0001193125-18-077462.txt : 20180309 0001193125-18-077462.hdr.sgml : 20180309 20180309164518 ACCESSION NUMBER: 0001193125-18-077462 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20171231 FILED AS OF DATE: 20180309 DATE AS OF CHANGE: 20180309 EFFECTIVENESS DATE: 20180309 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUNAMERICA SENIOR FLOATING RATE FUND INC CENTRAL INDEX KEY: 0001059040 IRS NUMBER: 043412472 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-08727 FILM NUMBER: 18680707 BUSINESS ADDRESS: STREET 1: HARBORSIDE 5 STREET 2: 185 HUDSON STREET, SUITE 3300 CITY: JERSEY CITY STATE: NJ ZIP: 07311 BUSINESS PHONE: 2013246300 MAIL ADDRESS: STREET 1: HARBORSIDE 5 STREET 2: 185 HUDSON STREET, SUITE 3300 CITY: JERSEY CITY STATE: NJ ZIP: 07311 FORMER COMPANY: FORMER CONFORMED NAME: NORTH AMERICAN SENIOR FLOATING RATE FUND INC DATE OF NAME CHANGE: 19980401 0001059040 S000012952 AIG Senior Floating Rate Fund C000034981 Class A SASFX C000034983 Class C NFRCX C000182636 Class W NFRWX N-CSR 1 d497360dncsr.txt N-CSR ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------- FORM N-CSR ---------- CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-08727 SunAmerica Senior Floating Rate Fund, Inc. -------------------------------------------------- (Exact name of registrant as specified in charter) Harborside 5, 185 Hudson Street, Suite 3300, Jersey City, NJ 07311 ------------------------------------------------------------------ (Address of principal executive offices) (Zip code) John T. Genoy Senior Vice President SunAmerica Asset Management, LLC Harborside 5, 185 Hudson Street, Suite 3300 Jersey City, NJ 07311 ------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (201) 324-6414 Date of fiscal year end: December 31 Date of reporting period: December 31, 2017 ================================================================================ Item 1. Reports to Stockholders ANNUAL REPORT 2017 AIG Senior Floating Rate Fund [GRAPHIC] [LOGO] aig.com/funds Table of Contents SHAREHOLDERS' LETTER.................................... 2 EXPENSE EXAMPLE......................................... 4 STATEMENT OF ASSETS AND LIABILITIES..................... 6 STATEMENT OF OPERATIONS................................. 7 STATEMENT OF CHANGES IN NET ASSETS...................... 8 FINANCIAL HIGHLIGHTS.................................... 9 PORTFOLIO OF INVESTMENTS................................ 10 NOTES TO FINANCIAL STATEMENTS........................... 22 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM. 34 DIRECTORS AND OFFICERS INFORMATION...................... 35 SHAREHOLDER TAX INFORMATION............................. 38 COMPARISON: FUND vs. INDEX.............................. 39
December 31, 2017 ANNUAL REPORT Shareholders' Letter -- (unaudited) Dear Shareholders: We are pleased to present this annual report for the AIG Senior Floating Rate Fund (the "Fund") for the 12 months ended December 31, 2017. Please note that effective February 28, 2017, SunAmerica Mutual Funds was rebranded as AIG Funds, and each Fund's name was changed accordingly. SunAmerica Asset Management, LLC, the investment adviser to the Fund, continues to serve as investment adviser of the Fund and retains its current name. In addition, there was no change in the Fund's investment goals or strategies, portfolio managers or ticker symbols in connection with the rebranding. Overall, fixed income markets generated solid gains during the annual period as bouts of elevated political uncertainty kept government bond yields relatively low. As the year progressed, escalating geopolitical tensions between the U.S. and North Korea and serial disappointments in inflation data helped to contain the modest increase in sovereign yields prompted by central bank policy normalization. Then, during the fourth quarter of 2017, yields on most sovereign bonds were either stable or lower, as optimism about U.S. tax reform and further central bank policy normalization were balanced by ongoing geopolitical tensions and persistently subdued inflation data. In the U.S., yields on longer-term U.S. Treasuries declined, but shorter-term U.S. Treasury yields actually increased. Meanwhile, despite concerns about prospects for retailers, generally solid corporate earnings, improving economic data, a rally in commodity prices in the second-half of 2017, and ongoing demand for yield-producing assets supported credit markets, and spreads tightened. Indeed, globally, most non-government bond sectors outperformed government bonds for the annual period overall, as spreads tightened, led by lower-rated sectors. Most currencies strengthened versus the U.S. dollar through the first three calendar quarters of 2017 as political uncertainty and ongoing skepticism about the U.S. Federal Reserve's (the "Fed") projected interest rate raises weighed on the American currency. In the fourth quarter of the annual period, however, the U.S. dollar fluctuated with news flow such as investigations into Russian influence on the 2016 U.S. elections and the likelihood of tax reform, but ended up stronger against most currencies. Meanwhile, on the monetary policy front, most central banks around the world became incrementally more hawkish during the annual period. The Fed raised interest rates in March, June and December of 2017 and began tapering its asset purchases in October 2017. Strong economic growth and inflation data prompted the Bank of Canada to raise interest rates during July 2017 for the first time in seven years -- and then it did so again in a surprise move less than two months later. Through much of the annual period, the Bank of England (BoE) indicated interest rate increases may be looming for the U.K. to contain surging inflation, despite uncertainty about the post-Brexit growth outlook. Then, during the fourth calendar quarter, the BoE raised its interest rates for the first time in 10 years, noting future rate hikes would depend on the stability of the Brexit transition. The European Central Bank (ECB) announced its intention early in 2017 to continue the pace of its bond purchases through at least December 2017 and pushed back against the notion of initiating interest rate increases prior to the end of its quantitative easing. The ECB then announced in October 2017 a reduction in its monthly asset purchases beginning in January 2018 but extended its purchase program through September 2018. The People's Bank of China raised its open market operations reverse repo rate during the fourth quarter of 2017. The exception was the Bank of Japan, which remained accommodative, re-stating its commitment to maintain a zero-yield policy on 10-year Japanese government bonds. Amidst this backdrop, floating rate loans, as represented by the S&P/LSTA Leveraged Loan Index (the "LLI"),/*/ returned 4.12% during the annual period ended December 31, 2017, outperforming the broad U.S. fixed income market. The Bloomberg Barclays U.S. Aggregate Bond Index/*/ returned 3.54% for the same time period. During the annual period, floating rate loans were able to absorb the volatility associated with increased political uncertainty, a more hawkish Fed and first-half 2017 oil price weakness and benefit from positive U.S. economic growth trends and strong demand for yield-producing assets. 2 December 31, 2017 ANNUAL REPORT Shareholders' Letter -- (unaudited) (continued) The sector's credit fundamentals generally remained stable -- elevated interest coverage helped to balance higher leverage -- and bank loan valuations appeared attractive, in our view. Technicals, or supply/demand factors, generally remained favorable as well. Bank loan mutual funds experienced outflows of $4.0 billion in the fourth quarter of 2017, but saw inflows of $13.5 billion/**/ during the annual period. Issuance of collateralized loan obligations (CLOs), one of the main sources of demand for bank loans, remained strong, with $35.6 billion priced in the fourth quarter of 2017, bringing full-year 2017 issuance to $118 billion, the strongest since 2014.+ The trailing 12-month loan default rate, examined by principal amount, increased to 1.84% at the end of the annual period, as compared to 1.49% at the end of 2016.++ In terms of quality, as measured by the LLI, lower quality loans outperformed their higher quality counterparts. On the following pages, you will find a brief discussion regarding the Fund's annual results. You will also find financial statements and portfolio information for the Fund for the annual period ended December 31, 2017. As always, we remain diligent in the management of your assets. We value your ongoing confidence in us and look forward to serving your investment needs in the future. Sincerely, THE AIG SENIOR FLOATING RATE FUND PORTFOLIO MANAGER Jeffrey W. Heuer Wellington Management Company LLP -------- Past performance is no guarantee of future results. * The S&P/LSTA Leveraged Loan Index (LLI) reflects the market-weighted performance of U.S. dollar-denominated institutional leveraged loans. The LLI is the only domestic leveraged loan index that utilizes real-time market weightings, spreads and interest payments. The Bloomberg Barclays U.S. Aggregate Bond Index represents securities that are U.S. domestic, taxable and dollar denominated. The index covers components for government and corporate securities, mortgage pass-through securities and asset-backed securities. Indices are not managed and an investor cannot invest directly into an index. ** Source: Lipper, Inc. + Source: S&P Leveraged Commentary & Data ++ Source: JP Morgan The Fund is not a money market fund and its net asset value may fluctuate. Investments in loans involve certain risks including nonpayment of principal and interest; collateral impairment; non-diversification and borrower industry concentration; and lack of an active trading market, in certain cases, which may impair the Fund's ability to obtain full value for loans sold. The Fund may invest all or substantially all of its assets in loans or other securities (e.g., unsecured loans or high yield securities) that are rated below investment grade, or in comparable unrated securities. Credit risks include the possibility of a default on the loan or bankruptcy of the borrower. The value of these loans is subject to a greater degree of volatility in response to interest rate fluctuations. 3 SunAmerica Senior Floating Rate Fund, Inc. EXPENSE EXAMPLE -- December 31, 2017 -- (unaudited) Disclosure of Portfolio Expenses in Shareholder Reports As a shareholder of the AIG Senior Floating Rate Fund (the "Fund"), you may incur two types of costs: (1) transaction costs, including sales charges on purchase payments and contingent deferred sales charges and (2) ongoing costs, including management fees, distribution and account maintenance fees, and other Fund expenses. The example set forth below is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at July 1, 2017 and held until December 31, 2017. Actual Expenses The "Actual" section of the table provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the column under the heading entitled "Expenses Paid During the Six Months Ended December 31, 2017" to estimate the expenses you paid on your account during this period. The "Expenses Paid During the Six Months Ended December 31, 2017" column and the "Annualized Expense Ratio" column do not include small account fees that may be charged if your account balance is below $500 ($250 for retirement plan accounts). In addition, the "Expenses Paid During the Six Months Ended December 31, 2017" column and the "Annualized Expense Ratio" column do not include administrative or other fees that may apply to qualified retirement plan accounts and accounts held through financial institutions. See the Fund's prospectus, your retirement plan documents and/or materials from your financial adviser, for a full description of these fees. Had these fees been included, the "Expenses Paid During the Six Months Ended December 31, 2017" column would have been higher and the "Ending Account Value" column would have been lower. Hypothetical Example for Comparison Purposes The "Hypothetical" section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an annual rate of return of 5% before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in this Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. The "Expenses Paid During the Six Months Ended December 31, 2017" column and the "Annualized Expense Ratio" column do not include small account fees that may be charged if your account balance is below $500 ($250 for retirement plan accounts). In addition, the "Expenses Paid During the Six Months Ended December 31, 2017" column and the "Annualized Expense Ratio" column do not include administrative or other fees that may apply to qualified retirement plan accounts and accounts held through financial institutions. See the Fund's prospectus, your retirement plan document and/or materials from your financial adviser for full description of these fees. Had these fees been included, the "Expenses Paid During the Six Months Ended December 31, 2017" column would have been higher and the "Ending Account Value" column would have been lower. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, including sales charges on purchase payments, contingent deferred sales charges and administrative fees, if applicable to your account. Please refer to the Fund's prospectus, qualified retirement plan document and/or materials from your financial adviser, for more information. Therefore, the "Hypothetical" example is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs and other fees were included, your costs would have been higher. 4 SunAmerica Senior Floating Rate Fund, Inc. EXPENSE EXAMPLE -- December 31, 2017 -- (unaudited) (continued)
Actual Hypothetical ---------------------------------------------------- ---------------------------------------------------- Ending Ending Account Account Value Expenses Paid Value using Expenses Paid Beginning Using Actual During the Beginning a Hypothetical 5% During the Account Value Returns at Six Months Ended Account Value Annual Return at Six Months Ended at July 1, 2017 December 31, 2017 December 31, 2017* at July 1, 2017 December 31, 2017 December 31, 2017* --------------- ----------------- ------------------ --------------- ----------------- ------------------ AIG Senior Floating Rate Fund#+ Class A.......... $1,000.00 $1,022.00 $7.39 $1,000.00 $1,017.90 $7.38 Class C.......... $1,000.00 $1,020.46 $8.91 $1,000.00 $1,016.38 $8.89 Class W.......... $1,000.00 $1,024.28 $6.38 $1,000.00 $1,018.90 $6.36
Annualized Expense Ratio* ---------- AIG Senior Floating Rate Fund#+ Class A.......... 1.45% Class C.......... 1.75% Class W.......... 1.25%
-------- * Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by 184 days then divided by 365 days (to reflect the one-half year period). These ratios do not reflect transaction costs, including sales charges on purchase payments, contingent deferred sales charges, small account fees and administrative fees, if applicable to your account. Please refer to your Prospectus, your qualified retirement plan document and/or materials from your financial advisor for more information. # During the stated period, the investment adviser either waived a portion of or all of the fees and assumed a portion of or all expenses for the Fund. As a result, if these fees and expenses had not been waived or assumed, the "Actual/Hypothetical Ending Account Value" would have been lower and the "Actual/Hypothetical Expenses Paid During the Six Months Ended December 31, 2017" and the "Annualized Expense Ratio" would have been higher. + See Note 1 5 SunAmerica Senior Floating Rate Fund, Inc. STATEMENT OF ASSETS AND LIABILITIES -- December 31, 2017
AIG Senior Floating Rate Fund+ ------------- ASSETS: Investments at value (unaffiliated)*............................................ $245,825,169 Repurchase agreement (cost approximates value).................................. 6,500,000 Cash............................................................................ 1,069,459 Foreign cash*................................................................... 2,170,083 Receivable for: Fund shares sold............................................................... 111,589 Dividends and interest......................................................... 1,317,924 Investments sold............................................................... 358,725 Investments sold on an extended settlement basis............................... 4,296,659 Prepaid expenses and other assets............................................... 6,226 Due from investment adviser for expense reimbursements/fee waivers.............. 121,730 Unrealized appreciation on forward foreign currency contracts................... 11,686 ------------ Total assets................................................................... 261,789,250 ------------ LIABILITIES: Payable for: Fund shares redeemed........................................................... 389,258 Investments purchased.......................................................... -- Investments purchased on an extended settlement basis.......................... 11,420,125 Investment advisory and management fees........................................ 179,922 Distribution and account maintenance fees...................................... 116,790 Administration fees............................................................ 42,334 Transfer agent fees and expenses............................................... 58,948 Directors' fees and expenses................................................... 175 Other accrued expenses......................................................... 265,899 Dividends payable............................................................... 149,389 Commitments (Note 10)........................................................... 66,667 Unrealized depreciation on forward foreign currency contracts................... 61,907 ------------ Total liabilities.............................................................. 12,751,414 ------------ Net assets................................................................... $249,037,836 ============ NET ASSETS REPRESENTED BY: Common stock, $.01 par value.................................................... $ 307,794 Additional paid-in capital...................................................... 277,122,167 ------------ 277,429,961 Accumulated undistributed net investment income (loss).......................... (37,817) Accumulated undistributed net realized gain (loss) on investments and foreign exchange transactions.......................................................... (23,235,829) Unrealized appreciation (depreciation) on investments........................... (5,034,888) Unrealized foreign exchange gain (loss) on other assets and liabilities......... (83,591) ------------ Net Assets................................................................... $249,037,836 ============ Class A: Net assets...................................................................... $ 93,345,556 Shares outstanding.............................................................. 11,533,105 Net asset value and redemption price per share.................................. $ 8.09 Maximum sales charge (3.75% of offering price).................................. 0.32 ------------ Maximum offering price to public................................................ $ 8.41 ============ Class C: Net assets...................................................................... $135,901,867 Shares outstanding.............................................................. 16,804,618 Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charges).................................. $ 8.09 ============ Class W: Net assets...................................................................... $ 19,790,413 Shares outstanding.............................................................. 2,441,698 Net asset value, offering and redemption price per share........................ $ 8.11 ============ *COST Investment securities (unaffiliated)........................................... $250,860,057 ============ Foreign Cash................................................................... $ 2,174,424 ============
-------- + See Note 1 See Notes to Financial Statements 6 SunAmerica Senior Floating Rate Fund, Inc. STATEMENT OF OPERATIONS -- For the year ended December 31, 2017
