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Idea Transcript


FAQ Financial Advisors’ Quarterly May : 2015

Can the Markets Keep

SunAmerica Focused Dividend Strategy Portfolio

Climbing? 5-Star Overall Morningstar Rating™

PAGE 1

(out of 1,125 funds in the Large Value category as of 3/31/15)

PAGE 6

Investors Awaken to the Rising Sun Now May Be Time to Invest in the SunAmerica Japan Fund

1 financial : FAQ professional Financial Advisors’ Quarterly For use only. Not for use with the public.

DJIA

NASDAQ

S&P 500

PAGE 11

A Message from Steve Maginn: President

The Reflation Trade The scepter of Fed tightening suggests that the “reflation” of the U.S. economy, begun by the Fed six years ago, has generally been a success. In preparation for a Fed strategy of gradual tightening, positioning a portion of your clients’ bond portfolios in specialized fixed income asset classes like floating rate loans and high-yield bonds may be of value. Should you agree, these strategies are offered in our Flexible Credit and Strategic Bond Funds.

Uncorrelated Alpha

W

ith the bull market entering its sixth year, U.S. stocks have continued to inch higher. The Dow broke the 18,000 barrier in February, and some analysts are now suggesting the Dow may surpass 20,000 by year-end. We hope they’re right! Bonds also advanced in Q1 as the Barclays U.S. Aggregate Bond Index was up 2%. In all likelihood, Fed tightening is coming, and interest rates have become more volatile in response. We believe the market is attempting to sort out the timing and implications of a party without the QE punch bowl. As both U.S. stocks and bonds make new highs, now may be a good time to once again revisit your clients’ asset allocations. Fine tuning their portfolios to adapt to changing conditions and various interest rate environments may be a key to investor success in the times ahead. The strategy of “Adaptive Diversification” is something we continue to believe is prudent in helping clients manage risk, while also providing the potential for competitive returns.* Five years ago FAQ began publishing a handful of investment themes that we believed might be worthy of your consideration in client portfolio construction. An update on our current themes is as follows.

Return of the Dividend While the name of this theme harkens back to 2009, corporate dividend payouts are once again expected to reach record levels in 2015.† Along with their potential for capital appreciation, dividend-paying stocks have provided one of the more attractive yield opportunities in today’s market. This combination of yield and growth potential is available in three of our funds, including our top-selling Focused Dividend Strategy Portfolio.

For growth potential and risk management, strategists continue to believe it’s important to maintain some portion of client portfolios in alternative investment strategies. Even the strongest bull markets go through occasional corrections and a bear market can follow when least expected. Our Global Trends Fund offers a strategy you may want to consider.

Stock Picker’s Revival With the maturing of the U.S. equity bull market, many professional investors have been gradually shifting equity assets from index products to experienced money managers who have the potential to find “diamonds in the rough.” Our Focused Alpha Funds with expert stock pickers like Tom Marsico and Ron Baron may be worth a closer look.

The Rising Sun Japanese stocks were among the world’s top equity performers in the first quarter, averaging returns of over 10%.†† With the Japanese economy out of its recession and the Abe government continuing to push their version of quantitative easing, more market strategists are calling for increased allocations to this almost forgotten region. Following a nearly 25-year bear market, recent gains may be the early start of a meaningful recovery for the world’s third largest equity market. Our Japan Fund offers an attractive play on this opportunity. We appreciate the confidence you have placed in SunAmerica Funds and look forward to working with you in the future.

Stephen A. Maginn President AIG Financial Distributors

SunAmerica Mutual Funds is a part of American International Group, Inc., one of the largest life insurance organizations in the United States with total assets of $515 billion as of December 31, 2014.

* Diversification does not guarantee gains or protect against losses. FactSet Earnings Insight, April 17, 2015. †† Represented by the Advisors’ MSCI Japan Index. FAQ Financial Quarterly †

2 :

For financial professional use only. Not for use with the public.

Dow 20,000? What’s next for U.S. equities

T

he first quarter of 2015 was one for the record books in domestic equity markets. Both the DJIA and S&P 500 set new record highs and the NASDAQ crossed 5,000 for the first time since the apex of the tech boom in 2000. While market pundits debated over the potential impact of the eventual rise in short-term interest rates, the slowdown in earnings growth from energy and the stronger U.S. dollar, indices continued to edge higher.

Strong economic fundamentals have helped support the bull market as steady growth in employment, housing and capital expenditures underscored the strength and sustainability of the economy. Earnings remain the key to the sustainability of the market advance. A close examination of first quarter 2015 results, excluding energy and the impact of the recent climb in the U.S. dollar, point to another potentially record year. CONTINUED ON PAGE 2

For financial professional use only. Not for use with the public.

May 2015 : 1

What’s Next for U.S. Equities :

CONTINUED FROM PAGE 1

All-Time Record Earnings? Earnings growth has slowed in the first quarter, and once all Q1 earnings are released, there is the possibility that we’ll see the first negative earnings quarter since the recovery began. Yet when these numbers are analyzed across sectors, the negative results are very concentrated in two key areas: the energy sector and multinational companies with a lot of currency exposure. In a recent analysis of earnings expectations, 70% of companies cite the effects of a stronger dollar as the key reason for any potential earnings shortfalls in the short term.1 Conversely, according to FactSet’s 1Q earnings forecasts, companies that have greater than 50% of sales in the U.S. (excluding those in the energy sector) are anticipating strong earnings growth and early results have been even higher than expected. In fact, sectors like financials (+13%) and healthcare (+22%) are projected to lead the way with strong 1Q earnings growth. 2 Despite the quick drop in oil prices and the sudden rise in the U.S. dollar, earnings are expected to break records in 2015 and 2016.3 Strong employment and income levels have helped lift consumer sentiment to its highest level since 2007, which bodes well for consumption and is a key driver of growth.4 Looking at valuation levels, the current forward P/E ratio of 17 is now above the 5-year average and very close to its 15-year average. While we are closely watching valuation levels, it is

interesting to note that the current P/E is still around 33% lower than the levels of the late 1990s, the last extended bull market.

Strong Economic Fundamentals Support the Maturing Bull Market The U.S. economy continues to advance, with average GDP growth projected at around 3% for 2015, which is higher than the 2.6% reported for 2014.5 Companies are hiring, with payroll growth averaging around 260,000 jobs per month over the last year. Unemployment is still holding at 5.5%, and over 11 million jobs have been created since the recovery began.6 Individuals have also improved their balance sheets, with consumer debt as a percentage of household income dropping very close to its lowest level since 1980 (see chart on next page). Personal income and consumption both increased a healthy 4% in 2014 and strong consumer sentiment should help the economy in 2015.7 Companies have also been investing, as capital expenditures jumped 9% in the third quarter of 2014 and nearly 5% in the fourth quarter.8 While it is certainly prudent to monitor valuation and risk levels, the current market is supported by strong consumer and corporate balance sheets, as well as solid economic fundamentals. Even if the impact of weak exports drives first quarter economic growth below expectations, forecasts call for continued improvement as we move through the year.

Record Earnings Projections for both 2015 and 2016 Calendar Year Bottom-Up EPS Actuals & Estimates for the S&P 500 Index 140 120 100 80 60 40 20 0

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Source: FactSet as of April 17, 2015 for the companies in the S&P 500.

2 : FAQ Financial Cover Story Advisors’ Quarterly

For financial professional use only. Not for use with the public.

15 Improving Consumer Balance Sheets Household Debt as a Percentage of Disposable Income 13.5% 13.0% 12.5%

12

12.0% 11.5% 11.0% 10.5% 10.0% 9.5% 1980

9

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

Source: Federal Reserve Economic Research, Board of Governors; Household Debt Service Payments as a Percent of Disposable Personal Income.

The End of Zero

Adaptive Diversification Can Help Manage Risk

Concerns that the Federal Reserve may immediately increase short-term interest rates subsided during the quarter; yet the reality that rates will rise seems to be built into market expectations. While the change in policy will certainly bring some short-term volatility to the markets, it seems unlikely that the Fed will be fast and furious with the rate increases given the potential impact on both equity and fixed income assets. Most forecasts call for rates to be gradually increased in the second half of 2015 and the median estimate of the Fed Governors is for a Fed funds rate of 0.625% by the end of the year.9 Regardless of precisely when rates begin to rise, now may be a prudent time to examine and add asset classes that have the potential to outperform in a flat-to-rising rate environment.

With returns from traditional asset classes potentially slowing relative to recent years, adaptive diversification, defined as a strategy that seeks to construct efficient and broadly diversified portfolios that can adapt to challenging markets, can both add value and help clients better manage risk. Given the prospect of rising interest rates, we could see less concentrated returns across both equity and fixed income asset classes. In this environment, stock pickers could really shine, as well as non-traditional income-producing investments, including global dividend stocks and lower duration fixed income classes.

FactSet Earnings Insight, April 10, 2015. FactSet Earnings Insight, May 8, 2015. 3 FactSet Earnings Insight, April 17, 2015. 4 University of Michigan Surveys of Consumers, April 2015. 5 Kathleen Madigan, “WSJ Survey: Economists See 2015 GDP Growth at 3%,” Wall Street Journal, January 15, 2015. 6 Bureau of Labor Statistics, Employment Situation and Employment, Hours, and Earnings from the Current Employment Statistics survey (National), April 5, 2015; Payroll growth: Total Non-Farm Payrolls, Monthly Change. 7 Bureau of Economic Analysis, Personal Income and Outlays, February 2015, March 30, 2015. 8 Bureau of Economic Analysis, National Income and Product Accounts Gross Domestic Product: Fourth Quarter and Annual 2014, March 27, 2015. 9 Paul R. La Monica, “Thank You, Janet Yellen! Stocks Surge after Fed,” CNN Money, March 18, 2015. 1 2

For financial professional use only. Not for use with the public.

May 2015 : 3

2015 Cyclical Themes 1 : Return of the Dividend Dividend-paying stocks have been a powerful, consistent force throughout the global economic recovery. Over the last five years, dividend payouts have increased significantly; however, they are forecasted to slow down from the doubledigit growth rates of recent years.10 During the first quarter of 2015, dividends increased by $12.6 billion, down from the $17.9 billion of the prior quarter, but still a very healthy increase. Much of the slowdown was attributed to the energy and/or materials sectors, as lower oil and commodity prices impacted cash flows. Yet, Standard & Poor’s expects another record year for dividends in 2015.11 Overseas, dividends may also be attractive, with generally higher yields from dividend payers and relatively lower P/E ratios compared to companies in the S&P 500.12

Cyclical Strategy: Consider growth and income opportunities in domestic and foreign dividend-paying stocks Focused Dividend Strategy Portfolio

A: FDSAX B: FDSBX C: FDSTX

2 : Stock Picker’s Revival During the last several years of protracted accommodative monetary policy, it was difficult for many active managers to beat their benchmark indices. Only the top 20% of active U.S. equity managers outpaced their benchmark, adding an average 1.8% in additional returns in 2014. While this certainly underscores the importance of selecting talented stock pickers, the need to find good money managers could intensify further in 2015. There have been studies correlating the effectiveness of active management with the rise and fall of interest rates. Rising rates may allow active managers to shine through their stock picking, while falling rates tend to support an overall market advance—a “rising tide lifts all boats” scenario. One study measuring active fund excess returns from 1962 to present showed that, on average, active managers were able to add significantly more value during years when interest rates increased, outpacing the index by 1.5%. The converse was also true: in years where rates fell, the average active manager typically trailed indexes by 2%.13 With interest rates at all-time lows, we could see an increase in the value of active management and experienced stock pickers.

W: FDSWX

International Dividend Strategy Fund

A: SIEAX

Select Dividend Growth Portfolio

A: SDVAX

C: SIETX W: SIEWX C: SDVCX W: SDVWX

Cyclical Strategy: Choose proven stock pickers in changing interest rate environments Focused Alpha Growth Fund

A: FOCAX C: FOCCX W: FOCWX

Focused Alpha Large-Cap Fund

A: SFLAX C: SFLCX W: SFLWX

3 : Uncorrelated Alpha Overall asset flows continue to move into alternatives in 2015. As institutions and investors seek alpha and risk management strategies uncorrelated to traditional bond and stock markets, allocations towards alternative assets have been on the rise. According to Preqin, a leading source of data and intelligence on alternative investments, the alternative industry reached $6.9 trillion at the end of 2014, increasing by $648 billion over the last year.14

4 : FAQ Cyclical Trends Update

For financial professional use only. Not for use with the public.

