0001193125-19-308205.txt : 20191206 0001193125-19-308205.hdr.sgml : 20191206 20191206153034 ACCESSION NUMBER: 0001193125-19-308205 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20190930 FILED AS OF DATE: 20191206 DATE AS OF CHANGE: 20191206 EFFECTIVENESS DATE: 20191206 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUNAMERICA INCOME FUNDS CENTRAL INDEX KEY: 0000795307 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-04708 FILM NUMBER: 191272940 BUSINESS ADDRESS: STREET 1: HARBORSIDE 5 STREET 2: 185 HUDSON STREET, SUITE 3300 CITY: JERSEY CITY STATE: NJ ZIP: 07311 BUSINESS PHONE: 800-858-8850 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: SUNAMERICA INCOME PORTFOLIOS DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: INTEGRATED INCOME PORTFOLIOS DATE OF NAME CHANGE: 19900306 0000795307 S000007632 AIG U.S. Government Securities Fund C000020823 Class A SGTAX C000020825 Class C NASBX 0000795307 S000007633 AIG Flexible Credit Fund C000020826 Class A SHNAX C000020828 Class C SHNCX C000146854 Class W SHNWX 0000795307 S000007634 AIG Strategic Bond Fund C000020829 Class A SDIAX C000020830 Class B SDIBX C000020831 Class C NAICX C000152057 Class W SDIWX N-CSRS 1 d812174dncsrs.txt N-CSRS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-04708 --------------------------------------------- SunAmerica Income Funds -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) Harborside 5, 185 Hudson Street, Suite 3300, Jersey City, NJ 07311 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) John T. Genoy Senior Vice President SunAmerica Asset Management, LLC Harborside 5, 185 Hudson Street, Suite 3300, Jersey City, NJ 07311 -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (201) 324-6414 ----------------------------- Date of fiscal year end: March 31 -------------------------- Date of reporting period: September 30, 2019 ------------------------- Item 1. Reports to Stockholders SEMI-ANNUAL REPORT 2019 SUNAMERICA Income Funds [PHOTO] Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund's shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or your financial intermediary. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. At any time, you may elect to receive reports and other communications from a Fund electronically by calling 800-858-8850 or contacting your financial intermediary directly. You may elect to receive all future reports in paper free of charge. If your account is held directly at the Fund, you can inform the Fund that you wish to receive paper copies of reports by calling 800-858-8850. If your account is held through a financial intermediary, please contact the financial intermediary to make this election. Your election to receive paper will apply to all AIG Funds in which you are invested and may apply to all funds held with your financial intermediary. [LOGO] aig.com/funds Table of Contents SHAREHOLDER LETTER................... 2 EXPENSE EXAMPLE...................... 4 STATEMENTS OF ASSETS AND LIABILITIES. 6 STATEMENTS OF OPERATIONS............. 8 STATEMENTS OF CHANGES IN NET ASSETS.. 9 FINANCIAL HIGHLIGHTS................. 10 PORTFOLIO OF INVESTMENTS............. 13 NOTES TO FINANCIAL STATEMENTS........ 71 APPROVAL OF ADVISORY AGREEMENTS...... 87 SUPPLEMENT TO THE PROSPECTUS......... 91
Shareholder Letter -- (unaudited) Dear Shareholders, We are pleased to present this semi-annual update for the SunAmerica Income Funds (the "Income Funds") for the six-month period ended September 30, 2019. From a broad perspective, it was a period wherein fixed income market performance was primarily influenced by a global economic slowdown, dovish+ pivots by most central banks, persistent trade tensions and geopolitics. For the semi-annual period overall, the Bloomberg Barclays U.S. Aggregate Bond Index,++ a broad measure of the U.S. fixed income market, returned 5.42%. In the second quarter of 2019, when the semi-annual period began, global fixed income sectors generated strong returns. Global government bond yields in most developed and emerging markets countries declined and bond prices rose following a turn to more dovish monetary policies by most central banks in response to below-target inflation and slowing economic growth. The U.S. Federal Reserve (the "Fed") left interest rates unchanged but set the stage for potential rate cuts later in 2019, indicating it saw additional risks to its outlook from trade policy and manufacturing, among other factors. The European Central Bank (ECB) signaled the potential for a new round of quantitative easing alongside rate cuts later in 2019. The Bank of Japan committed to low rates at least through the spring of 2020. The People's Bank of China added liquidity into its banking system through its lending facility and intervened in foreign exchange markets to support its currency amid the trade war with the U.S. Most non-government bond sectors also posted positive returns during the second calendar quarter but lagged the especially strong performance of U.S. Treasury securities and other sovereign bonds. The exceptions were investment grade corporate bonds and emerging markets debt, which performed particularly well as a combination of low global interest rates along with still strong credit measures led investors to reach for yield. Global government bond yields declined further across most markets following the injection of monetary stimulus by the Fed, ECB and several other central banks during the third quarter of 2019. The Fed cut interest rates in July and September 2019 for the first time since 2008, in an effort to extend the U.S. economic expansion amid a slowdown in economic growth and trade uncertainty. The ECB unveiled a sweeping, long-term economic stimulus package to bolster the Eurozone economy against slowing growth and trade frictions. At its October meeting, the Bank of Japan opted to not change its interest rates but suggested possible interest rate cuts in the future, reflecting its fears that global risks could weigh on Japan's economic growth. The announcement came just hours after the U.S. Fed cut its targeted federal funds rate for the third time in less than four months. Key policymakers of the Bank of England indicated more accommodative monetary policy may be necessary to counter Brexit+++ uncertainty. The People's Bank of China cut its reserve requirement ratio/*/ in line with its strategy of targeted and modest easing. Overall, political uncertainty remained heightened, although the fixed income markets appeared to shrug off Brexit turmoil in the U.K. and a formal impeachment inquiry into the U.S. President. Corporate bonds also continued to perform strongly on optimism that monetary accommodation could offset the drag on global economic growth from restrictive trade policies. Among other non-government bond sectors, performance was mixed, as escalating U.S.-China trade tensions and political developments in Argentina resulted in increased investor risk aversion. For the semi-annual period overall, the U.S. Treasury yield curve flattened,/**/ as yields on intermediate- and longer-term maturities fell more than those on shorter-term maturities. The yield on the bellwether 10-year U.S. Treasury fell approximately 73 basis points/***/ to end the semi-annual period at 1.68%. Notably, for much of the semi-annual period, the U.S. Treasury yield curve experienced a partial inversion. More specifically, the differential between the yields on three-month and 10-year U.S. Treasury securities had inverted toward the end of March 2019 for the first time since mid-2007, meaning three-month yields were higher than those of 10-year U.S. Treasury securities, and remained that way through the end of the semi-annual period. An inverted yield curve has historically preceded most economic recessions. Still, many believed at the end of the semi-annual period that a recession was unlikely, anticipating the Fed and other central banks would ease monetary policy to reduce recessionary risks. Non-U.S. Treasury sector performance was mixed for the semi-annual period overall. Investment grade corporate bonds outperformed U.S. Treasuries most, followed by sovereign emerging markets debt. Other non-government bond sectors posted solid positive returns but lagged U.S. Treasury securities. 2 On the following pages, you will find financial statements and portfolio information for each of the Income Funds during the semi-annual period ended September 30, 2019. Thank you for being a part of AIG Funds. We value your ongoing confidence in us and look forward to serving your investment needs in the future. As always, if you have any questions regarding your investments, please contact your financial advisor or get in touch us directly at 800-858-8850 or via our website, www.aig.com/funds. Sincerely, The SunAmerica Income Funds Investment Professionals Tim Pettee Robert Vanden Assem David Albrycht Timothy Campion Dana Burns Frank Ossino Elizabeth Mauro Anders Faergemann Eric Hess John Yovanovic William Eastwood -------- Past performance is no guarantee of future results. + Dovish policy tends to suggest lower interest rates; opposite of hawkish. ++ The Bloomberg Barclays U.S. Aggregate Bond Index represents securities that are SEC-registered, taxable and dollar denominated. The index covers the U.S. investment-grade fixed-rate bond market, with index components for government and corporate securities, mortgage pass-through securities and asset-backed securities. Indices are not managed and an investor cannot invest directly in an index. +++Brexit refers to the U.K.'s path out of the European Union. * Reserve requirement ratio is the portion of reservable liabilities commercial banks must hold onto rather than lend out or invest. ** A flattening yield curve is one wherein the differential in yields between longer-term and shorter-term maturities narrows. ***A basis point is 1/100/th/ of a percentage point. 3 SunAmerica Income Funds EXPENSE EXAMPLE -- September 30, 2019 -- (unaudited) Disclosure of Portfolio Expenses in Shareholder Reports As a shareholder of a fund (each, a "Fund" and collectively the "Funds") in the SunAmerica Income Funds (the "Trust"), you may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges and (2) ongoing costs, including management fees, distribution and service fees and other Fund expenses. The example set forth below is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at April 1, 2019 and held until September 30, 2019. Actual Expenses The "Actual" section of the table provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the column under the heading entitled "Expenses Paid During the Six Months Ended September 30, 2019" to estimate the expenses you paid on your account during this period. The "Expenses Paid During the Six Months Ended September 30, 2019" column and the "Annualized Expense Ratio" column do not include small account fees that may be charged if your account balance is below $500 ($250 for retirement plan accounts). In addition, the "Expenses Paid During the Six Months Ended September 30, 2019" column and the "Annualized Expense Ratio" column do not include administrative fees that may apply to qualified retirement plan accounts. See the Funds' prospectuses, your retirement plan document and/or materials from your financial adviser for a full description of these fees. Had these fees been included, the "Expenses Paid During the Six Months Ended September 30, 2019" column would have been higher and the "Ending Account Value" column would have been lower. Hypothetical Example for Comparison Purposes The "Hypothetical" section of the table provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an annual rate of return of 5% before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. The "Expenses Paid During the Six Months Ended September 30, 2019" column and the "Annualized Expense Ratio" column do not include small account fees that may be charged if your account balance is below $500 ($250 for retirement plan accounts). In addition, the "Expenses Paid During the Six Months Ended September 30, 2019" column and the "Annualized Expense Ratio" column do not include administrative fees that may apply to qualified retirement plan accounts and accounts held through financial institutions. See the Funds' prospectuses, your retirement plan document and/or materials from your financial adviser for a full description of these fees. Had these fees been included, the "Expenses Paid During the Six Months Ended September 30, 2019" column would have been higher and the "Ending Account Value" column would have been lower. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, including sales charges on purchase payments, contingent deferred sales charges, small account fees and administrative fees, if applicable to your account. Please refer to the Funds' prospectus, your retirement plan document and/or material from your financial adviser, for more information. Therefore, the "Hypothetical" example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs and other fees were included, your costs would have been higher. 4 SunAmerica Income Funds EXPENSE EXAMPLE -- September 30, 2019 -- (unaudited) (continued)
Actual Hypothetical ------------------------------------------ ------------------------------------------ Ending Account Ending Account Expenses Paid Value using Expenses Paid Value using During the a Hypothetical During the Beginning Actual Six Months Beginning 5% Annual Six Months Account Value Return at Ended Account Value Return at Ended Annualized at April 1, September 30, September 30, at April 1, September 30, September 30, Expense Fund 2019 2019 2019 2019 2019 2019 Ratio* ---- ------------- -------------- ------------- ------------- -------------- ------------- ---------- AIG U.S. Government Securities# Class A....................... $1,000.00 $1,042.00 $5.05 $1,000.00 $1,020.05 $5.00 0.99% Class C....................... $1,000.00 $1,038.64 $8.36 $1,000.00 $1,016.80 $8.27 1.64% AIG Strategic Bond# Class A....................... $1,000.00 $1,043.49 $5.67 $1,000.00 $1,019.45 $5.60 1.11% Class B....................... $1,000.00 $1,039.70 $9.38 $1,000.00 $1,015.80 $9.27 1.84% Class C....................... $1,000.00 $1,039.85 $9.13 $1,000.00 $1,016.05 $9.02 1.79% Class W....................... $1,000.00 $1,041.52 $4.59 $1,000.00 $1,020.50 $4.55 0.90% AIG Flexible Credit# Class A....................... $1,000.00 $1,027.44 $5.27 $1,000.00 $1,019.80 $5.25 1.04% Class C....................... $1,000.00 $1,024.11 $8.60 $1,000.00 $1,016.50 $8.57 1.70% Class W....................... $1,000.00 $1,028.53 $4.26 $1,000.00 $1,020.80 $4.24 0.84%
-------- * Expenses are equal to each Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by 183 days then divided by 366 days (to reflect the one-half year period). These ratios do not reflect transaction costs, including sales charges on purchase payments, contingent deferred sales charges, small account fees and administrative fees, if applicable to your account. Please refer to your Prospectus, your retirement plan documents and/or materials from your financial adviser for more information. # During the stated period, the investment advisor either waived a portion of or all of the fees and assumed a portion of or all expenses for the Funds. As a result, if these fees and expenses had not been waived or assumed, the "Actual/Hypothetical Ending Account Value" would have been lower and the "Actual/Hypothetical Expenses Paid During the Six Months Ended September 30, 2019" and the "Annualized Expense Ratio" would have been higher. 5 SunAmerica Income Funds STATEMENTS OF ASSETS AND LIABILITIES -- September 30, 2019 -- (unaudited)
AIG U.S. Government AIG Strategic AIG Flexible Securities Bond Credit Fund Fund Fund ------------------- ------------- ------------ ASSETS: Investments at value (unaffiliated)*............................... $132,597,131 $312,034,305 $357,249,538 Repurchase agreements (cost approximates value).................... 854,000 -- -- Cash............................................................... 553 -- -- Foreign cash*...................................................... -- 4,199 -- Receivable for: Shares of beneficial interest sold............................... 15,243 910,645 1,550,226 Dividends and interest........................................... 568,172 2,667,912 3,530,833 Investments sold................................................. -- 708,030 2,583,186 Investments sold on an extended settlement basis................. -- 420,737 1,934,208 Prepaid expenses and other assets.................................. 6,046 7,425 7,079 Due from investment adviser for expense reimbursements/fee waivers. 63,482 69,055 112,310 Unrealized appreciation on forward foreign currency contracts...... -- 405,644 -- ------------ ------------ ------------ Total assets....................................................... 134,104,627 317,227,952 366,967,380 ------------ ------------ ------------ LIABILITIES: Payable for: Shares of beneficial interest redeemed........................... 132,949 634,047 502,758 Investments purchased............................................ -- 497,037 3,317,566 Investments purchased on an extended settlement basis............ -- 2,097,944 14,478,896 Investment advisory and management fees.......................... 71,466 166,243 208,397 Distribution and service maintenance fees........................ 42,378 111,039 96,943 Transfer agent fees and expenses................................. 28,783 62,048 73,968 Trustees' fees and expenses...................................... 578 2,406 1,674 Other accrued expenses........................................... 79,698 148,534 136,218 Dividends Payable.................................................. 2,934 109,939 416,016 Commitments (Note 10).............................................. -- 12,333 -- Unrealized depreciation on forward foreign currency contracts...... -- 30,858 -- ------------ ------------ ------------ Total liabilities.................................................. 358,786 3,872,428 19,232,436 ------------ ------------ ------------ Net assets......................................................... $133,745,841 $313,355,524 $347,734,944 ============ ============ ============ NET ASSETS REPRESENTED BY: Shares of beneficial interest, $0.01............................... $ 143,186 $ 924,906 $ 1,048,401 Paid-in capital.................................................... 146,151,986 341,270,573 367,546,157 Total accumulated earnings (loss).................................. (12,549,331) (28,839,955) (20,859,614) ------------ ------------ ------------ Net assets......................................................... $133,745,841 $313,355,524 $347,734,944 ============ ============ ============ *Cost Investments (unaffiliated)....................................... $126,166,882 $309,961,884 $366,580,862 ============ ============ ============ Foreign cash..................................................... $ -- $ 4,263 $ -- ============ ============ ============
See Notes to Financial Statements 6 SunAmerica Income Funds STATEMENTS OF ASSETS AND LIABILITIES -- September 30, 2019 -- (unaudited) (continued)
AIG U.S. Government Securities Fund ------------------- Class A (unlimited shares authorized): Net assets................................................................................................... $126,554,745 Shares of beneficial interest issued and outstanding......................................................... 13,548,394 Net asset value and redemption price per share (excluding any applicable contingent deferred sales charge)... $ 9.34 Maximum sales charge (4.75% of offering price)............................................................... $ 0.47 ------------ Maximum offering price to public............................................................................. $ 9.81 ============ Class B (unlimited shares authorized): Net assets................................................................................................... $ -- Shares of beneficial interest issued and outstanding......................................................... -- Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)..................................................................................................... $ -- ============ Class C (unlimited shares authorized): Net assets................................................................................................... $ 7,191,096 Shares of beneficial interest issued and outstanding......................................................... 770,215 Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)..................................................................................................... $ 9.34 ============ Class W (unlimited shares authorized): Net assets................................................................................................... $ -- Shares of beneficial interest issued and outstanding......................................................... -- Net asset value, offering and redemption price per share..................................................... $ -- ============
AIG Strategic Bond Fund ------------- Class A (unlimited shares authorized): Net assets................................................................................................... $157,491,661 Shares of beneficial interest issued and outstanding......................................................... 46,474,933 Net asset value and redemption price per share (excluding any applicable contingent deferred sales charge)... $ 3.39 Maximum sales charge (4.75% of offering price)............................................................... $ 0.17 ------------ Maximum offering price to public............................................................................. $ 3.56 ============ Class B (unlimited shares authorized): Net assets................................................................................................... $ 16,619,138 Shares of beneficial interest issued and outstanding......................................................... 4,909,113 Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)..................................................................................................... $ 3.39 ============ Class C (unlimited shares authorized): Net assets................................................................................................... $ 48,806,914 Shares of beneficial interest issued and outstanding......................................................... 14,357,736 Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)..................................................................................................... $ 3.40 ============ Class W (unlimited shares authorized): Net assets................................................................................................... $ 90,437,811 Shares of beneficial interest issued and outstanding......................................................... 26,748,789 Net asset value, offering and redemption price per share..................................................... $ 3.38 ============
AIG Flexible Credit Fund ------------ Class A (unlimited shares authorized): Net assets................................................................................................... $ 93,729,851 Shares of beneficial interest issued and outstanding......................................................... 28,305,805 Net asset value and redemption price per share (excluding any applicable contingent deferred sales charge)... $ 3.31 Maximum sales charge (4.75% of offering price)............................................................... $ 0.17 ------------ Maximum offering price to public............................................................................. $ 3.48 ============ Class B (unlimited shares authorized): Net assets................................................................................................... $ -- Shares of beneficial interest issued and outstanding......................................................... -- Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)..................................................................................................... $ -- ============ Class C (unlimited shares authorized): Net assets................................................................................................... $ 56,405,095 Shares of beneficial interest issued and outstanding......................................................... 16,935,016 Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)..................................................................................................... $ 3.33 ============ Class W (unlimited shares authorized): Net assets................................................................................................... $197,599,998 Shares of beneficial interest issued and outstanding......................................................... 59,599,235 Net asset value, offering and redemption price per share..................................................... $ 3.32 ============
See Notes to Financial Statements 7 SunAmerica Income Funds STATEMENTS OF OPERATIONS -- For the Six Months Ended September 30, 2019 -- (unaudited)
AIG U.S. Government AIG Strategic AIG Flexible Securities Bond Credit Fund Fund Fund ------------------- ------------- ------------ INVESTMENT INCOME: Dividends (unaffiliated)........................................................ $ -- $ 220,829 $ 395,842 Interest (unaffiliated)......................................................... 1,620,886 6,581,466 10,347,588 ---------- ----------- ----------- Total investment income*...................................................... 1,620,886 6,802,295 10,743,430 ---------- ----------- ----------- EXPENSES: Investment advisory and management fees......................................... 432,046 956,219 1,226,374 Distribution and Service maintenance fees: Class A....................................................................... 205,162 269,293 192,342 Class B....................................................................... -- 83,007 -- Class C....................................................................... 37,271 261,391 282,470 Service fee -- Class W.......................................................... -- 52,801 123,168 Transfer agent fees: Class A....................................................................... 154,641 185,429 134,375 Class B....................................................................... -- 21,153 -- Class C....................................................................... 10,948 63,732 65,613 Class W....................................................................... -- 78,208 181,998 Registration fees: Class A....................................................................... 13,926 15,062 15,128 Class B....................................................................... -- 7,389 -- Class C....................................................................... 12,170 13,286 10,444 Class W....................................................................... -- 8,863 29,893 Custodian and accounting fees................................................... 17,226 54,985 38,053 Reports to shareholders......................................................... 17,222 40,137 32,870 Audit and tax fees.............................................................. 28,401 37,578 35,465 Legal fees...................................................................... 12,093 17,491 17,491 Trustees' fees and expenses..................................................... 4,040 9,502 10,452 Interest expense................................................................ 1,290 -- -- Other expenses.................................................................. 10,869 15,416 15,190 ---------- ----------- ----------- Total expenses before fee waivers, expense reimbursements and expense recoupments.................................................................. 957,305 2,190,942 2,411,326 ---------- ----------- ----------- Net (fees waived and expenses reimbursed)/recouped by investment advisor (Note 3)..................................................................... (275,001) (397,199) (661,420) ---------- ----------- ----------- Net expenses.................................................................. 682,304 1,793,743 1,749,906 ---------- ----------- ----------- Net investment income (loss)..................................................... 938,582 5,008,552 8,993,524 ---------- ----------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES: Net realized gain (loss) on: Investments (unaffiliated)...................................................... 1,761,162 1,652,500 (845,473) Forward contracts............................................................... -- 605,328 -- Net realized foreign exchange gain (loss) on other assets and liabilities........ -- (4,257) -- ---------- ----------- ----------- Net realized gain (loss) on investments and foreign currencies................... 1,761,162 2,253,571 (845,473) ---------- ----------- ----------- Change in unrealized appreciation (depreciation) on: Investments (unaffiliated)...................................................... 2,689,177 4,485,830 608,773 Forward contracts............................................................... -- 200,692 -- Change in unrealized foreign exchange gain (loss) on other assets and liabilities..................................................................... -- (1,448) -- ---------- ----------- ----------- Net unrealized gain (loss) on investments and foreign currencies................. 2,689,177 4,685,074 608,773 ---------- ----------- ----------- Net realized and unrealized gain (loss) on investments and foreign currencies.... 4,450,339 6,938,645 (236,700) ---------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................. 5,388,921 11,947,197 8,756,824 ========== =========== =========== *Net of foreign withholding taxes on interest and dividends of................... $ -- $ 206 $ 687 ========== =========== ===========
See Notes to Financial Statements 8 SunAmerica Income Funds STATEMENTS OF CHANGES IN NET ASSETS
AIG U.S. Government Securities Fund AIG Strategic Bond Fund -------------------------- -------------------------- For the For the six months six months ended For the year ended For the year September 30, ended September 30, ended 2019 March 31, 2019 March 31, (unaudited) 2019 (unaudited) 2019 ------------- ------------ ------------- ------------ INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss)............................... $ 938,582 $ 2,017,207 $ 5,008,552 $ 11,222,805 Net realized gain (loss) on investments and foreign currencies................................................ 1,761,162 (208,411) 2,253,571 (7,805,709) Net unrealized gain (loss) on investments and foreign currencies................................................ 2,689,177 1,808,397 4,685,074 4,066,200 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations.................................................. 5,388,921 3,617,193 11,947,197 7,483,296 ------------ ------------ ------------ ------------ Distributions to shareholders from: Distributable earnings (Class A)........................... (1,071,132) (2,199,690) (2,908,471) (8,027,157) Distributable earnings (Class B)........................... -- -- (251,190) (733,209) Distributable earnings (Class C)........................... (39,475) (74,757) (803,485) (2,446,003) Distributable earnings (Class W)........................... -- -- (1,385,597) (2,727,614) ------------ ------------ ------------ ------------ Total distributions to shareholders.......................... (1,110,607) (2,274,447) (5,348,743) (13,933,983) ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from capital share transactions (Note 6)................................. (4,158,644) (13,952,704) 31,305,798 (78,026,418) ------------ ------------ ------------ ------------ Total increase (decrease) in net assets...................... 119,670 (12,609,958) 37,904,252 (84,477,105) NET ASSETS: Beginning of period.......................................... 133,626,171 146,236,129 275,451,272 359,928,377 ------------ ------------ ------------ ------------ End of period................................................ $133,745,841 $133,626,171 $313,355,524 $275,451,272 ============ ============ ============ ============
AIG Flexible Credit Fund -------------------------- For the six months ended For the year September 30, ended 2019 March 31, (unaudited) 2019 ------------- ------------ INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss)............................... $ 8,993,524 $ 17,265,863 Net realized gain (loss) on investments and foreign currencies................................................ (845,473) (3,698,348) Net unrealized gain (loss) on investments and foreign currencies................................................ 608,773 (5,841,750) ------------ ------------ Net increase (decrease) in net assets resulting from operations.................................................. 8,756,824 7,725,765 ------------ ------------ Distributions to shareholders from: Distributable earnings (Class A)........................... (3,039,027) (6,972,042) Distributable earnings (Class B)........................... -- -- Distributable earnings (Class C)........................... (1,348,081) (2,643,846) Distributable earnings (Class W)........................... (4,604,393) (7,914,239) ------------ ------------ Total distributions to shareholders.......................... (8,991,501) (17,530,127) ------------ ------------ Net increase (decrease) in net assets resulting from capital share transactions (Note 6)................................. 36,180,182 (1,830,641) ------------ ------------ Total increase (decrease) in net assets...................... 35,945,505 (11,635,003) NET ASSETS: Beginning of period.......................................... 311,789,439 323,424,442 ------------ ------------ End of period................................................ $347,734,944 $311,789,439 ============ ============
See Notes to Financial Statements 9 SunAmerica Income Funds FINANCIAL HIGHLIGHTS
AIG U.S. GOVERNMENT SECURITIES FUND ----------------------------------- Net gain (loss) on Net investments Distributions Net Net Asset (both Dividends from net Asset Assets, Ratio of Value, Net realized Total from from net realized Total Value, end of expenses beginning investment and investment investment gains on Distri- end of Total period to average Period Ended of period income(1) unrealized) operations income investments butions period Return(2) (000's) net assets(3) ------------ --------- ---------- ----------- ---------- ---------- ------------- ------- ------ --------- -------- ------------- Class A ------- 03/31/15 $9.43 $0.12 $ 0.34 $ 0.46 $(0.16) $-- $(0.16) $9.73 4.94% $187,417 0.99% 03/31/16 9.73 0.08 (0.05) 0.03 (0.17) -- (0.17) 9.59 0.33 156,468 0.99 03/31/17 9.59 0.09 (0.37) (0.28) (0.16) -- (0.16) 9.15 (2.93) 148,382 0.99 03/31/18 9.15 0.09 (0.13) (0.04) (0.16) -- (0.16) 8.95 (0.46) 138,599 0.99 03/31/19 8.95 0.13 0.11 0.24 (0.15) -- (0.15) 9.04 2.71 126,119 0.99 09/30/19# 9.04 0.07 0.31 0.38 (0.08) -- (0.08) 9.34 4.20 126,555 0.99(4) Class C ------- 03/31/15 $9.42 $0.06 $ 0.34 $ 0.40 $(0.10) $-- $(0.10) $9.72 4.27% $ 23,999 1.64% 03/31/16 9.72 0.01 (0.03) (0.02) (0.11) -- (0.11) 9.59 (0.22) 31,665 1.64 03/31/17 9.59 0.02 (0.37) (0.35) (0.10) -- (0.10) 9.14 (3.66) 19,592 1.64 03/31/18 9.14 0.04 (0.13) (0.09) (0.10) -- (0.10) 8.95 (1.00) 7,637 1.64 03/31/19 8.95 0.08 0.10 0.18 (0.09) -- (0.09) 9.04 2.05 7,507 1.64 09/30/19# 9.04 0.04 0.31 0.35 (0.05) -- (0.05) 9.34 3.86 7,191 1.64(4)
Ratio of net investment income to average Portfolio net assets(3) Turnover ------------- --------- 1.24% 57% 0.81 36 0.91 95 1.03 29 1.49 18 1.45(4) 29 0.61% 57% 0.16 36 0.26 95 0.38 29 0.84 18 0.80(4) 29
-------- # Unaudited (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load, but does include expense reimbursements. (3)Net of the following expense reimbursements, if applicable (based on average net assets):
03/31/15 03/31/16 03/31/17 03/31/18 03/31/19 09/30/19#(4) -------- -------- -------- -------- -------- ------------ AIG U.S. Government Securities Fund Class A 0.38% 0.37% 0.35% 0.37% 0.37% 0.39% AIG U.S. Government Securities Fund Class C................................... 0.50 0.39 0.40 0.46 0.59 0.76
(4)Annualized See Notes to Financial Statements 10 SunAmerica Income Funds FINANCIAL HIGHLIGHTS -- (continued)
AIG STRATEGIC BOND FUND ----------------------- Net gain (loss) on Net investments Distributions Net Net Asset (both Dividends from net Asset Assets, Value, Net realized Total from from net realized Total Value, end of beginning investment and investment investment gains on Distri- end of Total period Period Ended of period income(1) unrealized) operations income investments butions period Return(2) (000's) -------------------- --------- ---------- ----------- ---------- ---------- ------------- ------- ------ --------- -------- Class A ------- 03/31/15 $3.53 $0.13 $(0.04) $ 0.09 $(0.13) $-- $(0.13) $3.49 2.70% $235,093 03/31/16 3.49 0.12 (0.20) (0.08) (0.14) -- (0.14) 3.27 (2.32) 175,386 03/31/17 3.27 0.10 0.14 0.24 (0.11) -- (0.11) 3.40 7.38 163,163 03/31/18 3.40 0.11 (0.03) 0.08 (0.10) -- (0.10) 3.38 2.41 196,712 03/31/19 3.38 0.13 (0.04) 0.09 (0.16) -- (0.16) 3.31 2.86 153,979 09/30/19# 3.31 0.06 0.08 0.14 (0.06) -- (0.06) 3.39 4.35 157,492 Class B ------- 03/31/15 $3.53 $0.10 $(0.03) $ 0.07 $(0.11) $-- $(0.11) $3.49 2.01% $ 39,733 03/31/16 3.49 0.10 (0.20) (0.10) (0.12) -- (0.12) 3.27 (2.97) 31,038 03/31/17 3.27 0.08 0.14 0.22 (0.09) -- (0.09) 3.40 6.66 29,762 03/31/18 3.40 0.09 (0.04) 0.05 (0.08) -- (0.08) 3.37 1.41 21,875 03/31/19 3.37 0.11 (0.03) 0.08 (0.14) -- (0.14) 3.31 2.43 16,015 09/30/19# 3.31 0.05 0.08 0.13 (0.05) -- (0.05) 3.39 3.97 16,619 Class C ------- 03/31/15 $3.54 $0.11 $(0.04) $ 0.07 $(0.11) $-- $(0.11) $3.50 2.05% $184,282 03/31/16 3.50 0.10 (0.19) (0.09) (0.12) -- (0.12) 3.29 (2.63) 151,197 03/31/17 3.29 0.08 0.13 0.21 (0.09) -- (0.09) 3.41 6.35 128,332 03/31/18 3.41 0.09 (0.03) 0.06 (0.08) -- (0.08) 3.39 1.75 71,103 03/31/19 3.39 0.11 (0.04) 0.07 (0.14) -- (0.14) 3.32 2.18 52,782 09/30/19# 3.32 0.05 0.08 0.13 (0.05) -- (0.05) 3.40 3.98 48,807 Class W ------- 01/29/15(4)-03/31/15 $3.48 $0.01 $ 0.02 $ 0.03 $(0.02) $-- $(0.02) $3.49 0.99% $ 15,664 03/31/16 3.49 0.12 (0.20) (0.08) (0.14) -- (0.14) 3.27 (2.14) 30,065 03/31/17 3.27 0.11 0.13 0.24 (0.12) -- (0.12) 3.39 7.26 40,412 03/31/18 3.39 0.11 (0.02) 0.09 (0.11) -- (0.11) 3.37 2.65 70,239 03/31/19 3.37 0.14 (0.03) 0.11 (0.17) -- (0.17) 3.31 3.38 52,676 09/30/19# 3.31 0.06 0.08 0.14 (0.07) -- (0.07) 3.38 4.15 90,438
Ratio of net Ratio of investment expenses income to to average average Portfolio net assets net assets Turnover ---------- ---------- --------- 1.30% 3.62% 137% 1.34 3.54 108 1.32 3.00 109 1.33 3.15 149 1.14(3) 3.89(3) 123 1.11(3)(5) 3.52(3)(5) 51 1.97% 2.95% 137% 2.01 2.87 108 1.99 2.33 109 2.02 2.46 149 1.86(3) 3.17(3) 123 1.84(3)(5) 2.79(3)(5) 51 1.94% 2.98% 137% 1.98 2.90 108 1.97 2.35 109 1.98 2.50 149 1.81(3) 3.22(3) 123 1.79(3)(5) 2.83(3)(5) 51 1.20%(3)(5) 2.73%(3)(5) 137% 1.15 3.71 108 1.14 3.20 109 1.14 3.34 149 0.94(3) 4.06(3) 123 0.90(3)(5) 3.72(3)(5) 51
-------- # Unaudited (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load, but does include expense reimbursements. (3)Net of the following expense reimbursements and waivers, if applicable (based on average net assets):
03/31/15 03/31/16 03/31/17 03/31/18 03/31/19 09/30/19#(5) -------- -------- -------- -------- -------- ------------ AIG Strategic Bond Fund Class A......... -- -- -- -- 0.23% 0.27% AIG Strategic Bond Fund Class B......... -- -- -- -- 0.23 0.27 AIG Strategic Bond Fund Class C......... -- -- -- -- 0.23 0.27 AIG Strategic Bond Fund Class W......... 0.69%(5) -- -- -- 0.23 0.27
(4)Inception date of class. (5)Annualized. See Notes to Financial Statements 11 SunAmerica Income Funds FINANCIAL HIGHLIGHTS -- (continued)
AIG FLEXIBLE CREDIT FUND ------------------------ Net gain (loss) on Net investments Distributions Net Asset (both Dividends from net Asset Net Assets, Value, Net realized Total from from net realized Total Value, end of beginning investment and investment investment gains on Distri- end of Total period Period Ended of period income(1) unrealized) operations income investment butions period Return(2) (000's) -------------------- --------- ---------- ----------- ---------- ---------- ------------- ------- ------ --------- ----------- Class A ------- 03/31/15 $3.59 $0.15 $(0.11) $ 0.04 $(0.17) $-- $(0.17) $3.46 1.06% $127,508 03/31/16 3.46 0.13 (0.16) (0.03) (0.14) -- (0.14) 3.29 (0.93) 125,775 03/31/17 3.29 0.14 0.16 0.30 (0.15) -- (0.15) 3.44 9.11 144,880 03/31/18 3.44 0.16 (0.04) 0.12 (0.16) -- (0.16) 3.40 3.54 133,268 03/31/19 3.40 0.18 (0.09) 0.09 (0.18) -- (0.18) 3.31 2.75 119,903 09/30/19# 3.31 0.09 (0.00) 0.09 (0.09) -- (0.09) 3.31 2.74 93,730 Class C ------- 03/31/15 $3.61 $0.13 $(0.11) $ 0.02 $(0.15) $-- $(0.15) $3.48 0.43% $ 45,411 03/31/16 3.48 0.11 (0.16) (0.05) (0.12) -- (0.12) 3.31 (1.54) 61,891 03/31/17 3.31 0.12 0.15 0.27 (0.12) -- (0.12) 3.46 8.38 74,241 03/31/18 3.46 0.14 (0.04) 0.10 (0.14) -- (0.14) 3.42 2.88 58,994 03/31/19 3.42 0.16 (0.09) 0.07 (0.16) -- (0.16) 3.33 2.09 55,505 09/30/19# 3.33 0.08 (0.00) 0.08 (0.08) -- (0.08) 3.33 2.41 56,405 Class W ------- 10/01/14(4)-03/31/15 $3.50 $0.06 $(0.01) $ 0.05 $(0.08) $-- $(0.08) $3.47 1.57% $ 13,632 03/31/16 3.47 0.13 (0.17) (0.04) (0.14) -- (0.14) 3.29 (1.02) 90,441 03/31/17 3.29 0.15 0.15 0.30 (0.15) -- (0.15) 3.44 9.34 157,377 03/31/18 3.44 0.17 (0.04) 0.13 (0.17) -- (0.17) 3.40 3.76 131,163 03/31/19 3.40 0.18 (0.07) 0.11 (0.19) -- (0.19) 3.32 3.26 136,382 09/30/19# 3.32 0.09 (0.00) 0.09 (0.09) -- (0.09) 3.32 2.85 197,600