AIG Senior Floating Rate Fund+ ------------- INVESTMENT INCOME: Interest (unaffiliated)........................................................... $12,836,161 Dividends (unaffiliated).......................................................... 31,271 Facility and other fee income (Note 2)............................................ 1,115,795 ----------- Total investment income........................................................ $13,983,227 ----------- EXPENSES: Investment advisory and management fees........................................... 2,316,082 Administration fees............................................................... 544,960 Distribution and account maintenance fees: Class A......................................................................... 408,223 Class C......................................................................... 1,102,689 Service fees: Class W......................................................................... 9,427 Transfer agent fees and expenses: Class A......................................................................... 276,843 Class C......................................................................... 339,722 Class W......................................................................... 17,390 Registration fees: Class A......................................................................... 28,174 Class C......................................................................... 31,156 Class W......................................................................... 3,518 Accounting service fees........................................................... 22,910 Custodian and accounting fees..................................................... 97,621 Reports to shareholders........................................................... 72,915 Audit and tax fees................................................................ 127,081 Legal fees........................................................................ 79,827 Directors' fees and expenses...................................................... 44,302 Other expenses.................................................................... 43,316 ----------- Total expenses before fee waivers and expense reimbursements................... 5,566,156 Fees waived and expenses reimbursed by investment adviser (Note 5)............. (1,186,147) ----------- Net expenses................................................................... 4,380,009 ----------- Net investment income (loss)...................................................... 9,603,218 ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES: Net realized gain (loss) on: Investments (unaffiliated)...................................................... (2,518,110) Forward contracts............................................................... (144,733) Net realized foreign exchange gain (loss) on other assets and liabilities......... 36,366 ----------- Net realized gain (loss) on investments and foreign currencies.................... (2,626,477) ----------- Change in unrealized appreciation (depreciation) on: Investments (unaffiliated)...................................................... 3,903,864 Forward contracts............................................................... (40,197) Change in unrealized foreign exchange gain (loss) on other assets and liabilities. (20,827) ----------- Net unrealized gain (loss) on investments and foreign currencies.................. 3,842,840 ----------- Net realized and unrealized gain (loss) on investments and foreign currencies..... 1,216,363 ----------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $10,819,581 ===========
-------- + See Note 1 See Notes to Financial Statements 7 SunAmerica Senior Floating Rate Fund, Inc. STATEMENT OF CHANGES IN NET ASSETS
AIG Senior Floating Rate Fund* -------------------------- For the For the year year ended ended December 31, December 31, 2017 2016 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................................................... $ 9,603,218 $ 10,378,060 Net realized gain (loss) on investments and foreign currencies......................... (2,626,477) (1,667,515) Net unrealized gain (loss) on investments and foreign currencies....................... 3,842,840 16,908,218 ------------ ------------ Net Increase (decrease) in net assets resulting from operations.......................... 10,819,581 25,618,763 ------------ ------------ Distributions to Shareholders from: Net investment income (Class A)........................................................ (4,380,612) (4,365,132) Net investment income (Class C)........................................................ (4,997,645) (5,735,535) Net investment income (Class W)........................................................ (251,108) -- ------------ ------------ Total distributions to shareholders...................................................... (9,629,365) (10,100,667) ------------ ------------ Net increase (decrease) in net assets resulting from capital share transactions (Note 3). (39,480,646) (14,800,758) ------------ ------------ Total increase (decrease) in net assets.................................................. (38,290,430) 717,338 NET ASSETS: Beginning of period...................................................................... 287,328,266 286,610,928 ------------ ------------ End of period+........................................................................... $249,037,836 $287,328,266 ============ ============ +Includes accumulated undistributed net investment income (loss)......................... $ (37,817) $ (60,351) ============ ============
-------- * See Note 1 See Notes to Financial Statements 8 SunAmerica Senior Floating Rate Fund, Inc. FINANCIAL HIGHLIGHTS
AIG Senior Floating Rate Fund+ ------------------------------ Net gain (loss) on Net investments Dividends Net Net Ratio of Asset (both Dividends from net Asset Assets, expenses Value, Net realized Total from from net realized Total Value, end of to average Period beginning investment and investment investment gains on Distri- end of Total period net Ended of period income(1) unrealized) operations income investments butions period Return(2) (000's) assets(3) ------------ --------- ---------- ----------- ---------- ---------- ----------- ------- ------ --------- -------- ---------- Class A ------- 12/31/13 $8.26 $0.33 $ 0.08 $ 0.41 $(0.33) $ -- $(0.33) $8.34 5.08% $195,309 1.45% 12/31/14 8.34 0.31 (0.29) 0.02 (0.31) -- (0.31) 8.05 0.20 150,966 1.45 12/31/15 8.05 0.33 (0.44) (0.11) (0.33) -- (0.33) 7.61 (1.42) 114,375 1.45 12/31/16 7.61 0.31 0.44 0.75 (0.30) -- (0.30) 8.06 10.08 131,640 1.45 12/31/17 8.06 0.30 0.03 0.33 (0.30) -- (0.30) 8.09 4.14 93,346 1.45 Class C ------- 12/31/13 $8.25 $0.30 $ 0.10 $ 0.40 $(0.31) $ -- $(0.31) $8.34 4.89% $241,976 1.75% 12/31/14 8.34 0.29 (0.30) (0.01) (0.28) -- (0.28) 8.05 (0.10) 217,174 1.75 12/31/15 8.05 0.31 (0.45) (0.14) (0.31) -- (0.31) 7.60 (1.85) 172,236 1.75 12/31/16 7.60 0.29 0.44 0.73 (0.28) -- (0.28) 8.05 9.76 155,688 1.75 12/31/17 8.05 0.28 0.03 0.31 (0.27) -- (0.27) 8.09 3.96 135,902 1.75 Class W ------- 04/20/17 @ - 12/31/17 $8.11 $0.25 $(0.03) $ 0.22 $(0.22) $ -- $(0.22) $8.11 2.69% $ 19,790 1.25%(4)
Ratio of net investment income to average Portfolio net assets(3) Turnover ------------- --------- 3.98% 84% 3.73 65 4.14 48 3.95 60 3.69 68 3.68% 84% 3.44 65 3.84 48 3.68 60 3.38 68 3.72%(4) 68%
-------- (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load but does include expense reimbursements. (3)Net of the following expense waivers and/or reimbursements, if applicable (based on average daily net assets) (see Note 5):
12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 -------- -------- -------- -------- -------- Class A............. 0.34% 0.32% 0.34% 0.33% 0.38% Class C............. 0.43 0.41 0.44 0.42 0.48 Class W............. -- -- -- -- 0.50(4)
(4)Annualized @ Inception date of class. + See Note 1 See Notes to Financial Statements 9 AIG Senior Floating Rate Fund++ PORTFOLIO PROFILE -- December 31, 2017 -- (unaudited) Industry Allocation* Commercial Services & Supplies.............................. 9.7% Hotels, Restaurants & Leisure............................... 7.6 Oil, Gas & Consumable Fuels................................. 7.6 Media....................................................... 7.3 IT Services................................................. 6.2 Health Care Providers & Services............................ 4.9 Machinery................................................... 3.9 Software.................................................... 3.5 Insurance................................................... 3.0 Food Products............................................... 2.9 Chemicals................................................... 2.9 Containers & Packaging...................................... 2.7 Repurchase Agreements....................................... 2.6 Pharmaceuticals............................................. 2.6 Building Products........................................... 2.1 Diversified Telecommunication Services...................... 2.0 Food & Staples Retailing.................................... 1.9 Specialty Retail............................................ 1.8 Household Products.......................................... 1.7 Capital Markets............................................. 1.6 Life Sciences Tools & Services.............................. 1.6 Diversified Financial Services.............................. 1.6 Energy Equipment & Services................................. 1.5 Industrial Conglomerates.................................... 1.5 Health Care Equipment & Supplies............................ 1.5 Real Estate Investment Trusts............................... 1.3 Household Durables.......................................... 1.1 Metals & Mining............................................. 1.1 Wireless Telecommunication Services......................... 1.0 Consumer Finance............................................ 1.0 Banks....................................................... 0.9 Registered Investment Companies............................. 0.8 Internet & Direct Marketing Retail.......................... 0.8 Internet Software & Services................................ 0.7 Construction Materials...................................... 0.6 Aerospace & Defense......................................... 0.6 Professional Services....................................... 0.5 Leisure Equipment & Products................................ 0.5 Electric Utilities.......................................... 0.5 Road & Rail................................................. 0.5 Personal Products........................................... 0.4 Real Estate Management & Development........................ 0.4 Distributors................................................ 0.4 Air Freight & Logistics..................................... 0.4 Automobiles................................................. 0.4 Electrical Equipment........................................ 0.2 Multiline Retail............................................ 0.2 Semiconductors & Semiconductor Equipment.................... 0.2 Construction & Engineering.................................. 0.2 Electronic Equipment, Instruments & Components.............. 0.2 Water Utilities............................................. 0.1 Auto Components............................................. 0.1 Multi Utilities............................................. 0.0 ----- 101.3% =====
Credit Quality+# Baa3........................................................ 1.0% Ba3......................................................... 18.2 Ba2......................................................... 11.3 Ba1......................................................... 3.7 B3.......................................................... 7.9 B2.......................................................... 18.5 B1.......................................................... 28.2 Caa2........................................................ 3.1 Caa1........................................................ 5.2 Ca.......................................................... 0.7 Not Rated@ ................................................. 2.2 ----- 100.0% =====
-------- * Calculated as a percentage of net assets. @ Represents debt issues that either have no rating, or the rating is unavailable from the data source. + Source: Moody's # Calculated as a percentage of total debt issues, excluding short-term securities. ++ See Note 1. 10 AIG Senior Floating Rate Fund++ PORTFOLIO OF INVESTMENTS -- December 31, 2017
Ratings/(1)/ ------------ Interest Reference Maturity Principal Industry Description Type Moody's S&P Rate Rate Date/(2)/ Amount** ------------------------------------------------------------------------------------------------------------------------- LOANS(3)(4) -- 90.3% Aerospace & Defense -- 0.6% Transdigm Group, Inc....................... BTL-F Ba2 B+ 4.32% 1 ML+2.75% 06/09/2023 $ 914,159 Transdigm Group, Inc....................... BTL-F Ba2 B+ 4.44 3 ML+2.75 06/09/2023 476,905 Air Freight & Logistics -- 0.4% Air Medical Group Holdings LLC............. BTL-B B1 B 4.94 3 ML+3.25 04/28/2022 702,099 Air Medical Group Holdings LLC............. BTL B1 B TBD 09/07/2024 297,619 Auto Components -- 0.1% Belron SA.................................. BTL-B Ba3 BB 2.75 3 ME+2.75 11/07/2024 EUR 140,000 Belron SA.................................. BTL-B Ba3 BB 3.89 3 ML+2.50 11/07/2024 125,000 Automobiles -- 0.4% Navistar International Corp................ 1st Lien Ba3 B+ 4.90 1 ML+3.50 11/01/2024 935,000 Building Products -- 1.6% Beacon Roofing Supply, Inc................. BTL-B B2 BB+ 6.25 USFRBPLR+1.75 10/01/2022 1,092,700 Beacon Roofing Supply, Inc................. BTL-B B1 BB+ TBD 01/02/2025 450,000 HD Supply, Inc............................. BTL-B4 Ba3 BB+ 4.19 3 ML+2.50 10/17/2023 1,336,525 Summit Materials LLC....................... BTL Ba2 BB+ 3.82 1 ML+2.25 11/11/2024 910,000 Capital Markets -- 1.6% AlixPartners LLC........................... BTL-B B2 B+ 4.44 3 ML+2.75 04/04/2024 1,702,137 Fortress Investment Group LLC.............. BTL-B Baa3 BB- 2.75 1 ML+2.75 12/27/2022 750,000 Russell Investments U.S. Institutional Holdco, Inc............................... BTL Ba2 BB 5.94 3 ML+4.25 06/01/2023 1,625,250 Chemicals -- 2.9% Allnex (Lux) & Cy SCA...................... BTL-B2 B1 B 4.71 3 ML+3.25 09/13/2023 466,932 Allnex USA, Inc............................ BTL-B3 B1 B 4.71 3 ML+3.25 09/13/2023 351,782 Avantor, Inc............................... 1st Lien B2 B 5.51 3 ML+4.00 11/21/2024 500,000 Chemours Co................................ BTL-B1 Baa3 BBB- 4.07 1 ML+2.50 05/12/2022 356,449 DuBois Chemicals, Inc...................... 1st Lien B1 B- 5.32 1 ML+3.75 03/15/2024 926,667 DuBois Chemicals, Inc.(7).................. Delayed Draw B1 B- 1.00 03/15/2024 66,667 Gates Global, Inc.......................... BTL-B B2 B+ 4.69 3 ML+3.00 04/01/2024 985,687 MacDermid, Inc............................. BTL-B6 B2 BB- 4.57 1 ML+3.00 06/07/2023 822,087 Minerals Technologies, Inc................. BTL-B Ba2 BB+ 3.73 1 ML+2.25 02/14/2024 629,673 Minerals Technologies, Inc................. BTL-B Ba2 BB+ 3.93 3 ML+2.25 02/14/2024 263,462 Tronox Blocked Borrower LLC................ BTL-B Ba3 BB- 4.69 3 ML+3.00 09/22/2024 289,846 Tronox Finance LLC......................... BTL-B Ba3 BB- 4.69 3 ML+3.00 09/22/2024 668,876 Univar, Inc................................ BTL-B3 B1 BB 4.07 1 ML+2.50 07/01/2024 744,702 Commercial Services & Supplies -- 8.4% ADS Waste Holdings, Inc.................... BTL B1 BB+ 3.74 1 WL+2.25 11/10/2023 1,030,185 Aramark Services, Inc...................... BTL-B1 Ba1 BBB- TBD 03/11/2025 640,000 Ascend Learning LLC (Alpine)............... BTL-B B2 B+ 4.57 1 ML+3.00 07/12/2024 683,288 Avolon Holdings, Ltd....................... BTL-B Ba1 BBB- 3.75 1 ML+2.25 04/03/2022 737,285 AVSC Holding Corp.......................... BTL B2 B 4.85-4.88 3 ML+3.50 04/27/2024 1,930,682 Berlin Packaging LLC....................... BTL-B B2 B 4.62-4.82 1 ML+3.25 10/01/2021 309,711 Berlin Packaging LLC....................... BTL-B B2 B 4.95 3 ML+3.25 10/01/2021 183,951 Brand Energy and Infrastructure Services, Inc....................................... BTL-B B3 B 5.61-5.63 3 ML+4.25 06/21/2024 2,238,750 Brickman Group Holdings, Inc............... 1st Lien B2 B 4.38 3 ML+3.00 12/18/2020 761,559 Brickman Group Holdings, Inc............... 1st Lien B2 B 4.49 1 ML+3.00 12/18/2020 621,087 Brickman Group Holdings, Inc............... 2nd Lien Caa1 CCC+ 7.99 1 ML+6.50 12/17/2021 1,048,979
Value Industry Description (Note 2) -------------------------------------------------------- LOANS(3)(4) -- 90.3% Aerospace & Defense -- 0.6% Transdigm Group, Inc....................... $ 915,225 Transdigm Group, Inc....................... 477,462 ---------- 1,392,687 ---------- Air Freight & Logistics -- 0.4% Air Medical Group Holdings LLC............. 698,463 Air Medical Group Holdings LLC............. 298,204 ---------- 996,667 ---------- Auto Components -- 0.1% Belron SA.................................. 168,959 Belron SA.................................. 126,172 ---------- 295,131 ---------- Automobiles -- 0.4% Navistar International Corp................ 938,506 ---------- Building Products -- 1.6% Beacon Roofing Supply, Inc................. 1,096,570 Beacon Roofing Supply, Inc................. 450,964 HD Supply, Inc............................. 1,345,992 Summit Materials LLC....................... 914,550 ---------- 3,808,076 ---------- Capital Markets -- 1.6% AlixPartners LLC........................... 1,710,294 Fortress Investment Group LLC.............. 757,969 Russell Investments U.S. Institutional Holdco, Inc............................... 1,637,439 ---------- 4,105,702 ---------- Chemicals -- 2.9% Allnex (Lux) & Cy SCA...................... 469,851 Allnex USA, Inc............................ 353,981 Avantor, Inc............................... 501,964 Chemours Co................................ 358,826 DuBois Chemicals, Inc...................... 928,983 DuBois Chemicals, Inc.(7).................. 66,833 Gates Global, Inc.......................... 990,154 MacDermid, Inc............................. 826,198 Minerals Technologies, Inc................. 634,920 Minerals Technologies, Inc................. 265,657 Tronox Blocked Borrower LLC................ 291,399 Tronox Finance LLC......................... 672,459 Univar, Inc................................ 747,145 ---------- 7,108,370 ---------- Commercial Services & Supplies -- 8.4% ADS Waste Holdings, Inc.................... 1,032,025 Aramark Services, Inc...................... 642,933 Ascend Learning LLC (Alpine)............... 686,533 Avolon Holdings, Ltd....................... 730,966 AVSC Holding Corp.......................... 1,925,855 Berlin Packaging LLC....................... 311,259 Berlin Packaging LLC....................... 184,871 Brand Energy and Infrastructure Services, Inc....................................... 2,245,280 Brickman Group Holdings, Inc............... 765,155 Brickman Group Holdings, Inc............... 624,020 Brickman Group Holdings, Inc............... 1,052,163
11 AIG Senior Floating Rate Fund++ PORTFOLIO OF INVESTMENTS -- December 31, 2017 -- (continued)
Ratings/(1)/ ------------ Interest Reference Maturity Principal Value Industry Description Type Moody's S&P Rate Rate Date/(2)/ Amount** (Note 2) ------------------------------------------------------------------------------------------------------------------------------ Commercial Services & Supplies (continued) Camelot UK Holdco, Ltd.................... 1st Lien B2 BB- 4.82% 1 ML+3.25% 10/03/2023 $1,017,176 $ 1,021,627 Casella Waste Systems, Inc................ BTL-B1 B1 B+ 3.99 1 ML+2.50 10/17/2023 1,079,100 1,082,472 Clean Harbors, Inc........................ BTL-B Baa3 BBB- 3.57 1 ML+2.00 06/27/2024 751,225 755,920 Element Materials Tech Group.............. BTL-B B1 B 5.19 3 ML+3.50 06/28/2024 575,000 577,396 Fly Funding II SARL....................... BTL Ba2 BB+ 3.40 3 ML+2.00 02/09/2023 1,195,286 1,195,286 Hayward Acquisition, Inc.................. 1st Lien B3 B 5.07 1 ML+3.50 08/05/2024 304,238 304,808 H.B. Fuller Company....................... BTL-B Ba2 BB+ 3.75 1 ML+2.25 10/20/2024 1,640,888 1,645,902 KAR Auction Services, Inc................. BTL-B5 Ba2 BB- 4.25 3 ML+2.50 03/09/2023 435,930 437,928 Nets Holding AS........................... BTL B1 B TBD 11/27/2024 905,000 1,087,221 Plastipak Holdings, Inc................... BTL-B Ba3 BB- 4.45 3 ML+2.75 10/14/2024 633,413 636,844 Sedgwick CMS Holdings, Inc................ 2nd Lien Caa2 CCC+ 7.32 1 ML+5.75 02/28/2022 1,465,000 1,468,663 Weight Watchers International, Inc........ BTL Ba3 B 6.23 1 ML+4.75 11/29/2024 545,000 546,874 ----------- 20,962,001 ----------- Construction & Engineering -- 0.2% Pike Corp................................. BTL B2 B 5.07 1 ML+3.50 09/20/2024 472,628 478,388 ----------- Construction Materials -- 0.6% Quikrete Companies, Inc................... 1st Lien B1 BB- 4.32 1 ML+2.75 11/15/2023 1,403,846 1,405,601 ----------- Consumer Finance -- 0.7% Vantiv LLC................................ BTL-B Ba2 BBB- 3.48 1 ML+2.00 08/09/2024 840,000 844,083 Vantiv LLC................................ BTL-B1 Ba2 BBB- TBD 03/31/2025 235,000 235,808 Vantiv LLC................................ BTL-B Ba2 BBB- 3.48 1 ML+2.00 10/14/2023 659,764 663,063 ----------- 1,742,954 ----------- Containers & Packaging -- 2.1% Berry Plastics Holding Corp............... BTL-M Ba3 BBB- 3.68-3.82 1 ML+2.25 10/01/2022 2,373,202 2,381,361 Flex Acquisition Co., Inc................. BTL B1 B 4.34 3 ML+3.00 12/29/2023 1,542,250 1,549,318 ProAmpac PG Borrower LLC.................. 1st Lien B2 B 4.88-5.00 1 ML+3.50 11/18/2023 643,629 648,457 ProAmpac PG Borrower LLC.................. 1st Lien B2 B 4.94 3 ML+3.50 11/18/2023 243,898 245,727 ProAmpac PG Borrower LLC.................. 1st Lien B2 B 7.00 USFRBPLR+2.50 11/18/2023 2,058 2,073 ProAmpac PG Borrower LLC(5)............... 2nd Lien Caa2 CCC+ 9.94 3 ML+8.50 11/18/2024 385,000 388,850 ----------- 5,215,786 ----------- Distributors -- 0.4% ABC Supply Co., Inc....................... BTL-B B1 BB+ 4.07 1 ML+2.50 10/31/2023 1,002,895 1,006,761 ----------- Diversified Financial Services -- 1.3% Duff & Phelps Corporation................. 1st Lien B2 B 4.94 3 ML+3.25 10/14/2024 430,000 434,300 GreenSky Holdings, Inc.................... BTL B1 B+ 5.63 1 ML+4.00 08/26/2024 1,995,000 1,999,987 NAB Holdings LLC.......................... BTL-B B2 B 4.82 1 ML+3.25 07/01/2024 746,250 747,183 ----------- 3,181,470 ----------- Diversified Telecommunication Services -- 2.0% Altice Financing SA....................... 1st Lien B1 BB- 4.11 3 ML+2.75 01/31/2026 1,290,000 1,260,169 Lumos Networks Operating Company.......... BTL B2 B TBD 11/17/2024 689,985 691,422 Lumos Networks Operating Company.......... 1st Lien B2 B 4.82 1 ML+3.25 11/17/2024 704,511 705,978 Numericable Group SA...................... BTL-B12 B1 B+ 4.35 3 ML+3.00 01/31/2026 1,509,290 1,452,692 Telenet Bidco NV.......................... BTL-AL Ba3 BB- TBD 03/02/2026 300,000 300,825 UPC Financing Partnership................. BTL-AR Ba3 BB 3.98 1 ML+2.50 01/15/2026 500,000 499,469 ----------- 4,910,555 ----------- Electric Utilities -- 0.5% Helix Gen Funding LLC..................... BTL Ba2 BB 5.44 3 ML+3.75 06/02/2024 1,216,037 1,218,698 ----------- Electrical Equipment -- 0.2% WireCo WorldGroup, Inc.................... 1st Lien Caa1 B+ 6.98 3 ML+5.50 09/30/2023 617,188 619,502 ----------- Electronic Equipment, Instruments & Components -- 0.2% Ortho Clinical Diagnostics SA............. BTL B1 B- 5.44 3 ML+3.75 06/30/2021 463,002 463,653 -----------
