
net assets net assets Turnover
---------- ---------- ---------
1.41%(3) 4.50%(3) 74%
1.45(3) 3.92(3) 52
1.43 4.21 69
1.33(3) 4.60(3) 63
1.06(3) 5.29(3) 57
1.04(3)(5) 5.44(3)(5) 25
2.06%(3) 3.88%(3) 74%
2.10(3) 3.27(3) 52
2.07 3.57 69
1.99(3) 3.94(3) 63
1.72(3) 4.63(3) 57
1.70(3)(5) 4.76(3)(5) 25
1.25%(3)(5) 4.25%(3)(5) 74%
1.25(3) 4.11(3) 52
1.21 4.44 69
1.12(3) 4.79(3) 63
0.85(3) 5.50(3) 57
0.84(3)(5) 5.62(3)(5) 25
--------
# Unaudited
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load, but does
include expense reimbursements.
(3)Net of the following expense reimbursements and waivers, if applicable
(based on average net assets):
03/31/15 03/31/16 03/31/17 03/31/18 03/31/19 09/30/19#(5)
-------- -------- -------- -------- -------- ------------
AIG Flexible Credit Fund Class A........ 0.19% 0.03% --% 0.11% 0.39% 0.40%
AIG Flexible Credit Fund Class C........ 0.20 0.02 -- 0.11 0.39 0.40
AIG Flexible Credit Fund Class W........ 1.12(5) 0.04 -- 0.11 0.39 0.40
(4)Inception date of class.
(5)Annualized.
See Notes to Financial Statements
12
AIG U.S. Government Securities Fund
PORTFOLIO PROFILE -- September 30, 2019 -- (unaudited)
Industry Allocation*
United States Treasury Notes.... 50.0%
United States Treasury Bonds.... 21.3
Government National Mtg. Assoc.. 19.0
Federal Home Loan Mtg. Corp..... 6.5
Federal National Mtg. Assoc..... 1.8
Repurchase Agreements........... 0.6
Federal Home Loan Bank.......... 0.6
----
99.8%
====
Credit Quality+#
Aaa........ 99.0%
Not Rated@. 1.0
-----
100.0%
=====
--------
*Calculated as a percentage of net assets
+Source: Moody's
#Calculated as a percentage of total debt issues, excluding short-term
securities.
@Represents debt issues that either have no rating, or the rating is
unavailable from the data source.
13
AIG U.S. Government Securities Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
Principal Value
Security Description Amount (Note 2)
U.S. GOVERNMENT AGENCIES -- 27.9%
Federal Home Loan Bank -- 0.6%
1.69% due 02/26/2021................ $ 480,000 $ 476,390
2.14% due 12/05/2022................ 372,093 372,095
----------
848,485
----------
Federal Home Loan Mtg. Corp. -- 6.5%
3.50% due 08/01/2030................ 2,039,300 2,113,617
3.50% due 12/01/2044................ 3,917,209 4,116,882
4.00% due 04/01/2034................ 1,094,492 1,159,485
Federal Home Loan Mtg. Corp. REMIC
Series 3747, Class WA
3.50% due 10/15/2030(2)............. 1,239,467 1,291,707
----------
8,681,691
----------
Federal National Mtg. Assoc. -- 1.8%
2.50% due 11/01/2027................ 2,332,083 2,358,127
----------
Government National Mtg. Assoc. -- 19.0%
3.50% due 03/15/2042................ 238,772 251,289
3.50% due 06/15/2042................ 1,298,007 1,366,060
3.50% due 07/15/2042................ 306,695 319,892
3.50% due 02/20/2045................ 681,987 713,657
4.00% due 03/15/2039................ 138,656 148,087
4.00% due 06/15/2039................ 274,665 291,378
4.00% due 12/15/2039................ 192,530 205,271
4.00% due 08/15/2040................ 142,706 152,310
4.00% due 11/15/2040................ 295,073 314,926
4.00% due 09/15/2041................ 774,461 824,753
4.00% due 10/15/2041................ 98,851 105,418
4.00% due 11/15/2041................ 491,835 522,481
4.00% due 12/15/2041................ 382,170 406,065
4.00% due 01/15/2042................ 1,081,451 1,148,806
4.00% due 02/15/2042................ 300,391 320,673
4.00% due 03/15/2042................ 127,501 136,042
4.50% due 09/15/2033................ 212,277 228,219
4.50% due 04/15/2039................ 48,222 52,517
4.50% due 05/15/2039................ 89,119 97,067
4.50% due 06/15/2039................ 915,938 997,150
4.50% due 07/15/2039................ 270,235 293,267
4.50% due 09/15/2039................ 134,966 147,027
4.50% due 11/15/2039................ 89,197 97,195
4.50% due 12/15/2039................ 248,242 270,343
4.50% due 02/15/2040................ 628,378 682,923
4.50% due 03/15/2040................ 259,019 279,978
4.50% due 04/15/2040................ 122,604 133,581
4.50% due 07/15/2040................ 294,226 317,358
4.50% due 03/15/2041................ 894,493 974,138
4.50% due 04/15/2041................ 171,896 184,135
4.50% due 06/15/2041................ 115,576 123,078
4.50% due 08/15/2041................ 135,278 144,103
4.50% due 04/20/2044................ 506,501 543,077
5.00% due 08/15/2033................ 251,605 278,899
5.00% due 10/15/2033................ 451,133 500,147
5.00% due 05/15/2035................ 74,531 79,740
5.00% due 08/15/2035................ 246,944 273,824
5.00% due 05/15/2036................ 59,489 66,847
5.00% due 09/15/2036................ 94,730 106,438
5.00% due 01/15/2037................ 130,586 145,669
5.00% due 03/15/2037................ 39,439 44,319
5.00% due 04/15/2037................ 162,977 178,339
Principal Value
Security Description Amount (Note 2)
Government National Mtg. Assoc. (continued)
5.00% due 04/15/2038........ $ 321,542 $ 357,388
5.00% due 05/15/2038........ 154,794 173,966
5.00% due 08/15/2038........ 367,696 413,522
5.00% due 02/15/2039........ 67,735 76,109
5.00% due 03/15/2039........ 82,891 88,684
5.00% due 04/15/2039........ 76,182 85,640
5.00% due 07/20/2039........ 683,449 756,094
5.00% due 08/15/2039........ 206,286 231,695
5.00% due 09/20/2039........ 2,240,077 2,478,249
5.00% due 10/15/2039........ 433,424 483,551
5.00% due 11/15/2039........ 355,038 398,791
5.00% due 12/15/2039........ 343,789 386,372
5.00% due 04/15/2040........ 319,724 359,027
5.00% due 05/15/2040........ 643,539 717,150
5.00% due 07/20/2045........ 268,298 295,201
5.50% due 06/15/2033........ 381,221 428,628
5.50% due 07/15/2033........ 77,191 87,581
5.50% due 10/15/2033........ 107,912 122,395
5.50% due 01/15/2034........ 340,852 383,159
5.50% due 02/15/2034........ 223,919 245,242
5.50% due 04/20/2035........ 336,311 379,242
5.50% due 09/15/2035........ 317,846 360,599
5.50% due 10/15/2035........ 139,967 158,872
5.50% due 02/15/2038........ 107,913 122,306
5.50% due 04/15/2038........ 60,706 68,655
5.50% due 09/15/2039........ 44,907 50,620
5.50% due 03/15/2040........ 207 235
6.00% due 04/15/2028........ 98,342 111,155
6.00% due 08/15/2033........ 174,185 199,763
6.00% due 12/15/2033........ 58,022 64,819
6.00% due 09/20/2038........ 707,035 812,923
6.50% due 10/15/2031........ 30,528 33,786
-----------
25,397,905
-----------
Total U.S. Government Agencies
(cost $36,874,994).......... 37,286,208
-----------
U.S. GOVERNMENT TREASURIES -- 71.3%
United States Treasury Bonds -- 21.3%
2.50% due 02/15/2045........ 1,000,000 1,076,016
2.75% due 08/15/2042........ 1,100,000 1,235,008
2.75% due 11/15/2042........ 2,000,000 2,244,297
3.00% due 05/15/2042........ 2,000,000 2,338,437
3.00% due 02/15/2049........ 1,000,000 1,192,305
3.13% due 11/15/2041........ 1,500,000 1,787,402
3.13% due 02/15/2042........ 1,100,000 1,311,492
3.38% due 11/15/2048........ 1,000,000 1,274,180
3.50% due 02/15/2039........ 2,000,000 2,505,312
4.25% due 11/15/2040........ 4,000,000 5,551,094
4.50% due 02/15/2036........ 1,500,000 2,067,773
4.75% due 02/15/2041........ 4,000,000 5,913,125
-----------
28,496,441
-----------
United States Treasury Notes -- 50.0%
1.25% due 03/31/2021........ 1,000,000 992,734
1.38% due 08/31/2020........ 1,500,000 1,493,555
1.38% due 05/31/2021........ 8,000,000 7,955,000
1.50% due 01/31/2022........ 1,875,000 1,869,946
1.50% due 02/28/2023........ 2,000,000 1,994,766
14
AIG U.S. Government Securities Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount (Note 2)
U.S. GOVERNMENT TREASURIES (continued)
United States Treasury Notes (continued)
1.50% due 08/15/2026............... $2,000,000 $ 1,984,063
1.63% due 08/15/2022............... 1,000,000 1,001,328
1.63% due 11/15/2022............... 1,000,000 1,001,367
1.63% due 05/15/2026............... 1,000,000 1,000,469
1.75% due 05/15/2022............... 1,875,000 1,882,617
1.75% due 05/15/2023............... 1,000,000 1,005,820
1.88% due 03/31/2022............... 2,500,000 2,516,992
2.00% due 09/30/2020............... 3,000,000 3,005,273
2.00% due 08/31/2021............... 2,000,000 2,012,344
2.00% due 02/15/2022............... 1,000,000 1,009,180
2.00% due 02/15/2023............... 1,000,000 1,013,594
2.00% due 05/31/2024............... 1,000,000 1,019,961
2.00% due 02/15/2025............... 5,000,000 5,105,274
2.00% due 08/15/2025............... 3,000,000 3,066,563
2.00% due 11/15/2026............... 2,700,000 2,768,871
2.13% due 08/31/2020............... 2,500,000 2,506,152
2.13% due 08/15/2021............... 1,000,000 1,008,086
2.13% due 12/31/2022............... 1,000,000 1,017,070
2.13% due 03/31/2024............... 2,000,000 2,048,359
2.25% due 11/15/2024............... 1,000,000 1,032,695
2.25% due 11/15/2025............... 1,000,000 1,037,070
2.25% due 11/15/2027............... 2,000,000 2,092,109
2.38% due 12/31/2020............... 2,000,000 2,014,141
2.38% due 08/15/2024............... 1,000,000 1,037,266
2.50% due 05/15/2024............... 1,000,000 1,041,172
2.63% due 08/31/2020............... 1,500,000 1,510,488
2.63% due 02/28/2023............... 3,000,000 3,103,711
2.75% due 11/15/2023............... 2,500,000 2,616,797
2.75% due 02/15/2024............... 1,000,000 1,049,649
------------
66,814,482
------------
Total U.S. Government Treasuries
(cost $89,291,888)................. 95,310,923
------------
Total Long-Term Investment Securities
(cost $126,166,882)................ 132,597,131
------------
Principal Value
Security Description Amount (Note 2)
REPURCHASE AGREEMENTS -- 0.6%
Agreement with Fixed Income Clearing Corp.,
bearing interest at 0.35%, dated 09/30/2019,
to be repurchased 10/01/2019 in the amount
of $854,008 and collateralized by $830,000 of
United States Treasury Notes, bearing interest
at 2.63%, due 12/31/2023 and having an
approximate value of $871,401
(cost $854,000)................................. $854,000 $ 854,000
------------
TOTAL INVESTMENTS
(cost $127,020,882)(1).......................... 99.8% 133,451,131
Other assets less liabilities...................... 0.2 294,710
-------- ------------
NET ASSETS 100.0% $133,745,841
======== ============
--------
(1)See Note 5 for cost of investments on a tax basis.
(2)Collateralized Mortgage Obligation
REMIC --Real Estate Mortgage Investment Conduit
The following is a summary of the inputs used to value the Fund's net assets as
of September 30, 2019 (see Note 2):
Level 1 -- Unadjusted Level 2 -- Other Level 3 -- Significant
Quoted Prices Observable Inputs Unobservable Inputs Total
--------------------- ----------------- ---------------------- ------------
ASSETS:
Investments at Value:*
U.S. Government Agencies... $-- $ 37,286,208 $-- $ 37,286,208
U.S. Government Treasuries. -- 95,310,923 -- 95,310,923
Repurchase Agreements...... -- 854,000 -- 854,000
--- ------------ --- ------------
Total Investments at Value. $-- $133,451,131 $-- $133,451,131
=== ============ === ============
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
See Notes to Financial Statements
15
AIG Strategic Bond Fund
PORTFOLIO PROFILE -- September 30, 2019 -- (unaudited)
Industry Allocation*
Federal National Mtg. Assoc............ 20.2%
Registered Investment Companies........ 8.5
Sovereign.............................. 8.3
Federal Home Loan Mtg. Corp............ 6.4
Diversified Financial Services......... 3.4
Diversified Banking Institutions....... 2.9
Cable/Satellite TV..................... 2.2
Real Estate Investment Trusts.......... 1.9
Cellular Telecom....................... 1.8
Oil Companies-Exploration & Production. 1.8
Pipelines.............................. 1.6
Electric-Integrated.................... 1.5
Banks-Commercial....................... 1.4
Telephone-Integrated................... 1.3
Government National Mtg. Assoc......... 1.3
United States Treasury Notes........... 1.3
United States Treasury Bonds........... 1.0
Oil Companies-Integrated............... 0.9
Medical-Drugs.......................... 0.9
Containers-Metal/Glass................. 0.8
Television............................. 0.7
Electric-Distribution.................. 0.7
Satellite Telecom...................... 0.6
Enterprise Software/Service............ 0.6
Finance-Consumer Loans................. 0.6
Auto-Cars/Light Trucks................. 0.6
Electric-Generation.................... 0.6
Banks-Super Regional................... 0.6
Food-Misc./Diversified................. 0.5
Medical-Hospitals...................... 0.5
Retail-Restaurants..................... 0.5
Cosmetics & Toiletries................. 0.5
Security Services...................... 0.4
Computers.............................. 0.4
Chemicals-Diversified.................. 0.4
Distribution/Wholesale................. 0.4
Oil-Field Services..................... 0.4
Rental Auto/Equipment.................. 0.4
Medical-HMO............................ 0.4
Batteries/Battery Systems.............. 0.4
Insurance-Property/Casualty............ 0.4
Applications Software.................. 0.4
Metal-Copper........................... 0.4
Internet Content-Entertainment......... 0.4
Containers-Paper/Plastic............... 0.3
Paper & Related Products............... 0.3
Machinery-Farming...................... 0.3
Diversified Minerals................... 0.3
Insurance-Life/Health.................. 0.3
Metal-Iron............................. 0.3
Real Estate Operations & Development... 0.3
Machinery-Construction & Mining........ 0.3
Multimedia............................. 0.3
Radio.................................. 0.3
Dialysis Centers....................... 0.3
Commercial Services.................... 0.3
Computers-Integrated Systems........... 0.3
Theaters............................... 0.3
Electronic Parts Distribution.......... 0.3
Food-Retail............................ 0.3
Disposable Medical Products............ 0.3%
Energy-Alternate Sources............... 0.3
U.S. Government Treasuries............. 0.3
Diversified Manufacturing Operations... 0.3
Medical Labs & Testing Services........ 0.3
Building & Construction-Misc........... 0.2
Retail-Petroleum Products.............. 0.2
E-Commerce/Services.................... 0.2
Diagnostic Equipment................... 0.2
Pharmacy Services...................... 0.2
Electronic Components-Semiconductors... 0.2
Finance-Credit Card.................... 0.2
Food-Meat Products..................... 0.2
Building & Construction Products-Misc.. 0.2
Transport-Rail......................... 0.2
Computer Services...................... 0.2
Casino Services........................ 0.2
Savings & Loans/Thrifts................ 0.2
Finance-Mortgage Loan/Banker........... 0.2
Agricultural Chemicals................. 0.2
Finance-Leasing Companies.............. 0.2
Independent Power Producers............ 0.2
Airport Development/Maintenance........ 0.2
Chemicals-Specialty.................... 0.2
Auction Houses/Art Dealers............. 0.2
Gambling (Non-Hotel)................... 0.2
Computer Software...................... 0.2
Gas-Distribution....................... 0.2
Metal-Diversified...................... 0.2
Banks-Money Center..................... 0.2
Insurance Brokers...................... 0.2
Consumer Products-Misc................. 0.2
Transport-Marine....................... 0.2
Steel-Producers........................ 0.2
Brewery................................ 0.2
Hazardous Waste Disposal............... 0.2
Machinery-General Industrial........... 0.2
Finance-Investment Banker/Broker....... 0.1
Building-Heavy Construction............ 0.1
Auto/Truck Parts & Equipment-Original.. 0.1
Banks-Export/Import.................... 0.1
Auto-Heavy Duty Trucks................. 0.1
Retail-Appliances...................... 0.1
Data Processing/Management............. 0.1
Chemicals-Plastics..................... 0.1
Aerospace/Defense-Equipment............ 0.1
Internet Connectivity Services......... 0.1
Trucking/Leasing....................... 0.1
Finance-Auto Loans..................... 0.1
Food-Dairy Products.................... 0.1
Poultry................................ 0.1
Metal Processors & Fabrication......... 0.1
Coal................................... 0.1
Beverages-Non-alcoholic................ 0.1
Broadcast Services/Program............. 0.1
Building Societies..................... 0.1
Investment Companies................... 0.1
Medical-Generic Drugs.................. 0.1
Oil Field Machinery & Equipment........ 0.1
Medical Products....................... 0.1
16
AIG Strategic Bond Fund
PORTFOLIO PROFILE -- September 30, 2019 -- (unaudited) (continued)
Industry Allocation* (continued)
Computers-Memory Devices............ 0.1%
Medical Instruments................. 0.1
Aerospace/Defense................... 0.1
Commercial Services-Finance......... 0.1
Hotels/Motels....................... 0.1
Medical-Biomedical/Gene............. 0.1
Casino Hotels....................... 0.1
Publishing-Periodicals.............. 0.1
Non-Ferrous Metals.................. 0.1
Electronic Measurement Instruments.. 0.1
Auto Repair Centers................. 0.1
Retail-Mail Order................... 0.1
Telecom Services.................... 0.1
Transport-Truck..................... 0.1
Human Resources..................... 0.1
Banks-Special Purpose............... 0.1
Building Products-Air & Heating..... 0.1
Medical-Wholesale Drug Distribution. 0.1
Finance-Commercial.................. 0.1
Diamonds/Precious Stones............ 0.1
Platinum............................ 0.1
Transport-Equipment & Leasing....... 0.1
Beverages-Wine/Spirits.............. 0.1
Retail-Discount..................... 0.1
Advertising Agencies................ 0.1
Soap & Cleaning Preparation......... 0.1
Physicians Practice Management...... 0.1
Quarrying........................... 0.1
Publishing-Books.................... 0.1
Health Care Providers & Services.... 0.1
Athletic Equipment.................. 0.1
Internet Financial Services......... 0.1
Consulting Services................. 0.1
Real Estate Management/Services..... 0.1
----
99.6%
====
--------
*Calculated as a percentage of net assets
Credit Quality+#
Aaa........ 34.8%
Aa......... 1.6
A.......... 7.0
Baa........ 14.6
Ba......... 14.2
B.......... 17.8
Caa........ 3.0
Not Rated@. 7.0
-----
100.0%
=====
--------
+Source: Moody's
#Calculated as a percentage of total debt issues, excluding short-term
securities.
@Represents debt issues that either have no rating, or the rating is
unavailable from the data source.
17
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
Principal Value
Security Description Amount(17) (Note 2)
ASSET BACKED SECURITIES -- 2.9%
Diversified Financial Services -- 2.9%
American Express Credit Account Master Trust
Series 2018-4, Class A
2.99% due 12/15/2023.......................... $ 100,000 $ 101,745
American Express Credit Account Master Trust
Series 2018-8, Class A
3.18% due 04/15/2024.......................... 167,000 171,231
Americredit Automobile Receivables Trust
Series 2019-1, Class A3
2.97% due 11/20/2023.......................... 200,000 202,918
BA Credit Card Trust
Series 2019-A1, Class A1
1.74% due 01/15/2025.......................... 200,000 199,306
BA Credit Card Trust
Series 2018-A2, Class A2
3.00% due 09/15/2023.......................... 204,000 207,470
BANK
Series 2019-BN19, Class A3
3.18% due 08/15/2061(1)....................... 500,000 530,082
BANK
Series 2019-BN16, Class A2
3.93% due 02/15/2052(1)....................... 239,000 255,054
Benchmark Mtg. Trust
Series 2019-B9, Class AAB
3.93% due 03/15/2052(1)....................... 300,000 328,570
Benchmark Mtg. Trust VRS
Series 2018-B7, Class A4
4.51% due 05/15/2053(1)(2).................... 1,000,000 1,163,617
BX Commercial Mtg. Trust FRS
Series 2019-IMC, Class A
3.03% (1 ML+1.00%)
due 04/15/2034*(1)............................ 400,000 400,251
Capital One Multi-Asset Execution Trust
Series 2019-A3, Class A3
2.06% due 08/15/2028.......................... 100,000 99,404
Capital One Prime Auto Receivables Trust
Series 2019-2, Class A3
1.92% due 05/15/2024.......................... 100,000 100,062
CarMax Auto Owner Trust
Series 2019-2, Class A3
2.68% due 03/15/2024.......................... 65,000 66,049
CarMax Auto Owner Trust
Series 2018-4, Class A3
3.36% due 09/15/2023.......................... 200,000 204,626
Chase Mtg. Finance Corp. VRS
Series 2016-SH2, Class M2
3.75% due 12/25/2045*(2)(3)................... 313,848 327,056
Citibank Credit Card Issuance Trust
Series 2018-A1, Class A1
2.49% due 01/20/2023.......................... 100,000 100,736
COMM Mtg. Trust VRS
Series 2016-787S, Class B
3.96% due 02/10/2036*(1)(2)................... 132,000 142,048
Discover Card Execution Note Trust
Series 2019-A1, Class A1
3.04% due 07/15/2024.......................... 100,000 102,621
Ford Credit Auto Owner Trust
Series 2018-2, Class A
3.47% due 01/15/2030*......................... 100,000 104,676
Principal Value
Security Description Amount(17) (Note 2)
Diversified Financial Services (continued)
GM Financial Consumer Automobile Receivables
Trust
Series 2019-3, Class A3
2.18% due 04/16/2024......................... $ 50,000 $ 50,298
GS Mtg. Securities Trust
Series 2015-GC28, Class A2
2.90% due 02/10/2048(1)...................... 214,357 214,403
Honda Auto Receivables Owner Trust
Series 2019-1, Class A3
2.83% due 03/20/2023......................... 70,000 71,235
ILPT Trust
Series 2019-SURF, Class A
4.15% due 02/11/2041*(1)..................... 590,000 667,952
JP Morgan Mtg. Trust VRS
Series 2017-6, Class A6
3.00% due 12/25/2048*(2)(3).................. 771,188 775,104
JP Morgan Mtg. Trust VRS
Series 2018-1, Class A5
3.50% due 06/25/2048*(2)(3).................. 614,135 621,709
Mercedes-Benz Auto Lease Trust
Series 2019-A, Class A4
3.25% due 10/15/2024......................... 31,000 31,583
Mercedes-Benz Auto Lease Trust
Series 2018-B, Class A4
3.31% due 07/15/2024......................... 321,000 326,767
Morgan Stanley Capital Barclays Bank Trust
Series 2016-MART, Class A
2.20% due 09/13/2031*(1)..................... 185,000 184,902
MTRO Commercial Mtg. Trust FRS
Series 2019-TECH, Class A
2.93% (1 ML+0.90%)
due 12/15/2033*(1)........................... 350,000 350,000
One Bryant Park Trust
Series 2019-OBP, Class A
2.52% due 09/15/2054*(1)..................... 390,000 391,962
Shellpoint Co-Originator Trust VRS
Series 2017-2, Class A1
3.50% due 10/25/2047*(2)(3).................. 165,973 167,282
Toyota Auto Loan Extended Note Trust
Series 2019-1A, Class A
2.56% due 11/25/2031*........................ 100,000 102,212
Toyota Auto Receivables Owner Trust
Series 2018-C, Class A4
3.13% due 02/15/2024......................... 125,000 128,514
World Financial Network Credit Card Master
Trust
Series 2019-C, Class M
2.71% due 07/15/2026......................... 100,000 99,920
----------
Total Asset Backed Securities
(cost $8,656,512)............................ 8,991,365
----------
U.S. CORPORATE BONDS & NOTES -- 31.4%
Advertising Agencies -- 0.1%
Interpublic Group of Cos., Inc.
Senior Notes
4.20% due 04/15/2024......................... 78,000 83,653
18
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Advertising Agencies (continued)
Interpublic Group of Cos., Inc.
Senior Notes
5.40% due 10/01/2048............... $ 62,000 $ 73,794
--------
157,447
--------
Aerospace/Defense -- 0.1%
BAE Systems Holdings, Inc.
Company Guar. Notes
3.85% due 12/15/2025*.............. 184,000 193,465
General Dynamics Corp.
Company Guar. Notes
2.88% due 05/11/2020............... 117,000 117,610
--------
311,075
--------
Aerospace/Defense-Equipment -- 0.1%
United Technologies Corp.
Senior Notes
1.15% due 05/18/2024............... EUR 375,000 425,595
--------
Agricultural Chemicals -- 0.0%
Mosaic Co.
Senior Notes
5.63% due 11/15/2043............... 54,000 59,863
--------
Airlines -- 0.0%
Atlas Air, Inc.
Pass-Through Certs.
Series 1999-1, Class B
7.63% due 01/02/2020(4)............ 13,147 13,223
--------
Applications Software -- 0.3%
CDK Global, Inc.
Senior Notes
5.88% due 06/15/2026............... 266,000 282,958
Microsoft Corp.
Senior Notes
3.13% due 12/06/2028............... EUR 235,000 324,731
SS&C Technologies, Inc.
Company Guar. Notes
5.50% due 09/30/2027*.............. 320,000 334,408
--------
942,097
--------
Auction Houses/Art Dealers -- 0.2%
BidFair MergeRight, Inc.
Senior Sec. Notes
7.38% due 10/15/2027*.............. 471,000 479,864
--------
Auto-Cars/Light Trucks -- 0.4%
Daimler Finance North America LLC
Company Guar. Notes
2.00% due 07/06/2021*.............. 78,000 77,541
Ford Motor Credit Co. LLC
Senior Notes
2.39% due 02/17/2026............... EUR 200,000 219,764
Ford Motor Credit Co. LLC
Senior Notes
3.10% due 05/04/2023............... 218,000 214,002
Ford Motor Credit Co. LLC
Senior Notes
4.54% due 03/06/2025............... GBP 100,000 130,273
Principal Value
Security Description Amount(17) (Note 2)
Auto-Cars/Light Trucks (continued)
General Motors Financial Co., Inc.
Company Guar. Notes
3.70% due 05/09/2023................ $ 144,000 $ 147,322
Hyundai Capital America
Senior Notes
3.40% due 06/20/2024*............... 192,000 195,476
Nissan Motor Acceptance Corp.
Senior Notes
2.65% due 07/13/2022*............... 234,000 235,215
Toyota Motor Credit Corp.
Senior Notes
3.45% due 09/20/2023................ 122,000 129,041
----------
1,348,634
----------
Auto-Heavy Duty Trucks -- 0.1%
Allison Transmission, Inc.
Senior Notes
5.00% due 10/01/2024*............... 361,000 368,897
PACCAR Financial Corp.
Senior Notes
2.00% due 09/26/2022................ 79,000 79,106
----------
448,003
----------
Auto/Truck Parts & Equipment-Original -- 0.0%
Lear Corp.
Senior Notes
5.25% due 05/15/2049................ 113,000 116,233
----------
Banks-Commercial -- 0.5%
BankUnited, Inc.
Senior Notes
4.88% due 11/17/2025................ 420,000 458,518
Citizens Financial Group, Inc.
Sub. Notes
4.30% due 12/03/2025................ 79,000 84,471
Regions Financial Corp.
Sub. Notes
7.38% due 12/10/2037................ 198,000 282,617
SunTrust Bank
Senior Notes
3.20% due 04/01/2024................ 294,000 305,637
SunTrust Bank
Senior Notes
3.50% due 08/02/2022................ 111,000 113,455
Webster Financial Corp.
Senior Notes
4.10% due 03/25/2029................ 191,000 203,975
----------
1,448,673
----------
Banks-Fiduciary -- 0.0%
Bank of New York Mellon Corp.
Senior Notes
1.95% due 08/23/2022................ 110,000 110,060
----------
Banks-Super Regional -- 0.5%
Bank of America NA
Senior Notes
3.34% due 01/25/2023................ 250,000 256,654
Wells Fargo & Co.
Senior Notes
1.00% due 02/02/2027................ EUR 300,000 340,775
19
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Banks-Super Regional (continued)
Wells Fargo & Co.
Senior Notes
3.55% due 09/29/2025................... $165,000 $ 174,384
Wells Fargo & Co.
Sub. Notes
4.65% due 11/04/2044................... 188,000 217,229
Wells Fargo Bank NA
Senior Notes
2.08% due 09/09/2022................... 490,000 488,872
Wells Fargo Bank NA
Sub. Notes
5.25% due 08/01/2023................... GBP 100,000 139,537
----------
1,617,451
----------
Batteries/Battery Systems -- 0.4%
Energizer Holdings, Inc.
Company Guar. Notes
6.38% due 07/15/2026*.................. 535,000 573,060
EnerSys
Company Guar. Notes
5.00% due 04/30/2023*.................. 605,000 620,125
----------
1,193,185
----------
Beverages-Non-alcoholic -- 0.1%
Keurig Dr Pepper, Inc.
Company Guar. Notes
4.42% due 05/25/2025................... 227,000 247,057
PepsiCo., Inc.
Senior Notes
2.75% due 04/30/2025................... 114,000 118,776
----------
365,833
----------
Beverages-Wine/Spirits -- 0.1%
Constellation Brands, Inc.
Company Guar. Notes
3.15% due 08/01/2029................... 93,000 94,765
Constellation Brands, Inc.
Company Guar. Notes
5.25% due 11/15/2048................... 60,000 75,121
----------
169,886
----------
Brewery -- 0.2%
Anheuser-Busch Cos. LLC/Anheuser-Busch
InBev Worldwide, Inc.
Company Guar. Notes
4.90% due 02/01/2046................... 117,000 139,607
Anheuser-Busch InBev Worldwide, Inc.
Company Guar. Notes
4.60% due 04/15/2048................... 56,000 64,587
Anheuser-Busch InBev Worldwide, Inc.
Company Guar. Notes
5.55% due 01/23/2049................... 198,000 259,126
----------
463,320
----------
Broadcast Services/Program -- 0.1%
Fox Corp.
Senior Notes
5.48% due 01/25/2039*.................. 82,000 100,505
Principal Value
Security Description Amount(17) (Note 2)
Broadcast Services/Program (continued)
Fox Corp.
Senior Notes
5.58% due 01/25/2049*........................ $100,000 $126,545
--------
227,050
--------
Building & Construction Products-Misc. -- 0.2%
Fortune Brands Home & Security, Inc.
Senior Notes
3.25% due 09/15/2029......................... 78,000 77,467
Owens Corning
Senior Notes
4.30% due 07/15/2047......................... 157,000 142,578
Standard Industries, Inc.
Senior Notes
6.00% due 10/15/2025*........................ 450,000 471,807
--------
691,852
--------
Building & Construction-Misc. -- 0.1%
Frontdoor, Inc.
Senior Notes
6.75% due 08/15/2026*........................ 419,000 458,813
--------
Building Products-Cement -- 0.0%
Martin Marietta Materials, Inc.
Senior Notes
3.50% due 12/15/2027......................... 121,000 124,166
--------
Building-Heavy Construction -- 0.1%
Tutor Perini Corp.
Company Guar. Notes
6.88% due 05/01/2025*........................ 423,000 410,310
--------
Building-Residential/Commercial -- 0.0%
Toll Brothers Finance Corp.
Company Guar. Notes
4.35% due 02/15/2028......................... 136,000 140,420
--------
Cable/Satellite TV -- 1.5%
Block Communications, Inc.
Senior Notes
6.88% due 02/15/2025*........................ 462,000 481,635
CCO Holdings LLC/CCO Holdings Capital Corp.
Senior Notes
5.00% due 02/01/2028*........................ 203,000 209,851
CCO Holdings LLC/CCO Holdings Capital Corp.
Senior Notes
5.38% due 05/01/2025*........................ 300,000 311,250
CCO Holdings LLC/CCO Holdings Capital Corp.
Senior Notes
5.38% due 06/01/2029*........................ 315,000 335,475
CCO Holdings LLC/CCO Holdings Capital Corp.
Senior Notes
5.88% due 04/01/2024*........................ 150,000 156,519
Charter Communications Operating LLC/Charter
Communications Operating Capital FRS
Senior Sec. Notes
3.90% (3 ML+1.65%)
due 02/01/2024............................... 410,000 420,195
20
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Cable/Satellite TV (continued)
Charter Communications Operating LLC/Charter
Communications Operating Capital
Senior Sec. Notes
5.05% due 03/30/2029........................... $ 102,000 $ 114,115
Charter Communications Operating LLC/Charter
Communications Operating Capital
Senior Sec. Notes
5.38% due 04/01/2038........................... 20,000 22,341
Charter Communications Operating LLC/Charter
Communications Operating Capital
Senior Sec. Notes
6.38% due 10/23/2035........................... 64,000 77,493
Comcast Corp.
Company Guar. Notes
3.15% due 03/01/2026........................... 185,000 193,711
Comcast Corp.
Company Guar. Notes
3.90% due 03/01/2038........................... 49,000 54,109
Comcast Corp.
Company Guar. Notes
3.97% due 11/01/2047........................... 43,000 47,223
Comcast Corp.
Company Guar. Notes
4.60% due 10/15/2038........................... 142,000 169,633
CSC Holdings LLC
Senior Notes
5.25% due 06/01/2024........................... 775,000 833,125
CSC Holdings LLC
Company Guar. Notes
5.50% due 04/15/2027*.......................... 1,320,000 1,395,755
----------
4,822,430
----------
Casino Services -- 0.2%
Eldorado Resorts, Inc.
Company Guar. Notes
6.00% due 09/15/2026........................... 510,000 558,450
----------
Cellular Telecom -- 0.9%
Sprint Corp.
Company Guar. Notes
7.88% due 09/15/2023........................... 2,227,000 2,446,271
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II
LLC/Sprint Spectrum Co. III LLC
Senior Sec. Notes
4.74% due 09/20/2029*.......................... 213,000 226,421
T-Mobile USA, Inc.
Company Guar. Notes
6.38% due 03/01/2025........................... 200,000 207,192
----------
2,879,884
----------
Chemicals-Diversified -- 0.2%
Dow Chemical Co.
Senior Notes
5.55% due 11/30/2048*.......................... 100,000 121,303
Principal Value
Security Description Amount(17) (Note 2)
Chemicals-Diversified (continued)
DowDuPont, Inc.
Senior Notes
5.32% due 11/15/2038...................... $ 3,000 $ 3,662
Eastman Chemical Co.
Senior Notes
1.50% due 05/26/2023...................... EUR 175,000 200,662
FMC Corp.
Senior Notes
3.45% due 10/01/2029...................... 85,000 86,357
LYB International Finance III LLC
Company Guar. Notes
4.20% due 10/15/2049...................... 83,000 82,226
Westlake Chemical Corp.
Senior Notes
1.63% due 07/17/2029...................... EUR 155,000 173,227
--------
667,437
--------
Chemicals-Plastics -- 0.1%
Neon Holdings, Inc.
Senior Sec. Notes
10.13% due 04/01/2026*.................... 428,000 431,210
--------
Chemicals-Specialty -- 0.1%
Ecolab, Inc.
Senior Notes
2.38% due 08/10/2022...................... 134,000 135,155
Huntsman International LLC
Senior Notes
4.50% due 05/01/2029...................... 76,000 79,903
Lubrizol Corp.
Company Guar. Notes
6.50% due 10/01/2034...................... 107,000 152,352
--------
367,410
--------
Coal -- 0.1%
SunCoke Energy Partners LP/SunCoke Energy
Partners Finance Corp.
Company Guar. Notes
7.50% due 06/15/2025*..................... 412,000 366,680
--------
Coatings/Paint -- 0.0%
Sherwin-Williams Co.
Senior Notes
2.95% due 08/15/2029...................... 93,000 93,176
--------
Commercial Services -- 0.3%
Harsco Corp.
Company Guar. Notes
5.75% due 07/31/2027*..................... 297,000 309,266
Nielsen Finance LLC/Nielsen Finance Co.
Company Guar. Notes
5.00% due 04/15/2022*..................... 535,000 536,498
--------
845,764
--------
Commercial Services-Finance -- 0.0%
PayPal Holdings, Inc.
Senior Notes
2.85% due 10/01/2029...................... 56,000 56,348
--------
21
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Computer Services -- 0.2%
IBM Credit LLC
Senior Notes
3.00% due 02/06/2023.................. $533,000 $ 548,292
----------
Computer Software -- 0.1%
Rackspace Hosting, Inc.
Company Guar. Notes
8.63% due 11/15/2024*................. 305,000 280,570
----------
Computers -- 0.4%
Apple, Inc.
Senior Notes
2.05% due 09/11/2026.................. 99,000 97,868
Apple, Inc.
Senior Notes
2.85% due 05/06/2021.................. 114,000 115,783
Dell International LLC/EMC Corp.
Senior Sec. Notes
6.02% due 06/15/2026*................. 835,000 939,023
Dell International LLC/EMC Corp.
Senior Sec. Notes
8.10% due 07/15/2036*................. 84,000 107,147
Hewlett Packard Enterprise Co.
Senior Notes
6.20% due 10/15/2035.................. 53,000 62,880
----------
1,322,701
----------
Computers-Integrated Systems -- 0.3%
Diebold Nixdorf, Inc.
Company Guar. Notes
8.50% due 04/15/2024.................. 522,000 490,680
NCR Corp.
Company Guar. Notes
6.13% due 09/01/2029*................. 325,000 342,566
----------
833,246
----------
Consumer Products-Misc. -- 0.2%
Central Garden & Pet Co.
Company Guar. Notes
5.13% due 02/01/2028.................. 475,000 484,500
----------
Containers-Metal/Glass -- 0.5%
Crown Cork & Seal Co., Inc.
Company Guar. Notes
7.38% due 12/15/2026.................. 324,000 393,660
Owens-Brockway Glass Container, Inc.
Company Guar. Notes
5.38% due 01/15/2025*................. 526,000 539,150
Silgan Holdings, Inc.
Senior Notes
4.75% due 03/15/2025.................. 600,000 613,500
----------
1,546,310
----------
Containers-Paper/Plastic -- 0.2%
Sealed Air Corp.
Company Guar. Notes
5.13% due 12/01/2024*................. 501,000 536,070
----------
Principal Value
Security Description Amount(17) (Note 2)
Cosmetics & Toiletries -- 0.4%
Coty, Inc.
Company Guar. Notes
6.50% due 04/15/2026*............. $ 625,000 $ 606,250
First Quality Finance Co., Inc.