Ratio of net Ratio of investment expenses income to to average average Portfolio net assets net assets Turnover ---------- ---------- --------- 1.41%(3) 4.50%(3) 74% 1.45(3) 3.92(3) 52 1.43 4.21 69 1.33(3) 4.60(3) 63 1.06(3) 5.29(3) 57 1.04(3)(5) 5.44(3)(5) 25 2.06%(3) 3.88%(3) 74% 2.10(3) 3.27(3) 52 2.07 3.57 69 1.99(3) 3.94(3) 63 1.72(3) 4.63(3) 57 1.70(3)(5) 4.76(3)(5) 25 1.25%(3)(5) 4.25%(3)(5) 74% 1.25(3) 4.11(3) 52 1.21 4.44 69 1.12(3) 4.79(3) 63 0.85(3) 5.50(3) 57 0.84(3)(5) 5.62(3)(5) 25
-------- # Unaudited (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load, but does include expense reimbursements. (3)Net of the following expense reimbursements and waivers, if applicable (based on average net assets):
03/31/15 03/31/16 03/31/17 03/31/18 03/31/19 09/30/19#(5) -------- -------- -------- -------- -------- ------------ AIG Flexible Credit Fund Class A........ 0.19% 0.03% --% 0.11% 0.39% 0.40% AIG Flexible Credit Fund Class C........ 0.20 0.02 -- 0.11 0.39 0.40 AIG Flexible Credit Fund Class W........ 1.12(5) 0.04 -- 0.11 0.39 0.40
(4)Inception date of class. (5)Annualized. See Notes to Financial Statements 12 AIG U.S. Government Securities Fund PORTFOLIO PROFILE -- September 30, 2019 -- (unaudited) Industry Allocation* United States Treasury Notes.... 50.0% United States Treasury Bonds.... 21.3 Government National Mtg. Assoc.. 19.0 Federal Home Loan Mtg. Corp..... 6.5 Federal National Mtg. Assoc..... 1.8 Repurchase Agreements........... 0.6 Federal Home Loan Bank.......... 0.6 ---- 99.8% ====
Credit Quality+# Aaa........ 99.0% Not Rated@. 1.0 ----- 100.0% =====
-------- *Calculated as a percentage of net assets +Source: Moody's #Calculated as a percentage of total debt issues, excluding short-term securities. @Represents debt issues that either have no rating, or the rating is unavailable from the data source. 13 AIG U.S. Government Securities Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
Principal Value Security Description Amount (Note 2) U.S. GOVERNMENT AGENCIES -- 27.9% Federal Home Loan Bank -- 0.6% 1.69% due 02/26/2021................ $ 480,000 $ 476,390 2.14% due 12/05/2022................ 372,093 372,095 ---------- 848,485 ---------- Federal Home Loan Mtg. Corp. -- 6.5% 3.50% due 08/01/2030................ 2,039,300 2,113,617 3.50% due 12/01/2044................ 3,917,209 4,116,882 4.00% due 04/01/2034................ 1,094,492 1,159,485 Federal Home Loan Mtg. Corp. REMIC Series 3747, Class WA 3.50% due 10/15/2030(2)............. 1,239,467 1,291,707 ---------- 8,681,691 ---------- Federal National Mtg. Assoc. -- 1.8% 2.50% due 11/01/2027................ 2,332,083 2,358,127 ---------- Government National Mtg. Assoc. -- 19.0% 3.50% due 03/15/2042................ 238,772 251,289 3.50% due 06/15/2042................ 1,298,007 1,366,060 3.50% due 07/15/2042................ 306,695 319,892 3.50% due 02/20/2045................ 681,987 713,657 4.00% due 03/15/2039................ 138,656 148,087 4.00% due 06/15/2039................ 274,665 291,378 4.00% due 12/15/2039................ 192,530 205,271 4.00% due 08/15/2040................ 142,706 152,310 4.00% due 11/15/2040................ 295,073 314,926 4.00% due 09/15/2041................ 774,461 824,753 4.00% due 10/15/2041................ 98,851 105,418 4.00% due 11/15/2041................ 491,835 522,481 4.00% due 12/15/2041................ 382,170 406,065 4.00% due 01/15/2042................ 1,081,451 1,148,806 4.00% due 02/15/2042................ 300,391 320,673 4.00% due 03/15/2042................ 127,501 136,042 4.50% due 09/15/2033................ 212,277 228,219 4.50% due 04/15/2039................ 48,222 52,517 4.50% due 05/15/2039................ 89,119 97,067 4.50% due 06/15/2039................ 915,938 997,150 4.50% due 07/15/2039................ 270,235 293,267 4.50% due 09/15/2039................ 134,966 147,027 4.50% due 11/15/2039................ 89,197 97,195 4.50% due 12/15/2039................ 248,242 270,343 4.50% due 02/15/2040................ 628,378 682,923 4.50% due 03/15/2040................ 259,019 279,978 4.50% due 04/15/2040................ 122,604 133,581 4.50% due 07/15/2040................ 294,226 317,358 4.50% due 03/15/2041................ 894,493 974,138 4.50% due 04/15/2041................ 171,896 184,135 4.50% due 06/15/2041................ 115,576 123,078 4.50% due 08/15/2041................ 135,278 144,103 4.50% due 04/20/2044................ 506,501 543,077 5.00% due 08/15/2033................ 251,605 278,899 5.00% due 10/15/2033................ 451,133 500,147 5.00% due 05/15/2035................ 74,531 79,740 5.00% due 08/15/2035................ 246,944 273,824 5.00% due 05/15/2036................ 59,489 66,847 5.00% due 09/15/2036................ 94,730 106,438 5.00% due 01/15/2037................ 130,586 145,669 5.00% due 03/15/2037................ 39,439 44,319 5.00% due 04/15/2037................ 162,977 178,339
Principal Value Security Description Amount (Note 2) Government National Mtg. Assoc. (continued) 5.00% due 04/15/2038........ $ 321,542 $ 357,388 5.00% due 05/15/2038........ 154,794 173,966 5.00% due 08/15/2038........ 367,696 413,522 5.00% due 02/15/2039........ 67,735 76,109 5.00% due 03/15/2039........ 82,891 88,684 5.00% due 04/15/2039........ 76,182 85,640 5.00% due 07/20/2039........ 683,449 756,094 5.00% due 08/15/2039........ 206,286 231,695 5.00% due 09/20/2039........ 2,240,077 2,478,249 5.00% due 10/15/2039........ 433,424 483,551 5.00% due 11/15/2039........ 355,038 398,791 5.00% due 12/15/2039........ 343,789 386,372 5.00% due 04/15/2040........ 319,724 359,027 5.00% due 05/15/2040........ 643,539 717,150 5.00% due 07/20/2045........ 268,298 295,201 5.50% due 06/15/2033........ 381,221 428,628 5.50% due 07/15/2033........ 77,191 87,581 5.50% due 10/15/2033........ 107,912 122,395 5.50% due 01/15/2034........ 340,852 383,159 5.50% due 02/15/2034........ 223,919 245,242 5.50% due 04/20/2035........ 336,311 379,242 5.50% due 09/15/2035........ 317,846 360,599 5.50% due 10/15/2035........ 139,967 158,872 5.50% due 02/15/2038........ 107,913 122,306 5.50% due 04/15/2038........ 60,706 68,655 5.50% due 09/15/2039........ 44,907 50,620 5.50% due 03/15/2040........ 207 235 6.00% due 04/15/2028........ 98,342 111,155 6.00% due 08/15/2033........ 174,185 199,763 6.00% due 12/15/2033........ 58,022 64,819 6.00% due 09/20/2038........ 707,035 812,923 6.50% due 10/15/2031........ 30,528 33,786 ----------- 25,397,905 ----------- Total U.S. Government Agencies (cost $36,874,994).......... 37,286,208 ----------- U.S. GOVERNMENT TREASURIES -- 71.3% United States Treasury Bonds -- 21.3% 2.50% due 02/15/2045........ 1,000,000 1,076,016 2.75% due 08/15/2042........ 1,100,000 1,235,008 2.75% due 11/15/2042........ 2,000,000 2,244,297 3.00% due 05/15/2042........ 2,000,000 2,338,437 3.00% due 02/15/2049........ 1,000,000 1,192,305 3.13% due 11/15/2041........ 1,500,000 1,787,402 3.13% due 02/15/2042........ 1,100,000 1,311,492 3.38% due 11/15/2048........ 1,000,000 1,274,180 3.50% due 02/15/2039........ 2,000,000 2,505,312 4.25% due 11/15/2040........ 4,000,000 5,551,094 4.50% due 02/15/2036........ 1,500,000 2,067,773 4.75% due 02/15/2041........ 4,000,000 5,913,125 ----------- 28,496,441 ----------- United States Treasury Notes -- 50.0% 1.25% due 03/31/2021........ 1,000,000 992,734 1.38% due 08/31/2020........ 1,500,000 1,493,555 1.38% due 05/31/2021........ 8,000,000 7,955,000 1.50% due 01/31/2022........ 1,875,000 1,869,946 1.50% due 02/28/2023........ 2,000,000 1,994,766
14 AIG U.S. Government Securities Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 2) U.S. GOVERNMENT TREASURIES (continued) United States Treasury Notes (continued) 1.50% due 08/15/2026............... $2,000,000 $ 1,984,063 1.63% due 08/15/2022............... 1,000,000 1,001,328 1.63% due 11/15/2022............... 1,000,000 1,001,367 1.63% due 05/15/2026............... 1,000,000 1,000,469 1.75% due 05/15/2022............... 1,875,000 1,882,617 1.75% due 05/15/2023............... 1,000,000 1,005,820 1.88% due 03/31/2022............... 2,500,000 2,516,992 2.00% due 09/30/2020............... 3,000,000 3,005,273 2.00% due 08/31/2021............... 2,000,000 2,012,344 2.00% due 02/15/2022............... 1,000,000 1,009,180 2.00% due 02/15/2023............... 1,000,000 1,013,594 2.00% due 05/31/2024............... 1,000,000 1,019,961 2.00% due 02/15/2025............... 5,000,000 5,105,274 2.00% due 08/15/2025............... 3,000,000 3,066,563 2.00% due 11/15/2026............... 2,700,000 2,768,871 2.13% due 08/31/2020............... 2,500,000 2,506,152 2.13% due 08/15/2021............... 1,000,000 1,008,086 2.13% due 12/31/2022............... 1,000,000 1,017,070 2.13% due 03/31/2024............... 2,000,000 2,048,359 2.25% due 11/15/2024............... 1,000,000 1,032,695 2.25% due 11/15/2025............... 1,000,000 1,037,070 2.25% due 11/15/2027............... 2,000,000 2,092,109 2.38% due 12/31/2020............... 2,000,000 2,014,141 2.38% due 08/15/2024............... 1,000,000 1,037,266 2.50% due 05/15/2024............... 1,000,000 1,041,172 2.63% due 08/31/2020............... 1,500,000 1,510,488 2.63% due 02/28/2023............... 3,000,000 3,103,711 2.75% due 11/15/2023............... 2,500,000 2,616,797 2.75% due 02/15/2024............... 1,000,000 1,049,649 ------------ 66,814,482 ------------ Total U.S. Government Treasuries (cost $89,291,888)................. 95,310,923 ------------ Total Long-Term Investment Securities (cost $126,166,882)................ 132,597,131 ------------
Principal Value Security Description Amount (Note 2) REPURCHASE AGREEMENTS -- 0.6% Agreement with Fixed Income Clearing Corp., bearing interest at 0.35%, dated 09/30/2019, to be repurchased 10/01/2019 in the amount of $854,008 and collateralized by $830,000 of United States Treasury Notes, bearing interest at 2.63%, due 12/31/2023 and having an approximate value of $871,401 (cost $854,000)................................. $854,000 $ 854,000 ------------ TOTAL INVESTMENTS (cost $127,020,882)(1).......................... 99.8% 133,451,131 Other assets less liabilities...................... 0.2 294,710 -------- ------------ NET ASSETS 100.0% $133,745,841 ======== ============
-------- (1)See Note 5 for cost of investments on a tax basis. (2)Collateralized Mortgage Obligation REMIC --Real Estate Mortgage Investment Conduit The following is a summary of the inputs used to value the Fund's net assets as of September 30, 2019 (see Note 2):
Level 1 -- Unadjusted Level 2 -- Other Level 3 -- Significant Quoted Prices Observable Inputs Unobservable Inputs Total --------------------- ----------------- ---------------------- ------------ ASSETS: Investments at Value:* U.S. Government Agencies... $-- $ 37,286,208 $-- $ 37,286,208 U.S. Government Treasuries. -- 95,310,923 -- 95,310,923 Repurchase Agreements...... -- 854,000 -- 854,000 --- ------------ --- ------------ Total Investments at Value. $-- $133,451,131 $-- $133,451,131 === ============ === ============
-------- * For a detailed presentation of investments, please refer to the Portfolio of Investments. See Notes to Financial Statements 15 AIG Strategic Bond Fund PORTFOLIO PROFILE -- September 30, 2019 -- (unaudited) Industry Allocation* Federal National Mtg. Assoc............ 20.2% Registered Investment Companies........ 8.5 Sovereign.............................. 8.3 Federal Home Loan Mtg. Corp............ 6.4 Diversified Financial Services......... 3.4 Diversified Banking Institutions....... 2.9 Cable/Satellite TV..................... 2.2 Real Estate Investment Trusts.......... 1.9 Cellular Telecom....................... 1.8 Oil Companies-Exploration & Production. 1.8 Pipelines.............................. 1.6 Electric-Integrated.................... 1.5 Banks-Commercial....................... 1.4 Telephone-Integrated................... 1.3 Government National Mtg. Assoc......... 1.3 United States Treasury Notes........... 1.3 United States Treasury Bonds........... 1.0 Oil Companies-Integrated............... 0.9 Medical-Drugs.......................... 0.9 Containers-Metal/Glass................. 0.8 Television............................. 0.7 Electric-Distribution.................. 0.7 Satellite Telecom...................... 0.6 Enterprise Software/Service............ 0.6 Finance-Consumer Loans................. 0.6 Auto-Cars/Light Trucks................. 0.6 Electric-Generation.................... 0.6 Banks-Super Regional................... 0.6 Food-Misc./Diversified................. 0.5 Medical-Hospitals...................... 0.5 Retail-Restaurants..................... 0.5 Cosmetics & Toiletries................. 0.5 Security Services...................... 0.4 Computers.............................. 0.4 Chemicals-Diversified.................. 0.4 Distribution/Wholesale................. 0.4 Oil-Field Services..................... 0.4 Rental Auto/Equipment.................. 0.4 Medical-HMO............................ 0.4 Batteries/Battery Systems.............. 0.4 Insurance-Property/Casualty............ 0.4 Applications Software.................. 0.4 Metal-Copper........................... 0.4 Internet Content-Entertainment......... 0.4 Containers-Paper/Plastic............... 0.3 Paper & Related Products............... 0.3 Machinery-Farming...................... 0.3 Diversified Minerals................... 0.3 Insurance-Life/Health.................. 0.3 Metal-Iron............................. 0.3 Real Estate Operations & Development... 0.3 Machinery-Construction & Mining........ 0.3 Multimedia............................. 0.3 Radio.................................. 0.3 Dialysis Centers....................... 0.3 Commercial Services.................... 0.3 Computers-Integrated Systems........... 0.3 Theaters............................... 0.3 Electronic Parts Distribution.......... 0.3 Food-Retail............................ 0.3
Disposable Medical Products............ 0.3% Energy-Alternate Sources............... 0.3 U.S. Government Treasuries............. 0.3 Diversified Manufacturing Operations... 0.3 Medical Labs & Testing Services........ 0.3 Building & Construction-Misc........... 0.2 Retail-Petroleum Products.............. 0.2 E-Commerce/Services.................... 0.2 Diagnostic Equipment................... 0.2 Pharmacy Services...................... 0.2 Electronic Components-Semiconductors... 0.2 Finance-Credit Card.................... 0.2 Food-Meat Products..................... 0.2 Building & Construction Products-Misc.. 0.2 Transport-Rail......................... 0.2 Computer Services...................... 0.2 Casino Services........................ 0.2 Savings & Loans/Thrifts................ 0.2 Finance-Mortgage Loan/Banker........... 0.2 Agricultural Chemicals................. 0.2 Finance-Leasing Companies.............. 0.2 Independent Power Producers............ 0.2 Airport Development/Maintenance........ 0.2 Chemicals-Specialty.................... 0.2 Auction Houses/Art Dealers............. 0.2 Gambling (Non-Hotel)................... 0.2 Computer Software...................... 0.2 Gas-Distribution....................... 0.2 Metal-Diversified...................... 0.2 Banks-Money Center..................... 0.2 Insurance Brokers...................... 0.2 Consumer Products-Misc................. 0.2 Transport-Marine....................... 0.2 Steel-Producers........................ 0.2 Brewery................................ 0.2 Hazardous Waste Disposal............... 0.2 Machinery-General Industrial........... 0.2 Finance-Investment Banker/Broker....... 0.1 Building-Heavy Construction............ 0.1 Auto/Truck Parts & Equipment-Original.. 0.1 Banks-Export/Import.................... 0.1 Auto-Heavy Duty Trucks................. 0.1 Retail-Appliances...................... 0.1 Data Processing/Management............. 0.1 Chemicals-Plastics..................... 0.1 Aerospace/Defense-Equipment............ 0.1 Internet Connectivity Services......... 0.1 Trucking/Leasing....................... 0.1 Finance-Auto Loans..................... 0.1 Food-Dairy Products.................... 0.1 Poultry................................ 0.1 Metal Processors & Fabrication......... 0.1 Coal................................... 0.1 Beverages-Non-alcoholic................ 0.1 Broadcast Services/Program............. 0.1 Building Societies..................... 0.1 Investment Companies................... 0.1 Medical-Generic Drugs.................. 0.1 Oil Field Machinery & Equipment........ 0.1 Medical Products....................... 0.1
16 AIG Strategic Bond Fund PORTFOLIO PROFILE -- September 30, 2019 -- (unaudited) (continued) Industry Allocation* (continued) Computers-Memory Devices............ 0.1% Medical Instruments................. 0.1 Aerospace/Defense................... 0.1 Commercial Services-Finance......... 0.1 Hotels/Motels....................... 0.1 Medical-Biomedical/Gene............. 0.1 Casino Hotels....................... 0.1 Publishing-Periodicals.............. 0.1 Non-Ferrous Metals.................. 0.1 Electronic Measurement Instruments.. 0.1 Auto Repair Centers................. 0.1 Retail-Mail Order................... 0.1 Telecom Services.................... 0.1 Transport-Truck..................... 0.1 Human Resources..................... 0.1 Banks-Special Purpose............... 0.1 Building Products-Air & Heating..... 0.1 Medical-Wholesale Drug Distribution. 0.1 Finance-Commercial.................. 0.1 Diamonds/Precious Stones............ 0.1 Platinum............................ 0.1 Transport-Equipment & Leasing....... 0.1 Beverages-Wine/Spirits.............. 0.1 Retail-Discount..................... 0.1 Advertising Agencies................ 0.1 Soap & Cleaning Preparation......... 0.1 Physicians Practice Management...... 0.1 Quarrying........................... 0.1 Publishing-Books.................... 0.1 Health Care Providers & Services.... 0.1 Athletic Equipment.................. 0.1 Internet Financial Services......... 0.1 Consulting Services................. 0.1 Real Estate Management/Services..... 0.1 ---- 99.6% ====
-------- *Calculated as a percentage of net assets Credit Quality+# Aaa........ 34.8% Aa......... 1.6 A.......... 7.0 Baa........ 14.6 Ba......... 14.2 B.......... 17.8 Caa........ 3.0 Not Rated@. 7.0 ----- 100.0% =====
-------- +Source: Moody's #Calculated as a percentage of total debt issues, excluding short-term securities. @Represents debt issues that either have no rating, or the rating is unavailable from the data source. 17 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
Principal Value Security Description Amount(17) (Note 2) ASSET BACKED SECURITIES -- 2.9% Diversified Financial Services -- 2.9% American Express Credit Account Master Trust Series 2018-4, Class A 2.99% due 12/15/2023.......................... $ 100,000 $ 101,745 American Express Credit Account Master Trust Series 2018-8, Class A 3.18% due 04/15/2024.......................... 167,000 171,231 Americredit Automobile Receivables Trust Series 2019-1, Class A3 2.97% due 11/20/2023.......................... 200,000 202,918 BA Credit Card Trust Series 2019-A1, Class A1 1.74% due 01/15/2025.......................... 200,000 199,306 BA Credit Card Trust Series 2018-A2, Class A2 3.00% due 09/15/2023.......................... 204,000 207,470 BANK Series 2019-BN19, Class A3 3.18% due 08/15/2061(1)....................... 500,000 530,082 BANK Series 2019-BN16, Class A2 3.93% due 02/15/2052(1)....................... 239,000 255,054 Benchmark Mtg. Trust Series 2019-B9, Class AAB 3.93% due 03/15/2052(1)....................... 300,000 328,570 Benchmark Mtg. Trust VRS Series 2018-B7, Class A4 4.51% due 05/15/2053(1)(2).................... 1,000,000 1,163,617 BX Commercial Mtg. Trust FRS Series 2019-IMC, Class A 3.03% (1 ML+1.00%) due 04/15/2034*(1)............................ 400,000 400,251 Capital One Multi-Asset Execution Trust Series 2019-A3, Class A3 2.06% due 08/15/2028.......................... 100,000 99,404 Capital One Prime Auto Receivables Trust Series 2019-2, Class A3 1.92% due 05/15/2024.......................... 100,000 100,062 CarMax Auto Owner Trust Series 2019-2, Class A3 2.68% due 03/15/2024.......................... 65,000 66,049 CarMax Auto Owner Trust Series 2018-4, Class A3 3.36% due 09/15/2023.......................... 200,000 204,626 Chase Mtg. Finance Corp. VRS Series 2016-SH2, Class M2 3.75% due 12/25/2045*(2)(3)................... 313,848 327,056 Citibank Credit Card Issuance Trust Series 2018-A1, Class A1 2.49% due 01/20/2023.......................... 100,000 100,736 COMM Mtg. Trust VRS Series 2016-787S, Class B 3.96% due 02/10/2036*(1)(2)................... 132,000 142,048 Discover Card Execution Note Trust Series 2019-A1, Class A1 3.04% due 07/15/2024.......................... 100,000 102,621 Ford Credit Auto Owner Trust Series 2018-2, Class A 3.47% due 01/15/2030*......................... 100,000 104,676
Principal Value Security Description Amount(17) (Note 2) Diversified Financial Services (continued) GM Financial Consumer Automobile Receivables Trust Series 2019-3, Class A3 2.18% due 04/16/2024......................... $ 50,000 $ 50,298 GS Mtg. Securities Trust Series 2015-GC28, Class A2 2.90% due 02/10/2048(1)...................... 214,357 214,403 Honda Auto Receivables Owner Trust Series 2019-1, Class A3 2.83% due 03/20/2023......................... 70,000 71,235 ILPT Trust Series 2019-SURF, Class A 4.15% due 02/11/2041*(1)..................... 590,000 667,952 JP Morgan Mtg. Trust VRS Series 2017-6, Class A6 3.00% due 12/25/2048*(2)(3).................. 771,188 775,104 JP Morgan Mtg. Trust VRS Series 2018-1, Class A5 3.50% due 06/25/2048*(2)(3).................. 614,135 621,709 Mercedes-Benz Auto Lease Trust Series 2019-A, Class A4 3.25% due 10/15/2024......................... 31,000 31,583 Mercedes-Benz Auto Lease Trust Series 2018-B, Class A4 3.31% due 07/15/2024......................... 321,000 326,767 Morgan Stanley Capital Barclays Bank Trust Series 2016-MART, Class A 2.20% due 09/13/2031*(1)..................... 185,000 184,902 MTRO Commercial Mtg. Trust FRS Series 2019-TECH, Class A 2.93% (1 ML+0.90%) due 12/15/2033*(1)........................... 350,000 350,000 One Bryant Park Trust Series 2019-OBP, Class A 2.52% due 09/15/2054*(1)..................... 390,000 391,962 Shellpoint Co-Originator Trust VRS Series 2017-2, Class A1 3.50% due 10/25/2047*(2)(3).................. 165,973 167,282 Toyota Auto Loan Extended Note Trust Series 2019-1A, Class A 2.56% due 11/25/2031*........................ 100,000 102,212 Toyota Auto Receivables Owner Trust Series 2018-C, Class A4 3.13% due 02/15/2024......................... 125,000 128,514 World Financial Network Credit Card Master Trust Series 2019-C, Class M 2.71% due 07/15/2026......................... 100,000 99,920 ---------- Total Asset Backed Securities (cost $8,656,512)............................ 8,991,365 ---------- U.S. CORPORATE BONDS & NOTES -- 31.4% Advertising Agencies -- 0.1% Interpublic Group of Cos., Inc. Senior Notes 4.20% due 04/15/2024......................... 78,000 83,653
18 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) U.S. CORPORATE BONDS & NOTES (continued) Advertising Agencies (continued) Interpublic Group of Cos., Inc. Senior Notes 5.40% due 10/01/2048............... $ 62,000 $ 73,794 -------- 157,447 -------- Aerospace/Defense -- 0.1% BAE Systems Holdings, Inc. Company Guar. Notes 3.85% due 12/15/2025*.............. 184,000 193,465 General Dynamics Corp. Company Guar. Notes 2.88% due 05/11/2020............... 117,000 117,610 -------- 311,075 -------- Aerospace/Defense-Equipment -- 0.1% United Technologies Corp. Senior Notes 1.15% due 05/18/2024............... EUR 375,000 425,595 -------- Agricultural Chemicals -- 0.0% Mosaic Co. Senior Notes 5.63% due 11/15/2043............... 54,000 59,863 -------- Airlines -- 0.0% Atlas Air, Inc. Pass-Through Certs. Series 1999-1, Class B 7.63% due 01/02/2020(4)............ 13,147 13,223 -------- Applications Software -- 0.3% CDK Global, Inc. Senior Notes 5.88% due 06/15/2026............... 266,000 282,958 Microsoft Corp. Senior Notes 3.13% due 12/06/2028............... EUR 235,000 324,731 SS&C Technologies, Inc. Company Guar. Notes 5.50% due 09/30/2027*.............. 320,000 334,408 -------- 942,097 -------- Auction Houses/Art Dealers -- 0.2% BidFair MergeRight, Inc. Senior Sec. Notes 7.38% due 10/15/2027*.............. 471,000 479,864 -------- Auto-Cars/Light Trucks -- 0.4% Daimler Finance North America LLC Company Guar. Notes 2.00% due 07/06/2021*.............. 78,000 77,541 Ford Motor Credit Co. LLC Senior Notes 2.39% due 02/17/2026............... EUR 200,000 219,764 Ford Motor Credit Co. LLC Senior Notes 3.10% due 05/04/2023............... 218,000 214,002 Ford Motor Credit Co. LLC Senior Notes 4.54% due 03/06/2025............... GBP 100,000 130,273
Principal Value Security Description Amount(17) (Note 2) Auto-Cars/Light Trucks (continued) General Motors Financial Co., Inc. Company Guar. Notes 3.70% due 05/09/2023................ $ 144,000 $ 147,322 Hyundai Capital America Senior Notes 3.40% due 06/20/2024*............... 192,000 195,476 Nissan Motor Acceptance Corp. Senior Notes 2.65% due 07/13/2022*............... 234,000 235,215 Toyota Motor Credit Corp. Senior Notes 3.45% due 09/20/2023................ 122,000 129,041 ---------- 1,348,634 ---------- Auto-Heavy Duty Trucks -- 0.1% Allison Transmission, Inc. Senior Notes 5.00% due 10/01/2024*............... 361,000 368,897 PACCAR Financial Corp. Senior Notes 2.00% due 09/26/2022................ 79,000 79,106 ---------- 448,003 ---------- Auto/Truck Parts & Equipment-Original -- 0.0% Lear Corp. Senior Notes 5.25% due 05/15/2049................ 113,000 116,233 ---------- Banks-Commercial -- 0.5% BankUnited, Inc. Senior Notes 4.88% due 11/17/2025................ 420,000 458,518 Citizens Financial Group, Inc. Sub. Notes 4.30% due 12/03/2025................ 79,000 84,471 Regions Financial Corp. Sub. Notes 7.38% due 12/10/2037................ 198,000 282,617 SunTrust Bank Senior Notes 3.20% due 04/01/2024................ 294,000 305,637 SunTrust Bank Senior Notes 3.50% due 08/02/2022................ 111,000 113,455 Webster Financial Corp. Senior Notes 4.10% due 03/25/2029................ 191,000 203,975 ---------- 1,448,673 ---------- Banks-Fiduciary -- 0.0% Bank of New York Mellon Corp. Senior Notes 1.95% due 08/23/2022................ 110,000 110,060 ---------- Banks-Super Regional -- 0.5% Bank of America NA Senior Notes 3.34% due 01/25/2023................ 250,000 256,654 Wells Fargo & Co. Senior Notes 1.00% due 02/02/2027................ EUR 300,000 340,775
19 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) U.S. CORPORATE BONDS & NOTES (continued) Banks-Super Regional (continued) Wells Fargo & Co. Senior Notes 3.55% due 09/29/2025................... $165,000 $ 174,384 Wells Fargo & Co. Sub. Notes 4.65% due 11/04/2044................... 188,000 217,229 Wells Fargo Bank NA Senior Notes 2.08% due 09/09/2022................... 490,000 488,872 Wells Fargo Bank NA Sub. Notes 5.25% due 08/01/2023................... GBP 100,000 139,537 ---------- 1,617,451 ---------- Batteries/Battery Systems -- 0.4% Energizer Holdings, Inc. Company Guar. Notes 6.38% due 07/15/2026*.................. 535,000 573,060 EnerSys Company Guar. Notes 5.00% due 04/30/2023*.................. 605,000 620,125 ---------- 1,193,185 ---------- Beverages-Non-alcoholic -- 0.1% Keurig Dr Pepper, Inc. Company Guar. Notes 4.42% due 05/25/2025................... 227,000 247,057 PepsiCo., Inc. Senior Notes 2.75% due 04/30/2025................... 114,000 118,776 ---------- 365,833 ---------- Beverages-Wine/Spirits -- 0.1% Constellation Brands, Inc. Company Guar. Notes 3.15% due 08/01/2029................... 93,000 94,765 Constellation Brands, Inc. Company Guar. Notes 5.25% due 11/15/2048................... 60,000 75,121 ---------- 169,886 ---------- Brewery -- 0.2% Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc. Company Guar. Notes 4.90% due 02/01/2046................... 117,000 139,607 Anheuser-Busch InBev Worldwide, Inc. Company Guar. Notes 4.60% due 04/15/2048................... 56,000 64,587 Anheuser-Busch InBev Worldwide, Inc. Company Guar. Notes 5.55% due 01/23/2049................... 198,000 259,126 ---------- 463,320 ---------- Broadcast Services/Program -- 0.1% Fox Corp. Senior Notes 5.48% due 01/25/2039*.................. 82,000 100,505
Principal Value Security Description Amount(17) (Note 2) Broadcast Services/Program (continued) Fox Corp. Senior Notes 5.58% due 01/25/2049*........................ $100,000 $126,545 -------- 227,050 -------- Building & Construction Products-Misc. -- 0.2% Fortune Brands Home & Security, Inc. Senior Notes 3.25% due 09/15/2029......................... 78,000 77,467 Owens Corning Senior Notes 4.30% due 07/15/2047......................... 157,000 142,578 Standard Industries, Inc. Senior Notes 6.00% due 10/15/2025*........................ 450,000 471,807 -------- 691,852 -------- Building & Construction-Misc. -- 0.1% Frontdoor, Inc. Senior Notes 6.75% due 08/15/2026*........................ 419,000 458,813 -------- Building Products-Cement -- 0.0% Martin Marietta Materials, Inc. Senior Notes 3.50% due 12/15/2027......................... 121,000 124,166 -------- Building-Heavy Construction -- 0.1% Tutor Perini Corp. Company Guar. Notes 6.88% due 05/01/2025*........................ 423,000 410,310 -------- Building-Residential/Commercial -- 0.0% Toll Brothers Finance Corp. Company Guar. Notes 4.35% due 02/15/2028......................... 136,000 140,420 -------- Cable/Satellite TV -- 1.5% Block Communications, Inc. Senior Notes 6.88% due 02/15/2025*........................ 462,000 481,635 CCO Holdings LLC/CCO Holdings Capital Corp. Senior Notes 5.00% due 02/01/2028*........................ 203,000 209,851 CCO Holdings LLC/CCO Holdings Capital Corp. Senior Notes 5.38% due 05/01/2025*........................ 300,000 311,250 CCO Holdings LLC/CCO Holdings Capital Corp. Senior Notes 5.38% due 06/01/2029*........................ 315,000 335,475 CCO Holdings LLC/CCO Holdings Capital Corp. Senior Notes 5.88% due 04/01/2024*........................ 150,000 156,519 Charter Communications Operating LLC/Charter Communications Operating Capital FRS Senior Sec. Notes 3.90% (3 ML+1.65%) due 02/01/2024............................... 410,000 420,195
20 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) U.S. CORPORATE BONDS & NOTES (continued) Cable/Satellite TV (continued) Charter Communications Operating LLC/Charter Communications Operating Capital Senior Sec. Notes 5.05% due 03/30/2029........................... $ 102,000 $ 114,115 Charter Communications Operating LLC/Charter Communications Operating Capital Senior Sec. Notes 5.38% due 04/01/2038........................... 20,000 22,341 Charter Communications Operating LLC/Charter Communications Operating Capital Senior Sec. Notes 6.38% due 10/23/2035........................... 64,000 77,493 Comcast Corp. Company Guar. Notes 3.15% due 03/01/2026........................... 185,000 193,711 Comcast Corp. Company Guar. Notes 3.90% due 03/01/2038........................... 49,000 54,109 Comcast Corp. Company Guar. Notes 3.97% due 11/01/2047........................... 43,000 47,223 Comcast Corp. Company Guar. Notes 4.60% due 10/15/2038........................... 142,000 169,633 CSC Holdings LLC Senior Notes 5.25% due 06/01/2024........................... 775,000 833,125 CSC Holdings LLC Company Guar. Notes 5.50% due 04/15/2027*.......................... 1,320,000 1,395,755 ---------- 4,822,430 ---------- Casino Services -- 0.2% Eldorado Resorts, Inc. Company Guar. Notes 6.00% due 09/15/2026........................... 510,000 558,450 ---------- Cellular Telecom -- 0.9% Sprint Corp. Company Guar. Notes 7.88% due 09/15/2023........................... 2,227,000 2,446,271 Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC Senior Sec. Notes 4.74% due 09/20/2029*.......................... 213,000 226,421 T-Mobile USA, Inc. Company Guar. Notes 6.38% due 03/01/2025........................... 200,000 207,192 ---------- 2,879,884 ---------- Chemicals-Diversified -- 0.2% Dow Chemical Co. Senior Notes 5.55% due 11/30/2048*.......................... 100,000 121,303
Principal Value Security Description Amount(17) (Note 2) Chemicals-Diversified (continued) DowDuPont, Inc. Senior Notes 5.32% due 11/15/2038...................... $ 3,000 $ 3,662 Eastman Chemical Co. Senior Notes 1.50% due 05/26/2023...................... EUR 175,000 200,662 FMC Corp. Senior Notes 3.45% due 10/01/2029...................... 85,000 86,357 LYB International Finance III LLC Company Guar. Notes 4.20% due 10/15/2049...................... 83,000 82,226 Westlake Chemical Corp. Senior Notes 1.63% due 07/17/2029...................... EUR 155,000 173,227 -------- 667,437 -------- Chemicals-Plastics -- 0.1% Neon Holdings, Inc. Senior Sec. Notes 10.13% due 04/01/2026*.................... 428,000 431,210 -------- Chemicals-Specialty -- 0.1% Ecolab, Inc. Senior Notes 2.38% due 08/10/2022...................... 134,000 135,155 Huntsman International LLC Senior Notes 4.50% due 05/01/2029...................... 76,000 79,903 Lubrizol Corp. Company Guar. Notes 6.50% due 10/01/2034...................... 107,000 152,352 -------- 367,410 -------- Coal -- 0.1% SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp. Company Guar. Notes 7.50% due 06/15/2025*..................... 412,000 366,680 -------- Coatings/Paint -- 0.0% Sherwin-Williams Co. Senior Notes 2.95% due 08/15/2029...................... 93,000 93,176 -------- Commercial Services -- 0.3% Harsco Corp. Company Guar. Notes 5.75% due 07/31/2027*..................... 297,000 309,266 Nielsen Finance LLC/Nielsen Finance Co. Company Guar. Notes 5.00% due 04/15/2022*..................... 535,000 536,498 -------- 845,764 -------- Commercial Services-Finance -- 0.0% PayPal Holdings, Inc. Senior Notes 2.85% due 10/01/2029...................... 56,000 56,348 --------
21 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) U.S. CORPORATE BONDS & NOTES (continued) Computer Services -- 0.2% IBM Credit LLC Senior Notes 3.00% due 02/06/2023.................. $533,000 $ 548,292 ---------- Computer Software -- 0.1% Rackspace Hosting, Inc. Company Guar. Notes 8.63% due 11/15/2024*................. 305,000 280,570 ---------- Computers -- 0.4% Apple, Inc. Senior Notes 2.05% due 09/11/2026.................. 99,000 97,868 Apple, Inc. Senior Notes 2.85% due 05/06/2021.................. 114,000 115,783 Dell International LLC/EMC Corp. Senior Sec. Notes 6.02% due 06/15/2026*................. 835,000 939,023 Dell International LLC/EMC Corp. Senior Sec. Notes 8.10% due 07/15/2036*................. 84,000 107,147 Hewlett Packard Enterprise Co. Senior Notes 6.20% due 10/15/2035.................. 53,000 62,880 ---------- 1,322,701 ---------- Computers-Integrated Systems -- 0.3% Diebold Nixdorf, Inc. Company Guar. Notes 8.50% due 04/15/2024.................. 522,000 490,680 NCR Corp. Company Guar. Notes 6.13% due 09/01/2029*................. 325,000 342,566 ---------- 833,246 ---------- Consumer Products-Misc. -- 0.2% Central Garden & Pet Co. Company Guar. Notes 5.13% due 02/01/2028.................. 475,000 484,500 ---------- Containers-Metal/Glass -- 0.5% Crown Cork & Seal Co., Inc. Company Guar. Notes 7.38% due 12/15/2026.................. 324,000 393,660 Owens-Brockway Glass Container, Inc. Company Guar. Notes 5.38% due 01/15/2025*................. 526,000 539,150 Silgan Holdings, Inc. Senior Notes 4.75% due 03/15/2025.................. 600,000 613,500 ---------- 1,546,310 ---------- Containers-Paper/Plastic -- 0.2% Sealed Air Corp. Company Guar. Notes 5.13% due 12/01/2024*................. 501,000 536,070 ----------
Principal Value Security Description Amount(17) (Note 2) Cosmetics & Toiletries -- 0.4% Coty, Inc. Company Guar. Notes 6.50% due 04/15/2026*............. $ 625,000 $ 606,250 First Quality Finance Co., Inc. Company Guar. Notes 5.00% due 07/01/2025*............. 548,000 566,511 ---------- 1,172,761 ---------- Data Processing/Management -- 0.1% Fiserv, Inc. Senior Notes 1.63% due 07/01/2030.............. EUR 135,000 158,205 Fiserv, Inc. Senior Notes 4.40% due 07/01/2049.............. 123,000 137,246 ---------- 295,451 ---------- Diagnostic Equipment -- 0.1% Thermo Fisher Scientific, Inc. Senior Notes 1.88% due 10/01/2049.............. EUR 350,000 381,505 ---------- Dialysis Centers -- 0.3% DaVita HealthCare Partners, Inc. Company Guar. Notes 5.00% due 05/01/2025.............. 250,000 249,017 DaVita HealthCare Partners, Inc. Company Guar. Notes 5.13% due 07/15/2024.............. 600,000 609,750 ---------- 858,767 ---------- Distribution/Wholesale -- 0.3% Anixter, Inc. Company Guar. Notes 6.00% due 12/01/2025.............. 296,000 327,080 H&E Equipment Services, Inc. Company Guar. Notes 5.63% due 09/01/2025.............. 643,000 661,904 ---------- 988,984 ---------- Diversified Banking Institutions -- 1.4% Bank of America Corp. Senior Notes 0.75% due 07/26/2023.............. EUR 225,000 251,575 Bank of America Corp. Senior Notes 2.38% due 06/19/2024.............. EUR 300,000 361,747 Bank of America Corp. Senior Notes 3.71% due 04/24/2028.............. 148,000 157,410 Bank of America Corp. Senior Notes 3.86% due 07/23/2024.............. 114,000 120,090 Bank of America Corp. Sub. Notes 4.18% due 11/25/2027.............. 312,000 336,809 Citigroup, Inc. Senior Notes 2.75% due 01/24/2024.............. GBP 100,000 129,208
22 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) U.S. CORPORATE BONDS & NOTES (continued) Diversified Banking Institutions (continued) Citigroup, Inc. Senior Notes 3.67% due 07/24/2028........... $ 185,000 $ 195,850 Citigroup, Inc. Senior Notes 3.98% due 03/20/2030........... 84,000 91,339 Citigroup, Inc. Sub. Notes 4.45% due 09/29/2027........... 252,000 274,951 Citigroup, Inc. Sub. Notes 5.88% due 02/22/2033........... 119,000 146,757 Citigroup, Inc. Sub. Notes 6.00% due 10/31/2033........... 54,000 67,497 Goldman Sachs Group, Inc. Senior Notes 2.35% due 11/15/2021........... 218,000 218,229 Goldman Sachs Group, Inc. Senior Notes 3.13% due 07/25/2029........... GBP 100,000 133,549 Goldman Sachs Group, Inc. FRS Senior Notes 3.33% (3 ML+1.17%) due 11/15/2021................. 436,000 439,342 Goldman Sachs Group, Inc. Senior Notes 3.69% due 06/05/2028........... 87,000 91,256 Goldman Sachs Group, Inc. Sub. Notes 4.25% due 10/21/2025........... 129,000 138,043 Goldman Sachs Group, Inc. Sub. Notes 6.75% due 10/01/2037........... 131,000 176,835 JPMorgan Chase & Co. Senior Notes 2.74% due 10/15/2030........... 176,000 174,764 JPMorgan Chase & Co. Senior Notes 3.21% due 04/01/2023........... 327,000 334,968 Morgan Stanley Senior Notes 3.63% due 01/20/2027........... 298,000 315,535 Morgan Stanley Senior Notes 5.50% due 07/24/2020........... 294,000 301,921 ---------- 4,457,675 ---------- Diversified Financial Services -- 0.1% USAA Capital Corp. Senior Notes 2.63% due 06/01/2021*.......... 152,000 153,615 ---------- Diversified Manufacturing Operations -- 0.2% General Electric Co. Senior Notes 1.25% due 05/26/2023........... EUR 200,000 222,252
Principal Value Security Description Amount(17) (Note 2) Diversified Manufacturing Operations (continued) Illinois Tool Works, Inc. Senior Notes 0.63% due 12/05/2027.................. EUR 165,000 $ 184,559 Illinois Tool Works, Inc. Senior Notes 3.50% due 03/01/2024.................. 96,000 101,643 ---------- 508,454 ---------- E-Commerce/Products -- 0.0% Amazon.com, Inc. Senior Notes 4.80% due 12/05/2034.................. 65,000 81,325 ---------- E-Commerce/Services -- 0.2% Expedia Group, Inc. Company Guar. Notes 3.25% due 02/15/2030*................. 79,000 78,775 GrubHub Holdings, Inc. Company Guar. Notes 5.50% due 07/01/2027*................. 602,000 614,220 ---------- 692,995 ---------- Electric Products-Misc. -- 0.0% Emerson Electric Co. Senior Notes 0.38% due 05/22/2024.................. EUR 100,000 110,379 ---------- Electric-Distribution -- 0.4% CenterPoint Energy, Inc. Senior Notes 2.95% due 03/01/2030.................. 85,000 84,686 National Rural Utilities Cooperative Finance Corp. Collateral Trust Bonds 2.85% due 01/27/2025.................. 116,000 119,556 NextEra Energy Operating Partners LP Company Guar. Notes 4.25% due 07/15/2024*................. 425,000 437,750 Oglethorpe Power Corp. 1st Mtg. Notes 5.05% due 10/01/2048.................. 226,000 273,454 Sempra Energy Senior Notes 3.40% due 02/01/2028.................. 165,000 170,438 ---------- 1,085,884 ---------- Electric-Generation -- 0.2% Basin Electric Power Cooperative 1st Mtg. Notes 4.75% due 04/26/2047*................. 43,000 50,138 Emera US Finance LP Company Guar. Notes 4.75% due 06/15/2046.................. 114,000 131,943 Vistra Operations Co. LLC Company Guar. Notes 5.00% due 07/31/2027*................. 425,000 437,614 ---------- 619,695 ----------