12 AIG Senior Floating Rate Fund++ PORTFOLIO OF INVESTMENTS -- December 31, 2017 -- (continued)
Ratings/(1)/ ------------ Interest Reference Maturity Principal Industry Description Type Moody's S&P Rate Rate Date/(2)/ Amount** ------------------------------------------------------------------------------------------------------------------------ Energy Equipment & Services -- 1.1% CIRCOR International, Inc................. 1st Lien B1 B+ 4.93% 3 ML+3.50% 11/20/2024 $1,440,000 Paragon Offshore, Ltd.(5)(14)............. BTL-B NR NR 7.35 USFRBPLR+1.75 07/18/2022 42,763 Paragon Offshore, Ltd.(5)(6)(9)+.......... Escrow Holding NR NR 6.00 07/18/2021 4,988 Seadrill Partners Finco LLC............... BTL-B Caa2 CCC+ 4.69 3 ML+3.00 02/21/2021 937,558 Techem GmbH............................... BTL-B Ba3 BB- TBD 10/02/2024 500,000 Food & Staples Retailing -- 1.9% Albertson's Holdings LLC.................. BTL-B4 Ba2 BB 4.32 1 ML+2.75 08/25/2021 910,465 Rite Aid Corp............................. BTL B2 BB- 5.37 1 WL+3.88 06/21/2021 1,230,000 Rite Aid Corp............................. 2nd Lien B2 BB- 6.24 1 WL+4.75 08/21/2020 1,055,000 SF CC Intermediate Holdings, Inc.......... BTL Caa1 B 5.19 3 ML+3.50 11/15/2022 575,000 U.S. Foods, Inc........................... BTL B1 BBB- 4.07 1 ML+2.50 06/27/2023 995,111 Food Products -- 2.9% B&G Foods, Inc............................ BTL-B Ba2 BB+ 3.57 1 ML+2.00 11/02/2022 500,421 Hearthside Food Solutions LLC............. BTL-B B1 B 4.57 1 ML+3.00 06/02/2021 1,095,833 Hostess Brands, Inc....................... BTL B1 BB- 3.82 1 ML+2.25 08/03/2022 2,085,394 JBS USA LLC............................... BTL-B B1 BB- 4.10 3 ML+2.50 10/30/2022 579,989 Pinnacle Operating Corp.(5)(13)........... BTL-B2 Caa1 NR 8.82 1 ML+5.50 11/15/2021 744,424 Post Holdings, Inc........................ BTL-B Ba2 BB- 3.82 1 ML+2.25 05/24/2024 2,318,350 Health Care Equipment & Supplies -- 1.5% Immucor, Inc.............................. BTL-B2 B1 B- 6.57 1 ML+5.00 06/15/2021 991,443 Kinetic Concepts, Inc..................... BTL-E1 B1 B 4.94 3 ML+3.25 02/02/2024 835,800 Sterigenics-Nordion Holdings LLC.......... BTL-B B1 B 4.57 1 ML+3.00 05/15/2022 1,862,472 Health Care Providers & Services -- 4.9% American Renal Holdings, Inc.............. BTL-B B2 B+ 4.82 1 ML+3.25 06/14/2024 554,578 CHS/Community Health Systems, Inc......... BTL-H Ba3 B+ 4.48 3 ML+3.00 01/27/2021 676,432 Davis Vision, Inc......................... 1st Lien B1 B 4.49 3 ML+3.00 11/01/2024 700,000 DuPage Medical Group, Ltd................. 1st Lien B1 B 4.42 3 ML+3.00 08/15/2024 932,662 DuPage Medical Group, Ltd................. 2nd Lien Caa1 CCC+ 8.42 3 ML+7.00 08/15/2025 765,000 Envision Healthcare Corp.................. BTL-B Ba3 BB- 4.57 1 ML+3.00 12/01/2023 997,541 Genoa, a QoL Healthcare Co. LLC........... 1st Lien B1 B 4.82 1 ML+3.25 10/28/2023 928,285 Genoa, a QoL Healthcare Co. LLC(5)........ 2nd Lien Caa1 CCC+ 9.57 1 ML+8.00 10/25/2024 500,000 Healogics, Inc.(5)........................ 1st Lien B3 B- 5.75 3 ML+4.25 07/01/2021 977,854 MPH Acquisition Holdings LLC.............. BTL-B B1 B+ 4.69 3 ML+3.00 06/07/2023 2,610,396 Opal Acquisition, Inc..................... BTL-B B3 B- 5.33-5.69 3 ML+4.00 11/27/2020 595,558 Surgery Center Holdings, Inc.............. 1st Lien B1 B 4.82 1 ML+3.25 09/02/2024 548,625 Team Health, Inc.......................... 1st Lien B1 B 4.32 1 ML+2.75 02/06/2024 495,616 U.S. Renal Care, Inc...................... BTL-B B2 B 5.94 3 ML+4.25 12/31/2022 1,003,646 Hotels, Restaurants & Leisure -- 7.6% Aristocrat Leisure, Ltd................... BTL-B Ba1 BB+ TBD 10/19/2024 610,000 Aristocrat Leisure, Ltd................... BTL-B2 Ba1 BB+ 3.36 3 ML+2.00 10/20/2021 642,851 Boyd Gaming Corp.......................... BTL-B2 Ba3 BB 3.98 1 WL+2.50 09/15/2023 953,038 Caesars Entertainment Operating Co., Inc.. BTL Ba3 BB 4.07 1 ML+2.50 10/06/2024 2,145,000 Caesars Resort Collection LLC............. BTL-B Ba3 BB 4.34 3 ML+2.75 12/22/2024 3,450,000 CityCenter Holdings LLC................... BTL-B B1 BB- 4.07 1 ML+2.50 04/18/2024 1,177,327 Eldorado Resorts LLC...................... BTL-B Ba2 BB 3.69-3.81 1 ML+2.25 04/17/2024 1,385,638 Four Seasons Holdings, Inc................ 1st Lien B1 BB 4.07 1 ML+2.50 11/30/2023 613,800 Golden Entertainment, Inc................. 1st Lien B1 B+ 4.51 1 ML+3.00 10/20/2024 1,975,000
Value Industry Description (Note 2) -------------------------------------------------------- Energy Equipment & Services -- 1.1% CIRCOR International, Inc................. $ 1,434,000 Paragon Offshore, Ltd.(5)(14)............. 35,600 Paragon Offshore, Ltd.(5)(6)(9)+.......... 0 Seadrill Partners Finco LLC............... 740,001 Techem GmbH............................... 600,825 ----------- 2,810,426 ----------- Food & Staples Retailing -- 1.9% Albertson's Holdings LLC.................. 891,345 Rite Aid Corp............................. 1,230,000 Rite Aid Corp............................. 1,056,319 SF CC Intermediate Holdings, Inc.......... 561,703 U.S. Foods, Inc........................... 1,000,916 ----------- 4,740,283 ----------- Food Products -- 2.9% B&G Foods, Inc............................ 503,549 Hearthside Food Solutions LLC............. 1,100,627 Hostess Brands, Inc....................... 2,085,828 JBS USA LLC............................... 568,534 Pinnacle Operating Corp.(5)(13)........... 699,759 Post Holdings, Inc........................ 2,324,468 ----------- 7,282,765 ----------- Health Care Equipment & Supplies -- 1.5% Immucor, Inc.............................. 1,006,315 Kinetic Concepts, Inc..................... 831,412 Sterigenics-Nordion Holdings LLC.......... 1,861,695 ----------- 3,699,422 ----------- Health Care Providers & Services -- 4.9% American Renal Holdings, Inc.............. 549,032 CHS/Community Health Systems, Inc......... 643,644 Davis Vision, Inc......................... 705,250 DuPage Medical Group, Ltd................. 937,326 DuPage Medical Group, Ltd................. 765,000 Envision Healthcare Corp.................. 998,788 Genoa, a QoL Healthcare Co. LLC........... 932,540 Genoa, a QoL Healthcare Co. LLC(5)........ 505,000 Healogics, Inc.(5)........................ 844,214 MPH Acquisition Holdings LLC.............. 2,614,066 Opal Acquisition, Inc..................... 556,846 Surgery Center Holdings, Inc.............. 541,996 Team Health, Inc.......................... 482,296 U.S. Renal Care, Inc...................... 987,839 ----------- 12,063,837 ----------- Hotels, Restaurants & Leisure -- 7.6% Aristocrat Leisure, Ltd................... 610,381 Aristocrat Leisure, Ltd................... 642,730 Boyd Gaming Corp.......................... 957,803 Caesars Entertainment Operating Co., Inc.. 2,146,072 Caesars Resort Collection LLC............. 3,463,800 CityCenter Holdings LLC................... 1,182,109 Eldorado Resorts LLC...................... 1,385,638 Four Seasons Holdings, Inc................ 616,997 Golden Entertainment, Inc................. 1,975,000
13 AIG Senior Floating Rate Fund++ PORTFOLIO OF INVESTMENTS -- December 31, 2017 -- (continued)
Ratings/(1)/ ------------ Interest Reference Maturity Principal Value Industry Description Type Moody's S&P Rate Rate Date/(2)/ Amount** (Note 2) ------------------------------------------------------------------------------------------------------------------------------ Hotels, Restaurants & Leisure (continued) Golden Entertainment, Inc................... 2nd Lien Caa1 CCC+ 8.51% 1 ML+7.00% 10/20/2025 $ 1,075,000 $ 1,075,672 Hilton Worldwide Finance LLC................ BTL-B2 Ba1 BBB- 3.55 1 ML+2.00 10/25/2023 744,688 748,242 Lindblad Expeditons, Inc.................... BTL B2 BB 6.34 6 ML+4.50 05/08/2021 222,855 223,969 Lindblad Expeditons, Inc.................... CTL B2 BB 6.34 6 ML+4.50 05/08/2021 1,727,145 1,735,781 Scientific Games International, Inc......... BTL-B4 B1 B+ 4.67-4.82 2 ML+3.25 08/14/2024 428,925 432,343 Station Casinos, Inc........................ BTL-B Ba3 BB- 4.06 1 ML+2.50 06/08/2023 693,400 694,353 Town Sports International Holdings, Inc.(5). BTL Caa1 CCC+ 5.07 1 ML+3.50 11/15/2020 1,169,487 1,089,084 ----------- 18,979,974 ----------- Household Durables -- 1.1% Installed Building Products, Inc............ BTL-B B1 BB 4.07 1 ML+2.50 04/15/2024 686,550 689,983 Wilsonart LLC............................... BTL-D B2 B+ 4.95 3 ML+3.25 12/19/2023 2,027,684 2,037,460 ----------- 2,727,443 ----------- Household Products -- 1.7% Diamond (BC) BV............................. BTL B1 B 3.25 2 ME+3.25 09/06/2024 EUR 210,000 251,384 Diamond (BC) BV............................. BTL B1 B 4.42 2 ML+3.00 09/06/2024 915,000 916,967 Prestige Brands, Inc........................ BTL-B4 B1 BB- 4.32 1 ML+2.75 01/26/2024 405,200 407,443 Reynolds Group Holdings, Inc................ BTL B1 B+ 4.32 1 ML+2.75 02/05/2023 2,602,128 2,613,494 ----------- 4,189,288 ----------- Industrial Conglomerates -- 1.3% American Rock Salt Co. LLC.................. BTL-B B3 B 5.23 1 ML+3.75 05/20/2021 1,681,796 1,680,395 American Rock Salt Co. LLC(5)............... 2nd Lien B3 B 5.23 1 ML+3.75 05/20/2021 650,320 648,968 Ameriforge Group, Inc.(8)................... BTL NR NR 10.69 3 ML+8.00 06/08/2022 107,189 107,725 Utex Industries, Inc........................ 1st Lien B3 CCC+ 5.57 1 ML+4.00 05/22/2021 814,450 795,616 ----------- 3,232,704 ----------- Insurance -- 2.6% Asurion Corp................................ BTL-B4 Ba3 B+ 4.32 1 ML+2.75 08/04/2022 968,222 972,718 Asurion Corp................................ BTL-B5 Ba3 B+ 4.57 1 ML+3.00 11/03/2023 878,919 882,529 Asurion Corp................................ 2nd Lien B3 B- 7.57 1 ML+6.00 08/04/2025 850,000 873,021 Compass Investments, Inc.................... BTL-B B2 B 4.69 3 ML+3.00 05/16/2024 2,004,975 2,002,469 Hub International, Ltd...................... BTL B1 B 4.35-4.41 3 ML+3.00 10/02/2020 889,231 892,913 NFP Corp.................................... BTL-B B2 B 5.07 1 ML+3.50 01/08/2024 724,168 727,675 ----------- 6,351,325 ----------- Internet & Direct Marketing Retail -- 0.8% Acosta, Inc................................. BTL B3 B- 4.82 1 ML+3.25 09/26/2021 1,338,489 1,175,919 Lands' End, Inc.(5)......................... BTL-B B3 B- 4.82 1 ML+3.25 04/04/2021 924,032 822,003 ----------- 1,997,922 ----------- Internet Software & Services -- 0.7% Go Daddy Operating Co. LLC.................. BTL-B Ba3 BB- 3.82 1 ML+2.25 02/15/2024 993,926 996,411 Zayo Group LLC.............................. BTL-B Ba2 BB 3.80 1 ML+2.25 01/19/2024 711,388 713,676 ----------- 1,710,087 ----------- IT Services -- 5.8% CCC Information Services, Inc............... 1st Lien B2 B 4.57 1 ML+3.00 04/27/2024 656,700 657,657 Ceridian Corp............................... BTL-B2 Ba3 B- 5.05 1 ML+3.50 09/15/2020 733,177 734,322 Evo Payments International.................. 1st Lien B1 B 5.57 1 ML+4.00 12/22/2023 1,607,850 1,613,209 Evo Payments International(5)............... 2nd Lien Caa1 B- 10.57 1 ML+9.00 11/15/2024 645,000 648,225 First Data Corp............................. BTL Ba3 BB 3.80 1 ML+2.25 04/26/2024 2,681,026 2,681,983 First Data Corp............................. BTL Ba3 BB 3.80 1 ML+2.25 07/08/2022 1,571,195 1,571,632 Global Payments, Inc........................ BTL-B2 Ba2 BBB- 3.57 1 ML+2.00 04/21/2023 955,994 960,774 iPayment, Inc............................... 1st Lien B1 B+ 6.62 3 ML+5.00 04/11/2023 778,390 778,390 Tempo Acquisition LLC....................... BTL B1 B 4.57 1 ML+3.00 05/01/2024 1,012,282 1,008,486
14 AIG Senior Floating Rate Fund++ PORTFOLIO OF INVESTMENTS -- December 31, 2017 -- (continued)
Ratings/(1)/ ------------ Interest Reference Maturity Principal Value Industry Description Type Moody's S&P Rate Rate Date/(2)/ Amount** (Note 2) ------------------------------------------------------------------------------------------------------------------------------ IT Services (continued) WEX, Inc.................................. BTL-B2 Ba3 BB- 4.32% 1 ML+2.75% 06/30/2023 $ 2,103,474 $ 2,111,738 Xerox Business Services LLC............... BTL-B2 Ba2 BB+ 4.57 1 ML+3.00 12/07/2023 1,762,200 1,771,011 ----------- 14,537,427 ----------- Leisure Equipment & Products -- 0.5% SRAM LLC.................................. BTL-B NR B 4.63 2 ML+3.25 03/15/2024 772,321 777,148 SRAM LLC.................................. BTL-B NR B 4.69 3 ML+3.25 03/15/2024 487,823 490,872 SRAM LLC.................................. BTL-B NR B 6.75 USFRBPLR+2.25 03/15/2024 21,074 21,206 ----------- 1,289,226 ----------- Life Sciences Tools & Services -- 1.6% INC Research LLC (inVentiv)............... BTL-B Ba2 BB- 3.82 1 ML+2.25 08/01/2024 1,356,250 1,357,606 Pharmaceutical Product Development, Inc... BTL-B Ba3 B 4.32 1 ML+2.75 08/18/2022 1,261,269 1,262,373 Pharmaceutical Product Development, Inc... BTL-B Ba3 B 4.44 3 ML+2.75 08/18/2022 1,396,878 1,398,100 ----------- 4,018,079 ----------- Machinery -- 3.8% Ceramtec Group GMBH....................... BTL-B B2 NR TBD 11/29/2024 EUR 410000 491,016 Clark Equipment Co........................ BTL-B Ba3 BB- 4.19 3 ML+2.50 05/18/2024 918,151 921,976 Columbus McKinnon Corp.................... BTL-B Ba3 B+ 4.69 3 ML+3.00 01/31/2024 1,066,094 1,075,423 Gardner Denver, Inc....................... BTL-B B2 B+ 4.44 3 ML+2.75 07/30/2024 1,306,222 1,309,226 Gardner Denver, Inc....................... BTL-B B2 B+ 3.00 3 ME+3.00 07/30/2024 1,048,372 1,257,497 Harbor Freight Tools USA, Inc............. BTL-B Ba3 BB- 4.82 1 ML+3.25 08/18/2023 1,000,101 1,005,882 Harsco Corp............................... BTL-B Ba1 NR 4.63 1 ML+3.00 12/05/2024 1,121,525 1,132,740 NN, Inc................................... BTL B2 B+ 4.82 1 ML+3.25 03/22/2021 1,731,450 1,740,107 Utility One Source LP..................... BTL B2 B 7.07 1 ML+5.50 04/18/2023 622,124 634,567 ----------- 9,568,434 ----------- Media -- 7.3% Advantage Sales & Marketing LLC........... 1st Lien B1 B 4.63 3 ML+3.25 07/23/2021 1,698,269 1,654,043 Advantage Sales & Marketing LLC........... 2nd Lien Caa1 CCC+ 7.88 3 ML+6.50 07/25/2022 1,000,000 916,667 Charter Communications Operating LLC...... BTL-B Ba1 BBB- TBD 04/30/2025 815,063 815,445 CSC Holdings, Inc......................... 1st Lien Ba1 BB 3.74 1 ML+2.25 07/17/2025 508,072 505,532 Delta 2 (Lux) SARL........................ BTL-B3 B2 B+ 4.57 1 ML+3.00 02/01/2024 2,874,124 2,887,296 Galleria Co............................... BTL-B Ba1 BB+ 4.38 1 ML+3.00 09/29/2023 992,512 995,614 Getty Images, Inc......................... BTL-B B3 CCC 5.19 1 WL+3.50 10/18/2019 1,807,103 1,635,428 ION Media Networks, Inc................... BTL-B3 B1 B+ 4.18 1 ML+2.75 12/18/2020 2,412,221 2,420,261 Sinclair Television Group, Inc............ BTL-B Ba1 BB+ TBD 12/12/2024 2,150,000 2,147,983 Unitymedia Hessen GmbH & Co. KG........... BTL-B Ba3 BB- TBD 01/15/2026 1,085,000 1,082,513 Unitymedia Hessen GmbH & Co. KG........... BTL-B Ba3 BB- 3.73 1 ML+2.25 09/30/2025 1,260,000 1,260,450 Univision Communications, Inc............. BTL-C4 B2 BB- 4.32 1 ML+2.75 03/15/2024 756,075 753,145 Virgin Media Investments, Ltd............. BTL-I Ba3 BB- 3.98 1 ML+2.50 01/15/2026 500,000 499,822 Ziggo Secured Finance Partners............ BTL-E B1 BB- 3.98 1 ML+2.50 04/15/2025 500,000 495,715 ----------- 18,069,914 ----------- Metals & Mining -- 0.8% Crosby Worldwide, Ltd..................... 1st Lien Caa1 B- 4.45 3 ML+3.00 11/23/2020 1,013,683 984,793 Signode Industrial Group U.S., Inc........ BTL-B B1 B 4.32 1 ML+2.75 05/04/2021 486,652 487,868 Signode Industrial Group U.S., Inc........ BTL-B B1 B 4.44 3 ML+2.75 05/04/2021 450,604 451,731 ----------- 1,924,392 ----------- Multiline Retail -- 0.2% Neiman Marcus Group, Inc.................. BTL-B Caa1 CCC 4.64 1 ML+3.25 10/25/2020 670,316 545,638 -----------
15 AIG Senior Floating Rate Fund++ PORTFOLIO OF INVESTMENTS -- December 31, 2017 -- (continued)
Ratings/(1)/ ------------ Interest Reference Maturity Principal Value Industry Description Type Moody's S&P Rate Rate Date/(2)/ Amount** (Note 2) ------------------------------------------------------------------------------------------------------------------------------- Oil, Gas & Consumable Fuels -- 6.4% American Energy Marcellus LLC(5)(15)........ 1st Lien Ca D 5.47% 1 ML+4.25% 08/04/2020 $1,478,241 $ 1,082,812 Arch Coal, Inc.............................. BTL B1 BB- 4.82 1 ML+3.25 03/07/2024 2,173,575 2,187,838 BCP Raptor LLC.............................. BTL-B B3 B+ 5.73 3 ML+4.25 06/24/2024 825,850 828,259 BCP Renaissance Parent LLC.................. BTL-B B1 B+ 5.38 3 ML+4.00 10/31/2024 1,405,000 1,421,392 California Resources Corp................... 2nd Lien B2 B 6.24 1 ML+4.75 12/31/2022 395,000 395,987 California Resources Corp.(5)............... 2nd Lien Caa1 B 11.88 1 ML+10.38 12/31/2021 500,000 547,500 Chesapeake Energy Corp...................... BTL B1 B+ 8.95 3 ML+7.50 08/23/2021 630,000 669,375 Chief Exploration & Development LLC(5)...... 2nd Lien NR NR 7.96 3 ML+6.50 05/16/2021 2,160,000 2,130,300 Energy Transfer Equity LP................... BTL Ba2 BB- 3.50 1 ML+2.00 02/02/2024 793,908 790,559 Foresight Energy LLC........................ 1st Lien B2 B 7.44 3 ML+5.75 03/28/2022 2,025,922 1,891,705 Medallion Midland Acquisition LLC........... 1st Lien B2 BB- 4.82 1 ML+3.25 10/30/2024 475,000 474,703 Peabody Energy Corp......................... 1st Lien Ba3 B+ 5.07 1 WL+3.50 03/31/2022 495,301 501,493 Philadelphia Energy Solutions LLC(5)........ BTL-B Ca CCC- 8.50 USFRBPLR+4.00 04/04/2018 909,638 672,086 Power Buyer LLC............................. BTL B2 B+ 4.94 3 ML+3.25 05/06/2020 1,020,630 1,021,056 Power Buyer LLC(5).......................... 2nd Lien Caa2 CCC+ 8.94 3 ML+7.25 11/06/2020 670,000 670,000 Traverse Midstream Partners LLC............. BTL B1 B+ 5.85 6 ML+4.00 09/27/2024 750,000 759,750 ----------- 16,044,815 ----------- Personal Products -- 0.3% Revlon Consumer Products Corp............... BTL-B B1 B- 5.07 1 ML+3.50 09/07/2023 1,086,250 809,256 ----------- Pharmaceuticals -- 2.0% Albany Molecular Research, Inc.............. BTL B2 B 4.82 1 ML+3.25 08/30/2024 324,188 319,325 Albany Molecular Research, Inc.............. 2nd Lien Caa2 B- 8.57 1 ML+7.00 08/30/2025 295,000 287,994 Catalent Pharma Solutions, Inc.............. BTL-B2 Ba3 BB 3.82 1 ML+2.25 05/20/2024 1,147,594 1,151,078 Endo Luxembourg Finance Co.................. BTL-B Ba2 BB- 5.88 1 ML+4.25 04/29/2024 1,610,653 1,618,131 PAREXEL International Corp.................. BTL-B B1 B 4.57 1 ML+3.00 09/27/2024 653,363 656,085 Valeant Pharmaceuticals International, Inc.. BTL-F1 NR BB- 4.94 1 ML+3.50 04/01/2022 857,635 870,040 ----------- 4,902,653 ----------- Professional Services -- 0.5% Nexeo Solutions LLC......................... BTL-B1 B3 B 4.58-4.94 3 ML+3.25 06/09/2023 1,312,064 1,318,625 ----------- Real Estate Investment Trusts -- 1.3% Capital Automotive LP....................... 2nd Lien NR CCC+ 7.57 1 ML+6.00 03/24/2025 470,971 478,035 MGM Growth Properties LLC................... BTL Ba3 BB+ 3.82 1 ML+2.25 04/25/2023 983,700 987,038 VICI Properties 1 LLC....................... BTL-B Ba3 BB+ TBD 12/20/2024 1,785,000 1,785,371 ----------- 3,250,444 ----------- Real Estate Management & Development -- 0.4% DTZ US Borrower LLC......................... 1st Lien B1 B+ 4.63-4.94 3 ML+3.25 11/04/2021 1,003,856 989,695 DTZ US Borrower LLC(5)...................... 2nd Lien B3 B- 9.63 3 ML+8.25 11/04/2022 92,340 90,494 ----------- 1,080,189 ----------- Road & Rail -- 0.5% Kenan Advantage Group, Inc.................. BTL B1 B+ 4.57 1 ML+3.00 07/31/2022 915,545 916,404 Kenan Advantage Group, Inc.................. BTL-B B1 B+ 4.57 1 ML+3.00 07/31/2022 221,254 221,461 ----------- 1,137,865 ----------- Semiconductors & Semiconductor Equipment -- 0.2% Integrated Device Technology, Inc........... BTL-B Baa3 BB 4.57 1 ML+3.00 04/04/2024 535,950 537,290 ----------- Software -- 3.5% Almonde, Inc................................ BTL-B B2 B 4.98 3 ML+3.50 06/13/2024 1,251,862 1,254,888 Almonde, Inc................................ BTL Caa2 CCC+ 8.73 3 ML+7.25 06/13/2025 230,000 230,000 Change Healthcare Holdings, Inc............. BTL-B8 Ba3 B+ 4.32 1 ML+2.75 03/01/2024 1,488,750 1,490,379 Epicore Software Co......................... 1st Lien B2 B- 5.32 1 ML+3.75 06/01/2022 1,016,723 1,017,782 Hyland Software, Inc........................ BTL-B1 B1 B 4.82 1 ML+3.25 07/01/2022 710,595 714,592 Hyland Software, Inc........................ 2nd Lien Caa1 CCC+ 8.57 1 ML+7.00 07/07/2025 315,000 318,150 Lawson Software, Inc........................ BTL-B6 B1 B 4.44 3 ML+2.75 02/01/2022 690,419 691,775
