Target Style


Fund Objective:

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

 

Fund Highlights:

  • The Fund is sub-advised by two highly respected managers in Tom Marsico of Marsico Capital Management, LLC and Peter Stournaras of BlackRock Investment Management, LLC.

  • The managers use a combination of fundamental and quantitative research to select their top large-cap stock picks in the growth and value sectors.

  • Marsico’s 10 stock portion (approximately 50% of the Fund’s assets) focuses on large-cap growth stocks and BlackRock’s 10 stock selections (approximately 50% of the Fund’s assets) focus on large-cap value stock.

 

The Russell 1000 Index measures the performance of approximately 1,000 of the largest U.S. securities based on a combination of their market cap and current index membership. Please note an investor cannot invest directly in an index.

Gross operating expenses, Class A: 1.66%; Class C: 2.31%; Class W: 1.53%. Net operating expenses, Class A: 1.66%; Class C: 2.31%; Class W: 1.52% after contractual waiver of fees and/or reimbursement of expenses which will continue indefinitely subject to termination by the Board. The net expense ratio includes the contractual expense cap (which is 1.72%, 2.37% and 1.52%, for Class A, C and W, respectively) and other management fee waivers, as more fully described in the Fund’s prospectus, and it also reflects any acquired fund fees and expenses (“AFFEs”). AFFEs are not subject to the contractual expense cap, which is why the net expense ratio may exceed the contractual expense cap of 1.72%, 2.37% and 1.52%, for Class A, C and W, respectively.  Waivers and/or reimbursements are subject to recoupment within 2 years.

Performance data quoted represents past performance and is not a guarantee of future results. The data assumes reinvestment of all distributions at net asset value. Maximum sales charge (Class A): 5.75%. The Fund’s daily net asset value is not guaranteed and shares are not insured by the FDIC, the Federal Reserve Board or any other agency. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be higher or lower than the original cost. Current performance may be higher or lower than that shown.

*Inception date of closed-end fund 12/27/05

The Fund is newly organized. The Fund acquired the assets and assumed the liabilities of the SunAmerica Focused Alpha Large-Cap Fund, Inc. (the “Predecessor Fund”), a closed-end investment company, in a reorganization that occurred on January 23, 2012 (the “Reorganization”). The performance of Class A shares of the Fund reflects the performance of the Predecessor Fund. As a closed-end investment company, the Predecessor Fund was not subject to the cash flow fluctuations of an open-end fund. The Fund’s past performance may have been different if it had been an open-end fund during the period covered in the chart and table.

The performance figures above for the period prior to the Reorganization were calculated using the actual operating expenses of the Predecessor Fund, which were lower than those of the Fund. If the Fund’s higher operating expenses were applied to the performance for the period prior to the Reorganization, the performance figures (as of 9/30/18 with Maximum Sales Charge) would have been as follows: 1-Year: 11.18%; 3-Year: 15.39%; 5-Year: 13.44%; 10-Year: 12.19%; Since Inception: 9.61%.

$10,000 initial investment in Class A from Fund inception through the report date, with all income dividends and capital gains reinvested.  Includes a maximum 5.75% sales charge. This chart is hypothetical and is for illustrative purposes only.

Focused Portfolios are less diversified than the typical mutual fund, therefore the performance of each holding has a greater impact upon the overall portfolio, which increases risk.

There is no guarantee a fund will meet its objective.

The style and risk measures illustrated above are broad-based, relative targets for the Fund. There can be no assurances that the Fund exactly exhibits these categorizations at any given time.

Standard Deviation is a measure of the volatility that an investment experiences over time. The higher the standard deviation, the greater the performance swings of the investment. The Sharpe Ratio uses a fund’s standard deviation and its excess return (the difference between the fund’s return and the risk-free return of 90-day Treasury Bills) to determine reward per unit of risk. Beta is a measure of a fund’s sensitivity to market movements. A portfolio with a beta greater than 1 is more volatile than the market, and a portfolio with a beta less than 1 is less volatile than the market. R-Squared reflects the percentage of a fund’s movements that are explained by movements in its benchmark index, showing the degree of correlation between the fund and the benchmark. Alpha is a measure of performance on a risk adjusted basis of a mutual fund and compares its risk adjusted performance to a benchmark index. A positive alpha of 1.0% means the fund has outperformed its benchmark index by 1% and a negative alpha of -1.0% would indicate an underperformance of 1%.

Price/Earnings Ratio measures a company’s current share price compared to its per-share earnings. Price/Book Ratio compares a company’s book value to its current market price. Book value denotes the portion of equity held by shareholders.

BlackRock Investment Management, LLC is an independent and unaffiliated investment sub-adviser to SunAmerica.

Marsico Capital Management, LLC is an independent and unaffiliated investment sub-adviser to SunAmerica.