================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM N-CSR
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-08727
SunAmerica Senior Floating Rate Fund, Inc.
--------------------------------------------------
(Exact name of registrant as specified in charter)
Harborside 5, 185 Hudson Street, Jersey City, NJ 07311
--------------------------------------------------------
(Address of principal executive offices) (Zip code)
John T. Genoy
Senior Vice President
SunAmerica Asset Management, LLC
Harborside 5, 185 Hudson Street
Jersey City, NJ 07311
-------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (201) 324-6414
Date of fiscal year end: December 31
Date of reporting period: December 31, 2019
================================================================================
Item 1. Reports to Stockholders
ANNUAL REPORT 2019
AIG
Senior Floating
Rate 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]
aig.com/funds
Table of Contents
SHAREHOLDERS' LETTER.................................... 2
EXPENSE EXAMPLE......................................... 4
STATEMENT OF ASSETS AND LIABILITIES..................... 6
STATEMENT OF OPERATIONS................................. 7
STATEMENT OF CHANGES IN NET ASSETS...................... 8
FINANCIAL HIGHLIGHTS.................................... 9
PORTFOLIO OF INVESTMENTS................................ 10
NOTES TO FINANCIAL STATEMENTS........................... 23
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM. 36
DIRECTORS AND OFFICERS INFORMATION...................... 37
SHAREHOLDER TAX INFORMATION............................. 40
COMPARISON: FUND vs. INDEX.............................. 41
December 31, 2019 ANNUAL REPORT
Shareholders' Letter
Dear Shareholders:
We are pleased to present this annual report for the AIG Senior Floating Rate
Fund (the "Fund") for the 12 months ended December 31, 2019.
Overall, fixed income markets generated solid positive returns during the
annual period, with the broad U.S. investment grade fixed income market posting
its strongest return since 2002. In most markets, sovereign yields declined
during the first three quarters of 2019 amid concerns about deteriorating
global economic growth and more dovish+ central bank policy pivots by both the
U.S. Federal Reserve (the "Fed") and the European Central Bank (ECB). The Fed
left interest rates unchanged during the first half of 2019 but then reduced
short-term interest rates three times during the second half of the calendar
year - by a total of 75 basis points. (A basis point is 1/100/th/ of a
percentage point.) The ECB delivered a sweeping package that included a rate
cut, resumption of asset purchases and more favorable bank lending conditions.
At its December 2019 meeting, citing the resiliency of the economy, the Fed
left the target range for its federal funds rate unchanged and signaled
interest rates were likely to stay on hold for "a time" as long as the economy
stays on track. Similarly, new ECB President Christine Lagarde indicated
monetary policy would remain unchanged for the foreseeable future. Several
other central banks in developed and emerging market countries around the world
likewise followed accommodative monetary policy paths. Despite accommodative
central bank policies, sovereign yields increased across most markets during
the fourth quarter of 2019, as global activity indicators stabilized and trade
negotiations between the U.S. and China progressed. Political and social
tensions remained elevated amid escalating protests in Hong Kong and Latin
America, political uncertainty in the U.K. and Spain, and the U.S. President's
impeachment proceedings. But the U.K. and the European Union finally reached a
Brexit agreement and the U.S. and China agreed in principle to a "Phase One"
trade deal, bringing relief to the markets.
Corporate bonds performed especially strongly through much of the year. At
first, corporate bonds benefited from falling government bond yields and as
investors grew more optimistic that trade disputes would ease. Later in the
year, corporate bonds performed well in response to the "Phase One" trade deal
between the U.S. and China, which many hoped would help ease global economic
growth concerns. After mixed performance during the year, the U.S. dollar ended
the annual period overall modestly strengthened versus most major currencies,
as dovish monetary policy developments balanced concerns of a global economic
growth slowdown.
Amid this backdrop, floating rate loans, as represented by the S&P/LSTA
Leveraged Loan Index (the "LLI"),/*/ returned 8.64% during the annual period
ended December 31, 2019, virtually matching the performance of the broad U.S.
fixed income market as represented by the Bloomberg Barclays U.S. Aggregate
Bond Index,/*/ which returned 8.72% for the same time period.
Although bank loan deal quality was weak, the sector's overall credit
fundamentals remained stable -- including elevated interest coverage and stable
leverage -- and bank loan valuations appeared attractive, in our view.
Technicals, or supply/demand factors, were rather balanced. Bank loan mutual
funds experienced outflows of $42.7 billion during 2019.++ However, offsetting
these outflows was gross U.S. collateralized loan obligation (CLO) volume, one
of the main sources of demand for bank loans, which totaled $118.3 billion for
the 12-month period,/**/ trailing last year's pace of $128.9 billion but still
strong. The trailing 12-month loan default rate, examined by principal amount,
was 3.5% at the end of the annual period, as compared to 1.6% at the end of
2018 and 1.8% at the end of 2017, but still historically benign.+++
2
December 31, 2019 ANNUAL REPORT
Shareholders' Letter -- (continued)
On the following pages, you will find a brief discussion regarding the Fund's
annual results. You will also find financial statements and portfolio
information for the Fund for the annual period ended December 31, 2019.
As always, we remain diligent in the management of your assets. We value your
ongoing confidence in us and look forward to serving your investment needs in
the future.
Sincerely,
THE AIG SENIOR FLOATING RATE FUND PORTFOLIO MANAGER
Jeffrey W. Heuer
Wellington Management Company LLP
--------
Past performance is no guarantee of future results.
+ Dovish tends to suggest lower interest rates; opposite of hawkish.
* The S&P/LSTA Leveraged Loan Index (LLI) reflects the market-weighted
performance of U.S. dollar-denominated institutional leveraged loan
portfolios. The LLI is the only domestic leveraged loan index that utilizes
real-time market weightings, spreads and interest payments. The 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.
++ Source: Lipper, Inc.
** Source: S&P Leveraged Commentary & Data.
+++Source: Moody's.
The Fund is not a money market fund and its net asset value may fluctuate.
Investments in loans involve certain risks including nonpayment of principal
and interest; collateral impairment; non-diversification and borrower industry
concentration; and lack of an active trading market, in certain cases, which
may impair the Fund's ability to obtain full value for loans sold. The Fund may
invest all or substantially all of its assets in loans or other securities
(e.g., unsecured loans or high yield securities) that are rated below
investment grade, or in comparable unrated securities. Credit risks include the
possibility of a default on the loan or bankruptcy of the borrower. The value
of these loans is subject to a greater degree of volatility in response to
interest rate fluctuations.
3
SunAmerica Senior Floating Rate Fund, Inc.
EXPENSE EXAMPLE -- December 31, 2019 -- (unaudited)
Disclosure of Portfolio Expenses in Shareholder Reports
As a shareholder of the AIG Senior Floating Rate Fund (the "Fund"), you may
incur two types of costs: (1) transaction costs, including sales charges on
purchase payments and contingent deferred sales charges and (2) ongoing costs,
including management fees, distribution and account maintenance fees, and other
Fund expenses. The example set forth below is intended to help you understand
your ongoing costs (in dollars) of investing in the Fund and to compare these
costs with the ongoing costs of investing in other mutual funds. The example is
based on an investment of $1,000 invested at July 1, 2019 and held until
December 31, 2019.
Actual Expenses
The "Actual" section of the table provides information about actual account
values and actual expenses. You may use the information in these columns,
together with the amount you invested, to estimate the expenses that you paid
over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number in the column under the heading entitled "Expenses Paid During the Six
Months Ended December 31, 2019" to estimate the expenses you paid on your
account during this period. The "Expenses Paid During the Six Months Ended
December 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 December 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 Fund's prospectus, your retirement plan documents and/or
materials from your financial adviser, for a full description of these fees.
Had these fees been included, the "Expenses Paid During the Six Months Ended
December 31, 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 the Fund's actual expense
ratio and an annual rate of return of 5% before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare the ongoing costs of investing
in this Fund and other funds. To do so, compare this 5% hypothetical example
with the 5% hypothetical examples that appear in the shareholder reports of
other funds. The "Expenses Paid During the Six Months Ended December 31, 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 December 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 Fund's prospectus, your retirement plan document and/or materials from your
financial adviser for full description of these fees. Had these fees been
included, the "Expenses Paid During the Six Months Ended December 31, 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 and
administrative fees, if applicable to your account. Please refer to the Fund's
prospectus, qualified retirement plan document and/or materials from your
financial adviser, for more information. Therefore, the "Hypothetical" example
is useful in comparing ongoing costs only and will not help you determine the
relative total costs of owning different funds. In addition, if these
transaction costs and other fees were included, your costs would have been
higher.
4
SunAmerica Senior Floating Rate Fund, Inc.
EXPENSE EXAMPLE -- December 31, 2019 -- (unaudited) (continued)
Actual Hypothetical
----------------------------------------------------- -----------------------------------------------------
Ending Ending Account
Account Value Expenses Paid Value Using Expenses Paid
Beginning Using Actual During the Beginning a Hypothetical 5% During the
Account Value Return at Six Months Ended Account Value Annual Return at Six Months Ended
at July 1, 2019 December 31, 2019 December 31, 2019* at July 1, 2019 December 31, 2019* December 31, 2019*
--------------- ----------------- ------------------ --------------- ------------------ ------------------
AIG Senior Floating Rate Fund#
Class A.... $1,000.00 $1,022.15 $5.20 $1,000.00 $1,020.06 $5.19
Class C.... $1,000.00 $1,018.88 $7.23 $1,000.00 $1,018.05 $7.22
Class W.... $1,000.00 $1,022.19 $4.18 $1,000.00 $1,021.07 $4.18
Annualized
Expense
Ratio*
----------
AIG Senior Floating Rate Fund#
Class A.... 1.02%
Class C.... 1.42%
Class W.... 0.82%
--------
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 184 days then divided
by 365 days (to reflect the one-half year period). These ratios do not
reflect transaction costs, including sales charges on purchase payments,
contingent deferred sales charges, small account fees and administrative
fees, if applicable to your account. Please refer to your Prospectus, your
qualified retirement plan document and/or materials from your financial
advisor for more information.
# During the stated period, the investment adviser either waived a portion of
or all of the fees and assumed a portion of or all expenses for the Fund. As
a result, if these fees and expenses had not been waived or assumed, the
"Actual/Hypothetical Ending Account Value" would have been lower and the
"Actual/Hypothetical Expenses Paid During the Six Months Ended December 31,
2019" and the "Annualized Expense Ratio" would have been higher.
5
SunAmerica Senior Floating Rate Fund, Inc.
STATEMENT OF ASSETS AND LIABILITIES -- December 31, 2019
AIG
Senior
Floating Rate
Fund
-------------
ASSETS:
Investments at value (unaffiliated)*............................... $203,386,672
Repurchase agreements (cost approximates value).................... 5,300,000
Cash............................................................... 358,381
Due from broker.................................................... 860
Receivable for:
Fund shares sold................................................. 90,605
Dividends and interest........................................... 1,153,837
Investments sold................................................. 1,075,802
Investments sold on an extended settlement basis................. 4,599,876
Prepaid expenses and other assets.................................. 9,293
Due from investment adviser for expense reimbursements/fee waivers. 290,358
Unrealized appreciation on forward foreign currency contracts...... 18,460
------------
Total assets..................................................... 216,284,144
------------
LIABILITIES:
Payable for:
Fund shares redeemed............................................. 933,956
Investments purchased on an extended settlement basis............ 8,777,679
Investment advisory and management fees.......................... 149,934
Distribution and service maintenance fees........................ 80,441
Administration fees.............................................. 35,278
Transfer agent fees and expenses................................. 45,615
Directors' fees and expenses..................................... 1,112
Other accrued expenses........................................... 290,950
Distributions payable.............................................. 119,273
Commitments (Note 10).............................................. 128,341
Due to custodian for foreign cash*................................. 660
Unrealized depreciation on forward foreign currency contracts...... 98,044
------------
Total liabilities................................................ 10,661,283
------------
Net Assets...................................................... $205,622,861
============
NET ASSETS REPRESENTED BY:
Common stock, $0.01 par value...................................... $ 260,223
Additional paid-in capital......................................... 239,486,159
------------
239,746,382
Total accumulated earnings (loss).................................. (34,123,521)
------------
Net Assets...................................................... $205,622,861
============
Class A:
Net assets......................................................... $ 95,401,711
Shares outstanding................................................. 12,076,840
Net asset value and redemption price per share..................... $ 7.90
Maximum sales charge (3.75% of offering price)..................... 0.31
------------
Maximum offering price to public................................... $ 8.21
============
Class C:
Net assets......................................................... $ 73,506,473
Shares outstanding................................................. 9,312,519
Net asset value, offering and redemption price per share
(excluding any applicable contingent deferred sales charges)...... $ 7.89
============
Class W:
Net assets......................................................... $ 36,714,677
Shares outstanding................................................. 4,632,941
Net asset value, offering and redemption price per share........... $ 7.92
============
*Cost
Investments securities (unaffiliated)............................ $209,964,988
============
Foreign cash..................................................... $ (661)
============
See Notes to Financial Statements
6
SunAmerica Senior Floating Rate Fund, Inc.
STATEMENT OF OPERATIONS -- For the year ended December 31, 2019
AIG
Senior
Floating Rate
Fund
-------------
INVESTMENT INCOME:
Interest (unaffiliated)........................................................... $12,698,252
Dividends (unaffiliated).......................................................... 107,459
Facility and other fee income (Note 2)............................................ 258,322
-----------
Total investment income........................................................ 13,064,033
-----------
EXPENSES:
Investment advisory and management fees........................................... 1,979,206
Administrative fees............................................................... 465,696
Distribution and account maintenance fees:
Class A......................................................................... 374,792
Class C......................................................................... 650,174
Service fees:
Class W......................................................................... 57,357
Transfer agent fees and expenses:
Class A......................................................................... 252,309
Class C......................................................................... 199,868
Class W......................................................................... 85,402
Registration fees:
Class A......................................................................... 23,077
Class C......................................................................... 21,139
Class W......................................................................... 23,209
Accounting service fees........................................................... 15,369
Custodian and accounting fees..................................................... 74,255
Reports to shareholders........................................................... 58,320
Audit and tax fees................................................................ 131,762
Legal fees........................................................................ 49,072
Directors' fees and expenses...................................................... 72,418
Other expenses.................................................................... 27,776
-----------
Total expenses before fee waivers and expense reimbursements................... 4,561,201
Fees waived and expenses reimbursed by investment adviser (Note 5)............. (1,907,084)
-----------
Net expenses................................................................... 2,654,117
-----------
Net investment income (loss)...................................................... 10,409,916
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on:
Investments (unaffiliated)...................................................... (2,724,086)
Forward contracts............................................................... 701,059
Net realized foreign exchange gain (loss) on other assets and liabilities......... (13,287)
-----------
Net realized gain (loss) on investments and foreign currencies.................... (2,036,314)
-----------
Change in unrealized appreciation (depreciation) on:
Investments (unaffiliated)...................................................... 8,537,928
Forward contracts............................................................... (114,062)
Change in unrealized foreign exchange gain (loss) on other assets and liabilities. 9,801
-----------
Net unrealized gain (loss) on investments and foreign currencies.................. 8,433,667
-----------
Net realized and unrealized gain (loss) on investments and foreign currencies..... 6,397,353
-----------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $16,807,269
===========
See Notes to Financial Statements
7
SunAmerica Senior Floating Rate Fund, Inc.
STATEMENT OF CHANGES IN NET ASSETS
AIG
Senior Floating
Rate Fund
--------------------------
For the year For the year
ended ended
December 31, December 31,
2019 2018
------------ ------------
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)........................................................... $ 10,409,916 $ 9,627,494
Net realized gain (loss) on investments and foreign currencies......................... (2,036,314) (1,228,237)
Net unrealized gain (loss) on investments and foreign currencies....................... 8,433,667 (9,973,023)
------------ ------------
Net increase (decrease) in net assets resulting from operations.......................... 16,807,269 (1,573,766)
------------ ------------
Distributions to shareholders from:
Distributable earnings (Class A)....................................................... (5,151,087) (4,860,861)
Distributable earnings (Class C)....................................................... (3,796,099) (4,268,732)
Distributable earnings (Class W)....................................................... (1,877,654) (1,010,466)
------------ ------------
Total distributions to shareholders...................................................... (10,824,840) (10,140,059)
------------ ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 3). (37,881,251) 197,672
------------ ------------
Total increase (decrease) in net assets.................................................. (31,898,822) (11,516,153)
NET ASSETS:
Beginning of period...................................................................... 237,521,683 249,037,836
------------ ------------
End of period............................................................................ $205,622,861 $237,521,683
============ ============
See Notes to Financial Statements
8
SunAmerica Senior Floating Rate Fund, Inc.
FINANCIAL HIGHLIGHTS
AIG Senior Floating Rate Fund
-----------------------------
Net gain
(loss) on
Net investments Dividends Net Net Ratio of
Asset (both Dividends from net Asset Assets, expenses
Value, Net realized Total from from net realized Total Value, end of to average
Period beginning investment and investment investment gains on Distri- end of Total period net
Ended of period income(1) unrealized) operations income investments butions period Return(2) (000's) assets(3)
---------- --------- ---------- ----------- ---------- ---------- ----------- ------- ------ --------- -------- ----------
Class A
-
12/31/15 $8.05 $0.33 $(0.44) $(0.11) $(0.33) $-- $(0.33) $7.61 (1.42)% $114,375 1.45%
12/31/16 7.61 0.31 0.44 0.75 (0.30) -- (0.30) 8.06 10.08 131,640 1.45
12/31/17 8.06 0.30 0.03 0.33 (0.30) -- (0.30) 8.09 4.14 93,346 1.45
12/31/18 8.09 0.33 (0.36) (0.03) (0.35) -- (0.35) 7.71 (0.41) 113,869 1.22
12/31/19 7.71 0.36 0.21 0.57 (0.38) -- (0.38) 7.90 7.49 95,402 1.02
Class C
-
12/31/15 $8.05 $0.31 $(0.45) $(0.14) $(0.31) $-- $(0.31) $7.60 (1.85)% $172,236 1.75%
12/31/16 7.60 0.29 0.44 0.73 (0.28) -- (0.28) 8.05 9.76 155,688 1.75
12/31/17 8.05 0.28 0.03 0.31 (0.27) -- (0.27) 8.09 3.96 135,902 1.75
12/31/18 8.09 0.31 (0.38) (0.07) (0.32) -- (0.32) 7.70 (0.90) 95,038 1.61
12/31/19 7.70 0.34 0.20 0.54 (0.35) -- (0.35) 7.89 7.08 73,506 1.42
Class W
-
04/20/17@-
12/31/17 $8.11 $0.25 $(0.03) $ 0.22 $(0.22) $-- $(0.22) $8.11 2.69% $ 19,790 1.25%(4)
12/31/18 8.11 0.35 (0.37) (0.02) (0.37) -- (0.37) 7.72 (0.34) 28,615 1.02
12/31/19 7.72 0.37 0.22 0.59 (0.39) -- (0.39) 7.92 7.70 36,715 0.82
Ratio of
net
investment
income to
average Portfolio
net assets(3) Turnover
------------- ---------
4.14% 48%
3.95 60
3.69 68
4.21 44
4.59 34
3.84% 48%
3.68 60
3.38 68
3.77 44
4.19 34
3.72%(4) 68%
4.43 44
4.78 34
--------
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load but does
include expense reimbursements.
(3)Net of the following expense waivers and/or reimbursements, if applicable
(based on average daily net assets) (see Note 5):
12/31/15 12/31/16 12/31/17 12/31/18 12/31/19
-------- -------- -------- -------- --------
Class A............. 0.34% 0.33% 0.38% 0.64% 0.81%
Class C............. 0.44 0.42 0.48 0.65 0.81
Class W............. -- -- 0.50(4) 0.69 0.85
(4)Annualized
@ Inception date of class.