While some alternatives have underperformed relative to equity indices for much of the recovery, this trend has somewhat reversed in recent months. For example, managed futures funds were one of the top performing fund categories tracked by Morningstar, up 5.4% in the first quarter and 17.9% over the last 12 months, benefitting from the volatility in both oil prices and currency markets that began in August of 2014. These managed future funds have also garnered significant assets, rising from $1.25 billion in 2008 to nearly $17 billion in 2015.15

A recent McKinsey study cited Japanese leadership in evolving industries such as advanced materials, 3D manufacturing and life sciences as potential catalysts for this productivity push.18 As Japan remains the third largest economy and fourth largest exporter in the world,19 it makes sense to evaluate exposures to Japanese equities as a part of a fully diversified portfolio.

Cyclical Strategy: Benefit from the potential growth of the world’s third-largest economy

Cyclical Strategy: Add alternative investment strategies to help manage risk and increase diversification levels Global Trends Fund

A: SAESX C: SAJCX

A: GTFAX C: GTFCX W: GTFWX

Alternative Strategies Fund

Japan Fund

A: SUNAX C: SUNCX W: SUNWX

4 : The Rising Sun Japan has been one of the top performing markets in 2015, with the MSCI Japan Index posting double-digit gains in the first quarter alone. During March, export-related stocks got a big boost from the currency market, pushing the Japanese market to a 15-year high.16 At the end of the quarter, Japanese equities were priced more attractively than the rest of the world, with lower P/E and price-to-book ratios than the MSCI World Index.17 To help continue the turnaround, the fourth arrow of the Abenomics agenda has been focused on fostering private sector innovation, globalization and improving Japanese productivity.

5 : Reflation Trade After more than six years of near zero short-term interest rates, many investors and market analysts expect the Fed to raise rates sometime this year. According to median estimates of Fed members, the Fed funds rate will be just over 0.6% by year-end.20 In this environment, clients may want to examine more closely fixed income strategies that are less sensitive to interest rate movements and can provide price stability in changing markets. Generally, categories such as high yield bonds, bank loans or other shorter duration securities could be favored if rates start inching upward. These classes could provide key income and growth advantages when rates move to a slowly rising environment.

Cyclical Strategy: Broaden diversification into investments that may be less interest rate sensitive Flexible Credit Fund

A: SHNAX C: SHNCX W: SHNWX

Please see pages 14-16 for risks associated with these Funds. 10 S&P Dow Jones Indices, U.S. Companies Slow Pace of Dividend Net Increases, April 1, 2015. 11 S&P Dow Jones Indices, U.S. Companies Slow Pace of Dividend Net Increases, April 1, 2015. 12 Todd Shriber, “Dividend Achievers in an International ETF,” ETF Trends, April 8, 2015. 13 Sarah Max, “Return of the Stockpickers,” Barron’s, April 1, 2015. 14 Preqin Investor Outlook: Alternative Assets H1 2015. 15 Anna Prior, “Currency, Oil Help Managed-Futures Funds,” Wall Street Journal, April 6, 2015. 16 Lipper Research Series, Fund Flows Insight Report, March 31, 2015. 17 MSCI Japan Index Fact Sheet, March 31, 2015. 18 McKinsey Global Institute, The Future of Japan: Reigniting Productivity and Growth, March 2015. 19 McKinsey Global Institute, The Future of Japan: Reigniting Productivity and Growth, March 2015. 20 Paul R. La Monica, “Thank You, Janet Yellen! Stocks Surge after Fed,” CNN Money, March 18, 2015.

For financial professional use only. Not for use with the public.

Income Explorer Fund

A: IEAAX C: IEACX W: IEAWX

May 2015 : 5

SunAmerica Focused Dividend Strategy Portfolio

Cyclical Theme: Return of the Dividend

Class A: FDSAX Class B: FDSBX Class C: FDSTX Class W: FDSWX Tim Pettee and Team

SunAmerica Asset Management

Leading the Bull The Fund Rewarded Investors with Strong Performance and Top Rankings for Q1 2015

W

ith the markets in the 6th year of a bull run and dividends rising steadily since 2009, the SunAmerica Focused Dividend Strategy Portfolio posted solid gains and a 5-Star Overall Morningstar Ranking out of 1,125 funds in the Large Value category as of March 31, 2015 (see next page). Contributing to this strong performance was the Fund’s annual reconstitution in late 2014, which had a positive impact on both short- and longterm returns. By replacing underperforming and over-appreciated holdings with high-yielding, attractively valued stocks, the Fund surged in 2015, generating annualized returns ranked in the Top 4% of the Morningstar Large Value category for the 1-year period and the Top 5% for the 3-year period. Longer term, the Fund had annualized returns of more than 10%, ranking it in the Top 1% of all large-cap value funds for the 5- and 10-year periods ending March 31, 2015. Past performance is not a guarantee of future results.

FDSAX Fund Facts: ➤

Performance Potential: The Fund invests in a concentrated portfolio of 30 dividend-paying stocks, which provide a unique combination of income and growth potential not found in many other types of investments.



Rules-Based Process: Quantitative screens are used to select the 10 highest-yielding stocks from the Dow Jones Industrial Average, plus the top 20 stocks from the Russell 1000 based on profitability, yield and valuation.



Annual Reconstitution: The Fund is rebalanced once a year to help minimize turnover and potentially enhance tax efficiency.

Please see pages 14-17 for important information and risks about the specific Funds discussed in this publication.

FDSAX Outperformed the Large Value Category Across All Periods Annualized returns as of March 31, 2015 17.64%

16.10%

14.42% 12.37%

12.25% 10.56%

7.86%

6.72%

2.13% 0.18% YTD

1-Year

3-Year

■ Focused Dividend Strategy Portfolio (FDSAX)

5-Year

10-Year

■ Morningstar Large Value Category

Performance data quoted represents past performance and is not a guarantee of future results. Indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio. The data assumes reinvestment of all distributions at net asset value (NAV). Class A gross operating expenses: 1.07%. Class A maximum sales charge: 5.75%. The Fund’s daily NAV is 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. See ad on facing page for standardized returns.

6 : FAQ Featured Financial Funds Advisors’ Quarterly

For financial professional use only. Not for use with the public.

Class A: FDSAX Class B: FDSBX Class C: FDSTX Class W: FDSWX

SunAmerica Focused Dividend Strategy Portfolio

A Powerful Combination of Stars and Performance 5-Star Overall Morningstar Rating™ (out of 1,125 funds in the Large Value category as of 3/31/15) FDSAX Was the ONLY FUND RANKED IN THE TOP 1% of the Morningstar Large Value Category Across the 5- and 10-Year Periods As of 3/31/15

3-Year

5-Year

10-Year

4

5

1

1

53 out of 1,305

53 out of 1,125

6 out of 991

4 out of 689

FDSAX Return at Net Asset Value

12.37%

17.64%

16.10%

10.56%

FDSAX Return with Max. Sales Charge

5.92%

15.33%

14.74%

9.91%

Morningstar Category Return (Peers)

7.86%

14.42%

12.25%

6.72%

S&P 500 Index (Benchmark)

12.73%

16.11%

14.47%

8.01%

Morningstar Rating

Ranking % Ranking #

1-Year N/A*

Contact your SunAmerica Wholesaler, call 800-232-1230 or visit www.safunds.com for more information. *Ratings not calculated for this time period. Focused funds are less diversified than typical mutual funds; therefore the performance of each holding in a focused fund has a greater impact upon the overall portfolio, which increases risk. The Fund employs a Disciplined Strategy and will not deviate from its strategy (except to the extent necessary to comply with federal tax laws or other applicable laws). If the Fund is committed to a strategy that is unsuccessful, the Fund will not meet its investment goal. Because the Fund will not use certain techniques available to other mutual funds to reduce stock market exposure, the Fund may be more susceptible to general market declines than other mutual funds. For the periods ending March 31, 2015, the Focused Dividend Strategy Portfolio’s Morningstar overall, 5- and 10-year ratings are 5 stars and its 3-year rating is 3 stars. Overall rating is based out of 1,125 funds in the Large Value category. The Fund ranked #53 out of 1,305 funds for 1 year, #53 out of 1,125 funds for 3 years, #6 out of 991 funds for 5 years and #4 out of 689 funds for 10 years. Morningstar is an independent investment research firm that rates the performance of mutual funds based on return and risk. For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variations in a fund’s monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics. Morningstar Rating is for the A share class only; other classes may have different performance characteristics. Past performance is not a guarantee of future results. © 2015 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

For financial professional use only. Not for use with the public.

December May Q4 2014 2013 2015 : 7

SunAmerica Flexible Credit Fund

Cyclical Theme: The Reflation Trade

Class A: SHNAX Class C: SHNCX David L. Albrycht and Team

Class W: SHNWX

Newfleet Asset Management, LLC

A Dynamic Duo The Fund Merges High-Yield Bonds and Floating Rate Loans to Help Deliver Income and Growth Opportunities

W

ith 10-year Treasury yields near historic lows below 2%, many investors are looking beyond traditional bonds to find higher yields. Floating rate loans and high-yield bonds are two nonconventional fixed income investments that have the potential to generate strong income and returns in changing rate environments. Since 2008, they have been two of the best performing asset classes in the global markets with average annual returns of 16% for highyield bonds and 12% for floating rate loans. Clients searching for higher yields can gain exposure to both floating rate loans and high-yield bonds in one convenient fund by investing in the SunAmerica Flexible Credit Fund. Managed by an award-winning team of

investment professionals led by David L. Albrycht of Newfleet Asset Management, LLC, the Fund has the flexibility to allocate 0% to 100% of its portfolio to either floating rate loans or highyield bonds. Allocation adjustments can be made at any time in response to interest rate movements, credit quality trends or changing market and economic conditions. This dynamic security selection process has contributed to the Fund’s solid performance and high Morningstar rankings (see next page). Past performance is not a guarantee of future results.

The SunAmerica Flexible Credit Fund Invests in Two of the Best-Performing Asset Classes Since 2008 Returns of Various Asset Classes from January 2009 through March 2015

15.78%

10.88%

11.67%

12.00%

16.65%

12.91%

8.48% 6.32% 4.10%

4.28%

4.59%

MBS

Treasuries

Investment Grade Bonds

-2.72% Commodities

Municipal Investment EM Bonds EM Equities Floating International High-Yield U.S. Equities Bonds Grade Corp. Rate Loans Equities Bonds Bonds

Important Note: This chart does not reflect the performance of the SunAmerica Flexible Credit Fund. Past performance is not a guarantee of future results. Asset classes are represented by the following indices: Commodities (Bloomberg Commodity), Treasuries (Barclays U.S. Treasury 7-10 Year), Mortgage Backed Securities (BofA Merrill Lynch Mortgage Master), Investment Grade Bonds (Citigroup Broad Investment Grade), Municipal Bonds (Barclays Municipal Bond), Investment Grade Corporate Bonds (Barclays U.S. Corporate Investment Grade), Emerging Market Bonds (JP Morgan EMBI Global Diversified), Emerging Market Equities (MSCI EM), Floating Rate Loans (S&P/ LSTA US Leveraged Loan), International Equities (MSCI ACWI), U.S. Equities (S&P 500) and High-Yield Bonds (Barclays U.S. Corporate High Yield). Source: Morningstar Direct, 2015. Investments have different objectives and are subject to different risk and tax considerations. Individuals cannot invest directly in an index. Please see pages 14-17 for index definitions and more information on the risks of investing.

8 : FAQ Featured Funds

For financial professional use only. Not for use with the public.

4 Stars. 2 Asset Classes 1 Award-Winning Manager

3 Key Reasons to Invest in the Fund 1. High Income Potential With yields in the 5-7% range as of March 31, 2015, floating rate loans and high-yield bonds have generated a high level of current income.21 2. Opportunity for Capital Appreciation Both floating rate loans and high-yield bonds have the potential to outperform in changing interest rate and economic environments. 3. Potential Hedge Against Rising Rates With negative correlations of -0.34 to U.S. Treasuries for floating rate loans and -0.17 for high-yield bonds, these asset classes may be effective diversifiers to a traditional fixed income portfolio.22

SunAmerica Flexible Credit Fund Class A: SHNAX

Class C: SHNCX

Class W: SHNWX

4-Star Overall Morningstar Rating™

SHNAX Fund Facts: ➤

Dynamic Allocation: Exposure to each asset class can range from 0-100% to take advantage of income and return opportunities.



