UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21482
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SunAmerica Specialty Series
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(Exact name of registrant as specified in charter)
Harborside 5, 185 Hudson Street, Jersey City, NJ 07311
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(Address of principal executive offices) (Zip code)
John T. Genoy
Senior Vice President
SunAmerica Asset Management, LLC
Harborside 5,
185 Hudson Street,
Jersey City, NJ 07311
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(Name and address of agent for service)
Registrant's telephone number, including area code: (201) 324-6414
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Date of fiscal year end: October 31
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Date of reporting period: October 31, 2019
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Item 1. Reports to Stockholders
2019 ANNUAL REPORT
SUNAMERICA SPECIALTY SERIES
Commodity Strategy Fund
ESG Dividend Fund
Focused Alpha Large-Cap Fund
Focused Growth Fund
Income Explorer Fund
Small-Cap Fund
[GRAPHIC]
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]
TABLE OF CONTENTS
A MESSAGE FROM THE PRESIDENT................................ 2
EXPENSE EXAMPLE............................................. 5
STATEMENT OF ASSETS AND LIABILITIES......................... 7
STATEMENT OF OPERATIONS..................................... 9
STATEMENT OF CHANGES IN NET ASSETS.......................... 11
FINANCIAL HIGHLIGHTS........................................ 13
PORTFOLIO OF INVESTMENTS.................................... 19
NOTES TO FINANCIAL STATEMENTS............................... 66
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM..... 91
APPROVAL OF THE INVESTMENT ADVISORY AND MANAGEMENT
AGREEMENTS AND SUBADVISORY AGREEMENTS....................... 92
TRUSTEE AND OFFICER INFORMATION............................. 98
SHAREHOLDER TAX INFORMATION................................. 100
COMPARISONS: FUNDS VS. INDICES.............................. 101
A MESSAGE FROM THE PRESIDENT -- (UNAUDITED)
Dear Shareholders:
We are pleased to present this annual update for SunAmerica Specialty Series
(the "Specialty Series"), including AIG Commodity Strategy Fund, AIG ESG
Dividend Fund, AIG Focused Alpha Large-Cap Fund, AIG Focused Growth Fund, AIG
Income Explorer Fund and AIG Small-Cap Fund (the "Funds"), covering the
12-month period ended October 31, 2019.
From a broad perspective, the 12 months ended October 31, 2019 was a period
wherein both global equity markets and global fixed income markets overall
posted sizable positive gains, while commodities generated negative absolute
returns, all amid volatility-inducing headlines involving shifting central bank
monetary policies, slowing global economic growth, persistent trade tensions
and geopolitical hotspots.
Following a challenging October 2018, global equities enjoyed a brief reprieve
as the annual period began in November 2018 on dovish+ comments from U.S.
Federal Reserve (the "Fed") Chair Powell and seemingly encouraging progress
toward China-U.S. trade talks. However, the relief rally proved short-lived,
with global equities plunging in December on renewed concerns about slowing
global economic growth. During the fourth quarter of 2018, U.S. equities
suffered their largest quarterly loss since 2011. European equities ended the
quarter lower on concerns about budget negotiations between Italy and the
European Union, protests in France, Brexit++ risks and trade developments.
Pacific Basin equity markets ended the calendar year on a disappointing note,
with Japanese equities underperforming the region by a substantial margin, as
increased global economic growth risks weighed on Japan's export-dependent
economy. On the monetary policy front, the U.S. Fed raised its interest rates
by 25 basis points+++ in December to the highest level in a decade. The
European Central Bank (ECB) concluded its asset-purchase program but announced
it would continue its reinvestment policy for an extended period of time.
During the first ten months of 2019, global equity markets recovered from the
widespread volatility seen at the end of 2018, buoyed by seemingly productive
trade negotiations between the U.S. and China and by dovish rhetoric and policy
actions from the major central banks. Year-to-date through October 31, 2019,
the broad equity markets of the U.S., Europe and the Pacific Basin, including
Japan, each posted a double-digit gain. The ECB surprised markets by pushing
back interest rate increases, slashing its economic growth forecast and
announcing an extended liquidity policy. The Fed cut U.S. interest rates in
July, September and October - its first cuts since 2008 - in an effort to
extend the U.S. economic expansion amid a slowdown in growth and ongoing trade
uncertainty. In October, the U.S. and China made what appeared to be
substantial progress toward a trade agreement. In Europe, Brexit remained a
major concern but the risk of a no-deal departure from the European Union
declined after a draft deal was agreed upon in October 2019, though the U.K.
Parliament delayed its vote by three months. Other key concerns included
persistently sluggish global economic growth and antigovernment protests in
Hong Kong, which took a significant toll on its economy.
During the annual period overall, developed market equities, as measured by the
MSCI World Index,/*/ modestly outperformed emerging market equities, as
measured by the MSCI Emerging Markets Index./*/ Among the developed markets,
U.S. equities, as measured by the S&P 500 Index,/*/ outperformed non-U.S.
equities, as measured by the MSCI EAFE Index./*/ Within the U.S. equity market,
large-cap stocks performed best, followed closely by mid-cap stocks and then,
at some distance, by small-cap stocks. Growth stocks significantly outpaced
valued stocks across the capitalization spectrum.
The broad global fixed income market similarly posted solid gains for the
annual period, as trade uncertainties, slowing economic growth concerns and
dovish pivots by most major central banks supported a consistent decline in
global government bond yields through September 2019 before edging up in
October. For the annual period as a whole, U.S. investment grade corporate
bonds and emerging markets debt performed best, followed by commercial
mortgage-backed securities and U.S. Treasuries. U.S. high yield corporate
bonds, mortgage-backed securities and asset-backed securities posted positive
returns but underperformed U.S. Treasuries.
2
A MESSAGE FROM THE PRESIDENT -- (UNAUDITED) (CONTINUED)
Commodities were volatile during the annual period. The asset class declined at
the end of 2018 amid a sharp correction in energy and then realized one of
their best quarterly performances in a decade in the first quarter of 2019 on
improved supply and demand fundamentals and more optimistic global trade
sentiment. Commodities then declined during the second and third quarters of
2019 before gaining again in October 2019. Much of this volatility can be
attributed to oil prices. After dropping significantly during the fourth
quarter of 2018, oil prices rose slowly through the remainder of the annual
period, only to skyrocket in September amid a coordinated drone attack on
numerous Saudi oil facilities. In October, oil gained on falling U.S. rig
counts and a shut-in of a British oil field. While energy was the weakest
commodity sector, tariffs led agriculture and livestock to also post negative
returns for the annual period. Industrial metals eked out a modest gain but
were pressured by trade tensions. Precious metals was the strongest commodity
sector for the annual period as investors digested more accommodative monetary
policy, weaker economic data and uncertainty around U.S. and China trade
relations.
On the following pages, you will find the financial statements and portfolio
information for each of the Funds for the annual period ended October 31, 2019.
You will also find a comprehensive review of the portfolios' performance and
management strategies over the same annual period.
Thank you for being a part of the Specialty Series Funds. We value your ongoing
confidence in us and look forward to serving your investment needs in the
future. As always, if you have any questions regarding your investments, please
contact your financial advisor or get in touch with us directly at 800-858-8850
or via our website at www.aig.com/funds.
Sincerely,
/s/ Sharon French
Sharon French
President & CEO
SunAmerica Asset Management, LLC
--------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. DIVERSIFICATION AND ASSET
ALLOCATION DO NOT GUARANTEE A PROFIT NOR PROTECT AGAINST A LOSS.
+ Dovish language tends to suggest lower interest rates; opposite of hawkish.
++ Brexit indicates the U.K.'s path out of the European Union.
+++A basis point is 1/100/th/ of a percentage point.
* The MSCI WORLD INDEX is a free float-adjusted market capitalization-weighted
index that is designed to measure the equity market performance of 23
developed markets. The MSCI EMERGING MARKETS INDEX is a free float-adjusted
market capitalization index that is designed to measure equity market
performance of 26 emerging markets. The S&P 500 INDEX is an unmanaged,
weighted index of 500 large company stocks that is widely-recognized as
representative of the performance of the U.S. stock market. The MSCI EAFE
(EUROPE, AUSTRALASIA, FAR EAST) INDEX is a free float-adjusted market
capitalization index that is designed to measure the equity market
performance of 21 developed markets, excluding the US & Canada. Indices are
not managed and an investor cannot invest directly into an index.
The AIG Commodity Strategy Fund is not a complete investment program and should
not be an investor's sole investment because its performance is linked to the
performance of highly volatile commodities. Investors should consider buying
shares of the AIG Commodity Strategy Fund only as part of an overall portfolio
strategy that includes other asset classes, such as fixed income and equity
investments. Investors in the AIG Commodity Strategy Fund should be willing to
assume greater risks of potentially significant short-term share price
fluctuation because of the AIG Commodity Strategy Fund's investments in
commodity-linked derivative instruments.
The risks associated with the use of futures contracts by the AIG Commodity
Strategy Fund include the risk that: (i) changes in the price of a futures
contract may not always track the changes in market value of the underlying
reference asset; (ii) trading restrictions or limitations may be imposed by
3
A MESSAGE FROM THE PRESIDENT -- (UNAUDITED) (CONTINUED)
an exchange, and government regulations may restrict trading in futures
contracts; and (iii) if the Fund has insufficient cash to meet margin
requirements, the Fund may need to sell other investments, including at
disadvantageous times. Forwards are not exchange-traded and therefore no
clearinghouse or exchange stands ready to meet the obligations of the
contracts. Thus, the Fund faces the risk that its counterparties may not
perform their obligations. Investments that provide exposure to foreign markets
involve special risks, such as currency fluctuations, differing financial
reporting and regulatory standards, and economic and political instability.
These risks are highlighted when the issuer is in an emerging market. Fixed
income securities and currency and fixed income futures are subject to changes
in their value when prevailing interest rates change. Adverse changes in
currency exchange rates (relative to the U.S. dollar) may erode or reverse any
potential gains from futures instruments that are tied to foreign instruments
or currencies. The Fund also has exposure to the commodities markets, which may
subject it to greater volatility than investments in traditional securities.
The AIG Commodity Strategy Fund expects to invest a significant portion of its
assets in repurchase agreements collateralized by the U.S. government and its
agencies, and may also invest in other high-quality, short-term securities
("money market instruments"). The primary purpose of the repurchase agreements
and other money market instruments held by the Fund will be to serve as
collateral for the futures instruments. The Fund's investments in repurchase
agreements involve certain risks involving the default or insolvency of the
seller and counterparty risk (i.e., the risk that the counterparty will not
perform its obligations). The Fund's returns are expected to be derived
principally from changes in the value of the assets underlying the futures
instruments held by the Fund. Active trading of the Fund's portfolio may result
in high portfolio turnover and correspondingly greater brokerage commissions
and other transaction costs, which will be borne directly by the Fund and which
will affect the Fund's performance. Active trading may also result in increased
tax liability for Fund shareholders. Investors should note that the ability of
the subadviser to successfully implement the Fund's strategies, including the
proprietary investment processes used by the subadviser, will influence the
performance of the Fund significantly.
Focused funds are less diversified than typical mutual funds; therefore, the
performance of each holding in a focused fund has a greater impact upon the
overall portfolio, which increases risk. Stocks of small-cap and mid-cap
companies are generally more volatile than and not as readily marketable as
those of larger companies and may have fewer resources and a greater risk of
business failure than do large companies.
4
SUNAMERICA SPECIALTY SERIES
EXPENSE EXAMPLE -- OCTOBER 31, 2019 -- (UNAUDITED)
DISCLOSURE OF FUND EXPENSES IN SHAREHOLDER REPORTS
As a shareholder of a Fund (each a "Fund" and collectively, the "Funds") in the
SunAmerica Specialty Series (the "Trust"), you may incur two types of costs:
(1) transaction costs, including applicable sales charges (loads) on purchase
payments and contingent deferred sales charges and (2) ongoing costs, including
management fees; distribution and account maintenance fees; and other Fund
expenses. This Example is intended to help you understand your ongoing costs
(in dollars) of investing in the Funds and to compare these costs with the
ongoing costs of investing in other mutual funds. The Example is based on an
investment of $1,000 invested at May 1, 2019 and held until October 31, 2019.
ACTUAL EXPENSES
The "Actual" section of the table provides information about your actual
account values and actual expenses. You may use the information in these
columns, together with the amount you invested, to estimate the expenses that
you paid over the period. Simply divide your account value by $1,000 (for
example, an $8,600 account value divided by $1,000 = 8.6), then multiply the
result by the number in the column under the heading entitled "Expenses Paid
During the Six Months Ended October 31, 2019" to estimate the expenses you paid
on your account during this period. For shareholder accounts in classes other
than Class W, the "Expenses Paid During the Six Months Ended October 31, 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 October 31, 2019" column and the "Annualized Expense Ratio" column
do not include administrative or other fees that may apply to qualified
retirement plan accounts and accounts held through financial institutions. See
the Funds' prospectuses, your retirement plan document and/or materials from
your financial advisers for a full description of these fees. Had these fees
been included, the "Expenses Paid During the Six Months Ended October 31, 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. For shareholder accounts in classes other than Class W, the
"Expenses Paid During the Six Months Ended October 31, 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 October
31, 2019" column and the "Annualized Expense Ratio" column do not include
administrative or other fees that may apply to qualified retirement plan
accounts and accounts held through financial institutions. See the Funds'
prospectuses, your retirement plan document and/or materials from your
financial advisers for a full description of these fees. Had these fees been
included, the "Expenses Paid During the Six Months Ended October 31, 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 materials from your
financial adviser, for more information. Therefore, the "Hypothetical" example
is useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs and other fees were included, your costs would have been
higher.
5
SUNAMERICA SPECIALTY SERIES
EXPENSE EXAMPLE -- OCTOBER 31, 2019 -- (UNAUDITED) (CONTINUED)
ACTUAL HYPOTHETICAL
----------------------------------------------- --------------------------------------------------------
ENDING ACCOUNT
ENDING ACCOUNT EXPENSES PAID VALUE USING A EXPENSES PAID
BEGINNING VALUE USING DURING THE BEGINNING HYPOTHETICAL 5% DURING THE
ACCOUNT VALUE ACTUAL RETURN AT SIX MONTHS ENDED ACCOUNT VALUE ANNUAL RETURN SIX MONTHS ENDED ANNUALIZED
AT MAY 1, OCTOBER 31, OCTOBER 31, AT MAY 1, AT OCTOBER 31, OCTOBER 31, EXPENSE
2019 2019 2019* 2019 2019 2019* RATIO*
------------- ---------------- ---------------- ------------- --------------- ---------------- ----------
AIG COMMODITY
STRATEGY FUND@
Class A#......... $1,000.00 $ 984.89 $ 8.61 $1,000.00 $1,016.53 $ 8.74 1.72%
Class C#......... $1,000.00 $ 980.98 $11.83 $1,000.00 $1,013.26 $12.03 2.37%
Class W#......... $1,000.00 $ 985.10 $ 7.61 $1,000.00 $1,017.54 $ 7.73 1.52%
AIG ESG DIVIDEND
FUND
Class A#......... $1,000.00 $ 991.64 $ 5.67 $1,000.00 $1,019.51 $ 5.75 1.13%
Class C#......... $1,000.00 $ 989.05 $ 8.92 $1,000.00 $1,016.23 $ 9.05 1.78%
Class W#......... $1,000.00 $ 992.75 $ 4.67 $1,000.00 $1,020.52 $ 4.74 0.93%
AIG FOCUSED ALPHA
LARGE-CAP FUND
Class A.......... $1,000.00 $ 987.21 $ 8.16 $1,000.00 $1,016.99 $ 8.29 1.63%
Class C.......... $1,000.00 $ 984.11 $11.20 $1,000.00 $1,013.91 $11.37 2.24%
Class W#......... $1,000.00 $ 987.76 $ 7.62 $1,000.00 $1,017.54 $ 7.73 1.52%
AIG FOCUSED
GROWTH FUND
Class A#......... $1,000.00 $ 941.26 $ 5.53 $1,000.00 $1,019.51 $ 5.75 1.13%
Class C#......... $1,000.00 $ 937.67 $ 8.69 $1,000.00 $1,016.23 $ 9.05 1.78%
Class W#......... $1,000.00 $ 942.09 $ 4.55 $1,000.00 $1,020.52 $ 4.74 0.93%
AIG INCOME
EXPLORER FUND
Class A#......... $1,000.00 $1,053.46 $ 8.90 $1,000.00 $1,016.53 $ 8.74 1.72%
Class C#......... $1,000.00 $1,050.12 $12.25 $1,000.00 $1,013.26 $12.03 2.37%
Class W#......... $1,000.00 $1,054.45 $ 7.87 $1,000.00 $1,017.54 $ 7.73 1.52%
AIG SMALL-CAP FUND
Class A#......... $1,000.00 $ 950.78 $ 6.15 $1,000.00 $1,018.90 $ 6.36 1.25%
Class C#......... $1,000.00 $ 947.97 $ 9.33 $1,000.00 $1,015.63 $ 9.65 1.90%
Class W#......... $1,000.00 $ 951.40 $ 5.16 $1,000.00 $1,019.91 $ 5.35 1.05%
--------
* Expenses are equal to each Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 184 days then divided
by 365 days (to reflect the one-half year period).
These ratios do not reflect transaction costs, including sales charges on
purchase payments, contingent deferred sales charges, small account fees and
administrative fees, if applicable to your account. Please refer to your
Prospectus, your retirement plan document and/or materials from your
financial adviser, for more information.
# During the stated period, the investment adviser either waived a portion of
or all of the fees and assumed a portion of or all expenses for the Funds or
through recoupment provisions, recovered a portion of or all fees and
expenses waived or reimbursed in the previous two fiscal years. As a result,
if these fees and expenses had not been waived or assumed, the
"Actual/Hypothetical Ending Account Value" would have been lower and the
"Actual/Hypothetical Expenses Paid During the Six Months Ended October 31,
2019" and the "Annualized Expense Ratio" would have been higher. If these
fees and expenses had not been recouped, the "Actual/Hypothetical Ending
Account Value" would have been higher and the "Actual/Hypothetical Expenses
Paid During the Six Months Ended October 31, 2019" and the "Annualized
Expense Ratio" would have been lower.
@ Consolidated (see Note 2 to Notes to Financial Statements)
6
SUNAMERICA SPECIALTY SERIES
STATEMENT OF ASSETS AND LIABILITIES -- OCTOBER 31, 2019
AIG
AIG AIG FOCUSED AIG AIG
COMMODITY ESG ALPHA FOCUSED INCOME AIG
STRATEGY DIVIDEND LARGE-CAP GROWTH EXPLORER SMALL-CAP
FUND# FUND FUND FUND** FUND FUND
----------- ----------- ------------ ------------ ----------- -----------
ASSETS:
Investments at value (unaffiliated)*................... $16,899,044 $30,307,466 $620,854,274 $541,952,521 $42,529,680 $45,047,429
Repurchase agreements (cost approximates value)........ 16,100,000 552,000 -- -- -- 252,000
Cash................................................... 7,731 772 4,995,547 3,958,766 448,251 1,110
Foreign cash*.......................................... -- -- -- -- 131,076 --
Receivable for:
Shares of beneficial interest sold.................... 45,767 151,700 240,620 122,179 62,419 53,502
Dividends and interest................................ 22,934 73,260 729,250 239,141 243,015 11,961
Investments sold...................................... -- -- 6,625,933 233,931 234,595 664,175
Investments sold on an extended settlement basis....... -- -- -- -- 257,081 --
Receipts on swap contracts............................. 223,048 -- -- -- -- --
Prepaid expenses and other assets...................... 5,655 1,546 18,170 26,515 5,587 5,848
Cash collateral for futures contracts.................. 120,340 -- -- -- -- --
Due from broker........................................ 158,000 -- -- -- -- 23,215
Due from investment adviser for expense
reimbursements/fee waivers............................ 28,265 39,567 -- 474,677 73,533 64,326
Variation margin on futures contracts.................. 88,782 -- -- -- -- --
Unrealized appreciation on forward foreign currency
contracts............................................. -- -- -- -- 344 --
Unrealized appreciation on swap contracts.............. 48,409 -- -- -- -- --
----------- ----------- ------------ ------------ ----------- -----------
Total assets.......................................... 33,747,975 31,126,311 633,463,794 547,007,730 43,985,581 46,123,566
----------- ----------- ------------ ------------ ----------- -----------
LIABILITIES:
Payable for:
Shares of beneficial interest redeemed................ 50,400 25,944 800,758 534,073 174,341 81,953
Investments purchased................................. 603,389 -- 3,748,741 -- 42,121 285,149
Investments purchased on an extended settlement basis. -- -- -- -- 102,521 50
Investment advisory and management fees............... 22,423 19,335 529,689 461,900 36,801 38,374
Distribution and account maintenance fees............. 10,014 8,101 200,571 182,301 14,104 13,845
Transfer agent fees and expenses...................... 7,121 6,191 132,523 124,325 8,856 9,633
Trustees' fees and expenses........................... 158 141 2,977 2,840 220 259
Other accrued expenses................................ 215,812 93,053 178,806 16,798 123,462 130,613
Line of credit........................................ -- -- 100,000 275,000 -- --
Due to investment adviser from expense recoupment..... -- -- 3,406 -- -- --
Call and put options written, at value@............... 21,845 -- -- -- -- --
Variation margin on futures contracts.................. 208,899 -- -- -- -- 2,750
Unrealized depreciation on forward foreign currency
contracts............................................. -- -- -- -- 10,541 --
Due to broker.......................................... -- -- -- -- -- 23,193
----------- ----------- ------------ ------------ ----------- -----------
Total liabilities..................................... 1,140,061 152,765 5,697,471 1,597,237 512,967 585,819
----------- ----------- ------------ ------------ ----------- -----------
NET ASSETS............................................. $32,607,914 $30,973,546 $627,766,323 $545,410,493 $43,472,614 $45,537,747
=========== =========== ============ ============ =========== ===========
--------
# Consolidated (see Note 2)
** See Note 1
See Notes to Financial Statements
7
SUNAMERICA SPECIALTY SERIES
STATEMENT OF ASSETS AND LIABILITIES -- OCTOBER 31, 2019 -- (CONTINUED)
AIG
AIG AIG FOCUSED AIG AIG
COMMODITY ESG ALPHA FOCUSED INCOME AIG
STRATEGY DIVIDEND LARGE-CAP GROWTH EXPLORER SMALL-CAP
FUND# FUND FUND FUND** FUND FUND
------------ ----------- ------------ ------------ ----------- -----------
NET ASSETS REPRESENTED BY:
Paid-in capital................................... $128,098,778 $30,464,692 $456,549,464 $388,900,433 $43,533,290 $42,331,321
Total accumulated earnings (loss)................. (95,490,864) 508,854 171,216,859 156,510,060 (60,676) 3,206,426
------------ ----------- ------------ ------------ ----------- -----------
Net assets........................................ $ 32,607,914 $30,973,546 $627,766,323 $545,410,493 $43,472,614 $45,537,747
============ =========== ============ ============ =========== ===========
*Cost
Investments (unaffiliated)....................... $ 17,041,101 $29,697,011 $513,709,098 $436,860,700 $41,975,518 $42,543,127
============ =========== ============ ============ =========== ===========
Foreign cash..................................... $ -- $ -- $ -- $ -- $ 127,743 $ --
============ =========== ============ ============ =========== ===========
@Premiums received on options written............. $ 18,316 $ -- $ -- $ -- $ -- $ --
============ =========== ============ ============ =========== ===========
CLASS A (UNLIMITED SHARES AUTHORIZED):
Net assets........................................ $ 29,938,336 $20,873,950 $570,080,510 $445,683,404 $35,511,711 $37,068,940
Shares of beneficial interest issued and
outstanding...................................... 4,592,486 1,394,985 19,959,265 17,493,456 2,277,548 2,257,725
Net asset value and redemption price per share
(excluding any applicable contingent deferred
sales charge).................................... $ 6.52 $ 14.96 $ 28.56 $ 25.48 $ 15.59 $ 16.42
Maximum sales charge (5.75% of offering price).... 0.40 0.91 1.74 1.55 0.95 1.00
------------ ----------- ------------ ------------ ----------- -----------
Maximum offering price to public.................. $ 6.92 $ 15.87 $ 30.30 $ 27.03 $ 16.54 $ 17.42
============ =========== ============ ============ =========== ===========
CLASS C (UNLIMITED SHARES AUTHORIZED):
Net assets........................................ $ 1,051,173 $ 1,019,117 $ 34,632,103 $ 52,219,125 $ 3,595,289 $ 2,550,745
Shares of beneficial interest issued and
outstanding...................................... 169,723 68,229 1,300,480 2,210,486 231,004 162,796
Net asset value, offering and redemption price
per share (excluding any applicable contingent
deferred sales charge)........................... $ 6.19 $ 14.94 $ 26.63 $ 23.62 $ 15.56 $ 15.67
============ =========== ============ ============ =========== ===========
CLASS W (UNLIMITED SHARES AUTHORIZED):
Net assets........................................ $ 1,618,405 $ 9,080,479 $ 23,053,710 $ 47,507,964 $ 4,365,614 $ 5,918,062
Shares of beneficial interest issued and
outstanding...................................... 244,710 606,496 793,181 1,825,322 279,976 355,611
Net asset value, offering and redemption price
per share........................................ $ 6.61 $ 14.97 $ 29.06 $ 26.03 $ 15.59 $ 16.64
============ =========== ============ ============ =========== ===========
--------
# Consolidated (see Note 2)
** See Note 1
See Notes to Financial Statements
8
SUNAMERICA SPECIALTY SERIES
STATEMENT OF OPERATIONS -- FOR THE PERIOD ENDED OCTOBER 31, 2019
AIG
AIG AIG FOCUSED AIG AIG
COMMODITY ESG ALPHA FOCUSED INCOME AIG
STRATEGY DIVIDEND LARGE-CAP GROWTH EXPLORER SMALL-CAP
FUND# FUND FUND FUND** FUND FUND
--------- --------- ----------- ----------- ---------- ----------
INVESTMENT INCOME:
Dividends (unaffiliated)................................ $ -- $ 970,657 $10,230,795 $ 3,941,251 $2,362,081 $ 454,400
Interest (unaffiliated)................................. 758,784 2,454 -- -- 573,751 9,712
--------- --------- ----------- ----------- ---------- ----------
Total investment income*............................. 758,784 973,111 10,230,795 3,941,251 2,935,832 464,112
--------- --------- ----------- ----------- ---------- ----------
EXPENSES:
Investment advisory and management fees................ 403,041 217,130 6,254,988 5,934,776 474,733 546,658
Distribution and account maintenance fees:
Class A.............................................. 105,672 68,344 1,917,157 1,614,180 130,964 153,578
Class C.............................................. 14,960 5,092 338,018 601,838 38,288 31,460
Service fees:
Class W.............................................. 2,229 9,497 29,682 92,934 8,636 10,393
Transfer agent fees and expenses:
Class A.............................................. 72,660 49,328 1,359,085 1,172,182 86,209 103,952
Class C.............................................. 4,714 2,913 87,695 141,925 10,257 9,043
Class W.............................................. 4,305 14,916 47,091 137,975 13,908 16,615
Registration fees:
Class A.............................................. 21,400 25,487 33,373 40,284 21,339 21,782
Class C.............................................. 12,913 12,774 14,980 18,594 12,976 13,062
Class W.............................................. 12,921 13,632 12,981 20,877 14,372 19,327
Custodian and accounting fees.......................... 132,039 33,404 67,943 69,908 46,959 71,131
Reports to shareholders................................ 19,301 13,187 133,116 130,540 18,003 23,185
Audit and tax fees..................................... 82,498 60,568 52,981 53,017 77,880 63,803
Legal fees............................................. 27,146 19,425 54,653 53,430 67,376 21,111
Trustees' fees and expenses............................ 2,188 1,823 40,867 39,877 3,267 3,877
Interest expense....................................... -- 720 1,030 13,657 1,381 1,030
Other expenses......................................... 53,832 25,355 34,665 33,414 19,067 68,023
--------- --------- ----------- ----------- ---------- ----------
Total expenses before fee waivers, expense
reimbursements, expense recoupments and fees paid
indirectly.......................................... 971,819 573,595 10,480,305 10,169,408 1,045,615 1,178,030
Fees waived and expenses reimbursed by investment
advisor (see Note 4)................................ (387,967) (251,885) 1,093 (3,020,120) (215,702) (470,591)
Fees paid indirectly (see Note 9).................... -- -- (12,890) (25,157) -- --
--------- --------- ----------- ----------- ---------- ----------
Net expenses......................................... 583,852 321,710 10,468,508 7,124,131 829,913 707,439
--------- --------- ----------- ----------- ---------- ----------
Net investment income (loss)............................ 174,932 651,401 (237,713) (3,182,880) 2,105,919 (243,327)
--------- --------- ----------- ----------- ---------- ----------
--------
# Consolidated (see Note 2)
** See Note 1
See Notes to Financial Statements
9
SUNAMERICA SPECIALTY SERIES
STATEMENT OF OPERATIONS -- FOR THE PERIOD ENDED OCTOBER 31, 2019 --
(CONTINUED)
AIG
AIG AIG FOCUSED AIG AIG
COMMODITY ESG ALPHA FOCUSED INCOME AIG
STRATEGY DIVIDEND LARGE-CAP GROWTH EXPLORER SMALL-CAP
FUND# FUND FUND FUND** FUND FUND
----------- ---------- ----------- ------------ ---------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on:
Investments (unaffiliated)..................... $ (39,019) $ (127,868) $66,026,711 $ 54,586,958 $ (495,216) $ 1,177,973
Futures contracts.............................. (2,878,187) -- -- -- -- (871,114)
Forward contracts.............................. -- -- -- -- 22,291 --
Swap contracts................................. (665,688) -- -- -- -- --
Written options contracts...................... (15,934) -- -- -- -- --
Net realized foreign exchange gain (loss) on
other assets and liabilities..................... 17 -- (5,111) -- (5,556) (4)
----------- ---------- ----------- ------------ ---------- -----------
Net realized gain (loss) on investments and
foreign currencies............................... (3,598,811) (127,868) 66,021,600 54,586,958 (478,481) 306,855
----------- ---------- ----------- ------------ ---------- -----------
Change in unrealized appreciation (depreciation)
on:
Investments (unaffiliated)..................... (86,473) 943,313 (6,772,830) (29,287,154) 4,029,329 (3,964,598)
Futures contracts.............................. 1,681,085 -- -- -- -- 696,793
Forward contracts.............................. -- -- -- -- (10,197) --
Swap contracts................................. 84,436 -- -- -- -- --
Written options contracts...................... (4,421) -- -- -- -- --
Change in net unrealized foreign exchange gain
(loss) on other assets and liabilities........... -- -- -- -- 6,909 --
----------- ---------- ----------- ------------ ---------- -----------
Net unrealized gain (loss) on investments and
foreign currencies............................... 1,674,627 943,313 (6,772,830) (29,287,154) 4,026,041 (3,267,805)
----------- ---------- ----------- ------------ ---------- -----------
Net realized and unrealized gain (loss) on
investments and foreign currencies............... (1,924,184) 815,445 59,248,770 25,299,804 3,547,560 2,960,950
----------- ---------- ----------- ------------ ---------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS.................................. $(1,749,252) $1,466,846 $59,011,057 $ 22,116,924 $5,653,479 $(3,204,277)
=========== ========== =========== ============ ========== ===========
* Net of foreign withholding taxes on interest
and dividends of............................... $ -- $ -- $ 180,334 $ -- $ 72,863 $ 469
=========== ========== =========== ============ ========== ===========
--------
# Consolidated (see Note 2)
** See Note 1
See Notes to Financial Statements
10
SUNAMERICA SPECIALTY SERIES
STATEMENT OF CHANGES IN NET ASSETS
AIG COMMODITY AIG FOCUSED ALPHA
STRATEGY FUND# AIG ESG DIVIDEND FUND LARGE-CAP FUND
------------------------ ------------------------ ---------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2019 2018 2019 2018 2019 2018
----------- ----------- ----------- ----------- ------------- ------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss).............. $ 174,932 $ (66,034) $ 651,401 $ 491,653 $ (237,713) $ (1,710,075)
Net realized gain (loss) on investments
and foreign currencies.................. (3,598,811) (62,842) (127,868) 1,966,682 66,021,600 104,666,956
Net unrealized gain (loss) on investments
and foreign currencies.................. 1,674,627 (1,444,025) 943,313 (1,337,943) (6,772,830) (56,096,952)
----------- ----------- ----------- ----------- ------------- ------------
Net increase (decrease) in net assets
resulting from operations................. (1,749,252) (1,572,901) 1,466,846 1,120,392 59,011,057 46,859,929
----------- ----------- ----------- ----------- ------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Distributable earnings (Class A).......... (22,154) (61,011) (2,167,817) (926,828) (95,234,176) (42,929,817)
Distributable earnings (Class C).......... -- -- (41,456) (10,033) (6,231,964) (10,460,288)
Distributable earnings (Class W).......... (3,578) (6,043) (366,322) (44,270) (3,202,795) (1,279,042)
----------- ----------- ----------- ----------- ------------- ------------
Total distributions to shareholders........ (25,732) (67,054) (2,575,595) (981,131) (104,668,935) (54,669,147)
----------- ----------- ----------- ----------- ------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS
(SEE NOTE 7).............................. (1,999,689) (1,398,356) 6,227,356 85,994 45,531,906 (3,586,898)
----------- ----------- ----------- ----------- ------------- ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS.... (3,774,673) (3,038,311) 5,118,607 225,255 (125,972) (11,396,116)
NET ASSETS:
Beginning of period........................ 36,382,587 39,420,898 25,854,939 25,629,684 627,892,295 639,288,411
----------- ----------- ----------- ----------- ------------- ------------
End of period.............................. $32,607,914 $36,382,587 $30,973,546 $25,854,939 $ 627,766,323 $627,892,295
=========== =========== =========== =========== ============= ============
# Consolidated (see Note 2)
See Notes to Financial Statements
11
SUNAMERICA SPECIALTY SERIES
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
AIG FOCUSED GROWTH FUND* AIG INCOME EXPLORER FUND AIG SMALL-CAP FUND
--------------------------- ------------------------- -------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2019 2018 2019 2018 2019 2018
------------- ------------ ------------ ----------- ------------ -----------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss).............. $ (3,182,880) $ (7,052,513) $ 2,105,919 $ 1,864,499 $ (243,327) $ (653,531)
Net realized gain (loss) on investments
and foreign currencies.................. 54,586,958 124,402,736 (478,481) 557,806 306,855 7,622,304
Net unrealized gain (loss) on investments
and foreign currencies.................. (29,287,154) (88,684,131) 4,026,041 (4,505,960) (3,267,805) (4,655,934)
------------- ------------ ------------ ----------- ------------ -----------
Net increase (decrease) in net assets
resulting from operations................. 22,116,924 28,666,092 5,653,479 (2,083,655) (3,204,277) 2,312,839
------------- ------------ ------------ ----------- ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Distributable earnings (Class A).......... (94,208,878) (37,619,171) (2,180,601) (1,683,253) (4,719,487) (4,732,978)
Distributable earnings (Class C).......... (13,637,145) (7,778,934) (197,819) (193,863) (299,248) (210,588)
Distributable earnings (Class W).......... (14,308,470) (3,879,281) (336,621) (303,598) (1,238,362) (849,123)
------------- ------------ ------------ ----------- ------------ -----------
Total distributions to shareholders........ (122,154,493) (49,277,386) (2,715,041) (2,180,714) (6,257,097) (5,792,689)
------------- ------------ ------------ ----------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS
(SEE NOTE 7).............................. 7,266,843 65,890,995 (14,458,759) 14,751,199 (15,377,156) 15,298,243
------------- ------------ ------------ ----------- ------------ -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS.... (92,770,726) 45,279,701 (11,520,321) 10,486,830 (24,838,530) 11,818,393
NET ASSETS:
Beginning of period........................ 638,181,219 592,901,518 54,992,935 44,506,105 70,376,277 58,557,884
------------- ------------ ------------ ----------- ------------ -----------
End of period.............................. $ 545,410,493 $638,181,219 $ 43,472,614 $54,992,935 $ 45,537,747 $70,376,277
============= ============ ============ =========== ============ ===========
* See Note 1
See Notes to Financial Statements
12
SUNAMERICA SPECIALTY SERIES
FINANCIAL HIGHLIGHTS
NET GAIN
(LOSS) ON
NET INVESTMENTS NET NET
ASSET (BOTH DIVIDENDS DISTRIBUTIONS ASSET ASSETS RATIO OF
VALUE NET REALIZED TOTAL FROM FROM NET FROM TOTAL VALUE END OF EXPENSES
BEGINNING INVESTMENT AND INVESTMENT INVESTMENT NET REALIZED DISTRI- END OF TOTAL PERIOD TO AVERAGE
PERIOD ENDED OF PERIOD INCOME(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) (000'S) NET ASSETS(3)
------------ --------- ---------- ----------- ---------- ---------- ------------- ------- ------ --------- ------- -------------
AIG COMMODITY STRATEGY FUND#
----------------------------
CLASS A
-------
10/31/15 $7.74 $(0.09) $(0.25) $(0.34) $ -- $-- $ -- $7.40 (4.39)% $35,472 1.72%
10/31/16 7.40 (0.10) (0.22) (0.32) -- -- -- 7.08 (4.32) 35,228 1.72
10/31/17 7.08 (0.07) 0.12 0.05 -- -- -- 7.13 0.71 35,015 1.73
10/31/18 7.13 (0.01) (0.26) (0.27) (0.01) -- (0.01) 6.85 (3.75) 32,602 1.72
10/31/19 6.85 0.04 (0.37) (0.33) (0.00) -- (0.00) 6.52 (4.75) 29,938 1.72
CLASS C
-------
10/31/15 $7.58 $(0.13) $(0.25) $(0.38) $ -- $-- $ -- $7.20 (5.01)% $ 5,272 2.37%
10/31/16 7.20 (0.14) (0.22) (0.36) -- -- -- 6.84 (5.00) 3,478 2.37
10/31/17 6.84 (0.11) 0.12 0.01 -- -- -- 6.85 0.15 2,755 2.38
10/31/18 6.85 (0.06) (0.25) (0.31) -- -- -- 6.54 (4.53) 1,908 2.37
10/31/19 6.54 (0.01) (0.34) (0.35) -- -- -- 6.19 (5.35) 1,051 2.37
CLASS W
-------
10/31/15 $7.80 $(0.07) $(0.26) $(0.33) $ -- $-- $ -- $7.47 (4.23)% $ 2,979 1.52%
10/31/16 7.47 (0.09) (0.21) (0.30) -- -- -- 7.17 (4.02) 1,958 1.52
10/31/17 7.17 (0.06) 0.12 0.06 -- -- -- 7.23 0.84 1,651 1.53
10/31/18 7.23 0.01 (0.27) (0.26) (0.03) -- (0.03) 6.94 (3.64) 1,873 1.52
10/31/19 6.94 0.05 (0.36) (0.31) (0.02) -- (0.02) 6.61 (4.52) 1,618 1.52
RATIO
OF NET
INVESTMENT
INCOME TO
AVERAGE PORTFOLIO
NET ASSETS(3) TURNOVER
------------- ---------
(1.12)% 54%
(1.40) 50
(0.98) 49
(0.14) 1
0.54 62
(1.77)% 54%
(2.06) 50
(1.65) 49
(0.83) 1
(0.09) 62
(0.91)% 54%
(1.21) 50
(0.79) 49
0.08 1
0.73 62
--------
# Consolidated (see Note 2)
(1)Calculated based upon average shares outstanding.
(2)Total return does not reflect sales load, but does include expense
reimbursements and expense reductions.
(3)Net of following expense reimbursements, waivers and (recoupments), if
applicable (based on average net assets):
10/31/15 10/31/16 10/31/17 10/31/18 10/31/19
-------- -------- -------- -------- --------
Commodity Strategy Fund Class A......... 0.82% 0.85% 0.92% 0.83% 1.08%
Commodity Strategy Fund Class C......... 0.92 1.21 1.25 1.45 1.96
Commodity Strategy Fund Class W......... 0.84 1.48 1.52 1.49 1.93
See Notes to Financial Statements
13
SUNAMERICA SPECIALTY SERIES
FINANCIAL HIGHLIGHTS -- (CONTINUED)
NET GAIN
(LOSS) ON
NET INVESTMENTS NET NET
ASSET (BOTH DIVIDENDS DISTRIBUTIONS ASSET ASSETS RATIO OF
VALUE NET REALIZED TOTAL FROM FROM NET FROM TOTAL VALUE END OF EXPENSES
BEGINNING INVESTMENT AND INVESTMENT INVESTMENT NET REALIZED DISTRI- END OF TOTAL PERIOD TO AVERAGE
PERIOD ENDED OF PERIOD INCOME(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) (000'S) NET ASSETS(3)
------------ --------- ---------- ----------- ---------- ---------- ------------- ------- ------ --------- ------- -------------
AIG ESG DIVIDEND FUND
---------------------
CLASS A
-------
12/16/16@-
10/31/17 $15.00 $0.25 $0.56 $0.81 $ -- $ -- $ -- $15.81 5.40% $24,913 1.25%(4)
10/31/18 15.81 0.30 0.37 0.67 (0.51) (0.09) (0.60) 15.88 4.26(5) 22,973 1.25
10/31/19 15.88 0.33 0.28 0.61 (0.29) (1.24) (1.53) 14.96 4.35 20,874 1.14
CLASS C
-------
12/16/16@-
10/31/17 $15.00 $0.16 $0.56 $0.72 $ -- $ -- $ -- $15.72 4.80% $ 365 1.90%(4)
10/31/18 15.72 0.19 0.38 0.57 (0.34) (0.09) (0.43) 15.86 3.59(5) 384 1.90
10/31/19 15.86 0.21 0.31 0.52 (0.20) (1.24) (1.44) 14.94 3.71 1,019 1.78
CLASS W
-------
12/16/16@-
10/31/17 $15.00 $0.28 $0.56 $0.84 $ -- $ -- $ -- $15.84 5.60% $ 352 1.05%(4)
10/31/18 15.84 0.31 0.40 0.71 (0.57) (0.09) (0.66) 15.89 4.48(5) 2,498 1.05
10/31/19 15.89 0.34 0.30 0.64 (0.32) (1.24) (1.56) 14.97 4.57 9,080 0.93
RATIO
OF NET
INVESTMENT
INCOME TO
AVERAGE PORTFOLIO
NET ASSETS(3) TURNOVER
------------- ---------
1.92%(4) 18%
1.84 57
2.22 51
1.22%(4) 18%
1.18 57
1.51 51
2.06%(4) 18%
1.99 57
2.46 51
--------
@ Commencement of operations.
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load, but does
include expense reimbursements and expense reductions.
(3)Net of following expense reimbursements, waivers and (recoupments), if
applicable (based on average net assets):
10/31/17(4) 10/31/18 10/31/19
----------- -------- --------
ESG Dividend Fund Class A............... 1.25% 0.75% 0.81%
ESG Dividend Fund Class C............... 4.56 2.88 1.87
ESG Dividend Fund Class W............... 5.15 1.41 0.93
(4)Annualized.
(5)The Fund's performance figure was increased by 0.66% from a reimbursement of
losses resulting from an investment restriction violation.
See Notes to Financial Statements
14
SUNAMERICA SPECIALTY SERIES
FINANCIAL HIGHLIGHTS -- (CONTINUED)
NET GAIN
(LOSS) ON
NET INVESTMENTS NET NET
ASSET NET (BOTH DIVIDENDS DISTRIBUTIONS ASSET ASSETS RATIO OF
VALUE INVESTMENT REALIZED TOTAL FROM FROM NET FROM NET TOTAL VALUE END OF EXPENSES
BEGINNING INCOME AND INVESTMENT INVESTMENT REALIZED DISTRI- END OF TOTAL PERIOD TO AVERAGE
PERIOD ENDED OF PERIOD (LOSS)(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) (000'S) NET ASSETS(3)
------------ --------- ---------- ----------- ---------- ---------- ------------- ------- ------ --------- -------- -------------
AIG FOCUSED ALPHA LARGE-CAP FUND
--------------------------------
CLASS A
-------
10/31/15 $27.45 $(0.11) $ 0.86 $ 0.75 $-- $(1.64) $(1.64) $26.56 2.98% $495,598 1.66%
10/31/16 26.56 (0.11) (0.14) (0.25) -- (2.61) (2.61) 23.70 (0.91) 413,090 1.67
10/31/17 23.70 (0.07) 8.28 8.21 -- -- -- 31.91 34.64 505,796 1.65
10/31/18 31.91 (0.06) 2.30 2.24 -- (2.73) (2.73) 31.42 7.46 572,092 1.64
10/31/19 31.42 (0.00) 2.42 2.42 -- (5.28) (5.28) 28.56 9.96 570,081 1.64
CLASS C
-------
10/31/15 $26.96 $(0.28) $ 0.85 $ 0.57 $-- $(1.64) $(1.64) $25.89 2.33% $123,641 2.31%
10/31/16 25.89 (0.26) (0.14) (0.40) -- (2.61) (2.61) 22.88 (1.58) 106,319 2.32
10/31/17 22.88 (0.24) 7.97 7.73 -- -- -- 30.61 33.78 118,151 2.30
10/31/18 30.61 (0.26) 2.21 1.95 -- (2.73) (2.73) 29.83 6.78 35,561 2.30
10/31/19 29.83 (0.17) 2.25 2.08 -- (5.28) (5.28) 26.63 9.24 34,632 2.30
CLASS W
-------
10/31/15 $27.61 $(0.08) $ 0.88 $ 0.80 $-- $(1.64) $(1.64) $26.77 3.15% $ 16,475 1.52%(4)
10/31/16 26.77 (0.08) (0.15) (0.23) -- (2.61) (2.61) 23.93 (0.82) 8,368 1.52(4)
10/31/17 23.93 (0.05) 8.39 8.34 -- -- -- 32.27 34.85 15,342 1.52(4)
10/31/18 32.27 (0.03) 2.34 2.31 -- (2.73) (2.73) 31.85 7.60 20,240 1.52(4)
10/31/19 31.85 0.03 2.46 2.49 -- (5.28) (5.28) 29.06 10.07 23,054 1.52(4)
RATIO
OF NET
INVESTMENT
INCOME
(LOSS) TO
AVERAGE PORTFOLIO
NET ASSETS(3) TURNOVER
------------- ---------
(0.43)% 82%
(0.47) 38
(0.26) 68
(0.20) 65
(0.01) 94
(1.08)% 82%
(1.12) 38
(0.91) 68
(0.81) 65
(0.67) 94
(0.29)%(4) 82%
(0.31)(4) 38
(0.18)(4) 68
(0.09)(4) 65
0.11(4) 94
--------
(1)Calculated based upon average shares outstanding.
(2)Total return does not reflect sales load, but does include expense
reimbursements and expense reductions.
(3)Excludes expense reductions. If expense reductions had been applied, the
ratio of expenses to average net assets would have been lower and the ratio
of net investment income (loss) to average net assets would have been higher
by the following:
10/31/15 10/31/16 10/31/17 10/31/18 10/31/19
-------- -------- -------- -------- --------
Focused Alpha Large-Cap Fund Class A 0.00% 0.00% 0.00% 0.00% 0.00%
Focused Alpha Large-Cap Fund
Class C............................ 0.00 0.00 0.00 0.00 0.00
Focused Alpha Large-Cap Fund
Class W............................ 0.00 0.00 0.00 0.00 0.00
(4)Net of following expense reimbursements, waivers and (recoupments), if
applicable (based on average net assets):
10/31/15 10/31/16 10/31/17 10/31/18 10/31/19
-------- -------- -------- -------- --------
Focused Alpha Large-Cap Fund
Class A...................... -- % -- % -- % -- % -- %
Focused Alpha Large-Cap Fund
Class C...................... -- -- -- -- --
Focused Alpha Large-Cap Fund
Class W...................... 0.02 0.08 0.01 (0.00) (0.01)
See Notes to Financial Statements
15
SUNAMERICA SPECIALTY SERIES
FINANCIAL HIGHLIGHTS -- (CONTINUED)
NET GAIN
(LOSS) ON
NET INVESTMENTS NET NET
ASSET NET (BOTH DIVIDENDS DISTRIBUTIONS ASSET ASSETS RATIO OF
VALUE INVESTMENT REALIZED TOTAL FROM FROM NET FROM NET TOTAL VALUE END OF EXPENSES
BEGINNING INCOME AND INVESTMENT INVESTMENT REALIZED DISTRI- END OF TOTAL PERIOD TO AVERAGE
PERIOD ENDED OF PERIOD (LOSS)(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) (000'S) NET ASSETS(3)
------------ --------- ---------- ----------- ---------- ---------- ------------- ------- ------ --------- -------- -------------
AIG FOCUSED GROWTH FUND
-----------------------
CLASS A
-
10/31/15 $27.22 $(0.26) $0.73 $0.47 $-- $(0.84) $(0.84) $26.85 1.87% $441,345 1.67%
10/31/16 26.85 (0.25) 0.43 0.18 -- (3.27) (3.27) 23.76 0.75 369,683 1.68
10/31/17 23.76 (0.25) 8.52 8.27 -- (0.39) (0.39) 31.64 35.38 456,940 1.66
10/31/18 31.64 (0.33) 1.93 1.60 -- (2.61) (2.61) 30.63 5.41 493,051 1.65
10/31/19 30.63 (0.13) 0.94 0.81 -- (5.96) (5.96) 25.48 3.95 445,683 1.16(4)
CLASS C
-
10/31/15 $26.71 $(0.43) $0.71 $0.28 $-- $(0.84) $(0.84) $26.15 1.17% $ 99,519 2.33%(4)
10/31/16 26.15 (0.39) 0.41 0.02 -- (3.27) (3.27) 22.90 0.09 81,943 2.33
10/31/17 22.90 (0.41) 8.17 7.76 -- (0.39) (0.39) 30.27 34.47 90,491 2.32
10/31/18 30.27 (0.52) 1.86 1.34 -- (2.61) (2.61) 29.00 4.74 68,173 2.31
10/31/19 29.00 (0.28) 0.86 0.58 -- (5.96) (5.96) 23.62 3.25 52,219 1.81(4)
CLASS W
-
10/31/15 $27.37 $(0.21) $0.73 $0.52 $-- $(0.84) $(0.84) $27.05 2.05% $ 56,840 1.47%
10/31/16 27.05 (0.21) 0.43 0.22 -- (3.27) (3.27) 24.00 0.91 30,065 1.51
10/31/17 24.00 (0.20) 8.62 8.42 -- (0.39) (0.39) 32.03 35.65 45,470 1.48
10/31/18 32.03 (0.27) 1.96 1.69 -- (2.61) (2.61) 31.11 5.64 76,957 1.45
10/31/19 31.11 (0.08) 0.96 0.88 -- (5.96) (5.96) 26.03 4.14 47,508 0.97(4)
RATIO
OF NET
INVESTMENT
INCOME
(LOSS) TO
AVERAGE PORTFOLIO
NET ASSETS(3) TURNOVER
------------- ---------
(0.97)% 103%
(1.07) 29
(0.93) 66
(1.03) 94
(0.50)(4) 92
(1.64)%(4) 103%
(1.72) 29
(1.59) 66
(1.70) 94
(1.15)(4) 92
(0.78)% 103%
(0.86) 29
(0.75) 66
(0.83) 94
(0.30)(4) 92
--------
(1)Calculated based upon average shares outstanding.
(2)Total return does not reflect sales load, but does include expense
reimbursements and expense reductions.
(3)Excludes expense reductions. If expense reductions had been applied, the
ratio of expenses to average net assets would have been lower and the ratio
of net investment income (loss) to average net assets would have been higher
by the following:
10/31/15 10/31/16 10/31/17 10/31/18 10/31/19
-------- -------- -------- -------- --------
Focused Growth Fund Class A............. 0.00% 0.00% 0.00% 0.00% 0.00%
Focused Growth Fund Class C............. 0.00 0.00 0.00 0.00 0.00
Focused Growth Fund Class W............. 0.00 0.00 0.00 0.00 0.00
(4)Net of following expense reimbursements, waivers and (recoupments), if
applicable (based on average net assets):
10/31/15 10/31/19
-------- --------
Focused Growth Fund Class A............. -- % 0.51%
Focused Growth Fund Class C............. (0.00) 0.52
Focused Growth Fund Class W............. -- 0.51
See Notes to Financial Statements
16
SUNAMERICA SPECIALTY SERIES
FINANCIAL HIGHLIGHTS -- (CONTINUED)
NET GAIN
(LOSS) ON
NET INVESTMENTS NET NET
ASSET (BOTH DIVIDENDS DISTRIBUTIONS ASSET ASSETS RATIO OF
VALUE NET REALIZED TOTAL FROM FROM NET FROM TOTAL VALUE END OF EXPENSES
BEGINNING INVESTMENT AND INVESTMENT INVESTMENT NET REALIZED DISTRI- END OF TOTAL PERIOD TO AVERAGE
PERIOD ENDED OF PERIOD INCOME(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) (000'S) NET ASSETS(3)
------------ --------- ---------- ----------- ---------- ---------- ------------- ------- ------ --------- ------- -------------
AIG INCOME EXPLORER FUND
------------------------
CLASS A
-------
10/31/15 $15.96 $0.70 $(1.39) $(0.69) $(0.71) $(0.64) $(1.35) $13.92 (4.38)% $20,062 1.72%
10/31/16 13.92 0.62 0.60 1.22 (0.64) -- (0.64) 14.50 9.10 22,195 1.72
10/31/17 14.50 0.65 1.23 1.88 (0.57) -- (0.57) 15.81 13.21(4) 31,625 1.72
10/31/18 15.81 0.57 (1.08) (0.51) (0.68) (0.01) (0.69) 14.61 (3.42) 44,413 1.72
10/31/19 14.61 0.67 1.16 1.83 (0.70) (0.15) (0.85) 15.59 13.02 35,512 1.72
CLASS C
-------
10/31/15 $15.94 $0.60 $(1.38) $(0.78) $(0.62) $(0.64) $(1.26) $13.90 (5.00)% $ 3,110 2.37%
10/31/16 13.90 0.52 0.61 1.13 (0.55) -- (0.55) 14.48 8.42 3,307 2.37
10/31/17 14.48 0.55 1.22 1.77 (0.47) -- (0.47) 15.78 12.43(4) 4,954 2.37
10/31/18 15.78 0.50 (1.11) (0.61) (0.58) (0.01) (0.59) 14.58 (4.07) 4,360 2.37
10/31/19 14.58 0.57 1.17 1.74 (0.61) (0.15) (0.76) 15.56 12.31 3,595 2.37
CLASS W
-------
10/31/15 $15.96 $0.73 $(1.40) $(0.67) $(0.74) $(0.64) $(1.38) $13.91 (4.26)% $ 410 1.52%
10/31/16 13.91 0.63 0.63 1.26 (0.67) -- (0.67) 14.50 9.38 505 1.52
10/31/17 14.50 0.54 1.37 1.91 (0.60) -- (0.60) 15.81 13.44(4) 7,927 1.52
10/31/18 15.81 0.61 (1.09) (0.48) (0.71) (0.01) (0.72) 14.61 (3.24) 6,220 1.52
10/31/19 14.61 0.72 1.14 1.86 (0.73) (0.15) (0.88) 15.59 13.24 4,366 1.52
RATIO
OF NET
INVESTMENT
INCOME TO
AVERAGE PORTFOLIO
NET ASSETS(3) TURNOVER
------------- ---------
4.76% 50%
4.42 54
4.30 49
3.77 51
4.45 31
4.11% 50%
3.75 54
3.65 49
3.17 51
3.82 31
4.92% 50%
4.65 54
3.95 49
3.94 51
4.73 31
--------
(1)Calculated based upon average shares outstanding.
(2)Total return does not reflect sales load, but does include expense
reimbursements and expense reductions.
(3)Net of following expense reimbursements, waivers and (recoupments), if
applicable (based on average net assets):
10/31/15 10/31/16 10/31/17 10/31/18 10/31/19
-------- -------- -------- -------- --------
Income Explorer Fund Class A............ 0.42% 0.52% 0.40% 0.26% 0.41%
Income Explorer Fund Class C............ 0.75 0.97 0.56 0.52 0.73
Income Explorer Fund Class W............ 2.94 4.00 0.71 0.46 0.59
(4)The Portfolio's performance figure was increased by less than 0.01% from
gains on the disposal of investments in violation of investment restrictions.
See Notes to Financial Statements
17
SUNAMERICA SPECIALTY SERIES
FINANCIAL HIGHLIGHTS -- (CONTINUED)
NET GAIN
(LOSS) ON
NET INVESTMENTS NET NET
ASSET (BOTH DIVIDENDS DISTRIBUTIONS ASSET ASSETS RATIO OF
VALUE NET REALIZED TOTAL FROM FROM NET FROM TOTAL VALUE END OF EXPENSES
BEGINNING INVESTMENT AND INVESTMENT INVESTMENT NET REALIZED DISTRI- END OF TOTAL PERIOD TO AVERAGE
PERIOD ENDED OF PERIOD INCOME(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) (000'S) NET ASSETS(3)
------------ --------- ---------- ----------- ---------- ---------- ------------- ------- ------ --------- ------- -------------
AIG SMALL-CAP FUND
------------------
CLASS A
-------
10/31/15 $15.49 $(0.13) $ 1.06 $ 0.93 $-- $ -- $ -- $16.42 6.00% $51,789 1.72%
10/31/16 16.42 (0.10) 0.75 0.65 -- (1.32) (1.32) 15.75 4.61 42,739 1.72
10/31/17 15.75 (0.14) 5.22 5.08 -- (0.52) (0.52) 20.31 32.76 48,384 1.72
10/31/18 20.31 (0.19) 0.92 0.73 -- (2.00) (2.00) 19.04 4.05 50,471 1.73
10/31/19 19.04 (0.07) (0.75) (0.82) -- (1.80) (1.80) 16.42 (4.07) 37,069 1.28
CLASS C
-------
10/31/15 $15.41 $(0.23) $ 1.06 $ 0.83 $-- $ -- $ -- $16.24 5.39% $ 541 2.37%
10/31/16 16.24 (0.19) 0.72 0.53 -- (1.32) (1.32) 15.45 3.87 811 2.37
10/31/17 15.45 (0.26) 5.11 4.85 -- (0.52) (0.52) 19.78 31.89 1,944 2.37
10/31/18 19.78 (0.31) 0.89 0.58 -- (2.00) (2.00) 18.36 3.34 3,099 2.38
10/31/19 18.36 (0.17) (0.72) (0.89) -- (1.80) (1.80) 15.67 (4.66) 2,551 1.92
CLASS W
-------
10/31/15 $15.51 $(0.10) $ 1.07 $ 0.97 $-- $ -- $ -- $16.48 6.25% $ 110 1.52%
10/31/16 16.48 (0.07) 0.75 0.68 -- (1.32) (1.32) 15.84 4.79 341 1.52
10/31/17 15.84 (0.12) 5.26 5.14 -- (0.52) (0.52) 20.46 32.96 8,230 1.52
10/31/18 20.46 (0.16) 0.94 0.78 -- (2.00) (2.00) 19.24 4.29 16,806 1.53
10/31/19 19.24 (0.04) (0.76) (0.80) -- (1.80) (1.80) 16.64 (3.90) 5,918 1.11
RATIO
OF NET
INVESTMENT
INCOME TO
AVERAGE PORTFOLIO
NET ASSETS(3) TURNOVER
------------- ---------
(0.79)% 88%
(0.66) 67
(0.79) 65
(0.97) 63
(0.43) 63
(1.47)% 88%
(1.33) 67
(1.48) 65
(1.64) 63
(1.08) 63
(0.59)% 88%
(0.47) 67
(0.70) 65
(0.81) 63
(0.23) 63
--------
(1)Calculated based upon average shares outstanding.