See Notes to Financial Statements
9
AIG Senior Floating Rate Fund
PORTFOLIO PROFILE -- December, 31, 2019 -- (unaudited)
Industry Allocation*
Hotels, Restaurants & Leisure........................................................ 8.2%
Software............................................................................. 7.3
Media................................................................................ 6.7
Commercial Services & Supplies....................................................... 5.4
Containers & Packaging............................................................... 5.1
Health Care Providers & Services..................................................... 5.0
Insurance............................................................................ 3.9
IT Services.......................................................................... 3.5
Machinery............................................................................ 3.3
Chemicals............................................................................ 3.1
Diversified Financial Services....................................................... 2.9
Diversified Telecommunication Services............................................... 2.7
Oil, Gas & Consumable Fuels.......................................................... 2.7
Specialty Retail..................................................................... 2.6
Repurchase Agreements................................................................ 2.6
Trading Companies & Distributors..................................................... 2.5
Registered Investment Companies...................................................... 2.5
Pharmaceuticals...................................................................... 2.3
Entertainment........................................................................ 2.1
Professional Services................................................................ 1.7
Food Products........................................................................ 1.7
Personal Products.................................................................... 1.6
Wireless Telecommunication Services.................................................. 1.4
Auto Components...................................................................... 1.3
Road & Rail.......................................................................... 1.2
Electronic Equipment, Instruments & Components....................................... 1.2
Aerospace & Defense.................................................................. 1.2
Building Products.................................................................... 1.1
Construction & Engineering........................................................... 1.1
Capital Markets...................................................................... 1.1
Consumer Finance..................................................................... 1.0
Construction Materials............................................................... 1.0
Semiconductors & Semiconductor Equipment............................................. 1.0
Real Estate Investment Trusts........................................................ 0.9
Internet & Direct Marketing Retail................................................... 0.8
Household Products................................................................... 0.8
Food & Staples Retailing............................................................. 0.7
Metals & Mining...................................................................... 0.7
Industrial Conglomerates............................................................. 0.7
Textiles, Apparel & Luxury Goods..................................................... 0.6
Diversified Consumer Services........................................................ 0.6
Gas Utilities........................................................................ 0.5
Life Sciences Tools & Services....................................................... 0.5
Leisure Products..................................................................... 0.5
Transportation Infrastructure........................................................ 0.4
Energy Equipment & Services.......................................................... 0.4
Health Care Equipment & Supplies..................................................... 0.3
Airlines............................................................................. 0.2
Paper & Forest Products.............................................................. 0.2
Interactive Media & Services......................................................... 0.2
Household Durables................................................................... 0.2
Electric Utilities................................................................... 0.2
Multiline Retail..................................................................... 0.1
-----
101.5%
=====
Credit Quality+#
Baa3............. 1.5%
Ba3.............. 16.2
Ba2.............. 15.0
Ba1.............. 4.9
B3............... 6.1
B2............... 25.9
B1............... 22.2
Caa3............. 0.5
Caa2............. 4.6
Caa1............. 1.7
Not Rated@....... 1.4
-----
100.0%
=====
--------
* Calculated as a percentage of net assets.
@ Represents debt issues that either have no rating, or the rating is
unavailable from the data source.
+ Source: Moody's
# Calculated as a percentage of total debt issues, excluding short-term
securities.
10
AIG Senior Floating Rate Fund
PORTFOLIO OF INVESTMENTS -- December 31, 2019
Ratings/(1)/
------------
Principal
Interest Reference Maturity Amount**/ Value
Industry Description Type Moody's S&P Rate Rate Date/(2)/ Shares (Note 2)
------------------------------------------------------------------------------------------------------------------------
LOANS(3)(4) -- 88.3%
Aerospace & Defense -- 1.0%
Maxar Technologies, Ltd................. BTL-B B2 B 4.85% 3 ML+2.75% 10/04/2024 497,462 $ 475,076
TransDigm Group, Inc.................... BTL-F Ba3 B+ 4.30 1 ML+2.50% 06/09/2023 1,118,286 1,120,382
TransDigm Group, Inc.................... BTL-E Ba3 B+ 4.30 1 ML+2.50% 05/30/2025 447,037 447,596
----------
2,043,054
----------
Airlines -- 0.2%
WestJet Airlines, Ltd................... BTL-B Ba2 BB- TBD 12/11/2026 500,000 503,661
----------
Auto Components -- 1.0%
Adient US LLC........................... BTL-B Ba2 BB- 6.14-6.19 3 ML+4.25% 05/06/2024 572,125 574,747
Panther BF Aggregator 2 LP(11).......... BTL-B Ba3 B+ 3.75 1 ME+3.75% 04/30/2026 EUR 945,000 1,064,171
Panther BF Aggregator 2 LP.............. BTL-B Ba3 B+ 5.30 1 ML+3.50% 04/30/2026 498,750 499,997
----------
2,138,915
----------
Building Products -- 1.0%
Advanced Drainage Systems, Inc.......... BTL-B Ba1 BB 4.00 3 ML+2.25% 07/31/2026 185,714 187,107
NCI Building Systems, Inc............... BTL-B B2 B+ 5.49 1 ML+3.75% 04/12/2025 504,552 502,240
TAMKO Building Products, Inc............ BTL-B B2 BB- 4.95 1 ML+3.25% 06/01/2026 63,204 63,599
TAMKO Building Products, Inc............ BTL-B B2 BB- 5.16 3 ML+3.25% 06/01/2026 320,834 322,839
Wilsonart LLC........................... BTL-D B2 B+ 5.20 3 ML+3.25% 12/19/2023 997,053 998,715
----------
2,074,500
----------
Capital Markets -- 1.1%
Aretec Group, Inc....................... 1st Lien B2 B 6.05 1 ML+4.25% 10/01/2025 613,053 604,368
NFP Corp................................ BTL-B B2 B 4.80 1 ML+3.00% 01/08/2024 673,359 669,992
Russell Investments U.S. Institutional
Holdco, Inc............................ BTL-B Ba2 BB- 5.05 1 ML+3.25% 06/01/2023 402,634 402,332
Victory Capital Holdings, Inc........... BTL-B Ba3 BB- 5.35 3 ML+3.25% 07/01/2026 509,737 512,923
----------
2,189,615
----------
Chemicals -- 3.1%
Allnex (Lux) & Cy SCA................... BTL-B2 B2 B 5.16 3 ML+3.25% 09/13/2023 257,552 255,406
Allnex USA, Inc......................... BTL-B3 B2 B 5.16 3 ML+3.25% 09/13/2023 194,045 192,428
CTC AcquiCo GmbH(11).................... BTL-B1 B2 B 2.50 3 ME+2.50% 03/07/2025 EUR 381,271 424,082
H.B. Fuller Company..................... BTL-B Ba2 BB+ 3.76 1 ML+2.00% 10/20/2024 533,753 534,503
Hexion, Inc............................. BTL Ba3 BB- 5.60 3 ML+3.50% 07/01/2026 392,651 394,123
Messer Industries GmbH.................. BTL-B1 B1 BB- 4.44 3 ML+2.50% 03/01/2026 559,516 562,197
Messer Industries GmbH(11).............. BTL-B2 B1 BB- 2.50 3 ME+2.50% 03/01/2026 EUR 220,000 247,946
Minerals Technologies, Inc.............. BTL-B1 Ba2 BB+ 3.95-4.05 1 ML+2.25% 02/14/2024 753,876 755,447
Minerals Technologies, Inc.............. BTL-B1 Ba2 BB+ 4.19 3 ML+2.25% 02/14/2024 112,912 113,147
Momentive Performance Materials, Inc.... BTL-B B1 BB- 5.05 1 ML+3.25% 05/15/2024 502,475 498,392
Starfruit Finco BV(11).................. BTL-B B1 B+ 3.75 3 ME+3.75% 10/01/2025 EUR 165,000 186,507
Starfruit Finco BV...................... BTL-B B1 B+ 4.96 1 ML+3.25% 10/01/2025 401,369 401,369
Tronox Finance LLC...................... BTL-B Ba3 BB- 4.55 1 ML+2.75% 09/23/2024 473,971 474,342
Tronox Finance LLC...................... BTL-B Ba3 BB- 4.69 3 ML+2.75% 09/23/2024 334,438 334,699
U.S. Coating Acquisition, Inc........... BTL-B2 Ba1 BBB- 3.69 3 ML+1.75% 06/01/2024 451,950 452,571
WR Grace & Co........................... BTL-B1 Ba1 BBB- 3.69 3 ML+1.75% 04/03/2025 183,727 184,416
WR Grace & Co........................... BTL-B2 Ba1 BBB- 3.69 3 ML+1.75% 04/03/2025 314,960 316,142
----------
6,327,717
----------
Commercial Services & Supplies -- 5.4%
ADS Waste Holdings, Inc................. BTL-B3 Ba3 BB+ 3.85 1 WL+2.25% 11/10/2023 968,444 971,774
Allied Universal Holdco LLC............. BTL B3 NR 6.05 1 ML+4.25% 07/10/2026 45,318 45,556
Allied Universal Holdco LLC............. BTL-B B3 NR 6.05 1 ML+4.25% 07/10/2026 457,712 460,115
Brickman Group, Ltd..................... BTL-B B1 BB- 4.25 3 ML+2.50% 08/15/2025 676,918 681,149
Brickman Group, Ltd..................... BTL-B B1 BB- 4.31 1 ML+2.50% 08/15/2025 557,787 561,273
Clean Harbors, Inc...................... BTL-B Ba1 BBB- 3.55 1 ML+1.75% 06/28/2024 539,155 541,851
Garda World Security Corp............... BTL-B B1 B 6.66 3 ML+4.75% 10/30/2026 410,000 411,879
11
AIG Senior Floating Rate Fund
PORTFOLIO OF INVESTMENTS -- December 31, 2019 -- (continued)
Ratings/(1)/
------------
Principal
Interest Reference Maturity Amount**/ Value
Industry Description Type Moody's S&P Rate Rate Date/(2)/ Shares (Note 2)
-------------------------------------------------------------------------------------------------------------------------------
Commercial Services & Supplies (continued)
Grizzly Acquisition, Inc..................... BTL-B Ba3 BB+ 5.35% 3 ML+3.25% 10/01/2025 723,319 $ 722,802
IAA Spinco, Inc.............................. BTL-B Ba2 BB 4.06 1 ML+2.25% 06/28/2026 194,000 195,132
KAR Auction Services, Inc.................... BTL-B6 Ba2 BB- 4.06 1 ML+2.25% 09/19/2026 498,750 502,075
Pitney Bowes, Inc............................ BTL-B Ba1 BBB- TBD 12/05/2026 910,000 896,350
PSAV Holdings LLC............................ 1st Lien B2 B- 4.94 1 ML+3.25% 03/03/2025 484,044 482,833
PSAV Holdings LLC............................ 1st Lien B2 B- 5.21-5.23 3 ML+3.25% 03/03/2025 510,995 509,718
PSAV Holdings LLC............................ 2nd Lien Caa2 CCC 9.16 3 ML+7.25% 09/01/2025 870,000 817,800
Techem Verwaltungsgesellschaft
675 mbH(11)................................. BTL-B3 B1 B+ 3.50 3 ME+3.50% 07/31/2025 EUR 1,335,776 1,506,581
US Ecology, Inc.............................. BTL-B Ba3 BB+ 4.30 1 ML+2.50% 08/14/2026 325,000 327,234
Verisure Holding AB(11)...................... BTL-B B1 B 3.50 3 ME+3.50% 10/21/2022 EUR 1,290,000 1,454,487
-----------
11,088,609
-----------
Construction & Engineering -- 0.8%
Brand Energy & Infrastructure Services, Inc.. 1st Lien B3 B- 6.18-6.29 3 ML+4.25% 06/21/2024 1,003,401 999,459
Hamilton Holdco, LLC......................... BTL-B Ba1 BB+ 3.95 3 ML+2.00% 01/02/2027 720,320 720,320
-----------
1,719,779
-----------
Construction Materials -- 1.0%
Quikrete Holdings, Inc....................... 1st Lien B1 BB- 4.55 1 ML+2.75% 11/15/2023 1,153,846 1,158,792
Summit Materials LLC......................... BTL-B Ba2 BBB- 3.80 1 ML+2.00% 11/21/2024 891,800 895,144
-----------
2,053,936
-----------
Consumer Finance -- 0.7%
Capital Automotive LP........................ 2nd Lien B3 CCC+ 7.80 1 ML+6.00% 03/24/2025 343,741 344,386
GreenSky Holdings, Inc....................... BTL-B B1 B+ 5.06 1 ML+3.25% 03/31/2025 996,846 996,846
-----------
1,341,232
-----------
Containers & Packaging -- 3.8%
Berlin Packaging LLC......................... BTL-B B3 B- 4.70 1 ML+3.00% 11/07/2025 431,984 428,127
Berlin Packaging LLC......................... BTL-B B3 B- 4.81-4.95 3 ML+3.00% 11/07/2025 89,498 88,699
Berry Plastics Holding Corp.(11)............. BTL-V NR BBB- 2.50 1 ME+2.50% 07/01/2026 EUR 641,775 720,136
Berry Plastics Holding Corp.................. BTL-W Ba2 BBB- 3.72 1 ML+2.00% 10/01/2022 1,478,913 1,483,931
Berry Plastics Holding Corp.................. BTL-U Ba2 BBB- 4.22 3 ML+2.50% 07/01/2026 1,223,850 1,226,740
Flex Acquisition Co., Inc.................... 1st Lien B2 B 4.69 1 ML+3.00% 12/29/2023 11,451 11,339
Flex Acquisition Co., Inc.................... 1st Lien B2 B 5.10 3 ML+3.00% 12/29/2023 625,243 619,147
Flex Acquisition Co., Inc.................... BTL B2 B 5.35 3 ML+3.25% 06/29/2025 489,259 484,856
Pregis TopCo Corporation..................... BTL B2 B 5.80 1 ML+4.00% 07/31/2026 400,000 399,833
ProAmpac PG Borrower LLC..................... 1st Lien B3 B- 5.34 2 ML+3.50% 11/20/2023 146,796 144,472
ProAmpac PG Borrower LLC..................... 1st Lien B3 B- 5.40-5.44 3 ML+3.50% 11/20/2023 252,810 248,807
ProAmpac PG Borrower LLC..................... 2nd Lien Caa2 CCC 10.40 3 ML+8.50% 11/18/2024 385,000 359,975
Reynolds Group Holdings, Inc................. BTL B1 B+ 4.55 1 ML+2.75% 02/05/2023 1,659,226 1,663,374
-----------
7,879,436
-----------
Diversified Consumer Services -- 0.6%
Belron Finance US LLC........................ BTL-B Ba3 BB 4.15 3 ML+2.25% 11/13/2025 594,000 596,970
Belron Finance US LLC........................ BTL-B Ba3 BB 4.44 3 ML+2.50% 11/07/2026 150,000 150,375
Weight Watchers International, Inc........... BTL-B Ba2 BB- 6.72 3 ML+4.75% 11/29/2024 455,110 455,565
-----------
1,202,910
-----------
Diversified Financial Services -- 2.9%
EVO Payments International LLC............... 1st Lien B2 B 5.05 1 ML+3.25% 12/22/2023 1,780,421 1,791,549
Financial & Risk US Holdings, Inc............ BTL-B B2 B 5.05 3 ME+3.25% 10/01/2025 EUR 99,000 111,760
Financial & Risk US Holdings, Inc............ BTL-B B2 B 5.05 1 ML+3.25% 10/01/2025 564,300 568,768
Millennium Trust Company, LLC................ BTL-B B2 B 6.80 1 ML+5.00% 03/27/2026 421,812 413,376
MPH Acquisition Holdings LLC................. BTL-B B1 B+ 4.69 3 ML+2.75% 06/07/2023 1,061,068 1,044,709
NAB Holdings LLC............................. BTL B2 B 4.94 3 ML+3.00% 07/01/2024 498,787 498,787
Nets Holding AS(11).......................... BTL-B B1 B 3.25 3 ME+3.25% 02/06/2025 EUR 798,159 890,679
12
AIG Senior Floating Rate Fund
PORTFOLIO OF INVESTMENTS -- December 31, 2019 -- (continued)
Ratings/(1)/
------------
Principal
Interest Reference Maturity Amount**/
Industry Description Type Moody's S&P Rate Rate Date/(2)/ Shares
-------------------------------------------------------------------------------------------------------------------------
Diversified Financial Services (continued)
Trans Union LLC........................... BTL-B5 Ba2 BB+ 3.55% 1 ML+1.75% 11/16/2026 709,671
Diversified Telecommunication Services -- 2.7%
Altice France SA.......................... BTL-B12 B2 B 5.43 1 ML+3.69% 01/31/2026 1,000,373
Centurylink Escrow LLC.................... BTL-B Ba3 BBB- 4.55 1 ML+2.75% 01/31/2025 642,679
MTN Infrastructure TopCo, Inc............. BTL-B B2 B 4.80 1 ML+3.00% 11/15/2024 1,492,713
Telenet Bidco NV.......................... BTL-AN Ba3 BB- 3.99 1 ML+2.25% 08/15/2026 1,020,000
Zacapa SARL............................... BTL B2 B- 6.94 3 ML+5.00% 07/02/2025 528,313
Zayo Group LLC............................ BTL Ba2 BB 4.05 1 ML+2.25% 01/19/2024 906,388
Electric Utilities -- 0.2%
Pike Corp................................. BTL-B NR B 5.05 1 ML+3.25% 07/24/2026 428,678
Entertainment -- 2.1%
Crown Finance US, Inc.(11)................ BTL NR BB- 2.38 1 ME+2.38% 02/28/2025 EUR 132,742
Crown Finance US, Inc..................... BTL B1 BB- 4.05 1 ML+2.25% 02/28/2025 588,276
Delta 2 (Lux) SARL........................ BTL-B B2 B+ 4.30 1 ML+2.50% 02/01/2024 1,750,951
NAI Entertainment Holdings LLC............ BTL-B B1 BB 4.30 1 ML+2.50% 05/08/2025 474,000
Nascar Holdings, Inc...................... BTL-B Ba2 BB 4.49 3 ML+2.75% 10/19/2026 245,894
UFC Holdings LLC.......................... BTL B2 B 5.50 1 ML+3.25% 04/29/2026 457,048
William Morris Endeavor Entertainment
LLC...................................... BTL-B1 B2 B 4.55 1 ML+2.75% 05/18/2025 327,872
William Morris Endeavor Entertainment
LLC...................................... BTL-B1 B2 B 4.68 3 ML+2.75% 05/18/2025 245,098
Electronic Equipment, Instruments & Components -- 0.7%
APX Group, Inc............................ BTL-B B2 B- 6.84 2 ML+5.00% 04/01/2024 638,571
APX Group, Inc............................ BTL-B B2 B- 8.75 USFRBPLR+4.00% 04/01/2024 699
Avantor, Inc.............................. 1st Lien Ba2 B+ 4.80 1 ML+3.00% 11/21/2024 173,369
Lifescan Global Corporation............... BTL-B B2 B 8.06 6 ML+6.00% 10/01/2024 697,500
Energy Equipment & Services -- 0.4%
Paragon Offshore, Ltd.+(5)................ Escrow Holding NR NR 6.00 07/18/2021 4,516
Philadelphia Energy Solutions LLC+(5)(13). BTL-C NR NR 6.99 3 ML+0.50% 12/31/2022 794,253
Seadrill Partners Finco LLC............... BTL-B Caa2 CCC 7.94 3 ML+6.00% 02/21/2021 877,378
Food & Staples Retailing -- 0.7%
U.S. Foods, Inc........................... BTL-B Ba3 BB+ 3.55 1 ML+1.75% 06/27/2023 974,906
U.S. Foods, Inc........................... BTL-B Ba3 BB+ 3.80 1 ML+2.00% 09/13/2026 538,650
Food Products -- 1.6%
Atkins Nutritionals, Inc.................. BTL-B B1 B+ 5.73 3 ML+3.75% 07/07/2024 475,000