Award-Winning Experience: Newfleet’s portfolio management team has been recognized as a 20-time Lipper award winner.23



Flexible 2-in-1 Approach: Clients gain access to both floating rate loans and high-yield bonds in a single convenient fund.

Please see pages 14-17 for important information and risks about the specific Funds discussed in this publication.

(out of 224 funds in the Nontraditional Bond category as of March 31, 2015)

Managed by

Newfleet Asset Management Winner of 20 Lipper awards*

Call 800-232-1230 for details. *See footnote 23 in accompanying article for details.

Effective October 1, 2014, the name of the SunAmerica High Yield Bond Fund was changed to the SunAmerica Flexible Credit Fund and certain corresponding changes were made to the Fund’s investment strategy and techniques. Prior to this date, the Fund was managed as a high-yield bond fund. 21 Source: Barclays and S&P/LSTA, 2015. 22 Based on correlations to U.S. Treasuries from January 2001 through March 2015: -0.17 for High-Yield Bonds and -0.34 for Floating Rate Loans. Treasuries are represented by the Barclays U.S. Treasury 7-10 Year Index. Individuals may not invest directly in an index. Correlation is a statistical measure of how two securities move in relation to each other. This measure ranges from -1 to +1, where -1 indicates perfect negative correlation and +1 indicates perfect positive correlation. 23 Newfleet’s investment team manages the Virtus Multi-Sector Short Term Bond Fund, the Virtus Multi-Sector Intermediate Bond Fund, the Virtus Multi-Sector Fixed Income Series and the DTF Tax-Free Income, Inc. Fund. Lipper recognized the Virtus (formerly Phoenix) Multi-Sector Short Term Bond Fund with 14 Performance Achievement Certificates (PACs) and 3 Fund Awards in the Lipper Short/Intermediate Investment Grade Debt Category from 1996 through 2012. The Virtus (formerly Phoenix) Multi-Sector Intermediate Bond Fund received a PAC in the Lipper General Bond Funds Category in 1994. The Virtus (formerly Phoenix Edge Series Fund) Multi-Sector Fixed Income Series earned a PAC in the Lipper Corporate Debt Funds BBB-Rated Category in 1999. The DTF Tax-Free Income, Inc. Fund received a PAC in the Lipper Closed-End Bond Funds General Muni Debt Fund Category in 2008.

For financial professional use only. Not for use with the public.

For the periods ending March 31, 2015, the SunAmerica Flexible Credit Fund’s Morningstar overall, 3- and 5-year ratings are 4 stars and its 10-year rating is 3 stars. Overall rating is based out of 224 funds in the Nontraditional Bond category. The Fund ranked #163 out of 378 funds for 1 year, #5 out of 224 funds for 3 years, #2 out of 117 funds for 5 years and #9 out of 41 funds for 10 years. Morningstar is an independent investment research firm that rates the performance of mutual funds based on return and risk. For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variations in a fund’s monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics. Morningstar Rating is for the A share class only; other classes may have different performance characteristics. Past performance is not a guarantee of future results. © 2015 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Q4 2013 : 9

Cyclical Theme: The Reflation Trade

SunAmerica Income Explorer Fund Class A: IEAAX Class C: IEACX Class W: IEAWX Tim Pettee, SunAmerica Asset Management Doug Bond & William Scapell, Cohen & Steers

Raising the Bar on Income The Fund Combines 3 Non-Traditional Strategies to Help Generate Higher Income Potential

W

ith a yield of 1.94% on March 31, 2015, 10-year U.S. Treasuries have moved nearly 50 basis points off their record lows from 2012; however, after adjusting for taxes and inflation, real yields are in negative territory or near zero, making it difficult for many fixed income investors to generate the income they need. Clients looking for a potentially higher, more attractive level of income may want to consider the SunAmerica Income Explorer Fund. The Fund blends three nonconventional investment strategies—global dividend stocks, closed-end funds and preferred securities—to deliver high income potential, while also providing capital appreciation opportunities. As the chart below shows, these strategies have provided a significant yield advantage over traditional fixed income investments such as corporate bonds and Treasuries.24 For example, with a current yield of nearly 8% as of March 31, 2015, closed-end funds have generated approximately 4 times the yield of 10-year U.S. Treasuries.

IEAAX Fund Facts: ➤

Attractive income potential: Clients have the opportunity to receive monthly income distributions that may outpace traditional fixedincome categories.



Opportunity for capital appreciation through equity and fixed income asset classes that have the potential to outperform their benchmarks in changing economic environments.



Portfolio diversification: The combination of closed-end funds, preferred securities and global dividend stocks can help enhance the diversification of a traditional fixed income portfolio.



Multiple money managers: The Fund is co-managed by a team of experienced professionals from Cohen & Steers (closed-end funds and preferred securities sleeves) and SunAmerica Asset Management (global dividend stocks sleeve).

Please see pages 14-17 for important information and risks about the specific Funds discussed in this publication.

The Potential Yield Advantage of Closed-End Funds, Preferred Securities and Global Dividend Stocks Yield to Maturity of Various Asset Classes as of March 31, 2015 7.9%

The SunAmerica Income Explorer Fund actively manages exposures across these 3 strategies to help generate a high level of current income.

5.4% 3.9%

3.0%

Closed-End Funds

Preferred Securities

High-Yield Global Corporate Bonds Stocks

2.4% Global Stocks

1.9% Treasuries

Note: The above chart is for illustrative purposes only and does not reflect the performance of the SunAmerica Income Explorer Fund, the Fund’s individual sleeves or any other specific investment. Past performance is not a guarantee of future results. Please see pages 16-17 for index definitions. Yield is the annualized amount of income divided by price. It is calculated as of March 31, 2015. Yields may vary depending on market and economic conditions. Investments shown in this chart are represented by the following: Closed-End Funds (Morningstar All Taxable Fixed Income Index), Preferred Securities (BofA Merrill Lynch Fixed Rate Preferred Securities Index), Global Stocks (MSCI ACWI Index), High-Yield Global Stocks (MSCI ACWI High Dividend Yield Index), Corporate Bonds (BofA Merrill Lynch Corporate Master Index), and Treasuries (10-Year U.S. Treasury Bonds as reported by the U.S. Federal Reserve). 24

Investments have different objectives and are subject to different tax treatments. Bonds are sensitive to interest rate changes and credit and default risk. Their value may fluctuate depending on changes and trends in the market. Corporate bonds are bonds issued by corporations. Income from corporate bonds may be taxed as ordinary income or capital gains. Treasury securities are guaranteed by the U.S. government as to the timely payment of principal and interest, and if held to maturity, offer a fixed rate of return and fixed principal value. Income from U.S. Treasuries is exempt from state and local income tax, but subject to federal income tax.

10 : FAQ Featured Financial Funds Advisors’ Quarterly

For financial professional use only. Not for use with the public.

SunAmerica Japan Fund

Cyclical Theme: The Rising Sun

Class A: SAESX Class C: SAJCX Jun Oh

Wellington Management Company LLP

Investors Awaken to the Rising Sun Now May Be a Good Time to Add Japanese Exposure to Client Portfolios

J

apanese equity markets performed well for the first quarter of 2015. With returns over 10% as of March 31, 2015, the MSCI Japan Index outpaced other international markets by a significant margin (see graph below). On April 22, 2015, the Nikkei 225 closed above 20,000 for the first time in 15 years, buoyed by Prime Minister Shinzo Abe’s financial stimulus package, a weakening yen, strong exports and increased tourism.25 The solid returns and renewed consumer optimism are signs that Japan may finally be breaking out of two decades of stagnation and underperformance.

Japan Led Global Equity Markets with Double-Digit Returns for the 1-Year Period Total Returns for Periods Ended March 31, 2015 14%

Given strong corporate earnings and a continued government focus on quantitative easing, the Nikkei 225 is expected to rise to 21,000 by the end of December, with some analysts seeing a high of 25,000, an increase of 25% from the current level.26 Clients looking to take advantage of this upside potential, while also increasing their international exposure, may want to consider the SunAmerica Japan Fund. It seeks capital appreciation by investing in fundamentally strong Japanese companies (Japanese issuers and other investments that are tied economically to Japan) that are believed to be mispriced by the marketplace.

SAESX Fund Facts: ➤

Growth potential: Clients have the opportunity to participate in the capital appreciation potential of profitable Japanese companies that may be overlooked by the market.



Contrarian approach: The Fund seeks to buy undervalued stocks when markets overreact and sentiment turns negative, and sell high-priced stocks when company news and sentiment become overly positive.



Expert management team: Wellington Management Company offers the local market knowledge, experience and resources of a Japanese equity team that works on the ground in Asia.

12% 10% 8% 6% 4% 2%

Please see pages 14-17 for important information and risks about the specific Funds discussed in this publication.

0% -2% -4% -6%

1-Month

3-Month

1-Year

■ MSCI Japan ■ MSCI Europe ■ MSCI Emerging Markets ■ MSCI Pacific ex Japan ■ MSCI All Country World Index (ACWI) Note: This chart does not reflect the performance of the SunAmerica Japan Fund or any other specific investment. Past performance is not a guarantee of future results. Indices are unmanaged and not available for direct investment. Please see pages 14-17 for index definitions and more information on the risks of investing in these markets. 25 26

Kosaku Narioka, “In Japan, the Chips Are Up as Nikkei Surges Past 2000,” Wall Street Journal, April 22, 2015. Ayai Tomisawa, “Japan Shares to Gain 8 Percent by Year-End on Better Earnings: Reuters Poll,” Reuters, March 31, 2015.

For financial professional use only. Not for use with the public.

May 2015 : 11

SunAmerica Small-Cap Fund

Small-Cap Investing

Class A: SASAX Class C: SASCX Class W: SASWX Timothy Campion and Team, SunAmerica Asset Management Michael J. Skillman & Robert L. Fitzpatrick, Cadence Capital Management

Think Big. Go Small. Combine Active Micro-Cap Stocks with a Small-Cap Index Strategy for Added Growth Potential

A

fter a sluggish start to 2015, small- and micro-cap stocks as represented by the Russell 2000 and Microcap Indices have gained momentum, generating returns of 3-4% for the quarter versus returns of 1.6% for the large-cap Russell 1000 Index. Since the start of the current bull run in March 2009, small-cap stocks have outgained large-cap stocks by approximately 2% (25.0% versus 23.1%), while micro-cap growth stocks have performed even better, averaging returns of 26.5%% (see graph below). Clients looking to add more growth potential to their portfolio should consider the SunAmerica Small-Cap Fund. The Fund seeks long-term growth of capital by strategically allocating assets between a small-cap index strategy and an actively managed micro-cap growth strategy.

Small and Micro-Caps Have Outperformed Large Caps During the Current Bull Market Average Annual Returns (3/09/2009–3/31/2015) 26.54%

25.04%

25.41%

3 Key Reasons to Invest in the Fund 1. A complementary blend of active and index investing: The Fund’s small-cap index strategy tracks the performance of the Russell 2000 Index, while the microcap growth strategy is actively managed to seek emerging companies that have high growth potential. 2. Growth opportunities from small-cap investing: Small-cap stocks have historically generated strong returns in times of economic recovery or slowdown. For example, from 1979 through 2013, the U.S. economy experienced 18 years of slow growth. In 12 of those years, small-cap stocks outperformed larger companies by an annualized excess return of 8%.27 3. Enhanced return potential of micro-cap growth stocks: Since the start of the current bull market (3/9/093/31/15), micro-cap growth stocks as represented by the Russell Microcap Growth Index have generated average annual returns of 26.54%, compared to a return of 23.24% for the broader market (Russell 3000).28 Past performance is not a guarantee of future results.

SASAX Fund Facts: ➤

Performance potential: The combination of a small-cap index strategy and an actively managed micro-cap strategy can help enhance returns.



Balanced portfolio: The Fund generally allocates 40-60% of its assets between each strategy.



Management expertise: Investors may benefit from the experience, knowledge and resources of Cadence Capital Management (the manager of the active micro-cap growth strategy) and SunAmerica Asset Management (the manager of the small-cap index strategy).