(2)Total return does not reflect sales load, but does include expense
reimbursements and expense reductions.
(3)Net of following expense reimbursements, waivers and (recoupments), if
applicable (based on average net assets):
10/31/15 10/31/16 10/31/17 10/31/18 10/31/19
-------- -------- -------- -------- --------
Small Cap Fund Class A.................. 0.33% 0.26% 0.29% 0.22% 0.82%
Small Cap Fund Class C.................. 4.32 2.27 0.96 0.75 1.16
Small Cap Fund Class W.................. 13.86 5.01 0.50 0.36 1.01
See Notes to Financial Statements
18
SUNAMERICA SPECIALTY SERIES -- AIG COMMODITY STRATEGY FUND
PORTFOLIO PROFILE -- OCTOBER 31, 2019@ -- (UNAUDITED)
INDUSTRY ALLOCATION*
Repurchase Agreements........ 49.4%
U.S. Government Agencies..... 31.3
U.S. Government Treasuries... 5.8
United States Treasury Notes. 5.7
Federal Home Loan Bank....... 2.9
Federal Farm Credit Bank..... 1.7
Federal Home Loan Mtg. Corp.. 1.5
Investment Companies......... 1.5
Federal National Mtg. Assoc.. 1.4
-----
101.2%
=====
--------
* Calculated as a percentage of net assets
CREDIT QUALITY+**
Aaa. 100.0%
=====
--------
@ Consolidated (See Note 2)
+ Source: Moody's
** Calculated as a percentage of total debt issues, excluding short-term
securities.
19
SUNAMERICA SPECIALTY SERIES -- AIG COMMODITY STRATEGY FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019@
SHARES/
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
--------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES -- 7.5%
FEDERAL FARM CREDIT BANK FRS -- 1.7%
1.86% (1 ML + 0.08%)
due 02/01/2021............................... $300,000 $ 299,926
1.92% (SOFR + 0.10%)
due 05/07/2021............................... 50,000 50,014
2.08% (1 ML + 0.05%)
due 03/01/2021............................... 200,000 199,865
----------
549,805
----------
FEDERAL HOME LOAN BANK -- 2.9%
2.63% due 10/01/2020.......................... 300,000 302,678
Federal Home Loan Bank FRS
1.85% (SOFR + 0.03%)
due 11/06/2020.............................. 180,000 179,783
1.86% (SOFR + 0.04%)
due 08/25/2020.............................. 105,000 104,918
1.87% (SOFR + 0.05%)
due 01/22/2021.............................. 175,000 174,807
1.87% (SOFR + 0.05%)
due 01/28/2021.............................. 190,000 189,762
----------
951,948
----------
FEDERAL HOME LOAN MTG. CORP. -- 1.5%
1.50% due 01/17/2020.......................... 350,000 349,889
1.80% due 04/13/2020.......................... 150,000 150,058
----------
499,947
----------
FEDERAL NATIONAL MTG. ASSOC. -- 1.4%
1.63% due 01/21/2020.......................... 199,000 198,992
Federal National Mtg. Assoc. FRS
1.90% (SOFR + 0.08%)
due 10/30/2020.............................. 250,000 249,937
----------
448,929
----------
TOTAL U.S. GOVERNMENT AGENCIES
(cost $2,450,143)............................ 2,450,629
----------
U.S. GOVERNMENT TREASURIES -- 5.7%
UNITED STATES TREASURY NOTES FRS -- 5.7%
1.67% (3 UTBMM + 0.03%)
due 04/30/2020............................... 800,000 799,552
1.75% (3 UTBMM + 0.12%)
due 01/31/2021............................... 800,000 799,123
1.78% (3 M UTBMM + 0.14%)
due 04/30/2021............................... 250,000 249,679
----------
TOTAL U.S. GOVERNMENT TREASURIES
(cost $1,849,267)............................ 1,848,354
----------
COMMON STOCKS -- 1.5%
INVESTMENT COMPANIES -- 1.5%
Uranium Participation Corp.+(1)
(cost $613,870).............................. 166,728 486,095
----------
OPTIONS-PURCHASED -- 0.0%
Exchange Traded Purchased Put Options(1)(2)
(cost $16,630)............................... 8 2,520
----------
TOTAL LONG-TERM INVESTMENT SECURITIES
(cost $4,929,910)............................ 4,787,598
----------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
-----------------------------------------------------------------
SHORT-TERM INVESTMENT SECURITIES -- 37.1%
U.S. GOVERNMENT AGENCIES -- 31.3%
Federal Farm Credit Bank
1.87% due 07/31/2020.................... $ 96,000 $ 94,850
1.88% due 08/11/2020.................... 61,000 60,244
2.73% due 11/04/2019.................... 55,000 54,992
Federal Home Loan Bank
1.66% due 01/29/2020.................... 400,000 398,398
1.69% due 12/26/2019.................... 400,000 398,979
1.70% due 11/27/2019.................... 400,000 399,515
1.92% due 12/27/2019.................... 538,000 536,602
2.03% due 12/18/2019.................... 827,000 825,197
2.04% due 12/20/2019.................... 473,000 471,925
2.64% due 01/24/2020.................... 100,000 99,622
Federal Home Loan Bank FRS
1.83% (SOFR + 0.01%)
due 12/20/2019......................... 1,335,000 1,334,955
1.83% (SOFR + 0.01%)
due 01/24/2020......................... 920,000 919,875
1.84% (SOFR + 0.02%)
due 02/21/2020......................... 310,000 309,946
1.84% (SOFR + 0.02%)
due 05/22/2020......................... 865,000 864,594
1.85% (SOFR + 0.03%)
due 03/06/2020......................... 340,000 339,939
1.85% (SOFR + 0.03%)
due 04/22/2020......................... 485,000 484,840
1.85% (SOFR + 0.03%)
due 07/17/2020......................... 435,000 434,750
1.86% (SOFR + 0.04%)
due 05/08/2020......................... 690,000 689,768
1.86% (SOFR + 0.04%)
due 06/19/2020......................... 650,000 649,684
1.87% (SOFR + 0.05%)
due 01/17/2020......................... 845,000 844,958
-----------
10,213,633
-----------
U.S. GOVERNMENT TREASURIES -- 5.8%
United States Treasury Bills
1.96% due 11/29/19(1)(3)................ 1,900,000 1,897,813
-----------
TOTAL SHORT-TERM INVESTMENT SECURITIES
(cost $12,111,191)...................... 12,111,446
-----------
REPURCHASE AGREEMENTS -- 49.4%
Bank of America Securities LLC Joint
Repurchase Agreement(4)................. 2,870,000 2,870,000
Bank of America Securities LLC Joint
Repurchase Agreement(1)(4).............. 865,000 865,000
Barclays Capital, Inc. Joint Repurchase
Agreement(4)............................ 2,050,000 2,050,000
Barclays Capital, Inc. Joint Repurchase
Agreement(1)(4)......................... 620,000 620,000
BNP Paribas SA Joint Repurchase
Agreement(4)............................ 1,640,000 1,640,000
BNP Paribas SA Joint Repurchase
Agreement(1)(4)......................... 495,000 495,000
Deutsche Bank AG Joint Repurchase
Agreement(4)............................ 2,935,000 2,935,000
Deutsche Bank AG Joint Repurchase
Agreement(1)(4)......................... 890,000 890,000
20
SUNAMERICA SPECIALTY SERIES -- AIG COMMODITY STRATEGY FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019@ -- (CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
-----------------------------------------------------------------
REPURCHASE AGREEMENTS (CONTINUED)
RBS Securities, Inc. Joint Repurchase
Agreement(4).......................... $2,870,000 $ 2,870,000
RBS Securities, Inc. Joint Repurchase
Agreement(1)(4)....................... 865,000 865,000
-----------
TOTAL REPURCHASE AGREEMENTS
(cost $16,100,000).................... 16,100,000
-----------
TOTAL INVESTMENTS
(cost $33,141,101)(5)................. 101.2% 32,999,044
Liabilities in excess of other assets.... (1.2) (391,130)
---------- -----------
NET ASSETS 100.0% $32,607,914
========== ===========
--------
@ Consolidated (see Note 2)
+ Non-income producing security
(1)The security is owned by the AIG Commodity Strategy Cayman Fund, Ltd., which
is a wholly-owned subsidiary of the AIG Commodity Strategy Fund.
(2)Put Options -- Purchased
EXCHANGE TRADED PURCHASED PUT OPTIONS(A)
-------------------------------------------------------------------------------------------------------
VALUE AT UNREALIZED
EXPIRATION STRIKE NO. OF NOTIONAL PREMIUMS OCTOBER 31, APPRECIATION
ISSUE COUNTERPARTY MONTH PRICE CONTRACTS AMOUNT* PAID 2019 (DEPRECIATION)
--------- -------------------- ---------- ------ --------- -------- -------- ----------- --------------
Crude Oil Morgan Stanley & Co. Dec-19 $50.00 8 $6,293 $16,630 $2,520 $(14,110)
= ====== ======= ====== ========
--------
* Notional amount is calculated by multiplying the number of contracts by the
multiplier by the market value of the underlying security or index.
(3)The security or a portion thereof was pledged as collateral to cover margin
requirements for open futures contracts.
(4)See Note 3 for details of Joint Repurchase Agreements.
(5)See Note 6 for cost of investments on a tax basis.
FRS -- Floating Rate Security
The rates shown on FRS are the current interest rates as of October 31, 2019
and unless noted otherwise, the dates shown are the original maturity dates.
Index Legend
1 ML -- 1 Month USD LIBOR
SOFR -- Secured Overnight Financing Rate
3 UTBMM -- US Treasury 3 Month Bill Money Market Yield
EXCHANGE TRADED WRITTEN CALL OPTIONS(A)
---------------------------------------------------------------------------------------------------------
VALUE AT UNREALIZED
EXPIRATION STRIKE NO. OF NOTIONAL PREMIUMS OCTOBER 31, APPRECIATION
ISSUE COUNTERPARTY MONTH PRICE CONTRACTS AMOUNT* PAID 2019 (DEPRECIATION)
----------- -------------------- ---------- ------ --------- -------- -------- ----------- --------------
Natural Gas Morgan Stanley & Co. Feb-20 $3.50 17 $6,656 $18,316 $21,845 $(3,529)
== ====== ======= ======= =======
--------
* Notional amount is calculated by multiplying the number of contracts by the
multiplier by the market value of the underlying security or index.
FUTURES CONTRACTS(A)
---------------------------------------------------------------------------------
NUMBER OF NOTIONAL NOTIONAL UNREALIZED
CONTRACTS TYPE DESCRIPTION EXPIRATION MONTH BASIS* VALUE* APPRECIATION
--------- ---- ----- ---------------- -------- -------- ------------
4 Long Aluminum Futures March 2020 $174,518 $176,775 $ 2,257
9 Short Aluminum Futures December 2019 399,488 397,350 2,138
6 Short Aluminum Futures December 2020 284,550 275,400 9,150
18 Long Coffee Futures December 2019 675,882 688,163 12,281
4 Short Coffee Futures March 2020 170,981 158,175 12,806
8 Long Cotton Futures December 2019 244,985 257,760 12,775
25 Long Corn Futures July 2020 497,125 512,500 15,375
9 Long Gasoline Futures December 2019 571,398 602,759 31,361
21
SUNAMERICA SPECIALTY SERIES -- AIG COMMODITY STRATEGY FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019@ -- (CONTINUED)
FUTURES CONTRACTS(A)
------------------------------------------------------------------------------------------------
NUMBER OF NOTIONAL NOTIONAL UNREALIZED
CONTRACTS TYPE DESCRIPTION EXPIRATION MONTH BASIS** VALUE** APPRECIATION
--------- ---- ----- ---------------- -------- -------- ------------
18 Long Gold Futures December 2019 $2,716,840 $2,726,640 $ 9,800
15 Long Live Cattle Futures December 2019 606,440 703,350 96,910
75 Long Natural Gas Futures February 2020 1,910,970 2,022,750 111,780
11 Long Nickel Futures December 2019 1,022,898 1,101,474 78,576
4 Short Nickel Futures December 2019 415,218 400,536 14,682
7 Long NY Harbor ULSD Futures December 2019 540,704 551,485 10,781
37 Long Sugar Futures March 2020 493,573 517,171 23,598
3 Long Silver Futures December 2019 266,300 271,005 4,705
24 Long Soybean Futures January 2020 1,114,775 1,118,700 3,925
37 Long Soybean Oil Futures December 2019 622,260 682,650 60,390
10 Short Wheat Futures March 2020 240,000 216,125 23,875
28 Long WTI Crude Futures March 2020 1,436,990 1,509,760 72,770
7 Long Zinc Futures December 2019 434,786 438,725 3,939
1 Long Zinc Futures March 2020 61,442 61,788 346
5 Short Zinc Futures December 2019 320,739 313,375 7,364
---------
$ 621,584
=========
UNREALIZED
(DEPRECIATION)
- - - - - --------------
29 Long Aluminum Futures December 2019 $1,287,964 $1,280,350 $ (7,614)
38 Long Brent Crude Futures February 2020 2,294,030 2,238,580 (55,450)
17 Long Copper Futures December 2019 2,496,443 2,459,794 (36,649)
3 Short Copper Futures December 2019 427,489 434,081 (6,592)
9 Long Corn Futures December 2020 183,213 182,588 (625)
11 Short Corn Futures December 2019 211,688 214,500 (2,812)
21 Long Lean Hogs Futures December 2019 576,924 554,400 (22,524)
17 Long Lean Hogs Futures February 2020 508,735 498,610 (10,125)
6 Short Lean Hogs Futures June 2020 217,560 218,460 (900)
11 Long Low Sulfur Gasoil Futures December 2019 627,000 619,850 (7,150)
23 Short Natural Gas Futures April 2020 521,290 538,200 (16,910)
2 Long Nickel Futures March 2020 200,031 199,308 (723)
1 Long Platinum Futures January 2020 46,915 46,685 (230)
2 Long Silver Futures March 2020 182,205 182,200 (5)
16 Long Soybean Meal Futures December 2019 515,380 487,040 (28,340)
32 Long Wheat Futures December 2019 673,363 671,600 (1,763)
7 Short Wheat Futures December 2019 169,375 178,063 (8,688)
---------
$(207,100)
---------
$ 414,484
=========
--------
** Notional basis refers to the contractual amount agreed upon at inception of
the open contract; notional value represents the current value of the open
contract.
ULSD -- Ultra Low Sulfur Diesel Futures
OVER
THE
COUNTER
TOTAL
RETURN
SWAP
CONTRACTS(A)
-----------------------------------------------------------------------------------------------------------------------------------
NOTIONAL
SWAP AMOUNT MATURITY PAYMENTS RECEIVED (PAID) TOTAL RETURN RECEIVED OR PAID UPFRONT PREMIUMS
COUNTERPARTY (000'S) DATE BY THE PORTFOLIO/FREQUENCY BY PORTFOLIO/FREQUENCY PAID/(RECEIVED)
------------- -------- ---------- --------------------------------- ------------------------------- ----------------
Barclays $ 218 02/28/2020 (0.350)%/Monthly Bloomberg Soybean Meal $ --
Subindex/Monthly
209 12/02/2019 (Difference between the Fixed Difference between the LBMA --
Goldman Silver Spot Price of $14.708/oz. Silver Price Average/Term and
Sachs and the LBMA Silver Price the Fixed Silver Spot Price of
International Average/Term) $14.708/oz.
JPMorgan 10,825 03/31/2020 (0.090)%/Monthly Bloomberg Commodity Index/ --
Monthly
JPMorgan 111 12/31/2019 (0.090)%/Monthly Bloomberg Commodity Index/ --
Monthly
OVER
THE
COUNTER
TOTAL
RETURN
SWAP
CONTRACTS(A)
-----------------------------------------------------------------------------------------------------------------------------------
UNREALIZED
SWAP PAYMENTS RECEIVED (PAID) TOTAL RETURN RECEIVED OR PAID APPRECIATION/
COUNTERPARTY BY THE PORTFOLIO/FREQUENCY BY PORTFOLIO/FREQUENCY (DEPRECIATION)
------------- --------------------------------- ------------------------------- --------------
Barclays (0.350)%/Monthly Bloomberg Soybean Meal $ --
Subindex/Monthly
(Difference between the Fixed Difference between the LBMA 48,409
Goldman Silver Spot Price of $14.708/oz. Silver Price Average/Term and
Sachs and the LBMA Silver Price the Fixed Silver Spot Price of
International Average/Term) $14.708/oz.
JPMorgan (0.090)%/Monthly Bloomberg Commodity Index/ --
Monthly
JPMorgan (0.090)%/Monthly Bloomberg Commodity Index/ --
Monthly
22
SUNAMERICA SPECIALTY SERIES -- AIG COMMODITY STRATEGY FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019@ -- (CONTINUED)
OVER
THE
COUNTER
TOTAL
RETURN
SWAP
CONTRACTS(A)
-------------------------------------------------------------------------------------------------------------------------
NOTIONAL UNREALIZED
SWAP AMOUNT MATURITY PAYMENTS RECEIVED (PAID) TOTAL RETURN RECEIVED OR PAID UPFRONT PREMIUMS APPRECIATION/
COUNTERPARTY (000'S) DATE BY THE PORTFOLIO/FREQUENCY BY PORTFOLIO/FREQUENCY PAID/(RECEIVED) (DEPRECIATION)
------------ -------- ---------- -------------------------- ----------------------------- ---------------- --------------
JPMorgan $417 03/31/2020 (0.150)%/Monthly S&P GSCI Grains Index Excess $ -- $ --
Return/Monthly
JPMorgan 117 12/02/2019 (0.120)%/Monthly Bloomberg Corn Subindex/ -- --
Monthly
254 12/31/2019 (0.400)%/Monthly Bloomberg Soybean Meal -- --
Morgan Subindex/Monthly
Stanley
---- -------
$ -- $48,409
==== =======
--------
(a)The security is owned by the AIG Commodity Strategy Cayman Fund, Ltd. which
is a wholly-owned subsidiary of the AIG Commodity Strategy Fund.
GSCI -- Goldman Sachs Commodity Index
LBMA -- London Bullion Market Association
The following is a summary of the inputs used to value the Fund's net assets as
of October 31, 2019 (see Note 3):
LEVEL 1 -- UNADJUSTED LEVEL 2 -- OTHER LEVEL 3 -- SIGNIFICANT
QUOTED PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS TOTAL
--------------------- ----------------- ---------------------- -----------
ASSETS:
Investments at Value:*
U.S. Government Agencies...... $ -- $ 2,450,629 $ -- $ 2,450,629
U.S. Government Treasuries.... -- 1,848,354 -- 1,848,354
Common Stocks................. 486,095 -- -- 486,095
Options -- Purchased.......... 2,520 -- -- 2,520
Short-Term Investment
Securities................... -- 12,111,446 -- 12,111,446
Repurchase Agreements......... -- 16,100,000 -- 16,100,000
-------- ----------- ---- -----------
TOTAL INVESTMENTS AT VALUE.... $488,615 $32,510,429 $ -- $32,999,044
======== =========== ==== ===========
Other Financial Instruments:+
Futures Contracts............. $621,584 $ -- $ -- $ 621,584
Over the Counter Total Return
Swap Contracts............... -- 48,409 -- 48,409
-------- ----------- ---- -----------
TOTAL OTHER FINANCIAL
INSTRUMENTS.................. $621,584 $ 48,409 $ -- $ 669,993
======== =========== ==== ===========
LIABILITIES:
Other Financial Instruments:+
Exchange Traded Written Call
Options...................... $ 3,529 $ -- $ -- $ 3,529
Futures Contracts............. 207,100 -- -- 207,100
-------- ----------- ---- -----------
TOTAL OTHER FINANCIAL
INSTRUMENTS.................. $210,629 $ -- $ -- $ 210,629
======== =========== ==== ===========
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
+ Amounts represent unrealized appreciation/depreciation as of the end of the
reporting period.
@ Consolidated (see Note 2)
See Notes to Financial Statements
23
SUNAMERICA SPECIALTY SERIES -- AIG ESG DIVIDEND FUND
PORTFOLIO PROFILE -- OCTOBER 31, 2019 -- (UNAUDITED)
INDUSTRY ALLOCATION*
Food-Misc./Diversified................. 9.9%
Investment Management/Advisor Services. 7.1
Cosmetics & Toiletries................. 5.5
Medical-Biomedical/Gene................ 4.8
Computers.............................. 4.3
Medical-Drugs.......................... 3.8
Retail-Apparel/Shoe.................... 3.4
Finance-Credit Card.................... 3.2
Building Products-Air & Heating........ 3.0
Retail-Home Furnishings................ 2.9
Insurance-Property/Casualty............ 2.9
Retail-Consumer Electronics............ 2.9
Beverages-Non-alcoholic................ 2.8
Engines-Internal Combustion............ 2.8
Distribution/Wholesale................. 2.7
Human Resources........................ 2.7
Electronic Components-Semiconductors... 2.7
Appliances............................. 2.7
Airlines............................... 2.6
Commercial Services-Finance............ 2.5
Machinery-Construction & Mining........ 2.5
Advertising Agencies................... 2.3
Networking Products.................... 2.3
Apparel Manufacturers.................. 2.3
Theaters............................... 2.2
Consumer Products-Misc................. 2.2
Oil-Field Services..................... 2.1
Steel-Producers........................ 2.0
Retail-Major Department Stores......... 1.8
Commercial Services.................... 1.8
Repurchase Agreements.................. 1.8
Engineering/R&D Services............... 1.1
----
99.6%
====
--------
* Calculated as a percentage of net assets
24
SUNAMERICA SPECIALTY SERIES -- AIG ESG DIVIDEND FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
-------------------------------------------------------
COMMON STOCKS -- 97.8%
ADVERTISING AGENCIES -- 2.3%
Omnicom Group, Inc................. 9,416 $ 726,821
----------
AIRLINES -- 2.6%
Delta Air Lines, Inc............... 14,472 797,118
----------
APPAREL MANUFACTURERS -- 2.3%
Hanesbrands, Inc................... 47,653 724,802
----------
APPLIANCES -- 2.7%
Whirlpool Corp..................... 5,433 826,468
----------
BEVERAGES-NON-ALCOHOLIC -- 2.8%
PepsiCo, Inc....................... 6,431 882,140
----------
BUILDING PRODUCTS-AIR & HEATING -- 3.0%
Johnson Controls International PLC. 21,728 941,474
----------
COMMERCIAL SERVICES -- 1.8%
Nielsen Holdings PLC............... 28,108 566,657
----------
COMMERCIAL SERVICES-FINANCE -- 2.5%
H&R Block, Inc..................... 30,695 767,068
----------
COMPUTERS -- 4.3%
Hewlett Packard Enterprise Co...... 46,356 760,702
HP, Inc............................ 32,528 565,011
----------
1,325,713
----------
CONSUMER PRODUCTS-MISC. -- 2.2%
Clorox Co.......................... 4,598 679,079
----------
COSMETICS & TOILETRIES -- 5.5%
Colgate-Palmolive Co............... 11,113 762,352
Procter & Gamble Co................ 7,456 928,346
----------
1,690,698
----------
DISTRIBUTION/WHOLESALE -- 2.7%
KAR Auction Services, Inc.......... 33,883 842,331
----------
ELECTRONIC COMPONENTS-SEMICONDUCTORS -- 2.7%
Texas Instruments, Inc............. 7,131 841,387
----------
ENGINEERING/R&D SERVICES -- 1.1%
Fluor Corp......................... 20,215 325,664
----------
ENGINES-INTERNAL COMBUSTION -- 2.8%
Cummins, Inc....................... 4,943 852,569
----------
FINANCE-CREDIT CARD -- 3.2%
Western Union Co................... 39,298 984,808
----------
FOOD-MISC./DIVERSIFIED -- 9.9%
Campbell Soup Co................... 20,710 959,080
General Mills, Inc................. 16,461 837,206
Kellogg Co......................... 12,283 780,339
Kraft Heinz Co..................... 15,221 492,095
----------
3,068,720
----------
HUMAN RESOURCES -- 2.7%
ManpowerGroup, Inc................. 9,256 841,556
----------
INSURANCE-PROPERTY/CASUALTY -- 2.9%
First American Financial Corp...... 14,388 888,891
----------
INVESTMENT MANAGEMENT/ADVISOR SERVICES -- 7.1%
Franklin Resources, Inc............ 24,421 672,799
Legg Mason, Inc.................... 19,600 730,296
SHARES/
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
-------------------------------------------------------------------------
INVESTMENT MANAGEMENT/ADVISOR SERVICES (CONTINUED)
T. Rowe Price Group, Inc.......................... 7,000 $ 810,600
-----------
2,213,695
-----------
MACHINERY-CONSTRUCTION & MINING -- 2.5%
Caterpillar, Inc.................................. 5,541 763,550
-----------
MEDICAL-BIOMEDICAL/GENE -- 4.8%
Amgen, Inc........................................ 3,888 829,116
Gilead Sciences, Inc.............................. 10,412 663,348
-----------
1,492,464
-----------
MEDICAL-DRUGS -- 3.8%
AbbVie, Inc....................................... 14,813 1,178,374
-----------
NETWORKING PRODUCTS -- 2.3%
Cisco Systems, Inc................................ 15,293 726,570
-----------
OIL-FIELD SERVICES -- 2.1%
Baker Hughes Co................................... 29,953 640,994
-----------
RETAIL-APPAREL/SHOE -- 3.4%
Foot Locker, Inc.................................. 13,196 574,158
Gap, Inc.......................................... 29,010 471,703
-----------
1,045,861
-----------
RETAIL-CONSUMER ELECTRONICS -- 2.9%
Best Buy Co., Inc................................. 12,374 888,824
-----------
RETAIL-HOME FURNISHINGS -- 2.9%
Williams-Sonoma, Inc.............................. 13,472 899,795
-----------
RETAIL-MAJOR DEPARTMENT STORES -- 1.8%
Nordstrom, Inc.................................... 15,824 568,082
-----------
STEEL-PRODUCERS -- 2.0%
Nucor Corp........................................ 11,748 632,630
-----------
THEATERS -- 2.2%
Cinemark Holdings, Inc............................ 18,652 682,663
-----------
TOTAL LONG-TERM INVESTMENT SECURITIES
(cost $29,697,011)............................... 30,307,466
-----------
REPURCHASE AGREEMENTS -- 1.8%
Agreement with Fixed Income Clearing Corp.
bearing interest at 0.25%, dated 10/31/2019, to
be repurchased 11/01/2019 in the amount of
$552,004 and collateralized by $545,000 of
United States Treasury Notes, bearing interest
at 2.38%, due 2/29/2024 and having an
approximate value of $563,764 (cost
$552,000)........................................ $552,000 552,000
-----------
TOTAL INVESTMENTS
(cost $30,249,011)(1)............................ 99.6% 30,859,466
Other assets less liabilities....................... 0.4 114,080
-------- -----------
NET ASSETS 100.0% $30,973,546
======== ===========
--------
(1)See Note 6 for cost of investments on a tax basis.
25
SUNAMERICA SPECIALTY SERIES -- AIG ESG DIVIDEND FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
The following is a summary of the inputs used to value the Fund's net assets as
of October 31, 2019 (see Note 3):
LEVEL 1 -- UNADJUSTED LEVEL 2 -- OTHER LEVEL 3 -- SIGNIFICANT
QUOTED PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS TOTAL
--------------------- ----------------- ---------------------- -----------
ASSETS:
Investments at Value:*
Common Stocks................. $30,307,466 $ -- $ -- $30,307,466
Repurchase Agreements......... -- 552,000 -- 552,000
----------- -------- ---- -----------
TOTAL INVESTMENTS AT VALUE.... $30,307,466 $552,000 $ -- $30,859,466
=========== ======== ==== ===========
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
See Notes to Financial Statements
26
SUNAMERICA SPECIALTY SERIES -- AIG FOCUSED ALPHA LARGE-CAP FUND
PORTFOLIO PROFILE -- OCTOBER 31, 2019 -- (UNAUDITED)
INDUSTRY ALLOCATION*
Aerospace/Defense.................... 10.8%
Commercial Services-Finance.......... 10.3
Diversified Banking Institutions..... 7.8
Finance-Credit Card.................. 5.9
Banks-Super Regional................. 5.8
Medical-Drugs........................ 5.8
Telephone-Integrated................. 5.6
E-Commerce/Products.................. 5.4
Medical Labs & Testing Services...... 5.2
Cable/Satellite TV................... 5.2
Oil Companies-Integrated............. 5.2
Internet Content-Entertainment....... 5.1
Applications Software................ 4.9
Agricultural Biotech................. 4.9
Real Estate Investment Trusts........ 4.6
Electronic Components-Semiconductors. 3.8
Containers-Metal/Glass............... 2.6
----
98.9%
====
--------
* Calculated as a percentage of net assets
27
SUNAMERICA SPECIALTY SERIES -- AIG FOCUSED ALPHA LARGE-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------
COMMON STOCKS -- 98.9%
AEROSPACE/DEFENSE -- 10.8%
BAE Systems PLC ADR.......... 1,175,401 $35,685,174
Boeing Co.................... 93,461 31,768,329
-----------
67,453,503
-----------
AGRICULTURAL BIOTECH -- 4.9%
Corteva, Inc................. 1,152,594 30,405,430
-----------
APPLICATIONS SOFTWARE -- 4.9%
salesforce.com, Inc.+........ 198,162 31,010,372
-----------
BANKS-SUPER REGIONAL -- 5.8%
US Bancorp................... 640,318 36,510,932
-----------
CABLE/SATELLITE TV -- 5.2%
Comcast Corp., Class A....... 726,695 32,570,470
-----------
COMMERCIAL SERVICES-FINANCE -- 10.3%
PayPal Holdings, Inc.+....... 319,282 33,237,256
S&P Global, Inc.............. 122,434 31,586,748
-----------
64,824,004
-----------
CONTAINERS-METAL/GLASS -- 2.6%
Ball Corp.................... 234,023 16,374,589
-----------
DIVERSIFIED BANKING INSTITUTIONS -- 7.8%
Citigroup, Inc............... 232,800 16,729,008
JPMorgan Chase & Co.......... 259,260 32,386,759
-----------
49,115,767
-----------
E-COMMERCE/PRODUCTS -- 5.4%
Amazon.com, Inc.+............ 19,161 34,042,582
-----------
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------
ELECTRONIC COMPONENTS-SEMICONDUCTORS -- 3.8%
Texas Instruments, Inc....... 203,864 $ 24,053,913
------------
FINANCE-CREDIT CARD -- 5.9%
Visa, Inc., Class A.......... 207,000 37,024,020
------------
INTERNET CONTENT-ENTERTAINMENT -- 5.1%
Facebook, Inc., Class A+..... 168,192 32,233,997
------------
MEDICAL LABS & TESTING SERVICES -- 5.2%
Laboratory Corp. of America
Holdings+.................. 199,576 32,884,138
------------
MEDICAL-DRUGS -- 5.8%
Sanofi ADR................... 788,740 36,345,139
------------
OIL COMPANIES-INTEGRATED -- 5.2%
BP PLC ADR................... 853,534 32,357,474
------------
REAL ESTATE INVESTMENT TRUSTS -- 4.6%
Crown Castle International
Corp....................... 205,378 28,504,413
------------
TELEPHONE-INTEGRATED -- 5.6%
Verizon Communications, Inc.. 581,173 35,143,531
------------
TOTAL INVESTMENTS
(cost $513,709,098)(1)..... 98.9% 620,854,274
Other assets less liabilities. 1.1 6,912,049
------- ------------
NET ASSETS 100.0% $627,766,323
======= ============
--------
+ Non-income producing security
(1)See Note 6 for cost of investments on a tax basis.
ADR -- American Depositary Receipt
The following is a summary of the inputs used to value the Fund's net assets as
of October 31, 2019 (see Note 3):
LEVEL 1 -- UNADJUSTED LEVEL 2 -- OTHER LEVEL 3 -- SIGNIFICANT
QUOTED PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS TOTAL
--------------------- ----------------- ---------------------- ------------
ASSETS:
Investments at Value:*
Common Stocks.......... $620,854,274 $ -- $ -- $620,854,274
============ ==== ==== ============
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
See Notes to Financial Statements
28
SUNAMERICA SPECIALTY SERIES -- AIG FOCUSED GROWTH FUND/#/
PORTFOLIO PROFILE -- OCTOBER 31, 2019 -- (UNAUDITED)
INDUSTRY ALLOCATION*
Commercial Services-Finance.......... 14.4%
Finance-Credit Card.................. 8.9
Internet Content-Entertainment....... 8.9
Real Estate Investment Trusts........ 7.8
Aerospace/Defense.................... 7.7
E-Commerce/Products.................. 7.4
Applications Software................ 7.3
Electronic Components-Semiconductors. 5.8
Resorts/Theme Parks.................. 4.7
Hotels/Motels........................ 4.5
Containers-Metal/Glass............... 3.9
Diagnostic Kits...................... 2.5
Multimedia........................... 2.4
Auto-Cars/Light Trucks............... 2.0
Insurance-Property/Casualty.......... 2.0
Commercial Services.................. 1.9
Enterprise Software/Service.......... 1.7
Finance-Investment Banker/Broker..... 1.5
Professional Sports.................. 1.0
Satellite Telecom.................... 0.7
Consulting Services.................. 0.7
Racetracks........................... 0.7
E-Commerce/Services.................. 0.6
Veterinary Diagnostics............... 0.4
----
99.4%
====
--------
* Calculated as a percentage of net assets
# See Note 1
29
SUNAMERICA SPECIALTY SERIES -- AIG FOCUSED GROWTH FUND/#/
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
-----------------------------------------------------------
COMMON STOCKS -- 99.4%
AEROSPACE/DEFENSE -- 7.7%
Boeing Co.............................. 124,029 $42,158,697
-----------
APPLICATIONS SOFTWARE -- 7.3%
salesforce.com, Inc.+.................. 255,885 40,043,444
-----------
AUTO-CARS/LIGHT TRUCKS -- 2.0%
Tesla, Inc.+........................... 35,000 11,022,200
-----------
COMMERCIAL SERVICES -- 1.9%
CoStar Group, Inc.+.................... 18,575 10,207,334
-----------
COMMERCIAL SERVICES-FINANCE -- 14.4%
PayPal Holdings, Inc.+................. 359,974 37,473,293
S&P Global, Inc........................ 158,098 40,787,703
-----------
78,260,996
-----------
CONSULTING SERVICES -- 0.7%
Gartner, Inc.+......................... 26,200 4,036,896
-----------
CONTAINERS-METAL/GLASS -- 3.9%
Ball Corp.............................. 305,022 21,342,389
-----------
DIAGNOSTIC KITS -- 2.5%
IDEXX Laboratories, Inc.+.............. 47,000 13,395,470
-----------
E-COMMERCE/PRODUCTS -- 7.4%
Amazon.com, Inc.+...................... 22,805 40,516,731
-----------
E-COMMERCE/SERVICES -- 0.6%
Zillow Group, Inc., Class A+........... 108,000 3,498,120
-----------
ELECTRONIC COMPONENTS-SEMICONDUCTORS -- 5.8%
Texas Instruments, Inc................. 265,712 31,351,359
-----------
ENTERPRISE SOFTWARE/SERVICE -- 1.7%
Guidewire Software, Inc+............... 80,000 9,019,200
-----------
FINANCE-CREDIT CARD -- 8.9%
Visa, Inc., Class A.................... 271,061 48,481,971
-----------
FINANCE-INVESTMENT BANKER/BROKER -- 1.5%
Charles Schwab Corp.................... 205,000 8,345,550
-----------
HOTELS/MOTELS -- 4.5%
Hyatt Hotels Corp., Class A............ 329,750 24,645,515
-----------
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
------------------------------------------------------------
INSURANCE-PROPERTY/CASUALTY -- 2.0%
Arch Capital Group, Ltd.+........... 259,700 $ 10,845,072
------------
INTERNET CONTENT-ENTERTAINMENT -- 8.9%
Facebook, Inc., Class A+............ 252,109 48,316,690
------------
MULTIMEDIA -- 2.4%
FactSet Research Systems, Inc....... 51,800 13,132,336
------------
PROFESSIONAL SPORTS -- 1.0%
Manchester United PLC, Class A...... 320,800 5,366,984
------------
RACETRACKS -- 0.7%
Penn National Gaming, Inc.+......... 175,000 3,730,125
------------
REAL ESTATE INVESTMENT TRUSTS -- 7.8%
American Homes 4 Rent, Class A...... 100,000 2,647,000
Crown Castle International Corp..... 268,069 37,205,297
Gaming and Leisure Properties, Inc.. 67,000 2,704,120
------------
42,556,417
------------
RESORTS/THEME PARKS -- 4.7%
Marriott Vacations Worldwide Corp... 38,000 4,177,340
Vail Resorts, Inc................... 92,000 21,378,040
------------
25,555,380
------------
SATELLITE TELECOM -- 0.7%
Iridium Communications, Inc.+....... 166,500 4,074,255
------------
VETERINARY DIAGNOSTICS -- 0.4%
Neogen Corp.+....................... 31,500 2,049,390
------------
TOTAL INVESTMENTS
(cost $436,860,700)(1)............. 99.4% 541,952,521
Other assets less liabilities......... 0.6 3,457,972
------- ------------
NET ASSETS 100.0% $545,410,493
======= ============
--------
+ Non-income producing security
# See Note 1
(1)See Note 6 for cost of investments on a tax basis.
The following is a summary of the inputs used to value the Fund's net assets as
of October 31,2019 (see Note 3):
LEVEL 1 -- UNADJUSTED LEVEL 2 -- OTHER LEVEL 3 -- SIGNIFICANT
QUOTED PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS TOTAL
--------------------- ----------------- ---------------------- ------------
ASSETS:
Investments at Value:*
Common Stocks.......... $541,952,521 $ -- $ -- $541,952,521
============ ==== ==== ============
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
See Notes to Financial Statements
30
SUNAMERICA SPECIALTY SERIES -- AIG INCOME EXPLORER FUND
PORTFOLIO PROFILE -- OCTOBER 31, 2019 -- (UNAUDITED)
INDUSTRY ALLOCATION*
Domestic Fixed Income Investment Companies...... 28.9%
Diversified Banking Institutions................ 8.2
International Fixed Income Investment Companies. 6.8
Domestic Equity Investment Companies............ 4.2
Banks-Commercial................................ 4.1
Insurance-Life/Health........................... 2.9
Insurance-Multi-line............................ 2.5
Electric-Integrated............................. 2.4
Tobacco......................................... 2.3
Domestic Mixed Allocation Investment Companies.. 2.1
Telephone-Integrated............................ 2.1
Pipelines....................................... 1.9
Oil Companies-Integrated........................ 1.8
Sovereign Agency................................ 1.6
Insurance-Property/Casualty..................... 1.5
Chemicals-Diversified........................... 1.5
Auto-Cars/Light Trucks.......................... 1.4
Banks-Super Regional............................ 1.3
Electronic Components-Misc...................... 1.1
Building-Residential/Commercial................. 1.1
Metal-Diversified............................... 1.0
Coal............................................ 1.0
Diversified Manufacturing Operations............ 0.8
Retail-Apparel/Shoe............................. 0.7
Closed-End Funds................................ 0.7
Auto/Truck Parts & Equipment-Original........... 0.6
Computers-Memory Devices........................ 0.6
Metal Processors & Fabrication.................. 0.6
Aerospace/Defense............................... 0.6
Real Estate Investment Trusts................... 0.6
Building-Heavy Construction..................... 0.6
Semiconductor Equipment......................... 0.5
Capacitors...................................... 0.5
Medical-Drugs................................... 0.5
Human Resources................................. 0.5
Food-Misc./Diversified.......................... 0.5
Retail-Building Products........................ 0.5
Advertising Agencies............................ 0.5
Airlines........................................ 0.5
Electric-Generation............................. 0.5
Building Products-Cement........................ 0.5
Auto-Heavy Duty Trucks.......................... 0.5
Real Estate Operations & Development............ 0.5
Computers....................................... 0.4
Oil Companies-Exploration & Production.......... 0.4
Diversified Minerals............................ 0.4
Gas-Distribution................................ 0.4
Advertising Services............................ 0.4
Retail-Regional Department Stores............... 0.3
Private Equity.................................. 0.3
Insurance-Reinsurance........................... 0.3
Banks-Money Center.............................. 0.3
Cellular Telecom................................ 0.2
Agricultural Operations......................... 0.2
Energy-Alternate Sources........................ 0.2
Finance-Credit Card............................. 0.1
Banks-Fiduciary................................. 0.1
Finance-Other Services.......................... 0.1
Food-Dairy Products............................. 0.1
Electric-Distribution........................... 0.1
----
97.8%
====
--------
* Calculated as a percentage of net assets
31
SUNAMERICA SPECIALTY SERIES -- AIG INCOME EXPLORER FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
--------------------------------------------------------
COMMON STOCKS -- 25.0%
ADVERTISING AGENCIES -- 0.5%
WPP PLC.............................. 17,290 $215,724
--------
ADVERTISING SERVICES -- 0.4%
Publicis Groupe SA................... 3,857 165,831
--------
AEROSPACE/DEFENSE -- 0.6%
BAE Systems PLC...................... 33,477 249,866
--------
AIRLINES -- 0.5%
Deutsche Lufthansa AG................ 12,294 213,145
--------
AUTO-CARS/LIGHT TRUCKS -- 1.4%
Fiat Chrysler Automobiles NV......... 14,890 231,300
Peugeot SA........................... 8,495 215,070
Renault SA........................... 3,565 181,944
--------
628,314
--------
AUTO-HEAVY DUTY TRUCKS -- 0.5%
Volvo AB, Class B.................... 13,411 200,560
--------
AUTO/TRUCK PARTS & EQUIPMENT-ORIGINAL -- 0.6%
Valeo SA............................. 7,449 276,984
--------
BUILDING PRODUCTS-CEMENT -- 0.5%
Anhui Conch Cement Co., Ltd.......... 33,500 200,719
--------
BUILDING-HEAVY CONSTRUCTION -- 0.6%
Bouygues SA.......................... 5,780 244,964
--------
BUILDING-RESIDENTIAL/COMMERCIAL -- 1.1%
Barratt Developments PLC............. 26,879 219,769
Persimmon PLC........................ 8,678 255,959
--------
475,728
--------
CAPACITORS -- 0.5%
Walsin Technology Corp............... 39,000 235,098
--------
CHEMICALS-DIVERSIFIED -- 1.5%
Covestro AG*......................... 4,574 219,615
DuPont de Nemours, Inc............... 2,984 196,675
Mitsubishi Chemical Holdings Corp.... 29,800 229,205
--------
645,495
--------
CLOSED-END FUNDS -- 0.7%
Bancroft Fund, Ltd................... 12,530 299,968
--------
COAL -- 1.0%
China Shenhua Energy Co., Ltd........ 99,000 201,387
Yanzhou Coal Mining Co., Ltd......... 224,000 227,832
--------
429,219
--------
COMPUTERS -- 0.4%
Lenovo Group, Ltd.................... 272,000 190,221
--------
COMPUTERS-MEMORY DEVICES -- 0.6%
Seagate Technology PLC............... 4,409 255,854
--------
DIVERSIFIED MINERALS -- 0.4%
BHP Group PLC........................ 8,341 176,632
--------
ELECTRONIC COMPONENTS-MISC. -- 1.1%
Hon Hai Precision Industry Co., Ltd.. 82,000 217,119
Yageo Corp........................... 26,000 268,195
--------
485,314
--------
FOOD-MISC./DIVERSIFIED -- 0.5%
Kraft Heinz Co....................... 6,720 217,258
--------
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
--------------------------------------------------------
HUMAN RESOURCES -- 0.5%
Adecco Group AG................... 3,845 $ 227,933
-----------
MEDICAL-DRUGS -- 0.5%
GlaxoSmithKline PLC............... 10,117 231,776
-----------
METAL PROCESSORS & FABRICATION -- 0.6%
Catcher Technology Co., Ltd....... 30,000 254,267
-----------
METAL-DIVERSIFIED -- 1.0%
MMC Norilsk Nickel PJSC ADR....... 9,191 254,591
Rio Tinto PLC..................... 3,424 178,032
-----------
432,623
-----------
OIL COMPANIES-EXPLORATION & PRODUCTION -- 0.4%
CNOOC, Ltd........................ 119,000 178,592
-----------
OIL COMPANIES-INTEGRATED -- 1.8%
China Petroleum & Chemical Corp... 312,000 179,174
Eni SpA........................... 12,411 187,836
Equinor ASA....................... 10,132 187,410
Lukoil PJSC ADR................... 2,470 227,141
-----------
781,561
-----------
REAL ESTATE OPERATIONS & DEVELOPMENT -- 0.5%
Country Garden Holdings Co., Ltd.. 141,000 196,494
-----------
RETAIL-APPAREL/SHOE -- 0.7%
Gap, Inc.......................... 11,424 185,754
L Brands, Inc..................... 8,170 139,217
-----------
324,971
-----------
RETAIL-BUILDING PRODUCTS -- 0.5%
Wesfarmers, Ltd................... 7,884 216,089
-----------
RETAIL-REGIONAL DEPARTMENT STORES -- 0.3%
Macy's, Inc....................... 9,741 147,674
-----------
SEMICONDUCTOR EQUIPMENT -- 0.5%
Globalwafers Co., Ltd............. 20,000 239,812
-----------
TELEPHONE-INTEGRATED -- 2.0%
BT Group PLC...................... 85,427 226,517
CenturyLink, Inc.................. 17,123 221,572
Orange SA......................... 13,596 218,962
Telefonica SA..................... 24,688 189,300
-----------
856,351
-----------
TOBACCO -- 2.3%
Altria Group, Inc................. 4,213 188,700
British American Tobacco PLC...... 5,695 199,327
Imperial Brands PLC............... 8,157 178,822
Japan Tobacco, Inc................ 9,100 206,960
Philip Morris International, Inc.. 2,551 207,754
-----------
981,563
-----------
TOTAL COMMON STOCKS
(cost $11,191,804)............... 10,876,600
-----------
PREFERRED SECURITIES -- 8.0%
AGRICULTURAL OPERATIONS -- 0.2%
CHS, Inc.
Series 4
7.50%............................ 3,756 103,966
-----------
32
SUNAMERICA SPECIALTY SERIES -- AIG INCOME EXPLORER FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
--------------------------------------------------
PREFERRED SECURITIES (CONTINUED)
BANKS-COMMERCIAL -- 0.5%
Citizens Financial Group, Inc.
Series E
5.00%........................... 1,125 $ 28,080
Citizens Financial Group, Inc.
Series D
6.35%........................... 294 8,247
First Republic Bank
Series I
5.50%........................... 1,550 41,230
Regions Financial Corp.
Series C
5.70%........................... 3,204 87,789
Synovus Financial Corp.
Series E
5.88%........................... 2,000 52,880
--------
218,226
--------
BANKS-FIDUCIARY -- 0.1%
Northern Trust Corp.
Series E
4.70%........................... 1,600 40,096
--------
BANKS-SUPER REGIONAL -- 0.2%
Fifth Third Bancorp
Series A
6.00%........................... 1,208 33,172
Wells Fargo & Co.
Series W
5.70%........................... 1,709 44,297
Wells Fargo & Co.
Series Q
5.85%........................... 1,102 29,677
--------
107,146
--------
DIVERSIFIED BANKING INSTITUTIONS -- 0.6%
Bank of America Corp.
Series HH
5.88%........................... 1,450 39,353
GMAC Capital Trust I FRS
Series 2
(3 ML+5.79%)
7.94%........................... 5,558 146,787
JPMorgan Chase & Co.
Series GG
4.75%........................... 2,500 62,521
--------
248,661
--------
ELECTRIC-DISTRIBUTION -- 0.1%
Sempra Energy
5.75%........................... 1,060 28,090
--------
ELECTRIC-INTEGRATED -- 0.8%
CMS Energy Corp.
5.63%........................... 879 23,786
CMS Energy Corp.
5.88%........................... 1,764 49,322
Duke Energy Corp.
Series A
5.75%........................... 2,700 75,330
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------------
ELECTRIC-INTEGRATED (CONTINUED)
Integrys Holding, Inc.
6.00%.............................................. 4,090 $112,475
NextEra Energy Capital Holdings, Inc.
Series N
5.65%.............................................. 3,868 107,414
--------
368,327
--------
ENERGY-ALTERNATE SOURCES -- 0.2%
Algonquin Power & Utilities Corp.
Series 19-A
6.20%.............................................. 1,764 48,986
Algonquin Power & Utilities Corp.
6.88%.............................................. 1,500 41,925
--------
90,911
--------
FINANCE-CREDIT CARD -- 0.1%
Capital One Financial Corp.
Series I
5.00%.............................................. 2,116 $ 53,175
--------
FINANCE-OTHER SERVICES -- 0.1%
National Rural Utilities Cooperative Finance Corp.
Series US
5.50%.............................................. 1,286 35,494
--------
GAS-DISTRIBUTION -- 0.4%
NiSource, Inc.
Series B
6.50%.............................................. 1,490 41,288
South Jersey Industries, Inc.
5.63%.............................................. 2,800 73,388
Spire, Inc.
Series A
5.90%.............................................. 2,150 58,179
--------
172,855
--------
INSURANCE-LIFE/HEALTH -- 0.6%
Athene Holding, Ltd.
Series B
5.63%.............................................. 1,425 37,777
Athene Holding, Ltd.
Series A
6.35%.............................................. 4,175 117,359
Prudential Financial, Inc.
5.63%.............................................. 750 20,355
Unum Group
6.25%.............................................. 3,160 86,710
--------
262,201
--------
INSURANCE-MULTI-LINE -- 0.6%
Aegon Funding Corp. II
5.10%.............................................. 3,500 90,160
Allstate Corp.
Series H
5.10%.............................................. 4,525 118,691
Voya Financial, Inc.
Series B
5.35%.............................................. 2,123 57,554
--------
266,405
--------
33
SUNAMERICA SPECIALTY SERIES -- AIG INCOME EXPLORER FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
--------------------------------------------------------
PREFERRED SECURITIES (CONTINUED)
INSURANCE-PROPERTY/CASUALTY -- 0.5%
Arch Capital Group, Ltd.
Series E
5.25%................................. 1,572 $ 40,086
Enstar Group, Ltd.
Series D
7.00%................................. 3,466 94,830
WR Berkley Corp.
5.70%................................. 2,700 71,334
--------
206,250
--------
INSURANCE-REINSURANCE -- 0.3%
PartnerRe, Ltd.
Series I
5.88%................................. 1,400 36,820
RenaissanceRe Holdings, Ltd.
Series F
5.75%................................. 3,319 89,646
--------
126,466
--------
PIPELINES -- 0.4%
Enbridge, Inc.
Series B
6.38%................................. 1,508 41,410
Energy Transfer Operating LP
Series E
7.60%................................. 1,800 45,504
Energy Transfer Operating LP
Series D
7.63%................................. 3,550 87,614
--------
174,528
--------
PRIVATE EQUITY -- 0.3%
Apollo Global Management, Inc.
Series B
6.38%................................. 5,351 144,102
--------
REAL ESTATE INVESTMENT TRUSTS -- 0.6%
Global Net Lease, Inc.
Series A
7.25%................................. 1,943 50,926
Monmouth Real Estate Investment Corp.
Series C
6.13%................................. 2,000 50,000
SITE Centers Corp.
Series A
6.38%................................. 1,700 45,900
Spirit Realty Capital, Inc.
Series A
6.00%................................. 2,417 63,156
Summit Hotel Properties, Inc.
Series E
6.25%................................. 1,389 37,156
--------
247,138
--------
SOVEREIGN AGENCY -- 1.3%
AgriBank FCB
6.88%................................. 1,250 135,000
CoBank ACB
Series F
6.25%................................. 900 95,400
SHARES/
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
--------------------------------------------------------
SOVEREIGN AGENCY -- (CONTINUED)
CoBank ACB
Series H
6.20%............................ 700 $ 75,425
Farm Credit Bank of Texas
6.75%*........................... 1,200 129,600
Farm Credit Bank of Texas
Series 1
10.00%........................... 100 111,000
----------
546,425
----------
TELEPHONE-INTEGRATED -- 0.1%
AT&T, Inc.
5.63%............................ 1,800 49,536
----------
TOTAL PREFERRED SECURITIES
(cost $3,315,416)................ 3,489,998
----------
PREFERRED SECURITIES/CAPITAL SECURITIES -- 22.4%
BANKS-COMMERCIAL -- 3.6%
Australia & New Zealand Banking
Group, Ltd.
6.75% due 06/15/2026*(1)......... $200,000 225,250
BB&T Corp.
4.80% due 09/01/2024(1).......... 35,000 35,613
Citizens Financial Group, Inc.
Series C
6.38% due 04/06/2024(1).......... 35,000 37,187
DNB Bank ASA
6.50% due 03/26/2022(1).......... 200,000 210,006
ING Groep NV
6.50% due 04/16/2025(1).......... 200,000 212,480
ING Groep NV
6.88% due 04/16/2022(1).......... 200,000 211,000
Nordea Bank Abp
6.63% due 03/26/2026*(1)......... 200,000 218,000
Standard Chartered PLC
7.75% due 04/02/2023*(1)......... 200,000 217,750
Svenska Handelsbanken AB
6.25% due 03/01/2024(1).......... 200,000 214,000
----------
1,581,286
----------
BANKS-MONEY CENTER -- 0.3%
HSBC Capital Funding Dollar 1 LP
10.18% due 06/30/2030*(1)........ 75,000 123,281
----------
BANKS-SUPER REGIONAL -- 1.1%
First Union Capital II
Series A
7.95% due 11/15/2029............. 15,000 20,535
SunTrust Banks, Inc.
Series H
5.13% due 12/15/2027(1).......... 95,000 97,019
Wells Fargo & Co.
Series U
5.88% due 06/15/2025(1).......... 66,000 73,095
Wells Fargo & Co. FRS
Series K
5.89% (3 ML+3.77%)
due 12/15/2019(1)................ 116,000 117,450
Wells Fargo Capital X
5.95% due 12/01/2086............. 115,000 144,328
----------
452,427
----------
34
SUNAMERICA SPECIALTY SERIES -- AIG INCOME EXPLORER FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
-----------------------------------------------------------
PREFERRED SECURITIES/CAPITAL SECURITIES (CONTINUED)
CELLULAR TELECOM -- 0.2%
Vodafone Group PLC
7.00% due 04/04/2079............. $ 90,000 $ 104,252
----------
DIVERSIFIED BANKING INSTITUTIONS -- 7.6%
Bank of America Corp.
Series FF
5.88% due 03/15/2028(1).......... 152,000 167,117
Bank of America Corp.
Series AA
6.10% due 03/17/2025(1).......... 120,000 132,814
Bank of America Corp.
Series X
6.25% due 09/05/2024(1).......... 174,000 192,444
Bank of America Corp.
Series Z
6.50% due 10/23/2024(1).......... 92,000 104,316
BNP Paribas SA
7.38% due 08/19/2025*(1)......... 200,000 226,000
BNP Paribas SA
7.63% due 03/30/2021*(1)......... 200,000 210,000
Citigroup, Inc.
5.90% due 02/15/2023(1).......... 60,000 63,525
Citigroup, Inc.
Junior Sub. Notes
5.95% due 01/30/2023(1).......... 71,000 74,994
Citigroup, Inc.
Series T
6.25% due 08/15/2026(1).......... 156,000 175,890
Credit Agricole SA
8.13% due 12/23/2025*(1)......... 200,000 239,500
Credit Suisse Group AG
7.50% due 07/17/2023*(1)......... 200,000 215,680
Goldman Sachs Group, Inc.
Series Q
5.50% due 08/10/2024(1).......... 50,000 53,485
HSBC Holdings PLC
6.50% due 03/23/2028(1).......... 200,000 211,750
JPMorgan Chase & Co.
Series X
6.10% due 10/01/2024(1).......... 70,000 76,848
JPMorgan Chase & Co.
Series S
6.75% due 02/01/2024(1).......... 132,000 147,276
Lloyds Banking Group PLC
7.50% due 09/27/2025(1).......... 200,000 220,038
Royal Bank of Scotland Group PLC
7.65% due 09/30/2031(1).......... 70,000 99,421
Societe Generale SA
7.38% due 09/13/2021*(1)......... 200,000 210,500
UBS Group Funding Switzerland AG
7.00% due 01/31/2024*(1)......... 200,000 214,500
UniCredit SpA
7.50% due 06/03/2026(1).......... EUR 200,000 254,567
----------
3,290,665
----------
DIVERSIFIED MANUFACTURING OPERATIONS -- 0.6%
General Electric Co.
Series D
5.00% due 01/21/2021(1).......... 277,000 266,959
----------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
-----------------------------------------------------------------
ELECTRIC-GENERATION -- 0.5%
Electricite de France SA
5.25% due 01/29/2023*(1).................... $200,000 $206,500
--------
ELECTRIC-INTEGRATED -- 1.6%
Duke Energy Corp.
4.88% due 09/16/2024(1)..................... 90,000 94,950
Emera, Inc.
Series 16-A
6.75% due 06/15/2076........................ 183,000 205,776
Enel SpA
8.75% due 09/24/2073*....................... 200,000 235,000
NextEra Energy Capital Holdings, Inc.
Company Guar. Notes
5.65% due 05/01/2079........................ 95,000 104,809
Southern Co.
Series B
5.50% due 03/15/2057........................ 35,000 36,622
--------
677,157
--------
INSURANCE-LIFE/HEALTH -- 2.2%
Dai-ichi Life Insurance Co., Ltd.
5.10% due 10/28/2024*(1).................... 200,000 217,974
Dai-ichi Life Insurance Co., Ltd.
7.25% due 07/25/2021*(1).................... 50,000 54,080
Meiji Yasuda Life Insurance Co.
5.10% due 04/26/2048*....................... 200,000 225,445
Nippon Life Insurance Co.
5.10% due 10/16/2044*....................... 200,000 218,472
Prudential Financial, Inc.
5.20% due 03/15/2044........................ 40,000 42,607
Prudential Financial, Inc.
5.63% due 06/15/2043........................ 197,000 213,252
--------
971,830
--------
INSURANCE-MULTI-LINE -- 1.9%
Assurant, Inc.
7.00% due 03/27/2048........................ 100,000 110,500
AXA SA
8.60% due 12/15/2030........................ 25,000 36,280
Hartford Financial Services Group, Inc. FRS
4.28% (3 ML+2.13%)
due 02/12/2067*............................. 95,000 83,786
MetLife Capital Trust IV
7.88% due 12/15/2067*....................... 100,000 132,750
MetLife, Inc.
Series D
5.88% due 03/15/2028(1)..................... 38,000 41,439
MetLife, Inc.
9.25% due 04/08/2038*....................... 100,000 145,811
MetLife, Inc.
10.75% due 08/01/2069....................... 85,000 139,786
Voya Financial, Inc.
5.65% due 05/15/2053........................ 141,000 149,108
--------
839,460
--------
INSURANCE-PROPERTY/CASUALTY -- 1.0%
Mitsui Sumitomo Insurance Co., Ltd.