Bellring Brands LLC....................... BTL-B B2 B+ 6.80 1 ML+5.00% 10/21/2024 165,000
B&G Foods, Inc............................ BTL-B Ba2 BB 4.30 1 ML+2.50% 10/10/2026 354,112
CHG PPC Parent LLC........................ BTL-B B2 B 4.55 1 ML+2.75% 03/31/2025 423,550
Hostess Brands LLC........................ BTL B1 BB- 4.05 1 ML+2.25% 08/03/2025 232,466
Hostess Brands LLC........................ BTL B1 BB- 4.18 3 ML+2.25% 08/03/2025 522,220
Hostess Brands LLC........................ BTL B1 BB- TBD 08/03/2025 299,250
Pinnacle Operating Corp.(10).............. BTL Caa3 NR 9.05 1 ML+5.50% 11/15/2021 771,370
Gas Utilities -- 0.5%
UGI Energy Services LLC................... BTL-B Ba3 NR 5.55 1 ML+3.75% 08/13/2026 1,073,977
Value
Industry Description (Note 2)
-------------------------------------------------------
Diversified Financial Services (continued)
Trans Union LLC........................... $ 712,221
----------
6,031,849
----------
Diversified Telecommunication Services -- 2.7%
Altice France SA.......................... 1,000,373
Centurylink Escrow LLC.................... 644,731
MTN Infrastructure TopCo, Inc............. 1,491,313
Telenet Bidco NV.......................... 1,025,418
Zacapa SARL............................... 532,275
Zayo Group LLC............................ 908,402
----------
5,602,512
----------
Electric Utilities -- 0.2%
Pike Corp................................. 430,821
----------
Entertainment -- 2.1%
Crown Finance US, Inc.(11)................ 149,046
Crown Finance US, Inc..................... 586,969
Delta 2 (Lux) SARL........................ 1,756,970
NAI Entertainment Holdings LLC............ 473,111
Nascar Holdings, Inc...................... 248,314
UFC Holdings LLC.......................... 459,676
William Morris Endeavor Entertainment
LLC...................................... 326,151
William Morris Endeavor Entertainment
LLC...................................... 243,811
----------
4,244,048
----------
Electronic Equipment, Instruments & Components -- 0.7%
APX Group, Inc............................ 638,837
APX Group, Inc............................ 699
Avantor, Inc.............................. 174,019
Lifescan Global Corporation............... 662,407
----------
1,475,962
----------
Energy Equipment & Services -- 0.4%
Paragon Offshore, Ltd.+(5)................ 0
Philadelphia Energy Solutions LLC+(5)(13). 293,874
Seadrill Partners Finco LLC............... 435,033
----------
728,907
----------
Food & Staples Retailing -- 0.7%
U.S. Foods, Inc........................... 977,169
U.S. Foods, Inc........................... 540,486
----------
1,517,655
----------
Food Products -- 1.6%
Atkins Nutritionals, Inc.................. 478,563
Bellring Brands LLC....................... 166,650
B&G Foods, Inc............................ 356,621
CHG PPC Parent LLC........................ 424,079
Hostess Brands LLC........................ 232,922
Hostess Brands LLC........................ 523,246
Hostess Brands LLC........................ 299,838
Pinnacle Operating Corp.(10).............. 759,800
----------
3,241,719
----------
Gas Utilities -- 0.5%
UGI Energy Services LLC................... 1,078,004
----------
13
AIG Senior Floating Rate Fund
PORTFOLIO OF INVESTMENTS -- December 31, 2019 -- (continued)
Ratings/(1)/
------------
Principal
Interest Reference Maturity Amount**/ Value
Industry Description Type Moody's S&P Rate Rate Date/(2)/ Shares (Note 2)
-------------------------------------------------------------------------------------------------------------------------------
Health Care Equipment & Supplies -- 0.3%
Agiliti Health, Inc................... BTL-B B1 B+ 4.75% 1 ML+3.00% 01/04/2026 461,512 $ 463,820
CPI Holdco LLC........................ BTL B2 B 6.19 3 ML+4.25% 11/04/2026 180,000 180,450
-----------
644,270
-----------
Health Care Providers & Services -- 4.7%
Air Medical Group Holdings, Inc....... BTL-B1 B1 B 5.04 1 ML+3.25% 04/28/2022 244,221 238,268
Catalent Pharma Solutions, Inc........ BTL-B2 Ba3 BB 4.05 1 ML+2.25% 05/18/2026 580,612 582,548
Change Healthcare Holdings, Inc....... BTL-B B1 B+ 4.30 1 ML+2.50% 03/01/2024 937,142 939,680
Dental Corp. Perfect Smile ULC........ 1st Lien B2 B- 5.55 1 ML+3.75% 06/06/2025 501,868 498,522
DuPage Medical Group, Ltd............. 1st Lien B1 B 4.55 1 ML+2.75% 08/15/2024 609,324 606,277
DuPage Medical Group, Ltd............. 2nd Lien Caa1 CCC+ 8.80 1 ML+7.00% 08/15/2025 623,968 608,369
Envision Healthcare Corp.............. 1st Lien B2 B 5.55 1 ML+3.75% 10/10/2025 356,384 302,926
Gentiva Health Services, Inc.......... BTL-B B1 B 5.56 1 ML+3.75% 07/02/2025 995,821 1,000,177
Healogics, Inc........................ 1st Lien Caa2 CCC- 6.15 3 ML+4.25% 07/01/2021 957,640 693,890
MED ParentCo LP....................... 1st Lien B2 B 6.05 1 ML+4.25% 08/31/2026 651,669 651,669
MED ParentCo LP(6).................... Delayed Draw B2 B 0.50-6.06 1 ML+4.25% 08/31/2026 163,045 163,045
NVA Holdings, Inc..................... BTL-B3 B2 B 6.50 USFRBPLR+1.75% 02/02/2025 700,161 699,177
NVA Holdings, Inc..................... BTL-B4 B2 B 7.25 USFRBPLR+2.50% 02/02/2025 636,800 635,208
Pharmaceutical Product Development,
Inc.................................. BTL-B Ba3 B 4.30 1 ML+2.50% 08/18/2022 784,799 788,286
Sound Inpatient Physicians............ 1st Lien Ba3 B 4.55 1 ML+2.75% 06/27/2025 567,119 568,537
Surgery Center Holdings, Inc.......... 1st Lien B1 B- 5.05 1 ML+3.25% 09/02/2024 789,405 785,458
-----------
9,762,037
-----------
Hotels, Restaurants & Leisure -- 7.8%
8th Avenue Food & Provisions, Inc..... 1st Lien B2 B- 5.49 1 ML+3.75% 10/01/2025 420,750 422,065
8th Avenue Food & Provisions, Inc..... 2nd Lien Caa1 CCC 9.49 1 ML+7.75% 10/01/2026 270,000 264,600
Aramark Services, Inc................. BTL-B1 Ba1 BBB- 3.55 1 ML+1.75% 03/11/2025 596,904 598,769
Aramark Services, Inc................. BTL-B4 Ba1 BBB- TBD 01/15/2027 380,000 381,663
Boyd Gaming Corp...................... BTL-B3 Ba2 BB 3.85 1 WL+2.25% 09/15/2023 647,596 651,368
Caesars Entertainment Operating Co.,
Inc.................................. BTL-B B1 BB 3.80 1 ML+2.00% 10/07/2024 1,579,874 1,588,761
Caesars Resort Collection LLC......... BTL-B Ba3 BB 4.55 1 ML+2.75% 12/23/2024 2,888,538 2,889,742
Carrols Restaurant Group, Inc......... BTL-B B2 B 5.05 1 ML+3.25% 04/30/2026 636,800 626,452
CityCenter Holdings LLC............... BTL-B B1 BB- 4.05 1 ML+2.25% 04/18/2024 1,475,854 1,480,851
Eldorado Resorts LLC.................. BTL-B Ba1 BB 4.00 3 ML+2.25% 04/17/2024 145,701 145,564
Eldorado Resorts LLC.................. BTL-B Ba1 BB 4.06 1 ML+2.25% 04/17/2024 446,303 445,884
Four Seasons Holdings, Inc............ 1st Lien Ba3 BB+ 3.80 1 ML+2.00% 11/30/2023 601,400 605,242
Golden Entertainment, Inc............. 1st Lien B1 B+ 4.80 1 ML+3.00% 10/21/2024 1,905,875 1,910,640
Hilton Worldwide Finance LLC.......... BTL-B2 Baa3 BBB- 3.54 1 ML+1.75% 06/22/2026 591,190 594,824
IRB Holding Corp...................... BTL-B B2 B+ 5.22 3 ML+3.25% 02/05/2025 380,163 381,747
Penn National Gaming, Inc............. BTL-B Ba2 BB 4.05 1 ML+2.25% 10/15/2025 697,950 700,327
Playtika Holding Corp................. BTL-B B1 B+ TBD 12/10/2024 1,045,000 1,054,928
Scientific Games International, Inc... BTL-B5 B1 B+ 4.55 1 ML+2.75% 08/14/2024 573,706 574,628
Station Casinos, Inc.................. BTL-B Ba3 BB- 4.30 1 ML+2.50% 06/08/2023 680,942 683,185
-----------
16,001,240
-----------
Household Durables -- 0.2%
Installed Building Products, Inc...... BTL-B Ba3 BB+ TBD 04/15/2025 500,000 500,470
-----------
Household Products -- 0.8%
Diamond (BC) BV(11)................... BTL B1 B- 3.25 3 ME+3.25% 09/06/2024 EUR 205,800 225,710
Diamond (BC) BV....................... BTL B1 B- 4.93 3 ML+3.00% 09/06/2024 896,700 877,645
Energizer Holdings, Inc............... BTL-B Ba1 BB+ 4.00 1 ML+2.25% 12/17/2025 201,300 202,115
Prestige Brands, Inc.................. BTL-B4 Ba3 BB 3.80 1 ML+2.00% 01/26/2024 242,619 244,059
-----------
1,549,529
-----------
Industrial Conglomerates -- 0.3%
Ameriforge Group, Inc................. BTL NR NR 8.94 3 ML+7.00% 06/08/2022 105,390 104,599
14
AIG Senior Floating Rate Fund
PORTFOLIO OF INVESTMENTS -- December 31, 2019 -- (continued)
Ratings/(1)/
------------
Principal
Interest Reference Maturity Amount**/ Value
Industry Description Type Moody's S&P Rate Rate Date/(2)/ Shares (Note 2)
--------------------------------------------------------------------------------------------------------------------------
Industrial Conglomerates (continued)
UTEX Industries, Inc.................. 1st Lien Caa1 CCC 5.80% 1 ML+4.00% 05/22/2021 674,202 $ 490,482
----------
595,081
----------
Insurance -- 3.6%
Asurion LLC........................... BTL-B4 Ba3 B+ 4.80 1 ML+3.00% 08/04/2022 765,571 769,590
Asurion LLC........................... BTL-B6 Ba3 B+ 4.80 1 ML+3.00% 11/03/2023 835,782 840,309
Asurion LLC........................... BTL-B7 Ba3 B+ 4.80 1 ML+3.00% 11/03/2024 507,225 509,656
Asurion LLC........................... 2nd Lien B3 B 8.30 1 ML+6.50% 08/04/2025 1,480,000 1,496,650
Compass Investments, Inc.............. BTL-B B2 B 4.94 3 ML+3.00% 05/16/2024 1,076,793 1,075,447
Hub International, Ltd................ BTL-B B2 B 4.69 3 ML+2.75% 04/25/2025 970,225 968,861
Sedgwick Claims Management Services,
Inc.................................. BTL-B B2 B 5.05 1 ML+3.25% 12/31/2025 1,538,141 1,538,141
Sedgwick Claims Management Services,
Inc.................................. BTL-B B2 B 5.80 1 ML+4.00% 09/03/2026 164,175 165,324
----------
7,363,978
----------
Interactive Media & Services -- 0.2%
Go Daddy Operating Co. LLC............ BTL-B1 Ba1 BB 3.55 1 ML+1.75% 02/15/2024 498,488 500,980
----------
Internet & Direct Marketing Retail -- 0.8%
Rodan & Fields, LLC................... BTL-B B2 B- 5.74 1 ML+4.00% 06/16/2025 357,536 210,946
Rodan & Fields, LLC................... BTL-B B2 B- 7.75 USFRBPLR+3.00% 06/16/2025 907 535
Shutterfly, Inc....................... BTL-B B1 B 7.80 1 ML+6.00% 09/25/2026 74,194 69,371
Shutterfly, Inc....................... BTL-B B1 B 7.94 3 ML+6.00% 09/25/2026 500,806 468,254
Terrier Media Buyer, Inc.............. BTL-B Ba3 BB- TBD 12/17/2026 920,000 928,434
----------
1,677,540
----------
IT Services -- 3.5%
Blackhawk Network Holdings, Inc....... 1st Lien B1 B 4.80 1 ML+3.00% 06/15/2025 1,582,510 1,582,016
CCC Information Services, Inc......... 1st Lien B2 B 4.55 1 ML+2.75% 04/29/2024 643,500 644,534
EVERTEC Group LLC..................... BTL-B B2 B+ 5.30 1 ML+3.50% 11/27/2024 514,513 515,478
Tempo Acquisition LLC................. BTL-B B1 B 4.45 1 ML+2.75% 05/01/2024 1,116,615 1,122,198
Web.com Group, Inc.................... 1st Lien B2 B+ 5.49 3 ML+3.75% 10/10/2025 463,425 461,687
Web.com Group, Inc.................... BTL-B2 Caa2 CCC+ 9.49 3 ML+7.75% 10/11/2026 633,015 607,167
WEX, Inc.............................. BTL-B3 Ba2 BB- 4.05 1 ML+2.25% 05/15/2026 1,568,752 1,577,576
Xerox Business Services LLC........... BTL-B Ba3 BB+ 4.30 1 ML+2.50% 12/07/2023 634,275 630,839
----------
7,141,495
----------
Leisure Products -- 0.5%
Hayward Industries, Inc............... 1st Lien B3 B 5.30 1 ML+3.50% 08/05/2024 389,782 386,371
SRAM LLC.............................. BTL-B B1 BB- 4.55 1 ML+2.75% 03/15/2024 604,064 607,840
SRAM LLC.............................. BTL-B B1 BB- 6.50 USFRBPLR+1.75% 03/15/2024 13,019 13,100
----------
1,007,311
----------
Life Sciences Tools & Services -- 0.5%
PAREXEL International Corp............ BTL-B B2 B- 4.55 1 ML+2.75% 09/27/2024 482,544 472,169
Syneos Health, Inc.................... BTL-B Ba3 BB 3.80 1 ML+2.00% 08/01/2024 552,656 553,578
----------
1,025,747
----------
Machinery -- 3.3%
Altra Industrial Motion Corp.......... BTL-B Ba2 BB- 3.80 1 ML+2.00% 10/01/2025 489,307 490,326
Brookfield WEC Holdings, Inc.......... 1st Lien B2 B 5.30 1 ML+3.50% 08/01/2025 502,160 504,880
CIRCOR International, Inc............. 1st Lien B1 B 5.24 1 ML+3.50% 12/11/2024 494,537 497,318
Columbus McKinnon Corp................ BTL-B Ba2 BB- 4.45 3 ML+2.50% 01/31/2024 478,978 479,577
Gardner Denver, Inc.(11).............. BTL-B Ba2 BB+ 3.00 1 ME+3.00% 07/30/2024 EUR 1,027,352 1,161,024
Gardner Denver, Inc................... BTL-B Ba2 BB+ 4.55 1 ML+2.75% 07/30/2024 594,905 598,251
Navistar International Corp........... BTL-B Ba2 BB- 5.24 1 ML+3.50% 11/06/2024 543,637 541,599
NN, Inc............................... BTL B3 B TBD 10/19/2022 573,556 562,084
Pro Mach Group, Inc................... BTL-B B2 B- 4.54 1 ML+2.75% 03/07/2025 408,720 404,122
15
AIG Senior Floating Rate Fund
PORTFOLIO OF INVESTMENTS -- December 31, 2019 -- (continued)
Ratings/(1)/
------------
Principal
Interest Reference Maturity Amount**/ Value
Industry Description Type Moody's S&P Rate Rate Date/(2)/ Shares (Note 2)
-----------------------------------------------------------------------------------------------------------------------------
Machinery (continued)
Utility One Source LP....................... BTL-B B2 B 7.30% 1 ML+5.50% 04/18/2023 508,865 $ 511,409
WireCo WorldGroup, Inc...................... 1st Lien B3 B+ 6.80 1 ML+5.00% 09/30/2023 604,687 572,941
Zodiac Pool Solutions LLC................... BTL Ba3 BB 4.05 1 ML+2.25% 07/02/2025 433,400 435,025
-----------
6,758,556
-----------
Media -- 6.4%
Advantage Sales & Marketing LLC............. 1st Lien B2 B- 5.05 1 ML+3.25% 07/23/2021 479,790 461,798
Advantage Sales & Marketing LLC............. 2nd Lien Caa2 CCC 8.30 1 ML+6.50% 07/25/2022 500,000 441,072
Altice Financing SA......................... 1st Lien B2 B+ 4.51 1 ML+2.75% 01/31/2026 498,109 494,995
Charter Communications Operating LLC........ BTL-B2 Ba1 BBB- 3.55 1 ML+1.75% 02/01/2027 650,680 654,340
Clear Channel Outdoor Holdings, Inc......... BTL-B B1 B+ 5.30 1 ML+3.50% 08/21/2026 987,525 992,155
CSC Holdings, Inc........................... BTL-B Ba3 BB 3.99 1 ML+2.25% 07/17/2025 497,859 497,735
CSC Holdings, Inc........................... BTL-B5 Ba3 BB 4.24 1 ML+2.50% 04/15/2027 1,481,250 1,486,805
E.W. Scripps Co............................. BTL-B2 Ba2 BB- 4.30 1 ML+2.50% 05/01/2026 635,208 636,955
Gray Television, Inc........................ BTL-C Ba2 BB 4.20 1 ML+2.50% 01/02/2026 1,482,627 1,488,557
Houghton Mifflin Harcourt Publishing
Company.................................... BTL-B B3 B TBD 11/22/2024 500,000 495,625
ION Media Networks, Inc..................... BTL-B B1 BB- 4.81 1 ML+3.00% 12/18/2024 1,547,167 1,550,068
Liberty Latin America, Ltd.................. BTL-B B1 B+ 6.74 1 ML+5.00% 10/22/2026 295,000 298,319
NEP Group, Inc.............................. 1st Lien B2 B+ 5.05 1 ML+3.25% 10/20/2025 198,000 193,793
NEP Group, Inc.............................. 2nd Lien Caa2 CCC+ 8.80 1 ML+7.00% 10/19/2026 595,000 538,475
Nexstar Broadcasting, Inc................... BTL-B4 Ba3 BB 4.45 1 ML+2.75% 09/18/2026 1,345,000 1,350,977
Sinclair Television Group, Inc.............. BTL-B Ba2 BB+ 4.24 1 ML+2.50% 09/30/2026 641,250 642,853
Univision Communications, Inc............... BTL-C5 B2 B 4.55 1 ML+2.75% 03/15/2024 502,380 495,024
Ziggo Secured Finance Partnership........... BTL-E B1 B+ 4.24 1 ML+2.50% 04/15/2025 500,000 500,000
-----------
13,219,546
-----------
Metals & Mining -- 0.5%
American Rock Salt Co. LLC.................. 1st Lien B2 B 5.55 3 ML+3.75% 03/21/2025 1,003,194 1,000,686
-----------
Multiline Retail -- 0.1%
Neiman Marcus Group Ltd. LLC................ BTL Caa2 CCC+ 7.71 1 ML+6.00% 10/25/2023 303,558 247,704
-----------
Oil, Gas & Consumable Fuels -- 2.2%
BCP Renaissance Parent LLC.................. BTL-B B1 B+ 5.35 2 ML+3.50% 10/31/2024 491,443 435,910
California Resources Corp................... 2nd Lien Caa1 B 12.18 1 ML+10.38% 12/31/2021 500,000 372,500
Foresight Energy LLC........................ 1st Lien Caa1 CCC 7.66 3 ML+5.75% 03/28/2022 1,234,656 528,433
Medallion Midland Acquisition LLC........... 1st Lien B2 B+ 5.05 1 ML+3.25% 10/30/2024 703,677 696,640
Oryx Midstream Services LLC................. BTL-B B2 B 5.80 1 ML+4.00% 05/22/2026 815,900 805,191
Power Buyer LLC............................. 1st Lien B3 B- 5.19 3 ML+3.25% 03/06/2025 1,007,203 896,411
Power Buyer LLC............................. 2nd Lien Caa2 CCC 9.19 3 ML+7.25% 03/06/2026 585,000 409,500
Traverse Midstream Partners LLC............. BTL-B B2 B+ 5.80 1 ML+4.00% 09/27/2024 490,887 440,571
-----------
4,585,156
-----------
Personal Products -- 1.5%
Coty, Inc.(11).............................. BTL-B Ba3 BB- 2.50 1 ME+2.50% 04/07/2025 EUR 812,625 898,608
Coty, Inc................................... BTL-B Ba3 BB- 3.96 1 ML+2.25% 04/07/2025 562,469 548,759
Revlon Consumer Products Corp............... BTL-B B3 CCC+ 5.41 3 ML+3.50% 09/07/2023 765,023 583,808
Sunshine Luxembourg VII SARL................ BTL-B1 B2 B 6.19 3 ML+4.25% 10/01/2026 1,000,000 1,008,393
-----------
3,039,568
-----------
Pharmaceuticals -- 1.5%
Endo Luxembourg Finance Co. I SARL.......... BTL-B B1 B+ 6.06 1 ML+4.25% 04/29/2024 503,388 477,140
Valeant Pharmaceuticals International, Inc.. BTL-B Ba2 BB 4.49 1 ML+2.75% 11/27/2025 1,338,750 1,346,113
Valeant Pharmaceuticals International, Inc.. BTL-B Ba2 BB 4.74 1 ML+3.00% 06/02/2025 1,087,116 1,093,062
-----------
2,916,315
-----------
Professional Services -- 1.7%
AlixPartners LLP(11)........................ BTL B2 NR 3.25 3 ME+3.25% 04/04/2024 EUR 248,125 279,713
AlixPartners LLP............................ BTL-B B2 B+ 4.55 1 ML+2.75% 04/04/2024 1,493,733 1,500,668
16
AIG Senior Floating Rate Fund
PORTFOLIO OF INVESTMENTS -- December 31, 2019 -- (continued)
Ratings/(1)/
------------
Principal
Interest Reference Maturity Amount**/ Value
Industry Description Type Moody's S&P Rate Rate Date/(2)/ Shares (Note 2)
-------------------------------------------------------------------------------------------------------------------------------
Professional Services (continued)
Dun & Bradstreet Corporation................. BTL B2 B- 6.79% 1 ML+5.00% 02/06/2026 1,385,000 $ 1,394,234
Team Health Holdings, Inc.................... 1st Lien B2 B- 4.55 1 ML+2.75% 02/06/2024 485,628 390,758
-----------
3,565,373
-----------
Real Estate Investment Trusts -- 0.9%