16 AIG Senior Floating Rate Fund++ PORTFOLIO OF INVESTMENTS -- December 31, 2017 -- (continued)
Ratings/(1)/ ------------ Interest Reference Maturity Principal Industry Description Type Moody's S&P Rate Rate Date/(2)/ Amount** -------------------------------------------------------------------------------------------------------------------------------- Software (continued) MA FinanceCo. LLC............................... BTL-B3 B1 BB- 4.32% 1 ML+2.75% 06/21/2024 $ 128,978 Quest Software US Holdings, Inc................. BTL-B2 B2 B 6.92 3 ML+5.50 10/31/2022 255,000 RP Crown Parent LLC............................. BTL-B B1 B 4.57 1 ML+3.00 10/12/2023 881,100 Seattle Spinco, Inc............................. BTL-B3 B1 BB- 4.32 1 ML+2.75 06/21/2024 871,022 SS&C Technologies, Inc.......................... BTL-B1 Ba2 BB+ 3.82 1 ML+2.25 07/08/2022 873,424 SS&C Technologies, Inc.......................... BTL-B2 Ba2 BB+ 3.82 1 ML+2.25 07/08/2022 16,388 Specialty Retail -- 1.8% At Home Holding III, Inc........................ BTL B2 B 4.88 3 ML+3.50 06/03/2022 685,520 Bass Pro Group LLC.............................. BTL-B B1 B+ 6.57 1 ML+5.00 09/25/2024 1,735,650 J Crew Operating Corp........................... BTL-B1 Caa2 CCC 4.50-4.57 1 ML+3.00 03/05/2021 340,039 J Crew Operating Corp........................... BTL-B1 Caa2 CCC 4.69 3 ML+3.00 03/05/2021 388,913 PetSmart, Inc................................... BTL-B2 Ba3 CCC+ 4.57 1 ML+3.00 03/11/2022 1,065,248 Staples, Inc.................................... BTL-B B1 B+ 5.49 3 ML+4.00 09/12/2024 870,000 Water Utilities -- 0.1% HD Supply Waterworks, Inc....................... BTL-B B2 B+ 4.46 6 ML+3.00 08/01/2024 320,000 Wireless Telecommunication Services -- 1.0% Maxar Technologies Ltd.......................... BTL-B Ba3 BB 4.10 3 ML+2.75 10/04/2024 620,000 Sprint Communications, Inc...................... BTL-B Ba2 BB- 4.13 1 ML+2.50 02/02/2024 1,985,000 Total Loans (cost $226,435,909)................. U.S. CORPORATE BONDS & NOTES -- 4.6% Building Products -- 0.5% Beacon Escrow Corp.*............................ Senior Notes B3 B+ 4.88 11/01/2025 705,000 FBM Finance, Inc.*.............................. Sec. Notes B3 B+ 8.25 08/15/2021 516,000 Commercial Services & Supplies -- 1.3% Brand Energy and Infrastructure Services, Inc.*. Senior Notes Caa2 CCC+ 8.50 07/15/2025 1,000,000 Hertz Corp.*.................................... Sec. Notes B1 BB- 7.63 06/01/2022 750,000 Reynolds Group Issuer, Inc. FRS*................ Senior Sec. Notes B1 B+ 4.86 3 ML+3.50 07/15/2021 1,245,000 Consumer Finance -- 0.3% Freedom Mortgage Corp.*......................... Senior Notes B2 B 6.50 11/15/2024 500,000 Navient Corp.................................... Senior Notes Ba3 B+ 6.50 06/15/2022 300,000 Containers & Packaging -- 0.3% Flex Acquisition Co., Inc.*..................... Senior Notes Caa1 CCC+ 6.88 01/15/2025 635,000 Diversified Financial Services -- 0.3% Arch Merger Sub, Inc.*.......................... Senior Notes B3 B- 8.50 09/15/2025 650,000 Insurance -- 0.4% Springleaf Finance Corp......................... Company Guar. Notes B2 B 6.13 05/15/2022 500,000 USIS Merger Sub, Inc.*.......................... Senior Notes Caa2 CCC+ 6.88 05/01/2025 500,000 IT Services -- 0.4% First Data Corp.*............................... Company Guar. Notes B3 B 7.00 12/01/2023 1,000,000 Multi Utilities -- 0.0% Texas Competitive Electric Holdings Co. LLC*(5)........................................ Escrow Notes NR NR 6.25 10/01/2020 4,174,956
Value Industry Description (Note 2) --------------------------------------------------------------- Software (continued) MA FinanceCo. LLC............................... $ 129,236 Quest Software US Holdings, Inc................. 258,698 RP Crown Parent LLC............................. 883,119 Seattle Spinco, Inc............................. 872,662 SS&C Technologies, Inc.......................... 878,201 SS&C Technologies, Inc.......................... 16,481 ------------ 8,755,963 ------------ Specialty Retail -- 1.8% At Home Holding III, Inc........................ 684,234 Bass Pro Group LLC.............................. 1,725,344 J Crew Operating Corp........................... 202,607 J Crew Operating Corp........................... 231,727 PetSmart, Inc................................... 852,199 Staples, Inc.................................... 849,881 ------------ 4,545,992 ------------ Water Utilities -- 0.1% HD Supply Waterworks, Inc....................... 321,600 ------------ Wireless Telecommunication Services -- 1.0% Maxar Technologies Ltd.......................... 622,712 Sprint Communications, Inc...................... 1,982,519 ------------ 2,605,231 ------------ Total Loans (cost $226,435,909)................. 224,899,017 ------------ U.S. CORPORATE BONDS & NOTES -- 4.6% Building Products -- 0.5% Beacon Escrow Corp.*............................ 707,644 FBM Finance, Inc.*.............................. 548,250 ------------ 1,255,894 ------------ Commercial Services & Supplies -- 1.3% Brand Energy and Infrastructure Services, Inc.*. 1,050,000 Hertz Corp.*.................................... 785,625 Reynolds Group Issuer, Inc. FRS*................ 1,263,674 ------------ 3,099,299 ------------ Consumer Finance -- 0.3% Freedom Mortgage Corp.*......................... 509,375 Navient Corp.................................... 314,850 ------------ 824,225 ------------ Containers & Packaging -- 0.3% Flex Acquisition Co., Inc.*..................... 657,606 ------------ Diversified Financial Services -- 0.3% Arch Merger Sub, Inc.*.......................... 601,250 ------------ Insurance -- 0.4% Springleaf Finance Corp......................... 518,750 USIS Merger Sub, Inc.*.......................... 505,000 ------------ 1,023,750 ------------ IT Services -- 0.4% First Data Corp.*............................... 1,057,500 ------------ Multi Utilities -- 0.0% Texas Competitive Electric Holdings Co. LLC*(5)........................................ 31,312 ------------
17 AIG Senior Floating Rate Fund++ PORTFOLIO OF INVESTMENTS -- December 31, 2017 -- (continued)
Ratings/(1)/ ------------ Principal Interest Maturity Amount**/ Industry Description Type Moody's S&P Rate Date/(2)/ Shares ----------------------------------------------------------------------------------------------------------------------------- Oil, Gas & Consumable Fuels -- 0.9% Foresight Energy/Finance*............................... Sec. Notes Caa2 CCC 11.50% 04/01/2023 $ 715,000 Vine Oil & Gas LP/Vine Oil & Gas Finance Corp.*......... Company Guar. Notes Caa2 CCC+ 8.75 04/15/2023 1,215,000 Warrior Met Coal, Inc.*................................. Senior Sec. Notes B3 B- 8.00 11/01/2024 525,000 Machinery -- 0.1% BlueLine Rental LLC*.................................... Sec. Notes Caa1 B 9.25 03/15/2024 325,000 Personal Products -- 0.1% Revlon Escrow Corp...................................... Company Guar. Notes Caa1 CCC+ 6.25 08/01/2024 505,000 Real Estate Investment Trusts -- 0.0% VICI Properties 1 LLC / VICI FC, Inc.................... Sec. Notes B1 B 8.00 10/15/2023 56,060 Total U.S. Corporate Bonds & Notes (cost $11,681,831)... FOREIGN CORPORATE BONDS & NOTES -- 2.0% Banks -- 0.2% Itau Unibanco Holding SA*(10)........................... Sub. Notes B2 NR 7.25 12/12/2022 500,000 Containers & Packaging -- 0.3% Ardagh Packaging Finance PLC*........................... Company Guar. Notes B3 B 7.25 05/15/2024 685,000 Energy Equipment & Services -- 0.4% Shelf Drilling Holdings, Ltd.*.......................... Sec. Notes B2 B- 9.50 11/02/2020 936,977 Metals & Mining -- 0.3% Costellium NV*.......................................... Senior Notes B3 B- 6.63 03/01/2025 655,000 Oil, Gas & Consumable Fuels -- 0.2% Tullow Oil PLC*......................................... Company Guar. Notes Caa1 B- 6.00 11/01/2020 500,000 Pharmaceuticals -- 0.6% Endo International PLC*................................. Company Guar. Notes B3 CCC+ 6.00 07/15/2023 560,000 Valeant Pharmaceuticals*................................ Senior Sec. Notes Ba3 BB- 7.00 03/15/2024 630,000 Valeant Pharmaceuticals*................................ Senior Sec. Notes Caa1 B- 7.00 12/15/2025 385,000 Total Foreign Corporate Bonds & Notes (cost $5,755,481). COMMON STOCKS -- 0.3% Energy Equipment & Services -- 0.0% Paragon Offshore, Litigation Trust, Class A+(5)(9)...... 1,242 Paragon Offshore, Litigation Trust, Class B+(5)(9)...... 621 Paragon Offshore, Ltd.+(5)(9)........................... 1,242 Industrial Conglomerates -- 0.2% AFG Holdings, Inc.+(5)(9)............................... 14,309 Media -- 0.0% Vivial+(5)(6)(9)........................................ 1,136 Oil, Gas & Consumable Fuels -- 0.1% TE Holdcorp LLC, Class A+(5)(6)(9)...................... 44,278 Total Common Stocks (cost $3,245,263)................... PREFERRED SECURITIES/CAPITAL SECURITIES -- 0.7% Banks -- 0.7% Banco Bilbao Vizcaya Argentaria SA(10).................. Ba2 NR 6.13 11/16/2027 800,000 Banco Bilbao Vizcaya Argentaria SA(10).................. NR NR 9.00 05/09/2018 400,000 Societe Generale SA(10)................................. Ba2 BB+ 8.25 11/29/2018 400,000 Total Preferred Securities/Capital Securities (cost $1,654,503)...................................... Total Long-Term Investment Securities (cost $248,772,987)....................................
Value Industry Description (Note 2) ----------------------------------------------------------------------- Oil, Gas & Consumable Fuels -- 0.9% Foresight Energy/Finance*............................... $ 584,513 Vine Oil & Gas LP/Vine Oil & Gas Finance Corp.*......... 1,178,549 Warrior Met Coal, Inc.*................................. 542,063 ------------ 2,305,125 ------------ Machinery -- 0.1% BlueLine Rental LLC*.................................... 346,938 ------------ Personal Products -- 0.1% Revlon Escrow Corp...................................... 308,050 ------------ Real Estate Investment Trusts -- 0.0% VICI Properties 1 LLC / VICI FC, Inc.................... 62,636 ------------ Total U.S. Corporate Bonds & Notes (cost $11,681,831)... 11,573,585 ------------ FOREIGN CORPORATE BONDS & NOTES -- 2.0% Banks -- 0.2% Itau Unibanco Holding SA*(10)........................... 505,275 ------------ Containers & Packaging -- 0.3% Ardagh Packaging Finance PLC*........................... 745,794 ------------ Energy Equipment & Services -- 0.4% Shelf Drilling Holdings, Ltd.*.......................... 954,545 ------------ Metals & Mining -- 0.3% Costellium NV*.......................................... 690,206 ------------ Oil, Gas & Consumable Fuels -- 0.2% Tullow Oil PLC*......................................... 504,400 ------------ Pharmaceuticals -- 0.6% Endo International PLC*................................. 439,600 Valeant Pharmaceuticals*................................ 674,100 Valeant Pharmaceuticals*................................ 401,247 ------------ 1,514,947 ------------ Total Foreign Corporate Bonds & Notes (cost $5,755,481). 4,915,167 ------------ COMMON STOCKS -- 0.3% Energy Equipment & Services -- 0.0% Paragon Offshore, Litigation Trust, Class A+(5)(9)...... 1,242 Paragon Offshore, Litigation Trust, Class B+(5)(9)...... 14,179 Paragon Offshore, Ltd.+(5)(9)........................... 22,666 ------------ 38,087 ------------ Industrial Conglomerates -- 0.2% AFG Holdings, Inc.+(5)(9)............................... 565,206 ------------ Media -- 0.0% Vivial+(5)(6)(9)........................................ 22,572 ------------ Oil, Gas & Consumable Fuels -- 0.1% TE Holdcorp LLC, Class A+(5)(6)(9)...................... 72,174 ------------ Total Common Stocks (cost $3,245,263)................... 698,039 ------------ PREFERRED SECURITIES/CAPITAL SECURITIES -- 0.7% Banks -- 0.7% Banco Bilbao Vizcaya Argentaria SA(10).................. 825,000 Banco Bilbao Vizcaya Argentaria SA(10).................. 409,000 Societe Generale SA(10)................................. 418,500 ------------ Total Preferred Securities/Capital Securities (cost $1,654,503)...................................... 1,652,500 ------------ Total Long-Term Investment Securities (cost $248,772,987).................................... 243,738,308 ------------
18 AIG Senior Floating Rate Fund++ PORTFOLIO OF INVESTMENTS -- December 31, 2017 -- (continued)
Principal Amount**/ Value Industry Description Shares (Note 2) ---------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENT SECURITIES -- 0.8% Registered Investment Companies -- 0.8% State Street Institutional Liquid Reserves Fund, Administration Class 1.18%(11) (cost $2,087,070)................................................................ 2,087,070 $ 2,086,861 ------------ REPURCHASE AGREEMENTS -- 2.6% Bank of America Securities LLC Joint Repurchase Agreement(12).................... $ 995,000 995,000 Barclays Capital, Inc. Joint Repurchase Agreement(12)............................ 1,105,000 1,105,000 BNP Paribas SA Joint Repurchase Agreement(12).................................... 1,895,000 1,895,000 Deutsche Bank AG Joint Repurchase Agreement(12).................................. 735,000 735,000 RBS Securities, Inc. Joint Repurchase Agreement(12).............................. 1,770,000 1,770,000 ------------ Total Repurchase Agreements (cost $6,500,000).................................... 6,500,000 ------------ TOTAL INVESTMENTS (cost $257,360,057)(16).......................................................... 101.3% 252,325,169 Liabilities in excess of other assets................................................ (1.3)% (3,287,333) ---------- ------------ NET ASSETS........................................................................... 100.0% $249,037,836 ========== ============
-------- BTL Bank Term Loan CTL Cayman Term Loan EUR Euro Currency NR Security is not rated. FRS--FloatingRate Security The rates shown on FRS are the current interest rates as of December 31, 2017 and unless noted otherwise, the dates shown are the original maturity dates. TBD--Seniorloan purchased on a when-issued or delayed-delivery basis. Certain details associated with this purchase are not known prior to the settlement date of the transaction. In addition, senior loans typically trade without accrued interest and therefore a coupon rate is not available prior to the settlement. + Non-income producing security ++ See Note 1 * Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. The Fund has no rights to demand registration of these securities. At December 31, 2017, the aggregate value of these securities was $15,284,466, representing 6.1% of net assets. Unless otherwise indicated, these securities are not considered to be illiquid. ** Denominated in United States Dollars unless otherwise noted. (1) Bank loans rated below Baa by Moody's Investor Service, Inc. or BBB by Standard & Poor's Group are considered below investment grade. Ratings provided are as of December 31, 2017. (2) Based on the stated maturity, the weighted average to maturity of the loans held in the portfolio is approximately 69 months. Loans in the Fund's portfolio are generally subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a Borrower to prepay, prepayments may occur. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. (3) The Fund invests in senior loans which generally pay interest at rates which are periodically re-determined by reference to a base lending rate plus a premium. These base lending rates are generally either the lending rate offered by one or more major European banks, such as the London Inter-Bank Offer Rate ("LIBOR") or the prime rate offered by one or more major United States banks, or the certificate of deposit rate. Senior loans are generally considered to be restrictive in that the Fund is ordinarily contractually obligated to receive approval from the Agent Bank and/or borrower prior to the disposition of a senior loan. (4) All loans in the portfolio were purchased through assignment agreements unless otherwise indicated. (5) Illiquid security. At December 31, 2017, the aggregate value of these securities was $11,604,246 representing 4.7% of net assets. (6) Security classified as Level 3 (see Note 2). (7) All or a portion of this holding is subject to unfunded loan commitments (see Note 10). (8) "Payment-in-Kind" (PIK) security -- Income may be paid in additional securities or cash at the discretion of the issuer. The security is currently paying interest in cash at 9.69%. The security is also currently paying interest in the form of additional loans at 1.00%. 19 AIG Senior Floating Rate Fund++ PORTFOLIO OF INVESTMENTS -- December 31, 2017 -- (continued) (9) Denotes a restricted security that: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933, as amended (the "1933 Act"); (b) is subject to a contractual restriction on public sales; or (c) is otherwise subject to a restriction on sales by operation of applicable law. Restricted securities are valued pursuant to Note 2. Certain restricted securities held by the Fund may not be sold except in exempt transactions or in a public offering registered under the 1933 Act. The Fund has no right to demand registration of these securities. The risk of investing in certain restricted securities is greater than the risk of investing in the securities of widely held, publicly traded companies. To the extent applicable, lack of a secondary market and resale restrictions may result in the inability of a Fund to sell a security at a fair price and may substantially delay the sale of the security. In addition, certain restricted securities may exhibit greater price volatility than securities for which secondary markets exist. As of December 31, 2017, the Fund held the following restricted securities:
Acquisition Acquisition Value Per % of Net Description Date Shares Cost Value Share Assets ----------- ----------- ------ ----------- -------- --------- -------- Loans ----- Paragon Offshore, Ltd. Escrow Holding...... 07/18/2016 4,988 $ 53 $ 0 $ 0.00 0.00% Common Stocks ------------- AFG Holdings, Inc.......................... 01/22/2013 14,309 911,112 565,206 39.50 0.23 Paragon Offshore Litigation Trust, Class A. 07/11/2014 1,242 704 1,242 1.00 0.00 Paragon Offshore Litigation Trust, Class B. 10/21/2014 621 10,557 14,179 22.83 0.01 Paragon Offshore, Ltd...................... 07/11/2014 1,242 16,146 22,666 18.25 0.01 TE Holdcorp LLC, Class A................... 12/31/2016 44,278 1,638,216 72,174 1.63 0.03 Vivial..................................... 04/24/2008 1,136 668,529 22,572 19.87 0.01 -------- ---- $698,039 0.29% ======== ====
(10)Perpetual maturity -- maturity date reflects the next call date. (11)The rate shown is the 7-day yield as of December 31, 2017. (12)See Note 2 for details of the Joint Repurchase Agreement. (13)"Payment-in-Kind" (PIK) security -- Income may be paid in additional securities or cash at the discretion of the issuer. The security is currently paying interest in cash at 7.28%. The security is also currently paying interest in the form of additional loans at 1.54%. (14)"Payment-in-Kind" (PIK) security -- Income may be paid in additional securities or cash at the discretion of the issuer. The security is currently paying interest in cash at 1.00%. The security is also currently paying interest in the form of additional loans at 6.35%. (15)Loan is in default of interest. (16)See Note 6 for cost of investments on a tax basis. INDEX LEGEND 1 ML-- 1 Month USD LIBOR 1 WL-- 1 Week USD LIBOR 2 ML-- 2 Month USD LIBOR 2 ME-- 2 Month Euribor 3 ME-- 3 Month Euribor 3 ML-- 3 Month USD LIBOR USFRBPLR-- US Federal Reserve Bank Prime Loan Rate Forward Foreign Currency Contracts ------------------------------------------------------------------------------------------------------------ Contract to In Exchange Delivery Unrealized Unrealized Counterparty Deliver For Date Appreciation Depreciation ------------------------------------------------------------------------------------------------------------ Bank of America, N.A....................... EUR 2,167,000 USD 2,568,599 01/31/2018 $ -- $(35,672) Citibank, N.A.............................. EUR 2,167,000 USD 2,578,037 01/31/2018 -- (26,235) HSBC Bank USA.............................. USD 1,346,486 EUR 1,130,128 01/31/2018 11,686 -- ------- -------- Net Unrealized Appreciation/(Depreciation). $11,686 $(61,907) ======= ========