4.95% due 03/06/2029*(1).................... 200,000 223,390
35
SUNAMERICA SPECIALTY SERIES -- AIG INCOME EXPLORER FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
SHARES/
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
-----------------------------------------------------------------------
PREFERRED SECURITIES/CAPITAL SECURITIES (CONTINUED)
INSURANCE-PROPERTY/CASUALTY (CONTINUED)
QBE Insurance Group, Ltd.
6.75% due 12/02/2044............................ $200,000 $ 222,000
----------
445,390
----------
PIPELINES -- 1.5%
Enbridge, Inc.
Series 16-A
6.00% due 01/15/2077............................ 99,000 104,445
Enbridge, Inc.
Sub. Notes
6.25% due 03/01/2078............................ 104,000 111,850
Transcanada Trust
5.50% due 09/15/2079............................ 150,000 160,125
TransCanada Trust
5.63% due 05/20/2075............................ 55,000 57,681
TransCanada Trust
Series 16-A
5.88% due 08/15/2076............................ 178,000 193,130
----------
627,231
----------
SOVEREIGN AGENCY -- 0.3%
CoBank ACB
Series I
6.25% due 10/01/2026(1)......................... 123,000 132,009
----------
TOTAL PREFERRED SECURITIES/CAPITAL SECURITIES
(cost $9,139,639)............................... 9,718,447
----------
REGISTERED INVESTMENT COMPANIES(2) -- 42.0%
DOMESTIC EQUITY INVESTMENT COMPANIES -- 4.2%
Adams Diversified Equity Fund, Inc............... 6,253 100,673
Eaton Vance Tax-Advantaged Dividend Income
Fund............................................ 13,815 344,684
Eaton Vance Tax-Managed Diversified Equity
Income Fund..................................... 15,996 190,672
First Trust Energy Income and Growth Fund........ 7,168 151,317
Gabelli Dividend & Income Trust.................. 12,562 260,033
Gabelli Equity Trust, Inc........................ 44,939 270,533
Reaves Utility Income Fund....................... 11,821 438,441
Tortoise Midstream Energy Fund, Inc.............. 6,642 74,457
----------
1,830,810
----------
DOMESTIC FIXED INCOME INVESTMENT COMPANIES -- 28.9%
AllianzGI Convertible & Income Fund II........... 10,354 51,459
BlackRock Corporate High Yield Fund, Inc......... 75,129 821,160
BlackRock Floating Rate Income Strategies Fund,
Inc............................................. 6,110 77,658
BlackRock Limited Duration Income Trust.......... 18,879 301,686
BlackRock MuniHoldings Investment Quality
Fund............................................ 7,861 105,102
BlackRock MuniYield Quality Fund III, Inc........ 8,618 116,084
BlackRock Taxable Municipal Bond Trust........... 12,827 305,283
Calamos Convertible and High Income Fund......... 61,997 688,167
DoubleLine Income Solutions Fund................. 28,161 561,530
Eaton Vance Limited Duration Income Fund......... 44,611 569,682
Eaton Vance Senior Floating-Rate Trust........... 7,841 101,227
Eaton Vance Senior Income Trust.................. 28,742 177,913
Flaherty & Crumrine Preferred Securities Income
Fund, Inc....................................... 38,160 814,716
SHARES/
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
----------------------------------------------------------------------
DOMESTIC FIXED INCOME INVESTMENT COMPANIES (CONTINUED)
Flaherty & Crumrine Total Return Fund, Inc..... 20,825 $ 480,225
Franklin Limited Duration Income Trust......... 15,233 141,819
Guggenheim Taxable Municipal Managed Duration
Trust......................................... 14,301 339,649
Invesco Dynamic Credit Opportunities Fund...... 30,138 333,326
John Hancock Preferred Income Fund............. 32,581 740,892
MFS Multimarket Income Trust................... 28,969 174,104
New America High Income Fund, Inc.............. 94,470 845,506
Nuveen AMT-Free Quality Municipal Income
Fund.......................................... 13,977 198,473
Nuveen Credit Strategies Income Fund........... 70,168 517,138
Nuveen Floating Rate Income Fund............... 8,667 81,730
Nuveen Floating Rate Income Opportunity Fund... 13,139 124,821
Nuveen Municipal Credit Income Fund............ 8,264 132,472
Nuveen Municipal Value Fund, Inc............... 4,572 47,686
Nuveen Preferred Income Opportunities Fund..... 88,204 888,214
Nuveen Short Duration Credit Opportunities
Fund.......................................... 10,266 148,960
PIMCO Corporate & Income Opportunity Fund...... 16,280 302,808
PIMCO Dynamic Credit and Mortgage Income
Fund.......................................... 35,335 889,735
PIMCO Income Strategy Fund II.................. 57,760 609,946
Pioneer Floating Rate Trust.................... 12,997 136,079
Pioneer High Income Trust...................... 42,175 398,554
Wells Fargo Income Opportunities Fund.......... 22,011 180,270
Western Asset High Yield Defined Opportunity
Fund, Inc..................................... 10,089 155,270
-----------
12,559,344
-----------
DOMESTIC MIXED ALLOCATION INVESTMENT COMPANY -- 2.1%
Flaherty & Crumrine Dynamic Preferred and
Income Fund, Inc.............................. 35,372 927,454
-----------
INTERNATIONAL FIXED INCOME INVESTMENT COMPANIES -- 6.8%
AllianceBernstein Global High Income Fund,
Inc........................................... 21,083 252,364
BrandywineGLOBAL Global Income Opportunities
Fund, Inc..................................... 20,763 256,423
Nuveen Preferred & Income Term Fund............ 21,487 536,960
PIMCO Dynamic Income Fund...................... 18,467 614,582
PIMCO Income Opportunity Fund.................. 24,605 666,303
Wells Fargo Multi-Sector Income Fund........... 21,301 269,884
Western Asset Global Corporate Defined
Opportunity Fund, Inc......................... 7,087 123,101
Western Asset Global High Income Fund, Inc..... 22,138 216,952
-----------
2,936,569
-----------
TOTAL REGISTERED INVESTMENT COMPANIES
(cost $18,153,799)............................ $18,254,177
-----------
U.S. CORPORATE BONDS & NOTES -- 0.4%
DIVERSIFIED MANUFACTURING OPERATIONS -- 0.2%
General Electric Capital Corp.
Senior Notes
5.88% due 01/14/2038.......................... $48,000 57,446
General Electric Capital Corp.
Senior Notes
6.88% due 01/10/2039.......................... 31,000 41,041
-----------
98,487
-----------
36
SUNAMERICA SPECIALTY SERIES -- AIG INCOME EXPLORER FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
--------------------------------------------------------
U.S. CORPORATE BONDS & NOTES (CONTINUED)
FOOD-DAIRY PRODUCTS -- 0.1%
Land O' Lakes, Inc.
Junior Sub. Notes
7.25% due 04/04/2027*(1)........ $30,000 $ 28,800
-----------
INSURANCE-LIFE/HEALTH -- 0.1%
Brighthouse Financial, Inc.
Senior Notes
4.70% due 06/22/2047............ 70,000 62,278
-----------
TOTAL U.S. CORPORATE BONDS & NOTES
(cost $174,860)................. 189,565
-----------
RIGHTS -- 0.0%
DOMESTIC FIXED INCOME INVESTMENT COMPANIES -- 0.0%
Gabelli Dividend & Income Trust
Expires 11/15/2019
(Strike Price $20.00 USD)
(cost $0)....................... 20,294 893
-----------
TOTAL INVESTMENTS
(cost $41,975,518)(3)........... 97.8% 42,529,680
Other assets less liabilities...... 2.2 942,934
------- -----------
NET ASSETS 100.0% $43,472,614
======= ===========
--------
* 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 October 31, 2019, the aggregate value
of these securities was $4,221,684 representing 9.7% of net assets.
(1)Perpetual maturity -- maturity date reflects the next call date.
(2)Represents common shares of closed-end investment companies.
(3)See Note 6 for cost of investments on a tax basis.
ADR -- American Depositary Receipt
EUR -- Euro Currency
FRS -- Floating Rate Security
The rates shown on FRS are the current interest rates at October 31, 2019 and
unless noted otherwise, the dates shown are the original maturity dates.
Index Legend
3 ML -- 3 Month USD LIBOR
FORWARD FOREIGN CURRENCY CONTRACTS
--------------------------------------------------------------------------------------------------------------------
DELIVERY UNREALIZED UNREALIZED
COUNTERPARTY CONTRACT TO DELIVER IN EXCHANGE FOR DATE APPRECIATION DEPRECIATION
------------------------------------------- ------------------- --------------- ---------- ------------ ------------
Brown Brothers Harriman and Co. EUR 465,298 USD 508,596 11/04/2019 $ -- $(10,350)
EUR 234,491 USD 261,827 12/03/2019 -- (191)
USD 518,603 EUR 465,298 11/04/2019 344 --
---- --------
Net Unrealized Appreciation (Depreciation) $344 $(10,541)
==== ========
EUR -- Euro Currency
USD -- United States Dollar
37
SUNAMERICA SPECIALTY SERIES -- AIG INCOME EXPLORER FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
The following is a summary of the inputs used to value the Fund's net assets as
of October 31, 2019 (see Note 3):
LEVEL 1 -- UNADJUSTED LEVEL 2 -- OTHER LEVEL 3 -- SIGNIFICANT
QUOTED PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS TOTAL
--------------------- ----------------- ---------------------- -----------
ASSETS:
Investments at Value:*
Common Stocks........................... $10,876,600 $ -- $ -- $10,876,600
Preferred Securities:
Electric-Integrated.................. 255,852 112,475 -- 368,327
Sovereign Agency..................... 75,425 471,000 -- 546,425
Other Industries..................... 2,575,246 -- -- 2,575,246
Preferred Securities/Capital Securities. -- 9,718,447 -- 9,718,447
Registered Investment Companies......... 18,254,177 -- -- 18,254,177
U.S. Corporate Bonds & Notes............ -- 189,565 -- 189,565
Rights.................................. 893 -- -- 893
----------- ----------- ---- -----------
TOTAL INVESTMENTS AT VALUE.............. $32,038,193 $10,491,487 $ -- $42,529,680
=========== =========== ==== ===========
Other Financial Instruments:+
Forward Foreign Currency Contracts...... $ -- $ 344 $ -- $ 344
=========== =========== ==== ===========
LIABILITIES:
Other Financial Instruments:+
Forward Foreign Currency Contracts...... $ -- $ 10,541 $ -- $ 10,541
=========== =========== ==== ===========
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
+ Amounts represent unrealized appreciation/depreciation as of the end of the
reporting period.
See Notes to Financial Statements
38
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO PROFILE -- OCTOBER 31, 2019 -- (UNAUDITED)
INDUSTRY ALLOCATION*
Banks-Commercial................................ 6.5%
Real Estate Investment Trusts................... 5.4
Medical-Biomedical/Gene......................... 4.0
Medical-Drugs................................... 3.1
Medical Products................................ 2.4
Human Resources................................. 2.4
Consulting Services............................. 2.4
Internet Content-Information/News............... 2.2
Investment Management/Advisor Services.......... 1.9
Electronic Measurement Instruments.............. 1.8
Medical-Outpatient/Home Medical................. 1.7
Enterprise Software/Service..................... 1.6
Food-Wholesale/Distribution..................... 1.6
Transport-Marine................................ 1.4
Finance-Consumer Loans.......................... 1.4
Electronic Components-Semiconductors............ 1.3
Commercial Services-Finance..................... 1.3
Water Treatment Systems......................... 1.2
Recreational Vehicles........................... 1.2
Retail-Restaurants.............................. 1.1
Savings & Loans/Thrifts......................... 1.1
Medical Information Systems..................... 1.1
Commercial Services............................. 1.1
Building-Residential/Commercial................. 1.1
Exchange-Traded Funds........................... 1.1
Auto/Truck Parts & Equipment-Original........... 1.0
Semiconductor Equipment......................... 1.0
MRI/Medical Diagnostic Imaging.................. 1.0
Computer Software............................... 1.0
Applications Software........................... 1.0
Auto/Truck Parts & Equipment-Replacement........ 1.0
Disposable Medical Products..................... 0.9
Hazardous Waste Disposal........................ 0.9
Building-Heavy Construction..................... 0.9
Electronic Security Devices..................... 0.8
Water........................................... 0.8
Optical Supplies................................ 0.8
Computers-Integrated Systems.................... 0.8
Schools......................................... 0.8
Audio/Video Products............................ 0.8
Oil-Field Services.............................. 0.8
Retail-Building Products........................ 0.8
Auto-Heavy Duty Trucks.......................... 0.7
Chemicals-Specialty............................. 0.7
Electric-Integrated............................. 0.7
Therapeutics.................................... 0.7
Retail-Computer Equipment....................... 0.7
Casino Services................................. 0.7
E-Services/Consulting........................... 0.7
Internet Security............................... 0.7
Airlines........................................ 0.6
Aerospace/Defense............................... 0.6
Gambling (Non-Hotel)............................ 0.6
Containers-Paper/Plastic........................ 0.6
Telecommunication Equipment..................... 0.6
Insurance-Property/Casualty..................... 0.6
Advertising Sales............................... 0.6
Repurchase Agreements........................... 0.6
Computer Services............................... 0.5
Gas-Distribution................................ 0.5
Internet Connectivity Services.................. 0.5
E-Marketing/Info................................ 0.5%
Building & Construction Products-Misc........... 0.5
Industrial Audio & Video Products............... 0.5
Finance-Credit Card............................. 0.5
Networking Products............................. 0.5
Pollution Control............................... 0.4
Oil Companies-Exploration & Production.......... 0.4
Telecom Equipment-Fiber Optics.................. 0.4
Vitamins & Nutrition Products................... 0.4
Electronic Components-Misc...................... 0.4
Building Products-Doors & Windows............... 0.4
Instruments-Scientific.......................... 0.3
Oil Refining & Marketing........................ 0.3
Medical Labs & Testing Services................. 0.3
Machinery-General Industrial.................... 0.3
Distribution/Wholesale.......................... 0.3
Aerospace/Defense-Equipment..................... 0.3
Building & Construction-Misc.................... 0.3
Industrial Automated/Robotic.................... 0.3
Metal Processors & Fabrication.................. 0.3
Retail-Apparel/Shoe............................. 0.3
Energy-Alternate Sources........................ 0.2
Rental Auto/Equipment........................... 0.2
Computer Data Security.......................... 0.2
Retail-Automobile............................... 0.2
Medical Instruments............................. 0.2
Diversified Manufacturing Operations............ 0.2
E-Commerce/Services............................. 0.2
Office Furnishings-Original..................... 0.2
Food-Misc./Diversified.......................... 0.2
Engineering/R&D Services........................ 0.2
Real Estate Management/Services................. 0.2
Insurance-Life/Health........................... 0.2
Footwear & Related Apparel...................... 0.2
Consumer Products-Misc.......................... 0.2
Insurance-Reinsurance........................... 0.2
Finance-Investment Banker/Broker................ 0.2
Chemicals-Diversified........................... 0.2
Semiconductor Components-Integrated Circuits.... 0.2
Financial Guarantee Insurance................... 0.2
Apparel Manufacturers........................... 0.2
Computers-Other................................. 0.2
Machinery-Pumps................................. 0.2
Transport-Truck................................. 0.2
Power Converter/Supply Equipment................ 0.2
Racetracks...................................... 0.2
Building-Mobile Home/Manufactured Housing....... 0.2
Diagnostic Equipment............................ 0.1
Transport-Services.............................. 0.1
Rubber/Plastic Products......................... 0.1
U.S. Government Treasuries...................... 0.1
Non-Hazardous Waste Disposal.................... 0.1
Resorts/Theme Parks............................. 0.1
Steel-Producers................................. 0.1
Data Processing/Management...................... 0.1
Insurance-Multi-line............................ 0.1
Physical Therapy/Rehabilitation Centers......... 0.1
Retail-Home Furnishings......................... 0.1
Satellite Telecom............................... 0.1
Miscellaneous Manufacturing..................... 0.1
Medical-Hospitals............................... 0.1
39
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO PROFILE -- OCTOBER 31, 2019 -- (UNAUDITED) (CONTINUED)
INDUSTRY ALLOCATION* (CONTINUED)
Web Hosting/Design.............................. 0.1%
Environmental Consulting & Engineering.......... 0.1
Diagnostic Kits................................. 0.1
Retail-Misc./Diversified........................ 0.1
Health Care Cost Containment.................... 0.1
Machinery-Electrical............................ 0.1
Publishing-Newspapers........................... 0.1
Electronic Parts Distribution................... 0.1
Building Products-Wood.......................... 0.1
Coal............................................ 0.1
Security Services............................... 0.1
Tools-Hand Held................................. 0.1
Machine Tools & Related Products................ 0.1
Firearms & Ammunition........................... 0.1
Transport-Equipment & Leasing................... 0.1
Retail-Discount................................. 0.1
Athletic Equipment.............................. 0.1
Electronics-Military............................ 0.1
Paper & Related Products........................ 0.1
Veterinary Diagnostics.......................... 0.1
Cosmetics & Toiletries.......................... 0.1
Printing-Commercial............................. 0.1
Retail-Pawn Shops............................... 0.1
Medical-Generic Drugs........................... 0.1
Electric Products-Misc.......................... 0.1
Telecom Services................................ 0.1
Wire & Cable Products........................... 0.1
Drug Delivery Systems........................... 0.1
Healthcare Safety Devices....................... 0.1
Wireless Equipment.............................. 0.1
Oil Field Machinery & Equipment................. 0.1
Electric-Generation............................. 0.1
Medical-Nursing Homes........................... 0.1
Tobacco......................................... 0.1
Brewery......................................... 0.1
Pastoral & Agricultural......................... 0.1
Golf............................................ 0.1
Cable/Satellite TV.............................. 0.1
Identification Systems.......................... 0.1
Poultry......................................... 0.1
Machinery-Construction & Mining................. 0.1
Linen Supply & Related Items.................... 0.1
Finance-Mortgage Loan/Banker.................... 0.1
Lasers-System/Components........................ 0.1
Banks-Super Regional............................ 0.1
Real Estate Operations & Development............ 0.1
Batteries/Battery Systems....................... 0.1
Instruments-Controls............................ 0.1
Private Equity.................................. 0.1
Banks-Mortgage.................................. 0.1
Retail-Pet Food & Supplies...................... 0.1
Retail-Petroleum Products....................... 0.1
Steel-Specialty................................. 0.1
Food-Confectionery.............................. 0.1
Finance-Commercial.............................. 0.1
Medical-HMO..................................... 0.1
Beverages-Non-alcoholic......................... 0.1
Chemicals-Plastics.............................. 0.1
Building-Maintenance & Services................. 0.1
Casino Hotels................................... 0.1
Precious Metals................................. 0.1
Insurance Brokers............................... 0.1%
Auto Repair Centers............................. 0.1
Home Furnishings................................ 0.1
Steel Pipe & Tube............................... 0.1
Multimedia...................................... 0.1
----
99.5%
====
--------
* Calculated as a percentage of net assets
40
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
COMMON STOCKS -- 97.7%
ADVANCED MATERIALS -- 0.0%
Haynes International, Inc...................... 120 $ 4,135
--------
ADVERTISING AGENCIES -- 0.0%
MDC Partners, Inc., Class A+................... 550 1,722
Telaria, Inc.+................................. 420 3,179
--------
4,901
--------
ADVERTISING SALES -- 0.6%
Boston Omaha Corp., Class A+................... 100 2,246
Clear Channel Outdoor Holdings, Inc.+.......... 475 1,107
National CineMedia, Inc........................ 30,484 255,913
--------
259,266
--------
ADVERTISING SERVICES -- 0.0%
Fluent, Inc.+.................................. 414 965
Marchex, Inc., Class B+........................ 349 1,155
SharpSpring, Inc.+............................. 99 1,009
--------
3,129
--------
AEROSPACE/DEFENSE -- 0.6%
AeroVironment, Inc.+........................... 207 12,002
Kratos Defense & Security Solutions, Inc.+..... 875 16,520
National Presto Industries, Inc................ 49 4,219
Park Aerospace Corp............................ 14,582 247,748
Wesco Aircraft Holdings, Inc.+................. 517 5,697
--------
286,186
--------
AEROSPACE/DEFENSE-EQUIPMENT -- 0.3%
AAR Corp....................................... 324 13,527
Aerojet Rocketdyne Holdings, Inc.+............. 710 30,694
Astronics Corp.+............................... 238 6,888
Barnes Group, Inc.............................. 458 26,770
Coda Octopus Group, Inc.+...................... 45 330
Ducommun, Inc.+................................ 105 5,206
Kaman Corp..................................... 269 15,782
Moog, Inc., Class A............................ 313 26,201
Triumph Group, Inc............................. 482 10,011
--------
135,409
--------
AGRICULTURAL BIOTECH -- 0.0%
Calyxt, Inc.+.................................. 91 417
--------
AGRICULTURAL CHEMICALS -- 0.0%
Intrepid Potash, Inc.+......................... 927 2,865
Marrone Bio Innovations, Inc.+................. 504 665
--------
3,530
--------
AGRICULTURAL OPERATIONS -- 0.0%
Alico, Inc..................................... 39 1,281
Andersons, Inc................................. 306 5,636
Cadiz, Inc.+................................... 128 1,516
Limoneira Co................................... 152 2,876
Phibro Animal Health Corp., Class A............ 198 4,744
Tejon Ranch Co.+............................... 204 3,280
--------
19,333
--------
AIRLINES -- 0.6%
Allegiant Travel Co............................ 126 21,084
Hawaiian Holdings, Inc......................... 455 13,017
Mesa Air Group, Inc.+.......................... 26,974 205,542
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
AIRLINES (CONTINUED)
SkyWest, Inc................................... 486 $ 28,941
Spirit Airlines, Inc.+......................... 666 25,015
--------
293,599
--------
APPAREL MANUFACTURERS -- 0.2%
Centric Brands, Inc.+.......................... 162 405
Deckers Outdoor Corp.+......................... 285 43,576
Delta Apparel, Inc.+........................... 60 1,497
Kontoor Brands, Inc............................ 430 16,340
Oxford Industries, Inc......................... 161 11,086
Superior Group of Cos., Inc.................... 104 1,505
Vince Holding Corp.+........................... 30 634
--------
75,043
--------
APPLIANCES -- 0.0%
Hamilton Beach Brands Holding Co., Class A..... 63 1,175
iRobot Corp.+.................................. 267 12,832
--------
14,007
--------
APPLICATIONS SOFTWARE -- 1.0%
Appfolio, Inc., Class A+....................... 153 14,876
Brightcove, Inc.+.............................. 372 3,538
Ebix, Inc...................................... 226 9,634
Five9, Inc.+................................... 581 32,251
GTY Technology Holdings, Inc.+................. 385 2,006
Ideanomics, Inc.+.............................. 497 572
Immersion Corp.+............................... 303 2,491
PDF Solutions, Inc.+........................... 274 4,428
Upland Software, Inc.+......................... 9,337 349,951
Verra Mobility Corp.+.......................... 1,127 16,172
--------
435,919
--------
ATHLETIC EQUIPMENT -- 0.1%
Clarus Corp.................................... 228 2,907
Fox Factory Holding Corp.+..................... 366 22,304
Vista Outdoor, Inc.+........................... 562 3,766
YETI Holdings, Inc.+........................... 301 10,026
--------
39,003
--------
AUDIO/VIDEO PRODUCTS -- 0.8%
Daktronics, Inc................................ 356 2,442
Sonos, Inc.+................................... 686 8,973
Universal Electronics, Inc.+................... 6,450 336,174
--------
347,589
--------
AUTO REPAIR CENTERS -- 0.1%
Monro, Inc..................................... 317 22,225
--------
AUTO-HEAVY DUTY TRUCKS -- 0.7%
Blue Bird Corp.+............................... 16,057 313,754
Navistar International Corp.+.................. 482 15,077
REV Group, Inc................................. 264 3,284
--------
332,115
--------
AUTO-TRUCK TRAILERS -- 0.0%
Wabash National Corp........................... 522 7,444
--------
AUTO/TRUCK PARTS & EQUIPMENT-ORIGINAL -- 1.0%
Adient PLC..................................... 852 18,054
American Axle & Manufacturing Holdings, Inc.+.. 1,088 9,096
Cooper-Standard Holdings, Inc.+................ 163 5,193
41
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
COMMON STOCKS (CONTINUED)
AUTO/TRUCK PARTS & EQUIPMENT-ORIGINAL (CONTINUED)
Dana, Inc...................................... 1,404 $ 22,787
Dorman Products, Inc.+......................... 262 18,851
Gentherm, Inc.+................................ 321 13,408
Meritor, Inc.+................................. 771 16,985
Methode Electronics, Inc....................... 356 12,246
Miller Industries, Inc......................... 107 3,847
Modine Manufacturing Co.+...................... 482 5,509
Spartan Motors, Inc............................ 17,973 313,988
Telenav, Inc.+................................. 316 1,488
Tenneco, Inc., Class A......................... 493 6,207
Titan International, Inc....................... 487 1,300
Visteon Corp.+................................. 272 25,302
--------
474,261
--------
AUTO/TRUCK PARTS & EQUIPMENT-REPLACEMENT -- 1.0%
Commercial Vehicle Group, Inc.+................ 295 2,151
Douglas Dynamics, Inc.......................... 8,892 416,412
Motorcar Parts of America, Inc.+............... 182 3,469
Standard Motor Products, Inc................... 204 10,681
--------
432,713
--------
B2B/E-COMMERCE -- 0.0%
ePlus, Inc.+................................... 130 10,157
--------
BANKS-COMMERCIAL -- 6.5%
1st Constitution Bancorp....................... 73 1,386
1st Source Corp................................ 137 7,012
ACNB Corp...................................... 66 2,336
Allegiance Bancshares, Inc.+................... 189 6,286
Amalgamated Bank, Class A...................... 134 2,440
Amerant Bancorp, Inc.+......................... 188 3,694
American National Bankshares, Inc.............. 104 3,765
Ameris Bancorp................................. 594 25,453
Ames National Corp............................. 86 2,382
Arrow Financial Corp........................... 124 4,355
Atlantic Capital Bancshares, Inc.+............. 217 4,047
Atlantic Union Bankshares Corp................. 790 29,119
BancFirst Corp................................. 181 10,478
Bancorp, Inc.+................................. 488 5,319
BancorpSouth Bank.............................. 931 28,554
Bank First Corp................................ 56 3,920
Bank of Commerce Holdings...................... 168 1,885
Bank of Marin Bancorp.......................... 130 5,703
Bank of N.T. Butterfield & Son, Ltd............ 532 17,529
Bank of Princeton.............................. 54 1,553
Bank7 Corp..................................... 7,197 130,985
Bankwell Financial Group, Inc.................. 64 1,832
Banner Corp.................................... 330 17,813
Bar Harbor Bankshares.......................... 148 3,707
Baycom Corp.+.................................. 105 2,220
BCB Bancorp, Inc............................... 135 1,742
Bridge Bancorp, Inc............................ 159 5,152
Bridgewater Bancshares, Inc.+.................. 217 2,732
Bryn Mawr Bank Corp............................ 8,189 312,083
Business First Bancshares, Inc................. 121 2,957
Byline Bancorp, Inc.+.......................... 227 3,936
C&F Financial Corp............................. 32 1,628
Cadence BanCorp................................ 1,221 18,779
Cambridge Bancorp.............................. 42 3,255
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
BANKS-COMMERCIAL (CONTINUED)
Camden National Corp........................... 149 $ 6,602
Capital Bancorp, Inc.+......................... 77 1,116
Capital City Bank Group, Inc................... 131 3,727
Capstar Financial Holdings, Inc................ 142 2,401
Carolina Financial Corp........................ 203 7,704
Carter Bank & Trust+........................... 220 4,323
Cathay General Bancorp......................... 746 26,535
CenterState Bank Corp.......................... 1,209 30,660
Central Pacific Financial Corp................. 272 7,866
Central Valley Community Bancorp............... 111 2,312
Century Bancorp, Inc., Class A................. 28 2,436
Chemung Financial Corp......................... 35 1,490
Citizens & Northern Corp....................... 117 3,008
City Holding Co................................ 156 12,377
Civista Bancshares, Inc........................ 149 3,350
CNB Financial Corp............................. 141 4,409
Coastal Financial Corp.+....................... 76 1,144
Codorus Valley Bancorp, Inc.................... 93 2,023
Colony Bankcorp, Inc........................... 72 1,119
Columbia Banking System, Inc................... 714 28,060
Community Bank System, Inc..................... 494 33,483
Community Financial Corp....................... 48 1,599
Community Trust Bancorp, Inc................... 150 6,571
ConnectOne Bancorp, Inc........................ 322 7,818
CrossFirst Bankshares, Inc.+................... 64 856
Customers Bancorp, Inc.+....................... 275 6,484
CVB Financial Corp............................. 1,297 26,952
DNB Financial Corp............................. 34 1,546
Eagle Bancorp, Inc............................. 328 14,806
Enterprise Bancorp, Inc........................ 87 2,593
Enterprise Financial Services Corp............. 240 10,512
Equity Bancshares, Inc., Class A+.............. 145 4,025
Esquire Financial Holdings, Inc.+.............. 62 1,507
Evans Bancorp, Inc............................. 46 1,748
Farmers & Merchants Bancorp, Inc............... 98 2,509
Farmers National Banc Corp..................... 249 3,715
FB Financial Corp.............................. 165 6,216
Fidelity D&D Bancorp, Inc...................... 27 1,781
Financial Institutions, Inc.................... 150 4,715
First Bancorp.................................. 285 10,759
First Bancorp, Inc............................. 100 2,827
First BanCorp./Puerto Rico..................... 2,086 21,945
First Bancshares, Inc.......................... 161 5,307
First Bank..................................... 161 1,700
First Busey Corp............................... 504 13,290
First Business Financial Services, Inc......... 80 1,946
First Choice Bancorp........................... 98 2,191
First Commonwealth Financial Corp.............. 951 13,400
First Community Bankshares, Inc................ 149 4,743
First Financial Bancorp........................ 947 22,198
First Financial Bankshares, Inc................ 1,265 42,099
First Financial Corp........................... 127 5,571
First Foundation, Inc.......................... 380 6,084
First Guaranty Bancshares, Inc................. 46 966
First Internet Bancorp......................... 94 2,138
First Interstate BancSystem, Inc., Class A..... 368 15,441
First Merchants Corp........................... 530 20,961
First Mid Bancshares, Inc...................... 141 4,921
First Midwest Bancorp, Inc..................... 1,035 21,259
42
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
COMMON STOCKS (CONTINUED)
BANKS-COMMERCIAL (CONTINUED)
First Northwest Bancorp........................ 87 $ 1,529
First of Long Island Corp...................... 232 5,438
FNCB Bancorp, Inc.............................. 166 1,233
Franklin Financial Network, Inc................ 128 4,259
Franklin Financial Services Corp............... 40 1,432
Fulton Financial Corp.......................... 1,580 26,955
FVCBankcorp, Inc.+............................. 118 2,032
German American Bancorp, Inc................... 241 7,965
Glacier Bancorp, Inc........................... 845 35,760
Great Southern Bancorp, Inc.................... 107 6,465
Great Western Bancorp, Inc..................... 556 19,388
Guaranty Bancshares, Inc....................... 79 2,501
Hancock Whitney Corp........................... 876 34,164
Hanmi Financial Corp........................... 294 5,660
HarborOne Bancorp, Inc.+....................... 255 2,604
Hawthorn Bancshares, Inc....................... 55 1,320
Heartland Financial USA, Inc................... 338 15,812
Heritage Commerce Corp......................... 406 4,880
Heritage Financial Corp........................ 357 9,828
Hilltop Holdings, Inc.......................... 695 16,235
Home BancShares, Inc........................... 1,508 27,868
HomeStreet, Inc.+.............................. 217 6,512
Hope Bancorp, Inc.............................. 1,172 16,724
Horizon Bancorp................................ 363 6,627
Howard Bancorp, Inc.+.......................... 125 2,098
IBERIABANK Corp................................ 508 37,282
Independent Bank Corp./Massachusetts........... 323 26,512
Independent Bank Corp./Michigan................ 210 4,727
International Bancshares Corp.................. 540 22,118
Investar Holding Corp.......................... 91 2,258
Kearny Financial Corp.......................... 797 11,182
Lakeland Bancorp, Inc.......................... 473 7,828
Lakeland Financial Corp........................ 240 11,172
LCNB Corp...................................... 119 2,152
Level One Bancorp, Inc......................... 50 1,220
Live Oak Bancshares, Inc....................... 247 4,483
Luther Burbank Corp............................ 194 2,245
Macatawa Bank Corp............................. 253 2,645
Mackinac Financial Corp........................ 90 1,408
MainStreet Bancshares, Inc.+................... 69 1,431
Mercantile Bank Corp........................... 156 5,493
Merchants Bancorp.............................. 84 1,372
Meta Financial Group, Inc...................... 343 10,859
Metropolitan Bank Holding Corp.+............... 68 2,920
Mid Penn Bancorp, Inc.......................... 67 1,709
Midland States Bancorp, Inc.................... 213 5,708
MidWestOne Financial Group, Inc................ 116 3,781
MVB Financial Corp............................. 91 1,834
National Bankshares, Inc....................... 62 2,609
NBT Bancorp, Inc............................... 415 16,496
Nicolet Bankshares, Inc.+...................... 79 5,449
Northeast Bank................................. 73 1,563
Northrim BanCorp, Inc.......................... 64 2,493
Norwood Financial Corp......................... 56 1,747
Oak Valley Bancorp............................. 66 1,102
OFG Bancorp.................................... 492 9,993
Ohio Valley Banc Corp.......................... 40 1,470
Old Line Bancshares, Inc....................... 148 4,333
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
BANKS-COMMERCIAL (CONTINUED)
Old National Bancorp........................... 1,664 $ 29,944
Old Second Bancorp, Inc........................ 282 3,404
OP Bancorp..................................... 128 1,254
Opus Bank...................................... 213 5,280
Origin Bancorp, Inc............................ 186 6,545
Orrstown Financial Services, Inc............... 100 2,169
Pacific Mercantile Bancorp+.................... 189 1,353
Park National Corp............................. 129 13,061
PCB Bancorp.................................... 8,709 145,702
PCSB Financial Corp............................ 158 3,201
Peapack Gladstone Financial Corp............... 184 5,373
Penns Woods Bancorp, Inc....................... 67 2,048
People's Utah Bancorp.......................... 152 4,423
Peoples Bancorp of North Carolina, Inc......... 45 1,338
Peoples Bancorp, Inc........................... 175 5,724
Peoples Financial Services Corp................ 67 3,295
Pioneer Bancorp, Inc.+......................... 107 1,445
Preferred Bank................................. 5,865 312,663
Premier Financial Bancorp, Inc................. 127 2,254
Provident Bancorp, Inc.+....................... 82 935
QCR Holdings, Inc.............................. 144 5,844
RBB Bancorp.................................... 158 3,182
Red River Bancshares, Inc.+.................... 7 308
Reliant Bancorp, Inc........................... 99 2,253
Renasant Corp.................................. 554 19,224
Republic Bancorp, Inc., Class A................ 94 4,180
Republic First Bancorp, Inc.+.................. 425 1,721
Richmond Mutual Bancorp., Inc.+................ 128 1,786
S&T Bancorp, Inc............................... 329 12,388
Sandy Spring Bancorp, Inc...................... 342 11,799
SB One Bancorp................................. 79 1,744
Seacoast Banking Corp. of Florida+............. 491 13,748
Select Bancorp, Inc.+.......................... 160 1,808
ServisFirst Bancshares, Inc.................... 462 16,170
Shore Bancshares, Inc.......................... 123 1,920
Sierra Bancorp................................. 137 3,732
Simmons First National Corp., Class A.......... 882 21,097
SmartFinancial, Inc.+.......................... 124 2,610
South Plains Financial, Inc.................... 35 586
South State Corp............................... 329 25,945
Southern First Bancshares, Inc.+............... 68 2,741
Southern National Bancorp of Virginia, Inc..... 191 3,025
Southside Bancshares, Inc...................... 312 10,748
Spirit of Texas Bancshares, Inc.+.............. 131 2,738
Sterling Bancorp, Inc.......................... 161 1,560
Stock Yards Bancorp, Inc....................... 197 7,868
Summit Financial Group, Inc.................... 106 2,699
Tompkins Financial Corp........................ 141 12,339
Towne Bank..................................... 648 18,202
TriCo Bancshares............................... 260 9,784
TriState Capital Holdings, Inc.+............... 237 5,479
Triumph Bancorp, Inc.+......................... 235 7,626
TrustCo Bank Corp.............................. 924 7,983
Trustmark Corp................................. 625 21,450
UMB Financial Corp............................. 430 28,062
United Bankshares, Inc......................... 948 37,484
United Community Banks, Inc.................... 765 23,111
United Security Bancshares..................... 131 1,332
Unity Bancorp, Inc............................. 77 1,682
43
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
-----------------------------------------------------------------
COMMON STOCKS (CONTINUED)
BANKS-COMMERCIAL (CONTINUED)
Univest Financial Corp......................... 279 $ 7,184
Valley National Bancorp........................ 3,155 36,535
Veritex Holdings, Inc.......................... 11,277 277,640
Washington Trust Bancorp, Inc.................. 147 7,510
WesBanco, Inc.................................. 513 19,284
West Bancorporation, Inc....................... 156 3,663
Westamerica Bancorporation..................... 253 16,703
Western New England Bancorp, Inc............... 231 2,208
----------
2,952,860
----------
BANKS-FIDUCIARY -- 0.0%
Parke Bancorp, Inc............................. 88 2,116
Union Bankshares, Inc.......................... 38 1,263
----------
3,379
----------
BANKS-MORTGAGE -- 0.1%
Flagstar Bancorp, Inc.......................... 277 10,066
Walker & Dunlop, Inc........................... 269 16,944
----------
27,010
----------
BANKS-SUPER REGIONAL -- 0.1%
Independent Bank Group, Inc.................... 346 18,500
National Bank Holdings Corp., Class A.......... 287 9,873
----------
28,373
----------
BATTERIES/BATTERY SYSTEMS -- 0.1%
EnerSys........................................ 414 27,680
----------
BEVERAGES-NON-ALCOHOLIC -- 0.1%
Celsius Holdings, Inc.+........................ 245 862
Coca-Cola Consolidated, Inc.................... 46 12,621
National Beverage Corp......................... 115 5,056
New Age Beverages Corp.+....................... 729 1,961
Primo Water Corp.+............................. 341 4,124
----------
24,624
----------
BEVERAGES-WINE/SPIRITS -- 0.0%
MGP Ingredients, Inc........................... 126 5,404
----------
BREWERY -- 0.1%
Boston Beer Co., Inc., Class A+................ 81 30,331
Craft Brew Alliance, Inc.+..................... 113 824
----------
31,155
----------
BROADCAST SERVICES/PROGRAM -- 0.0%
Hemisphere Media Group, Inc.+.................. 164 2,117
MSG Networks, Inc., Class A+................... 568 9,208
----------
11,325
----------
BUILDING & CONSTRUCTION PRODUCTS-MISC. -- 0.5%
American Woodmark Corp.+....................... 163 16,163
Armstrong Flooring, Inc.+...................... 172 1,056
Builders FirstSource, Inc.+.................... 1,108 25,052
Caesarstone, Ltd............................... 219 3,699
Forterra, Inc.+................................ 180 1,478
Gibraltar Industries, Inc.+.................... 314 16,714
Louisiana-Pacific Corp......................... 1,207 35,281
Patrick Industries, Inc.+...................... 219 10,821
Select Interior Concepts, Inc., Class A+....... 202 2,315
Simpson Manufacturing Co., Inc................. 435 35,948
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
BUILDING & CONSTRUCTION PRODUCTS-MISC. (CONTINUED)
Summit Materials, Inc., Class A+............... 1,094 $ 25,085
Trex Co., Inc.+................................ 571 50,185
--------
223,797
--------
BUILDING & CONSTRUCTION-MISC. -- 0.3%
BrightView Holdings, Inc.+..................... 303 5,393
Comfort Systems USA, Inc....................... 354 17,845
Concrete Pumping Holdings, Inc.+............... 156 537
Cornerstone Building Brands, Inc.+............. 447 2,794
EMCOR Group, Inc............................... 542 47,539
IES Holdings, Inc.+............................ 80 1,552
MYR Group, Inc.+............................... 157 5,402
NV5 Global, Inc.+.............................. 101 7,315
TopBuild Corp.+................................ 329 34,193
WillScot Corp.+................................ 502 7,912
--------
130,482
--------
BUILDING PRODUCTS-AIR & HEATING -- 0.0%
AAON, Inc...................................... 399 19,415
--------
BUILDING PRODUCTS-CEMENT -- 0.0%
Continental Building Products, Inc.+........... 338 10,110
US Concrete, Inc.+............................. 155 8,100
--------
18,210
--------
BUILDING PRODUCTS-DOORS & WINDOWS -- 0.4%
Apogee Enterprises, Inc........................ 254 9,535
Griffon Corp................................... 355 7,565
JELD-WEN Holding, Inc.+........................ 656 11,211
Masonite International Corp.+.................. 242 14,861
PGT Innovations, Inc.+......................... 7,619 134,552
--------
177,724
--------
BUILDING PRODUCTS-WOOD -- 0.1%
Boise Cascade Co............................... 377 13,485
Universal Forest Products, Inc................. 579 29,159
--------
42,644
--------
BUILDING-HEAVY CONSTRUCTION -- 0.9%
Aegion Corp.+.................................. 296 6,414
Arcosa, Inc.................................... 473 18,168
Construction Partners, Inc., Class A+.......... 17,836 305,352
Dycom Industries, Inc.+........................ 296 13,495
Granite Construction, Inc...................... 455 10,711
Great Lakes Dredge & Dock Corp.+............... 593 6,375
MasTec, Inc.+.................................. 583 36,694
Primoris Services Corp......................... 430 8,789
Sterling Construction Co., Inc.+............... 254 4,126
Tutor Perini Corp.+............................ 387 5,987
--------
416,111
--------
BUILDING-MAINTENANCE & SERVICES -- 0.1%
ABM Industries, Inc............................ 647 23,590
--------
BUILDING-MOBILE HOME/MANUFACTURED HOUSING -- 0.2%
Cavco Industries, Inc.+........................ 84 16,099
LCI Industries................................. 237 23,017
Skyline Champion Corp.+........................ 489 13,805
Winnebago Industries, Inc...................... 302 14,517
--------
67,438
--------
44
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
COMMON STOCKS (CONTINUED)
BUILDING-RESIDENTIAL/COMMERCIAL -- 1.1%
Beazer Homes USA, Inc.+........................ 279 $ 4,188
Century Communities, Inc.+..................... 10,108 304,958
Forestar Group, Inc.+.......................... 103 1,934
Green Brick Partners, Inc.+.................... 236 2,377
Installed Building Products, Inc.+............. 220 14,348
KB Home........................................ 833 29,730
LGI Homes, Inc.+............................... 195 15,304
M/I Homes, Inc.+............................... 258 11,398
MDC Holdings, Inc.............................. 483 18,697
Meritage Homes Corp.+.......................... 352 25,376
Taylor Morrison Home Corp., Class A+........... 1,023 25,626
TRI Pointe Group, Inc.+........................ 1,374 21,627
William Lyon Homes, Class A+................... 309 5,979
--------
481,542
--------
CABLE/SATELLITE TV -- 0.1%
Liberty Latin America, Ltd., Class A+.......... 449 8,392
Liberty Latin America, Ltd., Class C+.......... 1,106 20,361
WideOpenWest, Inc.+............................ 240 1,524
--------
30,277
--------
CAPACITORS -- 0.0%
KEMET Corp..................................... 553 12,022
--------
CASINO HOTELS -- 0.1%
Boyd Gaming Corp............................... 783 21,337
Century Casinos, Inc.+......................... 265 1,958
--------
23,295
--------
CASINO SERVICES -- 0.7%
Eldorado Resorts, Inc.+........................ 640 28,653
Everi Holdings, Inc.+.......................... 26,696 268,562
Scientific Games Corp.+........................ 542 13,002
--------
310,217
--------
CELLULAR TELECOM -- 0.0%
ATN International, Inc......................... 107 6,338
--------
CHEMICALS-DIVERSIFIED -- 0.2%
Aceto Chemicals, Inc.+(1)...................... 1 0
AdvanSix, Inc.+................................ 272 6,191
Codexis, Inc.+................................. 513 6,936
Innophos Holdings, Inc......................... 190 6,198
Innospec, Inc.................................. 236 21,561
Koppers Holdings, Inc.+........................ 183 5,874
Orion Engineered Carbons SA.................... 585 9,687
Quaker Chemical Corp........................... 128 19,569
--------
76,016
--------
CHEMICALS-FIBERS -- 0.0%
Rayonier Advanced Materials, Inc............... 474 1,977
--------
CHEMICALS-OTHER -- 0.0%
American Vanguard Corp......................... 280 3,914
--------
CHEMICALS-PLASTICS -- 0.1%
A. Schulman, Inc. CVR+(1)...................... 318 95
PolyOne Corp................................... 746 23,909
--------
24,004
--------
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
CHEMICALS-SPECIALTY -- 0.7%
Amyris, Inc.+.................................. 362 $ 1,200
Balchem Corp................................... 313 31,679
Ferro Corp.+................................... 793 8,826
Flexible Solutions International, Inc.......... 31,296 87,197
GCP Applied Technologies, Inc.+................ 525 10,846
H.B. Fuller Co................................. 495 24,156
Hawkins, Inc................................... 95 4,061
Ingevity Corp.+................................ 409 34,442
Kraton Corp.+.................................. 304 6,816
Materion Corp.................................. 197 11,197
Minerals Technologies, Inc..................... 343 16,961
Oil-Dri Corp. of America....................... 50 1,751
OMNOVA Solutions, Inc.+........................ 426 4,307
PQ Group Holdings, Inc.+....................... 368 6,061
Rogers Corp.+.................................. 180 24,386
Sensient Technologies Corp..................... 412 25,775
Stepan Co...................................... 199 19,446
Tronox Holdings PLC, Class A................... 887 7,531
Valhi, Inc..................................... 281 531
--------
327,169
--------
CIRCUIT BOARDS -- 0.0%
TTM Technologies, Inc.+........................ 962 11,265
--------
COAL -- 0.1%
Advanced Emissions Solutions, Inc.............. 160 2,213
Arch Coal, Inc., Class A....................... 159 12,544
CONSOL Energy, Inc.+........................... 264 3,493
Hallador Energy Co............................. 198 666
NACCO Industries, Inc., Class A................ 35 1,768
Peabody Energy Corp............................ 665 7,002
Ramaco Resources, Inc.+........................ 79 280
SunCoke Energy, Inc.+.......................... 746 3,946
Warrior Met Coal, Inc.......................... 502 9,779
--------
41,691
--------
COATINGS/PAINT -- 0.0%
Kronos Worldwide, Inc.......................... 220 2,790
--------
COFFEE -- 0.0%
Farmer Brothers Co.+........................... 103 1,322
Youngevity International, Inc.+................ 84 392
--------
1,714
--------
COMMERCIAL SERVICES -- 1.1%
Acacia Research Corp.+......................... 472 1,199
Care.com, Inc.+................................ 210 2,453
Collectors Universe, Inc....................... 77 2,207
Emerald Expositions Events, Inc................ 240 2,333
Forrester Research, Inc........................ 104 3,586
Harsco Corp.+.................................. 773 15,669
Healthcare Services Group, Inc................. 722 17,588
HMS Holdings Corp.+............................ 844 27,590
LiveRamp Holdings, Inc.+....................... 651 25,448
Medifast, Inc.................................. 110 12,203
National Research Corp......................... 117 6,719
SP Plus Corp.+................................. 8,201 362,238
Team, Inc.+.................................... 289 5,248
WW International, Inc.+........................ 455 15,866
--------
500,347
--------
45
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
COMMON STOCKS (CONTINUED)
COMMERCIAL SERVICES-FINANCE -- 1.3%
Cardtronics PLC, Class A+...................... 363 $ 12,436
Cass Information Systems, Inc.................. 137 7,851
CBIZ, Inc.+.................................... 498 13,630
EVERTEC, Inc................................... 589 18,018
Evo Payments, Inc., Class A+................... 344 9,780
Green Dot Corp., Class A+...................... 470 13,555
I3 Verticals, Inc., Class A+................... 9,929 203,048
International Money Express, Inc.+............. 19,055 291,923
PRGX Global, Inc.+............................. 203 1,015
Priority Technology Holdings, Inc.+............ 63 218
--------
571,474
--------
COMMUNICATIONS SOFTWARE -- 0.0%
Avaya Holdings Corp.+.......................... 1,078 13,033
Pareteum Corp.+................................ 1,043 386
--------
13,419
--------
COMPUTER AIDED DESIGN -- 0.0%
Altair Engineering, Inc., Class A+............. 382 14,084
--------
COMPUTER DATA SECURITY -- 0.2%
ForeScout Technologies, Inc.+.................. 403 12,396
OneSpan, Inc.+................................. 318 5,950
Qualys, Inc.+.................................. 330 28,159
Rapid7, Inc.+.................................. 474 23,743
SecureWorks Corp., Class A+.................... 81 985
Tenable Holdings, Inc.+........................ 359 9,047
Varonis Systems, Inc.+......................... 288 20,606
--------
100,886
--------
COMPUTER SERVICES -- 0.5%
Carbonite, Inc.+............................... 322 5,529
Conduent, Inc.+................................ 1,682 10,395
ExlService Holdings, Inc.+..................... 326 22,699
Insight Enterprises, Inc.+..................... 344 21,115
MAXIMUS, Inc................................... 618 47,425
Parsons Corp.+................................. 187 6,657
Perspecta, Inc................................. 1,374 36,466
Presidio, Inc.................................. 448 7,437
Rimini Street, Inc.+........................... 195 762
Science Applications International Corp........ 577 47,672
StarTek, Inc.+................................. 161 1,047
Sykes Enterprises, Inc.+....................... 371 11,462
TTEC Holdings, Inc............................. 139 6,584
Unisys Corp.+.................................. 495 5,079
Virtusa Corp.+................................. 283 10,550
--------
240,879
--------
COMPUTER SOFTWARE -- 1.0%
Avid Technology, Inc.+......................... 35,419 239,255
Bandwidth, Inc., Class A+...................... 156 8,760
Box, Inc., Class A+............................ 1,393 23,570
Cision, Ltd.+.................................. 889 8,952
Cloudera, Inc.+................................ 2,294 19,453
Cornerstone OnDemand, Inc.+.................... 553 32,389
Envestnet, Inc.+............................... 464 28,995
j2 Global, Inc................................. 454 43,112
Simulations Plus, Inc.......................... 116 4,108
TiVo Corp...................................... 1,192 9,703
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
-----------------------------------------------------------------
COMPUTER SOFTWARE (CONTINUED)
Yext, Inc.+.................................... 903 $ 14,863
Zuora, Inc., Class A+.......................... 845 12,041
----------
445,201
----------
COMPUTERS -- 0.0%
Inspired Entertainment, Inc.+.................. 86 632
----------
COMPUTERS-INTEGRATED SYSTEMS -- 0.8%
Agilysys, Inc.+................................ 12,027 302,960
Cubic Corp..................................... 304 22,417
Diebold Nixdorf, Inc.+......................... 747 5,229
MTS Systems Corp............................... 175 9,884
NetScout Systems, Inc.+........................ 707 17,123
PAR Technology Corp.+.......................... 112 2,807
----------
360,420
----------
COMPUTERS-OTHER -- 0.2%
3D Systems Corp.+.............................. 1,118 10,610
Lumentum Holdings, Inc.+....................... 744 46,619
PlayAGS, Inc.+................................. 259 2,989
Stratasys, Ltd.+............................... 499 10,319
----------
70,537
----------
COMPUTERS-PERIPHERY EQUIPMENT -- 0.0%
Mitek Systems, Inc.+........................... 358 3,451
----------
COMPUTERS-VOICE RECOGNITION -- 0.0%
Vocera Communications, Inc.+................... 302 6,016
----------
CONSULTING SERVICES -- 2.4%
CRA International, Inc......................... 7,878 387,992
Franklin Covey Co.+............................ 94 3,591
FTI Consulting, Inc.+.......................... 362 39,411
GP Strategies Corp.+........................... 124 1,376
Hackett Group, Inc............................. 17,636 298,225
Huron Consulting Group, Inc.+.................. 217 14,352
ICF International, Inc......................... 176 15,082
Information Services Group, Inc.+.............. 346 747
Kelly Services, Inc., Class A.................. 322 7,731
R1 RCM, Inc.+.................................. 28,234 300,127
Vectrus, Inc.+................................. 110 5,028
----------
1,073,662
----------
CONSUMER PRODUCTS-MISC. -- 0.2%
Central Garden & Pet Co.+...................... 102 3,062
Central Garden & Pet Co., Class A+............. 408 11,538
Helen of Troy, Ltd.+........................... 244 36,542
Quanex Building Products Corp.................. 321 6,192
WD-40 Co....................................... 133 24,924
----------
82,258
----------
CONTAINERS-METAL/GLASS -- 0.0%
Greif, Inc., Class A........................... 251 9,831
Greif, Inc., Class B........................... 59 2,775
----------
12,606
----------
CONTAINERS-PAPER/PLASTIC -- 0.6%
Matthews International Corp., Class A.......... 300 11,094
UFP Technologies, Inc.+........................ 6,365 264,848
----------
275,942
----------
46
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
COMMON STOCKS (CONTINUED)
COSMETICS & TOILETRIES -- 0.1%
e.l.f. Beauty, Inc.+........................... 255 $ 4,284
Edgewell Personal Care Co.+.................... 525 18,375
Inter Parfums, Inc............................. 171 13,241
Revlon, Inc., Class A+......................... 67 1,761
--------
37,661
--------
CRUISE LINES -- 0.0%
Lindblad Expeditions Holdings, Inc.+........... 223 3,510
--------
DATA PROCESSING/MANAGEMENT -- 0.1%
Bottomline Technologies, Inc.+................. 416 17,035
CommVault Systems, Inc.+....................... 392 19,471
CSG Systems International, Inc................. 319 18,387
--------
54,893
--------
DENTAL SUPPLIES & EQUIPMENT -- 0.0%
Patterson Cos., Inc............................ 812 13,910
--------
DIAGNOSTIC EQUIPMENT -- 0.1%
Accelerate Diagnostics, Inc.+.................. 265 4,081
BioTelemetry, Inc.+............................ 322 12,674
GenMark Diagnostics, Inc.+..................... 529 2,968
OPKO Health, Inc.+............................. 3,466 4,922
Quanterix Corp.+............................... 126 2,627
Repligen Corp.+................................ 503 39,983
--------
67,255
--------
DIAGNOSTIC KITS -- 0.1%
Celcuity, Inc.+................................ 57 898
Genomic Health, Inc.+.......................... 261 17,403
Meridian Bioscience, Inc....................... 409 4,004
OraSure Technologies, Inc.+.................... 597 5,098
Quidel Corp.+.................................. 344 19,574
--------
46,977
--------
DIALYSIS CENTERS -- 0.0%
American Renal Associates Holdings, Inc.+...... 178 1,481
--------
DIRECT MARKETING -- 0.0%
Quotient Technology, Inc.+..................... 729 6,277
--------
DISPOSABLE MEDICAL PRODUCTS -- 0.9%
BioLife Solutions, Inc.+....................... 22,393 380,905
CONMED Corp.................................... 265 29,155
Merit Medical Systems, Inc.+................... 521 10,761
Utah Medical Products, Inc..................... 34 3,484
--------
424,305
--------
DISTRIBUTION/WHOLESALE -- 0.3%
Anixter International, Inc.+................... 296 24,494
BlueLinx Holdings, Inc.+....................... 87 2,720
Core-Mark Holding Co., Inc..................... 441 13,459
EVI Industries, Inc............................ 44 1,513
Fossil Group, Inc.+............................ 455 4,950
G-III Apparel Group, Ltd.+..................... 440 11,049
H&E Equipment Services, Inc.................... 310 10,521
ScanSource, Inc.+.............................. 251 8,107
SiteOne Landscape Supply, Inc.+................ 398 35,048
Systemax, Inc.................................. 120 2,597
Titan Machinery, Inc.+......................... 184 3,054
Triton International, Ltd...................... 538 19,745
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
DISTRIBUTION/WHOLESALE (CONTINUED)
Veritiv Corp.+................................. 126 $ 1,719
--------
138,976
--------
DIVERSIFIED MANUFACTURING OPERATIONS -- 0.2%
Actuant Corp., Class A......................... 542 13,425
Chase Corp..................................... 71 8,318
EnPro Industries, Inc.......................... 200 13,910
Fabrinet+...................................... 355 19,962
Federal Signal Corp............................ 581 18,848
LSB Industries, Inc.+.......................... 218 922
Lydall, Inc.+.................................. 166 3,249
NL Industries, Inc.+........................... 81 334
Standex International Corp..................... 122 9,245
--------
88,213
--------
DIVERSIFIED MINERALS -- 0.0%
Covia Holdings Corp.+.......................... 404 558
Livent Corp.+.................................. 1,425 9,775
United States Lime & Minerals, Inc............. 20 1,770
--------
12,103
--------
DIVERSIFIED OPERATIONS/COMMERCIAL SERVICES -- 0.0%
Viad Corp...................................... 195 11,899
--------
DRUG DELIVERY SYSTEMS -- 0.1%
Antares Pharma, Inc.+.......................... 1,572 5,282
Assertio Therapeutics, Inc.+................... 626 495
BioDelivery Sciences International, Inc.+...... 812 4,693
Heron Therapeutics, Inc.+...................... 717 15,236
Revance Therapeutics, Inc.+.................... 427 6,687
Senseonics Holdings, Inc.+..................... 1,190 1,392
--------
33,785
--------
E-COMMERCE/PRODUCTS -- 0.0%
1-800-flowers.com, Inc., Class A+.............. 241 3,437
Lands' End, Inc.+.............................. 104 1,255
Overstock.com, Inc.+........................... 261 2,748
RealReal, Inc.+................................ 170 3,929
Stitch Fix, Inc., Class A+..................... 408 9,327
--------
20,696
--------
E-COMMERCE/SERVICES -- 0.2%
Cargurus, Inc.+................................ 721 24,218
Cars.com, Inc.+................................ 651 7,363
ChannelAdvisor Corp.+.......................... 259 2,437
Eventbrite, Inc., Class A+..................... 355 6,383
EverQuote, Inc., Class A+...................... 86 1,746
Groupon, Inc.+................................. 4,391 12,207
Leaf Group, Ltd.+.............................. 168 499
Shutterstock, Inc.+............................ 186 7,548
Stamps.com, Inc.+.............................. 162 13,677
Travelzoo+..................................... 51 516
TrueCar, Inc.+................................. 1,006 3,300
Upwork, Inc.+.................................. 552 8,302
--------
88,196
--------
E-MARKETING/INFO -- 0.5%
Cardlytics, Inc.+.............................. 133 5,574
comScore, Inc.+................................ 476 1,100
Liquidity Services, Inc.+...................... 266 1,726
New Media Investment Group, Inc................ 582 5,127
47