MGM Growth Properties Operating Partnership
LP.......................................... BTL-B Ba3 BB+ 3.80 1 ML+2.00% 03/21/2025 380,392 381,683
VICI Properties 1 LLC........................ BTL Ba3 BBB- 3.79 1 ML+2.00% 12/20/2024 1,453,864 1,459,316
-----------
1,840,999
-----------
Road & Rail -- 1.2%
Fly Funding II SARL.......................... BTL-B NR BBB- 3.65 3 ML+1.75% 08/09/2025 1,068,052 1,069,387
Genesee & Wyoming, Inc....................... BTL Ba2 BB+ TBD 12/30/2026 500,000 504,375
Savage Enterprises LLC....................... BTL-B B1 B+ 5.74 1 ML+4.00% 08/01/2025 908,851 919,075
-----------
2,492,837
-----------
Semiconductors & Semiconductor Equipment -- 1.0%
Cabot Microelectronics Corp.................. BTL-B1 Ba2 BB+ 3.81 1 ML+2.00% 11/17/2025 470,454 471,630
Entegris, Inc................................ BTL-B Baa3 BBB- 3.80 1 ML+2.00% 11/06/2025 990,000 994,125
Microchip Technology, Inc.................... BTL-B Baa3 BB+ 3.80 1 ML+2.00% 05/29/2025 563,394 567,619
-----------
2,033,374
-----------
Software -- 6.6%
Almonde, Inc................................. 1st Lien B2 B- 5.70 2 ML+3.50% 06/13/2024 99,877 99,087
Almonde, Inc................................. 1st Lien B2 B- 5.70 6 ML+3.50% 06/13/2024 647,030 641,907
Almonde, Inc................................. 2nd Lien Caa2 CCC 9.45 6 ML+7.25% 06/13/2025 230,000 224,250
Ceridian HCM Holding, Inc.................... BTL-B B2 B 4.80 1 ML+3.00% 04/30/2025 577,850 580,980
Dcert Buyer, Inc............................. BTL-B B2 B- 5.80 1 ML+4.00% 10/16/2026 500,000 500,625
Emerald Topco, Inc........................... BTL B2 B 5.30 1 ML+3.50% 07/24/2026 443,887 445,996
Epicore Software Co.......................... 1st Lien B2 B- 5.05 1 ML+3.25% 06/01/2022 1,093,634 1,098,931
Hyland Software, Inc......................... 1st Lien B1 B- 5.30 1 ML+3.50% 07/01/2024 967,356 972,192
Hyland Software, Inc......................... 2nd Lien Caa1 CCC 8.80 1 ML+7.00% 07/07/2025 535,000 541,242
IQVIA, Inc.(11).............................. BTL-B2 Ba1 BBB- 2.00 3 ME+2.00% 06/11/2025 EUR 1,167,225 1,313,458
Infor US, Inc................................ BTL-B6 Ba3 B 4.69 3 ML+2.75% 02/01/2022 675,698 678,232
MA FinanceCo. LLC............................ BTL-B3 B1 BB- 4.30 1 ML+2.50% 06/21/2024 123,320 123,436
McAfee LLC................................... BTL-B1 B2 B 5.55 1 ML+3.75% 09/30/2024 183,606 184,340
Quest Software US Holdings, Inc.............. 1st Lien B2 B+ 6.18 3 ML+4.25% 05/16/2025 506,175 500,480
RP Crown Parent LLC.......................... BTL-B B1 B 4.55 1 ML+2.75% 10/12/2023 763,557 766,102
Seattle Spinco, Inc.......................... BTL-B3 B1 BB- 4.30 1 ML+2.50% 06/21/2024 832,815 833,596
SS&C Technologies, Inc....................... BTL-B3 Ba2 BB+ 4.05 1 ML+2.25% 04/16/2025 534,210 537,466
SS&C Technologies, Inc....................... BTL-B4 Ba2 BB+ 4.05 1 ML+2.25% 04/16/2025 370,394 372,651
SS&C Technologies, Inc....................... BTL-B5 Ba2 BB+ 4.05 1 ML+2.25% 04/16/2025 1,362,562 1,371,078
Ultimate Software Group, Inc................. BTL-B B2 B 5.55 1 ML+3.75% 05/04/2026 678,300 681,409
Zelis Payments Buyer, Inc.................... BTL-B B2 B 6.55 1 ML+4.75% 09/30/2026 1,000,000 1,003,333
-----------
13,470,791
-----------
Specialty Retail -- 2.2%
At Home Holding III, Inc..................... BTL Caa1 B 5.43 3 ML+3.50% 06/03/2022 671,458 567,382
Bass Pro Group LLC........................... BTL-B B1 B+ 6.80 1 ML+5.00% 09/25/2024 1,184,489 1,178,567
Foundation Building Materials Holding Co.
LLC......................................... BTL-B B2 BB- 4.80 1 ML+3.00% 08/13/2025 495,000 496,547
J. Crew Group, Inc........................... BTL-B Caa2 CC 4.80 1 ML+3.00% 03/05/2021 388,913 351,772
J. Crew Group, Inc........................... BTL-B Caa2 CC 4.93-4.96 3 ML+3.00% 03/05/2021 320,873 290,230
PetSmart, Inc................................ BTL-B2 B2 B 5.74 1 ML+4.00% 03/11/2022 553,647 547,495
SRS Distribution, Inc........................ BTL-B B3 B TBD 05/23/2025 355,000 353,669
Staples, Inc................................. BTL-B B1 B+ 6.69 1 ML+5.00% 04/16/2026 654,206 641,531
-----------
4,427,193
-----------
17
AIG Senior Floating Rate Fund
PORTFOLIO OF INVESTMENTS -- December 31, 2019 -- (continued)
Ratings/(1)/
------------
Principal
Interest Reference Maturity Amount**/
Industry Description Type Moody's S&P Rate Rate Date/(2)/ Shares
---------------------------------------------------------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods -- 0.6%
ASP Unifrax Holdings, Inc..................... BTL-B1 B3 B- 5.69% 3 ML+3.75% 12/12/2025 990,316
ASP Unifrax Holdings, Inc..................... BTL-B2 Caa2 CCC+ 10.39 3 ML+8.50% 12/14/2026 375,000
Trading Companies & Distributors -- 2.1%
ABC Supply Co., Inc........................... BTL-B B1 BB+ 3.80 1 ML+2.00% 01/15/2027 997,500
Beacon Roofing Supply, Inc.................... BTL-B B1 BB 4.05 1 ML+2.25% 01/02/2025 442,125
HD Supply, Inc................................ BTL-B5 Ba1 BBB- 3.55 1 ML+1.75% 10/17/2023 1,063,020
HD Supply Waterworks, Ltd..................... BTL-B B2 B+ 4.44 1 ML+2.75% 08/01/2024 269,559
HD Supply Waterworks, Ltd..................... BTL-B B2 B+ 4.66 3 ML+2.75% 08/01/2024 173,381
Resideo Funding, Inc.......................... BTL-B Ba2 BBB- 4.20 3 ML+2.25% 10/24/2025 301,950
Sage Borrowco LLC............................. BTL-B B2 B 6.55 1 ML+4.75% 06/20/2026 477,351
Univar USA, Inc............................... BTL-B3 Ba3 BB+ 4.05 1 ML+2.25% 07/01/2024 470,139
Univar USA, Inc............................... BTL-B5 Ba3 BB+ TBD 07/01/2026 170,000
Transportation Infrastructure -- 0.4%
DAE Aviation Holdings, Inc.................... BTL-B1 B2 B 5.94 3 ML+4.00% 04/06/2026 520,686
Dynasty Acquisition Co., Inc.................. BTL-B2 B2 B 5.94 3 ML+4.00% 04/04/2026 279,939
Wireless Telecommunication Services -- 1.4%
Sprint Communications, Inc.................... BTL-B Ba2 BB- 4.31 1 ML+2.50% 02/02/2024 2,191,827
Sprint Communications, Inc.................... BTL-B Ba2 BB- 4.81 1 ML+3.00% 02/02/2024 608,850
Total Loans (cost $184,718,151)...............
U.S. CORPORATE BONDS & NOTES -- 4.8%
Aerospace & Defense -- 0.2%
SSL Robotics LLC*............................. Senior Sec. Notes B2 B 9.75 12/31/2023 300,000
Building Products -- 0.1%
Advanced Drainage Systems, Inc.*.............. Company Guar. Notes B1 B 5.00 09/30/2027 220,000
Construction & Engineering -- 0.2%
Brand Energy & Infrastructure Services, Inc.*. Senior Notes Caa2 CCC 8.50 07/15/2025 500,000
Containers & Packaging -- 0.6%
Reynolds Group Issuer, Inc. FRS*.............. Senior Sec. Notes B1 B+ 5.50 3 ML+3.50% 07/15/2021 1,245,000
Electronic Equipment, Instruments & Components -- 0.5%
APX Group, Inc................................ Company Guar. Notes Caa2 CCC 8.75 12/01/2020 1,000,000
Food Products -- 0.1%
Darling Ingredients, Inc.*.................... Company Guar. Notes Ba3 BB+ 5.25 04/15/2027 130,000
Health Care Providers & Services -- 0.2%
Centene Corp.*................................ Senior Notes Ba1 BBB- 4.63 12/15/2029 465,000
Hotels, Restaurants & Leisure -- 0.2%
Boyd Gaming Corp.*............................ Company Guar. Notes B3 B+ 4.75 12/01/2027 400,000
Insurance -- 0.4%
Acrisure LLC / Acrisure Finance, Inc.*........ Senior Sec. Notes B2 B 8.13 02/15/2024 670,000
Media -- 0.2%
Houghton Mifflin Harcourt Publishers, Inc.*... Senior Sec. Notes B3 B 9.00 02/15/2025 500,000
Multi Utilities -- 0.0%
Texas Competitive Electric Holdings Co. LLC*.. Escrow Notes NR NR 6.25 10/01/2020 4,174,956
Oil, Gas & Consumable Fuels -- 0.3%
Chesapeake Energy Corp.*...................... Sec. Notes Caa2 B- 11.50 01/01/2025 310,000
Foresight Energy/Finance*..................... Sec. Notes Caa3 D 11.50 04/01/2023 715,000
Value
Industry Description (Note 2)
-------------------------------------------------------------
Textiles, Apparel & Luxury Goods -- 0.6%
ASP Unifrax Holdings, Inc..................... $ 892,935
ASP Unifrax Holdings, Inc..................... 320,625
------------
1,213,560
------------
Trading Companies & Distributors -- 2.1%
ABC Supply Co., Inc........................... 999,994
Beacon Roofing Supply, Inc.................... 443,691
HD Supply, Inc................................ 1,069,319
HD Supply Waterworks, Ltd..................... 268,773
HD Supply Waterworks, Ltd..................... 172,875
Resideo Funding, Inc.......................... 299,308
Sage Borrowco LLC............................. 480,334
Univar USA, Inc............................... 471,902
Univar USA, Inc............................... 170,425
------------
4,376,621
------------
Transportation Infrastructure -- 0.4%
DAE Aviation Holdings, Inc.................... 524,220
Dynasty Acquisition Co., Inc.................. 281,839
------------
806,059
------------
Wireless Telecommunication Services -- 1.4%
Sprint Communications, Inc.................... 2,171,965
Sprint Communications, Inc.................... 606,567
------------
2,778,532
------------
Total Loans (cost $184,718,151)............... 181,457,389
------------
U.S. CORPORATE BONDS & NOTES -- 4.8%
Aerospace & Defense -- 0.2%
SSL Robotics LLC*............................. 326,250
------------
Building Products -- 0.1%
Advanced Drainage Systems, Inc.*.............. 226,875
------------
Construction & Engineering -- 0.2%
Brand Energy & Infrastructure Services, Inc.*. 512,500
------------
Containers & Packaging -- 0.6%
Reynolds Group Issuer, Inc. FRS*.............. 1,246,556
------------
Electronic Equipment, Instruments & Components -- 0.5%
APX Group, Inc................................ 1,000,000
------------
Food Products -- 0.1%
Darling Ingredients, Inc.*.................... 138,288
------------
Health Care Providers & Services -- 0.2%
Centene Corp.*................................ 488,878
------------
Hotels, Restaurants & Leisure -- 0.2%
Boyd Gaming Corp.*............................ 415,500
------------
Insurance -- 0.4%
Acrisure LLC / Acrisure Finance, Inc.*........ 728,625
------------
Media -- 0.2%
Houghton Mifflin Harcourt Publishers, Inc.*... 512,500
------------
Multi Utilities -- 0.0%
Texas Competitive Electric Holdings Co. LLC*.. 6,262
------------
Oil, Gas & Consumable Fuels -- 0.3%
Chesapeake Energy Corp.*...................... 292,950
Foresight Energy/Finance*..................... 25,025
18
AIG Senior Floating Rate Fund
PORTFOLIO OF INVESTMENTS -- December 31, 2019 -- (continued)
Ratings/(1)/
------------
Principal
Interest Maturity Amount**/
Industry Description Type Moody's S&P Rate Date/(2)/ Shares
--------------------------------------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels (continued)
Vine Oil & Gas LP / Vine Oil & Gas Finance Corp.*....... Company Guar. Notes Caa2 CCC 8.75% 04/15/2023 775,000
Personal Products -- 0.1%
Revlon Consumer Products Corp........................... Company Guar. Notes Caa3 CCC 6.25 08/01/2024 505,000
Software -- 0.8%
SS&C Technologies, Inc.*................................ Company Guar. Notes B2 B+ 5.50 09/30/2027 1,500,000
Specialty Retail -- 0.5%
Lithia Motors, Inc.*.................................... Company Guar. Notes Ba2 BB 4.63 12/15/2027 715,000
PetSmart, Inc.*......................................... Senior Sec. Notes B2 B 5.88 06/01/2025 209,000
Trading Companies & Distributors -- 0.4%
Beacon Roofing Supply, Inc.*............................ Company Guar. Notes B3 B- 4.88 11/01/2025 500,000
Performance Food Group, Inc.*........................... Senior Notes B1 B+ 5.50 10/15/2027 315,000
Total U.S. Corporate Bonds & Notes (cost $11,129,758)...
FOREIGN CORPORATE BONDS & NOTES -- 2.8%
Auto Components -- 0.3%
Panther BF Aggregator 2 LP*............................. Company Guar. Notes B3 B 8.50 05/15/2027 560,000
Consumer Finance -- 0.4%
Avolon Holdings Funding Ltd.*........................... Company Guar. Notes Baa3 BBB- 3.63 05/01/2022 750,000
Containers & Packaging -- 0.7%
ARD Finance SA*......................................... Senior Sec. Notes Caa2 B- 5.00 06/30/2027 890,000
Ardagh Packaging Finance PLC*........................... Senior Sec. Notes Ba3 BB 4.13 08/15/2026 390,000
Hotels, Restaurants & Leisure -- 0.2%
1011778 BC ULC / New Red Finance, Inc.*................. Senior Sec. Notes Ba2 BB+ 3.88 01/15/2028 375,000
Metals & Mining -- 0.2%
Costellium NV*.......................................... Company Guar. Notes B2 B 6.63 03/01/2025 405,000
Paper & Forest Products -- 0.2%
Norbord, Inc.*.......................................... Senior Sec. Notes Ba1 BB+ 5.75 07/15/2027 485,000
Pharmaceuticals -- 0.8%
Bausch Health Cos, Inc.*................................ Company Guar. Notes B3 B 5.00 01/30/2028 485,000
Endo, Ltd./Endo Finance LLC*............................ Company Guar. Notes Caa2 CCC+ 6.00 07/15/2023 250,000
Valeant Pharmaceuticals*................................ Senior Sec. Notes Ba2 BB 7.00 03/15/2024 630,000
Valeant Pharmaceuticals*................................ Company Guar. Notes B3 B 9.00 12/15/2025 385,000
Total Foreign Corporate Bonds & Notes (cost $5,695,695).
COMMON STOCKS -- 0.5%
Energy Equipment & Services -- 0.0%
Paragon Offshore, Litigation Trust, Class A+(7)......... 1,242
Paragon Offshore, Litigation Trust, Class B+(7)......... 621
Philadelphia Energy Solutions LLC, Class A+(7).......... 35,161
Industrial Conglomerates -- 0.3%
AFG Holdings, Inc.+(7).................................. 14,309
Oil, Gas & Consumable Fuels -- 0.2%
Ascent Resources Marcellus LLC, Class A+(5)(7).......... 187,384
Value
Industry Description (Note 2)
---------------------------------------------------------------------
Oil, Gas & Consumable Fuels (continued)
Vine Oil & Gas LP / Vine Oil & Gas Finance Corp.*....... $ 379,750
----------
697,725
----------
Personal Products -- 0.1%
Revlon Consumer Products Corp........................... 239,875
----------
Software -- 0.8%
SS&C Technologies, Inc.*................................ 1,601,250
----------
Specialty Retail -- 0.5%
Lithia Motors, Inc.*.................................... 734,920
PetSmart, Inc.*......................................... 212,919
----------
947,839
----------
Trading Companies & Distributors -- 0.4%
Beacon Roofing Supply, Inc.*............................ 502,500
Performance Food Group, Inc.*........................... 336,656
----------
839,156
----------
Total U.S. Corporate Bonds & Notes (cost $11,129,758)... 9,928,079
----------
FOREIGN CORPORATE BONDS & NOTES -- 2.8%
Auto Components -- 0.3%
Panther BF Aggregator 2 LP*............................. 595,000
----------
Consumer Finance -- 0.4%
Avolon Holdings Funding Ltd.*........................... 768,450
----------
Containers & Packaging -- 0.7%
ARD Finance SA*......................................... 1,006,100
Ardagh Packaging Finance PLC*........................... 399,750
----------
1,405,850
----------
Hotels, Restaurants & Leisure -- 0.2%
1011778 BC ULC / New Red Finance, Inc.*................. 375,938
----------
Metals & Mining -- 0.2%
Costellium NV*.......................................... 420,228
----------
Paper & Forest Products -- 0.2%
Norbord, Inc.*.......................................... 503,188
----------
Pharmaceuticals -- 0.8%
Bausch Health Cos, Inc.*................................ 497,799
Endo, Ltd./Endo Finance LLC*............................ 180,625
Valeant Pharmaceuticals*................................ 655,199
Valeant Pharmaceuticals*................................ 437,822
----------
1,771,445
----------
Total Foreign Corporate Bonds & Notes (cost $5,695,695). 5,840,099
----------
COMMON STOCKS -- 0.5%
Energy Equipment & Services -- 0.0%
Paragon Offshore, Litigation Trust, Class A+(7)......... 248
Paragon Offshore, Litigation Trust, Class B+(7)......... 9,211
Philadelphia Energy Solutions LLC, Class A+(7).......... 4,395
----------
13,854
----------
Industrial Conglomerates -- 0.3%
AFG Holdings, Inc.+(7).................................. 736,914
----------
Oil, Gas & Consumable Fuels -- 0.2%
Ascent Resources Marcellus LLC, Class A+(5)(7).......... 305,436
19
AIG Senior Floating Rate Fund
PORTFOLIO OF INVESTMENTS -- December 31, 2019 -- (continued)
Principal
Amount**/ Value
Industry Description Shares (Note 2)
-----------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels (continued)
TE Holdcorp LLC, Class A+(5)(7).............................. 44,278 $ 0
------------
305,436
------------
Total Common Stocks (cost $3,313,313).................................. 1,056,204
------------
WARRANTS -- 0.0%
Oil, Gas & Consumable Fuels -- 0.0%
Ascent Resources Marcellus LLC+(5)(7)
Expires 03/30/2023
(strike price $6.15)
(cost $4,625)............................................... 48,515 1,455
------------
Total Long-Term Investment Securities (cost $204,861,542).............. 198,283,226
------------
SHORT-TERM INVESTMENT SECURITIES -- 2.5%
Registered Investment Companies -- 2.5%
State Street Institutional Liquid Reserves Fund,
Administration Class 1.48%(8)
(cost $5,103,446)........................................... 5,102,935 5,103,446
------------
REPURCHASE AGREEMENTS -- 2.6%
Bank of America Securities LLC Joint Repurchase Agreement(9). 1,080,000 1,080,000
Barclays Capital, Inc. Joint Repurchase Agreement(9)......... 980,000 980,000
BNP Paribas SA Joint Repurchase Agreement(9)................. 980,000 980,000
Deutsche Bank AG Joint Repurchase Agreement(9)............... 1,180,000 1,180,000
RBS Securities, Inc. Joint Repurchase Agreement(9)........... 1,080,000 1,080,000
------------
Total Repurchase Agreements (cost $5,300,000).......................... 5,300,000
------------
TOTAL INVESTMENTS
(cost $215,264,988)(12)...................................... 101.5% 208,686,672
Liabilities in excess of other assets.......................... (1.5)% (3,063,811)
--------- ------------
NET ASSETS..................................................... 100.0% $205,622,861
========= ============
--------
BTL Bank Term Loan
EUR Euro Currency
NR Security is not rated
FRS--FloatingRate Security
The rates shown on FRS are the current interest rates as of December 31, 2019
and unless noted otherwise, the dates shown are the original maturity dates.