-------- EUR--EuroCurrency USD--UnitedStates Dollar 20 AIG Senior Floating Rate Fund++ PORTFOLIO OF INVESTMENTS -- December 31, 2017 -- (continued) The following is a summary of the inputs used to value the Fund's net assets as of December 31, 2017 (see Note 2):
Level 1 -- Unadjusted Level 2 -- Other Level 3 -- Significant Quoted Prices Observable Inputs Unobservable Inputs Total --------------------- ----------------- ---------------------- ------------ ASSETS: Investments at Value:* Loans: Energy Equipment & Services........... $ -- $ 2,810,426 $ 0 $ 2,810,426 Other Industries...................... -- 222,088,591 -- 222,088,591 U.S. Corporate Bonds & Notes............ -- 11,573,585 -- 11,573,585 Foreign Corporate Bonds & Notes......... -- 4,915,167 -- 4,915,167 Common Stocks: Energy Equipment & Services........... -- 38,087 -- 38,087 Industrial Conglomerates.............. -- 565,206 -- 565,206 Media................................. -- -- 22,572 22,572 Oil, Gas & Consumable Fuels........... -- -- 72,174 72,174 Preferred Securities/Capital Securities. -- 1,652,500 -- 1,652,500 Short-Term Investment Securities........ 2,086,861 -- -- 2,086,861 Repurchase Agreements................... -- 6,500,000 -- 6,500,000 ---------- ------------ ------- ------------ Total Investments at Value.............. $2,086,861 $250,143,562 $94,746 $252,325,169 ========== ============ ======= ============ Other Financial Instruments:@ Forward Foreign Currency Contracts...... $ -- $ 11,686 $ -- $ 11,686 ========== ============ ======= ============ LIABILITIES: Other Financial Instruments:@ Forward Foreign Currency Contracts...... $ -- $ 61,907 $ -- $ 61,907 ========== ============ ======= ============
-------- * For a detailed presentation of investments, please refer to the Portfolio of Investments. @ Other financial instruments are derivative instruments not reflected in the Portfolio of Investments, such as futures, forward, swap and written option contracts, which are valued at the unrealized appreciation (depreciation) on the instrument. The Fund's policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period. At the beginning and end of the reporting period, Level 3 investments in securities were not considered a material portion of the Fund. -------- ++ See Note 1 See Notes to Financial Statements 21 SunAmerica Senior Floating Rate Fund, Inc. NOTES TO FINANCIAL STATEMENTS -- December 31, 2017 Note 1. Organization of the Fund SunAmerica Senior Floating Rate Fund, Inc. (the "Corporation") is an open-end, diversified management investment company organized as a Maryland corporation in 1998 and is registered under the Investment Company Act of 1940, as amended (the "1940 Act"). The Corporation consists of one series -- AIG Senior Floating Rate Fund (the "Fund"). The Fund is managed by SunAmerica Asset Management, LLC (the "Adviser" or "SunAmerica"), an indirect wholly-owned subsidiary of American International Group, Inc. ("AIG"). The Fund's investment goal and principal investment techniques are to provide as high a level of current income as is consistent with the preservation of capital by investing, under normal market conditions, at least 80% of its net assets, plus any borrowings for investment purposes, in senior secured floating rate loans and other institutionally traded secured floating rate debt obligations ("Loans"). The Fund may also purchase both investment grade and high yield fixed income securities and money market instruments, although the Fund may not invest more than 10% of its total assets in high yield fixed income securities. The Fund may invest in foreign securities, including up to 10% of its total assets in non-U.S. dollar denominated Loans and high yield fixed income securities and up to 25% of its total assets in U.S. dollar denominated Loans issued by non-U.S. companies. On November 18, 2016, the Board of Directors approved a change in the name of the SunAmerica Senior Floating Rate Fund to the AIG Senior Floating Rate Fund effective February 28, 2017. SunAmerica Asset Management, LLC continues to serve as investment adviser of the Fund and retains its current name. In addition, there was no change in the Fund's investment goal or strategy, portfolio manager or ticker symbols in connection with the rebranding. The Fund offers three classes of shares: Class A, Class C and Class W. These classes within the Fund are presented in the Statement of Assets and Liabilities. The cost structure for each class is as follows: Class A shares-- Offered at net asset value per share plus an initial sales charge. Additionally, purchases of Class A shares in excess of $1,000,000 will be purchased at net asset value but will be subject to a contingent deferred sales charge ("CDSC") on redemptions made within two years of purchase. Class C shares-- Offered for sale at net asset value without a front-end sales charge, although a CDSC may be imposed on redemptions made within 12 months of purchase. Class W shares-- Offered at net asset value per share. The class is offered exclusively through advisory fee-based programs sponsored by certain financial intermediaries and other programs. Class W shares of the Fund commenced operations effective April 20, 2017. Each class of shares bears the same voting, dividend, liquidation and other rights and conditions, except as may otherwise be provided in the Fund's registration statement. Class A and Class C shares each make distribution and account maintenance fee payments under the distribution plans pursuant to Rule 12b-1 under the 1940 Act, with Class C shares being subject to higher distribution fee rates. Class W shares have not adopted a 12b-1 plan and make no payments thereunder, however, Class W shares pay a service fee to the Fund's distributor for providing administrative and shareholder services. Indemnifications: The Fund's organizational documents provide current and former officers and directors with a limited indemnification against liabilities arising out of the performance of their duties to the Fund. In addition, pursuant to Indemnification Agreements between the Fund and each of the current directors who is not an "interested person," as defined in Section 2(a)(19) of the 1940 Act, of the Fund (collectively, the "Disinterested Directors"), the Fund provides the Disinterested Directors with a limited indemnification against liabilities arising out of the performance of their duties to the Fund, whether such liabilities are asserted during or after their service as directors. In addition, in the normal course of business, the Fund enters into contracts that contain the obligation to indemnify others. The Fund's maximum exposure under these arrangements is unknown. Currently, however, the Fund expects the risk of loss to be remote. 22 SunAmerica Senior Floating Rate Fund, Inc. NOTES TO FINANCIAL STATEMENTS -- December 31, 2017 -- (continued) Note 2. Significant Accounting Policies The preparation of financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these estimates and those differences could be significant. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements: Security Valuation: In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. In accordance with GAAP, fair value is defined as the price that the Fund would receive upon selling an asset or transferring a liability in a timely transaction to an independent third party in the principal or most advantageous market. GAAP establishes a three-tier hierarchy to provide more transparency around the inputs used to measure fair value and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tiers are as follows: Level 1 -- Unadjusted quoted prices in active markets for identical securities Level 2 -- Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, referenced indices, quoted prices in inactive markets, adjusted quoted prices in active markets, adjusted quoted prices on foreign equity securities that were adjusted in accordance with pricing procedures approved by the Board of Directors (the "Board"), etc.) Level 3 -- Significant unobservable inputs (includes inputs that reflect the Fund's own assumptions about the assumptions market participants would use in pricing the security, developed based on the best information available under the circumstances) Changes in valuation techniques may result in transfers in or out of an investment's assigned Level within the hierarchy. The methodology used for valuing investments is not necessarily an indication of the risk associated with investing in those investments and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to each security. The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is recently issued and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The summary of the Fund's assets and liabilities classified in the fair value hierarchy as of December 31, 2017, is reported on a schedule following the Portfolio of Investments. Stocks are generally valued based upon closing sales prices reported on recognized securities exchanges on which the securities are principally traded and are generally categorized as Level 1. Stocks listed on the NASDAQ are valued using the NASDAQ Official Closing Price ("NOCP"). Generally, the NOCP will be the last sale price unless the reported trade for the stock is outside the range of the bid/ask price. In such cases, the NOCP will be normalized to the nearer of the bid or ask price. For listed securities having no sales reported and for unlisted securities, such securities will be valued based upon the last reported bid price. 23 SunAmerica Senior Floating Rate Fund, Inc. NOTES TO FINANCIAL STATEMENTS -- December 31, 2017 -- (continued) As of the close of regular trading on the New York Stock Exchange ("NYSE"), securities traded primarily on security exchanges outside the United States are valued at the last sale price on such exchanges on the day of valuation, or if there is no sale on the day of valuation, at the last-reported bid price. If a security's price is available from more than one exchange, the Fund uses the exchange that is the primary market for the security. Such securities are generally categorized as Level 1. However, depending on the foreign market, closing prices may be up to 15 hours old when they are used to price a Fund's shares, and the Fund may determine that certain closing prices do not reflect the fair value of the security. This determination will be based on the review of a number of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U.S. markets that represent foreign securities and baskets of foreign securities. If the Fund determines that closing prices do not reflect the fair value of the securities, the Fund will adjust the previous closing prices in accordance with pricing procedures approved by the Board to reflect what it believes to be the fair value of the securities as of the close of regular trading on the NYSE. The Fund may also fair value securities in other situations, for example, when a particular foreign market is closed but the Fund is open. For foreign equity securities and foreign equity futures contracts, the Fund uses an outside pricing service to provide it with closing market prices and information used for adjusting those prices, and when so adjusted, such securities and futures are generally categorized as Level 2. Bonds, debentures, and other debt securities are valued at evaluated bid prices obtained for the day of valuation from a Board-approved pricing service, and are generally categorized as Level 2. The pricing service may use valuation models or matrix pricing which considers information with respect to comparable bond and note transactions, quotations from bond dealers, or by reference to other securities that are considered comparable in such characteristics as rating, interest rate, and maturity date, option adjusted spread models, prepayments projections, interest rate spreads, and yield curves to determine current value. If a price is unavailable from a Board-approved pricing service, the securities may be priced at the mean of two independent quotes obtained from brokers. Senior secured floating rate loans ("Loans") are valued at the average of available bids in the market for such Loans, as provided by a Board-approved loan pricing service, and are generally categorized as Level 2. Investments in registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded. Investments in registered investment companies are generally categorized as Level 1. Forward foreign currency contracts ("forward contracts") are valued at the 4:00 pm Eastern time forward rate and are generally categorized as Level 2. The Board is responsible for the share valuation process and has adopted policies and procedures (the "PRC Procedures") for valuing the securities and other assets held by the Fund, including procedures for the fair valuation of securities and other assets for which market quotations are not readily available or are unreliable. The PRC Procedures provide for the establishment of a pricing review committee, which is responsible for, among other things, making certain determinations in connection with the Fund's fair valuation procedures. Securities for which market quotations are not readily available or the values of which may be significantly impacted by the occurrence of developments or significant events are generally categorized as Level 3. There is no single standard for making fair value determinations, which may result in prices that vary from those of other funds. Derivative Instruments: Forward Foreign Currency Contracts: During the period, the Fund used forward contracts to protect against uncertainty in the level of future exchange rates. A forward contract is an agreement between two parties to buy or sell currency at a set price on a future date. The market value of the contract will fluctuate with changes in currency exchange rates. The contract is marked-to-market daily using the forward rate and the cumulative change in market value is recorded by the Fund as unrealized appreciation or depreciation. On the settlement date, the Fund records either realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. 24 SunAmerica Senior Floating Rate Fund, Inc. NOTES TO FINANCIAL STATEMENTS -- December 31, 2017 -- (continued) Risks to the Fund of entering into forward contracts include counterparty risk, market risk and illiquidity risk. Counterparty risk arises upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts. If the counterparty defaults, the Fund's loss will generally consist of the net amount of contractual payments that the Fund has not yet received though the Fund's maximum exposure due to counterparty risk could extend to the notional amount of the contract. Market risk is the risk that the value of the forward contract will depreciate due to unfavorable changes in the exchange rates. These contracts may involve market risk in excess of the unrealized appreciation or depreciation reported on the Statement of Assets and Liabilities. Illiquidity risk arises because the secondary market for forwards may have less liquidity relative to markets for other securities. Currency transactions are also subject to risks different from those of other portfolio transactions. Because currency control is of great importance to the issuing governments and influences economic planning and policy, purchases and sales of currency and related instruments can be adversely affected by government exchange controls, limitations or restrictions on repatriation of currency, and manipulations or exchange restrictions imposed by governments. Forward foreign currency contracts outstanding at the end of the period, if any, are reported on a schedule following the Fund's Portfolio of Investments. Master Agreements: The Fund holds derivative instruments and other financial instruments whereby the Fund may be a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements or similar agreements ("Master Agreements") with certain counterparties that govern such instruments. Master Agreements may contain provisions regarding, among other things, the parties' general obligations, representations, agreements, collateral requirements, events of default and early termination. Collateral can be in the form of cash or securities as agreed to by the Fund and applicable counterparty. Collateral requirements are generally determined based on the Fund's net position with each counterparty. Master Agreements may also include certain provisions that require the Fund to post additional collateral upon the occurrence of certain events, such as when a Fund's net assets fall below a specified level. In addition, Master Agreements typically specify certain standard termination events, such as failure of a party to pay or deliver, credit support defaults and other events of default. Termination events applicable to the Fund may also occur upon a decline in the Fund's net assets below a specified level over a certain period of time. Additional termination events applicable to counterparties may occur upon a decline in a counterparty's long-term and short-term credit ratings below a specified level, or upon a decline in the ratings of a counterparty's credit support provider. Upon the occurrence of a termination event, the other party may elect to terminate early and cause settlement of all instruments outstanding pursuant to a particular Master Agreement, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the Fund's counterparties to elect early termination could cause the Fund to accelerate the payment of liabilities, which settlement amounts could be in excess of the amount of assets that are already posted as collateral. Typically, the Master Agreement will permit a single net payment in the event of default. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events. As a result, the early termination with respect to derivative instruments subject to Master Agreements that are in a net liability position could be material to the Fund's financial statements. The Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities. The following tables represent the value of derivatives held as of December 31, 2017, by their primary underlying risk exposure and respective location on the Statement of Assets and Liabilities and the effect of derivatives on the Statement of Operations for the year ended December 31, 2017. The derivative contracts held during the period are not accounted for as hedging instruments under GAAP. For a detailed presentation of derivatives held as of December 31, 2017, please refer to a schedule following the Fund's Portfolio of Investments.
Asset Derivatives Liability Derivatives ----------------- -------------------- Foreign Foreign Exchange Contracts Exchange Contracts -------------------------- ----------------- Forward Foreign Forward Foreign Currency Contracts(1) Currency Contracts(2) ------------------------------------- -------------------- $11,686 $61,907 ======= =======
Statement of Assets and Liabilities Location: (1) Unrealized appreciation on forward foreign currency contracts (2) Unrealized depreciation on forward foreign currency contracts 25 SunAmerica Senior Floating Rate Fund, Inc. NOTES TO FINANCIAL STATEMENTS -- December 31, 2017 -- (continued)
Change in Unrealized Realized Gain (Loss) Appreciation (Depreciation) on Derivatives Recognized on Derivatives Recognized in Statement of Operations in Statement of Operations -------------------------- ------------------------- Foreign Foreign Exchange Contracts Exchange Contracts -------------------------- ---------------- Forward Foreign Forward Foreign Currency Contracts(1) Currency Contracts(2) ------------------------------------- ------------------- $(144,733) $(40,197) ========== ========
Statement of Operations Location: (1) Net realized gain (loss) on forward contracts (2) Change in unrealized appreciation (depreciation) on forward contracts The following table represents the average monthly balance of derivatives held during the year ended December 31, 2017:
Average Amount Outstanding During the Period --------------------- Foreign Fund Exchange Contracts(1) ---- --------------------- Senior Floating Rate............... $2,591,727 ==========
- (1) Amounts represent notional amounts in US dollars. The following table sets forth the Fund's derivative assets and liabilities by counterparty, net of amounts available for offset under Master Agreements and net of the related collateral pledged/(received) as of December 31, 2017. The repurchase agreements held by the Fund as of December 31, 2017, are also subject to Master Agreements but are not included in the following tables. See the Portfolio of Investments and the Notes to the Financial Statements for more information about the Fund's holdings in repurchase agreements.