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
COMMON STOCKS (CONTINUED)
E-MARKETING/INFO (CONTINUED)
QuinStreet, Inc.+.............................. 16,938 $217,315
Rubicon Project, Inc.+......................... 477 4,054
--------
234,896
--------
E-SERVICES/CONSULTING -- 0.7%
Perficient, Inc.+.............................. 7,816 306,387
--------
EDUCATIONAL SOFTWARE -- 0.0%
Instructure, Inc.+............................. 331 15,468
--------
ELECTRIC PRODUCTS-MISC. -- 0.1%
Graham Corp.................................... 93 2,107
nLight, Inc.+.................................. 321 4,289
Novanta, Inc.+................................. 328 29,208
--------
35,604
--------
ELECTRIC-DISTRIBUTION -- 0.0%
Genie Energy, Ltd., Class B.................... 140 1,043
Spark Energy, Inc., Class A.................... 115 1,101
Unitil Corp.................................... 142 8,842
--------
10,986
--------
ELECTRIC-GENERATION -- 0.1%
Atlantic Power Corp.+.......................... 1,039 2,421
Ormat Technologies, Inc........................ 385 29,475
--------
31,896
--------
ELECTRIC-INTEGRATED -- 0.7%
ALLETE, Inc.................................... 504 43,374
Ameresco, Inc., Class A+....................... 214 3,154
Avista Corp.................................... 637 30,595
Black Hills Corp............................... 594 46,825
El Paso Electric Co............................ 395 26,351
MGE Energy, Inc................................ 339 26,117
NorthWestern Corp.............................. 492 35,680
Otter Tail Corp................................ 384 21,765
PNM Resources, Inc............................. 773 40,312
Portland General Electric Co................... 873 49,656
--------
323,829
--------
ELECTRONIC COMPONENTS-MISC. -- 0.4%
Advanced Energy Industries, Inc.+.............. 370 21,867
Applied Optoelectronics, Inc.+................. 185 1,732
Atkore International Group, Inc.+.............. 455 15,788
Bel Fuse, Inc., Class B........................ 96 1,412
Benchmark Electronics, Inc..................... 366 12,407
Comtech Telecommunications Corp................ 229 8,003
IntriCon Corp.+................................ 79 1,634
Kimball Electronics, Inc.+..................... 238 3,537
Knowles Corp.+................................. 791 17,070
NVE Corp....................................... 47 2,926
OSI Systems, Inc.+............................. 161 15,978
Plexus Corp.+.................................. 281 20,777
Sanmina Corp.+................................. 658 20,220
SMART Global Holdings, Inc.+................... 127 3,772
Transcat, Inc.+................................ 67 2,100
Vishay Intertechnology, Inc.................... 1,289 25,973
Vishay Precision Group, Inc.+.................. 102 3,473
ZAGG, Inc.+.................................... 273 2,012
--------
180,681
--------
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
ELECTRONIC COMPONENTS-SEMICONDUCTORS -- 1.3%
Adesto Technologies Corp.+..................... 34,164 $312,942
Alpha & Omega Semiconductor, Ltd.+............. 194 2,534
Ambarella, Inc.+............................... 307 16,157
Amkor Technology, Inc.+........................ 955 11,871
AVX Corp....................................... 457 7,001
AXT, Inc.+..................................... 374 1,167
CEVA, Inc.+.................................... 211 5,744
CTS Corp....................................... 315 8,404
Diodes, Inc.+.................................. 399 18,613
DSP Group, Inc.+............................... 212 3,161
GSI Technology, Inc.+.......................... 154 1,204
Impinj, Inc.+.................................. 144 4,737
Inphi Corp.+................................... 437 31,412
Lattice Semiconductor Corp.+................... 1,211 23,724
MACOM Technology Solutions Holdings, Inc.+..... 446 10,142
Photronics, Inc.+.............................. 634 7,481
Rambus, Inc.+.................................. 1,073 14,856
Semtech Corp.+................................. 640 32,294
Silicon Laboratories, Inc.+.................... 418 44,408
Synaptics, Inc.+............................... 327 13,770
Xperi Corp..................................... 479 9,726
--------
581,348
--------
ELECTRONIC MEASUREMENT INSTRUMENTS -- 1.8%
Badger Meter, Inc.............................. 278 16,068
CyberOptics Corp.+............................. 13,160 241,881
FARO Technologies, Inc.+....................... 167 7,963
Fitbit, Inc., Class A+......................... 2,184 13,497
Itron, Inc.+................................... 333 25,395
Mesa Laboratories, Inc......................... 1,110 252,802
Stoneridge, Inc.+.............................. 8,621 266,216
--------
823,822
--------
ELECTRONIC PARTS DISTRIBUTION -- 0.1%
Tech Data Corp.+............................... 354 43,011
--------
ELECTRONIC SECURITY DEVICES -- 0.8%
Alarm.com Holdings, Inc.+...................... 357 17,636
Napco Security Technologies, Inc.+............. 11,941 362,529
Wrap Technologies, Inc.+....................... 79 310
--------
380,475
--------
ELECTRONICS-MILITARY -- 0.1%
Mercury Systems, Inc.+......................... 527 38,819
--------
ENERGY-ALTERNATE SOURCES -- 0.2%
Clean Energy Fuels Corp.+...................... 1,306 2,939
Enphase Energy, Inc.+.......................... 892 17,332
FutureFuel Corp................................ 251 3,095
Green Plains, Inc.............................. 354 4,365
Pattern Energy Group, Inc., Class A............ 859 24,078
Plug Power, Inc.+.............................. 2,294 6,079
Renewable Energy Group, Inc.+.................. 357 5,833
REX American Resources Corp.+.................. 54 4,370
Sunnova Energy International, Inc.+............ 131 1,391
SunPower Corp.+................................ 611 5,352
Sunrun, Inc.+.................................. 1,099 17,078
TerraForm Power, Inc., Class A................. 710 12,056
TPI Composites, Inc.+.......................... 281 5,769
Vivint Solar, Inc.+............................ 424 2,972
--------
112,709
--------
48
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
COMMON STOCKS (CONTINUED)
ENGINEERING/R&D SERVICES -- 0.2%
Argan, Inc..................................... 143 $ 5,413
Exponent, Inc.................................. 503 31,956
Iteris, Inc.+.................................. 390 2,090
KBR, Inc....................................... 1,377 38,776
Mistras Group, Inc.+........................... 175 2,712
VSE Corp....................................... 85 3,266
--------
84,213
--------
ENGINES-INTERNAL COMBUSTION -- 0.0%
Briggs & Stratton Corp......................... 396 2,919
--------
ENTERPRISE SOFTWARE/SERVICE -- 1.6%
ACI Worldwide, Inc.+........................... 1,119 35,125
American Software, Inc., Class A............... 19,595 317,635
Appian Corp.+.................................. 303 13,526
Benefitfocus, Inc.+............................ 287 6,525
Blackbaud, Inc................................. 475 39,876
Blackline, Inc.+............................... 415 19,397
Daily Journal Corp.+........................... 12 3,372
Domo, Inc., Class B+........................... 170 2,734
Donnelley Financial Solutions, Inc.+........... 303 3,424
eGain Corp.+................................... 198 1,490
Everbridge, Inc.+.............................. 323 22,452
Evolent Health, Inc., Class A+................. 720 5,486
Exela Technologies, Inc.+...................... 436 266
Intelligent Systems Corp.+..................... 66 2,981
LivePerson, Inc.+.............................. 597 24,507
Majesco+....................................... 74 637
ManTech International Corp., Class A........... 260 20,587
MicroStrategy, Inc., Class A+.................. 80 12,260
MobileIron, Inc.+.............................. 930 5,822
Model N, Inc.+................................. 315 9,384
Omnicell, Inc.+................................ 402 28,297
Phunware, Inc.+................................ 312 515
Progress Software Corp......................... 432 17,228
PROS Holdings, Inc.+........................... 320 16,397
QAD, Inc., Class A............................. 107 4,973
SailPoint Technologies Holding, Inc.+.......... 833 16,127
SPS Commerce, Inc.+............................ 340 17,942
SVMK, Inc.+.................................... 834 15,346
Verint Systems, Inc.+.......................... 636 28,868
Workiva, Inc.+................................. 357 14,876
--------
708,055
--------
ENTERTAINMENT SOFTWARE -- 0.0%
Glu Mobile, Inc.+.............................. 1,126 6,677
--------
ENVIRONMENTAL CONSULTING & ENGINEERING -- 0.1%
NRC Group Holdings Corp.+...................... 102 1,249
Tetra Tech, Inc................................ 530 46,359
--------
47,608
--------
FILTRATION/SEPARATION PRODUCTS -- 0.0%
ESCO Technologies, Inc......................... 248 20,954
--------
FINANCE-COMMERCIAL -- 0.1%
Hannon Armstrong Sustainable Infrastructure
Capital, Inc................................. 615 18,364
Marlin Business Services Corp.................. 85 2,018
MMA Capital Holdings, Inc.+.................... 48 1,528
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
FINANCE-COMMERCIAL (CONTINUED)
NewStar Financial, Inc. CVR+(1)................ 360 $ 194
On Deck Capital, Inc.+......................... 646 2,881
--------
24,985
--------
FINANCE-CONSUMER LOANS -- 1.4%
Curo Group Holdings Corp.+..................... 17,516 245,049
Elevate Credit, Inc.+.......................... 218 892
Encore Capital Group, Inc.+.................... 301 9,990
Enova International, Inc.+..................... 14,360 337,316
LendingClub Corp.+............................. 639 8,077
Nelnet, Inc., Class A.......................... 174 10,661
Ocwen Financial Corp.+......................... 1,309 2,212
PRA Group, Inc.+............................... 438 14,861
Regional Management Corp.+..................... 87 2,517
World Acceptance Corp.+........................ 61 6,333
--------
637,908
--------
FINANCE-CREDIT CARD -- 0.5%
Paysign, Inc.+................................. 19,225 207,245
--------
FINANCE-INVESTMENT BANKER/BROKER -- 0.2%
Cowen, Inc., Class A+.......................... 280 4,192
Diamond Hill Investment Group, Inc............. 31 4,367
GAIN Capital Holdings, Inc..................... 188 793
Greenhill & Co., Inc........................... 159 2,576
Houlihan Lokey, Inc............................ 400 18,904
INTL. FCStone, Inc.+........................... 155 6,200
Ladenburg Thalmann Financial Services, Inc..... 1,155 2,610
Moelis & Co., Class A.......................... 461 16,448
Oppenheimer Holdings, Inc., Class A............ 92 2,502
Piper Jaffray Cos.............................. 133 10,446
PJT Partners, Inc., Class A.................... 219 9,095
Siebert Financial Corp.+....................... 74 664
--------
78,797
--------
FINANCE-LEASING COMPANIES -- 0.0%
Aircastle, Ltd................................. 509 13,855
--------
FINANCE-MORTGAGE LOAN/BANKER -- 0.1%
CBTX, Inc...................................... 175 5,014
Federal Agricultural Mtg. Corp., Class C....... 88 7,453
Mr. Cooper Group, Inc.+........................ 739 9,459
PennyMac Financial Services, Inc.+............. 243 7,564
--------
29,490
--------
FINANCE-OTHER SERVICES -- 0.0%
Deluxe Corp.................................... 418 21,665
--------
FINANCIAL GUARANTEE INSURANCE -- 0.2%
MBIA, Inc.+.................................... 774 7,190
NMI Holdings, Inc., Class A+................... 633 18,515
Radian Group, Inc.............................. 1,988 49,899
--------
75,604
--------
FIREARMS & AMMUNITION -- 0.1%
American Outdoor Brands Corp.+................. 525 3,717
Axon Enterprise, Inc.+......................... 567 28,991
Sturm Ruger & Co., Inc......................... 162 7,413
--------
40,121
--------
FOOD-BAKING -- 0.0%
Hostess Brands, Inc.+.......................... 1,161 14,838
--------
49
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
COMMON STOCKS (CONTINUED)
FOOD-CANNED -- 0.0%
Landec Corp.+.................................. 237 $ 2,334
Seneca Foods Corp., Class A+................... 65 2,300
--------
4,634
--------
FOOD-CONFECTIONERY -- 0.1%
Simply Good Foods Co.+......................... 803 19,705
Tootsie Roll Industries, Inc................... 160 5,485
--------
25,190
--------
FOOD-DAIRY PRODUCTS -- 0.0%
Dean Foods Co.................................. 794 778
--------
FOOD-MEAT PRODUCTS -- 0.0%
Nathan's Famous, Inc........................... 28 2,131
--------
FOOD-MISC./DIVERSIFIED -- 0.2%
B&G Foods, Inc................................. 629 9,781
Bridgford Foods Corp.+......................... 17 420
Cal-Maine Foods, Inc........................... 306 12,206
J&J Snack Foods Corp........................... 147 28,042
John B. Sanfilippo & Son, Inc.................. 84 8,914
Lancaster Colony Corp.......................... 184 25,609
--------
84,972
--------
FOOD-RETAIL -- 0.0%
Ingles Markets, Inc., Class A.................. 137 5,402
Village Super Market, Inc., Class A............ 80 2,120
Weis Markets, Inc.............................. 92 3,541
--------
11,063
--------
FOOD-WHOLESALE/DISTRIBUTION -- 1.6%
Calavo Growers, Inc............................ 4,032 349,695
Chefs' Warehouse, Inc.+........................ 8,912 295,210
Fresh Del Monte Produce, Inc................... 301 9,602
HF Foods Group, Inc.+.......................... 73 1,418
Performance Food Group Co.+.................... 1,001 42,653
SpartanNash Co................................. 348 4,557
United Natural Foods, Inc.+.................... 512 3,840
--------
706,975
--------
FOOTWEAR & RELATED APPAREL -- 0.2%
Crocs, Inc.+................................... 603 21,099
Rocky Brands, Inc.............................. 67 1,863
Steven Madden, Ltd............................. 817 33,644
Weyco Group, Inc............................... 60 1,480
Wolverine World Wide, Inc...................... 816 24,219
--------
82,305
--------
FUNERAL SERVICES & RELATED ITEMS -- 0.0%
Carriage Services, Inc......................... 160 4,122
--------
GAMBLING (NON-HOTEL) -- 0.6%
Golden Entertainment, Inc.+.................... 166 2,404
Monarch Casino & Resort, Inc.+................. 5,983 258,406
Red Rock Resorts, Inc., Class A................ 679 14,788
Twin River Worldwide Holdings, Inc............. 191 4,794
--------
280,392
--------
GAS-DISTRIBUTION -- 0.5%
Chesapeake Utilities Corp...................... 155 14,694
New Jersey Resources Corp...................... 863 37,627
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
GAS-DISTRIBUTION (CONTINUED)
Northwest Natural Holding Co................... 294 $ 20,392
ONE Gas, Inc................................... 508 47,163
RGC Resources, Inc............................. 73 2,129
South Jersey Industries, Inc................... 901 28,976
Southwest Gas Holdings, Inc.................... 528 46,094
Spire, Inc..................................... 483 40,601
--------
237,676
--------
GOLD MINING -- 0.0%
Gold Resource Corp............................. 590 2,584
Novagold Resources, Inc.+...................... 2,249 16,373
--------
18,957
--------
GOLF -- 0.1%
Acushnet Holdings Corp......................... 342 9,730
Callaway Golf Co............................... 908 18,360
Drive Shack, Inc.+............................. 587 2,342
--------
30,432
--------
HAZARDOUS WASTE DISPOSAL -- 0.9%
Heritage-Crystal Clean, Inc.+.................. 15,180 402,877
US Ecology, Inc................................ 215 13,380
--------
416,257
--------
HEALTH CARE COST CONTAINMENT -- 0.1%
CorVel Corp.+.................................. 88 6,962
HealthEquity, Inc.+............................ 673 38,220
--------
45,182
--------
HEALTHCARE SAFETY DEVICES -- 0.1%
Tandem Diabetes Care, Inc.+.................... 545 33,561
--------
HOME FURNISHINGS -- 0.1%
Ethan Allen Interiors, Inc..................... 233 4,592
Flexsteel Industries, Inc...................... 73 1,210
Hooker Furniture Corp.......................... 113 2,675
Purple Innovation, Inc.+....................... 36 260
Sleep Number Corp.+............................ 280 13,474
--------
22,211
--------
HOTELS/MOTELS -- 0.0%
BBX Capital Corp............................... 637 2,847
Bluegreen Vacations Corp....................... 70 673
Marcus Corp.................................... 217 7,834
Red Lion Hotels Corp.+......................... 234 1,404
St. Joe Co.+................................... 329 6,103
Target Hospitality Corp.+...................... 321 1,778
--------
20,639
--------
HOUSEWARES -- 0.0%
Lifetime Brands, Inc........................... 116 927
Tupperware Brands Corp......................... 474 4,564
--------
5,491
--------
HUMAN RESOURCES -- 2.4%
AMN Healthcare Services, Inc.+................. 447 26,266
ASGN, Inc.+.................................... 497 31,604
Barrett Business Services, Inc................. 70 6,141
BG Staffing, Inc............................... 19,894 380,572
Cross Country Healthcare, Inc.+................ 347 3,751
Heidrick & Struggles International, Inc........ 183 5,208
50
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
-----------------------------------------------------------------
COMMON STOCKS (CONTINUED)
HUMAN RESOURCES (CONTINUED)
Insperity, Inc................................. 377 $ 39,822
Kforce, Inc.................................... 7,883 322,494
Korn Ferry..................................... 548 20,106
Resources Connection, Inc...................... 297 4,351
TriNet Group, Inc.+............................ 434 22,998
TrueBlue, Inc.+................................ 387 8,862
Willdan Group, Inc.+........................... 7,206 218,342
----------
1,090,517
----------
IDENTIFICATION SYSTEMS -- 0.1%
Brady Corp., Class A........................... 465 26,198
Digimarc Corp.+................................ 114 4,058
----------
30,256
----------
INDEPENDENT POWER PRODUCERS -- 0.0%
Clearway Energy, Inc., Class A................. 339 5,821
Clearway Energy, Inc., Class C................. 717 12,999
----------
18,820
----------
INDUSTRIAL AUDIO & VIDEO PRODUCTS -- 0.5%
Akoustis Technologies, Inc.+................... 244 1,993
GoPro, Inc., Class A+.......................... 1,224 5,092
Turtle Beach Corp.+............................ 18,461 200,856
----------
207,941
----------
INDUSTRIAL AUTOMATED/ROBOTIC -- 0.3%
Hurco Cos., Inc................................ 62 2,157
Ichor Holdings, Ltd.+.......................... 4,397 127,997
----------
130,154
----------
INSTRUMENTS-CONTROLS -- 0.1%
Allied Motion Technologies, Inc................ 69 2,612
Watts Water Technologies, Inc., Class A........ 268 24,991
----------
27,603
----------
INSTRUMENTS-SCIENTIFIC -- 0.3%
Fluidigm Corp.+................................ 31,862 156,761
----------
INSURANCE BROKERS -- 0.1%
Crawford & Co., Class A........................ 161 1,705
eHealth, Inc.+................................. 217 14,982
Goosehead Insurance, Inc., Class A............. 111 5,681
----------
22,368
----------
INSURANCE-LIFE/HEALTH -- 0.2%
American Equity Investment Life Holding Co..... 876 21,620
CNO Financial Group, Inc....................... 1,518 23,757
FBL Financial Group, Inc., Class A............. 94 5,394
FGL Holdings................................... 1,417 12,795
GWG Holdings, Inc.+............................ 18 184
Health Insurance Innovations, Inc., Class A+... 95 2,516
Independence Holding Co........................ 49 1,916
National Western Life Group, Inc., Class A..... 22 5,997
Tiptree, Inc................................... 242 1,779
Trupanion, Inc.+............................... 276 6,541
----------
82,499
----------
INSURANCE-MULTI-LINE -- 0.1%
Citizens, Inc.+................................ 481 3,204
Genworth Financial, Inc., Class A+............. 4,919 21,053
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
INSURANCE-MULTI-LINE (CONTINUED)
Horace Mann Educators Corp..................... 402 $ 17,511
United Fire Group, Inc......................... 206 9,377
--------
51,145
--------
INSURANCE-PROPERTY/CASUALTY -- 0.6%
Ambac Financial Group, Inc.+................... 440 9,020
AMERISAFE, Inc................................. 186 11,817
Donegal Group, Inc., Class A................... 101 1,487
Employers Holdings, Inc........................ 307 12,998
Enstar Group, Ltd.+............................ 112 22,501
FedNat Holding Co.............................. 112 1,607
Hallmark Financial Services, Inc.+............. 127 2,263
HCI Group, Inc................................. 61 2,565
Heritage Insurance Holdings, Inc............... 259 3,450
Investors Title Co............................. 15 2,275
James River Group Holdings, Ltd................ 287 10,277
Kinsale Capital Group, Inc..................... 199 21,038
National General Holdings Corp................. 659 14,050
NI Holdings, Inc.+............................. 92 1,610
Palomar Holdings, Inc.+........................ 57 2,574
ProAssurance Corp.............................. 518 20,316
ProSight Global, Inc.+......................... 89 1,412
Protective Insurance Corp., Class B............ 89 1,416
RLI Corp....................................... 388 37,760
Safety Insurance Group, Inc.................... 144 13,997
Selective Insurance Group, Inc................. 568 39,260
State Auto Financial Corp...................... 167 5,526
Stewart Information Services Corp.............. 228 9,330
United Insurance Holdings Corp................. 201 2,464
Universal Insurance Holdings, Inc.............. 297 8,052
Watford Holdings, Ltd.+........................ 197 5,307
--------
264,372
--------
INSURANCE-REINSURANCE -- 0.2%
Argo Group International Holdings, Ltd......... 317 19,613
Essent Group, Ltd.............................. 936 48,756
Global Indemnity, Ltd.......................... 81 2,006
Greenlight Capital Re, Ltd., Class A+.......... 284 3,067
Third Point Reinsurance, Ltd.+................. 719 6,823
--------
80,265
--------
INTERNET APPLICATION SOFTWARE -- 0.0%
Tucows, Inc., Class A+......................... 91 5,054
VirnetX Holding Corp.+......................... 596 3,487
--------
8,541
--------
INTERNET CONNECTIVITY SERVICES -- 0.5%
Boingo Wireless, Inc.+......................... 422 3,996
Cogent Communications Holdings, Inc............ 408 23,925
PC-Tel, Inc.................................... 29,224 208,952
--------
236,873
--------
INTERNET CONTENT-ENTERTAINMENT -- 0.0%
Limelight Networks, Inc.+...................... 1,100 4,642
--------
INTERNET CONTENT-INFORMATION/NEWS -- 2.2%
DHI Group, Inc.+............................... 497 1,799
HealthStream, Inc.+............................ 15,255 428,055
LiveXLive Media, Inc.+......................... 317 539
OptimizeRx Corp.+.............................. 18,906 245,778
51
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
COMMON STOCKS (CONTINUED)
INTERNET CONTENT-INFORMATION/NEWS (CONTINUED)
TechTarget, Inc.+.............................. 11,911 $290,628
Yelp, Inc.+.................................... 674 23,260
--------
990,059
--------
INTERNET SECURITY -- 0.7%
Zix Corp.+..................................... 45,260 299,169
--------
INTERNET TELEPHONE -- 0.0%
8x8, Inc.+..................................... 911 17,601
--------
INVESTMENT COMPANIES -- 0.0%
Altus Midstream Co., Class A+.................. 489 1,076
Ellington Financial, Inc....................... 298 5,489
Medallion Financial Corp.+..................... 201 1,375
PDL Community Bancorp+......................... 82 1,150
Rafael Holdings, Inc., Class B+................ 103 1,789
--------
10,879
--------
INVESTMENT MANAGEMENT/ADVISOR SERVICES -- 1.9%
Altisource Portfolio Solutions SA+............. 56 997
Ares Management Corp., Class A................. 651 19,250
Artisan Partners Asset Management, Inc.,
Class A...................................... 486 13,292
Ashford, Inc.+................................. 2 57
Assetmark Financial Holdings, Inc.+............ 133 3,650
Associated Capital Group, Inc., Class A........ 19 771
B. Riley Financial, Inc........................ 200 5,630
Blucora, Inc.+................................. 12,541 271,262
Boston Private Financial Holdings, Inc......... 806 9,067
Brightsphere Investment Group, Inc............. 673 6,609
Cohen & Steers, Inc............................ 221 14,462
Columbia Financial, Inc.+...................... 514 8,476
Federated Investors, Inc., Class B............. 937 29,928
Focus Financial Partners, Inc. Class A+........ 294 6,433
GAMCO Investors, Inc., Class A................. 51 804
Hamilton Lane, Inc., Class A................... 212 12,639
Pzena Investment Management, Inc., Class A..... 19,185 159,235
Sculptor Capital Management, Inc............... 163 2,929
Silvercrest Asset Management Group, Inc.,
Class A...................................... 19,903 239,234
Stifel Financial Corp.......................... 657 36,779
Virtus Investment Partners, Inc................ 64 6,943
Waddell & Reed Financial, Inc., Class A........ 701 11,609
Westwood Holdings Group, Inc................... 79 2,388
WisdomTree Investments, Inc.................... 1,295 6,617
--------
869,061
--------
LASERS-SYSTEM/COMPONENTS -- 0.1%
II-VI, Inc.+................................... 868 28,774
--------
LEISURE PRODUCTS -- 0.0%
Escalade, Inc.................................. 104 1,192
Johnson Outdoors, Inc., Class A................ 48 2,810
--------
4,002
--------
LINEN SUPPLY & RELATED ITEMS -- 0.1%
UniFirst Corp.................................. 147 29,523
--------
MACHINE TOOLS & RELATED PRODUCTS -- 0.1%
Kennametal, Inc................................ 798 24,698
Luxfer Holdings PLC............................ 254 4,283
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
MACHINE TOOLS & RELATED PRODUCTS (CONTINUED)
Milacron Holdings Corp.+....................... 667 $ 11,152
--------
40,133
--------
MACHINERY-CONSTRUCTION & MINING -- 0.1%
Astec Industries, Inc.......................... 217 7,614
Hyster-Yale Materials Handling, Inc............ 98 4,971
Terex Corp..................................... 616 16,971
--------
29,556
--------
MACHINERY-ELECTRICAL -- 0.1%
Bloom Energy Corp. Class A+.................... 536 1,640
Franklin Electric Co., Inc..................... 449 24,179
SPX Corp.+..................................... 425 19,354
--------
45,173
--------
MACHINERY-FARMING -- 0.0%
Alamo Group, Inc............................... 94 10,064
Lindsay Corp................................... 105 9,913
--------
19,977
--------
MACHINERY-GENERAL INDUSTRIAL -- 0.3%
Albany International Corp., Class A............ 298 25,026
Altra Industrial Motion Corp................... 625 19,250
Applied Industrial Technologies, Inc........... 372 22,260
Chart Industries, Inc.+........................ 350 20,520
DXP Enterprises, Inc.+......................... 158 5,454
Gencor Industries, Inc.+....................... 89 1,113
Kadant, Inc.................................... 106 9,625
Manitowoc Co, Inc.+............................ 341 4,351
Tennant Co..................................... 175 13,550
Twin Disc, Inc.+............................... 100 1,076
Welbilt, Inc.+................................. 1,262 23,928
--------
146,153
--------
MACHINERY-MATERIAL HANDLING -- 0.0%
Columbus McKinnon Corp......................... 224 8,404
--------
MACHINERY-PUMPS -- 0.2%
Cactus, Inc., Class A+......................... 457 13,582
CSW Industrials, Inc........................... 145 10,037
Gorman-Rupp Co................................. 171 6,317
Mueller Water Products, Inc., Class A.......... 1,525 17,842
NN, Inc........................................ 408 2,946
SPX FLOW, Inc.+................................ 407 18,429
--------
69,153
--------
MARINE SERVICES -- 0.0%
SEACOR Marine Holdings, Inc.+.................. 191 2,485
--------
MEDICAL IMAGING SYSTEMS -- 0.0%
Lantheus Holdings, Inc.+....................... 371 7,735
--------
MEDICAL INFORMATION SYSTEMS -- 1.1%
Allscripts Healthcare Solutions, Inc.+......... 1,612 17,635
Castlight Health, Inc., Class B+............... 990 1,495
Computer Programs & Systems, Inc............... 123 2,838
Health Catalyst, Inc.+......................... 79 2,541
Inovalon Holdings, Inc., Class A+.............. 692 10,816
MTBC, Inc.+.................................... 43,525 156,690
NextGen Healthcare, Inc.+...................... 531 8,976
Phreesia, Inc.+................................ 100 2,963
52
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
COMMON STOCKS (CONTINUED)
MEDICAL INFORMATION SYSTEMS (CONTINUED)
Tabula Rasa HealthCare, Inc.+.................. 5,835 $297,235
--------
501,189
--------
MEDICAL INSTRUMENTS -- 0.2%
AngioDynamics, Inc.+........................... 355 5,431
Apyx Medical Corp.+............................ 324 2,138
LivaNova PLC+.................................. 472 33,385
Misonix, Inc.+................................. 72 1,249
Natus Medical, Inc.+........................... 328 11,047
NuVasive, Inc.+................................ 505 35,623
Silk Road Medical, Inc.+....................... 114 3,776
TransEnterix, Inc.+............................ 1,788 408
--------
93,057
--------
MEDICAL LABS & TESTING SERVICES -- 0.3%
Avalon GloboCare Corp.+........................ 211 308
Castle Biosciences, Inc.+...................... 35 824
Cellular Biomedicine Group, Inc.+.............. 118 2,158
Invitae Corp.+................................. 842 13,565
Medpace Holdings, Inc.+........................ 268 19,733
Natera, Inc.+.................................. 544 20,955
Neuronetics, Inc.+............................. 127 1,132
Personalis, Inc.+.............................. 87 901
SI-BONE, Inc.+................................. 156 2,597
Syneos Health, Inc.+........................... 605 30,341
Teladoc Health, Inc.+.......................... 694 53,160
Vapotherm, Inc.+............................... 143 1,473
--------
147,147
--------
MEDICAL LASER SYSTEMS -- 0.0%
Cutera, Inc.+.................................. 134 4,221
--------
MEDICAL PRODUCTS -- 2.4%
Accuray, Inc.+................................. 844 2,194
Alphatec Holdings, Inc.+....................... 371 2,553
AtriCure, Inc.+................................ 360 9,572
Atrion Corp.................................... 15 12,651
Avanos Medical, Inc.+.......................... 459 20,214
Avedro, Inc.+.................................. 76 1,766
AxoGen, Inc.+.................................. 329 4,091
Axonics Modulation Technologies, Inc.+......... 150 3,708
BioSig Technologies, Inc.+..................... 152 1,008
Cardiovascular Systems, Inc.+.................. 332 14,781
Cerus Corp.+................................... 1,348 5,864
Conformis, Inc.+............................... 628 1,200
CryoLife, Inc.+................................ 355 7,970
CytoSorbents Corp.+............................ 298 1,416
Glaukos Corp.+................................. 350 22,341
Globus Medical, Inc., Class A+................. 739 38,701
Haemonetics Corp.+............................. 497 60,003
Hanger, Inc.+.................................. 352 7,959
Inogen, Inc.+.................................. 177 9,635
Inspire Medical Systems, Inc.+................. 130 7,927
Integer Holdings Corp.+........................ 315 24,394
Intersect ENT, Inc.+........................... 299 5,328
Invacare Corp.................................. 327 2,524
iRadimed Corp.+................................ 14,739 372,160
iRhythm Technologies, Inc.+.................... 241 16,104
LeMaitre Vascular, Inc......................... 157 5,432
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
-----------------------------------------------------------------
MEDICAL PRODUCTS (CONTINUED)
Luminex Corp................................... 409 $ 8,382
NanoString Technologies, Inc.+................. 325 7,345
Nevro Corp.+................................... 290 24,998
Novocure, Ltd.+................................ 844 60,464
Orthofix Medical, Inc.+........................ 175 7,355
OrthoPediatrics Corp.+......................... 87 3,365
Pulse Biosciences, Inc.+....................... 109 1,535
Rockwell Medical, Inc.+........................ 601 1,328
RTI Surgical Holdings, Inc.+................... 552 1,214
SeaSpine Holdings Corp.+....................... 154 2,131
Shockwave Medical, Inc.+....................... 64 2,177
Sientra, Inc.+................................. 374 2,405
Soliton, Inc.+................................. 51 567
Surmodics, Inc.+............................... 127 6,034
Tactile Systems Technology, Inc.+.............. 176 7,994
Wright Medical Group NV+....................... 1,226 25,501
Zynex, Inc..................................... 29,512 272,691
----------
1,096,982
----------
MEDICAL-BIOMEDICAL/GENE -- 4.0%
Abeona Therapeutics, Inc.+..................... 313 742
ACADIA Pharmaceuticals, Inc.+.................. 1,024 43,428
Acceleron Pharma, Inc.+........................ 438 19,653
Acer Therapeutics, Inc.+....................... 49 153
Achillion Pharmaceuticals, Inc.+............... 1,324 8,487
Acorda Therapeutics, Inc.+..................... 436 719
ADMA Biologics, Inc.+.......................... 489 2,391
Aduro Biotech, Inc.+........................... 637 726
Adverum Biotechnologies, Inc.+................. 525 3,817
Affimed NV+.................................... 585 1,720
Agenus, Inc.+.................................. 1,040 2,694
AgeX Therapeutics, Inc.+....................... 221 345
Akero Therapeutics, Inc.+...................... 47 1,091
Albireo Pharma, Inc.+.......................... 105 1,929
Alder Biopharmaceuticals, Inc. CVR+(1)......... 708 623
Aldeyra Therapeutics, Inc.+.................... 219 1,224
Allakos, Inc.+................................. 189 12,965
Allogene Therapeutics, Inc.+................... 377 10,858
AMAG Pharmaceuticals, Inc.+.................... 328 3,183
Amicus Therapeutics, Inc.+..................... 2,486 20,957
AnaptysBio, Inc.+.............................. 239 9,015
Anavex Life Sciences Corp.+.................... 417 1,134
ANI Pharmaceuticals, Inc.+..................... 4,836 377,740
Apellis Pharmaceuticals, Inc.+................. 469 13,784
Applied Therapeutics, Inc.+.................... 20 330
Arcus Biosciences, Inc.+....................... 315 2,473
Ardelyx, Inc.+................................. 458 2,290
Arena Pharmaceuticals, Inc.+................... 485 23,627
ArQule, Inc.+.................................. 1,090 11,020
Arrowhead Pharmaceuticals, Inc.+............... 907 36,325
Assembly Biosciences, Inc.+.................... 219 3,616
Atara Biotherapeutics, Inc.+................... 500 5,460
Athersys, Inc.+................................ 1,268 1,623
Atreca, Inc., Class A+......................... 63 709
Audentes Therapeutics, Inc.+................... 437 11,755
Avid Bioservices, Inc.+........................ 545 2,916
Avrobio, Inc.+................................. 201 2,919
BioCryst Pharmaceuticals, Inc.+................ 1,070 2,140
Biohaven Pharmaceutical Holding Co., Ltd.+..... 380 17,450
53
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
COMMON STOCKS (CONTINUED)
MEDICAL-BIOMEDICAL/GENE (CONTINUED)
Blueprint Medicines Corp.+..................... 474 $ 32,630
Bridgebio Pharma, Inc.+........................ 219 4,952
Calithera Biosciences, Inc.+................... 458 1,319
Cambrex Corp.+................................. 328 19,591
Cara Therapeutics, Inc.+....................... 387 8,034
CASI Pharmaceuticals, Inc.+.................... 490 1,607
CEL-SCI Corp.+................................. 264 1,811
Cerecor, Inc.+................................. 208 716
Champions Oncology, Inc.+...................... 31,070 162,496
ChemoCentryx, Inc.+............................ 396 3,406
ChromaDex Corp.+............................... 384 1,110
Constellation Pharmaceuticals, Inc.+........... 150 2,072
Cortexyme, Inc.+............................... 29 602
Crinetics Pharmaceuticals, Inc.+............... 107 1,884
Cue Biopharma, Inc.+........................... 190 1,630
Cymabay Therapeutics, Inc.+.................... 669 3,004
CytomX Therapeutics, Inc.+..................... 438 2,685
Deciphera Pharmaceuticals, Inc.+............... 184 8,159
Denali Therapeutics, Inc.+..................... 466 7,302
Dicerna Pharmaceuticals, Inc.+................. 503 8,294
Dynavax Technologies Corp.+.................... 810 4,123
Editas Medicine, Inc.+......................... 483 10,066
Eidos Therapeutics, Inc.+...................... 107 5,190
Eiger BioPharmaceuticals, Inc.+................ 228 2,485
ElectroCore, Inc.+............................. 126 199
Emergent BioSolutions, Inc.+................... 443 25,322
Enochian Biosciences, Inc.+.................... 39 222
Enzo Biochem, Inc.+............................ 428 1,352
Epizyme, Inc.+................................. 754 8,679
Esperion Therapeutics, Inc.+................... 243 9,664
Evelo Biosciences, Inc.+....................... 133 868
Evolus, Inc.+.................................. 147 2,345
EyePoint Pharmaceuticals, Inc.+................ 601 1,358
Fate Therapeutics, Inc.+....................... 509 7,610
FibroGen, Inc.+................................ 754 29,519
Five Prime Therapeutics, Inc.+................. 335 1,323
Forty Seven, Inc.+............................. 216 1,493
Geron Corp.+................................... 1,698 2,428
GlycoMimetics, Inc.+........................... 329 1,737
Gossamer Bio, Inc.+............................ 416 8,559
Halozyme Therapeutics, Inc.+................... 1,391 21,310
Homology Medicines, Inc.+...................... 241 3,164
ImmunoGen, Inc.+............................... 1,409 3,353
Immunomedics, Inc.+............................ 1,701 27,216
Innoviva, Inc.+................................ 621 7,216
Inovio Pharmaceuticals, Inc.+.................. 901 1,919
Insmed, Inc.+.................................. 865 16,080
Intercept Pharmaceuticals, Inc.+............... 245 17,831
Intrexon Corp.+................................ 697 3,541
Iovance Biotherapeutics, Inc.+................. 1,114 23,539
Kaleido Biosciences, Inc.+..................... 49 287
Karuna Therapeutics, Inc.+..................... 45 626
Karyopharm Therapeutics, Inc.+................. 571 6,681
Kezar Life Sciences, Inc.+..................... 151 491
Kindred Biosciences, Inc.+..................... 360 2,941
Kiniksa Pharmaceuticals, Ltd., Class A+........ 135 952
Krystal Biotech, Inc.+......................... 102 4,189
Lexicon Pharmaceuticals, Inc.+................. 403 1,495
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
MEDICAL-BIOMEDICAL/GENE (CONTINUED)
Ligand Pharmaceuticals, Inc.+.................. 180 $19,586
Lineage Cell Therapeutics, Inc.+............... 1,051 820
Liquidia Technologies, Inc.+................... 131 574
Livongo Health, Inc.+.......................... 141 3,044
LogicBio Therapeutics, Inc.+................... 79 786
MacroGenics, Inc.+............................. 463 3,936
Magenta Therapeutics, Inc.+.................... 187 1,947
Marker Therapeutics, Inc.+..................... 263 1,010
Medicines Co.+................................. 735 38,580
MEI Pharma, Inc.+.............................. 662 1,198
MeiraGTx Holdings PLC+......................... 166 2,399
Menlo Therapeutics, Inc.+...................... 150 761
Mersana Therapeutics, Inc.+.................... 349 656
Mirati Therapeutics, Inc.+..................... 265 24,958
Molecular Templates, Inc.+..................... 165 1,396
Mustang Bio, Inc.+............................. 271 718
Myriad Genetics, Inc.+......................... 681 22,929
NeoGenomics, Inc.+............................. 927 21,256
Neon Therapeutics, Inc.+....................... 137 289
NextCure, Inc.+................................ 29 725
NGM Biopharmaceuticals, Inc.+.................. 66 856
Novavax, Inc.+................................. 232 967
Omeros Corp.+.................................. 453 7,176
Oncocyte Corp.+................................ 209 355
Oncternal Therapeutics, Inc. CVR+(1)........... 7 14
Organogenesis Holdings, Inc.+.................. 103 722
Osmotica Pharmaceuticals PLC+.................. 77 341
Pacific Biosciences of California, Inc.+....... 1,383 6,694
Palatin Technologies, Inc.+.................... 1,967 1,589
PDL BioPharma, Inc.+........................... 1,095 3,088
Pfenex, Inc.+.................................. 290 2,674
Pieris Pharmaceuticals, Inc.+.................. 450 1,490
PolarityTE, Inc.+.............................. 143 388
Precision BioSciences, Inc.+................... 89 578
Prevail Therapeutics, Inc.+.................... 72 793
Prothena Corp. PLC+............................ 391 3,558
PTC Therapeutics, Inc.+........................ 556 22,735
Puma Biotechnology, Inc.+...................... 299 2,033
Radius Health, Inc.+........................... 438 12,457
REGENXBIO, Inc.+............................... 325 11,599
Replimune Group, Inc.+......................... 113 1,921
resTORbio, Inc.+............................... 149 1,080
Retrophin, Inc.+............................... 402 4,824
Rigel Pharmaceuticals, Inc.+................... 1,634 3,350
Rocket Pharmaceuticals, Inc.+.................. 289 4,202
Rubius Therapeutics, Inc.+..................... 340 3,006
Sangamo Therapeutics, Inc.+.................... 1,116 10,100
Savara, Inc.+.................................. 337 297
Scholar Rock Holding Corp.+.................... 171 1,582
Solid Biosciences, Inc.+....................... 191 2,111
Sorrento Therapeutics, Inc.+................... 1,216 1,848
Spark Therapeutics, Inc.+...................... 334 36,463
Stemline Therapeutics, Inc.+................... 436 4,360
Stoke Therapeutics, Inc.+...................... 89 2,522
Strongbridge Biopharma PLC+.................... 352 746
Syndax Pharmaceuticals, Inc.+.................. 195 1,310
Synlogic, Inc.+................................ 152 325
Synthorx, Inc.+................................ 93 1,278
TCR2 Therapeutics, Inc.+....................... 114 1,417
54
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
-----------------------------------------------------------------
COMMON STOCKS (CONTINUED)
MEDICAL-BIOMEDICAL/GENE (CONTINUED)
Theravance Biopharma, Inc.+.................... 429 $ 6,915
Tobira Therapeutics, Inc. CVR+(1).............. 104 0
Tocagen, Inc.+................................. 206 130
Translate Bio, Inc.+........................... 286 2,615
TransMedics Group, Inc.+....................... 64 1,148
Twist Bioscience Corp.+........................ 211 5,026
Tyme Technologies, Inc.+....................... 574 763
Ultragenyx Pharmaceutical, Inc.+............... 531 21,314
UNITY Biotechnology, Inc.+..................... 259 1,616
VBI Vaccines, Inc.+............................ 816 477
Veracyte, Inc.+................................ 10,548 241,866
Vericel Corp.+................................. 427 6,776
Viking Therapeutics, Inc.+..................... 631 4,083
WaVe Life Sciences, Ltd.+...................... 218 5,513
X4 Pharmaceuticals, Inc.+...................... 116 1,421
XBiotech, Inc.+................................ 185 2,011
Y-mAbs Therapeutics, Inc.+..................... 198 6,168
ZIOPHARM Oncology, Inc.+....................... 1,560 6,583
----------
1,829,550
----------
MEDICAL-DRUGS -- 3.1%
AcelRx Pharmaceuticals, Inc.+.................. 762 1,524
Aclaris Therapeutics, Inc.+.................... 300 525
Adamas Pharmaceuticals, Inc.+.................. 219 900
Aeglea BioTherapeutics, Inc.+.................. 254 1,933
Aerie Pharmaceuticals, Inc.+................... 410 9,098
Aimmune Therapeutics, Inc.+.................... 432 12,018
Akcea Therapeutics, Inc.+...................... 120 2,200
Akorn, Inc.+................................... 907 4,526
Alector, Inc.+................................. 294 4,951
Amphastar Pharmaceuticals, Inc.+............... 349 6,741
Athenex, Inc.+................................. 664 7,331
Axcella Health, Inc.+.......................... 16 85
Beyondspring, Inc.+............................ 117 1,384
BioSpecifics Technologies Corp.+............... 4,432 214,642
Bioxcel Therapeutics, Inc.+.................... 59 245
Catalyst Pharmaceuticals, Inc.+................ 47,008 222,348
cbdMD, Inc.+................................... 100 352
Checkpoint Therapeutics, Inc.+................. 238 464
Chiasma, Inc.+................................. 333 1,745
Chimerix, Inc.+................................ 466 666
Clovis Oncology, Inc.+......................... 489 1,550
Coherus Biosciences, Inc.+..................... 6,374 110,716
Collegium Pharmaceutical, Inc.+................ 313 3,756
Concert Pharmaceuticals, Inc.+................. 209 1,302
Corbus Pharmaceuticals Holdings, Inc.+......... 577 2,983
Corcept Therapeutics, Inc.+.................... 931 13,583
Corium International, Inc.+(1)................. 315 57
Cyclerion Therapeutics, Inc.+.................. 230 550
Cytokinetics, Inc.+............................ 541 6,303
Dova Pharmaceuticals, Inc.+.................... 81 2,309
Eagle Pharmaceuticals, Inc.+................... 89 5,580
Eloxx Pharmaceuticals, Inc.+................... 245 1,492
Enanta Pharmaceuticals, Inc.+.................. 167 10,167
Fulcrum Therapeutics, Inc.+.................... 44 276
Galectin Therapeutics, Inc.+................... 389 1,548
Global Blood Therapeutics, Inc.+............... 563 26,996
Gritstone Oncology, Inc.+...................... 242 1,963
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
-----------------------------------------------------------------
MEDICAL-DRUGS (CONTINUED)
Harpoon Therapeutics,, Inc.+................... 71 $ 944
Harrow Health, Inc.+........................... 33,523 167,615
Hookipa Pharma, Inc.+.......................... 21 172
Intellia Therapeutics, Inc.+................... 375 4,682
Intra-Cellular Therapies, Inc.+................ 433 4,005
Ironwood Pharmaceuticals, Inc.+................ 1,493 14,990
Jounce Therapeutics, Inc.+..................... 157 568
Kadmon Holdings, Inc.+......................... 1,265 3,656
Kala Pharmaceuticals, Inc.+.................... 212 770
KalVista Pharmaceuticals, Inc.+................ 114 1,208
Kura Oncology, Inc.+........................... 333 4,988
Lannett Co., Inc.+............................. 307 3,650
Madrigal Pharmaceuticals, Inc.+................ 76 7,025
Mallinckrodt PLC+.............................. 817 2,582
Marinus Pharmaceuticals, Inc.+................. 487 570
MediciNova, Inc.+.............................. 400 3,224
Millendo Therapeutics, Inc.+................... 91 656
Minerva Neurosciences, Inc.+................... 287 1,360
Mirum Pharmaceuticals, Inc.+................... 26 187
Morphic Holding, Inc.+......................... 48 672
MyoKardia, Inc.+............................... 432 24,766
Ocular Therapeutix, Inc.+...................... 403 1,306
Odonate Therapeutics, Inc.+.................... 114 3,621
Optinose, Inc.+................................ 242 1,892
Pacira BioSciences, Inc.+...................... 394 15,953
Paratek Pharmaceuticals, Inc.+................. 311 959
PhaseBio Pharmaceuticals, Inc.+................ 133 547
Prestige Consumer Healthcare, Inc.+............ 490 17,375
Principia Biopharma, Inc.+..................... 130 4,590
Progenics Pharmaceuticals, Inc.+............... 845 4,487
Protagonist Therapeutics, Inc.+................ 165 2,219
Ra Pharmaceuticals, Inc.+...................... 338 15,910
Reata Pharmaceuticals, Inc., Class A+.......... 195 40,186
Rhythm Pharmaceuticals, Inc.+.................. 223 4,754
Seres Therapeutics, Inc.+...................... 355 1,242
SIGA Technologies, Inc.+....................... 536 2,975
Spectrum Pharmaceuticals, Inc.+................ 1,084 8,412
Spero Therapeutics, Inc.+...................... 106 1,163
Supernus Pharmaceuticals, Inc.+................ 479 13,311
Sutro Biopharma, Inc.+......................... 105 1,053
Syros Pharmaceuticals, Inc.+................... 337 1,744
TG Therapeutics, Inc.+......................... 797 5,443
TherapeuticsMD, Inc.+.......................... 1,914 5,091
Tricida, Inc.+................................. 212 7,931
Turning Point Therapeutics, Inc.+.............. 64 2,455
UroGen Pharma, Ltd.+........................... 182 4,119
Vanda Pharmaceuticals, Inc.+................... 21,202 286,439
Verrica Pharmaceuticals, Inc.+................. 125 1,690
Voyager Therapeutics, Inc.+.................... 234 3,601
Xeris Pharmaceuticals, Inc.+................... 259 2,119
Zogenix, Inc.+................................. 414 18,485
Zynerba Pharmaceuticals, Inc.+................. 222 1,723
----------
1,415,894
----------
MEDICAL-GENERIC DRUGS -- 0.1%
Amneal Pharmaceuticals, Inc.+.................. 910 2,803
Arvinas, Inc.+................................. 178 3,677
Endo International PLC+........................ 2,185 10,029
Kodiak Sciences, Inc.+......................... 229 4,743
55
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
----------------------------------------------------------------
COMMON STOCKS (CONTINUED)
MEDICAL-GENERIC DRUGS (CONTINUED)
Momenta Pharmaceuticals, Inc.+.................. 958 $ 14,830
--------
36,082
--------
MEDICAL-HMO -- 0.1%
Magellan Health, Inc.+.......................... 213 13,823
Tivity Health, Inc.+............................ 461 7,473
Triple-S Management Corp., Class B+............. 222 3,359
--------
24,655
--------
MEDICAL-HOSPITALS -- 0.1%
Community Health Systems, Inc.+................. 837 2,963
Select Medical Holdings Corp.+.................. 1,069 19,477
Surgery Partners, Inc.+......................... 233 1,853
Tenet Healthcare Corp.+......................... 1,000 25,340
--------
49,633
--------
MEDICAL-NURSING HOMES -- 0.1%
Ensign Group, Inc............................... 492 20,787
Genesis Healthcare, Inc.+....................... 814 1,042
National HealthCare Corp........................ 119 9,779
--------
31,608
--------
MEDICAL-OUTPATIENT/HOME MEDICAL -- 1.7%
Addus HomeCare Corp.+........................... 4,065 342,314
Amedisys, Inc.+................................. 305 39,199
Joint Corp.+.................................... 17,578 335,212
LHC Group, Inc.+................................ 292 32,403
Pennant Group, Inc.+............................ 245 4,408
Providence Service Corp.+....................... 113 7,217
--------
760,753
--------
MEDICAL-WHOLESALE DRUG DISTRIBUTION -- 0.0%
Diplomat Pharmacy, Inc.+........................ 567 3,085
Evofem Biosciences, Inc.+....................... 137 697
Owens & Minor, Inc.............................. 599 4,031
--------
7,813
--------
METAL PROCESSORS & FABRICATION -- 0.3%
AZZ, Inc........................................ 252 9,775
CIRCOR International, Inc.+..................... 189 7,237
Helios Technologies, Inc........................ 285 11,294
Lawson Products, Inc.+.......................... 40 1,838
LB Foster Co., Class A+......................... 97 1,765
Mayville Engineering Co., Inc.+................. 62 530
Mueller Industries, Inc......................... 539 16,585
Park-Ohio Holdings Corp......................... 85 2,615
RBC Bearings, Inc.+............................. 236 37,864
Rexnord Corp.+.................................. 1,023 28,941
Tredegar Corp................................... 253 5,030
--------
123,474
--------
METAL PRODUCTS-DISTRIBUTION -- 0.0%
Olympic Steel, Inc.............................. 90 1,348
Ryerson Holding Corp.+.......................... 157 1,364
Worthington Industries, Inc..................... 376 13,841
--------
16,553
--------
METAL PRODUCTS-FASTENERS -- 0.0%
Eastern Co...................................... 52 1,435
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
----------------------------------------------------------------
METAL PRODUCTS-FASTENERS (CONTINUED)
TriMas Corp.+................................... 441 $ 14,253
--------
15,688
--------
METAL-ALUMINUM -- 0.0%
Century Aluminum Co.+........................... 488 2,845
Kaiser Aluminum Corp............................ 156 16,705
--------
19,550
--------
METAL-DIVERSIFIED -- 0.0%
Ferroglobe Representation & Warranty Trust+(1).. 777 0
--------
METAL-IRON -- 0.0%
Cleveland-Cliffs, Inc........................... 2,612 18,885
--------
MINING SERVICES -- 0.0%
Contura Energy, Inc.+........................... 185 4,244
--------
MISCELLANEOUS MANUFACTURING -- 0.1%
Hillenbrand, Inc................................ 602 18,536
John Bean Technologies Corp..................... 303 31,139
--------
49,675
--------
MOTION PICTURES & SERVICES -- 0.0%
Eros International PLC+......................... 709 1,588
IMAX Corp.+..................................... 509 10,867
--------
12,455
--------
MRI/MEDICAL DIAGNOSTIC IMAGING -- 1.0%
RadNet, Inc.+................................... 28,871 450,965
--------
MULTIMEDIA -- 0.1%
E.W. Scripps Co., Class A....................... 532 7,147
Entravision Communications Corp., Class A....... 590 1,676
Liberty Media Corp.-Liberty Braves, Series A+... 97 2,863
Liberty Media Corp.-Liberty Braves, Series C+... 350 10,294
Media General, Inc. CVR+(1)..................... 1,299 0
--------
21,980
--------
NETWORKING PRODUCTS -- 0.5%
A10 Networks, Inc.+............................. 550 4,086
Calix, Inc.+.................................... 454 3,473
Extreme Networks, Inc.+......................... 1,136 7,316
Infinera Corp.+................................. 1,705 9,531
Inseego Corp.+.................................. 438 2,510
Lantronix, Inc.+................................ 54,173 167,936
NeoPhotonics Corp.+............................. 376 2,474
NETGEAR, Inc.+.................................. 299 8,124
--------
205,450
--------
NIGHT CLUBS -- 0.0%
RCI Hospitality Holdings, Inc................... 88 1,650
--------
NON-FERROUS METALS -- 0.0%
Energy Fuels, Inc.+............................. 889 1,787
Uranium Energy Corp.+........................... 1,732 1,640
--------
3,427
--------
NON-HAZARDOUS WASTE DISPOSAL -- 0.1%
Advanced Disposal Services, Inc.+............... 707 23,175
Casella Waste Systems, Inc., Class A+........... 433 18,874
Charah Solutions, Inc.+......................... 91 174
Covanta Holding Corp............................ 1,147 16,563
--------
58,786
--------
56
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
COMMON STOCKS (CONTINUED)
OFFICE AUTOMATION & EQUIPMENT -- 0.0%
AstroNova, Inc................................. 66 $ 1,047
Pitney Bowes, Inc.............................. 1,665 7,326
-------
8,373
-------
OFFICE FURNISHINGS-ORIGINAL -- 0.2%
CompX International, Inc....................... 16 235
Herman Miller, Inc............................. 573 26,644
HNI Corp....................................... 416 15,808
Interface, Inc................................. 562 9,346
Kimball International, Inc., Class B........... 346 7,045
Knoll, Inc..................................... 477 12,755
Steelcase, Inc., Class A....................... 845 14,762
-------
86,595
-------
OFFICE SUPPLIES & FORMS -- 0.0%
ACCO Brands Corp............................... 937 8,574
-------
OIL & GAS DRILLING -- 0.0%
Diamond Offshore Drilling, Inc.+............... 631 3,338
Nabors Industries, Ltd......................... 3,426 6,338
Noble Corp. PLC+............................... 2,411 2,966
Pacific Drilling SA+........................... 290 725
Parker Drilling Co.+........................... 91 1,681
Seadrill, Ltd.+................................ 569 1,001
-------
16,049
-------
OIL COMPANIES-EXPLORATION & PRODUCTION -- 0.4%
Abraxas Petroleum Corp.+....................... 1,556 451
Amplify Energy Corp............................ 127 921
Berry Petroleum Corp........................... 609 5,719
Bonanza Creek Energy, Inc.+.................... 184 3,279
Brigham Minerals, Inc., Class A................ 157 2,997
California Resources Corp.+.................... 469 2,622
Callon Petroleum Co.+.......................... 2,223 8,447
Carrizo Oil & Gas, Inc.+....................... 863 6,352
Chaparral Energy, Inc., Class A+............... 301 282
CNX Resources Corp.+........................... 1,812 15,275
Comstock Resources, Inc.+...................... 147 1,005
Denbury Resources, Inc.+....................... 4,550 4,541
Earthstone Energy, Inc., Class A+.............. 189 733
Evolution Petroleum Corp....................... 264 1,484
Extraction Oil & Gas, Inc.+.................... 822 1,397
Falcon Minerals Corp........................... 375 2,310
Goodrich Petroleum Corp.+...................... 89 857
Gulfport Energy Corp.+......................... 1,557 4,336
HighPoint Resources Corp.+..................... 1,092 1,158
Jagged Peak Energy, Inc.+...................... 637 4,516
Laredo Petroleum, Inc.+........................ 1,754 4,139
Magnolia Oil & Gas Corp., Class A+............. 982 9,643
Mammoth Energy Services, Inc................... 126 202
Matador Resources Co.+......................... 1,079 15,009
Montage Resources Corp., Class A+.............. 208 940
Northern Oil and Gas, Inc.+.................... 2,831 5,549
Oasis Petroleum, Inc.+......................... 3,103 8,099
Panhandle Oil and Gas, Inc., Class A........... 149 2,114
PDC Energy, Inc.+.............................. 610 12,170
Penn Virginia Corp.+........................... 132 3,142
PrimeEnergy Resources Corp.+................... 5 792
QEP Resources, Inc............................. 2,325 7,742
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
OIL COMPANIES-EXPLORATION & PRODUCTION (CONTINUED)
Ring Energy, Inc.+............................. 585 $ 971
Roan Resources, Inc.+.......................... 346 519
Rosehill Resources, Inc.+...................... 103 159
SandRidge Energy, Inc.+........................ 300 1,314
SilverBow Resources, Inc.+..................... 69 545
SM Energy Co................................... 1,089 8,538
Southwestern Energy Co.+....................... 5,283 10,830
SRC Energy, Inc.+.............................. 2,352 7,338
Talos Energy, Inc.+............................ 196 4,220
Tellurian, Inc.+............................... 917 7,309
Unit Corp.+.................................... 516 1,053
W&T Offshore, Inc.+............................ 915 3,687
Whiting Petroleum Corp.+....................... 884 5,605
--------
190,311
--------
OIL FIELD MACHINERY & EQUIPMENT -- 0.1%
Dril-Quip, Inc.+............................... 352 14,439
Exterran Corp.+................................ 297 3,763
Flotek Industries, Inc.+....................... 523 999
Forum Energy Technologies, Inc.+............... 805 934
Natural Gas Services Group, Inc.+.............. 122 1,451
Smart Sand, Inc.+.............................. 210 489
Thermon Group Holdings, Inc.+.................. 315 7,506
US Silica Holdings, Inc........................ 712 3,176
--------
32,757
--------
OIL REFINING & MARKETING -- 0.3%
CVR Energy, Inc................................ 287 13,610
Delek US Holdings, Inc......................... 730 29,163
Murphy USA, Inc.+.............................. 296 34,907
Par Pacific Holdings, Inc.+.................... 344 7,792
Trecora Resources+............................. 222 1,947
Vertex Energy, Inc.+........................... 60,878 61,487
--------
148,906
--------
OIL-FIELD SERVICES -- 0.8%
Archrock, Inc.................................. 1,253 12,079
DMC Global, Inc................................ 137 6,129
Era Group, Inc.+............................... 189 1,828
Frank's International NV+...................... 1,036 5,076
FTS International, Inc.+....................... 323 491
Helix Energy Solutions Group, Inc.+............ 1,379 11,846
Independence Contract Drilling, Inc.+.......... 467 416
KLX Energy Services Holdings, Inc.+............ 203 1,612
Liberty Oilfield Services, Inc., Class A....... 517 4,761
Matrix Service Co.+............................ 259 4,859
McDermott International, Inc.+................. 1,763 2,874
MRC Global, Inc.+.............................. 773 8,781
National Energy Services Reunited Corp.+....... 231 1,596
NCS Multistage Holdings, Inc.+................. 112 252
Newpark Resources, Inc.+....................... 864 5,184
NexTier Oilfield Solutions, Inc.+.............. 1,548 6,687
Nine Energy Service, Inc.+..................... 154 870
NOW, Inc.+..................................... 1,053 11,099
Oceaneering International, Inc.+............... 963 13,636
Oil States International, Inc.+................ 582 8,305
Profire Energy, Inc.+.......................... 81,968 144,264
ProPetro Holding Corp.+........................ 777 6,022
RPC, Inc....................................... 565 2,339
57
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
----------------------------------------------------------------
COMMON STOCKS (CONTINUED)
OIL-FIELD SERVICES (CONTINUED)
Select Energy Services, Inc., Class A+.......... 576 $ 4,377
Solaris Oilfield Infrastructure, Inc., Class A.. 7,053 75,044
TETRA Technologies, Inc.+....................... 1,178 2,003
US Well Services, Inc.+......................... 195 372
--------
342,802
--------
OPTICAL SUPPLIES -- 0.8%
STAAR Surgical Co.+............................. 11,123 364,612
--------
PAPER & RELATED PRODUCTS -- 0.1%
Clearwater Paper Corp.+......................... 155 2,874
Neenah, Inc..................................... 162 10,449
P.H. Glatfelter Co.............................. 423 7,614
Schweitzer-Mauduit International, Inc........... 301 12,187
Verso Corp., Class A+........................... 339 4,963
--------
38,087
--------
PASTORAL & AGRICULTURAL -- 0.1%
Darling Ingredients, Inc.+...................... 1,596 30,803
--------
PATIENT MONITORING EQUIPMENT -- 0.0%
CareDx, Inc.+................................... 399 10,458
--------
PHARMACY SERVICES -- 0.0%
Option Care Health, Inc.+....................... 1,197 4,237
--------
PHYSICAL THERAPY/REHABILITATION CENTERS -- 0.1%
Catasys, Inc.+.................................. 70 1,093
U.S. Physical Therapy, Inc...................... 353 49,939
--------
51,032
--------
PHYSICIANS PRACTICE MANAGEMENT -- 0.0%