Company Guar. Notes
5.00% due 07/01/2025*............. 548,000 566,511
----------
1,172,761
----------
Data Processing/Management -- 0.1%
Fiserv, Inc.
Senior Notes
1.63% due 07/01/2030.............. EUR 135,000 158,205
Fiserv, Inc.
Senior Notes
4.40% due 07/01/2049.............. 123,000 137,246
----------
295,451
----------
Diagnostic Equipment -- 0.1%
Thermo Fisher Scientific, Inc.
Senior Notes
1.88% due 10/01/2049.............. EUR 350,000 381,505
----------
Dialysis Centers -- 0.3%
DaVita HealthCare Partners, Inc.
Company Guar. Notes
5.00% due 05/01/2025.............. 250,000 249,017
DaVita HealthCare Partners, Inc.
Company Guar. Notes
5.13% due 07/15/2024.............. 600,000 609,750
----------
858,767
----------
Distribution/Wholesale -- 0.3%
Anixter, Inc.
Company Guar. Notes
6.00% due 12/01/2025.............. 296,000 327,080
H&E Equipment Services, Inc.
Company Guar. Notes
5.63% due 09/01/2025.............. 643,000 661,904
----------
988,984
----------
Diversified Banking Institutions -- 1.4%
Bank of America Corp.
Senior Notes
0.75% due 07/26/2023.............. EUR 225,000 251,575
Bank of America Corp.
Senior Notes
2.38% due 06/19/2024.............. EUR 300,000 361,747
Bank of America Corp.
Senior Notes
3.71% due 04/24/2028.............. 148,000 157,410
Bank of America Corp.
Senior Notes
3.86% due 07/23/2024.............. 114,000 120,090
Bank of America Corp.
Sub. Notes
4.18% due 11/25/2027.............. 312,000 336,809
Citigroup, Inc.
Senior Notes
2.75% due 01/24/2024.............. GBP 100,000 129,208
22
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Diversified Banking Institutions (continued)
Citigroup, Inc.
Senior Notes
3.67% due 07/24/2028........... $ 185,000 $ 195,850
Citigroup, Inc.
Senior Notes
3.98% due 03/20/2030........... 84,000 91,339
Citigroup, Inc.
Sub. Notes
4.45% due 09/29/2027........... 252,000 274,951
Citigroup, Inc.
Sub. Notes
5.88% due 02/22/2033........... 119,000 146,757
Citigroup, Inc.
Sub. Notes
6.00% due 10/31/2033........... 54,000 67,497
Goldman Sachs Group, Inc.
Senior Notes
2.35% due 11/15/2021........... 218,000 218,229
Goldman Sachs Group, Inc.
Senior Notes
3.13% due 07/25/2029........... GBP 100,000 133,549
Goldman Sachs Group, Inc. FRS
Senior Notes
3.33% (3 ML+1.17%)
due 11/15/2021................. 436,000 439,342
Goldman Sachs Group, Inc.
Senior Notes
3.69% due 06/05/2028........... 87,000 91,256
Goldman Sachs Group, Inc.
Sub. Notes
4.25% due 10/21/2025........... 129,000 138,043
Goldman Sachs Group, Inc.
Sub. Notes
6.75% due 10/01/2037........... 131,000 176,835
JPMorgan Chase & Co.
Senior Notes
2.74% due 10/15/2030........... 176,000 174,764
JPMorgan Chase & Co.
Senior Notes
3.21% due 04/01/2023........... 327,000 334,968
Morgan Stanley
Senior Notes
3.63% due 01/20/2027........... 298,000 315,535
Morgan Stanley
Senior Notes
5.50% due 07/24/2020........... 294,000 301,921
----------
4,457,675
----------
Diversified Financial Services -- 0.1%
USAA Capital Corp.
Senior Notes
2.63% due 06/01/2021*.......... 152,000 153,615
----------
Diversified Manufacturing Operations -- 0.2%
General Electric Co.
Senior Notes
1.25% due 05/26/2023........... EUR 200,000 222,252
Principal Value
Security Description Amount(17) (Note 2)
Diversified Manufacturing Operations (continued)
Illinois Tool Works, Inc.
Senior Notes
0.63% due 12/05/2027.................. EUR 165,000 $ 184,559
Illinois Tool Works, Inc.
Senior Notes
3.50% due 03/01/2024.................. 96,000 101,643
----------
508,454
----------
E-Commerce/Products -- 0.0%
Amazon.com, Inc.
Senior Notes
4.80% due 12/05/2034.................. 65,000 81,325
----------
E-Commerce/Services -- 0.2%
Expedia Group, Inc.
Company Guar. Notes
3.25% due 02/15/2030*................. 79,000 78,775
GrubHub Holdings, Inc.
Company Guar. Notes
5.50% due 07/01/2027*................. 602,000 614,220
----------
692,995
----------
Electric Products-Misc. -- 0.0%
Emerson Electric Co.
Senior Notes
0.38% due 05/22/2024.................. EUR 100,000 110,379
----------
Electric-Distribution -- 0.4%
CenterPoint Energy, Inc.
Senior Notes
2.95% due 03/01/2030.................. 85,000 84,686
National Rural Utilities Cooperative
Finance Corp.
Collateral Trust Bonds
2.85% due 01/27/2025.................. 116,000 119,556
NextEra Energy Operating Partners LP
Company Guar. Notes
4.25% due 07/15/2024*................. 425,000 437,750
Oglethorpe Power Corp.
1st Mtg. Notes
5.05% due 10/01/2048.................. 226,000 273,454
Sempra Energy
Senior Notes
3.40% due 02/01/2028.................. 165,000 170,438
----------
1,085,884
----------
Electric-Generation -- 0.2%
Basin Electric Power Cooperative
1st Mtg. Notes
4.75% due 04/26/2047*................. 43,000 50,138
Emera US Finance LP
Company Guar. Notes
4.75% due 06/15/2046.................. 114,000 131,943
Vistra Operations Co. LLC
Company Guar. Notes
5.00% due 07/31/2027*................. 425,000 437,614
----------
619,695
----------
23
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Electric-Integrated -- 1.0%
AEP Texas, Inc.
Senior Notes
4.15% due 05/01/2049....................... $ 45,000 $ 51,781
Ameren Corp.
Senior Notes
2.50% due 09/15/2024....................... 85,000 85,422
Black Hills Corp.
Senior Notes
3.88% due 10/15/2049....................... 67,000 67,651
Consolidated Edison Co. of New York, Inc.
Senior Notes
4.45% due 06/15/2020....................... 132,000 134,260
Dominion Resources, Inc.
Senior Notes
5.25% due 08/01/2033....................... 182,000 220,409
DPL, Inc.
Senior Notes
4.35% due 04/15/2029*...................... 37,000 36,547
DTE Electric Co.
General Refunding Mtg.
3.95% due 03/01/2049....................... 202,000 231,476
DTE Energy Co.
Senior Notes
3.40% due 06/15/2029....................... 79,000 82,330
Duke Energy Progress LLC
1st Mtg. Notes
2.80% due 05/15/2022....................... 82,000 83,554
Edison International
Senior Notes
4.13% due 03/15/2028....................... 115,000 117,924
Entergy Texas, Inc.
1st Mtg. Notes
3.55% due 09/30/2049....................... 60,000 62,390
Entergy Texas, Inc.
1st Mtg. Notes
4.50% due 03/30/2039....................... 206,000 242,522
FirstEnergy Corp.
Senior Notes
7.38% due 11/15/2031....................... 245,000 346,652
Georgia Power Co.
Senior Notes
2.00% due 09/08/2020....................... 118,000 117,862
Interstate Power & Light Co.
Senior Notes
3.50% due 09/30/2049....................... 83,000 83,403
Mississippi Power Co.
Senior Notes
4.25% due 03/15/2042....................... 137,000 148,330
PECO Energy Co.
1st Mtg. Bonds
3.00% due 09/15/2049....................... 90,000 88,045
Public Service Co. of Colorado
1st Mtg. Bonds
3.70% due 06/15/2028....................... 148,000 163,501
Public Service Co. of Colorado
1st Mtg. Bonds
4.10% due 06/15/2048....................... 97,000 113,298
Principal Value
Security Description Amount(17) (Note 2)
Electric-Integrated (continued)
South Carolina Electric & Gas Co.
1st Mtg. Bonds
5.10% due 06/01/2065................. $183,000 $ 243,186
Talen Energy Supply LLC
Senior Sec. Notes
6.63% due 01/15/2028*................ 165,000 162,113
Talen Energy Supply LLC
Senior Sec. Notes
7.25% due 05/15/2027*................ 175,000 177,853
----------
3,060,509
----------
Electric-Transmission -- 0.0%
AEP Transmission Co. LLC
Senior Notes
3.15% due 09/15/2049................. 59,000 58,039
----------
Electronic Components-Semiconductors -- 0.2%
Amkor Technology, Inc.
Senior Notes
6.63% due 09/15/2027*................ 438,000 477,420
Texas Instruments, Inc.
Senior Notes
2.25% due 09/04/2029................. 56,000 55,131
----------
532,551
----------
Electronic Measurement Instruments -- 0.1%
Trimble, Inc.
Senior Notes
4.75% due 12/01/2024................. 12,000 12,880
Trimble, Inc.
Senior Notes
4.90% due 06/15/2028................. 213,000 231,101
----------
243,981
----------
Electronic Parts Distribution -- 0.3%
Arrow Electronics, Inc.
Senior Notes
4.00% due 04/01/2025................. 74,000 77,134
Ingram Micro, Inc.
Senior Notes
5.45% due 12/15/2024................. 722,000 747,960
----------
825,094
----------
Energy-Alternate Sources -- 0.3%
Hanwha Energy USA Holdings Corp.
Company Guar. Notes
2.38% due 07/30/2022*................ 204,000 204,274
Pattern Energy Group, Inc.
Company Guar. Notes
5.88% due 02/01/2024*................ 555,000 568,181
----------
772,455
----------
Enterprise Software/Service -- 0.2%
Donnelley Financial Solutions, Inc.
Company Guar. Notes
8.25% due 10/15/2024................. 453,000 469,987
Oracle Corp.
Senior Notes
2.95% due 11/15/2024................. 226,000 234,262
----------
704,249
----------
24
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Finance-Auto Loans -- 0.1%
Credit Acceptance Corp.
Company Guar. Notes
6.63% due 03/15/2026*............ $373,000 $ 399,110
----------
Finance-Consumer Loans -- 0.6%
Enova International, Inc.
Company Guar. Notes
8.50% due 09/01/2024*............ 638,000 594,935
SLM Corp.
Senior Notes
5.63% due 08/01/2033............. 533,000 450,054
Springleaf Finance Corp.
Company Guar. Notes
6.88% due 03/15/2025............. 425,000 468,297
Synchrony Financial
Senior Notes
2.85% due 07/25/2022............. 51,000 51,429
Synchrony Financial
Senior Notes
4.25% due 08/15/2024............. 280,000 295,143
Synchrony Financial
Senior Notes
4.50% due 07/23/2025............. 74,000 78,972
----------
1,938,830
----------
Finance-Credit Card -- 0.2%
American Express Co.
Senior Notes
3.40% due 02/22/2024............. 93,000 97,263
American Express Co.
Senior Notes
4.20% due 11/06/2025............. 74,000 81,321
Capital One Financial Corp. FRS
Senior Notes
3.05% (3 ML+0.95%)
due 03/09/2022................... 435,000 438,340
----------
616,924
----------
Finance-Investment Banker/Broker -- 0.1%
Lehman Brothers Holdings, Inc.
Escrow Notes
6.75% due 12/28/2017+(4)......... 280,000 28
Lehman Brothers Holdings, Inc.
Escrow Notes
7.50% due 05/11/2038+(4)......... 361,000 36
LPL Holdings, Inc.
Company Guar. Notes
5.75% due 09/15/2025*............ 386,000 401,440
----------
401,504
----------
Finance-Mortgage Loan/Banker -- 0.2%
Quicken Loans, Inc.
Company Guar. Notes
5.75% due 05/01/2025*............ 650,000 670,312
----------
Food-Meat Products -- 0.0%
Smithfield Foods, Inc.
Senior Notes
2.65% due 10/03/2021*............ 87,000 86,167
Principal Value
Security Description Amount(17) (Note 2)
Food-Meat Products (continued)
Smithfield Foods, Inc.
Senior Notes
5.20% due 04/01/2029*................. $ 41,000 $ 45,121
----------
131,288
----------
Food-Misc./Diversified -- 0.5%
Conagra Brands, Inc.
Senior Notes
5.40% due 11/01/2048.................. 142,000 168,461
Conagra Brands, Inc.
Senior Notes
7.00% due 10/01/2028.................. 117,000 147,138
General Mills, Inc.
Senior Notes
4.55% due 04/17/2038.................. 53,000 60,321
General Mills, Inc.
Senior Notes
4.70% due 04/17/2048.................. 100,000 117,026
Kraft Heinz Foods Co.
Company Guar. Notes
4.63% due 10/01/2039*................. 60,000 60,311
Kraft Heinz Foods Co.
Sec. Notes
4.88% due 02/15/2025*................. 132,000 135,891
Lamb Weston Holdings, Inc.
Company Guar. Notes
4.63% due 11/01/2024*................. 420,000 442,008
Nestle Holdings, Inc.
Company Guar. Notes
3.50% due 09/24/2025*................. 152,000 163,120
Post Holdings, Inc.
Company Guar. Notes
5.50% due 03/01/2025*................. 330,000 345,675
----------
1,639,951
----------
Food-Retail -- 0.3%
Albertsons Cos. LLC/Safeway, Inc./New
Albertsons LP/Albertson's LLC
Company Guar. Notes
5.75% due 03/15/2025.................. 391,000 402,085
Albertsons Cos. LLC/Safeway, Inc./New
Albertsons LP/Albertson's LLC
Company Guar. Notes
5.88% due 02/15/2028*................. 308,000 325,999
Kroger Co.
Senior Notes
4.65% due 01/15/2048.................. 82,000 87,754
----------
815,838
----------
Gambling (Non-Hotel) -- 0.1%
Twin River Worldwide Holdings, Inc.
Senior Notes
6.75% due 06/01/2027*................. 240,000 252,000
Waterford Gaming LLC/Waterford Gaming
Financial Corp.
Escrow Notes
8.63% due 09/15/2014+*(4)............. 478,062 28,923
----------
280,923
----------
25
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Gas-Distribution -- 0.1%
NiSource, Inc.
Senior Notes
2.95% due 09/01/2029........... $130,000 $130,704
NiSource, Inc.
Senior Notes
5.65% due 02/01/2045........... 66,000 85,052
Washington Gas Light Co.
Senior Notes
3.65% due 09/15/2049........... 119,000 121,737
--------
337,493
--------
Gold Mining -- 0.0%
Newmont Goldcorp Corp.
Senior Notes
2.80% due 10/01/2029........... 96,000 94,875
--------
Hazardous Waste Disposal -- 0.1%
Clean Harbors, Inc.
Senior Notes
4.88% due 07/15/2027*.......... 261,000 272,419
--------
Hotels/Motels -- 0.1%
Wyndham Worldwide Corp.
Senior Sec. Notes
5.75% due 04/01/2027........... 271,000 292,680
--------
Independent Power Producers -- 0.2%
Clearway Energy Operating LLC
Company Guar. Notes
5.75% due 10/15/2025*.......... 395,000 415,737
NRG Yield Operating LLC
Company Guar. Notes
5.00% due 09/15/2026........... 233,000 238,243
--------
653,980
--------
Insurance Brokers -- 0.1%
Marsh & McLennan Cos., Inc.
Senior Notes
3.50% due 12/29/2020........... 61,000 61,974
Willis North America, Inc.
Company Guar. Notes
3.88% due 09/15/2049........... 81,000 79,219
Willis North America, Inc.
Company Guar. Notes
5.05% due 09/15/2048........... 77,000 89,950
--------
231,143
--------
Insurance-Life/Health -- 0.1%
Brighthouse Financial, Inc.
Senior Notes
4.70% due 06/22/2047........... 94,000 83,858
Prudential Financial, Inc.
Senior Notes
3.70% due 03/13/2051........... 172,000 178,077
Unum Group
Senior Notes
4.50% due 12/15/2049........... 117,000 112,862
--------
374,797
--------
Principal Value
Security Description Amount(17) (Note 2)
Insurance-Multi-line -- 0.0%
Assurant, Inc.
Senior Notes
3.70% due 02/22/2030...................... $ 67,000 $ 67,079
Assurant, Inc.
Senior Notes
6.75% due 02/15/2034...................... 14,000 17,207
----------
84,286
----------
Insurance-Property/Casualty -- 0.2%
ACE INA Holdings, Inc.
Company Guar. Notes
2.88% due 11/03/2022...................... 83,000 85,079
AmWINS Group, Inc.
Company Guar. Notes
7.75% due 07/01/2026*..................... 370,000 397,750
Chubb INA Holdings, Inc.
Company Guar. Notes
2.50% due 03/15/2038...................... EUR 150,000 199,829
----------
682,658
----------
Internet Connectivity Services -- 0.1%
Cogent Communications Group, Inc.
Senior Sec. Notes
5.38% due 03/01/2022*..................... 407,000 423,280
----------
Internet Content-Entertainment -- 0.4%
Netflix, Inc.
Senior Notes
4.38% due 11/15/2026...................... 561,000 568,321
Netflix, Inc.
Senior Notes
5.88% due 02/15/2025...................... 476,000 522,715
----------
1,091,036
----------
Investment Companies -- 0.1%
FS Energy & Power Fund
Senior Sec. Notes
7.50% due 08/15/2023*..................... 347,000 350,470
----------
Investment Management/Advisor Services -- 0.0%
Ameriprise Financial, Inc.
Senior Notes
3.00% due 03/22/2022...................... 109,000 111,021
----------
Machinery-Construction & Mining -- 0.3%
Caterpillar Financial Services Corp. FRS
Senior Notes
2.38% (3 ML+0.28%)
due 09/07/2021............................ 310,000 309,945
Caterpillar Financial Services Corp.
Senior Notes
2.55% due 11/29/2022...................... 82,000 83,438
Caterpillar Financial Services Corp.
Senior Notes
3.15% due 09/07/2021...................... 66,000 67,365
Caterpillar Financial Services Corp.
Senior Notes
3.45% due 05/15/2023...................... 106,000 111,182
26
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Machinery-Construction & Mining (continued)
Terex Corp.
Company Guar. Notes
5.63% due 02/01/2025*................. $350,000 $359,188
--------
931,118
--------
Machinery-Electrical -- 0.0%
ABB Finance USA, Inc.
Company Guar. Notes
3.38% due 04/03/2023.................. 139,000 144,943
--------
Machinery-Farming -- 0.2%
CNH Industrial Capital LLC
Company Guar. Notes
4.20% due 01/15/2024.................. 208,000 219,482
John Deere Capital Corp.
Senior Notes
2.80% due 07/18/2029.................. 83,000 85,222
John Deere Capital Corp.
Senior Notes
2.95% due 04/01/2022.................. 186,000 190,619
John Deere Capital Corp.
Senior Notes
3.45% due 01/10/2024.................. 113,000 119,054
John Deere Capital Corp.
Senior Notes
3.65% due 10/12/2023.................. 67,000 71,382
--------
685,759
--------
Machinery-General Industrial -- 0.1%
Roper Technologies, Inc.
Senior Notes
2.95% due 09/15/2029.................. 55,000 55,133
Roper Technologies, Inc.
Senior Notes
4.20% due 09/15/2028.................. 118,000 129,589
--------
184,722
--------
Medical Labs & Testing Services -- 0.2%
Catalent Pharma Solutions, Inc.
Company Guar. Notes
5.00% due 07/15/2027*................. 216,000 224,100
Laboratory Corp. of America Holdings
Senior Notes
3.25% due 09/01/2024.................. 240,000 248,592
Laboratory Corp. of America Holdings
Senior Notes
4.70% due 02/01/2045.................. 61,000 67,921
--------
540,613
--------
Medical Products -- 0.1%
Hologic, Inc.
Company Guar. Notes
4.38% due 10/15/2025*................. 325,000 333,125
--------
Medical-Biomedical/Gene -- 0.1%
Amgen, Inc.
Senior Notes
4.66% due 06/15/2051.................. 58,000 67,908
Celgene Corp.
Senior Notes
3.63% due 05/15/2024.................. 119,000 125,663
Principal Value
Security Description Amount(17) (Note 2)
Medical-Biomedical/Gene (continued)
Celgene Corp.
Senior Notes
4.55% due 02/20/2048........... $ 10,000 $ 11,933
Celgene Corp.
Senior Notes
4.63% due 05/15/2044........... 68,000 80,755
----------
286,259
----------
Medical-Drugs -- 0.1%
Bristol-Myers Squibb Co.
Senior Notes
4.13% due 06/15/2039*.......... 77,000 87,258
GlaxoSmithKline Capital, Inc.
Company Guar. Notes
3.38% due 05/15/2023........... 82,000 85,615
Johnson & Johnson
Senior Notes
5.50% due 11/06/2024........... GBP 100,000 150,557
----------
323,430
----------
Medical-Generic Drugs -- 0.0%
Mylan, Inc.
Company Guar. Notes
4.55% due 04/15/2028........... 105,000 111,445
----------
Medical-HMO -- 0.4%
Humana, Inc.
Senior Notes
3.95% due 08/15/2049........... 73,000 73,169
MPH Acquisition Holdings LLC
Company Guar. Notes
7.13% due 06/01/2024*.......... 500,000 460,625
UnitedHealth Group, Inc.
Senior Bonds
2.38% due 10/15/2022........... 334,000 337,451
UnitedHealth Group, Inc.
Senior Notes
3.50% due 08/15/2039........... 87,000 90,566
UnitedHealth Group, Inc.
Senior Notes
3.75% due 07/15/2025........... 119,000 127,952
----------
1,089,763
----------
Medical-Hospitals -- 0.5%
HCA, Inc.
Senior Sec. Notes
5.25% due 06/15/2026........... 84,000 93,535
HCA, Inc.
Senior Sec. Notes
5.25% due 06/15/2049........... 63,000 68,723
HCA, Inc.
Company Guar. Notes
5.38% due 02/01/2025........... 1,175,000 1,283,688
----------
1,445,946
----------
Medical-Wholesale Drug Distribution -- 0.1%
Allergan Sales LLC
Company Guar. Notes
4.88% due 02/15/2021*.......... 75,000 77,088
27
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Medical-Wholesale Drug Distribution (continued)
Cardinal Health, Inc.
Senior Notes
4.60% due 03/15/2043.................. $139,000 $136,316
--------
213,404
--------
Metal-Copper -- 0.2%
Freeport-McMoRan Copper & Gold, Inc.
Company Guar. Notes
3.88% due 03/15/2023.................. 525,000 528,937
--------
Metal-Diversified -- 0.1%
Glencore Funding LLC
Company Guar. Notes
4.13% due 03/12/2024*................. 148,000 155,245
--------
Metal-Iron -- 0.2%
Cleveland-Cliffs, Inc.
Company Guar. Notes
5.75% due 03/01/2025.................. 560,000 550,200
--------
Multimedia -- 0.3%
E.W. Scripps Co.
Company Guar. Notes
5.13% due 05/15/2025*................. 668,000 669,670
Viacom, Inc.
Senior Notes
4.38% due 03/15/2043.................. 149,000 153,674
--------
823,344
--------
Networking Products -- 0.0%
Cisco Systems, Inc.
Senior Notes
2.20% due 02/28/2021.................. 102,000 102,528
--------
Non-Hazardous Waste Disposal -- 0.0%
Waste Management, Inc.
Company Guar. Notes
4.15% due 07/15/2049.................. 51,000 59,432
--------
Office Supplies & Forms -- 0.0%
Avery Dennison Corp.
Senior Notes
4.88% due 12/06/2028.................. 41,000 46,701
--------
Oil Companies-Exploration & Production -- 1.4%
Apache Corp.
Senior Notes
4.75% due 04/15/2043.................. 179,000 171,499
Brazos Valley Longhorn LLC/Brazos
Valley Longhorn Finance Corp.
Company Guar. Notes
6.88% due 02/01/2025.................. 415,000 356,900
Callon Petroleum Co.
Company Guar. Notes
6.38% due 07/01/2026.................. 400,000 390,340
Centennial Resource Production LLC
Company Guar. Notes
6.88% due 04/01/2027*................. 375,000 374,063
Chaparral Energy, Inc.
Senior Notes
8.75% due 07/15/2023*................. 704,000 274,560
Principal Value
Security Description Amount(17) (Note 2)
Oil Companies-Exploration & Production (continued)
Cimarex Energy Co.
Senior Notes
4.38% due 03/15/2029..................... $210,000 $ 221,005
Concho Resources, Inc.
Company Guar. Notes
4.85% due 08/15/2048..................... 53,000 60,730
Devon Energy Corp.
Senior Notes
5.00% due 06/15/2045..................... 82,000 94,819
Extraction Oil & Gas, Inc.
Company Guar. Notes
5.63% due 02/01/2026*.................... 550,000 336,875
Hilcorp Energy I LP/Hilcorp Finance Co.
Senior Notes
5.00% due 12/01/2024*.................... 697,000 651,695
Lonestar Resources America, Inc.
Company Guar. Notes
11.25% due 01/01/2023*................... 521,000 425,918
Marathon Oil Corp.
Senior Notes
6.60% due 10/01/2037..................... 61,000 77,297
Marathon Oil Corp.
Senior Notes
6.80% due 03/15/2032..................... 85,000 106,356
Noble Energy, Inc.
Senior Notes
4.20% due 10/15/2049..................... 151,000 148,578
Noble Energy, Inc.
Senior Notes
4.95% due 08/15/2047..................... 120,000 130,976
Occidental Petroleum Corp.
Senior Notes
6.45% due 09/15/2036..................... 123,000 152,162
Occidental Petroleum Corp.
Senior Notes
7.50% due 05/01/2031..................... 51,000 66,794
Southwestern Energy Co.
Company Guar. Notes
7.50% due 04/01/2026..................... 226,000 197,185
----------
4,237,752
----------
Oil Companies-Integrated -- 0.0%
Chevron Corp.
Senior Notes
2.90% due 03/03/2024..................... 132,000 136,960
----------
Oil Field Machinery & Equipment -- 0.1%
Hi-Crush Partners LP
Company Guar. Notes
9.50% due 08/01/2026*.................... 575,000 333,500
----------
Oil-Field Services -- 0.4%
Calfrac Holdings LP
Company Guar. Notes
8.50% due 06/15/2026*.................... 455,000 202,475
Nine Energy Service, Inc.
Senior Notes
8.75% due 11/01/2023*.................... 240,000 194,400
28
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Oil-Field Services (continued)
Pioneer Energy Services Corp.
Company Guar. Notes
6.13% due 03/15/2022...................... $479,000 $ 167,650
Schlumberger Holdings Corp.
Senior Notes
4.00% due 12/21/2025*..................... 112,000 119,562
SESI LLC
Company Guar. Notes
7.75% due 09/15/2024...................... 475,000 268,375
USA Compression Partners LP/USA
Compression Finance Corp.
Company Guar. Notes
6.88% due 04/01/2026...................... 260,000 269,750
----------
1,222,212
----------
Paper & Related Products -- 0.2%
Domtar Corp.
Company Guar. Notes
6.75% due 02/15/2044...................... 261,000 292,493
Georgia-Pacific LLC
Senior Notes
3.73% due 07/15/2023*..................... 119,000 124,996
Georgia-Pacific LLC
Company Guar. Notes
5.40% due 11/01/2020*..................... 123,000 127,233
----------
544,722
----------
Petrochemicals -- 0.0%
Chevron Phillips Chemical Co. LLC/Chevron
Phillips Chemical Co. LP
Senior Notes
3.30% due 05/01/2023*..................... 71,000 72,903
----------
Pharmacy Services -- 0.2%
Cigna Corp.
Company Guar. Notes
4.80% due 08/15/2038...................... 110,000 123,282
CVS Health Corp.
Senior Notes
4.78% due 03/25/2038...................... 500,000 547,592
----------
670,874
----------
Pipelines -- 1.4%
Antero Midstream Partners LP/Antero
Midstream Finance Corp.
Company Guar. Notes
5.75% due 03/01/2027*..................... 198,000 165,083
Cheniere Corpus Christi Holdings LLC
Senior Sec. Notes
7.00% due 06/30/2024...................... 490,000 563,157
Cheniere Energy Partners LP
Senior Notes
4.50% due 10/01/2029*..................... 342,000 350,122
Cheniere Energy Partners LP
Senior Sec. Notes
5.25% due 10/01/2025...................... 308,000 319,550
Enable Midstream Partners LP
Senior Notes
4.15% due 09/15/2029...................... 78,000 75,300
Principal Value
Security Description Amount(17) (Note 2)
Pipelines (continued)
Enable Midstream Partners LP
Senior Notes
4.95% due 05/15/2028.......................... $ 83,000 $ 86,202
Energy Transfer Operating LP
Company Guar. Notes
4.50% due 04/15/2024.......................... 88,000 93,803
Energy Transfer Operating LP
Company Guar. Notes
4.90% due 03/15/2035.......................... 189,000 195,228
Energy Transfer Operating LP
Company Guar. Notes
5.25% due 04/15/2029.......................... 57,000 64,337
EnLink Midstream LLC
Company Guar. Notes
5.38% due 06/01/2029.......................... 80,000 76,400
EnLink Midstream Partners LP
Senior Notes
5.05% due 04/01/2045.......................... 22,000 17,600
Genesis Energy LP/Genesis Energy Finance
Corp.
Company Guar. Notes
5.63% due 06/15/2024.......................... 274,000 262,355
Genesis Energy LP/Genesis Energy Finance
Corp.
Company Guar. Notes
6.00% due 05/15/2023.......................... 330,000 331,237
Holly Energy Partners LP/Holly Energy Finance
Corp.
Company Guar. Notes
6.00% due 08/01/2024*......................... 295,000 307,906
Kinder Morgan, Inc.
Company Guar. Notes
1.50% due 03/16/2022.......................... EUR 275,000 310,887
MPLX LP
Senior Notes
5.50% due 02/15/2049.......................... 63,000 73,062
SemGroup Corp./Rose Rock Finance Corp.
Company Guar. Notes
5.63% due 07/15/2022.......................... 195,000 197,927
SemGroup Corp./Rose Rock Finance Corp.
Company Guar. Notes
5.63% due 11/15/2023.......................... 317,000 324,132
Summit Midstream Holdings LLC/Summit
Midstream Finance Corp.
Company Guar. Notes
5.50% due 08/15/2022.......................... 275,000 250,938
Western Midstream Operating LP
Senior Notes
5.50% due 08/15/2048.......................... 65,000 57,851
Williams Cos., Inc.
Senior Notes
5.75% due 06/24/2044.......................... 130,000 150,020
----------
4,273,097
----------
Platinum -- 0.1%
Stillwater Mining Co.
Company Guar. Notes
7.13% due 06/27/2025.......................... 200,000 201,500
----------
29
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Poultry -- 0.1%
Pilgrim's Pride Corp.
Company Guar. Notes
5.88% due 09/30/2027*............................ $360,000 $386,640
--------
Radio -- 0.3%
Sirius XM Radio, Inc.
Company Guar. Notes
4.63% due 07/15/2024*............................ 865,000 896,858
--------
Real Estate Investment Trusts -- 1.9%
American Tower Corp.
Senior Notes
4.00% due 06/01/2025............................. 96,000 102,608
AvalonBay Communities, Inc.
Senior Notes
3.30% due 06/01/2029............................. 74,000 78,103
Camden Property Trust
Senior Notes
3.35% due 11/01/2049............................. 28,000 28,205
Columbia Property Trust Operating Partnership LP
Company Guar. Notes
4.15% due 04/01/2025............................. 130,000 135,387
Crown Castle International Corp.
Senior Notes
5.20% due 02/15/2049............................. 105,000 129,708
CTR Partnership LP/CareTrust Capital Corp.
Company Guar. Notes
5.25% due 06/01/2025............................. 426,000 439,845
ESH Hospitality, Inc.
Company Guar. Notes
4.63% due 10/01/2027*............................ 340,000 341,275
ESH Hospitality, Inc.
Company Guar. Notes
5.25% due 05/01/2025*............................ 442,000 457,028
GLP Capital LP/GLP Financing II, Inc.
Company Guar. Notes
5.38% due 04/15/2026............................. 265,000 291,463
HAT Holdings I LLC/HAT Holdings II LLC
Company Guar. Notes
5.25% due 07/15/2024*............................ 522,000 548,752
HCP, Inc.
Senior Notes
3.50% due 07/15/2029............................. 56,000 58,185
Healthcare Trust of America Holdings LP
Company Guar. Notes
3.10% due 02/15/2030............................. 111,000 110,652
Iron Mountain, Inc.
Company Guar. Notes
4.88% due 09/15/2027*............................ 435,000 444,866
iStar, Inc.
Senior Notes
5.25% due 09/15/2022............................. 427,000 436,074
MGM Growth Properties Operating Partnership
LP/MGP Finance Co-Issuer, Inc.
Company Guar. Notes
5.75% due 02/01/2027*............................ 350,000 392,980
MPT Operating Partnership LP/MPT Finance Corp.
Company Guar. Notes
5.00% due 10/15/2027............................. 506,000 530,035
Principal Value
Security Description Amount(17) (Note 2)
Real Estate Investment Trusts (continued)
Sabra Health Care LP
Company Guar. Notes
5.13% due 08/15/2026...................... $797,000 $ 851,947
Sabra Health Care LP/Sabra Capital Corp.
Company Guar. Notes
3.90% due 10/15/2029...................... 116,000 114,260
Sabra Health Care LP/Sabra Capital Corp.
Company Guar. Notes
4.80% due 06/01/2024...................... 69,000 72,809
Simon Property Group LP
Senior Notes
2.45% due 09/13/2029...................... 78,000 76,312
Simon Property Group LP
Senior Notes
4.13% due 12/01/2021...................... 125,000 129,881
Starwood Property Trust, Inc.
Senior Notes
4.75% due 03/15/2025...................... 310,000 320,633
----------
6,091,008
----------
Real Estate Operations & Development -- 0.2%
Kennedy-Wilson, Inc.
Company Guar. Notes
5.88% due 04/01/2024...................... 700,000 718,158
----------
Rental Auto/Equipment -- 0.4%
Ahern Rentals, Inc.
Sec. Notes
7.38% due 05/15/2023*..................... 490,000 417,108
Capitol Investment Merger Sub 2 LLC
Sec. Notes
10.00% due 08/01/2024*.................... 455,000 472,062
Herc Holdings, Inc.
Company Guar. Notes
5.50% due 07/15/2027*..................... 316,000 328,640
----------
1,217,810
----------
Retail-Appliances -- 0.1%
Conn's, Inc.
Company Guar. Notes
7.25% due 07/15/2022...................... 437,000 441,370
----------
Retail-Discount -- 0.1%
Walmart, Inc.
Senior Notes
3.05% due 07/08/2026...................... 150,000 158,914
----------
Retail-Drug Store -- 0.0%
Walgreens Boots Alliance, Inc.
Senior Notes
4.80% due 11/18/2044...................... 58,000 61,252
----------
Retail-Mail Order -- 0.1%
QVC, Inc.
Senior Sec. Notes
4.85% due 04/01/2024...................... 227,000 239,580
----------
Retail-Petroleum Products -- 0.1%
Murphy Oil USA, Inc.
Company Guar. Notes
4.75% due 09/15/2029...................... 320,000 327,200
----------
30
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Retail-Regional Department Stores -- 0.0%
Kohl's Corp.
Senior Notes
5.55% due 07/17/2045....................... $133,000 $ 136,787
----------
Retail-Restaurants -- 0.4%
Brinker International, Inc.
Company Guar. Notes
5.00% due 10/01/2024*...................... 420,000 441,000
Darden Restaurants, Inc.
Senior Notes
4.55% due 02/15/2048....................... 187,000 197,486
McDonald's Corp.
Senior Notes
3.63% due 09/01/2049....................... 113,000 114,221
McDonald's Corp.
Senior Notes
4.45% due 03/01/2047....................... 68,000 78,080
McDonald's Corp.
Senior Notes
4.45% due 09/01/2048....................... 66,000 76,294
Yum! Brands, Inc.
Senior Notes
4.75% due 01/15/2030*...................... 320,000 330,451
----------
1,237,532
----------
Rubber/Plastic Products -- 0.0%
Venture Holdings Co. LLC
Company Guar. Notes
11.00% due 06/01/2007+(4)(5)(6)............ 100,000 0
----------
Satellite Telecom -- 0.3%
Hughes Satellite Systems Corp.
Company Guar. Notes
6.63% due 08/01/2026....................... 773,000 839,061
----------
Savings & Loans/Thrifts -- 0.2%
First Niagara Financial Group, Inc.
Sub. Notes
7.25% due 12/15/2021....................... 434,000 478,206
New York Community Bancorp, Inc.
Sub. Notes
5.90% due 11/06/2028....................... 193,000 202,073
----------
680,279
----------
Security Services -- 0.2%
Prime Security Services Borrower LLC/Prime
Finance, Inc.
Senior Sec. Notes
5.25% due 04/15/2024*...................... 513,000 526,620
Prime Security Services Borrower LLC/Prime
Finance, Inc.
Senior Sec. Notes
5.75% due 04/15/2026*...................... 230,000 239,499
----------
766,119
----------
Semiconductor Components-Integrated Circuits -- 0.0%
QUALCOMM, Inc.
Senior Notes
4.30% due 05/20/2047....................... 48,000 53,658
----------
Principal Value
Security Description Amount(17) (Note 2)
Steel Pipe & Tube -- 0.0%
Advanced Drainage Systems, Inc.
Senior Sec. Notes
5.00% due 09/30/2027*............ $ 65,000 $ 65,893
----------
Steel-Producers -- 0.2%
Commercial Metals Co.
Senior Notes
5.75% due 04/15/2026............. 455,000 466,375
----------
Telephone-Integrated -- 1.1%
AT&T, Inc.
Senior Notes
3.15% due 09/04/2036............. EUR 150,000 198,445
AT&T, Inc.
Senior Notes
4.50% due 05/15/2035............. 530,000 581,511
AT&T, Inc.
Senior Notes
4.85% due 07/15/2045............. 41,000 45,732
AT&T, Inc.
Senior Notes
4.90% due 08/15/2037............. 68,000 77,123
CenturyLink, Inc.
Senior Notes
7.50% due 04/01/2024............. 920,000 1,028,882
Frontier Communications Corp.
Senior Notes
7.63% due 04/15/2024............. 595,000 261,800
Frontier Communications Corp.
Senior Notes
8.75% due 04/15/2022............. 630,000 280,350
Level 3 Financing, Inc.
Company Guar. Notes
4.63% due 09/15/2027*............ 395,000 398,575
Verizon Communications, Inc.
Senior Notes
2.50% due 04/08/2031............. GBP 100,000 130,583
Verizon Communications, Inc.
Senior Notes
4.27% due 01/15/2036............. 58,000 65,218
Verizon Communications, Inc.
Senior Notes
4.40% due 11/01/2034............. 113,000 129,266
Verizon Communications, Inc.
Senior Notes
5.25% due 03/16/2037............. 97,000 120,092
----------
3,317,577
----------
Television -- 0.4%
Belo Corp.
Company Guar. Notes
7.25% due 09/15/2027............. 273,000 309,855
Belo Corp.
Company Guar. Notes
7.75% due 06/01/2027............. 416,000 479,440
CBS Corp.
Company Guar. Notes
3.70% due 06/01/2028............. 145,000 151,133
31
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Television (continued)
Gray Television, Inc.
