International Dividend Strategy Fund

Class A: SIEAX Class C: SIETX Class W: SIEWX

Constructing the International Dividend Strategy Fund

 

The SunAmerica International Dividend Strategy Fund is designed to provide investors with current income and capital appreciation potential. The Fund uses a disciplined, rules-based approach to select high dividend-yielding, non-U.S. stocks of any size that are believed to be financially strong, undervalued and overlooked by the market.

Capitalize on a Rules-Based, Value-Oriented Approach to International Investing

The rules-based approach of the SunAmerica International Dividend Strategy Fund is divided into four steps:

1. Screen: The portfolio managers screen the MSCI ACWI ex-U.S. Index and establish the minimum dividend requirements.1

2. Rank: They rank the companies that fall above this dividend “hurdle” based on additional criteria, including valuation and profitability.

3. Invest: The Fund then invests in the top 50-100 companies and generally holds these stocks for one year. A stock may be replaced during the year under certain circumstances, including if it no longer meets the dividend “hurdle.”

4. Reconstitute: The Fund is reconstituted annually, which may help to minimize portfolio  turnover and enhance tax efficiency.2

 

SIEAX Fund Facts

Total return: The Fund offers current income and capital appreciation potential by investing in non-U.S. dividend stocks

International focus: The Fund can invest in as many as 44 countries, comprising both developed and emerging economies

Diversification opportunities: Dividend investing across international markets can help spread the risk of investing in just one country or region and potentially increase overall portfolio returns

Quantitative process: Impartial, rules-based approach can help take the emotions out of investing

Management expertise: The portfolio management team has extensive knowledge and years of experience managing equity income assets in the U.S. and abroad

 

1The MSCI ACWI (Morgan Stanley Capital International All Country World Index) ex-U.S. (Net) is a free float-adjusted market capitalization-weighted index designed to provide a broad measure of the global equity market performance of 45 developed and emerging markets throughout the world, excluding the U.S. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. Please note an investor cannot invest directly in an index.

2 Annual reconstitutions will take place on or about November 1, with the first reconstitution occurring in 2013.

Effective July 2, 2012, the name of the SunAmerica International Equity Fund was changed to the SunAmerica International Dividend Strategy Fund and certain changes were made to the Fund’s investment strategy and techniques. Prior to this date, the Fund was managed as an international equity fund employing a different strategy. 

Investments in stocks are subject to risk, including the possible loss of principal. Stocks of international companies are subject to additional risks including currency fluctuations, economic and political instability, greater market volatility, and limited liquidity. These risks can be greater in the case of emerging country securities. The Fund may invest in medium-capitalization and small capitalization companies, which involve additional risks such as limited liquidity and greater volatility. Preferred stocks are subject to interest rate fluctuations as well as credit risk, which is the possibility that an issuer of preferred stock will fail to make its dividend payments. The market may fail to recognize the intrinsic value of particular dividend paying stocks the Fund may hold. 

The Fund employs a Disciplined Strategy and will not deviate from its strategy (except to the extent necessary to comply with federal tax laws or other applicable laws). If the Fund is committed to a strategy that is unsuccessful, the Fund will not meet its investment goal. Because the Fund will not use certain techniques available to other mutual funds to reduce stock market exposure, the Fund may be more susceptible to general market declines than other mutual funds.