Apollo Medical Holdings, Inc.+.................. 61 913
--------
PIPELINES -- 0.0%
NextDecade Corp.+............................... 111 657
SemGroup Corp., Class A......................... 772 12,429
--------
13,086
--------
POLLUTION CONTROL -- 0.4%
CECO Environmental Corp.+....................... 27,942 191,682
--------
POULTRY -- 0.1%
Sanderson Farms, Inc............................ 193 29,878
--------
POWER CONVERTER/SUPPLY EQUIPMENT -- 0.2%
Energous Corp.+................................. 273 748
Generac Holdings, Inc.+......................... 595 57,465
Powell Industries, Inc.......................... 87 3,407
Vicor Corp.+.................................... 173 6,289
--------
67,909
--------
PRECIOUS METALS -- 0.1%
Coeur Mining, Inc.+............................. 2,138 11,802
Hecla Mining Co................................. 4,682 10,768
--------
22,570
--------
PRINTING-COMMERCIAL -- 0.1%
Cimpress NV+.................................... 211 27,877
Ennis, Inc...................................... 247 4,839
LSC Communications, Inc......................... 318 310
Quad/Graphics, Inc.............................. 313 1,418
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
----------------------------------------------------------------
PRINTING-COMMERCIAL (CONTINUED)
RR Donnelley & Sons Co.......................... 686 $ 2,991
-------
37,435
-------
PRIVATE EQUITY -- 0.1%
Kennedy-Wilson Holdings, Inc.................... 1,193 27,451
-------
PROTECTION/SAFETY -- 0.0%
ShotSpotter, Inc.+.............................. 79 1,596
-------
PUBLISHING-BOOKS -- 0.0%
Houghton Mifflin Harcourt Co.+.................. 1,015 6,557
Scholastic Corp................................. 287 11,050
Tribune Publishing Co........................... 170 1,523
-------
19,130
-------
PUBLISHING-NEWSPAPERS -- 0.1%
Gannett Co., Inc................................ 1,029 11,165
Lee Enterprises, Inc.+.......................... 520 941
TEGNA, Inc...................................... 2,113 31,758
-------
43,864
-------
PUBLISHING-PERIODICALS -- 0.0%
Meredith Corp................................... 386 14,552
Value Line, Inc................................. 11 223
-------
14,775
-------
QUARRYING -- 0.0%
Compass Minerals International, Inc............. 331 18,695
-------
RACETRACKS -- 0.2%
Churchill Downs, Inc............................ 342 44,457
Empire Resorts, Inc.+........................... 37 359
Penn National Gaming, Inc.+..................... 1,068 22,764
-------
67,580
-------
RADIO -- 0.0%
Cumulus Media, Inc., Class A+................... 140 1,917
Entercom Communications Corp., Class A.......... 1,201 4,179
Saga Communications, Inc., Class A.............. 37 1,116
-------
7,212
-------
REAL ESTATE INVESTMENT TRUSTS -- 5.4%
Acadia Realty Trust............................. 807 22,580
AG Mortgage Investment Trust, Inc............... 316 4,942
Agree Realty Corp............................... 399 31,429
Alexander & Baldwin, Inc........................ 666 15,658
Alexander's, Inc................................ 21 7,253
American Assets Trust, Inc...................... 469 22,962
American Finance Trust, Inc..................... 1,039 15,377
Anworth Mtg. Asset Corp......................... 949 3,246
Apollo Commercial Real Estate Finance, Inc...... 1,500 27,450
Ares Commercial Real Estate Corp................ 262 4,061
Arlington Asset Investment Corp., Class A....... 351 2,029
Armada Hoffler Properties, Inc.................. 511 9,576
ARMOUR Residential REIT, Inc.................... 573 9,586
Ashford Hospitality Trust, Inc.................. 875 2,389
Blackstone Mtg. Trust, Inc., Class A............ 1,226 44,504
Bluerock Residential Growth REIT, Inc........... 219 2,632
Braemar Hotels & Resorts, Inc................... 292 2,695
BRT Apartments Corp............................. 94 1,570
Capstead Mtg. Corp.............................. 909 7,027
CareTrust REIT, Inc............................. 928 22,495
58
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
----------------------------------------------------------------
COMMON STOCKS (CONTINUED)
REAL ESTATE INVESTMENT TRUSTS (CONTINUED)
CatchMark Timber Trust, Inc., Class A........... 476 $ 5,460
CBL & Associates Properties, Inc................ 1,647 2,372
Cedar Realty Trust, Inc......................... 833 2,782
Chatham Lodging Trust........................... 446 8,050
Cherry Hill Mtg. Investment Corp................ 152 2,055
CIM Commercial Trust Corp....................... 14 204
City Office REIT, Inc........................... 377 5,105
Clipper Realty, Inc............................. 140 1,350
Colony Credit Real Estate, Inc.................. 786 11,263
Community Healthcare Trust, Inc................. 179 8,667
CoreCivic, Inc.................................. 1,158 17,671
CorEnergy Infrastructure Trust, Inc............. 125 6,021
CorePoint Lodging, Inc.......................... 388 3,822
DiamondRock Hospitality Co...................... 1,957 19,531
Dynex Capital, Inc.............................. 233 3,765
Easterly Government Properties, Inc............. 765 17,075
EastGroup Properties, Inc....................... 360 48,222
Essential Properties Realty Trust, Inc.......... 739 18,963
Exantas Capital Corp............................ 297 3,493
Farmland Partners, Inc.......................... 266 1,782
First Industrial Realty Trust, Inc.............. 1,225 51,585
Four Corners Property Trust, Inc................ 665 19,052
Franklin Street Properties Corp................. 1,009 8,677
Front Yard Residential Corp..................... 482 5,962
GEO Group, Inc.................................. 1,156 17,594
Getty Realty Corp............................... 324 10,867
Gladstone Commercial Corp....................... 298 7,021
Gladstone Land Corp............................. 178 2,129
Global Medical REIT, Inc........................ 306 3,703
Global Net Lease, Inc........................... 820 15,974
Granite Point Mtg. Trust, Inc................... 527 9,802
Great Ajax Corp................................. 161 2,520
Healthcare Realty Trust, Inc.................... 1,243 43,219
Hersha Hospitality Trust........................ 339 4,678
Independence Realty Trust, Inc.................. 875 13,475
Industrial Logistics Properties Trust........... 630 13,381
Innovative Industrial Properties, Inc........... 105 7,980
Invesco Mtg. Capital, Inc....................... 1,396 21,973
Investors Real Estate Trust..................... 113 8,551
iStar, Inc...................................... 578 7,520
Jernigan Capital, Inc........................... 207 3,931
Kite Realty Group Trust......................... 805 14,345
KKR Real Estate Finance Trust, Inc.............. 245 4,912
Ladder Capital Corp............................. 1,001 17,287
Lexington Realty Trust.......................... 2,227 24,230
LTC Properties, Inc............................. 383 19,858
Mack-Cali Realty Corp........................... 842 18,036
Monmouth Real Estate Investment Corp............ 898 13,542
National Health Investors, Inc.................. 407 34,916
National Storage Affiliates Trust............... 577 19,716
New Senior Investment Group, Inc................ 814 5,731
New York Mtg. Trust, Inc........................ 2,277 14,254
NexPoint Residential Trust, Inc................. 7,196 350,949
Office Properties Income Trust.................. 464 14,792
One Liberty Properties, Inc..................... 151 4,290
Orchid Island Capital, Inc...................... 615 3,426
Pebblebrook Hotel Trust......................... 1,264 32,497
Pennsylvania Real Estate Investment Trust....... 675 3,726
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS (CONTINUED)
PennyMac Mtg. Investment Trust.................. 842 $ 19,273
Physicians Realty Trust......................... 1,805 33,699
Piedmont Office Realty Trust, Inc., Class A..... 1,217 27,309
PotlatchDeltic Corp............................. 643 27,308
Preferred Apartment Communities, Inc., Class A.. 431 6,172
PS Business Parks, Inc.......................... 194 35,027
QTS Realty Trust, Inc., Class A................. 532 28,510
Ready Capital Corp.............................. 303 4,796
Redwood Trust, Inc.............................. 934 15,262
Retail Opportunity Investments Corp............. 1,095 20,438
Retail Value, Inc............................... 145 5,308
Rexford Industrial Realty, Inc.................. 1,065 51,216
RLJ Lodging Trust............................... 1,674 27,470
RPT Realty...................................... 759 11,005
Ryman Hospitality Properties, Inc............... 446 37,540
Sabra Health Care REIT, Inc..................... 1,836 45,166
Saul Centers, Inc............................... 116 6,211
Senior Housing Properties Trust................. 2,301 22,837
Seritage Growth Properties, Class A............. 328 14,265
STAG Industrial, Inc............................ 1,244 38,614
Summit Hotel Properties, Inc.................... 1,006 12,334
Sunstone Hotel Investors, Inc................... 2,182 29,479
Tanger Factory Outlet Centers, Inc.............. 888 14,315
Terreno Realty Corp............................. 627 35,369
TPG RE Finance Trust, Inc....................... 482 9,751
UMH Properties, Inc............................. 30,081 449,109
Uniti Group, Inc................................ 1,799 12,449
Universal Health Realty Income Trust............ 125 14,904
Urban Edge Properties........................... 1,119 23,622
Urstadt Biddle Properties, Inc., Class A........ 287 6,983
Washington Prime Group, Inc..................... 1,815 7,659
Washington Real Estate Investment Trust......... 779 24,165
Western Asset Mtg. Capital Corp................. 505 5,070
Whitestone REIT................................. 372 5,297
Xenia Hotels & Resorts, Inc..................... 1,101 23,176
----------
2,474,323
----------
REAL ESTATE MANAGEMENT/SERVICES -- 0.2%
Cushman & Wakefield PLC+........................ 996 18,575
eXp World Holdings, Inc.+....................... 159 1,426
Marcus & Millichap, Inc.+....................... 223 7,966
Maui Land & Pineapple Co., Inc.+................ 65 669
Newmark Group, Inc., Class A.................... 1,395 14,815
RE/MAX Holdings, Inc., Class A.................. 174 5,820
Realogy Holdings Corp........................... 1,106 8,715
Redfin Corp.+................................... 858 14,921
RMR Group, Inc., Class A........................ 147 7,115
Safehold, Inc................................... 104 3,596
----------
83,618
----------
REAL ESTATE OPERATIONS & DEVELOPMENT -- 0.1%
American Realty Investors, Inc.+................ 24 383
Consolidated-Tomoka Land Co..................... 48 3,070
FRP Holdings, Inc.+............................. 68 3,521
Griffin Industrial Realty, Inc.................. 10 394
Legacy Housing Corp.+........................... 56 888
McGrath RentCorp................................ 235 17,933
Stratus Properties, Inc.+....................... 57 1,572
Transcontinental Realty Investors, Inc.+........ 11 347
----------
28,108
----------
59
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
COMMON STOCKS (CONTINUED)
RECREATIONAL CENTERS -- 0.0%
OneSpaWorld Holdings, Ltd.+.................... 441 $ 6,858
--------
RECREATIONAL VEHICLES -- 1.2%
Camping World Holdings, Inc., Class A.......... 320 3,024
Malibu Boats, Inc., Class A+................... 8,364 272,833
Marine Products Corp........................... 72 966
MasterCraft Boat Holdings, Inc.+............... 15,889 250,252
--------
527,075
--------
RENTAL AUTO/EQUIPMENT -- 0.2%
Aaron's, Inc................................... 657 49,229
Avis Budget Group, Inc.+....................... 575 17,083
CAI International, Inc.+....................... 160 3,803
Herc Holdings, Inc.+........................... 234 10,357
Hertz Global Holdings, Inc.+................... 987 13,334
Rent-A-Center, Inc............................. 473 12,237
Textainer Group Holdings, Ltd.+................ 273 2,826
--------
108,869
--------
RESORTS/THEME PARKS -- 0.1%
Marriott Vacations Worldwide Corp.............. 416 45,731
SeaWorld Entertainment, Inc.+.................. 458 12,100
--------
57,831
--------
RETAIL-APPAREL/SHOE -- 0.3%
Abercrombie & Fitch Co., Class A............... 637 10,313
American Eagle Outfitters, Inc................. 1,573 24,193
Ascena Retail Group, Inc.+..................... 1,521 536
Boot Barn Holdings, Inc.+...................... 272 9,534
Buckle, Inc.................................... 281 5,878
Caleres, Inc................................... 398 8,565
Cato Corp., Class A............................ 216 3,778
Chico's FAS, Inc............................... 1,134 3,901
Children's Place, Inc.......................... 149 12,205
Designer Brands, Inc., Class A................. 632 10,428
Duluth Holdings, Inc., Class B+................ 105 970
Express, Inc.+................................. 639 2,057
Genesco, Inc.+................................. 155 6,022
Guess?, Inc.................................... 488 8,174
J. Jill, Inc................................... 163 282
RTW RetailWinds, Inc.+......................... 295 437
Shoe Carnival, Inc............................. 91 3,020
Tailored Brands, Inc........................... 485 2,250
Tilly's, Inc., Class A......................... 211 2,165
Vera Bradley, Inc.+............................ 199 2,141
Winmark Corp................................... 23 4,140
--------
120,989
--------
RETAIL-APPLIANCES -- 0.0%
Conn's, Inc.+.................................. 193 4,669
--------
RETAIL-ARTS & CRAFTS -- 0.0%
Michaels Cos., Inc.+........................... 831 7,255
--------
RETAIL-AUTOMOBILE -- 0.2%
America's Car-Mart, Inc.+...................... 61 5,550
Asbury Automotive Group, Inc.+................. 188 19,388
Group 1 Automotive, Inc........................ 172 17,104
Lithia Motors, Inc., Class A................... 215 33,858
Rush Enterprises, Inc., Class A................ 268 11,709
Rush Enterprises, Inc., Class B................ 44 1,889
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
RETAIL-AUTOMOBILE (CONTINUED)
Sonic Automotive, Inc., Class A................ 237 $ 7,639
--------
97,137
--------
RETAIL-BEDDING -- 0.0%
Bed Bath & Beyond, Inc......................... 1,184 16,221
--------
RETAIL-BOOKSTORES -- 0.0%
Barnes & Noble Education, Inc.+................ 399 1,640
--------
RETAIL-BUILDING PRODUCTS -- 0.8%
At Home Group, Inc.+........................... 463 3,945
Beacon Roofing Supply, Inc.+................... 660 20,486
BMC Stock Holdings, Inc.+...................... 648 17,489
Foundation Building Materials, Inc.+........... 15,634 290,636
GMS, Inc.+..................................... 312 9,348
Tile Shop Holdings, Inc........................ 365 613
--------
342,517
--------
RETAIL-COMPUTER EQUIPMENT -- 0.7%
PC Connection, Inc............................. 6,474 316,190
--------
RETAIL-DISCOUNT -- 0.1%
Big Lots, Inc.................................. 378 8,191
BJ's Wholesale Club Holdings, Inc.+............ 1,085 28,969
Citi Trends, Inc............................... 110 1,964
--------
39,124
--------
RETAIL-DRUG STORE -- 0.0%
Rite Aid Corp.+................................ 526 4,839
--------
RETAIL-FLOOR COVERINGS -- 0.0%
Lumber Liquidators Holdings, Inc.+............. 277 2,557
--------
RETAIL-HAIR SALONS -- 0.0%
Regis Corp.+................................... 277 5,706
--------
RETAIL-HOME FURNISHINGS -- 0.1%
Bassett Furniture Industries, Inc.............. 95 1,449
Haverty Furniture Cos., Inc.................... 174 3,156
La-Z-Boy, Inc.................................. 436 15,482
Lovesac Co.+................................... 85 1,388
RH+............................................ 161 29,254
--------
50,729
--------
RETAIL-JEWELRY -- 0.0%
Movado Group, Inc.............................. 153 3,986
Signet Jewelers, Ltd........................... 504 8,084
--------
12,070
--------
RETAIL-LEISURE PRODUCTS -- 0.0%
MarineMax, Inc.+............................... 204 3,152
Party City Holdco, Inc.+....................... 525 2,950
--------
6,102
--------
RETAIL-MAJOR DEPARTMENT STORES -- 0.0%
J.C. Penney Co., Inc.+......................... 3,091 3,091
--------
RETAIL-MISC./DIVERSIFIED -- 0.1%
Container Store Group, Inc.+................... 155 654
Gaia, Inc.+.................................... 102 707
GameStop Corp., Class A........................ 874 4,755
Hudson, Ltd., Class A+......................... 385 4,782
PriceSmart, Inc................................ 218 16,154
60
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
COMMON STOCKS (CONTINUED)
RETAIL-MISC./DIVERSIFIED (CONTINUED)
Sally Beauty Holdings, Inc.+................... 1,173 $ 18,181
--------
45,233
--------
RETAIL-OFFICE SUPPLIES -- 0.0%
Office Depot, Inc.............................. 5,282 10,881
--------
RETAIL-PAWN SHOPS -- 0.1%
EZCORP, Inc., Class A+......................... 494 2,598
FirstCash, Inc................................. 412 34,769
--------
37,367
--------
RETAIL-PET FOOD & SUPPLIES -- 0.1%
Freshpet, Inc.+................................ 334 17,455
PetIQ, Inc.+................................... 189 4,672
PetMed Express, Inc............................ 190 4,449
--------
26,576
--------
RETAIL-PETROLEUM PRODUCTS -- 0.1%
World Fuel Services Corp....................... 627 26,190
--------
RETAIL-REGIONAL DEPARTMENT STORES -- 0.0%
Dillard's, Inc., Class A....................... 101 6,967
--------
RETAIL-RESTAURANTS -- 1.1%
Biglari Holdings, Inc., Class B+............... 10 835
BJ's Restaurants, Inc.......................... 199 7,878
Bloomin' Brands, Inc........................... 846 16,759
Brinker International, Inc..................... 363 16,135
Cannae Holdings, Inc.+......................... 657 19,184
Carrols Restaurant Group, Inc.+................ 339 2,417
Cheesecake Factory, Inc........................ 404 16,883
Chuy's Holdings, Inc.+......................... 161 3,924
Cracker Barrel Old Country Store, Inc.......... 187 29,079
Dave & Buster's Entertainment, Inc............. 354 14,082
Del Taco Restaurants, Inc.+.................... 280 2,138
Denny's Corp.+................................. 563 11,328
Dine Brands Global, Inc........................ 159 11,631
El Pollo Loco Holdings, Inc.+.................. 201 2,336
Fiesta Restaurant Group, Inc.+................. 228 1,960
Habit Restaurants, Inc., Class A+.............. 200 2,102
J Alexander's Holdings, Inc.+.................. 125 1,206
Jack in the Box, Inc........................... 251 21,089
Kura Sushi USA, Inc., Class A+................. 33 609
Noodles & Co.+................................. 277 1,476
Papa John's International, Inc................. 215 12,588
Potbelly Corp.+................................ 204 867
Red Robin Gourmet Burgers, Inc.+............... 126 3,843
Ruth's Hospitality Group, Inc.................. 11,325 233,068
Shake Shack, Inc., Class A+.................... 282 23,203
Texas Roadhouse, Inc........................... 642 36,273
Waitr Holdings, Inc.+.......................... 561 244
Wingstop, Inc.................................. 286 23,861
--------
516,998
--------
RETAIL-SPORTING GOODS -- 0.0%
Hibbett Sports, Inc.+.......................... 173 4,128
Sportsman's Warehouse Holdings, Inc.+.......... 413 2,812
Zumiez, Inc.+.................................. 194 6,191
--------
13,131
--------
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
RETAIL-VISION SERVICE CENTER -- 0.0%
National Vision Holdings, Inc.+................ 762 $ 18,136
--------
RETAIL-VITAMINS & NUTRITION SUPPLEMENTS -- 0.0%
GNC Holdings, Inc., Class A+................... 794 2,096
--------
RETIREMENT/AGED CARE -- 0.0%
Brookdale Senior Living, Inc.+................. 1,794 13,186
--------
RUBBER-TIRES -- 0.0%
Cooper Tire & Rubber Co........................ 489 13,809
--------
RUBBER/PLASTIC PRODUCTS -- 0.1%
Myers Industries, Inc.......................... 344 5,824
Proto Labs, Inc.+.............................. 262 25,406
Raven Industries, Inc.......................... 348 12,138
Trinseo SA..................................... 392 16,660
--------
60,028
--------
SATELLITE TELECOM -- 0.1%
Gogo, Inc.+.................................... 534 3,284
Intelsat SA+................................... 651 16,529
Iridium Communications, Inc.+.................. 962 23,540
KVH Industries, Inc.+.......................... 158 1,615
Loral Space & Communications, Inc.+............ 125 4,999
--------
49,967
--------
SAVINGS & LOANS/THRIFTS -- 1.1%
Axos Financial, Inc.+.......................... 562 16,326
Banc of California, Inc........................ 441 6,073
BankFinancial Corp............................. 135 1,739
Berkshire Hills Bancorp, Inc................... 450 13,963
Brookline Bancorp, Inc......................... 763 11,979
Capitol Federal Financial, Inc................. 1,283 18,308
Community Bankers Trust Corp................... 210 1,819
Dime Community Bancshares, Inc................. 308 5,941
Entegra Financial Corp.+....................... 65 1,957
ESSA Bancorp, Inc.............................. 91 1,488
First Capital, Inc............................. 32 1,878
First Defiance Financial Corp.................. 189 5,844
First Financial Northwest, Inc................. 77 1,090
Flushing Financial Corp........................ 262 5,670
FS Bancorp, Inc................................ 3,898 223,160
Greene County Bancorp, Inc..................... 32 890
Hingham Institution for Savings................ 14 2,660
Home Bancorp, Inc.............................. 76 2,900
HomeTrust Bancshares, Inc...................... 154 4,112
Investors Bancorp, Inc......................... 2,241 27,004
Malvern Bancorp, Inc.+......................... 74 1,656
Meridian Bancorp, Inc.......................... 466 9,115
MutualFirst Financial, Inc..................... 57 2,274
Northfield Bancorp, Inc........................ 425 7,229
Northwest Bancshares, Inc...................... 975 16,448
OceanFirst Financial Corp...................... 491 11,750
Oritani Financial Corp......................... 383 7,147
Pacific Premier Bancorp, Inc................... 575 19,409
Provident Financial Holdings, Inc.............. 57 1,143
Provident Financial Services, Inc.............. 600 14,970
Prudential Bancorp, Inc........................ 85 1,483
Riverview Bancorp, Inc......................... 206 1,481
Southern Missouri Bancorp, Inc................. 77 2,804
Territorial Bancorp, Inc....................... 76 2,247
61
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
COMMON STOCKS (CONTINUED)
SAVINGS & LOANS/THRIFTS (CONTINUED)
Timberland Bancorp, Inc........................ 72 $ 1,908
United Community Financial Corp................ 457 5,205
Washington Federal, Inc........................ 769 28,038
Waterstone Financial, Inc...................... 232 4,322
WSFS Financial Corp............................ 511 21,549
--------
514,979
--------
SCHOOLS -- 0.8%
Adtalem Global Education, Inc.+................ 549 16,349
American Public Education, Inc.+............... 153 3,323
Career Education Corp.+........................ 17,290 244,826
Chegg, Inc.+................................... 1,127 34,554
K12, Inc.+..................................... 374 7,402
Laureate Education, Inc., Class A+............. 1,018 15,733
Rosetta Stone, Inc.+........................... 200 3,832
Strategic Education, Inc....................... 207 25,467
--------
351,486
--------
SECURITY SERVICES -- 0.1%
Brink's Co..................................... 485 41,206
--------
SEISMIC DATA COLLECTION -- 0.0%
Geospace Technologies Corp.+................... 129 1,882
--------
SEMICONDUCTOR COMPONENTS-INTEGRATED CIRCUITS -- 0.2%
Cirrus Logic, Inc.+............................ 567 38,533
MaxLinear, Inc.+............................... 634 12,021
Power Integrations, Inc........................ 275 25,055
--------
75,609
--------
SEMICONDUCTOR EQUIPMENT -- 1.0%
Axcelis Technologies, Inc.+.................... 314 6,019
Brooks Automation, Inc......................... 690 29,304
Cabot Microelectronics Corp.................... 282 42,616
Cohu, Inc...................................... 391 6,499
FormFactor, Inc.+.............................. 722 15,761
Onto Innovation, Inc.+......................... 10,635 342,432
Ultra Clean Holdings, Inc.+.................... 380 8,121
Veeco Instruments, Inc.+....................... 468 6,384
--------
457,136
--------
SILVER MINING -- 0.0%
Pan American Silver Corp. CVR+(1)(2)........... 3,628 762
--------
SOFTWARE TOOLS -- 0.0%
Digital Turbine, Inc.+......................... 763 5,333
--------
STEEL PIPE & TUBE -- 0.1%
Advanced Drainage Systems, Inc................. 354 13,105
Northwest Pipe Co.+............................ 93 2,837
Omega Flex, Inc................................ 28 2,600
Synalloy Corp.................................. 81 1,268
TimkenSteel Corp.+............................. 391 2,197
--------
22,007
--------
STEEL-PRODUCERS -- 0.1%
AK Steel Holding Corp.+........................ 3,060 7,222
Carpenter Technology Corp...................... 457 22,402
Commercial Metals Co........................... 1,146 22,152
Schnitzer Steel Industries, Inc., Class A...... 249 5,314
--------
57,090
--------
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
STEEL-SPECIALTY -- 0.1%
Allegheny Technologies, Inc.+.................. 1,223 $ 25,695
--------
STORAGE/WAREHOUSING -- 0.0%
Mobile Mini, Inc............................... 435 16,365
--------
SUPERCONDUCTOR PRODUCT & SYSTEMS -- 0.0%
American Superconductor Corp.+................. 204 1,597
--------
SUPRANATIONAL BANKS -- 0.0%
Banco Latinoamericano de Comercio Exterior SA,
Class E...................................... 300 6,189
--------
TELECOM EQUIPMENT-FIBER OPTICS -- 0.4%
Acacia Communications, Inc.+................... 369 24,228
Clearfield, Inc.+.............................. 9,710 119,724
Harmonic, Inc.+................................ 837 6,512
Viavi Solutions, Inc.+......................... 2,234 35,655
--------
186,119
--------
TELECOM SERVICES -- 0.1%
Consolidated Communications Holdings, Inc...... 685 2,740
GTT Communications, Inc.+...................... 323 2,432
Ooma, Inc.+.................................... 189 2,145
ORBCOMM, Inc.+................................. 723 2,899
RigNet, Inc.+.................................. 141 739
Spok Holdings, Inc............................. 175 2,083
Vonage Holdings Corp.+......................... 2,201 21,504
--------
34,542
--------
TELECOMMUNICATION EQUIPMENT -- 0.6%
ADTRAN, Inc.................................... 463 4,079
Airgain, Inc.+................................. 21,678 246,479
Casa Systems, Inc.+............................ 308 2,070
DASAN Zhone Solutions, Inc.+................... 77 580
Digi International, Inc.+...................... 270 3,893
Plantronics, Inc............................... 325 12,812
Preformed Line Products Co..................... 30 1,638
--------
271,551
--------
TELEPHONE-INTEGRATED -- 0.0%
Cincinnati Bell, Inc.+......................... 482 2,463
Frontier Communications Corp.+................. 1,019 927
IDT Corp., Class B+............................ 161 1,096
Shenandoah Telecommunications Co............... 466 14,987
--------
19,473
--------
TELEVISION -- 0.0%
Central European Media Enterprises, Ltd.,
Class A+..................................... 861 3,861
Gray Television, Inc.+......................... 885 14,523
--------
18,384
--------
TEXTILE-APPAREL -- 0.0%
Unifi, Inc.+................................... 140 3,822
--------
TEXTILE-PRODUCTS -- 0.0%
Culp, Inc...................................... 107 1,655
--------
THEATERS -- 0.0%
AMC Entertainment Holdings, Inc., Class A...... 501 4,694
Reading International, Inc., Class A+.......... 162 1,842
--------
6,536
--------
62
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
COMMON STOCKS (CONTINUED)
THERAPEUTICS -- 0.7%
Akebia Therapeutics, Inc.+..................... 1,147 $ 4,278
Anika Therapeutics, Inc.+...................... 130 9,151
Axsome Therapeutics, Inc.+..................... 245 5,900
CorMedix, Inc.+................................ 229 1,278
Flexion Therapeutics, Inc.+.................... 329 5,649
G1 Therapeutics, Inc.+......................... 329 6,981
La Jolla Pharmaceutical Co.+................... 202 1,417
MannKind Corp.+................................ 1,822 2,378
Portola Pharmaceuticals, Inc.+................. 726 20,989
Recro Pharma, Inc.+............................ 15,596 245,949
Xencor, Inc.+.................................. 460 15,736
--------
319,706
--------
TOBACCO -- 0.1%
22nd Century Group, Inc.+...................... 1,125 2,126
Greenlane Holdings, Inc., Class A+............. 61 240
Pyxus International, Inc.+..................... 82 936
Turning Point Brands, Inc...................... 80 1,670
Universal Corp................................. 239 13,097
Vector Group, Ltd.............................. 1,078 13,152
--------
31,221
--------
TOOLS-HAND HELD -- 0.1%
MSA Safety, Inc................................ 343 41,184
--------
TOYS -- 0.0%
Funko, Inc., Class A+.......................... 174 3,132
--------
TRAFFIC MANAGEMENT SYS -- 0.0%
Arlo Technologies, Inc.+....................... 719 2,452
--------
TRANSACTIONAL SOFTWARE -- 0.0%
InnerWorkings, Inc.+........................... 429 2,081
Synchronoss Technologies, Inc.+................ 371 2,226
--------
4,307
--------
TRANSPORT-AIR FREIGHT -- 0.0%
Air Transport Services Group, Inc.+............ 568 11,877
Atlas Air Worldwide Holdings, Inc.+............ 226 4,956
--------
16,833
--------
TRANSPORT-EQUIPMENT & LEASING -- 0.1%
GATX Corp...................................... 346 27,524
General Finance Corp.+......................... 113 1,105
Greenbrier Cos., Inc........................... 312 9,139
Willis Lease Finance Corp.+.................... 28 1,526
--------
39,294
--------
TRANSPORT-MARINE -- 1.4%
Ardmore Shipping Corp.+........................ 325 2,597
Costamare, Inc................................. 477 3,749
DHT Holdings, Inc.............................. 861 6,656
Diamond S Shipping, Inc.+...................... 217 3,168
Dorian LPG, Ltd.+.............................. 24,857 309,470
Eagle Bulk Shipping, Inc.+..................... 430 1,866
GasLog, Ltd.................................... 393 5,388
Genco Shipping & Trading, Ltd.+................ 147 1,452
Golar LNG, Ltd................................. 921 12,682
International Seaways, Inc.+................... 245 6,159
Nordic American Tankers, Ltd................... 1,354 4,847
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
TRANSPORT-MARINE (CONTINUED)
Overseas Shipholding Group, Inc., Class A+..... 629 $ 1,025
Safe Bulkers, Inc.+............................ 495 807
Scorpio Bulkers, Inc........................... 37,473 243,575
Scorpio Tankers, Inc........................... 421 13,392
SEACOR Holdings, Inc.+......................... 169 7,252
Ship Finance International, Ltd................ 790 11,431
Teekay Corp.................................... 667 3,409
Teekay Tankers, Ltd., Class A+................. 1,851 3,776
Tidewater, Inc.+............................... 374 6,070
--------
648,771
--------
TRANSPORT-SERVICES -- 0.1%
CryoPort, Inc.+................................ 306 4,293
Daseke, Inc.+.................................. 444 1,194
Echo Global Logistics, Inc.+................... 260 5,177
Forward Air Corp............................... 274 18,953
Hub Group, Inc., Class A+...................... 315 14,427
Matson, Inc.................................... 413 15,768
Radiant Logistics, Inc.+....................... 380 2,048
Universal Logistics Holdings, Inc.............. 80 1,509
--------
63,369
--------
TRANSPORT-TRUCK -- 0.2%
ArcBest Corp................................... 247 7,136
Covenant Transportation Group, Inc., Class A+.. 122 1,875
Heartland Express, Inc......................... 446 9,321
Marten Transport, Ltd.......................... 381 8,253
P.A.M. Transportation Services, Inc.+.......... 19 1,089
Roadrunner Transportation Systems, Inc.+....... 35 393
Saia, Inc.+.................................... 252 22,479
US Xpress Enterprises, Inc. Class A+........... 212 1,100
Werner Enterprises, Inc........................ 440 16,060
YRC Worldwide, Inc.+........................... 324 1,085
--------
68,791
--------
TRAVEL SERVICES -- 0.0%
Liberty TripAdvisor Holdings, Inc., Class A+... 706 6,813
--------
VENTURE CAPITAL -- 0.0%
Safeguard Scientifics, Inc.+................... 189 2,138
--------
VETERINARY DIAGNOSTICS -- 0.1%
Heska Corp.+................................... 67 5,428
Neogen Corp.+.................................. 498 32,400
--------
37,828
--------
VITAMINS & NUTRITION PRODUCTS -- 0.4%
Lifevantage Corp.+............................. 12,683 171,981
Natural Grocers by Vitamin Cottage, Inc.+...... 88 772
Nature's Sunshine Products, Inc.+.............. 85 802
USANA Health Sciences, Inc.+................... 125 9,264
--------
182,819
--------
WATER -- 0.8%
American States Water Co....................... 357 33,961
Artesian Resources Corp., Class A.............. 77 2,857
California Water Service Group................. 468 26,194
Consolidated Water Co., Ltd.................... 140 2,456
Global Water Resources, Inc.................... 115 1,409
Middlesex Water Co............................. 156 10,491
PICO Holdings, Inc.+........................... 177 1,908
63
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
---------------------------------------------------------------
COMMON STOCKS (CONTINUED)
WATER (CONTINUED)
SJW Group...................................... 256 $ 18,521
York Water Co.................................. 6,231 274,413
--------
372,210
--------
WATER TREATMENT SYSTEMS -- 1.2%
AquaVenture Holdings, Ltd.+.................... 136 2,668
Energy Recovery, Inc.+......................... 23,455 218,366
Evoqua Water Technologies Corp.+............... 727 12,628
Pure Cycle Corp.+.............................. 28,467 318,261
--------
551,923
--------
WEB HOSTING/DESIGN -- 0.1%
Endurance International Group Holdings, Inc.+.. 695 2,724
NIC, Inc....................................... 639 15,029
Q2 Holdings, Inc.+............................. 420 30,026
--------
47,779
--------
WEB PORTALS/ISP -- 0.0%
Meet Group, Inc.+.............................. 714 3,042
--------
WIRE & CABLE PRODUCTS -- 0.1%
Belden, Inc.................................... 379 19,435
Encore Wire Corp............................... 198 11,128
Insteel Industries, Inc........................ 179 3,413
--------
33,976
--------
WIRELESS EQUIPMENT -- 0.1%
Anterix, Inc.+................................. 105 4,259
CalAmp Corp.+.................................. 317 3,557
Cambium Networks Corp.+........................ 42 368
InterDigital, Inc.............................. 303 16,250
Maxar Technologies, Inc........................ 581 4,933
Ribbon Communications, Inc.+................... 580 2,488
Sonim Technologies, Inc.+...................... 36 86
TESSCO Technologies, Inc....................... 63 837
--------
32,778
--------
SHARES/
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 3)
---------------------------------------------------------------------
WOUND, BURN & SKIN CARE -- 0.0%
Dermira, Inc.+................................. 459 $ 3,072
-----------
X-RAY EQUIPMENT -- 0.0%
Varex Imaging Corp.+........................... 366 10,984
ViewRay, Inc.+................................. 685 1,781
-----------
12,765
-----------
TOTAL COMMON STOCKS
(cost $42,029,943)........................... 44,508,653
-----------
EXCHANGE-TRADED FUNDS -- 1.1%
iShares Russell 2000 ETF
(cost $453,195).............................. 3,080 478,786
-----------
TOTAL LONG-TERM INVESTMENT SECURITIES
(cost $42,483,138)........................... 44,987,439
-----------
SHORT-TERM INVESTMENT SECURITIES -- 0.1%
U.S. GOVERNMENT TREASURIES -- 0.1%
United States Treasury Bills 1.70% due
11/05/19(3) (cost $59,989)................... $ 60,000 59,990
-----------
REPURCHASE AGREEMENTS -- 0.6%
Agreement with Fixed Income Clearing Corp.,
bearing interest at 0.25%, dated 10/31/2019,
to be repurchased 11/01/2019 in the amount
of $252,002 and collateralized by $250,000
of United States Treasury Notes, bearing
interest at 2.38%, due 02/29/2024 and having
an approximate value of $258,608 (cost
$252,000).................................... 252,000 252,000
-----------
TOTAL INVESTMENTS
(cost $42,795,127)(4)........................ 99.5% 45,299,429
Other assets less liabilities................... 0.5 238,318
-------- -----------
NET ASSETS 100.0% $45,537,747
======== ===========
--------
+ Non-income producing security
(1)Securities classified as Level 3 (see Note 3).
(2)Denotes a restricted security that: (a) cannot be offered for public sale
without first being registered, or being able to take advantage of an
exemption from registration, under the Securities Act of 1933, as amended
(the "1933 Act"); (b) is subject to a contractual restriction on public
sales; or (c) is otherwise subject to a restriction on sales by operation of
applicable law. Restricted securities are valued pursuant to Note 3. Certain
restricted securities held by the Fund may not be sold except in exempt
transactions or in a public offering registered under the 1933 Act. The Fund
has no right to demand registration of these securities. The risk of
investing in certain restricted securities is greater than the risk of
investing in the securities of widely held, publicly traded companies. To
the extent applicable, lack of a secondary market and resale restrictions
may result in the inability of a Fund to sell a security at a fair price and
may substantially delay the sale of the security. In addition, certain
restricted securities may exhibit greater price volatility than securities
for which secondary markets exist. As of October 31, 2019, the Fund held the
following restricted securities:
RESTRICTED TABLE
-------------------------------------------------------------------------------
VALUE % OF
ACQUISTION ACQUISTION PER NET
DESCRIPTION DATE SHARES COST VALUE SHARE ASSETS
------------------------------- ---------- ------ ---------- ----- ----- ------
COMMON STOCKS
Pan American Silver Corp., CVR 06/22/2018 3,628 $1,118 $762 $0.31 0.00%
==== ====
(3)The security or a portion thereof was pledged as collateral to cover margin
requirements for open futures contracts.
(4)See Note 6 for cost of investments on tax basis.
64
SUNAMERICA SPECIALTY SERIES -- AIG SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
CVR -- Contingent Value Rights
ETF -- Exchange-Traded Funds
FUTURES CONTRACTS
-------------------------------------------------------------------------------------------
UNREALIZED
NUMBER OF NOTIONAL NOTIONAL APPRECIATION
CONTRACTS TYPE DESCRIPTION EXPIRATION MONTH BASIS* VALUE* (DEPRECIATION)
--------- ---- ----- ---------------- -------- -------- --------------
5 Long E-Mini Russell 2000 Index December 2019 $370,392 $390,850 $20,458
=======
--------
* Notional basis refers to the contractual amount agreed upon at inception of
the open contract; notional value represents the current value of the open
contract.
The following is a summary of the inputs used to value the Fund's net assets as
of October 31, 2019 (see Note 3):
LEVEL 1 -- UNADJUSTED LEVEL 2 -- OTHER LEVEL 3 -- SIGNIFICANT
QUOTED PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS TOTAL
--------------------- ----------------- ---------------------- -----------
ASSETS:
Investments at Value:*
Common Stocks:
Chemicals-Diversified...... $ 76,016 $ -- $ 0 $ 76,016
Chemicals-Plastics......... 23,909 -- 95 24,004
Finance-Commercial......... 24,791 -- 194 24,985
Medical-Biomedical/Gene.... 1,828,913 -- 637 1,829,550
Medical-Drugs.............. 1,415,837 -- 57 1,415,894
Metal-Diversified.......... -- -- 0 0
Multimedia................. 21,980 -- 0 21,980
Silver Mining.............. -- -- 762 762
Other Industries........... 41,115,462 -- -- 41,115,462
Exchange-Traded Funds......... 478,786 -- -- 478,786
Short-Term Investments
Securities................... -- 59,990 -- 59,990
Repurchase Agreements......... -- 252,000 -- 252,000
----------- -------- ------ -----------
TOTAL INVESTMENTS AT VALUE.... $44,985,694 $311,990 $1,745 $45,299,429
=========== ======== ====== ===========
Other Financial Instruments:+
Futures Contracts............. $ 20,458 $ -- $ -- $ 20,458
=========== ======== ====== ===========
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
+ Amounts represent unrealized appreciation/depreciation as of the end of the
reporting period.
At the beginning and end of the reporting period, Level 3 investments in
securities were not considered a material portion of the Fund. There were no
Level 3 transfers during the reporting period.
See Notes to Financial Statements
65
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019
Note 1. Organization
SunAmerica Specialty Series (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end management
investment company and is organized as a Delaware Statutory Trust. The Trust
consists of six different investment funds (each a "Fund" and collectively,
the "Funds") as of October 31, 2019. Each Fund is managed by SunAmerica
Asset Management, LLC (the "Adviser" or "SunAmerica"). An investor may
invest in one or more of the following Funds: AIG Commodity Strategy Fund
(the "Commodity Strategy Fund"), AIG ESG Dividend Fund (the "ESG Dividend
Fund"), AIG Focused Alpha Large-Cap Fund (the "Focused Alpha Large-Cap
Fund"), AIG Focused Growth Fund (the "Focused Growth Fund"), AIG Income
Explorer Fund (the "Income Explorer Fund") and AIG Small-Cap Fund ("the
Small-Cap Fund").
Effective February 28, 2019, AIG Focused Multi-Cap Growth Fund changed its
name to AIG Focused Growth Fund.
The Funds are considered to be separate entities for financial and tax
reporting purposes. The investment objective and principal investment
techniques for each Fund are as follows:
The Commodity Strategy Fund seeks to provide long-term total return through
a strategy that is designed to provide diversified exposure to the
commodities markets. The Fund seeks to achieve its investment goal by
investing its assets in a combination of commodity-linked derivative
instruments and fixed income securities.
The ESG Dividend Fund seeks to provide total return including capital
appreciation and current income, employing a "buy and hold" strategy with up
to forty dividend yielding equity securities selected annually from the
Russell 1000(R) Index that meet the Fund's ESG standards.
The Focused Alpha Large-Cap Fund seeks to provide growth of capital through
active trading of equity securities to achieve a blend of growth companies,
value companies and companies that have elements of growth and value, issued
by large-cap companies. Under normal market conditions, the Fund will invest
at least 80% of its net assets, plus any borrowing for investment purposes,
in large-cap companies.
The Focused Growth Fund seeks to provide growth of capital through active
trading of equity securities of large, small and mid-cap companies.
The Income Explorer Fund seeks to provide high current income with a
secondary objective of capital appreciation primarily by strategically
allocating its assets among a preferred securities strategy, closed-end fund
strategy and global dividend equity strategy. Through this combination of
investments, the Fund expects to gain exposure to a broad range of
income-producing investments, including both fixed income and equity
securities.
The Small-Cap Fund seeks to provide long-term growth of capital by
strategically allocating its assets between a small-cap index strategy and a
micro-cap growth strategy.
Each Fund, except for the Focused Alpha Large-Cap Fund and Focused Growth
Fund, is a "diversified" Fund within the meaning of the 1940 Act.
Each Fund offers multiple classes of shares of beneficial interest. The
classes within each Fund are presented in the Statement of Assets and
Liabilities. The cost structure for each class is as follows:
Class A shares are offered at net asset value per share plus an initial
sales charge. Additionally, any purchases of Class A shares in excess of
$1,000,000 will be purchased at net asset value but will be subject to a
contingent deferred sales charge on redemptions made within one year of
purchase.
Class C shares are offered at net asset value and may be subject to a
contingent deferred sales charge on redemptions made within 12 months of
purchase.
66
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
Class W shares are offered at net asset value per share. The class is
offered exclusively through advisory fee-based programs sponsored by certain
financial intermediaries and other programs.
Each class of shares bears the same voting, dividend, liquidation and other
rights and conditions, except as may otherwise be provided in the Funds'
registration statement. Class A and Class C shares make distribution and
account maintenance fee payments under a distribution plan pursuant to Rule
12b-1 under the 1940 Act, with 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. Basis for consolidation for the SunAmerica Commodity Strategy Cayman
Fund Ltd.
The AIG Commodity Strategy Cayman Fund Ltd. (the "Commodity Strategy
Subsidiary"), a Cayman Islands exempted company, was incorporated on
October 20, 2008, and is a wholly-owned subsidiary of the Commodity Strategy
Fund. The Commodity Strategy Subsidiary commenced operations on May 22, 2009
and was organized as a wholly-owned subsidiary of the Commodity Strategy
Fund in order to effect certain investments on behalf of the Commodity
Strategy Fund consistent with the investment objectives and policies in the
Commodity Strategy Fund's prospectus and statement of additional
information. With respect to its investments, the Commodity Strategy
Subsidiary will generally be subject to the same fundamental,
non-fundamental and certain other investment restrictions as the Commodity
Strategy Fund; however, the Commodity Strategy Subsidiary (unlike the
Commodity Strategy Fund) may invest without limitation in commodity-linked
swap agreements and other commodity-linked derivative instruments that may
otherwise be limited if purchased by the Commodity Strategy Fund due to
federal tax requirements relating to qualifying income. The Commodity
Strategy Fund and Commodity Strategy Subsidiary may test for compliance with
certain investment restrictions on a consolidated basis, except that with
respect to its investment in certain securities that may involve leverage,
the Commodity Strategy Subsidiary will comply with asset segregation or
"earmarking" requirements to the same extent as the Commodity Strategy Fund.
The Commodity Strategy Fund may invest up to 25% of its assets in the
Commodity Strategy Subsidiary. As of October 31, 2019, net assets of the
Commodity Strategy Fund were $32,607,914, of which approximately $6,419,841,
or approximately 19.7%, represented the Commodity Strategy Fund's ownership
of all issued shares and voting rights of the Commodity Strategy Subsidiary.
Note 3. Significant Accounting Policies
The preparation of financial statements in accordance with U.S. generally
accepted accounting principles ("GAAP") requires management to make
estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results could differ from those
estimates and those differences could be significant. The 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
67
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
based on market data obtained from sources independent of the reporting
entity. Unobservable inputs are inputs that reflect the reporting entity's
own assumptions about the assumptions market participants would use in
pricing the asset or liability developed based on the best information
available in the circumstances. The three-tiers are as follows:
Level 1 -- Unadjusted quoted prices in active markets for identical
securities
Level 2 -- Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
referenced indices, quoted prices in inactive markets, adjusted quoted
prices in active markets, adjusted quoted prices
on foreign equity securities that were adjusted in accordance with pricing
procedures approved by the Board of Trustees (the "Board") , etc.)
Level 3 -- Significant unobservable inputs (includes inputs that reflect the
Funds' own assumptions about the assumptions market participants would use
in pricing the security, developed based on the best information available
under the circumstances)
Changes in valuation techniques may result in transfers in or out of an
investment's assigned Level within the hierarchy. The methodology used for
valuing investments is not necessarily an indication of the risk associated
with investing in those investments and the determination of the
significance of a particular input to the fair value measurement in its
entirety requires judgment and consideration of factors specific to each
security.
The availability of observable inputs can vary from security to security and
is affected by a wide variety of factors, including, for example, the type
of security, whether the security is recently issued and not yet established
in the marketplace, the liquidity of markets, and other characteristics
particular to the security. To the extent that valuation is based on models
or inputs that are less observable or unobservable in the market, the
determination of fair value requires more judgment. Accordingly, the degree
of judgment exercised in determining fair value is greatest for instruments
categorized in Level 3.
The summary of the Funds' assets and liabilities classified in the fair
value hierarchy as of October 31, 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 the review of a number of factors, including developments
in foreign markets, the performance of U.S. securities markets, and the
performance of instruments trading in U.S. markets that represent foreign
securities and baskets of foreign securities. If a Fund determines that
closing prices do not reflect the fair value of the securities, the Fund
will adjust the previous closing prices in accordance with pricing
procedures approved by the Board to reflect what it believes to be the fair
value of the securities as of the close of regular trading on the NYSE. The
Funds may also fair value securities in other situations, for example, when
a particular foreign market is closed but a Fund is open. For foreign equity
securities and foreign equity futures contracts, the Funds use an outside
pricing service to provide it with closing market prices and information
used for adjusting those prices, and when so adjusted, such securities and
futures are generally categorized as Level 2.
Bonds, debentures and other debt securities are valued at evaluated bid
prices obtained for the day of valuation from a Board-approved pricing
service and are generally categorized as Level 2. The pricing services may
use valuation models or matrix pricing which considers information with
respect to comparable bond and note transactions, quotations from bond
dealers, or by reference to other securities that are considered comparable
in such characteristics as rating, interest rate, maturity date, option
68
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
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.
Investments in registered investment companies that do not trade on an
exchange are valued at the end of day net asset value per share. Investments
in registered investment companies that trade on an exchange are valued at
the last sales price or official closing price as of the close of the
customary trading session on the exchange where the security is principally
traded. Investments in registered investment companies are generally
categorized as Level 1.
Futures contracts traded on national securities exchanges are valued at the
quoted daily settlement price established by the exchange on which they
trade reported by a Board-approved pricing service, and are generally
categorized as Level 1. Option contracts traded on national securities
exchanges are valued at the mean of the last bid and ask price reported by a
Board-approved pricing service as of the close of the exchange on which they
are traded, and are generally categorized as Level 1.
Option contracts traded in the over-the-counter ("OTC") market are valued at
the mid valuation provided by a Board-approved pricing service, and are
generally categorized as Level 2. Swap contracts traded on national
securities exchanges are valued at the closing price of the exchange on
which they are traded or if a closing price of the exchange is not
available, the swap will be valued using a mid valuation provided by a
Board-approved pricing service, and are generally categorized as Level 2.
Swap contracts traded over the counter are valued at a mid valuation
provided by a Board-approved pricing service, and are generally categorized
as Level 2. Forward foreign currency contracts ("forward contracts") are
valued at the 4:00 p.m. Eastern Time forward rate and are generally
categorized as Level 2.
Other securities are valued on the basis of last sale or bid price (if a
last sale price is not available) which is, in the opinion of the Adviser,
the broadest and most representative market, that may be either a securities
exchange or OTC market, and are generally categorized as Level 1 or Level 2.
The Board is responsible for the share valuation process and has adopted
policies and procedures (the "PRC Procedures") for valuing the securities
and other assets held by the Funds, including procedures for the fair
valuation of securities and other assets for which market quotations are not
readily available or are unreliable. The PRC Procedures provide for the
establishment of a pricing review committee, which is responsible for, among
other things, making certain determinations in connection with the Trust's
fair valuation procedures. Securities for which market quotations are not
readily available or the values of which may be significantly impacted by
the occurrence of developments or significant events are generally
categorized as Level 3. There is no single standard for making fair value
determinations, which may result in prices that vary from those of other
funds.
DERIVATIVE INSTRUMENTS:
Futures: During the period, the Commodity Strategy Fund entered into futures
transactions for investment purposes in order to provide exposure to
commodities. The Small-Cap Fund entered into futures transactions for
investment purposes in order to provide exposure to U.S and non-U.S. equity
markets.
A futures contract is an agreement between two parties to buy and sell a
financial instrument at a set price on a future date. Upon entering into a
futures transaction, a Fund will be required to segregate an initial margin
payment of cash or other liquid securities with the futures commission
merchant (the "broker"). Subsequent payments are made or received by a Fund
as a result of changes in the value of the contract and/or changes in the
value of the initial margin requirement. Such receipts or payments are
recorded in the Statements of Assets and Liabilities as variation margin for
changes in the value of the contracts and as cash collateral for futures
contracts for the changes in the value of the initial margin requirement.
When a contract is closed, a Fund records a realized gain or loss equal to
the difference between the value of the contract at the time it was opened
and the value at the time it was closed.
The primary risk to a Fund of entering into futures contracts is market
risk. Market risk is the risk that there will be an unfavorable change in
the interest rate, value or currency rate of the underlying security or
securities. Futures contracts involve, to varying degrees, risk of loss in
excess of the variation margin. There may also be trading restrictions or
limitations imposed by
69
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
an exchange, and government regulations may restrict trading in futures
contracts. While a Fund will generally only purchase exchange-traded
futures, due to market conditions, there may not always be a liquid
secondary market for a futures contract and, as a result, the Fund may be
unable to close out its futures contracts at a time which is advantageous.
In addition, if a Fund has insufficient cash to meet margin requirements,
the Fund may need to sell other investments, including at disadvantageous
times. There is generally minimal counterparty credit risk to a Fund since
exchange-traded futures contracts are centrally cleared.
Futures contracts outstanding at the end of the period, if any, are reported
on a schedule at the end of each Fund's Portfolio of Investments.
Forward Foreign Currency Contracts: During the period, the Income Explorer
Fund used forward contracts to attempt to protect securities 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.
For federal income tax purposes, the Income Explorer Fund has made an
election to treat gains and losses from forward foreign currency contracts
as capital gains and losses.
Risks to a Fund of entering into forward contracts include counterparty
risk, market risk and illiquidity risk. Counterparty risk arises upon
entering into these contracts from the potential inability of counterparties
to meet the terms of their contracts. If the counterparty defaults, a Fund's
loss will generally consist of the net amount of contractual payments that
the Fund has not yet received though the Fund's maximum exposure due to
counterparty risk could extend to the notional amount of the contract.
Market risk is the risk that the value of the forward contract will
depreciate due to unfavorable changes in the exchange rates. These contracts
may involve market risk in excess of the unrealized appreciation or
depreciation reported on the Statement of Assets and Liabilities.
Illiquidity risk arises because the secondary market for forwards may have
less liquidity relative to markets for other securities. Currency
transactions are also subject to risks different from those of other
portfolio transactions. Because currency control is of great importance to
the issuing governments and influences economic planning and policy,
purchases and sales of currency and related instruments can be adversely
affected by government exchange controls, limitations or restrictions on
repatriation of currency, and manipulations or exchange restrictions imposed
by governments.
Forward foreign currency contracts outstanding at the end of the period, if
any, are reported on a schedule at the end of each Fund's Portfolio of
Investments.
Options: During the period, the Commodity Strategy Fund used options
contracts to provide exposure to commodities.
An option is a contract conveying a right to buy or sell a financial
instrument at a specified price during a stipulated period. When a Fund
writes a call or a put option, it receives a premium which is equal to the
current market value of the option written. The premiums on written options
are recorded as a liability on the Statement of Assets and Liabilities. If a
Fund purchases a call or a put option, it pays a premium which reflects the
current market value of the option and which is included on the Fund's
Statement of Assets and Liabilities as an investment. The option position is
marked to market daily and its value fluctuates based upon the value of the
underlying financial instrument, time to expiration, cost of borrowing
funds, and volatility of the value of the underlying financial instrument.
If an option which a Fund has written either expires on its stipulated
expiration date, or if the Fund enters into a closing purchase transaction,
the Fund realizes a gain (or loss if the cost of a closing purchase
transaction exceeds the premium received when the option was written)
without regard to any unrealized gain or loss on the underlying security,
and the liability related to such options is extinguished. If a call option
which a Fund has written is exercised, the Fund realizes a gain or loss from
the sale of the underlying security and the proceeds from such sale are
increased by the premium originally received. If a put option which a Fund
has written is exercised, the amount of the premium originally received
reduces the cost of the security which the Fund purchased upon exercise of
the option. Options may be traded on a national securities exchange or in
the OTC market.
70
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
Risks to the Funds of entering into option contracts include counterparty
risk, market risk and, with respect to OTC options, illiquidity risk.
Counterparty risk arises from the potential inability of counterparties to
meet the terms of their contracts. If the counterparty defaults, the Fund's
loss will consist of the net amount of contractual payments that the Fund
has not yet received. Market risk is the risk that there will be an
unfavorable change in the value of the underlying securities, and for
written options, may result in losses in excess of the amounts shown on the
statement and assets and liabilities. There is also the risk a Fund may not
be able to enter into a closing transaction because of an illiquid market.
In addition, unlisted options are not traded on an exchange and may not be
as actively traded as listed options, making the valuation of such
securities more difficult. An unlisted option also entails a greater risk
that the party on the other side of the option transaction may default,
which would make it impossible to close out an unlisted option position in
some cases, and profits related to the transaction lost thereby.
Option contracts outstanding at the end of the period, if any, are reported
on a schedule at the end of each Fund's Portfolio of Investments.