TBD--Seniorloan purchased on a when-issued or delayed-delivery basis. Certain
details associated with this purchase are not known prior to the
settlement date of the transaction. In addition, senior loans
typically trade without accrued interest and therefore a coupon rate
is not available prior to the settlement.
+ Non-income producing security
* Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be sold in transactions exempt from
registration, normally to qualified institutional buyers. The Fund has no
rights to demand registration of these securities. At December 31, 2019,
the aggregate value of these securities was $14,528,303, representing 7.1%
of net assets.
** Denominated in United States Dollars unless otherwise noted.
(1) Bank loans rated below Baa by Moody's Investor Service, Inc. or BBB by
Standard & Poor's Group are considered below investment grade. Ratings
provided are as of December 31, 2019. Ratings are not covered by the Report
of Independent Registered Public Accounting Firm.
(2) Based on the stated maturity, the weighted average to maturity of the loans
held in the portfolio is approximately 58 months. Loans in the Fund's
portfolio are generally subject to mandatory and/or optional prepayment.
Because of these mandatory prepayment conditions and because there may be
significant economic incentives for a Borrower to prepay, prepayments may
occur. As a result, the actual remaining maturity may be substantially less
than the stated maturities shown.
(3) The Fund invests in senior loans which generally pay interest at rates
which are periodically re-determined by reference to a base lending rate
plus a premium. These base lending rates are generally either the lending
rate offered by one or more major European banks, such as the London
Inter-Bank Offer Rate ("LIBOR") or the prime rate offered by one or more
major United States banks, or the certificate of deposit rate. Senior loans
are generally considered to be restrictive in that the Fund is ordinarily
contractually obligated to receive approval from the Agent Bank and/or
borrower prior to the disposition of a senior loan.
(4) All loans in the portfolio were purchased through assignment agreements
unless otherwise indicated.
(5) Security classified as Level 3 (see Note 2).
(6) All or a portion of this holding is subject to unfunded loan commitments
(see Note 10).
(7) Denotes a restricted security that: (a) cannot be offered for public sale
without first being registered, or being able to take advantage of an
exemption from registration, under the Securities Act of 1933, as amended
(the "1933 Act"); (b) is subject to a contractual restriction on public
sales; or (c) is otherwise subject to a restriction on sales by operation
of applicable law. Restricted securities are valued pursuant to Note 2.
Certain restricted securities held by the Fund may not be sold except in
exempt transactions or in a public offering registered under the 1933 Act.
The Fund has no right to demand registration of these securities. The risk
of
20
AIG Senior Floating Rate Fund
PORTFOLIO OF INVESTMENTS -- December 31, 2019 -- (continued)
investing in certain restricted securities is greater than the risk of
investing in the securities of widely held, publicly traded companies. To
the extent applicable, lack of a secondary market and resale restrictions
may result in the inability of a Fund to sell a security at a fair price
and may substantially delay the sale of the security. In addition, certain
restricted securities may exhibit greater price volatility than securities
for which secondary markets exist. As of December 31, 2019, the Fund held
the following restricted securities:
Acquisition Acquisition Value Per % of Net
Description Date Shares Cost Value Share Assets
----------- ----------- ------- ----------- ---------- --------- --------
Common Stocks
-------------
AFG Holdings, Inc........................... 01/22/2013 14,309 $ 911,111 $ 736,914 $51.50 0.36%
Ascent Resources Marcellus LLC, Class A..... 03/30/2018 187,384 567,151 305,436 1.63 0.15
Paragon Offshore Litigation Trust, Class A.. 07/11/2014 1,242 704 248 0.20 0.00
Paragon Offshore Litigation Trust, Class B.. 10/21/2014 621 10,557 9,211 14.83 0.00
Philadelphia Energy Solutions LLC, Class A.. 04/04/2018 35,161 185,574 4,395 0.12 0.00
TE Holdcorp LLC, Class A.................... 11/21/2013 44,278 1,638,216 0 0.00 0.00
Warrants
--------
Ascent Resources Marcellus LLC.............. 03/30/2018 48,515 4,625 1,455 0.03 0.00
---------- ----
$1,057,659 0.51%
========== ====
(8) The rate shown is the 7-day yield as of December 31, 2019.
(9) See Note 2 for details of the Joint Repurchase Agreement.
(10)"Payment-in-Kind" (PIK) security -- Income may be paid in additional
securities or cash at the discretion of the issuer. The security is
currently paying interest in cash at 7.30%. The security is also currently
paying interest in the form of additional loans at 1.75%.
(11)The referenced Index is less than 0.00% at the period end. The loan has an
interest rate floor whereby the floating rate used in the coupon rate
calculation cannot be less than zero.
(12)See Note 6 for cost of investments on a tax basis.
(13)Security in default of interest.
Index Legend
1 ME--1 Month Euribor
1 ML--1 Month USD LIBOR
1 WL--1 Week USD LIBOR
2 ML--2 Month USD LIBOR
3 ME--3 Month Euribor
3 ML--3 Month USD LIBOR
6 ML--6 Month USD LIBOR
USFRBPLR--US Federal Reserve Bank Prime Loan Rate
Forward Foreign Currency Contracts
----------------------------------
Contract to In Exchange Delivery Unrealized Unrealized
Counterparty Deliver For Date Appreciation Depreciation
------------ -------------- -------------- ---------- ------------ ------------
Bank of Montreal........... EUR 1,009,000 USD 1,121,963 01/31/2020 $ -- $(11,801)
USD 976,296 EUR 878,000 01/31/2020 10,269 --
------- --------
10,269 (11,801)
------- --------
Citibank N.A............... EUR 11,353,745 USD 12,671,404 01/31/2020 -- (86,243)
USD 976,426 EUR 874,890 01/31/2020 6,646 --
------- --------
6,646 (86,243)
------- --------
UBS AG..................... USD 149,577 EUR 134,492 01/31/2020 1,545 --
------- --------
Net Unrealized Appreciation (Depreciation)............ $18,460 $(98,044)
======= ========
--------
EUR--EuroCurrency
USD--UnitedStates Dollar
21
AIG Senior Floating Rate Fund
PORTFOLIO OF INVESTMENTS -- December 31, 2019 -- (continued)
The following is a summary of the inputs used to value the Fund's net assets as
of December 31, 2019 (see Note 2):
Level 1 -- Unadjusted Level 2 -- Other Level 3 -- Significant
Quoted Prices Observable Inputs Unobservable Inputs Total
--------------------- ----------------- ---------------------- ------------
ASSETS:
Investments at Value:*
Loans:
Energy Equipment & Services...... $ -- $ 435,033 $293,874 $ 728,907
Other Industries................. -- 180,728,482 -- 180,728,482
U.S. Corporate Bonds & Notes....... -- 9,928,079 -- 9,928,079
Foreign Corporate Bonds & Notes.... -- 5,840,099 -- 5,840,099
Common Stocks:
Oil, Gas & Consumable Fuels...... -- -- 305,436 305,436
Other Industries................. -- 750,768 -- 750,768
Warrants........................... -- -- 1,455 1,455
Short-Term Investment Securities... 5,103,446 -- -- 5,103,446
Repurchase Agreements.............. -- 5,300,000 -- 5,300,000
---------- ------------ -------- ------------
Total Investments at Value......... $5,103,446 $202,982,461 $600,765 $208,686,672
========== ============ ======== ============
Other Financial Instruments:@
Forward Foreign Currency Contracts. $ -- $ 18,460 $ -- $ 18,460
========== ============ ======== ============
LIABILITIES:
Other Financial Instruments:@
Forward Foreign Currency Contracts. $ -- $ 98,044 $ -- $ 98,044
========== ============ ======== ============
--------
* 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
material Level 3 transfers during the reporting period.
See Notes to Financial Statements
22
SunAmerica Senior Floating Rate Fund, Inc.
NOTES TO FINANCIAL STATEMENTS -- December 31, 2019
Note 1. Organization of the Fund
SunAmerica Senior Floating Rate Fund, Inc. (the "Corporation") is an
open-end, diversified management investment company organized as a Maryland
corporation in 1998 and is registered under the Investment Company Act of
1940, as amended (the "1940 Act"). The Corporation consists of one series --
AIG Senior Floating Rate Fund (the "Fund"). The Fund is managed by
SunAmerica Asset Management, LLC (the "Adviser" or "SunAmerica"), an
indirect wholly-owned subsidiary of American International Group, Inc.
("AIG"). The Fund's investment goal and principal investment techniques are
to provide as high a level of current income as is consistent with the
preservation of capital by investing, under normal market conditions, at
least 80% of its net assets, plus any borrowings for investment purposes, in
senior secured floating rate loans and other institutionally traded secured
floating rate debt obligations ("Loans"). The Fund may also purchase both
investment grade and high yield fixed income securities and money market
instruments, although the Fund may not invest more than 10% of its total
assets in high yield fixed income securities. The Fund may invest in foreign
securities, including up to 10% of its total assets in non-U.S. dollar
denominated Loans and high yield fixed income securities and up to 25% of
its total assets in U.S. dollar denominated Loans issued by non-U.S.
companies.
The Fund offers three classes of shares: Class A, Class C and Class W. These
classes within the Fund are presented in the Statement of Assets and
Liabilities. The cost structure for each class is as follows:
Class A shares-- Offered at net asset value per share plus an initial sales
charge. Additionally, purchases of Class A shares in excess
of $1,000,000 will be purchased at net asset value but will
be subject to a contingent deferred sales charge ("CDSC")
on redemptions made within one year of purchase.
Class C shares-- Offered at net asset value without an initial sales charge
and may be subject to a CDSC on redemptions made within 12
months of purchase. Class C shares will convert
automatically to Class A shares approximately ten years
after purchase and at such time will be subject to the
lower distribution fee applicable to Class A shares.
Class W shares-- 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 Fund's
registration statement. Class A and Class C shares each make distribution
and account maintenance fee payments under the distribution plans 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 a 12b-1 plan
and make no payments thereunder, however, Class W shares pay a service fee
to the Fund's distributor for providing administrative and shareholder
services.
Indemnifications: The Fund's organizational documents provide current and
former officers and directors with a limited indemnification against
liabilities arising out of the performance of their duties to the Fund. In
addition, pursuant to Indemnification Agreements between the Fund and each
of the current directors who is not an "interested person," as defined in
Section 2(a)(19) of the 1940 Act, of the Fund (collectively, the
"Disinterested Directors"), the Fund provides the Disinterested Directors
with a limited indemnification against liabilities arising out of the
performance of their duties to the Fund, whether such liabilities are
asserted during or after their service as directors. In addition, in the
normal course of business, the Fund enters into contracts that contain the
obligation to indemnify others. The Fund's maximum exposure under these
arrangements is unknown. Currently, however, the Fund expects the risk of
loss to be remote.
Note 2. Significant Accounting Policies
The preparation of financial statements in accordance with U.S. generally
accepted accounting principles ("GAAP") requires management to make
estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results could differ from these
estimates and those differences could be significant. The Fund is considered
an investment company under GAAP and follows the accounting and reporting
guidance applicable to
23
SunAmerica Senior Floating Rate Fund, Inc.
NOTES TO FINANCIAL STATEMENTS -- December 31, 2019 -- (continued)
investment companies. The following is a summary of significant accounting
policies consistently followed by the Fund in the preparation of its
financial statements:
Security Valuation: In accordance with the authoritative guidance on fair
value measurements and disclosures under GAAP, the Fund discloses the fair
value of its investments in a hierarchy that prioritizes the inputs to
valuation techniques used to measure the fair value. In accordance with
GAAP, fair value is defined as the price that the Fund would receive upon
selling an asset or transferring a liability in a timely transaction to an
independent third party in the principal or most advantageous market. GAAP
establishes a three-tier hierarchy to provide more transparency around the
inputs used to measure fair value and to establish classification of fair
value measurements for disclosure purposes. Inputs refer broadly to the
assumptions that market participants would use in pricing the asset or
liability, including assumptions about risk. Inputs may be observable or
unobservable. Observable inputs are inputs that reflect the assumptions
market participants would use in pricing the asset or liability developed
based on market data obtained from sources independent of the reporting
entity. Unobservable inputs are inputs that reflect the reporting entity's
own assumptions about the assumptions market participants would use in
pricing the asset or liability developed based on the best information
available in the circumstances. The three-tiers are as follows:
Level 1 -- Unadjusted quoted prices in active markets for identical
securities
Level 2 -- Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
referenced indices, quoted prices in inactive markets, adjusted quoted
prices in active markets, adjusted quoted prices on foreign equity
securities that were adjusted in accordance with pricing procedures approved
by the Board of Directors (the "Board"), etc.)
Level 3 -- Significant unobservable inputs (includes inputs that reflect the
Fund's own assumptions about the assumptions market participants would use
in pricing the security, developed based on the best information available
under the circumstances)
Changes in valuation techniques may result in transfers in or out of an
investment's assigned Level within the hierarchy. The methodology used for
valuing investments is not necessarily an indication of the risk associated
with investing in those investments and the determination of the
significance of a particular input to the fair value measurement in its
entirety requires judgment and consideration of factors specific to each
security.
The availability of observable inputs can vary from security to security and
is affected by a wide variety of factors, including, for example, the type
of security, whether the security is recently issued and not yet established
in the marketplace, the liquidity of markets, and other characteristics
particular to the security. To the extent that valuation is based on models
or inputs that are less observable or unobservable in the market, the
determination of fair value requires more judgment. Accordingly, the degree
of judgment exercised in determining fair value is greatest for instruments
categorized in Level 3.
The summary of the Fund's assets and liabilities classified in the fair
value hierarchy as of December 31, 2019, is reported on a schedule at the
end of the Portfolio of Investments.
Stocks are generally valued based upon closing sales prices reported on
recognized securities exchanges on which the securities are principally
traded and are generally categorized as Level 1. Stocks listed on the NASDAQ
are valued using the NASDAQ Official Closing Price ("NOCP"). Generally, the
NOCP will be the last sale price unless the reported trade for the stock is
outside the range of the bid/ask price. In such cases, the NOCP will be
normalized to the nearer of the bid or ask price. For listed securities
having no sales reported and for unlisted securities, such securities will
be valued based upon the last reported bid price.
As of the close of regular trading on the New York Stock Exchange ("NYSE"),
securities traded primarily on security exchanges outside the United States
are valued at the last sale price on such exchanges on the day of valuation,
or if there is no sale on the day of valuation, at the last-reported bid
price. If a security's price is available from more than
24
SunAmerica Senior Floating Rate Fund, Inc.
NOTES TO FINANCIAL STATEMENTS -- December 31, 2019 -- (continued)
one exchange, the Fund uses the exchange that is the primary market for the
security. Such securities are generally categorized as Level 1. However,
depending on the foreign market, closing prices may be up to 15 hours old
when they are used to price a Fund's shares, and the Fund may determine that
certain closing prices do not reflect the fair value of the security. This
determination will be based on the review of a number of factors, including
developments in foreign markets, the performance of U.S. securities markets,
and the performance of instruments trading in U.S. markets that represent
foreign securities and baskets of foreign securities. If the Fund determines
that closing prices do not reflect the fair value of the securities, the
Fund will adjust the previous closing prices in accordance with pricing
procedures approved by the Board to reflect what it believes to be the fair
value of the securities as of the close of regular trading on the NYSE. The
Fund may also fair value securities in other situations, for example, when a
particular foreign market is closed but the Fund is open. For foreign equity
securities and foreign equity futures contracts, the Fund uses an outside
pricing service to provide it with closing market prices and information
used for adjusting those prices, and when so adjusted, such securities and
futures are generally categorized as Level 2.
Bonds, debentures, and other debt securities are valued at evaluated bid
prices obtained for the day of valuation from a Board-approved pricing
service, and are generally categorized as Level 2. The pricing service may
use valuation models or matrix pricing which considers information with
respect to comparable bond and note transactions, quotations from bond
dealers, or by reference to other securities that are considered comparable
in such characteristics as rating, interest rate, and maturity date, option
adjusted spread models, prepayments projections, interest rate spreads, and
yield curves to determine current value. If a price is unavailable from a
Board-approved pricing service, the securities may be priced at the mean of
two independent quotes obtained from brokers.
Senior secured floating rate loans ("Loans") are valued at the average of
available bids in the market for such Loans, as provided by a Board-approved
loan pricing service, and are generally categorized as Level 2.
Investments in registered investment companies that do not trade on an
exchange are valued at the end of day net asset value per share. Investments
in registered investment companies that trade on an exchange are valued at
the last sales price or official closing price as of the close of the
customary trading session on the exchange where the security is principally
traded. Investments in registered investment companies are generally
categorized as Level 1.
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 in the over-the-counter
("OTC") market 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 pm Eastern
time forward rate and are generally categorized as Level 2.
The Board is responsible for the share valuation process and has adopted
policies and procedures (the "PRC Procedures") for valuing the securities
and other assets held by the Fund, including procedures for the fair
valuation of securities and other assets for which market quotations are not
readily available or are unreliable. The PRC Procedures provide for the
establishment of a pricing review committee, which is responsible for, among
other things, making certain determinations in connection with the Fund's
fair valuation procedures. Securities for which market quotations are not
readily available or the values of which may be significantly impacted by
the occurrence of developments or significant events are generally
categorized as Level 3. There is no single standard for making fair value
determinations, which may result in prices that vary from those of other
funds.
Derivative Instruments:
Forward Foreign Currency Contracts: During the period, the Fund used forward
contracts to protect against uncertainty in the level of future exchange
rates.
A forward contract is an agreement between two parties to buy or sell
currency at a set price on a future date. The market value of the contract
will fluctuate with changes in currency exchange rates. The contract is
marked-to-market
25
SunAmerica Senior Floating Rate Fund, Inc.
NOTES TO FINANCIAL STATEMENTS -- December 31, 2019 -- (continued)
daily using the forward rate and the cumulative change in market value is
recorded by the Fund as unrealized appreciation or depreciation. On the
settlement date, the Fund records either realized gains or losses equal to
the difference between the value of the contract at the time it was opened
and the value at the time it was closed.