23.10%

Large-Cap Stocks

Small-Cap Stocks

Micro-Cap Stocks

Micro-Cap Growth Stocks

Note: This chart does not reflect the performance of the SunAmerica Small-Cap Fund or any other specific investment. Past performance is not a guarantee of future results. Asset classes are represented by the following indices: large-cap stocks (Russell 1000), small-cap stocks (Russell 2000), micro-cap stocks (Russell Microcap) and micro-cap growth stocks (Russell Microcap Growth). Indices are unmanaged and not available for direct investment. Please see pages 14-17 for more information on the risks of investing in these asset classes.

27 28

Please see pages 14-17 for important information and risks about the specific Funds discussed in this publication.

Russell Investments, The Russell 2000 Index: Small Cap Opportunities in a Slow-Growth Economic Environment, December 2013. Russell Indices, March 31, 2015.

12 : FAQ Featured Market Outlook Funds

For financial professional use only. Not for use with the public.

SOCIAL SECURITY SAVVY Help Clients Make Smart Decisions About Their Retirement Income Deciding when to begin Social Security benefits could mean the difference between clients getting 132% of their benefits or just 70%. That’s why we’ve developed Social Security Savvy, a powerful business-building program designed to help clients:

• Understand their Social Security filing strategies • Generate the highest possible income for their particular situation • Develop a comprehensive income strategy that integrates Social Security benefits with other sources of retirement income

Take Advantage of Our State-of-the Art Online Calculator

SocialSecurityEstimator.com

This powerful tool makes it easy for you to help clients compare their filing options and determine a strategy that makes the most sense for their situation.

Build Your Retirement Business and Help Clients Become More SOCIAL SECURITY SAVVY! For details or to order materials, please contact your SunAmerica Wholesaler or call our Sales Desk at 800-232-1230.

For financial professional use only. Not for use with the public.

May 2015 : 13

Funds-at-a-Glance Disclosure

Stock Picker’s Revival

Important information about fund performance: Performance data quoted represents past performance and is not a guarantee of future results. Assumes reinvestment of all distributions at net asset value. The Maximum Sales Charge (MSC) returns take into account the maximum initial sales charges, which are listed on page 18. Daily net asset value is 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.

Dollar cost averaging does not guarantee profits or prevent losses in a declining market. This strategy requires regular investment regardless of fluctuating prices. Potential investors should consider their financial ability to continue purchases through periods of low price levels. Neither SunAmerica, its affiliates, nor their licensed sales professionals provide tax advice. Clients should consult with their tax professional for advice concerning their particular situation. PineBridge Investments, Wellington Management, Pelagos Capital, Baron Capital, BlackRock Asset Management, Marsico Capital Management, Cadence Capital Management, Cohen & Steers and Newfleet Asset Management are independent and unaffiliated investment sub-advisers to SunAmerica. SunAmerica Mutual Funds is a member of the American International Group, Inc. (AIG) family of financial services companies.

Additional Information on Net Operating Fund Expenses (listed under each Fund on the following pages): Figures stated for the International Dividend Strategy Fund, Strategic Value Portfolio, SunAmerica Japan Fund, U.S. Government Securities Fund, Focused Alpha Growth Fund, Focused Alpha Large-Cap Fund, Global Trends Fund, and Alternative Strategies Fund include contractual fee waiver and/or expense reimbursement/recoupment. This fee waiver and expense reimbursement is pursuant to an Expense Limitation Agreement and will continue in effect indefinitely, unless terminated by the Board of Trustees, including a majority of the Independent Trustees. Any waivers or reimbursements made by SunAmerica are subject to recoupment from the Fund within two years after the occurrence of the waivers and/or reimbursements, provided that the Fund is able to effect such payment to SunAmerica and remain in compliance with the expense caps in effect at the time the waivers and/or reimbursements occurred. Further, the Global Trends Fund and Alternative Strategies Fund also invest in wholly-owned subsidiaries organized under the laws of the Cayman Islands. SunAmerica has contractually agreed to waive the management fee it receives from the Fund in an amount equal to the management fee paid to SunAmerica by the subsidiaries. This waiver may not be terminated by SunAmerica and will remain in effect for as long as SunAmerica’s contracts with the subsidiaries are in place. Figures stated for the Flexible Credit, Senior Floating Rate and Strategic Bond Funds are after contractual waiver of fees and/or reimbursement of expenses pursuant to an Expense Limitation Agreement, which will continue indefinitely subject to termination by the Board, including a majority of the Independent Trustees. Figures stated for the Focused Balanced Strategy and Focused MultiAsset Strategy reflect voluntary waiver of fees and/or reimbursement of expenses which may be terminated at any time. Additionally, figures stated for the SunAmerica Japan Fund, Alternative Strategies Fund, Senior Floating Rate Fund, Focused Balanced Strategy and Focused Multi-Asset Strategy reflect the net expense ratio, which includes the contractual expense cap and other management fee waivers, as more fully described in the Funds’ prospectuses and it also reflects any acquired fund fees and expenses (“AFFEs”). AFFEs are not subject to the contractual expense cap, which is why the net expense ratio may exceed the contractual expense cap.

Information on SunAmerica Fixed-Income Funds

Notes on Fund Information (listed on the following pages) Mutual funds are subject to risk including stock market and interest rate risk. Certain funds are subject to additional and heightened risk as detailed in the fund’s prospectus including risks associated with specific asset classes, concentration of portfolio holdings, investments in international companies, commodities, futures, currencies and/or the use of hedge fund strategies. Diversification and asset allocation do not guarantee a profit, nor do they insure against market loss.

14 : FAQ Funds-at-a-Glance

(Senior Floating Rate, U.S. Government Securities, Flexible Credit and Strategic Bond Funds): General Risk Information Interest rates and bond prices typically move inversely to each other; therefore, as with any bond fund, the value of a client’s investment may go up or down in response to changes in interest rates. Notes on the U.S. Government Securities Fund The U.S. government guarantee applies only to the underlying securities of the U.S. Government Securities Fund’s portfolio and not to the Fund shares. Mortgage-backed securities entail the risk that the underlying principal may be “prepaid” at any time. Prepayments may increase during a period of falling interest rates. As a result of prepayments, a fund may be required to reinvest its assets in securities with lower interest rates. Notes on the Senior Floating Rate Fund and Flexible Credit Fund Senior floating rate funds are not money market funds; their NAVs will fluctuate and may lose value. Investment in these loans involves certain risks, including, among others, risks of nonpayment of principal and interest; collateral impairment; non-diversification and borrower industry concentration; and lack of full liquidity. Investments in non-investment-grade debt securities (“highyield” or “junk” bonds) tend to have lower interest rate risk but may be subject to greater market fluctuations and risk of default or loss of income and principal than securities in higher rating categories. High-yield debt instruments carry a greater default risk, may be more volatile, less liquid, more difficult to value and more susceptible to adverse economic conditions or investor perceptions than other debt instruments. Notes on the Flexible Credit Fund Effective October 1, 2014, the name of the SunAmerica High Yield Bond Fund was changed to the SunAmerica Flexible Credit Fund and certain corresponding changes were made to the Fund’s investment strategy and techniques. Prior to this date, the Fund was managed as a high-yield bond fund. Longer term and lower coupon bonds tend to be more sensitive to interest rate changes. Investments in loans and other floating-rate securities reduce interest rate risk. While interest rates on loans adjust periodically, these rates may not correlate to prevailing interest rates during the periods between rate adjustments. The Fund may be subject to a greater risk of rising interest rates than in past years due to the current period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives. Notes on the Strategic Bond Fund Investing internationally involves special risks, such as currency fluctuations, and economic and political instability.

For financial professional use only. Not for use with the public.

Funds-at-a-Glance Disclosure Information on SunAmerica Equity Funds

Information on SunAmerica Asset Allocation Funds

(Focused Dividend Strategy Portfolio, International Dividend Strategy Fund, Strategic Value Portfolio, Focused Alpha Growth Fund, Focused Alpha Large-Cap Fund, SunAmerica Japan Fund, Select Dividend Growth Portfolio and Small-Cap Fund):

The pie charts on page 28 reflect each Focused Asset Allocation Strategy’s approximate targeted asset allocations under normal market conditions, as invested through the underlying Funds and may not reflect the current allocation of the strategies. These allocations will change due to market conditions between periods of rebalancings. The advisor may change these asset allocations from time to time and invest in other funds without notice.

General Risk Information Investments in stocks are subject to risk, including the possible loss of principal. Focused funds are less diversified than typical mutual funds; therefore the performance of each holding in a focused fund has a greater impact upon the overall portfolio, which increases risk. Focused funds are less diversified than typical mutual funds; therefore the performance of each holding in a focused fund has a greater impact upon the overall portfolio, which increases risk. Stocks of small-cap and mid-cap companies are generally more volatile, may have limited liquidity, and may not as readily marketable as those of larger companies. Small and mid-cap companies may have less resources and a greater risk of business failure than do large companies. Stocks of international companies are subject to additional risks including currency fluctuations, economic and political instability, greater market volatility, and limited liquidity. These risks can be greater in the case of emerging country securities. Preferred stocks are subject to interest rate fluctuations as well as credit risk, which is the possibility that an issuer of preferred stock will fail to make its dividend payments. Notes on the Focused Dividend Strategy Portfolio, International Dividend Strategy Fund, Select Dividend Growth Portfolio and the Strategic Value Portfolio The Funds employ a Disciplined Strategy and will not deviate from this strategy (except to the extent necessary to comply with federal tax laws or other applicable laws). If the Funds are committed to a strategy that is unsuccessful, the Funds will not meet their investment goals. Because the Funds will not use certain techniques available to other mutual funds to reduce stock market exposure, they may be more susceptible to general market declines than other mutual funds. Notes on the Japan Fund Under normal circumstances, at least 80% of the Fund’s net assets, plus any borrowings for investment purposes, will be invested in Japanese companies. Because the Fund concentrates its investments in Japan, the Fund’s performance is expected to be closely tied to social, political and economic conditions of that country. As a result, the Fund is likely to be more volatile than more geographically diverse international funds. The Japanese economy faces a number of long-term problems, including massive government debt, the aging and shrinking of the population, an unstable financial sector and low domestic consumption. Japan has experienced natural disasters of varying degrees of severity, and the risks of such phenomena, and damage resulting therefrom, continue to exist. Japan has a growing economic relationship with China and other Southeast Asian countries, and thus Japan’s economy may also be affected by economic, political or social instability in those countries (whether resulting from local or global events). Notes on the Small-Cap Fund Stocks of small-cap and microcap companies are subject to additional risks. Companies with smaller market capitalizations tend to be at early stages of development with limited product lines, market access for products, financial resources, access to new capital, or depth in management. It may be difficult to obtain reliable information and financial data about these companies. Consequently, the securities of smaller companies may not be as readily marketable and may be subject to more abrupt or erratic market movements.

For financial professional use only. Not for use with the public.

Information on SunAmerica Alternative Funds (Global Trends Fund and Alternative Strategies Fund): Notes on the Global Trends Fund Futures and forward contracts are contractual agreements that involve the right to receive, or obligation to deliver, assets or money depending on the performance of one or more underlying assets, currencies or a market or economic index. The risks associated with the Fund’s use of futures contracts include the risk that: (i) changes in the price of a futures contract may not always track the changes in market value of the underlying reference asset; (ii) trading restrictions or limitations may be imposed by an exchange, and government regulations may restrict trading in futures contracts; and (iii) if the Fund has insufficient cash to meet margin requirements, the Fund may need to sell other investments, including at disadvantageous times. Forwards are not exchangetraded and therefore no clearinghouse or exchange stands ready to meet the obligations of the contracts. Thus, the Fund faces the risk that its counterparties may not perform their obligations. Forward contracts are also not regulated by the Commodity Futures Trading Commission (“CFTC”) and therefore the Fund will not receive any benefit of CFTC regulation when trading forwards. The Fund’s investment in futures may provide leveraged exposure which may cause the Fund to lose more than the amount it invested in those instruments. The Fund also has exposure to the commodities markets, which may subject the Fund to greater volatility than investments in traditional securities. The value of commodity futures instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or events affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. Investments that provide exposure to foreign markets involve special risks, such as currency fluctuations, differing financial reporting and regulatory standards, and economic and political instability. These risks are highlighted when the issuer is in an emerging market. Fixed income securities and currency and fixed income futures are subject to changes in their value when prevailing interest rates change. Adverse changes in currency exchange rates (relative to the U.S. dollar) may erode or reverse any potential gains from futures instruments that are tied to foreign instruments or currencies. Emerging market exposure generally has a higher level of currency risk. Credit risk (i.e., the risk that an issuer might not pay interest when due or repay principal at maturity of the obligation) could affect the value of the investments in the Fund’s portfolio exposed to fixed income securities. The Fund’s investments in repurchase agreements involve certain risks involving the default or insolvency of the seller and counterparty risk (i.e., the risk that the counterparty will not perform its obligations). Active trading of the Fund’s portfolio may result in high portfolio turnover and correspondingly greater brokerage commissions and other transaction costs, which will be borne directly by the Fund and which will affect the Fund’s performance. Active trading may also result in increased tax liability for Fund shareholders. Investors should note that the ability of the sub-adviser to successfully implement the Fund’s strategies, including the proprietary investment process used by the sub-adviser, will influence the performance of the Fund significantly.