23 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) U.S. CORPORATE BONDS & NOTES (continued) Electric-Integrated -- 1.0% AEP Texas, Inc. Senior Notes 4.15% due 05/01/2049....................... $ 45,000 $ 51,781 Ameren Corp. Senior Notes 2.50% due 09/15/2024....................... 85,000 85,422 Black Hills Corp. Senior Notes 3.88% due 10/15/2049....................... 67,000 67,651 Consolidated Edison Co. of New York, Inc. Senior Notes 4.45% due 06/15/2020....................... 132,000 134,260 Dominion Resources, Inc. Senior Notes 5.25% due 08/01/2033....................... 182,000 220,409 DPL, Inc. Senior Notes 4.35% due 04/15/2029*...................... 37,000 36,547 DTE Electric Co. General Refunding Mtg. 3.95% due 03/01/2049....................... 202,000 231,476 DTE Energy Co. Senior Notes 3.40% due 06/15/2029....................... 79,000 82,330 Duke Energy Progress LLC 1st Mtg. Notes 2.80% due 05/15/2022....................... 82,000 83,554 Edison International Senior Notes 4.13% due 03/15/2028....................... 115,000 117,924 Entergy Texas, Inc. 1st Mtg. Notes 3.55% due 09/30/2049....................... 60,000 62,390 Entergy Texas, Inc. 1st Mtg. Notes 4.50% due 03/30/2039....................... 206,000 242,522 FirstEnergy Corp. Senior Notes 7.38% due 11/15/2031....................... 245,000 346,652 Georgia Power Co. Senior Notes 2.00% due 09/08/2020....................... 118,000 117,862 Interstate Power & Light Co. Senior Notes 3.50% due 09/30/2049....................... 83,000 83,403 Mississippi Power Co. Senior Notes 4.25% due 03/15/2042....................... 137,000 148,330 PECO Energy Co. 1st Mtg. Bonds 3.00% due 09/15/2049....................... 90,000 88,045 Public Service Co. of Colorado 1st Mtg. Bonds 3.70% due 06/15/2028....................... 148,000 163,501 Public Service Co. of Colorado 1st Mtg. Bonds 4.10% due 06/15/2048....................... 97,000 113,298
Principal Value Security Description Amount(17) (Note 2) Electric-Integrated (continued) South Carolina Electric & Gas Co. 1st Mtg. Bonds 5.10% due 06/01/2065................. $183,000 $ 243,186 Talen Energy Supply LLC Senior Sec. Notes 6.63% due 01/15/2028*................ 165,000 162,113 Talen Energy Supply LLC Senior Sec. Notes 7.25% due 05/15/2027*................ 175,000 177,853 ---------- 3,060,509 ---------- Electric-Transmission -- 0.0% AEP Transmission Co. LLC Senior Notes 3.15% due 09/15/2049................. 59,000 58,039 ---------- Electronic Components-Semiconductors -- 0.2% Amkor Technology, Inc. Senior Notes 6.63% due 09/15/2027*................ 438,000 477,420 Texas Instruments, Inc. Senior Notes 2.25% due 09/04/2029................. 56,000 55,131 ---------- 532,551 ---------- Electronic Measurement Instruments -- 0.1% Trimble, Inc. Senior Notes 4.75% due 12/01/2024................. 12,000 12,880 Trimble, Inc. Senior Notes 4.90% due 06/15/2028................. 213,000 231,101 ---------- 243,981 ---------- Electronic Parts Distribution -- 0.3% Arrow Electronics, Inc. Senior Notes 4.00% due 04/01/2025................. 74,000 77,134 Ingram Micro, Inc. Senior Notes 5.45% due 12/15/2024................. 722,000 747,960 ---------- 825,094 ---------- Energy-Alternate Sources -- 0.3% Hanwha Energy USA Holdings Corp. Company Guar. Notes 2.38% due 07/30/2022*................ 204,000 204,274 Pattern Energy Group, Inc. Company Guar. Notes 5.88% due 02/01/2024*................ 555,000 568,181 ---------- 772,455 ---------- Enterprise Software/Service -- 0.2% Donnelley Financial Solutions, Inc. Company Guar. Notes 8.25% due 10/15/2024................. 453,000 469,987 Oracle Corp. Senior Notes 2.95% due 11/15/2024................. 226,000 234,262 ---------- 704,249 ----------
24 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) U.S. CORPORATE BONDS & NOTES (continued) Finance-Auto Loans -- 0.1% Credit Acceptance Corp. Company Guar. Notes 6.63% due 03/15/2026*............ $373,000 $ 399,110 ---------- Finance-Consumer Loans -- 0.6% Enova International, Inc. Company Guar. Notes 8.50% due 09/01/2024*............ 638,000 594,935 SLM Corp. Senior Notes 5.63% due 08/01/2033............. 533,000 450,054 Springleaf Finance Corp. Company Guar. Notes 6.88% due 03/15/2025............. 425,000 468,297 Synchrony Financial Senior Notes 2.85% due 07/25/2022............. 51,000 51,429 Synchrony Financial Senior Notes 4.25% due 08/15/2024............. 280,000 295,143 Synchrony Financial Senior Notes 4.50% due 07/23/2025............. 74,000 78,972 ---------- 1,938,830 ---------- Finance-Credit Card -- 0.2% American Express Co. Senior Notes 3.40% due 02/22/2024............. 93,000 97,263 American Express Co. Senior Notes 4.20% due 11/06/2025............. 74,000 81,321 Capital One Financial Corp. FRS Senior Notes 3.05% (3 ML+0.95%) due 03/09/2022................... 435,000 438,340 ---------- 616,924 ---------- Finance-Investment Banker/Broker -- 0.1% Lehman Brothers Holdings, Inc. Escrow Notes 6.75% due 12/28/2017+(4)......... 280,000 28 Lehman Brothers Holdings, Inc. Escrow Notes 7.50% due 05/11/2038+(4)......... 361,000 36 LPL Holdings, Inc. Company Guar. Notes 5.75% due 09/15/2025*............ 386,000 401,440 ---------- 401,504 ---------- Finance-Mortgage Loan/Banker -- 0.2% Quicken Loans, Inc. Company Guar. Notes 5.75% due 05/01/2025*............ 650,000 670,312 ---------- Food-Meat Products -- 0.0% Smithfield Foods, Inc. Senior Notes 2.65% due 10/03/2021*............ 87,000 86,167
Principal Value Security Description Amount(17) (Note 2) Food-Meat Products (continued) Smithfield Foods, Inc. Senior Notes 5.20% due 04/01/2029*................. $ 41,000 $ 45,121 ---------- 131,288 ---------- Food-Misc./Diversified -- 0.5% Conagra Brands, Inc. Senior Notes 5.40% due 11/01/2048.................. 142,000 168,461 Conagra Brands, Inc. Senior Notes 7.00% due 10/01/2028.................. 117,000 147,138 General Mills, Inc. Senior Notes 4.55% due 04/17/2038.................. 53,000 60,321 General Mills, Inc. Senior Notes 4.70% due 04/17/2048.................. 100,000 117,026 Kraft Heinz Foods Co. Company Guar. Notes 4.63% due 10/01/2039*................. 60,000 60,311 Kraft Heinz Foods Co. Sec. Notes 4.88% due 02/15/2025*................. 132,000 135,891 Lamb Weston Holdings, Inc. Company Guar. Notes 4.63% due 11/01/2024*................. 420,000 442,008 Nestle Holdings, Inc. Company Guar. Notes 3.50% due 09/24/2025*................. 152,000 163,120 Post Holdings, Inc. Company Guar. Notes 5.50% due 03/01/2025*................. 330,000 345,675 ---------- 1,639,951 ---------- Food-Retail -- 0.3% Albertsons Cos. LLC/Safeway, Inc./New Albertsons LP/Albertson's LLC Company Guar. Notes 5.75% due 03/15/2025.................. 391,000 402,085 Albertsons Cos. LLC/Safeway, Inc./New Albertsons LP/Albertson's LLC Company Guar. Notes 5.88% due 02/15/2028*................. 308,000 325,999 Kroger Co. Senior Notes 4.65% due 01/15/2048.................. 82,000 87,754 ---------- 815,838 ---------- Gambling (Non-Hotel) -- 0.1% Twin River Worldwide Holdings, Inc. Senior Notes 6.75% due 06/01/2027*................. 240,000 252,000 Waterford Gaming LLC/Waterford Gaming Financial Corp. Escrow Notes 8.63% due 09/15/2014+*(4)............. 478,062 28,923 ---------- 280,923 ----------
25 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) U.S. CORPORATE BONDS & NOTES (continued) Gas-Distribution -- 0.1% NiSource, Inc. Senior Notes 2.95% due 09/01/2029........... $130,000 $130,704 NiSource, Inc. Senior Notes 5.65% due 02/01/2045........... 66,000 85,052 Washington Gas Light Co. Senior Notes 3.65% due 09/15/2049........... 119,000 121,737 -------- 337,493 -------- Gold Mining -- 0.0% Newmont Goldcorp Corp. Senior Notes 2.80% due 10/01/2029........... 96,000 94,875 -------- Hazardous Waste Disposal -- 0.1% Clean Harbors, Inc. Senior Notes 4.88% due 07/15/2027*.......... 261,000 272,419 -------- Hotels/Motels -- 0.1% Wyndham Worldwide Corp. Senior Sec. Notes 5.75% due 04/01/2027........... 271,000 292,680 -------- Independent Power Producers -- 0.2% Clearway Energy Operating LLC Company Guar. Notes 5.75% due 10/15/2025*.......... 395,000 415,737 NRG Yield Operating LLC Company Guar. Notes 5.00% due 09/15/2026........... 233,000 238,243 -------- 653,980 -------- Insurance Brokers -- 0.1% Marsh & McLennan Cos., Inc. Senior Notes 3.50% due 12/29/2020........... 61,000 61,974 Willis North America, Inc. Company Guar. Notes 3.88% due 09/15/2049........... 81,000 79,219 Willis North America, Inc. Company Guar. Notes 5.05% due 09/15/2048........... 77,000 89,950 -------- 231,143 -------- Insurance-Life/Health -- 0.1% Brighthouse Financial, Inc. Senior Notes 4.70% due 06/22/2047........... 94,000 83,858 Prudential Financial, Inc. Senior Notes 3.70% due 03/13/2051........... 172,000 178,077 Unum Group Senior Notes 4.50% due 12/15/2049........... 117,000 112,862 -------- 374,797 --------
Principal Value Security Description Amount(17) (Note 2) Insurance-Multi-line -- 0.0% Assurant, Inc. Senior Notes 3.70% due 02/22/2030...................... $ 67,000 $ 67,079 Assurant, Inc. Senior Notes 6.75% due 02/15/2034...................... 14,000 17,207 ---------- 84,286 ---------- Insurance-Property/Casualty -- 0.2% ACE INA Holdings, Inc. Company Guar. Notes 2.88% due 11/03/2022...................... 83,000 85,079 AmWINS Group, Inc. Company Guar. Notes 7.75% due 07/01/2026*..................... 370,000 397,750 Chubb INA Holdings, Inc. Company Guar. Notes 2.50% due 03/15/2038...................... EUR 150,000 199,829 ---------- 682,658 ---------- Internet Connectivity Services -- 0.1% Cogent Communications Group, Inc. Senior Sec. Notes 5.38% due 03/01/2022*..................... 407,000 423,280 ---------- Internet Content-Entertainment -- 0.4% Netflix, Inc. Senior Notes 4.38% due 11/15/2026...................... 561,000 568,321 Netflix, Inc. Senior Notes 5.88% due 02/15/2025...................... 476,000 522,715 ---------- 1,091,036 ---------- Investment Companies -- 0.1% FS Energy & Power Fund Senior Sec. Notes 7.50% due 08/15/2023*..................... 347,000 350,470 ---------- Investment Management/Advisor Services -- 0.0% Ameriprise Financial, Inc. Senior Notes 3.00% due 03/22/2022...................... 109,000 111,021 ---------- Machinery-Construction & Mining -- 0.3% Caterpillar Financial Services Corp. FRS Senior Notes 2.38% (3 ML+0.28%) due 09/07/2021............................ 310,000 309,945 Caterpillar Financial Services Corp. Senior Notes 2.55% due 11/29/2022...................... 82,000 83,438 Caterpillar Financial Services Corp. Senior Notes 3.15% due 09/07/2021...................... 66,000 67,365 Caterpillar Financial Services Corp. Senior Notes 3.45% due 05/15/2023...................... 106,000 111,182
26 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) U.S. CORPORATE BONDS & NOTES (continued) Machinery-Construction & Mining (continued) Terex Corp. Company Guar. Notes 5.63% due 02/01/2025*................. $350,000 $359,188 -------- 931,118 -------- Machinery-Electrical -- 0.0% ABB Finance USA, Inc. Company Guar. Notes 3.38% due 04/03/2023.................. 139,000 144,943 -------- Machinery-Farming -- 0.2% CNH Industrial Capital LLC Company Guar. Notes 4.20% due 01/15/2024.................. 208,000 219,482 John Deere Capital Corp. Senior Notes 2.80% due 07/18/2029.................. 83,000 85,222 John Deere Capital Corp. Senior Notes 2.95% due 04/01/2022.................. 186,000 190,619 John Deere Capital Corp. Senior Notes 3.45% due 01/10/2024.................. 113,000 119,054 John Deere Capital Corp. Senior Notes 3.65% due 10/12/2023.................. 67,000 71,382 -------- 685,759 -------- Machinery-General Industrial -- 0.1% Roper Technologies, Inc. Senior Notes 2.95% due 09/15/2029.................. 55,000 55,133 Roper Technologies, Inc. Senior Notes 4.20% due 09/15/2028.................. 118,000 129,589 -------- 184,722 -------- Medical Labs & Testing Services -- 0.2% Catalent Pharma Solutions, Inc. Company Guar. Notes 5.00% due 07/15/2027*................. 216,000 224,100 Laboratory Corp. of America Holdings Senior Notes 3.25% due 09/01/2024.................. 240,000 248,592 Laboratory Corp. of America Holdings Senior Notes 4.70% due 02/01/2045.................. 61,000 67,921 -------- 540,613 -------- Medical Products -- 0.1% Hologic, Inc. Company Guar. Notes 4.38% due 10/15/2025*................. 325,000 333,125 -------- Medical-Biomedical/Gene -- 0.1% Amgen, Inc. Senior Notes 4.66% due 06/15/2051.................. 58,000 67,908 Celgene Corp. Senior Notes 3.63% due 05/15/2024.................. 119,000 125,663
Principal Value Security Description Amount(17) (Note 2) Medical-Biomedical/Gene (continued) Celgene Corp. Senior Notes 4.55% due 02/20/2048........... $ 10,000 $ 11,933 Celgene Corp. Senior Notes 4.63% due 05/15/2044........... 68,000 80,755 ---------- 286,259 ---------- Medical-Drugs -- 0.1% Bristol-Myers Squibb Co. Senior Notes 4.13% due 06/15/2039*.......... 77,000 87,258 GlaxoSmithKline Capital, Inc. Company Guar. Notes 3.38% due 05/15/2023........... 82,000 85,615 Johnson & Johnson Senior Notes 5.50% due 11/06/2024........... GBP 100,000 150,557 ---------- 323,430 ---------- Medical-Generic Drugs -- 0.0% Mylan, Inc. Company Guar. Notes 4.55% due 04/15/2028........... 105,000 111,445 ---------- Medical-HMO -- 0.4% Humana, Inc. Senior Notes 3.95% due 08/15/2049........... 73,000 73,169 MPH Acquisition Holdings LLC Company Guar. Notes 7.13% due 06/01/2024*.......... 500,000 460,625 UnitedHealth Group, Inc. Senior Bonds 2.38% due 10/15/2022........... 334,000 337,451 UnitedHealth Group, Inc. Senior Notes 3.50% due 08/15/2039........... 87,000 90,566 UnitedHealth Group, Inc. Senior Notes 3.75% due 07/15/2025........... 119,000 127,952 ---------- 1,089,763 ---------- Medical-Hospitals -- 0.5% HCA, Inc. Senior Sec. Notes 5.25% due 06/15/2026........... 84,000 93,535 HCA, Inc. Senior Sec. Notes 5.25% due 06/15/2049........... 63,000 68,723 HCA, Inc. Company Guar. Notes 5.38% due 02/01/2025........... 1,175,000 1,283,688 ---------- 1,445,946 ---------- Medical-Wholesale Drug Distribution -- 0.1% Allergan Sales LLC Company Guar. Notes 4.88% due 02/15/2021*.......... 75,000 77,088
27 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) U.S. CORPORATE BONDS & NOTES (continued) Medical-Wholesale Drug Distribution (continued) Cardinal Health, Inc. Senior Notes 4.60% due 03/15/2043.................. $139,000 $136,316 -------- 213,404 -------- Metal-Copper -- 0.2% Freeport-McMoRan Copper & Gold, Inc. Company Guar. Notes 3.88% due 03/15/2023.................. 525,000 528,937 -------- Metal-Diversified -- 0.1% Glencore Funding LLC Company Guar. Notes 4.13% due 03/12/2024*................. 148,000 155,245 -------- Metal-Iron -- 0.2% Cleveland-Cliffs, Inc. Company Guar. Notes 5.75% due 03/01/2025.................. 560,000 550,200 -------- Multimedia -- 0.3% E.W. Scripps Co. Company Guar. Notes 5.13% due 05/15/2025*................. 668,000 669,670 Viacom, Inc. Senior Notes 4.38% due 03/15/2043.................. 149,000 153,674 -------- 823,344 -------- Networking Products -- 0.0% Cisco Systems, Inc. Senior Notes 2.20% due 02/28/2021.................. 102,000 102,528 -------- Non-Hazardous Waste Disposal -- 0.0% Waste Management, Inc. Company Guar. Notes 4.15% due 07/15/2049.................. 51,000 59,432 -------- Office Supplies & Forms -- 0.0% Avery Dennison Corp. Senior Notes 4.88% due 12/06/2028.................. 41,000 46,701 -------- Oil Companies-Exploration & Production -- 1.4% Apache Corp. Senior Notes 4.75% due 04/15/2043.................. 179,000 171,499 Brazos Valley Longhorn LLC/Brazos Valley Longhorn Finance Corp. Company Guar. Notes 6.88% due 02/01/2025.................. 415,000 356,900 Callon Petroleum Co. Company Guar. Notes 6.38% due 07/01/2026.................. 400,000 390,340 Centennial Resource Production LLC Company Guar. Notes 6.88% due 04/01/2027*................. 375,000 374,063 Chaparral Energy, Inc. Senior Notes 8.75% due 07/15/2023*................. 704,000 274,560
Principal Value Security Description Amount(17) (Note 2) Oil Companies-Exploration & Production (continued) Cimarex Energy Co. Senior Notes 4.38% due 03/15/2029..................... $210,000 $ 221,005 Concho Resources, Inc. Company Guar. Notes 4.85% due 08/15/2048..................... 53,000 60,730 Devon Energy Corp. Senior Notes 5.00% due 06/15/2045..................... 82,000 94,819 Extraction Oil & Gas, Inc. Company Guar. Notes 5.63% due 02/01/2026*.................... 550,000 336,875 Hilcorp Energy I LP/Hilcorp Finance Co. Senior Notes 5.00% due 12/01/2024*.................... 697,000 651,695 Lonestar Resources America, Inc. Company Guar. Notes 11.25% due 01/01/2023*................... 521,000 425,918 Marathon Oil Corp. Senior Notes 6.60% due 10/01/2037..................... 61,000 77,297 Marathon Oil Corp. Senior Notes 6.80% due 03/15/2032..................... 85,000 106,356 Noble Energy, Inc. Senior Notes 4.20% due 10/15/2049..................... 151,000 148,578 Noble Energy, Inc. Senior Notes 4.95% due 08/15/2047..................... 120,000 130,976 Occidental Petroleum Corp. Senior Notes 6.45% due 09/15/2036..................... 123,000 152,162 Occidental Petroleum Corp. Senior Notes 7.50% due 05/01/2031..................... 51,000 66,794 Southwestern Energy Co. Company Guar. Notes 7.50% due 04/01/2026..................... 226,000 197,185 ---------- 4,237,752 ---------- Oil Companies-Integrated -- 0.0% Chevron Corp. Senior Notes 2.90% due 03/03/2024..................... 132,000 136,960 ---------- Oil Field Machinery & Equipment -- 0.1% Hi-Crush Partners LP Company Guar. Notes 9.50% due 08/01/2026*.................... 575,000 333,500 ---------- Oil-Field Services -- 0.4% Calfrac Holdings LP Company Guar. Notes 8.50% due 06/15/2026*.................... 455,000 202,475 Nine Energy Service, Inc. Senior Notes 8.75% due 11/01/2023*.................... 240,000 194,400
28 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) U.S. CORPORATE BONDS & NOTES (continued) Oil-Field Services (continued) Pioneer Energy Services Corp. Company Guar. Notes 6.13% due 03/15/2022...................... $479,000 $ 167,650 Schlumberger Holdings Corp. Senior Notes 4.00% due 12/21/2025*..................... 112,000 119,562 SESI LLC Company Guar. Notes 7.75% due 09/15/2024...................... 475,000 268,375 USA Compression Partners LP/USA Compression Finance Corp. Company Guar. Notes 6.88% due 04/01/2026...................... 260,000 269,750 ---------- 1,222,212 ---------- Paper & Related Products -- 0.2% Domtar Corp. Company Guar. Notes 6.75% due 02/15/2044...................... 261,000 292,493 Georgia-Pacific LLC Senior Notes 3.73% due 07/15/2023*..................... 119,000 124,996 Georgia-Pacific LLC Company Guar. Notes 5.40% due 11/01/2020*..................... 123,000 127,233 ---------- 544,722 ---------- Petrochemicals -- 0.0% Chevron Phillips Chemical Co. LLC/Chevron Phillips Chemical Co. LP Senior Notes 3.30% due 05/01/2023*..................... 71,000 72,903 ---------- Pharmacy Services -- 0.2% Cigna Corp. Company Guar. Notes 4.80% due 08/15/2038...................... 110,000 123,282 CVS Health Corp. Senior Notes 4.78% due 03/25/2038...................... 500,000 547,592 ---------- 670,874 ---------- Pipelines -- 1.4% Antero Midstream Partners LP/Antero Midstream Finance Corp. Company Guar. Notes 5.75% due 03/01/2027*..................... 198,000 165,083 Cheniere Corpus Christi Holdings LLC Senior Sec. Notes 7.00% due 06/30/2024...................... 490,000 563,157 Cheniere Energy Partners LP Senior Notes 4.50% due 10/01/2029*..................... 342,000 350,122 Cheniere Energy Partners LP Senior Sec. Notes 5.25% due 10/01/2025...................... 308,000 319,550 Enable Midstream Partners LP Senior Notes 4.15% due 09/15/2029...................... 78,000 75,300
Principal Value Security Description Amount(17) (Note 2) Pipelines (continued) Enable Midstream Partners LP Senior Notes 4.95% due 05/15/2028.......................... $ 83,000 $ 86,202 Energy Transfer Operating LP Company Guar. Notes 4.50% due 04/15/2024.......................... 88,000 93,803 Energy Transfer Operating LP Company Guar. Notes 4.90% due 03/15/2035.......................... 189,000 195,228 Energy Transfer Operating LP Company Guar. Notes 5.25% due 04/15/2029.......................... 57,000 64,337 EnLink Midstream LLC Company Guar. Notes 5.38% due 06/01/2029.......................... 80,000 76,400 EnLink Midstream Partners LP Senior Notes 5.05% due 04/01/2045.......................... 22,000 17,600 Genesis Energy LP/Genesis Energy Finance Corp. Company Guar. Notes 5.63% due 06/15/2024.......................... 274,000 262,355 Genesis Energy LP/Genesis Energy Finance Corp. Company Guar. Notes 6.00% due 05/15/2023.......................... 330,000 331,237 Holly Energy Partners LP/Holly Energy Finance Corp. Company Guar. Notes 6.00% due 08/01/2024*......................... 295,000 307,906 Kinder Morgan, Inc. Company Guar. Notes 1.50% due 03/16/2022.......................... EUR 275,000 310,887 MPLX LP Senior Notes 5.50% due 02/15/2049.......................... 63,000 73,062 SemGroup Corp./Rose Rock Finance Corp. Company Guar. Notes 5.63% due 07/15/2022.......................... 195,000 197,927 SemGroup Corp./Rose Rock Finance Corp. Company Guar. Notes 5.63% due 11/15/2023.......................... 317,000 324,132 Summit Midstream Holdings LLC/Summit Midstream Finance Corp. Company Guar. Notes 5.50% due 08/15/2022.......................... 275,000 250,938 Western Midstream Operating LP Senior Notes 5.50% due 08/15/2048.......................... 65,000 57,851 Williams Cos., Inc. Senior Notes 5.75% due 06/24/2044.......................... 130,000 150,020 ---------- 4,273,097 ---------- Platinum -- 0.1% Stillwater Mining Co. Company Guar. Notes 7.13% due 06/27/2025.......................... 200,000 201,500 ----------
29 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) U.S. CORPORATE BONDS & NOTES (continued) Poultry -- 0.1% Pilgrim's Pride Corp. Company Guar. Notes 5.88% due 09/30/2027*............................ $360,000 $386,640 -------- Radio -- 0.3% Sirius XM Radio, Inc. Company Guar. Notes 4.63% due 07/15/2024*............................ 865,000 896,858 -------- Real Estate Investment Trusts -- 1.9% American Tower Corp. Senior Notes 4.00% due 06/01/2025............................. 96,000 102,608 AvalonBay Communities, Inc. Senior Notes 3.30% due 06/01/2029............................. 74,000 78,103 Camden Property Trust Senior Notes 3.35% due 11/01/2049............................. 28,000 28,205 Columbia Property Trust Operating Partnership LP Company Guar. Notes 4.15% due 04/01/2025............................. 130,000 135,387 Crown Castle International Corp. Senior Notes 5.20% due 02/15/2049............................. 105,000 129,708 CTR Partnership LP/CareTrust Capital Corp. Company Guar. Notes 5.25% due 06/01/2025............................. 426,000 439,845 ESH Hospitality, Inc. Company Guar. Notes 4.63% due 10/01/2027*............................ 340,000 341,275 ESH Hospitality, Inc. Company Guar. Notes 5.25% due 05/01/2025*............................ 442,000 457,028 GLP Capital LP/GLP Financing II, Inc. Company Guar. Notes 5.38% due 04/15/2026............................. 265,000 291,463 HAT Holdings I LLC/HAT Holdings II LLC Company Guar. Notes 5.25% due 07/15/2024*............................ 522,000 548,752 HCP, Inc. Senior Notes 3.50% due 07/15/2029............................. 56,000 58,185 Healthcare Trust of America Holdings LP Company Guar. Notes 3.10% due 02/15/2030............................. 111,000 110,652 Iron Mountain, Inc. Company Guar. Notes 4.88% due 09/15/2027*............................ 435,000 444,866 iStar, Inc. Senior Notes 5.25% due 09/15/2022............................. 427,000 436,074 MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc. Company Guar. Notes 5.75% due 02/01/2027*............................ 350,000 392,980 MPT Operating Partnership LP/MPT Finance Corp. Company Guar. Notes 5.00% due 10/15/2027............................. 506,000 530,035
Principal Value Security Description Amount(17) (Note 2) Real Estate Investment Trusts (continued) Sabra Health Care LP Company Guar. Notes 5.13% due 08/15/2026...................... $797,000 $ 851,947 Sabra Health Care LP/Sabra Capital Corp. Company Guar. Notes 3.90% due 10/15/2029...................... 116,000 114,260 Sabra Health Care LP/Sabra Capital Corp. Company Guar. Notes 4.80% due 06/01/2024...................... 69,000 72,809 Simon Property Group LP Senior Notes 2.45% due 09/13/2029...................... 78,000 76,312 Simon Property Group LP Senior Notes 4.13% due 12/01/2021...................... 125,000 129,881 Starwood Property Trust, Inc. Senior Notes 4.75% due 03/15/2025...................... 310,000 320,633 ---------- 6,091,008 ---------- Real Estate Operations & Development -- 0.2% Kennedy-Wilson, Inc. Company Guar. Notes 5.88% due 04/01/2024...................... 700,000 718,158 ---------- Rental Auto/Equipment -- 0.4% Ahern Rentals, Inc. Sec. Notes 7.38% due 05/15/2023*..................... 490,000 417,108 Capitol Investment Merger Sub 2 LLC Sec. Notes 10.00% due 08/01/2024*.................... 455,000 472,062 Herc Holdings, Inc. Company Guar. Notes 5.50% due 07/15/2027*..................... 316,000 328,640 ---------- 1,217,810 ---------- Retail-Appliances -- 0.1% Conn's, Inc. Company Guar. Notes 7.25% due 07/15/2022...................... 437,000 441,370 ---------- Retail-Discount -- 0.1% Walmart, Inc. Senior Notes 3.05% due 07/08/2026...................... 150,000 158,914 ---------- Retail-Drug Store -- 0.0% Walgreens Boots Alliance, Inc. Senior Notes 4.80% due 11/18/2044...................... 58,000 61,252 ---------- Retail-Mail Order -- 0.1% QVC, Inc. Senior Sec. Notes 4.85% due 04/01/2024...................... 227,000 239,580 ---------- Retail-Petroleum Products -- 0.1% Murphy Oil USA, Inc. Company Guar. Notes 4.75% due 09/15/2029...................... 320,000 327,200 ----------
30 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) U.S. CORPORATE BONDS & NOTES (continued) Retail-Regional Department Stores -- 0.0% Kohl's Corp. Senior Notes 5.55% due 07/17/2045....................... $133,000 $ 136,787 ---------- Retail-Restaurants -- 0.4% Brinker International, Inc. Company Guar. Notes 5.00% due 10/01/2024*...................... 420,000 441,000 Darden Restaurants, Inc. Senior Notes 4.55% due 02/15/2048....................... 187,000 197,486 McDonald's Corp. Senior Notes 3.63% due 09/01/2049....................... 113,000 114,221 McDonald's Corp. Senior Notes 4.45% due 03/01/2047....................... 68,000 78,080 McDonald's Corp. Senior Notes 4.45% due 09/01/2048....................... 66,000 76,294 Yum! Brands, Inc. Senior Notes 4.75% due 01/15/2030*...................... 320,000 330,451 ---------- 1,237,532 ---------- Rubber/Plastic Products -- 0.0% Venture Holdings Co. LLC Company Guar. Notes 11.00% due 06/01/2007+(4)(5)(6)............ 100,000 0 ---------- Satellite Telecom -- 0.3% Hughes Satellite Systems Corp. Company Guar. Notes 6.63% due 08/01/2026....................... 773,000 839,061 ---------- Savings & Loans/Thrifts -- 0.2% First Niagara Financial Group, Inc. Sub. Notes 7.25% due 12/15/2021....................... 434,000 478,206 New York Community Bancorp, Inc. Sub. Notes 5.90% due 11/06/2028....................... 193,000 202,073 ---------- 680,279 ---------- Security Services -- 0.2% Prime Security Services Borrower LLC/Prime Finance, Inc. Senior Sec. Notes 5.25% due 04/15/2024*...................... 513,000 526,620 Prime Security Services Borrower LLC/Prime Finance, Inc. Senior Sec. Notes 5.75% due 04/15/2026*...................... 230,000 239,499 ---------- 766,119 ---------- Semiconductor Components-Integrated Circuits -- 0.0% QUALCOMM, Inc. Senior Notes 4.30% due 05/20/2047....................... 48,000 53,658 ----------
Principal Value Security Description Amount(17) (Note 2) Steel Pipe & Tube -- 0.0% Advanced Drainage Systems, Inc. Senior Sec. Notes 5.00% due 09/30/2027*............ $ 65,000 $ 65,893 ---------- Steel-Producers -- 0.2% Commercial Metals Co. Senior Notes 5.75% due 04/15/2026............. 455,000 466,375 ---------- Telephone-Integrated -- 1.1% AT&T, Inc. Senior Notes 3.15% due 09/04/2036............. EUR 150,000 198,445 AT&T, Inc. Senior Notes 4.50% due 05/15/2035............. 530,000 581,511 AT&T, Inc. Senior Notes 4.85% due 07/15/2045............. 41,000 45,732 AT&T, Inc. Senior Notes 4.90% due 08/15/2037............. 68,000 77,123 CenturyLink, Inc. Senior Notes 7.50% due 04/01/2024............. 920,000 1,028,882 Frontier Communications Corp. Senior Notes 7.63% due 04/15/2024............. 595,000 261,800 Frontier Communications Corp. Senior Notes 8.75% due 04/15/2022............. 630,000 280,350 Level 3 Financing, Inc. Company Guar. Notes 4.63% due 09/15/2027*............ 395,000 398,575 Verizon Communications, Inc. Senior Notes 2.50% due 04/08/2031............. GBP 100,000 130,583 Verizon Communications, Inc. Senior Notes 4.27% due 01/15/2036............. 58,000 65,218 Verizon Communications, Inc. Senior Notes 4.40% due 11/01/2034............. 113,000 129,266 Verizon Communications, Inc. Senior Notes 5.25% due 03/16/2037............. 97,000 120,092 ---------- 3,317,577 ---------- Television -- 0.4% Belo Corp. Company Guar. Notes 7.25% due 09/15/2027............. 273,000 309,855 Belo Corp. Company Guar. Notes 7.75% due 06/01/2027............. 416,000 479,440 CBS Corp. Company Guar. Notes 3.70% due 06/01/2028............. 145,000 151,133
31 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) U.S. CORPORATE BONDS & NOTES (continued) Television (continued) Gray Television, Inc. Company Guar. Notes 5.13% due 10/15/2024*................... $290,000 $ 300,512 ----------- 1,240,940 ----------- Tools-Hand Held -- 0.0% Stanley Black & Decker, Inc. Senior Notes 3.40% due 03/01/2026.................... 84,000 88,912 ----------- Transport-Equipment & Leasing -- 0.1% GATX Corp. Senior Notes 4.35% due 02/15/2024.................... 165,000 176,483 ----------- Transport-Marine -- 0.1% Kirby Corp. Senior Notes 4.20% due 03/01/2028.................... 142,000 151,756 ----------- Transport-Rail -- 0.0% Kansas City Southern Company Guar. Notes 4.70% due 05/01/2048.................... 56,000 66,881 ----------- Transport-Truck -- 0.0% JB Hunt Transport Services, Inc. Company Guar. Notes 3.88% due 03/01/2026.................... 74,000 78,468 ----------- Trucking/Leasing -- 0.1% Penske Truck Leasing Co. LP/PTL Finance Corp. Senior Notes 3.35% due 11/01/2029*................... 93,000 92,642 Penske Truck Leasing Co. LP/PTL Finance Corp. Senior Notes 3.40% due 11/15/2026*................... 95,000 97,094 Penske Truck Leasing Co. LP/PTL Finance Corp. Senior Notes 3.95% due 03/10/2025*................... 216,000 228,154 ----------- 417,890 ----------- Total U.S. Corporate Bonds & Notes (cost $97,446,980)...................... 98,436,552 ----------- FOREIGN CORPORATE BONDS & NOTES -- 11.4% Agricultural Chemicals -- 0.2% Consolidated Energy Finance SA Senior Notes 6.88% due 06/15/2025*................... 605,000 606,513 ----------- Airport Development/Maintenance -- 0.2% Heathrow Funding, Ltd. Senior Sec. Notes 6.75% due 12/03/2028.................... GBP 100,000 165,654 Mexico City Airport Trust Senior Sec. Notes 4.25% due 10/31/2026.................... 460,000 462,875 ----------- 628,529 -----------
Principal Value Security Description Amount(17) (Note 2) Auto-Cars/Light Trucks -- 0.2% FCE Bank PLC Senior Notes 1.11% due 05/13/2020................. EUR 300,000 $ 328,802 Volkswagen International Finance NV Company Guar. Notes 1.88% due 03/30/2027................. EUR 200,000 230,371 ---------- 559,173 ---------- Auto/Truck Parts & Equipment-Original -- 0.1% Delphi Jersey Holdings PLC Company Guar. Notes 5.00% due 10/01/2025*................ 420,000 371,700 ---------- Banks-Commercial -- 0.9% Banco Bilbao Vizcaya Argentaria SA Senior Notes 1.38% due 05/14/2025................. EUR 100,000 115,737 Banco de Credito e Inversiones SA Senior Notes 3.50% due 10/12/2027................. 490,000 512,785 Banco do Brasil SA Senior Notes 4.75% due 03/20/2024*................ 370,000 388,037 BPCE SA Sub. Notes 4.63% due 07/18/2023................. EUR 300,000 379,841 Credit Suisse AG Sub. Notes 5.75% due 09/18/2025................. EUR 330,000 378,880 Danske Bank A/S Senior Notes 0.88% due 05/22/2023................. EUR 400,000 443,217 Danske Bank A/S Senior Notes 3.88% due 09/12/2023*................ 200,000 207,349 Intesa Sanpaolo SpA Sub. Notes 5.71% due 01/15/2026*................ 255,000 270,917 Westpac Banking Corp. Sub. Notes 4.11% due 07/24/2034................. 88,000 91,870 Westpac Banking Corp. Sub. Notes 4.42% due 07/24/2039................. 74,000 81,718 ---------- 2,870,351 ---------- Banks-Export/Import -- 0.1% Export-Import Bank of India Senior Notes 3.38% due 08/05/2026................. 450,000 461,878 ---------- Banks-Special Purpose -- 0.1% Kreditanstalt fuer Wiederaufbau Government Guar. Notes 1.63% due 03/15/2021................. 223,000 222,540 ---------- Building Societies -- 0.1% Nationwide Building Society Senior Notes 1.50% due 03/08/2026................. EUR 100,000 113,169
32 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) FOREIGN CORPORATE BONDS & NOTES (continued) Building Societies (continued) Nationwide Building Society Sub. Notes 4.13% due 10/18/2032*......................... $ 250,000 $ 249,141 ---------- 362,310 ---------- Cable/Satellite TV -- 0.6% Altice Financing SA Senior Sec. Notes 7.50% due 05/15/2026*......................... 370,000 393,121 Altice Luxembourg SA Company Guar. Notes 7.63% due 02/15/2025*......................... 465,000 484,763 Sky, Ltd. Company Guar. Notes 2.50% due 09/15/2026.......................... EUR 350,000 439,384 UPCB Finance IV, Ltd. Senior Sec. Notes 5.38% due 01/15/2025*......................... 444,000 456,210 ---------- 1,773,478 ---------- Cellular Telecom -- 0.8% America Movil SAB de CV Senior Notes 0.75% due 06/26/2027.......................... EUR 300,000 334,334 C&W Senior Financing Designated Activity Co. Senior Notes 6.88% due 09/15/2027*......................... 542,000 561,648 Millicom International Cellular SA Senior Notes 6.63% due 10/15/2026*......................... 200,000 217,500 Numericable-SFR SA Senior Sec. Notes 7.38% due 05/01/2026*......................... 800,000 857,768 Vodafone Group PLC Senior Notes 2.88% due 11/20/2037.......................... EUR 120,000 158,828 Vodafone Group PLC Senior Notes 4.88% due 06/19/2049.......................... 104,000 115,799 Vodafone Group PLC Senior Notes 5.25% due 05/30/2048.......................... 102,000 118,232 ---------- 2,364,109 ---------- Chemicals-Diversified -- 0.1% Braskem Netherlands Finance BV Company Guar. Notes 4.50% due 01/10/2028*......................... 209,000 209,261 Petkim Petrokimya Holding AS Senior Notes 5.88% due 01/26/2023*......................... 270,000 265,821 ---------- 475,082 ---------- Computers-Memory Devices -- 0.1% Seagate HDD Cayman Company Guar. Notes 4.75% due 01/01/2025.......................... 320,000 331,682 ----------
Principal Value Security Description Amount(17) (Note 2) Containers-Metal/Glass -- 0.3% Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. Company Guar. Notes 5.25% due 08/15/2027*........................ $ 450,000 $455,625 Trivium Packaging Finance BV Company Guar. Notes 8.50% due 08/15/2027*........................ 450,000 486,562 -------- 942,187 -------- Containers-Paper/Plastic -- 0.1% Intertape Polymer Group, Inc. Company Guar. Notes 7.00% due 10/15/2026*........................ 434,000 452,445 -------- Cosmetics & Toiletries -- 0.0% Unilever PLC Company Guar. Notes 1.38% due 09/15/2024......................... GBP 100,000 125,509 -------- Diagnostic Equipment -- 0.1% DH Europe Finance II SARL Company Guar. Notes 0.45% due 03/18/2028......................... EUR 230,000 251,049 DH Europe Finance II SARL Company Guar. Notes 1.80% due 09/18/2049......................... EUR 150,000 167,678 -------- 418,727 -------- Diamonds/Precious Stones -- 0.1% Petra Diamonds US Treasury PLC Sec. Notes 7.25% due 05/01/2022......................... 260,000 205,400 -------- Disposable Medical Products -- 0.1% Becton Dickinson Euro Finance SARL Company Guar. Notes 1.21% due 06/04/2026......................... EUR 220,000 247,450 -------- Diversified Banking Institutions -- 1.3% Banco Santander SA Senior Notes 3.31% due 06/27/2029......................... 200,000 206,626 BNP Paribas SA Senior Notes 3.38% due 01/23/2026......................... GBP 100,000 133,702 BNP Paribas SA Senior Notes 4.71% due 01/10/2025*........................ 200,000 216,191 Credit Suisse Group AG Senior Notes 1.25% due 07/17/2025......................... EUR 200,000 227,152 HSBC Holdings PLC Senior Notes 3.00% due 07/22/2028......................... GBP 120,000 157,531 HSBC Holdings PLC Senior Notes 3.40% due 03/08/2021......................... 208,000 211,273 Lloyds Banking Group PLC Senior Notes 0.63% due 01/15/2024......................... EUR 250,000 273,245
33 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) FOREIGN CORPORATE BONDS & NOTES (continued) Diversified Banking Institutions (continued) Mitsubishi UFJ Financial Group, Inc. Senior Notes 3.41% due 03/07/2024....................... $ 363,000 $ 377,902 Mizuho Financial Group, Inc. Senior Notes 3.15% due 07/16/2030....................... 202,000 206,368 Mizuho Financial Group, Inc. Senior Notes 3.92% due 09/11/2024....................... 209,000 219,958 NatWest Markets PLC Senior Notes 3.63% due 09/29/2022*...................... 200,000 205,323 Royal Bank of Scotland Group PLC Senior Notes 4.27% due 03/22/2025....................... 202,000 211,294 Royal Bank of Scotland Group PLC Senior Notes 4.52% due 06/25/2024....................... 200,000 210,327 UBS AG Sub. Notes 4.75% due 02/12/2026....................... EUR 250,000 288,439 UBS Group Funding Switzerland AG Company Guar. Bonds 1.25% due 09/01/2026....................... EUR 225,000 261,084 UBS Group Funding Switzerland AG Company Guar. Notes 3.49% due 05/23/2023*...................... 200,000 205,301 UniCredit SpA Sub. Notes 5.86% due 06/19/2032*...................... 298,000 306,423 UniCredit SpA Sub. Notes 7.30% due 04/02/2034*...................... 234,000 264,085 ---------- 4,182,224 ---------- Diversified Financial Services -- 0.4% Fairstone Financial, Inc. Senior Notes 7.88% due 07/15/2024*...................... 358,000 373,886 GE Capital European Funding Unlimited Co. Company Guar. Notes 5.38% due 01/23/2020....................... EUR 425,000 470,737 GE Capital International Funding Co. ULC Company Guar. Notes 3.37% due 11/15/2025....................... 275,000 280,551 ---------- 1,125,174 ---------- Diversified Manufacturing Operations -- 0.1% Siemens Financieringsmaatschappij NV Company Guar. Notes 2.88% due 03/10/2028....................... EUR 150,000 200,045 ---------- Diversified Minerals -- 0.3% Anglo American Capital PLC Company Guar. Notes 3.25% due 04/03/2023....................... EUR 225,000 270,835
Principal Value Security Description Amount(17) (Note 2) Diversified Minerals (continued) FMG Resources August 2006 Pty, Ltd. Company Guar. Notes 4.50% due 09/15/2027*................... $ 600,000 $ 585,900 ---------- 856,735 ---------- Electric-Distribution -- 0.1% OmGrid Funding, Ltd. Company Guar. Notes 5.20% due 05/16/2027.................... 200,000 191,022 ---------- Electric-Generation -- 0.2% Electricite de France SA Senior Notes 6.25% due 05/30/2028.................... GBP 200,000 334,824 SPIC Luxembourg Latin America Renewable Energy Investment Co. SARL Company Guar. Notes 4.65% due 10/30/2023.................... 200,000 211,848 ---------- 546,672 ---------- Electric-Integrated -- 0.4% EDP Finance BV Senior Notes 2.00% due 04/22/2025.................... EUR 335,000 398,774 Gas Natural Fenosa Finance BV Company Guar. Notes 1.38% due 01/21/2025.................... EUR 200,000 232,876 Iberdrola Finanzas SA Company Guar. Notes 1.00% due 03/07/2025.................... EUR 300,000 343,666 Perusahaan Listrik Negara PT Senior Notes 4.88% due 07/17/2049*................... 200,000 217,224 ---------- 1,192,540 ---------- Electronic Components-Semiconductors -- 0.0% NXP BV/NXP Funding LLC/NXP USA, Inc. Company Guar. Notes 4.30% due 06/18/2029*................... 132,000 141,015 ---------- Finance-Commercial -- 0.1% Unifin Financiera SAB de CV SOFOM ENR Company Guar. Notes 7.25% due 09/27/2023.................... 200,000 206,650 ---------- Finance-Leasing Companies -- 0.2% Avolon Holdings Funding, Ltd. Company Guar. Notes 5.13% due 10/01/2023*................... 425,000 450,925 ICBCIL Finance Co., Ltd. Senior Notes 3.63% due 11/15/2027.................... 200,000 205,373 ---------- 656,298 ---------- Food-Meat Products -- 0.2% JBS USA LUX SA/JBS USA Finance, Inc. Company Guar. Notes 5.88% due 07/15/2024*................... 557,000 573,738 ----------
34 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) FOREIGN CORPORATE BONDS & NOTES (continued) Insurance-Life/Health -- 0.1% Athene Holding, Ltd. Senior Notes 4.13% due 01/12/2028........................ $ 109,000 $ 112,068 Manulife Financial Corp. Sub. Notes 4.06% due 02/24/2032........................ 65,000 67,677 ---------- 179,745 ---------- Insurance-Property/Casualty -- 0.1% Enstar Group, Ltd. Senior Notes 4.95% due 06/01/2029........................ 215,000 226,987 ---------- Machinery-Farming -- 0.1% CNH Industrial Finance Europe SA Company Guar. Notes 1.88% due 01/19/2026........................ EUR 185,000 212,975 CNH Industrial NV Senior Notes 4.50% due 08/15/2023........................ 96,000 101,723 ---------- 314,698 ---------- Medical Instruments -- 0.1% Medtronic Global Holdings SCA Company Guar. Notes 1.75% due 07/02/2049........................ EUR 135,000 154,402 Medtronic Global Holdings SCA Company Guar. Notes 2.25% due 03/07/2039........................ EUR 125,000 162,602 ---------- 317,004 ---------- Medical-Drugs -- 0.6% Bausch Health Cos., Inc. Company Guar. Notes 6.13% due 04/15/2025*....................... 990,000 1,025,887 GlaxoSmithKline Capital PLC Company Guar. Notes 3.13% due 05/14/2021........................ 132,000 134,616 Novartis Finance SA Company Guar. Notes 1.63% due 11/09/2026........................ EUR 350,000 424,573 Shire Acquisitions Investments Ireland DAC Company Guar. Notes 3.20% due 09/23/2026........................ 224,000 231,123 ---------- 1,816,199 ---------- Metal-Copper -- 0.2% First Quantum Minerals, Ltd. Company Guar. Notes 6.50% due 03/01/2024*....................... 331,000 315,691 First Quantum Minerals, Ltd. Company Guar. Notes 7.25% due 04/01/2023*....................... 257,000 253,145 ---------- 568,836 ---------- Metal-Diversified -- 0.1% Chinalco Capital Holdings, Ltd. Company Guar. Notes 4.25% due 04/21/2022........................ 250,000 252,411