AIG Senior Floating Rate Fund ----------------------------------------------------------------- Derivative Assets(1) Derivative Liabilities(1) --------------------------------- ------------------------------- Forward Forward Net Foreign Foreign Derivative Collateral Currency OTC Options Currency OTC Options Assets Pledged/ Counterparty Contracts Swaps Purchased Total Contracts Swaps Written Total (Liabilities) (Received)(2) ------------ --------- ----- --------- ------- --------- ----- ------- ------- ------------- ------------- Bank of America, N.A.......... $ -- $-- $-- $ -- $35,672 $-- $-- $35,672 $(35,672) $-- Citibank N.A.................. -- -- -- -- 26,235 -- -- 26,235 (26,235) -- HSBC Bank USA, N.A............ 11,686 -- -- 11,686 -- -- -- -- 11,686 -- ------- --- --- ------- ------- --- --- ------- -------- --- Total......................... $11,686 $-- $-- $11,686 $61,907 $-- $-- $61,907 $(50,221) $-- ======= === === ======= ======= === === ======= ======== ===
Net Counterparty Amount(3) ------------ --------- Bank of America, N.A.......... $(35,672) Citibank N.A.................. (26,235) HSBC Bank USA, N.A............ 11,686 -------- Total......................... $(50,221) ========
- (1)Gross amounts of recognized assets and liabilities not offset in the Statement of Assets and Liabilities. (2)For each respective counterparty, collateral pledged or (received) is limited to an amount not to exceed 100% of the net amount of the derivative asset/liability in the above table. (3)Net amount represents the net amount due (to)/from counterparty in the event of a default based on the contractual set-off rights under the agreement. Repurchase Agreements: The Fund, along with other affiliated registered investment companies, pursuant to procedures adopted by the Board and applicable guidance from the Securities and Exchange Commission ("SEC"), may transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by U.S. Treasury or federal agency obligations. In a repurchase agreement, the seller of a security agrees to repurchase the security at a mutually agreed-upon time and price, which reflects the effective rate of return for the term of the agreement. For repurchase agreements and joint repurchase agreements, the Fund's custodian takes possession of the collateral pledged for investments in such repurchase agreements ("repo" or collectively "repos"). The underlying collateral is valued daily on a mark to market basis, plus accrued interest, to ensure that the value, at the time the agreement is entered into, is equal to at least 102% of the repurchase price, including accrued interest. In 26 SunAmerica Senior Floating Rate Fund, Inc. NOTES TO FINANCIAL STATEMENTS -- December 31, 2017 -- (continued) the event of default of the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited. As of December 31, 2017, the Fund held an undivided interest in a joint repurchase agreement with Bank of America Securities LLC:
Percentage Principal Ownership Amount ---------- --------- Senior Floating Rate Fund......................... 2.21% $995,000
As of such date, the repurchase agreement in that joint account and the collateral thereof were as follows: Bank of America Securities LLC, dated December 29, 2017, bearing interest at a rate of 1.38% per annum, with principal amount of $45,000,000, a repurchase price of $45,006,900, and a maturity date of January 2, 2018. The repurchase agreement is collateralized by the following:
Interest Maturity Type of Collateral Rate Date Principal Amount Value ------------------ -------- ---------- ---------------- ----------- U.S. Treasury Notes........... 1.13% 09/30/2021 $47,460,900 $45,894,320
As of December 31, 2017, the Fund held an undivided interest in a joint repurchase agreement with Barclays Capital, Inc.:
Percentage Principal Ownership Amount ---------- ---------- Senior Floating Rate Fund......................... 2.21% $1,105,000
As of such date, the repurchase agreement in that joint account and the collateral thereof were as follows: Barclays Capital, Inc., dated December 29, 2017, bearing interest at a rate of 1.35% per annum, with a principal amount of $50,000,000, a repurchase price of $50,007,500, and a maturity date of January 2, 2018. The repurchase agreement is collateralized by the following:
Interest Maturity Type of Collateral Rate Date Principal Amount Value ------------------ -------- ---------- ---------------- ----------- U.S. Treasury Notes........... 2.00% 11/15/2026 $52,646,000 $50,985,545
As of December 31, 2017, the Fund held an undivided interest in a joint repurchase agreement with BNP Paribas SA:
Percentage Principal Ownership Amount ---------- ---------- Senior Floating Rate Fund.......... 2.23% $1,895,000
As of such date, the repurchase agreement in that joint account and the collateral thereof were as follows: BNP Paribas SA, dated December 29, 2017, bearing interest at a rate of 1.35% per annum, with a principal amount of $85,000,000, a repurchase price of $85,012,750, and a maturity date of January 2, 2018. The repurchase agreement is collateralized by the following:
Interest Maturity Type of Collateral Rate Date Principal Amount Value ------------------ -------- ---------- ---------------- ----------- U.S. Treasury Notes........... 2.13% 05/15/2025 $87,944,000 $86,671,643
27 SunAmerica Senior Floating Rate Fund, Inc. NOTES TO FINANCIAL STATEMENTS -- December 31, 2017 -- (continued) As of December 31, 2017, the Fund held an undivided interest in a joint repurchase agreement with Deutsche Bank AG:
Percentage Principal Ownership Amount ---------- --------- Senior Floating Rate Fund......................... 2.21% $735,000
As of such date, the repurchase agreement in that joint account and the collateral thereof were as follows: Deutsche Bank AG, dated December 29, 2017, bearing interest at a rate of 1.39% per annum, with a principal amount of $33,185,000, a repurchase price of $33,190,125, and a maturity date of January 2, 2018. The repurchase agreement is collateralized by the following:
Interest Maturity Type of Collateral Rate Date Principal Amount Value ------------------ -------- ---------- ---------------- ----------- U.S. Treasury Notes........... 3.63% 08/15/2019 $32,518,000 $33,857,416
As of December 31, 2017, the Fund held an undivided interest in a joint repurchase agreement with RBS Securities, Inc.:
Percentage Principal Ownership Amount ---------- ---------- Senior Floating Rate Fund......................... 2.21% $1,770,000
As of such date, the repurchase agreement in that joint account and the collateral thereof were as follows: RBS Securities, Inc., dated December 29, 2017, bearing interest at a rate of 1.34% per annum, with a principal amount of $80,000,000, a repurchase price of $80,011,911, and a maturity date of January 2, 2018. The repurchase agreement is collateralized by the following:
Interest Maturity Type of Collateral Rate Date Principal Amount Value ------------------ -------- ---------- ---------------- ----------- U.S. Treasury Notes........... 1.25% 10/31/2018 $81,840,000 $81,664,044
When-Issued Securities and Forward Commitments: The Fund may purchase or sell when-issued securities that have been authorized, but not yet issued in the market. In addition, the Fund may purchase or sell securities on a forward commitment basis. A forward commitment involves entering into a contract to purchase or sell securities, typically on an extended settlement basis, for a fixed price at a future date. The Fund may engage in when-issued or forward commitment transactions in order to secure what is considered to be an advantageous price and yield at the time of entering into the obligation. The purchase of securities on a when-issued or forward commitment basis involves a risk of loss if the value of the security to be purchased declines before the settlement date. Conversely, the sale of securities on a when-issued or forward commitment basis involves the risk that the value of the securities sold may increase before the settlement date. Securities purchased or sold on a when-issued or forward commitment basis outstanding at the end of the period, if any, are included in investments purchased/sold on an extended settlement basis in the Statement of Assets and Liabilities. Loans: The Fund invests in senior loans which generally consist of direct debt obligations of companies (collectively, "Borrowers"), primarily U.S. companies and their affiliates, undertaken to finance the growth of the Borrower's business internally and externally, or to finance a capital restructuring. Transactions in senior loans may settle on a delayed basis. Loans outstanding at the end of the period, if any, are included in investments purchased/sold on an extended settlement basis in the Statement of Assets and Liabilities. Securities Transactions, Investment Income, Expenses, Dividends and Distributions to Shareholders: Security transactions are recorded on a trade date basis. Realized gains and losses on sales of investments are calculated on the identified cost basis. Interest income is accrued daily from settlement date except when collection is not expected. Dividend income is recorded on the ex-dividend date. For financial statement purposes, the Fund 28 SunAmerica Senior Floating Rate Fund, Inc. NOTES TO FINANCIAL STATEMENTS -- December 31, 2017 -- (continued) amortizes all premiums and accretes all discounts. Facility fees received, which were $226,822 for the year ended December 31, 2017, are accreted to income over the life of the Loans. Other income, including amendment fees, commitment fees, letter of credit fees, etc., which were $888,973 for the year ended December 31, 2017, are recorded as income when received or contractually due to the Fund. Net investment income, other than class specific expenses, and realized and unrealized gains and losses are allocated daily to each class of shares based upon the relative net asset value of outstanding shares (or the value of dividend-eligible shares, as appropriate) of each class of shares at the beginning of the day (after adjusting for the current capital share activity of the respective class). Dividends from net investment income are normally declared daily and paid monthly. Capital gain distributions, if any, are paid annually. The Fund records dividends and distributions to the shareholders on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts at fiscal year end based on their federal tax-basis treatment; temporary differences do not require reclassification. Net assets are not affected by the reclassifications. The Fund is considered a separate entity for tax purposes and intends to comply with the requirements of the Internal Revenue Code, as amended, applicable to regulated investment companies and distribute all of its taxable income, including any net capital gains on investments, to its shareholders. The Fund also intends to distribute sufficient net investment income and net capital gains, if any, so that the Fund will not be subject to excise tax on undistributed income and gains. Therefore, no federal income tax or excise tax provision is required. The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained, assuming examination by tax authorities. Management has analyzed the Fund's tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years 2014-2016 or expected to be taken in the Fund's 2017 tax return. The Fund is not aware of any tax provisions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months. The Fund files U.S. federal and certain state income tax returns. With few exceptions, the Fund is no longer subject to U.S. federal and state tax examinations by tax authorities for tax returns ending before 2014. Foreign Currency Translation: The books and records of the Fund is maintained in U.S. dollars. Assets and liabilities denominated in foreign currencies and commitments under forward foreign currency contracts are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation. The Fund does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in the market prices of securities held at the end of the period. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the changes in the market prices of portfolio securities sold during the period. Realized foreign exchange gains and losses on other assets and liabilities and change in unrealized foreign exchange gains and losses on other assets and liabilities located in the Statements of Operations include realized foreign exchange gains and losses from currency gains or losses between the trade and the settlement dates of securities transactions, the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Funds' books and the U.S. dollar equivalent amounts actually received or paid and changes in the unrealized foreign exchange gains and losses relating to the other assets and liabilities arising as a result of changes in the exchange rates. New Accounting Pronouncement: In October 2016, the SEC adopted amendments to rules under the 1940 Act ("final rules") intended to modernize the reporting and disclosure of information by registered investment companies. The final rules amend Regulation S-X and require funds to provide standardized, enhanced derivative disclosure in 29 SunAmerica Senior Floating Rate Fund, Inc. NOTES TO FINANCIAL STATEMENTS -- December 31, 2017 -- (continued) fund financial statements in a format designed for individual investors. The amendments to Regulation S-X also update the disclosures for other investments and investments in and advances to affiliates and amend the rules regarding the general form and content of fund financial statements. The compliance date for the amendments to Regulation S-X was August 1, 2017. All required changes have been made in accordance with Regulation S-X. Note 3. Capital Share Transactions Transactions in capital shares of each class of the Fund were as follows:
For the For the year ended year ended December 31, 2017 December 31, 2016 ------------------------ ------------------------ Shares Amount Shares Amount Class A ---------- ------------ ---------- ------------ Shares sold................. 3,434,101 $ 27,824,751 4,951,013 $ 39,136,197 Reinvested distributions.... 421,399 3,408,788 440,371 3,436,435 Shares redeemed............. (8,657,492) (70,030,581) (4,091,329) (31,742,954) ---------- ------------ ---------- ------------ Net increase (decrease).. (4,801,992) $(38,797,042) 1,300,055 $ 10,829,678 ========== ============ ========== ============ For the For the year ended year ended December 31, 2017 December 31, 2016 ------------------------ ------------------------ Shares Amount Shares Amount Class C ---------- ------------ ---------- ------------ Shares sold................. 1,459,830 $ 11,815,111 1,250,845 $ 9,840,545 Reinvested distributions.... 487,601 3,943,236 545,310 4,246,724 Shares redeemed............. (4,475,181) (36,188,359) (5,119,483) (39,717,705) ---------- ------------ ---------- ------------ Net increase (decrease).. (2,527,750) $(20,430,012) (3,323,328) $(25,630,436) ========== ============ ========== ============ For the period April 20, 2017@ through December 31, 2017 ------------------------ Shares Amount Class W ---------- ------------ Shares sold................. 3,180,792 $ 25,734,259 Reinvested distributions.... 24,217 196,167 Shares redeemed............. (763,311) (6,184,018) ---------- ------------ Net increase (decrease).. 2,441,698 $ 19,746,408 ========== ============
----- @ Inception date of class Note 4. Purchases and Sales of Securities During the year ended December 31, 2017, the Fund's cost of purchases and proceeds from sale of long-term investments, including loan principal paydowns, were $188,916,735 and $224,477,679, respectively. Note 5. Investment Advisory Agreement and Other Transactions with Affiliates The Fund has entered into an Investment Advisory and Management Agreement (the "Advisory Agreement") with SunAmerica. Pursuant to the Advisory Agreement, SunAmerica provides continuous supervision of the Fund and administers its corporate affairs, subject to the general review and oversight of the Board. In connection therewith, SunAmerica furnishes the Fund with office facilities, maintains certain of the Fund's books and records and pays the salaries and expenses of all personnel, including officers of the Fund who are employees of SunAmerica and its affiliates. SunAmerica also selects, contracts with and compensates the subadviser to manage the Fund's assets. The Fund will pay SunAmerica a monthly management fee at the following annual rates, based on the average daily net assets of the Fund: 0.85% on the first $1 billion; 0.80% on the next $1 billion; and 0.75% in excess of $2 billion. Wellington Management Company LLP ("Wellington") acts as subadviser to the Fund pursuant to a Subadvisory Agreement with SunAmerica. Under the Subadvisory Agreement, Wellington manages the investment and 30 SunAmerica Senior Floating Rate Fund, Inc. NOTES TO FINANCIAL STATEMENTS -- December 31, 2017 -- (continued) reinvestment of the Fund's assets. For compensation for its services as subadviser, Wellington is entitled to receive from SunAmerica a monthly fee payable at the following annual rates: 0.30% of average daily net assets on the first $500 million and 0.25% thereafter. The fee paid to the subadviser is paid by SunAmerica and not the Fund. Pursuant to the Administrative Services Agreement (the "Administrative Agreement"), SunAmerica acts as the Fund's administrator and is responsible for providing and supervising the performance by others, of administrative services in connection with the operations of the Fund, subject to supervision by the Fund's Board. For its services, SunAmerica receives an annual fee equal to 0.20% of average daily net assets of the Fund. For the year ended December 31, 2017, SunAmerica earned fees as reflected in the Statement of Operations based upon the aforementioned rate. The Fund has entered into a Distribution Agreement with AIG Capital Services, Inc. ("ACS" or the "Distributor"), an affiliate of the Adviser. The Fund has adopted a Distribution Plan on behalf of each class of shares (other than Class W shares) (each a "Plan" and collectively, the "Plans") in accordance with the provisions of Rule 12b-1 under the 1940 Act, hereinafter referred to as the "Class A Plan" and "Class C Plan". In adopting the Plans, the Board determined that there was a reasonable likelihood that each such Plan would benefit the Fund and the shareholders of the respective class. The sales charge and distribution fees of a particular class will not be used to subsidize the sale of shares of any other class. Under the Class A Plan and Class C Plan, the Distributor receives payments from the Fund at an annual rate of 0.10% and 0.50%, respectively, of the average daily net assets of the Fund's Class A and Class C shares to compensate the Distributor and certain securities firms for providing sales and promotional activities for distributing that class of shares. The distribution costs for which the Distributor may be compensated include fees paid to broker-dealers that have sold Fund shares, commissions and other expenses such as those incurred for sales literature, prospectus printing and distribution and compensation to wholesalers. It is possible that in any given year, the amount paid to the Distributor under each Class' Plan may exceed the Distributor's distribution costs as described above. The Plans provide that the Class A and Class C shares of the Fund will pay the Distributor an account maintenance fee up to an annual rate of 0.25% of the aggregate average daily net assets of such class of shares for payments to compensate the Distributor and certain securities firms for account maintenance activities. For the year ended December 31, 2017, ACS received fees (see Statement of Operations) based upon the aforementioned rates. The Fund has entered into an Administrative and Shareholder Services Agreement with ACS, pursuant to which ACS is paid an annual fee of 0.15% of average daily net assets of Class W shares as compensation for providing additional shareholder services to Class W shareholders. For the year ended December 31, 2017, ACS earned fees as reflected in the Statements of Operations based on the aforementioned rate. For the year ended December 31, 2017, ACS received sales charges on Class A shares of $109,033, of which $48,333 was reallowed to affiliated broker-dealers and $39,243 to non-affiliated broker-dealers. In addition, ACS receives the proceeds of contingent deferred sales charges paid by investors in connection with certain redemptions of Class A and Class C shares. For the year ended December 31, 2017, ACS received contingent deferred sales charges of $8,268 The Fund has entered into a Service Agreement with SunAmerica Fund Services, Inc. ("SAFS") an affiliate of the Adviser. Under the Service Agreement, SAFS performs certain shareholder account functions by assisting the Fund's transfer agent in connection with the services that it offers to the shareholders of the Fund. The Service Agreement, which permits the Fund to compensate SAFS for services rendered based upon an annual rate of 0.22% of average daily net assets, is approved annually by the Board. For the year ended December 31, 2017, the Fund incurred the following expenses, which are included in the transfer agent fees and expenses payable in the Statement of Assets and Liabilities and in transfer agent fees and expenses in the Statement of Operations to compensate SAFS pursuant to the terms of the Service Agreement.
Payable at Expense December 31, 2017 - -------- ----------------- Class A............................ $261,253 $17,151 Class C............................ 323,606 25,463 Class W............................ 13,827 3,953
31 SunAmerica Senior Floating Rate Fund, Inc. NOTES TO FINANCIAL STATEMENTS -- December 31, 2017 -- (continued) SunAmerica has contractually agreed to waive fees and/or reimburse expenses to the extent necessary to cap the Fund's annual operating expenses at 1.45% for Class A, 1.75% for Class C and 1.25% for Class W of average daily net assets. For purposes of waived fees and/or reimbursed expense calculations, annual Fund operating expenses shall not include extraordinary expenses, (i.e., expenses that are unusual in nature and/or infrequent in occurrence, such as litigation), or acquired fund fees and expenses, brokerage commissions and other transactional expenses relating to the purchase and sale of portfolio securities, interest, taxes and governmental fees and other expenses not incurred in the ordinary course of the Fund's business. The expense reimbursements and fee waivers will continue indefinitely, unless terminated by the Board, including a majority of the Disinterested Directors. For the year ended December 31, 2017, SunAmerica waived fees and/or reimbursed expenses as follows: Class A $447,622, Class C $707,019 and Class W $31,506. Note 6. Federal Income Taxes The following details the tax basis distributions as well as the components of distributable earnings. The tax basis components of distributable earnings differ from the amounts reflected in the Statement of Assets and Liabilities by temporary book/tax differences primarily arising from dividends payable and wash sales.
Distributable Earnings Tax Distributions Tax Distributions ---------------------------------------- ------------------------------------- ------------------------------------- For the year ended December 31, 2017 For the year ended December 31, 2017 For the year ended December 31, 2016 ---------------------------------------- ------------------------------------- ------------------------------------- Long-term Gains/ Unrealized Long-term Long-term Ordinary Capital and Appreciation/ Ordinary Capital Ordinary Capital Income Other Losses (Depreciation) Income Gains Income Gains -------- ---------------- -------------- ----------- --------- ------------ --------- $6,252 $(22,880,388) $(5,072,933) $9,629,365 $-- $10,100,667 $--
Capital Loss Carryforwards: At December 31, 2017 for Federal income tax purposes, the Fund has $22,880,388 of unlimited long-term capital losses. For the year ended December 31, 2017, the fund utilized short-term capital losses of $307,778 and expired capital loss carryforwards of $27,303,177.+ ----- + On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the "Act") was enacted which changed various technical rules governing the tax treatment of regulated investment companies. The changes are generally effective for taxable years beginning after the date of enactment. Under the Act, a fund will be permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term losses rather than being considered all short-term as under previous law. Under the current law, capital losses realized after October 31 and specified ordinary losses may be deferred and treated as occurring on the first day of the following year. For the year ended December 31, 2017, the fund deferred $38,019 of late year ordinary losses, $214,499 of post-October short-term capital gains and $565,264 of post-October long-term capital losses. For the year ended December 31, 2017, reclassifications were made to increase accumulated net realized gain (loss) by $27,254,496 and undistributed net investment income by $48,681, with an offsetting reduction to paid in capital of $27,303,177. The reclassifications arising from book/tax differences were due primarily to the reclassification of foreign currency gains and losses and expiration of capital loss carryforwards. Unrealized appreciation and depreciation in the value of investments at December 31, 2017 for federal income tax purposes were as follows: Cost (tax basis)................... $257,364,732 ============ Gross unrealized appreciation...... 1,898,505 Gross unrealized depreciation...... (6,938,068) ------------ Net unrealized depreciation........ $ (5,039,563) ============
32 SunAmerica Senior Floating Rate Fund, Inc. NOTES TO FINANCIAL STATEMENTS -- December 31, 2017 -- (continued) On December 22, 2017, the Tax Cuts and Jobs Act (the "Act") was signed into law. Certain provisions of the Act were effective upon enactment with the remainder becoming effective for tax years beginning after December 31, 2017. Management is currently evaluating the impact, if any, on the financial statements and the accompanying notes to financial statements. Note 7. Line of Credit The Fund, along with certain other funds managed by the Adviser has access to a $75 million committed unsecured line of credit and a $50 million uncommitted unsecured line of credit. The committed and uncommitted lines of credit are renewable on an annual basis with State Street Bank and Trust Company ("State Street"), the Fund's custodian. Interest is currently payable on the committed line of credit at the higher of the Federal Funds Rate (but not less than zero) plus 125 basis points or the One-Month London Interbank Offered Rate (but not less than zero) plus 125 basis points and State Street's discretionary bid rate on the uncommitted line of credit. There is also a commitment fee of 25 basis points per annum on the daily unused portion of the committed line of credit and an upfront fee of $25,000 on the uncommitted line of credit. Borrowings under the line of credit will commence when the respective Fund's cash shortfall exceeds $100,000. For the year ended December 31, 2017, the Fund did not utilize the line of credit. Note 8. Interfund Lending Pursuant to the exemptive relief granted by the SEC, the Fund is permitted to participate in an interfund lending program among investment companies advised by SunAmerica or an affiliate. The interfund lending program allows the participating funds to borrow money from and lend money to each other for temporary or emergency purposes. An interfund loan will be made under this facility only if the participating funds receive a more favorable interest rate than would otherwise be available from a typical bank for a comparable transaction. For the year ended December 31, 2017, the Fund did not participate in this program. Note 9. Investment Concentration The Fund invests primarily in participations and assignments, or acts as a party to the primary lending syndicate of a variable rate senior loan interest to United States corporations, partnerships, and other entities. If the lead lender in a typical lending syndicate becomes insolvent, enters receivership or, if not FDIC insured, enters into bankruptcy, the Fund may incur certain costs and delays in receiving payment, or may suffer a loss of principal and/or interest. When the Fund purchases a participation of a senior loan interest, the Fund typically enters into a contractual agreement with the lender or other third party selling the participation but not with the borrower directly. As such, the Fund is subject to the credit risk of the borrower, selling participant, lender or other persons positioned between the Fund and the borrower. Note 10. Unfunded Loan Commitments At December 31, 2017, the Fund had the following unfunded loan commitments which could be extended at the option of the Borrower:
Borrower Type Maturity Date Principal Amount Value -------- ------------ ------------- ---------------- ------- DuBois Chemicals, Inc.............. Delayed Draw 03/15/2024 $66,667 $66,833
33 SunAmerica Senior Floating Rate Fund, Inc. REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors of SunAmerica Senior Floating Rate Fund, Inc. and Shareholders of the AIG Senior Floating Rate Fund Opinion on the Financial Statements We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of AIG Senior Floating Rate Fund (formerly SunAmerica Senior Floating Rate Fund) (the "Fund") as of December 31, 2017, the related statement of operations for the year ended December 31, 2017, the statement of changes in net assets for each of the two years in the period ended December 31, 2017, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2017 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2017 and the financial highlights for each of the five years in the period ended December 31, 2017 in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2017 by correspondence with the custodian, brokers and selling or agent banks; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion. /s/ PricewaterhouseCoopers LLP Houston, Texas February 27, 2018 We have served as the auditor of one or more investment companies in the AIG Funds family of funds since 1984. 34 SunAmerica Senior Floating Rate Fund, Inc. DIRECTORS AND OFFICERS INFORMATION -- December 31, 2017 -- (unaudited) The following table contains basic information regarding the Trustees and Officers that oversee operations of the Funds and other investment companies within the Fund complex. Unless otherwise noted, the address of each Director and executive officer is Harborside 5, 185 Hudson Street, Suite 3300, Jersey City, NJ 07311.