Risks to the Fund of entering into forward contracts include counterparty
risk, market risk and illiquidity risk. Counterparty risk arises upon
entering into these contracts from the potential inability of counterparties
to meet the terms of their contracts. If the counterparty defaults, the
Fund's loss will generally consist of the net amount of contractual payments
that the Fund has not yet received though the Fund's maximum exposure due to
counterparty risk could extend to the notional amount of the contract.
Market risk is the risk that the value of the forward contract will
depreciate due to unfavorable changes in the exchange rates. These contracts
may involve market risk in excess of the unrealized appreciation or
depreciation reported on the Statement of Assets and Liabilities.
Illiquidity risk arises because the secondary market for forwards may have
less liquidity relative to markets for other securities. Currency
transactions are also subject to risks different from those of other
portfolio transactions. Because currency control is of great importance to
the issuing governments and influences economic planning and policy,
purchases and sales of currency and related instruments can be adversely
affected by government exchange controls, limitations or restrictions on
repatriation of currency, and manipulations or exchange restrictions imposed
by governments.
Forward foreign currency 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.
Master Agreements: The Fund holds derivative instruments and other financial
instruments whereby the Fund may be a party to ISDA (International Swaps and
Derivatives Association, Inc.) Master Agreements or similar agreements
("Master Agreements") with certain counterparties that govern such
instruments. Master Agreements may contain provisions regarding, among other
things, the parties' general obligations, representations, agreements,
collateral requirements, events of default and early termination. Collateral
can be in the form of cash or securities as agreed to by the Fund and
applicable counterparty. Collateral requirements are generally determined
based on the Fund's net position with each counterparty. Master Agreements
may also include certain provisions that require the Fund to post additional
collateral upon the occurrence of certain events, such as when a Fund's net
assets fall below a specified level. In addition, Master Agreements
typically specify certain standard termination events, such as failure of a
party to pay or deliver, credit support defaults and other events of
default. Termination events applicable to the Fund may also occur upon a
decline in the Fund's net assets below a specified level over a certain
period of time. Additional termination events applicable to counterparties
may occur upon a decline in a counterparty's long-term and short-term credit
ratings below a specified level, or upon a decline in the ratings of a
counterparty's credit support provider. Upon the occurrence of a termination
event, the other party may elect to terminate early and cause settlement of
all instruments outstanding pursuant to a particular Master Agreement,
including the payment of any losses and costs resulting from such early
termination, as reasonably determined by the terminating party. Any decision
by one or more of the Fund's counterparties to elect early termination could
cause the Fund to accelerate the payment of liabilities, which settlement
amounts could be in excess of the amount of assets that are already posted
as collateral. Typically, the Master Agreement will permit a single net
payment in the event of default. Note, however, that bankruptcy or
insolvency laws of a particular jurisdiction may impose restrictions on or
prohibitions against the right of offset in bankruptcy, insolvency or other
events. As a result, the early termination with respect to derivative
instruments subject to Master Agreements that are in a net liability
position could be material to the Fund's financial statements. The Fund does
not offset derivative assets and derivative liabilities that are subject to
netting arrangements in the Statement of Assets and Liabilities.
The following tables represent the value of derivatives held as of
December 31, 2019, by their primary underlying risk exposure and respective
location on the Statement of Assets and Liabilities and the effect of
derivatives on the Statement of Operations for the year ended December 31,
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 December 31, 2019, please refer to the schedule at
the end of the Fund's Portfolio of Investments.
26
SunAmerica Senior Floating Rate Fund, Inc.
NOTES TO FINANCIAL STATEMENTS -- December 31, 2019 -- (continued)
Asset Derivatives Liability Derivatives
-------------------------- - --------------------------
Forward Foreign Forward Foreign
Currency Contracts(1) Currency Contracts(2)
-------------------------- --------------------------
Foreign Exchange Contracts Foreign Exchange Contracts
-------------------------- --------------------------
$18,460 $98,044
======= =======
Statement of Assets and Liabilities Location:
(1) Unrealized appreciation on forward foreign currency contracts
(2) Unrealized depreciation on forward foreign currency contracts
Realized Gain (Loss) on Change in Unrealized Appreciation (Depreciation)
Derivatives Recognized in on Derivatives Recognized in
Statement of Operations Statement of Operations
-------------------------- - ------------------------------------------------
Forward Foreign Forward Foreign
Currency Contracts(1) Currency Contracts(2)
-------------------------- ------------------------------------------------
Foreign Exchange Contracts Foreign Exchange Contracts
-------------------------- ------------------------------------------------
$701,059 $(114,062)
======== ==========
Statement of Operations Location:
(1) Net realized gain (loss) on forward contracts
(2) Change in unrealized appreciation (depreciation) on forward
contracts
The following table represents the average monthly balances of derivatives
held during the year ended December 31, 2019.
Average Amount Outstanding During the Period
--------------------------------------------
Foreign Exchange Contracts(1)
--------------------------------------------
$12,536,236
===========
--------
(1) Amounts represent notional amounts in US dollars.
The following table sets forth the Fund's derivative assets and liabilities
by counterparty, net of amounts available for offset under Master Agreements
and net of the related collateral pledged/(received) as of December 31,
2019. The repurchase agreements held by the Fund as of December 31, 2019,
are also subject to Master Agreements but are not included in the following
tables. See the Portfolio of Investments and the Notes to the Financial
Statements for more information about the Fund's holdings in repurchase
agreements.
Derivative Assets(1) Derivative Liabilities(1)
-------------------- -------------------------
Forward Forward Net
Foreign Foreign Derivative Collateral
Currency Currency Assets Pledged/
Counterparty Contracts Total Contracts Total (Liabilities) (Received)(2) Net Amount(3)
------------ --------- ------- --------- ------- ------------- ------------- -------------
Bank of Montreal................... $10,269 $10,269 $11,801 $11,801 $ (1,532) $ -- $ (1,532)
Citibank N.A....................... 6,646 6,646 86,243 86,243 (79,597) -- (79,597)
UBS AG............................. 1,545 1,545 -- -- 1,545 -- 1,545
------- ------- ------- ------- -------- ---- --------
Total.............................. $18,460 $18,460 $98,044 $98,044 $(79,584) $ -- $(79,584)
======= ======= ======= ======= ======== ==== ========
-
(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 Fund, along with other affiliated registered
investment companies, pursuant to procedures adopted by the Board and
applicable guidance from the Securities and Exchange Commission ("SEC"), may
transfer uninvested cash balances into a single joint account, the daily
aggregate balance of which is invested in one or more repurchase agreements
collateralized by U.S. Treasury or federal agency obligations. In a
repurchase agreement, the seller of a security agrees to repurchase the
security at a mutually agreed-upon time and price, which reflects the
effective rate of return for the term of the agreement. For repurchase
agreements and joint repurchase agreements, the Fund's
27
SunAmerica Senior Floating Rate Fund, Inc.
NOTES TO FINANCIAL STATEMENTS -- December 31, 2019 -- (continued)
custodian takes possession of the collateral pledged for investments in such
repurchase agreements ("repo" or collectively "repos"). The underlying
collateral is valued daily on a mark to market basis, plus accrued interest,
to ensure that the value, at the time the agreement is entered into, is
equal to at least 102% of the repurchase price, including accrued interest.
In the event of default of the obligation to repurchase, the Fund has the
right to liquidate the collateral and apply the proceeds in satisfaction of
the obligation. If the seller defaults and the value of the collateral
declines or if bankruptcy proceedings are commenced with respect to the
seller of the security, realization of the collateral by the Fund may be
delayed or limited.
As of December 31, 2019, the Fund held an undivided interest in a joint
repurchase agreement with Bank of America Securities LLC:
Percentage Principal
Ownership Amount
---------- -----------
AIG Senior Floating Rate Fund...... 4.91% $ 1,080,000
As of such date, the repurchase agreement in that joint account and the
collateral thereof were as follows:
Bank of America Securities LLC, dated December 31, 2019, bearing interest at
a rate of 1.54% per annum, with a principal amount of $22,000,000, a
repurchase price of $22,001,882, and a maturity date of January 2, 2020. The
repurchase agreement is collateralized by the following:
Interest Maturity
Type of Collateral Rate Date Principal Amount Value
------------------ -------- ---------- ---------------- ------------
U.S. Treasury Notes................ 1.75% 07/15/2022 $ 22,357,000 $ 22,620,705
As of December 31, 2019, the Fund held an undivided interest in a joint
repurchase agreement with Barclays Capital, Inc.:
Percentage Principal
Ownership Amount
- ---------- ---------
AIG Senior Floating Rate Fund...... 4.90% $ 980,000
As of such date, the repurchase agreement in that joint account and the
collateral thereof were as follows:
Barclays Capital, Inc., dated December 31, 2019, bearing interest at a rate
of 1.55% per annum, with a principal amount of $20,000,000, a repurchase
price of $20,001,722, and a maturity date of January 2, 2020. The repurchase
agreement is collateralized by the following:
Interest Maturity
Type of Collateral Rate Date Principal Amount Value
------------------ -------- ---------- ---------------- ------------
U.S. Treasury Notes................ 1.63% 12/31/2021 $ 20,375,000 $ 20,396,598
As of December 31, 2019, the Fund held an undivided interest in a joint
repurchase agreement with BNP Paribas SA:
Percentage Principal
Ownership Amount
- ---------- ---------
AIG Senior Floating Rate Fund...... 4.90% $ 980,000
As of such date, the repurchase agreement in that joint account and the
collateral thereof were as follows:
BNP Paribas SA, dated December 31, 2019, bearing interest at a rate of 1.55%
per annum, with a principal amount of $20,000,000, a repurchase price of
$20,001,722, and a maturity date of January 2, 2020. The repurchase
agreement is collateralized by the following:
Interest Maturity
Type of Collateral Rate Date Principal Amount Value
------------------ -------- ---------- ---------------- ------------
U.S. Treasury Notes................ 2.25% 08/15/2027 $ 19,639,000 $ 20,390,472
28
SunAmerica Senior Floating Rate Fund, Inc.
NOTES TO FINANCIAL STATEMENTS -- December 31, 2019 -- (continued)
As of December 31, 2019, the Fund held an undivided interest in a joint
repurchase agreement with Deutsche Bank AG:
Percentage Principal
Ownership Amount
---------- -----------
AIG Senior Floating Rate Fund...... 4.99% $ 1,180,000
As of such date, the repurchase agreement in that joint account and the
collateral thereof were as follows:
Deutsche Bank AG, dated December 31, 2019, bearing interest at a rate of
1.54% per annum, with a principal amount of $23,640,000, a repurchase price
of $23,642,023, and a maturity date of January 2, 2020. The repurchase
agreement is collateralized by the following:
Interest Maturity
Type of Collateral Rate Date Principal Amount Value
------------------ -------- ---------- ---------------- ------------
U.S. Treasury Notes................ 2.75% 07/31/2023 $ 22,983,000 $ 24,135,390
As of December 31, 2019, the Fund held an undivided interest in a joint
repurchase agreement with RBS Securities, Inc.:
Percentage Principal
Ownership Amount
---------- -----------
AIG Senior Floating Rate Fund...... 4.91% $ 1,080,000
As of such date, the repurchase agreement in that joint account and the
collateral thereof were as follows:
RBS Securities, Inc., dated December 31, 2019, bearing interest at a rate of
1.54% per annum, with a principal amount of $22,000,000, a repurchase price
of $22,001,882, and a maturity date of January 2, 2020. The repurchase
agreement is collateralized by the following:
Interest Maturity
Type of Collateral Rate Date Principal Amount Value
------------------ -------- ---------- ---------------- ------------
U.S. Treasury Notes................ 2.00% 08/15/2025 $ 21,955,000 $ 22,433,886
When-Issued Securities and Forward Commitments: The Fund may purchase or
sell when-issued securities that have been authorized, but not yet issued in
the market. In addition, the Fund may purchase or sell securities on a
forward commitment basis. A forward commitment involves entering into a
contract to purchase or sell securities, typically on an extended settlement
basis, for a fixed price at a future date. The Fund may engage in
when-issued or forward commitment transactions in order to secure what is
considered to be an advantageous price and yield at the time of entering
into the obligation. The purchase of securities on a when-issued or forward
commitment basis involves a risk of loss if the value of the security to be
purchased declines before the settlement date. Conversely, the sale of
securities on a when-issued or forward commitment basis involves the risk
that the value of the securities sold may increase before the settlement
date. Securities purchased or sold on a when-issued or forward commitment
basis outstanding at the end of the period, if any, are included in
investments purchased/sold on an extended settlement basis in the Statement
of Assets and Liabilities.
Loans: The Fund invests in senior loans which generally consist of direct
debt obligations of companies (collectively, "Borrowers"), primarily U.S.
companies and their affiliates, undertaken to finance the growth of the
Borrower's business internally and externally, or to finance a capital
restructuring. Transactions in senior loans may settle on a delayed basis.
Unsettled loans at the end of the period, if any, are included in
investments purchased/sold on an extended settlement basis in the Statement
of Assets and Liabilities.
Securities Transactions, Investment Income, Expenses, Dividends and
Distributions to Shareholders: Security transactions are recorded on a trade
date basis. Realized gains and losses on sales of investments are calculated
on the identified cost basis. Interest income is accrued daily from
settlement date except when collection is not expected. Dividend income is
recorded on the ex-dividend date. For financial statement purposes, the Fund
amortizes all premiums and accretes all discounts. Facility fees are
accreted over the life of the loan. Fees in the
29
SunAmerica Senior Floating Rate Fund, Inc.
NOTES TO FINANCIAL STATEMENTS -- December 31, 2019 -- (continued)
amount of $176,433 were recognized for the year ended December 31, 2019.
Other income, including amendment fees, commitment fees, letter of credit
fees, etc., which were $81,889 for the year ended December 31, 2019, are
recorded as income when received or contractually due to the Fund.
Net investment income, other than class specific expenses, and realized and
unrealized gains and losses are allocated daily to each class of shares
based upon the relative value of outstanding shares (or the value of
dividend-eligible shares, as appropriate) of each class of shares at the
beginning of the day (after adjusting for the current capital share activity
of the respective class).
Dividends from net investment income are normally declared daily and paid
monthly. Capital gain distributions, if any, are paid annually. The Fund
records dividends and distributions to the shareholders on the ex-dividend
date. The amount of dividends and distributions from net investment income
and net realized capital gains are determined in accordance with federal
income tax regulations, which may differ from GAAP. These "book/tax"
differences are either considered temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts are
reclassified within the capital accounts at fiscal year end based on their
federal tax-basis treatment; temporary differences do not require
reclassification. Net assets are not affected by the reclassifications.
The Fund is considered a separate entity for tax purposes and intends to
comply with the requirements of the Internal Revenue Code, as amended,
applicable to regulated investment companies and distribute all of its
taxable income, including any net capital gains on investments, to its
shareholders. The Fund also intends to distribute sufficient net investment
income and net capital gains, if any, so that the Fund will not be subject
to excise tax on undistributed income and gains. Therefore, no federal
income tax or excise tax provision is required.
The Fund recognizes the tax benefits of uncertain tax positions only when
the position is more likely than not to be sustained, assuming examination
by tax authorities. Management has analyzed the Fund's tax positions and
concluded that no liability for unrecognized tax benefits should be recorded
related to uncertain tax positions taken on returns filed for open tax years
2016-2018 or expected to be taken in the Fund's 2019 tax return. The Fund is
not aware of any tax provisions for which it is reasonably possible that the
total amounts of unrecognized tax benefits will change materially in the
next twelve months. The Fund files U.S. federal and certain state income tax
returns. With few exceptions, the Fund is no longer subject to U.S. federal
and state tax examinations by tax authorities for tax returns ending before
2016.
Foreign Currency Translation: The books and records of the Fund is
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 Fund does 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
Fund does 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.
LIBOR Risk: A fund's investments, payment obligations and financing terms
may be based on floating rates, such as London Interbank Offer Rate
("LIBOR"), Euro Interbank Offered Rate and other similar types of reference
rates (each, a "Reference Rate"). On July 27, 2017, the Chief Executive of
the UK Financial Conduct Authority ("FCA"), which regulates LIBOR, announced
that the FCA will no longer persuade nor require banks to submit rates for
the calculation of LIBOR and certain other Reference Rates after 2021. Such
announcement indicates that the
30
SunAmerica Senior Floating Rate Fund, Inc.
NOTES TO FINANCIAL STATEMENTS -- December 31, 2019 -- (continued)
continuation of LIBOR and other Reference Rates on the current basis cannot
and will not be guaranteed after 2021. This announcement and any additional
regulatory or market changes may have an adverse impact on a fund or its
investments.
In advance of 2021, regulators and market participants will work together to
identify or develop successor Reference Rates. Additionally, prior to 2021,
it is expected that market participants will focus on the transition
mechanisms by which the Reference Rates in existing contracts or instruments
may be amended, whether through market wide protocols, fallback contractual
provisions, bespoke negotiations or amendments or otherwise. Nonetheless,
the termination of certain Reference Rates presents risks to a fund. At this
time, it is not possible to completely identify or predict the effect of any
such changes, any establishment of alternative Reference Rates or any other
reforms to Reference Rates that may be enacted in the UK or elsewhere. The
elimination of a Reference Rate or any other changes or reforms to the
determination or supervision of Reference Rates could have an adverse impact
on the market for or value of any securities or payments linked to those
Reference Rates and other financial obligations held by a fund or on its
overall financial condition or results of operations. In addition, any
substitute Reference Rate and any pricing adjustments imposed by a regulator
or by counterparties or otherwise may adversely affect a fund's performance
and/or NAV.
New Accounting Pronouncements: In August 2018, the FASB issued Accounting
Standards Update ("ASU") No. 2018-13 "Disclosure Framework -- Changes to the
Disclosure Requirements for Fair Value Measurement". The ASU eliminates,
modifies, and adds disclosure requirements for fair value measurements and
is effective for fiscal years, and interim periods within those fiscal
years, beginning after December 15, 2019. The ASU allows for early adoption
of either the entire standard or only the provisions that eliminate or
modify the requirements. Management has elected to early adopt the
provisions that eliminate disclosure requirements and is still evaluating
the impact of applying the rest of the ASU.
Effective January 1, 2019, the Fund is subject to ASU 2017-08, "Premium
Amortization on Purchased Callable Debt Securities", which requires the
premiums on certain purchased debt securities with non-contingent call
features to be amortized to the earliest call date. The amortization period
for callable debt securities purchased at a discount is not impacted.
Adoption of the ASU had no material impact on the Fund.
Note 3. Capital Share Transactions
For the For the
year ended year ended
December 31, 2019 December 31, 2018
------------------------ ------------------------
Shares Amount Shares Amount
Class A ---------- ------------ ---------- ------------
Shares sold............................................................... 2,840,820 $ 22,514,129 5,481,742 $ 44,300,731
Reinvested dividends...................................................... 556,869 4,406,845 509,372 4,096,024
Shares redeemed........................................................... (6,221,145) (49,205,810) (4,147,475) (33,471,507)
---------- ------------ ---------- ------------
Net increase (decrease) in shares outstanding before automatic conversion. (2,823,456) (22,284,836) 1,843,639 14,925,248
Shares issued/(reacquired) upon automatic conversion...................... 122,660 972,358 1,400,892 11,357,027
---------- ------------ ---------- ------------
Net increase (decrease)................................................ (2,700,796) $(21,312,478) 3,244,531 $ 26,282,275
========== ============ ========== ============
For the For the
year ended year ended
December 31, 2019 December 31, 2018
------------------------ ------------------------
Shares Amount Shares Amount
Class C ---------- ------------ ---------- ------------
Shares sold............................................................... 1,009,419 $ 7,996,848 2,003,292 $ 15,909,264
Reinvested dividends...................................................... 392,439 3,104,263 427,597 3,440,328
Shares redeemed........................................................... (4,308,722) (34,033,672) (5,490,815) (44,322,304)
---------- ------------ ---------- ------------
Net increase (decrease) in shares outstanding before automatic conversion. (2,906,864) (22,932,561) (3,059,926) (24,972,712)
Shares issued/(reacquired) upon automatic conversion...................... (122,698) (972,358) (1,402,611) (11,357,027)
---------- ------------ ---------- ------------
Net increase (decrease)................................................ (3,029,562) $(23,904,919) (4,462,537) $(36,329,739)
========== ============ ========== ============
31
SunAmerica Senior Floating Rate Fund, Inc.