Principal Value Security Description Amount(17) (Note 2) Metal-Diversified (continued) Glencore Finance Europe, Ltd. Company Guar. Notes 1.50% due 10/15/2026.............. EUR 125,000 $ 140,069 ---------- 392,480 ---------- Metal-Iron -- 0.1% Mineral Resources, Ltd. Senior Notes 8.13% due 05/01/2027*............. 400,000 411,720 ---------- Non-Ferrous Metals -- 0.1% Codelco, Inc. Senior Notes 3.70% due 01/30/2050*............. 247,000 245,600 ---------- Oil Companies-Exploration & Production -- 0.3% Canadian Natural Resources, Ltd. Senior Notes 3.90% due 02/01/2025.............. 116,000 122,261 MEG Energy Corp. Sec. Notes 6.50% due 01/15/2025*............. 462,000 471,240 Saka Energi Indonesia PT Senior Notes 4.45% due 05/05/2024.............. 425,000 427,021 ---------- 1,020,522 ---------- Oil Companies-Integrated -- 0.8% BP Capital Markets PLC Company Guar. Notes 2.27% due 07/03/2026.............. GBP 200,000 261,322 BP Capital Markets PLC Company Guar. Notes 2.97% due 02/27/2026.............. EUR 125,000 159,738 BP Capital Markets PLC Company Guar. Notes 3.51% due 03/17/2025.............. 314,000 333,203 Cenovus Energy, Inc. Senior Notes 4.25% due 04/15/2027.............. 117,000 121,643 Ecopetrol SA Senior Notes 5.88% due 05/28/2045.............. 270,000 314,890 Petro-Canada Senior Notes 5.95% due 05/15/2035.............. 51,000 65,289 Petrobras Global Finance BV Company Guar. Notes 6.75% due 01/27/2041.............. 280,000 320,743 Petroleos Mexicanos Company Guar. Notes 6.63% due 06/15/2035.............. 350,000 342,037 Petroleos Mexicanos Company Guar. Notes 6.75% due 09/21/2047.............. 300,000 287,940 Petroleos Mexicanos Company Guar. Notes 7.69% due 01/23/2050*............. 105,000 109,463
35 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) FOREIGN CORPORATE BONDS & NOTES (continued) Oil Companies-Integrated (continued) Total Capital International SA Company Guar. Notes 3.46% due 07/12/2049.................... $ 129,000 $ 135,979 ---------- 2,452,247 ---------- Paper & Related Products -- 0.1% Cascades, Inc. Company Guar. Notes 5.50% due 07/15/2022*................... 67,000 67,838 Cascades, Inc. Company Guar. Notes 5.75% due 07/15/2023*................... 384,000 388,800 ---------- 456,638 ---------- Real Estate Operations & Development -- 0.1% Aroundtown SA Senior Notes 1.45% due 07/09/2028.................... EUR 200,000 222,332 ---------- Retail-Petroleum Products -- 0.1% eG Global Finance PLC Senior Sec. Notes 6.75% due 02/07/2025*................... 433,000 422,716 ---------- Satellite Telecom -- 0.3% Intelsat Jackson Holdings SA Company Guar. Notes 5.50% due 08/01/2023.................... 526,000 490,705 Telesat Canada/Telesat LLC Senior Notes 6.50% due 10/15/2027*................... 187,000 190,039 Telesat Canada/Telesat LLC Company Guar. Notes 8.88% due 11/15/2024*................... 368,000 394,312 ---------- 1,075,056 ---------- Security Services -- 0.2% Garda World Security Corp. Senior Notes 8.75% due 05/15/2025*................... 535,000 549,499 ---------- Special Purpose Entity -- 0.0% Hellas Telecommunications Luxembourg II SCA Sub. Notes 8.46% due 01/15/2015*+(4)(5)(6)......... 1,330,000 0 ---------- SupraNational Banks -- 0.0% International Bank for Reconstruction & Development Senior Notes 3.13% due 11/20/2025.................... 114,000 123,589 ---------- Telephone-Integrated -- 0.2% Orange SA Senior Notes 1.88% due 09/12/2030.................... EUR 200,000 247,508 Telecom Italia Capital SA Company Guar. Notes 7.72% due 06/04/2038.................... 74,000 89,540
Principal Value Security Description Amount(17) (Note 2) Telephone-Integrated (continued) Telefonica Emisiones SA Company Guar. Notes 5.45% due 10/08/2029............... GBP 100,000 $ 159,972 Telefonica Emisiones SAU Company Guar. Notes 4.67% due 03/06/2038............... 260,000 285,200 ----------- 782,220 ----------- Transport-Marine -- 0.1% PT Pelabuhan Indonesia II Senior Notes 4.25% due 05/05/2025*.............. 300,000 316,875 ----------- Transport-Rail -- 0.2% Canadian National Railway Co. Senior Notes 2.85% due 12/15/2021............... 56,000 56,774 Canadian Pacific Railway Co. Senior Notes 6.13% due 09/15/2115............... 110,000 164,433 Kazakhstan Temir Zholy Finance BV Company Guar. Notes 6.95% due 07/10/2042............... 300,000 401,583 ----------- 622,790 ----------- Total Foreign Corporate Bonds & Notes (cost $36,495,782)................. 35,808,929 ----------- FOREIGN GOVERNMENT OBLIGATIONS -- 8.3% Sovereign -- 8.3% Arab Republic of Egypt Senior Notes 7.60% due 03/01/2029............... 750,000 793,620 Arab Republic of Egypt Senior Notes 8.50% due 01/31/2047............... 500,000 528,852 Dominican Republic Senior Bonds 6.85% due 01/27/2045............... 650,000 723,937 Emirate of Abu Dhabi 2.50% due 09/30/2029*.............. 250,000 248,245 Emirate of Abu Dhabi Senior Notes 3.13% due 10/11/2027............... 750,000 787,494 Federal Republic of Nigeria Senior Notes 6.50% due 11/28/2027............... 250,000 252,670 Federal Republic of Nigeria Senior Notes 7.70% due 02/23/2038............... 260,000 264,404 Federative Republic of Brazil Senior Notes 5.63% due 01/07/2041............... 400,000 447,504 Gabones Republic Senior Notes 6.95% due 06/16/2025............... 270,000 268,450 Government of Mongolia Senior Notes 5.13% due 12/05/2022............... 320,000 319,213
36 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) FOREIGN GOVERNMENT OBLIGATIONS (continued) Sovereign (continued) Government of Mongolia Senior Notes 5.63% due 05/01/2023.......... $300,000 $302,998 Government of Ukraine Senior Notes 7.75% due 09/01/2023.......... 300,000 315,187 Government of Ukraine Senior Notes 7.75% due 09/01/2024.......... 250,000 263,750 Government of Ukraine Senior Notes 9.75% due 11/01/2028.......... 600,000 687,024 Kingdom of Bahrain Senior Notes 7.00% due 10/12/2028.......... 420,000 470,901 Kingdom of Bahrain Senior Notes 7.50% due 09/20/2047.......... 300,000 340,800 Kingdom of Saudi Arabia Senior Notes 5.00% due 04/17/2049.......... 280,000 336,778 Oriental Republic of Uruguay Senior Notes 5.10% due 06/18/2050.......... 300,000 357,003 Republic of Angola Senior Notes 9.38% due 05/08/2048.......... 200,000 210,789 Republic of Argentina Senior Notes 8.28% due 12/31/2033.......... 280,408 137,400 Republic of Colombia Senior Notes 3.88% due 04/25/2027.......... 250,000 265,128 Republic of Colombia Senior Notes 5.00% due 06/15/2045.......... 230,000 269,100 Republic of Colombia Senior Notes 10.38% due 01/28/2033......... 320,000 512,000 Republic of Ecuador Senior Notes 7.88% due 01/23/2028.......... 700,000 663,257 Republic of Ecuador Senior Notes 10.75% due 03/28/2022......... 430,000 468,163 Republic of El Salvador Senior Notes 6.38% due 01/18/2027.......... 500,000 518,755 Republic of Ghana Senior Notes 8.13% due 03/26/2032.......... 260,000 260,882 Republic of Ghana Senior Notes 8.95% due 03/26/2051.......... 200,000 200,247
Principal Value Security Description Amount(17) (Note 2) Sovereign (continued) Republic of Ghana Government Guar. Notes 10.75% due 10/14/2030.... $ 270,000 $342,268 Republic of Guatemala Senior Notes 4.88% due 02/13/2028..... 510,000 538,693 Republic of Guatemala Senior Notes 4.90% due 06/01/2030*.... 200,000 211,320 Republic of Honduras Senior Notes 6.25% due 01/19/2027..... 610,000 659,569 Republic of Hungary Senior Notes 7.63% due 03/29/2041..... 220,000 365,222 Republic of Indonesia Senior Notes 3.70% due 01/08/2022..... 300,000 308,151 Republic of Indonesia Senior Notes 4.35% due 01/08/2027..... 200,000 216,920 Republic of Italy Bonds 1.75% due 07/01/2024..... EUR 275,000 321,437 Republic of Italy Bonds 3.00% due 08/01/2029..... EUR 110,000 144,499 Republic of Italy Bonds 4.75% due 09/01/2044*.... EUR 130,000 225,394 Republic of Ivory Coast Senior Notes 5.75% due 12/31/2032..... 756,800 742,292 Republic of Ivory Coast Senior Notes 6.13% due 06/15/2033*.... 300,000 288,779 Republic of Kazakhstan Senior Notes 6.50% due 07/21/2045..... 250,000 363,245 Republic of Kenya Senior Notes 6.88% due 06/24/2024..... 300,000 316,322 Republic of Kenya Senior Notes 7.00% due 05/22/2027..... 250,000 259,375 Republic of Kenya Senior Notes 8.25% due 02/28/2048..... 260,000 265,310 Republic of Lebanon Senior Notes 6.65% due 02/26/2030..... 300,000 194,262 Republic of Lebanon Senior Notes 6.85% due 03/23/2027..... 370,000 239,116 Republic of Lebanon Senior Notes 8.25% due 04/12/2021..... 310,000 263,500
37 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) FOREIGN GOVERNMENT OBLIGATIONS (continued) Sovereign (continued) Republic of Panama Senior Notes 3.87% due 07/23/2060.......... $ 300,000 $324,302 Republic of Panama Senior Notes 4.50% due 05/15/2047.......... 300,000 356,253 Republic of Panama Senior Notes 6.70% due 01/26/2036.......... 270,000 384,078 Republic of Peru Senior Notes 5.63% due 11/18/2050.......... 175,000 256,377 Republic of South Africa Senior Bonds 4.88% due 04/14/2026.......... 400,000 412,968 Republic of South Africa Senior Notes 5.75% due 09/30/2049.......... 530,000 527,304 Republic of Sri Lanka Senior Notes 7.55% due 03/28/2030*......... 850,000 838,024 Republic of the Philippines Senior Notes 7.75% due 01/14/2031.......... 360,000 541,015 Republic of Turkey Senior Notes 6.35% due 08/10/2024.......... 600,000 610,680 Republic of Turkey Senior Notes 6.63% due 02/17/2045.......... 200,000 191,399 Russian Federation Senior Notes 4.38% due 03/21/2029*......... 600,000 641,768 Russian Federation Senior Notes 5.25% due 06/23/2047.......... 200,000 237,483 State of Kuwait Senior Notes 2.75% due 03/20/2022.......... 670,000 678,375 State of Qatar Senior Notes 4.50% due 04/23/2028.......... 570,000 649,459 State of Qatar Senior Notes 5.10% due 04/23/2048.......... 400,000 511,000 United Kingdom Gilt Treasury Bonds 4.50% due 09/07/2034.......... GBP 100,000 188,763 United Mexican States Senior Notes 4.60% due 02/10/2048.......... 350,000 374,066 United Mexican States Senior Bonds 4.75% due 03/08/2044.......... 210,000 227,325
Principal Value Security Description Amount(17) (Note 2) Sovereign (continued) United Mexican States Senior Notes 5.55% due 01/21/2045.................... $ 600,000 $ 724,200 ----------- Total Foreign Government Obligations (cost $25,985,832)...................... 26,155,064 ----------- U.S. GOVERNMENT AGENCIES -- 27.9% Federal Home Loan Mtg. Corp. -- 6.4% 2.50% due 01/01/2028.................... 173,667 176,017 2.50% due 04/01/2028.................... 54,173 54,906 2.50% due 03/01/2031.................... 96,674 97,658 2.50% due 11/01/2032.................... 703,475 714,339 3.00% due 07/01/2045.................... 1,899,303 1,946,408 3.00% due 10/01/2045.................... 654,806 671,023 3.00% due 11/01/2046.................... 2,698,387 2,770,472 3.00% due 08/01/2049.................... 1,488,688 1,511,384 3.50% due 03/01/2042.................... 253,572 266,506 3.50% due 04/01/2042.................... 276,416 290,262 3.50% due 09/01/2043.................... 210,788 219,839 3.50% due 07/01/2045.................... 2,507,491 2,615,086 3.50% due 11/01/2047.................... 1,408,956 1,454,632 3.50% due 03/01/2048.................... 3,469,633 3,632,803 3.50% due 08/01/2049.................... 1,235,725 1,268,894 4.00% due 01/01/2046.................... 278,186 294,610 4.50% due 02/01/2020.................... 153 157 4.50% due 08/01/2020.................... 1,488 1,533 4.50% due 03/01/2039.................... 1,173,593 1,276,456 4.50% due 12/01/2039.................... 4,941 5,334 5.00% due 02/01/2034.................... 15,985 17,662 5.00% due 05/01/2034.................... 24,217 26,724 5.00% due 11/01/2043.................... 167,870 185,447 5.50% due 05/01/2037.................... 38,715 43,627 6.00% due 03/01/2040.................... 30,678 35,327 6.50% due 02/01/2035.................... 6,295 7,025 Federal Home Loan Mtg. Corp. FRS 4.02% (6 ML+1.49%) due 02/01/2037.......................... 7,666 7,923 4.80% (12 ML+1.88%) due 11/01/2037.......................... 67,589 71,523 Federal Home Loan Mtg. Corp. REMIC FRS Series 3572, Class JS 4.77% (6.80%-1 ML) due 09/15/2039(3)(7)(8)................. 278,965 38,479 Federal Home Loan Mtg. Corp. REMIC Series 4740, Class BA 3.00% due 09/15/2045(3)................. 235,548 242,219 ----------- 19,944,275 ----------- Federal National Mtg. Assoc. -- 20.2% 2.50% due 12/01/2026.................... 365,299 368,908 2.50% due 08/01/2031.................... 1,579,045 1,594,295 2.50% due 02/01/2032.................... 648,939 656,522 3.00% due 10/01/2027.................... 147,296 151,096 3.00% due 03/01/2030.................... 971,925 1,001,673 3.00% due 10/01/2030.................... 155,157 159,245 3.00% due 02/01/2033.................... 1,557,562 1,595,894 3.00% due 12/01/2042.................... 103,722 106,883 3.00% due 08/01/2046.................... 3,625,178 3,719,983
38 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) U.S. GOVERNMENT AGENCIES (continued) Federal National Mtg. Assoc. (continued) 3.00% due 04/01/2047............. $1,821,490 $1,865,348 3.00% due 09/01/2048............. 2,043,481 2,092,888 3.50% due 08/01/2026............. 60,210 62,248 3.50% due 08/01/2027............. 49,224 50,903 3.50% due 10/01/2028............. 25,558 26,702 3.50% due 03/01/2033............. 1,530,169 1,582,764 3.50% due 08/01/2033............. 795,574 822,333 3.50% due 02/01/2043............. 104,158 110,374 3.50% due 10/01/2045............. 229,730 241,593 3.50% due 11/01/2045............. 181,118 188,938 3.50% due 03/01/2046............. 2,183,722 2,270,645 3.50% due 07/01/2046............. 129,809 135,836 3.50% due 12/01/2047............. 7,447,598 7,753,244 3.50% due 04/01/2048............. 4,001,140 4,146,185 3.50% due 05/01/2049............. 1,668,723 1,713,474 4.00% due 11/01/2025............. 86,360 89,949 4.00% due 03/01/2039............. 1,497,043 1,565,863 4.00% due 10/01/2043............. 268,726 287,729 4.00% due 02/01/2045............. 1,368,568 1,461,223 4.00% due 05/01/2047............. 540,210 566,396 4.00% due 07/01/2047............. 2,367,742 2,473,261 4.00% due 08/01/2047............. 2,492,645 2,610,987 4.00% due 06/01/2048............. 889,353 938,263 4.00% due 07/01/2048............. 1,368,082 1,420,406 4.00% due 09/01/2048............. 913,606 955,777 4.00% due 10/01/2048............. 4,827,146 5,022,699 4.00% due 11/01/2048............. 835,235 868,184 4.00% due 01/01/2049............. 1,861,645 1,938,407 4.00% due 03/01/2049............. 1,273,856 1,320,144 4.50% due 11/01/2022............. 8,600 8,864 4.50% due 06/01/2023............. 8,194 8,528 4.50% due 08/01/2045............. 1,459,613 1,603,717 4.50% due 06/01/2048............. 281,086 296,746 4.50% due 10/01/2048............. 77,905 81,992 4.50% due 11/01/2048............. 1,635,069 1,725,255 4.50% due 12/01/2048............. 2,291,746 2,412,332 4.50% due 03/01/2049............. 2,009,323 2,123,998 5.00% due 01/01/2023............. 3,757 3,883 5.00% due 03/01/2034............. 16,179 17,857 5.00% due 05/01/2035............. 9,118 10,063 5.00% due 05/01/2040............. 60,966 67,304 5.50% due 06/01/2038............. 19,489 21,981 6.00% due 02/01/2032............. 4,298 4,751 6.00% due 05/01/2034............. 1,223 1,406 6.00% due 10/01/2034............. 17,154 18,986 7.50% due 01/01/2030............. 938 951 8.00% due 11/01/2028............. 2,149 2,340 Federal National Mtg. Assoc. FRS 4.02% (6 ML+1.54%) due 09/01/2035................... 50,903 52,666 4.42% (12 ML+1.57%) due 05/01/2037................... 13,085 13,677 4.55% (12 ML+1.82%) due 10/01/2040................... 14,214 14,949 4.55% (12 ML+1.66%) due 07/01/2039................... 43,101 45,146
Principal Value Security Description Amount(17) (Note 2) Federal National Mtg. Assoc. (continued) 4.58% (1 Yr USTYCR+2.21%) due 10/01/2035........................ $ 47,386 $ 50,017 4.67% (12 ML+1.83%) due 10/01/2040........................ 25,175 26,346 4.69% (12 ML+1.91%) due 08/01/2035........................ 42,062 44,424 4.69% (1 Yr USTYCR+2.26%) due 11/01/2036........................ 23,320 24,655 4.71% (12 ML+1.76%) due 05/01/2040........................ 52,749 55,575 Federal National Mtg. Assoc. REMIC Series 2018-27, Class EA 3.00% due 05/25/2048(3)............... 349,342 359,161 Series 2018-35, Class CD 3.00% due 05/25/2048(3)............... 367,763 373,982 ----------- 63,408,814 ----------- Government National Mtg. Assoc. -- 1.3% 3.00% due 05/20/2046.................. 1,981,051 2,039,025 4.50% due 10/20/2045.................. 1,242,803 1,327,347 4.50% due 04/20/2047.................. 763,913 803,984 ----------- 4,170,356 ----------- Total U.S. Government Agencies (cost $85,784,599).................... 87,523,445 ----------- U.S. GOVERNMENT TREASURIES -- 2.3% United States Treasury Bonds -- 1.0% 2.88% due 05/15/2049.................. 2,528,000 2,948,379 3.00% due 02/15/2049.................. 240,000 286,153 ----------- 3,234,532 ----------- United States Treasury Notes -- 1.3% 1.63% due 08/15/2029.................. 1,251,000 1,245,234 1.75% due 07/31/2021.................. 355,000 355,499 2.50% due 05/31/2020.................. 1,000,000 1,004,023 2.50% due 01/31/2024.................. 250,000 259,678 2.88% due 10/31/2020.................. 1,000,000 1,011,250 ----------- 3,875,684 ----------- Total U.S. Government Treasuries (cost $6,893,030)..................... 7,110,216 ----------- LOANS(9)(10)(11) -- 4.7% Applications Software -- 0.1% Corel Corp. FRS BTL 7.09% (2 ML+5.00%) due 07/02/2026........................ 114,673 110,803 Project Boost Purchaser LLC FRS BTL-B coupon TBD due 06/01/2026........................ 70,721 70,191 ----------- 180,994 ----------- Athletic Equipment -- 0.1% Varsity Brands Holding Co., Inc. FRS 1st Lien 5.54% (1 ML+3.50%) due 12/15/2024........................ 145,630 139,259 -----------
39 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) LOANS(9)(10)(11) (continued) Auction Houses/Art Dealers -- 0.0% BidFair MergeRight, Inc. FRS BTL-B coupon TBD due 01/23/2027......................... $ 97,177 $ 96,084 -------- Auto Repair Centers -- 0.1% Mavis Tire Express Services Corp. FRS Delayed Draw 5.29% (1 ML+3.25%) due 03/20/2025(14)..................... 12,333 12,025 Mavis Tire Express Services Corp. FRS Delayed Draw 5.29% (1 ML+3.25%) due 03/20/2025......................... 3,582 3,492 Mavis Tire Express Services Corp. FRS 1st Lien 5.29% (1 ML+3.25%) due 03/20/2025......................... 125,123 121,995 Wand NewCo 3, Inc. FRS 1st Lien 5.54% (1 ML+3.50%) due 02/05/2026......................... 102,778 103,228 -------- 240,740 -------- Broadcast Services/Program -- 0.0% NEP Group, Inc. FRS BTL 5.29% (1 ML+3.25%) due 10/20/2025......................... 138,950 136,084 -------- Building & Construction-Misc. -- 0.0% Verra Mobility Corp. FRS 1st Lien 5.79% (1 ML+3.75%) due 02/28/2025......................... 133,800 134,246 -------- Building Products-Air & Heating -- 0.1% API Heat Transfer ThermaSys Corp. FRS 1st Lien 8.10% (3 ML+6.00%) due 12/31/2023......................... 159,375 143,438 -------- Building Products-Doors & Windows -- 0.0% CHI Doors Holdings Corp. FRS 1st Lien 5.29% (1 ML+3.25%) due 07/29/2022......................... 137,818 137,732 -------- Building-Heavy Construction -- 0.0% USIC Holdings, Inc. FRS BTL coupon TBD due 12/08/2023......................... 106,735 105,845 -------- Cable/Satellite TV -- 0.1% CSC Holdings LLC FRS BTL-B 4.28% (1 ML+2.25%) due 07/17/2025......................... 124,364 124,115
Principal Value Security Description Amount(17) (Note 2) Cable/Satellite TV (continued) CSC Holdings LLC FRS BTL-B 4.53% (1 ML+2.50%) due 01/25/2026..................... $152,070 $152,102 -------- 276,217 -------- Casino Hotels -- 0.1% Caesars Resort Collection LLC FRS BTL-B 4.79% (1 ML+2.75%) due 12/23/2024..................... 138,939 137,997 CityCenter Holdings LLC FRS BTL-B 4.29% (1 ML+2.25%) due 04/18/2024..................... 139,926 140,151 -------- 278,148 -------- Casino Services -- 0.0% Stars Group Holdings FRS BTL 5.60% (3 ML+3.50%) due 07/10/2025..................... 122,564 122,946 -------- Cellular Telecom -- 0.1% Altice France SA FRS BTL-B13 6.03% (1 ML+4.00%) due 08/14/2026..................... 173,688 172,928 Numericable Group SA FRS BTL-B 5.72% (1 ML+3.69%) due 01/31/2026..................... 38,000 37,667 Sprint Communications, Inc. FRS BTL-B 5.06% (1 ML+3.00%) due 02/02/2024..................... 136,818 136,419 -------- 347,014 -------- Chemicals-Diversified -- 0.1% Hexion, Inc. FRS BTL 5.82% (3 ML+3.50%) due 07/01/2026..................... 140,647 140,295 -------- Chemicals-Specialty -- 0.1% LTI Holdings, Inc. FRS 1st Lien 5.54% (1 ML+3.50%) due 09/06/2025..................... 47,835 45,164 LTI Holdings, Inc. FRS 2nd Lien 8.79% (1 ML+6.75%) due 09/06/2026..................... 51,322 45,035 Starfruit US HoldCo. LLC FRS BTL-B 5.29% (1 ML+3.25%) due 10/01/2025..................... 139,797 136,695 -------- 226,894 --------
40 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) LOANS(9)(10)(11) (continued) Commercial Services-Finance -- 0.1% Financial & Risk US Holdings, Inc. FRS BTL 5.79% (1 ML+3.75%) due 10/01/2025.......................... $136,629 $137,355 MoneyGram International, Inc. FRS BTL 8.04% (1 ML+6.00%) due 06/30/2023.......................... 110,611 105,840 -------- 243,195 -------- Computer Data Security -- 0.0% McAfee LLC FRS BTL-B1 5.79% (1 ML+3.75%) due 09/30/2024.......................... 133,985 134,200 -------- Computer Services -- 0.0% Tempo Acquisition LLC FRS BTL-B 5.04% (1 ML+3.00%) due 05/01/2024.......................... 136,949 137,326 -------- Computer Software -- 0.1% Rackspace Hosting, Inc. FRS 1st Lien 5.29% (3 ML+3.00%) due 11/03/2023.......................... 152,325 139,377 Vertafore, Inc. FRS 1st Lien 5.29% (1 ML+3.25%) due 07/02/2025.......................... 69,475 67,460 Vertafore, Inc. FRS 2nd Lien 9.29% (1 ML+7.25%) due 07/02/2026.......................... 72,934 71,566 -------- 278,403 -------- Consulting Services -- 0.1% AlixPartners LLP FRS BTL 4.79% (1 ML+2.75%) due 04/04/2024.......................... 137,939 137,988 Stiphout Finance LLC FRS 1st Lien 5.04% (1 ML+3.00%) due 10/26/2022.......................... 84 81 -------- 138,069 -------- Containers-Metal/Glass -- 0.0% BWAY Corp. FRS BTL 5.59% (3 ML+3.25%) due 04/03/2024.......................... 139,926 136,895 -------- Containers-Paper/Plastic -- 0.0% Charter NEX US, Inc. FRS 1st Lien 5.05% (1 ML+3.00%) due 05/16/2024.......................... 99,239 97,977 --------
Principal Value Security Description Amount(17) (Note 2) Cosmetics & Toiletries -- 0.1% Sunshine Luxembourg VII SARL FRS BTL coupon TBD due 10/01/2026.......................... $ 141,275 $141,804 -------- Data Processing/Management -- 0.0% CCC Information Services, Inc. FRS 1st Lien 4.80% (1 ML+2.75%) due 04/29/2024.......................... 137,942 137,277 -------- Disposable Medical Products -- 0.2% Sotera Health Holdings LLC FRS BTL 5.04% (1 ML+3.00%) due 05/15/2022.......................... 548,413 540,530 -------- Distribution/Wholesale -- 0.1% Fastlane Parent Co., Inc. FRS 1st Lien 6.60% (3 ML+4.50%) due 02/04/2026.......................... 106,732 103,530 Univar USA, Inc. FRS BTL-B3 4.29% (1 ML+2.25%) due 07/01/2024.......................... 139,109 139,407 -------- 242,937 -------- Diversified Operations -- 0.0% Travelport Finance Luxembourg SARL FRS BTL 7.10% (3 ML+5.00%) due 05/29/2026.......................... 149,796 135,097 -------- E-Commerce/Services -- 0.0% RentPath LLC FRS 2nd Lien 11.05% (1 ML+9.00%) due 12/17/2022.......................... 1,062,906 118,692 -------- Electric-Generation -- 0.0% Vistra Operations Co. LLC FRS BTL 4.04% (1 ML+2.00%) due 08/04/2023.......................... 71,302 71,525 -------- Electronic Components-Misc. -- 0.0% AI Ladder Luxembourg Subco SARL FRS BTL 6.60% (3 ML+4.50%) due 07/09/2025.......................... 135,069 123,630 -------- Electronic Components-Semiconductors -- 0.0% Bright Bidco BV FRS BTL-B 5.54% (1 ML+3.50%) due 06/30/2024.......................... 58,674 27,493 Bright Bidco BV FRS BTL-B 5.60% (3 ML+3.50%) due 06/30/2024.......................... 121,066 56,728 -------- 84,221 --------
41 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) LOANS(9)(10)(11) (continued) Enterprise Software/Service -- 0.4% Almonde, Inc. FRS 1st Lien 5.70% (2 ML+3.50%) due 06/13/2024..................... $ 19,232 $ 18,686 Almonde, Inc. FRS 1st Lien 5.70% (6 ML+3.50%) due 06/13/2024..................... 124,609 121,071 Applied Systems, Inc. FRS 1st Lien 5.10% (3 ML+3.00%) due 09/19/2024..................... 133,975 133,759 Digicert Holdings, Inc. FRS BTL-B coupon TBD due 08/31/2026..................... 105,596 105,288 Epicor Software Corp. FRS 1st Lien 5.30% (1 ML+3.25%) due 06/01/2022..................... 134,352 134,325 Greeneden US Holdings II LLC FRS BTL 5.29% (1 ML+3.25%) due 12/01/2023..................... 138,938 138,001 Informatica LLC FRS BTL 5.29% (1 ML+3.25%) due 08/05/2022..................... 138,936 139,501 Kronos, Inc. FRS 1st Lien 5.25% (3 ML+3.00%) due 11/01/2023..................... 140,000 140,262 MYOB US Borrower LLC FRS BTL 6.04% (1 ML+4.00%) due 05/06/2026..................... 103,843 104,103 Sophia LP FRS BTL-B 5.35% (3 ML+3.25%) due 09/30/2022..................... 135,117 135,032 Ultimate Software Group, Inc. FRS 1st Lien 5.79% (1 ML+3.75%) due 05/04/2026..................... 103,512 103,978 ---------- 1,274,006 ---------- Finance-Credit Card -- 0.0% Pi US Mergerco, Inc. FRS 1st Lien 5.29% (1 ML+3.25%) due 01/03/2025..................... 136,937 136,038 ---------- Finance-Investment Banker/Broker -- 0.0% Deerfield Dakota Holding LLC FRS BTL-B 5.29% (1 ML+3.25%) due 02/13/2025..................... 138,255 135,432 ----------
Principal Value Security Description Amount(17) (Note 2) Gambling (Non-Hotel) -- 0.1% Mohegan Tribal Gaming Authority FRS BTL-B 6.04% (1 ML+4.00%) due 10/13/2023................................. $151,871 $140,101 Scientific Games International, Inc. FRS BTL-B5 4.79% (1 ML+2.75%) due 08/14/2024................................. 27,750 27,488 Scientific Games International, Inc. FRS BTL-B5 4.90% (2 ML+2.75%) due 08/14/2024................................. 114,883 113,796 -------- 281,385 -------- Hazardous Waste Disposal -- 0.1% GFL Environmental, Inc. FRS BTL 5.04% (1 ML+3.00%) due 05/30/2025................................. 140,930 139,556 -------- Health Care Providers & Services -- 0.1% HC Group Holdings II, Inc. FRS BTL-B 6.54% (1 ML+4.50%) due 08/06/2026................................. 140,774 140,598 -------- Human Resources -- 0.1% Team Health Holdings, Inc. FRS 1st Lien 4.79% (1 ML+2.75%) due 02/06/2024................................. 272,359 223,789 -------- Insurance Brokers -- 0.1% Alliant Holdings Intermediate LLC FRS BTL-B1 5.05% (3 ML+3.00%) due 05/09/2025................................. 138,945 136,368 HUB International, Ltd. FRS BTL-B 5.27% (3 ML+3.00%) due 04/25/2025................................. 139,885 138,202 -------- 274,570 -------- Insurance-Property/Casualty -- 0.1% Asurion LLC FRS BTL-B6 5.04% (1 ML+3.00%) due 11/03/2023................................. 140,540 141,038 Asurion LLC FRS 2nd Lien 8.54% (1 ML+6.50%) due 08/04/2025................................. 7,101 7,210 Sedgwick Claims Management Services, Inc. FRS BTL 5.29% (1 ML+3.25%) due 12/31/2025................................. 118,802 116,812 -------- 265,060 --------
42 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) LOANS(9)(10)(11) (continued) Internet Financial Services -- 0.1% ION Trading Finance, Ltd. FRS BTL 6.06% (3 ML+4.00%) due 11/21/2024...................... $143,096 $138,088 -------- Machinery-Electrical -- 0.0% Brookfield WEC Holdings, Inc. FRS 1st Lien 5.54% (1 ML+3.50%) due 08/01/2025...................... 102,228 102,458 -------- Machinery-General Industrial -- 0.1% Shape Technologies Group, Inc. FRS BTL 5.26% (3 ML+3.00%) due 04/21/2025...................... 98,789 89,404 Welbilt, Inc. FRS BTL-B 4.54% (1 ML+2.50%) due 10/23/2025...................... 107,000 106,666 -------- 196,070 -------- Machinery-Pumps -- 0.0% STS Operating, Inc. FRS BTL 6.29% (1 ML+4.25%) due 12/11/2024...................... 137,766 134,494 -------- Medical Labs & Testing Services -- 0.1% Jaguar Holding Co. II FRS BTL coupon TBD due 08/18/2022...................... 141,630 141,736 -------- Medical-Drugs -- 0.1% Akorn, Inc. FRS BTL-B 9.04% (1 ML+6.25%) due 04/16/2021(18).................. 113,198 104,142 Alphabet Holding Co., Inc. FRS 1st Lien 5.54% (1 ML+3.50%) due 09/26/2024...................... 146,001 135,051 Bausch Health Americas, Inc. FRS BTL 4.79% (1 ML+2.75%) due 11/27/2025...................... 90,780 90,916 -------- 330,109 -------- Medical-Generic Drugs -- 0.1% Alvogen Pharma US, Inc. FRS BTL-B 6.79% (1 ML+4.75%) due 04/02/2022...................... 129,671 116,380 Amneal Pharmaceuticals LLC FRS BTL-B 5.56% (1 ML+3.50%) due 05/04/2025...................... 136,960 116,415 -------- 232,795 --------
Principal Value Security Description Amount(17) (Note 2) Medical-HMO -- 0.0% MPH Acquisition Holdings LLC FRS BTL-B 4.85% (3 ML+2.75%) due 06/07/2023.................................... $111,027 $105,476 -------- Medical-Hospitals -- 0.0% RegionalCare Hospital Partners Holdings, Inc. FRS BTL-B coupon TBD due 11/17/2025.................................... 106,731 106,764 -------- Metal Processors & Fabrication -- 0.1% Crosby US Acquisition Corp. FRS BTL-B 6.80% (1 ML+4.75%) due 06/26/2026.................................... 104,838 102,349 Form Technologies LLC FRS BTL 5.36% (3 ML+3.25%) due 01/28/2022.................................... 138,909 133,005 SEI Holdings I Corp. FRS 1st Lien 6.04% (1 ML+4.00%) due 03/27/2021.................................... 141,254 139,311 -------- 374,665 -------- Miscellaneous Manufacturing -- 0.0% Excelitas Technologies Corp. FRS 2nd Lien 9.83% (3 ML+7.50%) due 12/01/2025.................................... 105,000 105,000 -------- Multimedia -- 0.0% EW Scripps Co. FRS BTL-B1 4.79% (1 ML+2.75%) due 05/01/2026.................................... 103,616 103,616 -------- Oil Companies-Exploration & Production -- 0.1% Osum Production Corp. FRS BTL 11.60% (3 ML+9.50%) due 07/31/2022.................................... 150,723 138,665 -------- Pharmacy Services -- 0.0% Change Healthcare Holdings LLC FRS BTL coupon TBD due 03/01/2024.................................... 106,070 105,490 -------- Physicians Practice Management -- 0.1% Sound Inpatient Physicians, Inc. FRS 1st Lien 4.79% (1 ML+2.75%) due 06/27/2025.................................... 148,894 147,684 -------- Pipelines -- 0.1% Blackstone CQP Holdco LP FRS BTL-B 5.66% (3 ML+3.50%) due 09/30/2024.................................... 103,479 103,932
43 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount(17) (Note 2) LOANS(9)(10)(11) (continued) Pipelines (continued) Lucid Energy Group II Borrower LLC FRS 1st Lien 5.04% (1 ML+3.00%) due 02/17/2025.................................. $146,882 $137,946 Medallion Midland Acquisition LLC FRS BTL 5.29% (1 ML+3.25%) due 10/30/2024.................................. 135,416 131,241 -------- 373,119 -------- Publishing-Books -- 0.1% Houghton Mifflin Harcourt Publishers, Inc. FRS BTL 5.04% (1 ML+3.00%) due 05/31/2021.................................. 145,858 141,208 -------- Publishing-Periodicals -- 0.1% Meredith Corp. FRS BTL-B1 4.79% (1 ML+2.75%) due 01/31/2025.................................. 114,161 114,304 Nielsen Finance LLC FRS BTL-B4 4.04% (1 ML+2.00%) due 10/04/2023.................................. 141,638 141,536 -------- 255,840 -------- Quarrying -- 0.1% US Silica Co. FRS BTL-B 6.06% (1 ML+4.00%) due 05/01/2025.................................. 151,193 142,651 -------- Real Estate Management/Services -- 0.1% DTZ U. S. Borrower LLC FRS BTL-B 5.29% (1 ML+3.25%) due 08/21/2025.................................. 137,830 138,037 -------- Research & Development -- 0.0% PAREXEL International Corp. FRS BTL 4.79% (1 ML+2.75%) due 09/27/2024.................................. 129,110 122,429 -------- Resort/Theme Parks -- 0.0% SeaWorld Parks & Entertainment, Inc. FRS BTL-B5 5.04% (1 ML+3.00%) due 03/31/2024.................................. 136,878 136,621 -------- Retail-Petroleum Products -- 0.0% EG America LLC FRS BTL 6.10% (3 ML+4.00%) due 02/07/2025.................................. 137,216 135,458 -------- Retail-Restaurants -- 0.1% IRB Holding Corp. FRS BTL-B 5.55% (3 ML+3.25%) due 02/05/2025.................................. 138,942 138,218
Principal Value Security Description Amount(17) (Note 2) Retail-Restaurants (continued) Wok Holdings, Inc. FRS BTL 8.70% (6 ML+6.50%) due 03/01/2026............................ $110,722 $ 93,560 -------- 231,778 -------- Retail-Sporting Goods -- 0.0% Bass Pro Group LLC FRS BTL 7.04% (1 ML+5.00%) due 09/25/2024............................ 134,412 129,246 -------- Rubber/Plastic Products -- 0.0% Gates Global LLC FRS BTL-B2 4.79% (1 ML+2.75%) due 04/01/2024............................ 104,733 103,162 -------- Satellite Telecom -- 0.0% Intelsat Jackson Holdings SA FRS BTL-B3 5.80% (1 ML+3.75%) due 11/27/2023............................ 135,000 135,135 -------- Security Services -- 0.0% Prime Security Services Borrower, LLC FRS BTL-B1 5.21% (1 WL+3.25%) due 09/23/2026............................ 120,937 119,469 -------- Soap & Cleaning Preparation -- 0.1% Diamond BC BV FRS BTL 5.26% (3 ML+3.00%) due 09/06/2024............................ 155,302 147,731 -------- Software Tools -- 0.0% RP Crown Parent LLC FRS BTL 4.80% (3 ML+2.75%) due 10/12/2023............................ 105,728 105,675 -------- Telecom Services -- 0.1% Level 3 Parent LLC FRS BTL-B 4.29% (1 ML+2.25%) due 02/22/2024............................ 135,000 135,169 West Corp. FRS BTL-B1 5.54% (1 ML+3.50%) due 10/10/2024............................ 117,865 103,819 -------- 238,988 -------- Telecommunication Equipment -- 0.0% CommScope, Inc. FRS BTL-B 5.29% (1 ML+3.25%) due 04/06/2026............................ 70,565 70,241 CommScope, Inc. FRS BTL-B coupon TBD due 04/06/2026............................ 35,000 34,840 -------- 105,081 --------
44 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Shares/ Principal Value Security Description Amount(17) (Note 2) LOANS(9)(10)(11) (continued) Telephone-Integrated -- 0.0% CenturyLink, Inc. FRS BTL-B 4.79% (1 ML+2.75%) due 01/31/2025............................ $135,416 $ 134,373 ----------- Television -- 0.1% Ion Media Networks, Inc. FRS BTL-B1 5.06% (1 ML+3.00%) due 12/18/2024............................ 140,877 140,525 ----------- Theaters -- 0.3% AMC Entertainment Holdings, Inc. FRS BTL-B 5.23% (6 ML+3.00%) due 04/22/2026............................ 136,687 137,257 Cineworld, Ltd. FRS BTL 4.29% (1 ML+2.25%) due 02/28/2025............................ 140,400 139,487 William Morris Endeavor Entertainment LLC FRS BTL-B1 4.80% (1 ML+2.75%) due 05/18/2025............................ 571,603 554,812 ----------- 831,556 ----------- Transport-Truck -- 0.1% Pods LLC FRS 1st Lien 5.05% (1 ML+2.75%) due 12/06/2024............................ 150,793 150,416 ----------- Total Loans (cost $16,015,717)........................ 14,819,756 ----------- COMMON STOCKS -- 0.2% Building Products-Air & Heating -- 0.0% API Heat Transfer, Inc. +(12).............. 171,230 50,941 ----------- Television -- 0.2% ION Media Networks, Inc.+(4)(12)........... 655 505,988 ----------- Total Common Stocks (cost $56,512)............................ 556,929 ----------- PREFERRED SECURITIES -- 0.1% Building Products-Air & Heating -- 0.0% API Heat Transfer, Inc. Class A 8.63%(12)................................. 36,495 26,641 ----------- Electric-Distribution -- 0.1% Entergy Louisiana LLC 4.70%..................................... 5,200 133,016 ----------- Sovereign Agency -- 0.0% Federal Home Loan Mtg. Corp. Series Z 8.38%+.................................... 5,875 76,904 ----------- Total Preferred Securities (cost $257,205)........................... 236,561 -----------
Principal Value Security Description Amount(17) (Note 2) PREFERRED SECURITIES/CAPITAL SECURITIES -- 1.6% Banks-Money Center -- 0.2% BBVA Bancomer SA 5.13% due 01/18/2033*.............................. $ 201,000 $191,452 National Westminster Bank PLC FRS 1.80% (3 ME + 2.15%) due 01/05/2020(13)................................. EUR 300,000 323,097 -------- 514,549 -------- Banks-Super Regional -- 0.1% Wells Fargo Capital X 5.95% due 12/01/2086............................... 115,000 142,223 -------- Building & Construction-Misc. -- 0.1% China Minmetals Corp. 3.75% due 11/13/2022(13)........................... 335,000 334,935 -------- Diversified Banking Institutions -- 0.2% Bank of Nova Scotia 4.65% due 10/12/2022(13)........................... 223,000 221,383 HSBC Holdings PLC 6.00% due 05/22/2027(13)........................... 273,000 280,786 JPMorgan Chase & Co. Series U 6.13% due 04/30/2024(13)........................... 176,000 190,709 -------- 692,878 -------- Diversified Minerals -- 0.0% BHP Billiton Finance, Ltd. 5.63% due 10/22/2079............................... EUR 100,000 132,985 -------- Electric-Distribution -- 0.1% National Rural Utilities Cooperative Finance Corp. 4.75% due 04/30/2043............................... 278,000 283,162 -------- Electric-Generation -- 0.2% Electricite de France SA 4.13% due 01/22/2022(13)........................... EUR 300,000 348,674 Electricite de France SA 4.25% due 01/29/2020(13)........................... EUR 200,000 220,310 -------- 568,984 -------- Electric-Integrated -- 0.1% Dominion Resources, Inc. 5.75% due 10/01/2054............................... 91,000 96,563 Gas Natural Fenosa Finance BV 3.38% due 04/24/2024(13)........................... EUR 100,000 116,612 -------- 213,175 -------- Finance-Investment Banker/Broker -- 0.0% Lehman Brothers Holdings Capital Trust VII Escrow Security 0.00%+(4).......................................... 222,000 22 -------- Food-Dairy Products -- 0.1% Land O'Lakes Capital Trust I 7.45% due 03/15/2028*.............................. 367,000 394,525 -------- Gas-Distribution -- 0.1% Centrica PLC 3.00% due 04/10/2076............................... EUR 200,000 221,260 --------
45 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Amount/ Value Security Description Shares(17) (Note 2) PREFERRED SECURITIES/CAPITAL SECURITIES (continued) Insurance-Life/Health -- 0.1% Aviva PLC 6.13% due 07/05/2043....................... EUR 115,000 $ 146,532 Prudential Financial, Inc. 5.70% due 09/15/2048....................... $ 258,000 285,967 ------------ 432,499 ------------ Insurance-Multi-line -- 0.0% Voya Financial, Inc. 4.70% due 01/23/2048....................... 94,000 88,195 ------------ Medical-Drugs -- 0.1% Bayer AG 3.00% due 07/01/2075....................... EUR 200,000 220,410 ------------ Oil Companies-Integrated -- 0.1% TOTAL SA 2.71% due 05/05/2023(13)................... EUR 375,000 439,109 ------------ Pipelines -- 0.1% EnLink Midstream Partners LP 6.00% due 12/15/2022(13)................... 67,000 47,905 Enterprise Products Operating LLC 5.25% due 08/16/2077....................... 59,000 58,496 TransCanada Trust 5.30% due 03/15/2077....................... 109,000 108,455 TransCanada Trust 5.63% due 05/20/2075....................... 85,000 87,338 ------------ 302,194 ------------ Total Preferred Securities/Capital Securities (cost $4,956,709).......................... 4,981,105 ------------ Total Long-Term Investment Securities (cost $282,548,878)........................ 284,619,922 ------------ SHORT-TERM INVESTMENT SECURITIES -- 8.8% Registered Investment Companies -- 8.5% State Street Institutional U.S. Government Money Market Fund, Premier Class 1.88%(15).................................. 26,648,843 26,648,843 ------------ U.S. Government Treasuries -- 0.3% United States Treasury Bills 2.37% due 04/23/2020....................... $ 385,000 381,106 2.40% due 10/31/2019....................... 385,000 384,434 ------------ 765,540 ------------ Total Short-Term Investment Securities (cost $27,413,006)......................... 27,414,383 ------------ TOTAL INVESTMENTS (cost $309,961,884)(16).................... 99.6% 312,034,305 Other assets less liabilities................. 0.4 1,321,219 ------------- ------------ NET ASSETS 100.0% $313,355,524 ============= ============
-------- * Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. The Fund has no right to demand registration of these securities. At September 30, 2019, the aggregate value of these securities was $59,400,466 representing 19.0% of net assets. + Non-income producing security (1) Commercial Mortgage Backed Security (2) Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. (3) Collateralized Mortgage Obligation (4) Securities classified as Level 3 (see Note 2). (5) Company has filed for bankruptcy protection. (6) Security in default of interest and principal at maturity. (7) Interest Only (8) Inverse Floating Rate Security that pays interest that varies inversely to changes in the market interest rates. The interest rate shown is the current interest rate at September 30, 2019. (9) Senior loans in the Fund are generally subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a borrower to prepay, prepayments may occur. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. (10) The Fund invests in senior loans which generally pay interest at rates which are periodically re-determined by reference to a base lending rate plus a premium. These base lending rates are generally either the lending rate offered by one or more major European banks, such as the London Inter-Bank Offered Rate ("LIBOR") or the prime rate offered by one or more major United States banks, or the certificate of deposit rate. Senior loans are generally considered to be restrictive in that the Fund is ordinarily contractually obligated to receive approval from the Agent Bank and/or borrower prior to the disposition of a senior loan. (11) All loans in the Fund were purchased through assignment agreements unless otherwise indicated. (12) Denotes a restricted security that: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933, as amended (the "1933 Act"); (b) is subject to a contractual restriction on public sales; or (c) is otherwise subject to a restriction on sales by operation of applicable law. Restricted securities are valued pursuant to Note 2. Certain restricted securities held by the Fund may not be sold except in exempt transactions or in a public offering registered under the 1933 Act. The Fund has no right to demand registration of these securities. The risk of investing in certain restricted securities is greater than the risk of investing in the securities of widely held, publicly traded companies. To the extent applicable, lack of a secondary market and resale restrictions may result in the inability of a Fund to sell a security at a fair price and may substantially delay the sale of the security. In addition, certain restricted securities may exhibit greater price volatility 46 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued) ++than securities for which secondary markets exist. As of September 30, 2019, the Fund held the following restricted securities:
Value % of Acquisition Acquisition Per Net Description Date Shares Cost Value Share Assets ----------- ----------- ------- ----------- -------- ------- ------ Common Stocks API Heat Transfer, Inc................. 12/31/2018 171,230 56,506 $ 50,941 $ 0.30 0.02% ION Media Networks, Inc................. 12/16/2016 655 6 505,988 772.50 0.16% Preferred Securities API Heat Transfer, Inc. Class A........ 12/31/2018 36,495 36,495 26,641 0.73 0.01% -------- ---- $583,570 0.19% ======== ====
(13) Perpetual maturity--maturity date reflects the next call date. (14) All or a portion of this holding is subject to unfunded loan commitments (See Note 10). (15) The rate shown is the 7-day yield as of September 30, 2019. (16) See Note 5 for cost of investments on a tax basis. (17) Denominated in United States dollars unless otherwise indicated. (18) PIK ("Payment-in-Kind") security--Income may be paid in additional securities or cash at the discretion of the issuer. The security is currently paying interest in cash at 8.29%. The security is also currently paying interest in the form of additional loans at 0.75%. BTL --Bank Term Loan REMIC --Real Estate Mortgage Investment Conduit TBD --Senior loan purchased on a when issued or delayed-delivery basis. Certain details associated with this purchase are not known prior to the settlement date of the transaction. In addition, senior loans typically trade without accrued interest and therefore a coupon rate is not available prior to the settlement. FRS --Floating Rate Security VRS --Variable Rate Security The rates shown on FRS and VRS are the current interest rates at September 30, 2019 and unless noted otherwise, the dates shown are the original maturity dates. Currency Legend EUR --Euro Currency GBP --British Pound Index Legend 3 ME -- 3 Month Euribor 1 ML -- 1 Month USD LIBOR 3 ML -- 3 Month USD LIBOR 6 ML -- 6 Month USD LIBOR 12 ML -- 12 Month USD LIBOR 1 WL -- 1 Week USD LIBOR 1 Yr USTYCR -- 1 Year US Treasury Yield Curve Rate Forward Foreign Currency Contracts
Contract In Exchange Delivery Unrealized Unrealized Counterparty to Deliver For Date Appreciation Depreciation ------------------------------------------------------------------------------------------ JPMorgan Chase Bank N.A EUR 8,670,500 USD 9,803,387 11/07/2019 $327,481 $ -- EUR 5,833,651 USD 6,466,684 12/05/2019 78,163 -- GBP 1,930,000 USD 2,360,413 12/05/2019 -- (18,594) USD 554,338 EUR 496,000 11/07/2019 -- (12,264) -------- -------- Net Unrealized Appreciation/(Depreciation).... $405,644 $(30,858) ======== ========
47 AIG Strategic Bond Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued) The following is a summary of the inputs used to value the Fund's net assets as of September 30, 2019 (see Note 2):
Level 1 -- Unadjusted Level 2 -- Other Level 3 -- Significant Quoted Prices Observable Inputs Unobservable Inputs Total --------------------- ----------------- ---------------------- ------------ ASSETS: Investments at Value:* Asset Backed Securities.................. $ -- $ 8,991,365 $ -- $ 8,991,365 U.S. Corporate Bonds & Notes: Airlines............................... -- -- 13,223 13,223 Finance-Investment Banker/Broker....... -- 401,440 64 401,504 Gambling (Non-Hotel)................... -- 252,000 28,923 280,923 Rubber/Plastic Products................ -- -- 0 0 Other Industries....................... -- 97,740,902 -- 97,740,902 Foreign Corporate Bonds & Notes: Special Purpose Entity................. -- -- 0 0 Other Industries....................... -- 35,808,929 -- 35,808,929 Foreign Government Obligations........... -- 26,155,064 -- 26,155,064 U.S. Government Agencies................. -- 87,523,445 -- 87,523,445 U.S. Government Treasuries............... -- 7,110,216 -- 7,110,216 Loans.................................... -- 14,819,756 -- 14,819,756 Common Stocks: Television............................. -- -- 505,988 505,988 Other Industries....................... -- 50,941 -- 50,941 Preferred Securities: Building Products-Air & Heating........ -- 26,641 -- 26,641 Other Industries....................... 209,920 -- -- 209,920 Preferred Securities/Capital Securities: Finance-Investment Banker/Broker....... -- -- 22 22 Other Industries....................... -- 4,981,083 -- 4,981,083 Short-Term Investment Securities: Registered Investment Companies........ 26,648,843 -- -- 26,648,843 Other Short-Term Investment Securities. -- 765,540 -- 765,540 ----------- ------------ -------- ------------ Total Investments at Value............... $26,858,763 $284,627,322 $548,220 $312,034,305 =========== ============ ======== ============ Other Financial Instruments:+ Forward Foreign Currency Contracts....... $ -- $ 405,644 $ -- $ 405,644 =========== ============ ======== ============ LIABILITIES: Other Financial Instruments:+ Forward Foreign Currency Contracts....... $ -- $ 30,858 $ -- $ 30,858 =========== ============ ======== ============
-------- * For a detailed presentation of investments, please refer to the Portfolio of Investments. + Amounts presented represent unrealized appreciation/depreciation as of the end of the reporting period. At the beginning and end of the reporting period, Level 3 investments were not considered a material portion of the Fund. There were no material Level 3 transfers during the reporting period. See Notes to Financial Statements 48 AIG Flexible Credit Fund PORTFOLIO PROFILE -- September 30, 2019 -- (unaudited) Industry Allocation* Medical-Hospitals...................... 3.2% Cable/Satellite TV..................... 3.1 Registered Investment Companies........ 2.7 Real Estate Investment Trusts.......... 2.7 Broadcast Services/Program............. 2.6 Oil Companies-Exploration & Production. 2.4 Containers-Metal/Glass................. 2.2 Building-Residential/Commercial........ 2.0 U.S. Government Treasuries............. 2.0 Auto/Truck Parts & Equipment-Original.. 1.9 Enterprise Software/Service............ 1.9 Containers-Paper/Plastic............... 1.8 Casino Hotels.......................... 1.8 Medical Labs & Testing Services........ 1.7 Medical-Drugs.......................... 1.6 Building & Construction Products-Misc.. 1.6 Chemicals-Specialty.................... 1.4 Oil-Field Services..................... 1.4 Food-Misc./Diversified................. 1.3 Pipelines.............................. 1.3 Telephone-Integrated................... 1.3 Gambling (Non-Hotel)................... 1.2 Finance-Credit Card.................... 1.2 Distribution/Wholesale................. 1.2 Electric-Integrated.................... 1.1 Electric-Generation.................... 1.0 Computer Software...................... 1.0 Airlines............................... 1.0 Medical Information Systems............ 1.0 Machinery-Pumps........................ 1.0 Theaters............................... 1.0 Finance-Consumer Loans................. 1.0 Telecom Services....................... 1.0 Machinery-General Industrial........... 0.9 Machinery-Electrical................... 0.9 Building Products-Cement............... 0.9 Computer Services...................... 0.9 Finance-Mortgage Loan/Banker........... 0.9 Soap & Cleaning Preparation............ 0.9 Cellular Telecom....................... 0.9 Exchange-Traded Funds.................. 0.9 Casino Services........................ 0.8 Diagnostic Equipment................... 0.8 Rubber/Plastic Products................ 0.8 Security Services...................... 0.8 Food-Dairy Products.................... 0.8 Commercial Services-Finance............ 0.8 Aerospace/Defense-Equipment............ 0.7 Chemicals-Diversified.................. 0.7 Insurance-Property/Casualty............ 0.7 E-Commerce/Services.................... 0.7 Disposable Medical Products............ 0.7 Steel-Producers........................ 0.7 Metal Processors & Fabrication......... 0.7 Building-Heavy Construction............ 0.6 Cosmetics & Toiletries................. 0.6 Investment Companies................... 0.6 Applications Software.................. 0.6 Professional Sports.................... 0.6 Medical-Generic Drugs.................. 0.6
Commercial Services.................... 0.6% Paper & Related Products............... 0.6 Data Processing/Management............. 0.6 Radio.................................. 0.5 Oil & Gas Drilling..................... 0.5 Diversified Manufacturing Operations... 0.5 Food-Retail............................ 0.5 Housewares............................. 0.5 Investment Management/Advisor Services. 0.5 Food-Confectionery..................... 0.5 Airport Development/Maintenance........ 0.5 Transport-Equipment & Leasing.......... 0.5 Consulting Services.................... 0.5 Diagnostic Kits........................ 0.5 Publishing-Periodicals................. 0.5 Consumer Products-Misc................. 0.4 Insurance-Multi-line................... 0.4 Retail-Sporting Goods.................. 0.4 Auto-Heavy Duty Trucks................. 0.4 Retail-Restaurants..................... 0.4 Food-Wholesale/Distribution............ 0.4 Computers-Integrated Systems........... 0.4 Finance-Auto Loans..................... 0.4 Food-Meat Products..................... 0.4 Appliances............................. 0.4 Oil Refining & Marketing............... 0.4 Hotels/Motels.......................... 0.4 Energy-Alternate Sources............... 0.4 Pharmacy Services...................... 0.4 Food-Catering.......................... 0.4 Telecommunication Equipment............ 0.4 Publishing-Books....................... 0.3 Independent Power Producers............ 0.3 Food-Flour & Grain..................... 0.3 Finance-Leasing Companies.............. 0.3 Hazardous Waste Disposal............... 0.3 Motion Pictures & Services............. 0.3 Printing-Commercial.................... 0.3 Veterinary Diagnostics................. 0.3 Retail-Convenience Store............... 0.3 Satellite Telecom...................... 0.3 Direct Marketing....................... 0.3 Wireless Equipment..................... 0.3 Computers.............................. 0.3 Retail-Arts & Crafts................... 0.3 Medical-Outpatient/Home Medical........ 0.3 Building & Construction-Misc........... 0.3 Aerospace/Defense...................... 0.3 Food-Baking............................ 0.3 Coal................................... 0.3 Retail-Building Products............... 0.3 E-Commerce/Products.................... 0.3 Retail-Propane Distribution............ 0.3 Banks-Commercial....................... 0.3 Retail-Major Department Stores......... 0.3 Banks-Super Regional................... 0.3 Oil Companies-Integrated............... 0.3 Human Resources........................ 0.3 Petrochemicals......................... 0.3 Rental Auto/Equipment.................. 0.3 Television............................. 0.3
49 AIG Flexible Credit Fund PORTFOLIO PROFILE -- September 30, 2019 -- (unaudited) (continued) Industry Allocation* (continued) Diversified Banking Institutions........ 0.3% Sovereign............................... 0.2 Metal-Diversified....................... 0.2 Transport-Marine........................ 0.2 Diversified Minerals.................... 0.2 Athletic Equipment...................... 0.2 Non-Hazardous Waste Disposal............ 0.2 Internet Gambling....................... 0.2 Advertising Sales....................... 0.2 Cruise Lines............................ 0.2 Retail-Vitamins & Nutrition Supplements. 0.2 Medical-HMO............................. 0.2 Internet Connectivity Services.......... 0.2 Retail-Automobile....................... 0.2 Retail-Bedding.......................... 0.2 Diversified Financial Services.......... 0.2 Chemicals-Other......................... 0.1 Real Estate Operations & Development.... 0.1 Retail-Pet Food & Supplies.............. 0.1 Pollution Control....................... 0.1 Medical Products........................ 0.1 Advertising Services.................... 0.1 Vitamins & Nutrition Products........... 0.1 Recycling............................... 0.1 Pastoral & Agricultural................. 0.1 Research & Development.................. 0.1 Retail-Regional Department Stores....... 0.1 ----- 102.7% =====
Credit Quality+# Baa........ 1.7% Ba......... 26.7 B.......... 50.4 Caa........ 13.0 Ca......... 0.5 Not Rated@. 7.7 ----- 100.0% =====
-------- *Calculated as a percentage of net assets +Source: Moody's #Calculated as a percentage of total debt issues, excluding short-term securities. @Represents debt issues that either have no rating, or the rating is unavailable from the data source. 50 AIG Flexible Credit Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited)
Principal Value Security Description Amount (Note 2) ASSET BACKED SECURITIES -- 0.1% Diversified Financial Services -- 0.1% TGIF Funding LLC Series 2017-1A, Class A2 6.20% due 04/30/2047* (cost $361,462)......................... $ 374,360 $ 367,139 ---------- U.S. CORPORATE BONDS & NOTES -- 36.8% Aerospace/Defense-Equipment -- 0.5% TransDigm, Inc. Senior Sec. Notes 6.25% due 03/15/2026*................... 1,755,000 1,884,431 ---------- Applications Software -- 0.3% SS&C Technologies, Inc. Company Guar. Notes 5.50% due 09/30/2027*................... 1,030,000 1,076,376 ---------- Athletic Equipment -- 0.2% Vista Outdoor, Inc. Company Guar. Notes 5.88% due 10/01/2023.................... 810,000 753,300 ---------- Auto/Truck Parts & Equipment-Original -- 0.5% American Axle & Manufacturing, Inc. Company Guar. Notes 6.50% due 04/01/2027.................... 1,700,000 1,619,250 ---------- Banks-Commercial -- 0.3% Synovus Financial Corp. Sub. Notes 5.90% due 02/07/2029.................... 865,000 915,819 ---------- Broadcast Services/Program -- 1.1% Clear Channel Worldwide Holdings, Inc. Senior Sec. Notes 5.13% due 08/15/2027*................... 440,000 458,414 Clear Channel Worldwide Holdings, Inc. Company Guar. Notes 9.25% due 02/15/2024*................... 387,000 425,182 Diamond Sports Group LLC/Diamond Sports Finance Co. Senior Sec. Notes 5.38% due 08/15/2026*................... 460,000 477,250 Diamond Sports Group LLC/Diamond Sports Finance Co. Company Guar. Notes 6.63% due 08/15/2027*................... 960,000 996,000 iHeartCommunications, Inc. Senior Sec. Notes 5.25% due 08/15/2027*................... 145,000 150,800 iHeartCommunications, Inc. Senior Sec. Notes 6.38% due 05/01/2026.................... 135,154 145,966 iHeartCommunications, Inc. Company Guar. Notes 8.38% due 05/01/2027.................... 244,966 264,637 Univision Communications, Inc. Senior Sec. Notes 5.13% due 02/15/2025*................... 945,000 918,398 ---------- 3,836,647 ----------
Principal Value Security Description Amount (Note 2) Building & Construction Products-Misc. -- 0.5% Owens Corning Senior Notes 3.95% due 08/15/2029......................... $ 820,000 $ 833,752 Patrick Industries, Inc. Senior Notes 7.50% due 10/15/2027*........................ 765,000 788,026 ---------- 1,621,778 ---------- Building & Construction-Misc. -- 0.3% Weekley Homes LLC/Weekley Finance Corp. Senior Notes 6.63% due 08/15/2025......................... 1,045,000 1,047,612 ---------- Building-Heavy Construction -- 0.2% New Enterprise Stone & Lime Co., Inc. Senior Notes 10.13% due 04/01/2022*....................... 805,000 827,138 ---------- Building-Residential/Commercial -- 1.5% Beazer Homes USA, Inc. Company Guar. Notes 5.88% due 10/15/2027......................... 560,000 542,276 Beazer Homes USA, Inc. Company Guar. Notes 6.75% due 03/15/2025......................... 720,000 734,400 Lennar Corp. Company Guar. Notes 5.25% due 06/01/2026......................... 815,000 881,219 PulteGroup, Inc. Company Guar. Notes 7.88% due 06/15/2032......................... 645,000 786,900 TRI Pointe Group Inc./TRI Pointe Homes Inc. Company Guar. Notes 5.88% due 06/15/2024......................... 1,475,000 1,570,875 William Lyon Homes, Inc. Company Guar. Notes 6.00% due 09/01/2023......................... 700,000 728,000 ---------- 5,243,670 ---------- Cable/Satellite TV -- 2.3% Cablevision Systems Corp. Senior Notes 5.88% due 09/15/2022......................... 1,255,000 1,352,262 CCO Holdings LLC/CCO Holdings Capital Corp. Senior Notes 4.75% due 03/01/2030*........................ 950,000 964,450 CCO Holdings LLC/CCO Holdings Capital Corp. Senior Notes 5.13% due 05/01/2027*........................ 825,000 861,094 CSC Holdings LLC Senior Notes 5.75% due 01/15/2030*........................ 1,900,000 1,985,728 CSC Holdings LLC Senior Notes 7.50% due 04/01/2028*........................ 585,000 658,798 DISH DBS Corp. Company Guar. Notes 5.00% due 03/15/2023......................... 975,000 985,042 DISH DBS Corp. Company Guar. Notes 7.75% due 07/01/2026......................... 340,000 345,950
51 AIG Flexible Credit Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 2) U.S. CORPORATE BONDS & NOTES (continued) Cable/Satellite TV (continued) Radiate Holdco LLC/Radiate Finance, Inc. Senior Notes 6.63% due 02/15/2025*............................ $ 670,000 $ 674,757 ---------- 7,828,081 ---------- Casino Hotels -- 0.8% Boyd Gaming Corp. Company Guar. Notes 6.00% due 08/15/2026............................. 260,000 274,276 Boyd Gaming Corp. Company Guar. Notes 6.38% due 04/01/2026............................. 1,615,000 1,711,900 MGM Resorts International Company Guar. Notes 5.75% due 06/15/2025............................. 615,000 677,453 ---------- 2,663,629 ---------- Casino Services -- 0.2% Eldorado Resorts, Inc. Company Guar. Notes 6.00% due 09/15/2026............................. 755,000 826,725 ---------- Cellular Telecom -- 0.3% Sprint Corp. Company Guar. Notes 7.88% due 09/15/2023............................. 960,000 1,054,522 ---------- Chemicals-Diversified -- 0.3% Olin Corp. Senior Notes 5.63% due 08/01/2029............................. 1,010,000 1,050,703 ---------- Chemicals-Specialty -- 0.4% Kraton Polymers LLC/Kraton Polymers Capital Corp. Company Guar. Notes 7.00% due 04/15/2025*............................ 835,000 870,488 Platform Specialty Products Corp. Company Guar. Notes 5.88% due 12/01/2025*............................ 630,000 658,285 ---------- 1,528,773 ---------- Coal -- 0.3% Alliance Resource Operating Partners LP/Alliance Resource Finance Corp. Company Guar. Notes 7.50% due 05/01/2025*............................ 985,000 972,688 ---------- Computer Services -- 0.3% Banff Merger Sub, Inc. Senior Notes 9.75% due 09/01/2026*............................ 530,000 505,885 Exela Intermediate LLC/Exela Finance, Inc. Senior Sec. Notes 10.00% due 07/15/2023*........................... 490,000 274,400 Tempo Acquisition LLC/Tempo Acquisition Finance Corp. Senior Notes 6.75% due 06/01/2025*............................ 235,000 242,050 ---------- 1,022,335 ----------
Principal Value Security Description Amount (Note 2) Computers -- 0.3% Dell International LLC/EMC Corp. Senior Sec. Notes 4.90% due 10/01/2026*................. $ 495,000 $ 530,592 Dell International LLC/EMC Corp. Senior Sec. Notes 5.30% due 10/01/2029*................. 505,000 550,579 ---------- 1,081,171 ---------- Computers-Integrated Systems -- 0.1% Everi Payments, Inc. Company Guar. Notes 7.50% due 12/15/2025*................. 250,000 263,438 ---------- Consumer Products-Misc. -- 0.2% Prestige Brands, Inc. Company Guar. Notes 6.38% due 03/01/2024*................. 775,000 806,000 ---------- Containers-Metal/Glass -- 0.6% BWAY Holding Co. Senior Notes 7.25% due 04/15/2025*................. 901,000 851,715 Greif, Inc. Company Guar. Notes 6.50% due 03/01/2027*................. 610,000 646,905 Owens-Brockway Glass Container, Inc. Company Guar. Notes 6.38% due 08/15/2025*................. 665,000 704,900 ---------- 2,203,520 ---------- Containers-Paper/Plastic -- 0.3% Trident Merger Sub, Inc. Senior Notes 6.63% due 11/01/2025*................. 790,000 691,250 Trident TPI Holdings, Inc. Company Guar. Notes 9.25% due 08/01/2024*................. 490,000 480,200 ---------- 1,171,450 ---------- Data Processing/Management -- 0.3% Star Merger Sub, Inc. Senior Notes 10.25% due 02/15/2027*................ 785,000 868,406 ---------- Diagnostic Equipment -- 0.8% Avantor, Inc. Senior Sec. Notes 6.00% due 10/01/2024*................. 1,155,000 1,237,617 Avantor, Inc. Senior Notes 9.00% due 10/01/2025*................. 735,000 823,200 Ortho-Clinical Diagnostics, Inc. Senior Notes 6.63% due 05/15/2022*................. 790,000 771,593 ---------- 2,832,410 ---------- Disposable Medical Products -- 0.3% Sotera Health Holdings LLC Senior Notes 6.50% due 05/15/2023*................. 900,000 919,125 ----------
52 AIG Flexible Credit Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 2) U.S. CORPORATE BONDS & NOTES (continued) Distribution/Wholesale -- 0.1% IAA Spinco, Inc. Senior Notes 5.50% due 06/15/2027*....................... $ 280,000 $ 295,400 ---------- Diversified Manufacturing Operations -- 0.2% LSB Industries, Inc. Senior Sec. Notes 9.63% due 05/01/2023*....................... 795,000 838,725 ---------- E-Commerce/Services -- 0.3% GrubHub Holdings, Inc. Company Guar. Notes 5.50% due 07/01/2027*....................... 1,005,000 1,025,402 ---------- Electric-Generation -- 0.5% Vistra Operations Co. LLC Senior Sec. Notes 4.30% due 07/15/2029*....................... 660,000 677,165 Vistra Operations Co. LLC Senior Notes 5.63% due 02/15/2027*....................... 1,145,000 1,205,742 ---------- 1,882,907 ---------- Electric-Integrated -- 0.8% DPL, Inc. Senior Notes 4.35% due 04/15/2029*....................... 1,735,000 1,713,760 Talen Energy Supply LLC Senior Sec. Notes 6.63% due 01/15/2028*....................... 750,000 736,875 Talen Energy Supply LLC Senior Sec. Notes 7.25% due 05/15/2027*....................... 295,000 299,808 Texas Competitive Electric Holdings Co. LLC/ TCEH Finance, Inc. Escrow Notes 11.50% due 10/01/2020+...................... 1,667,835 2,502 ---------- 2,752,945 ---------- Energy-Alternate Sources -- 0.4% TerraForm Power Operating LLC Company Guar. Notes 4.25% due 01/31/2023*....................... 650,000 663,000 TerraForm Power Operating LLC Company Guar. Notes 5.00% due 01/31/2028*....................... 590,000 613,600 ---------- 1,276,600 ---------- Enterprise Software/Service -- 0.2% Infor US, Inc. Company Guar. Notes 6.50% due 05/15/2022........................ 665,000 675,806 ---------- Finance-Consumer Loans -- 1.0% Navient Corp. Senior Notes 5.88% due 10/25/2024........................ 1,095,000 1,103,212 Navient Corp. Senior Notes 6.75% due 06/25/2025........................ 1,025,000 1,057,031
Principal Value Security Description Amount (Note 2) Finance-Consumer Loans (continued) Springleaf Finance Corp. Company Guar. Notes 6.88% due 03/15/2025........................... $ 820,000 $ 903,538 Springleaf Finance Corp. Company Guar. Notes 7.13% due 03/15/2026........................... 390,000 432,637 ---------- 3,496,418 ---------- Finance-Mortgage Loan/Banker -- 0.3% Nationstar Mtg. Holdings, Inc. Company Guar. Notes 8.13% due 07/15/2023*.......................... 595,000 620,288 Nationstar Mtg. LLC/Nationstar Capital Corp. Company Guar. Notes 6.50% due 07/01/2021........................... 350,000 350,875 ---------- 971,163 ---------- Food-Dairy Products -- 0.3% Chobani LLC/Chobani Finance Corp., Inc. Company Guar. Notes 7.50% due 04/15/2025*.......................... 1,095,000 1,048,462 ---------- Food-Misc./Diversified -- 0.6% Dole Food Co., Inc. Senior Sec. Notes 7.25% due 06/15/2025*.......................... 1,250,000 1,178,125 Post Holdings, Inc. Company Guar. Notes 5.00% due 08/15/2026*.......................... 435,000 451,138 Post Holdings, Inc. Company Guar. Notes 5.50% due 03/01/2025*.......................... 590,000 618,025 ---------- 2,247,288 ---------- Food-Retail -- 0.3% Albertsons Cos. LLC/Safeway, Inc./New Albertsons LP/Albertson's LLC Company Guar. Notes 5.75% due 03/15/2025........................... 705,000 724,987 Albertsons Cos. LLC/Safeway, Inc./New Albertsons LP/Albertson's LLC Company Guar. Notes 5.88% due 02/15/2028*.......................... 155,000 164,058 Albertsons Cos. LLC/Safeway, Inc./New Albertsons LP/Albertson's LLC Company Guar. Notes 7.50% due 03/15/2026*.......................... 145,000 161,312 ---------- 1,050,357 ---------- Food-Wholesale/Distribution -- 0.1% Matterhorn Merger Sub LLC/Matterhorn Finance Sub, Inc. Senior Notes 8.50% due 06/01/2026*.......................... 580,000 432,100 ---------- Gambling (Non-Hotel) -- 0.6% Caesars Resort Collection LLC/CRC Finco, Inc. Company Guar. Notes 5.25% due 10/15/2025*.......................... 520,000 531,648
53 AIG Flexible Credit Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 2) U.S. CORPORATE BONDS & NOTES (continued) Gambling (Non-Hotel) (continued) Contra CB Downey Fin Escrow Notes 10.50% due 02/15/2023+.................. $ 485,000 $ 0 Downstream Development Authority of the Quapaw Tribe of Oklahoma Senior Sec. Notes 10.50% due 02/15/2023*.................. 485,000 516,525 Scientific Games International, Inc. Company Guar. Notes 6.63% due 05/15/2021.................... 440,000 445,500 Scientific Games International, Inc. Company Guar. Notes 8.25% due 03/15/2026*................... 380,000 403,123 Twin River Worldwide Holdings, Inc. Senior Notes 6.75% due 06/01/2027*................... 200,000 210,000 ---------- 2,106,796 ---------- Housewares -- 0.1% American Greetings Corp. Company Guar. Notes 8.75% due 04/15/2025*................... 530,000 482,300 ---------- Insurance-Multi-line -- 0.3% Acrisure LLC/Acrisure Finance, Inc. Senior Notes 7.00% due 11/15/2025*................... 710,000 661,933 Acrisure LLC/Acrisure Finance, Inc. Senior Sec. Notes 8.13% due 02/15/2024*................... 320,000 344,800 ---------- 1,006,733 ---------- Internet Connectivity Services -- 0.2% Zayo Group LLC/Zayo Capital, Inc. Company Guar. Notes 6.38% due 05/15/2025.................... 600,000 617,880 ---------- Investment Companies -- 0.6% Icahn Enterprises LP/Icahn Enterprises Finance Corp. Company Guar. Notes 5.88% due 02/01/2022.................... 985,000 995,466 Icahn Enterprises LP/Icahn Enterprises Finance Corp. Company Guar. Notes 6.25% due 05/15/2026*................... 880,000 922,900 Icahn Enterprises LP/Icahn Enterprises Finance Corp. Company Guar. Notes 6.38% due 12/15/2025.................... 285,000 299,681 ---------- 2,218,047 ---------- Investment Management/Advisor Services -- 0.5% Citadel LP Senior Notes 4.88% due 01/15/2027*................... 1,735,000 1,772,326 ----------
Principal Value Security Description Amount (Note 2) Machinery-Electrical -- 0.2% Vertiv Intermediate Holding Corp. Senior Notes 12.00% due 02/15/2022*(1)....................... $795,000 $ 713,513 ---------- Machinery-General Industrial -- 0.2% RBS Global, Inc./Rexnord LLC Company Guar. Notes 4.88% due 12/15/2025*........................... 775,000 796,235 ---------- Machinery-Pumps -- 0.2% Granite Holdings US Acquisition Co. Company Guar. Notes 11.00% due 10/01/2027*.......................... 880,000 849,200 ---------- Medical Information Systems -- 0.1% Change Healthcare Holdings LLC/Change Healthcare Finance, Inc. Senior Notes 5.75% due 03/01/2025*........................... 340,000 345,100 ---------- Medical Labs & Testing Services -- 0.9% Catalent Pharma Solutions, Inc. Company Guar. Notes 5.00% due 07/15/2027*........................... 280,000 290,500 Charles River Laboratories International, Inc. Company Guar. Notes 5.50% due 04/01/2026*........................... 350,000 372,305 Eagle Holding Co. II LLC Senior Notes 7.63% due 05/15/2022*(1)........................ 910,000 916,825 Eagle Holding Co. II LLC Notes 7.75% due 05/15/2022*(1)........................ 820,000 827,175 West Street Merger Sub, Inc. Senior Notes 6.38% due 09/01/2025*........................... 810,000 745,200 ---------- 3,152,005 ---------- Medical-Drugs -- 0.3% Bausch Health Americas, Inc. Company Guar. Notes 8.50% due 01/31/2027*........................... 885,000 993,235 Endo Finance LLC/Endo Finco, Inc. Company Guar. Notes 5.38% due 01/15/2023*........................... 350,000 213,500 ---------- 1,206,735 ---------- Medical-Generic Drugs -- 0.1% Par Pharmaceutical, Inc. Senior Sec. Notes 7.50% due 04/01/2027*........................... 405,000 371,081 ---------- Medical-HMO -- 0.2% Centene Corp. Senior Notes 5.38% due 06/01/2026*........................... 195,000 204,019 WellCare Health Plans, Inc. Senior Notes 5.25% due 04/01/2025............................ 450,000 468,562 ---------- 672,581 ----------
54 AIG Flexible Credit Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 2) U.S. CORPORATE BONDS & NOTES (continued) Medical-Hospitals -- 1.9% HCA, Inc. Company Guar. Notes 5.38% due 02/01/2025.................. $1,315,000 $1,436,638 HCA, Inc. Company Guar. Notes 5.63% due 09/01/2028.................. 1,415,000 1,576,734 HCA, Inc. Company Guar. Notes 5.88% due 02/01/2029.................. 155,000 174,101 Select Medical Corp. Company Guar. Notes 6.25% due 08/15/2026*................. 370,000 386,650 Surgery Center Holdings, Inc. Company Guar. Notes 10.00% due 04/15/2027*................ 425,000 431,375 Tenet Healthcare Corp. Senior Sec. Notes 4.88% due 01/01/2026*................. 865,000 887,706 Tenet Healthcare Corp. Senior Sec. Notes 5.13% due 11/01/2027*................. 292,000 301,738 Tenet Healthcare Corp. Sec. Notes 6.25% due 02/01/2027*................. 345,000 359,335 Tenet Healthcare Corp. Senior Notes 7.00% due 08/01/2025.................. 650,000 658,125 Tenet Healthcare Corp. Senior Notes 8.13% due 04/01/2022.................. 365,000 394,766 ---------- 6,607,168 ---------- Metal Processors & Fabrication -- 0.2% Hillman Group, Inc. Company Guar. Notes 6.38% due 07/15/2022*................. 585,000 548,438 ---------- Oil & Gas Drilling -- 0.2% Nabors Industries, Inc. Company Guar. Notes 5.75% due 02/01/2025.................. 535,000 395,900 Rowan Cos., Inc. Company Guar. Notes 5.40% due 12/01/2042.................. 875,000 371,875 ---------- 767,775 ---------- Oil Companies-Exploration & Production -- 1.4% California Resources Corp. Sec. Notes 8.00% due 12/15/2022*................. 420,000 207,900 Callon Petroleum Co. Company Guar. Notes 6.13% due 10/01/2024.................. 451,345 444,575 Chesapeake Energy Corp. Company Guar. Notes 8.00% due 06/15/2027.................. 965,000 656,393 CrownRock LP/CrownRock Finance, Inc. Senior Notes 5.63% due 10/15/2025*................. 1,015,000 1,021,323
Principal Value Security Description Amount (Note 2) Oil Companies-Exploration & Production (continued) Denbury Resources, Inc. Sec. Notes 7.75% due 02/15/2024*............................ $ 580,000 $ 448,050 Denbury Resources, Inc. Sec. Notes 9.25% due 03/31/2022*............................ 768,000 672,000 EP Energy LLC/Everest Acquisition Finance, Inc. Senior Sec. Notes 7.75% due 05/15/2026+*(2)........................ 180,000 135,000 EP Energy LLC/Everest Acquisition Finance, Inc. Senior Sec. Notes 8.00% due 11/29/2024+*(2)........................ 170,000 62,900 EP Energy LLC/Everest Acquisition Finance, Inc. Sec. Bonds 8.00% due 02/15/2025+*(2)........................ 260,000 6,500 Kosmos Energy,, Ltd Company Guar. Notes 7.13% due 04/04/2026*............................ 600,000 618,078 Sanchez Energy Corp. Senior Sec. Notes 7.25% due 02/15/2023+*(2)(3)..................... 405,000 291,600 Vine Oil & Gas LP/Vine Oil & Gas Finance Corp. Company Guar. Notes 8.75% due 04/15/2023*............................ 575,000 261,625 ---------- 4,825,944 ---------- Oil-Field Services -- 0.6% CSI Compressco LP/CSI Compressco Finance, Inc. Company Guar. Notes 7.25% due 08/15/2022............................. 1,145,000 1,035,767 USA Compression Partners LP/USA Compression Finance Corp. Company Guar. Notes 6.88% due 04/01/2026............................. 905,000 938,937 ---------- 1,974,704 ---------- Paper & Related Products -- 0.3% Schweitzer-Mauduit International, Inc. Company Guar. Notes 6.88% due 10/01/2026*............................ 1,020,000 1,078,650 ---------- Petrochemicals -- 0.3% TPC Group, Inc. Senior Sec. Notes 10.50% due 08/01/2024*........................... 827,000 862,148 ---------- Pipelines -- 0.8% American Midstream Partners LP/American Midstream Finance Corp. Company Guar. Notes 9.50% due 12/15/2021*............................ 525,000 493,500 Cheniere Corpus Christi Holdings LLC Senior Sec. Notes 5.88% due 03/31/2025............................. 1,065,000 1,184,951 Cheniere Energy Partners LP Company Guar. Notes 5.63% due 10/01/2026............................. 665,000 705,665
55 AIG Flexible Credit Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 2) U.S. CORPORATE BONDS & NOTES (continued) Pipelines (continued) Targa Resources Partners LP/Targa Resources Partners Finance Corp. Company Guar. Notes 5.88% due 04/15/2026........................ $ 485,000 $ 513,954 ---------- 2,898,070 ---------- Publishing-Books -- 0.1% McGraw-Hill Global Education Holdings LLC/ McGraw-Hill Global Education Finance Senior Notes 7.88% due 05/15/2024*....................... 500,000 432,500 ---------- Publishing-Periodicals -- 0.3% Meredith Corp. Company Guar. Notes 6.88% due 02/01/2026........................ 1,000,000 1,016,250 ---------- Radio -- 0.5% Sirius XM Radio, Inc. Company Guar. Notes 4.63% due 07/15/2024*....................... 310,000 321,417 Sirius XM Radio, Inc. Company Guar. Notes 5.50% due 07/01/2029*....................... 1,370,000 1,462,475 ---------- 1,783,892 ---------- Real Estate Investment Trusts -- 2.1% ESH Hospitality, Inc. Company Guar. Notes 4.63% due 10/01/2027*....................... 1,070,000 1,074,013 ESH Hospitality, Inc. Company Guar. Notes 5.25% due 05/01/2025*....................... 1,070,000 1,106,380 Iron Mountain, Inc. Company Guar. Notes 4.88% due 09/15/2029*....................... 1,100,000 1,116,830 iStar, Inc. Senior Notes 4.75% due 10/01/2024........................ 250,000 254,395 iStar, Inc. Senior Notes 5.25% due 09/15/2022........................ 1,170,000 1,194,862 MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc. Company Guar. Notes 4.50% due 01/15/2028........................ 580,000 601,750 MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc. Company Guar. Notes 5.63% due 05/01/2024........................ 330,000 361,763 MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc. Company Guar. Notes 5.75% due 02/01/2027*....................... 370,000 415,436 MPT Operating Partnership LP/MPT Finance Corp. Company Guar. Notes 4.63% due 08/01/2029........................ 200,000 206,000
Principal Value Security Description Amount (Note 2) Real Estate Investment Trusts (continued) MPT Operating Partnership LP/MPT Finance Corp. Company Guar. Notes 5.00% due 10/15/2027......................... $ 400,000 $ 419,000 Uniti Group, Inc./CSL Capital LLC Company Guar. Notes 7.13% due 12/15/2024*........................ 595,000 519,881 ---------- 7,270,310 ---------- Rental Auto/Equipment -- 0.3% Avis Budget Car Rental LLC/Avis Budget Finance, Inc. Senior Notes 5.75% due 07/15/2027*........................ 835,000 861,470 ---------- Retail-Arts & Crafts -- 0.1% Michaels Stores, Inc. Company Guar. Notes 8.00% due 07/15/2027*........................ 360,000 360,450 ---------- Retail-Automobile -- 0.2% Sonic Automotive, Inc. Company Guar. Notes 6.13% due 03/15/2027......................... 600,000 609,750 ---------- Retail-Building Products -- 0.0% Beacon Roofing Supply, Inc. Senior Sec. Notes 4.50% due 11/15/2026*........................ 80,000 80,800 ---------- Retail-Convenience Store -- 0.3% Cumberland Farms, Inc. Senior Notes 6.75% due 05/01/2025*........................ 1,025,000 1,097,775 ---------- Retail-Propane Distribution -- 0.3% Ferrellgas Partners LP/Ferrellgas Partners Finance Corp. Senior Notes 8.63% due 06/15/2020......................... 570,000 428,925 Suburban Propane Partners LP/Suburban Energy Finance Corp. Senior Notes 5.50% due 06/01/2024......................... 490,000 499,800 ---------- 928,725 ---------- Retail-Regional Department Stores -- 0.1% Neiman Marcus Group, Ltd. LLC/Neiman Marcus Group LLC/Mariposa Borrower/NMG Sec. Notes 8.00% due 10/25/2024*........................ 577,000 167,330 ---------- Retail-Restaurants -- 0.4% Golden Nugget, Inc. Senior Notes 6.75% due 10/15/2024*........................ 895,000 910,662 Golden Nugget, Inc. Company Guar. Notes 8.75% due 10/01/2025*........................ 455,000 474,338 ---------- 1,385,000 ----------
56 AIG Flexible Credit Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 2) U.S. CORPORATE BONDS & NOTES (continued) Rubber/Plastic Products -- 0.0% Venture Holdings Co. LLC Company Guar. Notes 11.00% due 06/01/2007+(3)(4)(5).... $ 550,000 $ 0 ---------- Soap & Cleaning Preparation -- 0.2% Kronos Acquisition Holdings, Inc. Company Guar. Notes 9.00% due 08/15/2023*.............. 720,000 635,400 ---------- Steel-Producers -- 0.6% AK Steel Corp. Company Guar. Notes 7.00% due 03/15/2027............... 585,000 500,175 AK Steel Corp. Senior Sec. Notes 7.50% due 07/15/2023............... 825,000 829,125 United States Steel Corp. Senior Notes 6.25% due 03/15/2026............... 715,000 600,600 ---------- 1,929,900 ---------- Telecom Services -- 0.2% West Corp. Company Guar. Notes 8.50% due 10/15/2025*.............. 640,000 514,400 ---------- Telecommunication Equipment -- 0.2% CommScope Finance LLC Company Guar. Notes 8.25% due 03/01/2027*.............. 640,000 623,000 ---------- Telephone-Integrated -- 1.2% Cincinnati Bell, Inc. Company Guar. Notes 7.00% due 07/15/2024*.............. 1,075,000 994,375 Consolidated Communications, Inc. Company Guar. Notes 6.50% due 10/01/2022............... 970,000 897,250 Frontier Communications Corp. Senior Notes 8.50% due 04/15/2020............... 740,000 384,800 Frontier Communications Corp. Sec. Notes 8.50% due 04/01/2026*.............. 295,000 294,971 Frontier Communications Corp. Senior Notes 11.00% due 09/15/2025.............. 745,000 340,838 Level 3 Financing, Inc. Company Guar. Notes 5.25% due 03/15/2026............... 530,000 551,120 Level 3 Financing, Inc. Company Guar. Notes 5.38% due 01/15/2024............... 670,000 683,299 ---------- 4,146,653 ---------- Television -- 0.1% Sinclair Television Group, Inc. Company Guar. Notes 5.13% due 02/15/2027*.............. 250,000 251,250 ----------
Principal Value Security Description Amount (Note 2) Theaters -- 0.3% Live Nation Entertainment, Inc. Company Guar. Notes 5.63% due 03/15/2026*.................... $1,130,000 $ 1,202,037 ------------ Transport-Equipment & Leasing -- 0.5% Fortress Transportation & Infrastructure Investors LLC Senior Notes 6.50% due 10/01/2025*.................... 980,000 1,006,950 Fortress Transportation & Infrastructure Investors LLC Senior Notes 6.75% due 03/15/2022*.................... 670,000 700,150 ------------ 1,707,100 ------------ Wireless Equipment -- 0.3% ViaSat, Inc. Senior Notes 5.63% due 09/15/2025*.................... 1,075,000 1,083,062 ------------ Total U.S. Corporate Bonds & Notes (cost $129,479,030)...................... 127,873,053 ------------ FOREIGN CORPORATE BONDS & NOTES -- 8.4% Aerospace/Defense -- 0.3% Bombardier, Inc. Senior Notes 7.50% due 12/01/2024*.................... 675,000 675,000 Bombardier, Inc. Senior Notes 7.88% due 04/15/2027*.................... 365,000 363,485 ------------ 1,038,485 ------------ Airlines -- 0.6% Norwegian Air Shuttle ASA Pass- Through Trust Series 2016-1, Class A Pass-Through Certs. 4.88% due 11/10/2029*.................... 2,212,351 2,150,848 ------------ Airport Development/Maintenance -- 0.2% Delhi International Airport, Ltd. Senior Sec. Notes 6.45% due 06/04/2029*.................... 655,000 695,393 ------------ Auto/Truck Parts & Equipment-Original -- 0.2% Panther BF Aggregator 2 LP/Panther Finance Co, Inc. Senior Sec. Notes 6.25% due 05/15/2026*.................... 60,000 63,150 Panther BF Aggregator 2 LP/Panther Finance Co, Inc. Company Guar. Notes 8.50% due 05/15/2027*.................... 695,000 703,688 ------------ 766,838 ------------ Building & Construction Products-Misc. -- 0.2% James Hardie International Finance DAC Company Guar. Notes 4.75% due 01/15/2025*.................... 655,000 674,650 ------------