May Q1 2015 2011 : 15

Funds-at-a-Glance Disclosure Notes on the Alternative Strategies Fund The commodity and hedge fund-linked derivative instruments in which the Fund invests have substantial risks, including the risk of loss of a significant portion of their principal value. Commodity and hedge fund-linked derivative instruments may be more volatile and less liquid than the underlying instruments and their value will be affected by the performance of the commodity markets or underlying hedge funds, as well as overall market movements and other factors. Commodity and hedge fund exposure may also subject the Fund to greater volatility than investing in traditional securities. The value of commoditylinked derivative instruments may be affected by commodity index volatility, changes in interest rates, or events affecting a particular industry or commodity, drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. The hedge funds comprising a hedge fund index invest in and may actively trade securities and other financial instruments using a variety of strategies and investment techniques that may involve significant risks. Managed futures involve going long or short in futures contracts and futures-related instruments. If the Fund’s investment advisor uses a future or other derivative instrument at the wrong time or judges market conditions incorrectly, use of such instruments may result in a significant loss to the Fund. The Fund could also experience losses if the prices of its futures or other derivative instruments were not properly correlated with other investments. Managed futures instruments and some other derivatives the Fund buys involve a degree of leverage. The Fund’s use of certain economically leveraged futures and other derivatives can result in a loss substantially greater than the amount invested in the futures or other derivatives. Certain futures and other derivatives have the potential for unlimited loss, regardless of the size of the initial investment. When the Fund uses futures and other derivatives for leverage, a shareholder’s investment in the Fund will tend to be more volatile, resulting in larger gains or losses in response to the fluctuating prices of the Fund’s investments. The Alternative Strategies Fund is not a complete investment program and should not be an investor’s sole investment because of the associated risk.

Information on SunAmerica Specialty Funds (Income Explorer Fund): Notes on the Income Explorer Fund Preferred securities are subject to bond market volatility risk, credit risk and interest rate fluctuation risk. In addition, preferred securities are subordinated to other securities in the issuer’s capital structure and are subject to the risk that the issuer will fail to make dividends or other distributions because other claims on the issuer’s assets take priority. Preferred securities may be less liquid than many other types of securities and may be subject to the risk of being redeemed prior to their scheduled date. The Fund may invest in high-yield securities and senior loan securities, which are considered speculative. High yield securities carry a high risk of default or may already be in default. The market price of such securities may fluctuate more than higher-quality securities and may decline significantly. The Fund’s investments in closed-end funds generally reflect the risks of the underlying securities they hold. The Fund will indirectly bear its proportionate share of the management and other expenses that are charged by the closed-end funds, in addition to the expenses paid by the Fund. Shares of closed-end funds are subject to other risks related to their structure, including the possibility that shares may trade at a discount from their net asset value and the use of leverage in their capital structure. The presence of leverage in the closed-end fund structure introduces both increased volatility of net asset value, and the potential for greater variability in the dividends paid by the closed-end funds. A portion of the distributions received by the Fund from preferred securities issued by real estate investment trusts and from closed-end funds may consist of return of capital return and/or capital gains, and the character of these distributions cannot be determined until after the end of the year.

16 : FAQ Funds-at-a-Glance Financial Advisors’ Quarterly

The Global Dividend Stocks sleeve employs a disciplined strategy and will not deviate from this strategy (except to the extent necessary to comply with federal tax laws or other applicable laws). If the Global Dividend Stocks sleeve is committed to a strategy that is unsuccessful, the Fund will not meet its investment goal. Because the Global Dividend Stocks sleeve generally will not use certain hedging techniques available to the Preferred Securities and Closed-End Fund sleeves to reduce stock market exposure, this portion of the Fund may be more susceptible to general market declines than the other sleeves. International investing involves special risks, such as currency fluctuations, economic and political instability, greater market volatility and limited liquidity. These risks can be greater in the case of emerging country securities. Securities of small- and medium-sized companies are usually more volatile and entail greater risks than securities of large companies. Notes on the Morningstar Ratings Morningstar is an independent investment research firm that rates the performance of mutual funds based on return and risk. For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variations in a fund’s monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. Morningstar Rating is for the A share class only; other classes may have different performance characteristics. Past performance is not a guarantee of future results. ©2015 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not a guarantee of future results. About the Indices Barclays CMBS AAA Super Index is an index that tracks the performance of top-quality commercial mortgage-backed securities. Barclays Emerging Markets USD Aggregate Bond Index is an emerging markets debt benchmark that includes USD denominated debt from sovereign, quasi-sovereign and corporate issuers. Barclays Municipal Bond Index is a market value weighted index of investment grade municipal bonds with maturities of one year or more. Barclays U.S. Aggregate Bond Index is comprised of government securities, mortgage-backed securities, asset-backed securities and corporate securities to simulate the universe of bonds in the market. The maturity of the bonds in the index is over one year. Barclays U.S. Corporate Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate, taxable corporate bond market. Barclays U.S. Credit Index is a subset of the Barclays U.S. Government/Credit Bond Index. It is used as a representation of the investment grade corporate bond market. Barclays U.S. Government/Credit Bond Index measures the performance of U.S. Treasuries, government-related and investment grade U.S. corporate securities that have a remaining maturity of greater than one year. Barclays U.S. High Yield Index is an unmanaged index of fixed rate noninvestment grade debt. Barclays U.S. MBS Fixed Index is an index that tracks the performance of residential mortgage-backed securities in the U.S.

For financial professional use only. Not for use with the public.

Funds-at-a-Glance Disclosure Barclays U.S. Treasury Index is an index that includes public obligations of the U.S. Treasury, excluding Treasury bills. Barclays U.S. Treasury 7-10 Year Index is a market capitalization-weighted index including all U.S. Treasury notes and bonds with maturities greater than or equal to 7 years and less than or equal to 10 years. BofA Merrill Lynch Fixed Rate Preferred Securities Index tracks the performance of fixed-rate U.S. dollar-denominated preferred securities issued in the U.S. domestic market. BofA Merrill Lynch Corporate Master Index tracks the performance of U.S. dollar-denominated investment-grade corporate debt publicly issued in the U.S. domestic market. BofA Merrill Lynch Municipal Master Index tracks the performance of U.S. dollar-denominated investment-grade tax-exempt debt publicly issued by U.S. states and territories, and their political subdivisions, in the U.S. domestic market. Citigroup WGBI Non US$ Index (unhedged) is a market capitalizationweighted index that tracks total returns of government bonds in 22 developed countries globally. Local bond market returns are from country sub-indices of the Citigroup WGBI. Credit Suisse First Boston (CSFB) Leveraged Loan Index is a market value-weighted index designed to represent the investable universe of the U.S. dollar-denominated bank loan market. Dow Jones Industrial Average (DJIA) is a price-weighted average of 30 actively traded “blue chip” stocks, primarily industrials, but also including financials and other service-oriented companies. JP Morgan Emerging Markets Bond Index Plus (EMBI Plus) is an index that tracks total returns for external-currency-denominated debt instruments of the emerging markets. It is concentrated in 19 emerging market countries. MSCI ACWI ex-U.S. Index is based on the MSCI ACWI, excluding the U.S. MSCI ACWI High Dividend Yield Index is a subset of the MSCI ACWI. It is designed to reflect the performance of equities in the MSCI ACWI (excluding REITs) with higher than average dividend yields. MSCI All Country Asia ex-Japan is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the Far East, excluding Japan. MSCI All Country World Index (ACWI) is a free float-adjusted market capitalization-weighted index designed to measure the equity market performance of 44 global developed and emerging markets. MSCI EAFE High Dividend Yield Index is based on the MSCI EAFE, its parent index, and includes large and mid cap representation across Developed Markets countries around the world, excluding the U.S. and Canada. This index is designed to reflect the performance of equities in the parent index (excluding REITs) with higher than average dividend yields. MSCI EAFE Index (Europe, Australasia and Far East) is a free float-adjusted market capitalization index that measures the performance of developed equity markets, excluding the U.S. & Canada. MSCI Emerging Markets Index is designed to measure the equity market performance of emerging markets, such as Brazil, Chile, China and India. MSCI Europe Index is a free float-adjusted market capitalization weighted index that measures the equity market performance of 16 developed markets in Europe. MSCI Japan Index (Net) is a free-float adjusted market capitalization weighted index that is designed to track the equity market performance of Japanese securities listed on Tokyo Stock Exchange, Osaka Stock Exchange, JASDAQ and Nagoya Stock Exchange. MSCI World Index measures the equity market performance of developed markets from around the world. Morningstar All Taxable Fixed Income Index measures the market cap weighted total return of 172 taxable fixed income closed-end funds. It excludes national and single-state municipal closed-end funds. Nikkei Index is comprised of the top 225 blue-chip companies on the Tokyo Stock Exchange. It is often used to represent the performance of Japanese equities.

For financial professional use only. Not for use with the public.

Russell 1000 Index measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000 Index and includes approximately 1000 of the largest securities in that index. Russell 1000 Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. Russell 1000 Value Index measures the performance of the large-cap value segment of U.S. equity value universe. It includes those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values. Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. It is a subset of the Russell 3000 Index, representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. Russell 2000 Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000 Index companies with higher price-to-book ratios and higher forecasted growth values. Russell 2000 Value Index measures the performance of the small-cap value segment of the U.S. equity universe. It includes those Russell 2000 Index companies with lower price-to-book ratios and lower forecasted growth values. Russell 3000 Index measures the performance of the largest 3000 U.S. companies, representing approximately 98% of the investable U.S. equity market. Russell 3000 Growth Index measures the performance of the growth segment of the U.S. equity universe. It includes those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. Russell 3000 Value Index measures the performance of the value segment of the U.S. equity universe. It includes those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. Russell Microcap Index measures the performance of the microcap segment of the U.S. equity market. Microcap stocks make up less than 3% of the U.S. equity market (by market cap) and consist of the smallest 1,000 securities in the small-cap Russell 2000 Index, plus the next smallest eligible securities by market cap. Russell Microcap Growth Index measures the performance of the microcap growth segment of the U.S. equity market. Russell Midcap Index measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap is a subset of the Russell 1000 Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership. S&P 500 Index is an unmanaged, broad-based, market-cap weighted index of 500 U.S. stocks. S&P/LSTA U.S. Leveraged Loan Index is a market capitalization-weighted index that tracks the performance of the floating rate loan market.

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 the SunAmerica Sales Desk at 800-858-8850, ext. 6003, or at www.safunds.com. Read the prospectus carefully before investing. Funds distributed by AIG Capital Services, Inc. / Harborside Financial Center / 3200 Plaza 5 / Jersey City, NJ 07311 / 800-858-8850, ext. 6003

May 2015 : 17

Pricing Information

Class A Shares

Class B Shares

SunAmerica Alternative Strategies Fund SunAmerica Equity Portfolios SunAmerica Focused Asset Allocation Strategies SunAmerica Global Trends Fund High Watermark Fund

Front-end Sales Charge: None Contingent Deferred Sales Charge (CDSC):

Sales Charge

Concession to Dealers

Purchase Amount

% of Offering Price

% of Amount Invested

% of Offering Price

Less than $50,000

5.75%

6.10%

5.00%

$

50,000 to $99,999

4.75%

4.99%

4.00%

$

100,000 to $249,999

3.75%

3.90%

3.00%

$

250,000 to $499,999

3.00%

3.09%

2.50%

$

500,000 to $999,999

2.00%

2.04%

1.75%

$

1,000,000 or more  29

NONE

NONE

1.00%­

SunAmerica Income Funds Sales Charge

Concession to Dealers

Year 1

4.00%

Year 2

4.00%

Year 3

3.00%

Year 4

3.00%

Year 5

2.00%

Year 6

1.00%

Year 7

0.00%

Year 8

0.00%

Broker-Dealer Concession: 4.00%, with no breakpoints Service Fee: Up to 0.25%; begins in 13th month after purchase (Dividend reinvestments accrue immediately). Conversion to Class A: B shares automatically convert to A shares following the 8th anniversary of the purchase date. Purchase Limitation: $99,999

Class C Shares

Purchase Amount

% of Offering Price

% of Amount Invested

% of Offering Price

Less than $100,000

4.75%

4.99%

4.00%

$

100,000 to $249,999

3.75%

3.90%

3.00%

$

250,000 to 499,999

3.00%

3.09%

2.50%

Front-end Sales Charge: None CDSC: 1.00% in first 12 months.