NOTES TO FINANCIAL STATEMENTS -- December 31, 2019 -- (continued)
For the For the
year ended year ended
December 31, 2019 December 31, 2018
------------------------ ------------------------
Shares Amount Shares Amount
Class W ---------- ------------ ---------- ------------
Shares sold................................... 4,824,111 $ 38,332,740 3,006,055 $ 24,317,429
Reinvested dividends.......................... 235,531 1,868,579 110,289 885,761
Shares redeemed............................... (4,133,314) (32,865,173) (1,851,429) (14,958,054)
---------- ------------ ---------- ------------
Net increase (decrease) in shares outstanding. 926,328 7,336,146 1,264,915 10,245,136
========== ============ ========== ============
Note 4. Purchases and Sales of Securities
During the year ended December 31, 2019, the Fund's cost of purchases and
proceeds from sale of long-term investments, including loan principal
paydowns, were $76,123,227 and $111,433,538, respectively.
Note 5. Investment Advisory Agreement and Other Transactions with Affiliates
The Fund has entered into an Investment Advisory and Management Agreement
(the "Advisory Agreement") with SunAmerica. Pursuant to the Advisory
Agreement, SunAmerica provides continuous supervision of the Fund and
administers its corporate affairs, subject to the general review and
oversight of the Board. In connection therewith, SunAmerica furnishes the
Fund with office facilities, maintains certain of the Fund's books and
records and pays the salaries and expenses of all personnel, including
officers of the Fund who are employees of SunAmerica and its affiliates.
SunAmerica also selects, contracts with and compensates the subadviser to
manage the Fund's assets. The Fund will pay SunAmerica a monthly management
fee at the following annual rates, based on the average daily net assets of
the Fund: 0.85% on the first $1 billion; 0.80% on the next $1 billion; and
0.75% in excess of $2 billion.
Pursuant to an Advisory Fee Waiver Agreement, SunAmerica is contractually
obligated to waive its advisory fee with respect to the Fund so that the
advisory fee payable by the Fund to SunAmerica equals 0.63% on the first
$2 billion of average daily net assets and 0.58% above $2 billion of average
daily net assets. For the year ended December 31, 2019, SunAmerica waived
$512,265 of investment advisory fees.
Wellington Management Company LLP ("Wellington") acts as subadviser to the
Fund pursuant to a Subadvisory Agreement with SunAmerica. Under the
Subadvisory Agreement, Wellington manages the investment and reinvestment of
the Fund's assets. The fee paid to the subadviser is paid by SunAmerica and
not the Fund.
Pursuant to the Administrative Services Agreement (the "Administrative
Agreement"), SunAmerica acts as the Fund's administrator and is responsible
for providing and supervising the performance by others, of administrative
services in connection with the operations of the Fund, subject to
supervision by the Fund's Board. For its services, SunAmerica receives an
annual fee equal to 0.20% of average daily net assets of the Fund. For the
year ended December 31, 2019, SunAmerica earned fees as reflected in the
Statement of Operations based upon the aforementioned rate.
The Fund has entered into a Distribution Agreement with AIG Capital
Services, Inc. ("ACS" or the "Distributor"), an affiliate of the Adviser.
The Fund has adopted a Distribution Plan on behalf of each class of shares
(other than Class W shares) (each a "Plan" and collectively, the "Plans") in
accordance with the provisions of Rule 12b-1 under the 1940 Act, hereinafter
referred to as the "Class A Plan" and "Class C Plan". In adopting the Plans,
the Board determined that there was a reasonable likelihood that each such
Plan would benefit the Fund and the shareholders of the respective class.
The sales charge and distribution fees of a particular class will not be
used to subsidize the sale of shares of any other class.
Under the Class A Plan and Class C Plan, the Distributor receives payments
from the Fund at an annual rate of 0.10% and 0.50%, respectively, of the
average daily net assets of the Fund's Class A and Class C shares to
compensate the Distributor and certain securities firms for providing sales
and promotional activities for distributing that class of shares. The
distribution costs for which the Distributor may be compensated include fees
paid to broker-dealers that have sold Fund shares, commissions and other
expenses such as those incurred for sales literature,
32
SunAmerica Senior Floating Rate Fund, Inc.
NOTES TO FINANCIAL STATEMENTS -- December 31, 2019 -- (continued)
prospectus printing and distribution and compensation to wholesalers. It is
possible that in any given year, the amount paid to the Distributor under
each Class' Plan may exceed the Distributor's distribution costs as
described above. The Plans provide that the Class A and Class C shares of
the Fund will pay the Distributor an account maintenance fee up to an annual
rate of 0.25% of the aggregate average daily net assets of such class of
shares for payments to compensate the Distributor and certain securities
firms for account maintenance activities. The Distributor does not receive
or retain any distribution and/or account maintenance fees for any shares
when the shareholder does not have a broker of record. For the year ended
December 31, 2019, ACS received fees (see Statement of Operations) based
upon the aforementioned rates.
The 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
additional shareholder services to Class W shareholders. For the year ended
December 31, 2019, ACS earned fees as reflected in the Statement of
Operations based on the aforementioned rate.
For the year ended December 31, 2019, ACS received sales charges on Class A
shares of $152,272, of which $60,634 was reallowed to affiliated
broker-dealers and $63,866 to non-affiliated broker-dealers. In addition,
ACS receives the proceeds of contingent deferred sales charges paid by
investors in connection with certain redemptions of Class A and Class C
shares. For the year ended December 31, 2019, ACS received contingent
deferred sales charges of $6,394.
The Fund 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 Fund's
transfer agent in connection with the services that it offers to the
shareholders of the Fund. The Service Agreement, which permits the Fund to
compensate AFS for services rendered based upon an annual rate of 0.22% of
average daily net assets, is approved annually by the Board. For the year
ended December 31, 2019, the Fund incurred the following expenses, which are
included in the transfer agent fees and expenses payable in the Statement of
Assets and Liabilities and in transfer agent fees and expenses in the
Statement of Operations to compensate AFS pursuant to the terms of the
Service Agreement.
Payable at
Expense December 31, 2019
- -------- -----------------
Class A............................ $237,030 $17,984
Class C............................ 190,603 13,798
Class W............................ 84,123 7,023
Effective March 8, 2019, SunAmerica has contractually agreed to waive fees
and/or reimburse expenses to the extent necessary to cap the Fund's annual
operating expenses at 1.02% for Class A, 1.42% for Class C and 0.82% for
Class W of average daily net assets. Prior to March 8, 2019, SunAmerica
contractually agreed to waive fees and/or reimburse expenses to the extent
necessary to cap the Fund's annual operating expenses at 1.04% for Class A,
1.44% for Class C and 0.84% for Class W of average daily net assets. For
purposes of waived fees and/or reimbursed expense calculations, annual Fund
operating expenses shall not include extraordinary expenses, (i.e., expenses
that are unusual in nature and infrequent in occurrence, such as
litigation), or acquired fund fees and expenses, brokerage commissions and
other transactional expenses relating to the purchase and sale of portfolio
securities, interest, taxes and governmental fees and other expenses not
incurred in the ordinary course of the Fund's business. The expense
reimbursements and fee waivers will continue indefinitely, unless terminated
by the Board, including a majority of the Disinterested Directors. For the
year ended December 31, 2019, SunAmerica waived fees and/or reimbursed
expenses as follows: Class A $639,127, Class C $515,254 and Class W $240,438.
33
SunAmerica Senior Floating Rate Fund, Inc.
NOTES TO FINANCIAL STATEMENTS -- December 31, 2019 -- (continued)
Note 6. Federal Income Taxes
The following details the tax basis distributions as well as the components
of distributable earnings. The tax basis components of distributable
earnings differ from the amounts reflected in the Statement of Assets and
Liabilities by temporary book/tax differences primarily arising from
dividends payable and wash sales.
Distributable Earnings Tax Distributions Tax Distributions
---------------------------------------- ------------------------------------- -------------------------------------
For the year ended December 31, 2019 For the year ended December 31, 2019 For the year ended December 31, 2018
---------------------------------------- ------------------------------------- -------------------------------------
Long-term Gains/ Unrealized Long-term Long-term
Ordinary Capital and Appreciation/ Ordinary Capital Ordinary Capital
Income Other Losses (Depreciation) Income Gains Income Gains
-------- ---------------- -------------- ------------ --------- ------------ ---------
$ -- $(26,719,069) $(6,592,670) $10,824,840 $ -- $10,140,060 $ --
Capital Loss Carryforwards: At December 31, 2019 for Federal income tax
purposes, the Fund has $26,183,559 of unlimited long-term capital losses and
$535,510 of unlimited short-term capital losses.
Under the current law, capital losses realized after October 31 and
specified ordinary losses may be deferred and treated as occurring on the
first day of the following year. For the year ended December 31, 2019, the
fund deferred $29,421 of late year ordinary losses, and $560,933 of
post-October capital losses, consisting of $125,639 short-term gains and
$686,572 of long-term losses.
For the year ended December 31, 2019, reclassifications were made to
decrease accumulated net realized gain (loss) by $500,862 and increase
undistributed net investment income by $500,862. The reclassifications
arising from book/tax differences were due primarily to the reclassification
of foreign currency gains and losses.
At December 31, 2019, the amounts of aggregate unrealized gain (loss) and
the cost of investment securities for federal tax purposes, including
short-term securities, repurchase agreements and derivatives, were as
follows:
Cost (tax basis)............................................ $215,279,407
============
Gross unrealized appreciation............................... 1,646,817
Gross unrealized depreciation............................... (8,239,552)
------------
Net unrealized depreciation................................. $ (6,592,735)
============
Note 7. Line of Credit
The Fund, along with certain other funds managed by the Adviser has access
to a $75 million committed unsecured line of credit and a $50 million
uncommitted unsecured line of credit. The committed and uncommitted lines of
credit are renewable on an annual basis with State Street Bank and Trust
Company ("State Street"), the Fund's custodian. Interest is currently
payable on the committed line of credit at the higher of the Federal Funds
Rate (but not less than zero) plus 125 basis points or the One-Month London
Interbank Offered Rate (but not less than zero) plus 125 basis points and
State Street'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 a one-time closing fee of
$25,000 on the uncommitted line of credit. Borrowings under the line of
credit will commence when the respective Fund's cash shortfall exceeds
$100,000.
For the year ended December 31, 2019, the Fund did not utilize the line of
credit.
Note 8. Interfund Lending
Pursuant to the exemptive relief granted by the SEC, the Fund is permitted
to participate in an interfund lending program among investment companies
advised by SunAmerica or an affiliate. The interfund lending program allows
the participating funds to borrow money from and lend money to each other
for temporary or emergency purposes.
34
SunAmerica Senior Floating Rate Fund, Inc.
NOTES TO FINANCIAL STATEMENTS -- December 31, 2019 -- (continued)
An interfund loan will be made under this facility only if the participating
funds receive a more favorable interest rate than would otherwise be
available from a typical bank for a comparable transaction. For the year
ended December 31, 2019, the Fund did not participate in this program.
Note 9. Investment Concentration
The Fund invests primarily in participations and assignments, or acts as a
party to the primary lending syndicate of a variable rate senior loan
interest to United States corporations, partnerships, and other entities. If
the lead lender in a typical lending syndicate becomes insolvent, enters
receivership or, if not FDIC insured, enters into bankruptcy, the Fund may
incur certain costs and delays in receiving payment, or may suffer a loss of
principal and/or interest. When the Fund purchases a participation of a
senior loan interest, the Fund typically enters into a contractual agreement
with the lender or other third party selling the participation but not with
the borrower directly. As such, the Fund is subject to the credit risk of
the borrower, selling participant, lender or other persons positioned
between the Fund and the borrower.
Note 10. Unfunded Loan Commitments
At December 31, 2019, the Fund had the following unfunded loan commitments
which could be extended at the option of the Borrower:
Maturity Principal
Borrower Type Date Amount Value
-------- ------------ ---------- --------- --------
MED ParentCo LP.................... Delayed Draw 08/31/2026 $128,341 $128,341
35
SunAmerica Senior Floating Rate Fund, Inc.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors of SunAmerica Senior Floating Rate Fund, Inc. and
Shareholders of the AIG Senior Floating Rate Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of AIG Senior Floating Rate Fund (the "Fund") as
of December 31, 2019, the related statement of operations for the year ended
December 31, 2019, the statement of changes in net assets for each of the two
years in the period ended December 31, 2019, including the related notes, and
the financial highlights for each of the periods indicated therein
(collectively referred to as the "financial statements"). In our opinion, the
financial statements present fairly, in all material respects, the financial
position of the Fund as of December 31, 2019, the results of its operations for
the year then ended, the changes in its net assets for each of the two years in
the period ended December 31, 2019 and the financial highlights for each of the
periods indicated therein in conformity with accounting principles generally
accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our
responsibility is to express an opinion on the Fund's financial statements
based on our audit. 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 Fund 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 audit 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 December 31, 2019 by
correspondence with the custodian, brokers and selling or agent banks; when
replies were not received, we performed other auditing procedures. We believe
that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Houston, Texas
February 26, 2020
We have served as the auditor of one or more investment companies in the AIG
Funds family of funds since 1984.
36
SunAmerica Senior Floating Rate Fund, Inc.
DIRECTORS AND OFFICERS INFORMATION -- December 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. Unless otherwise noted, the address of each Director
and executive officer is Harborside 5, 185 Hudson Street, Suite 3300, Jersey
City, NJ 07311.
Number of
Funds in
Name Position(s) Fund Complex
and Held With Length of Principal Occupation(s) Overseen by
Age Trust Time Served(1) During Past 5 Years Trustee(2)
----------------------- ----------- -------------- ------------------------------- ------------
Disinterested Trustees
Dr. Judith L. Craven Trustee 2001- Retired. 73
Age: 74 present
Richard W. Grant Trustee 2011- Retired. 24
Age: 74 Chairman present
of the
Board
Stephen J. Gutman Trustee 2001- Senior Vice President and 24
Age: 76 present Associate Broker, The
Corcoran Group (real estate)
(2002 to present); President,
SJG Marketing, Inc. (2009 to
present).
Eileen A. Kamerick Trustee 2018- National Association of 24
Age: 61 present Corporate 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 (health care
informatics company) (2012
to 2014).
Interested Trustee
Peter A. Harbeck(4) Trustee 2001- Retired June 2019; formerly 73
Age: 66 present President, CEO (1997 to
2019), and Director (1992 to
2019), SunAmerica; Director,
AIG Capital Services, Inc.
("ACS") (1993 to 2019);
Chairman, President and
CEO, Advisor Group, Inc.
(2004 to 2016).
Name Other Directorship(s)
and Held by Trustee
Age During Past Five Years(3)
----------------------- ---------------------------------
Disinterested Trustees
Dr. Judith L. Craven Director A.G. Belo Corp.
Age: 74 (media company) (1992 to
2014); Director, Sysco Corp.
(food marketing and
distribution company) (1996
to 2017); Director, Luby's, Inc.
(1998 to present).
Richard W. Grant None
Age: 74
Stephen J. Gutman None
Age: 76
Eileen A. Kamerick Hochschild Mining plc
Age: 61 (precious 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: 66
--------
(1) Trustees serve until their successors are duly elected and qualified.
(2) The term "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 any investment
adviser that is an affiliate of the Adviser. The "Fund Complex" includes
the Trust (1 fund), SunAmerica Money Market
37
SunAmerica Senior Floating Rate Fund, Inc.
DIRECTORS AND OFFICERS INFORMATION -- December 31, 2019 -- (unaudited)
(continued)
Funds Inc. ("SAMMF") (1 fund), SunAmerica Equity Funds ("SAEF") (2 funds),
SunAmerica Income Funds ("SAIF") (3 funds), SunAmerica Series, Inc. ("SA
Series") (6 funds), Anchor Series Trust ("AST") (5 portfolios), SunAmerica
Specialty Series (6 funds), SunAmerica Series Trust ("SAST")
(60 portfolios), VALIC Company I ("VALIC I") (34 funds), VALIC Company II
("VALIC II") (15 funds), Seasons Series Trust ("SST") (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.
Name
and Position(s) Length of Principal Occupation(s)
Age Held with Trust Time Served During Past 5 Years
--------------------- --------------- ----------- ---------------------------------------------------------------------------
Officers
John T. Genoy President 2007- Chief Financial Officer, SunAmerica (2002 to present); Senior Vice
Age: 51 present President, SunAmerica (2004 to present); Chief Operating Officer,
SunAmerica (2006 to present).
Sharon French Executive 2019- President and CEO of SunAmerica (since 2019); Vice President of AIG
Age: 54 Vice President present (since 2019); Executive Vice President and Head of Beta Solutions,
OppenheimerFunds (2016-2019); President, F-Squared Capital, LLC
(financial services) (2013-2015).
Gregory R. Kingston Treasurer 2014- Vice President, SunAmerica (2001 to present); Head of Mutual Fund
Age: 53 present Administration, SunAmerica (2014 to present).
2919 Allen Parkway
Houston, Texas 77019
James Nichols Vice President 2006- Director, President and CEO, ACS (2006 to present); Senior Vice President,
Age: 53 present SunAmerica (2002 to present).
Gregory N. Bressler Secretary 2005- Senior Vice President and General Counsel, SunAmerica (2005 to present).
Age: 53 present
Kathleen D. Fuentes Chief Legal 2013- Vice President and Deputy General Counsel, SunAmerica (2006 to present).
Age: 50 Officer and present
Assistant
Secretary
Timothy P. Pettee Vice President 2018 to Chief Investment Officer, SunAmerica (2018 to Present); Lead Portfolio
Age: 60 Present Manager-Rules Based Funds (2013 to Present); Chief Investment Officer
(2003 to 2013)
Shawn Parry Vice President 2014- Assistant Vice President, SunAmerica (2005 to 2014); Vice President,
Age: 47 and Assistant present SunAmerica (2014 to present).
2919 Allen Parkway Treasurer
Houston, Texas 77019
Donna M. McManus Vice President 2014- Managing Director, BNY Mellon (2009-2014); Vice President, SunAmerica,
Age: 58 and Assistant present (2014 to present).
Treasurer
Christopher C. Joe Chief 2017 to Chief Compliance Officer, AIG Funds, Anchor Series Trust, Seasons Series
Age: 50 Compliance Present Trust, SunAmerica Series Trust, VALIC Company I and VALIC Company II
2919 Allen Parkway Officer (2017-Present); Chief Compliance Officer, VALIC Retirement Services
Houston, Texas 77019 Company (2017-Present); Chief Compliance Officer, The Variable Annuity
Life Insurance Company (2017 to 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).
38
SunAmerica Senior Floating Rate Fund, Inc.
DIRECTORS AND OFFICERS INFORMATION -- December 31, 2019 -- (unaudited)
(continued)
Name
and Position(s) Length of Principal Occupation(s)
Age Held with Trust Time Served During Past 5 Years
--------------------- --------------- ----------- --------------------------------------------------------------------------
Matthew J. Hackethal Anti-Money 2006- Acting Chief Compliance Officer, AIG Funds, Anchor Series Trust, Seasons
Age: 48 Laundering present Series Trust, SunAmerica Series Trust, VALIC Company I and VALIC
("AML") Company II (2016 to 2017); Chief Compliance Officer, SunAmerica (2006 to
Compliance Present); Chief Compliance Officer, The Variable Annuity Life Insurance
Officer 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).
39
SunAmerica Senior Floating Rate Fund, Inc.
SHAREHOLDER TAX INFORMATION -- (unaudited)
Certain tax information regarding the Fund is required to be provided to
shareholders based upon the Fund's income and distributions for the taxable
year ended December 31, 2019. The information necessary to complete your income
tax returns is included with your Form 1099-DIV, which will be mailed to
shareholders in early 2020.
During the year ended December 31, 2019, the Fund paid the following dividends
along with the percentage of ordinary income dividends that qualified for the
dividends received deductions for corporations:
Net Qualifying % for
Long-Term the Dividends
Capital Gains Received Deduction
- ------------- ------------------
Class A............................ $ -- --%
Class C............................ -- --
For the year ended December 31, 2019, certain dividends paid by the Fund may be
subject to a maximum tax rate of 15%, as provided by the Jobs and Growth Tax
Relief Reconciliation Act of 2003. Of the distributions paid during the fiscal
year, none may be considered qualified dividend income.
40
SunAmerica Senior Floating Rate Fund, Inc.
COMPARISON: FUND vs. INDEX -- (unaudited)
As required by the Securities and Exchange Commission, the graph on the
following pages compares the performance of a $10,000 investment in the Fund to
a similar investment in the index. Please note that the term "inception," as
used herein, reflects the date on which a specific class of shares commenced
operations. It is important to note that the Fund is a professionally managed
mutual fund while the index is not available for investment and is unmanaged.