Company Guar. Notes
5.13% due 10/15/2024*................... $290,000 $ 300,512
-----------
1,240,940
-----------
Tools-Hand Held -- 0.0%
Stanley Black & Decker, Inc.
Senior Notes
3.40% due 03/01/2026.................... 84,000 88,912
-----------
Transport-Equipment & Leasing -- 0.1%
GATX Corp.
Senior Notes
4.35% due 02/15/2024.................... 165,000 176,483
-----------
Transport-Marine -- 0.1%
Kirby Corp.
Senior Notes
4.20% due 03/01/2028.................... 142,000 151,756
-----------
Transport-Rail -- 0.0%
Kansas City Southern
Company Guar. Notes
4.70% due 05/01/2048.................... 56,000 66,881
-----------
Transport-Truck -- 0.0%
JB Hunt Transport Services, Inc.
Company Guar. Notes
3.88% due 03/01/2026.................... 74,000 78,468
-----------
Trucking/Leasing -- 0.1%
Penske Truck Leasing Co. LP/PTL Finance
Corp.
Senior Notes
3.35% due 11/01/2029*................... 93,000 92,642
Penske Truck Leasing Co. LP/PTL Finance
Corp.
Senior Notes
3.40% due 11/15/2026*................... 95,000 97,094
Penske Truck Leasing Co. LP/PTL Finance
Corp.
Senior Notes
3.95% due 03/10/2025*................... 216,000 228,154
-----------
417,890
-----------
Total U.S. Corporate Bonds & Notes
(cost $97,446,980)...................... 98,436,552
-----------
FOREIGN CORPORATE BONDS & NOTES -- 11.4%
Agricultural Chemicals -- 0.2%
Consolidated Energy Finance SA
Senior Notes
6.88% due 06/15/2025*................... 605,000 606,513
-----------
Airport Development/Maintenance -- 0.2%
Heathrow Funding, Ltd.
Senior Sec. Notes
6.75% due 12/03/2028.................... GBP 100,000 165,654
Mexico City Airport Trust
Senior Sec. Notes
4.25% due 10/31/2026.................... 460,000 462,875
-----------
628,529
-----------
Principal Value
Security Description Amount(17) (Note 2)
Auto-Cars/Light Trucks -- 0.2%
FCE Bank PLC
Senior Notes
1.11% due 05/13/2020................. EUR 300,000 $ 328,802
Volkswagen International Finance NV
Company Guar. Notes
1.88% due 03/30/2027................. EUR 200,000 230,371
----------
559,173
----------
Auto/Truck Parts & Equipment-Original -- 0.1%
Delphi Jersey Holdings PLC
Company Guar. Notes
5.00% due 10/01/2025*................ 420,000 371,700
----------
Banks-Commercial -- 0.9%
Banco Bilbao Vizcaya Argentaria SA
Senior Notes
1.38% due 05/14/2025................. EUR 100,000 115,737
Banco de Credito e Inversiones SA
Senior Notes
3.50% due 10/12/2027................. 490,000 512,785
Banco do Brasil SA
Senior Notes
4.75% due 03/20/2024*................ 370,000 388,037
BPCE SA
Sub. Notes
4.63% due 07/18/2023................. EUR 300,000 379,841
Credit Suisse AG
Sub. Notes
5.75% due 09/18/2025................. EUR 330,000 378,880
Danske Bank A/S
Senior Notes
0.88% due 05/22/2023................. EUR 400,000 443,217
Danske Bank A/S
Senior Notes
3.88% due 09/12/2023*................ 200,000 207,349
Intesa Sanpaolo SpA
Sub. Notes
5.71% due 01/15/2026*................ 255,000 270,917
Westpac Banking Corp.
Sub. Notes
4.11% due 07/24/2034................. 88,000 91,870
Westpac Banking Corp.
Sub. Notes
4.42% due 07/24/2039................. 74,000 81,718
----------
2,870,351
----------
Banks-Export/Import -- 0.1%
Export-Import Bank of India
Senior Notes
3.38% due 08/05/2026................. 450,000 461,878
----------
Banks-Special Purpose -- 0.1%
Kreditanstalt fuer Wiederaufbau
Government Guar. Notes
1.63% due 03/15/2021................. 223,000 222,540
----------
Building Societies -- 0.1%
Nationwide Building Society
Senior Notes
1.50% due 03/08/2026................. EUR 100,000 113,169
32
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
FOREIGN CORPORATE BONDS & NOTES (continued)
Building Societies (continued)
Nationwide Building Society
Sub. Notes
4.13% due 10/18/2032*......................... $ 250,000 $ 249,141
----------
362,310
----------
Cable/Satellite TV -- 0.6%
Altice Financing SA
Senior Sec. Notes
7.50% due 05/15/2026*......................... 370,000 393,121
Altice Luxembourg SA
Company Guar. Notes
7.63% due 02/15/2025*......................... 465,000 484,763
Sky, Ltd.
Company Guar. Notes
2.50% due 09/15/2026.......................... EUR 350,000 439,384
UPCB Finance IV, Ltd.
Senior Sec. Notes
5.38% due 01/15/2025*......................... 444,000 456,210
----------
1,773,478
----------
Cellular Telecom -- 0.8%
America Movil SAB de CV
Senior Notes
0.75% due 06/26/2027.......................... EUR 300,000 334,334
C&W Senior Financing Designated Activity Co.
Senior Notes
6.88% due 09/15/2027*......................... 542,000 561,648
Millicom International Cellular SA
Senior Notes
6.63% due 10/15/2026*......................... 200,000 217,500
Numericable-SFR SA
Senior Sec. Notes
7.38% due 05/01/2026*......................... 800,000 857,768
Vodafone Group PLC
Senior Notes
2.88% due 11/20/2037.......................... EUR 120,000 158,828
Vodafone Group PLC
Senior Notes
4.88% due 06/19/2049.......................... 104,000 115,799
Vodafone Group PLC
Senior Notes
5.25% due 05/30/2048.......................... 102,000 118,232
----------
2,364,109
----------
Chemicals-Diversified -- 0.1%
Braskem Netherlands Finance BV
Company Guar. Notes
4.50% due 01/10/2028*......................... 209,000 209,261
Petkim Petrokimya Holding AS
Senior Notes
5.88% due 01/26/2023*......................... 270,000 265,821
----------
475,082
----------
Computers-Memory Devices -- 0.1%
Seagate HDD Cayman
Company Guar. Notes
4.75% due 01/01/2025.......................... 320,000 331,682
----------
Principal Value
Security Description Amount(17) (Note 2)
Containers-Metal/Glass -- 0.3%
Ardagh Packaging Finance PLC/Ardagh Holdings
USA, Inc.
Company Guar. Notes
5.25% due 08/15/2027*........................ $ 450,000 $455,625
Trivium Packaging Finance BV
Company Guar. Notes
8.50% due 08/15/2027*........................ 450,000 486,562
--------
942,187
--------
Containers-Paper/Plastic -- 0.1%
Intertape Polymer Group, Inc.
Company Guar. Notes
7.00% due 10/15/2026*........................ 434,000 452,445
--------
Cosmetics & Toiletries -- 0.0%
Unilever PLC
Company Guar. Notes
1.38% due 09/15/2024......................... GBP 100,000 125,509
--------
Diagnostic Equipment -- 0.1%
DH Europe Finance II SARL
Company Guar. Notes
0.45% due 03/18/2028......................... EUR 230,000 251,049
DH Europe Finance II SARL
Company Guar. Notes
1.80% due 09/18/2049......................... EUR 150,000 167,678
--------
418,727
--------
Diamonds/Precious Stones -- 0.1%
Petra Diamonds US Treasury PLC
Sec. Notes
7.25% due 05/01/2022......................... 260,000 205,400
--------
Disposable Medical Products -- 0.1%
Becton Dickinson Euro Finance SARL
Company Guar. Notes
1.21% due 06/04/2026......................... EUR 220,000 247,450
--------
Diversified Banking Institutions -- 1.3%
Banco Santander SA
Senior Notes
3.31% due 06/27/2029......................... 200,000 206,626
BNP Paribas SA
Senior Notes
3.38% due 01/23/2026......................... GBP 100,000 133,702
BNP Paribas SA
Senior Notes
4.71% due 01/10/2025*........................ 200,000 216,191
Credit Suisse Group AG
Senior Notes
1.25% due 07/17/2025......................... EUR 200,000 227,152
HSBC Holdings PLC
Senior Notes
3.00% due 07/22/2028......................... GBP 120,000 157,531
HSBC Holdings PLC
Senior Notes
3.40% due 03/08/2021......................... 208,000 211,273
Lloyds Banking Group PLC
Senior Notes
0.63% due 01/15/2024......................... EUR 250,000 273,245
33
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
FOREIGN CORPORATE BONDS & NOTES (continued)
Diversified Banking Institutions (continued)
Mitsubishi UFJ Financial Group, Inc.
Senior Notes
3.41% due 03/07/2024....................... $ 363,000 $ 377,902
Mizuho Financial Group, Inc.
Senior Notes
3.15% due 07/16/2030....................... 202,000 206,368
Mizuho Financial Group, Inc.
Senior Notes
3.92% due 09/11/2024....................... 209,000 219,958
NatWest Markets PLC
Senior Notes
3.63% due 09/29/2022*...................... 200,000 205,323
Royal Bank of Scotland Group PLC
Senior Notes
4.27% due 03/22/2025....................... 202,000 211,294
Royal Bank of Scotland Group PLC
Senior Notes
4.52% due 06/25/2024....................... 200,000 210,327
UBS AG
Sub. Notes
4.75% due 02/12/2026....................... EUR 250,000 288,439
UBS Group Funding Switzerland AG
Company Guar. Bonds
1.25% due 09/01/2026....................... EUR 225,000 261,084
UBS Group Funding Switzerland AG
Company Guar. Notes
3.49% due 05/23/2023*...................... 200,000 205,301
UniCredit SpA
Sub. Notes
5.86% due 06/19/2032*...................... 298,000 306,423
UniCredit SpA
Sub. Notes
7.30% due 04/02/2034*...................... 234,000 264,085
----------
4,182,224
----------
Diversified Financial Services -- 0.4%
Fairstone Financial, Inc.
Senior Notes
7.88% due 07/15/2024*...................... 358,000 373,886
GE Capital European Funding Unlimited Co.
Company Guar. Notes
5.38% due 01/23/2020....................... EUR 425,000 470,737
GE Capital International Funding Co. ULC
Company Guar. Notes
3.37% due 11/15/2025....................... 275,000 280,551
----------
1,125,174
----------
Diversified Manufacturing Operations -- 0.1%
Siemens Financieringsmaatschappij NV
Company Guar. Notes
2.88% due 03/10/2028....................... EUR 150,000 200,045
----------
Diversified Minerals -- 0.3%
Anglo American Capital PLC
Company Guar. Notes
3.25% due 04/03/2023....................... EUR 225,000 270,835
Principal Value
Security Description Amount(17) (Note 2)
Diversified Minerals (continued)
FMG Resources August 2006 Pty, Ltd.
Company Guar. Notes
4.50% due 09/15/2027*................... $ 600,000 $ 585,900
----------
856,735
----------
Electric-Distribution -- 0.1%
OmGrid Funding, Ltd.
Company Guar. Notes
5.20% due 05/16/2027.................... 200,000 191,022
----------
Electric-Generation -- 0.2%
Electricite de France SA
Senior Notes
6.25% due 05/30/2028.................... GBP 200,000 334,824
SPIC Luxembourg Latin America Renewable
Energy Investment Co. SARL
Company Guar. Notes
4.65% due 10/30/2023.................... 200,000 211,848
----------
546,672
----------
Electric-Integrated -- 0.4%
EDP Finance BV
Senior Notes
2.00% due 04/22/2025.................... EUR 335,000 398,774
Gas Natural Fenosa Finance BV
Company Guar. Notes
1.38% due 01/21/2025.................... EUR 200,000 232,876
Iberdrola Finanzas SA
Company Guar. Notes
1.00% due 03/07/2025.................... EUR 300,000 343,666
Perusahaan Listrik Negara PT
Senior Notes
4.88% due 07/17/2049*................... 200,000 217,224
----------
1,192,540
----------
Electronic Components-Semiconductors -- 0.0%
NXP BV/NXP Funding LLC/NXP USA, Inc.
Company Guar. Notes
4.30% due 06/18/2029*................... 132,000 141,015
----------
Finance-Commercial -- 0.1%
Unifin Financiera SAB de CV SOFOM ENR
Company Guar. Notes
7.25% due 09/27/2023.................... 200,000 206,650
----------
Finance-Leasing Companies -- 0.2%
Avolon Holdings Funding, Ltd.
Company Guar. Notes
5.13% due 10/01/2023*................... 425,000 450,925
ICBCIL Finance Co., Ltd.
Senior Notes
3.63% due 11/15/2027.................... 200,000 205,373
----------
656,298
----------
Food-Meat Products -- 0.2%
JBS USA LUX SA/JBS USA Finance, Inc.
Company Guar. Notes
5.88% due 07/15/2024*................... 557,000 573,738
----------
34
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
FOREIGN CORPORATE BONDS & NOTES (continued)
Insurance-Life/Health -- 0.1%
Athene Holding, Ltd.
Senior Notes
4.13% due 01/12/2028........................ $ 109,000 $ 112,068
Manulife Financial Corp.
Sub. Notes
4.06% due 02/24/2032........................ 65,000 67,677
----------
179,745
----------
Insurance-Property/Casualty -- 0.1%
Enstar Group, Ltd.
Senior Notes
4.95% due 06/01/2029........................ 215,000 226,987
----------
Machinery-Farming -- 0.1%
CNH Industrial Finance Europe SA
Company Guar. Notes
1.88% due 01/19/2026........................ EUR 185,000 212,975
CNH Industrial NV
Senior Notes
4.50% due 08/15/2023........................ 96,000 101,723
----------
314,698
----------
Medical Instruments -- 0.1%
Medtronic Global Holdings SCA
Company Guar. Notes
1.75% due 07/02/2049........................ EUR 135,000 154,402
Medtronic Global Holdings SCA
Company Guar. Notes
2.25% due 03/07/2039........................ EUR 125,000 162,602
----------
317,004
----------
Medical-Drugs -- 0.6%
Bausch Health Cos., Inc.
Company Guar. Notes
6.13% due 04/15/2025*....................... 990,000 1,025,887
GlaxoSmithKline Capital PLC
Company Guar. Notes
3.13% due 05/14/2021........................ 132,000 134,616
Novartis Finance SA
Company Guar. Notes
1.63% due 11/09/2026........................ EUR 350,000 424,573
Shire Acquisitions Investments Ireland DAC
Company Guar. Notes
3.20% due 09/23/2026........................ 224,000 231,123
----------
1,816,199
----------
Metal-Copper -- 0.2%
First Quantum Minerals, Ltd.
Company Guar. Notes
6.50% due 03/01/2024*....................... 331,000 315,691
First Quantum Minerals, Ltd.
Company Guar. Notes
7.25% due 04/01/2023*....................... 257,000 253,145
----------
568,836
----------
Metal-Diversified -- 0.1%
Chinalco Capital Holdings, Ltd.
Company Guar. Notes
4.25% due 04/21/2022........................ 250,000 252,411
Principal Value
Security Description Amount(17) (Note 2)
Metal-Diversified (continued)
Glencore Finance Europe, Ltd.
Company Guar. Notes
1.50% due 10/15/2026.............. EUR 125,000 $ 140,069
----------
392,480
----------
Metal-Iron -- 0.1%
Mineral Resources, Ltd.
Senior Notes
8.13% due 05/01/2027*............. 400,000 411,720
----------
Non-Ferrous Metals -- 0.1%
Codelco, Inc.
Senior Notes
3.70% due 01/30/2050*............. 247,000 245,600
----------
Oil Companies-Exploration & Production -- 0.3%
Canadian Natural Resources, Ltd.
Senior Notes
3.90% due 02/01/2025.............. 116,000 122,261
MEG Energy Corp.
Sec. Notes
6.50% due 01/15/2025*............. 462,000 471,240
Saka Energi Indonesia PT
Senior Notes
4.45% due 05/05/2024.............. 425,000 427,021
----------
1,020,522
----------
Oil Companies-Integrated -- 0.8%
BP Capital Markets PLC
Company Guar. Notes
2.27% due 07/03/2026.............. GBP 200,000 261,322
BP Capital Markets PLC
Company Guar. Notes
2.97% due 02/27/2026.............. EUR 125,000 159,738
BP Capital Markets PLC
Company Guar. Notes
3.51% due 03/17/2025.............. 314,000 333,203
Cenovus Energy, Inc.
Senior Notes
4.25% due 04/15/2027.............. 117,000 121,643
Ecopetrol SA
Senior Notes
5.88% due 05/28/2045.............. 270,000 314,890
Petro-Canada
Senior Notes
5.95% due 05/15/2035.............. 51,000 65,289
Petrobras Global Finance BV
Company Guar. Notes
6.75% due 01/27/2041.............. 280,000 320,743
Petroleos Mexicanos
Company Guar. Notes
6.63% due 06/15/2035.............. 350,000 342,037
Petroleos Mexicanos
Company Guar. Notes
6.75% due 09/21/2047.............. 300,000 287,940
Petroleos Mexicanos
Company Guar. Notes
7.69% due 01/23/2050*............. 105,000 109,463
35
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
FOREIGN CORPORATE BONDS & NOTES (continued)
Oil Companies-Integrated (continued)
Total Capital International SA
Company Guar. Notes
3.46% due 07/12/2049.................... $ 129,000 $ 135,979
----------
2,452,247
----------
Paper & Related Products -- 0.1%
Cascades, Inc.
Company Guar. Notes
5.50% due 07/15/2022*................... 67,000 67,838
Cascades, Inc.
Company Guar. Notes
5.75% due 07/15/2023*................... 384,000 388,800
----------
456,638
----------
Real Estate Operations & Development -- 0.1%
Aroundtown SA
Senior Notes
1.45% due 07/09/2028.................... EUR 200,000 222,332
----------
Retail-Petroleum Products -- 0.1%
eG Global Finance PLC
Senior Sec. Notes
6.75% due 02/07/2025*................... 433,000 422,716
----------
Satellite Telecom -- 0.3%
Intelsat Jackson Holdings SA
Company Guar. Notes
5.50% due 08/01/2023.................... 526,000 490,705
Telesat Canada/Telesat LLC
Senior Notes
6.50% due 10/15/2027*................... 187,000 190,039
Telesat Canada/Telesat LLC
Company Guar. Notes
8.88% due 11/15/2024*................... 368,000 394,312
----------
1,075,056
----------
Security Services -- 0.2%
Garda World Security Corp.
Senior Notes
8.75% due 05/15/2025*................... 535,000 549,499
----------
Special Purpose Entity -- 0.0%
Hellas Telecommunications Luxembourg II
SCA
Sub. Notes
8.46% due 01/15/2015*+(4)(5)(6)......... 1,330,000 0
----------
SupraNational Banks -- 0.0%
International Bank for Reconstruction &
Development
Senior Notes
3.13% due 11/20/2025.................... 114,000 123,589
----------
Telephone-Integrated -- 0.2%
Orange SA
Senior Notes
1.88% due 09/12/2030.................... EUR 200,000 247,508
Telecom Italia Capital SA
Company Guar. Notes
7.72% due 06/04/2038.................... 74,000 89,540
Principal Value
Security Description Amount(17) (Note 2)
Telephone-Integrated (continued)
Telefonica Emisiones SA
Company Guar. Notes
5.45% due 10/08/2029............... GBP 100,000 $ 159,972
Telefonica Emisiones SAU
Company Guar. Notes
4.67% due 03/06/2038............... 260,000 285,200
-----------
782,220
-----------
Transport-Marine -- 0.1%
PT Pelabuhan Indonesia II
Senior Notes
4.25% due 05/05/2025*.............. 300,000 316,875
-----------
Transport-Rail -- 0.2%
Canadian National Railway Co.
Senior Notes
2.85% due 12/15/2021............... 56,000 56,774
Canadian Pacific Railway Co.
Senior Notes
6.13% due 09/15/2115............... 110,000 164,433
Kazakhstan Temir Zholy Finance BV
Company Guar. Notes
6.95% due 07/10/2042............... 300,000 401,583
-----------
622,790
-----------
Total Foreign Corporate Bonds & Notes
(cost $36,495,782)................. 35,808,929
-----------
FOREIGN GOVERNMENT OBLIGATIONS -- 8.3%
Sovereign -- 8.3%
Arab Republic of Egypt
Senior Notes
7.60% due 03/01/2029............... 750,000 793,620
Arab Republic of Egypt
Senior Notes
8.50% due 01/31/2047............... 500,000 528,852
Dominican Republic
Senior Bonds
6.85% due 01/27/2045............... 650,000 723,937
Emirate of Abu Dhabi
2.50% due 09/30/2029*.............. 250,000 248,245
Emirate of Abu Dhabi
Senior Notes
3.13% due 10/11/2027............... 750,000 787,494
Federal Republic of Nigeria
Senior Notes
6.50% due 11/28/2027............... 250,000 252,670
Federal Republic of Nigeria
Senior Notes
7.70% due 02/23/2038............... 260,000 264,404
Federative Republic of Brazil
Senior Notes
5.63% due 01/07/2041............... 400,000 447,504
Gabones Republic
Senior Notes
6.95% due 06/16/2025............... 270,000 268,450
Government of Mongolia
Senior Notes
5.13% due 12/05/2022............... 320,000 319,213
36
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
FOREIGN GOVERNMENT OBLIGATIONS (continued)
Sovereign (continued)
Government of Mongolia
Senior Notes
5.63% due 05/01/2023.......... $300,000 $302,998
Government of Ukraine
Senior Notes
7.75% due 09/01/2023.......... 300,000 315,187
Government of Ukraine
Senior Notes
7.75% due 09/01/2024.......... 250,000 263,750
Government of Ukraine
Senior Notes
9.75% due 11/01/2028.......... 600,000 687,024
Kingdom of Bahrain
Senior Notes
7.00% due 10/12/2028.......... 420,000 470,901
Kingdom of Bahrain
Senior Notes
7.50% due 09/20/2047.......... 300,000 340,800
Kingdom of Saudi Arabia
Senior Notes
5.00% due 04/17/2049.......... 280,000 336,778
Oriental Republic of Uruguay
Senior Notes
5.10% due 06/18/2050.......... 300,000 357,003
Republic of Angola
Senior Notes
9.38% due 05/08/2048.......... 200,000 210,789
Republic of Argentina
Senior Notes
8.28% due 12/31/2033.......... 280,408 137,400
Republic of Colombia
Senior Notes
3.88% due 04/25/2027.......... 250,000 265,128
Republic of Colombia
Senior Notes
5.00% due 06/15/2045.......... 230,000 269,100
Republic of Colombia
Senior Notes
10.38% due 01/28/2033......... 320,000 512,000
Republic of Ecuador
Senior Notes
7.88% due 01/23/2028.......... 700,000 663,257
Republic of Ecuador
Senior Notes
10.75% due 03/28/2022......... 430,000 468,163
Republic of El Salvador
Senior Notes
6.38% due 01/18/2027.......... 500,000 518,755
Republic of Ghana
Senior Notes
8.13% due 03/26/2032.......... 260,000 260,882
Republic of Ghana
Senior Notes
8.95% due 03/26/2051.......... 200,000 200,247
Principal Value
Security Description Amount(17) (Note 2)
Sovereign (continued)
Republic of Ghana
Government Guar. Notes
10.75% due 10/14/2030.... $ 270,000 $342,268
Republic of Guatemala
Senior Notes
4.88% due 02/13/2028..... 510,000 538,693
Republic of Guatemala
Senior Notes
4.90% due 06/01/2030*.... 200,000 211,320
Republic of Honduras
Senior Notes
6.25% due 01/19/2027..... 610,000 659,569
Republic of Hungary
Senior Notes
7.63% due 03/29/2041..... 220,000 365,222
Republic of Indonesia
Senior Notes
3.70% due 01/08/2022..... 300,000 308,151
Republic of Indonesia
Senior Notes
4.35% due 01/08/2027..... 200,000 216,920
Republic of Italy
Bonds
1.75% due 07/01/2024..... EUR 275,000 321,437
Republic of Italy
Bonds
3.00% due 08/01/2029..... EUR 110,000 144,499
Republic of Italy
Bonds
4.75% due 09/01/2044*.... EUR 130,000 225,394
Republic of Ivory Coast
Senior Notes
5.75% due 12/31/2032..... 756,800 742,292
Republic of Ivory Coast
Senior Notes
6.13% due 06/15/2033*.... 300,000 288,779
Republic of Kazakhstan
Senior Notes
6.50% due 07/21/2045..... 250,000 363,245
Republic of Kenya
Senior Notes
6.88% due 06/24/2024..... 300,000 316,322
Republic of Kenya
Senior Notes
7.00% due 05/22/2027..... 250,000 259,375
Republic of Kenya
Senior Notes
8.25% due 02/28/2048..... 260,000 265,310
Republic of Lebanon
Senior Notes
6.65% due 02/26/2030..... 300,000 194,262
Republic of Lebanon
Senior Notes
6.85% due 03/23/2027..... 370,000 239,116
Republic of Lebanon
Senior Notes
8.25% due 04/12/2021..... 310,000 263,500
37
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
FOREIGN GOVERNMENT OBLIGATIONS (continued)
Sovereign (continued)
Republic of Panama
Senior Notes
3.87% due 07/23/2060.......... $ 300,000 $324,302
Republic of Panama
Senior Notes
4.50% due 05/15/2047.......... 300,000 356,253
Republic of Panama
Senior Notes
6.70% due 01/26/2036.......... 270,000 384,078
Republic of Peru
Senior Notes
5.63% due 11/18/2050.......... 175,000 256,377
Republic of South Africa
Senior Bonds
4.88% due 04/14/2026.......... 400,000 412,968
Republic of South Africa
Senior Notes
5.75% due 09/30/2049.......... 530,000 527,304
Republic of Sri Lanka
Senior Notes
7.55% due 03/28/2030*......... 850,000 838,024
Republic of the Philippines
Senior Notes
7.75% due 01/14/2031.......... 360,000 541,015
Republic of Turkey
Senior Notes
6.35% due 08/10/2024.......... 600,000 610,680
Republic of Turkey
Senior Notes
6.63% due 02/17/2045.......... 200,000 191,399
Russian Federation
Senior Notes
4.38% due 03/21/2029*......... 600,000 641,768
Russian Federation
Senior Notes
5.25% due 06/23/2047.......... 200,000 237,483
State of Kuwait
Senior Notes
2.75% due 03/20/2022.......... 670,000 678,375
State of Qatar
Senior Notes
4.50% due 04/23/2028.......... 570,000 649,459
State of Qatar
Senior Notes
5.10% due 04/23/2048.......... 400,000 511,000
United Kingdom Gilt Treasury
Bonds
4.50% due 09/07/2034.......... GBP 100,000 188,763
United Mexican States
Senior Notes
4.60% due 02/10/2048.......... 350,000 374,066
United Mexican States
Senior Bonds
4.75% due 03/08/2044.......... 210,000 227,325
Principal Value
Security Description Amount(17) (Note 2)
Sovereign (continued)
United Mexican States
Senior Notes
5.55% due 01/21/2045.................... $ 600,000 $ 724,200
-----------
Total Foreign Government Obligations
(cost $25,985,832)...................... 26,155,064
-----------
U.S. GOVERNMENT AGENCIES -- 27.9%
Federal Home Loan Mtg. Corp. -- 6.4%
2.50% due 01/01/2028.................... 173,667 176,017
2.50% due 04/01/2028.................... 54,173 54,906
2.50% due 03/01/2031.................... 96,674 97,658
2.50% due 11/01/2032.................... 703,475 714,339
3.00% due 07/01/2045.................... 1,899,303 1,946,408
3.00% due 10/01/2045.................... 654,806 671,023
3.00% due 11/01/2046.................... 2,698,387 2,770,472
3.00% due 08/01/2049.................... 1,488,688 1,511,384
3.50% due 03/01/2042.................... 253,572 266,506
3.50% due 04/01/2042.................... 276,416 290,262
3.50% due 09/01/2043.................... 210,788 219,839
3.50% due 07/01/2045.................... 2,507,491 2,615,086
3.50% due 11/01/2047.................... 1,408,956 1,454,632
3.50% due 03/01/2048.................... 3,469,633 3,632,803
3.50% due 08/01/2049.................... 1,235,725 1,268,894
4.00% due 01/01/2046.................... 278,186 294,610
4.50% due 02/01/2020.................... 153 157
4.50% due 08/01/2020.................... 1,488 1,533
4.50% due 03/01/2039.................... 1,173,593 1,276,456
4.50% due 12/01/2039.................... 4,941 5,334
5.00% due 02/01/2034.................... 15,985 17,662
5.00% due 05/01/2034.................... 24,217 26,724
5.00% due 11/01/2043.................... 167,870 185,447
5.50% due 05/01/2037.................... 38,715 43,627
6.00% due 03/01/2040.................... 30,678 35,327
6.50% due 02/01/2035.................... 6,295 7,025
Federal Home Loan Mtg. Corp. FRS
4.02% (6 ML+1.49%)
due 02/01/2037.......................... 7,666 7,923
4.80% (12 ML+1.88%)
due 11/01/2037.......................... 67,589 71,523
Federal Home Loan Mtg. Corp. REMIC FRS
Series 3572, Class JS
4.77% (6.80%-1 ML)
due 09/15/2039(3)(7)(8)................. 278,965 38,479
Federal Home Loan Mtg. Corp. REMIC
Series 4740, Class BA
3.00% due 09/15/2045(3)................. 235,548 242,219
-----------
19,944,275
-----------
Federal National Mtg. Assoc. -- 20.2%
2.50% due 12/01/2026.................... 365,299 368,908
2.50% due 08/01/2031.................... 1,579,045 1,594,295
2.50% due 02/01/2032.................... 648,939 656,522
3.00% due 10/01/2027.................... 147,296 151,096
3.00% due 03/01/2030.................... 971,925 1,001,673
3.00% due 10/01/2030.................... 155,157 159,245
3.00% due 02/01/2033.................... 1,557,562 1,595,894
3.00% due 12/01/2042.................... 103,722 106,883
3.00% due 08/01/2046.................... 3,625,178 3,719,983
38
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
U.S. GOVERNMENT AGENCIES (continued)
Federal National Mtg. Assoc. (continued)
3.00% due 04/01/2047............. $1,821,490 $1,865,348
3.00% due 09/01/2048............. 2,043,481 2,092,888
3.50% due 08/01/2026............. 60,210 62,248
3.50% due 08/01/2027............. 49,224 50,903
3.50% due 10/01/2028............. 25,558 26,702
3.50% due 03/01/2033............. 1,530,169 1,582,764
3.50% due 08/01/2033............. 795,574 822,333
3.50% due 02/01/2043............. 104,158 110,374
3.50% due 10/01/2045............. 229,730 241,593
3.50% due 11/01/2045............. 181,118 188,938
3.50% due 03/01/2046............. 2,183,722 2,270,645
3.50% due 07/01/2046............. 129,809 135,836
3.50% due 12/01/2047............. 7,447,598 7,753,244
3.50% due 04/01/2048............. 4,001,140 4,146,185
3.50% due 05/01/2049............. 1,668,723 1,713,474
4.00% due 11/01/2025............. 86,360 89,949
4.00% due 03/01/2039............. 1,497,043 1,565,863
4.00% due 10/01/2043............. 268,726 287,729
4.00% due 02/01/2045............. 1,368,568 1,461,223
4.00% due 05/01/2047............. 540,210 566,396
4.00% due 07/01/2047............. 2,367,742 2,473,261
4.00% due 08/01/2047............. 2,492,645 2,610,987
4.00% due 06/01/2048............. 889,353 938,263
4.00% due 07/01/2048............. 1,368,082 1,420,406
4.00% due 09/01/2048............. 913,606 955,777
4.00% due 10/01/2048............. 4,827,146 5,022,699
4.00% due 11/01/2048............. 835,235 868,184
4.00% due 01/01/2049............. 1,861,645 1,938,407
4.00% due 03/01/2049............. 1,273,856 1,320,144
4.50% due 11/01/2022............. 8,600 8,864
4.50% due 06/01/2023............. 8,194 8,528
4.50% due 08/01/2045............. 1,459,613 1,603,717
4.50% due 06/01/2048............. 281,086 296,746
4.50% due 10/01/2048............. 77,905 81,992
4.50% due 11/01/2048............. 1,635,069 1,725,255
4.50% due 12/01/2048............. 2,291,746 2,412,332
4.50% due 03/01/2049............. 2,009,323 2,123,998
5.00% due 01/01/2023............. 3,757 3,883
5.00% due 03/01/2034............. 16,179 17,857
5.00% due 05/01/2035............. 9,118 10,063
5.00% due 05/01/2040............. 60,966 67,304
5.50% due 06/01/2038............. 19,489 21,981
6.00% due 02/01/2032............. 4,298 4,751
6.00% due 05/01/2034............. 1,223 1,406
6.00% due 10/01/2034............. 17,154 18,986
7.50% due 01/01/2030............. 938 951
8.00% due 11/01/2028............. 2,149 2,340
Federal National Mtg. Assoc. FRS
4.02% (6 ML+1.54%)
due 09/01/2035................... 50,903 52,666
4.42% (12 ML+1.57%)
due 05/01/2037................... 13,085 13,677
4.55% (12 ML+1.82%)
due 10/01/2040................... 14,214 14,949
4.55% (12 ML+1.66%)
due 07/01/2039................... 43,101 45,146
Principal Value
Security Description Amount(17) (Note 2)
Federal National Mtg. Assoc. (continued)
4.58% (1 Yr USTYCR+2.21%)
due 10/01/2035........................ $ 47,386 $ 50,017
4.67% (12 ML+1.83%)
due 10/01/2040........................ 25,175 26,346
4.69% (12 ML+1.91%)
due 08/01/2035........................ 42,062 44,424
4.69% (1 Yr USTYCR+2.26%)
due 11/01/2036........................ 23,320 24,655
4.71% (12 ML+1.76%)
due 05/01/2040........................ 52,749 55,575
Federal National Mtg. Assoc. REMIC
Series 2018-27, Class EA
3.00% due 05/25/2048(3)............... 349,342 359,161
Series 2018-35, Class CD
3.00% due 05/25/2048(3)............... 367,763 373,982
-----------
63,408,814
-----------
Government National Mtg. Assoc. -- 1.3%
3.00% due 05/20/2046.................. 1,981,051 2,039,025
4.50% due 10/20/2045.................. 1,242,803 1,327,347
4.50% due 04/20/2047.................. 763,913 803,984
-----------
4,170,356
-----------
Total U.S. Government Agencies
(cost $85,784,599).................... 87,523,445
-----------
U.S. GOVERNMENT TREASURIES -- 2.3%
United States Treasury Bonds -- 1.0%
2.88% due 05/15/2049.................. 2,528,000 2,948,379
3.00% due 02/15/2049.................. 240,000 286,153
-----------
3,234,532
-----------
United States Treasury Notes -- 1.3%
1.63% due 08/15/2029.................. 1,251,000 1,245,234
1.75% due 07/31/2021.................. 355,000 355,499
2.50% due 05/31/2020.................. 1,000,000 1,004,023
2.50% due 01/31/2024.................. 250,000 259,678
2.88% due 10/31/2020.................. 1,000,000 1,011,250
-----------
3,875,684
-----------
Total U.S. Government Treasuries
(cost $6,893,030)..................... 7,110,216
-----------
LOANS(9)(10)(11) -- 4.7%
Applications Software -- 0.1%
Corel Corp. FRS
BTL
7.09% (2 ML+5.00%)
due 07/02/2026........................ 114,673 110,803
Project Boost Purchaser LLC FRS
BTL-B
coupon TBD
due 06/01/2026........................ 70,721 70,191
-----------
180,994
-----------
Athletic Equipment -- 0.1%
Varsity Brands Holding Co., Inc. FRS
1st Lien
5.54% (1 ML+3.50%)
due 12/15/2024........................ 145,630 139,259
-----------
39
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
LOANS(9)(10)(11) (continued)
Auction Houses/Art Dealers -- 0.0%
BidFair MergeRight, Inc. FRS
BTL-B
coupon TBD
due 01/23/2027......................... $ 97,177 $ 96,084
--------
Auto Repair Centers -- 0.1%
Mavis Tire Express Services Corp. FRS
Delayed Draw
5.29% (1 ML+3.25%)
due 03/20/2025(14)..................... 12,333 12,025
Mavis Tire Express Services Corp. FRS
Delayed Draw
5.29% (1 ML+3.25%)
due 03/20/2025......................... 3,582 3,492
Mavis Tire Express Services Corp. FRS
1st Lien
5.29% (1 ML+3.25%)
due 03/20/2025......................... 125,123 121,995
Wand NewCo 3, Inc. FRS
1st Lien
5.54% (1 ML+3.50%)
due 02/05/2026......................... 102,778 103,228
--------
240,740
--------
Broadcast Services/Program -- 0.0%
NEP Group, Inc. FRS
BTL
5.29% (1 ML+3.25%)
due 10/20/2025......................... 138,950 136,084
--------
Building & Construction-Misc. -- 0.0%
Verra Mobility Corp. FRS
1st Lien
5.79% (1 ML+3.75%)
due 02/28/2025......................... 133,800 134,246
--------
Building Products-Air & Heating -- 0.1%
API Heat Transfer ThermaSys Corp. FRS
1st Lien
8.10% (3 ML+6.00%)
due 12/31/2023......................... 159,375 143,438
--------
Building Products-Doors & Windows -- 0.0%
CHI Doors Holdings Corp. FRS
1st Lien
5.29% (1 ML+3.25%)
due 07/29/2022......................... 137,818 137,732
--------
Building-Heavy Construction -- 0.0%
USIC Holdings, Inc. FRS
BTL
coupon TBD
due 12/08/2023......................... 106,735 105,845
--------
Cable/Satellite TV -- 0.1%
CSC Holdings LLC FRS
BTL-B
4.28% (1 ML+2.25%)
due 07/17/2025......................... 124,364 124,115
Principal Value
Security Description Amount(17) (Note 2)
Cable/Satellite TV (continued)
CSC Holdings LLC FRS
BTL-B
4.53% (1 ML+2.50%)
due 01/25/2026..................... $152,070 $152,102
--------
276,217
--------
Casino Hotels -- 0.1%
Caesars Resort Collection LLC FRS
BTL-B
4.79% (1 ML+2.75%)
due 12/23/2024..................... 138,939 137,997
CityCenter Holdings LLC FRS
BTL-B
4.29% (1 ML+2.25%)
due 04/18/2024..................... 139,926 140,151
--------
278,148
--------
Casino Services -- 0.0%
Stars Group Holdings FRS
BTL
5.60% (3 ML+3.50%)
due 07/10/2025..................... 122,564 122,946
--------
Cellular Telecom -- 0.1%
Altice France SA FRS
BTL-B13
6.03% (1 ML+4.00%)
due 08/14/2026..................... 173,688 172,928
Numericable Group SA FRS
BTL-B
5.72% (1 ML+3.69%)
due 01/31/2026..................... 38,000 37,667
Sprint Communications, Inc. FRS
BTL-B
5.06% (1 ML+3.00%)
due 02/02/2024..................... 136,818 136,419
--------
347,014
--------
Chemicals-Diversified -- 0.1%
Hexion, Inc. FRS
BTL
5.82% (3 ML+3.50%)
due 07/01/2026..................... 140,647 140,295
--------
Chemicals-Specialty -- 0.1%
LTI Holdings, Inc. FRS
1st Lien
5.54% (1 ML+3.50%)
due 09/06/2025..................... 47,835 45,164
LTI Holdings, Inc. FRS
2nd Lien
8.79% (1 ML+6.75%)
due 09/06/2026..................... 51,322 45,035
Starfruit US HoldCo. LLC FRS
BTL-B
5.29% (1 ML+3.25%)
due 10/01/2025..................... 139,797 136,695
--------
226,894
--------
40
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
LOANS(9)(10)(11) (continued)
Commercial Services-Finance -- 0.1%
Financial & Risk US Holdings, Inc. FRS
BTL
5.79% (1 ML+3.75%)
due 10/01/2025.......................... $136,629 $137,355
MoneyGram International, Inc. FRS
BTL
8.04% (1 ML+6.00%)
due 06/30/2023.......................... 110,611 105,840
--------
243,195
--------
Computer Data Security -- 0.0%
McAfee LLC FRS
BTL-B1
5.79% (1 ML+3.75%)
due 09/30/2024.......................... 133,985 134,200
--------
Computer Services -- 0.0%
Tempo Acquisition LLC FRS
BTL-B
5.04% (1 ML+3.00%)
due 05/01/2024.......................... 136,949 137,326
--------
Computer Software -- 0.1%
Rackspace Hosting, Inc. FRS
1st Lien
5.29% (3 ML+3.00%)
due 11/03/2023.......................... 152,325 139,377
Vertafore, Inc. FRS
1st Lien
5.29% (1 ML+3.25%)
due 07/02/2025.......................... 69,475 67,460
Vertafore, Inc. FRS
2nd Lien
9.29% (1 ML+7.25%)
due 07/02/2026.......................... 72,934 71,566
--------
278,403
--------
Consulting Services -- 0.1%
AlixPartners LLP FRS
BTL
4.79% (1 ML+2.75%)
due 04/04/2024.......................... 137,939 137,988
Stiphout Finance LLC FRS
1st Lien
5.04% (1 ML+3.00%)