$

500,000 to $999,999

2.00%

2.04%

1.75%

Broker-Dealer Concession: 1.00% (at time of purchase).

$

1,000,000 or more  29

NONE

NONE

1.00%

Service Fee: Up to 1.00%; SFR Fund Only: up to 0.75%; begins in 13th month after purchase (Dividend reinvestments accrue immediately).

$

SunAmerica Senior Floating Rate Fund (SFR) Sales Charge % of Offering Price

Purchase Amount

% of Amount Invested

Concession to Dealers % of Offering Price

Less than $250,000

3.75%

3.90%

3.00%

$

250,000 to $499,999

3.00%

3.09%

2.50%

$

500,000 to $999,999

2.00%

2.04%

1.75%

$

1,000,000 or more  

NONE

NONE

1.00%

29

Service Fee: An annual service trail fee of 0.25% is paid to brokerdealers on a monthly basis. Accrual begins immediately.

High Watermark 2020 Only: C shares automatically convert to A shares following the 8th anniversary of the purchase date.

Class W Shares Offered exclusively through advisory fee-based programs $50,000 minimum requirement No sales charges No 12b-1 fee

Opening an Account Account Minimums: Non-retirement account: $500 Retirement account: $250 Subsequent Investments: Non-retirement account: $100 Retirement account: $25 Dollar Cost Averaging: Meet account minimum to open; clients must invest at least $25 a month.

29

 ote: Redemptions occurring in the first 12 months after purchasing $1,000,000 or more of Class A Shares are subject to a CDSC at the rate of 1.00%. Redemptions occurring in N the next 12 months are subject to a CDSC at the rate of 0.50%.

18 : FAQ Funds-at-a-Glance Financial Advisors’ Quarterly

For financial professional use only. Not for use with the public.

The SunAmerica Mutual Funds

Alternatives

Equity Portfolios

Fixed Income

ALTERNATIVES

VALUE

GROWTH & INCOME

BLEND

GROWTH

SPECIALTY

Alternative Strategies

Strategic Value

Focused Dividend Strategy

Focused Alpha Large-Cap

Focused Alpha Growth

Income Explorer

SunAmerica Small-Cap

International Dividend Strategy

Global Trends

Select Dividend Growth

SunAmerica Japan

Exposure to Commodities, Hedge Fund Strategies and Managed Futures.

High Watermark 2020*

Asset Allocation FIXED INCOME

ASSET ALLOCATION

Flexible Credit**

Focused Balanced Strategy

Senior Floating Rate

Focused Multi-Asset Strategy

Strategic Bond

U.S. Government Securities

The Fund may also act as an asset allocation strategy with exposure to 10 global asset classes including equities, fixed income, commodities, and currencies. The Fund strategically allocates its assets among a global dividend equity strategy, a closed-end fund strategy and a preferred securities strategy.

*As of June 18, 2012, the Fund closed to new investments. **Effective October 1, 2014, the name of the SunAmerica High Yield Bond Fund was changed to the SunAmerica Flexible Credit Fund and certain corresponding changes were made to the Fund’s investment strategy and techniques.

For financial professional use only. Not for use with the public.

May 2015 : 19

Funds-at-a-Glance as of 3/31/2015

Alternatives

Alternative Strategies

Global Trends

Fund Objective: The Fund seeks to achieve long-term total return and has the potential to provide diversification benefits to a traditional portfolio.

Fund Objective: Seeks to achieve capital appreciation.

Portfolio Manager: Stephen Burke

Portfolio Manager: Rick Wurster

Class and Symbols:

Class and Symbols:

Average Annual Returns:

A Class SUNAX C Class SUNCX W Class SUNWX Since 10-yr Incept.

1-yr

3-yr

5-yr

-6.47%

-5.92%

-4.86%

N/A

-3.18%

With MSC -11.84%

-7.75%

-5.97%

N/A

-4.07%

At NAV

Fund Statistics

Inception Date: 11/4/2008

Futures Exposure30

Commodities Contracts

6.5%

Currency Contracts

8.0%

Structured Notes Exposure31

Fund Statistics

Equity Index Contracts

23.2%

Commodity Index Linked Notes

11.6%

Exchange Exchange Traded Funds Traded Funds32

3.7%

Gross operating expenses: Class A: 2.22%. Net operating expenses: Class A: 1.73% 30 The percentages shown are intended to illustrate the Fund’s exposure to certain asset classes through its investment in futures. The exposure percentage represents the notional contract value in U.S. dollars of the Fund’s futures divided by the Fund’s total net assets. Notional contract values represent the aggregate exposure that a futures contract provides to the underlying reference asset or currency. Notional contract values are not reflected in the Fund’s computation of net asset value. Only unrealized gains and losses from the futures (and certain other derivative instruments) are reflected in the Fund’s computation of net asset value. 31 The percentages shown for the structured notes represent the Fund’s notional exposure to the referenced index. So, for example, a note representing 5% of the Fund’s net assets (based on the market value of the note) may be designed to obtain up to 15% exposure to a selected index since the notes are leveraged. 32 The percentages shown for the Fund’s ETF holdings reflect the market value of the ETFs that are included in the Fund’s portfolio of investments.

20 : 20 FAQ: Financial FAQ Funds-at-a-Glance Advisors’ Quarterly

Average Annual Returns:

Asset Class Exposure

A Class GTFAX C Class GTFCX W Class GTFWX Since 10-yr Incept.

1-yr

3-yr

5-yr

At NAV

2.17%

0.31%

N/A

N/A

1.37%

With MSC

-3.68%

-1.66%

N/A

N/A

-0.21%

Inception Date: 6/15/2011

U.S. Equity Markets (Russell 2000 Mini Index Futures)

9.9%

United Kingdom Equity Markets (FTSE 100 Index Futures)

10.0%

German Equity Markets (DAX Index Futures)

18.9%

Japan Equity Markets (Nikkei 225 Index Futures)

0.0%

Emerging Market Equities

0.0%

U.S. Fixed Income (U.S. Treasury 10 Yr. Notes)

19.9%

Non-U.S. Developed Country Fixed Income (Overall)

10.0%

Emerging Markets Currency (Overall)

0.0%

Commodities - Metals (Overall)

4.9%

Commodities - Energy/Agriculture (Overall) 0.0%

Gross operating expenses: Class A: 2.33%. Net operating expenses: Class A: 1.86% The Fund expects to invest a significant portion of its assets in repurchase agreements collateralized by the U.S. government and its agencies, and may also invest in other high quality short-term securities (“money market instruments”). The primary purpose of the repurchase agreements and other money market instruments held by the Fund is to serve as collateral for the futures instruments. As of March 31, 2015, 96.3% of the Fund’s net assets were represented by repurchase agreements and 3.7% in other assets and liabilities. These percentages represent the value of the Fund’s holdings that are used to calculate the net asset value of the Fund, and include any unrealized gains and losses from the futures and forwards contracts held by the Fund. The Fund’s portfolio is actively managed and its holdings and composition are subject to change.

For financial professional use only. Not for use with the public.

Value

Growth & Income

Strategic Value

Focused Dividend Strategy

Fund Objective: Seeks long-term growth of capital by investing in securities that the advisor believes are undervalued in the market, and by employing a “buy and hold” strategy with securities selected annually from the Russell 3000 Value Index.

Fund Objective: Seeks total return (including capital appreciation and current income) by employing a “buy and hold” strategy involving the annual selection of up to 30 high dividend-yielding common stocks from the Dow Jones Industrial Average (DJIA) and broader market.

Portfolio Manager: Timothy Pettee and Team

Portfolio Manager: Timothy Pettee and Team

Class and Symbols:

Class and Symbols:

Average Annual Returns:

Fund Statistics

Top Five Sector Weightings:

A Class SFVAX C Class SFVTX Since 10-yr Incept.

1-yr

3-yr

5-yr

At NAV

11.29%

15.53%

12.37%

6.63%

8.36%

With MSC

4.89%

13.27%

11.05%

6.00%

7.95%

Average Annual Returns:

Inception Date: 11/1/1999

A Class B Class C Class W Class

FDSAX FDSBX FDSTX FDSWX Since 10-yr Incept.

1-yr

3-yr

5-yr

At NAV

12.37%

17.64%

16.10%

10.56%

7.36%

With MSC

5.92%

15.33%

14.74%

9.91%

6.99%

Fund Statistics

Inception Date: 6/8/1998

Top Five Sector Weightings:

Tobacco

Medical-Drugs 10.7% Oil Companies-Integrated

6.3%

12.9%

Food-Misc./Diversified

8.2%

Computer Services

6.8%

Medical-HMO 3.4%

Medical-Drugs

6.8%

Total

Telephone-Integrated

6.0%

Diversified Manufacturing Operations

4.2%

Oil Companies-Exploration & Production

3.5% 28.1%

Total 40.7% Top Ten Holdings:

Johnson & Johnson

4.5%

Exxon Mobil Corp.

3.8%

Merck & Co., Inc.

3.6%

Kraft Foods Group, Inc.

4.9%

Staples, Inc.

3.9%

2.7%

Coach, Inc.

3.9%

Chevron Corp.

2.5%

Pfizer, Inc.

3.7%

Franklin Resources, Inc.

2.3%

Accenture PLC, Class A

3.6%

2.2%

CA, Inc.

3.5%

UnitedHealth Group, Inc.

2.2%

Lockheed Martin Corp.

3.5%

Occidental Petroleum Corp.

2.1%

Cisco Systems, Inc.

3.5%

2.1%

Reynolds American, Inc.

3.4%

Omnicom Group, Inc.

3.4%

Pfizer, Inc.

NASDAQ OMX Group, Inc.

Intel Corp. Total

28.0%

Top Ten Holdings:

Total

Gross operating expenses: Class A: 1.42%.

For financial professional use only. Not for use with the public.

37.3%

Gross operating expenses: Class A: 1.07%

May 2015 : 21

Funds-at-a-Glance as of 3/31/2015

Growth & Income

Blend

Select Dividend Growth

Focused Alpha Large-Cap

Fund Objective: Seeks capital appreciation with a secondary objective of high current income.

Fund Objective: Seeks growth of capital through a focused portfolio consisting of the portfolio managers’ highest confidence stock-picking ideas across growth and value stocks of large-cap companies.

Portfolio Manager: Timothy Pettee and Team

Portfolio Manager: Peter Stournaras Thomas Marsico

Class and Symbols:

Class and Symbols:

Average Annual Returns:

A Class SDVAX C Class SDVCX W Class SDVWX Since 10-yr Incept.

1-yr

3-yr

5-yr

At NAV

N/A

N/A

N/A

N/A

N/A

With MSC

N/A

N/A

N/A

N/A

N/A

Average Annual Returns:

A Class SFLAX C Class SFLCX W Class SFLWX Since 10-yr Incept.

1-yr

3-yr

5-yr

At NAV

14.57%

16.19%

16.49%

N/A

9.42%

With MSC

7.96%

13.92%

15.12%

N/A

8.72%

Fund Statistics

Inception Date: 1/23/2012 (open-end); 12/22/2005 (closed-end)

Top Five Sector Weightings:

Medical-Generic Drugs

Fund Statistics

Inception Date: 5/1/2014

Top Five Sector Weightings:

Aerospace/Defense

8.5%

Tobacco

7.6%

Food-Misc./Diversified

7.3%

Retail-Apparel/Shoe

5.4%

Retail-Building Products

Retail-Discount

5.4%

Computers 6.3%

Total Top Ten Holdings:

3.9%

Broadridge Financial Solutions, Inc.

3.3%

Best Buy Co., Inc.

3.3%

Quest Diagnostics, Inc.

7.6%

Medical-Biomedical/Gene 7.3%

Total

34.2%

L Brands, Inc.