The comparison is shown for illustrative purposes only. The graph presents the
performance of Class C shares of the Fund. The performance of the other classes
will vary based upon the difference in sales charges and fees assessed to
shareholders of that class. Past performance does not predict future results.
41
SunAmerica Senior Floating Rate Fund, Inc.
COMPARISON: FUND vs. INDEX -- (unaudited) (continued)
The AIG Senior Floating Rate Fund (Class C) returned 7.08%, underperforming its
benchmark, the S&P/LSTA Leveraged Loan Index (the "LLI"),* which returned 8.64%
for the annual period ended December 31, 2019. The Fund also underperformed the
Bloomberg Barclays U.S. Aggregate Bond Index,* a broad-based fixed income
market index, which returned 8.72% for the same annual period.
In aggregate, industry allocation decisions detracted from the Fund's relative
results. The Fund's overweight to the energy industry detracted most. Energy
was the second-weakest industry within the LLI during the annual period. On the
positive side, the Fund's overweight to the strongly performing gaming industry
added value. The gaming industry benefited from favorable consumer demand amid
low unemployment and positive consumer confidence as well as low expected
supply growth, with no commercial casino projects currently available
domestically.
Security selection overall contributed favorably to the Fund's results, driven
primarily by strong selection within the financial institutions and technology
industries. This was partially offset by weaker selection within the metals and
mining and energy industries, which detracted. Within the energy industry, most
of the Fund's exposures were to midstream and independent exploration and
production issues that are less sensitive to oil prices than the oilfield
services sub-industry. As oil prices rose during the annual period, this
positioning dampened relative results.
Among individual loans, we found what we considered to be the best
opportunities among higher quality, U.S.-focused issuers in less cyclical
industries. The individual loans that contributed most positively to the Fund's
absolute returns were those of coal producer Murray Energy, energy services
company McDermott International and agricultural products and services provider
Pinnacle Operating, the last of which is not a constituent of the LLI but
outperformed the LLI during the annual period. Significant detractors from the
Fund's returns included loans issued by coal miner Foresight Energy, oil
refineries owner and operator Philadelphia Energy Solutions and oil and gas
exploration and production services provider Vine Oil & Gas LP, the latter two
of which are not constituents of the LLI and underperformed the LLI during the
annual period. Compared to the LLI, as of the end of 2019, the Fund maintained
an overweight position in loans rated BB, as we believed they offered the best
risk/reward profiles.
--------
Past performance is no guarantee of future results.
* The S&P/LSTA Leveraged Loan Index (LLI) reflects the market-weighted
performance of U.S. dollar-denominated institutional leveraged loans. The
LLI is the only domestic leveraged loan index that utilizes real-time market
weightings, spreads and interest payments. 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.
Securities listed may or may not be a part of current portfolio construction.
The Fund is not a money market fund and its net asset value may fluctuate.
Investments in loans involve certain risks including nonpayment of principal
and interest; collateral impairment; non-diversification and borrower industry
concentration; and lack of an active trading market, in certain cases, which
may impair the Fund's ability to obtain full value for loans sold. The Fund may
invest all or substantially all of its assets in loans or other securities
(e.g., unsecured loans or high yield securities) that are rated below
investment grade, or in comparable unrated securities. Credit risks include the
possibility of a default on the loan or bankruptcy of the borrower. The value
of these loans is subject to a greater degree of volatility in response to
interest rate fluctuations.
42
SunAmerica Senior Floating Rate Fund, Inc.
COMPARISON: FUND vs. INDEX -- (unaudited) (continued)
Over the past ten years, $10,000 invested in the Senior Floating Rate Fund
Class C shares would have increased to $14,832. The same amount invested in
securities mirroring the performance of the S&P/LSTA Leveraged Loan Index and
the Bloomberg Barclays U.S. Aggregate Bond Index would be valued at $16,300 and
$14,445, respectively.
[CHART]
Senior Floating S&P/LSTA Leveraged Bloomberg Barclays U.S.
Rate Fund Class C Loan Index++ Aggregate Bond Index**
----------------- ------------------- ----------------------
12/31/2008 $10,000 $10,000 $10,000
1/31/2009 10,590 10,740 9,912
2/28/2009 10,503 10,824 9,874
3/31/2009 10,479 10,980 10,012
4/30/2009 11,765 11,935 10,060
5/31/2009 12,731 12,663 10,132
6/30/2009 13,558 13,218 10,190
7/31/2009 14,253 13,844 10,354
8/31/2009 14,668 14,158 10,462
9/30/2009 15,238 14,611 10,572
10/31/2009 15,518 14,691 10,624
11/30/2009 15,599 14,729 10,761
12/31/2009 16,025 15,162 10,593
1/31/2010 16,470 15,472 10,755
2/28/2010 16,480 15,516 10,795
3/31/2010 16,863 15,865 10,782
4/30/2010 17,116 16,099 10,894
5/31/2010 16,752 15,736 10,986
6/30/2010 16,635 15,663 11,158
7/31/2010 16,858 15,903 11,277
8/31/2010 16,935 15,957 11,422
9/30/2010 17,144 16,181 11,434
10/31/2010 17,377 16,435 11,475
11/30/2010 17,439 16,493 11,409
12/31/2010 17,630 16,698 11,286
1/31/2011 17,897 17,027 11,299
2/28/2011 18,034 17,106 11,327
3/31/2011 18,028 17,103 11,334
4/30/2011 18,108 17,212 11,478
5/31/2011 18,104 17,197 11,627
6/30/2011 18,032 17,133 11,593
7/31/2011 18,046 17,158 11,777
8/31/2011 17,167 16,403 11,949
9/30/2011 17,227 16,473 12,036
10/31/2011 17,646 16,949 12,049
11/30/2011 17,574 16,866 12,039
12/31/2011 17,641 16,952 12,171
1/31/2012 17,947 17,322 12,278
2/29/2012 18,070 17,455 12,275
3/31/2012 18,204 17,589 12,208
4/30/2012 18,312 17,719 12,343
5/31/2012 18,200 17,600 12,455
6/30/2012 18,307 17,721 12,460
7/31/2012 18,482 17,926 12,632
8/31/2012 18,663 18,128 12,640
9/30/2012 18,862 18,329 12,657
10/31/2012 18,885 18,387 12,682
11/30/2012 18,949 18,444 12,702
12/31/2012 19,087 18,589 12,684
1/31/2013 19,312 18,787 12,595
2/28/2013 19,325 18,826 12,658
3/31/2013 19,457 18,981 12,669
4/30/2013 19,632 19,094 12,797
5/31/2013 19,622 19,130 12,568
6/30/2013 19,495 19,017 12,374
7/31/2013 19,675 19,205 12,391
8/31/2013 19,666 19,198 12,328
9/30/2013 19,678 19,245 12,444
10/31/2013 19,834 19,385 12,545
11/30/2013 19,918 19,481 12,498
12/31/2013 19,996 19,572 12,427
1/31/2014 20,123 19,700 12,611
2/28/2014 20,153 19,735 12,678
3/31/2014 20,212 19,806 12,656
4/30/2014 20,194 19,828 12,763
5/31/2014 20,250 19,965 12,908
6/30/2014 20,352 20,080 12,915
7/31/2014 20,314 20,074 12,883
8/31/2014 20,349 20,105 13,025
9/30/2014 20,209 19,985 12,937
10/31/2014 20,244 20,037 13,064
11/30/2014 20,306 20,137 13,156
12/31/2014 20,000 19,884 13,169
1/31/2015 20,015 19,950 13,445
2/28/2015 20,326 20,231 13,318
3/31/2015 20,391 20,307 13,380
4/30/2015 20,579 20,493 13,332
5/31/2015 20,624 20,532 13,300
6/30/2015 20,513 20,446 13,155
7/31/2015 20,475 20,445 13,247
8/31/2015 20,289 20,302 13,228
9/30/2015 20,119 20,170 13,317
10/31/2015 20,111 20,133 13,319
11/30/2015 19,867 19,957 13,284
12/31/2015 19,630 19,747 13,241
1/31/2016 19,462 19,618 13,423
2/29/2016 19,369 19,515 13,519
3/31/2016 19,928 20,053 13,643
4/30/2016 20,333 20,451 13,695
5/31/2016 20,529 20,633 13,698
6/30/2016 20,538 20,637 13,945
7/31/2016 20,812 20,933 14,033
8/31/2016 20,953 21,090 14,017
9/30/2016 21,120 21,272 14,008
10/31/2016 21,265 21,448 13,901
11/30/2016 21,295 21,504 13,572
12/31/2016 21,546 21,753 13,592
1/31/2017 21,744 21,875 13,618
2/28/2017 21,858 21,984 13,710
3/31/2017 21,872 22,002 13,703
4/30/2017 21,908 22,098 13,808
5/31/2017 21,969 22,179 13,915
6/30/2017 21,950 22,169 13,901
7/31/2017 22,093 22,322 13,960
8/31/2017 22,015 22,312 14,086
9/30/2017 22,118 22,399 14,019
10/31/2017 22,305 22,533 14,027
11/30/2017 22,312 22,560 14,009
12/31/2017 22,399 22,649 14,073
1/31/2018 22,571 22,867 13,911
2/28/2018 22,594 22,912 13,779
3/31/2018 22,621 22,977 13,867
4/30/2018 22,713 23,072 13,764
5/31/2018 22,708 23,111 13,863
6/30/2018 22,706 23,137 13,845
7/31/2018 22,874 23,308 13,849
8/31/2018 22,986 23,402 13,938
9/30/2018 23,124 23,563 13,848
10/31/2018 23,070 23,555 13,739
11/30/2018 22,810 23,343 13,821
12/31/2018 22,197 22,749 14,075
Class A Class C Class W
Senior ------------------ ------------------ ------------------
Floating Average Average Average
Rate Annual Cumulative Annual Cumulative Annual Cumulative
Fund# Return Return+ Return Return+ Return Return+
----------------- ------- ---------- ------- ---------- ------- ----------
1 Year Return 3.46% 7.49% 6.08% 7.08% 7.70% 7.70%
--------------------------------------------------------------------------
5 Year Return 3.07% 20.82% 3.51% 18.85% N/A N/A
--------------------------------------------------------------------------
10 Year Return 3.93% 52.83% 4.02% 48.32% N/A N/A
--------------------------------------------------------------------------
Since Inception* 3.10% 55.68% 3.70% 117.00% 3.67% 10.22%
--------------------------------------------------------------------------
# For the purposes of the table, it has been assumed that
the maximum sales charge of 3.75% with respect to Class
A shares was deducted from the initial investment in
the Fund and that the CDSCs with respect to the Class C
shares have been deducted, as applicable.
+ Cumulative returns do not include sales load. If sales
load had been included, the return would have been
lower.
* Inception date: Class A: 10/04/2006; Class C:
08/31/1998; Class W: 04/20/2017
++ The S&P/LSTA Leveraged Loan Index (LLI) reflects the
market-weighted performance of U.S. dollar-denominated
institutional leveraged loans. The LLI is the only
domestic leveraged loan index that utilizes real-time
market weightings, spreads and interest payments.
** 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.
The Fund operated as a closed-end investment company with
monthly repurchase offers until October 4, 2006, whereupon
it converted to an open-end investment company.
Information in the graph and table reflects performance of
the Fund as a closed-end investment company through
October 3, 2006, and the Fund may have performed
differently if it were an open-end investment company
prior to that date.
For the 12 month period ended December 31, 2019, the AIG
Senior Floating Rate Class C returned 6.08% compared to
8.64% for the S&P/LSTA Leveraged Loan Index and 8.72% for
the Bloomberg Barclays U.S. Aggregate Bond Index. (The
performance data and graph do not reflect the deduction of
taxes that a shareholder would pay on fund distributions
or the redemption of fund shares.)
--------
Performance data quoted represents past performance and is no guarantee of
future results. Maximum Sales Charge: Class A: 3.75%; Contingent Deferred Sales
Charge (CDSC): Class C: 1.00% CDSC. The fund's daily net asset values are not
guaranteed and shares are not insured by the FDIC, the Federal Reserve Board or
any other agency. The investment return and principal value of an investment
will fluctuate so that an investor's shares, when redeemed, may be higher or
lower than the original cost. Current performance may be higher or lower than
that shown. Performance as of the most recent month end is available at
www.safunds.com
43
[LOGO]
AIG Funds
Harborside 5
185 Hudson Street, Suite 3300
Jersey City, NJ 07311
Directors VOTING PROXIES ON FUND DISCLOSURE OF QUARTERLY
Dr. Judith L. Craven PORTFOLIO SECURITIES PORTFOLIO HOLDINGS
Richard W. Grant A description of the The Fund is required to
Stephen J. Gutman policies and proce-dures file its com-plete
Peter A. Harbeck that the Fund uses to schedule of portfolio
Eileen A. Kamerick determine how to vote holdings with the U.S.
Officers proxies related to Securities and Exchange
John T. Genoy, President securities held in the Commission for the first
and Chief Executive Fund's portfolio, which and third quarters of
Officer is available in the each fiscal year on
James Nichols, Vice Fund's Statement of Form N-PORT. The Fund's
President Additional Information Form N-PORT is available
Sharon French, Executive may be ob-tained without on the U.S. Securities
Vice President charge upon request, by and Exchange Commission's
Timothy Pettee, Vice calling (800) 858-8850. website at
President This in-formation is also http://www.sec.gov.
Christopher C. Joe, available from the EDGAR PROXY VOTING RECORD ON
Chief Compliance database on the U.S. FUND PORTFOLIO SECURITIES
Officer Secu-rities and Exchange Information regarding how
Gregory N. Bressler, Commission's website at the Fund voted proxies
Secretary http://www.sec.gov. relating to securities
Gregory R. Kingston, DELIVERY OF SHAREHOLDER held in the Fund's
Treasurer DOCUMENTS portfolio during the most
Kathleen Fuentes, Chief The Fund has adopted a recent twelve month
Legal Officer and policy that allows it to period ended June 30 is
Assistant Secretary send only one copy of the available, once filed
Matthew J. Hackethal, Fund's prospectus, proxy with the U.S. Securities
Anti-Money Laundering material, annual report and Exchange Commis-sion,
Compliance Officer and semi-annual report without charge, upon
Donna McManus, Vice (the "shareholder request, by calling
President and documents") to (800) 858-8850 or on the
Assistant Treasurer shareholders with U.S. Securities and
Shawn Parry, Vice multiple accounts Exchange Commission's
President and residing at the same website at
Assistant Treasurer "household." This http://www.sec.gov.
Investment Adviser practice is called This report is submitted
SunAmerica Asset householding and reduces solely for the general
Management, LLC Fund expenses, which information of
Harborside 5 benefits you and other shareholders of the Fund.
185 Hudson Street, Suite shareholders. Unless the Distribution of this
3300 Fund receives report to persons other
Jersey City, NJ 07311 instructions to the than shareholders of the
Distributor con-trary, you will only Fund is authorized only
AIG Capital Services, receive one copy of the in connection with a
Inc. shareholder documents. currently effective
Harborside 5 The Fund will continue to prospectus, setting forth
185 Hudson Street, Suite household the details of the Fund,
3300 share-holder documents which must precede or
Jersey City, NJ 07311 indefinitely, until we accompany this report.
Shareholder Servicing are instructed otherwise.
Agent If you do not wish to
AIG Fund Services, Inc. participate in
Harborside 5 house-holding, please
185 Hudson Street, Suite contact Shareholder
3300 Services at (800)
Jersey City, NJ 07311 858-8850 ext. 6010 or
Transfer Agent send a written request
DST Asset Manager with your name, the name
Solutions, Inc. of your fund(s) and your
303 W 11th Street account number(s) to AIG
Kansas City, MO 64105 Funds, P.O. Box 219186,
Custodian Kansas City MO,
State Street Bank and 64121-9186. We will
Trust Company resume individual
One Lincoln St. mailings for your account
Boston, MA 02111 within thirty (30) days
of receipt of your
request.
[GRAPHIC]
Go Paperless!!
Did you know that you have the option to
receive your shareholder reports online?
By choosing this convenient service, you will no longer receive paper copies of
Fund documents such as annual reports, semi-annual reports, prospectuses and
proxy statements in the mail. Instead, you are provided with quick and easy
access to this information via the Internet.
Why Choose Electronic Delivery?
It's Quick -- Fund documents will be received faster than via traditional mail.
It's Convenient -- Elimination of bulky documents from personal files.
It's Cost Effective -- Reduction of your Fund's printing and mailing costs.
To sign up for electronic delivery, follow
these simple steps:
1 Go to www.aig.com/funds
2 Click on the link to "Go Paperless!!"
The email address you provide will be kept strictly confidential. Once your
enrollment has been processed, you will begin receiving email notifications
when anything you receive electronically is available online.
You can return to www.aig.com/funds at any time to change your email
address, edit your preferences or to cancel this service if you choose to
resume physical delivery of your Fund documents.
Please note - this option is only available to accounts opened through the
Funds.
For information on receiving this report online, see inside back cover.
AIG Funds are advised by SunAmerica Asset Management, LLC (SAAMCo) and
distributed by AIG Capital Services, Inc. (ACS), Member FINRA. Harborside
5, 185 Hudson Street, Suite 3300, Jersey City, NJ 07311, 800-858-8850. SAAMCo
and ACS are members of American International Group, Inc. (AIG).
This fund report must be preceded by or accompanied by a prospectus.
Investors should carefully consider a Fund's investment objectives, risks,
charges and expenses before investing. The prospectus, containing this and
other important information, can be obtained from your financial adviser, the
AIG Funds Sales Desk at 800-858-8850, ext. 6003, or at aig.com/funds. Read the
prospectus carefully before investing.
[LOGO]
aig.com/funds
SFANN - 12/19
Item 2. Code of Ethics
The SunAmerica Senior Floating Rate Fund, Inc. (the "registrant") has
adopted a Code of Ethics applicable to its Principal Executive and
Principal Accounting Officers pursuant to Section 406 of the Sarbanes-Oxley
Act of 2002 (the "Code"). During the fiscal year ended December 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
December 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 Directors has determined that Eileen A. Kamerick,
a Director 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
accountant were as follows:
2018 2019
-------- --------
(a) Audit Fees $110,943 $114,272
(b) Audit-Related Fees $ 0 $ 0
(c) Tax Fees $ 14,067 $ 18,833
(d) All Other Fees $ 0 $ 0
Audit Fees include amounts related to the audit of the registrant's annual
financial statements and services normally provided by the principal
accountant in connection with statutory and regulatory filings. Tax Fees
principally include tax compliance, tax advice, tax planning and
preparation of tax returns.
Aggregate fees billed to the investment adviser and Adviser Affiliates (as
defined below in Item 4(e)) that are required to be pre-approved pursuant
to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X for the last two
fiscal years for services rendered by the registrant's principal accountant
were as follows:
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 provides ongoing services to the
registrant for 2018 and 2019 were $119,067 and $18,833, respectively.
(h) Non-audit services rendered to the registrant's investment adviser
and any Adviser Affiliates that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii)
of Rule 2-01 of Regulation S-X were considered by the registrant's
audit committee as to whether they were compatible with maintaining
the principal accountant's independence.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
Included in Item 1 to the Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board of Directors that were
implemented after the registrant last provided disclosure in response to
the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407)
(as required by 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this
Item 10.
Item 11. Controls and Procedures.
(a) An evaluation was performed within 90 days of the filing of this
report, under the supervision and with the participation of the
registrant's management, including the President and Treasurer, of the
effectiveness of the design and operation of the registrant's
disclosure controls and procedures (as defined under Rule 30a-3(c)
under the Investment Company Act of 1940 (17 CFR 270.30a-3(c))). Based
on that evaluation, the registrant's management, including the
President and Treasurer, concluded that the registrant's disclosure
controls and procedures are effective.
(b) There was no change in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940 (17 CFR 270.30a-3(d))) that occurred during the
most recent fiscal half year that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
contro1 over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management
Investment Companies.
Not applicable.
Item 13. Exhibits.
(a) (1) 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 Senior Floating Rate Fund, Inc.
By: /s/ John T. Genoy
------------------------------------
John T. Genoy
President
Date: March 9, 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: March 9, 2020
By: /s/ Gregory R. Kingston
------------------------------------
Gregory R. Kingston
Treasurer
Date: March 9, 2020