57 AIG Flexible Credit Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 2) FOREIGN CORPORATE BONDS & NOTES (continued) Building-Residential/Commercial -- 0.5% Brookfield Residential Properties, Inc./Brookfield Residential US Corp. Company Guar. Notes 6.25% due 09/15/2027*.............................. $1,820,000 $1,829,100 ---------- Cable/Satellite TV -- 0.3% Altice Luxembourg SA Company Guar. Notes 7.75% due 05/15/2022*.............................. 200,000 204,250 Virgin Media Secured Finance PLC Senior Sec. Notes 5.50% due 05/15/2029*.............................. 900,000 939,375 ---------- 1,143,625 ---------- Casino Services -- 0.2% Gateway Casinos & Entertainment, Ltd. Sec. Notes 8.25% due 03/01/2024*.............................. 800,000 830,000 ---------- Cellular Telecom -- 0.4% Numericable-SFR SA Senior Sec. Notes 7.38% due 05/01/2026*.............................. 1,200,000 1,286,652 ---------- Chemicals-Specialty -- 0.3% Alpha 3 BV/Alpha US Bidco, Inc. Company Guar. Notes 6.25% due 02/01/2025*.............................. 950,000 954,750 ---------- Containers-Metal/Glass -- 0.7% ARD Securities Finance SARL Senior Sec. Notes 8.75% due 01/31/2023*(6)........................... 632,251 654,380 Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. Senior Sec. Notes 4.13% due 08/15/2026*.............................. 200,000 201,250 Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. Company Guar. Notes 6.00% due 02/15/2025*.............................. 1,520,000 1,589,312 ---------- 2,444,942 ---------- Cruise Lines -- 0.2% Viking Cruises, Ltd. Company Guar. Notes 5.88% due 09/15/2027*.............................. 645,000 683,442 ---------- Diversified Financial Services -- 0.1% Fairstone Financial, Inc. Senior Notes 7.88% due 07/15/2024*.............................. 155,000 161,878 ---------- Diversified Manufacturing Operations -- 0.3% Pentair Finance SARL Company Guar. Notes 4.50% due 07/01/2029............................... 1,025,000 1,063,287 ---------- Finance-Leasing Companies -- 0.3% Avolon Holdings Funding, Ltd. Company Guar. Notes 4.38% due 05/01/2026*.............................. 1,105,000 1,142,901 ----------
Principal Value Security Description Amount (Note 2) Machinery-Pumps -- 0.1% Titan Acquisition, Ltd./Titan Co-Borrower LLC Senior Notes 7.75% due 04/15/2026*........................... $ 455,000 $ 426,563 ---------- Medical-Biomedical/Gene -- 0.0% Concordia International Corp. Senior Sec. Notes 8.00% due 09/06/2024............................ 142,000 138,095 ---------- Medical-Drugs -- 1.0% Bausch Health Cos., Inc. Senior Sec. Notes 5.50% due 11/01/2025*........................... 1,180,000 1,234,693 Bausch Health Cos., Inc. Senior Sec. Notes 5.75% due 08/15/2027*........................... 585,000 632,286 Bausch Health Cos., Inc. Company Guar. Notes 7.00% due 01/15/2028*........................... 745,000 802,439 Teva Pharmaceutical Finance Netherlands III BV Company Guar. Notes 3.15% due 10/01/2026............................ 505,000 353,450 Teva Pharmaceutical Finance Netherlands III BV Company Guar. Notes 6.75% due 03/01/2028............................ 330,000 268,950 ---------- 3,291,818 ---------- Medical-Generic Drugs -- 0.2% Perrigo Finance Unlimited Co. Company Guar. Notes 4.38% due 03/15/2026............................ 700,000 723,526 ---------- Metal-Diversified -- 0.2% Vedanta Resources PLC Senior Notes 6.38% due 07/30/2022*........................... 805,000 789,906 ---------- Oil & Gas Drilling -- 0.2% Transocean, Inc. Company Guar. Notes 6.80% due 03/15/2038............................ 465,000 285,975 Transocean, Inc. Company Guar. Notes 7.50% due 01/15/2026*........................... 335,000 298,150 Transocean, Inc. Company Guar. Notes 9.00% due 07/15/2023*........................... 265,000 272,287 ---------- 856,412 ---------- Oil Companies-Exploration & Production -- 0.3% Geopark, Ltd. Senior Sec. Notes 6.50% due 09/21/2024*........................... 995,000 1,023,606 ---------- Oil Companies-Integrated -- 0.3% Petrobras Global Finance BV Company Guar. Notes 5.30% due 01/27/2025............................ 460,000 502,090
58 AIG Flexible Credit Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 2) FOREIGN CORPORATE BONDS & NOTES (continued) Oil Companies-Integrated (continued) Petrobras Global Finance BV Company Guar. Notes 5.75% due 02/01/2029......................... $ 340,000 $ 374,979 ----------- 877,069 ----------- Oil-Field Services -- 0.1% Weatherford International, Ltd. Company Guar. Notes 8.25% due 06/15/2023+(2)(3).................. 575,000 204,125 ----------- Paper & Related Products -- 0.2% Cascades, Inc. Company Guar. Notes 5.50% due 07/15/2022*........................ 150,000 151,875 Cascades, Inc. Company Guar. Notes 5.75% due 07/15/2023*........................ 360,000 364,500 ----------- 516,375 ----------- Pastoral & Agricultural -- 0.1% MHP Lux SA Company Guar. Notes 6.25% due 09/19/2029*........................ 200,000 192,912 ----------- Satellite Telecom -- 0.3% Telesat Canada/Telesat LLC Senior Notes 6.50% due 10/15/2027*........................ 1,080,000 1,097,550 ----------- Security Services -- 0.3% Garda World Security Corp. Senior Notes 8.75% due 05/15/2025*........................ 865,000 888,441 ----------- Special Purpose Entity -- 0.0% Hellas Telecommunications Luxembourg II SCA Sub. Notes 6.05% due 01/15/2015+*(3)(4)(5).............. 1,025,000 0 ----------- Steel-Producers -- 0.1% ArcelorMittal Senior Notes 6.13% due 06/01/2025......................... 445,000 500,749 ----------- Transport-Marine -- 0.2% Topaz Marine SA Company Guar. Notes 9.13% due 07/26/2022*........................ 740,000 773,759 ----------- Total Foreign Corporate Bonds & Notes (cost $30,178,010)........................... 29,167,697 ----------- LOANS(7)(8)(9) -- 50.7% Advertising Sales -- 0.2% Clear Channel Outdoor Holdings, Inc. FRS BTL 5.54% (1 ML+3.50%) due 08/21/2026............................... 600,000 601,500 ----------- Advertising Services -- 0.1% Advantage Sales & Marketing, Inc. FRS 1st Lien 5.29% (1 ML+3.25%) due 07/23/2021............................... 355,641 331,487 -----------
Principal Value Security Description Amount (Note 2) Aerospace/Defense-Equipment -- 0.2% TransDigm, Inc. FRS BTL-F 4.54% (1 ML+2.50%) due 06/09/2023..................... $ 810,096 $ 807,818 ---------- Airlines -- 0.4% WestJet Airlines, Ltd. FRS BTL-B coupon TBD due 08/06/2026..................... 1,430,000 1,439,704 ---------- Airport Development/Maintenance -- 0.3% 1199169 B.C. ULC FRS BTL-B2 6.10% (3 ML+4.00%) due 04/06/2026..................... 367,133 368,739 Dynasty Acquisition Co., Inc. FRS BTL-B1 6.10% (3 ML+4.00%) due 04/06/2026..................... 682,867 685,855 ---------- 1,054,594 ---------- Appliances -- 0.4% Global Appliance, Inc. FRS BTL-B 6.05% (1 ML+4.00%) due 09/29/2024..................... 1,334,000 1,327,330 ---------- Applications Software -- 0.3% SS&C European Holdings SARL FRS BTL-B4 4.29% (1 ML+2.25%) due 04/16/2025..................... 449,449 451,041 SS&C Technologies, Inc. FRS BTL-B3 4.29% (1 ML+2.25%) due 04/16/2025..................... 680,445 682,855 ---------- 1,133,896 ---------- Auto-Heavy Duty Trucks -- 0.4% Navistar, Inc. FRS BTL-B 5.53% (1 ML+3.50%) due 11/06/2024..................... 1,443,025 1,436,712 ---------- Auto/Truck Parts & Equipment-Original -- 1.2% Accuride Corp. FRS BTL 7.35% (3 ML+5.25%) due 11/17/2023..................... 1,163,600 977,424 DexKo Global, Inc. FRS BTL-B 5.54% (1 ML+3.50%) due 07/24/2024..................... 965,372 952,500 Panther BF Aggregator 2 LP FRS BTL-B 5.54% (1 ML+3.50%) due 04/30/2026..................... 910,000 900,900
59 AIG Flexible Credit Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 2) LOANS(7)(8)(9) (continued) Auto/Truck Parts & Equipment-Original (continued) Tenneco, Inc. FRS BTL-B 5.04% (1 ML+3.00%) due 10/01/2025....................... $1,617,775 $1,516,664 ---------- 4,347,488 ---------- Broadcast Services/Program -- 1.5% Diamond Sports Group LLC FRS BTL 5.30% (1 ML+3.25%) due 08/24/2026....................... 1,000,000 1,004,375 iHeartCommunications, Inc. FRS BTL 6.10% (1 ML+4.00%) due 05/01/2026....................... 466,195 469,012 Nexstar Broadcasting, Inc. FRS BTL-B4 4.81% (3 ML+2.75%) due 09/18/2026....................... 1,075,000 1,079,927 Nexstar Broadcasting, Inc. FRS BTL-B4 coupon TBD due 09/18/2026....................... 1,070,000 1,074,904 Univision Communications, Inc. FRS 1st Lein 4.79% (1 ML+2.75%) due 03/15/2024....................... 1,797,946 1,745,291 ---------- 5,373,509 ---------- Building & Construction Products-Misc. -- 0.9% AZEK Co. LLC FRS BTL 5.93% (3 ML+3.75%) due 05/05/2024....................... 3,109,664 3,098,002 ---------- Building Products-Cement -- 0.9% Quikrete Holdings, Inc. FRS 1st Lein 4.79% (1 ML+2.75%) due 11/15/2023....................... 1,011,136 1,006,502 Summit Materials LLC FRS BTL 4.04% (1 ML+2.00%) due 11/21/2024....................... 2,082,945 2,084,899 ---------- 3,091,401 ---------- Building-Heavy Construction -- 0.4% Brand Industrial Services, Inc. FRS BTL 6.35%-6.51% (3 ML+4.25%) due 06/21/2024....................... 776,375 755,671 Brand Industrial Services, Inc. FRS BTL 6.52% (2 ML+4.25%) due 06/21/2024....................... 684,988 666,721 ---------- 1,422,392 ----------
Principal Value Security Description Amount (Note 2) Cable/Satellite TV -- 0.5% CSC Holdings LLC FRS BTL 4.28% (1 ML+2.25%) due 01/15/2026.................................. $ 706,450 $ 705,125 Radiate Holdco LLC FRS BTL 5.04% (1 ML+3.00%) due 02/01/2024.................................. 908,142 903,602 ---------- 1,608,727 ---------- Casino Hotels -- 1.0% Caesars Resort Collection LLC FRS BTL-B 4.79% (1 ML+2.75%) due 12/23/2024.................................. 1,711,485 1,699,871 CityCenter Holdings LLC FRS BTL-B 4.29% (1 ML+2.25%) due 04/18/2024.................................. 1,307,666 1,309,767 Golden Nugget, Inc. FRS BTL-B 4.79% -4.81%(1 ML+2.75%) due 10/04/2023.................................. 585,874 584,246 ---------- 3,593,884 ---------- Casino Services -- 0.4% Gateway Casinos & Entertainment Ltd. FRS BTL 5.10% (3 ML+3.00%) due 03/13/2025.................................. 543,125 534,639 Stars Group Holdings FRS BTL 5.60% (3 ML+3.50%) due 07/10/2025.................................. 890,612 893,389 ---------- 1,428,028 ---------- Cellular Telecom -- 0.2% Altice France SA FRS BTL-B13 6.03% (1 ML+4.00%) due 08/14/2026.................................. 645,125 642,303 ---------- Chemicals-Diversified -- 0.4% Ascend Performance Materials Operations LLC FRS BTL-B 7.35% (3 ML+5.25%) due 08/27/2026.................................. 415,000 415,000 Hexion, Inc. FRS BTL 5.82% (3 ML+3.50%) due 07/01/2026.................................. 1,052,363 1,049,732 ---------- 1,464,732 ---------- Chemicals-Other -- 0.1% US Salt LLC FRS BTL-B 6.79% (1 ML+4.75%) due 01/16/2026.................................. 472,625 473,216 ----------
60 AIG Flexible Credit Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 2) LOANS(7)(8)(9) (continued) Chemicals-Specialty -- 0.7% Kraton Polymers LLC FRS BTL 4.54% (1 ML+2.50%) due 03/05/2025.......................... $ 298,202 $ 297,308 OMNOVA Solutions, Inc. FRS BTL-B2 5.29% (1 ML+3.25%) due 08/25/2023.......................... 1,350,317 1,350,317 Platform Specialty Products Corp. FRS BTL 4.29% (1 ML+2.25%) due 01/30/2026.......................... 898,213 900,738 ---------- 2,548,363 ---------- Commercial Services -- 0.6% Atlantic Aviation FBO, Inc. FRS BTL-B 5.80% (1 ML+3.75%) due 12/06/2025.......................... 223,313 224,708 CPI Acquisition, Inc. FRS 1st Lein 6.71% (3 ML+4.50%) due 08/17/2022.......................... 1,820,685 1,347,307 Fleet U.S. Bidco, Inc. FRS BTL-B coupon TBD due 10/07/2026.......................... 400,000 401,500 ---------- 1,973,515 ---------- Commercial Services-Finance -- 0.8% Financial & Risk US Holdings, Inc. FRS BTL 5.79% (1 ML+3.75%) due 10/01/2025.......................... 1,389,500 1,396,881 Trans Union LLC FRS BTL-B4 4.05% (1 ML+2.00%) due 06/19/2025.......................... 281,438 282,259 WEX, Inc. FRS BTL-B3 4.29% (1 ML+2.25%) due 05/15/2026.......................... 940,275 944,271 ---------- 2,623,411 ---------- Computer Services -- 0.6% DynCorp International, Inc. FRS BTL-B 8.03% (1 ML+6.00%) due 08/18/2025.......................... 560,000 546,000 Presidio LLC FRS BTL-B 4.79% (1 ML+2.75%) due 02/02/2024.......................... 14,831 14,849 Presidio LLC FRS BTL-B 4.85%-5.07% (3 ML+2.75%) due 02/02/2024.......................... 531,404 532,069
Principal Value Security Description Amount (Note 2) Computer Services (continued) Tempo Acquisition LLC FRS BTL-B 5.04% (1 ML+3.00%) due 05/01/2024.................... $ 962,838 $ 965,485 ---------- 2,058,403 ---------- Computer Software -- 1.0% Rackspace Hosting, Inc. FRS 1st Lien 5.29% (3 ML+3.00%) due 11/03/2023.................... 892,005 816,185 Vertafore, Inc. FRS 1st Lein 5.29% (1 ML+3.25%) due 07/02/2025.................... 2,858,400 2,775,506 ---------- 3,591,691 ---------- Computers-Integrated Systems -- 0.3% Everi Payments, Inc. FRS BTL-B 5.04% (1 ML+3.00%) due 05/09/2024.................... 1,100,596 1,100,981 ---------- Consulting Services -- 0.5% AlixPartners LLP FRS BTL 4.79% (1 ML+2.75%) due 04/04/2024.................... 1,688,129 1,688,731 ---------- Consumer Products-Misc. -- 0.2% Edgewell Personal Care Co. FRS BTL-B coupon TBD due 09/19/2026.................... 830,000 821,700 ---------- Containers-Metal/Glass -- 0.9% Anchor Glass Container Corp. FRS 1st Lien 4.79%-4.81% (1 ML+2.75%) due 12/07/2023.................... 575,787 451,993 Anchor Glass Container Corp. FRS 2nd Lien 9.81% (1 ML+7.75%) due 12/07/2024.................... 796,000 398,000 Berlin Packaging LLC FRS 1st Lein 5.05%-5.11% (1 ML+3.00%) due 11/07/2025.................... 974,172 955,906 Berlin Packaging LLC FRS 1st Lein 5.11% (3 ML+3.00%) due 11/07/2025.................... 18,266 17,923 BWAY Corp. FRS BTL 5.59% (3 ML+3.25%) due 04/03/2024.................... 1,241,425 1,214,527 ---------- 3,038,349 ----------
61 AIG Flexible Credit Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 2) LOANS(7)(8)(9) (continued) Containers-Paper/Plastic -- 1.5% Berry Global, Inc. FRS BTL-U 4.55% (1 ML+2.50%) due 07/01/2026............................. $ 852,863 $ 856,449 Kloeckner Pentaplast of America, Inc. FRS BTL 6.29% (1 ML+4.25%) due 06/30/2022............................. 1,930,600 1,666,750 LABL, Inc. FRS BTL 6.60% (1 ML+4.50%) due 07/01/2026............................. 530,000 531,590 Patriot Container Corp. FRS 1st Lein 5.54% (1 ML+3.50%) due 03/20/2025............................. 379,225 375,907 Reynolds Group Holdings, Inc. FRS BTL 4.79% (1 ML+2.75%) due 02/05/2023............................. 1,095,217 1,096,072 Trident TPI Holdings, Inc. FRS BTL-B1 5.29% (1 ML+3.25%) due 10/17/2024............................. 614,740 592,199 ---------- 5,118,967 ---------- Cosmetics & Toiletries -- 0.6% Parfums Holding Co., Inc. FRS 1st Lien 6.37% (3 ML+4.25%) due 06/30/2024............................. 1,099,981 1,093,565 Revlon Consumer Products Corp. FRS BTL-B 5.60% (1 ML+3.50%) due 09/07/2023............................. 2,077 1,577 Revlon Consumer Products Corp. FRS BTL-B 5.62% (3 ML+3.50%) due 09/07/2023............................. 803,726 610,330 Sunshine Luxembourg VII SARL FRS BTL coupon TBD due 10/01/2026............................. 535,000 537,006 ---------- 2,242,478 ---------- Data Processing/Management -- 0.3% Dun & Bradstreet Corp. FRS BTL 7.05% (1 ML+5.00%) due 02/06/2026............................. 955,000 960,969 ---------- Diagnostic Kits -- 0.5% Ortho-Clinical Diagnostics SA FRS BTL 5.56% (3 ML+3.25%) due 06/30/2025............................. 1,659,245 1,602,208 ----------
Principal Value Security Description Amount (Note 2) Direct Marketing -- 0.3% Red Ventures LLC FRS BTL-B1 5.04% (1 ML+3.00%) due 11/08/2024................................... $1,086,420 $1,089,815 ---------- Disposable Medical Products -- 0.4% Sotera Health Holdings LLC FRS BTL 5.04% (1 ML+3.00%) due 05/15/2022................................... 652,850 643,465 Sotera Health Holdings LLC FRS BTL 5.57% (1 ML+3.50%) due 05/15/2022................................... 902,738 898,788 ---------- 1,542,253 ---------- Distribution/Wholesale -- 1.1% American Builders & Contractors Supply Co., Inc. FRS BTL-B2 4.04% (1 ML+2.00%) due 10/31/2023................................... 2,439,867 2,436,512 Spin Holdco, Inc. FRS BTL-B1 5.57% (3 ML+3.25%) due 11/14/2022................................... 625,129 613,017 Univar USA, Inc. FRS BTL-B3 4.29% (1 ML+2.25%) due 07/01/2024................................... 645,589 646,972 ---------- 3,696,501 ---------- Diversified Minerals -- 0.2% Covia Holdings Corp. FRS BTL 6.31% (3 ML+4.00%) due 06/01/2025................................... 932,220 756,962 ---------- E-Commerce/Products -- 0.3% Rodan & Fields LLC FRS BTL 6.03% (1 ML+4.00%) due 06/16/2025................................... 1,135,625 953,925 ---------- E-Commerce/Services -- 0.4% Hoya Midco LLC FRS 1st Lein 5.54% (1 ML+3.50%) due 06/30/2024................................... 1,468,550 1,444,686 ---------- Electric-Generation -- 0.5% APLP Holdings LP FRS BTL-B 4.79% (1 ML+2.75%) due 04/13/2023................................... 811,429 810,414 TEX Operations Co., Ltd. FRS BTL 4.04% (1 ML+2.00%) due 08/04/2023................................... 521,521 523,151
62 AIG Flexible Credit Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 2) LOANS(7)(8)(9) (continued) Electric-Generation (continued) Vistra Operations Co. LLC FRS BTL 4.02%-4.04% (1 ML+2.00%) due 12/31/2025........................ $ 537,950 $ 539,211 ---------- 1,872,776 ---------- Electric-Integrated -- 0.3% Talen Energy Supply LLC FRS BTL-B 5.79% (1 ML+3.75%) due 07/08/2026........................ 915,000 911,569 ---------- Enterprise Software/Service -- 1.7% Air Newco LLC FRS BTL-B coupon TBD due 10/09/2026........................ 465,000 460,350 APi Group De, Inc. FRS BTL-B coupon TBD due 10/01/2026........................ 440,000 441,100 Applied Systems, Inc. FRS 1st Lein 5.10% (3 ML+3.00%) due 09/19/2024........................ 295,188 294,713 Applied Systems, Inc. FRS 2nd Lien 9.10% (3 ML+7.00%) due 09/19/2025........................ 205,000 206,922 Banff Merger Sub, Inc. FRS BTL 6.29% (1 ML+4.25%) due 10/02/2025........................ 2,103,267 2,023,408 Kronos, Inc. FRS 1st Lien 5.25% (3 ML+3.00%) due 11/01/2023........................ 2,167,849 2,171,914 Kronos, Inc. FRS 2nd Lien 10.50% (3 ML+8.25%) due 11/01/2024........................ 440,000 445,775 ---------- 6,044,182 ---------- Finance-Auto Loans -- 0.4% Capital Automotive LP FRS 1st Lein 4.55% (1 ML+2.50%) due 03/24/2024........................ 696,167 696,167 Capital Automotive LP FRS 2nd Lien 8.04% (1 ML+6.00%) due 03/24/2025........................ 657,272 658,093 ---------- 1,354,260 ---------- Finance-Credit Card -- 1.2% Blackhawk Network Holdings, Inc. FRS 1st Lien 5.04% (1 ML+3.00%) due 06/15/2025........................ 1,482,631 1,476,452
Principal Value Security Description Amount (Note 2) Finance-Credit Card (continued) Pi US Mergerco, Inc. FRS BTL-B1 5.29% (1 ML+3.25%) due 01/03/2025.......................... $2,669,855 $2,652,335 ---------- 4,128,787 ---------- Finance-Mortgage Loan/Banker -- 0.6% Ellie Mae, Inc. FRS BTL 6.04% (1 ML+4.00%) due 04/17/2026.......................... 1,240,000 1,240,517 Walter Investment Management Corp. FRS BTL-B 8.52% due 06/30/2022+(2)(3)(4).......... 2,121,593 835,908 ---------- 2,076,425 ---------- Food-Baking -- 0.3% Hostess Brands LLC FRS BTL-B 4.29% (1 ML+2.25%) due 08/03/2022.......................... 316,961 316,565 Hostess Brands LLC FRS BTL-B 4.37%-4.51% (3 ML+2.25%) due 08/03/2022.......................... 714,611 713,718 ---------- 1,030,283 ---------- Food-Catering -- 0.4% TKC Holdings, Inc. FRS 1st Lein 5.80% (1 ML+3.75%) due 02/01/2023.......................... 1,295,629 1,270,796 ---------- Food-Confectionery -- 0.5% Shearer's Foods LLC FRS BTL-B coupon TBD due 03/30/2022.......................... 1,270,000 1,265,631 Shearer's Foods LLC FRS 2nd Lien coupon TBD due 06/30/2022.......................... 500,000 495,625 ---------- 1,761,256 ---------- Food-Dairy Products -- 0.5% Chobani LLC FRS 1st Lein 5.54% (1 ML+3.50%) due 10/10/2023.......................... 715,575 707,824 Milk Specialties Co. FRS BTL 6.04% (1 ML+4.00%) due 08/16/2023.......................... 976,617 937,552 ---------- 1,645,376 ---------- Food-Flour & Grain -- 0.3% CHG PPC Parent LLC FRS BTL-B 4.79% (1 ML+2.75%) due 03/31/2025.......................... 1,145,899 1,143,034 ----------
63 AIG Flexible Credit Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 2) LOANS(7)(8)(9) (continued) Food-Meat Products -- 0.4% JBS USA LUX SA FRS BTL-B 4.55% (1 ML+2.50%) due 05/01/2026........................... $1,328,325 $1,334,136 ---------- Food-Misc./Diversified -- 0.7% Dole Food Co., Inc. FRS BTL-B 4.79%-4.80% (1 ML+2.75%) due 04/06/2024........................... 342,508 337,884 H-Food Holdings LLC FRS 1st Lien 5.73% (1 ML+3.69%) due 05/23/2025........................... 967,750 904,846 Sigma Bidco BV FRS BTL-B2 5.32% (3 ML+3.00%) due 07/02/2025........................... 1,218,066 1,211,468 ---------- 2,454,198 ---------- Food-Retail -- 0.2% Albertson's LLC FRS BTL-B7 4.79% (1 ML+2.75%) due 11/17/2025........................... 539,680 542,800 Albertson's LLC FRS BTL-B 4.79% (1 ML+2.75%) due 08/17/2026........................... 272,289 273,820 ---------- 816,620 ---------- Food-Wholesale/Distribution -- 0.3% Sage BorrowCo LLC FRS BTL-B 6.85% (3 ML+4.75%) due 06/20/2026........................... 498,750 500,309 US Foods, Inc. FRS BTL-B coupon TBD due 09/13/2026........................... 445,000 446,321 ---------- 946,630 ---------- Gambling (Non-Hotel) -- 0.6% PCI Gaming Authority FRS BTL 5.04% (1 ML+3.00%) due 05/29/2026........................... 1,142,138 1,146,706 Scientific Games International, Inc. FRS BTL-B5 4.79% (1 ML+2.75%) due 08/14/2024........................... 179,180 177,484 Scientific Games International, Inc. FRS BTL-B5 4.90% (2 ML+2.75%) due 08/14/2024........................... 741,795 734,775 ---------- 2,058,965 ----------
Principal Value Security Description Amount (Note 2) Hazardous Waste Disposal -- 0.3% GFL Environmental, Inc. FRS BTL 5.04% (1 ML+3.00%) due 05/30/2025................................ $1,128,571 $1,117,568 ---------- Hotels/Motels -- 0.4% Playa Resorts Holding BV FRS BTL 4.79% (1 ML+2.75%) due 04/29/2024................................ 1,342,776 1,302,493 ---------- Housewares -- 0.4% American Greetings Corp. FRS BTL 6.54% (1 ML+4.50%) due 04/06/2024................................ 647,060 643,016 Libbey Glass, Inc. FRS BTL 5.04% (1 ML+3.00%) due 04/09/2021................................ 856,718 654,318 ---------- 1,297,334 ---------- Human Resources -- 0.3% CHG Healthcare Services, Inc. FRS 1st Lien 5.04% (1 ML+3.00%) due 06/07/2023................................ 877,636 875,003 ---------- Independent Power Producers -- 0.3% Calpine Corp. FRS BTL-B1 4.86% (3 ML+2.75%) due 04/05/2026................................ 1,201,988 1,205,494 ---------- Insurance-Property/Casualty -- 0.7% Sedgwick Claims Management Services, Inc. FRS BTL 5.29% (1 ML+3.25%) due 12/31/2025................................ 2,547,491 2,504,821 ---------- Internet Gambling -- 0.2% GVC Holdings PLC FRS BTL-B2 4.45% (6 ML+2.25%) due 03/29/2024................................ 743,675 743,907 ---------- Machinery-Electrical -- 0.7% Brookfield WEC Holdings, Inc. FRS 1st Lien 5.54% (1 ML+3.50%) due 08/01/2025................................ 1,614,483 1,618,116 Vertiv Group Corp. FRS BTL-B 6.04% (1 ML+4.00%) due 11/30/2023................................ 1,010,000 958,659 ---------- 2,576,775 ---------- Machinery-General Industrial -- 0.7% Gardner Denver, Inc. FRS BTL-B 4.79% (1 ML+2.75%) due 07/30/2024................................ 1,422,128 1,425,264
64 AIG Flexible Credit Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 2) LOANS(7)(8)(9) (continued) Machinery-General Industrial (continued) Zodiac Pool Solutions LLC FRS BTL 4.29% (1 ML+2.25%) due 07/02/2025................. $1,146,793 $1,147,151 ---------- 2,572,415 ---------- Machinery-Pumps -- 0.7% NN, Inc. FRS BTL 5.30% (1 ML+3.25%) due 04/02/2021................. 508,500 499,601 NN, Inc. FRS BTL-B 5.79% (1 ML+3.75%) due 10/19/2022................. 703,342 691,034 Titan Acquisition, Ltd. FRS BTL 5.04% (1 ML+3.00%) due 03/28/2025................. 1,121,507 1,073,375 ---------- 2,264,010 ---------- Medical Information Systems -- 0.9% Emerald TopCo, Inc. FRS BTL 5.54% (1 ML+3.50%) due 07/24/2026................. 530,000 527,681 IQVIA, Inc. FRS BTL-B 3.85% (3 ML+1.75%) due 06/11/2025................. 1,283,750 1,284,954 Navicure, Inc. FRS BTL-B coupon TBD due 09/18/2026................. 305,000 303,475 Zelis Healthcare Corp. FRS BTL-B coupon TBD due 09/30/2026................. 1,105,000 1,095,332 ---------- 3,211,442 ---------- Medical Labs & Testing Services -- 0.8% Envision Healthcare Corp. FRS 1st Lien 5.79% (1 ML+3.75%) due 10/10/2025................. 1,942,986 1,582,723 Explorer Holdings, Inc. FRS BTL 3.75% (3 ML+3.75%) due 05/02/2023................. 258,977 258,653 Jaguar Holding Co. II FRS BTL 4.54% (1 ML+2.50%) due 08/18/2022................. 874,849 875,506 ---------- 2,716,882 ----------
Principal Value Security Description Amount (Note 2) Medical Products -- 0.1% Greatbatch, Ltd. FRS BTL-B 5.05% (1 ML+3.00%) due 10/27/2022................................ $ 387,980 $ 389,193 ---------- Medical-Biomedical/Gene -- 0.0% Aldevron LLC FRS BTL-B coupon TBD due 09/19/2026................................ 130,000 130,325 ---------- Medical-Drugs -- 0.3% Bausch Health Americas, Inc. FRS BTL 5.04% (1 ML+3.00%) due 06/02/2025................................ 925,177 928,481 ---------- Medical-Generic Drugs -- 0.3% Amneal Pharmaceuticals LLC FRS BTL-B 5.56% (1 ML+3.50%) due 05/04/2025................................ 1,051,441 893,725 ---------- Medical-Hospitals -- 1.3% Accelerated Health Systems LLC FRS BTL 5.54% (1 ML+3.50%) due 10/31/2025................................ 878,362 878,362 AHP Health Partners, Inc. FRS BTL 6.54% (1 ML+4.50%) due 06/30/2025................................ 992,438 993,988 RegionalCare Hospital Partners Holdings, Inc. FRS BTL-B 6.55% (1 ML+4.50%) due 11/17/2025................................ 1,121,525 1,121,875 Select Medical Corp. FRS BTL-B 4.54% (1 ML+2.50%) due 03/06/2025................................ 702 702 Select Medical Corp. FRS BTL-B 4.58% (3 ML+2.50%) due 03/06/2025................................ 859,423 858,886 Surgery Center Holdings, Inc. FRS BTL 5.30% (1 ML+3.25%) due 09/02/2024................................ 720,300 702,968 ---------- 4,556,781 ---------- Medical-Outpatient/Home Medical -- 0.3% 21st Century Oncology, Inc. FRS BTL-B 8.46% (3 ML+6.13%) due 01/16/2023................................ 356,685 316,113 Gentiva Health Services, Inc. FRS BTL-B 5.81% (1 ML+3.75%) due 07/02/2025................................ 528,665 531,308
65 AIG Flexible Credit Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 2) LOANS(7)(8)(9) (continued) Medical-Outpatient/Home Medical (continued) National Mentor Holdings, Inc. FRS 1st Lien 6.30% (1 ML+4.25%) due 03/09/2026...................... $ 215,467 $ 215,378 National Mentor Holdings, Inc. FRS BTL-C 6.30% (1 ML+4.25%) due 03/09/2026...................... 13,450 13,444 ---------- 1,076,243 ---------- Metal Processors & Fabrication -- 0.5% Crosby US Acquisition Corp. FRS BTL-B 6.80% (1 ML+4.75%) due 06/26/2026...................... 798,000 779,047 Sabre Industries, Inc. FRS BTL 6.31% (1 ML+4.25%) due 04/15/2026...................... 1,032,413 1,034,994 ---------- 1,814,041 ---------- Motion Pictures & Services -- 0.3% Delta 2 Lux SARL FRS BTL-B3 4.54% (1 ML+2.50%) due 02/01/2024...................... 1,114,690 1,099,363 ---------- Non-Hazardous Waste Disposal -- 0.2% Tunnel Hill Partners LP FRS BTL-B 5.54% (1 ML+3.50%) due 02/06/2026...................... 756,200 751,474 ---------- Oil & Gas Drilling -- 0.1% Paragon Offshore Finance Co. Escrow Loans 7.25% due 07/18/2021+(4)............ 1,745 0 Seadrill Operating LP FRS BTL 8.10% (3 ML+6.00%) due 02/21/2021...................... 752,119 417,802 ---------- 417,802 ---------- Oil Companies-Exploration & Production -- 0.7% California Resources Corp. FRS BTL 6.79% (1 ML+4.75%) due 12/31/2022...................... 650,000 582,156 Fieldwood Energy LLC FRS 1st Lien 7.51% (3 ML+5.25%) due 04/11/2022...................... 1,085,382 934,786 Fieldwood Energy LLC FRS 2nd Lien 9.51% (3 ML+7.25%) due 04/11/2023...................... 128,766 94,643 Gavilan Resources LLC FRS 2nd Lien 8.04% (1 ML+6.00%) due 03/01/2024...................... 470,000 202,100
Principal Value Security Description Amount (Note 2) Oil Companies-Exploration & Production (continued) Ultra Resources, Inc. FRS BTL 6.05% (1 ML+3.75%) due 04/12/2024(10)....................... $ 702,399 $ 462,179 ---------- 2,275,864 ---------- Oil Refining & Marketing -- 0.4% Citgo Holding, Inc. FRS BTL 9.04% (1 ML+7.00%) due 08/01/2023........................... 265,000 269,637 CITGO Petroleum Corp. FRS BTL-B 7.10% (3 ML+5.00%) due 03/28/2024........................... 1,044,750 1,047,362 ---------- 1,316,999 ---------- Oil-Field Services -- 0.7% McDermott Technology Americas, Inc. FRS BTL 7.10% (3 ML+5.00%) due 05/09/2025........................... 2,015,073 1,272,295 MRC Global US, Inc. FRS BTL 5.04% (1 ML+3.00%) due 09/20/2024........................... 1,325,629 1,323,972 ---------- 2,596,267 ---------- Paper & Related Products -- 0.1% Clearwater Paper Corp. FRS BTL-B 5.31% (3 ML+3.25%) due 07/26/2026........................... 250,000 250,625 ---------- Pharmacy Services -- 0.4% Change Healthcare Holdings LLC FRS BTL 4.54% (1 ML+2.50%) due 03/01/2024........................... 1,278,118 1,271,128 ---------- Pipelines -- 0.5% Medallion Midland Acquisition LLC FRS BTL 5.29% (1 ML+3.25%) due 10/30/2024........................... 1,242,518 1,204,208 Traverse Midstream Partners LLC FRS BTL 6.05% (1 ML+4.00%) due 09/27/2024........................... 650,589 570,892 ---------- 1,775,100 ---------- Pollution Control -- 0.1% Filtration Group Corp. FRS BTL 5.04% (1 ML+3.00%) due 03/29/2025........................... 388,597 389,326 ----------
66 AIG Flexible Credit Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 2) LOANS(7)(8)(9) (continued) Printing-Commercial -- 0.3% Fort Dearborn Holding Co., Inc. FRS 1st Lien 6.10% (1 ML+4.00%) due 10/19/2023................................. $ 30,876 $ 30,259 Fort Dearborn Holding Co., Inc. FRS 1st Lien 6.31% (3 ML+4.00%) due 10/19/2023................................. 1,090,068 1,068,266 ---------- 1,098,525 ---------- Professional Sports -- 0.6% UFC Holdings LLC FRS BTL 5.30% (1 ML+3.25%) due 04/29/2026................................. 2,034,558 2,039,645 ---------- Publishing-Books -- 0.2% McGraw-Hill Global Education Holdings LLC FRS BTL-B 6.04% (1 ML+4.00%) due 05/04/2022................................. 844,196 786,157 ---------- Publishing-Periodicals -- 0.2% Meredith Corp. FRS BTL-B1 4.79% (1 ML+2.75%) due 01/31/2025................................. 526,651 527,310 ---------- Real Estate Investment Trusts -- 0.6% iStar, Inc. FRS BTL 4.81% (1 ML+2.75%) due 06/28/2023................................. 1,426,938 1,430,505 Uniti Group, Inc. FRS BTL 7.04% (1 ML+5.00%) due 10/24/2022................................. 753,687 733,903 ---------- 2,164,408 ---------- Real Estate Operations & Development -- 0.1% Lightstone Holdco LLC FRS BTL-B 5.79% (1 ML+3.75%) due 01/30/2024................................. 463,045 442,787 Lightstone Holdco LLC FRS BTL-C 5.79% (1 ML+3.75%) due 01/30/2024................................. 26,117 24,974 ---------- 467,761 ---------- Recycling -- 0.1% Gopher Resource LLC FRS BTL 5.29% (1 ML+3.25%) due 03/06/2025................................. 252,380 247,964 ---------- Research & Development -- 0.1% PAREXEL International Corp. FRS BTL 4.79% (1 ML+2.75%) due 09/27/2024................................. 203,124 192,612 ----------
Principal Value Security Description Amount (Note 2) Retail-Arts & Crafts -- 0.2% Michaels Stores, Inc. FRS BTL 4.54%-4.55% (1 ML+2.50%) due 01/30/2023............................. $ 735,000 $ 717,544 ---------- Retail-Bedding -- 0.2% Serta Simmons Bedding LLC FRS 1st Lien 5.54%-5.56% (1 ML+3.50%) due 11/08/2023............................. 955,500 586,040 ---------- Retail-Building Products -- 0.3% SiteOne Landscape Supply Holding LLC FRS BTL-E 4.80% (1 ML+2.75%) due 10/29/2024............................. 887,267 887,267 ---------- Retail-Major Department Stores -- 0.3% Neiman Marcus Group, Ltd. LLC FRS BTL 8.06% (1 ML+6.00%) due 10/25/2023............................. 1,197,994 915,468 ---------- Retail-Pet Food & Supplies -- 0.1% PetSmart, Inc. FRS BTL-B2 6.04% (1 ML+4.00%) due 03/11/2022............................. 473,678 461,639 ---------- Retail-Sporting Goods -- 0.4% Bass Pro Group LLC FRS BTL 7.04% (1 ML+5.00%) due 09/25/2024............................. 1,496,579 1,439,053 ---------- Retail-Vitamins & Nutrition Supplements -- 0.2% Isagenix International LLC FRS BTL 7.85% (3 ML+5.75%) due 06/14/2025............................. 895,057 675,768 ---------- Rubber/Plastic Products -- 0.8% Gates Global LLC FRS BTL-B2 4.79% (1 ML+2.75%) due 04/01/2024............................. 1,901,688 1,873,163 U.S. Farathane LLC FRS BLT-B4 5.54% (1 ML+3.50%) due 12/23/2021............................. 962,123 904,395 ---------- 2,777,558 ---------- Security Services -- 0.5% Prime Security Services Borrower, LLC FRS BTL-B1 coupon TBD due 09/23/2026............................. 1,860,000 1,837,414 ---------- Soap & Cleaning Preparation -- 0.7% Diamond BC BV FRS BTL 5.26% (3 ML+3.00%) due 09/06/2024............................. 1,085,663 1,032,736
67 AIG Flexible Credit Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 2) LOANS(7)(8)(9) (continued) Soap & Cleaning Preparation (continued) KIK Custom Products, Inc. FRS BTL 6.26% (3 ML+4.00%) due 05/15/2023............................ $ 809,167 $ 765,674 Zep, Inc. FRS 1st Lein 6.10% (3 ML+4.00%) due 08/12/2024............................ 749,700 582,892 ---------- 2,381,302 ---------- Telecom Services -- 0.8% Securus Technologies Holdings LLC FRS 1st Lien 6.54% (3 ML+4.50%) due 11/01/2024............................ 560,467 496,364 Securus Technologies Holdings LLC FRS 2nd Lien 10.29% (1 ML+8.25%) due 11/01/2025............................ 505,000 441,875 Telenet Financing USD LLC FRS BTL-AN 4.28% (1 ML+2.25%) due 08/15/2026............................ 1,125,000 1,125,234 West Corp. FRS BTL-B 6.04% (1 ML+4.00%) due 10/10/2024............................ 678,889 603,646 ---------- 2,667,119 ---------- Telecommunication Equipment -- 0.2% CommScope, Inc. FRS BTL-B 5.29% (1 ML+3.25%) due 04/06/2026............................ 630,000 627,113 ---------- Telephone-Integrated -- 0.1% Consolidated Communications, Inc. FRS BTL-B 5.05% (1 ML+3.00%) due 10/04/2023............................ 354,092 338,158 ---------- Theaters -- 0.7% CDS U.S. Intermediate Holdings, Inc. FRS BTL-B 5.85% (3 ML+3.75%) due 07/08/2022............................ 1,214,795 1,148,741 Cineworld, Ltd. FRS BTL 4.29% (1 ML+2.25%) due 02/28/2025............................ 1,180,816 1,173,140 ---------- 2,321,881 ---------- Veterinary Diagnostics -- 0.3% NVA Holdings, Inc. FRS BTL-B3 4.79% (1 ML+2.75%) due 02/02/2025............................ 1,024,452 1,023,491
Principal Amount/ Value Security Description Shares (Note 2) Veterinary Diagnostics (continued) NVA Holdings, Inc. FRS BTL-B4 5.54% (1 ML+3.50%) due 02/02/2025............................... $ 74,813 $ 74,719 ------------ 1,098,210 ------------ Vitamins & Nutrition Products -- 0.1% HLF Financing SARL LLC FRS BTL-B 5.29% (1 ML+3.25%) due 08/18/2025............................... 297,000 296,894 ------------ Total Loans (cost $183,404,415).......................... 176,253,615 ------------ FOREIGN GOVERNMENT OBLIGATIONS -- 0.2% Sovereign -- 0.2% Arab Republic of Egypt Senior Notes 7.60% due 03/01/2029*........................ 305,000 322,739 Republic of Turkey Senior Notes 6.35% due 08/10/2024......................... 255,000 259,539 Republic of Turkey Senior Notes 7.38% due 02/05/2025......................... 230,000 244,290 ------------ Total Foreign Government Obligations (cost $808,206).............................. 826,568 ------------ COMMON STOCKS -- 0.2% Advertising Sales -- 0.0% Clear Channel Outdoor Holdings, Inc.+......... 56,198 141,619 ------------ Electric-Generation -- 0.0% Vistra Energy Corp. CVR+(11).................. 27,942 24,030 ------------ Radio -- 0.0% iHeartMedia, Inc., Class A+................... 2,196 32,940 iHeartMedia, Inc., Class B+(11)............... 29 435 ------------ 33,375 ------------ Television -- 0.2% ION Media Networks, Inc.+(4)(11).............. 660 509,850 ------------ Total Common Stocks (cost $317,650).............................. 708,874 ------------ EXCHANGE-TRADED FUNDS -- 0.9% iShares iBoxx $ High Yield Corporate Bond ETF. 17,225 1,501,503 SPDR Bloomberg Barclays High Yield Bond ETF... 14,216 1,545,848 ------------ Total Exchange-Traded Funds (cost $3,041,442)............................ 3,047,351 ------------ PREFERRED SECURITIES -- 0.2% Diversified Banking Institutions -- 0.2% GMAC Capital Trust I FRS Series 2 7.94% (3 ML+5.79%) (cost $770,413).............................. 30,000 786,300 ------------
68 AIG Flexible Credit Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued)
Principal Amount/ Value Security Description Shares (Note 2) PREFERRED SECURITIES/CAPITAL SECURITIES -- 0.4% Banks-Super Regional -- 0.3% KeyCorp. Series D 5.00% due 09/15/2026(12)................... $ 880,000 $ 909,700 ------------ Insurance-Multi-line -- 0.1% Voya Financial, Inc. 5.65% due 05/15/2053....................... 460,000 485,098 ------------ Total Preferred Securities/Capital Securities (cost $1,355,371).......................... 1,394,798 ------------ WARRANTS -- 0.1% Diversified Banking Institutions -- 0.1% iHeartMedia, Inc. Expires 05/01/2039+ (cost $357,621)............................ 21,674 314,273 ------------ Total Long-Term Investment Securities (cost $350,073,620)........................ 340,739,668 ------------ SHORT-TERM INVESTMENT SECURITIES -- 4.7% Registered Investment Companies -- 2.7% State Street Institutional U.S. Government Money Market Fund, Premier Class 1.88%(13).................................. 9,517,887 9,517,887 ------------ U.S. Government Treasuries -- 2.0% United States Treasury Bills 2.41% due 10/24/2019....................... $7,000,000 6,991,983 ------------ Total Short-Term Investment Securities (cost $16,507,242)......................... 16,509,870 ------------ TOTAL INVESTMENTS (cost $366,580,862)(14).................... 102.7% 357,249,538 Liabilities in excess of other assets......... (2.7) (9,514,594) ---------- ------------ NET ASSETS 100.0% $347,734,944 ========== ============
-------- * Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. The Fund has no right to demand registration of these securities. At September 30, 2019, the aggregate value of these securities was $105,266,803 representing 30.3% of net assets. + Non-income producing security (1) PIK ("Payment-in-Kind") security--Income may be paid in additional securities or cash at the discretion of the issuer. The security is currently paying interest in cash at the coupon rate listed. (2) Security in default of interest. (3) Company has filed for bankruptcy protection. (4) Securities classified as Level 3 (see Note 2). (5) Security in default of interest and principal at maturity. (6) PIK ("Payment-in-Kind") security--Income may be paid in additional securities or cash at the discretion of the issuer. The security is currently paying interest in the form of additional securities at the coupon rate listed. (7) Senior loans in the Fund are generally subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a borrower to prepay, prepayments may occur. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. (8) The Fund invests in senior loans which generally pay interest at rates which are periodically re-determined by reference to a base lending rate plus a premium. These base lending rates are generally either the lending rate offered by one or more major European banks, such as the London Inter-Bank Offered Rate ("LIBOR") or the prime rate offered by one or more major United States banks, or the certificate of deposit rate. Senior loans are generally considered to be restrictive in that the Fund is ordinarily contractually obligated to receive approval from the Agent Bank and/or borrower prior to the disposition of a senior loan. (9) All loans in the Fund were purchased through assignment agreements unless otherwise indicated. (10) PIK ("Payment-in-Kind") security--Income may be paid in additional securities or cash at the discretion of the issuer. The security is currently paying interest in cash at 5.80%. The security is also currently paying interest in the form of additional loans at 0.25%. (11) Denotes a restricted security that: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933, as amended (the "1933 Act"); (b) is subject to a contractual restriction on public sales; or (c) is otherwise subject to a restriction on sales by operation of applicable law. Restricted securities are valued pursuant to Note 2. Certain restricted securities held by the Fund may not be sold except in exempt transactions or in a public offering registered under the 1933 Act. The Fund has no right to demand registration of these securities. The risk of investing in certain restricted securities is greater than the risk of investing in the securities of widely held, publicly traded companies. To the extent applicable, lack of a secondary market and resale restrictions may result in the inability of a Fund to sell a security at a fair price and may substantially delay the sale of the security. In addition, certain restricted securities may exhibit greater price volatility than securities for which secondary markets exist. As of September 30, 2019, the Fund held the following restricted securities:
Value % of Acquisition Acquisition Per Net Description Date Shares Cost Value Share Assets ----------- ----------- ------ ----------- -------- ------- ------ Common Stocks iHeartMedia, Inc., Class B............ 05/07/2019 29 $522 $ 435 $ 15.00 0.00% ION Media Networks, Inc................ 12/21/2016 660 7 509,850 772.50 0.14 Vistra Energy Corp. CVR................ 10/06/2016 27,942 0 24,030 0.86 0.01 -------- ---- $534,315 0.15% ======== ====
(12) Perpetual maturity--maturity date reflects the next call date. (13) The rate shown is the 7-day yield as of September 30, 2019. (14) See Note 5 for cost of investments on a tax basis. BTL --Bank Term Loan CVR --Contingent Value Rights ETF --Exchange-Traded Fund TBD --Senior loan purchased on a when-issued or delayed-delivery basis. Certain details associated with this purchase are not known prior to the settlement date of the transaction. In addition, senior loans typically trade without accrued interest and therefore a coupon rate is not available prior to the settlement. FRS --Floating Rate Security The rates shown on FRS are the current interest rates at September 30, 2019 and unless noted otherwise, the dates shown are the original maturity dates. 69 AIG Flexible Credit Fund PORTFOLIO OF INVESTMENTS -- September 30, 2019 -- (unaudited) (continued) Index Legend 1 ML -- 1 Month USD Libor 2 ML -- 2 Month USD Libor 3 ML -- 3 Month USD Libor 6 ML -- 6 Month USD Libor The following is a summary of the inputs used to value the Fund's net assets as of September 30, 2019 (see Note 2):
Level 1 -- Unadjusted Level 2 -- Other Level 3 -- Significant Quoted Prices Observable Inputs Unobservable Inputs Total --------------------- ----------------- ---------------------- ------------ ASSETS: Investments at Value:* Asset Backed Securities................. $ -- $ 367,139 $ -- $ 367,139 U.S. Corporate Bonds & Notes: Rubber/Plastic Products............... -- -- 0 0 Other Industries...................... -- 127,873,053 -- 127,873,053 Foreign Corporate Bonds & Notes: Special Purpose Entity................ -- -- 0 0 Other Industries...................... -- 29,167,697 -- 29,167,697 Loans: Finance-Mortgage Loan/Banker.......... -- 1,240,517 835,908 2,076,425 Oil & Gas Drilling.................... -- 417,802 0 417,802 Other Industries...................... -- 173,759,388 -- 173,759,388 Foreign Government Obligations.......... -- 826,568 -- 826,568 Common Stocks: Advertising Sales..................... 141,619 -- -- 141,619 Electric-Generation................... -- 24,030 -- 24,030 Radio................................. 32,940 435 -- 33,375 Television............................ -- -- 509,850 509,850 Exchange-Traded Funds................... 3,047,351 -- -- 3,047,351 Preferred Securities.................... 786,300 -- -- 786,300 Preferred Securities/Capital Securities. -- 1,394,798 -- 1,394,798 Warrants................................ -- 314,273 -- 314,273 Short-Term Investment Securities: Registered Investment Companies....... 9,517,887 -- -- 9,517,887 U.S. Government Treasuries............ -- 6,991,983 -- 6,991,983 ----------- ------------ ---------- ------------ Total Investments at Value.............. $13,526,097 $342,377,683 $1,345,758 $357,249,538 =========== ============ ========== ============
-------- * For a detailed presentation of investments, please refer to the Portfolio of Investments. At the beginning and end of the reporting period, Level 3 investments in securities were not considered a material portion of the Fund. There were no material Level 3 transfers during the reporting period. See Notes to Financial Statements 70 SunAmerica Income Funds NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited) Note 1. Organization The SunAmerica Income Funds (the "Trust") is a diversified open-end management investment company organized as a Massachusetts business trust. The Trust currently consists of three different series (each, a "Fund" and collectively, the "Funds"). Each Fund is a separate series of the Trust with distinct investment objectives and/or strategies. Each Fund is managed by SunAmerica Asset Management, LLC (the "Adviser" or "SunAmerica"), an indirect wholly-owned subsidiary of American International Group, Inc. ("AIG"). An investor may invest in one or more of the following Funds: AIG U.S. Government Securities Fund ("U.S. Government Securities Fund"), AIG Strategic Bond Fund ("Strategic Bond Fund"), and AIG Flexible Credit Fund ("Flexible Credit Fund"). The Funds are considered to be separate entities for financial and tax reporting purposes. The investment goals and principal investment techniques for each of the Funds are as follows: U.S. Government Securities Fund seeks high current income consistent with relative safety of capital by the active trading of U.S. Government securities, without regard to the maturities of such securities. Under normal market conditions, at least 80% of the Fund's net assets plus any borrowing for investment purposes will be invested in such securities. Strategic Bond Fund seeks a high level of total return by the active trading of a broad range of bonds, including both investment grade and non-investment grade U.S. and foreign bonds (which may include "junk bonds"), U.S. and foreign government and agency obligations, and mortgage-backed securities, without regard to the maturities of such securities. Under normal market conditions, at least 80% of the Fund's net assets plus any borrowing for investment purposes will be invested in bonds. Flexible Credit Fund seeks a high level of total return by the active trading in credit instruments. Under normal circumstances, at least 80% of the Fund's net assets, plus any borrowings for investment purposes, will be invested in credit instruments and derivative instruments and exchange-traded funds ("ETFs") that are linked to, or provide investment exposure to, credit instruments. The Fund considers a credit instrument to be any debt instrument or instrument with debt-like characteristics, including but not limited to, corporate and sovereign bonds, secured floating rate loans and other institutionally traded secured floating rate debt obligations ("Loans"), and securitized instruments, which are securities backed by pools of assets such as mortgages, loans, or other receivables. The credit instruments in which the Fund intends to primarily invest are U.S. and non-U.S. below investment grade, high yield bonds (commonly referred to as "junk bonds") and Loans. Each Fund offers multiple classes of shares. The classes within each Fund are presented in the Statements of Assets and Liabilities. The cost structure for each class is as follows: Class A shares are offered at net asset value per share plus an initial sales charge. Additionally, purchases of Class A shares in amounts of $1,000,000 or more will be purchased at net asset value but will be subject to a contingent deferred sales charge on redemptions made within two years of purchase. Class B shares are offered without an initial sales charge, although a declining contingent deferred sales charge may be imposed on redemptions made within six years of purchase. Class B shares convert automatically to Class A shares on the first business day of the month following the eighth anniversary of the issuance of such Class B shares and at such time will be subject to the lower distribution fee applicable to Class A shares. Class C shares are offered at net asset value per share without an initial sales charge and may be subject to a contingent deferred sales charge on redemptions made within 12 months of purchase. Class C shares convert automatically to Class A shares approximately ten years after purchase and at such time will be subject to the lower distribution fee applicable to Class A shares. Class W shares are offered at net asset value per share. The class is offered exclusively through advisory fee-based programs sponsored by certain financial intermediaries and other programs. Class W shares of the Flexible Credit Fund and the Strategic Bond Fund commenced operations effective October 1, 2014 and January 29, 2015, respectively. Each class of shares bears the same voting, dividend, liquidation and other rights and conditions except as may otherwise be provided in the Trust's registration statement. Class A, Class B and Class C shares each makes distribution and account 71 SunAmerica Income Funds NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited) (continued) maintenance and service fee payments under the distribution plan pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended (the "1940 Act"), with Class B and Class C shares being subject to higher distribution fee rates. Class W shares have not adopted 12b-1 Plans and make no payments thereunder, however, Class W shares pay a service fee to the Funds' distributor for administrative and shareholder services. Indemnifications: The Trust's organizational documents provide current and former officers and trustees with a limited indemnification against liabilities arising out of the performance of their duties to the Trust. In addition, pursuant to Indemnification Agreements between the Trust and each of the current trustees who is not an "interested person," as defined in Section 2(a)(19) of the 1940 Act, of the Trust (collectively, the "Disinterested Trustees"), the Trust provides the Disinterested Trustees with a limited indemnification against liabilities arising out of the performance of their duties to the Trust, whether such liabilities are asserted during or after their service as trustees. In addition, in the normal course of business, the Trust enters into contracts that contain the obligation to indemnify others. The Trust's maximum exposure under these arrangements is unknown. Currently, however, the Trust expects the risk of loss to be remote. Note 2. Significant Accounting Policies The preparation of financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and those differences could be significant. The Funds are considered investment companies under GAAP and follow the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements: Security Valuation: In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Funds disclose the fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. In accordance with GAAP, fair value is defined as the price that the Funds would receive upon selling an asset or transferring a liability in a timely transaction to an independent third party in the principal or most advantageous market. GAAP establishes a three-tier hierarchy to provide more transparency around the inputs used to measure fair value and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tiers are as follows: Level 1 -- Unadjusted quoted prices in active markets for identical securities Level 2 -- Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, referenced indices, quoted prices in inactive markets, adjusted quoted prices in active markets, adjusted quoted prices on foreign equity securities that were adjusted in accordance with pricing procedures approved by the Board of Trustees ("the Board"), etc.) Level 3 -- Significant unobservable inputs (includes inputs that reflect the Funds' own assumptions about the assumptions market participants would use in pricing the security, developed based on the best information available under the circumstances) Changes in valuation techniques may result in transfers in or out of an investment's assigned Level within the hierarchy. The methodology used for valuing investments is not necessarily an indication of the risk associated with investing in those investments and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to each security. The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is recently issued and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. 72 SunAmerica Income Funds NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited) (continued) The summary of each Fund's asset and liabilities classified in the fair value hierarchy as of September 30, 2019 is reported on a schedule at the end of each Fund's Portfolio of Investments. Stocks are generally valued based upon closing sales prices reported on recognized securities exchanges on which the securities are principally traded and are generally categorized as Level 1. Stocks listed on the NASDAQ are valued using the NASDAQ Official Closing Price ("NOCP"). Generally, the NOCP will be the last sale price unless the reported trade for the stock is outside the range of the bid/ask price. In such cases, the NOCP will be normalized to the nearer of the bid or ask price. For listed securities having no sales reported and for unlisted securities, such securities will be valued based upon the last reported bid price. As of the close of regular trading on the New York Stock Exchange ("NYSE"), securities traded primarily on security exchanges outside the United States are valued at the last sale price on such exchanges on the day of valuation, or if there is no sale on the day of valuation, at the last-reported bid price. If a security's price is available from more than one exchange, the Funds use the exchange that is the primary market for the security. Such securities are generally categorized as Level 1. However, depending on the foreign market, closing prices may be up to 15 hours old when they are used to price a Fund's shares, and a Fund may determine that certain closing prices do not reflect the fair value of the security. This determination will be based on review of a number of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U.S. markets that represent foreign securities and baskets of foreign securities. If a Fund determines that closing prices do not reflect the fair value of the securities, the Fund will adjust the previous closing prices in accordance with pricing procedures approved by the Board to reflect what it believes to be the fair value of the securities as of the close of regular trading on the NYSE. The Funds may also fair value securities in other situations, for example, when a particular foreign market is closed but a Fund is open. For foreign equity securities and foreign equity futures contracts, the Funds use an outside pricing service to provide it with closing market prices and information used for adjusting those prices and when so adjusted, such securities and futures are generally categorized as Level 2. Bonds, debentures and other debt securities are valued at evaluated bid prices obtained for the day of valuation from a Board-approved pricing service, and are generally categorized as Level 2. The pricing service may use valuation models or matrix pricing which considers information with respect to comparable bond and note transactions, quotations from bond dealers, or by reference to other securities that are considered comparable in such characteristics as rating, interest rate, and maturity date, option adjusted spread models, prepayments projections, interest rate spreads, and yield curves to determine current value. If a price is unavailable from a Board-approved pricing service, the securities may be priced at the mean of two independent quotes obtained from brokers. Senior floating rate loans ("Loans") are valued at the average of available bids in the market for such Loans, as provided by a Board-approved loan pricing service, and are generally categorized as Level 2. Investments in registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded. Investments in registered investment companies are generally categorized as Level 1. Forward foreign currency contracts ("forward contracts") are valued at the 4:00 p.m. Eastern Time forward rate and are generally categorized as Level 2. Other securities are valued on the basis of last sale or bid price (if a last sale price is not available) which is, in the opinion of the Adviser, the broadest and most representative market, that may be either a securities exchange or over-the-counter market and are generally categorized as Level 1 or Level 2. The Board is responsible for the share valuation process and has adopted policies and procedures (the "PRC Procedures") for valuing the securities and other assets held by the Funds, including procedures for the fair valuation of securities and other assets for which market quotations are not readily available or are unreliable. The PRC Procedures provide for the establishment of a pricing review committee, which is responsible for, among other things, making certain determinations in connection with the 73 SunAmerica Income Funds NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited) (continued) Trust's fair valuation procedures. Securities for which market quotations are not readily available or the values of which may be significantly impacted by the occurrence of developments or significant events are generally categorized as Level 3. There is no single standard for making fair value determinations, which may result in prices that vary from those of other funds. Derivative Instruments: Forward Foreign Currency Contracts: During the period, the Strategic Bond Fund used forward contracts to attempt to protect securities and related receivables and payables against changes in future foreign exchange rates. A forward contract is an agreement between two parties to buy or sell currency at a set price on a future date. The market value of the contract will fluctuate with changes in currency exchange rates. The contract is marked-to-market daily using the forward rate and the cumulative change in market value is recorded by a Fund as unrealized appreciation or depreciation. On the settlement date, a Fund records either realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks to the Funds of entering into forward contracts include counterparty risk, market risk and illiquidity risk. Counterparty risk arises upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts. If the counterparty defaults, a Fund's loss will generally consist of the net amount of contractual payments that the Fund has not yet received though the Fund's maximum exposure due to counterparty risk could extend to the notional amount of the contract. Market risk is the risk that the value of the forward contract will depreciate due to unfavorable changes in the exchange rates. These contracts may involve market risk in excess of the unrealized appreciation or depreciation reported on the Statements of Assets and Liabilities. Illiquidity risk arises because the secondary market for forwards may have less liquidity relative to markets for other securities. Currency transactions are also subject to risks different from those of other portfolio transactions. Because currency control is of great importance to the issuing governments and influences economic planning and policy, purchases and sales of currency and related instruments can be adversely affected by government exchange controls, limitations or restrictions on repatriation of currency, and manipulations or exchange restrictions imposed by governments. Forward foreign currency contracts outstanding at the end of the period, if any, are reported on a schedule at the end of each Fund's Portfolio of Investments. Master Agreements: Certain Funds that hold derivative instruments and other financial instruments may be a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements or similar agreements ("Master Agreements") with certain counterparties that govern certain instruments. Master Agreements may contain provisions regarding, among other things, the parties' general obligations, representations, agreements, collateral requirements, events of default and early termination. Collateral can be in the form of cash or securities as agreed to by the Fund and applicable counterparty. Collateral requirements are generally determined based on a Fund's net position with each counterparty. Master Agreements may also include certain provisions that require a Fund to post additional collateral upon the occurrence of certain events, such as when a Fund's net assets fall below a specified level. In addition, Master Agreements typically specify certain standard termination events, such as failure of a party to pay or deliver, credit support defaults and other events of default. Termination events applicable to a Fund may also occur upon a decline in the Fund's net assets below a specified level over a certain period of time. Additional termination events applicable to counterparties may occur upon a decline in a counterparty's long-term and short-term credit ratings below a specified level, or upon a decline in the ratings of a counterparty's credit support provider. Upon the occurrence of a termination event, the other party may elect to terminate early and cause settlement of all instruments outstanding pursuant to a particular Master Agreement, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of a Fund's counterparties to elect early termination could cause a Fund to accelerate the payment of liabilities, which settlement amounts could be in excess of the amount of assets that are already posted as collateral. Typically, the Master Agreement will permit a single net payment in the event of default. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events. As a result, the early termination with respect to derivative instruments subject to Master Agreements that are in a net liability position could be material to a Fund's financial statements. The Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Asset and Liabilities. 74 SunAmerica Income Funds NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited) (continued) The following tables represent the value of derivatives held as of September 30, 2019, by their primary underlying risk exposure. The derivative contracts held during the period are not accounted for as hedging instruments under GAAP. For a detailed presentation of derivatives held as of September 30, 2019, please refer to the schedule at the end of each Fund's Portfolio of Investments.
Liability Asset Derivatives Derivatives ----------------- ------------ Foreign Foreign Forward Forward Exchange Exchange Contracts Contracts ----------------- ------------ Foreign Foreign Exchange Exchange Fund Contracts(1) Contracts(2) ---- ----------------- ------------ Strategic Bond............................... $405,644 $30,858 ======== =======
-------- Statement of Assets and Liabilities Location: (1)Unrealized appreciation on forward foreign currency contracts (2)Unrealized depreciation on forward foreign currency contracts
Change in Unrealized Realized Appreciation Gain (Loss) on (Depreciation) on Derivatives Derivatives Recognized in Recognized in Statement of Statement of Operations Operations -------------- ----------------- Foreign Foreign Forward Forward Exchange Exchange Contracts Contracts -------------- ----------------- Foreign Foreign Exchange Exchange Fund Contracts(1) Contracts(2) ---- -------------- ----------------- Strategic Bond............................... $605,328 $200,692 ======== ========
-------- Statement of Operations Location: (1)Net realized gain (loss) on forward contracts (2)Change in unrealized appreciation (depreciation) on forward contracts The following table represents the average monthly balances of derivatives held during the six months ended September 30, 2019:
Average Amount Outstanding During the Year --------------- Foreign Exchange Fund Contracts(1) ---- --------------- Strategic Bond............................... $18,455,047 ===========
-------- (1)Amounts represent notional amounts in US dollars. The following tables set forth the Funds' derivative assets and liabilities by counterparty, net of amounts available for offset under Master Agreements and net of the related collateral pledged/(received) as of September 30, 2019. The repurchase agreements held by the Funds as of September 30, 2019, are also subject to Master Agreements but are not included in the following tables. See the Portfolio of Investments of each Fund and the Notes to the Financial Statements for more information about the Funds' holdings in repurchase agreements. 75 SunAmerica Income Funds NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited) (continued)
Strategic Bond ------------------------------------------------------------------------------------------------- Derivative Assets(1) Derivative Liabilities(1) ------------------------------------ -------------------------------- Forward Forward Net Foreign Foreign Derivative Collateral Currency OTC Options Currency OTC Options Assets Pledged/ Counterparty Contracts Swaps Purchased Total Contracts Swaps Written Total (Liabilities) (Received)(2) ------------------------ --------- ------- --------- -------- --------- ------ ------- ------- ------------- ------------- JPMorgan Chase Bank N.A. $405,644 $ -- $ -- $405,644 $30,858 $ -- $ -- $30,858 $374,786 $ -- ======== ======= ========= ======== ======= ====== ======= ======= ======== ============
-------------- Counterparty Net Amount(3) ------------------------ ------------- JPMorgan Chase Bank N.A. $374,786 ========
-------- (1)Gross amounts of recognized assets and liabilities not offset in the Statement of Assets and Liabilities. (2)For each respective counterparty, collateral pledged or (received) is limited to an amount not to exceed 100% of the derivative asset/liability in the table above. (3)Net amount represents the net amount due (to)/from counterparty in the event of a default based on the contractual set-off rights under the agreement. Mortgage-Backed Dollar Rolls: Certain Funds may enter into dollar rolls using "to be announced" ("TBA") mortgage-backed securities ("TBA Rolls"). TBA Roll transactions involve the sale of mortgage or other asset backed securities with the commitment to purchase substantially similar securities on a specified future date. The Funds' policy is to record the components of TBA Rolls as purchase/sale transactions. Any difference between the purchase and sale price is recorded as a realized gain or loss on the date the transaction is entered into. TBA Roll transactions involve the risk that the market value of the securities held by a Fund may decline below the price of the securities that the Fund has sold but is obligated to repurchase under the agreement. In the event that the buyer of securities in a TBA Roll transaction files bankruptcy or becomes insolvent, a Fund's use of the proceeds from the sale of the securities may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund's obligation to repurchase the securities. Mortgage-Backed Dollar Rolls outstanding at the end of the period, if any, are included in investments purchased/sold on an extended settlement basis in the Statement of Assets and Liabilities. When-Issued Securities and Forward Commitments: Certain Funds may purchase or sell when-issued securities (including TBA securities) that have been authorized, but not yet issued in the market. In addition, a Fund may purchase or sell securities on a forward commitment basis. A forward commitment involves entering into a contract to purchase or sell securities, typically on an extended settlement basis, for a fixed price at a future date. The Funds may engage in when-issued or forward commitment transactions in order to secure what is considered to be an advantageous price and yield at the time of entering into the obligation. The purchase of securities on a when-issued or forward commitment basis involves a risk of loss if the value of the security to be purchased declines before the settlement date. Conversely, the sale of securities on a when-issued or forward commitment basis involves the risk that the value of the securities sold may increase before the settlement date. Securities purchased or sold on a when-issued or forward commitment basis outstanding at the end of the period, if any, are included in investments purchased/sold on an extended settlement basis in the Statement of Assets and Liabilities. Loans: The Fund invests in senior loans which generally consist of direct debt obligations of companies (collectively, "Borrowers"), primarily U.S. companies and their affiliates, undertaken to finance the growth of the Borrower's business internally and externally, or to finance a capital restructuring. Transactions in senior loans may settle on a delayed basis. Unsettled loans at the end of the period, if any, are included in investments purchased/sold on an extended settlement basis in the Statement of Assets and Liabilities. Stripped Mortgage-Backed Securities: Stripped Mortgage-Backed Securities ("SMBS") are multiple-class mortgage-backed securities. SMBS are often structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. SMBS have greater market volatility than other types of U.S. government securities in which a Fund invests. A common type of SMBS has one class receiving some of the interest and all or most of the principal (the "principal only" class) from the mortgage pool, while the other class will receive all or most of the interest (the "interest only" class). The yield to maturity on an interest only class is extremely sensitive not only to changes in prevailing interest rates, but also to the rate of principal payments, including principal prepayments, on the underlying pool of mortgage assets, and a rapid rate of principal payment may have a material adverse effect on a Fund's yield. Inflation-Indexed Bonds: Certain Funds may purchase inflation-indexed bonds. Inflation-indexed bonds are fixed income securities whose principal value is adjusted periodically according to the rate of inflation. Two structures are common. The U.S. Treasury and certain other issuers use a structure that reflects inflation in the principal value of the bond. Other issuers pay out any inflation related accruals as part of a semiannual coupon. The value of inflation-indexed bonds is expected to change in 76 SunAmerica Income Funds NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited) (continued) response to changes in real interest rates. Real interest rates, in turn, are tied to the relationship between nominal interest rates (i.e., stated interest rates) and the rate of inflation. Therefore, if the rate of inflation rises at a faster rate than nominal interest rates, real interest rates (i.e., nominal interest rates minus inflation) might decline, leading to an increase in value of inflation-indexed bonds. In contrast, if nominal interest rates increase at a faster rate than inflation, real interest rates might rise, leading to a decrease in value of inflation-indexed bonds. There can be no assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in nominal interest rates, and short-term increases in inflation may lead to a decline in their value. Coupon payments received from inflation-indexed bonds are recorded in the Statements of Operations as interest income. In addition, any increase or decrease in the principal amount of an inflation-indexed bond will be recorded in the Statements of Operations as an increase or decrease to interest income, even though principal is not paid until maturity. Repurchase Agreements: The Funds, along with other affiliated registered investment companies, pursuant to procedures adopted by the Board and applicable guidance from the Securities and Exchange Commission ("SEC"), may transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by U.S. Treasury or federal agency obligations. In a repurchase agreement, the seller of a security agrees to repurchase the security at a mutually agreed-upon time and price, which reflects the effective rate of return for the term of the agreement. For repurchase agreements and joint repurchase agreements, the Trust's custodian takes possession of the collateral pledged for investments in such repurchase agreements ("repo" or collectively "repos"). The underlying collateral is valued daily on a mark to market basis, plus accrued interest to ensure that the value, at the time the agreement is entered into, is equal to at least 102% of the repurchase price, including accrued interest. In the event of default of the obligation to repurchase, a Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by a Fund may be delayed or limited. Securities Transactions, Investment Income, Expenses, Dividends and Distributions to Shareholders: Security transactions are recorded on a trade date basis. Interest income is accrued daily from settlement date except when collection is not expected. Dividend income is recorded on the ex-dividend date except for certain dividends from foreign securities, which are recorded as soon as the Trust is informed after the ex-dividend date. Paydown gains and losses on mortgage and asset-backed securities are recorded as components of interest income on the Statements of Operations. For financial statement purposes, the Funds amortize all premiums and accrete all discounts on fixed income securities. Realized gains and losses on the sale of investments are calculated on the identified cost basis. Funds which earn foreign income and capital gains may be subject to foreign withholding taxes and capital gains taxes at various rates. Under applicable foreign law, a withholding of tax may be imposed on interest, dividends, and capital gains from the sale of foreign securities at various rates. Income and expenses, other than class specific expenses, are allocated daily to each class of shares based upon the relative value of dividend-eligible shares after adjusting for the current capital share activity of the respective class. Realized and unrealized gains and losses are allocated daily to each class of shares based upon the relative value of outstanding shares after adjusting for the current capital share activity of the respective class. Expenses common to all Funds are allocated among the Funds based upon relative net assets or other appropriate allocation methods. In all other respects, expenses are charged to each Fund as incurred on a specific identification basis. Dividends from net investment income are accrued daily and paid monthly. Capital gain distributions, if any, are paid annually. The Funds record dividends and distributions to their shareholders on the ex-dividend date. The Funds reserve the right to declare and pay dividends less frequently than disclosed above, provided that the net realized capital gains and net investment income, if any, are paid at least annually. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts at fiscal year end based on their federal tax-basis treatment; temporary differences do not require reclassification. Net assets are not affected by these reclassifications. 77 SunAmerica Income Funds NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited) (continued) Each Fund is considered a separate entity for tax purposes and intends to comply with the requirements of the Internal Revenue Code, as amended, applicable to regulated investment companies and distribute all of its taxable income, including any net capital gains on investments, to its shareholders. Each Fund also intends to distribute sufficient net investment income and net capital gains, if any, so that it will not be subject to excise tax on undistributed income and gains. Therefore, no federal income tax or excise tax provision is required. The Funds recognize the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained, assuming examination by tax authorities. Management has analyzed each Fund's tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years 2016 -- 2018 or expected to be taken in each Fund's 2019 tax return. The Funds are not aware of any tax provisions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months. The Funds file U.S. federal and certain state income tax returns. With few exceptions, the Funds are no longer subject to U.S. federal and state tax examinations by tax authorities for tax returns ending before 2016. Foreign Currency Translation: The books and records of the Funds are maintained in U.S. dollars. Assets and liabilities denominated in foreign currencies and commitments under forward foreign currency contracts are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation. The Funds do not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in the market prices of securities held at the end of the period. Similarly, the Funds do not isolate the effect of changes in foreign exchange rates from the changes in the market prices of portfolio securities sold during the period. Realized foreign exchange gains and losses on other assets and liabilities and change in unrealized foreign exchange gains and losses on other assets and liabilities located in the Statements of Operations include realized foreign exchange gains and losses from currency gains or losses between the trade and the settlement dates of securities transactions, the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Funds' books and the U.S. dollar equivalent amounts actually received or paid and changes in the unrealized foreign exchange gains and losses relating to the other assets and liabilities arising as a result of changes in the exchange rates. New Accounting Pronouncements: In August 2018, the FASB issued Accounting Standards Update ("ASU") No. 2018-13 "Disclosure Framework -- Changes to the Disclosure Requirements for Fair Value Measurement". The ASU eliminates, modifies, and adds disclosure requirements for fair value measurements and is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The ASU allows for early adoption of either the entire standard or only the provisions that eliminate or modify the requirements. Management has elected to early adopt the provisions that eliminate disclosure requirements and is still evaluating the impact of applying the rest of the ASU. Effective April 1, 2019, the Funds are subject to ASU 2017-08, "Premium Amortization on Purchased Callable Debt Securities", which requires the premiums on certain purchased debt securities with non-contingent call features to be amortized to the earliest call date. The amortization period for callable debt securities purchased at a discount will not be impacted. Adoption of the ASU had no material impact on the Funds. Note 3. Investment Advisory and Management Agreement, Distribution Agreement and Service Agreement The Trust, on behalf of each Fund, has an Investment Advisory and Management Agreement (the "Agreement") with SunAmerica. Under the Agreement, SunAmerica provides continuous supervision of a Fund's portfolio and administers its corporate affairs, subject to general review by the Trustees. In connection therewith, SunAmerica furnishes the Funds with office facilities, maintains certain of the Funds' books and records, and pays the salaries and expenses of all personnel, including officers of the Funds, who are employees of SunAmerica and its affiliates. 78 SunAmerica Income Funds NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited) (continued) The Funds pay SunAmerica a monthly investment advisory and management fee calculated daily at the following annual percentages of each Fund's average daily net assets:
Management Fund Assets Fees ---- ---------------------------- ---------- U.S. Government Securities........................ $0 - $200 million 0.650% (greater than) $200 million 0.620 (greater than) $400 million 0.550 Strategic Bond(1)................................. $0 - $350 million 0.650 (greater than) $350 million 0.600 Flexible Credit(2)................................ $0 - $200 million 0.750 (greater than) $200 million 0.720 (greater than) $400 million 0.550
-------- (1)The Advisor contractually agreed to waive its advisory fee with respect to the AIG Strategic Bond Fund through July 31, 2020 so that the advisory fee payable by the Fund to the Advisor under the agreement equals 0.38% on the first $350 million and 0.33% above $350 million of average daily net assets. (2)The Advisor contractually agreed to waive its advisory fee with respect to the AIG Flexible Credit Fund through July 31, 2020 so that the advisory fee payable by the Fund to the Advisor under the agreement equals 0.34% of average daily net assets. For the six months ended September 30, 2019 the amount of investment advisory fees waived for Strategic Bond Fund and Flexible Credit Fund were $397,199 and $661,420, respectively. These amounts are reflected in the Statement of Operations. The organizations described below act as subadvisers to the Trust and certain of its Funds pursuant to Subadvisory Agreements with SAAMCo. Under the Subadvisory Agreements, the subadvisers manage the investment and reinvestment of the assets of the respective Funds for which they are responsible. Each of the subadvisers is independent of SAAMCo and discharges its responsibilities subject to the policies of the Trust's Trustees and the oversight and supervision of SAAMCo, which pays the subadvisers' fees.
Subadviser Fund ---------- --------------- PineBridge Investments, LLC.... Strategic Bond Newfleet Asset Management, LLC. Flexible Credit
SunAmerica has contractually agreed to waive fees and/or reimburse expenses, to the extent necessary to cap the Funds' annual fund operating expenses at the following percentages of each Fund's average net assets. For the purposes of waived fees and/or reimbursed expense calculations, annual Fund operating expenses shall not include extraordinary expenses (i.e., expenses that are unusual in nature and infrequent in occurrence, such as litigation), or acquired Fund fees and expenses, brokerage commissions and other transactional expenses relating to the purchase and sale of portfolio securities, interest, taxes and governmental fees, and other expenses not incurred in the ordinary course of a Fund's business. The contractual fee waivers and expense reimbursements will continue indefinitely, subject to termination by the Trustees, including a majority of the Disinterested Trustees.