Swap Contracts: Certain Funds may enter into credit default, interest rate
and/or total return swap contracts. Swap contracts are privately negotiated
in the OTC market and may be entered into as a bilateral contract or a
centrally cleared contract ("centrally cleared swaps"). In a centrally
cleared swap, immediately following execution of the swap contract, the swap
contract is novated to a central counterparty (the "CCP") and a Fund faces
the CCP through a broker. Upon entering into a centrally cleared swap, a
Fund is required to deposit initial margin with the broker in the form of
cash or securities in an amount that varies depending on the size and risk
profile of the particular swap. Securities deposited as initial margin are
designated on the Portfolio of Investments and cash deposited is recorded on
the Statement of Assets and Liabilities as cash collateral for centrally
cleared swap contracts. Unlike a bilateral swap contract, for centrally
cleared swaps, a Fund has no credit exposure to the counterparty as the CCP
stands between the Fund and the counterparty. Swaps are marked-to-market
daily and the changes in value are recorded as an unrealized gain (loss).
The daily change in valuation of swap contracts, if any, is recorded as
unrealized appreciation (depreciation) on swap contracts. When the swap is
terminated, a Fund will record a realized gain or loss equal to the
difference between the proceeds from (or cost of) the closing transaction
and the Fund's basis in the contract, if any. Generally, the basis of the
contracts is the premium received or paid. Upfront payments and receipts on
swap contracts are amortized on a daily basis. Net periodic payments made or
received by a Fund are included as part of realized gain (loss).
Total Return Swaps: During the period, the Commodity Strategy Fund used
total return swaps for investment purposes in order to provide exposure to
commodities.
Total return swaps give a Fund the right to receive the appreciation in the
value of a specified security, index or other instrument in return for a fee
paid to the counterparty, which will typically be an agreed upon interest
rate. If the underlying asset in a total return swap declines in value over
the term of the swap, a Fund may also be required to pay the dollar value of
that decline to the counterparty.
The Fund will generally enter into total return swaps only on a net basis,
which means that the two payment streams are netted against each other, with
the Fund receiving or paying, as the case may be, only the net amount of the
two payments. Payments may be made at the conclusion of a total return swap
contract or periodically during its term. Total return swaps normally do not
involve the delivery of securities or other underlying assets. Accordingly,
the risk of loss with respect to total return swaps is normally limited to
the net amount of payments that the Fund is contractually obligated to make.
If the counterparty to a total return swap defaults, the Fund's risk of loss
consists of the net discounted amount of payments that the Fund is
contractually entitled to receive, if any.
Total return swap contracts outstanding at the end of the period, if any,
are reported on a schedule at the end of the Fund's Portfolio of Investments.
Risks of Entering into Swap Agreements: Risks to a Fund of entering into
credit default swaps, total return swaps and interest rate swaps, include
credit risk, market risk, counterparty risk, liquidity risk and
documentation risk. By entering into swap agreements, a Fund may be exposed
to risk of potential loss due to unfavorable changes in interest rates, the
price of the underlying security or index, or the underlying referenced
asset's perceived or actual credit, that the counterparty may default on its
obligation to perform or the possibility that there is no liquid market for
these agreements. There is also the risk that the parties may disagree as to
the
71
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
meaning of contractual terms in the swap agreement. In addition, to the
extent that a subadviser does not accurately analyze and predict the
underlying economic factors influencing the value of the swap, a Fund may
suffer a loss, which may be in excess of the amount reflected on the
statement of assets and liabilities.
Risks of Commodity-Linked Derivatives: Commodity-linked derivatives are
derivative instruments, the value of which is primarily linked to the price
movement of a commodity, commodity index or commodity futures or option
contract. The commodity-linked derivative instruments in which certain of
the Funds invest have substantial risks, including risk of loss of a
significant portion of their principal value. Commodity-linked derivative
instruments may be more volatile and less liquid than the underlying
instruments and their value will be affected by the performance of the
commodity markets, as well as economic and other regulatory or political
developments, overall market movements and other factors. Typically, the
return of the commodity-linked swaps will be based on some multiple of the
performance of an index. The multiple (or leverage) will magnify the
positive and negative return the Fund earns from these swaps as compared to
the index.
Master Agreements: Certain Funds that hold derivative instruments and other
financial instruments may be a party to ISDA (International Swap and
Derivatives Association, Inc.) Master Agreements or similar agreements
("Master Agreements") with certain counterparties that govern such
instruments. Master Agreements may contain provisions regarding, among other
things, the parties' general obligations, representations, agreements,
collateral requirements, events of default and early termination. Collateral
can be in the form of cash or securities as agreed to by a Fund and
applicable counterparty. Collateral requirements are generally determined
based on a Fund's net position with each counterparty. Master Agreements may
also include certain provisions that require a Fund to post additional
collateral upon the occurrence of certain events, such as when a Fund's net
assets fall below a specified level. In addition, Master Agreements
typically specify certain standard termination events, such as failure of a
party to pay or deliver, credit support defaults and other events of
default. Termination events applicable to a Fund may also occur upon a
decline in a Fund's net assets below a specified level over a certain period
of time. Additional termination events applicable to counterparties may
occur upon a decline in a counterparty's long-term and short-term credit
ratings below a specified level, or upon a decline in the ratings of a
counterparty's credit support provider. Upon the occurrence of a termination
event, the other party may elect to terminate early and cause settlement of
all instruments outstanding pursuant to a particular Master Agreement,
including the payment of any losses and costs resulting from such early
termination, as reasonably determined by the terminating party. Any decision
by one or more of a Fund's counterparties to elect early termination could
cause a Fund to accelerate the payment of liabilities, which settlement
amounts could be in excess of the amount of assets that are already posted
as collateral. Typically, the Master Agreement will permit a single net
payment in the event of default. Note, however, that bankruptcy or
insolvency laws of a particular jurisdiction may impose restrictions on or
prohibitions against the right of offset in bankruptcy, insolvency or other
events. As a result, the early termination with respect to derivative
instruments subject to Master Agreements that are in a net liability
position could be material to a Fund's financial statements. The Funds do
not offset derivative assets and derivative liabilities that are subject to
netting arrangements in the Statement of Assets and Liabilities.
The following tables represent the value of derivatives held as of October
31, 2019, by their primary underlying risk exposure and the respective
location on the Statement of Assets and Liabilities and the effect of
derivatives on the Statement of Operations for the year ended October 31,
2019. 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 October 31, 2019, please refer to a schedule at the
end of each Fund's Portfolio of Investments.
72
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
FOREIGN FOREIGN
FORWARD FORWARD
FUTURES SWAP OPTIONS EXCHANGE FUTURES SWAP OPTIONS EXCHANGE
CONTRACTS(1)(8) CONTRACTS(2) PURCHASED(3) CONTRACTS(4) CONTRACTS(1)(8) CONTRACTS(5) WRITTEN(6) CONTRACTS(7)
- --------------- ------------ ------------ ------------ --------------- ------------ ---------- ------------
EQUITY CONTRACTS
-----------------------------------------------------------------------------------------------------------
FUND ASSET DERIVATIVES LIABILITY DERIVATIVES
---- ------------------------------------------------------ ----------------------------------------------------
Small-Cap........... $ -- $ -- $ -- $ -- $ 2,750 $ -- $ -- $ --
COMMODITY CONTRACTS
-----------------------------------------------------------------------------------------------------------
ASSET DERIVATIVES LIABILITY DERIVATIVES
------------------------------------------------------ ----------------------------------------------------
Commodity Strategy#. $88,782 $48,409 $2,520 $ -- $208,899 $ -- $21,845 $ --
FOREIGN EXCHANGE CONTRACTS
-----------------------------------------------------------------------------------------------------------
ASSET DERIVATIVES LIABILITY DERIVATIVES
------------------------------------------------------ ----------------------------------------------------
Income Explorer..... $ -- $ -- $ -- $344 $ -- $ -- $ -- $10,541
--------
STATEMENT OF ASSETS AND LIABILITIES LOCATION:
(1)Variation margin on futures contracts
(2)Unrealized appreciation on swap contracts
(3)Investments at value (unaffiliated)
(4)Unrealized appreciation on forward foreign currency contracts
(5)Unrealized depreciation on swap contracts
(6)Call and put options written, at value
(7)Unrealized depreciation on forward foreign currency contracts
(8)The variation margin on futures contracts is included in the cumulative
appreciation (depreciation) as reported on each Fund's Portfolio of
Investments in the following amounts:
CUMULATIVE
APPRECIATION/
FUND (DEPRECIATION)
---- --------------
Commodity Strategy#. $414,484
Small-Cap........... 20,458
--------
# Consolidated (see Note 2)
73
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN STATEMENT OF OPERATIONS
------------------------------------------------------------------------
FOREIGN FORWARD
FUTURES SWAP WRITTEN PURCHASED EXCHANGE
CONTRACTS(1) CONTRACTS(2) OPTIONS(3) OPTIONS(4) CONTRACTS(5)
------------ ------------ ---------- ---------- ---------------
FUND EQUITY CONTRACTS
---- ------------------------------------------------------------------------
Small-Cap........... $ (871,114) $ -- $ -- $ -- $ --
COMMODITY CONTRACTS
------------------------------------------------------------------------
Commodity Strategy#. $(2,878,187) $(684,380) $(15,934) $(34,368) $ --
FOREIGN EXCHANGE CONTRACTS
------------------------------------------------------------------------
Income Explorer .... $ -- $ -- $ -- $ -- $ 22,291
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED
IN STATEMENT OF OPERATIONS
------------------------------------------------------------------------
FOREIGN FORWARD
FUTURES SWAP WRITTEN PURCHASED EXCHANGE
CONTRACTS(6) CONTRACTS(7) OPTIONS(8) OPTIONS(9) CONTRACTS(10)
------------ ------------ ---------- ---------- ---------------
FUND EQUITY CONTRACTS
---- ------------------------------------------------------------------------
Small-Cap........... $ 696,793 $ -- $ -- $ -- $ --
COMMODITY CONTRACTS
------------------------------------------------------------------------
Commodity Strategy#. $ 1,681,085 $ 84,436 $ (4,421) $ 4,004 $ --
FOREIGN EXCHANGE CONTRACTS
------------------------------------------------------------------------
Income Explorer .... $ -- $ -- $ -- $ -- $(10,197)
--------
STATEMENT OF OPERATIONS LOCATION:
(1)Net realized gain (loss) on futures contracts
(2)Net realized gain (loss) on swap contracts
(3)Net realized gain (loss) on written options contracts
(4)Net realized gain (loss) on investments
(5)Net realized gain (loss) on forward contracts
(6)Change in unrealized appreciation (depreciation) on futures contracts
(7)Change in unrealized appreciation (depreciation) on swap contracts
(8)Change in unrealized appreciation (depreciation) on written options contracts
(9)Change in unrealized appreciation (depreciation) on investments
(10)Change in unrealized appreciation (depreciation) on forward contracts
# Consolidated (see Note 2)
74
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
The following table represents the average monthly balances of derivatives
held during the year ended October 31, 2019.
AVERAGE AMOUNT OUTSTANDING DURING THE PERIOD
--------------------------------------------------------------------------------------------------
FOREIGN PURCHASED CALL PURCHASED PUT WRITTEN CALL WRITTEN PUT
FUTURES EXCHANGE OPTIONS OPTIONS TOTAL RETURN OPTIONS OPTIONS
FUND CONTRACTS(2) CONTRACTS(2) CONTRACTS(1) CONTRACTS(1) SWAP CONTRACTS(1) CONTRACTS(1) CONTRACTS(1)
---- ------------ ------------ -------------- ------------- ----------------- ------------ ------------
Commodity Strategy#. $29,348,513 $ -- $3,306 $2,185 $11,834,937 $4,912 $153
Income Explorer..... -- 696,740 -- -- -- -- --
Small-Cap........... 1,188,206 -- -- -- -- -- --
--------
(1)Amounts represent values in US dollars.
(2)Amounts represent notional amounts in US dollars.
# Consolidated (see Note 2)
The following tables set forth the Funds' derivative assets and liabilities
by counterparty, net of amount available for offset under Master Agreements
and net of related collateral pledged/(received) as of October 31, 2019. The
repurchase agreements held by the Funds as of October 31, 2019 are subject
to Master Agreements but are not included in the following tables. See the
Portfolio of Investments and Notes to the Financial Statements for more
information about the Funds' holdings in repurchase agreements.
AIG COMMODITY STRATEGY FUND#
-----------------------------------------------------------------------
DERIVATIVE ASSETS(1) DERIVATIVE LIABILITIES(1)
------------------------------------- ---------------------------------
FORWARD FORWARD
FOREIGN FOREIGN
CURRENCY OPTIONS CURRENCY OPTIONS
COUNTERPARTY CONTRACTS OTC SWAPS PURCHASED TOTAL CONTRACTS OTC SWAPS WRITTEN TOTAL
------------ --------- --------- --------- ------- --------- --------- ------- -----
Goldman Sachs International......................... $ -- $48,409 $ -- $48,409 $ -- $ -- $ -- $ --
========= ========= ========= ======= ========= ========= ======= =====
NET
DERIVATIVE COLLATERAL
ASSETS PLEDGED/ NET
COUNTERPARTY (LIABILITIES) (RECEIVED)(2) AMOUNT(3)
------------ ------------- ------------- ---------
Goldman Sachs International......................... $48,409 $ -- $48,409
============= ============= =========
--------
(1)Gross amounts of recognized assets and liabilities not offset in the
Statement of Assets and Liabilities.
(2)For each respective counterparty, collateral pledged or (received) is
limited to an amount not to exceed 100% of the derivative asset/liability in
the table above.
(3)Net amount represents the net amount due (to)/from counterparty in the event
of a default based on the contractual set-off rights under the agreement.
# Consolidated (see Note 2)
AIG INCOME EXPLORER FUND
-----------------------------------------------------------------------
DERIVATIVE ASSETS(1) DERIVATIVE LIABILITIES(1)
----------------------------------- -----------------------------------
FORWARD FORWARD
FOREIGN FOREIGN
CURRENCY OPTIONS CURRENCY OPTIONS
COUNTERPARTY CONTRACTS OTC SWAPS PURCHASED TOTAL CONTRACTS OTC SWAPS WRITTEN TOTAL
------------ --------- --------- --------- ----- --------- --------- ------- -------
Brown Brothers Harriman and Co.................... $344 $ -- $ -- $344 $10,541 $ -- $ -- $10,541
========= ========= ========= ===== ========= ========= ======= =======
- - -
NET
DERIVATIVE COLLATERAL
ASSETS PLEDGED/ NET
COUNTERPARTY (LIABILITIES) (RECEIVED)(2) AMOUNT(3)
------------ ------------- ------------- ---------
Brown Brothers Harriman and Co.................... $(10,197) $ -- $(10,197)
============= ============= =========
--------
(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.
REPURCHASE AGREEMENTS: The Funds, along with other affiliated registered
investment companies, pursuant to procedures adopted by the Board and
applicable guidance from the Securities and Exchange Commission ("SEC"), may
transfer uninvested cash balances into a single joint account, the daily
aggregate balance of which is invested in one or more repurchase agreements
collateralized by U.S. Treasury or federal agency obligations. In a
repurchase agreement, the seller of a security agrees to repurchase the
security at a mutually agreed-upon time and price, which reflects the
effective rate of return for the term of the agreement. For repurchase
agreements and joint repurchase agreements, the Funds' custodian takes
possession of the collateral pledged for investments in such repurchase
agreements ("repo" or collectively "repos"). The underlying collateral is
valued daily on a mark to market basis, plus accrued interest to ensure that
the value, at the time the agreement is entered into, is equal to at least
102% of the repurchase price, including accrued interest. In the event of
default of the obligation to repurchase, a Fund has the right to liquidate
the collateral and apply the proceeds in satisfaction of the obligation. If
the seller defaults and the value of the collateral declines or if
bankruptcy proceedings are commenced with respect to the seller of the
security, realization of the collateral by a Fund may be delayed or limited.
75
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
As of October 31, 2019, the following Fund held an undivided interest in the
joint repurchase agreement with Bank of America Securities LLC:
PERCENTAGE PRINCIPAL
FUND OWNERSHIP AMOUNT
---- ---------- ----------
Commodity Strategy............ 8.20% $2,870,000
Commodity Strategy Subsidiary. 2.47 865,000
As of such date, the repurchase agreement in that joint account and the
collateral thereof were as follows:
Bank of America Securities LLC, dated October 31, 2019, bearing interest at
a rate of 1.72% per annum, with a principal amount of $35,000,000, a
repurchase price of $35,001,672, and a maturity date of November 1, 2019.
The repurchase agreement is collateralized by the following:
INTEREST MATURITY PRINCIPAL
TYPE OF COLLATERAL RATE DATE AMOUNT VALUE
------------------ -------- ---------- ----------- -----------
U.S. Treasury Bonds. 3.00% 05/15/2045 $30,644,000 $36,131,728
As of October 31, 2019, the following Funds held an undivided interest in
the joint repurchase agreement with Barclays Capital, Inc.:
PERCENTAGE PRINCIPAL
FUND OWNERSHIP AMOUNT
---- ---------- ----------
Commodity Strategy............ 8.20% $2,050,000
Commodity Strategy Subsidiary. 2.48 620,000
As of such date, the repurchase agreement in that joint account and the
collateral thereof were as follows:
Barclays Capital, Inc., dated October 31, 2019, bearing interest at a rate
of 1.72% per annum, with a principal amount of $25,000,000, a repurchase
price of $25,001,194, and a maturity date of November 1, 2019. The
repurchase agreement is collateralized by the following:
INTEREST MATURITY PRINCIPAL
TYPE OF COLLATERAL RATE DATE AMOUNT VALUE
------------------ -------- ---------- ----------- -----------
U.S. Treasury Bonds. 3.00% 11/15/2045 $21,749,000 $25,576,172
As of October 31, 2019, the following Funds held an undivided interest in
the joint repurchase agreement with BNP Paribas SA:
PERCENTAGE PRINCIPAL
FUND OWNERSHIP AMOUNT
---- ---------- ----------
Commodity Strategy............ 8.20% $1,640,000
Commodity Strategy Subsidiary. 2.48 495,000
As of such date, the repurchase agreement in that joint account and the
collateral thereof were as follows:
BNP Paribas SA, dated October 31, 2019, bearing interest at a rate of 1.72%
per annum, with a principal amount of 20,000,000, a repurchase price of
$20,000,956, and a maturity date of November 1, 2019. The repurchase
agreement is collateralized by the following:
INTEREST MATURITY PRINCIPAL
TYPE OF COLLATERAL RATE DATE AMOUNT VALUE
------------------ -------- ---------- ----------- -----------
U.S. Treasury Notes. 1.88% 05/31/2022 $20,117,700 $20,399,008
As of October 31, 2019, the following Funds held an undivided interest in
the joint repurchase agreement with Deutsche Bank AG:
PERCENTAGE PRINCIPAL
FUND OWNERSHIP AMOUNT
---- ---------- ----------
Commodity Strategy............ 8.25% $2,935,000
Commodity Strategy Subsidiary. 2.50 890,000
76
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
As of such date, the repurchase agreement in that joint account and the
collateral thereof were as follows:
Deutsche Bank AG, dated October 31, 2019, bearing interest at a rate of
1.72% per annum, with a principal amount of $35,585,000, a repurchase price
of $35,586,700 and a maturity date of November 1, 2019. The repurchase
agreement is collateralized by the following:
INTEREST MATURITY PRINCIPAL
TYPE OF COLLATERAL RATE DATE AMOUNT VALUE
------------------ -------- ---------- ----------- -----------
U.S. Treasury Notes. 2.13% 09/30/2021 $35,943,000 $36,314,452
As of October 31, 2019, the following Funds held an undivided interest in
the joint repurchase agreement with RBS Securities, Inc.:
PERCENTAGE PRINCIPAL
FUND OWNERSHIP AMOUNT
---- ---------- ----------
Commodity Strategy............ 8.20% $2,870,000
Commodity Strategy Subsidiary. 2.47 865,000
As of such date, the repurchase agreement in that joint account and the
collateral thereof were as follows:
RBS Securities, Inc., dated October 31, 2019, bearing interest at a rate of
1.71% per annum, with a principal amount of $35,000,000, a repurchase price
of $35,001,663, and a maturity date of November 1, 2019. The repurchase
agreement is collateralized by the following:
INTEREST MATURITY PRINCIPAL
TYPE OF COLLATERAL RATE DATE AMOUNT VALUE
------------------ -------- ---------- ----------- -----------
U.S. Treasury Notes. 1.50% 08/15/2026 $36,080,000 $35,698,611
SECURITIES TRANSACTIONS, INVESTMENT INCOME, EXPENSES, DIVIDENDS AND
DISTRIBUTIONS TO SHAREHOLDERS: Securities transactions are recorded on a
trade date basis. Realized gains and losses on sales of investments are
calculated on the identified cost basis.
Interest income is accrued daily from settlement date except when collection
is not expected. For financial statement purposes, the Funds amortize all
premiums and accrete all discounts on fixed income securities. Dividend
income is recorded on the ex-dividend date except for certain dividends from
foreign securities, which are recorded as soon as the Trust is informed
after the ex-dividend date.
Securities purchased or sold on a when-issued or forward commitment basis
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.
Distributions received from Real Estate Investment Trusts ("REIT")
investments are recharacterized based on information provided by the REIT
into the following categories: ordinary income, long-term and short-term
capital gains and return of capital. If information is not available on a
timely basis from the REIT, the recharacterization will be based on
available information which may include the previous year's allocation. If
new or additional information becomes available from the REIT at a later
date, a recharacterization will be made in the following year. The amount
recharacterized as ordinary income is recorded as dividend income and the
amount recharacterized as capital gain is recorded as realized gain in the
Statement of Operations. The amount recharacterized as return of capital is
recorded as a reduction to the cost of investments in the Statement of
Assets and Liabilities. These recharacterizations are reflected in the
accompanying financial statements.
Expenses common to all Funds are allocated among the Funds based on relative
net assets or other appropriate methods. In all other respects, expenses are
charged to each Fund as incurred on a specific identification basis.
Income, expenses other than class specific expenses, and realized and
unrealized gains and losses are allocated daily to each class of shares
based upon the relative value of outstanding shares of each class of shares
at the beginning of the day (after adjusting for the current capital share
activity of the respective class).
77
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
Dividends from net investment income, if any, are normally paid monthly for
the Income Explorer Fund and quarterly for the ESG Dividend Fund. All other
Funds pay annually. Each of the Funds reserves the right to declare and pay
dividends less frequently than disclosed above, provided that the net
realized capital gains and the net investment income, if any, are paid at
least annually. The Funds record dividends and distributions to their
shareholders on the ex-dividend date.
The amount of dividends and distributions from net investment income and net
realized capital gains are determined in accordance with federal income tax
regulations, which may differ from GAAP. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within
the capital accounts at fiscal year end based on their federal tax-basis
treatment; temporary differences do not require reclassification. Net assets
are not affected by these reclassifications.
Each Fund is considered a separate entity for tax purposes and intends to
comply with the requirements of the Internal Revenue Code, as amended,
applicable to regulated investment companies and distribute all of its
taxable income, including any net capital gains on investments, to its
shareholders. Each Fund also intends to distribute sufficient net investment
income and net capital gains, if any, so that each Fund will not be subject
to excise tax on undistributed income and gains. Therefore, no federal
income tax or excise tax provision is required.
Each Fund recognizes the tax benefits of uncertain tax positions only when
the position is more likely than not to be sustained, assuming examination
by tax authorities. Management has analyzed each Fund's tax positions and
concluded that no liability for unrecognized tax benefits should be recorded
related to uncertain tax positions taken on returns filed for open tax years
2015 -2018 or expected to be taken in each Funds' 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 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.
In March 2017, the FASB issued Accounting Standards Update ("ASU") No.
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 and
is effective for fiscal years, and interim periods within those fiscal
years, beginning after December 15, 2018. Management is currently evaluating
the amendments and their impact, if any, on the Funds' financial statements.
78
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
Note 4. Investment Advisory and Management Agreements, Distribution and Service
Agreements
The Trust, on behalf of each Fund, has entered into Investment Advisory and
Management Agreements (the "Agreements") with SunAmerica. Under the
Agreements, SunAmerica provides continuous supervision of each Fund's
portfolio and administrative affairs, subject to general review by the
Board. In connection therewith, SunAmerica furnishes the Funds with office
facilities, maintains certain of the Funds' books and records, pays the
salaries and expenses of all personnel, including officers of the Funds who
are employees of SunAmerica and its affiliates and oversees the performance
of services provided to the Funds by third parties. Pursuant to the
Agreements, the Funds pay SunAmerica a management fee at an annual rate
based on average daily net assets, which is computed daily and payable
monthly, as follows:
FUND PERCENTAGE
---- ----------
Commodity Strategy...... 1.00%
ESG Dividend............ 0.75
Focused Alpha Large-Cap. 1.00
Focused Growth.......... 1.00
Income Explorer......... 1.00
Small-Cap............... 1.00
The Commodity Strategy Subsidiary has entered into a separate contract with
SunAmerica whereby SunAmerica provides investment advisory and other
services to the Commodity Strategy Subsidiary. In consideration of these
services, the Commodity Strategy Subsidiary pays SunAmerica a management fee
at the annual rate of 1.00% of average daily net assets of the Commodity
Strategy Subsidiary. SunAmerica has contractually agreed to waive the
management fee it receives from the Commodity Strategy Fund in an amount
equal to the management fee paid by the Commodity Strategy Subsidiary to
SunAmerica (the "Commodity Strategy Subsidiary management fee waiver"). This
waiver may not be terminated by SunAmerica, and will remain in effect for as
long as SunAmerica's contract with the Commodity Strategy Subsidiary is in
place. For the year ended October 31, 2019, the amount of advisory fees
waived was $67,191.
Pursuant to the Subadvisory Agreement between SunAmerica and Wellington
Management Company LLP ("Wellington") (the "Commodity Strategy Subadvisory
Agreement"), SunAmerica has delegated portfolio management responsibilities
of the Commodity Strategy Fund to Wellington. Pursuant to a Subadvisory
Agreement between SunAmerica and Wellington with respect to the Commodity
Strategy Subsidiary, SunAmerica has delegated portfolio management
responsibilities of the Commodity Strategy Subsidiary to Wellington.
Payments to Wellington for its services are made by SunAmerica, not by the
Fund.
Pursuant to the Subadvisory Agreement between SunAmerica and Marsico Capital
Management, LLC ("Marsico") and the Subadvisory Agreement between SunAmerica
and Blackrock Investment Management, LLC ("Blackrock"), SunAmerica has
delegated portfolio management responsibilities of the Focused Alpha
Large-Cap Fund to Marsico and Blackrock. Each Subadviser is paid by
SunAmerica and not the Fund.
Pursuant to the Subadvisory Agreement between SunAmerica and Marsico, and
the Subadvisory Agreement between SunAmerica and BAMCO, Inc. ("BAMCO"),
SunAmerica has delegated portfolio management responsibilities of the
Focused Growth Fund to Marsico and BAMCO. Each subadviser is paid by
SunAmerica and not the Fund.
Pursuant to the Subadvisory Agreement between SunAmerica and Cohen & Steers
Capital Management, Inc. ("Cohen & Steers"), SunAmerica has delegated a
portion of portfolio management responsibilities of the Income Explorer Fund
to Cohen & Steers. Cohen and Steers is paid by SunAmerica and not by the
Fund.
Pursuant to the Subadvisory Agreement between SunAmerica and Cadence Capital
Management, LLC ("Cadence"), SunAmerica has delegated a portion of portfolio
management responsibilities of the Small-Cap Fund to Cadence. Cadence is
paid by SunAmerica and not by the Fund.
Effective November 19, 2018, pursuant to an Advisory Fee Wavier Agreement
with the Focused Growth Fund and the Small-Cap Fund, SunAmerica is
contractually obligated to waive its advisory fee so that the advisory fee
equals 0.90% and 0.85%, respectively, of average daily net assets of each of
the Funds. For the year ended October 31, 2019, the amount of advisory fees
waived for the Focused Growth Fund and Small-Cap Fund was $561,782 and
$76,754, respectively.
79
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
SunAmerica has contractually agreed to waive fees and/or reimburse expenses
to the extent necessary to cap the Funds' annual Fund operating expense at
the following percentages of each Class's average daily net assets. For the
purposes of waived fee and/or reimbursed expense calculations, annual Fund
operating expenses shall not include extraordinary expenses (i.e., expenses
that 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
expense fee waivers and expense reimbursements will continue in effect
indefinitely, unless terminated by the Trustees, including a majority of the
Disinterested Trustees.
FUND PERCENTAGE
---- ----------
Commodity Strategy Class A#..... 1.72%
Commodity Strategy Class C#..... 2.37
Commodity Strategy Class W#..... 1.52
ESG Dividend Class A(1)......... 1.13
ESG Dividend Class C(1)......... 1.78
ESG Dividend Class W(1)......... 0.93
Focused Alpha Large-Cap Class A. 1.72
Focused Alpha Large-Cap Class C. 2.37
Focused Alpha Large-Cap Class W. 1.52
Focused Growth Class A(2)....... 1.13
Focused Growth Class C(2)....... 1.78
Focused Growth Class W(2)....... 0.93
Income Explorer Class A......... 1.72
Income Explorer Class C......... 2.37
Income Explorer Class W......... 1.52
Small-Cap Class A(3)............ 1.25
Small-Cap Class C(3)............ 1.90
Small-Cap Class W(3)............ 1.05
--------
# Consolidated (see Note 2)
(1)Effective November 19, 2018, the expense limitation for Class A, C and W
changed from 1.25%, 1.90%, and 1.05% to 1.13%, 1.78% and 0.93%, respectively.
(2)Effective November 19, 2018, the expense limitation for Class A, C and W
changed from 1.72%, 2.37%, and 1.52% to 1.13%, 1.78% and 0.93%, respectively.
(3)Effective November 19, 2018, the expense limitation for Class A, C and W
changed from 1.72%, 2.37%, and 1.52% to 1.25%, 1.90% and 1.05%, respectively.
Any contractual waivers and/or reimbursements made by SunAmerica with
respect to a Fund, with the exception of the Advisory Fee and Subsidiary
management fee waivers, are subject to recoupment from the Funds within two
years after the occurrence of any such waivers and/or reimbursements,
provided that the Funds are able to effect such payment to SunAmerica and
remain in compliance with the expense limitations in effect at the time the
waivers and/or reimbursements were made.
For the year ended October 31, 2019, pursuant to the contractual expense
limitations referred above, SunAmerica has waived or reimbursed expenses as
follows:
OTHER
EXPENSES
FUND REIMBURSED
---- ----------
Commodity Strategy...... $ 194,012
ESG Dividend............ 144,525
Focused Alpha Large-Cap. --
Focused Growth.......... 1,010,634
Income Explorer......... 67,581
Small-Cap............... 213,197
CLASS SPECIFIC
EXPENSES
FUND REIMBURSED
---- --------------
Commodity Strategy Class A. $91,964
Commodity Strategy Class C. 17,581
80
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
CLASS SPECIFIC
EXPENSES
FUND REIMBURSED
---- --------------
Commodity Strategy Class W...... $ 17,219
ESG Dividend Class A............ 66,884
ESG Dividend Class C............ 12,051
ESG Dividend Class W............ 28,425
Focused Alpha Large-Cap Class A. --
Focused Alpha Large-Cap Class C. 5,763
Focused Alpha Large-Cap Class W. 8,921
Focused Growth Class A.......... 1,143,417
Focused Growth Class C.......... 152,360
Focused Growth Class W.......... 151,927
Income Explorer Class A......... 98,793
Income Explorer Class C......... 22,451
Income Explorer Class W......... 26,877
Small-Cap Class A............... 124,303
Small-Cap Class C............... 20,445
Small-Cap Class W............... 35,892
For the year ended October 31, 2019, the amounts recouped by SunAmerica are
as follows:
CLASS SPECIFIC
EXPENSES
FUND RECOUPED
---- --------------
Commodity Strategy Class A...... $ --
Commodity Strategy Class C...... --
Commodity Strategy Class W...... --
ESG Dividend Class A............ --
ESG Dividend Class C............ --
ESG Dividend Class W............ --
Focused Alpha Large-Cap Class A. --
Focused Alpha Large-Cap Class C. 5,763
Focused Alpha Large-Cap Class W. 10,014
Focused Growth Class A.......... --
Focused Growth Class C.......... --
Focused Growth Class W.......... --
Income Explorer Class A......... --
Income Explorer Class C......... --
Income Explorer Class W......... --
Small-Cap Class A............... --
Small-Cap Class C............... --
Small-Cap Class W............... --
At October 31, 2019, expenses previously waived and/or reimbursed by
SunAmerica that are subject to recoupment and expire during the time periods
indicated are as follows:
OTHER EXPENSES REIMBURSED
-------------------------
OCTOBER 31, OCTOBER 31,
FUND 2020 2021
---- ----------- -----------
Commodity Strategy...... $146,594 $ 194,012
ESG Dividend............ 124,777 144,525
Focused Alpha Large-Cap. -- --
Focused Growth.......... -- 1,010,634
Income Explorer......... 8,159 67,581
Small-Cap............... 22,722 213,197
81
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
CLASS SPECIFIC EXPENSES
REIMBURSED
-----------------------
OCTOBER 31, OCTOBER 31,
FUND 2020 2021
---- ----------- -----------
Commodity Strategy Class A...... $89,901 $ 91,964
Commodity Strategy Class C...... 20,550 17,581
Commodity Strategy Class W...... 18,668 17,219
ESG Dividend Class A............ 58,848 66,884
ESG Dividend Class C............ 9,338 12,051
ESG Dividend Class W............ 15,719 28,425
Focused Alpha Large-Cap Class A. -- --
Focused Alpha Large-Cap Class C. -- --
Focused Alpha Large-Cap Class W. -- 4,265
Focused Growth Class A.......... -- 1,143,417
Focused Growth Class C.......... -- 152,360
Focused Growth Class W.......... -- 151,927
Income Explorer Class A......... 94,645 98,793
Income Explorer Class C......... 26,340 22,451
Income Explorer Class W......... 28,900 26,877
Small-Cap Class A............... 98,881 124,303
Small-Cap Class C............... 18,191 20,445
Small-Cap Class W............... 41,848 35,892
The Trust, on behalf of each Fund, has a Distribution Agreement with AIG
Capital Services, Inc. ("ACS" or the "Distributor"), an affiliate of the
Adviser. Each Fund has adopted a Distribution Plan on behalf of its Class A
shares and Class C shares (each a "Plan" and collectively, the "Plans") in
accordance with the provisions of Rule 12b-1 under the 1940 Act, hereinafter
referred to as the "Class A Plan" and the "Class C Plan." In adopting the
Plans, the Trustees determined that there was a reasonable likelihood that
each such Plan would benefit the Fund and the shareholders of the respective
class. The sales charge and distribution fees of a particular class will not
be used to subsidize the sale of shares of any other class.
Under the Class A Plan and Class C Plan, the Distributor receives payments
from a Fund at an annual rate of 0.10% and 0.75%, respectively, of average
daily net assets of such Fund's Class to compensate the Distributor and
certain securities firms for providing sales and promotional activities for
distributing that class of shares. The distribution costs for which the
Distributor may be compensated include fees paid to broker-dealers that have
sold Fund shares, commissions and other expenses such as those incurred for
sales literature, prospectus printing and distribution and compensation to
wholesalers. It is possible that in any given year, the amount paid to the
Distributor under each Plan may exceed the Distributor's distribution costs
as described above. The Plans further provide that the Class A and Class C
shares of each Fund shall pay the Distributor an account maintenance fee up
to an annual rate of 0.25% of the average daily net assets of such class of
shares for payments to broker-dealers for providing account maintenance
activities. The Distributor does not receive or retain any distribution
and/or a account maintenance fees for any shares when the shareholder does
not have a broker of record. For the year ended October 31, 2019, ACS
received fees based upon the aforementioned rates (see Statement of
Operations).
The Trust, on behalf of each fund, has entered into an Administrative and
Shareholder Services Agreement with ACS, pursuant to which ACS is paid an
annual fee of 0.15% of average daily net assets of Class W shares as
compensation for providing administrative and shareholder services to Class
W shareholders. For the year ended October 31, 2019, ACS earned fees based
upon the aforementioned rates (see Statement of Operations).
ACS receives sales charges on each Fund's Class A shares, portions of which
are reallocated to affiliated broker-dealers and nonaffiliated
broker-dealers. ACS also receives the proceeds of contingent deferred sales
charges paid by investors in connection
82
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
with certain redemptions of each Fund's Class A and Class C shares. ACS has
advised the Funds that for the year ended October 31, 2019, the proceeds
received from sales (and paid out to affiliated and non-affiliated
broker-dealers) and redemptions are as follows:
CLASS A CLASS C
---------------------------------------------------- -------------
CONTINGENT CONTINGENT
SALES AFFILIATED NON-AFFILIATED DEFERRED DEFERRED
FUND CHARGES BROKER-DEALERS BROKER-DEALERS SALES CHARGES SALES CHARGES
---- -------- -------------- -------------- ------------- -------------
Commodity Strategy.................................. $ 3,156 $ 901 $ 1,817 $ 17 $ 53
ESG Dividend........................................ 13,998 305 12,062 -- --
Focused Alpha Large-Cap............................. 313,061 75,696 188,433 2,281 1,207
Focused Growth...................................... 570,673 152,053 328,824 8,969 5,994
Income Explorer..................................... 26,289 10,227 11,383 -- 118
Small-Cap........................................... 40,668 11,237 22,763 805 1,460
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. Pursuant
to the Service Agreement, the Funds pay a fee to AFS for services rendered
based upon an annual rate of 0.22% of daily net assets. For the year ended
October 31, 2019, the Funds incurred the following expenses which are
included in transfer agent fees payable in the Statement of Assets and
Liabilities and in transfer agent fees and expenses in the Statement of
Operations, to compensate AFS pursuant to the terms of the Service Agreement.
PAYABLE AT
FUND EXPENSES OCTOBER 31, 2019
---- ---------- ----------------
Commodity Strategy Class A.......................... $ 67,040 $ 5,306
Commodity Strategy Class C.......................... 3,291 202
Commodity Strategy Class W.......................... 3,269 293
ESG Dividend Class A................................ 47,697 3,716
ESG Dividend Class C................................ 1,920 187
ESG Dividend Class W................................ 13,930 1,623
Focused Alpha Large-Cap Class A..................... 1,248,144 99,445
Focused Alpha Large-Cap Class C..................... 77,961 6,392
Focused Alpha Large-Cap Class W..................... 43,534 4,235
Focused Growth Class A.............................. 1,032,278 78,272
Focused Growth Class C.............................. 132,738 9,778
Focused Growth Class W.............................. 136,303 9,235
Income Explorer Class A............................. 83,108 6,340
Income Explorer Class C............................. 8,423 672
Income Explorer Class W............................. 12,667 840
Small-Cap Class A................................... 97,445 6,528
Small-Cap Class C................................... 7,267 466
Small-Cap Class W................................... 15,243 1,138
At October 31, 2019, SunAmerica Series, Inc. AIG Active Allocation Fund and
AIG Multi-Asset Allocation Fund ("Strategy Funds"), affiliates of the
Adviser owned 5% or more of the outstanding shares of the following Funds:
HOLDER
------------------------------
AIG ACTIVE AIG MULTI-ASSET
FUND ALLOCATION FUND ALLOCATION FUND
---- --------------- ---------------
Commodity Strategy.................................. 13.22% 64.11%
ESG Dividend........................................ 12.37 50.38
Income Explorer..................................... 7.43 53.72
Small-Cap........................................... 10.88 48.07
83
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
The Strategy Portfolios do not invest in the underlying funds for the
purpose of exercising management or control; however, investments by these
Portfolios within the set limits across their asset allocations may
represent a significant portion of net assets of the underlying funds.
Note 5. Purchases and Sales of Investment Securities
The cost of purchases and proceeds from sales and maturities of long-term
investments during the year ended October 31, 2019 were as follows:
PURCHASES SALES
OF PORTFOLIO OF PORTFOLIO
SECURITIES SECURITIES PURCHASES SALES
(EXCLUDING U.S. (EXCLUDING U.S. OF U.S. OF U.S.
GOVERNMENT GOVERNMENT GOVERNMENT GOVERNMENT
FUND SECURITIES) SECURITIES) SECURITIES SECURITIES
---- --------------- --------------- ---------- ----------
Commodity Strategy........ $ 154,357 $ 23,898 $1,898,890 $2,300,000
ESG Dividend.............. 19,381,924 14,559,387 -- --
Focused Alpha Large-Cap... 574,647,352 616,167,380 -- --
Focused Growth............ 526,963,757 593,910,535 -- --
Income Explorer........... 14,291,495 28,694,242 -- --
Small-Cap................. 33,597,835 48,826,343 -- --
Note 6. Federal Income Taxes
The following details the tax basis distributions as well as the components
of distributable earnings. The tax basis components of distributable
earnings differ from the amounts reflected in the Statement of Assets and
Liabilities by temporary book/tax differences primarily due to taxable
income from wholly owned foreign subsidiary, wash sales and derivative
transactions.
DISTRIBUTABLE EARNINGS TAX DISTRIBUTIONS
-------------------------------------- ------------------------
FOR THE YEAR ENDED OCTOBER 31, 2019
----------------------------------------------------------------
LONG-TERM UNREALIZED
ORDINARY GAINS/CAPITAL APPRECIATION ORDINARY LONG-TERM
FUND INCOME LOSS CARRYOVER (DEPRECIATION)* INCOME CAPITAL GAINS
---- -------- -------------- --------------- ---------- -------------
Commodity Strategy#....... $215,597 $(83,769,459) $(14,637,871) $ 25,732 $ --
ESG Dividend.............. 74,444 (140) 434,550 924,736 1,650,859
Focused Alpha Large-Cap... 78,218 64,027,070 107,111,568 -- 104,688,935
Focused Growth............ -- 54,731,418 104,761,790 -- 122,154,493
Income Explorer........... 16,836 (542,807) 465,301 2,279,752 435,289
Small-Cap................. -- 1,039,423 2,167,007 260,473 5,996,624
--------
* Unrealized appreciation (depreciation) includes amounts for derivatives and
other assets and liabilities denominated in foreign currency.
# Consolidated (see Note 2)
TAX DISTRIBUTIONS
------------------------------
FOR THE YEAR ENDED OCTOBER 31,
2018
------------------------------
ORDINARY LONG-TERM
FUND INCOME CAPITAL GAINS
---- ----------- -------------
Commodity Strategy...... $ 67,054 $ --
ESG Dividend............ 981,132 --
Focused Alpha Large-Cap. 13,732,012 40,937,135
Focused Growth.......... -- 49,277,386
Income Explorer......... 2,147,477 33,238
Small-Cap............... 1,857,529 3,935,160
84
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
As of October 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
---- ----------- -----------
Commodity Strategy#.................................... $51,868,782 $31,900,677
ESG Dividend........................................... -- 140
Focused Alpha Large-Cap................................ -- --
Focused Growth......................................... -- --
Income Explorer........................................ 171,104 371,703
Small-Cap.............................................. -- --
Under the current tax law, late year ordinary losses may be deferred and
treated as occurring on the first day of the following year. For the fiscal
year ended October 31, 2019 the Funds elected to defer late year ordinary
losses as follows:
DEFERRED
LATE YEAR
FUND ORDINARY LOSS
---- -------------
Commodity Strategy#.............................................. $ --
ESG Dividend..................................................... --
Focused Alpha Large-Cap.......................................... --
Focused Growth................................................... 2,983,148
Income Explorer.................................................. --
Small-Cap........................................................ --
--------
# Consolidated (see Note 2)
For the period ended October 31, 2019, the reclassifications arising from
book/tax differences resulted in increases (decreases) that were due to
deconsolidation adjustments of the wholly owned foreign subsidiaries,
derivative transactions, net investment losses, treatment of foreign
currency, and nondeductible expenses to the components of net assets as
follows:
ACCUMULATED ACCUMULATED
UNDISTRIBUTED UNDISTRIBUTED NET
NET INVESTMENT REALIZED GAIN
FUND INCOME (LOSS) (LOSS) CAPITAL PAID-IN
---- -------------- ----------------- ---------------
Commodity Strategy...... $ 40,724 $ 3,598,811 $(3,639,535)
ESG Dividend............ (11) 11 --
Focused Alpha Large-Cap. 1,949,806 (1,949,806) --
Focused Growth.......... 6,413,504 (8,140) (6,405,364)
Income Explorer......... 60,160 (60,160) --
Small-Cap............... 239,830 (18,209) (221,621)
At October 31, 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:
NET
AGGREGATE AGGREGATE UNREALIZED
UNREALIZED UNREALIZED GAIN/ COST OF
FUND GAIN LOSS (LOSS) INVESTMENTS
---- ------------ ------------ ----------- ------------
Commodity Strategy#..... $ 673,486 $(15,628,664) (14,955,178) $ 48,252,635
ESG Dividend............ 2,853,859 (2,419,309) 434,550 30,424,916
Focused Alpha Large-Cap. 117,579,312 (10,467,744) 107,111,568 513,742,706
Focused Growth.......... 113,871,749 (9,109,959) 104,761,790 437,190,731
Income Explorer......... 554,506 (92,860) 461,646 42,069,150
Small-Cap............... 7,197,004 (5,029,997) 2,167,007 43,132,422
--------
# Consolidated (see Note 2)
85
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
Note 7. Capital Share Transactions
Transactions in capital shares of each class of each Fund were as follows:
COMMODITY STRATEGY FUND#
----------------------------------------------------------------------------------------------
CLASS A CLASS A CLASS C CLASS C
- --------------------- ------------------------ --------------------- ----------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, 2019 OCTOBER 31, 2018 OCTOBER 31, 2019 OCTOBER 31, 2018
--------------------- ------------------------ --------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------- ----------- ---------- ------------ -------- ----------- -------- ------------
Shares sold................ 744,193 $ 4,923,330 1,619,670 $ 11,880,945 11,429 $ 72,103 9,163 $ 63,895
Reinvested shares.......... 3,240 21,807 8,624 59,854 -- -- -- --
Shares redeemed............ (925,463) (6,056,798) (1,799,912) (13,083,452) (125,105) (783,222) (92,784) (640,264)
-------- ----------- ---------- ------------ -------- ----------- -------- ------------
Net increase (decrease) in
shares outstanding before
automatic conversion...... (178,030) (1,111,661) (171,618) (1,142,653) (113,676) (711,119) (83,621) (576,369)
Shares issued/(reacquired)
upon automatic
conversion................ 7,901 51,136 25,904 186,179 (8,303) (51,136) (26,994) (186,179)
-------- ----------- ---------- ------------ -------- ----------- -------- ------------
Net increase (decrease).... (170,129) $(1,059,525) (145,714) $ (956,474) (121,979) $ (763,255) (110,615) $ (762,548)
======== =========== ========== ============ ======== =========== ======== ============
COMMODITY STRATEGY FUND#
-----------------------------------------------
CLASS W CLASS W
--------------------- ------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
OCTOBER 31, 2019 OCTOBER 31, 2018
--------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- ---------- ------------
Shares sold................ 127,061 $ 850,819 155,952 $ 1,145,736
Reinvested shares.......... 478 3,253 752 5,282
Shares redeemed............ (152,650) (1,030,981) (115,167) (830,352)
-------- ----------- ---------- ------------
Net increase (decrease).... (25,111) $ (176,909) 41,537 $ 320,666
======== =========== ========== ============
--------
# Consolidated (see Note 2)
86
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
ESG DIVIDEND FUND
---------------------------------------------------------------------------------------------------
CLASS A CLASS A CLASS C CLASS C
------------------------ ------------------------ --------------------- ------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, 2019 OCTOBER 31, 2018 OCTOBER 31, 2019 OCTOBER 31, 2018
------------------------ ------------------------ --------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------ --------- ----------- ---------- ------------
Shares sold................ 212,418 $ 2,936,076 68,182 $ 1,095,499 44,290 $ 601,260 891 $ 14,266
Reinvested shares.......... 149,957 2,162,528 57,756 925,918 2,866 41,372 626 10,032
Shares redeemed............ (413,727) (6,051,867) (254,921) (4,118,199) (3,122) (45,215) (542) (8,876)
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Net increase (decrease).... (51,352) $ (953,263) (128,983) $ (2,096,782) 44,034 $ 597,417 975 $ 15,422
========== ============ ========== ============ ======== =========== ========== ============
ESG DIVIDEND FUND
--------------------------------------------------
CLASS W CLASS W
------------------------ ------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
OCTOBER 31, 2019 OCTOBER 31, 2018
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
Shares sold................ 516,899 $ 7,556,893 143,398 $ 2,304,995
Reinvested shares.......... 25,200 365,215 2,754 44,202
Shares redeemed............ (92,826) (1,338,906) (11,129) (181,843)
---------- ------------ ---------- ------------
Net increase (decrease).... 449,273 $ 6,583,202 135,023 $ 2,167,354
========== ============ ========== ============
FOCUSED ALPHA LARGE-CAP FUND
---------------------------------------------------------------------------------------------------
CLASS A CLASS A CLASS C CLASS C
------------------------ ------------------------ --------------------- ------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, 2019 OCTOBER 31, 2018 OCTOBER 31, 2019 OCTOBER 31, 2018
------------------------ ------------------------ --------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------ --------- ----------- ---------- ------------
Shares sold................ 788,384 $ 21,185,928 2,397,357 $ 72,821,938 298,457 $ 7,277,088 197,254 $ 5,928,549
Reinvested shares.......... 3,597,827 90,593,272 1,354,077 40,527,524 243,728 5,754,416 354,695 10,137,186
Shares redeemed............ (2,673,521) (73,772,251) (2,390,171) (75,811,620) (391,153) (9,890,641) (2,173,937) (62,389,813)
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Net increase (decrease) in
shares outstanding before
automatic conversion...... 1,712,690 38,006,949 1,361,263 37,537,842 151,032 3,140,863 (1,621,988) (46,324,078)
Shares issued/(reacquired)
upon automatic
conversion................ 39,916 1,127,361 996,516 31,069,723 (42,633) (1,127,361) (1,045,543) (31,069,723)
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Net increase (decrease).... 1,752,606 $ 39,134,310 2,357,779 $ 68,607,565 108,399 $ 2,013,502 (2,667,531) $(77,393,801)
========== ============ ========== ============ ======== =========== ========== ============
FOCUSED ALPHA LARGE-CAP FUND
--------------------------------------------------
CLASS W CLASS W
------------------------ ------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
OCTOBER 31, 2019 OCTOBER 31, 2018
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
Shares sold................ 318,807 $ 9,137,453 386,088 $ 12,455,918
Reinvested shares.......... 117,540 3,007,853 31,057 941,329
Shares redeemed............ (278,699) (7,761,212) (257,008) (8,197,909)
---------- ------------ ---------- ------------
Net increase (decrease).... 157,648 $ 4,384,094 160,137 $ 5,199,338
========== ============ ========== ============
87
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
FOCUSED GROWTH FUND*
------------------------------------------------------------------------------
CLASS A CLASS A CLASS C
------------------------ ------------------------ ----------------------
FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, 2019 OCTOBER 31, 2018 OCTOBER 31, 2019
------------------------ ------------------------ ----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------ --------- ------------
Shares sold................ 1,222,201 $ 30,798,053 2,711,467 $ 86,165,054 318,215 $ 7,362,172
Reinvested shares.......... 3,675,722 87,813,005 1,188,572 34,884,590 572,895 12,764,097
Shares redeemed............ (3,546,402) (90,930,305) (2,720,684) (85,784,825) (981,090) (22,907,904)
---------- ------------ ---------- ------------ -------- ------------
Net increase (decrease) in
shares outstanding
before automatic
conversion................ 1,351,521 27,680,753 1,179,355 35,264,819 (89,980) (2,781,635)
Shares issued/(reacquired)
upon automatic
conversion................ 46,641 1,276,839 472,031 15,105,961 (50,118) (1,276,839)
---------- ------------ ---------- ------------ -------- ------------
Net increase (decrease).... 1,398,162 $ 28,957,592 1,651,386 $ 50,370,780 (140,098) $ (4,058,474)
========== ============ ========== ============ ======== ============
FOCUSED GROWTH FUND
--------------------------------------------------
CLASS W CLASS W
------------------------ ------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
OCTOBER 31, 2019 OCTOBER 31, 2018
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
Shares sold................ 997,214 $ 25,912,229 1,821,788 $ 59,225,727
Reinvested shares.......... 558,388 13,607,909 92,850 2,762,282
Shares redeemed............ (2,203,896) (57,152,413) (860,667) (27,340,408)
---------- ------------ ---------- ------------
Net increase (decrease).... (648,294) $(17,632,275) 1,053,971 $ 34,647,601
========== ============ ========== ============
*See Note 1
INCOME EXPLORER FUND
------------------------------------------------------------------------------
CLASS A CLASS A CLASS C
------------------------ ------------------------ ----------------------
FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, 2019 OCTOBER 31, 2018 OCTOBER 31, 2019
------------------------ ------------------------ ----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------ --------- ------------
Shares sold................ 135,064 $ 2,031,486 1,762,469 $ 27,485,149 12,751 $ 191,162
Reinvested shares.......... 147,350 2,168,866 108,056 1,674,221 12,393 181,811
Shares redeemed............ (1,045,118) (15,474,668) (856,460) (13,378,396) (92,783) (1,356,710)
---------- ------------ ---------- ------------ -------- ------------
Net increase (decrease) in
shares outstanding
before automatic
conversion................ (762,704) (11,274,316) 1,014,065 15,780,974 (67,639) (983,737)
Shares issued/(reacquired)
upon automatic
conversion................ 313 4,655 25,853 406,919 (314) (4,655)
---------- ------------ ---------- ------------ -------- ------------
Net increase (decrease).... (762,391) $(11,269,661) 1,039,918 $ 16,187,893 (67,953) $ (988,392)
========== ============ ========== ============ ======== ============
----------------------
CLASS C
------------------------
FOR THE
YEAR ENDED
OCTOBER 31, 2018
------------------------
SHARES AMOUNT
---------- ------------
Shares sold................ 714,635 $ 21,892,758
Reinvested shares.......... 261,228 7,301,311
Shares redeemed............ (1,117,708) (33,215,494)
---------- ------------
Net increase (decrease) in
shares outstanding
before automatic
conversion................ (141,845) (4,021,425)
Shares issued/(reacquired)
upon automatic
conversion................ (496,621) (15,105,961)
---------- ------------
Net increase (decrease).... (638,466) $(19,127,386)
========== ============
Shares sold................
Reinvested shares..........
Shares redeemed............
Net increase (decrease)....
*See Note 1
----------------------
CLASS C
------------------------
FOR THE
YEAR ENDED
OCTOBER 31, 2018
------------------------
SHARES AMOUNT
---------- ------------
Shares sold................ 105,523 $ 1,665,122
Reinvested shares.......... 11,735 182,186
Shares redeemed............ (106,259) (1,639,799)
---------- ------------
Net increase (decrease) in
shares outstanding
before automatic
conversion................ 10,999 207,509
Shares issued/(reacquired)
upon automatic
conversion................ (25,918) (406,919)
---------- ------------
Net increase (decrease).... (14,919) $ (199,410)
========== ============
88
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
INCOME EXPLORER FUND
-- ----------------------------------------------
CLASS W CLASS W
---------------------- ----------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
OCTOBER 31, 2019 OCTOBER 31, 2018
---------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT
-------- ------------ -------- ------------
Shares sold....................... 190,641 $ 2,861,249 283,191 $ 4,420,873
Reinvested shares................. 22,280 327,940 19,404 301,743
Shares redeemed................... (358,698) (5,389,895) (378,226) (5,959,900)
-------- ------------ -------- ------------
Net increase (decrease)........... (145,777) $ (2,200,706) (75,631) $ (1,237,284)
======== ============ ======== ============
SMALL-CAP FUND
---------------------------------------------------------------------------
CLASS A CLASS A CLASS C
---------------------- ---------------------- ----------------------
FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, 2019 OCTOBER 31, 2018 OCTOBER 31, 2019
---------------------- ---------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------- ------------ -------- ------------ --------- -----------
Shares sold....................... 240,834 $ 3,983,989 574,499 $ 11,192,104 113,637 $ 1,668,816
Reinvested shares................. 293,816 4,703,992 258,775 4,720,058 19,319 296,934
Shares redeemed................... (928,129) (15,253,977) (571,045) (11,339,452) (138,723) (2,191,269)
-------- ------------ -------- ------------ --------- -----------
Net increase (decrease) in shares
outstanding before automatic
conversion....................... (393,479) (6,565,996) 262,229 4,572,710 (5,767) (225,519)
Shares issued/(reacquired)
upon automatic conversion........ 203 3,424 6,468 122,891 (211) (3,424)
-------- ------------ -------- ------------ --------- -----------
Net increase (decrease)........... (393,276) $ (6,562,572) 268,697 $ 4,695,601 (5,978) $ (228,943)
======== ============ ======== ============ ========= ===========
SMALL-CAP FUND
----------------------------------------------
CLASS W CLASS W
---------------------- ----------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
OCTOBER 31, 2019 OCTOBER 31, 2018
---------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT
-------- ------------ -------- ------------
Shares sold....................... 243,488 $ 4,044,751 634,428 $ 12,521,968
Reinvested shares................. 73,950 1,198,001 44,203 812,888
Shares redeemed................... (835,445) (13,828,393) (207,190) (4,097,869)
-------- ------------ -------- ------------
Net increase (decrease)........... (518,007) $ (8,585,641) 471,441 $ 9,236,987
======== ============ ======== ============
--
Shares sold.......................
Reinvested shares.................
Shares redeemed...................
Net increase (decrease)...........
--------------------
CLASS C
-----------------------
FOR THE
YEAR ENDED
OCTOBER 31, 2018
-----------------------
SHARES AMOUNT
---------- -----------
Shares sold....................... 100,301 $ 1,942,803
Reinvested shares................. 11,540 204,147
Shares redeemed................... (34,652) (658,404)
---------- -----------
Net increase (decrease) in shares
outstanding before automatic
conversion....................... 77,189 1,488,546
Shares issued/(reacquired)
upon automatic conversion........ (6,677) (122,891)
---------- -----------
Net increase (decrease)........... 70,512 $ 1,365,655
========== ===========
Shares sold.......................
Reinvested shares.................
Shares redeemed...................
Net increase (decrease)...........
Note 8. Line of Credit
The Trust, along with certain other funds managed by the Adviser and
exclusive of the Commodity Strategy Fund, has access to a $75 million
committed unsecured line of credit and a $50 million uncommitted unsecured
line of credit. The Commodity Strategy Fund has access to a $10 million
committed secured line of credit. The committed and uncommitted lines of
credit are renewable on an annual basis with State Street Bank and Trust
Company ("State Street"), the Trust's custodian. Interest is currently
payable on the committed lines 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.
There is also a commitment fee of 25 basis points per annum on the daily
unused portion of the committed line of credit and an upfront fee of $25,000
on the uncommitted line of credit. Borrowings
89
SUNAMERICA SPECIALTY SERIES
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2019 -- (CONTINUED)
under the line of credit will commence when the respective Fund's cash
shortfall exceeds $100,000. For the year ended October 31, 2019, the
following Funds had borrowings:
AVERAGE WEIGHTED
DAYS INTEREST DEBT AVERAGE
FUND OUTSTANDING CHARGES UTILIZED INTEREST
---- ----------- -------- ---------- --------
ESG Dividend....................... 4 $ 720 $1,727,753 3.75%
Focused Alpha Large-Cap............ 25 1,030 379,444 3.63
Focused Growth..................... 154 13,657 741,409 3.64
Income Explorer.................... 68 1,381 206,086 3.68
Small Cap.......................... 31 1,030 329,400 3.49
At October 31, 2019, Focused Alpha Large-Cap and Focused Growth had
outstanding borrowings of $100,000 and $275,000, respectively.