Cable/Satellite TV

10.3%

7.1% 38.6%

Lowe's Cos., Inc.

7.1%

Apple, Inc.

6.3%

3M Co.

6.3%

3.1%

Biogen Idec, Inc.

6.1%

CME Group, Inc.

3.1%

Aetna, Inc.

6.0%

Northrop Grumman Corp.

3.0%

Western Digital Corp.

5.4%

Target Corp.

3.0%

US Bancorp

5.4%

Nordstrom, Inc.

2.9%

Teva Pharmaceutical Industries, Ltd. ADR 5.3%

Staples, Inc.

2.9%

Comcast Corp., Class A

5.3%

Western Union Co.

2.9%

Facebook, Inc., Class A

5.2%

Total

Gross operating expenses: Class A: 1.63%

22 : FAQ Funds-at-a-Glance Financial Advisors’ Quarterly

31.4%

Top Ten Holdings:

Total 58.4% The Fund acquired the assets and assumed the liabilities of the closed-end investment company predecessor - the SunAmerica Focused Alpha Large-Cap Fund. The Reorganization occurred on January 23, 2012. The performance figures above for the period prior to the Reorganization were calculated using the actual operating expenses of the Predecessor Fund, which were lower than those of the Fund. Gross Expense Ratio: 1.65%; Net Expense Ratio: 1.66%. If the Fund’s higher operating expenses were applied to the performance for the period prior to the Reorganization, the performance figures (with Maximum Sales Charge) would have been as follows: 1 Year: 7.96%; 3 Year: 13.92%; 5 Year: 14.98%; and Since Inception: 8.41%.

For financial professional use only. Not for use with the public.

Growth

Focused Alpha Growth

SunAmerica Small-Cap

Fund Objective: Seeks growth of capital through a focused portfolio consisting of the portfolio managers’ highest confidence stock-picking ideas across growth companies of all market capitalizations.

Fund Objective: Seeks long-term growth of capital.

Portfolio Manager: Ron Baron Thomas Marsico

Portfolio Manager: Michael J. Skillman, Robert L. Fitzpatrick and Timothy Campion

Class and Symbols:

Class and Symbols:

Average Annual Returns:

A Class FOCAX C Class FOCCX W Class FOCWX Since 10-yr Incept.

1-yr

3-yr

5-yr

At NAV

12.41%

14.07%

16.39%

N/A

10.03%

With MSC

5.95%

11.85%

15.02%

N/A

9.35%

Average Annual Returns:

A Class SASAX C Class SASCX W Class SASWX Since 10-yr Incept.

1-yr

3-yr

5-yr

At NAV

7.88%

N/A

N/A

N/A

11.35%

With MSC

1.68%

N/A

N/A

N/A

5.72%

Fund Statistics

Inception Date: 1/23/2012 (open-end); 7/26/2005 (closed-end)

Fund Statistics

Inception Date: 2/5/2014

Top Five Sector Weightings:

Medical-Biomedical/Gene 10.1%

Top Five Sector Weightings:

Medical-Biomedical/Gene 6.0%

Multimedia 8.9% Computers 8.8% Internet Content-Entertainment

Top Ten Holdings:

7.4%

Medical-Drugs 5.2% Banks-Commercial 5.1% Real Estate Investment Trusts

4.8%

Retail-Discount 7.1%

Electronic Components-Semiconductors

2.9%

TOTAL

Total

42.3%

Apple, Inc.

8.8%

Biogen Idec, Inc.

8.4%

Facebook, Inc., Class A

7.4%

Dollar Tree, Inc. Actavis PLC

24.0%

Carriage Services, Inc.

0.8%

Receptos, Inc.

0.8%

iShares Russell 2000 Index Fund

0.7%

7.1%

Bluebird Bio, Inc.

0.7%

6.9%

Kona Grill, Inc.

0.7%

Walt Disney Co.

6.8%

Carmike Cinemas, Inc.

0.7%

UnitedHealth Group, Inc.

5.8%

Reis, Inc.

0.7%

Canadian Pacific Railway, Ltd.

5.3%

Cross Country Healthcare, Inc.

0.7%

Visa, Inc., Class A

4.9%

Alliance Fiber Optic Products, Inc.

0.7%

3.2%

Qualys, Inc.

0.7%

Total

7.2%

Time Warner Cable, Inc. TOTAL

64.6%

The Fund acquired the assets and assumed the liabilities of the closed-end investment company predecessor - the SunAmerica Focused Alpha Growth Fund. The Reorganization occurred on January 23, 2012. The performance figures above for the period prior to the Reorganization were calculated using the actual operating expenses of the Predecessor Fund, which were lower than those of the Fund. Gross Expense Ratio: 1.65%; Net Expense Ratio: 1.65%. If the Fund’s higher operating expenses were applied to the performance for the period prior to the Reorganization, the performance figures (with Maximum Sales Charge) would have been as follows: 1 Year: 5.95%; 3 Year: 11.85%; 5 Year: 14.84%; and Since Inception: 9.00%.

For financial professional use only. Not for use with the public.

Top Ten Holdings:

Gross operating expenses: Class A: 1.98%. Net operating expenses: Class A: 1.72%.

May 2015 : 23

Funds-at-a-Glance as of 3/31/2015

Specialty

Fixed Income

Income Explorer

International Dividend Strategy

Fund Objective: Seeks high current income with a secondary objective of capital appreciation.

Fund Objective: Uses a rules-based approach to identify high dividend-yielding, non-U.S. stocks with attractive valuations and capital appreciation potential in today’s global market.

Portfolio Managers: Doug Bond, William Scapell and Tim Pettee

Portfolio Managers: Tim Pettee and Team

Class and Symbols:

Class and Symbols:

Average Annual Returns:

A Class IEAAX C Class IEACX W Class IEAWX Since 10-yr Incept.

1-yr

3-yr

5-yr

At NAV

1.93%

N/A

N/A

N/A

6.59%

With MSC

-3.93%

N/A

N/A

N/A

3.02%

Average Annual Returns:

A Class SIEAX C Class SIETX W Class SIEWX Since 10-yr Incept.

1-yr

3-yr

5-yr

-15.16%

-3.08%

-2.51%

0.32%

0.43%

With MSC -20.06%

-4.97%

-3.66%

-0.28%

0.11%

At NAV

Fund Statistics

Inception Date: 7/2/2013

Fund Statistics

Inception Date: 11/19/1996

Top Five Sector Weightings:

Domestic Fixed Income Investment Companies 20.4%

Top Five Sector Weightings:

Telephone-Integrated 8.9%

International Fixed Income Investment Companies 9.9% Diversified Banking Institutions

7.7%

Domestic Equity Investment Companies

7.0%

Real Estate Investment Trusts

3.8%

Total Top Ten Holdings:

PIMCO Dynamic Income Fund John Hancock Tax-Advantaged Dividend Income Fund

48.8% 1.7% 1.7%

Eaton Vance Tax-Advantaged Dividend Income Fund

1.6%

PIMCO Income Strategy Fund II

1.6%

Gabelli Dividend & Income Trust

1.6%

Flaherty & Crumrine Dynamic Preferred and Income Fund, Inc.

1.6%

PIMCO Income Opportunity Fund

1.5%

Eaton Vance Tax-Managed Diversified Equity Income Fund

1.5%

Legg Mason BW Global Income Opportunities Fund, Inc.

1.5%

PIMCO Dynamic Credit Income Fund Total

8.3%

Telecom Services

7.1%

Insurance-Multi-line 4.9% Medical-Drugs 4.4% Total Top Ten Holdings:

33.6%

Pegatron Corp.

3.3%

Koninklijke Ahold NV

2.7%

Swiss Re AG

2.7%

Siliconware Precision Industries Co.

2.7%

Bouygues SA

2.6%

Bank of Communications Co., Ltd., Class H 2.6% Sekisui House, Ltd.

2.6%

Teva Pharmaceutical Industries, Ltd.

2.5%

Canon, Inc.

2.5%

Zurich Insurance Group AG

2.5%

Total

26.7%

1.5% 15.8%

Gross operating expenses: Class A: 2.63%. Net operating expenses: Class A: 2.23%

24 : FAQ Funds-at-a-Glance Financial Advisors’ Quarterly

Oil Companies-Integrated

Gross operating expenses: Class A: 1.82%. Net operating expenses: Class A: 1.91%

For financial professional use only. Not for use with the public.

Specialty

Fixed Income

SunAmerica Japan

Flexible Credit

Fund Objective: Seeks long-term capital appreciation by country-specific investing.

Fund Objective: Seeks a high level of total return by investing in floating rate loans and high-yield bonds.

Portfolio Manager: Jun Oh

Portfolio Managers: David Albrycht, Frank Ossino and Jonathan Stanley

Class and Symbols: Average Annual Returns:

Class and Symbols:

A Class SAESX C Class SAJCX Since 10-yr Incept.

1-yr

3-yr

5-yr

At NAV

9.40%

9.40%

6.38%

N/A

-0.45%

With MSC

3.14%

7.24%

5.13%

N/A

-1.10%

Fund Statistics

Inception Date: 5/2/2006

Top Five Sector Weightings:

Auto/Truck Parts & Equipment-Original

Fund Statistics 12.7%

Telephone-Integrated 9.1% Insurance-Life/Health 6.3% Television 6.1%

Top Ten Holdings:

Average Annual Returns:

Top Five Weightings

A Class SHNAX C Class SHNCX W Class SHNWX 1-yr

3-yr

5-yr

Since 10-yr Incept.

At NAV

1.35%

6.04%

7.04%

5.05%

5.26%

With MSC

-3.49%

4.33%

5.99%

4.55%

4.95%

Inception Date: 11/2/1998 Duration (Years): 2.41 Average Maturity (Years): 5.87 30 Day SEC Yield (Class A)*: 3.66% 30 Day SEC Yield (Class A)†: 2.95% U.S. Corporate Bonds & Notes

47.9%

Loans

41.6%

Banks-Commercial 5.5%

Foreign Corporate Bonds & Notes

6.4%

Total

Cash & Equivalents

3.1%

39.7%

Nippon Telegraph & Telephone Corp.

4.9%

Mitsubishi Electric Corp.

4.8%

Mitsubishi UFJ Financial Group, Inc.

4.7%

Fujitsu, Ltd.

4.2%

Nippon Television Holdings, Inc.

4.0%

Sumitomo Mitsui Financial Group, Inc. T&D Holdings, Inc. Tokio Marine Holdings, Inc. Denso Corp. Sumitomo Electric Industries, Ltd. Total

Preferred Securities Total Univision Communications, Inc. 4.00% due 3/1/2020

1.6%

3.9%

Hilton Worldwide Finance LLC 3.50% due 10/26/2020

1.6%

3.5%

HCA, Inc. 6.50% due 2/15/2020

1.2%

3.3%

H.J. Heinz Co. 6.00% due 6/5/2020

1.1%

3.3%

Realogy Group LLC 3.75% due 3/5/2020

1.1%

3.1%

CHS/Community Health Systems, Inc. 6.88% due 2/1/2022

1.1%

iHeartCommunications, Inc. 3.25% due 1/30/2019

1.1%

Ally Financial, Inc. 4.13% due 3/30/2020

1.0%

Pinnacle Foods Finance LLC 6.75% due 4/29/2020

0.9%

39.7%

Top Ten Holdings:

Chrysler Group LLC 3.25% due 12/31/2018 Total Gross operating expenses: Class A: 2.19%. Net operating expenses: Class A: 1.90%

For financial professional use only. Not for use with the public.

0.6% 99.6%

0.9% 11.6%

Gross operating expenses: Class A: 1.53%. Net operating expenses: Class A: 1.45% * Includes fees waived and expenses reimbursed. † Excludes fees waived and expenses reimbursed. May 2015

: 25

Funds-at-a-Glance as of 3/31/2015

Fixed Income

Senior Floating Rate

Strategic Bond

Fund Objective: Seeks to provide as high a level of current income as is consistent with the preservation of capital by investing primarily in senior secured floating rate loans.

Fund Objective: Seeks a high level of total return by investing primarily in a broad range of bonds, including investment- and non-investment-grade bonds, U.S. government and agency obligations, mortgage-backed securities, and U.S. and foreign high-risk, high-yield bonds without regard to maturity.

Portfolio Manager: Jeffrey Heuer

Portfolio Manager: Robert Vanden Assem

Class and Symbols: Average Annual Returns:

A Class SASFX C Class NFRCX

Class and Symbols: Since 10-yr Incept.

