Target Style


Fund Objective:

Seeks long-term growth of capital.

Fund Highlights:

  • Strategically allocates its assets between a small-cap index strategy and an actively-managed micro-cap growth strategy. 
  • The index strategy provides broad exposure to small-cap stocks by tracking the Russell 2000 Index and the micro-cap strategy is actively managed to enhance alpha potential relative to the Russell Microcap Index. 
  • SunAmerica Asset Management is the Fund’s investment adviser, managing the overall asset allocations and the index strategy. Cadence Capital Management, LLC is the portfolio manager of the micro-cap growth strategy.  The Fund will generally allocate approximately 40-60% of its assets to each strategy.

 

 

The SunAmerica Small-Cap Fund Benchmark is comprised of 50% Russell 2000 Index and 50% Russell Microcap Index.  The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. It is a subset of the Russell 3000 Index, representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.  The Russell Microcap Index measures the performance of the microcap segment of the U.S. equity market. Microcap stocks make up less than 3% of the U.S. equity market (by market cap) and consist of the smallest 1,000 securities in the small-cap Russell 2000 Index, plus the next smallest eligible securities by market cap.

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.

$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.

Investments in stocks are subject to risk, including the possible loss of principal. Stocks of small-cap and micro-cap companies may be subject to additional risks. Companies with smaller market capitalizations tend to be at early stages of development with limited product lines, market access for products, financial resources, access to new capital, or depth in management. It may be difficult to obtain reliable information and financial data about these companies. Consequently, the securities of smaller companies may not be as readily marketable and may be subject to more abrupt or erratic market movements.

In attempting to track the performance of the Russell 2000 Index, the Fund may be more susceptible to adverse developments concerning a particular security, company or industry because the Fund’s index component generally will not use any defensive strategies to mitigate its risk exposure. Please see the prospectus for additional risks.

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.

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