Note 9. Expense Reductions
Through expense offset arrangements resulting from broker commission
recapture, a portion of the expenses of certain Funds have been reduced. For
the year ended October 31, 2019, the amount of expense reductions received
by each Fund used to offset non-affiliated expenses are reflected as Fees
paid indirectly in the Statement of Operations.
Note 10. Interfund Lending Agreement
Pursuant to the exemptive relief granted by the SEC, the Funds are permitted
to participate in an interfund lending program among investment companies
advised by SunAmerica or an affiliate. The interfund lending program allows
the participating Funds to borrow money from and lend money to each other
for temporary or emergency purposes. An interfund loan will be made under
this facility only if the participating Funds receive a more favorable
interest rate than would otherwise be available from a typical bank for a
comparable transaction.
For the period ended October 31, 2019, none of the Funds participated in
this program.
Note 11. Investment Concentration
Each Fund may invest in obligations issued by agencies and instrumentalities
of the U.S. Government that may vary in the level of support they receive
from the government. The government may choose not to provide financial
support to government sponsored agencies or instrumentalities if it is not
legally obligated to do so, and if the issuer defaults, a fund holding
securities of such issuer might not be able to recover its investment from
the U.S. Government. As a result of the Commodity Strategy Funds'
concentration in such investments, these funds may be subject to risks
associated with U.S. Government agencies or instrumentalities.
The Commodity Strategy Fund's exposure to the commodities markets may
subject the Fund to greater volatility than investments in traditional
securities. The value of commodity-linked derivative instruments may be
affected by changes in overall market movements, commodity index volatility,
changes in interest rates, or sectors affecting a particular industry or
commodity, such as drought, floods, weather, livestock disease, embargoes,
tariffs and international economic, political and regulatory developments.
Note 12. Security Transactions with Affiliated Portfolios
The Funds are permitted to transfer securities by purchasing from and/or
selling to other affiliated funds under certain conditions approved by the
Board of Trustees. The affiliated funds involved in such transactions must
have a common investment adviser or investment advisers which are affiliated
persons of each other, common Trustees, and/or common officers in compliance
with Rule 17a-7 of the 1940 Act. Pursuant to the Act, such a transaction
must be either a purchase or a sale, for no consideration other than cash
payment against prompt delivery of the security at the current market price.
No brokerage commission or fee (except for customary transfer fees), or
other remuneration is paid in connection with such transactions. For the
year ended October 31, 2019, none of the Funds engaged in security
transactions with affiliated Funds.
Note 13. Subsequent Event
At an in-person meeting held on September 17-18, 2019, the Board approved
certain changes to the principal investment strategies and techniques of the
Income Explorer Fund. These changes became effective on December 17, 2019
(the "Effective Date"). As of the Effective Date, the Fund seeks to achieve
its investment objectives by strategically allocating its assets among a
preferred securities enhanced index strategy, a rules-based real estate
investment trust strategy and a global dividend equity strategy. Also as of
the Effective Date, Cohen & Steers no longer is serving as subadviser to the
Fund, and SunAmerica assumed the day-to-day management of each strategy and
allocates the Fund's assets among the different strategies. Additionally, as
of the Effective Date, the Fund's Expense Limitation Agreement was revised
to waive fees and/or reimburse expenses so that the Total Annual Fund
Operating Expenses, as defined in such Agreement, do not exceed 1.55%, 2.20%
and 1.35% on Class A, C and W, respectively.
90
SUNAMERICA SPECIALTY SERIES
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of SunAmerica Specialty Series and Shareholders of
each of the six funds listed in the table below
OPINIONS ON THE FINANCIAL STATEMENTS
We have audited the financial statements and financial highlights of each of
the funds listed in the table below (constituting SunAmerica Specialty Series,
hereafter collectively referred to as the "Funds") as of the date listed in the
table below and for the periods listed in the table below (collectively
referred to as the "financial statements"). In our opinion, the financial
statements present fairly, in all material respects, the financial position of
each of the Funds as of the date listed in the table below, the results of each
of their operations, the changes in each of their net assets and each of the
financial highlights for each of the periods listed in the table below in
conformity with accounting principles generally accepted in the United States
of America.
------------------------------------------------------------------------
SUNAMERICA SPECIALTY SERIES
------------------------------------------------------------------------
AIG Commodity Strategy Fund(1)
------------------------------------------------------------------------
AIG ESG Dividend Fund(2)
------------------------------------------------------------------------
AIG Focused Alpha Large-Cap Fund(3)
------------------------------------------------------------------------
AIG Focused Growth Fund (formerly AIG Focused Multi-Cap Growth Fund)(3)
------------------------------------------------------------------------
AIG Income Explorer Fund(3)
------------------------------------------------------------------------
AIG Small-Cap Fund(3)
------------------------------------------------------------------------
(1)The consolidated statement of assets and liabilities, including the
consolidated portfolio of investments, as of October 31, 2019, the related
consolidated statement of operations for the year then ended, the statement
of changes in net assets for each of the two years in the period ended
October 31, 2019, including the related notes, and the financial highlights
for each of the five years in the period ended October 31, 2019
(2)The statement of assets and liabilities, including the portfolio of
investments, as of October 31, 2019, the related statement of operations for
the year then ended and the statement of changes in net assets, including
the related notes, for each of the two years in the period ended October 31,
2019 and the financial highlights for each of the periods indicated therein
(3)The statements of assets and liabilities, including the portfolios of
investments, as of October 31, 2019, the related statements of operations
for the year then ended, the statements of changes in net assets for each of
the two years in the period ended October 31, 2019, including the related
notes, and the financial highlights for each of the five years in the period
ended October 31, 2019
BASIS FOR OPINIONS
These financial statements are the responsibility of the Funds' management. Our
responsibility is to express an opinion on the Funds' financial statements
based on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) (PCAOB) and are required to
be independent with respect to the Funds in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and
Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as
evaluating the overall presentation of the financial statements.
Our procedures included confirmation of securities owned as of October 31, 2019
by correspondence with the custodian, transfer agent and brokers; when replies
were not received from brokers, we performed other auditing procedures. We
believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
Houston, Texas
December 23, 2019
We have served as the auditor of one or more investment companies in the AIG
Funds family of funds since 1984.
91
SUNAMERICA SPECIALTY SERIES
APPROVAL OF THE INVESTMENT ADVISORY AND MANAGEMENT AGREEMENTS AND
SUBADVISORY AGREEMENTS -- OCTOBER 31, 2019 -- (UNAUDITED)
APPROVAL OF THE INVESTMENT ADVISORY AND MANAGEMENT AGREEMENTS AND SUBADVISORY
AGREEMENTS
The Board of Trustees (the "Board," the members of which are referred to as
"Trustees") of SunAmerica Specialty Series (the "Trust"), including the
Trustees 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 Trustees"), of the Trust or its separate series (each, a "Fund,"
and collectively, the "Funds"), SunAmerica Asset Management, LLC
("SunAmerica"), Wellington Management Company LLP ("Wellington"), BAMCO, Inc.
("BAMCO"), Marsico Capital Management LLC ("Marsico"), BlackRock Investment
Management LLC ("BlackRock"), Cohen and Steers Capital Management, Inc. ("Cohen
and Steers"), Cadence Capital Management, LLC ("Cadence" and together with
Wellington, BAMCO, Marsico, BlackRock and Cohen and Steers, the "Subadvisers"),
approved the continuation of the Investment Advisory and Management Agreements
between the Trust, on behalf of each of the Funds and SunAmerica (the "Advisory
Agreements"), each for a one-year period ending June 30, 2020 at an in-person
meeting held on June 4-5, 2019 (the "Meeting"). The Trust currently consists of
the following six separate Funds: AIG Commodity Strategy Fund (the "Commodity
Strategy Fund"), the AIG Focused Growth Fund (the "Focused Growth Fund"), the
AIG Focused Alpha Large-Cap Fund (the "Alpha Large-Cap Fund"), the AIG Income
Explorer Fund (the "Income Explorer Fund"), the AIG Small-Cap Fund (the
"Small-Cap Fund"), and the AIG ESG Dividend Fund (the "ESG Dividend Fund").
At the Meeting, the Board, including the Independent Trustees, also approved
the continuation of the Subadvisory Agreement between SunAmerica and Wellington
with respect to the Commodity Strategy Fund, the Subadvisory Agreement between
SunAmerica and Marsico with respect to each of the Focused Growth Fund and
Alpha Large-Cap Fund, the Subadvisory Agreement between SunAmerica and BAMCO
with respect to the Multi-Cap Growth Fund, the Subadvisory Agreement between
SunAmerica and BlackRock with respect to the Alpha Large-Cap Fund, the
Subadvisory Agreement between SunAmerica and Cohen and Steers with respect to
the Income Explorer Fund, and the Subadvisory Agreement between SunAmerica and
Cadence with respect to the Small-Cap Fund each for a one-year period ending
June 30, 2020 (the "Subadvisory Agreements," and together with the Advisory
Agreements, the "Agreements").
In accordance with Section 15(c) of the 1940 Act, the Board requested, and
SunAmerica and the Subadvisers provided, materials relating to the Board's
consideration of whether to approve the continuation of the Advisory Agreements
and Subadvisory Agreements. These materials included, among other things: (a) a
summary of the services provided to the Funds by SunAmerica and its affiliates,
and by the Subadvisers; (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 or subadvised by SunAmerica or the
Subadvisers with similar investment objectives and/or strategies, as
applicable; (c) information on the profitability of SunAmerica and its
affiliates, and a discussion relating to indirect benefits; (d) information
relating to economies of scale; (e) information about SunAmerica's general
compliance policies and procedures and the services it provides in connection
with its oversight of subadvisers; (f) information on SunAmerica's and the
Subadvisers' risk management processes; (g) information regarding brokerage and
soft dollar practices; and (h) information about the key personnel of
SunAmerica and its affiliates, and the Subadvisers, 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 Agreements
and Subadvisory Agreements, the Board, including the Independent Trustees,
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 and the
Subadvisers. The Board, including the Independent Trustees, 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, and compliance, clerical
and administrative services and has authorized its officers and employees, if
elected, to serve as officers or trustees of the Trust without compensation.
The Board also noted that SunAmerica is responsible for monitoring and
reviewing the activities of affiliated and unaffiliated third-party service
providers, including the Subadvisers. In addition to the quality of the
advisory services provided by SunAmerica, the Board
92
SUNAMERICA SPECIALTY SERIES
APPROVAL OF THE INVESTMENT ADVISORY AND MANAGEMENT AGREEMENTS AND
SUBADVISORY AGREEMENTS -- OCTOBER 31, 2019 -- (UNAUDITED) (CONTINUED)
considered the quality of the administrative and other services provided by
SunAmerica to the Funds pursuant to the Advisory Agreements. 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 under the Advisory Agreements; (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 Agreements were reasonable and appropriate in relation to
the management fee and that the quality of services continues to be high.
The Board also considered SunAmerica's reputation and 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.
The Board also considered the nature, extent and quality of services provided
by each Subadviser to the applicable Funds. The Board observed that the
Subadvisers are responsible for providing day-to-day investment management
services, including investment research, advice and supervision, and
determining which securities will be purchased or sold by the Fund that each
Subadviser manages, subject to the oversight and review of SunAmerica. The
Board reviewed each Subadviser's history, structure, size, visibility and
resources, which are needed to attract and retain highly qualified investment
professionals. The Board reviewed the personnel that are responsible for
providing subadvisory services to the Funds and other key personnel of the
Subadvisers, in addition to current and projected staffing levels and
compensation practices, and concluded, based on its experience with each
Subadviser, that each Subadviser: (i) has been able to retain high quality
portfolio managers and other investment personnel; (ii) has exhibited a high
level of diligence and attention to detail in carrying out its responsibilities
under the applicable Subadvisory Agreement; and (iii) has been responsive to
requests of the Board and of SunAmerica. In addition, the Board considered each
Subadviser's code of ethics and risk management processes. The Board further
observed that each Subadviser has developed internal policies and 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 each Subadviser's compliance and regulatory history and noted
that there were no material legal, regulatory or compliance issues that would
potentially impact the Subadvisers in effectively serving as subadvisers to the
Funds. The Board concluded that the nature and extent of services provided by
the Subadvisers under the Subadvisory Agreements were reasonable and
appropriate in relation to the subadvisory fees and that the quality of
services continues to be high.
Investment Performance. The Board, including the Independent Trustees, also
considered the investment performance of SunAmerica and the Subadvisers 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. 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.
93
SUNAMERICA SPECIALTY SERIES
APPROVAL OF THE INVESTMENT ADVISORY AND MANAGEMENT AGREEMENTS AND
SUBADVISORY AGREEMENTS -- OCTOBER 31, 2019 -- (UNAUDITED) (CONTINUED)
Commodity Strategy Fund. The Board considered that the Fund's performance was
below the medians of its Peer Group and Peer Universe for the one- and
three-year periods. The Board also 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 and the fact that Wellington
Management had begun managing the Fund as of September 2015 under the Fund's
new name and investment strategies. The Board concluded that the Fund's
performance was being appropriately monitored.
ESG Dividend Fund. The Board considered that the Fund's performance was above
the median of its Peer Group and below the median of its Peer Universe for the
one-year period. The Board also noted that the Fund underperformed its
Broadridge Index for the one-year period. The Board noted management's
discussion of the Fund's performance and concluded that the Fund's performance
was satisfactory in view of its limited performance history and that the Fund's
performance was being appropriately monitored.
Focused Growth Fund. The Board considered that the Fund's performance was below
the median of its Peer Group for the one-year period and above the median of
its Peer Group for the three- and five-year periods. The Board also considered
that the Fund's performance was below the median of its Performance Universe
for the one- and three-year periods and was above the median of its Performance
Universe for the five-year period. The Board also noted 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 and concluded that the Fund's overall
performance was satisfactory.
Alpha Large-Cap 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 further noted 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, including the Fund's peer
group, and concluded that the Fund's performance was being appropriately
monitored.
Income Explorer Fund. The Board noted that the Fund's performance was below the
medians of its Peer Group and Peer Universe for the one-year period and was
above the medians of its Peer Group and Peer Universe for the three- and
five-year periods. The Board further noted that the Fund underperformed its
Broadridge Index for the one-, three- and five-year periods. The Board
concluded that the Fund's overall performance was satisfactory.
Small-Cap Fund. The Board noted that the Fund's performance was below the
median of its Peer Group for the one-year period and was above the median of
its Peer Group for the three- and five-year periods. The Board further noted
that the Fund's performance was above the median of its Performance Universe
for the one-, three- and five-year periods. The Board further noted that the
Fund outperformed its Broadridge Index for the one-, three- and five-year
periods. The Board concluded that the Fund's performance was satisfactory.
Consideration of the Management Fees and Subadvisory Fees and the Cost of the
Services and Profits to be Realized by SunAmerica and the Subadvisers and their
Affiliates from the Relationship with the Funds. The Board, including the
Independent Trustees, received and reviewed information regarding the fees paid
by the Funds to SunAmerica pursuant to the Advisory Agreements and the fees
paid by SunAmerica to the Subadvisers pursuant to the Subadvisory Agreements.
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, the Subadvisers or
their 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 the Funds,
as applicable. 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 applicable Peer
Groups and Peer Universes may appear lower on a relative basis. The Board also
considered the various expense
94
SUNAMERICA SPECIALTY SERIES
APPROVAL OF THE INVESTMENT ADVISORY AND MANAGEMENT AGREEMENTS AND
SUBADVISORY AGREEMENTS -- OCTOBER 31, 2019 -- (UNAUDITED) (CONTINUED)
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 the
management fee for the Funds. 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, to the extent applicable. The Board noted, however, that the
mutual funds identified as similar to the Funds are sold only in the variable
annuity market and, accordingly, are in different Broadridge classifications,
with a peer groups consisting of funds underlying variable insurance products.
The Board also received and reviewed information regarding the fees paid by
SunAmerica to the Subadvisers pursuant to the Subadvisory Agreements. To assist
in analyzing the reasonableness of the subadvisory fees, the Board received a
report prepared independently by Broadridge. The report showed comparative fee
information of each Fund's Peer Group and/or Peer Universe that the Trustees
used as a guide to help assess the reasonableness of the subadvisory fees. The
Trustees noted that Peer Group and/or Peer Universe information as a whole was
useful in assessing whether the Subadvisers were providing services at a cost
that was competitive with other similar funds. The Trustees also considered
that the subadvisory fees are paid by SunAmerica out of its management fees and
not by the Funds, and that subadvisory fees may vary widely within a Peer Group
for various reasons, including market pricing demands, existing relationships,
experience and success, and individual client needs. The Board further
considered the amount of subadvisory fees paid by SunAmerica and the amount of
the management fees which it retained and determined that these amounts were
reasonable in light of the services performed by SunAmerica and the
Subadvisers, respectively.
The Board also considered fees received by the Subadvisers with respect to
other mutual funds and accounts with similar investment strategies to the Funds
for which they serve as adviser or subadviser, as applicable. The Board
observed that the similar accounts identified by Wellington were institutional
separate accounts, and Wellington highlighted certain differences between these
separate accounts and the Commodity Strategy Fund, including that these
separate accounts are subject to different investment limitations and
restrictions and do not experience daily cash flows in a manner similar to the
Fund. The Board then noted that the subadvisory fees paid by SunAmerica to the
Subadvisers were reasonable as compared to fees the applicable Subadvisers
receive for other comparable accounts for which they serve as adviser or
subadviser.
Commodity Strategy 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.
ESG Dividend 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 above the median of its Peer Universe. The Board noted management's
discussion regarding the Fund's expenses.
Focused 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 medians of its Peer
Group and Peer Universe. The Board noted management's discussion regarding the
Fund's expenses. The Board also took into account recent actions to reduce Fund
expenses through fee waivers.
Alpha Large-Cap 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.
Income Explorer 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.
95
SUNAMERICA SPECIALTY SERIES
APPROVAL OF THE INVESTMENT ADVISORY AND MANAGEMENT AGREEMENTS AND
SUBADVISORY AGREEMENTS -- OCTOBER 31, 2019 -- (UNAUDITED) (CONTINUED)
Small-Cap 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 medians of its Peer
Group and Peer Universe. The Board noted management's discussion regarding the
Fund's expenses. The Board also took into account recent actions to reduce Fund
expenses through fee waivers.
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 provided 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 fee waivers and/or expense
reimbursements agreed to by SunAmerica.
The Board considered the profitability of SunAmerica under the Advisory
Agreements, including the amount of management fees it retained after payment
to the Subadvisers, and considered the profitability of SunAmerica's affiliates
under the Rule 12b-1 Plans, Service Agreements and Administrative and
Shareholder Services Agreement. Additionally, the Board considered whether
SunAmerica, the Subadvisers and their affiliates received any indirect benefits
from the relationship with the Funds. Specifically, the Board observed that AIG
Federal Savings Bank, an affiliate of SunAmerica serves as custodian with
respect to certain shareholder retirement accounts that are administered by
SunAmerica and receives a fee payable by the qualifying shareholders. The Board
further considered whether there were any collateral or "fall-out" benefits
that SunAmerica and its affiliates may derive as a result of their relationship
with the 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 also reviewed financial statements and/or other information from the
Subadvisers and their affiliates and considered whether the Subadvisers had the
financial resources necessary to attract and retain high quality investment
management personnel and to provide a high quality of services.
The Board concluded that SunAmerica and the Subadvisers had the financial
resources necessary to perform their obligations under the Agreements and to
continue to provide the Funds with the high quality services that they had
provided in the past. The Board also concluded that the management fee and
subadvisory fees were reasonable in light of the factors discussed above.
Economies of Scale. The Board, including the Independent Trustees, 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 further noted
that SunAmerica has agreed to contractually cap the total annual operating
expenses of each class 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 Agreements, including whether the
implementation of breakpoints would be appropriate in the future due to an
increase in asset size or otherwise.
The Board noted that the Subadvisory Agreements with respect to certain of the
Funds included breakpoints, but did not review specific information regarding
whether there have been economies of scale with respect to the Subadvisers'
management of the Funds because it regards that information as less relevant at
the subadviser level. Rather, the Board considered information regarding
economies of scale in the context of the renewal of the Advisory Agreements and
concluded that the management fee structure, including the amount of management
fees retained by SunAmerica, was reasonable in light of the factors discussed
above.
Other Factors. In consideration of the Agreements, the Board also received
information regarding SunAmerica's and the Subadvisers' brokerage and soft
dollar practices. The Board considered that SunAmerica and the Subadvisers are
responsible for decisions to buy and sell securities for the applicable 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 that include information on brokerage commissions and
96
SUNAMERICA SPECIALTY SERIES
APPROVAL OF THE INVESTMENT ADVISORY AND MANAGEMENT AGREEMENTS AND
SUBADVISORY AGREEMENTS -- OCTOBER 31, 2019 -- (UNAUDITED) (CONTINUED)
execution throughout the year. The Board also considered the benefits
SunAmerica and the Subadvisers derive from their soft dollar arrangements,
including arrangements under which brokers provide brokerage and/or research
services to SunAmerica and/or the Subadvisers in return for allocating
brokerage.
Conclusion. After a full and complete discussion, the Board approved the
Agreements, each 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 Trustees, was satisfied that the terms of the Agreements, were fair
and reasonable and in the best interests of the Funds and the Funds'
shareholders. In arriving at a decision to approve the Agreements, the Board
did not identify any single factor or group of factors as all-important or
controlling, but considered all factors together, and each Independent Trustee
may have attributed different weights to different factors. The Independent
Trustees were also assisted by the advice of independent legal counsel in
making this determination.
97
SUNAMERICA SPECIALTY SERIES
TRUSTEE AND OFFICER INFORMATION -- OCTOBER 31, 2019 -- (UNAUDITED)
The following table contains basic information regarding the Trustees and
Officers that oversee operations of the Funds and other investment companies
within the Fund complex.
NUMBER OF
FUNDS IN
POSITION(S) FUND COMPLEX
NAME, HELD WITH LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND AGE TRUST TIME SERVED(1) DURING PAST 5 YEARS TRUSTEE(2)
----------------------- ------------ ---------------- ------------------------------------- ------------
DISINTERESTED TRUSTEES
Dr. Judith L. Craven Trustee 2004 to present Retired. 73
Age: 74
William F. Devin Trustee 2004 to present Retired. 73
Age: 80
Richard W. Grant Trustee 2004 to present Retired. 24
Age: 74 Chairman of
the Board
Stephen J. Gutman Trustee 2004 to present Vice President and Associate Broker, 24
Age: 76 Corcoran Group (real estate) (2002
to present); President, SJG
Marketing Inc. (2009 to present).
Eileen A. Kamerick Director 2018 to present National Association of Corporate 24
Age: 60 Directors Board Leadership Fellow
and financial expert; Adjunct
Professor of Law, University of
Chicago, Washington University in
St. Louis and University of Iowa law
schools (2007 to Present); formerly,
Senior Advisor to the Chief
Executive Officer and Executive
Vice President and Chief Financial
Officer of ConnectWise, Inc.
(software and services company)
(2015 to 2016); Chief Financial
Officer, Press Ganey Associates
(healthcare informatics company)
(2012 to 2014).
INTERESTED TRUSTEE
Peter A. Harbeck(4) Trustee 2004 to present Retired June 2019, formerly 73
Age: 65 President (1995-2019), CEO (1997-
2019) and Director (1992-2019),
SunAmerica; Director, AIG Capital
Services, Inc. ("ACS") (1993-2019);
Chairman, President and CEO,
Advisor Group, Inc. (2004-2016).
OTHER DIRECTOR(S)
NAME, HELD BY TRUSTEE
AND AGE DURING PAST 5 YEARS(3)
----------------------- -------------------------------------
DISINTERESTED TRUSTEES
Dr. Judith L. Craven Director A.G. Belo Corp. (media
Age: 74 company) (1992 to 2014); Director,
Sysco Corp. (food marketing and
distribution company) (1996 to
2017); Director, Luby's, Inc. (1998
to present).
William F. Devin None
Age: 80
Richard W. Grant None
Age: 74
Stephen J. Gutman None
Age: 76
Eileen A. Kamerick Hochschild Mining plc (precious
Age: 60 metals company) (2016 to Present);
Associated Banc-Corp (financial
services company) (2007 to Present);
Legg Mason Closed End Funds
(registered investment companies)
(2013 to Present); Westell
Technologies, Inc. (technology
company) (2003 to 2016).
INTERESTED TRUSTEE
Peter A. Harbeck(4) None
Age: 65
--------
(1) Trustees serve until their successors are duly elected and qualified.
(2) The "Fund Complex" means two or more registered investment companies that
hold themselves out to investors as related companies for purposes of
investment services or have a common investment adviser or an investment
adviser that is an affiliated person of the Adviser. The "Fund Complex"
includes the Trust (6 funds), SunAmerica Money Market Funds Inc. (1 fund),
SunAmerica Equity Funds (2 funds), SunAmerica Income Funds (3 funds),
SunAmerica Series, Inc. (6 portfolios), Anchor Series Trust (5 portfolios),
SunAmerica Senior Floating Rate Fund, Inc. (1 fund), SunAmerica Series
Trust (59 portfolios), VALIC Company I (34 portfolios), VALIC Company II
(15 funds), Seasons Series Trust (19 portfolios).
(3) Directorships of companies required to report to the SEC under the
Securities Exchange Act of 1934 (i.e., "public companies") or other
investment companies registered under the 1940 Act.
(4) Mr. Harbeck is considered to be an Interested Trustee because he owns
shares of American International Group, Inc., the ultimate parent of the
Adviser. Until his retirement on June 28, 2019, he served as President, CEO
and Director of SunAmerica and Director of ACS.
Additional information concerning the Trustees is contained in the Statement of
Additional Information which is available, without charge, by calling (800)
858-8850.
98
SUNAMERICA SPECIALTY SERIES
TRUSTEE AND OFFICER INFORMATION -- OCTOBER 31, 2019 -- (UNAUDITED)
(CONTINUED)
NAME, POSITION(S) HELD WITH LENGTH OF
AND AGE TRUST TIME SERVED(4) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS
--------------------- ------------------------ ---------------- -------------------------------------------------
OFFICERS
John T. Genoy President 2007-present Chief Financial Officer, SunAmerica (2002 to
Age: 51 present); Senior Vice President, SunAmerica (2003
to present); Chief Operating Officer, SunAmerica
(2006 to present).
Sharon French Executive Vice 2019-present President and CEO of SunAmerica (since 2019);
Age: 54 President Vice President of AIG (since 2019); Executive
Vice President and Head of Beta Solutions,
Oppenheimer Funds (2016-2019); President,
F-Squared Capital, LLC (financial services)
(2013-2015).
Gregory N. Bressler Secretary 2005-present Senior Vice President and General Counsel,
Age: 53 SunAmerica (2005 to present).
Kathleen Fuentes Chief Legal Officer and 2013-present Vice President and Deputy General Counsel,
Age: 50 Assistant Secretary SunAmerica (2006 to present)
James Nichols Vice President 2006-present Director, President and CEO, ACS (2006 to
Age: 53 present); Senior Vice President, SunAmerica (2002
to present).
Gregory R. Kingston Treasurer 2014-present Vice President and Head of Mutual Fund
Age: 53 Administration, SunAmerica (2014 to present).
Shawn Parry Vice President and 2014-present Vice President (2014 to present); Assistant Vice
Age: 47 Assistant Treasurer President, SunAmerica (2005 to 2014)
Donna McManus Vice President and 2014-present Vice President, SunAmerica, (2014 to present),
Age: 58 Assistant Treasurer Managing Director, BNY Mellon (2009-2014).
Timothy Pettee Vice President 2018-present Chief Investment Officer, SunAmerica (2018 to
Age: 60 Present); Lead Portfolio Manager-Rules Based
Funds (2013 to Present); Chief Investment Officer
(2003 to 2013).
Christopher C. Joe Chief Compliance 2017 to Present Chief Compliance Officer, AIG Funds, Anchor
Age: 50 Officer Series Trust, Seasons Series Trust, SunAmerica
Series Trust, VALIC Company I and VALIC Company
II (2017-Present); Chief Compliance Officer,
VALIC Retirement Services Company (2017-Present);
Chief Compliance Officer, Invesco PowerShares
(2012-2017); Chief Compliance Officer, Invesco
Investment Advisers, LLC (2010-2013); U.S.
Compliance Director, Invesco Ltd. (2006-2014);
Deputy Chief Compliance Officer, Invesco
Advisers, LLC (2014-2015).
Matthew J. Hackethal Anti-Money Laundering 2006-present Acting Chief Compliance Officer, AIG Funds,
Age: 47 ("AML") Compliance Anchor Series Trust, Seasons Series Trust,
Officer SunAmerica Series Trust, VALIC Company I and
VALIC Company II (2016 to 2017); Chief Compliance
Officer, SunAmerica (2006 to Present); Chief
Compliance Officer, The Variable Annuity Life
Insurance Company (2016 to 2017); AML Compliance
Officer, AIG Funds, Anchor Series Trust, Seasons
Series Trust, SunAmerica Series Trust, VALIC
Company I and VALIC Company II (2006 to Present);
and Vice President, SunAmerica (2011 to Present).
99
SUNAMERICA SPECIALTY SERIES
SHAREHOLDER TAX INFORMATION -- OCTOBER 31, 2019 -- (UNAUDITED)
Certain tax information regarding SunAmerica Specialty Series is required to be
provided to shareholders based upon each Fund's income and distributions for
the taxable period ended October 31, 2019. The information and distributions
reported herein may differ from the information and distributions taxable to
the shareholders for the calendar year end December 31, 2019. The information
necessary to complete your income tax returns will be included with your Form
1099-DIV to be received under separate cover in early 2020.
During the year ended October 31, 2019, the Funds paid the following long-term
capital gains along with the percentage of ordinary
income dividends that qualified for the dividends received deductions for
corporations.
NET LONG- QUALIFYING % FOR THE
TERM 70% DIVIDENDS
FUND CAPITAL GAINS RECEIVED DEDUCTION
---- ------------- --------------------
AIG Commodity Strategy.................. $ -- -- %
AIG ESG Dividend........................ 1,650,859 99.56
AIG Focused Alpha Large-Cap............. 104,688,935 --
AIG Focused Growth...................... 122,154,493 --
AIG Income Explorer..................... 435,289 7.59
AIG Small-Cap........................... 5,996,624 100.00
For the year ended October 31, 2019, certain dividends paid by the following
Funds may be subject to a maximum tax rate of 15%, as provided for by the Jobs
and Growth Tax Relief Reconciliation Act of 2003. Of the distributions paid
during the fiscal year, the following represents the maximum amount that may be
considered qualified dividend income:
FUND AMOUNT
---- ----------
AIG Commodity Strategy.................. $ 25,732
AIG ESG Dividend........................ 924,735
AIG Focused Alpha Large-Cap............. --
AIG Focused Growth...................... --
AIG Income Explorer..................... 2,279,752
AIG Small-Cap........................... 260,473
100
SUNAMERICA SPECIALTY SERIES
COMPARISONS: FUNDS VS. INDICES -- (UNAUDITED)
As required by the Securities and Exchange Commission, the graphs on the
following pages compare the performance of a $10,000 investment in the
SunAmerica Specialty Series' Funds to a similar investment in an index or
indices. Please note that "inception," as used herein, reflects the date on
which a specific class of shares commenced operations. It is important to note
that the SunAmerica Specialty Series' Funds are professionally managed mutual
funds, while the indices are not available for investment and are unmanaged.
The comparison is shown for illustrative purposes only. The graphs present the
performance of the largest class of that particular Fund. The performance of
the other classes will vary based upon the difference in sales charges and fees
assessed to shareholders of that class.
101
SUNAMERICA SPECIALTY SERIES
COMPARISONS: FUNDS VS. INDICES -- (UNAUDITED) (CONTINUED)
AIG COMMODITY STRATEGY FUND
For the annual period ended October 31, 2019, Class A shares of the AIG
Commodity Strategy Fund returned -4.75% (before maximum sales charge),
underperforming the Fund's benchmark, the Bloomberg Commodity Index,/*/ which
returned -2.58% for the same period. To compare, the S&P 500 Index,/*/ a
broad-based equity market index, returned 14.33% for the same period.
The Fund seeks to provide long-term total return through a strategy designed to
provide diversified exposure to the commodities markets by investing its assets
in a combination of commodity-linked derivative instruments and fixed income
securities. A portion of the Fund's assets are managed pursuant to an index
strategy designed to track, before fees and expenses, the performance of the
Bloomberg Commodity Index (the "Index"), and a portion of the Fund's assets are
managed pursuant to an active strategy designed to outperform the Index. The
Fund does not invest directly in commodities.
Three key factors affected the commodities markets during the annual period -
oil fundamentals and price movements, the global economic growth outlook, and
U.S.-China trade relations. First, after surging to more than $80 per barrel in
September 2018 on the back of tight inventories and sustained global demand,
Brent crude oil prices plummeted to less than $52 per barrel in December 2018
as growing U.S. inventories and uncertainty around OPEC's long-term commitment
to production cuts heightened fears of oversupply. Though energy markets
initially stabilized in January 2019, global economic growth concerns continued
to weigh on prices, as crude oil demand growth decelerated through the first
nine months of the calendar year before edging higher in October 2019. Second,
as the economic cycle matures and recession risks rise, there were spans of
heightened concerns around slowing global economic growth, particularly as the
Purchasing Managers' Index, a measure of the prevailing direction of economic
trends in manufacturing, began to show weakness during the annual period. Gold
and silver's ability to offset market volatility seen in the fourth quarter of
2018 resulted in heavy investment in both assets in 2019. After the U.S. and
China traded further threats of tariff increases in the early summer, gold
prices reached a six-year high in July 2019, as investors sought perceived
"safe haven" assets in the face of a potential economic downturn. Consequently,
the precious metals sector gained strongly during the annual period. Third,
trade relations between the world's two largest economies disrupted global
markets. The U.S.-China trade war drove performance across several commodities
sectors. For example, Chinese manufacturing indicators softened, weighing on
demand for industrial metals, while tariffs on agricultural goods especially
affected the grains. Uncertainty around trade made supply/demand forecasts
difficult.
Amid this backdrop, commodity contract selection was the main detractor from
the Fund's relative results during the annual period. Contract selection in
natural gas, wheat and copper were the largest detractors, driven by
positioning along the respective futures curves. Such results were mitigated in
part by positioning along the crude oil futures curve, which added value.
Sector selection as a whole contributed positively to the Fund's relative
results, primarily due to the Fund's underweight to energy, the weakest
performing sector in the Index during the annual period. Having an overweight
to the somewhat stronger performing industrial metals sector and an underweight
to agriculture and livestock, which lagged the Index during the annual period,
also buoyed results. Only partially offsetting these positive contributors was
the Fund's modest underweight to precious metals, both gold and silver, which
detracted given the sector's significant outperformance of the Index during the
annual period. Security selection overall also boosted the Fund's relative
performance, driven primarily by positioning in crude oil and natural gas
within the energy sector and by positioning in corn and coffee within the
agriculture and livestock sector. These positive contributors were partially
offset by positioning in gasoline within the energy sector, in lean hogs within
the agriculture and livestock sector and within the industrial metals sector
overall, which detracted.
--------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. DIVERSIFICATION DOES NOT
GUARANTEE A PROFIT OR PROTECT AGAINST A LOSS.
* The BLOOMBERG COMMODITY INDEX is a broadly diversified commodity price
index made up of 22 exchange-traded futures on physical commodities weighted to
account for economic significance and market liquidity. The S&P 500 INDEX is an
unmanaged, weighted index of 500 large company stocks that is widely recognized
as representative of the performance of the U.S. stock market. Indices are not
managed and an investor cannot invest directly in an index.
The Fund is actively managed and its holdings are subject to change.
Accordingly, securities listed may or may not be a part of current portfolio
construction.
102
SUNAMERICA SPECIALTY SERIES
COMPARISONS: FUNDS VS. INDICES -- (UNAUDITED) (CONTINUED)
Since inception, $10,000 invested in AIG Commodity Strategy Fund Class A shares
would be valued at $6,519. The same amount invested in securities mirroring the
performance of the Bloomberg Commodity Index and the S&P 500 Index would be
valued at $6,352 and $36,097, respectively.
[CHART]
AIG Commodity Bloomberg S&P 500
Strategy Class A# Commodity Index++ Index@
--------------------- ------------------- ------------
10/31/09 $9,428 $10,000 $10,000
11/30/09 9,594 10,352 10,600
12/31/09 9,564 10,557 10,805
1/31/10 9,342 9,788 10,416
2/28/10 9,499 10,152 10,739
3/31/10 9,620 10,026 11,387
4/30/10 9,731 10,221 11,566
5/31/10 9,286 9,513 10,643
6/30/10 9,277 9,543 10,086
7/31/10 9,397 10,190 10,792
8/31/10 9,277 9,930 10,305
9/30/10 9,527 10,651 11,225
10/31/10 9,731 11,182 11,652
11/30/10 9,666 11,142 11,653
12/31/10 10,006 12,333 12,432
1/31/11 10,235 12,457 12,727
2/28/11 10,311 12,621 13,163
3/31/11 10,445 12,882 13,168
4/30/11 10,607 13,328 13,558
5/31/11 10,235 12,649 13,405
6/30/11 9,891 12,016 13,181
7/31/11 10,073 12,371 12,913
8/31/11 10,999 12,495 12,212
9/30/11 11,209 10,654 11,354
10/31/11 10,235 11,359 12,594
11/30/11 10,302 11,107 12,567
12/31/11 10,052 10,691 12,695
1/31/12 9,384 10,955 13,264
2/29/12 9,354 11,251 13,838
3/31/12 9,005 10,785 14,293
4/30/12 8,985 10,740 14,203
5/31/12 9,414 9,759 13,350
6/30/12 9,045 10,295 13,900
7/31/12 9,095 10,961 14,093
8/31/12 9,065 11,103 14,410
9/30/12 8,855 11,293 14,782
10/31/12 8,696 10,855 14,510
11/30/12 8,606 10,861 14,594
12/31/12 8,486 10,578 14,727
1/31/13 8,466 10,831 15,489
2/28/13 8,327 10,389 15,700
3/31/13 8,387 10,459 16,289
4/30/13 8,087 10,167 16,602
5/31/13 7,968 9,939 16,991
6/30/13 7,938 9,470 16,763
7/31/13 8,038 9,599 17,615
8/31/13 8,127 9,926 17,105
9/30/13 7,908 9,672 17,642
10/31/13 7,848 9,529 18,453
11/30/13 7,818 9,453 19,015
12/31/13 7,928 9,570 19,496
1/31/14 7,888 9,599 18,822
2/28/14 8,057 10,197 19,683
3/31/14 8,018 10,239 19,849
4/30/14 8,127 10,489 19,996
5/31/14 8,187 10,187 20,465
6/30/14 8,307 10,248 20,888
7/31/14 8,057 9,737 20,600
8/31/14 8,077 9,635 21,424
9/30/14 7,798 9,036 21,123
10/31/14 7,718 8,963 21,639
11/30/14 7,619 8,598 22,221
12/31/14 7,479 7,943 22,165
1/31/15 7,439 7,677 21,500
2/28/15 7,569 7,875 22,735
3/31/15 7,499 7,471 22,376
4/30/15 7,509 7,899 22,591
5/31/15 7,519 7,686 22,881
6/30/15 7,519 7,819 22,438
7/31/15 7,439 6,988 22,908
8/31/15 7,379 6,924 21,526
9/30/15 7,369 6,688 20,993
10/31/15 7,379 6,658 22,764
11/30/15 6,801 6,175 22,832
12/31/15 6,532 5,984 22,472
1/31/16 6,382 5,884 21,357
2/29/16 6,312 5,788 21,328
3/31/16 6,572 6,009 22,775
4/30/16 7,150 6,521 22,863
5/31/16 7,080 6,508 23,274
6/30/16 7,349 6,777 23,334
7/31/16 7,020 6,431 24,194
8/31/16 6,911 6,317 24,228
9/30/16 7,150 6,515 24,233
10/31/16 7,060 6,483 23,791
11/30/16 7,200 6,570 24,672
12/31/16 7,329 6,688 25,160
1/31/17 7,320 6,697 25,637
2/28/17 7,320 6,711 26,655
3/31/17 7,060 6,533 26,686
4/30/17 6,891 6,434 26,960
5/31/17 6,761 6,349 27,339
6/30/17 6,761 6,337 27,510
7/31/17 6,941 6,480 28,075
8/31/17 6,980 6,506 28,161
9/30/17 6,970 6,496 28,742
10/31/17 7,110 6,636 29,413
11/30/17 7,100 6,605 30,315
12/31/17 7,333 6,802 30,652
1/31/18 7,463 6,937 32,407
2/28/18 7,313 6,817 31,213
3/31/18 7,273 6,775 30,420
4/30/18 7,483 6,950 30,536
5/31/18 7,563 7,049 31,272
6/30/18 7,273 6,802 31,464
7/31/18 7,103 6,657 32,635
8/31/18 6,934 6,539 33,698
9/30/18 7,053 6,665 33,890
10/31/18 6,834 6,521 31,574
11/30/18 6,734 6,484 32,217
12/31/18 6,249 6,037 29,308
1/31/19 6,579 6,366 31,657
2/28/19 6,669 6,431 32,673
3/31/19 6,639 6,419 33,308
4/30/19 6,619 6,392 34,657
5/31/19 6,429 6,177 32,455
6/30/19 6,589 6,343 34,742
7/31/19 6,529 6,300 35,241
8/31/19 6,359 6,154 34,683
9/30/19 6,419 6,226 35,332
10/31/19 6,519 6,352 36,097
Class A Class C Class W
------------------ ------------------ ------------------
AIG Average Average Average
Commodity Annual Cumulative Annual Cumulative Annual Cumulative
Strategy Fund# Return Return+ Return Return+ Return Return+
----------------- ------- ---------- ------- ---------- ------- ----------
1 Year Return -10.25% -4.75% -6.30% -5.35% -4.52% -4.52%
--------------------------------------------------------------------------
5 Year Return -4.46% -15.55% -3.97% -18.34% -3.14% -14.72%
--------------------------------------------------------------------------
10 Year Return -4.19% -30.86% -4.24% -35.18% -3.42% -29.41%
--------------------------------------------------------------------------
Since Inception* -3.63% -29.34% -3.73% -34.15% -2.90% -27.64%
--------------------------------------------------------------------------
+ Cumulative returns do not include sales load. If sales load had been
included, the return would be lower.
* Inception Date - Class A: 11/04/08; Class C: 11/04/08; Class W: 11/04/08
# For the purposes of the graph, it has been assumed that the maximum sales
charge of 5.75% of offering price was deducted from the initial $10,000
investment in the Fund. For purposes of the table, it has been assumed that
the maximum sales charge with respect to the Class A shares was deducted from
the initial investment in the Fund and that the CDSC with respect to the
Class C shares has been deducted as applicable.
For the 12 month period ended October 31, 2019, the AIG Commodity Strategy Fund
Class A returned -10.25%, compared to -2.58% for the Bloomberg Commodity Index
and 14.33% for the S&P 500 Index. (The performance data and graph do not
reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.)
--------
Performance data quoted represents past performance and is no guarantee of
future results. Maximum Sales Charge: Class A: 5.75%, Class C: 1.00% CDSC. The
Fund's daily net asset values are not guaranteed and shares are not insured by
the FDIC, the Federal Reserve Board or any other agency. The investment return
and principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be higher or lower than the original cost. Current
performance may be higher or lower than that shown. Performance as of the most
recent month end is available at www.aig.com/funds.
++ The Bloomberg Commodity Index is a broadly diversified commodity price index
made up of 22 exchange-traded futures on physical commodities weighted to
account for economic significance and market liquidity.
@ The S&P 500 Index is an unmanaged, weighted index of 500 large company stocks
that is widely recognized as representative of the performance of the U.S.
stock market.
Indices are not managed and an investor cannot invest directly into an index.
103
SUNAMERICA SPECIALTY SERIES
COMPARISONS: FUNDS VS. INDICES -- (UNAUDITED) (CONTINUED)
AIG ESG DIVIDEND FUND
For the annual period ended October 31, 2019, Class A shares of the AIG ESG
Dividend Fund returned 4.35% (before maximum sales charge). While posting
positive absolute returns, the Fund underperformed its benchmark, the Russell
1000(R) Value Index/*/ (the "Index"), which returned 11.21% for the same period.
The Fund seeks to provide total return (including capital appreciation and
current income). The Fund uses a disciplined, proprietary rules-based screening
process to identify companies that meet the Fund's ESG standards. Companies
must not generate significant revenues from certain types of businesses that
include weapons, alcohol, tobacco, gambling and nuclear energy. Companies must
not have a poor track record in how they interact with employees, customers,
the environment and the society in which they do business. After identifying
companies from the Russell 1000 Index/*/ that meet the Fund's ESG standards,
the Fund then selects up to 40 dividend yielding stocks using selection
criteria that will generally include dividend yield as well as a combination of
factors that relate to profitability, valuation and ESG criteria.
During the annual period, the Fund underperformed the Index primarily because
of weak security selection in the Consumer Discretionary, Materials,
Industrials and Communication Services sectors. Having no exposure to Real
Estate and having an underweight to Communication Services, each of which
outperformed the Index during the annual period, also hurt. These detractors
were only partially offset by the positive contributions of effective stock
selection in the Health Care, Financials and Utilities sectors. Having an
underweight to Energy, the weakest performing sector in the Index during the
annual period, and having overweight allocations to Information Technology and
Industrials, which each outperformed the Index during the annual period,
further bolstered the Fund's relative results.
The individual stocks that detracted most from the Fund's relative results
during the annual period included fashion retailer Nordstrom, Inc., jewelry
retailer Signet Jewelers, Ltd., oil and gas infrastructure construction
services provider Fluor Corp., food products producer Kraft Heinz Co. and
apparel and accessories retailer The Gap, Inc. Conversely, primary individual
positive contributors to the Fund's relative results during the annual period
included semiconductor company KLA Corp., money transfer services provider
Western Union Co., home and office products manufacturer Newell Brands, Inc.,
pharmaceutical products researcher and developer AbbVie, Inc. and building
products and technology solutions provider Johnson Controls International PLC.
--------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
* The RUSSELL 1000 VALUE INDEX is a market-capitalization weighted index of
those firms in the Russell 1000 Index with lower price-to-book ratios and lower
forecasted growth values. The RUSSELL 1000 INDEX is a comprehensive large-cap
index measuring the performance of the largest 1,000 U.S. incorporated
companies. Indices are not managed and an investor cannot invest directly into
an index.
The Fund employs a Disciplined Strategy and will not deviate from its strategy
(except to the extent necessary to comply with federal tax laws or other
applicable laws). If the Fund is committed to a strategy that is unsuccessful,
the Fund will not meet its investment goal. Because the Fund will not use
certain techniques available to other mutual funds to reduce stock market
exposure, the Fund may be more susceptible to general market declines than
other mutual funds. ESG screening limits the availability of investment
opportunities for the Fund. If the Fund changes its ESG standards or a company
stops meeting the Fund's ESG standards, the Fund may sell the affected
investments even if this means the Fund loses money. The performance of the
Fund may be subject to greater fluctuation since its strategy involves holding
a limited number of securities.
The Fund's holdings are subject to change. Accordingly, securities listed may
or may not be a part of current portfolio construction.
104
SUNAMERICA SPECIALTY SERIES
COMPARISONS: FUNDS VS. INDICES -- (UNAUDITED) (CONTINUED)
Since inception, $10,000 invested in AIG ESG Dividend Fund Class A shares would
be valued at $10,804. The same amount invested in securities mirroring the
performance of the Russell 1000(R) Value Index would be valued at $12,360.
[CHART]
AIG ESG Dividend Fund Class A# Russell 1000/R/ Value++
-------------------------------- -----------------------
12/15/16 $9,422 $10,000
12/31/16 9,227 9,923
1/31/17 9,315 9,994
2/28/17 9,648 10,353
3/31/17 9,655 10,248
4/30/17 9,686 10,228
5/31/17 9,642 10,218
6/30/17 9,755 10,385
7/31/17 9,818 10,523
8/31/17 9,598 10,401
9/30/17 9,918 10,709
10/31/17 9,931 10,787
11/30/17 10,220 11,117
12/31/17 10,487 11,279
1/31/18 10,982 11,715
2/28/18 10,545 11,156
3/31/18 10,157 10,960
4/30/18 10,035 10,996
5/31/18 10,009 11,061
6/30/18 10,372 11,088
7/31/18 10,677 11,527
8/31/18 10,781 11,698
9/30/18 10,738 11,721
10/31/18 10,354 11,114
11/30/18 10,771 11,446
12/31/18 9,568 10,347
1/31/19 10,151 11,152
2/28/19 10,379 11,508
3/31/19 10,509 11,582
4/30/19 10,895 11,992
5/31/19 9,773 11,221
6/30/19 10,625 12,027
7/31/19 10,883 12,126
8/31/19 10,316 11,770
9/30/19 10,775 12,190
10/31/19 10,804 12,360
Class A Class C Class W
------------------ ------------------ ------------------
Average Average Average
AIG ESG Annual Cumulative Annual Cumulative Annual Cumulative
Dividend Fund# Return Return+ Return Return+ Return Return+
----------------- ------- ---------- ------- ---------- ------- ----------
1 Year Return -1.66% 4.35% 2.77% 3.71% 4.57% 4.57%
--------------------------------------------------------------------------
5 Year Return N/A N/A N/A N/A N/A N/A
--------------------------------------------------------------------------
10 Year Return N/A N/A N/A N/A N/A N/A
--------------------------------------------------------------------------
Since Inception* 2.73% 14.67% 4.21% 12.59% 5.10% 15.37%
--------------------------------------------------------------------------
+ Cumulative returns do not include sales load. If sales load had been
included, the return would be lower.
* Inception Date - Class A: 12/15/16; Class C: 12/15/16; Class W: 12/15/16
# For the purposes of the graph, it has been assumed that the maximum sales
charge of 5.75% of offering price was deducted from the initial $10,000
investment in the Fund. For purposes of the table, it has been assumed that
the maximum sales charge with respect to the Class A shares was deducted from
the initial investment in the Fund and that the CDSC with respect to the
Class C shares has been deducted as applicable.
For the 12 month period ended October 31, 2019, the AIG ESG Dividend Fund
Class A returned -1.66%, compared to 11.21% for the Russell 1000 Value Index.
(The performance data and graph do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.)
--------
Performance data quoted represents past performance and is no guarantee of
future results. Maximum Sales Charge: Class A: 5.75%, Class C: 1.00% CDSC. The
Fund's daily net asset values are not guaranteed and shares are not insured by
the FDIC, the Federal Reserve Board or any other agency. The investment return
and principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be higher or lower than the original cost. Current
performance may be higher or lower than that shown. Performance as of the most
recent month end is available at www.aig.com/funds.
++ The Russell 1000 Value Index is a market-capitalization weighted index of
those firms in the Russell 1000 Index with lower price-to-book ratios and
lower forecasted growth values.
Indices are not managed and an investor cannot invest directly into an index.
105
SUNAMERICA SPECIALTY SERIES
COMPARISONS: FUNDS VS. INDICES -- (UNAUDITED) (CONTINUED)
AIG FOCUSED ALPHA LARGE-CAP FUND
For the annual period ended October 31, 2019, Class A shares of the AIG Focused
Alpha Large-Cap Fund returned 9.96% (before maximum sales charge). While
posting solid positive absolute returns, the Fund underperformed its benchmark,
the Russell 1000(R) Index,/*/ which returned 14.15% for the same period.
The AIG Focused Alpha Large-Cap Fund brings together Marsico Capital Management
LLC ("Marsico") and BlackRock Investment Management ("BlackRock"), well-known
equity managers who each contribute stock picks to the Fund's portfolio.
Marsico emphasizes large-cap growth investing, while BlackRock favors a
large-cap value investment style. The Fund managers' combined stock picks,
blending different investment styles, are designed to offer the potential for
attractive returns over the long term.
Below, Tom Marsico, portfolio manager at Marsico Capital Management, discusses
Marsico's portion of the Fund's performance during the annual period. Marsico
manages the large-cap growth portion of the Fund's portfolio.
Our portion of the Fund underperformed the Russell 1000 Index during the annual
period due primarily to stock selection. Our portion of the Fund was held back
most by stock selection in the Information Technology, Industrials and Consumer
Discretionary sectors. Within Information Technology, positions in hardware
giant Apple, Inc. and semiconductor companies NVIDIA Corp. and Texas
Instruments, Inc. were notable detractors. In Industrials, aerospace and
defense company Boeing Co. disappointed most. In Consumer Discretionary,
discount store operator Dollar Tree experienced a significant share price
decline. We sold our portion of the Fund's positions in Apple, Inc., NVIDIA
Corp. and Dollar Tree, Inc. during the annual period. We maintained our
conviction at the end of the annual period in the long-term opportunities for
Texas Instruments, Inc. and Boeing Co., despite what we believe are short-term
dislocations in their valuations.
Such detractors were partially offset by several positive individual
contributors. Within the Software and Services industry of the Information
Technology sector, Fund holdings in payments processing companies Visa, Inc.
and PayPal Holdings, Inc. were meaningful positive contributors to relative
results, each enjoying a robust share price gain during the annual period. In
Communication Services, shares of The Walt Disney Co. surged prior to us
selling our portion of the Fund's position in the media conglomerate.
Sector allocation overall is not a consideration in our portfolio construction
but rather a residual of our stock selection process. Nevertheless, sector
allocation contributed positively to our portion of the Fund's relative results
during the annual period. Throughout the annual period, our portion of the Fund
maintained no exposure to Energy, which was, by far, the worst-performing
sector in the Russell 1000 Index during the annual period. In addition, our
portion of the Fund was rewarded for an overweight allocation to Information
Technology, which outperformed the Russell 1000 Index during the annual period,
and for an underweight allocation to Health Care, which underperformed the
Russell 1000 Index during the annual period. These positive contributors were
only partially offset by the detracting effect of our portion of the Fund's
underweight positioning in Real Estate, which was the strongest-performing
sector in the Russell 1000 Index during the annual period. We did increase our
portion of the Fund's allocation in Real Estate to an overweight position
relative to the Russell 1000 Index by the end of the annual period.
Below, Todd Burnside, portfolio manager at BlackRock Investment Management,
discusses BlackRock's portion of the Fund's performance during the annual
period. BlackRock manages the large-cap value portion of the Fund's portfolio.
Our portion of the Fund outperformed the Russell 1000 Index during the annual
period, due primarily to stock selection. Given the focused nature of our
portion of the Fund, sector allocation is not particularly relevant to our
strategy, though it also contributed positively, albeit modestly, to relative
results during the annual period.
106
SUNAMERICA SPECIALTY SERIES
COMPARISONS: FUNDS VS. INDICES -- (UNAUDITED) (CONTINUED)
Stock selection in Industrials, Utilities and Health Care contributed most
positively to our portion of the Fund's results. Within Industrials, a sizable
overweight to railroad transportation company Norfolk Southern Corp. added
most. A position in British multinational defense and aerospace company BAE
Systems PLC ADR, which is not a component of the Russell 1000 Index but which
outperformed the Russell 1000 Index during the annual period, also proved
advantageous. In Utilities, an overweight in FirstEnergy Corp. drove returns,
as the company delivered strong earnings that beat analyst expectations during
the annual period. Within Health Care, an out-of-Russell 1000 Index position in
Novartis AG ADR and an underweight to Pfizer, Inc., each a large
pharmaceuticals company, added to the Fund's relative returns. Conversely,
while there were no sectors in which security selection detracted overall,
there were individual holdings that disappointed. A position in BP PLC ADR,
which is not a component of the Russell 1000 Index, detracted most from our
portion of the Fund's results, as the slowdown in global economic growth
weighed on the Energy sector's performance. An overweight to clinical
laboratory test developer Laboratory Corporation of America Holdings in Health
Care, which underperformed the Russell 1000 Index during the annual period, and
having no exposure to consumer products giant Procter & Gamble Co. in Consumer
Staples, which outperformed the Russell 1000 Index during the annual period,
further detracted from relative returns.
From a sector allocation perspective, having an overweight to Utilities
relative to the Russell 1000 Index through much of the annual period
contributed most positively. Utilities' strong performance was boosted by the
style rotation that started in September 2019 favoring value and cyclicals
stocks over momentum and quality, which, in turn, was buoyed by investor hopes
of an economic recovery resulting from the U.S. Federal Reserve's interest rate
cuts and a potential resolution of the trade war with China. Sector allocation
positioning in Industrials, Health Care and Communication Services further
bolstered our portion of the Fund's relative results. On the other hand, having
no exposure to Information Technology and Real Estate, which were each among
the best-performing sectors in the Russell 1000 Index during the annual period,
detracted most. Additionally, having no exposure to Consumer Staples hurt our
portion of the Fund's performance, as the sector outperformed the Russell 1000
Index driven by September's style rotation.
--------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
* The Russell 1000 Index offers investors access to the extensive large-cap
segment of the U.S. equity universe representing approximately 92% of the U.S.
market. The Russell 1000 is constructed to provide a comprehensive and unbiased
barometer for the large-cap segment and is completely reconstituted annually to
ensure new and growing equities are reflected. The Russell 1000 includes the
largest 1,000 securities in the Russell 3000(R) Index. Indices are not managed
and an investor cannot invest directly into an index.
Because focused mutual funds are less diversified than typical mutual funds,
the performance of each holding in a focused fund has a greater impact upon the
overall portfolio, which increases risk.
The Fund is actively managed and its holdings are subject to change.
Accordingly, securities listed may or may not be part of current portfolio
construction.
107
SUNAMERICA SPECIALTY SERIES
COMPARISONS: FUNDS VS. INDICES -- (UNAUDITED) (CONTINUED)
Over the past ten years, $10,000 invested in the AIG Focused Alpha Large-Cap
Fund Class A shares would be valued at $35,970. The same amount invested in
securities mirroring the performance of the Russell 1000(R) Index would be
valued at $36,174.