Number of Position Term of Portfolios in Name, Held With Office and Fund Complex Address and SunAmerica Length of Principal Occupations Overseen by Age* Complex Time Served(4) During Past 5 Years Trustee(1) ----------------------- ------------ -------------- ------------------------------- ------------- Disinterested Trustees Dr. Judith L. Craven Trustee 2000- Retired. 77 Age: 72 present William F. Devin Trustee 1998- Retired. 77 Age: 79 present Richard W. Grant Trustee 2011- Retired. 28 Age: 72 Chairman present of the Board Stephen J. Gutman Trustee 2001- Senior Vice President and 28 Age: 74 present Associate Broker, Corcoran Group (real estate) (2002 to present); President, SJG Marketing, Inc. (2009 to present). Interested Trustee Peter A. Harbeck(3) Trustee 2001- President (1995 to present), 152 Age: 63 present CEO and Director, SunAmerica. (1992 to present); Director, AIG Capital Services, Inc. ("ACS") (1993 to present); Chairman, President and CEO, Advisor Group, Inc. (2004 to 2016). Officers John T. Genoy President 2007- Chief Financial Officer, N/A Age: 49 present SunAmerica (2002 to present); Senior Vice President, SunAmerica (2003 to present); Chief Operating Officer, SunAmerica (2006 to present). Gregory N. Bressler Secretary 2005- Senior Vice President and N/A Age: 51 present General Counsel, SunAmerica (2005 to present). Kathleen D. Fuentes Chief Legal 2013- Vice President and Deputy N/A Age: 48 Officer and present General Counsel, Assistant SunAmerica (2006 to Secretary present). James Nichols Vice 2006- Director, President and CEO, N/A Age: 51 President present ACS (2006 to present); Senior Vice President, SunAmerica (2002 to present). Kara Murphy Vice 2014- Director of Research, N/A Age: 45 President present SunAmerica (2007-2013); Chief Investment Officer, SunAmerica (2013 to present).
Name, Address and Other Directorships Age* Held by Trustee(2) ----------------------- --------------------------------- Disinterested Trustees Dr. Judith L. Craven Director, Sysco Corp. (1996 Age: 72 to 2017); Director, Luby's, Inc. (1998 to present). William F. Devin None Age: 79 Richard W. Grant None Age: 72 Stephen J. Gutman None Age: 74 Interested Trustee Peter A. Harbeck(3) None Age: 63 Officers John T. Genoy N/A Age: 49 Gregory N. Bressler N/A Age: 51 Kathleen D. Fuentes N/A Age: 48 James Nichols N/A Age: 51 Kara Murphy N/A Age: 45
35 SunAmerica Senior Floating Rate Fund, Inc. DIRECTORS AND OFFICERS INFORMATION -- December 31, 2017 -- (unaudited) (continued)
Number of Position Term of Portfolios in Name, Held With Office and Fund Complex Address and SunAmerica Length of Principal Occupations Overseen by Other Directorships Age* Complex Time Served(4) During Past 5 Years Trustee(1) Held by Trustee(2) --------------------- ----------- -------------- ------------------------------ ------------- ------------------- Officers Gregory R. Kingston Treasurer 2014- Vice President, SunAmerica N/A N/A Age: 51 present (2001 to present); Head of Address: Mutual Fund Administration, 2919 Allen Parkway SunAmerica (2014 to Houston, Texas 77019 present). Shawn Parry Vice 2014- Vice President (2014 to N/A N/A Age: 45 President present present) and Assistant Vice Address: and President, SunAmerica 2919 Allen Parkway Assistant (2005 to 2014). Houston, Texas 77019 Treasurer Donna McManus Vice 2014- Vice President, SunAmerica, N/A N/A Age: 56 President present (2014 to present); Managing and Director, BNY Mellon (2009- Assistant 2014). Treasurer Christopher C. Joe Chief 2017 to Chief Compliance Officer, N/A N/A Age: 47 Compliance Present AIG Funds, Anchor Series Address: Officer Trust, Seasons Series Trust, 2919 Allen Parkway SunAmerica Series Trust, Houston, Texas 77019 VALIC Company I and VALIC Company II (2017-Present); Chief Compliance Officer, VALIC Retirement Services Company (2017-Present); Chief Compliance Officer, The Variable Annuity Life Insurance Company (2017 to Present); Chief Compliance Officer, Invesco PowerShares (2012-2017); Chief Compliance Officer, Invesco Investment Advisers, LLC (2010-2013); U.S. Compliance Director, Invesco Ltd. (2006-2014); Deputy Chief Compliance Officer, Invesco Advisers, LLC (2014- 2015). Matthew J. Hackethal Anti-Money 2006- Acting Chief Compliance N/A N/A Age: 46 Laundering present Officer, AIG Funds, Anchor Compliance Series Trust, Seasons Series Officer Trust, SunAmerica Series Trust, VALIC Company I and VALIC Company II (2016 to 2017); Chief Compliance Officer, SunAmerica (2006 to Present); AML Compliance Officer, AIG Funds, Anchor Series Trust, Seasons Series Trust, SunAmerica Series Trust, VALIC Company I and VALIC Company II (2006 to Present); and Vice President, SunAmerica (2011 to Present).
36 SunAmerica Senior Floating Rate Fund, Inc. DIRECTORS AND OFFICERS INFORMATION -- December 31, 2017 -- (unaudited) (continued) -------- * The business address for each Trustee is the Harborside 5, 185 Hudson Street, Suite 3300, Jersey City, NJ 07311. (1) The "Fund Complex" means two or more registered investment companies that hold themselves out to investors as related companies for purposes of investment services or have a common investment adviser or an investment adviser that is an affiliated person of the Adviser. The "Fund Complex" includes the Fund (1 fund), SunAmerica Money Market Funds Inc. (1 fund), SunAmerica Equity Funds (2 funds), SunAmerica Income Funds (3 funds), SunAmerica Series, Inc. (6 funds), Anchor Series Trust (8 portfolios), SunAmerica Specialty Series (7 funds), SunAmerica Series Trust (55 portfolios), VALIC Company I (34 portfolios), VALIC Company II (15 funds), Seasons Series Trust (20 portfolios). (2) Directorships of companies required to report to the SEC under the Securities Exchange Act of 1934 (i.e., "public companies") or other investment companies registered under the 1940 Act. (3) Interested Trustee, as defined within the 1940 Act, because he is an officer and a director of the Adviser and a director of the principal underwriter of the Fund. (4) Trustees serve until their successors are duly elected and qualified. Each officer will hold office for an indefinite term, until the date he or she resigns or retires or until his/her successor is duly elected and qualifies. Additional information concerning the Trustees is contained in the Statement of Additional Information which is available, without charge, by calling (800) 858-8850. 37 SunAmerica Senior Floating Rate Fund, Inc. SHAREHOLDER TAX INFORMATION -- (unaudited) Certain tax information regarding the Fund is required to be provided to shareholders based upon the Fund's income and distributions for the taxable year ended December 31, 2017. The information necessary to complete your income tax returns is included with your Form 1099-DIV, which will be mailed to shareholders in early 2018. During the year ended December 31, 2017, the Fund paid the following dividends along with the percentage of ordinary income dividends that qualified for the 70% dividends received deductions for corporations:
Net Qualifying % for Long-Term the 70% Dividends Capital Gains Received Deduction - ------------- ------------------ Class A............................ $ -- --% Class C............................ -- --
For the year ended December 31, 2017, certain dividends paid by the Fund may be subject to a maximum tax rate of 15%, as provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Of the distributions paid during the fiscal year, none may be considered qualified dividend income. 38 SunAmerica Senior Floating Rate Fund, Inc. COMPARISON: FUND vs. INDEX -- (unaudited) As required by the Securities and Exchange Commission, the graph on the following pages compares the performance of a $10,000 investment in the Fund to a similar investment in the index. Please note that the term "inception," as used herein, reflects the date on which a specific class of shares commenced operations. It is important to note that the Fund is a professionally managed mutual fund while the index is not available for investment and is unmanaged. The comparison is shown for illustrative purposes only. The graph presents the performance of Class C shares of the Fund. The performance of the other class will vary based upon the difference in sales charges and fees assessed to shareholders of that class. Past performance does not predict future results. 39 SunAmerica Senior Floating Rate Fund, Inc. COMPARISON: FUND vs. INDEX -- (unaudited) (continued) The AIG Senior Floating Rate Fund (Class C) returned 3.96%, only modestly underperforming its benchmark, the S&P/LSTA Leveraged Loan Index (the "LLI"),* which returned 4.12% for the annual period ended December 31, 2017. The Fund outperformed the Bloomberg Barclays U.S. Aggregate Bond Index,* a broad-based fixed income market index, which returned 3.54% for the same annual period. In aggregate, security selection contributed most favorably to the Fund's results, driven primarily by strong selection within the energy, retailers, leisure and financial institutions industries. This was partially offset by weaker selection within the consumer products and consumer cyclical services industries, which detracted. Industry allocation overall added value as well, albeit far more modestly. The Fund's overweight position in energy contributed positively to relative results, as oil prices rose and the energy industry outpaced the LLI during the annual period as a whole. Our focus in this industry was on companies that operate in low cost basins and those reducing their cost structures, improving their balance sheets and growing production. The Fund's underweight to retailers, which underperformed the LLI during the annual period, also boosted relative results. As traditional brick and mortar retailers continued to lose share to online retailers like Amazon.com during the annual period, we remained cautious on retail and thus took on an idiosyncratic approach to the industry within the Fund. Detracting from the Fund's relative performance was its underweight to media and entertainment, which outperformed the LLI during the annual period. We remained cautious on this industry, focusing on television and theater-related issues, as we believe several other sub-industries, including radio, printing and newspapers, appear to be in decline. Having an underweight to automotive, one of the strongest performing industries in the LLI during the annual period, also hurt. We remained cautious on this industry based on concerns about the auto cycle and the potential for capital expenditures to increase materially due to autonomous driving vehicles. Quality allocation as a whole contributed positively. Compared to the LLI, we maintained overweight positions in loans rated single-B and lower, as we believed they offered the best risk/reward profiles. Among individual loans, we found what we considered to be the best opportunities among higher quality, U.S.-focused issuers in less cyclical industries. The individual loans that contributed most positively to the Fund's absolute returns were those of fitness club owner and operator Town Sports International Holdings, Inc., oil and gas properties owner and operator American Energy Marcellus LLC, application software provider to the oil and gas exploration and production industry Pinnacle Holdco SARL and shallow water jack-up drilling services provider Shelf Drilling Holdings, Ltd. Significant detractors from the Fund's absolute returns included loans issued by wind producing power plant owner and operator TE Holdcorp LLC, beauty and personal care products manufacturer and seller Revlon Consumer Products Corp., coal miner Foresight Energy LLC and weight control program provider Weight Watchers International, Inc. -------- Past performance is no guarantee of future results. * The S&P/LSTA Leveraged Loan Index (LLI) reflects the market-weighted performance of U.S. dollar-denominated institutional leveraged loans. The LLI is the only domestic leveraged loan index that utilizes real-time market weightings, spreads and interest payments. The Bloomberg Barclays U.S. Aggregate Bond Index represents securities that are U.S. domestic, taxable and dollar denominated. The index covers components for government and corporate securities, mortgage pass-through securities and asset-backed securities. Indices are not managed and an investor cannot invest directly into an index. Securities listed may or may not be a part of current portfolio construction. The Fund is not a money market fund and its net asset value may fluctuate. Investments in loans involve certain risks including nonpayment of principal and interest; collateral impairment; non-diversification and borrower industry concentration; and lack of an active trading market, in certain cases, which may impair the Fund's ability to obtain full value for loans sold. The Fund may invest all or substantially all of its assets in loans or other securities (e.g., unsecured loans or high yield securities) that are rated below investment grade, or in comparable unrated securities. Credit risks include the possibility of a default on the loan or bankruptcy of the borrower. The value of these loans is subject to a greater degree of volatility in response to interest rate fluctuations. 40 SunAmerica Senior Floating Rate Fund, Inc. COMPARISON: FUND vs. INDEX -- (unaudited) (continued) [CHART] Senior Floating S&P/LSTA Leveraged Bloomberg Barclays U.S. Rate Class C Loan Index++ Aggregate Bond Index** --------------- ------------------- ---------------------- 12/31/2006 $10,000.00 $10,000.00 $10,000.00 1/31/2007 10,084.00 10,087.31 9,995.87 2/28/2007 10,153.00 10,156.66 10,150.02 3/31/2007 10,184.00 10,197.25 10,150.35 4/30/2007 10,246.00 10,257.83 10,205.09 5/31/2007 10,297.00 10,320.28 10,127.70 6/30/2007 10,315.00 10,343.28 10,097.76 7/31/2007 9,984.00 9,997.02 10,182.00 8/31/2007 9,995.00 10,020.27 10,306.80 9/30/2007 10,148.00 10,216.06 10,384.97 10/31/2007 10,214.00 10,313.59 10,478.27 11/30/2007 10,043.00 10,170.44 10,666.69 12/31/2007 10,043.00 10,202.22 10,696.66 1/31/2008 9,679.00 9,872.69 10,876.39 2/29/2008 9,424.00 9,625.06 10,891.44 3/31/2008 9,372.00 9,616.40 10,928.59 4/30/2008 9,685.00 9,972.65 10,905.77 5/31/2008 9,807.00 10,066.41 10,825.79 6/30/2008 9,844.00 10,091.56 10,817.11 7/31/2008 9,697.00 10,014.41 10,808.27 8/31/2008 9,676.00 10,001.33 10,910.81 9/30/2008 9,047.00 9,386.24 10,764.27 10/31/2008 7,569.00 8,145.65 10,510.19 11/30/2008 6,684.00 7,452.86 10,852.29 12/31/2008 6,184.00 7,233.34 11,257.21 1/31/2009 6,548.00 7,768.77 11,157.85 2/28/2009 6,495.00 7,829.32 11,115.72 3/31/2009 6,480.00 7,942.25 11,270.25 4/30/2009 7,275.00 8,632.88 11,324.19 5/31/2009 7,872.00 9,159.57 11,406.30 6/30/2009 8,384.00 9,561.09 11,471.14 7/31/2009 8,813.00 10,013.98 11,656.20 8/31/2009 9,070.00 10,240.75 11,776.89 9/30/2009 9,423.00 10,568.28 11,900.63 10/31/2009 9,596.00 10,626.79 11,959.40 11/30/2009 9,646.00 10,654.13 12,114.21 12/31/2009 9,909.00 10,967.33 11,924.81 1/31/2010 10,185.00 11,191.19 12,107.00 2/28/2010 10,191.00 11,223.33 12,152.19 3/31/2010 10,427.00 11,476.05 12,137.29 4/30/2010 10,584.00 11,644.75 12,263.64 5/31/2010 10,359.00 11,382.48 12,366.79 6/30/2010 10,287.00 11,329.32 12,560.73 7/31/2010 10,424.00 11,503.52 12,694.80 8/31/2010 10,472.00 11,542.50 12,858.12 9/30/2010 10,601.00 11,704.61 12,871.84 10/31/2010 10,745.00 11,887.90 12,917.64 11/30/2010 10,783.00 11,929.99 12,843.39 12/31/2010 10,901.00 12,078.11 12,704.90 1/31/2011 11,067.00 12,316.12 12,719.65 2/28/2011 11,151.00 12,373.14 12,751.47 3/31/2011 11,148.00 12,371.41 12,758.52 4/30/2011 11,197.00 12,450.26 12,920.50 5/31/2011 11,194.00 12,439.03 13,089.14 6/30/2011 11,150.00 12,393.01 13,050.80 7/31/2011 11,159.00 12,411.17 13,257.91 8/31/2011 10,615.00 11,864.49 13,451.62 9/30/2011 10,653.00 11,915.33 13,549.44 10/31/2011 10,912.00 12,259.82 13,564.02 11/30/2011 10,867.00 12,199.58 13,552.23 12/31/2011 10,908.00 12,261.77 13,701.18 1/31/2012 11,098.00 12,529.45 13,821.43 2/29/2012 11,174.00 12,626.08 13,818.27 3/31/2012 11,256.00 12,723.05 13,742.56 4/30/2012 11,323.00 12,817.00 13,894.96 5/31/2012 11,254.00 12,730.42 14,020.66 6/30/2012 11,320.00 12,818.31 14,026.16 7/31/2012 11,428.00 12,966.68 14,219.64 8/31/2012 11,540.00 13,112.42 14,228.96 9/30/2012 11,664.00 13,257.78 14,248.48 10/31/2012 11,678.00 13,299.70 14,276.50 11/30/2012 11,717.00 13,341.00 14,299.03 12/31/2012 11,803.00 13,445.90 14,278.67 1/31/2013 11,942.00 13,588.96 14,178.81 2/28/2013 11,950.00 13,617.44 14,249.91 3/31/2013 12,031.00 13,729.67 14,261.28 4/30/2013 12,139.00 13,811.59 14,405.62 5/31/2013 12,134.00 13,837.71 14,148.48 6/30/2013 12,055.00 13,755.98 13,929.66 7/31/2013 12,166.00 13,891.78 13,948.70 8/31/2013 12,160.00 13,886.56 13,877.36 9/30/2013 12,168.00 13,920.45 14,008.74 10/31/2013 12,265.00 14,021.83 14,121.99 11/30/2013 12,316.00 14,091.18 14,069.17 12/31/2013 12,365.00 14,156.94 13,989.67 1/31/2014 12,443.00 14,249.59 14,196.38 2/28/2014 12,461.00 14,274.71 14,271.83 3/31/2014 12,498.00 14,326.22 14,247.53 4/30/2014 12,487.00 14,342.41 14,367.79 5/31/2014 12,522.00 14,441.56 14,531.33 6/30/2014 12,585.00 14,524.60 14,538.84 7/31/2014 12,561.00 14,520.45 14,502.36 8/31/2014 12,583.00 14,542.91 14,662.47 9/30/2014 12,496.00 14,456.13 14,562.95 10/31/2014 12,518.00 14,493.57 14,706.08 11/30/2014 12,557.00 14,565.56 14,810.40 12/31/2014 12,367.00 14,382.78 14,824.25 1/31/2015 12,376.00 14,430.51 15,135.10 2/28/2015 12,568.00 14,634.10 14,992.80 3/31/2015 12,609.00 14,688.46 15,062.43 4/30/2015 12,725.00 14,823.58 15,008.38 5/31/2015 12,753.00 14,851.41 14,972.24 6/30/2015 12,684.00 14,789.29 14,808.98 7/31/2015 12,661.00 14,788.37 14,911.92 8/31/2015 12,546.00 14,684.93 14,890.51 9/30/2015 12,441.00 14,589.56 14,991.23 10/31/2015 12,436.00 14,562.93 14,993.72 11/30/2015 12,285.00 14,435.36 14,954.10 12/31/2015 12,138.00 14,283.79 14,905.77 1/31/2016 12,034.00 14,190.52 15,110.89 2/29/2016 11,977.00 14,115.75 15,218.08 3/31/2016 12,323.00 14,504.75 15,357.71 4/30/2016 12,573.00 14,792.69 15,416.65 5/31/2016 12,694.00 14,924.57 15,420.60 6/30/2016 12,700.00 14,927.72 15,697.68 7/31/2016 12,869.00 15,141.26 15,796.92 8/31/2016 12,957.00 15,254.97 15,778.85 9/30/2016 13,060.00 15,386.75 15,769.61 10/31/2016 13,149.00 15,513.76 15,648.99 11/30/2016 13,168.00 15,554.82 15,278.83 12/31/2016 13,323.00 15,735.68 15,300.37
Class A Class C Class W Senior -------------------------------------------------------- Floating Average Average Average Rate Annual Cumulative Annual Cumulative Annual Cumulative Fund# Return Return+ Return Return+ Return Return+ - -------------------------------------------------------- 1 Year Return 0.29% 4.14% 2.96% 3.96% N/A N/A -------------------------------------------------------------------------- 5 Year Return 2.75% 18.98% 3.25% 17.35% N/A N/A -------------------------------------------------------------------------- 10 Year Return 3.17% 42.07% 3.27% 37.91% N/A N/A -------------------------------------------------------------------------- Since Inception* 3.04% 45.61% 3.77% 104.49% N/A 2.69% --------------------------------------------------------------------------
# For the purposes of the table, it has been assumed that the maximum sales charge of 3.75% with respect to Class A shares was deducted from the initial investment in the Fund and that the CDSCs with respect to the Class C shares have been deducted, as applicable. + Cumulative returns do not include sales load. If sales load had been included, the return would have been lower. * Inception date: Class A: 10/04/2006; Class C: 08/31/1998; Class W: 04/20/2017 ++ The S&P/LSTA Leveraged Loan Index (LLI) reflects the market-weighted performance of U.S. dollar-denominated institutional leveraged loan portfolios. The LLI is the only domestic leveraged loan index that utilizes real-time market weightings, spreads and interest payments. ** The Bloomberg Barclays U.S. Aggregate Bond Index represents securities that are U.S. domestic, taxable and dollar denominated. The index covers components for government and corporate securities, mortgage pass-through securities and asset-backed securities. Indices are not managed and an investor cannot invest directly into an index. The Fund operated as a closed-end investment company with monthly repurchase offers until October 4, 2006, whereupon it converted to an open-end investment company. Information in the graph and table reflects performance of the Fund as a closed-end investment company through October 3, 2006, and the Fund may have performed differently if it were an open-end investment company prior to that date. For the 12 month period ended December 31, 2017, the AIG Senior Floating Rate Class C returned 2.96% compared to 4.12% for the S&P/LSTA Leveraged Loan Index and 3.54% for the Bloomberg Barclays U.S. Aggregate Bond Index. (The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.) -------- Performance data quoted represents past performance and is no guarantee of future results. Maximum Sales Charge: Class A: 3.75%; Contingent Deferred Sales Charge (CDSC): Class C: 1.00% CDSC. The fund's daily net asset values are not guaranteed and shares are not insured by the FDIC, the Federal Reserve Board or any other agency. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be higher or lower than the original cost. Current performance may be higher or lower than that shown. Performance as of the most recent month end is available at www.safunds.com 41 [LOGO] AIG Funds HARBORSIDE 5 185 HUDSON STREET, SUITE 3300 JERSEY CITY, NJ 07311 DIRECTORS CUSTODIAN DISCLOSURE OF QUARTERLY Dr. Judith L. Craven State Street Bank and PORTFOLIO HOLDINGS William F. Devin Trust Company The Fund is required to Richard W. Grant One Lincoln St. file its com-plete Stephen J. Gutman Boston, MA 02111 schedule of portfolio Peter A. Harbeck VOTING PROXIES ON FUND holdings with the U.S. OFFICERS PORTFOLIO SECURITIES Securities and Exchange John T. Genoy, President A description of the Commission for its first and Chief Executive policies and proce-dures and third fiscal quarters Officer that the Fund uses to on Form N-Q. The Fund's James Nichols, Vice determine how to vote Forms N-Q are available President proxies related to on the U.S. Securities Kara Murphy, Vice securities held in the and Exchange Commission's President Fund's portfolio, which website at Christopher C. Joe, is available in the http://www.sec.gov. You Chief Compliance Fund's Statement of can also review and Officer Additional Information obtain copies of the Gregory N. Bressler, may be ob-tained without Forms N-Q at the U.S. Secretary charge upon request, by Securities and Exchange Gregory R. Kingston, calling (800) 858-8850. Commission's Public Treasurer This in-formation is also Refer-ence Room in Kathleen Fuentes, Chief available from the EDGAR Washington, DC Legal Officer and database on the U.S. (information on the Assistant Secretary Secu-rities and Exchange operation of the Public Matthew J. Hackethal, Commission's website at Reference Room may be Anti-Money Laundering http://www.sec.gov. ob-tained by calling Compliance Officer DELIVERY OF SHAREHOLDER 1-800-SEC-0330). Donna McManus, Vice DOCUMENTS PROXY VOTING RECORD ON President and The Fund has adopted a FUND PORTFOLIO SECURITIES Assistant Treasurer policy that allows it to Information regarding how Shawn Parry, Vice send only one copy of the the Fund voted proxies President and Fund's prospectus, proxy relating to securities Assistant Treasurer material, annual report held in the Fund's INVESTMENT ADVISER and semi-annual report portfolio during the most SunAmerica Asset (the "shareholder recent twelve month Management, LLC documents") to period ended June 30 is Harborside 5 shareholders with available, once filed 185 Hudson Street, Suite multiple accounts with the U.S. Securities 3300 residing at the same and Exchange Commis-sion, Jersey City, NJ 07311 "household." This without charge, upon DISTRIBUTOR practice is called request, by calling AIG Capital Services, householding and reduces (800) 858-8850 or on the Inc. Fund expenses, which U.S. Securities and Harborside 5 benefits you and other Exchange Commission's 185 Hudson Street, Suite shareholders. Unless the website at 3300 Fund receives http://www.sec.gov. Jersey City, NJ 07311 instructions to the This report is submitted SHAREHOLDER SERVICING con-trary, you will only solely for the general AGENT receive one copy of the information of AIG Fund Services, Inc. shareholder documents. shareholders of the Fund. Harborside 5 The Fund will continue to Distribution of this 185 Hudson Street, Suite household the report to persons other 3300 share-holder documents than shareholders of the Jersey City, NJ 07311 indefinitely, until we Fund is authorized only TRANSFER AGENT are instructed otherwise. in connection with a State Street Bank and If you do not wish to currently effective Trust Company participate in prospectus, setting forth P.O. Box 219373 householding, please details of the Fund, Kansas City, MO 64141 contact Shareholder which must precede or Services at (800) accompany this report. 858-8850 ext. 6010 or send a written request with your name, the name of your fund(s) and your account number(s) to AIG Funds c/o BFDS, P.O. Box 219186, Kansas City MO, 64121-9186. We will resume in-dividual mailings for your account within thirty (30) days of receipt of your request.
