Class A: SSSAX • Class B: SSSBX • Class C: SSSTX

Finding Big Value in Small Stocks

The SunAmerica Focused Small-Cap Value Portfolio has been managed by Daniel Lew of SunAmerica Asset Management since 2005. Mr. Lew has extensive experience within the small-cap sector and brings a unique style that focuses on uncovering high-quality, undervalued companies with significant upside potential. He is committed to finding “the best for less,” looking for companies with a particular dominance within their industry, stable management, strong balance sheets and earnings potential.

Strong Performance in Choppy Market Conditions

Small-cap value is a historically strong-performing asset class, and these companies can prosper in good times and bad. This has certainly been true for the Focused Small-Cap Value Portfolio. After the 2008 recession, improving fundamentals spurred renewed optimism for spending and investment, and the Fund was able to generate strong results through the early stages of the recovery. Despite the recent market downturn and fears of a double-dip recession, the Fund has continued to generate competitive returns, outperforming both the market and small-cap stocks in general year to date. 

The Fund has greatly outpaced both peers and its benchmark index since 2009

A Share Performance: June 30, 2011. Adjusted for the 5.75% sales charge, performance would have been lower. See the Performance page for a full description of Fund performance. The S&P 500 Index is an unmanaged, broad-based, market-cap weighted index of 500 stocks. The Russell 2000 Value Index is an unmanaged index of small-cap stocks screen by valuation.

Why the Fund Makes Sense Today?

Looking forward, both corporations and consumers have delayed making purchases in these uncertain times. Once the economy and market begin to stabilize, the pent-up demand could create a nice backdrop for economically sensitive small-cap stocks. In fact, small-cap value stocks have historically done well in times of economic recovery, and the Fund is aptly positioned to benefit from this trend. The Fund’s experienced management team, focused approach and disciplined stock selection process can provide investors with unique small-cap opportunities, diversification benefits and capital appreciation potential.

For more information about the Fund, please talk to your financial advisor.