due 10/26/2022.......................... 84 81
--------
138,069
--------
Containers-Metal/Glass -- 0.0%
BWAY Corp. FRS
BTL
5.59% (3 ML+3.25%)
due 04/03/2024.......................... 139,926 136,895
--------
Containers-Paper/Plastic -- 0.0%
Charter NEX US, Inc. FRS
1st Lien
5.05% (1 ML+3.00%)
due 05/16/2024.......................... 99,239 97,977
--------
Principal Value
Security Description Amount(17) (Note 2)
Cosmetics & Toiletries -- 0.1%
Sunshine Luxembourg VII SARL FRS
BTL
coupon TBD
due 10/01/2026.......................... $ 141,275 $141,804
--------
Data Processing/Management -- 0.0%
CCC Information Services, Inc. FRS
1st Lien
4.80% (1 ML+2.75%)
due 04/29/2024.......................... 137,942 137,277
--------
Disposable Medical Products -- 0.2%
Sotera Health Holdings LLC FRS
BTL
5.04% (1 ML+3.00%)
due 05/15/2022.......................... 548,413 540,530
--------
Distribution/Wholesale -- 0.1%
Fastlane Parent Co., Inc. FRS
1st Lien
6.60% (3 ML+4.50%)
due 02/04/2026.......................... 106,732 103,530
Univar USA, Inc. FRS
BTL-B3
4.29% (1 ML+2.25%)
due 07/01/2024.......................... 139,109 139,407
--------
242,937
--------
Diversified Operations -- 0.0%
Travelport Finance Luxembourg SARL FRS
BTL
7.10% (3 ML+5.00%)
due 05/29/2026.......................... 149,796 135,097
--------
E-Commerce/Services -- 0.0%
RentPath LLC FRS
2nd Lien
11.05% (1 ML+9.00%)
due 12/17/2022.......................... 1,062,906 118,692
--------
Electric-Generation -- 0.0%
Vistra Operations Co. LLC FRS
BTL
4.04% (1 ML+2.00%)
due 08/04/2023.......................... 71,302 71,525
--------
Electronic Components-Misc. -- 0.0%
AI Ladder Luxembourg Subco SARL FRS
BTL
6.60% (3 ML+4.50%)
due 07/09/2025.......................... 135,069 123,630
--------
Electronic Components-Semiconductors -- 0.0%
Bright Bidco BV FRS
BTL-B
5.54% (1 ML+3.50%)
due 06/30/2024.......................... 58,674 27,493
Bright Bidco BV FRS
BTL-B
5.60% (3 ML+3.50%)
due 06/30/2024.......................... 121,066 56,728
--------
84,221
--------
41
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
LOANS(9)(10)(11) (continued)
Enterprise Software/Service -- 0.4%
Almonde, Inc. FRS
1st Lien
5.70% (2 ML+3.50%)
due 06/13/2024..................... $ 19,232 $ 18,686
Almonde, Inc. FRS
1st Lien
5.70% (6 ML+3.50%)
due 06/13/2024..................... 124,609 121,071
Applied Systems, Inc. FRS
1st Lien
5.10% (3 ML+3.00%)
due 09/19/2024..................... 133,975 133,759
Digicert Holdings, Inc. FRS
BTL-B
coupon TBD
due 08/31/2026..................... 105,596 105,288
Epicor Software Corp. FRS
1st Lien
5.30% (1 ML+3.25%)
due 06/01/2022..................... 134,352 134,325
Greeneden US Holdings II LLC FRS
BTL
5.29% (1 ML+3.25%)
due 12/01/2023..................... 138,938 138,001
Informatica LLC FRS
BTL
5.29% (1 ML+3.25%)
due 08/05/2022..................... 138,936 139,501
Kronos, Inc. FRS
1st Lien
5.25% (3 ML+3.00%)
due 11/01/2023..................... 140,000 140,262
MYOB US Borrower LLC FRS
BTL
6.04% (1 ML+4.00%)
due 05/06/2026..................... 103,843 104,103
Sophia LP FRS
BTL-B
5.35% (3 ML+3.25%)
due 09/30/2022..................... 135,117 135,032
Ultimate Software Group, Inc. FRS
1st Lien
5.79% (1 ML+3.75%)
due 05/04/2026..................... 103,512 103,978
----------
1,274,006
----------
Finance-Credit Card -- 0.0%
Pi US Mergerco, Inc. FRS
1st Lien
5.29% (1 ML+3.25%)
due 01/03/2025..................... 136,937 136,038
----------
Finance-Investment Banker/Broker -- 0.0%
Deerfield Dakota Holding LLC FRS
BTL-B
5.29% (1 ML+3.25%)
due 02/13/2025..................... 138,255 135,432
----------
Principal Value
Security Description Amount(17) (Note 2)
Gambling (Non-Hotel) -- 0.1%
Mohegan Tribal Gaming Authority FRS
BTL-B
6.04% (1 ML+4.00%)
due 10/13/2023................................. $151,871 $140,101
Scientific Games International, Inc. FRS
BTL-B5
4.79% (1 ML+2.75%)
due 08/14/2024................................. 27,750 27,488
Scientific Games International, Inc. FRS
BTL-B5
4.90% (2 ML+2.75%)
due 08/14/2024................................. 114,883 113,796
--------
281,385
--------
Hazardous Waste Disposal -- 0.1%
GFL Environmental, Inc. FRS
BTL
5.04% (1 ML+3.00%)
due 05/30/2025................................. 140,930 139,556
--------
Health Care Providers & Services -- 0.1%
HC Group Holdings II, Inc. FRS
BTL-B
6.54% (1 ML+4.50%)
due 08/06/2026................................. 140,774 140,598
--------
Human Resources -- 0.1%
Team Health Holdings, Inc. FRS
1st Lien
4.79% (1 ML+2.75%)
due 02/06/2024................................. 272,359 223,789
--------
Insurance Brokers -- 0.1%
Alliant Holdings Intermediate LLC FRS
BTL-B1
5.05% (3 ML+3.00%)
due 05/09/2025................................. 138,945 136,368
HUB International, Ltd. FRS
BTL-B
5.27% (3 ML+3.00%)
due 04/25/2025................................. 139,885 138,202
--------
274,570
--------
Insurance-Property/Casualty -- 0.1%
Asurion LLC FRS
BTL-B6
5.04% (1 ML+3.00%)
due 11/03/2023................................. 140,540 141,038
Asurion LLC FRS
2nd Lien
8.54% (1 ML+6.50%)
due 08/04/2025................................. 7,101 7,210
Sedgwick Claims Management Services, Inc. FRS
BTL
5.29% (1 ML+3.25%)
due 12/31/2025................................. 118,802 116,812
--------
265,060
--------
42
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
LOANS(9)(10)(11) (continued)
Internet Financial Services -- 0.1%
ION Trading Finance, Ltd. FRS
BTL
6.06% (3 ML+4.00%)
due 11/21/2024...................... $143,096 $138,088
--------
Machinery-Electrical -- 0.0%
Brookfield WEC Holdings, Inc. FRS
1st Lien
5.54% (1 ML+3.50%)
due 08/01/2025...................... 102,228 102,458
--------
Machinery-General Industrial -- 0.1%
Shape Technologies Group, Inc. FRS
BTL
5.26% (3 ML+3.00%)
due 04/21/2025...................... 98,789 89,404
Welbilt, Inc. FRS
BTL-B
4.54% (1 ML+2.50%)
due 10/23/2025...................... 107,000 106,666
--------
196,070
--------
Machinery-Pumps -- 0.0%
STS Operating, Inc. FRS
BTL
6.29% (1 ML+4.25%)
due 12/11/2024...................... 137,766 134,494
--------
Medical Labs & Testing Services -- 0.1%
Jaguar Holding Co. II FRS
BTL
coupon TBD
due 08/18/2022...................... 141,630 141,736
--------
Medical-Drugs -- 0.1%
Akorn, Inc. FRS
BTL-B
9.04% (1 ML+6.25%)
due 04/16/2021(18).................. 113,198 104,142
Alphabet Holding Co., Inc. FRS
1st Lien
5.54% (1 ML+3.50%)
due 09/26/2024...................... 146,001 135,051
Bausch Health Americas, Inc. FRS
BTL
4.79% (1 ML+2.75%)
due 11/27/2025...................... 90,780 90,916
--------
330,109
--------
Medical-Generic Drugs -- 0.1%
Alvogen Pharma US, Inc. FRS
BTL-B
6.79% (1 ML+4.75%)
due 04/02/2022...................... 129,671 116,380
Amneal Pharmaceuticals LLC FRS
BTL-B
5.56% (1 ML+3.50%)
due 05/04/2025...................... 136,960 116,415
--------
232,795
--------
Principal Value
Security Description Amount(17) (Note 2)
Medical-HMO -- 0.0%
MPH Acquisition Holdings LLC FRS
BTL-B
4.85% (3 ML+2.75%)
due 06/07/2023.................................... $111,027 $105,476
--------
Medical-Hospitals -- 0.0%
RegionalCare Hospital Partners Holdings, Inc. FRS
BTL-B
coupon TBD
due 11/17/2025.................................... 106,731 106,764
--------
Metal Processors & Fabrication -- 0.1%
Crosby US Acquisition Corp. FRS
BTL-B
6.80% (1 ML+4.75%)
due 06/26/2026.................................... 104,838 102,349
Form Technologies LLC FRS
BTL
5.36% (3 ML+3.25%)
due 01/28/2022.................................... 138,909 133,005
SEI Holdings I Corp. FRS
1st Lien
6.04% (1 ML+4.00%)
due 03/27/2021.................................... 141,254 139,311
--------
374,665
--------
Miscellaneous Manufacturing -- 0.0%
Excelitas Technologies Corp. FRS
2nd Lien
9.83% (3 ML+7.50%)
due 12/01/2025.................................... 105,000 105,000
--------
Multimedia -- 0.0%
EW Scripps Co. FRS
BTL-B1
4.79% (1 ML+2.75%)
due 05/01/2026.................................... 103,616 103,616
--------
Oil Companies-Exploration & Production -- 0.1%
Osum Production Corp. FRS
BTL
11.60% (3 ML+9.50%)
due 07/31/2022.................................... 150,723 138,665
--------
Pharmacy Services -- 0.0%
Change Healthcare Holdings LLC FRS
BTL
coupon TBD
due 03/01/2024.................................... 106,070 105,490
--------
Physicians Practice Management -- 0.1%
Sound Inpatient Physicians, Inc. FRS
1st Lien
4.79% (1 ML+2.75%)
due 06/27/2025.................................... 148,894 147,684
--------
Pipelines -- 0.1%
Blackstone CQP Holdco LP FRS
BTL-B
5.66% (3 ML+3.50%)
due 09/30/2024.................................... 103,479 103,932
43
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount(17) (Note 2)
LOANS(9)(10)(11) (continued)
Pipelines (continued)
Lucid Energy Group II Borrower LLC FRS
1st Lien
5.04% (1 ML+3.00%)
due 02/17/2025.................................. $146,882 $137,946
Medallion Midland Acquisition LLC FRS
BTL
5.29% (1 ML+3.25%)
due 10/30/2024.................................. 135,416 131,241
--------
373,119
--------
Publishing-Books -- 0.1%
Houghton Mifflin Harcourt Publishers, Inc. FRS
BTL
5.04% (1 ML+3.00%)
due 05/31/2021.................................. 145,858 141,208
--------
Publishing-Periodicals -- 0.1%
Meredith Corp. FRS
BTL-B1
4.79% (1 ML+2.75%)
due 01/31/2025.................................. 114,161 114,304
Nielsen Finance LLC FRS
BTL-B4
4.04% (1 ML+2.00%)
due 10/04/2023.................................. 141,638 141,536
--------
255,840
--------
Quarrying -- 0.1%
US Silica Co. FRS
BTL-B
6.06% (1 ML+4.00%)
due 05/01/2025.................................. 151,193 142,651
--------
Real Estate Management/Services -- 0.1%
DTZ U. S. Borrower LLC FRS
BTL-B
5.29% (1 ML+3.25%)
due 08/21/2025.................................. 137,830 138,037
--------
Research & Development -- 0.0%
PAREXEL International Corp. FRS
BTL
4.79% (1 ML+2.75%)
due 09/27/2024.................................. 129,110 122,429
--------
Resort/Theme Parks -- 0.0%
SeaWorld Parks & Entertainment, Inc. FRS
BTL-B5
5.04% (1 ML+3.00%)
due 03/31/2024.................................. 136,878 136,621
--------
Retail-Petroleum Products -- 0.0%
EG America LLC FRS
BTL
6.10% (3 ML+4.00%)
due 02/07/2025.................................. 137,216 135,458
--------
Retail-Restaurants -- 0.1%
IRB Holding Corp. FRS
BTL-B
5.55% (3 ML+3.25%)
due 02/05/2025.................................. 138,942 138,218
Principal Value
Security Description Amount(17) (Note 2)
Retail-Restaurants (continued)
Wok Holdings, Inc. FRS
BTL
8.70% (6 ML+6.50%)
due 03/01/2026............................ $110,722 $ 93,560
--------
231,778
--------
Retail-Sporting Goods -- 0.0%
Bass Pro Group LLC FRS
BTL
7.04% (1 ML+5.00%)
due 09/25/2024............................ 134,412 129,246
--------
Rubber/Plastic Products -- 0.0%
Gates Global LLC FRS
BTL-B2
4.79% (1 ML+2.75%)
due 04/01/2024............................ 104,733 103,162
--------
Satellite Telecom -- 0.0%
Intelsat Jackson Holdings SA FRS
BTL-B3
5.80% (1 ML+3.75%)
due 11/27/2023............................ 135,000 135,135
--------
Security Services -- 0.0%
Prime Security Services Borrower, LLC FRS
BTL-B1
5.21% (1 WL+3.25%)
due 09/23/2026............................ 120,937 119,469
--------
Soap & Cleaning Preparation -- 0.1%
Diamond BC BV FRS
BTL
5.26% (3 ML+3.00%)
due 09/06/2024............................ 155,302 147,731
--------
Software Tools -- 0.0%
RP Crown Parent LLC FRS
BTL
4.80% (3 ML+2.75%)
due 10/12/2023............................ 105,728 105,675
--------
Telecom Services -- 0.1%
Level 3 Parent LLC FRS
BTL-B
4.29% (1 ML+2.25%)
due 02/22/2024............................ 135,000 135,169
West Corp. FRS
BTL-B1
5.54% (1 ML+3.50%)
due 10/10/2024............................ 117,865 103,819
--------
238,988
--------
Telecommunication Equipment -- 0.0%
CommScope, Inc. FRS
BTL-B
5.29% (1 ML+3.25%)
due 04/06/2026............................ 70,565 70,241
CommScope, Inc. FRS
BTL-B
coupon TBD
due 04/06/2026............................ 35,000 34,840
--------
105,081
--------
44
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Shares/
Principal Value
Security Description Amount(17) (Note 2)
LOANS(9)(10)(11) (continued)
Telephone-Integrated -- 0.0%
CenturyLink, Inc. FRS
BTL-B
4.79% (1 ML+2.75%)
due 01/31/2025............................ $135,416 $ 134,373
-----------
Television -- 0.1%
Ion Media Networks, Inc. FRS
BTL-B1
5.06% (1 ML+3.00%)
due 12/18/2024............................ 140,877 140,525
-----------
Theaters -- 0.3%
AMC Entertainment Holdings, Inc. FRS
BTL-B
5.23% (6 ML+3.00%)
due 04/22/2026............................ 136,687 137,257
Cineworld, Ltd. FRS
BTL
4.29% (1 ML+2.25%)
due 02/28/2025............................ 140,400 139,487
William Morris Endeavor Entertainment LLC
FRS
BTL-B1
4.80% (1 ML+2.75%)
due 05/18/2025............................ 571,603 554,812
-----------
831,556
-----------
Transport-Truck -- 0.1%
Pods LLC FRS
1st Lien
5.05% (1 ML+2.75%)
due 12/06/2024............................ 150,793 150,416
-----------
Total Loans
(cost $16,015,717)........................ 14,819,756
-----------
COMMON STOCKS -- 0.2%
Building Products-Air & Heating -- 0.0%
API Heat Transfer, Inc. +(12).............. 171,230 50,941
-----------
Television -- 0.2%
ION Media Networks, Inc.+(4)(12)........... 655 505,988
-----------
Total Common Stocks
(cost $56,512)............................ 556,929
-----------
PREFERRED SECURITIES -- 0.1%
Building Products-Air & Heating -- 0.0%
API Heat Transfer, Inc. Class A
8.63%(12)................................. 36,495 26,641
-----------
Electric-Distribution -- 0.1%
Entergy Louisiana LLC
4.70%..................................... 5,200 133,016
-----------
Sovereign Agency -- 0.0%
Federal Home Loan Mtg. Corp.
Series Z
8.38%+.................................... 5,875 76,904
-----------
Total Preferred Securities
(cost $257,205)........................... 236,561
-----------
Principal Value
Security Description Amount(17) (Note 2)
PREFERRED SECURITIES/CAPITAL SECURITIES -- 1.6%
Banks-Money Center -- 0.2%
BBVA Bancomer SA
5.13% due 01/18/2033*.............................. $ 201,000 $191,452
National Westminster Bank PLC FRS
1.80% (3 ME + 2.15%)
due 01/05/2020(13)................................. EUR 300,000 323,097
--------
514,549
--------
Banks-Super Regional -- 0.1%
Wells Fargo Capital X
5.95% due 12/01/2086............................... 115,000 142,223
--------
Building & Construction-Misc. -- 0.1%
China Minmetals Corp.
3.75% due 11/13/2022(13)........................... 335,000 334,935
--------
Diversified Banking Institutions -- 0.2%
Bank of Nova Scotia
4.65% due 10/12/2022(13)........................... 223,000 221,383
HSBC Holdings PLC
6.00% due 05/22/2027(13)........................... 273,000 280,786
JPMorgan Chase & Co.
Series U
6.13% due 04/30/2024(13)........................... 176,000 190,709
--------
692,878
--------
Diversified Minerals -- 0.0%
BHP Billiton Finance, Ltd.
5.63% due 10/22/2079............................... EUR 100,000 132,985
--------
Electric-Distribution -- 0.1%
National Rural Utilities Cooperative Finance Corp.
4.75% due 04/30/2043............................... 278,000 283,162
--------
Electric-Generation -- 0.2%
Electricite de France SA
4.13% due 01/22/2022(13)........................... EUR 300,000 348,674
Electricite de France SA
4.25% due 01/29/2020(13)........................... EUR 200,000 220,310
--------
568,984
--------
Electric-Integrated -- 0.1%
Dominion Resources, Inc.
5.75% due 10/01/2054............................... 91,000 96,563
Gas Natural Fenosa Finance BV
3.38% due 04/24/2024(13)........................... EUR 100,000 116,612
--------
213,175
--------
Finance-Investment Banker/Broker -- 0.0%
Lehman Brothers Holdings Capital Trust VII
Escrow Security
0.00%+(4).......................................... 222,000 22
--------
Food-Dairy Products -- 0.1%
Land O'Lakes Capital Trust I
7.45% due 03/15/2028*.............................. 367,000 394,525
--------
Gas-Distribution -- 0.1%
Centrica PLC
3.00% due 04/10/2076............................... EUR 200,000 221,260
--------
45
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal
Amount/ Value
Security Description Shares(17) (Note 2)
PREFERRED SECURITIES/CAPITAL SECURITIES (continued)
Insurance-Life/Health -- 0.1%
Aviva PLC
6.13% due 07/05/2043....................... EUR 115,000 $ 146,532
Prudential Financial, Inc.
5.70% due 09/15/2048....................... $ 258,000 285,967
------------
432,499
------------
Insurance-Multi-line -- 0.0%
Voya Financial, Inc.
4.70% due 01/23/2048....................... 94,000 88,195
------------
Medical-Drugs -- 0.1%
Bayer AG
3.00% due 07/01/2075....................... EUR 200,000 220,410
------------
Oil Companies-Integrated -- 0.1%
TOTAL SA
2.71% due 05/05/2023(13)................... EUR 375,000 439,109
------------
Pipelines -- 0.1%
EnLink Midstream Partners LP
6.00% due 12/15/2022(13)................... 67,000 47,905
Enterprise Products Operating LLC
5.25% due 08/16/2077....................... 59,000 58,496
TransCanada Trust
5.30% due 03/15/2077....................... 109,000 108,455
TransCanada Trust
5.63% due 05/20/2075....................... 85,000 87,338
------------
302,194
------------
Total Preferred Securities/Capital Securities
(cost $4,956,709).......................... 4,981,105
------------
Total Long-Term Investment Securities
(cost $282,548,878)........................ 284,619,922
------------
SHORT-TERM INVESTMENT SECURITIES -- 8.8%
Registered Investment Companies -- 8.5%
State Street Institutional U.S. Government
Money Market Fund, Premier Class
1.88%(15).................................. 26,648,843 26,648,843
------------
U.S. Government Treasuries -- 0.3%
United States Treasury Bills
2.37% due 04/23/2020....................... $ 385,000 381,106
2.40% due 10/31/2019....................... 385,000 384,434
------------
765,540
------------
Total Short-Term Investment Securities
(cost $27,413,006)......................... 27,414,383
------------
TOTAL INVESTMENTS
(cost $309,961,884)(16).................... 99.6% 312,034,305
Other assets less liabilities................. 0.4 1,321,219
------------- ------------
NET ASSETS 100.0% $313,355,524
============= ============
--------
* Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be sold in transactions exempt from
registration, normally to qualified institutional buyers. The Fund has no
right to demand registration of these securities. At September 30, 2019,
the aggregate value of these securities was $59,400,466 representing 19.0%
of net assets.
+ Non-income producing security
(1) Commercial Mortgage Backed Security
(2) Certain variable rate securities are not based on a published reference
rate and spread but are determined by the issuer or agent and are based on
current market conditions. These securities do not indicate a reference
rate and spread in their description above.
(3) Collateralized Mortgage Obligation
(4) Securities classified as Level 3 (see Note 2).
(5) Company has filed for bankruptcy protection.
(6) Security in default of interest and principal at maturity.
(7) Interest Only
(8) Inverse Floating Rate Security that pays interest that varies inversely to
changes in the market interest rates. The interest rate shown is the
current interest rate at September 30, 2019.
(9) Senior loans in the Fund are generally subject to mandatory and/or
optional prepayment. Because of these mandatory prepayment conditions and
because there may be significant economic incentives for a borrower to
prepay, prepayments may occur. As a result, the actual remaining maturity
may be substantially less than the stated maturities shown.
(10) The Fund invests in senior loans which generally pay interest at rates
which are periodically re-determined by reference to a base lending rate
plus a premium. These base lending rates are generally either the lending
rate offered by one or more major European banks, such as the London
Inter-Bank Offered Rate ("LIBOR") or the prime rate offered by one or more
major United States banks, or the certificate of deposit rate. Senior
loans are generally considered to be restrictive in that the Fund is
ordinarily contractually obligated to receive approval from the Agent Bank
and/or borrower prior to the disposition of a senior loan.
(11) All loans in the Fund were purchased through assignment agreements unless
otherwise indicated.
(12) Denotes a restricted security that: (a) cannot be offered for public sale
without first being registered, or being able to take advantage of an
exemption from registration, under the Securities Act of 1933, as amended
(the "1933 Act"); (b) is subject to a contractual restriction on public
sales; or (c) is otherwise subject to a restriction on sales by operation
of applicable law. Restricted securities are valued pursuant to Note
2. Certain restricted securities held by the Fund may not be sold except
in exempt transactions or in a public offering registered under the 1933
Act. The Fund has no right to demand registration of these securities. The
risk of investing in certain restricted securities is greater than the
risk of investing in the securities of widely held, publicly traded
companies. To the extent applicable, lack of a secondary market and resale
restrictions may result in the inability of a Fund to sell a security at a
fair price and may substantially delay the sale of the security. In
addition, certain restricted securities may exhibit greater price
volatility
46
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
++than securities for which secondary markets exist. As of September 30,
2019, the Fund held the following restricted securities:
Value % of
Acquisition Acquisition Per Net
Description Date Shares Cost Value Share Assets
----------- ----------- ------- ----------- -------- ------- ------
Common Stocks
API Heat Transfer,
Inc................. 12/31/2018 171,230 56,506 $ 50,941 $ 0.30 0.02%
ION Media Networks,
Inc................. 12/16/2016 655 6 505,988 772.50 0.16%
Preferred Securities
API Heat Transfer,
Inc. Class A........ 12/31/2018 36,495 36,495 26,641 0.73 0.01%
-------- ----
$583,570 0.19%
======== ====
(13) Perpetual maturity--maturity date reflects the next call date.
(14) All or a portion of this holding is subject to unfunded loan commitments
(See Note 10).
(15) The rate shown is the 7-day yield as of September 30, 2019.
(16) See Note 5 for cost of investments on a tax basis.
(17) Denominated in United States dollars unless otherwise indicated.
(18) PIK ("Payment-in-Kind") security--Income may be paid in additional
securities or cash at the discretion of the issuer. The security is
currently paying interest in cash at 8.29%. The security is also currently
paying interest in the form of additional loans at 0.75%.
BTL --Bank Term Loan
REMIC --Real Estate Mortgage Investment Conduit
TBD --Senior loan purchased on a when issued or delayed-delivery basis. Certain
details associated with this purchase are not known prior to the
settlement date of the transaction. In addition, senior loans typically
trade without accrued interest and therefore a coupon rate is not
available prior to the settlement.
FRS --Floating Rate Security
VRS --Variable Rate Security
The rates shown on FRS and VRS are the current interest rates at September 30,
2019 and unless noted otherwise, the dates shown are the original maturity
dates.
Currency Legend
EUR --Euro Currency
GBP --British Pound
Index Legend
3 ME -- 3 Month Euribor
1 ML -- 1 Month USD LIBOR
3 ML -- 3 Month USD LIBOR
6 ML -- 6 Month USD LIBOR
12 ML -- 12 Month USD LIBOR
1 WL -- 1 Week USD LIBOR
1 Yr USTYCR -- 1 Year US Treasury Yield Curve Rate
Forward Foreign Currency Contracts
Contract In Exchange Delivery Unrealized Unrealized
Counterparty to Deliver For Date Appreciation Depreciation
------------------------------------------------------------------------------------------
JPMorgan Chase Bank N.A EUR 8,670,500 USD 9,803,387 11/07/2019 $327,481 $ --
EUR 5,833,651 USD 6,466,684 12/05/2019 78,163 --
GBP 1,930,000 USD 2,360,413 12/05/2019 -- (18,594)
USD 554,338 EUR 496,000 11/07/2019 -- (12,264)
-------- --------
Net Unrealized Appreciation/(Depreciation).... $405,644 $(30,858)
======== ========
47
AIG Strategic Bond Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
The following is a summary of the inputs used to value the Fund's net assets as
of September 30, 2019 (see Note 2):
Level 1 -- Unadjusted Level 2 -- Other Level 3 -- Significant
Quoted Prices Observable Inputs Unobservable Inputs Total
--------------------- ----------------- ---------------------- ------------
ASSETS:
Investments at Value:*
Asset Backed Securities.................. $ -- $ 8,991,365 $ -- $ 8,991,365
U.S. Corporate Bonds & Notes:
Airlines............................... -- -- 13,223 13,223
Finance-Investment Banker/Broker....... -- 401,440 64 401,504
Gambling (Non-Hotel)................... -- 252,000 28,923 280,923
Rubber/Plastic Products................ -- -- 0 0
Other Industries....................... -- 97,740,902 -- 97,740,902
Foreign Corporate Bonds & Notes:
Special Purpose Entity................. -- -- 0 0
Other Industries....................... -- 35,808,929 -- 35,808,929
Foreign Government Obligations........... -- 26,155,064 -- 26,155,064
U.S. Government Agencies................. -- 87,523,445 -- 87,523,445
U.S. Government Treasuries............... -- 7,110,216 -- 7,110,216
Loans.................................... -- 14,819,756 -- 14,819,756
Common Stocks:
Television............................. -- -- 505,988 505,988
Other Industries....................... -- 50,941 -- 50,941
Preferred Securities:
Building Products-Air & Heating........ -- 26,641 -- 26,641
Other Industries....................... 209,920 -- -- 209,920
Preferred Securities/Capital Securities:
Finance-Investment Banker/Broker....... -- -- 22 22
Other Industries....................... -- 4,981,083 -- 4,981,083
Short-Term Investment Securities:
Registered Investment Companies........ 26,648,843 -- -- 26,648,843
Other Short-Term Investment Securities. -- 765,540 -- 765,540
----------- ------------ -------- ------------
Total Investments at Value............... $26,858,763 $284,627,322 $548,220 $312,034,305
=========== ============ ======== ============
Other Financial Instruments:+
Forward Foreign Currency Contracts....... $ -- $ 405,644 $ -- $ 405,644
=========== ============ ======== ============
LIABILITIES:
Other Financial Instruments:+
Forward Foreign Currency Contracts....... $ -- $ 30,858 $ -- $ 30,858
=========== ============ ======== ============
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
+ Amounts presented represent unrealized appreciation/depreciation as of the
end of the reporting period.
At the beginning and end of the reporting period, Level 3 investments were not
considered a material portion of the Fund. There were no material Level 3
transfers during the reporting period.
See Notes to Financial Statements
48
AIG Flexible Credit Fund
PORTFOLIO PROFILE -- September 30, 2019 -- (unaudited)
Industry Allocation*
Medical-Hospitals...................... 3.2%
Cable/Satellite TV..................... 3.1
Registered Investment Companies........ 2.7
Real Estate Investment Trusts.......... 2.7
Broadcast Services/Program............. 2.6
Oil Companies-Exploration & Production. 2.4
Containers-Metal/Glass................. 2.2
Building-Residential/Commercial........ 2.0
U.S. Government Treasuries............. 2.0
Auto/Truck Parts & Equipment-Original.. 1.9
Enterprise Software/Service............ 1.9
Containers-Paper/Plastic............... 1.8
Casino Hotels.......................... 1.8
Medical Labs & Testing Services........ 1.7
Medical-Drugs.......................... 1.6
Building & Construction Products-Misc.. 1.6
Chemicals-Specialty.................... 1.4
Oil-Field Services..................... 1.4
Food-Misc./Diversified................. 1.3
Pipelines.............................. 1.3
Telephone-Integrated................... 1.3
Gambling (Non-Hotel)................... 1.2
Finance-Credit Card.................... 1.2
Distribution/Wholesale................. 1.2
Electric-Integrated.................... 1.1
Electric-Generation.................... 1.0
Computer Software...................... 1.0
Airlines............................... 1.0
Medical Information Systems............ 1.0
Machinery-Pumps........................ 1.0
Theaters............................... 1.0
Finance-Consumer Loans................. 1.0
Telecom Services....................... 1.0
Machinery-General Industrial........... 0.9
Machinery-Electrical................... 0.9
Building Products-Cement............... 0.9
Computer Services...................... 0.9
Finance-Mortgage Loan/Banker........... 0.9
Soap & Cleaning Preparation............ 0.9
Cellular Telecom....................... 0.9
Exchange-Traded Funds.................. 0.9
Casino Services........................ 0.8
Diagnostic Equipment................... 0.8
Rubber/Plastic Products................ 0.8
Security Services...................... 0.8
Food-Dairy Products.................... 0.8
Commercial Services-Finance............ 0.8
Aerospace/Defense-Equipment............ 0.7
Chemicals-Diversified.................. 0.7
Insurance-Property/Casualty............ 0.7
E-Commerce/Services.................... 0.7
Disposable Medical Products............ 0.7
Steel-Producers........................ 0.7
Metal Processors & Fabrication......... 0.7
Building-Heavy Construction............ 0.6
Cosmetics & Toiletries................. 0.6
Investment Companies................... 0.6
Applications Software.................. 0.6
Professional Sports.................... 0.6
Medical-Generic Drugs.................. 0.6
Commercial Services.................... 0.6%
Paper & Related Products............... 0.6
Data Processing/Management............. 0.6
Radio.................................. 0.5
Oil & Gas Drilling..................... 0.5
Diversified Manufacturing Operations... 0.5
Food-Retail............................ 0.5
Housewares............................. 0.5
Investment Management/Advisor Services. 0.5
Food-Confectionery..................... 0.5
Airport Development/Maintenance........ 0.5
Transport-Equipment & Leasing.......... 0.5
Consulting Services.................... 0.5
Diagnostic Kits........................ 0.5
Publishing-Periodicals................. 0.5
Consumer Products-Misc................. 0.4
Insurance-Multi-line................... 0.4
Retail-Sporting Goods.................. 0.4
Auto-Heavy Duty Trucks................. 0.4
Retail-Restaurants..................... 0.4
Food-Wholesale/Distribution............ 0.4
Computers-Integrated Systems........... 0.4
Finance-Auto Loans..................... 0.4
Food-Meat Products..................... 0.4
Appliances............................. 0.4
Oil Refining & Marketing............... 0.4
Hotels/Motels.......................... 0.4
Energy-Alternate Sources............... 0.4
Pharmacy Services...................... 0.4
Food-Catering.......................... 0.4
Telecommunication Equipment............ 0.4
Publishing-Books....................... 0.3
Independent Power Producers............ 0.3
Food-Flour & Grain..................... 0.3
Finance-Leasing Companies.............. 0.3
Hazardous Waste Disposal............... 0.3
Motion Pictures & Services............. 0.3
Printing-Commercial.................... 0.3
Veterinary Diagnostics................. 0.3
Retail-Convenience Store............... 0.3
Satellite Telecom...................... 0.3
Direct Marketing....................... 0.3
Wireless Equipment..................... 0.3
Computers.............................. 0.3
Retail-Arts & Crafts................... 0.3
Medical-Outpatient/Home Medical........ 0.3
Building & Construction-Misc........... 0.3
Aerospace/Defense...................... 0.3
Food-Baking............................ 0.3
Coal................................... 0.3
Retail-Building Products............... 0.3
E-Commerce/Products.................... 0.3
Retail-Propane Distribution............ 0.3
Banks-Commercial....................... 0.3
Retail-Major Department Stores......... 0.3
Banks-Super Regional................... 0.3
Oil Companies-Integrated............... 0.3
Human Resources........................ 0.3
Petrochemicals......................... 0.3
Rental Auto/Equipment.................. 0.3
Television............................. 0.3
49
AIG Flexible Credit Fund
PORTFOLIO PROFILE -- September 30, 2019 -- (unaudited) (continued)
Industry Allocation* (continued)
Diversified Banking Institutions........ 0.3%
Sovereign............................... 0.2
Metal-Diversified....................... 0.2
Transport-Marine........................ 0.2
Diversified Minerals.................... 0.2
Athletic Equipment...................... 0.2
Non-Hazardous Waste Disposal............ 0.2
Internet Gambling....................... 0.2
Advertising Sales....................... 0.2
Cruise Lines............................ 0.2
Retail-Vitamins & Nutrition Supplements. 0.2
Medical-HMO............................. 0.2
Internet Connectivity Services.......... 0.2
Retail-Automobile....................... 0.2
Retail-Bedding.......................... 0.2
Diversified Financial Services.......... 0.2
Chemicals-Other......................... 0.1
Real Estate Operations & Development.... 0.1
Retail-Pet Food & Supplies.............. 0.1
Pollution Control....................... 0.1
Medical Products........................ 0.1
Advertising Services.................... 0.1
Vitamins & Nutrition Products........... 0.1
Recycling............................... 0.1
Pastoral & Agricultural................. 0.1
Research & Development.................. 0.1
Retail-Regional Department Stores....... 0.1
-----
102.7%
=====
Credit Quality+#
Baa........ 1.7%
Ba......... 26.7
B.......... 50.4
Caa........ 13.0
Ca......... 0.5
Not Rated@. 7.7
-----
100.0%
=====
--------
*Calculated as a percentage of net assets
+Source: Moody's
#Calculated as a percentage of total debt issues, excluding short-term
securities.
@Represents debt issues that either have no rating, or the rating is
unavailable from the data source.
50
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
Principal Value
Security Description Amount (Note 2)
ASSET BACKED SECURITIES -- 0.1%
Diversified Financial Services -- 0.1%
TGIF Funding LLC
Series 2017-1A, Class A2
6.20% due 04/30/2047*
(cost $361,462)......................... $ 374,360 $ 367,139
----------
U.S. CORPORATE BONDS & NOTES -- 36.8%
Aerospace/Defense-Equipment -- 0.5%
TransDigm, Inc.
Senior Sec. Notes
6.25% due 03/15/2026*................... 1,755,000 1,884,431
----------
Applications Software -- 0.3%
SS&C Technologies, Inc.
Company Guar. Notes
5.50% due 09/30/2027*................... 1,030,000 1,076,376
----------
Athletic Equipment -- 0.2%
Vista Outdoor, Inc.
Company Guar. Notes
5.88% due 10/01/2023.................... 810,000 753,300
----------
Auto/Truck Parts & Equipment-Original -- 0.5%
American Axle & Manufacturing, Inc.
Company Guar. Notes
6.50% due 04/01/2027.................... 1,700,000 1,619,250
----------
Banks-Commercial -- 0.3%
Synovus Financial Corp.
Sub. Notes
5.90% due 02/07/2029.................... 865,000 915,819
----------
Broadcast Services/Program -- 1.1%
Clear Channel Worldwide Holdings, Inc.
Senior Sec. Notes
5.13% due 08/15/2027*................... 440,000 458,414
Clear Channel Worldwide Holdings, Inc.
Company Guar. Notes
9.25% due 02/15/2024*................... 387,000 425,182
Diamond Sports Group LLC/Diamond Sports
Finance Co.
