2019 Lipper Fund Award Winner

AIG Flexible Credit Fund

Class A: SHNAX • Class C: SHNCX • Class W: SHNWX

The AIG Flexible Credit Fund has produced strong long-term results and was honored with the 2019 Lipper Fund Award for Best Fund Over 10 Years in the Alternative Credit Focus Funds category.1

The Fund invests in a combination of floating rate loans and high-yield bonds to deliver attractive income and total return potential. This dynamic, “2-in-1” strategy actively adjusts exposure to each asset class from 0-100% depending on market conditions.

Key Reasons to Invest in the Fund:

  • Active Portfolio Management
    The Fund tactically allocates assets between two specialized asset classes to make the most of market conditions and relative value opportunities.
  • Attractive Income and Total Return Potential
    Floating rate loans and high-yield bonds seek to generate high current income and have been among the best performing asset classes since 2008.2
  • Protection Against Rising Interest Rates
    Both asset classes historically have low correlations to traditional fixed income securities, making them less susceptible to potential interest rate increases.3


Talk to your financial advisor today to learn more about the AIG Flexible Credit Fund.

1 The Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the Lipper Fund Award. For more information, see lipperfundawards.com. Although Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Lipper. Lipper Fund Awards from Refinitiv, ©2019 Refinitiv. All rights reserved. Used under license.

2 Data source: Morningstar Direct. Based on asset class returns from 1/1/09 to 12/31/18.

3 Based on correlations to U.S. Treasuries from January 2001 to December 2018: -0.17 for High-Yield Bonds and -0.35 for Floating Rate Loans. Treasuries are represented by the Barclays U.S. Treasury 7-10 Year Index. You may not invest directly in an index. Correlation is a statistical measure of how two securities move in relation to each other. This measure ranges from -1 to +1, where 1 indicates perfect negative correlation and +1 indicates perfect positive correlation.

Past performance does not guarantee future results.

Effective October 1, 2014, the name of the SunAmerica High Yield Bond Fund was changed to the SunAmerica Flexible Credit Fund and certain corresponding changes were made to the Fund's investment strategy and techniques. Prior to this date, the Fund was managed as a high-yield bond fund. Effective February 28, 2017, the name of the SunAmerica Flexible Credit Fund was changed to the AIG Flexible Credit Fund. 

Interest rates and bond prices typically move inversely to each other. As interest rates rise, credit instruments typically fall, and as interest rates fall, credit instruments typically rise. Longer term and lower coupon bonds tend to be more sensitive to interest rate changes. Investments in loans and other floating-rate securities reduce interest rate risk. While interest rates on loans adjust periodically, these rates may not correlate to prevailing interest rates during the periods between rate adjustments. The Fund may be subject to a greater risk of rising interest rates due to the current period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

Investment in floating rate loans involves certain risks, including, among others, risks of nonpayment of principal and interest; collateral impairment; non-diversification and borrower industry concentration; and lack of full liquidity. Investments in non-investment-grade debt securities (“high-yield” or “junk” bonds) tend to have lower interest rate risk but may be subject to greater market fluctuations and risk of default or loss of income and principal than securities in higher rating categories. High yield debt instruments carry a greater default risk, may be more volatile, less liquid, more difficult to value and more susceptible to adverse economic conditions or investor perceptions than other debt instruments.