1 Shares of  the 2020 High Watermark Fund held until the protected maturity date (e.g., August 31, 2020) may be redeemed at the Protected High Watermark Value for the Fund, which is the highest NAV per share attained, (i) reduced by dividends and distributions paid by the Fund subsequent to the date which the highest NAV was achieved, (ii) reduced by extraordinary expenses, if any, and (iii) increased by appreciation in share value to the extent such appreciation exceeds the adjusted share value subsequent to the last paid dividend or distribution. Redeeming or exchanging shares of the High Watermark Fund prior to the maturity date is at the Fund’s then-current net asset value, which may be less than your initial investment. In order to receive the Fund’s High Watermark Value on the protected maturity date a shareholder must reinvest all dividends and distributions and not redeem shares prior to the protected maturity date (assuming no extraordinary fund expenses occurred).           

The Adviser employs a disciplined quantitative approach through a proprietary, computer-assisted methodology to construct and rebalance the Fund's portfolio. This construction and rebalancing process is similar to asset allocation except that it controls not only portfolio assets such as U.S. government securities but also the portfolios' exposures to equity markets via futures contracts. Under certain circumstances, the Fund may be required to invest 100% of its assets in U.S. government securities. In these circumstances, the Fund may not participate meaningfully in any subsequent recovery in the equity markets. Use of fixed-income securities reduces the Fund's ability to participate as fully in upward equity market movements, and therefore, represents some loss of opportunity compared to portfolios that are fully invested in equities.  

The High Watermark Fund's payment undertaking is backed by a master agreement (“Master Agreement”) between SunAmerica Specialty Series on behalf of the High Watermark Funds, and Prudential Global Funding (“PGF”). PGF’s obligations are backed by its parent company, Prudential Financial Inc., (“Prudential Financial”). The Master Agreement is solely the obligation of PGF and Prudential Financial. The Master Agreement is an obligation that runs solely to the High Watermark Funds, not to the High Watermark Funds’ shareholders. PGF’s obligations under the Master Agreement are dependent on the financial condition of PGF and Prudential Financial. A shareholder’s payout will be reduced by any redemption of High Watermark Fund shares or dividends and distributions taken in cash, sales charges and extraordinary fund expenses. Dividends and distributions from the High Watermark Funds are taxable whether or not you reinvest them in additional shares of the High Watermark Funds. The payment undertaking does not apply to shares redeemed prior to the protected maturity date and shareholders can lose money on shares redeemed early. If certain obligations are not performed under the master agreement, or the Board of Trustees determines that it is in the best interests of shareholders to liquidate a High Watermark Fund (early Fund termination risk), shareholders will receive upon redemption the then-current NAV, which may be lower than the current high watermark value. Neither the High Watermark Funds nor SunAmerica Asset Management Corp. is obligated to replace the Master Agreement provider or Prudential Financial should they be unable to make payments under the Master Agreement. The Master Agreement increases the High Watermark Funds’ expense and could lower fund performance. If the Master Agreement is terminated the fee payable under a new agreement may be higher.