Senior Sec. Notes
5.38% due 08/15/2026*................... 460,000 477,250
Diamond Sports Group LLC/Diamond Sports
Finance Co.
Company Guar. Notes
6.63% due 08/15/2027*................... 960,000 996,000
iHeartCommunications, Inc.
Senior Sec. Notes
5.25% due 08/15/2027*................... 145,000 150,800
iHeartCommunications, Inc.
Senior Sec. Notes
6.38% due 05/01/2026.................... 135,154 145,966
iHeartCommunications, Inc.
Company Guar. Notes
8.38% due 05/01/2027.................... 244,966 264,637
Univision Communications, Inc.
Senior Sec. Notes
5.13% due 02/15/2025*................... 945,000 918,398
----------
3,836,647
----------
Principal Value
Security Description Amount (Note 2)
Building & Construction Products-Misc. -- 0.5%
Owens Corning
Senior Notes
3.95% due 08/15/2029......................... $ 820,000 $ 833,752
Patrick Industries, Inc.
Senior Notes
7.50% due 10/15/2027*........................ 765,000 788,026
----------
1,621,778
----------
Building & Construction-Misc. -- 0.3%
Weekley Homes LLC/Weekley Finance Corp.
Senior Notes
6.63% due 08/15/2025......................... 1,045,000 1,047,612
----------
Building-Heavy Construction -- 0.2%
New Enterprise Stone & Lime Co., Inc.
Senior Notes
10.13% due 04/01/2022*....................... 805,000 827,138
----------
Building-Residential/Commercial -- 1.5%
Beazer Homes USA, Inc.
Company Guar. Notes
5.88% due 10/15/2027......................... 560,000 542,276
Beazer Homes USA, Inc.
Company Guar. Notes
6.75% due 03/15/2025......................... 720,000 734,400
Lennar Corp.
Company Guar. Notes
5.25% due 06/01/2026......................... 815,000 881,219
PulteGroup, Inc.
Company Guar. Notes
7.88% due 06/15/2032......................... 645,000 786,900
TRI Pointe Group Inc./TRI Pointe Homes Inc.
Company Guar. Notes
5.88% due 06/15/2024......................... 1,475,000 1,570,875
William Lyon Homes, Inc.
Company Guar. Notes
6.00% due 09/01/2023......................... 700,000 728,000
----------
5,243,670
----------
Cable/Satellite TV -- 2.3%
Cablevision Systems Corp.
Senior Notes
5.88% due 09/15/2022......................... 1,255,000 1,352,262
CCO Holdings LLC/CCO Holdings Capital Corp.
Senior Notes
4.75% due 03/01/2030*........................ 950,000 964,450
CCO Holdings LLC/CCO Holdings Capital Corp.
Senior Notes
5.13% due 05/01/2027*........................ 825,000 861,094
CSC Holdings LLC
Senior Notes
5.75% due 01/15/2030*........................ 1,900,000 1,985,728
CSC Holdings LLC
Senior Notes
7.50% due 04/01/2028*........................ 585,000 658,798
DISH DBS Corp.
Company Guar. Notes
5.00% due 03/15/2023......................... 975,000 985,042
DISH DBS Corp.
Company Guar. Notes
7.75% due 07/01/2026......................... 340,000 345,950
51
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Cable/Satellite TV (continued)
Radiate Holdco LLC/Radiate Finance, Inc.
Senior Notes
6.63% due 02/15/2025*............................ $ 670,000 $ 674,757
----------
7,828,081
----------
Casino Hotels -- 0.8%
Boyd Gaming Corp.
Company Guar. Notes
6.00% due 08/15/2026............................. 260,000 274,276
Boyd Gaming Corp.
Company Guar. Notes
6.38% due 04/01/2026............................. 1,615,000 1,711,900
MGM Resorts International
Company Guar. Notes
5.75% due 06/15/2025............................. 615,000 677,453
----------
2,663,629
----------
Casino Services -- 0.2%
Eldorado Resorts, Inc.
Company Guar. Notes
6.00% due 09/15/2026............................. 755,000 826,725
----------
Cellular Telecom -- 0.3%
Sprint Corp.
Company Guar. Notes
7.88% due 09/15/2023............................. 960,000 1,054,522
----------
Chemicals-Diversified -- 0.3%
Olin Corp.
Senior Notes
5.63% due 08/01/2029............................. 1,010,000 1,050,703
----------
Chemicals-Specialty -- 0.4%
Kraton Polymers LLC/Kraton Polymers
Capital Corp.
Company Guar. Notes
7.00% due 04/15/2025*............................ 835,000 870,488
Platform Specialty Products Corp.
Company Guar. Notes
5.88% due 12/01/2025*............................ 630,000 658,285
----------
1,528,773
----------
Coal -- 0.3%
Alliance Resource Operating Partners LP/Alliance
Resource Finance Corp.
Company Guar. Notes
7.50% due 05/01/2025*............................ 985,000 972,688
----------
Computer Services -- 0.3%
Banff Merger Sub, Inc.
Senior Notes
9.75% due 09/01/2026*............................ 530,000 505,885
Exela Intermediate LLC/Exela Finance, Inc.
Senior Sec. Notes
10.00% due 07/15/2023*........................... 490,000 274,400
Tempo Acquisition LLC/Tempo Acquisition
Finance Corp.
Senior Notes
6.75% due 06/01/2025*............................ 235,000 242,050
----------
1,022,335
----------
Principal Value
Security Description Amount (Note 2)
Computers -- 0.3%
Dell International LLC/EMC Corp.
Senior Sec. Notes
4.90% due 10/01/2026*................. $ 495,000 $ 530,592
Dell International LLC/EMC Corp.
Senior Sec. Notes
5.30% due 10/01/2029*................. 505,000 550,579
----------
1,081,171
----------
Computers-Integrated Systems -- 0.1%
Everi Payments, Inc.
Company Guar. Notes
7.50% due 12/15/2025*................. 250,000 263,438
----------
Consumer Products-Misc. -- 0.2%
Prestige Brands, Inc.
Company Guar. Notes
6.38% due 03/01/2024*................. 775,000 806,000
----------
Containers-Metal/Glass -- 0.6%
BWAY Holding Co.
Senior Notes
7.25% due 04/15/2025*................. 901,000 851,715
Greif, Inc.
Company Guar. Notes
6.50% due 03/01/2027*................. 610,000 646,905
Owens-Brockway Glass Container, Inc.
Company Guar. Notes
6.38% due 08/15/2025*................. 665,000 704,900
----------
2,203,520
----------
Containers-Paper/Plastic -- 0.3%
Trident Merger Sub, Inc.
Senior Notes
6.63% due 11/01/2025*................. 790,000 691,250
Trident TPI Holdings, Inc.
Company Guar. Notes
9.25% due 08/01/2024*................. 490,000 480,200
----------
1,171,450
----------
Data Processing/Management -- 0.3%
Star Merger Sub, Inc.
Senior Notes
10.25% due 02/15/2027*................ 785,000 868,406
----------
Diagnostic Equipment -- 0.8%
Avantor, Inc.
Senior Sec. Notes
6.00% due 10/01/2024*................. 1,155,000 1,237,617
Avantor, Inc.
Senior Notes
9.00% due 10/01/2025*................. 735,000 823,200
Ortho-Clinical Diagnostics, Inc.
Senior Notes
6.63% due 05/15/2022*................. 790,000 771,593
----------
2,832,410
----------
Disposable Medical Products -- 0.3%
Sotera Health Holdings LLC
Senior Notes
6.50% due 05/15/2023*................. 900,000 919,125
----------
52
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Distribution/Wholesale -- 0.1%
IAA Spinco, Inc.
Senior Notes
5.50% due 06/15/2027*....................... $ 280,000 $ 295,400
----------
Diversified Manufacturing Operations -- 0.2%
LSB Industries, Inc.
Senior Sec. Notes
9.63% due 05/01/2023*....................... 795,000 838,725
----------
E-Commerce/Services -- 0.3%
GrubHub Holdings, Inc.
Company Guar. Notes
5.50% due 07/01/2027*....................... 1,005,000 1,025,402
----------
Electric-Generation -- 0.5%
Vistra Operations Co. LLC
Senior Sec. Notes
4.30% due 07/15/2029*....................... 660,000 677,165
Vistra Operations Co. LLC
Senior Notes
5.63% due 02/15/2027*....................... 1,145,000 1,205,742
----------
1,882,907
----------
Electric-Integrated -- 0.8%
DPL, Inc.
Senior Notes
4.35% due 04/15/2029*....................... 1,735,000 1,713,760
Talen Energy Supply LLC
Senior Sec. Notes
6.63% due 01/15/2028*....................... 750,000 736,875
Talen Energy Supply LLC
Senior Sec. Notes
7.25% due 05/15/2027*....................... 295,000 299,808
Texas Competitive Electric Holdings Co. LLC/
TCEH Finance, Inc.
Escrow Notes
11.50% due 10/01/2020+...................... 1,667,835 2,502
----------
2,752,945
----------
Energy-Alternate Sources -- 0.4%
TerraForm Power Operating LLC
Company Guar. Notes
4.25% due 01/31/2023*....................... 650,000 663,000
TerraForm Power Operating LLC
Company Guar. Notes
5.00% due 01/31/2028*....................... 590,000 613,600
----------
1,276,600
----------
Enterprise Software/Service -- 0.2%
Infor US, Inc.
Company Guar. Notes
6.50% due 05/15/2022........................ 665,000 675,806
----------
Finance-Consumer Loans -- 1.0%
Navient Corp.
Senior Notes
5.88% due 10/25/2024........................ 1,095,000 1,103,212
Navient Corp.
Senior Notes
6.75% due 06/25/2025........................ 1,025,000 1,057,031
Principal Value
Security Description Amount (Note 2)
Finance-Consumer Loans (continued)
Springleaf Finance Corp.
Company Guar. Notes
6.88% due 03/15/2025........................... $ 820,000 $ 903,538
Springleaf Finance Corp.
Company Guar. Notes
7.13% due 03/15/2026........................... 390,000 432,637
----------
3,496,418
----------
Finance-Mortgage Loan/Banker -- 0.3%
Nationstar Mtg. Holdings, Inc.
Company Guar. Notes
8.13% due 07/15/2023*.......................... 595,000 620,288
Nationstar Mtg. LLC/Nationstar Capital Corp.
Company Guar. Notes
6.50% due 07/01/2021........................... 350,000 350,875
----------
971,163
----------
Food-Dairy Products -- 0.3%
Chobani LLC/Chobani Finance Corp., Inc.
Company Guar. Notes
7.50% due 04/15/2025*.......................... 1,095,000 1,048,462
----------
Food-Misc./Diversified -- 0.6%
Dole Food Co., Inc.
Senior Sec. Notes
7.25% due 06/15/2025*.......................... 1,250,000 1,178,125
Post Holdings, Inc.
Company Guar. Notes
5.00% due 08/15/2026*.......................... 435,000 451,138
Post Holdings, Inc.
Company Guar. Notes
5.50% due 03/01/2025*.......................... 590,000 618,025
----------
2,247,288
----------
Food-Retail -- 0.3%
Albertsons Cos. LLC/Safeway, Inc./New
Albertsons LP/Albertson's LLC
Company Guar. Notes
5.75% due 03/15/2025........................... 705,000 724,987
Albertsons Cos. LLC/Safeway, Inc./New
Albertsons LP/Albertson's LLC
Company Guar. Notes
5.88% due 02/15/2028*.......................... 155,000 164,058
Albertsons Cos. LLC/Safeway, Inc./New
Albertsons LP/Albertson's LLC
Company Guar. Notes
7.50% due 03/15/2026*.......................... 145,000 161,312
----------
1,050,357
----------
Food-Wholesale/Distribution -- 0.1%
Matterhorn Merger Sub LLC/Matterhorn Finance
Sub, Inc.
Senior Notes
8.50% due 06/01/2026*.......................... 580,000 432,100
----------
Gambling (Non-Hotel) -- 0.6%
Caesars Resort Collection LLC/CRC Finco, Inc.
Company Guar. Notes
5.25% due 10/15/2025*.......................... 520,000 531,648
53
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Gambling (Non-Hotel) (continued)
Contra CB Downey Fin
Escrow Notes
10.50% due 02/15/2023+.................. $ 485,000 $ 0
Downstream Development Authority of the
Quapaw Tribe of Oklahoma
Senior Sec. Notes
10.50% due 02/15/2023*.................. 485,000 516,525
Scientific Games International, Inc.
Company Guar. Notes
6.63% due 05/15/2021.................... 440,000 445,500
Scientific Games International, Inc.
Company Guar. Notes
8.25% due 03/15/2026*................... 380,000 403,123
Twin River Worldwide Holdings, Inc.
Senior Notes
6.75% due 06/01/2027*................... 200,000 210,000
----------
2,106,796
----------
Housewares -- 0.1%
American Greetings Corp.
Company Guar. Notes
8.75% due 04/15/2025*................... 530,000 482,300
----------
Insurance-Multi-line -- 0.3%
Acrisure LLC/Acrisure Finance, Inc.
Senior Notes
7.00% due 11/15/2025*................... 710,000 661,933
Acrisure LLC/Acrisure Finance, Inc.
Senior Sec. Notes
8.13% due 02/15/2024*................... 320,000 344,800
----------
1,006,733
----------
Internet Connectivity Services -- 0.2%
Zayo Group LLC/Zayo Capital, Inc.
Company Guar. Notes
6.38% due 05/15/2025.................... 600,000 617,880
----------
Investment Companies -- 0.6%
Icahn Enterprises LP/Icahn Enterprises
Finance Corp.
Company Guar. Notes
5.88% due 02/01/2022.................... 985,000 995,466
Icahn Enterprises LP/Icahn Enterprises
Finance Corp.
Company Guar. Notes
6.25% due 05/15/2026*................... 880,000 922,900
Icahn Enterprises LP/Icahn Enterprises
Finance Corp.
Company Guar. Notes
6.38% due 12/15/2025.................... 285,000 299,681
----------
2,218,047
----------
Investment Management/Advisor Services -- 0.5%
Citadel LP
Senior Notes
4.88% due 01/15/2027*................... 1,735,000 1,772,326
----------
Principal Value
Security Description Amount (Note 2)
Machinery-Electrical -- 0.2%
Vertiv Intermediate Holding Corp.
Senior Notes
12.00% due 02/15/2022*(1)....................... $795,000 $ 713,513
----------
Machinery-General Industrial -- 0.2%
RBS Global, Inc./Rexnord LLC
Company Guar. Notes
4.88% due 12/15/2025*........................... 775,000 796,235
----------
Machinery-Pumps -- 0.2%
Granite Holdings US Acquisition Co.
Company Guar. Notes
11.00% due 10/01/2027*.......................... 880,000 849,200
----------
Medical Information Systems -- 0.1%
Change Healthcare Holdings LLC/Change
Healthcare Finance, Inc.
Senior Notes
5.75% due 03/01/2025*........................... 340,000 345,100
----------
Medical Labs & Testing Services -- 0.9%
Catalent Pharma Solutions, Inc.
Company Guar. Notes
5.00% due 07/15/2027*........................... 280,000 290,500
Charles River Laboratories International, Inc.
Company Guar. Notes
5.50% due 04/01/2026*........................... 350,000 372,305
Eagle Holding Co. II LLC
Senior Notes
7.63% due 05/15/2022*(1)........................ 910,000 916,825
Eagle Holding Co. II LLC
Notes
7.75% due 05/15/2022*(1)........................ 820,000 827,175
West Street Merger Sub, Inc.
Senior Notes
6.38% due 09/01/2025*........................... 810,000 745,200
----------
3,152,005
----------
Medical-Drugs -- 0.3%
Bausch Health Americas, Inc.
Company Guar. Notes
8.50% due 01/31/2027*........................... 885,000 993,235
Endo Finance LLC/Endo Finco, Inc.
Company Guar. Notes
5.38% due 01/15/2023*........................... 350,000 213,500
----------
1,206,735
----------
Medical-Generic Drugs -- 0.1%
Par Pharmaceutical, Inc.
Senior Sec. Notes
7.50% due 04/01/2027*........................... 405,000 371,081
----------
Medical-HMO -- 0.2%
Centene Corp.
Senior Notes
5.38% due 06/01/2026*........................... 195,000 204,019
WellCare Health Plans, Inc.
Senior Notes
5.25% due 04/01/2025............................ 450,000 468,562
----------
672,581
----------
54
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Medical-Hospitals -- 1.9%
HCA, Inc.
Company Guar. Notes
5.38% due 02/01/2025.................. $1,315,000 $1,436,638
HCA, Inc.
Company Guar. Notes
5.63% due 09/01/2028.................. 1,415,000 1,576,734
HCA, Inc.
Company Guar. Notes
5.88% due 02/01/2029.................. 155,000 174,101
Select Medical Corp.
Company Guar. Notes
6.25% due 08/15/2026*................. 370,000 386,650
Surgery Center Holdings, Inc.
Company Guar. Notes
10.00% due 04/15/2027*................ 425,000 431,375
Tenet Healthcare Corp.
Senior Sec. Notes
4.88% due 01/01/2026*................. 865,000 887,706
Tenet Healthcare Corp.
Senior Sec. Notes
5.13% due 11/01/2027*................. 292,000 301,738
Tenet Healthcare Corp.
Sec. Notes
6.25% due 02/01/2027*................. 345,000 359,335
Tenet Healthcare Corp.
Senior Notes
7.00% due 08/01/2025.................. 650,000 658,125
Tenet Healthcare Corp.
Senior Notes
8.13% due 04/01/2022.................. 365,000 394,766
----------
6,607,168
----------
Metal Processors & Fabrication -- 0.2%
Hillman Group, Inc.
Company Guar. Notes
6.38% due 07/15/2022*................. 585,000 548,438
----------
Oil & Gas Drilling -- 0.2%
Nabors Industries, Inc.
Company Guar. Notes
5.75% due 02/01/2025.................. 535,000 395,900
Rowan Cos., Inc.
Company Guar. Notes
5.40% due 12/01/2042.................. 875,000 371,875
----------
767,775
----------
Oil Companies-Exploration & Production -- 1.4%
California Resources Corp.
Sec. Notes
8.00% due 12/15/2022*................. 420,000 207,900
Callon Petroleum Co.
Company Guar. Notes
6.13% due 10/01/2024.................. 451,345 444,575
Chesapeake Energy Corp.
Company Guar. Notes
8.00% due 06/15/2027.................. 965,000 656,393
CrownRock LP/CrownRock Finance, Inc.
Senior Notes
5.63% due 10/15/2025*................. 1,015,000 1,021,323
Principal Value
Security Description Amount (Note 2)
Oil Companies-Exploration & Production (continued)
Denbury Resources, Inc.
Sec. Notes
7.75% due 02/15/2024*............................ $ 580,000 $ 448,050
Denbury Resources, Inc.
Sec. Notes
9.25% due 03/31/2022*............................ 768,000 672,000
EP Energy LLC/Everest Acquisition Finance, Inc.
Senior Sec. Notes
7.75% due 05/15/2026+*(2)........................ 180,000 135,000
EP Energy LLC/Everest Acquisition Finance, Inc.
Senior Sec. Notes
8.00% due 11/29/2024+*(2)........................ 170,000 62,900
EP Energy LLC/Everest Acquisition Finance, Inc.
Sec. Bonds
8.00% due 02/15/2025+*(2)........................ 260,000 6,500
Kosmos Energy,, Ltd
Company Guar. Notes
7.13% due 04/04/2026*............................ 600,000 618,078
Sanchez Energy Corp.
Senior Sec. Notes
7.25% due 02/15/2023+*(2)(3)..................... 405,000 291,600
Vine Oil & Gas LP/Vine Oil & Gas Finance Corp.
Company Guar. Notes
8.75% due 04/15/2023*............................ 575,000 261,625
----------
4,825,944
----------
Oil-Field Services -- 0.6%
CSI Compressco LP/CSI Compressco
Finance, Inc.
Company Guar. Notes
7.25% due 08/15/2022............................. 1,145,000 1,035,767
USA Compression Partners LP/USA Compression
Finance Corp.
Company Guar. Notes
6.88% due 04/01/2026............................. 905,000 938,937
----------
1,974,704
----------
Paper & Related Products -- 0.3%
Schweitzer-Mauduit International, Inc.
Company Guar. Notes
6.88% due 10/01/2026*............................ 1,020,000 1,078,650
----------
Petrochemicals -- 0.3%
TPC Group, Inc.
Senior Sec. Notes
10.50% due 08/01/2024*........................... 827,000 862,148
----------
Pipelines -- 0.8%
American Midstream Partners LP/American
Midstream Finance Corp.
Company Guar. Notes
9.50% due 12/15/2021*............................ 525,000 493,500
Cheniere Corpus Christi Holdings LLC
Senior Sec. Notes
5.88% due 03/31/2025............................. 1,065,000 1,184,951
Cheniere Energy Partners LP
Company Guar. Notes
5.63% due 10/01/2026............................. 665,000 705,665
55
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Pipelines (continued)
Targa Resources Partners LP/Targa Resources
Partners Finance Corp.
Company Guar. Notes
5.88% due 04/15/2026........................ $ 485,000 $ 513,954
----------
2,898,070
----------
Publishing-Books -- 0.1%
McGraw-Hill Global Education Holdings LLC/
McGraw-Hill Global Education Finance
Senior Notes
7.88% due 05/15/2024*....................... 500,000 432,500
----------
Publishing-Periodicals -- 0.3%
Meredith Corp.
Company Guar. Notes
6.88% due 02/01/2026........................ 1,000,000 1,016,250
----------
Radio -- 0.5%
Sirius XM Radio, Inc.
Company Guar. Notes
4.63% due 07/15/2024*....................... 310,000 321,417
Sirius XM Radio, Inc.
Company Guar. Notes
5.50% due 07/01/2029*....................... 1,370,000 1,462,475
----------
1,783,892
----------
Real Estate Investment Trusts -- 2.1%
ESH Hospitality, Inc.
Company Guar. Notes
4.63% due 10/01/2027*....................... 1,070,000 1,074,013
ESH Hospitality, Inc.
Company Guar. Notes
5.25% due 05/01/2025*....................... 1,070,000 1,106,380
Iron Mountain, Inc.
Company Guar. Notes
4.88% due 09/15/2029*....................... 1,100,000 1,116,830
iStar, Inc.
Senior Notes
4.75% due 10/01/2024........................ 250,000 254,395
iStar, Inc.
Senior Notes
5.25% due 09/15/2022........................ 1,170,000 1,194,862
MGM Growth Properties Operating Partnership
LP/MGP Finance Co-Issuer, Inc.
Company Guar. Notes
4.50% due 01/15/2028........................ 580,000 601,750
MGM Growth Properties Operating Partnership
LP/MGP Finance Co-Issuer, Inc.
Company Guar. Notes
5.63% due 05/01/2024........................ 330,000 361,763
MGM Growth Properties Operating Partnership
LP/MGP Finance Co-Issuer, Inc.
Company Guar. Notes
5.75% due 02/01/2027*....................... 370,000 415,436
MPT Operating Partnership LP/MPT
Finance Corp.
Company Guar. Notes
4.63% due 08/01/2029........................ 200,000 206,000
Principal Value
Security Description Amount (Note 2)
Real Estate Investment Trusts (continued)
MPT Operating Partnership LP/MPT
Finance Corp.
Company Guar. Notes
5.00% due 10/15/2027......................... $ 400,000 $ 419,000
Uniti Group, Inc./CSL Capital LLC
Company Guar. Notes
7.13% due 12/15/2024*........................ 595,000 519,881
----------
7,270,310
----------
Rental Auto/Equipment -- 0.3%
Avis Budget Car Rental LLC/Avis Budget
Finance, Inc.
Senior Notes
5.75% due 07/15/2027*........................ 835,000 861,470
----------
Retail-Arts & Crafts -- 0.1%
Michaels Stores, Inc.
Company Guar. Notes
8.00% due 07/15/2027*........................ 360,000 360,450
----------
Retail-Automobile -- 0.2%
Sonic Automotive, Inc.
Company Guar. Notes
6.13% due 03/15/2027......................... 600,000 609,750
----------
Retail-Building Products -- 0.0%
Beacon Roofing Supply, Inc.
Senior Sec. Notes
4.50% due 11/15/2026*........................ 80,000 80,800
----------
Retail-Convenience Store -- 0.3%
Cumberland Farms, Inc.
Senior Notes
6.75% due 05/01/2025*........................ 1,025,000 1,097,775
----------
Retail-Propane Distribution -- 0.3%
Ferrellgas Partners LP/Ferrellgas Partners
Finance Corp.
Senior Notes
8.63% due 06/15/2020......................... 570,000 428,925
Suburban Propane Partners LP/Suburban Energy
Finance Corp.
Senior Notes
5.50% due 06/01/2024......................... 490,000 499,800
----------
928,725
----------
Retail-Regional Department Stores -- 0.1%
Neiman Marcus Group, Ltd. LLC/Neiman Marcus
Group LLC/Mariposa Borrower/NMG
Sec. Notes
8.00% due 10/25/2024*........................ 577,000 167,330
----------
Retail-Restaurants -- 0.4%
Golden Nugget, Inc.
Senior Notes
6.75% due 10/15/2024*........................ 895,000 910,662
Golden Nugget, Inc.
Company Guar. Notes
8.75% due 10/01/2025*........................ 455,000 474,338
----------
1,385,000
----------
56
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Rubber/Plastic Products -- 0.0%
Venture Holdings Co. LLC
Company Guar. Notes
11.00% due 06/01/2007+(3)(4)(5).... $ 550,000 $ 0
----------
Soap & Cleaning Preparation -- 0.2%
Kronos Acquisition Holdings, Inc.
Company Guar. Notes
9.00% due 08/15/2023*.............. 720,000 635,400
----------
Steel-Producers -- 0.6%
AK Steel Corp.
Company Guar. Notes
7.00% due 03/15/2027............... 585,000 500,175
AK Steel Corp.
Senior Sec. Notes
7.50% due 07/15/2023............... 825,000 829,125
United States Steel Corp.
Senior Notes
6.25% due 03/15/2026............... 715,000 600,600
----------
1,929,900
----------
Telecom Services -- 0.2%
West Corp.
Company Guar. Notes
8.50% due 10/15/2025*.............. 640,000 514,400
----------
Telecommunication Equipment -- 0.2%
CommScope Finance LLC
Company Guar. Notes
8.25% due 03/01/2027*.............. 640,000 623,000
----------
Telephone-Integrated -- 1.2%
Cincinnati Bell, Inc.
Company Guar. Notes
7.00% due 07/15/2024*.............. 1,075,000 994,375
Consolidated Communications, Inc.
Company Guar. Notes
6.50% due 10/01/2022............... 970,000 897,250
Frontier Communications Corp.
Senior Notes
8.50% due 04/15/2020............... 740,000 384,800
Frontier Communications Corp.
Sec. Notes
8.50% due 04/01/2026*.............. 295,000 294,971
Frontier Communications Corp.
Senior Notes
11.00% due 09/15/2025.............. 745,000 340,838
Level 3 Financing, Inc.
Company Guar. Notes
5.25% due 03/15/2026............... 530,000 551,120
Level 3 Financing, Inc.
Company Guar. Notes
5.38% due 01/15/2024............... 670,000 683,299
----------
4,146,653
----------
Television -- 0.1%
Sinclair Television Group, Inc.
Company Guar. Notes
5.13% due 02/15/2027*.............. 250,000 251,250
----------
Principal Value
Security Description Amount (Note 2)
Theaters -- 0.3%
Live Nation Entertainment, Inc.
Company Guar. Notes
5.63% due 03/15/2026*.................... $1,130,000 $ 1,202,037
------------
Transport-Equipment & Leasing -- 0.5%
Fortress Transportation & Infrastructure
Investors LLC
Senior Notes
6.50% due 10/01/2025*.................... 980,000 1,006,950
Fortress Transportation & Infrastructure
Investors LLC
Senior Notes
6.75% due 03/15/2022*.................... 670,000 700,150
------------
1,707,100
------------
Wireless Equipment -- 0.3%
ViaSat, Inc.
Senior Notes
5.63% due 09/15/2025*.................... 1,075,000 1,083,062
------------
Total U.S. Corporate Bonds & Notes
(cost $129,479,030)...................... 127,873,053
------------
FOREIGN CORPORATE BONDS & NOTES -- 8.4%
Aerospace/Defense -- 0.3%
Bombardier, Inc.
Senior Notes
7.50% due 12/01/2024*.................... 675,000 675,000
Bombardier, Inc.
Senior Notes
7.88% due 04/15/2027*.................... 365,000 363,485
------------
1,038,485
------------
Airlines -- 0.6%
Norwegian Air Shuttle ASA Pass-
Through Trust
Series 2016-1, Class A
Pass-Through Certs.
4.88% due 11/10/2029*.................... 2,212,351 2,150,848
------------
Airport Development/Maintenance -- 0.2%
Delhi International Airport, Ltd.
Senior Sec. Notes
6.45% due 06/04/2029*.................... 655,000 695,393
------------
Auto/Truck Parts & Equipment-Original -- 0.2%
Panther BF Aggregator 2 LP/Panther
Finance Co, Inc.
Senior Sec. Notes
6.25% due 05/15/2026*.................... 60,000 63,150
Panther BF Aggregator 2 LP/Panther
Finance Co, Inc.
Company Guar. Notes
8.50% due 05/15/2027*.................... 695,000 703,688
------------
766,838
------------
Building & Construction Products-Misc. -- 0.2%
James Hardie International Finance DAC
Company Guar. Notes
4.75% due 01/15/2025*.................... 655,000 674,650
------------
57
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount (Note 2)
FOREIGN CORPORATE BONDS & NOTES (continued)
Building-Residential/Commercial -- 0.5%
Brookfield Residential Properties, Inc./Brookfield
Residential US Corp.
Company Guar. Notes
6.25% due 09/15/2027*.............................. $1,820,000 $1,829,100
----------
Cable/Satellite TV -- 0.3%
Altice Luxembourg SA
Company Guar. Notes
7.75% due 05/15/2022*.............................. 200,000 204,250
Virgin Media Secured Finance PLC
Senior Sec. Notes
5.50% due 05/15/2029*.............................. 900,000 939,375
----------
1,143,625
----------
Casino Services -- 0.2%
Gateway Casinos & Entertainment, Ltd.
Sec. Notes
8.25% due 03/01/2024*.............................. 800,000 830,000
----------
Cellular Telecom -- 0.4%
Numericable-SFR SA
Senior Sec. Notes
7.38% due 05/01/2026*.............................. 1,200,000 1,286,652
----------
Chemicals-Specialty -- 0.3%
Alpha 3 BV/Alpha US Bidco, Inc.
Company Guar. Notes
6.25% due 02/01/2025*.............................. 950,000 954,750
----------
Containers-Metal/Glass -- 0.7%
ARD Securities Finance SARL
Senior Sec. Notes
8.75% due 01/31/2023*(6)........................... 632,251 654,380
Ardagh Packaging Finance PLC/Ardagh Holdings
USA, Inc.
Senior Sec. Notes
4.13% due 08/15/2026*.............................. 200,000 201,250
Ardagh Packaging Finance PLC/Ardagh Holdings
USA, Inc.
Company Guar. Notes
6.00% due 02/15/2025*.............................. 1,520,000 1,589,312
----------
2,444,942
----------
Cruise Lines -- 0.2%
Viking Cruises, Ltd.
Company Guar. Notes
5.88% due 09/15/2027*.............................. 645,000 683,442
----------
Diversified Financial Services -- 0.1%
Fairstone Financial, Inc.
Senior Notes
7.88% due 07/15/2024*.............................. 155,000 161,878
----------
Diversified Manufacturing Operations -- 0.3%
Pentair Finance SARL
Company Guar. Notes
4.50% due 07/01/2029............................... 1,025,000 1,063,287
----------
Finance-Leasing Companies -- 0.3%
Avolon Holdings Funding, Ltd.
Company Guar. Notes
4.38% due 05/01/2026*.............................. 1,105,000 1,142,901
----------
Principal Value
Security Description Amount (Note 2)
Machinery-Pumps -- 0.1%
Titan Acquisition, Ltd./Titan Co-Borrower LLC
Senior Notes
7.75% due 04/15/2026*........................... $ 455,000 $ 426,563
----------
Medical-Biomedical/Gene -- 0.0%
Concordia International Corp.
Senior Sec. Notes
8.00% due 09/06/2024............................ 142,000 138,095
----------
Medical-Drugs -- 1.0%
Bausch Health Cos., Inc.
Senior Sec. Notes
5.50% due 11/01/2025*........................... 1,180,000 1,234,693
Bausch Health Cos., Inc.
Senior Sec. Notes
5.75% due 08/15/2027*........................... 585,000 632,286
Bausch Health Cos., Inc.
Company Guar. Notes
7.00% due 01/15/2028*........................... 745,000 802,439
Teva Pharmaceutical Finance Netherlands III BV
Company Guar. Notes
3.15% due 10/01/2026............................ 505,000 353,450
Teva Pharmaceutical Finance Netherlands III BV
Company Guar. Notes
6.75% due 03/01/2028............................ 330,000 268,950
----------
3,291,818
----------
Medical-Generic Drugs -- 0.2%
Perrigo Finance Unlimited Co.
Company Guar. Notes
4.38% due 03/15/2026............................ 700,000 723,526
----------
Metal-Diversified -- 0.2%
Vedanta Resources PLC
Senior Notes
6.38% due 07/30/2022*........................... 805,000 789,906
----------
Oil & Gas Drilling -- 0.2%
Transocean, Inc.
Company Guar. Notes
6.80% due 03/15/2038............................ 465,000 285,975
Transocean, Inc.
Company Guar. Notes
7.50% due 01/15/2026*........................... 335,000 298,150
Transocean, Inc.
Company Guar. Notes
9.00% due 07/15/2023*........................... 265,000 272,287
----------
856,412
----------
Oil Companies-Exploration & Production -- 0.3%
Geopark, Ltd.
Senior Sec. Notes
6.50% due 09/21/2024*........................... 995,000 1,023,606
----------
Oil Companies-Integrated -- 0.3%
Petrobras Global Finance BV
Company Guar. Notes
5.30% due 01/27/2025............................ 460,000 502,090
58
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount (Note 2)
FOREIGN CORPORATE BONDS & NOTES (continued)
Oil Companies-Integrated (continued)
Petrobras Global Finance BV
Company Guar. Notes
5.75% due 02/01/2029......................... $ 340,000 $ 374,979
-----------
877,069
-----------
Oil-Field Services -- 0.1%
Weatherford International, Ltd.
Company Guar. Notes
8.25% due 06/15/2023+(2)(3).................. 575,000 204,125
-----------
Paper & Related Products -- 0.2%
Cascades, Inc.
Company Guar. Notes
5.50% due 07/15/2022*........................ 150,000 151,875
Cascades, Inc.
Company Guar. Notes
5.75% due 07/15/2023*........................ 360,000 364,500
-----------
516,375
-----------
Pastoral & Agricultural -- 0.1%
MHP Lux SA
Company Guar. Notes
6.25% due 09/19/2029*........................ 200,000 192,912
-----------
Satellite Telecom -- 0.3%
Telesat Canada/Telesat LLC
Senior Notes
6.50% due 10/15/2027*........................ 1,080,000 1,097,550
-----------
Security Services -- 0.3%
Garda World Security Corp.
