SunAmerica GNMA Fund

Class A: GNMAX • Class B: GNMBX • Class C: GNMTX

Combine Quality with Performance

In times of market uncertainty, it’s often prudent to allocate a portion of your portfolio to top-quality, fixed-income investments in order to increase appreciation potential, reduce risk and create a more stable stream of income. The SunAmerica GNMA Fund seeks current income with a secondary objective of capital appreciation by investing primarily in high-quality bonds issued or guaranteed by the Government National Mortgage Association (GNMA). Like U.S. Treasuries, these bonds are backed by the full faith and credit of the U.S. government, but they generally offer higher yields.

Steady Growth through Market and Interest Rate Volatility

Note: Performance data quoted represents past performance and is not a guarantee of future results. See notes below for more information. 

 

Why Invest in the SunAmerica GNMA Fund in Today’s Market?

  • Proven long-term performance. Since its inception in 1993, the Fund has generated positive returns in all but two years, with an average annual return of 6.13%, as of December 31, 2011. The Fund is also a multiple winner of the Lipper Performance Achievement Award, ranking #1 in its category at least eight times over its 18-year history.1  
  • Competitive yields. With rates for 6-month CDs and Treasury bills near 0%, the Fund can provide higher income than many other short-term, fixed-income investments. As of December 31, 2011, the Fund (Class A) generated a 30-day SEC yield of 1.21%.2
  • Credit safety and portfolio diversification. Since GNMA guarantees the timely payment of interest and principal of the mortgages held in the Fund, investors are safeguarded from default risk. With its high credit quality and attractive yields, the Fund can be used as a core investment solution for income generation, or as way to diversify and stabilize a traditional stock and bond portfolio in an environment of fluctuating interest rates or markets.

Contact your financial advisor today to learn more about the benefits and risks of investing in the SunAmerica GNMA Fund. You can obtain more detailed information on the Fund.

 

 

 

 


1Source: Lipper, Inc. The SunAmerica GNMA Fund (Class A) ranked 1 out of 28 for the 1-year period ended Dec. 31, 1997; 1 out of 31 for the 1-year period, and 1 out of 21 for the 5-year period ended Dec. 31, 1998; 1 out of 50 for the 1-year period ended Dec. 31, 2002; 1 out of 28 for the 5-year period ended Dec. 31, 2001; 1 out of 21 for the 10-year period ended Dec. 31, 2003; 1 out of 30 for the 10-year period ended Dec. 31, 2006; and 1 out of 31 for the 10-year period ended Dec. 31, 2007 in the Lipper GNMA Funds category. As of December 31, 2011, the Fund is ranked 20 out of 69, 55 out of 63, 28 out of 56, and 13 out of 49 funds in the Lipper GNMA Funds Category for the 1, 3, 5 and 10-year periods respectively. Lipper rankings are based on cumulative total returns and do not take into account sales charges. If they had, the return would be lower. Rankings for Class A shares only; other classes may have different performance characteristics. Universe is defined as GNMA Funds. Past performance is not a guarantee of future results.
2Includes fees waived and expenses reimbursed. The 30-day SEC yield is 1.07%, excluding fees waived and expenses reimbursed.

 

Although this Fund invests in securities that are backed by the full faith and credit of the U.S. Government, the Fund itself is not guaranteed by the U.S. government. Performance data quoted represents past performance and is not a guarantee of future results.

Gross operating expenses: Class A: 1.14%. Net operating expenses: Class A: 0.99%, after contractual waiver of fees and/or reimbursement of expenses which will continue indefinitely subject to termination by the Board. Waivers and/or reimbursements may be subject to recoupment within two years. Performance data quoted represents past performance and is no guarantee of future results. Assumes reinvestment of all distributions at net asset value. Class A maximum sales charge: 4.75%. 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.