Fund Percentage ---- ---------- U.S. Government Securities Class A..... 0.99% U.S. Government Securities Class C..... 1.64 Strategic Bond Class A................. 1.40 Strategic Bond Class B................. 2.05 Strategic Bond Class C................. 2.05 Strategic Bond Class W................. 1.20 Flexible Credit Class A................ 1.45 Flexible Credit Class C................ 2.10 Flexible Credit Class W................ 1.25
For the U.S. Government Securities Fund, any contractual waivers and/or reimbursements made by SunAmerica are subject to recoupment from the Fund within two years after the occurrence of the waivers and/or reimbursements, provided that the Fund is able to effect such payment to SunAmerica and remain in compliance with the expense limitations in effect at the time the waivers and/or reimbursements were made. 79 SunAmerica Income Funds NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited) (continued) For the six months ended September 30, 2019, pursuant to the contractual expense limitations in the above tables SunAmerica has waived and/or reimbursed expenses as follows:
Other Expenses Fund Reimbursed ---- -------------- U.S. Government Securities......... $ 98,503 Class Specific Fund Expenses ---- -------------- U.S. Government Securities Class A. $153,532 U.S. Government Securities Class C. 22,966
At September 30, 2019, expenses previously waived or reimbursed by SunAmerica that are subject to recoupment and expire during the time period indicated are as follows:
Other Expenses Reimbursed ------------------------------------------------ Fund March 31, 2020 March 31, 2021 September 30, 2021 ---- -------------- -------------- ------------------ U.S. Government Securities........................ $ 83,370 $185,070 $ 98,503 Class Specific Expenses Reimbursed ------------------------------------------------ Fund March 31, 2020 March 31, 2021 September 30, 2021 ---- -------------- -------------- ------------------ U.S. Government Securities Class A................ $177,080 $306,262 $153,532 U.S. Government Securities Class C................ 19,118 33,551 22,966
The Trust, on behalf of each Fund, has entered into a Distribution Agreement with AIG Capital Services, Inc. ("ACS" or "Distributor"), an affiliate of the Adviser. Each Fund has adopted a Distribution Plan on behalf of each Class (other than Class W shares of the Strategic Bond and Flexible Credit Funds), in accordance with the provisions of Rule 12b-1 under the 1940 Act (each, a "Plan," and collectively, the "Plans"), hereinafter referred to as the "Class A Plan," the "Class B Plan" and the "Class C Plan." In adopting the Class A Plan, the Class B Plan and the Class C Plan, the Trustees determined that there was a reasonable likelihood that each such Plan would benefit the Trust and the shareholders of the respective class. The sales charge and distribution fees of a particular class will not be used to subsidize the sale of shares of any other class. The Class A, Class B and Class C Plans provide that the Trust, on behalf of the respective classes, shall pay the Distributor a distribution fee at an annual rate of up to 0.10%, 0.75% and 0.75%, of average daily net assets of such Fund's Class A, Class B and Class C shares, respectively, to compensate the Distributor and certain securities firms for providing sales and promotional activities for distributing that class of shares. The distribution costs for which the Distributor may be compensated include fees paid to broker-dealers that have sold Fund shares, commissions, and other expenses such as those incurred for sales literature, prospectus printing and distribution and compensation to wholesalers. It is possible that in any given year, the amount paid to the Distributor under the Class A Plan, Class B Plan or Class C Plan may exceed the Distributor's distribution costs as described above. Except for Class W shares of the Strategic Bond and Flexible Credit Funds, the Plans also provide that each class of shares of the Trust will also pay the Distributor an account maintenance fee at the annual rate of up to 0.25% of the aggregate average daily net assets of such class of shares to compensate the Distributor and securities firms for account maintenance activities. The Distributor does not receive or retain any distribution and/or account maintenance fees for any shares when the shareholder does not have a broker of record. For the six months ended September 30, 2019, ACS received fees as reflected in the Statements of Operations based on the aforementioned rates. The Trust, on behalf of the Strategic Bond and Flexible Credit Funds, has entered into an Administrative and Shareholder Services Agreement with ACS, pursuant to which ACS is paid an annual fee of 0.15% of average daily net assets of Class W shares as compensation for providing additional shareholder services to Class W shareholders. The Distributor does not receive or retain any distribution and/or account maintenance fees for any shares when the shareholder does not have a broker of record. For the six months ended September 30, 2019, ACS earned fees as reflected in the Statements of Operations based on the aforementioned rate. 80 SunAmerica Income Funds NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited) (continued) ACS receives sales charges on each Fund's Class A shares, portions of which are reallowed to affiliated broker-dealers and non-affiliated broker-dealers. ACS also receives the proceeds of contingent deferred sales charges paid by investors in connection with certain redemptions of Class A, Class B and Class C shares. ACS has advised the Funds that for the six months ended September 30, 2019, the proceeds received from Class A sales (and paid out to affiliated and non-affiliated broker-dealers) and Class A, Class B and Class C redemptions were as follows:
Class A Class B Class C ---------------------------------------------------- ------------- ------------- Contingent Contingent Contingent Sales Affiliated Non-affiliated Deferred Deferred Deferred Fund Charges Broker-dealers Broker-dealers Sales Charges Sales Charges Sales Charges ---- -------- -------------- -------------- ------------- ------------- ------------- U.S. Government Securities......... $ 6,564 $ 722 $ 4,723 $ 44 $ -- $ 14 Strategic Bond..................... 79,212 23,794 42,395 367 33,612 691 Flexible Credit.................... 178,809 18,140 127,929 2,479 -- 7,853
The Trust has entered into a Service Agreement with AIG Fund Services, Inc. ("AFS"), an affiliate of the Adviser. Under the Service Agreement, AFS performs certain shareholder account functions by assisting the Funds' transfer agent, DST Asset Manager Solutions, Inc. ("DST") in connection with the services that it offers to the shareholders of the Funds. The Service Agreement permits the Funds to compensate AFS for services rendered, based upon an annual rate of 0.22% of average daily net assets, which is approved annually by the Trustees. For the six months ended September 30, 2019, the Funds incurred the following expenses which are included in transfer agent fees and expenses in the Statements of Operations to compensate AFS pursuant to the terms of the Service Agreement:
Payable at Fund Expenses September 30, 2019 ---- -------- ------------------ U.S. Government Securities Class A........... $138,019 $22,870 U.S. Government Securities Class C........... 8,212 1,319 Strategic Bond Class A....................... 170,371 28,156 Strategic Bond Class B....................... 18,297 3,042 Strategic Bond Class C....................... 57,534 9,144 Strategic Bond Class W....................... 77,441 15,926 Flexible Credit Class A...................... 122,768 17,003 Flexible Credit Class C...................... 62,143 10,118 Flexible Credit Class W...................... 180,647 35,053
At September 30, 2019, AIG Active Allocation Fund and AIG Multi-Asset Allocation Fund, each a series of SunAmerica Series, Inc., owned a percentage of the outstanding shares of the following Funds:
Holder --------------------- AIG AIG Active Multi-Asset Allocation Allocation Fund Fund Fund ---- ---------- ----------- U.S. Government Securities................... 19.00% 17.02% Strategic Bond............................... 1.76 3.09 Flexible Credit.............................. 2.17 2.62
Note 4. Purchases and Sales of Investment Securities The cost of purchases and proceeds from sales and maturities of long-term investments during the six months ended September 30, 2019 were as follows:
Purchases of Investment Sales of Investment Purchase of U.S. Sales of U.S. Securities (Excluding U.S. Securities (Excluding U.S. Government Government Fund Government Securities) Government Securities) Securities Securities ---- -------------------------- -------------------------- ---------------- ------------- U.S. Government Securities......... $ -- $ -- $36,429,795 $39,562,898 Strategic Bond..................... 104,085,057 107,305,501 50,040,392 33,497,811 Flexible Credit.................... 116,096,904 79,638,293 -- --
81 SunAmerica Income Funds NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited) (continued) Note 5. Federal Income Taxes The following details the tax basis of distributions as well as the components of distributable earnings. The tax basis components of distributable earnings differ from the amounts reflected in the Statements of Assets and Liabilities by temporary book/tax differences primarily arising from wash sales, post October capital losses, late year ordinary losses, distributions payable, straddle loss deferrals, amortization of premium/discount and treatment of defaulted securities.
Distributable Earnings Tax Distributions For the year ended March 31, 2019 For the year ended March 31, 2019 ---------------------------------------- --------------------------------- Long-term Unrealized Ordinary Gains/Capital Appreciation Ordinary Long-Term Fund Income Loss Carryover (Depreciation)* Income Capital Gains ---- ---------- -------------- --------------- ----------- ------------- U.S. Government Securities. $ 583,828 $(20,760,887) $ 3,513,319 $ 2,274,447 $ -- Strategic Bond............. 265,906 (29,106,480) (3,238,024) 13,933,983 -- Flexible Credit............ 1,452,890 (8,341,072) (10,540,898) 17,530,127 --
-------- * Unrealized appreciation (depreciation) includes amounts for derivatives and other assets and liabilities denominated in foreign currency. As of March 31, 2019, for Federal income tax purposes, the Funds indicated below have capital loss carryforwards which are available to offset future capital gains, if any:
Unlimited ----------------------- Fund ST LT ---- ----------- ----------- U.S. Government Securities. $13,869,489 $ 6,891,398 Strategic Bond............. 7,290,177 21,816,303 Flexible Credit............ 316,999 8,024,073
Under the current law, capital losses realized after October 31 and late year ordinary losses may be deferred and treated as occurring on the first day of the following year. For the fiscal year ended March 31, 2019, the Funds elected to defer late year ordinary losses and post October capital losses as follows:
Deferred Deferred Deferred Post-October Post-October Late Year Short-Term Long-Term Fund Ordinary Loss Capital Loss Capital Loss ---- ------------- ------------ ------------ U.S. Government Securities. $ -- $ -- $ 158,358 Strategic Bond............. -- 937,916 2,311,945 Flexible Credit............ 778 1,038,999 1,764,229
At September 30, 2019, the amounts of aggregate unrealized gain (loss) and the cost of investment securities for federal tax purposes, including short-term securities and repurchase agreements, were as follows:
Aggregate Aggregate Unrealized Unrealized Unrealized Gain/(Loss) Cost of Fund Gain Loss Net Investments ---- ---------- ------------ ----------- ------------ U.S. Government Securities. $6,828,006 $ (625,510) $ 6,202,496 $127,248,635 Strategic Bond............. 9,243,967 (7,792,815) 1,451,152 310,783,845 Flexible Credit Bond....... 5,752,845 (15,684,970) (9,932,125) 367,181,663
82 SunAmerica Income Funds NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited) (continued) Note 6. Capital Share Transactions Transactions in capital shares of each class of each Fund were as follows:
U.S. Government Securities --------------------------------------------------- Class A --------------------------------------------------- For the six months ended For the September 30, 2019 year ended (unaudited) March 31, 2019 ------------------------ ------------------------- Shares Amount Shares Amount ---------- ------------ ----------- ------------ Shares sold.............. 1,391,837 $ 12,768,526 1,305,310 $ 11,619,748 Reinvested dividends......... 105,697 974,485 224,390 1,998,259 Shares redeemed.......... (1,901,518) (17,415,935) (3,096,467) (27,568,802) ---------- ------------ ----------- ------------ Net increase (decrease) in shares outstanding before automatic conversion........ (403,984) (3,672,924) (1,566,767) (13,950,795) ---------- ------------ ----------- ------------ Shares issued/(reaquired) upon automatic conversion........ 8,144 74,351 23,545 209,813 ---------- ------------ ----------- ------------ Net increase (decrease)........ (395,840) $ (3,598,573) (1,543,222) $(13,740,982) ========== ============ =========== ============ U.S. Government Securities --------------------------------------------------- Class C --------------------------------------------------- For the six months ended For the September 30, 2019 year ended (unaudited) March 31, 2019 ------------------------ ------------------------- Shares Amount Shares Amount ---------- ------------ ----------- ------------ Shares sold.............. 237,645 $ 2,191,749 369,217 $ 3,282,505 Reinvested dividends......... 3,964 36,522 7,423 66,105 Shares redeemed.......... (293,629) (2,713,991) (376,463) (3,350,519) ---------- ------------ ----------- ------------ Net increase (decrease) in shares outstanding before automatic conversion........ (52,020) (485,720) 177 (1,909) ---------- ------------ ----------- ------------ Shares issued/(reaquired) upon automatic conversion........ (8,148) (74,351) (23,556) (209,813) ---------- ------------ ----------- ------------ Net increase (decrease)........ (60,168) $ (560,071) (23,379) $ (211,722) ========== ============ =========== ============ Strategic Bond ------------------------------------------------------------------------------------------------------ Class A Class B --------------------------------------------------- ------------------------------------------------- For the For the six months ended For the six months ended For the September 30, 2019 year ended September 30, 2019 year ended (unaudited) March 31, 2019 (unaudited) March 31, 2019 ------------------------ ------------------------- ----------------------- ------------------------ Shares Amount Shares Amount Shares Amount Shares Amount ---------- ------------ ----------- ------------ ---------- ----------- ---------- ------------ Shares sold.............. 5,743,864 $ 19,341,638 6,137,118 $ 20,175,849 2,133,664 $ 7,145,589 2,455,767 $ 7,927,642 Reinvested dividends......... 775,627 2,610,118 2,184,483 7,131,471 62,867 211,040 191,319 624,130 Shares redeemed.......... (6,731,396) (22,638,471) (20,482,979) (67,579,745) (2,023,721) (6,775,892) (4,158,057) (13,615,211) ---------- ------------ ----------- ------------ ---------- ----------- ---------- ------------ Net increase (decrease) in shares outstanding before automatic conversion........ (211,905) (686,715) (12,161,378) (40,272,425) 172,810 580,737 (1,510,971) (5,063,439) ---------- ------------ ----------- ------------ ---------- ----------- ---------- ------------ Shares issued/(reaquired) upon automatic conversion........ 200,505 676,309 366,229 1,211,029 (102,585) (346,161) (134,725) (442,850) ---------- ------------ ----------- ------------ ---------- ----------- ---------- ------------ Net increase (decrease)........ (11,400) $ (10,406) (11,795,149) $(39,061,396) 70,225 $ 234,576 (1,645,696) $ (5,506,289) ========== ============ =========== ============ ========== =========== ========== ============
83 SunAmerica Income Funds NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited) (continued)
Strategic Bond ---------------------------------------------------------------------------------------------------------- Class C Class W ---------------------------------------------------- ---------------------------------------------------- For the For the six months ended For the six months ended For the September 30, 2019 year ended September 30, 2019 year ended (unaudited) March 31, 2019 (unaudited) March 31, 2019 ------------------------- ------------------------- ------------------------ -------------------------- Shares Amount Shares Amount Shares Amount Shares Amount ----------- ------------ ----------- ------------ ---------- ------------ ----------- ------------- Shares sold.............. 1,571,879 $ 5,293,127 3,276,843 $ 10,600,251 15,994,866 $ 53,687,997 8,629,513 $ 28,185,244 Reinvested dividends......... 184,949 624,073 576,785 1,887,304 246,359 827,843 529,292 1,725,791 Shares redeemed.......... (3,184,268) (10,763,942) (8,736,270) (28,825,160) (5,429,155) (18,257,322) (14,054,707) (46,263,984) ----------- ------------ ----------- ------------ ---------- ------------ ----------- ------------- Net increase (decrease) in shares outstanding before automatic conversion........ (1,427,440) (4,846,742) (4,882,642) (16,337,605) 10,812,070 36,258,518 (4,895,902) (16,352,949) ----------- ------------ ----------- ------------ ---------- ------------ ----------- ------------- Shares issued/(reaquired) upon automatic conversion........ (97,772) (330,148) (230,990) (768,179) -- -- -- -- ----------- ------------ ----------- ------------ ---------- ------------ ----------- ------------- Net increase (decrease)........ (1,525,212) $ (5,176,890) (5,113,632) $(17,105,784) 10,812,070 $ 36,258,518 (4,895,902) $ (16,352,949) =========== ============ =========== ============ ========== ============ =========== ============= Flexible Credit ---------------------------------------------------- Class A ---------------------------------------------------- For the six months ended For the September 30, 2019 year ended (unaudited) March 31, 2019 ------------------------- ------------------------- Shares Amount Shares Amount ----------- ------------ ----------- ------------ Shares sold.............. 4,602,173 $ 15,316,144 14,849,818 $ 49,790,556 Reinvested dividends......... 811,629 2,699,409 1,886,508 6,285,170 Shares redeemed.......... (13,456,148) (44,671,861) (19,823,318) (66,203,996) ----------- ------------ ----------- ------------ Net increase (decrease) in shares outstanding before automatic conversion........ (8,042,346) (26,656,308) (3,086,992) (10,128,270) ----------- ------------ ----------- ------------ Shares issued/(reaquired) upon automatic conversion........ 129,728 431,654 97,761 327,120 ----------- ------------ ----------- ------------ Net increase (decrease)........ (7,912,618) $(26,224,654) (2,989,231) $ (9,801,150) =========== ============ =========== ============ Flexible Credit ---------------------------------------------------------------------------------------------------------- Class C Class W ---------------------------------------------------- ---------------------------------------------------- For the For the six months ended For the six months ended For the September 30, 2019 year ended September 30, 2019 year ended (unaudited) March 31, 2019 (unaudited) March 31, 2019 ------------------------- ------------------------- ------------------------ -------------------------- Shares Amount Shares Amount Shares Amount Shares Amount ----------- ------------ ----------- ------------ ---------- ------------ ----------- ------------- Shares sold.............. 2,364,542 $ 7,913,844 4,471,353 $ 14,963,070 26,621,116 $ 88,674,992 34,991,418 $ 117,435,247 Reinvested dividends......... 281,868 942,930 562,371 1,884,631 743,426 2,475,936 1,333,966 4,447,946 Shares redeemed.......... (2,247,368) (7,513,305) (5,521,122) (18,531,010) (8,899,682) (29,657,907) (33,731,044) (111,902,255) ----------- ------------ ----------- ------------ ---------- ------------ ----------- ------------- Net increase (decrease) in shares outstanding before automatic conversion........ 399,042 1,343,469 (487,398) (1,683,309) 18,464,860 61,493,021 2,594,340 9,980,938 ----------- ------------ ----------- ------------ ---------- ------------ ----------- ------------- Shares issued/(reaquired) upon automatic conversion........ (128,953) (431,654) (97,135) (327,120) -- -- -- -- ----------- ------------ ----------- ------------ ---------- ------------ ----------- ------------- Net increase (decrease)........ 270,089 $ 911,815 (584,533) $ (2,010,429) 18,464,860 $ 61,493,021 2,594,340 $ 9,980,938 =========== ============ =========== ============ ========== ============ =========== =============
84 SunAmerica Income Funds NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited) (continued) Note 7. Line of Credit The Trust, along with certain other funds managed by the Adviser, has access to a $75 million committed unsecured line of credit and a $50 million uncommitted unsecured line of credit. The committed and uncommitted lines of credit are renewable on an annual basis with State Street Bank and Trust Company ("State Street"), the Trust's custodian. Interest is currently payable on the committed line of credit at the higher of the Federal Funds Rate (but not less than zero) plus 125 basis points or the One-Month London Interbank Offered Rate (but not less than zero) plus 125 basis points and State Street's discretionary bid rate on the uncommitted line of credit. The Trust, on behalf of each of the Funds, has paid State Street for its own account, such Fund's ratable portion of an upfront fee in an amount equal to $25,000 in the aggregate for the uncommitted line of credit made available by State Street to certain other funds managed by the Adviser, which are also party to the uncommitted line of credit. There is also a commitment fee of 25 basis points per annum on the daily unused portion of the committed line of credit. Borrowings under the line of credit will commence when the respective Fund's cash shortfall exceeds $100,000. For the six months ended September 30, 2019, the following Funds had borrowings:
Average Weighted Days Interest Debt Average Fund Outstanding Charges Utilized Interest ---- ----------- -------- ---------- -------- U.S. Government Securities.............. 9 $1,290 $1,461,111 3.50%
At September 30, 2019, there were no borrowings outstanding. Note 8. Interfund Lending Agreement Pursuant to the exemptive relief granted by the Securities and Exchange Commission, the Funds are permitted to participate in an interfund lending program among investment companies advised by SunAmerica or an affiliate. The interfund lending program allows the participating Funds to borrow money from and lend money to each other for temporary or emergency purposes. An interfund loan will be made under this facility only if the participating Funds receive a more favorable interest rate than would otherwise be available from a typical bank for a comparable transaction. For the six months ended September 30, 2019, none of the Funds participated in this program. Note 9. Investment Concentration The Flexible Credit Fund's investment in high yield securities, whether rated or unrated, may be considered speculative and subject to greater market fluctuations and risk of loss of income and principal than lower-yielding, higher-rated, fixed-income securities. The risk of loss due to default by the issuer may be significantly greater for the holders of high yield securities, because such securities are generally unsecured and are often subordinated to other creditors of the issuer. The Flexible Credit Fund and Strategic Bond Fund invest in participations and assignments, or act as a party to the primary lending syndicate of a variable rate senior loan interest to United States corporations, partnerships, and other entities. If the lead lender in a typical lending syndicate becomes insolvent, enters receivership or, if not FDIC insured, enters into bankruptcy, a Fund may incur certain costs and delays in receiving payment, or may suffer a loss of principal and/or interest. When a Fund purchases a participation of a senior loan interest, the Fund typically enters into a contractual agreement with the lender or other third party selling the participation but not with the borrower directly. As such, a Fund is subject to the credit risk of the borrower, selling participant, lender or other persons positioned between the Funds and the borrower. Each Fund may invest in obligations issued by agencies and instrumentalities of the U.S. Government that may vary in the level of support they receive from the government. The government may choose not to provide financial support to government sponsored agencies or instrumentalities if it is not legally obligated to do so, and if the issuer defaulted, a fund holding securities of such issuer might not be able to recover its investment from the U.S. Government. As a result of the U.S. Government Fund's concentration in such investments, it may be subject to risks associated with U.S. Government agencies or instrumentalities. 85 SunAmerica Income Funds NOTES TO FINANCIAL STATEMENTS -- September 30, 2019 -- (unaudited) (continued) Note 10. Unfunded Loan Commitments At September 30, 2019, AIG Strategic Bond Fund had the following unfunded loan commitments which could be extended at the option of the Borrower:
Principal Borrower Type Maturity Date Amount Value -------- ------------ ------------- --------- ------- Mavis Tire Express Services Corp.. Delayed Draw 03/20/2025 $12,333 $12,025 ======= =======
86 SunAmerica Income Funds APPROVAL OF ADVISORY AGREEMENTS -- September 30, 2019 -- (unaudited) Approval of the Investment Advisory and Management Agreement The Board of Directors (the "Board" the members of which are referred to as "Directors") of SunAmerica Series, Inc. (the "Corporation"), including the Directors who are not "interested persons," as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the "1940 Act") (the "Independent Directors"), of the Corporation or its separate series (each, a "Fund," and collectively, the "Funds") or SunAmerica Asset Management, LLC ("SunAmerica"), approved the continuation of the Investment Advisory and Management Agreement between the Corporation, on behalf of the Funds, and SunAmerica (the "Advisory Agreement") for a one-year period ending June 30, 2020 at an in-person meeting held on June 4-5, 2019 (the "Meeting"). The Corporation currently consists of the following six separate Funds: AIG Active Allocation Fund ("Active Allocation Fund"), AIG Multi-Asset Allocation Fund ("Multi-Asset Allocation Fund"), AIG Focused Dividend Strategy Fund ("Dividend Strategy Fund"), AIG Focused Dividend Strategy II Fund, AIG Strategic Value Fund ("Strategic Value Fund ") and AIG Select Dividend Growth Fund ("Dividend Growth Fund"). In accordance with Section 15(c) of the 1940 Act, the Board requested, and SunAmerica provided, materials relating to the Board's consideration of whether to approve the continuation of the Advisory Agreement. These materials included, among other things: (a) a summary of the services provided to the Funds by SunAmerica and its affiliates; (b) information independently compiled and prepared by Broadridge Financial Solutions, Inc. ("Broadridge"), an independent third-party provider of mutual fund data, on fees and expenses of the Funds and the investment performance of the Funds as compared with a peer group of funds, along with fee and performance data with respect to the Funds and any other mutual funds or other accounts advised by SunAmerica with similar investment objectives and/or strategies, as applicable; (c) information on the profitability of SunAmerica and its affiliates, and a discussion relating to indirect benefits; (d) information relating to economies of scale; (e) information about SunAmerica's general compliance policies and procedures and the services it provides to the Funds; (f) information about SunAmerica's risk management processes; (g) information regarding brokerage and soft dollar practices; and (h) information about the key personnel of SunAmerica and its affiliates that are involved in the investment management, administration, compliance and risk management activities with respect to the Funds, as well as current and projected staffing levels and compensation practices. In determining whether to approve the continuation of the Advisory Agreement, the Board, including the Independent Directors, considered at the Meeting, and from time to time as appropriate, factors that it deemed relevant, including the following information: Nature, Extent and Quality of Services Provided by SunAmerica. The Board, including the Independent Directors, considered the nature, extent and quality of services provided by SunAmerica. The Board noted that the services include acting as investment manager and adviser to the Funds, managing the daily business affairs of the Funds, and obtaining and evaluating economic, statistical and financial information to formulate and implement investment policies. Additionally, the Board observed that SunAmerica provides office space, bookkeeping, accounting, legal, compliance, clerical and administrative services, and has authorized its officers and employees, if elected, to serve as officers or directors of the Corporation without compensation. The Board also noted that SunAmerica is responsible for monitoring and reviewing the activities of affiliated and unaffiliated third-party service providers. In addition to the quality of the advisory services provided by SunAmerica, the Board considered the quality of the administrative and other services provided by SunAmerica to the Funds pursuant to the Advisory Agreement. The Board also considered the significant risks assumed by SunAmerica in connection with the services provided to the Funds including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risks with respect to all Funds. In connection with the services provided by SunAmerica, the Board analyzed the structure and duties of SunAmerica's fund administration, accounting, operations, legal and compliance departments and concluded that they were adequate to meet the needs of the Funds. The Board also reviewed the personnel responsible for providing advisory services to the Funds and other key personnel of SunAmerica, in addition to current and projected staffing levels and compensation practices. The Board concluded, based on its experience and interaction with SunAmerica, that: (i) SunAmerica would continue to be able, to retain quality investment and other personnel; (ii) SunAmerica has exhibited a high level of diligence and attention to detail in carrying out its advisory and other responsibilities; (iii) SunAmerica has been responsive to requests of the Board; and (iv) SunAmerica has kept the Board apprised of developments relating to the Funds and the industry in general. The Board concluded that the nature and extent of services provided under the Advisory Agreement were reasonable and appropriate in relation to the management fee and that the quality of services continues to be high. 87 SunAmerica Income Funds APPROVAL OF ADVISORY AGREEMENTS -- September 30, 2019 -- (unaudited) (continued) The Board also considered SunAmerica's reputation and long-standing relationship with the Funds and considered the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of types of mutual funds and shareholder services. The Board considered SunAmerica's experience in providing management and investment advisory and administrative services to advisory clients and noted that as of March 31, 2019, SunAmerica managed, advised and/or administered approximately $85.8 billion in assets. In addition, the Board considered SunAmerica's code of ethics and its commitment to compliance generally and with respect to its management and administration of the Funds. The Board also considered SunAmerica's risk management processes. The Board further observed that SunAmerica has developed internal procedures for monitoring compliance with the investment objectives, policies and restrictions of the Funds as set forth in the Funds' prospectuses. The Board also reviewed SunAmerica's compliance and regulatory history and noted that there were no material legal, regulatory or compliance issues that would potentially impact SunAmerica in effectively serving as the investment adviser to the Funds. Investment Performance. The Board, including the Independent Directors, also considered the investment performance of SunAmerica with respect to the Funds. In connection with its review, the Board received and reviewed information regarding the investment performance of the Funds as compared to each Fund's peer universe ("Peer Universe") and/or peer group ("Peer Group") as independently determined by Broadridge and to an appropriate index or combination of indices, including the Fund's benchmarks. The Board was provided with a description of the methodology used by Broadridge to select the funds in the Peer Groups and Peer Universes. The Board noted that performance information was for the periods ended March 31, 2019. The Board also noted that it regularly reviews the performance of the Funds throughout the year. The Board further noted that, while it monitors performance of the Funds closely, it generally attaches more importance to performance over relatively long periods of time, typically three to five years. Active Allocation Fund. The Board considered that the Fund's performance was above the median of its Peer Group for the one-, three- and five-year periods. The Board further considered that the Fund underperformed its Peer Universe for the one-year period and outperformed its Peer Universe for the three- and five-year periods. The Board further considered that the Fund underperformed its Broadridge Index for the one-, three- and five-year periods. The Board noted management's discussion of the Fund's performance and concluded that the Fund's performance was satisfactory. Multi-Asset Allocation Fund. The Board considered that the Fund's performance was below the medians of its Peer Group and Peer Universe for the one-, three- and five-year periods. The Board also considered that the Fund underperformed its Broadridge Index for the one-, three- and five-year periods. The Board took into account management's discussion of the reasons for the Fund's recent underperformance as well as management's discussion of the Fund's portfolio construction and investment strategy and concluded that the Fund's performance was being appropriately monitored. Dividend Strategy Fund. The Board considered that the Fund's performance was above the medians of its Peer Group and Peer Universe for the one- and five-year periods and was below the medians of its Peer Group and Peer Universe for the three-year period. The Board also considered that the Fund outperformed its Broadridge Index for the one- and five-year periods and underperformed its Broadridge Index for the three-year period. The Board noted management's discussion of the Fund's performance, and concluded that the Fund's performance was satisfactory. Strategic Value Fund. The Board considered that the Fund's performance was below the medians of its Peer Group and Peer Universe for the one-, three- and five-year periods. The Board also considered that the Fund underperformed its Broadridge Index for the one- and three- year periods and outperformed its Broadridge Index for the five-year period. The Board noted management's discussion of the Fund's performance, including the Fund's investment approach, and concluded that the Fund's performance was being appropriately monitored. Select Dividend Growth Fund. The Board noted that the Fund's performance was below the median of its Peer Group for the one-year period and was equal to the median of its Peer Group for the three-year period. The Board further considered that the Fund's performance was below the median of its Peer Universe for the one- and three-year periods. The Board further considered that the Fund underperformed its Broadridge Index for the one- and three-year periods. The Board noted management's discussion of the Fund's performance, including the impact of market conditions on the Fund's performance, and concluded that the Fund's performance is being appropriately monitored. 88 SunAmerica Income Funds APPROVAL OF ADVISORY AGREEMENTS -- September 30, 2019 -- (unaudited) (continued) Consideration of the Management Fees and the Cost of the Services and Profits to be Realized by SunAmerica and its Affiliates from the Relationship with the Funds. The Board, including the Independent Directors, received and reviewed information regarding the fees paid by the Funds to SunAmerica pursuant to the Advisory Agreement. The Board examined this information in order to determine the reasonableness of the fees in light of the nature and quality of services to be provided and any potential additional benefits to be received by SunAmerica or its affiliates in connection with providing such services to the Funds. To assist in analyzing the reasonableness of the management fee for each of the Funds, the Board received reports independently prepared by Broadridge. The reports showed comparative fee information for each Fund's Peer Group and/or Peer Universe, as determined by Broadridge, including rankings within each category. In considering the reasonableness of the management fee to be paid by each Fund to SunAmerica, the Board reviewed a number of expense comparisons, including: (i) contractual and actual management fees and (ii) actual total operating expenses. In considering each Fund's total operating expenses, the Board analyzed the level of fee waivers and expense reimbursements and the net expense caps contractually agreed upon by SunAmerica with respect to certain classes of AIG Strategic Value Fund and AIG Select Dividend Growth Fund. The Board also considered the voluntary fee waivers and/or expense reimbursements being made by SunAmerica with respect to the AIG Active Allocation Fund and AIG Multi-Asset Allocation Fund (collectively, the "Allocation Funds"). The Board further considered that, unlike the funds in the Peer Group and Peer Universe, the fee waivers and/or reimbursements being made by SunAmerica with respect to the Funds are only reflected in the total expenses category of the Broadridge reports, rather than also being reflected as specific management fee waivers in the actual management fees category of the Broadridge reports. As a result, the Board took into account that the actual management fees presented by Broadridge for the funds in the Peer Group and Peer Universe may appear lower on a relative basis. The Board also considered the various expense components of the Funds and compared each Fund's net expense ratio (taking into account the contractual fee caps) to those of other funds within its Peer Group and/or Peer Universe as a guide to help assess the reasonableness of each Fund's management fee. The Board acknowledged that it was difficult to make precise comparisons with other funds in the Peer Groups and Peer Universes since the exact nature of services provided under the various fund agreements is often not apparent. The Board noted, however, that the comparative fee information provided by Broadridge as a whole was useful in assessing whether SunAmerica was providing services at a cost that was competitive with other, similar funds. The Board also considered the management fees received by SunAmerica with respect to other mutual funds and accounts with similar investment strategies to the Funds, as applicable. The Board noted that certain of the mutual funds identified as similar to certain of the Funds are sold only in the variable annuity market and, accordingly, are in different Broadridge classifications, with peer groups consisting of funds underlying variable insurance products. The Board further noted that SunAmerica serves as subadviser to certain of these similar mutual funds and observed that the services SunAmerica provides as subadviser are much more limited in scope than in its role as investment manager and adviser to the Funds. The Board then noted the management fees paid by the Funds were reasonable as compared to the fees SunAmerica was receiving from other mutual funds and accounts for which it serves as adviser or subadviser. Active Allocation Fund. The Board considered that the Fund's actual management fees were above the medians of its Peer Group and Peer Universe. The Board also considered that the Fund's total expenses were above the medians of its Peer Group and Peer Universe. The Board noted management's discussion regarding the Fund's expenses. Multi-Asset Allocation Fund. The Board considered that the Fund's actual management fees were above the medians of its Peer Group and Peer Universe. The Board also considered that the Fund's total expenses were above the medians of its Peer Group and Peer Universe. The Board noted management's discussion regarding the Fund's expenses. Dividend Strategy Fund. The Board considered that the Dividend Strategy Fund's actual management fees were below the medians of its Peer Group and Peer Universe. The Board also considered that the Portfolio's total expenses were below the median of its Peer Group and above the median of its Peer Universe. Strategic Value Fund. The Board considered that the Fund's actual management fees were above the medians of its Peer Group and Peer Universe. The Board also considered that the Fund's total expenses were above the medians of its Peer Group and Peer Universe. The Board noted management's discussion regarding the Fund's expenses. 89 SunAmerica Income Funds APPROVAL OF ADVISORY AGREEMENTS -- September 30, 2019 -- (unaudited) (continued) Select Dividend Growth Fund. The Board considered that the Fund's actual management fees were above the medians of its Peer Group and Peer Universe. The Board also considered that the Fund's total expenses were below the median of its Peer Group and were above the median of its Peer Universe. The Board noted management's discussion regarding the Fund's expenses. Profitability. The Board also considered SunAmerica's profitability and the benefits SunAmerica and its affiliates received from their relationship with the Funds. The Board received and reviewed financial statements relating to SunAmerica's financial condition and profitability with respect to the services it provides the Funds and considered how profit margins could affect SunAmerica's ability to attract and retain high quality investment professionals and other key personnel. The Board was also provided with a profitability analysis that detailed the revenues earned and the expenses incurred by SunAmerica and its affiliates that provide services to the Funds on a Fund by Fund basis, as well as an Investment Management Profitability Analysis prepared by an independent information service, Broadridge. In particular, the Board considered the contractual and voluntary fee waivers and/or expense reimbursements agreed to by SunAmerica. The Board considered the profitability of SunAmerica under the Advisory Agreement and considered the profitability of SunAmerica's affiliates under the Rule 12b-1 Plans. Additionally, the Board considered whether SunAmerica and its affiliates received any indirect benefits from the relationship with the Funds. The Board further considered whether there were any collateral or "fall-out" benefits that SunAmerica and its affiliates may derive as a result of their relationship with the Funds. The Board noted that SunAmerica believes that any such benefits are de minimis and do not impact the reasonableness of the management fees. The Board concluded that SunAmerica had the financial resources necessary to perform its obligations under the Advisory Agreement and to continue to provide the Funds with the high quality services that it had provided in the past. The Board further concluded that the management fees payable by the Funds under the Advisory Agreement were reasonable in light of the factors discussed above. Economies of Scale. The Board, including the Independent Directors, considered whether the shareholders would benefit from economies of scale and whether there was potential for future realization of economies with respect to the Funds. The Board considered that as a result of being part of the AIG fund complex, the Funds share common resources and may share certain expenses, and if the size of the complex increases, each fund could incur lower expenses than they otherwise would achieve as stand-alone entities. The Board also took into account that the management fee arrangements with respect to AIG Focused Dividend Strategy Fund included breakpoints that will adjust the fee downward as the size of those Funds increase, thereby allowing the shareholders to participate in any economies of scale. The Board further noted that, with respect to the AIG Strategic Value Fund and AIG Select Dividend Growth Fund, SunAmerica has agreed to contractually cap the total annual operating expenses of certain classes of the Funds, at certain levels. The Board also noted that with respect to the Allocation Funds, SunAmerica has agreed to voluntarily cap the total annual operating expenses of certain classes of the Funds, at certain levels. The Board observed that those expense caps benefited shareholders by limiting total fees even in the absence of breakpoints. The Board concluded that the Funds' management fee structure was reasonable and that it would continue to review fees in connection with the renewal of the Advisory Agreement, including whether the implementation of additional breakpoints would be appropriate in the future due to an increase in asset size or otherwise. Other Factors. In consideration of the Advisory Agreement the Board also received information regarding SunAmerica's brokerage and soft dollar practices. The Board considered that SunAmerica is responsible for decisions to buy and sell securities for the Funds, selection of broker-dealers and negotiation of commission rates. The Board noted that it receives reports from SunAmerica and from an independent third party which included information on brokerage commissions and execution throughout the year. The Board also considered the benefits SunAmerica derives from its soft dollar arrangements, including arrangements under which brokers provide brokerage and/or research services to SunAmerica in return for allocating brokerage. Conclusion. After a full and complete discussion, the Board approved the Advisory Agreement for a one-year period ending June 30, 2020. Based upon their evaluation of all these factors in their totality, the Board, including the Independent Directors, was satisfied that the terms of the Advisory Agreement and were fair and reasonable and in the best interests of the respective Funds and the Funds' shareholders. In arriving at a decision to approve the Advisory Agreement the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and each Independent Director may have attributed different weights to different factors. The Independent Directors were also assisted by the advice of independent legal counsel in making this determination. 90 SunAmerica Income Funds SUPPLEMENT TO THE PROSPECTUS THIS SUPPLEMENT IS NOT PART OF THE SEMI-ANNUAL REPORT SunAmerica Income Funds AIG Flexible Credit Fund (the "Fund") Supplement dated August 27, 2019, to the Fund's Summary Prospectus dated July 29, 2019, as supplemented and amended to date Effective August 30, 2019, the following changes are made to the Fund's Summary Prospectus: In the section entitled "Fund Highlights: AIG Flexible Credit Fund," on page 9 of the Summary Prospectus, the table under the heading "Portfolio Managers" is deleted in its entirety and replaced with the following:
Portfolio Manager Name of the Fund Since Title ------------------------- ----------------- ------------------------------------------------------------------- David Albrycht, CFA...... 2014 President and Chief Investment Officer at Newfleet Francesco Ossino......... 2014 Senior Managing Director and Senior Portfolio Manager at Newfleet Eric Hess, CFA........... 2019 Managing Director, Portfolio Manager at Newfleet William J. Eastwood, CFA. 2019 Senior Managing Director, Portfolio Manager and Head of Trading at Newfleet
Capitalized terms used but not defined herein shall have the meanings assigned to them by the Prospectus. PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE. 91 [LOGO] AIG Funds Harborside 5 185 Hudson Street, Suite 3300 Jersey City, NJ 07311 Trustees VOTING PROXIES ON DISCLOSURE OF Richard W. Grant TRUST PORTFOLIO QUARTERLY PORTFOLIO Peter A. Harbeck SECURITIES HOLDINGS Dr. Judith L. Craven A description of the The Trust is required William F. Devin policies and to file its complete Stephen J. Gutman proce-dures that the schedule of portfolio Eileen A. Kamerick Trust uses to holdings quarterly Officers determine how to vote with the U.S. John T. Genoy, President proxies relating to Securities and Sharon French, Executive secu-rities held in a Exchange Commission on Vice President Fund's portfolio, Form N-PORT. The James Nichols, Vice which is available in Trusts' Forms N-PORT President the Trust's Statement are available on the Christopher C. Joe, of Additional U.S. Securities and Chief Compliance Information, may be Exchange Commission's Officer ob-tained without website at Gregory N. Bressler, charge upon request, http://www.sec.gov. Secretary by calling (800) PROXY VOTING RECORD ON Kathleen Fuentes, Chief 858-8850. The SUNAMERICA INCOME FUNDS Legal Officer and in-formation is also Information regarding Assistant Secretary available from the how the Funds voted Gregory R. Kingston, EDGAR database on the proxies relating to Treasurer U.S. Secu-rities and securities held in the Donna McManus, Vice Exchange Commission's Funds during the most President and website at recent twelve month Assistant Treasurer http://www.sec.gov. period ended June 30 Shawn Parry, Vice DELIVERY OF is available, once President and SHAREHOLDER DOCUMENTS filed with the U.S. Assistant Treasurer The Funds have adopted Securities and Matthew J. Hackethal, a policy that allows Exchange Commission, Anti-Money Laundering them to send only one without charge, upon Compliance Officer copy of a Fund's request, by calling Investment Adviser prospectus, proxy (800) 858-8850 or on SunAmerica Asset material, annual the U.S. Securities Management, LLC report and semi-annual and Exchange Harborside 5 report (the Commission's website 185 Hudson Street, Suite "shareholder at http://www.sec.gov. 3300 documents") to This report is Jersey City, NJ 07311 shareholders with submitted solely for Distributor multiple accounts the general AIG Capital Services, residing at the same information of Inc. "household." This shareholders of the Harborside 5 practice is called Funds. Distribution of 185 Hudson Street, Suite householding and this report to persons 3300 reduces Fund expenses, other than Jersey City, NJ 07311 which benefits you and shareholders of the Shareholder Servicing other shareholders. Funds is authorized Agent Unless the Funds only in con-nection AIG Fund Services, Inc. receive instructions with a currently Harborside 5 to the con-trary, you effective pro-spectus, 185 Hudson Street, Suite will only receive one setting forth details 3300 copy of the of the Funds, which Jersey City, NJ 07311 shareholder documents. must precede or Custodian The Funds will accom-pany this report. State Street Bank and continue to household The accompanying Trust Company the share-holder report has not been One Lincoln Street documents audited by independent Boston, MA 02111 indefinitely, until we accountants and Transfer Agent are instructed accordingly no opinion DST Asset Manager otherwise. If you do has been expressed Solutions, Inc. not wish to thereon. 303 W 11th Street participate in Kansas City, MO 64105 householding please contact Shareholder Services at (800) 858-8850 ext. 6010 or send a written request with your name, the name of your fund(s) and your account number(s) to AIG Funds, P.O. Box 219186, Kansas City MO, 64121-9186. We will resume in-dividual mailings for your account within thirty (30) days of receipt of your request. Go Paperless!! Did you know that you have the option to receive your shareholder reports online? By choosing this convenient service, you will no longer receive paper copies of Fund documents such as annual reports, semi-annual reports, prospectuses and proxy statements in the mail. Instead, you are provided with quick and easy access to this information via the Internet. Why Choose Electronic Delivery? It's Quick -- Fund documents will be received faster than via traditional mail. It's Convenient -- Elimination of bulky documents from personal files. It's Cost Effective -- Reduction of your Fund's printing and mailing costs. To sign up for electronic delivery, follow these simple steps: 1 Go to www.aig.com/funds 2 Click on the link to "Go Paperless!!"
The email address you provide will be kept strictly confidential. Once your enrollment has been processed, you will begin receiving email notifications when anything you receive electronically is available online. You can return to www.aig.com/funds at any time to change your email address, edit your preferences or to cancel this service if you choose to resume physical delivery of your Fund documents. Please note - this option is only available to accounts opened through the Funds. For information on receiving this report online, see inside back cover. AIG Funds are advised by SunAmerica Asset Management, LLC (SAAMCo) and distributed by AIG Capital Services, Inc. (ACS), Member FINRA. Harborside 5, 185 Hudson Street, Suite 3300, Jersey City, NJ 07311, 800-858-8850. SAAMCo and ACS are members of American International Group, Inc. (AIG). This fund report must be preceded by or accompanied by a prospectus. Investors should carefully consider a Fund's investment objectives, risks, charges and expenses before investing. The prospectus, containing this and other important information, can be obtained from your financial adviser, the AIG Funds Sales Desk at 800-858-8850, ext. 6003, or at aig.com/funds. Read the prospectus carefully before investing. aig.com/funds INSAN - 9/19 [LOGO] Item 2. Code of Ethics. Not applicable. Item 3. Audit Committee Financial Expert. Not applicable. Item 4. Principal Accountant Fees and Services. Not applicable. Item 5. Audit Committee of Listed Registrants. Not applicable. Item 6. Investments. Included in Item 1 to the Form. Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable. Item 8. Portfolio Managers of Closed-End Management Investment Companies. Not applicable. Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. Not applicable. Item 10. Submission of Matters to a Vote of Security Holders. There were no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board of Trustees that were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by 22(b)(15)) of Schedule 14A (17 CFR 240.14a- 101), or this Item 10. Item 11. Controls and Procedures. (a) An evaluation was performed within 90 days of the filing of this report, under the supervision and with the participation of the registrant's management, including the President and Treasurer, of the effectiveness of the design and operation of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c))). Based on that evaluation, the registrant's management, including the President and Treasurer, concluded that the registrant's disclosure controls and procedures are effective. (b) There was no change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d))) that occurred during the most recent fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal contro1 over financial reporting. Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. Not applicable. Item 13. Exhibits. (a) (1) Not applicable. (2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT. (3) Not applicable. (4) Not applicable. (b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) and Section 906 of the Sarbanes- Oxley Act of 2002 attached hereto as Exhibit 99.906.CERT. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SunAmerica Income Funds By: /s/ John T. Genoy ----------------------- John T. Genoy President Date: December 06, 2019 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ John T. Genoy ----------------------- John T. Genoy President Date: December 06, 2019 By: /s/ Gregory R. Kingston ----------------------- Gregory R. Kingston Treasurer Date: December 06, 2019 EX-99.CERT 2 d812174dex99cert.txt CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT 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 Income Funds; 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 most recent fiscal half-year 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: December 05, 2019 /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 Income Funds; 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 most recent fiscal half-year 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: December 05, 2019 /s/ Gregory R. Kingston ----------------------- Gregory R. Kingston Treasurer EX-99.906.CERT 3 d812174dex99906cert.txt CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT 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 Income Funds (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: December 05, 2019 /s/ John T. Genoy --------------- John T. Genoy President /s/ Gregory R. Kingston ------------------- Gregory R. Kingston Treasurer