1-yr

3-yr

5-yr

At NAV

1.19%

4.12%

4.15%

N/A

3.28%

With MSC

-2.66%

2.79%

3.36%

N/A

2.81%

At NAV

0.88%

3.85%

3.87%

3.30%

3.82%

With MSC

-0.09%

3.85%

3.87%

3.30%

3.82%

Class A

Class C

Fund Statistics

Top Five Sector Weightings

Top Ten Holdings

Inception Date (Class A): 10/4/2006 Inception Date (Class C): 8/31/1998 Average Maturity (Years): 5.6 30 Day SEC Yield (Class A)*: 3.78% 30 Day SEC Yield (Class A)†: 3.35% 30 Day SEC Yield (Class C)*: 3.93% 30 Day SEC Yield (Class C)†: 3.58% Media Health Care Providers & Services Commercial Services & Supplies Oil, Gas & Consumable Fuels Hotels, Restaurants & Leisure Total

10.0% 7.1% 6.0% 5.6% 5.4% 34.1%

First Data Corp. 3.67% due 03/24/2018 1.8% Delta 2 (Lux) SARL 4.75% due 07/31/2021 1.4% Albertson's Holdings LLC 5.50% due 08/25/2021 1.3% Univision Communications, Inc. 4.00% due 03/01/2020 1.1% Asurion Corp. 5.00% due 05/24/2019 1.1% Brickman Group Holdings, Inc. 4.00% due 12/18/2020 1.0% Kronos, Inc. 4.50% due 10/30/2019 1.0% Asurion Corp. 8.50% due 03/03/2021 1.0% PetSmart, Inc. 5.00% due 02/18/2022 1.0% Brand Energy and Infrastructure Services, Inc. 4.75% due 11/26/2020 0.9% Total 11.6%

Gross operating expenses: Class A: 1.80%, Class C: 2.19%. Net operating expenses: Class A: 1.46%, Class C: 1.76%. * Includes fees waived and expenses reimbursed. † Excludes fees waived and expenses reimbursed.

26 : FAQ Funds-at-a-Glance Financial Advisors’ Quarterly

Average Annual Returns:

A Class B Class C Class W Class

SDIAX SDIBX NAICX SDIWX 1-yr

3-yr

5-yr

Since 10-yr Incept.

At NAV

2.70%

4.52%

5.84%

5.72%

6.64%

With MSC

-2.28%

2.86%

4.79%

5.22%

6.39%

Fund Statistics

Inception Date: 11/1/1993 Duration (Years): 5.85 Average Maturity (Years): 9.86 30 Day SEC Yield (Class A)*: 3.35% 30 Day SEC Yield (Class A)†: 3.35%

Top Five Sector Weightings:

U.S. Corporate Bonds & Notes Foreign Corporate Bonds & Notes

46.1% 24.7%

Foreign Government Obligations

14.4%

U.S. Government Agencies Preferred Securities/Capital Securities

Top Ten Geographic Weightings:

4.2% 4.1%

Total

93.5%

United States

56.9%

United Kingdom

3.1%

Luxembourg 2.9% France 2.5% Netherlands 2.5% Canada 2.2% Mexico 1.9% Germany 1.3% Peru 1.2% Switzerland 1.1% Total

75.6%

Gross operating expenses: Class A: 1.31%

For financial professional use only. Not for use with the public.

U.S. Government Securities Fund Objective: Seeks high current income consistent with relative safety of capital by investing primarily in securities issued or guaranteed by the U.S. government. The Fund is neither insured nor guaranteed by the U.S. government.

Portfolio Managers: Timothy Pettee and Team Class and Symbols: Average Annual Returns:

A Class SGTAX C Class NASBX

At NAV With MSC

Fund Statistics

Top Five Weightings:

3-yr

5-yr

Since 10-yr Incept.

4.94%

1.17%

2.96%

3.62%

4.73%

-0.04%

-0.46%

1.95%

3.11%

4.50%

1-yr

Inception Date: 10/1/1993 Duration (Years): 4.34 Average Maturity (Years): 5.40 30 Day SEC Yield (Class A)*: 0.94% 30 Day SEC Yield (Class A)†: 0.32% Government National Mortgage Association (GNMA)

48.2%

United States Treasury Notes

12.5%

United States Treasury Bonds

7.8%

Federal National Mortgage Association (FNMA)

5.3%

U.S. Government Treasuries Total

3.3% 77.1%

Gross operating expenses: Class A: 1.39%. Net operating expenses: Class A: 0.99%

For financial professional use only. Not for use with the public.

May 2015 : 27

Funds-at-a-Glance as of 3/31/2015

Focused Asset Allocation Strategies

Focused Balanced Strategy

Focused Multi-Asset Strategy CLASS A-FASAX

CLASS B-FMABX

CLASS A-FBAAX

CLASS C-FMATX

70%

A: Equity

68%

Large-Cap Blend

 Large-Cap Blend

Focused Alpha Large-Cap Fund 10%

Focused Alpha Large-Cap Fund

Large-Cap Value

Large-Cap Value

Focused Dividend Strategy Portfolio

CLASS C-FBACX

Equity 68% Fixed Income 25% Alternatives 1.5% Global 5.5%

Equity 70% Fixed Income 10% Alternatives 10% Global 10%

A: Equity

CLASS B-FBABX

11%

Focused Dividend Strategy Portfolio

10%

11%

Small-Cap

Small-Cap

SunAmerica Small-Cap Fund 10%

SunAmerica Small-Cap Fund 10%

Multi-Cap

Multi-Cap

Focused Alpha Growth Fund 10% Select Dividend Growth Portfolio 10% Strategic Value Portfolio 10%

Select Dividend Growth Portfolio Focused Alpha Growth Fund Strategic Value Portfolio

International

International

International Dividend Strategy Fund SunAmerica Japan Fund

International Dividend Strategy Fund 5% SunAmerica Japan Fund 5%

B: Fixed Income

10%



10%

Alternative Strategies Fund

10%

D: Global

25%

Strategic Bond Fund 10% Senior Floating Rate Fund 6% U.S. Government Securities Fund 6% GNMA Fund 3%

C: Alternatives

5% 5%

1.5%

Alternative Strategies Fund

10%

Global Trends Fund Income Explorer Fund

8% 2%

B: Fixed Income

Strategic Bond Fund 5% U.S. Government Securities Fund 5%

C: Alternatives

10% 8% 8%

1.5%

D: Global

5.5%

Global Trends Fund Income Explorer Fund

3.5% 2.0%

The pie charts above reflect each Focused Asset Allocation Strategy’s approximate targeted asset allocations under normal market conditions, as invested through the underlying Funds and may not reflect the current allocation of the Strategies. These allocations will change due to market conditions between periods of rebalancing. The advisor may change these asset allocations from time to time and invest in other funds without notice. For additional information on the risks of investing in these Strategies, please see pages 14-16.

Performance Update (Class A Shares as of 3/31/2015) Avg. Annual Returns (NAV)

Avg. Annual Returns (with Max. Sales Charge)

Fund Name

1 Year

3 Year

5 Year

Since 10 Year Inception*

1 Year

3 Year

5 Year

10 Year

Since Inception*

Focused Multi-Asset Strategy

6.60%

8.16%

6.91%

4.32%

6.16%

0.47%

6.04%

5.65%

3.70%

5.66%

Focused Balanced Strategy

6.47%

8.26%

7.66%

4.70%

6.10%

0.38%

6.15%

6.39%

4.08%

5.59%

Focused Multi-Asset gross operating expenses: Class A: 1.61%. Focused Balanced gross operating expenses: Class A: 1.64%.

28 : FAQ Funds-at-a-Glance Financial Advisors’ Quarterly

For financial professional use only. Not for use with the public.

Meet Your Wholesaler

To contact your Wholesaler, call 800-858-8850, press 1 and enter the extension

Paul Ardekani, ext. 6355

Jerry ChadHanley, Spencer, ext. ext. 6884 6859

Gregg Smyth, ext. 6602

Internal Wholesaler

Internal Wholesaler

Internal Wholesaler

Phil Felice, ext. 6489

Dan Willoth, May Reda, ext. ext.6635 6865

Kim Schleif, ext. 6428

IA KS MO NE

AK ID MT South TX OR WA

South FL

Mike Brescia, ext. 6659

Heather Hughes, ext. 6353

Aaron Spatz, ext. 6789

Internal Wholesaler

Internal Wholesaler

Internal Wholesaler

Faith Andu, ext. 6620

Dave Lorenzo, ext. 6562

Billy Martin, ext. 6622

NYC Long Island

DC DE MD VA WV

CO UT WY South ID

Scott Brown, ext. 6384

Brian Karavlan, ext. 6445

Chad ChadSpencer, Spencer,ext. ext.6859 6859

Internal Wholesaler

Internal Wholesaler

Internal Wholesaler

Harris Kates, ext. 6346

Harris Kates, ext. 6346

Dan Willoth, Billy Martin, ext. ext. 6622 6865

North NJ

North CA NV

AK North ID MT OR ID WA MT OR WA

Scott Curran, ext. 6883

Austin Marquis, ext. 6334

Ted Welch, ext. 6640

Internal Wholesaler

Internal Wholesaler

Internal Wholesaler

Puerto Rico

MT

NM

Harris Kates, ext. 6346

Kim Schleif, ext. 6428

CT Westchester & Rockland NY

NC

OH

Ron DiGiore, ext. 6873

Kevin McGowan, ext. 6651

Marc Wohltman, ext. 6557

Internal Wholesaler

Internal Wholesaler

Internal Wholesaler

Mike Lambertson, ext. 6430

800-858-8850, ext. 6003

Mike Lambertson, ext. 6430

Upstate NY

Central/East TN

GA North  FL Orlando

Robert Farnsworth, ext. 6358

Matt Rosborough, ext. 6871

Alec Young, ext. 6327

Internal Wholesaler

Internal Wholesaler

Internal Wholesaler

Steve Carr, ext. 6341

SC

Dan Kennelly, ext. 6329

May Reda, ext. 6635

Bryan Leu, ext. 6670

AL AR KY LA MS West TN

IL

AZ Las Vegas San Diego

Ron Gallagher, ext. 6458

Miki Saicic, ext. 6619

Internal Wholesaler

Internal Wholesaler

Faith Andu, ext. 6620

Dave Lorenzo, ext. 6562

MA ME NH RI VT

MI IN & Toledo OH

Reed Gilbert, ext. 6477

Jason Schwartz, ext. 6568

Internal Wholesaler

Internal Wholesaler

Andrew Dans, ext. 6630

Phil Felice, ext. 6489

MN ND SD WI

North TX OK

Tony Grasso, ext. 6643

Michael Skahan, ext. 6626

Internal Wholesaler

Internal Wholesaler

Bryan Leu, ext. 6670

Mike Bachmann, ext. 6641

Los Angeles Orange County CA HI

South NJ PA

For financial professional use only. Not for use with the public.

May 2015 : 29

Class A: SDVAX

Class C: SDVCX

Class W: SDVWX

Select Dividend Growth Portfolio A Rules-Based Approach That Blends Dividend Growth and Value Strategies to Help Enhance Returns The Fund seeks total return by investing in a concentrated portfolio of dividend-paying stocks. It uses a disciplined, rules-based approach to select 40 top-ranking stocks from the Russell 1000 Index based on historical dividend growth, valuation and profitability. This approach is similar to that utilized in our top-selling SunAmerica Focused Dividend Strategy Portfolio.*

Offer Clients a Rules-Based Fund That Can Pay Dividends. Call 800-232-1230 or visit www.safunds.com for details.  hile the Select Dividend Growth Portfolio may be managed in a similar manner to the SunAmerica Focused Dividend Strategy Portfolio and other SunAmerica rules-based funds, its W investment results may not be comparable. The Fund’s investment results may be higher or lower than the investment results of these similar funds. Investing in stocks involves risk, including the possible loss of principal. This material is authorized for use only in its entirety. Please see pages 14–17 for more information on the risks associated with investing in this Fund. *

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 the SunAmerica Sales Desk at 800-858-8850, ext. 6003, or at www.safunds.com. Read the prospectus carefully before investing. Funds are distributed by AIG Capital Services, Inc. S5142FAQ.13 30 : FAQ(5/15) Financial

financial professional use only. Not for use with the public. Advisors’ForQuarterly

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