Senior Notes
8.75% due 05/15/2025*........................ 865,000 888,441
-----------
Special Purpose Entity -- 0.0%
Hellas Telecommunications Luxembourg II SCA
Sub. Notes
6.05% due 01/15/2015+*(3)(4)(5).............. 1,025,000 0
-----------
Steel-Producers -- 0.1%
ArcelorMittal
Senior Notes
6.13% due 06/01/2025......................... 445,000 500,749
-----------
Transport-Marine -- 0.2%
Topaz Marine SA
Company Guar. Notes
9.13% due 07/26/2022*........................ 740,000 773,759
-----------
Total Foreign Corporate Bonds & Notes
(cost $30,178,010)........................... 29,167,697
-----------
LOANS(7)(8)(9) -- 50.7%
Advertising Sales -- 0.2%
Clear Channel Outdoor Holdings, Inc. FRS
BTL
5.54% (1 ML+3.50%)
due 08/21/2026............................... 600,000 601,500
-----------
Advertising Services -- 0.1%
Advantage Sales & Marketing, Inc. FRS
1st Lien
5.29% (1 ML+3.25%)
due 07/23/2021............................... 355,641 331,487
-----------
Principal Value
Security Description Amount (Note 2)
Aerospace/Defense-Equipment -- 0.2%
TransDigm, Inc. FRS
BTL-F
4.54% (1 ML+2.50%)
due 06/09/2023..................... $ 810,096 $ 807,818
----------
Airlines -- 0.4%
WestJet Airlines, Ltd. FRS
BTL-B
coupon TBD
due 08/06/2026..................... 1,430,000 1,439,704
----------
Airport Development/Maintenance -- 0.3%
1199169 B.C. ULC FRS
BTL-B2
6.10% (3 ML+4.00%)
due 04/06/2026..................... 367,133 368,739
Dynasty Acquisition Co., Inc. FRS
BTL-B1
6.10% (3 ML+4.00%)
due 04/06/2026..................... 682,867 685,855
----------
1,054,594
----------
Appliances -- 0.4%
Global Appliance, Inc. FRS
BTL-B
6.05% (1 ML+4.00%)
due 09/29/2024..................... 1,334,000 1,327,330
----------
Applications Software -- 0.3%
SS&C European Holdings SARL FRS
BTL-B4
4.29% (1 ML+2.25%)
due 04/16/2025..................... 449,449 451,041
SS&C Technologies, Inc. FRS
BTL-B3
4.29% (1 ML+2.25%)
due 04/16/2025..................... 680,445 682,855
----------
1,133,896
----------
Auto-Heavy Duty Trucks -- 0.4%
Navistar, Inc. FRS
BTL-B
5.53% (1 ML+3.50%)
due 11/06/2024..................... 1,443,025 1,436,712
----------
Auto/Truck Parts & Equipment-Original -- 1.2%
Accuride Corp. FRS
BTL
7.35% (3 ML+5.25%)
due 11/17/2023..................... 1,163,600 977,424
DexKo Global, Inc. FRS
BTL-B
5.54% (1 ML+3.50%)
due 07/24/2024..................... 965,372 952,500
Panther BF Aggregator 2 LP FRS
BTL-B
5.54% (1 ML+3.50%)
due 04/30/2026..................... 910,000 900,900
59
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount (Note 2)
LOANS(7)(8)(9) (continued)
Auto/Truck Parts & Equipment-Original (continued)
Tenneco, Inc. FRS
BTL-B
5.04% (1 ML+3.00%)
due 10/01/2025....................... $1,617,775 $1,516,664
----------
4,347,488
----------
Broadcast Services/Program -- 1.5%
Diamond Sports Group LLC FRS
BTL
5.30% (1 ML+3.25%)
due 08/24/2026....................... 1,000,000 1,004,375
iHeartCommunications, Inc. FRS
BTL
6.10% (1 ML+4.00%)
due 05/01/2026....................... 466,195 469,012
Nexstar Broadcasting, Inc. FRS
BTL-B4
4.81% (3 ML+2.75%)
due 09/18/2026....................... 1,075,000 1,079,927
Nexstar Broadcasting, Inc. FRS
BTL-B4
coupon TBD
due 09/18/2026....................... 1,070,000 1,074,904
Univision Communications, Inc. FRS
1st Lein
4.79% (1 ML+2.75%)
due 03/15/2024....................... 1,797,946 1,745,291
----------
5,373,509
----------
Building & Construction Products-Misc. -- 0.9%
AZEK Co. LLC FRS
BTL
5.93% (3 ML+3.75%)
due 05/05/2024....................... 3,109,664 3,098,002
----------
Building Products-Cement -- 0.9%
Quikrete Holdings, Inc. FRS
1st Lein
4.79% (1 ML+2.75%)
due 11/15/2023....................... 1,011,136 1,006,502
Summit Materials LLC FRS
BTL
4.04% (1 ML+2.00%)
due 11/21/2024....................... 2,082,945 2,084,899
----------
3,091,401
----------
Building-Heavy Construction -- 0.4%
Brand Industrial Services, Inc. FRS
BTL
6.35%-6.51% (3 ML+4.25%)
due 06/21/2024....................... 776,375 755,671
Brand Industrial Services, Inc. FRS
BTL
6.52% (2 ML+4.25%)
due 06/21/2024....................... 684,988 666,721
----------
1,422,392
----------
Principal Value
Security Description Amount (Note 2)
Cable/Satellite TV -- 0.5%
CSC Holdings LLC FRS
BTL
4.28% (1 ML+2.25%)
due 01/15/2026.................................. $ 706,450 $ 705,125
Radiate Holdco LLC FRS
BTL
5.04% (1 ML+3.00%)
due 02/01/2024.................................. 908,142 903,602
----------
1,608,727
----------
Casino Hotels -- 1.0%
Caesars Resort Collection LLC FRS
BTL-B
4.79% (1 ML+2.75%)
due 12/23/2024.................................. 1,711,485 1,699,871
CityCenter Holdings LLC FRS
BTL-B
4.29% (1 ML+2.25%)
due 04/18/2024.................................. 1,307,666 1,309,767
Golden Nugget, Inc. FRS
BTL-B
4.79% -4.81%(1 ML+2.75%)
due 10/04/2023.................................. 585,874 584,246
----------
3,593,884
----------
Casino Services -- 0.4%
Gateway Casinos & Entertainment Ltd. FRS
BTL
5.10% (3 ML+3.00%)
due 03/13/2025.................................. 543,125 534,639
Stars Group Holdings FRS
BTL
5.60% (3 ML+3.50%)
due 07/10/2025.................................. 890,612 893,389
----------
1,428,028
----------
Cellular Telecom -- 0.2%
Altice France SA FRS
BTL-B13
6.03% (1 ML+4.00%)
due 08/14/2026.................................. 645,125 642,303
----------
Chemicals-Diversified -- 0.4%
Ascend Performance Materials Operations LLC FRS
BTL-B
7.35% (3 ML+5.25%)
due 08/27/2026.................................. 415,000 415,000
Hexion, Inc. FRS
BTL
5.82% (3 ML+3.50%)
due 07/01/2026.................................. 1,052,363 1,049,732
----------
1,464,732
----------
Chemicals-Other -- 0.1%
US Salt LLC FRS
BTL-B
6.79% (1 ML+4.75%)
due 01/16/2026.................................. 472,625 473,216
----------
60
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount (Note 2)
LOANS(7)(8)(9) (continued)
Chemicals-Specialty -- 0.7%
Kraton Polymers LLC FRS
BTL
4.54% (1 ML+2.50%)
due 03/05/2025.......................... $ 298,202 $ 297,308
OMNOVA Solutions, Inc. FRS
BTL-B2
5.29% (1 ML+3.25%)
due 08/25/2023.......................... 1,350,317 1,350,317
Platform Specialty Products Corp. FRS
BTL
4.29% (1 ML+2.25%)
due 01/30/2026.......................... 898,213 900,738
----------
2,548,363
----------
Commercial Services -- 0.6%
Atlantic Aviation FBO, Inc. FRS
BTL-B
5.80% (1 ML+3.75%)
due 12/06/2025.......................... 223,313 224,708
CPI Acquisition, Inc. FRS
1st Lein
6.71% (3 ML+4.50%)
due 08/17/2022.......................... 1,820,685 1,347,307
Fleet U.S. Bidco, Inc. FRS
BTL-B
coupon TBD
due 10/07/2026.......................... 400,000 401,500
----------
1,973,515
----------
Commercial Services-Finance -- 0.8%
Financial & Risk US Holdings, Inc. FRS
BTL
5.79% (1 ML+3.75%)
due 10/01/2025.......................... 1,389,500 1,396,881
Trans Union LLC FRS
BTL-B4
4.05% (1 ML+2.00%)
due 06/19/2025.......................... 281,438 282,259
WEX, Inc. FRS
BTL-B3
4.29% (1 ML+2.25%)
due 05/15/2026.......................... 940,275 944,271
----------
2,623,411
----------
Computer Services -- 0.6%
DynCorp International, Inc. FRS
BTL-B
8.03% (1 ML+6.00%)
due 08/18/2025.......................... 560,000 546,000
Presidio LLC FRS
BTL-B
4.79% (1 ML+2.75%)
due 02/02/2024.......................... 14,831 14,849
Presidio LLC FRS
BTL-B
4.85%-5.07% (3 ML+2.75%)
due 02/02/2024.......................... 531,404 532,069
Principal Value
Security Description Amount (Note 2)
Computer Services (continued)
Tempo Acquisition LLC FRS
BTL-B
5.04% (1 ML+3.00%)
due 05/01/2024.................... $ 962,838 $ 965,485
----------
2,058,403
----------
Computer Software -- 1.0%
Rackspace Hosting, Inc. FRS
1st Lien
5.29% (3 ML+3.00%)
due 11/03/2023.................... 892,005 816,185
Vertafore, Inc. FRS
1st Lein
5.29% (1 ML+3.25%)
due 07/02/2025.................... 2,858,400 2,775,506
----------
3,591,691
----------
Computers-Integrated Systems -- 0.3%
Everi Payments, Inc. FRS
BTL-B
5.04% (1 ML+3.00%)
due 05/09/2024.................... 1,100,596 1,100,981
----------
Consulting Services -- 0.5%
AlixPartners LLP FRS
BTL
4.79% (1 ML+2.75%)
due 04/04/2024.................... 1,688,129 1,688,731
----------
Consumer Products-Misc. -- 0.2%
Edgewell Personal Care Co. FRS
BTL-B
coupon TBD
due 09/19/2026.................... 830,000 821,700
----------
Containers-Metal/Glass -- 0.9%
Anchor Glass Container Corp. FRS
1st Lien
4.79%-4.81% (1 ML+2.75%)
due 12/07/2023.................... 575,787 451,993
Anchor Glass Container Corp. FRS
2nd Lien
9.81% (1 ML+7.75%)
due 12/07/2024.................... 796,000 398,000
Berlin Packaging LLC FRS
1st Lein
5.05%-5.11% (1 ML+3.00%)
due 11/07/2025.................... 974,172 955,906
Berlin Packaging LLC FRS
1st Lein
5.11% (3 ML+3.00%)
due 11/07/2025.................... 18,266 17,923
BWAY Corp. FRS
BTL
5.59% (3 ML+3.25%)
due 04/03/2024.................... 1,241,425 1,214,527
----------
3,038,349
----------
61
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount (Note 2)
LOANS(7)(8)(9) (continued)
Containers-Paper/Plastic -- 1.5%
Berry Global, Inc. FRS
BTL-U
4.55% (1 ML+2.50%)
due 07/01/2026............................. $ 852,863 $ 856,449
Kloeckner Pentaplast of America, Inc. FRS
BTL
6.29% (1 ML+4.25%)
due 06/30/2022............................. 1,930,600 1,666,750
LABL, Inc. FRS
BTL
6.60% (1 ML+4.50%)
due 07/01/2026............................. 530,000 531,590
Patriot Container Corp. FRS
1st Lein
5.54% (1 ML+3.50%)
due 03/20/2025............................. 379,225 375,907
Reynolds Group Holdings, Inc. FRS
BTL
4.79% (1 ML+2.75%)
due 02/05/2023............................. 1,095,217 1,096,072
Trident TPI Holdings, Inc. FRS
BTL-B1
5.29% (1 ML+3.25%)
due 10/17/2024............................. 614,740 592,199
----------
5,118,967
----------
Cosmetics & Toiletries -- 0.6%
Parfums Holding Co., Inc. FRS
1st Lien
6.37% (3 ML+4.25%)
due 06/30/2024............................. 1,099,981 1,093,565
Revlon Consumer Products Corp. FRS
BTL-B
5.60% (1 ML+3.50%)
due 09/07/2023............................. 2,077 1,577
Revlon Consumer Products Corp. FRS
BTL-B
5.62% (3 ML+3.50%)
due 09/07/2023............................. 803,726 610,330
Sunshine Luxembourg VII SARL FRS
BTL
coupon TBD
due 10/01/2026............................. 535,000 537,006
----------
2,242,478
----------
Data Processing/Management -- 0.3%
Dun & Bradstreet Corp. FRS
BTL
7.05% (1 ML+5.00%)
due 02/06/2026............................. 955,000 960,969
----------
Diagnostic Kits -- 0.5%
Ortho-Clinical Diagnostics SA FRS
BTL
5.56% (3 ML+3.25%)
due 06/30/2025............................. 1,659,245 1,602,208
----------
Principal Value
Security Description Amount (Note 2)
Direct Marketing -- 0.3%
Red Ventures LLC FRS
BTL-B1
5.04% (1 ML+3.00%)
due 11/08/2024................................... $1,086,420 $1,089,815
----------
Disposable Medical Products -- 0.4%
Sotera Health Holdings LLC FRS
BTL
5.04% (1 ML+3.00%)
due 05/15/2022................................... 652,850 643,465
Sotera Health Holdings LLC FRS
BTL
5.57% (1 ML+3.50%)
due 05/15/2022................................... 902,738 898,788
----------
1,542,253
----------
Distribution/Wholesale -- 1.1%
American Builders & Contractors Supply Co., Inc.
FRS
BTL-B2
4.04% (1 ML+2.00%)
due 10/31/2023................................... 2,439,867 2,436,512
Spin Holdco, Inc. FRS
BTL-B1
5.57% (3 ML+3.25%)
due 11/14/2022................................... 625,129 613,017
Univar USA, Inc. FRS
BTL-B3
4.29% (1 ML+2.25%)
due 07/01/2024................................... 645,589 646,972
----------
3,696,501
----------
Diversified Minerals -- 0.2%
Covia Holdings Corp. FRS
BTL
6.31% (3 ML+4.00%)
due 06/01/2025................................... 932,220 756,962
----------
E-Commerce/Products -- 0.3%
Rodan & Fields LLC FRS
BTL
6.03% (1 ML+4.00%)
due 06/16/2025................................... 1,135,625 953,925
----------
E-Commerce/Services -- 0.4%
Hoya Midco LLC FRS
1st Lein
5.54% (1 ML+3.50%)
due 06/30/2024................................... 1,468,550 1,444,686
----------
Electric-Generation -- 0.5%
APLP Holdings LP FRS
BTL-B
4.79% (1 ML+2.75%)
due 04/13/2023................................... 811,429 810,414
TEX Operations Co., Ltd. FRS
BTL
4.04% (1 ML+2.00%)
due 08/04/2023................................... 521,521 523,151
62
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount (Note 2)
LOANS(7)(8)(9) (continued)
Electric-Generation (continued)
Vistra Operations Co. LLC FRS
BTL
4.02%-4.04% (1 ML+2.00%)
due 12/31/2025........................ $ 537,950 $ 539,211
----------
1,872,776
----------
Electric-Integrated -- 0.3%
Talen Energy Supply LLC FRS
BTL-B
5.79% (1 ML+3.75%)
due 07/08/2026........................ 915,000 911,569
----------
Enterprise Software/Service -- 1.7%
Air Newco LLC FRS
BTL-B
coupon TBD
due 10/09/2026........................ 465,000 460,350
APi Group De, Inc. FRS
BTL-B
coupon TBD
due 10/01/2026........................ 440,000 441,100
Applied Systems, Inc. FRS
1st Lein
5.10% (3 ML+3.00%)
due 09/19/2024........................ 295,188 294,713
Applied Systems, Inc. FRS
2nd Lien
9.10% (3 ML+7.00%)
due 09/19/2025........................ 205,000 206,922
Banff Merger Sub, Inc. FRS
BTL
6.29% (1 ML+4.25%)
due 10/02/2025........................ 2,103,267 2,023,408
Kronos, Inc. FRS
1st Lien
5.25% (3 ML+3.00%)
due 11/01/2023........................ 2,167,849 2,171,914
Kronos, Inc. FRS
2nd Lien
10.50% (3 ML+8.25%)
due 11/01/2024........................ 440,000 445,775
----------
6,044,182
----------
Finance-Auto Loans -- 0.4%
Capital Automotive LP FRS
1st Lein
4.55% (1 ML+2.50%)
due 03/24/2024........................ 696,167 696,167
Capital Automotive LP FRS
2nd Lien
8.04% (1 ML+6.00%)
due 03/24/2025........................ 657,272 658,093
----------
1,354,260
----------
Finance-Credit Card -- 1.2%
Blackhawk Network Holdings, Inc. FRS
1st Lien
5.04% (1 ML+3.00%)
due 06/15/2025........................ 1,482,631 1,476,452
Principal Value
Security Description Amount (Note 2)
Finance-Credit Card (continued)
Pi US Mergerco, Inc. FRS
BTL-B1
5.29% (1 ML+3.25%)
due 01/03/2025.......................... $2,669,855 $2,652,335
----------
4,128,787
----------
Finance-Mortgage Loan/Banker -- 0.6%
Ellie Mae, Inc. FRS
BTL
6.04% (1 ML+4.00%)
due 04/17/2026.......................... 1,240,000 1,240,517
Walter Investment Management Corp. FRS
BTL-B
8.52% due 06/30/2022+(2)(3)(4).......... 2,121,593 835,908
----------
2,076,425
----------
Food-Baking -- 0.3%
Hostess Brands LLC FRS
BTL-B
4.29% (1 ML+2.25%)
due 08/03/2022.......................... 316,961 316,565
Hostess Brands LLC FRS
BTL-B
4.37%-4.51% (3 ML+2.25%)
due 08/03/2022.......................... 714,611 713,718
----------
1,030,283
----------
Food-Catering -- 0.4%
TKC Holdings, Inc. FRS
1st Lein
5.80% (1 ML+3.75%)
due 02/01/2023.......................... 1,295,629 1,270,796
----------
Food-Confectionery -- 0.5%
Shearer's Foods LLC FRS
BTL-B
coupon TBD
due 03/30/2022.......................... 1,270,000 1,265,631
Shearer's Foods LLC FRS
2nd Lien
coupon TBD
due 06/30/2022.......................... 500,000 495,625
----------
1,761,256
----------
Food-Dairy Products -- 0.5%
Chobani LLC FRS
1st Lein
5.54% (1 ML+3.50%)
due 10/10/2023.......................... 715,575 707,824
Milk Specialties Co. FRS
BTL
6.04% (1 ML+4.00%)
due 08/16/2023.......................... 976,617 937,552
----------
1,645,376
----------
Food-Flour & Grain -- 0.3%
CHG PPC Parent LLC FRS
BTL-B
4.79% (1 ML+2.75%)
due 03/31/2025.......................... 1,145,899 1,143,034
----------
63
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount (Note 2)
LOANS(7)(8)(9) (continued)
Food-Meat Products -- 0.4%
JBS USA LUX SA FRS
BTL-B
4.55% (1 ML+2.50%)
due 05/01/2026........................... $1,328,325 $1,334,136
----------
Food-Misc./Diversified -- 0.7%
Dole Food Co., Inc. FRS
BTL-B
4.79%-4.80% (1 ML+2.75%)
due 04/06/2024........................... 342,508 337,884
H-Food Holdings LLC FRS
1st Lien
5.73% (1 ML+3.69%)
due 05/23/2025........................... 967,750 904,846
Sigma Bidco BV FRS
BTL-B2
5.32% (3 ML+3.00%)
due 07/02/2025........................... 1,218,066 1,211,468
----------
2,454,198
----------
Food-Retail -- 0.2%
Albertson's LLC FRS
BTL-B7
4.79% (1 ML+2.75%)
due 11/17/2025........................... 539,680 542,800
Albertson's LLC FRS
BTL-B
4.79% (1 ML+2.75%)
due 08/17/2026........................... 272,289 273,820
----------
816,620
----------
Food-Wholesale/Distribution -- 0.3%
Sage BorrowCo LLC FRS
BTL-B
6.85% (3 ML+4.75%)
due 06/20/2026........................... 498,750 500,309
US Foods, Inc. FRS
BTL-B
coupon TBD
due 09/13/2026........................... 445,000 446,321
----------
946,630
----------
Gambling (Non-Hotel) -- 0.6%
PCI Gaming Authority FRS
BTL
5.04% (1 ML+3.00%)
due 05/29/2026........................... 1,142,138 1,146,706
Scientific Games International, Inc. FRS
BTL-B5
4.79% (1 ML+2.75%)
due 08/14/2024........................... 179,180 177,484
Scientific Games International, Inc. FRS
BTL-B5
4.90% (2 ML+2.75%)
due 08/14/2024........................... 741,795 734,775
----------
2,058,965
----------
Principal Value
Security Description Amount (Note 2)
Hazardous Waste Disposal -- 0.3%
GFL Environmental, Inc. FRS
BTL
5.04% (1 ML+3.00%)
due 05/30/2025................................ $1,128,571 $1,117,568
----------
Hotels/Motels -- 0.4%
Playa Resorts Holding BV FRS
BTL
4.79% (1 ML+2.75%)
due 04/29/2024................................ 1,342,776 1,302,493
----------
Housewares -- 0.4%
American Greetings Corp. FRS
BTL
6.54% (1 ML+4.50%)
due 04/06/2024................................ 647,060 643,016
Libbey Glass, Inc. FRS
BTL
5.04% (1 ML+3.00%)
due 04/09/2021................................ 856,718 654,318
----------
1,297,334
----------
Human Resources -- 0.3%
CHG Healthcare Services, Inc. FRS
1st Lien
5.04% (1 ML+3.00%)
due 06/07/2023................................ 877,636 875,003
----------
Independent Power Producers -- 0.3%
Calpine Corp. FRS
BTL-B1
4.86% (3 ML+2.75%)
due 04/05/2026................................ 1,201,988 1,205,494
----------
Insurance-Property/Casualty -- 0.7%
Sedgwick Claims Management Services, Inc. FRS
BTL
5.29% (1 ML+3.25%)
due 12/31/2025................................ 2,547,491 2,504,821
----------
Internet Gambling -- 0.2%
GVC Holdings PLC FRS
BTL-B2
4.45% (6 ML+2.25%)
due 03/29/2024................................ 743,675 743,907
----------
Machinery-Electrical -- 0.7%
Brookfield WEC Holdings, Inc. FRS
1st Lien
5.54% (1 ML+3.50%)
due 08/01/2025................................ 1,614,483 1,618,116
Vertiv Group Corp. FRS
BTL-B
6.04% (1 ML+4.00%)
due 11/30/2023................................ 1,010,000 958,659
----------
2,576,775
----------
Machinery-General Industrial -- 0.7%
Gardner Denver, Inc. FRS
BTL-B
4.79% (1 ML+2.75%)
due 07/30/2024................................ 1,422,128 1,425,264
64
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount (Note 2)
LOANS(7)(8)(9) (continued)
Machinery-General Industrial (continued)
Zodiac Pool Solutions LLC FRS
BTL
4.29% (1 ML+2.25%)
due 07/02/2025................. $1,146,793 $1,147,151
----------
2,572,415
----------
Machinery-Pumps -- 0.7%
NN, Inc. FRS
BTL
5.30% (1 ML+3.25%)
due 04/02/2021................. 508,500 499,601
NN, Inc. FRS
BTL-B
5.79% (1 ML+3.75%)
due 10/19/2022................. 703,342 691,034
Titan Acquisition, Ltd. FRS
BTL
5.04% (1 ML+3.00%)
due 03/28/2025................. 1,121,507 1,073,375
----------
2,264,010
----------
Medical Information Systems -- 0.9%
Emerald TopCo, Inc. FRS
BTL
5.54% (1 ML+3.50%)
due 07/24/2026................. 530,000 527,681
IQVIA, Inc. FRS
BTL-B
3.85% (3 ML+1.75%)
due 06/11/2025................. 1,283,750 1,284,954
Navicure, Inc. FRS
BTL-B
coupon TBD
due 09/18/2026................. 305,000 303,475
Zelis Healthcare Corp. FRS
BTL-B
coupon TBD
due 09/30/2026................. 1,105,000 1,095,332
----------
3,211,442
----------
Medical Labs & Testing Services -- 0.8%
Envision Healthcare Corp. FRS
1st Lien
5.79% (1 ML+3.75%)
due 10/10/2025................. 1,942,986 1,582,723
Explorer Holdings, Inc. FRS
BTL
3.75% (3 ML+3.75%)
due 05/02/2023................. 258,977 258,653
Jaguar Holding Co. II FRS
BTL
4.54% (1 ML+2.50%)
due 08/18/2022................. 874,849 875,506
----------
2,716,882
----------
Principal Value
Security Description Amount (Note 2)
Medical Products -- 0.1%
Greatbatch, Ltd. FRS
BTL-B
5.05% (1 ML+3.00%)
due 10/27/2022................................ $ 387,980 $ 389,193
----------
Medical-Biomedical/Gene -- 0.0%
Aldevron LLC FRS
BTL-B
coupon TBD
due 09/19/2026................................ 130,000 130,325
----------
Medical-Drugs -- 0.3%
Bausch Health Americas, Inc. FRS
BTL
5.04% (1 ML+3.00%)
due 06/02/2025................................ 925,177 928,481
----------
Medical-Generic Drugs -- 0.3%
Amneal Pharmaceuticals LLC FRS
BTL-B
5.56% (1 ML+3.50%)
due 05/04/2025................................ 1,051,441 893,725
----------
Medical-Hospitals -- 1.3%
Accelerated Health Systems LLC FRS
BTL
5.54% (1 ML+3.50%)
due 10/31/2025................................ 878,362 878,362
AHP Health Partners, Inc. FRS
BTL
6.54% (1 ML+4.50%)
due 06/30/2025................................ 992,438 993,988
RegionalCare Hospital Partners Holdings, Inc.
FRS
BTL-B
6.55% (1 ML+4.50%)
due 11/17/2025................................ 1,121,525 1,121,875
Select Medical Corp. FRS
BTL-B
4.54% (1 ML+2.50%)
due 03/06/2025................................ 702 702
Select Medical Corp. FRS
BTL-B
4.58% (3 ML+2.50%)
due 03/06/2025................................ 859,423 858,886
Surgery Center Holdings, Inc. FRS
BTL
5.30% (1 ML+3.25%)
due 09/02/2024................................ 720,300 702,968
----------
4,556,781
----------
Medical-Outpatient/Home Medical -- 0.3%
21st Century Oncology, Inc. FRS
BTL-B
8.46% (3 ML+6.13%)
due 01/16/2023................................ 356,685 316,113
Gentiva Health Services, Inc. FRS
BTL-B
5.81% (1 ML+3.75%)
due 07/02/2025................................ 528,665 531,308
65
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount (Note 2)
LOANS(7)(8)(9) (continued)
Medical-Outpatient/Home Medical (continued)
National Mentor Holdings, Inc. FRS
1st Lien
6.30% (1 ML+4.25%)
due 03/09/2026...................... $ 215,467 $ 215,378
National Mentor Holdings, Inc. FRS
BTL-C
6.30% (1 ML+4.25%)
due 03/09/2026...................... 13,450 13,444
----------
1,076,243
----------
Metal Processors & Fabrication -- 0.5%
Crosby US Acquisition Corp. FRS
BTL-B
6.80% (1 ML+4.75%)
due 06/26/2026...................... 798,000 779,047
Sabre Industries, Inc. FRS
BTL
6.31% (1 ML+4.25%)
due 04/15/2026...................... 1,032,413 1,034,994
----------
1,814,041
----------
Motion Pictures & Services -- 0.3%
Delta 2 Lux SARL FRS
BTL-B3
4.54% (1 ML+2.50%)
due 02/01/2024...................... 1,114,690 1,099,363
----------
Non-Hazardous Waste Disposal -- 0.2%
Tunnel Hill Partners LP FRS
BTL-B
5.54% (1 ML+3.50%)
due 02/06/2026...................... 756,200 751,474
----------
Oil & Gas Drilling -- 0.1%
Paragon Offshore Finance Co.
Escrow Loans
7.25% due 07/18/2021+(4)............ 1,745 0
Seadrill Operating LP FRS
BTL
8.10% (3 ML+6.00%)
due 02/21/2021...................... 752,119 417,802
----------
417,802
----------
Oil Companies-Exploration & Production -- 0.7%
California Resources Corp. FRS
BTL
6.79% (1 ML+4.75%)
due 12/31/2022...................... 650,000 582,156
Fieldwood Energy LLC FRS
1st Lien
7.51% (3 ML+5.25%)
due 04/11/2022...................... 1,085,382 934,786
Fieldwood Energy LLC FRS
2nd Lien
9.51% (3 ML+7.25%)
due 04/11/2023...................... 128,766 94,643
Gavilan Resources LLC FRS
2nd Lien
8.04% (1 ML+6.00%)
due 03/01/2024...................... 470,000 202,100
Principal Value
Security Description Amount (Note 2)
Oil Companies-Exploration & Production (continued)
Ultra Resources, Inc. FRS
BTL
6.05% (1 ML+3.75%)
due 04/12/2024(10)....................... $ 702,399 $ 462,179
----------
2,275,864
----------
Oil Refining & Marketing -- 0.4%
Citgo Holding, Inc. FRS
BTL
9.04% (1 ML+7.00%)
due 08/01/2023........................... 265,000 269,637
CITGO Petroleum Corp. FRS
BTL-B
7.10% (3 ML+5.00%)
due 03/28/2024........................... 1,044,750 1,047,362
----------
1,316,999
----------
Oil-Field Services -- 0.7%
McDermott Technology Americas, Inc. FRS
BTL
7.10% (3 ML+5.00%)
due 05/09/2025........................... 2,015,073 1,272,295
MRC Global US, Inc. FRS
BTL
5.04% (1 ML+3.00%)
due 09/20/2024........................... 1,325,629 1,323,972
----------
2,596,267
----------
Paper & Related Products -- 0.1%
Clearwater Paper Corp. FRS
BTL-B
5.31% (3 ML+3.25%)
due 07/26/2026........................... 250,000 250,625
----------
Pharmacy Services -- 0.4%
Change Healthcare Holdings LLC FRS
BTL
4.54% (1 ML+2.50%)
due 03/01/2024........................... 1,278,118 1,271,128
----------
Pipelines -- 0.5%
Medallion Midland Acquisition LLC FRS
BTL
5.29% (1 ML+3.25%)
due 10/30/2024........................... 1,242,518 1,204,208
Traverse Midstream Partners LLC FRS
BTL
6.05% (1 ML+4.00%)
due 09/27/2024........................... 650,589 570,892
----------
1,775,100
----------
Pollution Control -- 0.1%
Filtration Group Corp. FRS
BTL
5.04% (1 ML+3.00%)
due 03/29/2025........................... 388,597 389,326
----------
66
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount (Note 2)
LOANS(7)(8)(9) (continued)
Printing-Commercial -- 0.3%
Fort Dearborn Holding Co., Inc. FRS
1st Lien
6.10% (1 ML+4.00%)
due 10/19/2023................................. $ 30,876 $ 30,259
Fort Dearborn Holding Co., Inc. FRS
1st Lien
6.31% (3 ML+4.00%)
due 10/19/2023................................. 1,090,068 1,068,266
----------
1,098,525
----------
Professional Sports -- 0.6%
UFC Holdings LLC FRS
BTL
5.30% (1 ML+3.25%)
due 04/29/2026................................. 2,034,558 2,039,645
----------
Publishing-Books -- 0.2%
McGraw-Hill Global Education Holdings LLC FRS
BTL-B
6.04% (1 ML+4.00%)
due 05/04/2022................................. 844,196 786,157
----------
Publishing-Periodicals -- 0.2%
Meredith Corp. FRS
BTL-B1
4.79% (1 ML+2.75%)
due 01/31/2025................................. 526,651 527,310
----------
Real Estate Investment Trusts -- 0.6%
iStar, Inc. FRS
BTL
4.81% (1 ML+2.75%)
due 06/28/2023................................. 1,426,938 1,430,505
Uniti Group, Inc. FRS
BTL
7.04% (1 ML+5.00%)
due 10/24/2022................................. 753,687 733,903
----------
2,164,408
----------
Real Estate Operations & Development -- 0.1%
Lightstone Holdco LLC FRS
BTL-B
5.79% (1 ML+3.75%)
due 01/30/2024................................. 463,045 442,787
Lightstone Holdco LLC FRS
BTL-C
5.79% (1 ML+3.75%)
due 01/30/2024................................. 26,117 24,974
----------
467,761
----------
Recycling -- 0.1%
Gopher Resource LLC FRS
BTL
5.29% (1 ML+3.25%)
due 03/06/2025................................. 252,380 247,964
----------
Research & Development -- 0.1%
PAREXEL International Corp. FRS
BTL
4.79% (1 ML+2.75%)
due 09/27/2024................................. 203,124 192,612
----------
Principal Value
Security Description Amount (Note 2)
Retail-Arts & Crafts -- 0.2%
Michaels Stores, Inc. FRS
BTL
4.54%-4.55% (1 ML+2.50%)
due 01/30/2023............................. $ 735,000 $ 717,544
----------
Retail-Bedding -- 0.2%
Serta Simmons Bedding LLC FRS
1st Lien
5.54%-5.56% (1 ML+3.50%)
due 11/08/2023............................. 955,500 586,040
----------
Retail-Building Products -- 0.3%
SiteOne Landscape Supply Holding LLC FRS
BTL-E
4.80% (1 ML+2.75%)
due 10/29/2024............................. 887,267 887,267
----------
Retail-Major Department Stores -- 0.3%
Neiman Marcus Group, Ltd. LLC FRS
BTL
8.06% (1 ML+6.00%)
due 10/25/2023............................. 1,197,994 915,468
----------
Retail-Pet Food & Supplies -- 0.1%
PetSmart, Inc. FRS
BTL-B2
6.04% (1 ML+4.00%)
due 03/11/2022............................. 473,678 461,639
----------
Retail-Sporting Goods -- 0.4%
Bass Pro Group LLC FRS
BTL
7.04% (1 ML+5.00%)
due 09/25/2024............................. 1,496,579 1,439,053
----------
Retail-Vitamins & Nutrition Supplements -- 0.2%
Isagenix International LLC FRS
BTL
7.85% (3 ML+5.75%)
due 06/14/2025............................. 895,057 675,768
----------
Rubber/Plastic Products -- 0.8%
Gates Global LLC FRS
BTL-B2
4.79% (1 ML+2.75%)
due 04/01/2024............................. 1,901,688 1,873,163
U.S. Farathane LLC FRS
BLT-B4
5.54% (1 ML+3.50%)
due 12/23/2021............................. 962,123 904,395
----------
2,777,558
----------
Security Services -- 0.5%
Prime Security Services Borrower, LLC FRS
BTL-B1
coupon TBD
due 09/23/2026............................. 1,860,000 1,837,414
----------
Soap & Cleaning Preparation -- 0.7%
Diamond BC BV FRS
BTL
5.26% (3 ML+3.00%)
due 09/06/2024............................. 1,085,663 1,032,736
67
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal Value
Security Description Amount (Note 2)
LOANS(7)(8)(9) (continued)
Soap & Cleaning Preparation (continued)
KIK Custom Products, Inc. FRS
BTL
6.26% (3 ML+4.00%)
due 05/15/2023............................ $ 809,167 $ 765,674
Zep, Inc. FRS
1st Lein
6.10% (3 ML+4.00%)
due 08/12/2024............................ 749,700 582,892
----------
2,381,302
----------
Telecom Services -- 0.8%
Securus Technologies Holdings LLC FRS
1st Lien
6.54% (3 ML+4.50%)
due 11/01/2024............................ 560,467 496,364
Securus Technologies Holdings LLC FRS
2nd Lien
10.29% (1 ML+8.25%)
due 11/01/2025............................ 505,000 441,875
Telenet Financing USD LLC FRS
BTL-AN
4.28% (1 ML+2.25%)
due 08/15/2026............................ 1,125,000 1,125,234
West Corp. FRS
BTL-B
6.04% (1 ML+4.00%)
due 10/10/2024............................ 678,889 603,646
----------
2,667,119
----------
Telecommunication Equipment -- 0.2%
CommScope, Inc. FRS
BTL-B
5.29% (1 ML+3.25%)
due 04/06/2026............................ 630,000 627,113
----------
Telephone-Integrated -- 0.1%
Consolidated Communications, Inc. FRS
BTL-B
5.05% (1 ML+3.00%)
due 10/04/2023............................ 354,092 338,158
----------
Theaters -- 0.7%
CDS U.S. Intermediate Holdings, Inc. FRS
BTL-B
5.85% (3 ML+3.75%)
due 07/08/2022............................ 1,214,795 1,148,741
Cineworld, Ltd. FRS
BTL
4.29% (1 ML+2.25%)
due 02/28/2025............................ 1,180,816 1,173,140
----------
2,321,881
----------
Veterinary Diagnostics -- 0.3%
NVA Holdings, Inc. FRS
BTL-B3
4.79% (1 ML+2.75%)
due 02/02/2025............................ 1,024,452 1,023,491
Principal
Amount/ Value
Security Description Shares (Note 2)
Veterinary Diagnostics (continued)
NVA Holdings, Inc. FRS
BTL-B4
5.54% (1 ML+3.50%)
due 02/02/2025............................... $ 74,813 $ 74,719
------------
1,098,210
------------
Vitamins & Nutrition Products -- 0.1%
HLF Financing SARL LLC FRS
BTL-B
5.29% (1 ML+3.25%)
due 08/18/2025............................... 297,000 296,894
------------
Total Loans
(cost $183,404,415).......................... 176,253,615
------------
FOREIGN GOVERNMENT OBLIGATIONS -- 0.2%
Sovereign -- 0.2%
Arab Republic of Egypt
Senior Notes
7.60% due 03/01/2029*........................ 305,000 322,739
Republic of Turkey
Senior Notes
6.35% due 08/10/2024......................... 255,000 259,539
Republic of Turkey
Senior Notes
7.38% due 02/05/2025......................... 230,000 244,290
------------
Total Foreign Government Obligations
(cost $808,206).............................. 826,568
------------
COMMON STOCKS -- 0.2%
Advertising Sales -- 0.0%
Clear Channel Outdoor Holdings, Inc.+......... 56,198 141,619
------------
Electric-Generation -- 0.0%
Vistra Energy Corp. CVR+(11).................. 27,942 24,030
------------
Radio -- 0.0%
iHeartMedia, Inc., Class A+................... 2,196 32,940
iHeartMedia, Inc., Class B+(11)............... 29 435
------------
33,375
------------
Television -- 0.2%
ION Media Networks, Inc.+(4)(11).............. 660 509,850
------------
Total Common Stocks
(cost $317,650).............................. 708,874
------------
EXCHANGE-TRADED FUNDS -- 0.9%
iShares iBoxx $ High Yield Corporate Bond ETF. 17,225 1,501,503
SPDR Bloomberg Barclays High Yield Bond ETF... 14,216 1,545,848
------------
Total Exchange-Traded Funds
(cost $3,041,442)............................ 3,047,351
------------
PREFERRED SECURITIES -- 0.2%
Diversified Banking Institutions -- 0.2%
GMAC Capital Trust I FRS
Series 2
7.94% (3 ML+5.79%)
(cost $770,413).............................. 30,000 786,300
------------
68
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Principal
Amount/ Value
Security Description Shares (Note 2)
PREFERRED SECURITIES/CAPITAL SECURITIES -- 0.4%
Banks-Super Regional -- 0.3%
KeyCorp.
Series D
5.00% due 09/15/2026(12)................... $ 880,000 $ 909,700
------------
Insurance-Multi-line -- 0.1%
Voya Financial, Inc.
5.65% due 05/15/2053....................... 460,000 485,098
------------
Total Preferred Securities/Capital Securities
(cost $1,355,371).......................... 1,394,798
------------
WARRANTS -- 0.1%
Diversified Banking Institutions -- 0.1%
iHeartMedia, Inc.
Expires 05/01/2039+
(cost $357,621)............................ 21,674 314,273
------------
Total Long-Term Investment Securities
(cost $350,073,620)........................ 340,739,668
------------
SHORT-TERM INVESTMENT SECURITIES -- 4.7%
Registered Investment Companies -- 2.7%
State Street Institutional U.S. Government
Money Market Fund, Premier Class
1.88%(13).................................. 9,517,887 9,517,887
------------
U.S. Government Treasuries -- 2.0%
United States Treasury Bills
2.41% due 10/24/2019....................... $7,000,000 6,991,983
------------
Total Short-Term Investment Securities
(cost $16,507,242)......................... 16,509,870
------------
TOTAL INVESTMENTS
(cost $366,580,862)(14).................... 102.7% 357,249,538
Liabilities in excess of other assets......... (2.7) (9,514,594)
---------- ------------
NET ASSETS 100.0% $347,734,944
========== ============
--------
* Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be sold in transactions exempt from
registration, normally to qualified institutional buyers. The Fund has no
right to demand registration of these securities. At September 30, 2019,
the aggregate value of these securities was $105,266,803 representing
30.3% of net assets.
+ Non-income producing security
(1) PIK ("Payment-in-Kind") security--Income may be paid in additional
securities or cash at the discretion of the issuer. The security is
currently paying interest in cash at the coupon rate listed.
(2) Security in default of interest.
(3) Company has filed for bankruptcy protection.
(4) Securities classified as Level 3 (see Note 2).
(5) Security in default of interest and principal at maturity.
(6) PIK ("Payment-in-Kind") security--Income may be paid in additional
securities or cash at the discretion of the issuer. The security is
currently paying interest in the form of additional securities at the
coupon rate listed.
(7) Senior loans in the Fund are generally subject to mandatory and/or
optional prepayment. Because of these mandatory prepayment conditions and
because there may be significant economic incentives for a borrower to
prepay, prepayments may occur. As a result, the actual remaining maturity
may be substantially less than the stated maturities shown.
(8) The Fund invests in senior loans which generally pay interest at rates
which are periodically re-determined by reference to a base lending rate
plus a premium. These base lending rates are generally either the lending
rate offered by one or more major European banks, such as the London
Inter-Bank Offered Rate ("LIBOR") or the prime rate offered by one or more
major United States banks, or the certificate of deposit rate. Senior
loans are generally considered to be restrictive in that the Fund is
ordinarily contractually obligated to receive approval from the Agent Bank
and/or borrower prior to the disposition of a senior loan.
(9) All loans in the Fund were purchased through assignment agreements unless
otherwise indicated.
(10) PIK ("Payment-in-Kind") security--Income may be paid in additional
securities or cash at the discretion of the issuer. The security is
currently paying interest in cash at 5.80%. The security is also currently
paying interest in the form of additional loans at 0.25%.