[CHART]
Focused Alpha Russell
Large-Cap Fund Class A# 1000(R) Index@
------------------------ --------------
10/31/09 $9,428 $10,000
11/30/09 10,069 10,589
12/31/09 10,241 10,847
1/31/10 9,847 10,457
2/28/10 10,144 10,801
3/31/10 10,712 11,465
4/30/10 10,732 11,677
5/31/10 9,810 10,751
6/30/10 9,099 10,153
7/31/10 9,837 10,858
8/31/10 9,545 10,373
9/30/10 10,834 11,326
10/31/10 11,526 11,767
11/30/10 11,777 11,805
12/31/10 12,316 12,593
1/31/11 12,568 12,896
2/28/11 13,219 13,344
3/31/11 13,846 13,379
4/30/11 14,450 13,781
5/31/11 14,106 13,633
6/30/11 13,981 13,395
7/31/11 13,924 13,104
8/31/11 12,868 12,350
9/30/11 11,315 11,428
10/31/11 12,473 12,709
11/30/11 12,106 12,676
12/31/11 12,138 12,782
1/31/12 12,987 13,405
2/29/12 13,859 13,993
3/31/12 14,649 14,431
4/30/12 14,342 14,347
5/31/12 13,309 13,465
6/30/12 13,646 13,981
7/31/12 13,844 14,147
8/31/12 14,181 14,490
9/30/12 14,503 14,863
10/31/12 14,093 14,612
11/30/12 14,247 14,728
12/31/12 14,205 14,881
1/31/13 14,887 15,688
2/28/13 15,209 15,899
3/31/13 16,044 16,513
4/30/13 16,404 16,811
5/31/13 17,017 17,185
6/30/13 16,650 16,950
7/31/13 17,347 17,857
8/31/13 16,933 17,365
9/30/13 17,607 17,970
10/31/13 18,672 18,761
11/30/13 19,477 19,288
12/31/13 20,041 19,808
1/31/14 19,775 19,176
2/28/14 20,816 20,086
3/31/14 20,057 20,214
4/30/14 19,573 20,309
5/31/14 20,372 20,776
6/30/14 20,541 21,248
7/31/14 20,784 20,904
8/31/14 21,680 21,768
9/30/14 21,518 21,387
10/31/14 22,156 21,909
11/30/14 22,648 22,483
12/31/14 22,807 22,431
1/31/15 21,991 21,814
2/28/15 23,246 23,075
3/31/15 22,979 22,788
4/30/15 22,730 22,949
5/31/15 23,203 23,250
6/30/15 23,160 22,813
7/31/15 23,546 23,253
8/31/15 22,240 21,854
9/30/15 21,527 21,255
10/31/15 22,816 22,975
11/30/15 22,704 23,051
12/31/15 22,369 22,636
1/31/16 21,167 21,418
2/29/16 20,852 21,411
3/31/16 22,016 22,902
4/30/16 21,797 23,027
5/31/16 22,331 23,430
6/30/16 21,930 23,483
7/31/16 22,684 24,377
8/31/16 22,884 24,410
9/30/16 23,027 24,429
10/31/16 22,598 23,953
11/30/16 23,666 24,897
12/31/16 23,695 25,365
1/31/17 24,449 25,875
2/28/17 25,460 26,876
3/31/17 25,403 26,893
4/30/17 26,175 27,178
5/31/17 26,709 27,525
6/30/17 27,329 27,717
7/31/17 28,407 28,266
8/31/17 29,314 28,354
9/30/17 29,752 28,958
10/31/17 30,401 29,622
11/30/17 31,212 30,525
12/31/17 31,013 30,866
1/31/18 33,928 32,560
2/28/18 32,492 31,365
3/31/18 31,357 30,653
4/30/18 31,430 30,757
5/31/18 32,856 31,542
6/30/18 32,783 31,746
7/31/18 33,835 32,842
8/31/18 35,417 33,973
9/30/18 35,094 34,102
10/31/18 32,679 31,689
11/30/18 33,241 32,334
12/31/18 30,050 29,389
1/31/19 32,645 31,852
2/28/19 33,866 32,930
3/31/19 34,320 33,504
4/30/19 36,436 34,857
5/31/19 34,181 32,636
6/30/19 36,209 34,927
7/31/19 36,448 35,469
8/31/19 35,856 34,820
9/30/19 35,768 35,423
10/31/19 35,970 36,174
Class A Class C Class W
------------------ ------------------ ------------------
AIG Average Average Average
Focused Alpha Annual Cumulative Annual Cumulative Annual Cumulative
Large-Cap Fund# Return Return+ Return Return+ Return Return+
----------------- ------- ---------- ------- ---------- ------- ----------
1 Year Return 3.63% 9.96% 8.35% 9.24% 10.07% 10.07%
--------------------------------------------------------------------------
5 Year Return 8.88% 62.35% 9.47% 57.17% 10.33% 63.45%
--------------------------------------------------------------------------
10 Year Return 13.66% 281.52% N/A N/A N/A N/A
--------------------------------------------------------------------------
Since Inception* 9.23% 260.31% 13.40% 165.82% 14.31% 182.77%
--------------------------------------------------------------------------
+ Cumulative returns do not include sales load. If sales load had been
included, the return would be lower.
* Inception Date - Class A: 12/27/05; Class C: 01/24/12; Class W: 01/24/12
# For the purpose of the graph, it has been assumed that the maximum sales
charge of 5.75% of offering price was deducted from the initial $10,000
investment in the Fund. For purposes of the table, it has been assumed that
the maximum sales charge with respect to the Class A shares was deducted from
the initial investment in the Fund and the CDSC with respect to the Class C
shares has been deducted as applicable.
For the 12 month period ended October 31, 2019, the AIG Focused Alpha Large-Cap
Class A returned 3.63%, compared to 14.15% for the Russell 1000(R) Index. (The
performance data and graph do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of the Fund
Shares.)
The Fund acquired the assets and assumed the liabilities of the SunAmerica
Focused Alpha Large-Cap Fund, Inc. (the "Predecessor Fund"), a closed-end
investment company also advised by SunAmerica, in a reorganization that
occurred on January 23, 2012 (the "Reorganization"). Prior to the
Reorganization, the Fund had no operating history and the performance
information in the graph and the table reflects the performance of the
Predecessor Fund through the Reorganization. The Predecessor Fund may have
performed differently if it were an open-end fund since closed-end funds are
generally not subject to the cash flow fluctuations of an open-end fund. The
performance figures above for the period prior to the Reorganization were
calculated using the actual operating expenses of the Predecessor Fund, which
were lower than those of the Fund. If the Fund's higher operating expenses were
applied to the performance for the period prior to the Reorganization, the
performance would have been lower.
--------
Performance data quoted represents past performance and is no guarantee of
future results. Maximum sales charge: Class A: 5.75%, Class C: 1.00% CDSC. The
Fund's daily net asset values are not guaranteed and shares are not insured by
the FDIC, the Federal Reserve Board or any other agency. The investment return
and principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be higher or lower than the original cost. Current
performance may be higher or lower than that shown. Performance as of the most
recent month end is available at www.aig.com/funds.
@ The Russell 1000(R) Index offers investors access to the extensive large-cap
segment of the U.S. equity universe representing approximately 92% of the
U.S. market. The Russell 1000(R) is constructed to provide a comprehensive
and unbiased barometer for the large-cap segment and is completely
reconstructed annually to ensure new and growing equities are reflected. The
Russell 1000(R) includes the largest 1,000 securities in the Russell 3000(R)
Index. Indices are not managed and an investor cannot invest directly into an
index.
108
SUNAMERICA SPECIALTY SERIES
COMPARISONS: FUNDS VS. INDICES -- (UNAUDITED) (CONTINUED)
AIG FOCUSED GROWTH FUND
For the annual period ended October 31, 2019, Class A shares of the AIG Focused
Growth Fund returned 3.95% (before maximum sales charge). While posting
positive absolute returns, the Fund underperformed its benchmark, the Russell
3000(R) Growth Index,/*/ which returned 16.34% for the same period.
The AIG Focused Growth Fund brings together Marsico Capital Management LLC
("Marsico") and BAMCO Inc. ("BAMCO"), well-known equity managers who each
contribute stock picks to the Fund's portfolio. Marsico emphasizes large-cap
growth investing, while BAMCO focuses on small/mid-cap growth opportunities.
The Fund managers' combined stock picks in growth securities are designed to
offer the potential for attractive returns over the long term.
Below, Tom Marsico, portfolio manager at Marsico Capital Management, discusses
Marsico's portion of the Fund's performance during the annual period. Marsico
manages the large-cap growth portion of the Fund's portfolio.
Our portion of the Fund underperformed the Russell 3000 Growth Index during the
annual period due primarily to stock selection. Our portion of the Fund was
held back most by stock selection in the Information Technology, Industrials
and Consumer Discretionary sectors. Within Information Technology, positions in
hardware giant Apple, Inc. and semiconductor companies NVIDIA Corp. and Texas
Instruments, Inc. were notable detractors. In Industrials, aerospace and
defense company Boeing disappointed most. In Consumer Discretionary, discount
store operator Dollar Tree, Inc. experienced a significant share price decline.
We sold our portion of the Fund's positions in Apple, Inc., NVIDIA Corp and
Dollar Tree, Inc. during the annual period. We maintained our conviction at the
end of the annual period in the long-term opportunities for Texas Instruments,
Inc. and Boeing Co., despite what we believe are short-term dislocations in
their valuations.
Such detractors were partially offset by several positive individual
contributors. Within the Software and Services industry of the Information
Technology sector, Fund holdings in payments processing companies Visa, Inc.
and PayPal Holdings, Inc. were meaningful positive contributors to relative
results, each enjoying a robust share price gain during the annual period. In
Communication Services, shares of Walt Disney Co. surged prior to us selling
our portion of the Fund's position in the media conglomerate.
Sector allocation overall is not a consideration in our portfolio construction
but rather a residual of our stock selection process. Nevertheless, sector
allocation detracted modestly from our portion of the Fund's relative results
during the annual period. Our portion of the Fund's overweight allocation to
the Communication Services sector, which lagged the Russell 3000 Growth Index
during the annual period, hurt. Also, for most of the annual period, the Fund
had an underweight allocation to Real Estate, which was the second-strongest
performing sector in the Russell 3000 Growth Index during the annual period. We
did increase our portion of the Fund's allocation in Real Estate to an
overweight position relative to the Russell 3000 Growth Index by the end of the
annual period. Having a 4% average weighting in cash during an annual period
when the Russell 3000 Growth Index advanced strongly further dampened our
portion of the Fund's relative results. This negative sector allocation impact
was partially offset by the positive contributions made by our portion of the
Fund's underweight in the weakly-performing Health Care sector and its complete
lack of exposure to Energy, which was, by far, the worst-performing sector in
the Russell 3000 Growth Index during the annual period.
Below, Ron Baron, portfolio manager at BAMCO, Inc., discusses BAMCO's portion
of the Fund's performance during the annual period. BAMCO manages the
small/mid-cap portion of the Fund's portfolio.
Our portion of the Fund produced an absolute gain during the annual period yet
trailed the Russell 3000 Growth Index on a relative basis due primarily to
negative stock selection and, to a lesser extent, sector allocation. Stock
selection detracted most from relative performance during the annual period
mainly due to the underperformance of investments within the Consumer
Discretionary and
109
SUNAMERICA SPECIALTY SERIES
COMPARISONS: FUNDS VS. INDICES -- (UNAUDITED) (CONTINUED)
Communication Services sectors. Adverse stock selection in Consumer
Discretionary was driven by electric vehicle manufacturer Tesla and global ski
resort operator Vail Resorts. Shares of Tesla, Inc. declined due to news
surrounding complexities in new geographies, prices changes, changes in its
go-to-market approach, and headcount reduction. Vail Resorts, Inc.'s stock
price fell after the company sold fewer season pass sales for the 2018-19 ski
season than investors expected, although it eventually rebounded due to strong
growth in pass sales for the upcoming ski season and upon the completion of its
acquisition of Peak Resorts. Weakness in Communication Services was
attributable to English Premier League professional sports club Manchester
United PLC, whose share price decline was likely driven by weak on-pitch
performance and the absence of Champions League revenue in 2020. A position in
real estate-focused e-commerce services provider Zillow Group, Inc., a new
purchase for our portion of the Fund during the annual period, also weighed on
performance within the Communication Services sector.
These detractors were partially offset by favorable stock selection in
Industrials and Health Care. Strength in Industrials was driven by real estate
information and marketing services company CoStar Group, Inc., whose business
results exceeded investor expectations during the annual period. Our portion of
the Fund's largest position in Health Care, veterinary diagnostics leader IDEXX
Laboratories, Inc., also boosted relative results. IDEXX Laboratories, Inc.
shares were up sharply on strong competitive trends in its core companion
animal business, highlighted by double-digit instrument-installed base growth,
domestic lab growth more than twice that of its chief competitor and improving
sales productivity.
Sector allocation detracted from our portion of the Fund's performance, driven
chiefly by a meaningful underweight exposure to the strongly performing
Information Technology sector. In particular, lack of exposure to mega-cap
companies Microsoft Corp., Mastercard, Inc. and Visa, Inc. hurt relative
performance. These three stocks comprised nearly 10% of the Russell 3000 Growth
Index, and each saw its share price increase more than 30% during the annual
period. Partially offsetting this negative effect was lack of exposure to
Managed Health Care and Biotechnology stocks within Health Care, which were
under pressure. Lack of exposure to Energy also added value, as stocks in the
sector were down sharply alongside the price of crude oil. All that said, at
BAMCO, we construct our portion of the Fund from the bottom up, one stock at a
time. Each stock is included in the portfolio if it meets our rigorous
investment criteria. To help manage risk, we are aware of our sector and
security weights, but we do not include a holding to achieve a target sector
allocation or to approximate an index. Exposure to any given sector is purely a
result of our stock selection process.
--------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
* The Russell 3000(R) Growth Index measures the performance of those Russell
3000(R) Index companies with higher price-to-book ratios and higher forecasted
growth values. The Russell 3000(R) Index consists of the 3,000 largest U.S.
companies based on total market capitalization. Indices are not managed and an
investor cannot invest directly into an index.
Because focused mutual funds are less diversified than typical mutual funds,
the performance of each holding in a focused fund has a greater impact upon the
overall portfolio, which increases risk. Stocks of small-cap and mid-cap
companies are generally more volatile than and not as readily marketable as
those of larger companies and may have fewer resources and a greater risk of
business failure than do large companies.
The Fund is actively managed and its holdings are subject to change.
Accordingly, securities listed may or may not be part of current portfolio
construction.
110
SUNAMERICA SPECIALTY SERIES
COMPARISONS: FUNDS VS. INDICES -- (UNAUDITED) (CONTINUED)
Over the past ten years, $10,000 invested in the AIG Focused Growth Fund Class
A shares would be valued at $34,727. The same amount invested in securities
mirroring the performance of the Russell 3000(R) Growth Index would be valued
at $41,393.
[CHART]
Focused Growth Russell 3000(R)
Fund Class A# Growth Index@
----------------- ----------------
10/31/09 $9,422 $10,000
11/30/09 9,871 10,592
12/31/09 10,211 10,961
1/31/10 9,795 10,482
2/28/10 10,164 10,849
3/31/10 10,921 11,494
4/30/10 11,201 11,650
5/31/10 10,394 10,770
6/30/10 9,790 10,166
7/31/10 10,579 10,887
8/31/10 10,188 10,355
9/30/10 11,604 11,486
10/31/10 12,168 12,031
11/30/10 12,609 12,201
12/31/10 13,498 12,894
1/31/11 13,671 13,189
2/28/11 14,347 13,648
3/31/11 15,117 13,706
4/30/11 15,712 14,168
5/31/11 15,048 14,003
6/30/11 15,022 13,794
7/31/11 15,160 13,622
8/31/11 14,245 12,866
9/30/11 12,576 11,876
10/31/11 13,884 13,223
11/30/11 13,383 13,217
12/31/11 13,226 13,175
1/31/12 14,090 13,977
2/29/12 14,947 14,630
3/31/12 15,712 15,097
4/30/12 15,754 15,056
5/31/12 14,685 14,082
6/30/12 14,919 14,490
7/31/12 15,237 14,650
8/31/12 15,358 15,054
9/30/12 15,641 15,361
10/31/12 15,244 14,911
11/30/12 15,400 15,150
12/31/12 15,135 15,179
1/31/13 15,970 15,856
2/28/13 16,234 16,051
3/31/13 17,045 16,670
4/30/13 17,422 16,987
5/31/13 17,904 17,345
6/30/13 17,583 17,035
7/31/13 18,249 17,969
8/31/13 17,960 17,658
9/30/13 19,027 18,480
10/31/13 19,886 19,258
11/30/13 20,247 19,821
12/31/13 20,546 20,374
1/31/14 20,537 19,812
2/28/14 21,727 20,827
3/31/14 20,747 20,592
4/30/14 20,278 20,508
5/31/14 21,124 21,113
6/30/14 21,694 21,592
7/31/14 21,645 21,184
8/31/14 22,566 22,171
9/30/14 22,323 21,783
10/31/14 22,809 22,414
11/30/14 23,002 23,082
12/31/14 22,803 22,909
1/31/15 22,457 22,546
2/28/15 23,296 24,057
3/31/15 23,322 23,837
4/30/15 22,855 23,892
5/31/15 23,426 24,270
6/30/15 23,712 23,901
7/31/15 24,075 24,652
8/31/15 22,552 23,125
9/30/15 22,050 22,483
10/31/15 23,236 24,368
11/30/15 23,305 24,498
12/31/15 22,997 24,076
1/31/16 21,864 22,638
2/29/16 21,913 22,618
3/31/16 23,066 24,157
4/30/16 22,702 23,970
5/31/16 23,135 24,448
6/30/16 22,918 24,351
7/31/16 23,864 25,533
8/31/16 24,130 25,436
9/30/16 24,209 25,549
10/31/16 23,411 24,874
11/30/16 23,352 25,538
12/31/16 23,309 25,856
1/31/17 24,551 26,693
2/28/17 25,303 27,767
3/31/17 25,873 28,089
4/30/17 26,805 28,722
5/31/17 27,546 29,394
6/30/17 28,057 29,396
7/31/17 29,159 30,135
8/31/17 30,071 30,642
9/30/17 30,571 31,138
10/31/17 31,613 32,288
11/30/17 32,264 33,264
12/31/17 31,805 33,507
1/31/18 35,426 35,797
2/28/18 34,499 34,852
3/31/18 33,299 34,004
4/30/18 33,277 34,116
5/31/18 35,197 35,662
6/30/18 35,251 36,001
7/31/18 35,459 37,023
8/31/18 37,771 39,069
9/30/18 36,855 39,198
10/31/18 33,419 35,580
11/30/18 34,095 35,972
12/31/18 30,911 32,797
1/31/19 33,214 35,806
2/28/19 34,591 37,163
3/31/19 34,822 38,103
4/30/19 36,894 39,784
5/31/19 34,046 37,239
6/30/19 35,886 39,818
7/31/19 36,158 40,683
8/31/19 35,204 40,275
9/30/19 34,223 40,258
10/31/19 34,727 41,393
Class A Class C Class W
------------------ ------------------ ------------------
Average Average Average
AIG Annual Cumulative Annual Cumulative Annual Cumulative
Focused Growth# Return Return+ Return Return+ Return Return+
----------------- ------- ---------- ------- ---------- ------- ----------
1 Year Return -2.03% 3.95% 2.43% 3.25% 4.14% 4.14%
--------------------------------------------------------------------------
5 Year Return 7.49% 52.25% 8.05% 47.25% 8.97% 53.69%
--------------------------------------------------------------------------
10 Year Return 13.26% 268.57% N/A N/A N/A N/A
--------------------------------------------------------------------------
Since Inception* 9.26% 275.26% 11.72% 136.59% 12.66% 152.60%
--------------------------------------------------------------------------
+ Cumulative returns do not include sales load. If sales load had been
included, the return would be lower.
* Inception Date - Class A: 07/28/05; Class C: 01/24/12; Class W: 01/24/12
# For the purpose of the graph, it has been assumed that the maximum sales
charge of 5.75% of offering price was deducted from the initial $10,000
investment in the Fund. For purposes of the table, it has been assumed that
the maximum sales charge with respect to the Class A shares was deducted from
the initial investment in the Fund and the CDSC with respect to the Class C
shares has been deducted as applicable.
For the 12 month period ended October 31, 2019, the AIG Focused Growth Class A
returned -2.03%, compared to 16.34% for the Russell 3000(R) Growth Index. (The
performance data and graph do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of the Fund
Shares.)
The Fund acquired the assets and assumed the liabilities of the SunAmerica
Focused Alpha Growth Fund, Inc. (the "Predecessor Fund"), a closed-end
investment company also advised by SunAmerica, in a reorganization that
occurred on January 23, 2012 (the "Reorganization"). Prior to the
Reorganization, the Fund had no operating history and the performance
information in the graph and the table reflects the performance of the
Predecessor Fund through the Reorganization. The Predecessor Fund may have
performed differently if it were an open-end fund since closed-end funds are
generally not subject to the cash flow fluctuations of an open-end fund. The
performance figures above for the period prior to the Reorganization were
calculated using the actual operating expenses of the Predecessor Fund, which
were lower than those of the Fund. If the Fund's higher operating expenses were
applied to the performance for the period prior to the Reorganization, the
performance would have been lower.
--------
Performance data quoted represents past performance and is no guarantee of
future results. Maximum sales charge: Class A: 5.75%, Class C: 1.00% CDSC. The
Fund's daily net asset values are not guaranteed and shares are not insured by
the FDIC, the Federal Reserve Board or any other agency. The investment return
and principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be higher or lower than the original cost. Current
performance may be higher or lower than that shown. Performance as of the most
recent month end is available at www.aig.com/funds.
@ The Russell 3000(R) Growth Index measures the performance of those Russell
3000(R) Index companies with higher price-to-book ratios and higher
forecasted growth values. The Russell 3000(R) Index consists of the 3,000
largest U.S. companies based on total market capitalization. Indices are not
managed and an investor cannot invest directly into an index.
111
SUNAMERICA SPECIALTY SERIES
COMPARISONS: FUNDS VS. INDICES -- (UNAUDITED) (CONTINUED)
AIG INCOME EXPLORER FUND
For the annual period ended October 31, 2019, Class A shares of the AIG Income
Explorer Fund returned 13.02% (before maximum sales charge). The Fund
outperformed a blended benchmark composed 60% of the MSCI World Index (Net)/*/
and 40% of the Bloomberg Barclays U.S. Aggregate Bond Index./*/ The blended
benchmark returned 12.59% for the same period. The components of the blended
benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, a broad-based
fixed income market index, returned 11.51%, and the MSCI World Index (Net), a
broad-based global equity market index, returned 12.69%, for the same annual
period.
The Fund seeks to achieve its investment objective of high current income and,
secondarily, capital appreciation by strategically allocating its assets among
a preferred securities strategy, closed-end fund strategy and global dividend
equity strategy. Through this combination of investments, the portfolio
management teams expect to gain exposure to a broad range of income-producing
investments, including both fixed income and equity securities.
The Fund brings together SunAmerica Asset Management, LLC ("SunAmerica") and
Cohen & Steers Capital Management, Inc. ("Cohen & Steers"). SunAmerica, the
Fund's investment adviser, is responsible for determining the allocation among
the different sleeves of the Fund and for managing the global dividend equity
strategy. Cohen & Steers manages the preferred securities and closed-end fund
sleeves of the Fund.
Below, Timothy Pettee, lead portfolio manager of the Fund and SunAmerica's
Chief Investment Officer, discusses SunAmerica's portion of the Fund's
performance during the annual period. SunAmerica manages the global dividend
equity strategy sleeve of the Fund.
Our portion of the Fund underperformed the MSCI World Index during the annual
period. Individual stock selection as well as sector allocation overall
detracted. Country allocation as a whole contributed positively, albeit
modestly.
From a sector perspective, weak stock selection in the Consumer Discretionary,
Communication Services and Consumer Staples sectors detracted most. Having an
overweight to Energy, the weakest-performing sector in the MSCI World Index
during the annual period, further hindered results. Only partially offsetting
these detractors was the positive contribution made by effective stock
selection in the Materials, Information Technology, Energy and Health Care
sectors. Having no exposure to the Financials sector, which lagged the MSCI
World Index during the annual period, also proved beneficial.
Regionally, positioning decisions in the U.K., Hong Kong and the U.S. detracted
the most from relative results. Conversely, our portion of the Fund benefited
from positioning in Australia. Having exposure to Russia and Taiwan, which are
not constituents of the MSCI World Index but which outperformed the MSCI World
Index during the annual period, also added value.
Among individual holdings, notable laggards included U.S. women's apparel and
beauty products retailer L Brands, Inc., Denmark-based jewelry company Pandora
A/S, U.K. utilities company Centrica PLC, U.K. tobacco company Imperial Brands
PLC and German media company ProSiebenSat.1 Media SE. Positions in Australian
iron ore producer Fortescue Metals Group Ltd., Russian gas company Gazprom PJSC
SPON ADR, Russian metals and mining company MMC Norilsk Nickel PJSC ADR,
Taiwanese semiconductor company Yageo Corp. and French automobile components
manufacturer Valeo SA were among the top positive contributors to our portion
of the Fund's relative performance during the annual period.
Below, Doug Bond and William Scapell, portfolio managers at Cohen & Steers,
discuss Cohen & Steers' portions of the Fund's performance during the annual
period. Mr. Bond and Mr. Scapell of Cohen & Steers manage the closed-end fund
and preferred securities sleeves of the Fund, respectively.
112
SUNAMERICA SPECIALTY SERIES
COMPARISONS: FUNDS VS. INDICES -- (UNAUDITED) (CONTINUED)
Closed-End Fund Sleeve: Within our portion of the Fund's allocation to fixed
income strategy closed-end funds, an underweight in bank loan closed-end funds
helped relative performance. Our portion of the Fund's overweight in preferred
securities closed-end funds and diversified municipal bond closed-end funds
also contributed positively to performance. Conversely, its underweight in U.S.
investment grade bond closed-end funds and having no allocation to emerging
markets debt closed-end funds detracted. Having a position in cash, albeit a
modest one, also dampened the closed-end fund sleeve's performance relative to
the Morningstar All Taxable Fixed Income Index,+ an index that tracks the
weighted average market price of closed-end funds that invest in taxable fixed
income securities, which rallied during the annual period.
Security selection contributed most positively to our portion of the Fund's
relative return in the utilities closed-end funds category, followed by
security selection in the bank loan closed-end funds category. On the other
hand, security selection in the option income closed-end funds category
detracted from relative results.
Preferred Securities Sleeve: Relative to a blended index - 50% BofA Merrill
Lynch Capital Securities Index++ and 50% BofA Merrill Lynch Fixed Rate
Preferred Securities Index++ - which tracks various aspects of the preferred
securities market, our portion of the Fund benefited from effective allocation
positioning within the real estate and pipeline segments of the market. Our
portion of the Fund also benefited from favorable security selection in the
real estate, insurance and utilities segments of the markets. From an
individual security perspective, the top positive contributors were
out-of-blended index issues from European insurance company La Mondiale SAM,
Italian bank UniCredit SPA and Canadian energy midstream energy company
affiliate TransCanada Trust, whose issues each saw gains during the annual
period. Having an overweight position to an issue from French bank Credit
Agricole SA, which performed well, also contributed positively to relative
performance.
Detracting from our portion of the Fund's relative performance was security
selection in the telecommunication services segment of the market. Individual
securities that hindered relative results most included a position in an
out-of-blended index issue from U.S. bank Wells Fargo & Co., which experienced
a decline during the annual period, and having no allocation to the U.K. bank
HSBC Holdings PLC, which saw a double-digit gain during the annual period.
Having a position in cash, albeit a modest one, also dampened the preferred
securities sleeve's relative results during an annual period when the blended
index rallied.
--------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. DIVERSIFICATION DOES NOT
GUARANTEE A PROFIT OR PROTECT AGAINST A LOSS.
* The MSCI WORLD INDEX (NET) is a free float-adjusted market
capitalization-weighted index that is designed to measure the equity market
performance of developed markets. It consists of the following 23 developed
market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland,
France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New
Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United
Kingdom and the United States. Net total return indices reinvest dividends
after the deduction of withholding taxes, using (for international indices) a
tax rate applicable to non-resident institutional investors who do not benefit
from double taxation treaties. The BLOOMBERG BARCLAYS U.S. AGGREGATE BOND INDEX
represents securities that are U.S. domestic, taxable and dollar denominated.
The index covers components for government and corporate securities, mortgage
pass-through securities and asset-backed securities.
+ The Morningstar All Taxable Fixed Income Index is a weighted average of the
market price of closed-end funds that invest in taxable fixed-income securities.
++ The BOFA MERRILL LYNCH CAPITAL SECURITIES INDEX is a sub-set of the BofA
Merrill Lynch U.S. Corporate Index including all fixed-to-floating rate,
perpetual callable and callable securities. The BOFA MERRILL LYNCH U.S.
CORPORATE INDEX tracks the performance of U.S. dollar-denominated
investment-grade corporate debt publicly issued in the U.S. domestic market.
Qualifying securities must be rated investment-grade (based on an average of
Moody's, S&P and Fitch) and must have an investment-grade-rated country of risk
(based on an average of Moody's, S&P and Fitch foreign-currency long-term
sovereign debt ratings). The BOFA MERRILL LYNCH FIXED RATE PREFERRED SECURITIES
INDEX tracks the performance of fixed-rate U.S. dollar-denominated preferred
securities issued in the U.S. domestic market. Qualifying securities must be
rated investment-grade (based on an average of Moody's, S&P and Fitch) and must
have an investment-grade-rated country of risk (based on an average of Moody's,
S&P and Fitch foreign-currency long-term sovereign debt ratings).
Indices are not managed and an investor cannot invest directly in an index.
The Fund is actively managed and its holdings are subject to change.
Accordingly, securities listed may or may not be a part of current portfolio
construction.
113
SUNAMERICA SPECIALTY SERIES
COMPARISONS: FUNDS VS. INDICES -- (UNAUDITED) (CONTINUED)
Since inception, $10,000 invested in AIG Income Explorer Fund Class A shares
would be valued at $13,686. The same amount invested in securities mirroring
the performance of the Blended Benchmark [MSCI World Index (Net) (60%) and
Bloomberg Barclays U.S. Aggregate Bond Index (40%)], the MSCI World Index (Net)
and the Bloomberg Barclays U.S. Aggregate Bond Index would be valued at
$15,383, $17,474 and $12,373, respectively.
[CHART]
Blended Benchmark
(MSCI World
(net)(60%) and Bloomberg
AIG Income Barclays US Barclays US
Explorer Fund Aggregate MSCI World Aggregate
Class A# Bond Index (40%) Index (Net)++ Bond Index@
--------------- ---------------- -------------- -------------
7/2/13 $9,422 $10,000 $10,000 $10,000
7/31/13 9,555 10,271 10,447 10,008
8/31/13 9,355 10,119 10,225 9,956
9/30/13 9,629 10,461 10,736 10,051
10/31/13 9,896 10,741 11,157 10,132
11/30/13 9,824 10,839 11,355 10,094
12/31/13 9,951 10,952 11,595 10,037
1/31/14 9,887 10,774 11,166 10,185
2/28/14 10,205 11,120 11,725 10,239
3/31/14 10,336 11,122 11,742 10,222
4/30/14 10,604 11,228 11,862 10,308
5/31/14 10,744 11,412 12,095 10,426
6/30/14 10,933 11,537 12,312 10,431
7/31/14 10,755 11,414 12,115 10,405
8/31/14 10,970 11,616 12,382 10,520
9/30/14 10,600 11,395 12,046 10,448
10/31/14 10,617 11,484 12,124 10,551
11/30/14 10,665 11,655 12,367 10,626
12/31/14 10,384 11,546 12,167 10,636
1/31/15 10,400 11,518 11,947 10,859
2/28/15 10,663 11,879 12,647 10,757
3/31/15 10,535 11,790 12,449 10,807
4/30/15 10,792 11,939 12,741 10,768
5/31/15 10,658 11,952 12,785 10,742
6/30/15 10,386 11,733 12,488 10,625
7/31/15 10,262 11,892 12,712 10,699
8/31/15 9,926 11,413 11,871 10,683
9/30/15 9,694 11,191 11,433 10,755
10/31/15 10,151 11,724 12,339 10,757
11/30/15 10,000 11,677 12,277 10,729
12/31/15 9,898 11,539 12,061 10,694
1/31/16 9,663 11,188 11,340 10,841
2/29/16 9,643 11,170 11,255 10,918
3/31/16 10,231 11,666 12,019 11,018
4/30/16 10,471 11,794 12,209 11,061
5/31/16 10,407 11,835 12,278 11,064
6/30/16 10,607 11,841 12,140 11,262
7/31/16 11,049 12,171 12,653 11,334
8/31/16 11,156 12,171 12,664 11,321
9/30/16 11,160 12,207 12,731 11,314
10/31/16 11,075 12,028 12,485 11,227
11/30/16 10,914 12,018 12,664 10,962
12/31/16 11,127 12,197 12,967 10,977
1/31/17 11,460 12,384 13,280 10,999
2/28/17 11,656 12,623 13,649 11,073
3/31/17 11,731 12,701 13,794 11,067
4/30/17 11,985 12,853 13,998 11,152
5/31/17 12,121 13,056 14,294 11,238
6/30/17 12,226 13,081 14,349 11,227
7/31/17 12,505 13,291 14,693 11,275
8/31/17 12,406 13,350 14,714 11,376
9/30/17 12,563 13,504 15,044 11,322
10/31/17 12,538 13,661 15,328 11,329
11/30/17 12,526 13,831 15,660 11,314
12/31/17 12,786 13,969 15,872 11,366
1/31/18 12,941 14,347 16,710 11,235
2/28/18 12,770 13,936 16,018 11,129
3/31/18 12,703 13,789 15,669 11,200
4/30/18 12,716 13,843 15,849 11,117
5/31/18 12,628 13,935 15,948 11,196
6/30/18 12,600 13,924 15,940 11,182
7/31/18 12,788 14,186 16,438 11,185
8/31/18 12,750 14,328 16,642 11,257
9/30/18 12,693 14,339 16,734 11,184
10/31/18 12,109 13,662 15,506 11,096
11/30/18 12,069 13,788 15,682 11,162
12/31/18 11,537 13,260 14,489 11,367
1/31/19 12,406 13,936 15,617 11,488
2/28/19 12,640 14,184 16,086 11,481
3/31/19 12,755 14,404 16,298 11,702
4/30/19 12,991 14,712 16,875 11,705
5/31/19 12,723 14,308 15,902 11,913
6/30/19 13,194 14,945 16,950 12,062
7/31/19 13,315 15,003 17,034 12,089
8/31/19 13,131 14,974 16,685 12,402
9/30/19 13,433 15,133 17,040 12,336
10/31/19 13,686 15,383 17,474 12,373
Class A Class C Class W
------------------ ------------------ ------------------
Average Average Average
AIG Annual Cumulative Annual Cumulative Annual Cumulative
Income Explorer Fund# Return Return+ Return Return+ Return Return+
--------------------- ------- ---------- ------- ---------- ------- ----------
1 Year Return 6.53% 13.02% 11.31% 12.31% 13.24% 13.24%
-------------------------------------------------------------------------------
5 Year Return 3.98% 28.91% 4.53% 24.78% 5.42% 30.18%
-------------------------------------------------------------------------------
10 Year Return N/A N/A N/A N/A N/A N/A
-------------------------------------------------------------------------------
Since Inception* 5.08% 45.25% 5.38% 39.38% 6.28% 47.08%
-------------------------------------------------------------------------------
+ Cumulative returns do not include sales load. If sales load had been
included, the return would be lower.
* Inception Date - Class A: 07/02/13; Class C: 07/02/13; Class I: 07/02/13
# For the purposes of the graph, it has been assumed that the maximum sales
charge of 5.75% of offering price was deducted from the initial $10,000
investment in the Fund. For purposes of the table, it has been assumed that
the maximum sales charge with respect to the Class A shares was deducted from
the initial investment in the Fund and that the CDSC with respect to the
Class C shares has been deducted as applicable.
For the 12 month period ended October 31, 2019, the AIG Income Explorer Fund
Class A returned 6.53%, compared to 12.59% for the Blended Benchmark [MSCI
World Index (Net) (60%) and the Bloomberg Barclays US Aggregate Bond Index
(40%)], 12.69% for the MSCI World Index (Net) and 11.51% for the Bloomberg
Barclays US Aggregate Bond Index. (The performance data and graph do not
reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.)
--------
Performance data quoted represents past performance and is no guarantee of
future results. Maximum Sales Charge: Class A: 5.75%, Class C: 1.00% CDSC. The
Fund's daily net asset values are not guaranteed and shares are not insured by
the FDIC, the Federal Reserve Board or any other agency. The investment return
and principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be higher or lower than the original cost. Current
performance may be higher or lower than that shown. Performance as of the most
recent month end is available at www.aig.com/funds.
++ The MSCI World Index (Net) is a free float-adjusted market
capitalization-weighted index that is designed to measure the equity market
performance of developed markets consisting of 23 developed market country
indexes: Australia, Austria, Belgium, Canada, Denmark, Finland, France,
Germany, Hong Kong, Ireland, Italy, Israel, Japan, Netherlands, New Zealand,
Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom
and the United States. Net total return indices reinvest dividends after the
deduction of withholding taxes, using (for international indices) a tax rate
applicable to non-resident institutional investors who do not benefit from
double taxation treaties.
@ The Bloomberg Barclays U.S. Aggregate Bond Index represents securities that
are U.S. domestic, taxable and dollar denominated. The index covers
components for government and corporate securities, mortgage pass-through
securities and asset-backed securities.
Indices are not managed and an investor cannot invest directly into an index.
114
SUNAMERICA SPECIALTY SERIES
COMPARISONS: FUNDS VS. INDICES -- (UNAUDITED) (CONTINUED)
AIG SMALL-CAP FUND
For the annual period ended October 31, 2019, Class A shares of the AIG
Small-Cap Fund returned -4.07% (before maximum sales charge). The Fund
underperformed its benchmark, the Russell 2000(R) Index,/*/ which returned
4.90% for the same period.
The Fund seeks to achieve its investment objective of long-term growth of
capital primarily by strategically allocating its assets between a small-cap
index strategy and an actively-managed micro-cap growth strategy. The small-cap
index strategy provides broad exposure to small-cap stocks by tracking the
Russell 2000 Index, and the micro-cap strategy is actively managed to enhance
alpha potential relative to the Russell Microcap(R) Index./**/
SunAmerica Asset Management, LLC ("SunAmerica") is the Fund's investment
adviser, managing the overall asset allocations and the index strategy. Cadence
Capital Management, LLC ("Cadence") is the portfolio manager of the micro-cap
growth strategy. The Fund will generally allocate approximately 40-60% of its
assets to each strategy.
Below, Timothy Campion, lead portfolio manager of the Fund and Senior Vice
President at SunAmerica, discusses SunAmerica's portion of the Fund's
performance during the annual period. SunAmerica manages the small-cap index
sleeve of the Fund.
Our portion of the Fund lagged the return of the Russell 2000 Index during the
annual period. U.S. small-cap stocks underperformed the mid-cap and large-cap
segments of the U.S. equity market during the annual period, as measured by the
Russell indices. Still, there was great dispersion among the performance of the
sectors of the Russell 2000 Index. Utilities, Information Technology and Real
Estate were the best relative performers in terms of total return, each sector
posting a robust gain. Conversely, Energy was by far the weakest sector in the
Russell 2000 Index during the annual period, followed by Communication Services
and Materials, each posting a solidly negative return during the annual period.
Among individual holdings, notable laggards included Endo International PLC of
the Pharmaceuticals & Biotechnology industry of the Health Care sector;
HealthEquity, Inc and Green Dot Corp. Class A, each of the Diversified
Financials industry of the Financials sector; Inogen, Inc of the Health Care
Equipment & Services sector of the Health Care sector; and Signet Jewelers, Ltd
of the Retailing industry of the Consumer Discretionary sector. The top
positive contributors to the Russell 2000 Index and to our portion of the
Fund's relative performance during the annual period included Array BioPharma,
Inc and Reata Pharmaceuticals Inc., Class A, each of the Pharmaceuticals &
Biotechnology industry of the Health Care sector; Coupa Software, Inc of the
Software & Services industry of the Information Technology Sector; Trade Desk
Inc., Class A of the Media industry of the Consumer Discretionary sector; and
Novocure, Ltd. of the Health Care Equipment & Services sector of the Health
Care sector.
Each sector and stock in the Russell 2000 Index was represented in our portion
of the Fund with approximately the same weighting as in the Index and therefore
had a similar effect.
Below, Michael Skillman, portfolio manager, managing director and Chief
Executive Officer at Cadence, discusses Cadence's portion of the Fund's
performance during the annual period. Cadence manages the micro-cap sleeve of
the Fund.
Our portion of the Fund underperformed the return of the Russell 2000 Index
during the annual period, driven by an across-the-board underperformance of
micro-cap stocks versus their small-cap peers. Micro-cap stocks were by far the
weakest capitalization range within the U.S. equity market during the annual
period, with the micro-cap growth style bucket, as measured by the Russell
Microcap(R) Growth Index,/** /underperforming the Russell 2000 Index by nearly
12 percentage points - and underperforming large-cap stocks by an even greater
margin. This capitalization effect manifested itself within our portion of the
Fund as weak stock selection across all but one sector. Broad U.S. equity
market performance also favored more liquid securities during the annual
period, which we suspect also worked against several holdings.
115
SUNAMERICA SPECIALTY SERIES
COMPARISONS: FUNDS VS. INDICES -- (UNAUDITED) (CONTINUED)
Stock selection detracted most in the Information Technology sector, more than
offsetting the positive contribution made by having an overweighted allocation
to one of the top performing sectors in the Russell 2000 Index during the
annual period. Poor performance was concentrated in the Technology Hardware and
Equipment industry, where numerous out-of-Russell 2000 Index micro-cap holdings
disappointed. The Software and Services industry posed a similar challenge,
with higher market-cap stocks performing better. Stock selection in Financials
detracted as well, with the Diversified Financials industry hurting most.
Likewise affected by the "cap effect," the smallest names among our portion of
the Fund's Financials holdings, like On Deck Capital, Inc., a provider of
online small business lending, saw share price declines. Consumer Discretionary
was the third biggest source of relative underperformance in our portion of the
Fund during the annual period, with weakness concentrated in the Retailing and
Consumer Durables industries. The stock in our portion of the Fund with the
biggest percentage loss during the annual period was RTW Retailwinds, Inc., a
specialty women's omni-channel retailer that we sold after disappointing second
quarter 2019 results. Interestingly, the Consumer Discretionary sector also
held the top overall positive contributor to our portion of the Fund's results,
namely Crocs, Inc., the comparatively larger market-cap provider of casual
footwear and apparel.
From an allocation perspective, having an overweight to Health Care, which
significantly underperformed the Russell 2000 Index during the annual period,
hurt most, especially our portion of the Fund's overweight to the Health Care
Equipment and Services industry. On the positive side, our portion of the Fund
was underweight Energy, by far the weakest performing sector in the Russell
2000 Index during the annual period. Also, stock selection proved effective in
Utilities, though this was more than offset by the detracting effect of being
modestly underweight the strongly performing sector.
It is worth noting that despite the share price action, earnings on micro-caps
did not trail earnings on small-caps to the same extent during the annual
period. In fact, micro-caps specifically, but also small-caps in general,
traded at a historically high valuation discount to large-cap stocks. While the
small-to-large premium historically averaged 9%, small-caps traded at a 16%
discount to large-caps at the end of the annual period, with discount levels
toward the end of the annual period not seen since 2001.
--------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. DIVERSIFICATION DOES NOT
GUARANTEE A PROFIT OR PROTECT AGAINST A LOSS.
* The Russell 2000(R) Index measures the performance of approximately 2,000
small-cap companies in the Russell 3000(R) Index, which is made up of 3,000 of
the biggest U.S. stocks. The Russell 2000 Index serves as a benchmark for
small-cap stocks in the United States. The weighted average market
capitalization for companies in the Russell 2000 Index is about US$1.3 billion.
** The RUSSELL MICROCAP(R) GROWTH INDEX measures the performance of those
Russell Microcap companies with higher price-to-book ratios and higher
forecasted growth values. The Russell Microcap Growth Index is represented by
the smallest 1,000 securities in the Russell 2000 Index plus the next 1,000
securities. The RUSSELL MICROCAP(R) INDEX is a capitalization-weighted index of
2,000 small-cap and micro-cap stocks that captures the smallest 1,000 companies
in the Russell 2000 Index, plus 1,000 smaller U.S.-based listed stocks. The
Russell Microcap(R) Index is recalculated annually to prevent growing stocks
from distorting index performance, and to include new entrants. The Russell
Microcap Index represents just 3% of the overall U.S. equity market by
capitalization.
Indices are not managed and an investor cannot invest directly in an index.
A portion of the Fund is actively managed and its holdings are subject to
change. Accordingly, securities listed may or may not be a part of current
portfolio construction.
116
SUNAMERICA SPECIALTY SERIES
COMPARISONS: FUNDS VS. INDICES -- (UNAUDITED) (CONTINUED)
Since inception, $10,000 invested in AIG Small-Cap Fund Class A shares would be
valued at $14,299. The same amount invested in securities mirroring the
performance of the Russell(R) 2000 Index would be valued at $15,463.
[CHART]
AIG Small-Cap Fund Class A# Russell 2000/R/ Index@
----------------------------- ----------------------
2/6/14 $9,422 $10,000
2/28/14 9,981 10,827
3/31/14 9,881 10,753
4/30/14 9,384 10,336
5/31/14 9,410 10,419
6/30/14 9,893 10,973
7/31/14 9,209 10,309
8/31/14 9,692 10,820
9/30/14 9,127 10,166
10/31/14 9,730 10,836
11/30/14 9,698 10,846
12/31/14 10,107 11,155
1/31/15 9,824 10,796
2/28/15 10,327 11,437
3/31/15 10,660 11,636
4/30/15 10,402 11,339
5/31/15 10,565 11,598
6/30/15 10,798 11,685
7/31/15 10,791 11,549
8/31/15 10,188 10,824
9/30/15 9,742 10,293
10/31/15 10,314 10,872
11/30/15 10,578 11,226
12/31/15 10,091 10,662
1/31/16 9,242 9,725
2/29/16 9,112 9,724
3/31/16 9,783 10,501
4/30/16 10,030 10,665
5/31/16 10,311 10,906
6/30/16 10,379 10,899
7/31/16 11,064 11,549
8/31/16 11,146 11,754
9/30/16 11,393 11,885
10/31/16 10,790 11,320
11/30/16 11,962 12,582
12/31/16 12,308 12,934
1/31/17 12,287 12,985
2/28/17 12,548 13,236
3/31/17 12,682 13,253
4/30/17 12,929 13,399
5/31/17 12,597 13,126
6/30/17 13,020 13,580
7/31/17 13,133 13,681
8/31/17 13,302 13,507
9/30/17 14,219 14,350
10/31/17 14,325 14,472
11/30/17 14,572 14,889
12/31/17 14,490 14,829
1/31/18 14,741 15,216
2/28/18 14,154 14,627
3/31/18 14,475 14,816
4/30/18 14,655 14,945
5/31/18 15,641 15,852
6/30/18 15,884 15,965
7/31/18 15,899 16,243
8/31/18 16,854 16,944
9/30/18 16,502 16,536
10/31/18 14,905 14,740
11/30/18 14,858 14,974
12/31/18 13,141 13,196
1/31/19 14,456 14,680
2/28/19 15,153 15,443
3/31/19 14,717 15,120
4/30/19 15,039 15,634
5/31/19 13,925 14,418
6/30/19 14,770 15,437
7/31/19 14,778 15,526
8/31/19 13,899 14,759
9/30/19 13,934 15,066
10/31/19 14,299 15,463
Class A Class C Class W
------------------ ------------------ ------------------
Average Average Average
Annual Cumulative Annual Cumulative Annual Cumulative
AIG Small-Cap Fund# Return Return+ Return Return+ Return Return+
------------------- ------- ---------- ------- ---------- ------- ----------
1 Year Return -9.57% -4.07% -5.51% -4.66% -3.90% -3.90%
-----------------------------------------------------------------------------
5 Year Return 6.73% 46.96% 7.30% 42.25% 8.21% 48.37%
-----------------------------------------------------------------------------
10 Year Return N/A N/A N/A N/A N/A N/A
-----------------------------------------------------------------------------
Since Inception* 6.44% 51.76% 6.84% 46.14% 7.75% 53.41%
-----------------------------------------------------------------------------
+ Cumulative returns do not include sales load. If sales load had been
included, the return would be lower.
* Inception Date - Class A: 02/06/14; Class C: 02/06/14; Class W: 02/06/14
# For the purposes of the graph, it has been assumed that the maximum sales
charge of 5.75% of offering price was deducted from the initial $10,000
investment in the Fund. For purposes of the table, it has been assumed that
the maximum sales charge with respect to the Class A shares was deducted from
the initial investment in the Fund and that the CDSC with respect to the
Class C shares has been deducted as applicable.
For the 12 month period ended October 31, 2019, the AIG Small-Cap Fund Class A
returned -9.57%, compared to 4.90% for the Russell(R) 2000 Index. (The
performance data and graph do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.)
--------
Performance data quoted represents past performance and is no guarantee of
future results. Maximum Sales Charge: Class A: 5.75%, Class C: 1.00% CDSC. The
Fund's daily net asset values are not guaranteed and shares are not insured by
the FDIC, the Federal Reserve Board or any other agency. The investment return
and principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be higher or lower than the original cost. Current
performance may be higher or lower than that shown. Performance as of the most
recent month end is available at www.aig.com/funds.
@ The Russell 2000(R) Index measures the performance of approximately 2,000
small-cap companies in the Russell 3000(R) Index, which is made up of 3,000
of the biggest U.S. stocks. The Russell 2000(R) Index serves as a benchmark
for small-cap stocks in the United States. The weighted average market
capitalization for companies in the Russell 2000(R) Index is about US$1.3
billion. Indices are not managed and an investor cannot invest directly into
an index.
117
[LOGO]
HARBORSIDE 5
185 HUDSON STREET, SUITE 3300
JERSEY CITY, NJ 07311
DIRECTORS/TRUSTEES VOTING PROXIES ON FUND PORTFOLIO DELIVERY OF SHAREHOLDER DOCUMENTS
Richard W. Grant SECURITIES The Funds have adopted a policy that
Peter A. Harbeck A description of the policies and proce- allows them to send only one copy of a
Dr. Judith L. Craven dures that the Trust uses to determine Fund's prospectus, proxy material,
William F. Devin how to vote proxies related to securities annual report and semi-annual report
Stephen J. Gutman held in a Fund's portfolio, which is (the "shareholder documents") to
Eileen A. Kamerick available in the Trust's Statement of shareholders with multiple accounts
OFFICERS Additional Information, may be ob- residing at the same "household." This
John T. Genoy, President and Chief tained without charge upon request, by practice is called householding and
Executive Officer calling (800) 858-8850. The in- reduces Fund expenses, which benefits
Sharon French, Executive Vice President formation is also available from the you and other shareholders. Unless the
Timothy Pettee, Vice President EDGAR database on the U.S. Secu- Funds receive instructions to the con-
James Nichols, Vice President rities and Exchange Commission's trary, you will only receive one copy of
Gregory N. Bressler, Secretary website at http://www.sec.gov. the shareholder documents. The Funds
Gregory R. Kingston, Treasurer PROXY VOTING RECORD ON FUND will continue to household the share-
Shawn Parry, Vice President and PORTFOLIO SECURITIES holder documents indefinitely, until we
Assistant Treasurer Information regarding how the Trust are instructed otherwise. If you do not
Donna McManus, Vice President and voted proxies related to securities held wish to participate in householding
Assistant Treasurer in the Funds during the most recent please contact Shareholder Services at
Kathleen Fuentes, Chief Legal Officer twelve month period ended June 30 is (800) 858-8850 ext. 6010 or send a
and Assistant Secretary available, once filed with the U.S. written request with your name, the
Christopher C. Joe, Chief Compliance Securities and Exchange Commission, name of your fund(s) and your ac-
Officer without charge, upon request, by call- count number(s) to AIG Funds,
Matthew J. Hackethal, Anti-Money ing (800) 858-8850 or on the U.S. P.O. Box 219186, Kansas City MO,
Laundering Compliance Officer Securities and Exchange Commission 64121-9186. We will resume in-
INVESTMENT ADVISER website at http://www.sec.gov. dividual mailings for your account
SunAmerica Asset Management, LLC DISCLOSURE OF QUARTERLY PORTFOLIO within thirty (30) days of receipt of
Harborside 5 HOLDINGS your request.
185 Hudson Street, Suite 3300 The Trust is required to file its com- This report is submitted solely for the
Jersey City, NJ 07311 plete schedule of portfolio holdings general information of shareholders of
DISTRIBUTOR with the U.S. Securities and Exchange the Funds. Distribution of this report
AIG Capital Services, Inc. Commission for the first and third to persons other than shareholders of
Harborside 5 quarters of each fiscal year on Form the Funds is authorized only in con-
185 Hudson Street, Suite 3300 N-PORT. The Trust's Forms nection with a currently effective pro-
Jersey City, NJ 07311 N-PORT are available on the U.S. spectus, setting forth details of the
SHAREHOLDER SERVICING AGENT Securities and Exchange Commission Funds, which must precede or accom-
AIG Fund Services, Inc. website at http://www.sec.gov. pany this report.
Harborside 5
185 Hudson Street, Suite 3300
Jersey City, NJ 07311
CUSTODIAN
State Street Bank and Trust Company
One Lincoln Street
Boston, MA 02111
TRANSFER AGENT
DST Asset Manager Solutions, Inc.
303 W 11th Street
Kansas City, MO 64105
[GRAPHIC]
GO PAPERLESS!!
DID YOU KNOW THAT YOU HAVE THE OPTION TO
RECEIVE YOUR SHAREHOLDER REPORTS ONLINE?
By choosing this convenient service, you will no longer receive paper copies of
Fund documents such as annual reports, semi-annual reports, prospectuses and
proxy statements in the mail. Instead, you are provided with quick and easy
access to this information via the Internet.
Why Choose Electronic Delivery?
IT'S QUICK -- Fund documents will be received faster than via traditional mail.
IT'S CONVENIENT -- Elimination of bulky documents from personal files.
IT'S COST EFFECTIVE -- Reduction of your Fund's printing and mailing costs.
TO SIGN UP FOR ELECTRONIC DELIVERY, FOLLOW
THESE SIMPLE STEPS:
1 GO TO WWW.AIG.COM/FUNDS
2 CLICK ON THE LINK TO "GO PAPERLESS!!"
The email address you provide will be kept strictly confidential. Once your
enrollment has been processed, you will begin receiving email notifications
when anything you receive electronically is available online.
You can return to www.aig.com/funds at any time to change your email
address, edit your preferences or to cancel this service if you choose to
resume physical delivery of your Fund documents.
Please note - this option is only available to accounts opened through the
Funds.
[GRAPHIC]
FOR INFORMATION ON RECEIVING THIS REPORT ONLINE, SEE INSIDE BACK COVER.
AIG FUNDS ARE ADVISED BY SUNAMERICA ASSET MANAGEMENT, LLC (SAAMCO) AND
DISTRIBUTED BY AIG CAPITAL SERVICES, INC. (ACS), MEMBER FINRA. Harborside 5,
185 Hudson Street, Suite 3300, Jersey City, NJ 07311, 800-858-8850. SAAMCo and
ACS are members of American International Group, Inc. (AIG).
Investors should carefully consider a Fund's investment objectives, risks,
charges and expenses before investing. The prospectus, containing this and
other important information, can be obtained from your financial adviser, the
AIG Funds Sales Desk at 800-858-8850, ext. 6003, or at aig.com/funds. Read the
prospectus carefully before investing.
HWANN-10/19
Item 2. Code of Ethics
SunAmerica Specialty Series ("the registrant") has adopted a Code of
Ethics applicable to its Principal Executive and Principal Accounting
Officers pursuant to Section 406 of the Sarbanes-Oxley Act of 2002
(the "Code"). During the fiscal year ended October 31, 2019, there
were no reportable waivers or implicit waivers to a provision of the
Code that applies to the registrant's Principal Executive and
Principal Accounting Officers (the "Covered Officers"). During the
fiscal year ended October 31, 2019, however, the Code has been amended
to reflect changes to the titles of the Covered Officers.
Item 3. Audit Committee Financial Expert.
The registrant's Board of Trustees has determined that Eileen A.
Kamerick, a Trustee of the registrant, qualifies as an audit committee
financial expert, as defined in Item 3 (b) of Form N-CSR. Ms. Kamerick
is considered to be "independent" for purposes of Item 3(a)(2) of
Form N-CSR.
Item 4. Principal Accountant Fees and Services.
(a)--(d) Aggregate fees billed to the registrant for the last two
fiscal years for professional services rendered by the registrant's
principal accountants were as follows:
2018 2019
(a) Audit Fees............................. $249,965 $257,467
(b) Audit-Related Fees..................... $ 0 $ 0
(c) Tax Fees............................... $ 0 $ 0
(d) All Other Fees......................... $ 0 $ 0
Audit Fees include amounts related to the audit of the registrant's
annual financial statements and services normally provided by the
principal accountant in connection with statutory and regulatory
filings.
Aggregate fees billed to the investment adviser and Adviser Affiliates
(as defined below in Item 4(e)) that are required to be pre-approved
pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X for
the last two fiscal years for services rendered by the registrant's
principal accountant were as follows:
2018 2019
(b) Audit-Related Fees.................... $ 0 $ 0
(c) Tax Fees.............................. $ 0 $ 0
(d) All Other Fees........................ $36,429 $ 0
(e) (1) The registrant's audit committee pre-approves all audit services
provided by the registrant's principal accountant for the registrant
and all non-audit services provided by the registrant's principal
accountant for the registrant, its investment adviser and any entity
controlling, controlled by, or under common control with the
investment adviser ("Adviser Affiliates") that provides ongoing
services to the registrant, if the engagement by the investment
adviser or Adviser Affiliate relates directly to the operations and
financial reporting of the registrant. The audit committee has not
presently established any pre-approval policies and procedures that
permit the pre-approval of the above services other than by the full
audit committee. Certain de minimis exceptions are allowed for
non-audit services in accordance with Rule 2-01(c)(7)(i)(C) of
Regulation S-X as set forth in the registrant's audit committee
charter.
(2) No services included in (b)-(d) above in connection with fees
billed to the registrant or the investment adviser or Adviser
Affiliates were approved pursuant to paragraph (c)(7)(i)(C) of Rule
2-01 of Regulation S-X.
(f) Not applicable.
(g) The aggregate fees billed for the most recent fiscal year and the
preceding fiscal year by the registrant's principal accountant for
non-audit services rendered to the registrant, its investment adviser,
and Adviser Affiliates that provide ongoing services to the registrant
for 2018 and 2019 were $105,000 and $0, respectively.
(h) Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
Included in Item 1 to the Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders
may recommend nominees to the registrant's Board of Trustees that were
implemented after the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR
229.407) (as required by Item 22(b)(15)) of Schedule 14A (17 CFR
240.14a - 101), or this Item 10.
Item 11. Controls and Procedures.
(a) An evaluation was performed within 90 days of the filing of this
report, under the supervision and with the participation of the
registrant's management, including the President and Treasurer, of the
effectiveness of the design and operation of the registrant's
disclosure controls and procedures (as defined under Rule 30a-3(c)
under the Investment Company Act of 1940 (17 CFR 270.30a-3(c))). Based
on that evaluation, the registrant's management, including the
President and Treasurer, concluded that the registrant's disclosure
controls and procedures are effective.
(b) There was no change in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940 (17 CFR 270.30a-3(d))) that occurred during the
most recent fiscal half year that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management
Investment Companies.
Not applicable.
Item 13. Exhibits.
(a) (1) Code of Ethics applicable to its Principal Executive and Principle
Accounting Officers pursuant to Section 406 of the Sarbanes-Oxley Act
of 2002 attached hereto as Exhibit 99.406. Code of Ethics.
(2) Certifications pursuant to Rule 30a-2(a) under the Investment
Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit
99.CERT.
(3) Not applicable.
(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 Specialty Series
By: /s/ John T. Genoy
--------------------------
John T. Genoy
President
Date: January 7, 2020
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: January 7, 2020
By: /s/ Gregory R. Kingston
--------------------------
Gregory R. Kingston
Treasurer
Date: January 7, 2020