[GRAPHIC] Go Paperless!! Did you know that you have the option to receive your shareholder reports online? By choosing this convenient service, you will no longer receive paper copies of Fund documents such as annual reports, semi-annual reports, prospectuses and proxy statements in the mail. Instead, you are provided with quick and easy access to this information via the Internet. Why Choose Electronic Delivery? It's Quick -- Fund documents will be received faster than via traditional mail. It's Convenient -- Elimination of bulky documents from personal files. It's Cost Effective -- Reduction of your Fund's printing and mailing costs. To sign up for electronic delivery, follow these simple steps: 1 Go to www.aig.com/funds 2 Click on the link to "Go Paperless!!"
The email address you provide will be kept strictly confidential. Once your enrollment has been processed, you will begin receiving email notifications when anything you receive electronically is available online. You can return to www.aig.com/funds at any time to change your email address, edit your preferences or to cancel this service if you choose to resume physical delivery of your Fund documents. Please note - this option is only available to accounts opened through the Funds. For information on receiving this report online, see inside back cover. AIG Funds are advised by SunAmerica Asset Management, LLC (SAAMCo) and distributed by AIG Capital Services, Inc. (ACS), Member FINRA. Harborside 5, 185 Hudson Street, Suite 3300, Jersey City, NJ 07311, 800-858-8850. SAAMCo and ACS are members of American International Group, Inc. (AIG). This fund report must be preceded by or accompanied by a prospectus. Investors should carefully consider a Fund's investment objectives, risks, charges and expenses before investing. The prospectus, containing this and other important information, can be obtained from your financial adviser, the AIG Funds Sales Desk at 800-858-8850, ext. 6003, or at aig.com/funds. Read the prospectus carefully before investing. [LOGO] aig.com/funds SFANN - 12/17 Item 2. Code of Ethics The SunAmerica Senior Floating Rate Fund, Inc. (the "registrant") has adopted a Code of Ethics applicable to its Principal Executive and Principal Accounting Officers pursuant to Section 406 of the Sarbanes-Oxley Act of 2002 (the "Code"). During the fiscal year ended December 31, 2017, there were no reportable waivers or implicit waivers to a provision of the Code of Ethics that applies to the registrant's Principal Executive and Principal Accounting Officers (the "Covered Officers"). During the fiscal year ended December 31, 2017, however, there were reportable amendments to the Code that apply to the Covered Officers, and that relate to one or more of the items set forth in paragraph (b) of Item 2 of Form N-CSR. In particular, the Code has been amended to provide an enhanced description of the Covered Officers' responsibilities, which include a responsibility to observe the ethical principles contained in the Code. Item 3. Audit Committee Financial Expert. As of January 16, 2018, the registrant's Board of Directors has determined that Eileen A. Kamerick, a Director of the registrant, qualifies as an audit committee financial expert, as defined in Item 3(b) of Form N-CSR. Ms. Kamerick is considered to be independent for purposes of Item 3(a)(2) of Form N-CSR. Item 4. Principal Accountant Fees and Services. (a)--(d) Aggregate fees billed to the registrant for the last two fiscal years for professional services rendered by the registrant's principal accountant were as follows: 2016 2017 -------- -------- (a) Audit Fees $104,777 $107,713 (b) Audit-Related Fees $ 0 $ 0 (c) Tax Fees $ 15,872 $ 16,216 (d) All Other Fees $ 0 $ 0 Audit Fees include amounts related to the audit of the registrant's annual financial statements and services normally provided by the principal accountant in connection with statutory and regulatory filings. Tax Fees principally include tax compliance, tax advice, tax planning and preparation of tax returns. Aggregate fees billed to the investment adviser and Adviser Affiliates (as defined below in Item 4(e)) that are required to be pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X for the last two fiscal years for services rendered by the registrant's principal accountant were as follows: 2016 2017 ------- ------- (b) Audit-Related Fees $ 0 $ 0 (c) Tax Fees $ 0 $ 0 (d) All Other Fees $ 0 $ 0 (e) (1) The registrant's audit committee pre-approves all audit services provided by the registrant's principal accountant for the registrant and all non-audit services provided by the registrant's principal accountant for the registrant, its investment adviser and any entity controlling, controlled by, or under common control with the investment adviser ("Adviser Affiliates") that provides ongoing services to the registrant, if the engagement by the investment adviser or Adviser Affiliate relates directly to the operations and financial reporting of the registrant. The audit committee has not presently established any pre-approval policies and procedures that permit the pre-approval of the above services other than by the full audit committee. Certain de minimis exceptions are allowed for non- audit services in accordance with Rule 2-01(c)(7)(i)(C) of Regulation S-X as set forth in the registrant's audit committee charter. (2) No services included in (b)-(d) above in connection with fees billed to the registrant or the investment adviser or Adviser Affiliates were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. (f) Not applicable. (g) The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant's principal accountant for non-audit services rendered to the registrant, its investment adviser, and Adviser Affiliates that provides ongoing services to the registrant for 2016 and 2017 were $15,872 and $16,216, respectively. (h) Not applicable. Item 5. Audit Committee of Listed Registrants. Not applicable. Item 6. Investments. Included in Item 1 to the Form. Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable. Item 8. Portfolio Managers of Closed-End Management Investment Companies. Not applicable. Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. Not applicable. Item 10. Submission of Matters to a Vote of Security Holders. There were no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board of Directors that were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item 10. Item 11. Controls and Procedures. (a) An evaluation was performed within 90 days of the filing of this report, under the supervision and with the participation of the registrant's management, including the President and Treasurer, of the effectiveness of the design and operation of the registrant's disclosure controls and procedures (as defined under Rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c))). Based on that evaluation, the registrant's management, including the President and Treasurer, concluded that the registrant's disclosure controls and procedures are effective. (b) There was no change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d))) that occurred during the registrant's last fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal contro1 over financial reporting. Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. Not applicable. Item 13. Exhibits. (a) (1) Code of Ethics applicable to its Principal Executive and Principle Accounting Officers pursuant to Section 406 of the Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.406. Code of Ethics. (2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT. (3) Not applicable. (b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) and Section 906 of the Sarbanes- Oxley Act of 2002 attached hereto as Exhibit 99.906.CERT. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SunAmerica Senior Floating Rate Fund, Inc. By: /s/ John T. Genoy ------------------------------------ John T. Genoy President Date: March 9, 2018 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ John T. Genoy ------------------------------------ John T. Genoy President Date: March 9, 2018 By: /s/ Gregory R. Kingston ------------------------------------ Gregory R. Kingston Treasurer Date: March 9, 2018 EX-99.CODE ETH 2 d497360dex99codeeth.txt CODE OF ETHICS Exhibit 99.CODEETH ANCHOR SERIES TRUST SUNAMERICA EQUITY FUNDS SUNAMERICA INCOME FUNDS SUNAMERICA MONEY MARKET FUNDS, INC. SUNAMERICA SENIOR FLOATING RATE FUND, INC. SUNAMERICA SERIES, INC. SUNAMERICA SPECIALTY SERIES (collectively, the "Funds") CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND PRINCIPAL ACCOUNTING OFFICERS I. Introduction The Boards of Directors/Trustees of the Funds (the "Boards") have adopted this Code of Ethics (this "Code") pursuant to Section 406 of the Sarbanes-Oxley Act applicable to the Funds' Principal Executive Officer and Principal Accounting Officer (the "Covered Officers" as set forth in Exhibit A) for the purpose of deterring wrongdoing and promoting: . Honest and ethical conduct, including the ethical handling of conflicts of interest between personal and professional relationships; . Full, fair, accurate, timely and understandable disclosure; . Compliance with applicable laws and governmental rules and regulations; . The prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and . Accountability for adherence to the Code. Each Covered Officer must comply with applicable law. Each Covered Officer also has a responsibility to conduct himself or herself in an honest and ethical manner and to adhere to a high standard of business ethics. Each Covered Officer has leadership responsibilities that include promoting a culture of high ethical standards and a commitment to compliance, maintaining a work environment that encourages the internal reporting of compliance concerns and promptly addressing compliance concerns. Each Covered Officer should also be sensitive to situations that may give rise to conflicts of interest. II. Honest and Ethical Conduct a. Honesty, Diligence, and Professional Responsibility Covered Officers are expected to observe both the form and the spirit of the ethical principles contained in this Code. In particular, Covered Officers must perform their duties and responsibilities for the Funds: . with honesty, diligence, and a commitment to professional and ethical responsibility; . carefully, thoroughly and in a timely manner; and . in conformity with applicable professional and technical standards. b. Ethical Handling of Actual and Apparent Conflicts of Interest A "conflict of interest" occurs when a Covered Officer's private interest improperly interferes with the interests of, or his or her service to, a Fund. For example, a conflict of interest would arise if a Covered Officer, or a member of his or her immediate family, receives improper personal benefits as a result of his or her position with the Fund. Certain conflicts of interest arise out of the relationships between Covered Officers and the Funds and already are subject to conflict of interest provisions in the Investment Company Act of 1940, as amended (the "Investment Company Act") and the Investment Advisers Act of 1940, as amended (the "Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Funds because of their status as "affiliated persons" of the Funds. The compliance programs and procedures of the Funds and the Funds' investment adviser, SunAmerica Asset Management, LLC ("SAAMCo"), are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code. Although typically not presenting an opportunity for improper personal benefit, conflicts may arise from, or as a result of, the contractual relationship between, the Funds and SAAMCo, of which the Covered Officers may also be officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the Funds or for SAAMCo, or for both), be involved in establishing policies and implementing decisions that will have different effects on the Funds and SAAMCo. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Funds and SAAMCo, and is consistent with the performance by the Covered Officers of their duties as officers of the Funds. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the Boards that the Covered Officers may also be officers or employees of other investment companies advised by SAAMCo. 2 In particular, each Covered Officer must: . Not use his or her personal influence or personal relationships to influence investment decisions or financial reporting by a Fund whereby the Covered Officer would benefit personally to the detriment of the Fund; . Not cause a Fund to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit of the Fund; and . Report at least annually to the Funds' Ethics Committee any material transaction or relationship that could reasonably be expected to give rise to a conflict of interest. There are certain potential conflict of interest situations that should be discussed with the Ethics Committee if material. Examples of these include: . Service as a director on the board of any company; . The receipt of any non-nominal gifts; . The receipt of any entertainment from any company with which a Fund has current or prospective business dealings unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety; . Any ownership interest in, or any consulting or employment relationship with, any of the Funds' service providers, other than SAAMCo, the Funds' principal underwriter or any affiliated person thereof; . A direct or indirect financial interest in commissions, transaction charges or spreads paid by a Fund for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment, such as compensation or equity ownership. c. Conduct in the Preparation of Financial Statements Covered Officers must not knowingly make any misrepresentations regarding the Funds' financial statements or any facts used in the preparation of the Funds' financial statements. This section is intended to prohibit: . making, or permitting or directing another to make, materially false or misleading entries in the Funds' financial statements or records; . failing to correct the Funds' financial statements or records that are materially false or misleading; and . signing, or permitting or directing another to sign, a document containing materially false or misleading financial information. 3 d. Obligations to the Independent Auditor of the Funds In dealing with the Funds' independent auditor, Covered Officers must be candid and not knowingly misrepresent facts or knowingly fail to disclose material facts, and must respond to specific inquiries and requests by the Funds' independent auditor. Covered Officers must not take any action, or direct any person to take any action, to fraudulently influence, coerce, manipulate or mislead the Funds' independent auditor in the performance of an audit of the Funds' financial statements for the purpose of rendering such financial statements materially misleading. III. Disclosure and Compliance . Each Covered Officer will familiarize himself or herself with the disclosure requirements generally applicable to the Funds; . Each Covered Officer will not knowingly misrepresent, or cause others to misrepresent, facts about the Funds to others, whether within or outside the Funds, including to the Boards and auditors, or to governmental regulators and self-regulatory organizations; . Each Covered Officer will, to the extent appropriate within his or her area of responsibility, consult with other officers and employees of the Funds and SAAMCo with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents that the Funds file with, or submit to, the SEC and in other public communications made by the Funds; and . It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations. IV. Reporting and Accountability Each Covered Officer must: . Upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Boards that he or she has received, read and understands the Code; . Annually thereafter affirm to the Boards that he or she has complied with the requirements of the Code; . Not retaliate against any other Covered Officer or affiliated person of the Funds for reports of potential violations of this Code, provided the reports are made in good faith; and 4 . Notify the Ethics Committee promptly if he or she knows of any violation of this Code. Failure to do so is itself a violation of this Code. The Ethics Committee is responsible for applying this Code to specific situations in which questions are presented to it and has the authority to interpret this Code in any particular situation. The Ethics Committee will also consider waivers sought by the Covered Officers. The Funds will act according to the following procedures in investigating and enforcing this Code: . The Ethics Committee will take all appropriate action to investigate any potential violations reported to it; . If, after such investigation, the Ethics Committee believes that no violation has occurred, the Ethics Committee is not required to take any further action; . If the Ethics Committee determines that a violation has occurred, it will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of SAAMCo or its board; or a recommendation to dismiss the Covered Officer; . The Ethics Committee will be responsible for granting waivers, as appropriate; . The Ethics Committee will inform the Boards of violations or waivers of this Code; and . Any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules. V. Other Policies and Procedures This Code shall be the sole Code of Ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to investment companies thereunder. Insofar as other policies or procedures of the Funds, SAAMCo, the Funds' principal underwriter or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The Code of Ethics of the Funds, SAAMCo and the Funds' principal underwriter, under Rule 17j-1 of the Investment Company Act, and SAAMCo's more detailed policies and procedures set forth in the SAAMCo Compliance Procedures Manual are separate requirements applying to Covered Officers and others, and are not part of this Code. 5 VI. Amendments Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the Boards. VII. Confidentiality All reports and records prepared or maintained pursuant to this Code shall be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Funds, the Ethics Committee, SAAMCo and the Boards and their independent counsel. VIII. Internal Use The Code is intended solely for internal use by the Funds and does not constitute an admission, by or on behalf of the Funds, as to any fact, circumstance or legal conclusion. Date: January 1, 2017 6 Exhibit A John T. Genoy, Principal Executive Officer Gregory R. Kingston, Principal Accounting Officer 7 EX-99.CERT 3 d497360dex99cert.txt SECTION 302 CERTIFICATION EXHIBIT 99.CERT CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT I, John T. Genoy, certify that: 1. I have reviewed this report on Form N-CSR of SunAmerica Senior Floating Rate Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: March 8, 2018 /s/ John T. Genoy ---------------------------------------- John T. Genoy President CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT I, Gregory R. Kingston, certify that: 1. I have reviewed this report on Form N-CSR of SunAmerica Senior Floating Rate Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: March 8, 2018 /s/ Gregory R. Kingston ---------------------------------------- Gregory R. Kingston Treasurer EX-99.906CERT 4 d497360dex99906cert.txt SECTION 906 CERTIFICATION EXHIBIT 99.906.CERT CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT John T. Genoy, President, and Gregory R. Kingston, Treasurer of SunAmerica Senior Floating Rate Fund, Inc. (the "registrant"), each certify to the best of his knowledge that: 1. The attached Form N-CSR report of the registrant fully complies with the requirements of Sections 13(a) and 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in such N-CSR report fairly represents, in all material respects, the financial conditions and results of operations of the registrant as of, and for, the periods presented in the report. Dated: March 8, 2018 /s/ John T. Genoy ------------------------------------ John T. Genoy President /s/ Gregory R. Kingston ------------------------------------ Gregory R. Kingston Treasurer