(11) Denotes a restricted security that: (a) cannot be offered for public sale
without first being registered, or being able to take advantage of an
exemption from registration, under the Securities Act of 1933, as amended
(the "1933 Act"); (b) is subject to a contractual restriction on public
sales; or (c) is otherwise subject to a restriction on sales by operation
of applicable law. Restricted securities are valued pursuant to Note
2. Certain restricted securities held by the Fund may not be sold except
in exempt transactions or in a public offering registered under the 1933
Act. The Fund has no right to demand registration of these securities. The
risk of investing in certain restricted securities is greater than the
risk of investing in the securities of widely held, publicly traded
companies. To the extent applicable, lack of a secondary market and resale
restrictions may result in the inability of a Fund to sell a security at a
fair price and may substantially delay the sale of the security. In
addition, certain restricted securities may exhibit greater price
volatility than securities for which secondary markets exist. As of
September 30, 2019, the Fund held the following restricted securities:
Value % of
Acquisition Acquisition Per Net
Description Date Shares Cost Value Share Assets
----------- ----------- ------ ----------- -------- ------- ------
Common Stocks
iHeartMedia, Inc.,
Class B............ 05/07/2019 29 $522 $ 435 $ 15.00 0.00%
ION Media Networks,
Inc................ 12/21/2016 660 7 509,850 772.50 0.14
Vistra Energy Corp.
CVR................ 10/06/2016 27,942 0 24,030 0.86 0.01
-------- ----
$534,315 0.15%
======== ====
(12) Perpetual maturity--maturity date reflects the next call date.
(13) The rate shown is the 7-day yield as of September 30, 2019.
(14) See Note 5 for cost of investments on a tax basis.
BTL --Bank Term Loan
CVR --Contingent Value Rights
ETF --Exchange-Traded Fund
TBD --Senior loan purchased on a when-issued or delayed-delivery basis. Certain
details associated with this purchase are not known prior to the
settlement date of the transaction. In addition, senior loans typically
trade without accrued interest and therefore a coupon rate is not
available prior to the settlement.
FRS --Floating Rate Security
The rates shown on FRS are the current interest rates at September 30, 2019 and
unless noted otherwise, the dates shown are the original maturity dates.
69
AIG Flexible Credit Fund
PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
(continued)
Index Legend
1 ML -- 1 Month USD Libor
2 ML -- 2 Month USD Libor
3 ML -- 3 Month USD Libor
6 ML -- 6 Month USD Libor
The following is a summary of the inputs used to value the Fund's net assets as
of September 30, 2019 (see Note 2):
Level 1 -- Unadjusted Level 2 -- Other Level 3 -- Significant
Quoted Prices Observable Inputs Unobservable Inputs Total
--------------------- ----------------- ---------------------- ------------
ASSETS:
Investments at Value:*
Asset Backed Securities................. $ -- $ 367,139 $ -- $ 367,139
U.S. Corporate Bonds & Notes:
Rubber/Plastic Products............... -- -- 0 0
Other Industries...................... -- 127,873,053 -- 127,873,053
Foreign Corporate Bonds & Notes:
Special Purpose Entity................ -- -- 0 0
Other Industries...................... -- 29,167,697 -- 29,167,697
Loans:
Finance-Mortgage Loan/Banker.......... -- 1,240,517 835,908 2,076,425
Oil & Gas Drilling.................... -- 417,802 0 417,802
Other Industries...................... -- 173,759,388 -- 173,759,388
Foreign Government Obligations.......... -- 826,568 -- 826,568
Common Stocks:
Advertising Sales..................... 141,619 -- -- 141,619
Electric-Generation................... -- 24,030 -- 24,030
Radio................................. 32,940 435 -- 33,375
Television............................ -- -- 509,850 509,850
Exchange-Traded Funds................... 3,047,351 -- -- 3,047,351
Preferred Securities.................... 786,300 -- -- 786,300
Preferred Securities/Capital Securities. -- 1,394,798 -- 1,394,798
Warrants................................ -- 314,273 -- 314,273
Short-Term Investment Securities:
Registered Investment Companies....... 9,517,887 -- -- 9,517,887
U.S. Government Treasuries............ -- 6,991,983 -- 6,991,983
----------- ------------ ---------- ------------
Total Investments at Value.............. $13,526,097 $342,377,683 $1,345,758 $357,249,538
=========== ============ ========== ============
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
At the beginning and end of the reporting period, Level 3 investments in
securities were not considered a material portion of the Fund. There were no
material Level 3 transfers during the reporting period.
See Notes to Financial Statements
70
SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited)
Note 1. Organization
The SunAmerica Income Funds (the "Trust") is a diversified open-end
management investment company organized as a Massachusetts business trust.
The Trust currently consists of three different series (each, a "Fund" and
collectively, the "Funds"). Each Fund is a separate series of the Trust with
distinct investment objectives and/or strategies. Each Fund is managed by
SunAmerica Asset Management, LLC (the "Adviser" or "SunAmerica"), an
indirect wholly-owned subsidiary of American International Group, Inc.
("AIG"). An investor may invest in one or more of the following Funds: AIG
U.S. Government Securities Fund ("U.S. Government Securities Fund"), AIG
Strategic Bond Fund ("Strategic Bond Fund"), and AIG Flexible Credit Fund
("Flexible Credit Fund"). The Funds are considered to be separate entities
for financial and tax reporting purposes.
The investment goals and principal investment techniques for each of the
Funds are as follows:
U.S. Government Securities Fund seeks high current income consistent with
relative safety of capital by the active trading of U.S. Government
securities, without regard to the maturities of such securities. Under
normal market conditions, at least 80% of the Fund's net assets plus any
borrowing for investment purposes will be invested in such securities.
Strategic Bond Fund seeks a high level of total return by the active trading
of a broad range of bonds, including both investment grade and
non-investment grade U.S. and foreign bonds (which may include "junk
bonds"), U.S. and foreign government and agency obligations, and
mortgage-backed securities, without regard to the maturities of such
securities. Under normal market conditions, at least 80% of the Fund's net
assets plus any borrowing for investment purposes will be invested in bonds.
Flexible Credit Fund seeks a high level of total return by the active
trading in credit instruments. Under normal circumstances, at least 80% of
the Fund's net assets, plus any borrowings for investment purposes, will be
invested in credit instruments and derivative instruments and
exchange-traded funds ("ETFs") that are linked to, or provide investment
exposure to, credit instruments. The Fund considers a credit instrument to
be any debt instrument or instrument with debt-like characteristics,
including but not limited to, corporate and sovereign bonds, secured
floating rate loans and other institutionally traded secured floating rate
debt obligations ("Loans"), and securitized instruments, which are
securities backed by pools of assets such as mortgages, loans, or other
receivables. The credit instruments in which the Fund intends to primarily
invest are U.S. and non-U.S. below investment grade, high yield bonds
(commonly referred to as "junk bonds") and Loans.
Each Fund offers multiple classes of shares. The classes within each Fund
are presented in the Statements of Assets and Liabilities. The cost
structure for each class is as follows:
Class A shares are offered at net asset value per share plus an initial
sales charge. Additionally, purchases of Class A shares in amounts of
$1,000,000 or more will be purchased at net asset value but will be subject
to a contingent deferred sales charge on redemptions made within two years
of purchase.
Class B shares are offered without an initial sales charge, although a
declining contingent deferred sales charge may be imposed on redemptions
made within six years of purchase. Class B shares convert automatically to
Class A shares on the first business day of the month following the eighth
anniversary of the issuance of such Class B shares and at such time will be
subject to the lower distribution fee applicable to Class A shares.
Class C shares are offered at net asset value per share without an initial
sales charge and may be subject to a contingent deferred sales charge on
redemptions made within 12 months of purchase. Class C shares convert
automatically to Class A shares approximately ten years after purchase and
at such time will be subject to the lower distribution fee applicable to
Class A shares.
Class W shares are offered at net asset value per share. The class is
offered exclusively through advisory fee-based programs sponsored by certain
financial intermediaries and other programs. Class W shares of the Flexible
Credit Fund and the Strategic Bond Fund commenced operations effective
October 1, 2014 and January 29, 2015, respectively.
Each class of shares bears the same voting, dividend, liquidation and other
rights and conditions except as may otherwise be provided in the Trust's
registration statement. Class A, Class B and Class C shares each makes
distribution and account
71
SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited)
(continued)
maintenance and service fee payments under the distribution plan pursuant to
Rule 12b-1 under the Investment Company Act of 1940, as amended (the "1940
Act"), with Class B and Class C shares being subject to higher distribution
fee rates. Class W shares have not adopted 12b-1 Plans and make no payments
thereunder, however, Class W shares pay a service fee to the Funds'
distributor for administrative and shareholder services.
Indemnifications: The Trust's organizational documents provide current and
former officers and trustees with a limited indemnification against
liabilities arising out of the performance of their duties to the Trust. In
addition, pursuant to Indemnification Agreements between the Trust and each
of the current trustees who is not an "interested person," as defined in
Section 2(a)(19) of the 1940 Act, of the Trust (collectively, the
"Disinterested Trustees"), the Trust provides the Disinterested Trustees
with a limited indemnification against liabilities arising out of the
performance of their duties to the Trust, whether such liabilities are
asserted during or after their service as trustees. In addition, in the
normal course of business, the Trust enters into contracts that contain the
obligation to indemnify others. The Trust's maximum exposure under these
arrangements is unknown. Currently, however, the Trust expects the risk of
loss to be remote.
Note 2. 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 Funds are
considered investment companies under GAAP and follow the accounting and
reporting guidance applicable to investment companies. The following is a
summary of significant accounting policies consistently followed by the
Trust in the preparation of its financial statements:
Security Valuation: In accordance with the authoritative guidance on fair
value measurements and disclosures under GAAP, the Funds disclose the fair
value of their investments in a hierarchy that prioritizes the inputs to
valuation techniques used to measure the fair value. In accordance with
GAAP, fair value is defined as the price that the Funds would receive upon
selling an asset or transferring a liability in a timely transaction to an
independent third party in the principal or most advantageous market. GAAP
establishes a three-tier hierarchy to provide more transparency around the
inputs used to measure fair value and to establish classification of fair
value measurements for disclosure purposes. Inputs refer broadly to the
assumptions that market participants would use in pricing the asset or
liability, including assumptions about risk. Inputs may be observable or
unobservable. Observable inputs are inputs that reflect the assumptions
market participants would use in pricing the asset or liability developed
based on market data obtained from sources independent of the reporting
entity. Unobservable inputs are inputs that reflect the reporting entity's
own assumptions about the assumptions market participants would use in
pricing the asset or liability developed based on the best information
available in the circumstances. The three-tiers are as follows:
Level 1 -- Unadjusted quoted prices in active markets for identical
securities
Level 2 -- Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
referenced indices, quoted prices in inactive markets, adjusted quoted
prices in active markets, adjusted quoted prices on foreign equity
securities that were adjusted in accordance with pricing procedures approved
by the Board of Trustees ("the Board"), etc.)
Level 3 -- Significant unobservable inputs (includes inputs that reflect the
Funds' own assumptions about the assumptions market participants would use
in pricing the security, developed based on the best information available
under the circumstances)
Changes in valuation techniques may result in transfers in or out of an
investment's assigned Level within the hierarchy. The methodology used for
valuing investments is not necessarily an indication of the risk associated
with investing in those investments and the determination of the
significance of a particular input to the fair value measurement in its
entirety requires judgment and consideration of factors specific to each
security.
The availability of observable inputs can vary from security to security and
is affected by a wide variety of factors, including, for example, the type
of security, whether the security is recently issued and not yet established
in the marketplace, the liquidity of markets, and other characteristics
particular to the security. To the extent that valuation is based on models
or inputs that are less observable or unobservable in the market, the
determination of fair value requires more judgment. Accordingly, the degree
of judgment exercised in determining fair value is greatest for instruments
categorized in Level 3.
72
SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited)
(continued)
The summary of each Fund's asset and liabilities classified in the fair
value hierarchy as of September 30, 2019 is reported on a schedule at the
end of 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 review of a number of factors, including developments in
foreign markets, the performance of U.S. securities markets, and the
performance of instruments trading in U.S. markets that represent foreign
securities and baskets of foreign securities. If a Fund determines that
closing prices do not reflect the fair value of the securities, the Fund
will adjust the previous closing prices in accordance with pricing
procedures approved by the Board to reflect what it believes to be the fair
value of the securities as of the close of regular trading on the NYSE. The
Funds may also fair value securities in other situations, for example, when
a particular foreign market is closed but a Fund is open. For foreign equity
securities and foreign equity futures contracts, the Funds use an outside
pricing service to provide it with closing market prices and information
used for adjusting those prices and when so adjusted, such securities and
futures are generally categorized as Level 2.
Bonds, debentures and other debt securities are valued at evaluated bid
prices obtained for the day of valuation from a Board-approved pricing
service, and are generally categorized as Level 2. The pricing service may
use valuation models or matrix pricing which considers information with
respect to comparable bond and note transactions, quotations from bond
dealers, or by reference to other securities that are considered comparable
in such characteristics as rating, interest rate, and maturity date, option
adjusted spread models, prepayments projections, interest rate spreads, and
yield curves to determine current value. If a price is unavailable from a
Board-approved pricing service, the securities may be priced at the mean of
two independent quotes obtained from brokers.
Senior floating rate loans ("Loans") are valued at the average of available
bids in the market for such Loans, as provided by a Board-approved loan
pricing service, and are generally categorized as Level 2.
Investments in registered investment companies that do not trade on an
exchange are valued at the end of day net asset value per share. Investments
in registered investment companies that trade on an exchange are valued at
the last sales price or official closing price as of the close of the
customary trading session on the exchange where the security is principally
traded. Investments in registered investment companies are generally
categorized as Level 1.
Forward foreign currency contracts ("forward contracts") are valued at the
4:00 p.m. Eastern Time forward rate and are generally categorized as Level 2.
Other securities are valued on the basis of last sale or bid price (if a
last sale price is not available) which is, in the opinion of the Adviser,
the broadest and most representative market, that may be either a securities
exchange or over-the-counter market and are generally categorized as Level 1
or Level 2.
The Board is responsible for the share valuation process and has adopted
policies and procedures (the "PRC Procedures") for valuing the securities
and other assets held by the Funds, including procedures for the fair
valuation of securities and other assets for which market quotations are not
readily available or are unreliable. The PRC Procedures provide for the
establishment of a pricing review committee, which is responsible for, among
other things, making certain determinations in connection with the
73
SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited)
(continued)
Trust's fair valuation procedures. Securities for which market quotations
are not readily available or the values of which may be significantly
impacted by the occurrence of developments or significant events are
generally categorized as Level 3. There is no single standard for making
fair value determinations, which may result in prices that vary from those
of other funds.
Derivative Instruments:
Forward Foreign Currency Contracts: During the period, the Strategic Bond
Fund used forward contracts to attempt to protect securities and related
receivables and payables against changes in future foreign exchange rates.
A forward contract is an agreement between two parties to buy or sell
currency at a set price on a future date. The market value of the contract
will fluctuate with changes in currency exchange rates. The contract is
marked-to-market daily using the forward rate and the cumulative change in
market value is recorded by a Fund as unrealized appreciation or
depreciation. On the settlement date, a Fund records either realized gains
or losses equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed.
Risks to the Funds of entering into forward contracts include counterparty
risk, market risk and illiquidity risk. Counterparty risk arises upon
entering into these contracts from the potential inability of counterparties
to meet the terms of their contracts. If the counterparty defaults, a Fund's
loss will generally consist of the net amount of contractual payments that
the Fund has not yet received though the Fund's maximum exposure due to
counterparty risk could extend to the notional amount of the contract.
Market risk is the risk that the value of the forward contract will
depreciate due to unfavorable changes in the exchange rates. These contracts
may involve market risk in excess of the unrealized appreciation or
depreciation reported on the Statements of Assets and Liabilities.
Illiquidity risk arises because the secondary market for forwards may have
less liquidity relative to markets for other securities. Currency
transactions are also subject to risks different from those of other
portfolio transactions. Because currency control is of great importance to
the issuing governments and influences economic planning and policy,
purchases and sales of currency and related instruments can be adversely
affected by government exchange controls, limitations or restrictions on
repatriation of currency, and manipulations or exchange restrictions imposed
by governments.
Forward foreign currency contracts outstanding at the end of the period, if
any, are reported on a schedule at the end of each Fund's Portfolio of
Investments.
Master Agreements: Certain Funds that hold derivative instruments and other
financial instruments may be a party to ISDA (International Swaps and
Derivatives Association, Inc.) Master Agreements or similar agreements
("Master Agreements") with certain counterparties that govern certain
instruments. Master Agreements may contain provisions regarding, among other
things, the parties' general obligations, representations, agreements,
collateral requirements, events of default and early termination. Collateral
can be in the form of cash or securities as agreed to by the Fund and
applicable counterparty. Collateral requirements are generally determined
based on a Fund's net position with each counterparty. Master Agreements may
also include certain provisions that require a Fund to post additional
collateral upon the occurrence of certain events, such as when a Fund's net
assets fall below a specified level. In addition, Master Agreements
typically specify certain standard termination events, such as failure of a
party to pay or deliver, credit support defaults and other events of
default. Termination events applicable to a Fund may also occur upon a
decline in the Fund's net assets below a specified level over a certain
period of time. Additional termination events applicable to counterparties
may occur upon a decline in a counterparty's long-term and short-term credit
ratings below a specified level, or upon a decline in the ratings of a
counterparty's credit support provider. Upon the occurrence of a termination
event, the other party may elect to terminate early and cause settlement of
all instruments outstanding pursuant to a particular Master Agreement,
including the payment of any losses and costs resulting from such early
termination, as reasonably determined by the terminating party. Any decision
by one or more of a Fund's counterparties to elect early termination could
cause a Fund to accelerate the payment of liabilities, which settlement
amounts could be in excess of the amount of assets that are already posted
as collateral. Typically, the Master Agreement will permit a single net
payment in the event of default. Note, however, that bankruptcy or
insolvency laws of a particular jurisdiction may impose restrictions on or
prohibitions against the right of offset in bankruptcy, insolvency or other
events. As a result, the early termination with respect to derivative
instruments subject to Master Agreements that are in a net liability
position could be material to a Fund's financial statements. The Funds do
not offset derivative assets and derivative liabilities that are subject to
netting arrangements in the Statements of Asset and Liabilities.
74
SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited)
(continued)
The following tables represent the value of derivatives held as of
September 30, 2019, by their primary underlying risk exposure. 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 September 30, 2019, please refer to the schedule at the end of each
Fund's Portfolio of Investments.
Liability
Asset Derivatives Derivatives
----------------- ------------
Foreign Foreign
Forward Forward
Exchange Exchange
Contracts Contracts
----------------- ------------
Foreign Foreign
Exchange Exchange
Fund Contracts(1) Contracts(2)
---- ----------------- ------------
Strategic Bond............................... $405,644 $30,858
======== =======
--------
Statement of Assets and Liabilities Location:
(1)Unrealized appreciation on forward foreign currency contracts
(2)Unrealized depreciation on forward foreign currency contracts
Change in
Unrealized
Realized Appreciation
Gain (Loss) on (Depreciation) on
Derivatives Derivatives
Recognized in Recognized in
Statement of Statement of
Operations Operations
-------------- -----------------
Foreign Foreign
Forward Forward
Exchange Exchange
Contracts Contracts
-------------- -----------------
Foreign Foreign
Exchange Exchange
Fund Contracts(1) Contracts(2)
---- -------------- -----------------
Strategic Bond............................... $605,328 $200,692
======== ========
--------
Statement of Operations Location:
(1)Net realized gain (loss) on forward contracts
(2)Change in unrealized appreciation (depreciation) on forward contracts
The following table represents the average monthly balances of derivatives
held during the six months ended September 30, 2019:
Average Amount
Outstanding
During the Year
---------------
Foreign
Exchange
Fund Contracts(1)
---- ---------------
Strategic Bond............................... $18,455,047
===========
--------
(1)Amounts represent notional amounts in US dollars.
The following tables set forth the Funds' derivative assets and liabilities
by counterparty, net of amounts available for offset under Master Agreements
and net of the related collateral pledged/(received) as of September 30,
2019. The repurchase agreements held by the Funds as of September 30, 2019,
are also subject to Master Agreements but are not included in the following
tables. See the Portfolio of Investments of each Fund and the Notes to the
Financial Statements for more information about the Funds' holdings in
repurchase agreements.
75
SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited)
(continued)
Strategic Bond
-------------------------------------------------------------------------------------------------
Derivative Assets(1) Derivative Liabilities(1)
------------------------------------ --------------------------------
Forward Forward Net
Foreign Foreign Derivative Collateral
Currency OTC Options Currency OTC Options Assets Pledged/
Counterparty Contracts Swaps Purchased Total Contracts Swaps Written Total (Liabilities) (Received)(2)
------------------------ --------- ------- --------- -------- --------- ------ ------- ------- ------------- -------------
JPMorgan Chase Bank N.A. $405,644 $ -- $ -- $405,644 $30,858 $ -- $ -- $30,858 $374,786 $ --
======== ======= ========= ======== ======= ====== ======= ======= ======== ============
--------------
Counterparty Net Amount(3)
------------------------ -------------
JPMorgan Chase Bank N.A. $374,786
========
--------
(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.
Mortgage-Backed Dollar Rolls: Certain Funds may enter into dollar rolls
using "to be announced" ("TBA") mortgage-backed securities ("TBA Rolls").
TBA Roll transactions involve the sale of mortgage or other asset backed
securities with the commitment to purchase substantially similar securities
on a specified future date. The Funds' policy is to record the components of
TBA Rolls as purchase/sale transactions. Any difference between the purchase
and sale price is recorded as a realized gain or loss on the date the
transaction is entered into. TBA Roll transactions involve the risk that the
market value of the securities held by a Fund may decline below the price of
the securities that the Fund has sold but is obligated to repurchase under
the agreement. In the event that the buyer of securities in a TBA Roll
transaction files bankruptcy or becomes insolvent, a Fund's use of the
proceeds from the sale of the securities may be restricted pending a
determination by the other party, or its trustee or receiver, whether to
enforce the Fund's obligation to repurchase the securities. Mortgage-Backed
Dollar Rolls outstanding at the end of the period, if any, are included in
investments purchased/sold on an extended settlement basis in the Statement
of Assets and Liabilities.
When-Issued Securities and Forward Commitments: Certain Funds may purchase
or sell when-issued securities (including TBA securities) that have been
authorized, but not yet issued in the market. In addition, a Fund may
purchase or sell securities on a forward commitment basis. A forward
commitment involves entering into a contract to purchase or sell securities,
typically on an extended settlement basis, for a fixed price at a future
date. The Funds may engage in when-issued or forward commitment transactions
in order to secure what is considered to be an advantageous price and yield
at the time of entering into the obligation. The purchase of securities on a
when-issued or forward commitment basis involves a risk of loss if the value
of the security to be purchased declines before the settlement date.
Conversely, the sale of securities on a when-issued or forward commitment
basis involves the risk that the value of the securities sold may increase
before the settlement date. Securities purchased or sold on a when-issued or
forward commitment basis outstanding at the end of the period, if any, are
included in investments purchased/sold on an extended settlement basis in
the Statement of Assets and Liabilities.
Loans: The Fund invests in senior loans which generally consist of direct
debt obligations of companies (collectively, "Borrowers"), primarily U.S.
companies and their affiliates, undertaken to finance the growth of the
Borrower's business internally and externally, or to finance a capital
restructuring. Transactions in senior loans may settle on a delayed basis.
Unsettled loans at the end of the period, if any, are included in
investments purchased/sold on an extended settlement basis in the Statement
of Assets and Liabilities.
Stripped Mortgage-Backed Securities: Stripped Mortgage-Backed Securities
("SMBS") are multiple-class mortgage-backed securities. SMBS are often
structured with two classes that receive different proportions of the
interest and principal distributions on a pool of mortgage assets. SMBS have
greater market volatility than other types of U.S. government securities in
which a Fund invests. A common type of SMBS has one class receiving some of
the interest and all or most of the principal (the "principal only" class)
from the mortgage pool, while the other class will receive all or most of
the interest (the "interest only" class). The yield to maturity on an
interest only class is extremely sensitive not only to changes in prevailing
interest rates, but also to the rate of principal payments, including
principal prepayments, on the underlying pool of mortgage assets, and a
rapid rate of principal payment may have a material adverse effect on a
Fund's yield.
Inflation-Indexed Bonds: Certain Funds may purchase inflation-indexed bonds.
Inflation-indexed bonds are fixed income securities whose principal value is
adjusted periodically according to the rate of inflation. Two structures are
common. The U.S. Treasury and certain other issuers use a structure that
reflects inflation in the principal value of the bond. Other issuers pay out
any inflation related accruals as part of a semiannual coupon. The value of
inflation-indexed bonds is expected to change in
76
SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited)
(continued)
response to changes in real interest rates. Real interest rates, in turn,
are tied to the relationship between nominal interest rates (i.e., stated
interest rates) and the rate of inflation. Therefore, if the rate of
inflation rises at a faster rate than nominal interest rates, real interest
rates (i.e., nominal interest rates minus inflation) might decline, leading
to an increase in value of inflation-indexed bonds. In contrast, if nominal
interest rates increase at a faster rate than inflation, real interest rates
might rise, leading to a decrease in value of inflation-indexed bonds. There
can be no assurance, however, that the value of inflation-indexed bonds will
be directly correlated to changes in nominal interest rates, and short-term
increases in inflation may lead to a decline in their value. Coupon payments
received from inflation-indexed bonds are recorded in the Statements of
Operations as interest income. In addition, any increase or decrease in the
principal amount of an inflation-indexed bond will be recorded in the
Statements of Operations as an increase or decrease to interest income, even
though principal is not paid until maturity.
Repurchase Agreements: The Funds, along with other affiliated registered
investment companies, pursuant to procedures adopted by the Board and
applicable guidance from the Securities and Exchange Commission ("SEC"), may
transfer uninvested cash balances into a single joint account, the daily
aggregate balance of which is invested in one or more repurchase agreements
collateralized by U.S. Treasury or federal agency obligations. In a
repurchase agreement, the seller of a security agrees to repurchase the
security at a mutually agreed-upon time and price, which reflects the
effective rate of return for the term of the agreement. For repurchase
agreements and joint repurchase agreements, the Trust's custodian takes
possession of the collateral pledged for investments in such repurchase
agreements ("repo" or collectively "repos"). The underlying collateral is
valued daily on a mark to market basis, plus accrued interest to ensure that
the value, at the time the agreement is entered into, is equal to at least
102% of the repurchase price, including accrued interest. In the event of
default of the obligation to repurchase, a Fund has the right to liquidate
the collateral and apply the proceeds in satisfaction of the obligation. If
the seller defaults and the value of the collateral declines or if
bankruptcy proceedings are commenced with respect to the seller of the
security, realization of the collateral by a Fund may be delayed or limited.
Securities Transactions, Investment Income, Expenses, Dividends and
Distributions to Shareholders: Security transactions are recorded on a trade
date basis. Interest income is accrued daily from settlement date except
when collection is not expected. Dividend income is recorded on the
ex-dividend date except for certain dividends from foreign securities, which
are recorded as soon as the Trust is informed after the ex-dividend date.
Paydown gains and losses on mortgage and asset-backed securities are
recorded as components of interest income on the Statements of Operations.
For financial statement purposes, the Funds amortize all premiums and
accrete all discounts on fixed income securities.
Realized gains and losses on the sale of investments are calculated on the
identified cost basis. Funds which earn foreign income and capital gains may
be subject to foreign withholding taxes and capital gains taxes at various
rates. Under applicable foreign law, a withholding of tax may be imposed on
interest, dividends, and capital gains from the sale of foreign securities
at various rates.
Income and expenses, other than class specific expenses, are allocated daily
to each class of shares based upon the relative value of dividend-eligible
shares after adjusting for the current capital share activity of the
respective class. Realized and unrealized gains and losses are allocated
daily to each class of shares based upon the relative value of outstanding
shares after adjusting for the current capital share activity of the
respective class.
Expenses common to all Funds are allocated among the Funds based upon
relative net assets or other appropriate allocation methods. In all other
respects, expenses are charged to each Fund as incurred on a specific
identification basis.
Dividends from net investment income are accrued daily and paid monthly.
Capital gain distributions, if any, are paid annually. The Funds record
dividends and distributions to their shareholders on the ex-dividend date.
The Funds reserve the right to declare and pay dividends less frequently
than disclosed above, provided that the net realized capital gains and net
investment income, if any, are paid at least annually.
The amount of dividends and distributions from net investment income and net
realized capital gains are determined in accordance with federal income tax
regulations, which may differ from GAAP. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within
the capital accounts at fiscal year end based on their federal tax-basis
treatment; temporary differences do not require reclassification. Net assets
are not affected by these reclassifications.
77
SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited)
(continued)
Each Fund is considered a separate entity for tax purposes and intends to
comply with the requirements of the Internal Revenue Code, as amended,
applicable to regulated investment companies and distribute all of its
taxable income, including any net capital gains on investments, to its
shareholders. Each Fund also intends to distribute sufficient net investment
income and net capital gains, if any, so that it will not be subject to
excise tax on undistributed income and gains. Therefore, no federal income
tax or excise tax provision is required.
The Funds recognize the tax benefits of uncertain tax positions only when
the position is more likely than not to be sustained, assuming examination
by tax authorities. Management has analyzed each Fund's tax positions and
concluded that no liability for unrecognized tax benefits should be recorded
related to uncertain tax positions taken on returns filed for open tax years
2016 -- 2018 or expected to be taken in each Fund's 2019 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 2016.
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.
New Accounting Pronouncements: In August 2018, the FASB issued Accounting
Standards Update ("ASU") No. 2018-13 "Disclosure Framework -- Changes to the
Disclosure Requirements for Fair Value Measurement". The ASU eliminates,
modifies, and adds disclosure requirements for fair value measurements and
is effective for fiscal years, and interim periods within those fiscal
years, beginning after December 15, 2019. The ASU allows for early adoption
of either the entire standard or only the provisions that eliminate or
modify the requirements. Management has elected to early adopt the
provisions that eliminate disclosure requirements and is still evaluating
the impact of applying the rest of the ASU.
Effective April 1, 2019, the Funds are subject to ASU 2017-08, "Premium
Amortization on Purchased Callable Debt Securities", which requires the
premiums on certain purchased debt securities with non-contingent call
features to be amortized to the earliest call date. The amortization period
for callable debt securities purchased at a discount will not be impacted.
Adoption of the ASU had no material impact on the Funds.
Note 3. Investment Advisory and Management Agreement, Distribution Agreement
and Service Agreement
The Trust, on behalf of each Fund, has an Investment Advisory and Management
Agreement (the "Agreement") with SunAmerica. Under the Agreement, SunAmerica
provides continuous supervision of a Fund's portfolio and administers its
corporate affairs, subject to general review by the Trustees. In connection
therewith, SunAmerica furnishes the Funds with office facilities, maintains
certain of the Funds' books and records, and pays the salaries and expenses
of all personnel, including officers of the Funds, who are employees of
SunAmerica and its affiliates.
78
SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited)
(continued)
The Funds pay SunAmerica a monthly investment advisory and management fee
calculated daily at the following annual percentages of each Fund's average
daily net assets:
Management
Fund Assets Fees
---- ---------------------------- ----------
U.S. Government Securities........................ $0 - $200 million 0.650%
(greater than) $200 million 0.620
(greater than) $400 million 0.550
Strategic Bond(1)................................. $0 - $350 million 0.650
(greater than) $350 million 0.600
Flexible Credit(2)................................ $0 - $200 million 0.750
(greater than) $200 million 0.720
(greater than) $400 million 0.550
--------
(1)The Advisor contractually agreed to waive its advisory fee with respect to
the AIG Strategic Bond Fund through July 31, 2020 so that the advisory fee
payable by the Fund to the Advisor under the agreement equals 0.38% on the
first $350 million and 0.33% above $350 million of average daily net assets.
(2)The Advisor contractually agreed to waive its advisory fee with respect to
the AIG Flexible Credit Fund through July 31, 2020 so that the advisory fee
payable by the Fund to the Advisor under the agreement equals 0.34% of
average daily net assets.
For the six months ended September 30, 2019 the amount of investment
advisory fees waived for Strategic Bond Fund and Flexible Credit Fund were
$397,199 and $661,420, respectively. These amounts are reflected in the
Statement of Operations.
The organizations described below act as subadvisers to the Trust and
certain of its Funds pursuant to Subadvisory Agreements with SAAMCo. Under
the Subadvisory Agreements, the subadvisers manage the investment and
reinvestment of the assets of the respective Funds for which they are
responsible.
Each of the subadvisers is independent of SAAMCo and discharges its
responsibilities subject to the policies of the Trust's Trustees and the
oversight and supervision of SAAMCo, which pays the subadvisers' fees.
Subadviser Fund
---------- ---------------
PineBridge Investments, LLC.... Strategic Bond
Newfleet Asset Management, LLC. Flexible Credit
SunAmerica has contractually agreed to waive fees and/or reimburse expenses,
to the extent necessary to cap the Funds' annual fund operating expenses at
the following percentages of each Fund's average net assets. For the
purposes of waived fees and/or reimbursed expense calculations, annual Fund
operating expenses shall not include extraordinary expenses (i.e., expenses
that are unusual in nature and 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 fee
waivers and expense reimbursements will continue indefinitely, subject to
termination by the Trustees, including a majority of the Disinterested
Trustees.
Fund Percentage
---- ----------
U.S. Government Securities Class A..... 0.99%
U.S. Government Securities Class C..... 1.64
Strategic Bond Class A................. 1.40
Strategic Bond Class B................. 2.05
Strategic Bond Class C................. 2.05
Strategic Bond Class W................. 1.20
Flexible Credit Class A................ 1.45
Flexible Credit Class C................ 2.10
Flexible Credit Class W................ 1.25
For the U.S. Government Securities Fund, any contractual waivers and/or
reimbursements made by SunAmerica are subject to recoupment from the Fund
within two years after the occurrence of the waivers and/or reimbursements,
provided that the Fund is able to effect such payment to SunAmerica and
remain in compliance with the expense limitations in effect at the time the
waivers and/or reimbursements were made.
79
SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited)
(continued)
For the six months ended September 30, 2019, pursuant to the contractual
expense limitations in the above tables SunAmerica has waived and/or
reimbursed expenses as follows:
Other Expenses
Fund Reimbursed
---- --------------
U.S. Government Securities......... $ 98,503
Class Specific
Fund Expenses
---- --------------
U.S. Government Securities Class A. $153,532
U.S. Government Securities Class C. 22,966
At September 30, 2019, expenses previously waived or reimbursed by
SunAmerica that are subject to recoupment and expire during the time period
indicated are as follows:
Other Expenses Reimbursed
------------------------------------------------
Fund March 31, 2020 March 31, 2021 September 30, 2021
---- -------------- -------------- ------------------
U.S. Government Securities........................ $ 83,370 $185,070 $ 98,503
Class Specific Expenses Reimbursed
------------------------------------------------
Fund March 31, 2020 March 31, 2021 September 30, 2021
---- -------------- -------------- ------------------
U.S. Government Securities Class A................ $177,080 $306,262 $153,532
U.S. Government Securities Class C................ 19,118 33,551 22,966
The Trust, on behalf of each Fund, has entered into a Distribution Agreement
with AIG Capital Services, Inc. ("ACS" or "Distributor"), an affiliate of
the Adviser. Each Fund has adopted a Distribution Plan on behalf of each
Class (other than Class W shares of the Strategic Bond and Flexible Credit
Funds), in accordance with the provisions of Rule 12b-1 under the 1940 Act
(each, a "Plan," and collectively, the "Plans"), hereinafter referred to as
the "Class A Plan," the "Class B Plan" and the "Class C Plan." In adopting
the Class A Plan, the Class B Plan and the Class C Plan, the Trustees
determined that there was a reasonable likelihood that each such Plan would
benefit the Trust and the shareholders of the respective class. The sales
charge and distribution fees of a particular class will not be used to
subsidize the sale of shares of any other class.
The Class A, Class B and Class C Plans provide that the Trust, on behalf of
the respective classes, shall pay the Distributor a distribution fee at an
annual rate of up to 0.10%, 0.75% and 0.75%, of average daily net assets of
such Fund's Class A, Class B and Class C shares, respectively, to compensate
the Distributor and certain securities firms for providing sales and
promotional activities for distributing that class of shares. The
distribution costs for which the Distributor may be compensated include fees
paid to broker-dealers that have sold Fund shares, commissions, and other
expenses such as those incurred for sales literature, prospectus printing
and distribution and compensation to wholesalers. It is possible that in any
given year, the amount paid to the Distributor under the Class A Plan,
Class B Plan or Class C Plan may exceed the Distributor's distribution costs
as described above. Except for Class W shares of the Strategic Bond and
Flexible Credit Funds, the Plans also provide that each class of shares of
the Trust will also pay the Distributor an account maintenance fee at the
annual rate of up to 0.25% of the aggregate average daily net assets of such
class of shares to compensate the Distributor and securities firms for
account maintenance activities. The Distributor does not receive or retain
any distribution and/or account maintenance fees for any shares when the
shareholder does not have a broker of record. For the six months ended
September 30, 2019, ACS received fees as reflected in the Statements of
Operations based on the aforementioned rates.
The Trust, on behalf of the Strategic Bond and Flexible Credit Funds, has
entered into an Administrative and Shareholder Services Agreement with ACS,
pursuant to which ACS is paid an annual fee of 0.15% of average daily net
assets of Class W shares as compensation for providing additional
shareholder services to Class W shareholders. The Distributor does not
receive or retain any distribution and/or account maintenance fees for any
shares when the shareholder does not have a broker of record. For the six
months ended September 30, 2019, ACS earned fees as reflected in the
Statements of Operations based on the aforementioned rate.
80
SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited)
(continued)
ACS receives sales charges on each Fund's Class A shares, portions of which
are reallowed to affiliated broker-dealers and non-affiliated
broker-dealers. ACS also receives the proceeds of contingent deferred sales
charges paid by investors in connection with certain redemptions of Class A,
Class B and Class C shares. ACS has advised the Funds that for the six
months ended September 30, 2019, the proceeds received from Class A sales
(and paid out to affiliated and non-affiliated broker-dealers) and Class A,
Class B and Class C redemptions were as follows:
Class A Class B Class C
---------------------------------------------------- ------------- -------------
Contingent Contingent Contingent
Sales Affiliated Non-affiliated Deferred Deferred Deferred
Fund Charges Broker-dealers Broker-dealers Sales Charges Sales Charges Sales Charges
---- -------- -------------- -------------- ------------- ------------- -------------
U.S. Government Securities......... $ 6,564 $ 722 $ 4,723 $ 44 $ -- $ 14
Strategic Bond..................... 79,212 23,794 42,395 367 33,612 691
Flexible Credit.................... 178,809 18,140 127,929 2,479 -- 7,853
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, DST Asset Manager Solutions, Inc. ("DST") in connection with
the services that it offers to the shareholders of the Funds. The Service
Agreement permits the Funds to compensate AFS for services rendered, based
upon an annual rate of 0.22% of average daily net assets, which is approved
annually by the Trustees. For the six months ended September 30, 2019, the
Funds incurred the following expenses which are included in transfer agent
fees and expenses in the Statements of Operations to compensate AFS pursuant
to the terms of the Service Agreement:
Payable at
Fund Expenses September 30, 2019
---- -------- ------------------
U.S. Government Securities Class A........... $138,019 $22,870
U.S. Government Securities Class C........... 8,212 1,319
Strategic Bond Class A....................... 170,371 28,156
Strategic Bond Class B....................... 18,297 3,042
Strategic Bond Class C....................... 57,534 9,144
Strategic Bond Class W....................... 77,441 15,926
Flexible Credit Class A...................... 122,768 17,003
Flexible Credit Class C...................... 62,143 10,118
Flexible Credit Class W...................... 180,647 35,053
At September 30, 2019, AIG Active Allocation Fund and AIG Multi-Asset
Allocation Fund, each a series of SunAmerica Series, Inc., owned a
percentage of the outstanding shares of the following Funds:
Holder
---------------------
AIG AIG
Active Multi-Asset
Allocation Allocation
Fund Fund Fund
---- ---------- -----------
U.S. Government Securities................... 19.00% 17.02%
Strategic Bond............................... 1.76 3.09
Flexible Credit.............................. 2.17 2.62
Note 4. 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 September 30, 2019 were as follows:
Purchases of Investment Sales of Investment Purchase of U.S. Sales of U.S.
Securities (Excluding U.S. Securities (Excluding U.S. Government Government
Fund Government Securities) Government Securities) Securities Securities
---- -------------------------- -------------------------- ---------------- -------------
U.S. Government Securities......... $ -- $ -- $36,429,795 $39,562,898
Strategic Bond..................... 104,085,057 107,305,501 50,040,392 33,497,811
Flexible Credit.................... 116,096,904 79,638,293 -- --
81
SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited)
(continued)
Note 5. Federal Income Taxes
The following details the tax basis of distributions as well as the
components of distributable earnings. The tax basis components of
distributable earnings differ from the amounts reflected in the Statements
of Assets and Liabilities by temporary book/tax differences primarily
arising from wash sales, post October capital losses, late year ordinary
losses, distributions payable, straddle loss deferrals, amortization of
premium/discount and treatment of defaulted securities.
Distributable Earnings Tax Distributions
For the year ended March 31, 2019 For the year ended March 31, 2019
---------------------------------------- ---------------------------------
Long-term Unrealized
Ordinary Gains/Capital Appreciation Ordinary Long-Term
Fund Income Loss Carryover (Depreciation)* Income Capital Gains
---- ---------- -------------- --------------- ----------- -------------
U.S. Government Securities. $ 583,828 $(20,760,887) $ 3,513,319 $ 2,274,447 $ --
Strategic Bond............. 265,906 (29,106,480) (3,238,024) 13,933,983 --
Flexible Credit............ 1,452,890 (8,341,072) (10,540,898) 17,530,127 --
--------
* Unrealized appreciation (depreciation) includes amounts for derivatives and
other assets and liabilities denominated in foreign currency.
As of March 31, 2019, for Federal income tax purposes, the Funds indicated
below have capital loss carryforwards which are available to offset future
capital gains, if any:
Unlimited
-----------------------
Fund ST LT
---- ----------- -----------
U.S. Government Securities. $13,869,489 $ 6,891,398
Strategic Bond............. 7,290,177 21,816,303
Flexible Credit............ 316,999 8,024,073
Under the current law, capital losses realized after October 31 and late
year ordinary losses may be deferred and treated as occurring on the first
day of the following year. For the fiscal year ended March 31, 2019, the
Funds elected to defer late year ordinary losses and post October capital
losses as follows:
Deferred Deferred
Deferred Post-October Post-October
Late Year Short-Term Long-Term
Fund Ordinary Loss Capital Loss Capital Loss
---- ------------- ------------ ------------
U.S. Government Securities. $ -- $ -- $ 158,358
Strategic Bond............. -- 937,916 2,311,945
Flexible Credit............ 778 1,038,999 1,764,229
At September 30, 2019, the amounts of aggregate unrealized gain (loss) and
the cost of investment securities for federal tax purposes, including
short-term securities and repurchase agreements, were as follows:
Aggregate Aggregate Unrealized
Unrealized Unrealized Gain/(Loss) Cost of
Fund Gain Loss Net Investments
---- ---------- ------------ ----------- ------------
U.S. Government Securities. $6,828,006 $ (625,510) $ 6,202,496 $127,248,635
Strategic Bond............. 9,243,967 (7,792,815) 1,451,152 310,783,845
Flexible Credit Bond....... 5,752,845 (15,684,970) (9,932,125) 367,181,663
82
SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited)
(continued)
Note 6. Capital Share Transactions
Transactions in capital shares of each class of each Fund were as follows:
U.S. Government Securities
---------------------------------------------------
Class A
---------------------------------------------------
For the
six months ended For the
September 30, 2019 year ended
(unaudited) March 31, 2019
------------------------ -------------------------
Shares Amount Shares Amount
---------- ------------ ----------- ------------
Shares
sold.............. 1,391,837 $ 12,768,526 1,305,310 $ 11,619,748
Reinvested
dividends......... 105,697 974,485 224,390 1,998,259
Shares
redeemed.......... (1,901,518) (17,415,935) (3,096,467) (27,568,802)
---------- ------------ ----------- ------------
Net
increase
(decrease)
in
shares
outstanding
before
automatic
conversion........ (403,984) (3,672,924) (1,566,767) (13,950,795)
---------- ------------ ----------- ------------
Shares
issued/(reaquired)
upon
automatic
conversion........ 8,144 74,351 23,545 209,813
---------- ------------ ----------- ------------
Net
increase
(decrease)........ (395,840) $ (3,598,573) (1,543,222) $(13,740,982)
========== ============ =========== ============
U.S. Government Securities
---------------------------------------------------
Class C
---------------------------------------------------
For the
six months ended For the
September 30, 2019 year ended
(unaudited) March 31, 2019
------------------------ -------------------------
Shares Amount Shares Amount
---------- ------------ ----------- ------------
Shares
sold.............. 237,645 $ 2,191,749 369,217 $ 3,282,505
Reinvested
dividends......... 3,964 36,522 7,423 66,105
Shares
redeemed.......... (293,629) (2,713,991) (376,463) (3,350,519)
---------- ------------ ----------- ------------
Net
increase
(decrease)
in
shares
outstanding
before
automatic
conversion........ (52,020) (485,720) 177 (1,909)
---------- ------------ ----------- ------------
Shares
issued/(reaquired)
upon
automatic
conversion........ (8,148) (74,351) (23,556) (209,813)
---------- ------------ ----------- ------------
Net
increase
(decrease)........ (60,168) $ (560,071) (23,379) $ (211,722)
========== ============ =========== ============
Strategic Bond
------------------------------------------------------------------------------------------------------
Class A Class B
--------------------------------------------------- -------------------------------------------------
For the For the
six months ended For the six months ended For the
September 30, 2019 year ended September 30, 2019 year ended
(unaudited) March 31, 2019 (unaudited) March 31, 2019
------------------------ ------------------------- ----------------------- ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ----------- ------------ ---------- ----------- ---------- ------------
Shares
sold.............. 5,743,864 $ 19,341,638 6,137,118 $ 20,175,849 2,133,664 $ 7,145,589 2,455,767 $ 7,927,642
Reinvested
dividends......... 775,627 2,610,118 2,184,483 7,131,471 62,867 211,040 191,319 624,130
Shares
redeemed.......... (6,731,396) (22,638,471) (20,482,979) (67,579,745) (2,023,721) (6,775,892) (4,158,057) (13,615,211)
---------- ------------ ----------- ------------ ---------- ----------- ---------- ------------
Net
increase
(decrease)
in
shares
outstanding
before
automatic
conversion........ (211,905) (686,715) (12,161,378) (40,272,425) 172,810 580,737 (1,510,971) (5,063,439)
---------- ------------ ----------- ------------ ---------- ----------- ---------- ------------
Shares
issued/(reaquired)
upon
automatic
conversion........ 200,505 676,309 366,229 1,211,029 (102,585) (346,161) (134,725) (442,850)
---------- ------------ ----------- ------------ ---------- ----------- ---------- ------------
Net
increase
(decrease)........ (11,400) $ (10,406) (11,795,149) $(39,061,396) 70,225 $ 234,576 (1,645,696) $ (5,506,289)
========== ============ =========== ============ ========== =========== ========== ============
83
SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited)
(continued)
Strategic Bond
----------------------------------------------------------------------------------------------------------
Class C Class W
---------------------------------------------------- ----------------------------------------------------
For the For the
six months ended For the six months ended For the
September 30, 2019 year ended September 30, 2019 year ended
(unaudited) March 31, 2019 (unaudited) March 31, 2019
------------------------- ------------------------- ------------------------ --------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
----------- ------------ ----------- ------------ ---------- ------------ ----------- -------------
Shares
sold.............. 1,571,879 $ 5,293,127 3,276,843 $ 10,600,251 15,994,866 $ 53,687,997 8,629,513 $ 28,185,244
Reinvested
dividends......... 184,949 624,073 576,785 1,887,304 246,359 827,843 529,292 1,725,791
Shares
redeemed.......... (3,184,268) (10,763,942) (8,736,270) (28,825,160) (5,429,155) (18,257,322) (14,054,707) (46,263,984)
----------- ------------ ----------- ------------ ---------- ------------ ----------- -------------
Net
increase
(decrease)
in
shares
outstanding
before
automatic
conversion........ (1,427,440) (4,846,742) (4,882,642) (16,337,605) 10,812,070 36,258,518 (4,895,902) (16,352,949)
----------- ------------ ----------- ------------ ---------- ------------ ----------- -------------
Shares
issued/(reaquired)
upon
automatic
conversion........ (97,772) (330,148) (230,990) (768,179) -- -- -- --
----------- ------------ ----------- ------------ ---------- ------------ ----------- -------------
Net
increase
(decrease)........ (1,525,212) $ (5,176,890) (5,113,632) $(17,105,784) 10,812,070 $ 36,258,518 (4,895,902) $ (16,352,949)
=========== ============ =========== ============ ========== ============ =========== =============
Flexible Credit
----------------------------------------------------
Class A
----------------------------------------------------
For the
six months ended For the
September 30, 2019 year ended
(unaudited) March 31, 2019
------------------------- -------------------------
Shares Amount Shares Amount
----------- ------------ ----------- ------------
Shares
sold.............. 4,602,173 $ 15,316,144 14,849,818 $ 49,790,556
Reinvested
dividends......... 811,629 2,699,409 1,886,508 6,285,170
Shares
redeemed.......... (13,456,148) (44,671,861) (19,823,318) (66,203,996)
----------- ------------ ----------- ------------
Net
increase
(decrease)
in
shares
outstanding
before
automatic
conversion........ (8,042,346) (26,656,308) (3,086,992) (10,128,270)
----------- ------------ ----------- ------------
Shares
issued/(reaquired)
upon
automatic
conversion........ 129,728 431,654 97,761 327,120
----------- ------------ ----------- ------------
Net
increase
(decrease)........ (7,912,618) $(26,224,654) (2,989,231) $ (9,801,150)
=========== ============ =========== ============
Flexible Credit
----------------------------------------------------------------------------------------------------------
Class C Class W
---------------------------------------------------- ----------------------------------------------------
For the For the
six months ended For the six months ended For the
September 30, 2019 year ended September 30, 2019 year ended
(unaudited) March 31, 2019 (unaudited) March 31, 2019
------------------------- ------------------------- ------------------------ --------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
----------- ------------ ----------- ------------ ---------- ------------ ----------- -------------
Shares
sold.............. 2,364,542 $ 7,913,844 4,471,353 $ 14,963,070 26,621,116 $ 88,674,992 34,991,418 $ 117,435,247
Reinvested
dividends......... 281,868 942,930 562,371 1,884,631 743,426 2,475,936 1,333,966 4,447,946
Shares
redeemed.......... (2,247,368) (7,513,305) (5,521,122) (18,531,010) (8,899,682) (29,657,907) (33,731,044) (111,902,255)
----------- ------------ ----------- ------------ ---------- ------------ ----------- -------------
Net
increase
(decrease)
in
shares
outstanding
before
automatic
conversion........ 399,042 1,343,469 (487,398) (1,683,309) 18,464,860 61,493,021 2,594,340 9,980,938
----------- ------------ ----------- ------------ ---------- ------------ ----------- -------------
Shares
issued/(reaquired)
upon
automatic
conversion........ (128,953) (431,654) (97,135) (327,120) -- -- -- --
----------- ------------ ----------- ------------ ---------- ------------ ----------- -------------
Net
increase
(decrease)........ 270,089 $ 911,815 (584,533) $ (2,010,429) 18,464,860 $ 61,493,021 2,594,340 $ 9,980,938
=========== ============ =========== ============ ========== ============ =========== =============
84
SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited)
(continued)
Note 7. Line of Credit
The Trust, along with certain other funds managed by the Adviser, has access
to a $75 million committed unsecured line of credit and a $50 million
uncommitted unsecured line of credit. The committed and uncommitted lines of
credit are renewable on an annual basis with State Street Bank and Trust
Company ("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
$25,000 in the aggregate for the uncommitted 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. 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 September 30, 2019, the following Funds had
borrowings:
Average Weighted
Days Interest Debt Average
Fund Outstanding Charges Utilized Interest
---- ----------- -------- ---------- --------
U.S. Government
Securities.............. 9 $1,290 $1,461,111 3.50%
At September 30, 2019, there were no borrowings outstanding.
Note 8. Interfund Lending Agreement
Pursuant to the exemptive relief granted by the Securities and Exchange
Commission, the Funds are permitted to participate in an interfund lending
program among investment companies advised by SunAmerica or an affiliate.
The interfund lending program allows the participating Funds to borrow money
from and lend money to each other for temporary or emergency purposes. An
interfund loan will be made under this facility only if the participating
Funds receive a more favorable interest rate than would otherwise be
available from a typical bank for a comparable transaction. For the six
months ended September 30, 2019, none of the Funds participated in this
program.
Note 9. Investment Concentration
The Flexible Credit Fund's investment in high yield securities, whether
rated or unrated, may be considered speculative and subject to greater
market fluctuations and risk of loss of income and principal than
lower-yielding, higher-rated, fixed-income securities. The risk of loss due
to default by the issuer may be significantly greater for the holders of
high yield securities, because such securities are generally unsecured and
are often subordinated to other creditors of the issuer.
The Flexible Credit Fund and Strategic Bond Fund invest in participations
and assignments, or act as a party to the primary lending syndicate of a
variable rate senior loan interest to United States corporations,
partnerships, and other entities. If the lead lender in a typical lending
syndicate becomes insolvent, enters receivership or, if not FDIC insured,
enters into bankruptcy, a Fund may incur certain costs and delays in
receiving payment, or may suffer a loss of principal and/or interest. When a
Fund purchases a participation of a senior loan interest, the Fund typically
enters into a contractual agreement with the lender or other third party
selling the participation but not with the borrower directly. As such, a
Fund is subject to the credit risk of the borrower, selling participant,
lender or other persons positioned between the Funds and the borrower.
Each Fund may invest in obligations issued by agencies and instrumentalities
of the U.S. Government that may vary in the level of support they receive
from the government. The government may choose not to provide financial
support to government sponsored agencies or instrumentalities if it is not
legally obligated to do so, and if the issuer defaulted, a fund holding
securities of such issuer might not be able to recover its investment from
the U.S. Government. As a result of the U.S. Government Fund's concentration
in such investments, it may be subject to risks associated with U.S.
Government agencies or instrumentalities.
85
SunAmerica Income Funds
NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited)
(continued)
Note 10. Unfunded Loan Commitments
At September 30, 2019, AIG Strategic Bond Fund had the following unfunded
loan commitments which could be extended at the option of the Borrower:
Principal
Borrower Type Maturity Date Amount Value
-------- ------------ ------------- --------- -------
Mavis Tire Express Services Corp.. Delayed Draw 03/20/2025 $12,333 $12,025
======= =======
86
SunAmerica Income Funds
APPROVAL OF ADVISORY AGREEMENTS -- September 30, 2019 -- (unaudited)
Approval of the Investment Advisory and Management Agreement
The Board of Directors (the "Board" the members of which are referred to as
"Directors") of SunAmerica Series, Inc. (the "Corporation"), including the
Directors who are not "interested persons," as defined in Section 2(a)(19) of
the Investment Company Act of 1940, as amended (the "1940 Act") (the
"Independent Directors"), of the Corporation or its separate series (each, a
"Fund," and collectively, the "Funds") or SunAmerica Asset Management, LLC
("SunAmerica"), approved the continuation of the Investment Advisory and
Management Agreement between the Corporation, on behalf of the Funds, and
SunAmerica (the "Advisory Agreement") for a one-year period ending June 30,
2020 at an in-person meeting held on June 4-5, 2019 (the "Meeting"). The
Corporation currently consists of the following six separate Funds: AIG Active
Allocation Fund ("Active Allocation Fund"), AIG Multi-Asset Allocation Fund
("Multi-Asset Allocation Fund"), AIG Focused Dividend Strategy Fund ("Dividend
Strategy Fund"), AIG Focused Dividend Strategy II Fund, AIG Strategic Value
Fund ("Strategic Value Fund ") and AIG Select Dividend Growth Fund ("Dividend
Growth Fund").
In accordance with Section 15(c) of the 1940 Act, the Board requested, and
SunAmerica provided, materials relating to the Board's consideration of whether
to approve the continuation of the Advisory Agreement. These materials
included, among other things: (a) a summary of the services provided to the
Funds by SunAmerica and its affiliates; (b) information independently compiled
and prepared by Broadridge Financial Solutions, Inc. ("Broadridge"), an
independent third-party provider of mutual fund data, on fees and expenses of
the Funds and the investment performance of the Funds as compared with a peer
group of funds, along with fee and performance data with respect to the Funds
and any other mutual funds or other accounts advised by SunAmerica with similar
investment objectives and/or strategies, as applicable; (c) information on the
profitability of SunAmerica and its affiliates, and a discussion relating to
indirect benefits; (d) information relating to economies of scale;
(e) information about SunAmerica's general compliance policies and procedures
and the services it provides to the Funds; (f) information about SunAmerica's
risk management processes; (g) information regarding brokerage and soft dollar
practices; and (h) information about the key personnel of SunAmerica and its
affiliates that are involved in the investment management, administration,
compliance and risk management activities with respect to the Funds, as well as
current and projected staffing levels and compensation practices.
In determining whether to approve the continuation of the Advisory Agreement,
the Board, including the Independent Directors, considered at the Meeting, and
from time to time as appropriate, factors that it deemed relevant, including
the following information:
Nature, Extent and Quality of Services Provided by SunAmerica. The Board,
including the Independent Directors, considered the nature, extent and quality
of services provided by SunAmerica. The Board noted that the services include
acting as investment manager and adviser to the Funds, managing the daily
business affairs of the Funds, and obtaining and evaluating economic,
statistical and financial information to formulate and implement investment
policies. Additionally, the Board observed that SunAmerica provides office
space, bookkeeping, accounting, legal, compliance, clerical and administrative
services, and has authorized its officers and employees, if elected, to serve
as officers or directors of the Corporation without compensation. The Board
also noted that SunAmerica is responsible for monitoring and reviewing the
activities of affiliated and unaffiliated third-party service providers. In
addition to the quality of the advisory services provided by SunAmerica, the
Board considered the quality of the administrative and other services provided
by SunAmerica to the Funds pursuant to the Advisory Agreement. The Board also
considered the significant risks assumed by SunAmerica in connection with the
services provided to the Funds including entrepreneurial risk in sponsoring new
funds and ongoing risks including investment, operational, enterprise,
litigation, regulatory and compliance risks with respect to all Funds.
In connection with the services provided by SunAmerica, the Board analyzed the
structure and duties of SunAmerica's fund administration, accounting,
operations, legal and compliance departments and concluded that they were
adequate to meet the needs of the Funds. The Board also reviewed the personnel
responsible for providing advisory services to the Funds and other key
personnel of SunAmerica, in addition to current and projected staffing levels
and compensation practices. The Board concluded, based on its experience and
interaction with SunAmerica, that: (i) SunAmerica would continue to be able, to
retain quality investment and other personnel; (ii) SunAmerica has exhibited a
high level of diligence and attention to detail in carrying out its advisory
and other responsibilities; (iii) SunAmerica has been responsive to requests of
the Board; and (iv) SunAmerica has kept the Board apprised of developments
relating to the Funds and the industry in general. The Board concluded that the
nature and extent of services provided under the Advisory Agreement were
reasonable and appropriate in relation to the management fee and that the
quality of services continues to be high.
87
SunAmerica Income Funds
APPROVAL OF ADVISORY AGREEMENTS -- September 30, 2019 -- (unaudited)
(continued)
The Board also considered SunAmerica's reputation and long-standing
relationship with the Funds and considered the benefit to shareholders of
investing in funds that are part of a family of funds offering a variety of
types of mutual funds and shareholder services. The Board considered
SunAmerica's experience in providing management and investment advisory and
administrative services to advisory clients and noted that as of March 31,
2019, SunAmerica managed, advised and/or administered approximately
$85.8 billion in assets. In addition, the Board considered SunAmerica's code of
ethics and its commitment to compliance generally and with respect to its
management and administration of the Funds. The Board also considered
SunAmerica's risk management processes. The Board further observed that
SunAmerica has developed internal procedures for monitoring compliance with the
investment objectives, policies and restrictions of the Funds as set forth in
the Funds' prospectuses. The Board also reviewed SunAmerica's compliance and
regulatory history and noted that there were no material legal, regulatory or
compliance issues that would potentially impact SunAmerica in effectively
serving as the investment adviser to the Funds.
Investment Performance. The Board, including the Independent Directors, also
considered the investment performance of SunAmerica with respect to the Funds.
In connection with its review, the Board received and reviewed information
regarding the investment performance of the Funds as compared to each Fund's
peer universe ("Peer Universe") and/or peer group ("Peer Group") as
independently determined by Broadridge and to an appropriate index or
combination of indices, including the Fund's benchmarks. The Board was provided
with a description of the methodology used by Broadridge to select the funds in
the Peer Groups and Peer Universes.
The Board noted that performance information was for the periods ended
March 31, 2019. The Board also noted that it regularly reviews the performance
of the Funds throughout the year. The Board further noted that, while it
monitors performance of the Funds closely, it generally attaches more
importance to performance over relatively long periods of time, typically three
to five years.
Active Allocation Fund. The Board considered that the Fund's performance was
above the median of its Peer Group for the one-, three- and five-year periods.
The Board further considered that the Fund underperformed its Peer Universe for
the one-year period and outperformed its Peer Universe for the three- and
five-year periods. The Board further considered that the Fund underperformed
its Broadridge Index for the one-, three- and five-year periods. The Board
noted management's discussion of the Fund's performance and concluded that the
Fund's performance was satisfactory.
Multi-Asset Allocation Fund. The Board considered that the Fund's performance
was below the medians of its Peer Group and Peer Universe for the one-, three-
and five-year periods. The Board also considered that the Fund underperformed
its Broadridge Index for the one-, three- and five-year periods. The Board took
into account management's discussion of the reasons for the Fund's recent
underperformance as well as management's discussion of the Fund's portfolio
construction and investment strategy and concluded that the Fund's performance
was being appropriately monitored.
Dividend Strategy Fund. The Board considered that the Fund's performance was
above the medians of its Peer Group and Peer Universe for the one- and
five-year periods and was below the medians of its Peer Group and Peer Universe
for the three-year period. The Board also considered that the Fund outperformed
its Broadridge Index for the one- and five-year periods and underperformed its
Broadridge Index for the three-year period. The Board noted management's
discussion of the Fund's performance, and concluded that the Fund's performance
was satisfactory.
Strategic Value Fund. The Board considered that the Fund's performance was
below the medians of its Peer Group and Peer Universe for the one-, three- and
five-year periods. The Board also considered that the Fund underperformed its
Broadridge Index for the one- and three- year periods and outperformed its
Broadridge Index for the five-year period. The Board noted management's
discussion of the Fund's performance, including the Fund's investment approach,
and concluded that the Fund's performance was being appropriately monitored.
Select Dividend Growth Fund. The Board noted that the Fund's performance was
below the median of its Peer Group for the one-year period and was equal to the
median of its Peer Group for the three-year period. The Board further
considered that the Fund's performance was below the median of its Peer
Universe for the one- and three-year periods. The Board further considered that
the Fund underperformed its Broadridge Index for the one- and three-year
periods. The Board noted management's discussion of the Fund's performance,
including the impact of market conditions on the Fund's performance, and
concluded that the Fund's performance is being appropriately monitored.
88
SunAmerica Income Funds
APPROVAL OF ADVISORY AGREEMENTS -- September 30, 2019 -- (unaudited)
(continued)
Consideration of the Management Fees and the Cost of the Services and Profits
to be Realized by SunAmerica and its Affiliates from the Relationship with the
Funds. The Board, including the Independent Directors, received and reviewed
information regarding the fees paid by the Funds to SunAmerica pursuant to the
Advisory Agreement. The Board examined this information in order to determine
the reasonableness of the fees in light of the nature and quality of services
to be provided and any potential additional benefits to be received by
SunAmerica or its affiliates in connection with providing such services to the
Funds.
To assist in analyzing the reasonableness of the management fee for each of the
Funds, the Board received reports independently prepared by Broadridge. The
reports showed comparative fee information for each Fund's Peer Group and/or
Peer Universe, as determined by Broadridge, including rankings within each
category. In considering the reasonableness of the management fee to be paid by
each Fund to SunAmerica, the Board reviewed a number of expense comparisons,
including: (i) contractual and actual management fees and (ii) actual total
operating expenses. In considering each Fund's total operating expenses, the
Board analyzed the level of fee waivers and expense reimbursements and the net
expense caps contractually agreed upon by SunAmerica with respect to certain
classes of AIG Strategic Value Fund and AIG Select Dividend Growth Fund. The
Board also considered the voluntary fee waivers and/or expense reimbursements
being made by SunAmerica with respect to the AIG Active Allocation Fund and AIG
Multi-Asset Allocation Fund (collectively, the "Allocation Funds"). The Board
further considered that, unlike the funds in the Peer Group and Peer Universe,
the fee waivers and/or reimbursements being made by SunAmerica with respect to
the Funds are only reflected in the total expenses category of the Broadridge
reports, rather than also being reflected as specific management fee waivers in
the actual management fees category of the Broadridge reports. As a result, the
Board took into account that the actual management fees presented by Broadridge
for the funds in the Peer Group and Peer Universe may appear lower on a
relative basis. The Board also considered the various expense components of the
Funds and compared each Fund's net expense ratio (taking into account the
contractual fee caps) to those of other funds within its Peer Group and/or Peer
Universe as a guide to help assess the reasonableness of each Fund's management
fee. The Board acknowledged that it was difficult to make precise comparisons
with other funds in the Peer Groups and Peer Universes since the exact nature
of services provided under the various fund agreements is often not apparent.
The Board noted, however, that the comparative fee information provided by
Broadridge as a whole was useful in assessing whether SunAmerica was providing
services at a cost that was competitive with other, similar funds.
The Board also considered the management fees received by SunAmerica with
respect to other mutual funds and accounts with similar investment strategies
to the Funds, as applicable. The Board noted that certain of the mutual funds
identified as similar to certain of the Funds are sold only in the variable
annuity market and, accordingly, are in different Broadridge classifications,
with peer groups consisting of funds underlying variable insurance products.
The Board further noted that SunAmerica serves as subadviser to certain of
these similar mutual funds and observed that the services SunAmerica provides
as subadviser are much more limited in scope than in its role as investment
manager and adviser to the Funds. The Board then noted the management fees paid
by the Funds were reasonable as compared to the fees SunAmerica was receiving
from other mutual funds and accounts for which it serves as adviser or
subadviser.
Active Allocation Fund. The Board considered that the Fund's actual management
fees were above the medians of its Peer Group and Peer Universe. The Board also
considered that the Fund's total expenses were above the medians of its Peer
Group and Peer Universe. The Board noted management's discussion regarding the
Fund's expenses.
Multi-Asset Allocation Fund. The Board considered that the Fund's actual
management fees were above the medians of its Peer Group and Peer Universe. The
Board also considered that the Fund's total expenses were above the medians of
its Peer Group and Peer Universe. The Board noted management's discussion
regarding the Fund's expenses.
Dividend Strategy Fund. The Board considered that the Dividend Strategy Fund's
actual management fees were below the medians of its Peer Group and Peer
Universe. The Board also considered that the Portfolio's total expenses were
below the median of its Peer Group and above the median of its Peer Universe.
Strategic Value Fund. The Board considered that the Fund's actual management
fees were above the medians of its Peer Group and Peer Universe. The Board also
considered that the Fund's total expenses were above the medians of its Peer
Group and Peer Universe. The Board noted management's discussion regarding the
Fund's expenses.
89
SunAmerica Income Funds
APPROVAL OF ADVISORY AGREEMENTS -- September 30, 2019 -- (unaudited)
(continued)
Select Dividend Growth Fund. The Board considered that the Fund's actual
management fees were above the medians of its Peer Group and Peer Universe. The
Board also considered that the Fund's total expenses were below the median of
its Peer Group and were above the median of its Peer Universe. The Board noted
management's discussion regarding the Fund's expenses.
Profitability. The Board also considered SunAmerica's profitability and the
benefits SunAmerica and its affiliates received from their relationship with
the Funds. The Board received and reviewed financial statements relating to
SunAmerica's financial condition and profitability with respect to the services
it provides the Funds and considered how profit margins could affect
SunAmerica's ability to attract and retain high quality investment
professionals and other key personnel. The Board was also provided with a
profitability analysis that detailed the revenues earned and the expenses
incurred by SunAmerica and its affiliates that provide services to the Funds on
a Fund by Fund basis, as well as an Investment Management Profitability
Analysis prepared by an independent information service, Broadridge. In
particular, the Board considered the contractual and voluntary fee waivers
and/or expense reimbursements agreed to by SunAmerica.
The Board considered the profitability of SunAmerica under the Advisory
Agreement and considered the profitability of SunAmerica's affiliates under the
Rule 12b-1 Plans. Additionally, the Board considered whether SunAmerica and its
affiliates received any indirect benefits from the relationship with the Funds.
The Board further considered whether there were any collateral or "fall-out"
benefits that SunAmerica and its affiliates may derive as a result of their
relationship with the Funds. The Board noted that SunAmerica believes that any
such benefits are de minimis and do not impact the reasonableness of the
management fees.
The Board concluded that SunAmerica had the financial resources necessary to
perform its obligations under the Advisory Agreement and to continue to provide
the Funds with the high quality services that it had provided in the past. The
Board further concluded that the management fees payable by the Funds under the
Advisory Agreement were reasonable in light of the factors discussed above.
Economies of Scale. The Board, including the Independent Directors, considered
whether the shareholders would benefit from economies of scale and whether
there was potential for future realization of economies with respect to the
Funds. The Board considered that as a result of being part of the AIG fund
complex, the Funds share common resources and may share certain expenses, and
if the size of the complex increases, each fund could incur lower expenses than
they otherwise would achieve as stand-alone entities. The Board also took into
account that the management fee arrangements with respect to AIG Focused
Dividend Strategy Fund included breakpoints that will adjust the fee downward
as the size of those Funds increase, thereby allowing the shareholders to
participate in any economies of scale. The Board further noted that, with
respect to the AIG Strategic Value Fund and AIG Select Dividend Growth Fund,
SunAmerica has agreed to contractually cap the total annual operating expenses
of certain classes of the Funds, at certain levels. The Board also noted that
with respect to the Allocation Funds, SunAmerica has agreed to voluntarily cap
the total annual operating expenses of certain classes of the Funds, at certain
levels. The Board observed that those expense caps benefited shareholders by
limiting total fees even in the absence of breakpoints. The Board concluded
that the Funds' management fee structure was reasonable and that it would
continue to review fees in connection with the renewal of the Advisory
Agreement, including whether the implementation of additional breakpoints would
be appropriate in the future due to an increase in asset size or otherwise.
Other Factors. In consideration of the Advisory Agreement the Board also
received information regarding SunAmerica's brokerage and soft dollar
practices. The Board considered that SunAmerica is responsible for decisions to
buy and sell securities for the Funds, selection of broker-dealers and
negotiation of commission rates. The Board noted that it receives reports from
SunAmerica and from an independent third party which included information on
brokerage commissions and execution throughout the year. The Board also
considered the benefits SunAmerica derives from its soft dollar arrangements,
including arrangements under which brokers provide brokerage and/or research
services to SunAmerica in return for allocating brokerage.
Conclusion. After a full and complete discussion, the Board approved the
Advisory Agreement for a one-year period ending June 30, 2020. Based upon their
evaluation of all these factors in their totality, the Board, including the
Independent Directors, was satisfied that the terms of the Advisory Agreement
and were fair and reasonable and in the best interests of the respective Funds
and the Funds' shareholders. In arriving at a decision to approve the Advisory
Agreement the Board did not identify any single factor or group of factors as
all-important or controlling, but considered all factors together, and each
Independent Director may have attributed different weights to different
factors. The Independent Directors were also assisted by the advice of
independent legal counsel in making this determination.
90
SunAmerica Income Funds
SUPPLEMENT TO THE PROSPECTUS
THIS SUPPLEMENT IS NOT PART OF THE SEMI-ANNUAL REPORT
SunAmerica Income Funds
AIG Flexible Credit Fund
(the "Fund")
Supplement dated August 27, 2019, to the Fund's
Summary Prospectus dated July 29, 2019, as supplemented and amended to date
Effective August 30, 2019, the following changes are made to the Fund's Summary
Prospectus:
In the section entitled "Fund Highlights: AIG Flexible Credit Fund," on page 9
of the Summary Prospectus, the table under the heading "Portfolio Managers" is
deleted in its entirety and replaced with the following:
Portfolio Manager
Name of the Fund Since Title
------------------------- ----------------- -------------------------------------------------------------------
David Albrycht, CFA...... 2014 President and Chief Investment Officer at Newfleet
Francesco Ossino......... 2014 Senior Managing Director and Senior Portfolio Manager at Newfleet
Eric Hess, CFA........... 2019 Managing Director, Portfolio Manager at Newfleet
William J. Eastwood, CFA. 2019 Senior Managing Director, Portfolio Manager and Head of Trading at
Newfleet
Capitalized terms used but not defined herein shall have the meanings assigned
to them by the Prospectus.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
91
[LOGO]
AIG Funds
Harborside 5
185 Hudson Street, Suite 3300
Jersey City, NJ 07311
Trustees VOTING PROXIES ON DISCLOSURE OF
Richard W. Grant TRUST PORTFOLIO QUARTERLY PORTFOLIO
Peter A. Harbeck SECURITIES HOLDINGS
Dr. Judith L. Craven A description of the The Trust is required
William F. Devin policies and to file its complete
Stephen J. Gutman proce-dures that the schedule of portfolio
Eileen A. Kamerick Trust uses to holdings quarterly
Officers determine how to vote with the U.S.
John T. Genoy, President proxies relating to Securities and
Sharon French, Executive secu-rities held in a Exchange Commission on
Vice President Fund's portfolio, Form N-PORT. The
James Nichols, Vice which is available in Trusts' Forms N-PORT
President the Trust's Statement are available on the
Christopher C. Joe, of Additional U.S. Securities and
Chief Compliance Information, may be Exchange Commission's
Officer ob-tained without website at
Gregory N. Bressler, charge upon request, http://www.sec.gov.
Secretary by calling (800) PROXY VOTING RECORD ON
Kathleen Fuentes, Chief 858-8850. The SUNAMERICA INCOME FUNDS
Legal Officer and in-formation is also Information regarding
Assistant Secretary available from the how the Funds voted
Gregory R. Kingston, EDGAR database on the proxies relating to
Treasurer U.S. Secu-rities and securities held in the
Donna McManus, Vice Exchange Commission's Funds during the most
President and website at recent twelve month
Assistant Treasurer http://www.sec.gov. period ended June 30
Shawn Parry, Vice DELIVERY OF is available, once
President and SHAREHOLDER DOCUMENTS filed with the U.S.
Assistant Treasurer The Funds have adopted Securities and
Matthew J. Hackethal, a policy that allows Exchange Commission,
Anti-Money Laundering them to send only one without charge, upon
Compliance Officer copy of a Fund's request, by calling
Investment Adviser prospectus, proxy (800) 858-8850 or on
SunAmerica Asset material, annual the U.S. Securities
Management, LLC report and semi-annual and Exchange
Harborside 5 report (the Commission's website
185 Hudson Street, Suite "shareholder at http://www.sec.gov.
3300 documents") to This report is
Jersey City, NJ 07311 shareholders with submitted solely for
Distributor multiple accounts the general
AIG Capital Services, residing at the same information of
Inc. "household." This shareholders of the
Harborside 5 practice is called Funds. Distribution of
185 Hudson Street, Suite householding and this report to persons
3300 reduces Fund expenses, other than
Jersey City, NJ 07311 which benefits you and shareholders of the
Shareholder Servicing other shareholders. Funds is authorized
Agent Unless the Funds only in con-nection
AIG Fund Services, Inc. receive instructions with a currently
Harborside 5 to the con-trary, you effective pro-spectus,
185 Hudson Street, Suite will only receive one setting forth details
3300 copy of the of the Funds, which
Jersey City, NJ 07311 shareholder documents. must precede or
Custodian The Funds will accom-pany this report.
State Street Bank and continue to household The accompanying
Trust Company the share-holder report has not been
One Lincoln Street documents audited by independent
Boston, MA 02111 indefinitely, until we accountants and
Transfer Agent are instructed accordingly no opinion
DST Asset Manager otherwise. If you do has been expressed
Solutions, Inc. not wish to thereon.
303 W 11th Street participate in
Kansas City, MO 64105 householding please
contact Shareholder
Services at (800)
858-8850 ext. 6010 or
send a written request
with your name, the
name of your fund(s)
and your
account number(s) to
AIG Funds,
P.O. Box 219186,
Kansas City MO,
64121-9186. We will
resume in-dividual
mailings for your
account within thirty
(30) days of receipt
of your request.
Go Paperless!!
Did you know that you have the option to
receive your shareholder reports online?
By choosing this convenient service, you will no longer receive paper copies of
Fund documents such as annual reports, semi-annual reports, prospectuses and
proxy statements in the mail. Instead, you are provided with quick and easy
access to this information via the Internet.
Why Choose Electronic Delivery?
It's Quick -- Fund documents will be received faster than via traditional mail.
It's Convenient -- Elimination of bulky documents from personal files.
It's Cost Effective -- Reduction of your Fund's printing and mailing costs.
To sign up for electronic delivery, follow
these simple steps:
1 Go to www.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.
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).
This fund report must be preceded by or accompanied by a prospectus.
Investors should carefully consider a Fund's investment objectives, risks,
charges and expenses before investing. The prospectus, containing this and
other important information, can be obtained from your financial adviser, the
AIG Funds Sales Desk at 800-858-8850, ext. 6003, or at aig.com/funds. Read the
prospectus carefully before investing.
aig.com/funds
INSAN - 9/19
[LOGO]
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
Included in Item 1 to the Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders
may recommend nominees to the registrant's Board of Trustees that were
implemented after the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR
229.407) (as required by 22(b)(15)) of Schedule 14A (17 CFR 240.14a-
101), or this Item 10.
Item 11. Controls and Procedures.
(a) An evaluation was performed within 90 days of the filing of this
report, under the supervision and with the participation of the
registrant's management, including the President and Treasurer, of the
effectiveness of the design and operation of the registrant's
disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940 (17 CFR 270.30a-3(c))). Based
on that evaluation, the registrant's management, including the
President and Treasurer, concluded that the registrant's disclosure
controls and procedures are effective.
(b) There was no change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act
of 1940 (17 CFR 270.30a-3(d))) that occurred during the most recent
fiscal half-year that has materially affected, or is reasonably likely
to materially affect, the registrant's internal contro1 over financial
reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management
Investment Companies.
Not applicable.
Item 13. 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.
(4) Not applicable.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(a)) and Section 906 of the Sarbanes-
Oxley Act of 2002 attached hereto as Exhibit 99.906.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
SunAmerica Income Funds
By: /s/ John T. Genoy
-----------------------
John T. Genoy
President
Date: December 06, 2019
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ John T. Genoy
-----------------------
John T. Genoy
President
Date: December 06, 2019
By: /s/ Gregory R. Kingston
-----------------------
Gregory R. Kingston
Treasurer
Date: December 06, 2019